Hybrid organizational structure is widely used in companies to increase the overall productivity. In this article, we shall know more about the concept and its advantages in detail.
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 divisional as well as 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
A divisional organizational structure has multiple teams which are entirely focused on the development of a single product. The best example of such a structure can be a company that 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 hierarchical grouping of employees by the higher authorities. The employees are expected to report 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. However, lack of communication in the groups is considered to be a disadvantage of functional structure.
Advantages of the Hybrid Structure
The hybrid structure consists of multiple organizational designs. It is the result of two different organizational structures that 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 good performance for the benefit of the organization.
Unity Among 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 to attain set goals. Cross-cultural unity has helped many small organizations become large corporations with operations in several regions.
This organizational structure is much more flexible as compared to divisional and functional structures. Hybrid organizations have different product lines which gives them a competitive advantage in a market which has many participants. A flexible organizational structure helps keep 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 the decision-making process is very essential to make junior-level employees a part of the organization’s growth. It has been observed that the autocratic leadership process in which the management imposes their rules, which the juniors follow without voicing their opinion, may not be favorable for organizational growth. Giving power and rights to 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.
A hybrid organization is 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. However, it can safely be said that in today’s business environment, the hybrid organizational structure is among the best.