Hybrid Organizational Structure

Having a proper organizational structure is essential for companies belonging to all sectors of the economy to make progress on the business front. A well planned organizational structure can lead to increased efficiency and this will reflect on the revenue and profits of the firm. Among the different types of organizational structures is a hybrid organizational structure. It has been defined as the combination of the divisional as well as the functional structures. A hybrid organizational structure has all the advantages of these structures. Knowing what is a hybrid structure is possible only when you know the meaning of divisional and functional structures separately.

Divisional Organizational Structure

The divisional organizational structure has many teams which are entirely focused on development of a single product. The best example of such a structure can be a car company which sells cars with different names. Concentration on a single product can help the company achieve perfection and better results. However, the drawback of this structure is that competing with divisions in the same company can lead to conflicts and office politics, which can affect the total output.

Functional Organizational Structure

Functional organizational structure consists of the hierarchical grouping of the employees by the higher authorities and they are supposed to report their work to a single person in the top management. The main advantage of this organizational structure is that the lines of instructions are very clear and that employees come together to perform certain tasks in the organization which results in better output. Many times, lack of communication in the groups is considered as a disadvantage of functional structure.

Hybrid Structure Advantages

Increased Efficiency
Hybrid structure consists of multiple organizational designs. It has two different organizational structures which have been combined together. The main aim behind the formation of such a structure is to improve the efficiency and manner of functioning of the company. As we all know, running an organization smoothly is not one man's job, it requires a team of dedicated and talented professionals. These professionals should be assigned work in the right quantity and at the right time. The most important feature here is that it makes work allotment and distribution extremely easy for the senior level management. This structure lays emphasis on giving employees the work in which they are experts, to ensure that they deliver a good performance for the benefit of the organization.

Creates Unity Among the Staff Members
Hybrid organizational structure is crucial for creating a sense of unity among the employees of the organization. Such an organizational structure is useful to carry out business operations on a very large-scale. Individuals, belonging to different regions work closely with each other in a hybrid organization for attainment of set goals. Cross cultural unity has helped many small organizations become large corporations with operations in several regions.

Flexibility
This organizational structure is much more flexible as compared to the divisional and functional structures. Hybrid organizations have different product lines which gives them competitive advantage in a market which has many participants. Flexible organizational structure helps keep the relations between the senior management and junior employees cordial through consistent dialog and interaction. Also, all sorts of employee problems, grievances and doubts are easily addressed.

Decentralization of Decision-making
Decentralization of the decision-making process is very essential to make the junior level employees a part of the organization's growth. It has been observed that the autocratic leadership process in which the management lays their rules, and when the juniors follow them without voicing their opinion, may not be favorable for organizational growth. By giving power and rights to the junior level employees to take some decisions on their own, can help build their confidence steadily.

Optimum Use of Resources
Optimum use of available resources is possible with the hybrid organizational structure. Resources are valuable and if they are put to the best use, they can help the company achieve its financial goals. Under this organizational structure, wastage of time and resources can be completely avoided.

Apart from this structure, the matrix organizational structure, functional structures, virtual structures and team structure are also well-known in the industry. Hybrid organizations are operational in both, the public as well as the private sector. Hence, it caters to the needs of government as well as private bodies which is indeed a major plus point. This structure's implementation is a big challenge which the company management needs to take up seriously. So, we conclude that this structure, is without any doubt, the best one in today's modern business environment.