Hybrid Organizational Structure and Its Factors

Explain the function of the hybrid structure

A hybrid structure is one that is often used in large organizations (Penick 200, p 148). These organizations normally have several divisions that use different organizational structures (Schmdt 2011, p. 3). This form of organizational structure is also referred to as matrix departmentalization. In this structure, functional managers are expected to report to matrix managers. The main mandate of these managers is to assist in sorting out conflicts and problems (Penick 200, p 151). In the North American sales organization, a hybrid structure has been embraced. The organization is divided into energy, government, manufacturing, and retail divisions (Schmdt 2011, p. 3).

Why conduct hybrid structure

This structure is preferred since it allows companies to execute complex tasks, such as marketing, developing, and researching in an efficient manner. It also gives the company the ability to carry out cross-functional interaction. With reference to the North American sales organization, the organization has managed to involve competitive intelligence in the sales operation. The sales operation leader, Jane Albright believes this hybrid structure is useful in maintaining the industry orientation. Albright succeeded in training, staffing, and managing a competitive sales force (Schmdt 2011, p. 4). The structure played a pivotal role in building the infrastructure for a successful sales force.

There are several factors that influence decisions in the hybrid structure. These factors include; power, authority, and control.


This is the power vested upon a manager to use resources in order to achieve the objectives set up by the organization (Gaetano 2010, p. 309). This factor contributes to decision making since the organizations’ chain of the command specifies authority at the different managerial levels. The managers have the authority to give orders and commands to the subordinates they manage.

Authority allows the manager to influence and guide the subordinates in the desired direction. The governance activities within the hybrid structure influence risk-taking behavior by the leaders and managers (Gaetano 2010, p. 309).

When this factor is followed the performance of the organization may be hindered. For example, in the case study of a North American sales organization, Connor had no authority of influencing the decision Ali was to take. She even did not have the power to influence Albright’s decision on the sales support system she introduced. This affected the organization’s performance since her team was divided on the different systems introduced in the organization (Penick 200, p. 157).

Dee and Albright differed about the hybrid structure. The sales department was under much criticism since staff felt the expectations levied upon them. This pressure was directed towards Connor. Lack of authority over her team hindered her effort to streamline the selling process of the organization (Schmdt 2011, p. 6). As a result, the organization’s performance dropped drastically.


This is the manner in which leaders and managers put up the measurement to accomplish standards (Gaetano 2010, p. 308). This factor also ensures that the organization can correct deviations ad ensure the achievement of organizational goals (Functions of Management 2012). An efficient control system will detect a deviation and management can correct it before it occurs. In addition, it doubles up for economizing and reduction of costs (Gaetano 2010, p. 308).

Control is a tool conceptualized to manage the risk in hybrid structures. The governance relation in managing the risks in the organization highly depends on the control activities. The control will also influence trust among the staff. Control will also incorporate other basic aspects of the organization (Gaetano 2010, p. 308). These aspects are establishing standard performance, and measuring the actual performance.

If an organization fails to follow this factor, they may encounter severe consequences. Pressure due to a lack of control over issues that affect the organization disappoints the staff (Penick 200, p 149). For instance, In the North American sales organization, Connor was unable to control the cross-training process proposed by Albright (Schmdt 2011, p. 7). This factor could not determine the deviation of the organization structure. The cross-training process shifted the effectiveness of the team and productivity went down.

Process management and performance management

Performance management is the integration of a wide range of people at all levels of the organization (Ferguson 2008, p. 2). It harmonizes the functions and strategic goals and objectives of all levels in that organization. These are executed together to attain a common goal that the organization should achieve. Performance management is classified into different categories. There are three types of performance management today. They include; corporate performance management, line business management, and operational performance management (Ferguson 2008, p. 2). This type of management integrates financial consolidation, forecasts, and planning when executing its obligations (Ferguson 2008, p. 3).

Process management is the assembly of administration actions and the roles of all management personnel. They entail planning monitoring and performance of staff. In general, it is determined by the application of skills techniques and systems with a view to achieving the organizational goals (Ferguson 2008, p. 1). The management should be able to visualize, measure, and control the different resources in the organization in order to achieve the set objectives.


Ferguson M 2008, ‘A business Process and Performance Management Framework for the Intelligent Business’, Intelligent Business Strategies, p. 1-11.

Functions of Management, 2012. Web.

Gaetano, M 2010, ‘Trust, Contracting, and Adaptation in Agri‐Food Hybrid Structures’, International Journal on food System Dynamics, vol. 4 pp. 305‐317.

Penick, B 2001, ‘The emerging hybrid structure that can best meet the goals of participants in an e-commerce start-up’, Taxes, vol.79 no. 3, pp. 146-168.

Schmdt, S 2011,Baria Planning Solutions, Inc., Fixing the Sales Process’, Harvard Business Publishing, p. 1-13.