April 17, 2023
organizational structure of management of Gazprom
During my research, I examined ten sources to gather information on the organizational structure of management of Gazprom. Most of the information was found in two main sources: "Organizational Vision Analysis Gazprom Oao Mana..." from UK Essays and "7.1 Building Organizational Structures" from OpenStax. Other sources provided minimal or no relevant information regarding the query. Based on the information gathered, I have moderate certainty regarding the organizational structure of Gazprom.
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Organizational Structure of Gazprom
Gazprom is a global energy company with a primary focus on the geological production, exploration, storage, processing, marketing, and transportation of gas, along with other hydrocarbons, and production and distribution of electric power and heat energy. The company has undergone various developmental phases to ensure a corporate structure compatible with its business operations, allowing it to compete successfully in both domestic and foreign markets.
The first phase of Gazprom's corporate reform was aimed at enhancing regulatory procedures, techniques of management, and the system of developing and implementing budgets. The primary purpose of the second phase was to improve the company's efficiency as a vertically integrated firm and ensure that the core structure of business management is streamlined to all its subsidiaries.
Gazprom operates its business through five valuable segments, including Exploration and Production, Refining, Marketing, Electric Power, and Transportation and Storage. It is a Russian oil company with departments such as Exploration and research, Production (drilling), Refining, and Marketing and distribution.
Organizing within Gazprom involves determining work activities and dividing up tasks (division of labor), grouping jobs and employees (departmentalization), and assigning authority and responsibilities (delegation). The formal structure within the organization includes well-defined lines of authority, channels for information flow, and means of control.
Organizational units within Gazprom can be grouped based on primary functions performed (functional departmentalization), goods or services produced or sold (product departmentalization), production process used (process departmentalization), primary type of customer served (customer departmentalization), or geographic segmentation (geographic departmentalization). Many large organizations, such as Gazprom, use several types of departmentalization.
Gazprom's line-and-staff organization includes clear lines of authority and communication flowing from top managers downward (line organization) and provides specialized advisory and support services to line managers (staff positions). In Gazprom's hydrogen LLC, groups are formed using modern management methods for innovation and pilot projects focused on hydrogen energy project approach.
Gazprom had to reform its organizational structure to match business operations.
The first phase of Gazprom's reform was aimed towards improving regulatory procedures, techniques of management and budget implementation.
The primary goal of the second phase of Gazprom's reform was to improve the company's efficiency by streamlining business management to its subsidiaries.
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What are the implications of Gazprom's organizational structure on its ability to meet its strategic objectives?
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How does Gazprom's organizational structure compare to that of other energy companies?
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What are the advantages of product departmentalization?
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What are the key characteristics of functional departmentalization?
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What are the main components of a line-and-staff organization?
Source: "Organizational Vision Analysis Gazprom Oao Mana..." (from web, www.ukessays.com)
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Gazprom is a global energy company primarily focused on the geological production, exploration, storage, processing, marketing and transportation of gas, along with other hydrocarbons, and production and distribution of electric power and heat energy.
- It is the world’s richest natural gas reserve holder.
- It has a share of 18% and 72% in its global/international and Russian gas reserves market, respectively.
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Gazprom has a mission “to be the reliable, balanced and efficient supplier of the natural gas in addition to various energy resources along with the company’s derivatives to the consumers.”
- The strategic objective is to establish itself as the leader among all the international energy companies by means of entering into new markets, ensuring diversification of its activities and developing cordial and trustworthy relations with the suppliers.
- The goals of the company include increasing the fulfillment of energy needs of Russian market, enhancing the transformation network of the gas market at domestic level, taking initiatives that will reform the sector to make it an attractive and potential investment market, and widening the role in the international market by following a strategic diversification strategy.
- The total number of people employed in Gazprom is about 404.4 thousand.
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The organizational structure has undergone various developmental phases to ensure a corporate structure compatible with its business operations, which allowed it to compete successfully in both domestic and foreign markets.
- The current structure is a huge vertically integrated energy firm with subsidiaries performing important functions such as the exploration, storage, transportation, processing, distribution, production and marketing of the natural gas.
- The company operates its business operations through five valuable segments that comprise of Exploration and Production, Refining, Marketing, Electric Power, and Transportation and Storage.
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The primary aim of the company is to focus on the implementation of its projects by ensuring the maintenance of long-term relationships with the constituents of Russia.
- Gazprom has undertaken the steps to align its business activities appropriately with its mission and strategic objectives, including improving the supply of gas to the European consumers, developing to make it an attractive place for investment, enhancing the transmission network at the local level, following a well-integrated diversification strategy, and undertaking strategic projects.
- Gazprom has a strong emphasis on the environmental activities, implementing Comprehensive Environmental Program that ensures that all operations of the company are within the ethical code of business conduct for developing environmental-conscious processes.
- None.
Source: "7.3 Organizational Structure - Principles of Ma..." (from web, open.lib.umn.edu)
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“Organizational structure of management of Gazprom” query
- None
Source: "7.1 Building Organizational Structures - OpenStax" (from web, openstax.org)
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Gazprom Neft is a Russian oil company with the following departments:
- Exploration and research
- Production (drilling)
- Refining
- Marketing and distribution
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Organizing involves:
- Determining work activities and dividing up tasks (division of labor)
- Grouping jobs and employees (departmentalization)
- Assigning authority and responsibilities (delegation)
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A formal structure within an organization includes:
- Well-defined lines of authority
- Channels for information flow
- Means of control
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Organizational units can be grouped based on:
- Primary functions performed (functional departmentalization)
- Goods or services produced or sold (product departmentalization)
- Production process used (process departmentalization)
- Primary type of customer served (customer departmentalization)
- Geographic segmentation (geographic departmentalization)
- Many large organizations use several types of departmentalization
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Line-and-staff organization includes:
- Clear lines of authority and communication flowing from top managers downward (line organization)
- Provide specialized advisory and support services to line managers (staff positions)
Source: "Organization structure - Gazprom hydrogen LLC" (from web, hydrogen.gazprom.com)
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Gazprom hydrogen LLC focused on hydrogen energy project approach
- Appropriate groups formed using modern management methods for innovation and pilot projects
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What is the organizational structure of the management of Gazprom?