ORGANIZATIONAL STRUCTURE IMPACTS ON PROJECT PERFORMANCE AMONG WORKER AT OIL AND GAS INDUSTRY NUR AQILAH BINTI JAMALUDIN Report submitted in partial fulfilment of the requirement for the award of the Degree of Bachelor of Project Management (Hons) Faculty of Industrial Management UNIVERSITI MALAYSIA PAHANG DECEMBER 2015
i SUPERVISORS S DECLARATION I hereby declare that I have checked this thesis and in my opinion, this thesis is adequate in terms of scope and quality of the award of the degree of Bachelor of Project Management (honour). Name of Supervisor Position : MR. MOHAMAD ROZI BIN HASSAN : SENIOR LECTURER Date :
ii STUDENT S DECLARATION I hereby declare that the work in this thesis is my own except for quotations and summaries which have been acknowledged. The thesis has not been accepted for any degree and is not concurrently submitted for award of another degree. Signature : Name ID Number : NUR AQILAH BINTI JAMALUDIN : PB12042 Date :
vii TABLE OF CONTENTS SUPERVISORS S DECLARATION STUDENT S DECLARATION TABLE OF CONTENTS DEDICATION ACKNOWLEDGEMENT ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES PAGE i ii vii iii vi v vi vii x xi TABLE OF CONTENTS CHAPTER 1 INTRODUCTION PAGE 1.1 Introduction 1 1.2 1.3 Research Background Problem Statement 2 3 1.4 Research Objective 4 1.5 Research Question 4 1.6 Research Scope 5 1.7 Significant of Study 5 1.8 Operational Definition 1.8.1 Organizational Structure 1.8.2 Functional Organizational Structure 1.8.3 Matrix Organizational Structure 5 5 5 6
viii 1.9 1.10 1.8.4 Pure Project Organizational Structure 6 1.8.5 Project Performance 7 Expected Result 7 Thesis Planning 7 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction 9 2.2 Importance of oil and gas industry 9 2.3 Relationship oil and gas between project management 11 2.4 Organization Structure 2.4.1 Model of structure 2.4.1.1 Mechanic Structure 2.4.1.2 Organic Structure 12 13 13 14 2.5 Dimension of organic structure 16 2.6 Effectiveness of organizational structure 17 2.7 Project and organizational 18 2.7.1 Project Management Structure 18 2.8 Project organizational structure 19 2.8.1 Functional organizational structure 19 2.8.2 Matrix organizational structure 21 2.8.3 Pure project organizational structure 23 2.9 2.10 Dimension of project performance Project Performance 2.9.1 Time Performance 2.9.2 Quality Performance 25 25 26 26 2.11 Relationship between variable 2.11.1 Impact of Functional organizational structure on project performance 26 27
ix 2.11.2 Impact of Matrix organizational structure on project 27 performance 2.11.3 Impact of Pure project organizational structure on project 28 performance 2.12 Research framework 28 2.13 Research Hypothesis 29 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction 30 3.2 Research Design 3.2.1 Research Flow 3.2.2 Research Framework 31 32 33 3.3 Research Method 3.3.1 Population and sampling 3.3.2 Questionnaire Design 3.3.3 Development of measurement 33 34 35 35 3.4 Data Analysis 36 3.4.1 Descriptive Analysis 3.4.2 Reliability analysis 3.4.3 Likert Scale Analysis 3.4.4 Mean Analysis 3.4.5 Validity Analysis 37 37 37 38 38
x CHAPTER 4 DATA ANALYSIS 4.1 Introduction 39 4.2 4.3 Data Collection Process Respondent Demographic 39 40 4.4 Reliability Analysis 45 4.5 Descriptive Statistics 46 4.6 Pearson Correlation Analysis 51 4.6 4.7 Regression Analysis Conclusion 53 58 CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.1 Introduction 59 5.2 Major Finding 60 5.2.1 Discussion on research objectives 60 5.3 5.2.2 Discussion on research questions Limitation 61 62 5.4 Contributions 64 5.4.1 Contribution to knowledge. 64 5.3.2 Contribution to managerial practice. 64 5.3.3. Contribution to human theoretical implication. 65 5.5 Recommendation 65 5.6 Conclusion 66
xi REFERENCIES 67 APPENDICIES Appendix A Gantt Chart 71 Appendix B Appendix C Questionnaire Output of SPSS 73 78
xii LISTS OF TABLES TABLE NO. TITLE OF TABLE PAGE TABLE 2.1 Definition of mechanic structure 14 TABLE 2.2 Definition of organic structure 15 TABLE 2.3 TABLE 2.4 Measure of functional organizational structure Advantages and disadvantages of functional organizational structure 21 22 TABLE 2.5 TABLE 2.6 Measure of matrix organizational structure Advantages and disadvantages of matrix organizational structure 23 24 TABLE 2.7 Measure of pure project organizational structure 25 TABLE 2.8 Advantages and disadvantages of pure project organizational 26 structure TABLE 3.1 Table of Krejcie and Morgan, 1970 35 TABLE 3.2 TABLE 4.2.1 Source of design questionnaire Number of Questionnaire 36 41 TABLE 4.3.1 TABLE 4.3.2 TABLE 4.3.3 TABLE 4.3.4 TABLE 4.3.5 TABLE 4.4.1 TABLE 4.5.1 TABLE 4.5.3 TABLE 4.6.1 TABLE 4.6.2 Table of Gender Table of Age Table of Education Qualification Table of Position Table of Organizational Involvement Cronbach s Alpha Interpretation of the Level of Mean Descriptive Statistics measure of level project performance Strength of Correlation Coefficient Value Table of correlation 41 41 43 44 45 46 47 48 49 51
xiii LISTS OF FIGURES FIGURE NO. TITLE OF FIGURE PAGE FIGURE 2.1 Percentage of the workers that works in Oil and Gas Company in 11 Kuala Lumpur FIGURE 2.2 Design of effective organizational 17 FIGURE 2.3 Example of WBS structure for a design project 19 FIGURE 2.3 Functional Organization structure 21 FIGURE 2.4 Matrix Organization structure 23 FIGURE 2.5 Pure project Organization structure 25 FIGURE 3.1 Research Flow 33 FIGURE 3.2 Research Framework 34