Project Management in the Oil and Gas Industry

Figure 5.1 Matrix organization.
Project
(A)
Project
(B)
Project
(C)
Projects
Financial
dept.
Procurement
Engineering
HSE
Chairman

---

148 
Project Management in the Oil and Gas Industry
must be integrated disciplines for careers to work in implementing various 
projects.
The matrix organization will be functional posts in the parent organiza-
tion, which consists of a set of integrated experiences that can be distrib-
uted on projects and sent back again.
This organization, although more commonly used in construction, can 
be summarized in the following points:
• You can take a technical engineer or any specialist at any 
time and when more than one project has been executed, the 
functional departments will have available expertise.
• There is no concern for the careers of individuals who work 
in the project upon completion of the project.
• There is strong communication between members of the 
project and between the functional departments in the main 
office.
• It has the flexibility as a separate project, but independent 
expertise is available as in the case that the organization is 
part of the organizational structure. The pain of any com-
pany is simply because it combines the advantages available 
to the two types of organizations.
• When there is more than one project, it can strike a balance 
between resources through good planning.
The disadvantages of this organization can be summarized as follows:
• The individuals in this organization are also scared of the 
end of the project, but not to the same degree as in the case 
of the independent project organization.
• The project manager controls the administration, while 
managers of the departments in the head office are managing 
the technical aspects only and this would cause confusion 
between the project manager and functional department 
head, as in some cases the technical decision may affect the 
project management from cost and time.
• Everyone has two managers.
• There is often overlap and conflict between the project man-
ager and directors of different departments.
• A burden rests with the planning department in the head 
office in the distribution of resources commiserating with 
the nature of each project and its requirements.

---

Resource Hiring 149
Notes of such disadvantages can be avoided with an experienced 
project manager as well as select individuals who have experience com-
miserating with the project until they do obtain a balance between the 
requirements of the project manager and the functional department in 
the head office.