Nowadays, oil and gas companies are competing each other because whichever company that able to provide immediate response and mobilized faster, they will be the winner. Lack of sensitivity in managing and monitoring processing time for certain process or procedures are bad for continuous business growth. This problem occurs because of poor management structure that applied by the organization especially for a company having parent-subsidiaries company. Thus, this paper is to highlight the importance of management structure for organization. Eventually, this paper compares the most suitable structure between centralized and matrix structure management approach in order to implement in Malaysia’s expanding oil and Gas Company. Based on the literature review had been reviewed, theories that explained about managing in an organization is contingency theory which can define "the best way of organizing depends on the environment the organization operates in" (Scott, 2004). On the other hand system theory explained on the “of abstract social communication systems conceptualizes social structures and organizations as systems of inter-human communications.” (Ott and Shafritz, 1996). According to (Kuprenas, 2003a) system theory is a traditional hierarchy overlaid by some form of lateral authority, influence, or communication. Conversely, centralize management is the organizational structure that provides authority to the company (Maleki, 2014) and matrix management is designed based on the functional and project organization (Larson and Gobeli, 1987). By assuming operation of organization depending to communication within the internal and external parties in the organization, thus time response which took for communication would be the benchmark in proposing the suitable management structure. This paper focus to investigate the behavior of centralized and matrix structure management which has been implemented in oil and gas companies in Malaysia with condition it is a ‘mother – daughter’ company. Furthermore, this study to give the best picture especially mother company organization to determine the best organization structure to be implement. The right selection will drive organization to improve and increase the level of communication, operation and business opportunities between internal and external parties of organization. This may help to improve the business operation between internal and external parties within the organization which always faced problem and difficulties in communication among staff, vendor and client.
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In-Text Citation: (Johari, 2019)
To Cite this Article: Johari, M. J. B. M. (2019). Are you Receiving Complaints Regarding Processing Time Response? The Suitable Management Structure for Expanding Oil and Gas Contractor in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(7), 670–685.
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