Project Management in the Oil and Gas Industry

5.2.2 Selecting the Best Organization
It is difficult to identify a clear way of how to choose the type of orga-
nizational structure of the project, as the choice depends on the circum-
stances. There are some basics to be followed in selecting and designing the 
organizational structure, but there are no detailed steps that can be consid-
ered instructions to determining which type of organization is needed and 
how to build the project. All we can do in this regard is take into account 
the nature of the project and the characteristics of organizations that are 
available and the advantages and disadvantages of each. Then, we can 
make a comparison to find the best and most appropriate among these 
organizations.
In general, adjustment of functionality is valid in the case of projects 
that have the attention focused on the application of deep technology, more 
costs or delivery dates, responding rapidly to changes, or the adjustment of 
career preference for projects that require large investments in equipment 
or buildings and to the nature and functionality.
If the company deals in a large number of similar projects, such as con-
struction projects, it is preferable to follow the organization of a single 
project. The single organization is generally appropriate to the projects that 
are unique, for one, and where privatization is high, functions individually, 
and requires careful control that does not comply with the department of 
a particular job.
When the project requires the integration of many functional depart-
ments and includes high-tech, but does not require that all the technicians 
are working, full-time professionals, the organization matrix is the best 
solution. But, it does mesh complexes and puts the project manager in dif-
ficult situations and, therefore, can be avoided when a structure is simple. 
When you choose the organizational structure for the project, the first 
problem is to determine the quality of work to be carried out. This is done 
through the initial selection of the objectives of the project and identifying 
the tasks necessary to implement each goal.
The following are a compilation of these functions in so-called “group 
work.” Here, we could discuss the possibilities of the various organiza-
tional units at the plant in groups to do business within the project, also 

---

150 
Project Management in the Oil and Gas Industry
taking into account the restriction conditions inside and outside the head 
office.
So, by understanding the various organizations and their advantages 
and disadvantages, the senior management can choose an appropriate 
structure effective to execute the project.
In general, you can follow the following steps in choosing the organiza-
tional structure of the project:
1. Identify the goals of the project that need to be achieved.
2. Identify key tasks for each of these goals and identify 
functional units in the head office that can perform these 
tasks.
3. Figure the order of the main tasks and then configure the 
work package from them.
4. Determine which parts of the project will perform business 
groups and which will work with the other.
5. Make a list of the main characteristics of the project, for 
example the level of technology required, size and execution 
time expected, and, if there are no problems in allocating the 
resources, avoid the political problems occurring between 
the different functional departments who will be involved in 
the project. Finally, previous experience of the company will 
affect the project organization.
6. Based on full knowledge of the disadvantages and advan-
tages of different organizations, one can select the appropri-
ate organizational structure for the project.