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Summer 2013
An organizational structure is a hierarchical framework that determines communication, workflow, reporting procedures and responsibilities. According to the Community Tool Box, the three important elements of organizational structure are governance, rules of operation and distribution of work. A hybrid organizational structure is a framework that uses more than one reporting structure at the workplace. For example, the combination of functional and product structures forms a hybrid organizational structure. In a hybrid organizational structure, employees are asked to work on multiple projects and report to multiple bosses. Under an ideal scenario, an engineer working on a project reports his project manager. However, in the hybrid structure, the engineer might be asked to work on another project for a brief period if a need arises, leading to a situation where he reports to both the project managers. Advantages of Hybrid Organizational StructureThe major advantage of a hybrid organizational structure is high flexibility. It allows the organization to optimize the value of employees by engaging them with multiple projects. Organizations with hybrid structures rarely feel the workforce scarcity because they can quickly transfer suitable candidates from one project to another. Hybrid structure helps employees learn new processes and improve functional knowledge within a short period. Employees who work under hybrid structures tend to progress quickly in their professional careers. A hybrid structure increases employee loyalty. Employees feel that their skill sets are valued, so they stay with the organization for a longer period. The hybrid structure increases productivity and efficiency by making employees feel more invested in their positions. It also creates a shared vision and facilitates better coordination between the projects or teams. Disadvantages of Hybrid Organizational StructureA hybrid organizational structure creates conflicts in reporting. It also leads to scheduling conflicts if an employee is needed for both projects at the same time. Employees feel suffocated if the managers of both projects have equal authority. In some cases, conflicts arise between the managers about where to deploy the resource. According to Corporate Finance Institute, a hybrid organizational structure leads to conflicts between vertical functions and horizontal product lines. The hybrid structure can lead to chaos and low productivity if the roles and responsibilities of the managers are not identified and communicated properly. The workload in organizations with a hybrid structure is high because employees are asked to carry out additional project tasks besides their day-to-day functional tasks. Employees often feel burnout and pressure of over delegation in hybrid structures. Example of a Hybrid OrganizationStarbucks is an example of a hybrid organizational structure. Starbucks implements a mix of three organizational structures: functional structure, geographical structure and product-based structure. Starbucks has functional departments such as finance, marketing and human resources. The corporate HR department of Starbucks develops and implements organizational policies across all geographical divisions, including America, Asia-Pacific, Europe and Africa. The HR manager operating in the United States is responsible for implementing organizational policies across the stores in the United States and reports to his functional head (the corporate HR manager) as well as the geographical head (the president of American operations) simultaneously. Organizational structures in organizations evolve over time. As an organization grows in terms of employees and product lines, the senior management team amends the organizational structure to streamline communication and workflow. Whenever there is a change in organizational structure, employees are trained to realign their responsibilities and follow changed reporting procedures. *Advantages of matrix departmentalization are the ability to efficiently manage large andcomplex tasks such as researching, developing, and marketing and the pool of availableresources.*Disadvantages of matrix departmentalization are that it requires high levels ofcoordination, the conflict between bosses, and it requires high levels of managementskills.*A simple matrix is a form of matrix departmentalization in which managers in differentparts of the matrix negotiate conflicts and resources, whereas a complex matrix is wheremanagers in different parts of the matrix report to matrix managers, who help them sortout conflicts and problems.*Authority is the right to give commands, take action, and make decisions to achieveorganizational objectives.*CHAIN OF COMMAND is the vertical line of authority that clarifies who reports towhom throughout the organization.This creates a unity of command because workersreport to only one boss, but matrix organizations violate this principle.When SteveBallmer took over the CEO position at Microsoft from Bill Gates, the new chain ofcommand was surprisingly unclear. Once they became comfortable with the change,however, the new structure proved to be a success.*LINE AUTHORITY is the right to command immediate subordinates in the chain ofcommand.For example, CEO Steve Ballmer has the line authority over the manager ofthe Homes and Entertainment Group.He can issue order to that group VP and expectthem to be carried out.*STAFF AUTHORITY is the right to advise, but not command, others who are notsubordinates in the chain of command.For example, at Microsoft a manager in humanresources might advise the VP of MSN on a hiring decision but cannot order him or herto hire a certain applicant.*A line function is an activity that contributes directly to creating or selling thecompany’s products (such as manufacturing and marketing departments) where a staff4 Is a hybrid organizational structure in which two or more forms of departmentalization?Matrix departmentalization is a hybrid structure in which two or more forms of departmentalization, such as the product and functional forms are used together.
Is a hybrid form of departmentalization?Hybrid structure is a form of departmentalization that adopts parts of both functional and divisional structures at the same level of management.
What is the matrix departmentalization?In matrix departmentalization, the company's employees are typically divided & distributed into varied departments. However, they are permitted to work with employees of other teams or departments, if needed, to complete any specific projects.
What is function departmentalization?What is functional departmentalization? Functional departmentalization is an organizational structure where business leaders divide teams according to the professionals' areas of specialization.
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Is a hybrid organizational structure in which two or more forms of departmentalization are used together?
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