Question

1. Which type of organizational structure does Saudi Aramco currently have? Functional structure, divisional structure, or matrix structure? Provide evidence.
2. What organizational structure does it use to govern its foreign market operation (International Division Structure, Worldwide (3-dimensional) Matrix, Worldwide Product Division Structure, or something else)?

(Questions do not belong to a specific case, just on the organizational structure Saudi Aramco currently has.)

Answer 1

Answer 1:

Organizational structure of Saudi Aramco: Currently Saudi Aramco has Functional structure.

Explanation:

The current organization structure of Saudi Aramco on their official page clearly demonstrates that their different operations are managed by following functional departmental hierarchy. Amin H. Nasser is the CEO and under his leadership several departmental heads are functional. All the departments namely: HR, Downstream, Finance, Strategy & development, Legal & strategy, Operations and services, technical services and upstream work under vertical structure under CEO. Further these departments have sub-functional structure. For example Fuel Retail & Lubricants functions under downstream department.

Another evidence that Saudi Aramco has functional structure is that all the functional specialized units report to a single authority their heads who in turn reports to CEO.

Answer 2:

Saudi Aramco implements International division structure to govern its foreign market operation. Saudi Aramco has created independent international division in different locations worldwide. It has its subsidiaries in Asia (That manages operations in India, China (including Taiwan Province), Japan, South Korea, and the Philippines), Europe and America and other parts of the world.

The in-charge of subsidiaries reports to the head of the international division who in turn reports to CEO.