„Hybrid” form of organisation structure

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„Hybrid” form of organisation structure
 Hybrid structure: A structure adopting both functional and divisional structures at the
same management levels. A hybrid organization is a body that operates in both the public
sector and the private sector, simultaneously fulfilling public duties and developing
commercial market activities. As a result the hybrid organization becomes a mixture of both a
part of government and a private corporation. This especially leads to value pluralism:
managers and workers in hybrid settings, as well as the politicians steering and controlling
them, have to combine public and private interests, values, cultural orientations and
syndromes.
The hybrid organization is not only mix of public and private organization, it is a wider
organizational concept based on postmodern perspective of organization theory.
Examples include universities that provide consultancy services on a commercial basis, social
housing providers that compete with commercial property developers, public schools that
offer trainings for companies and hospitals that provide private medical check-ups.
Hybrid organizations have strong as well as weak points. The combination of public duties
and commercial activities can have significant synergy effects. But there is also the risk of
unfair competition and that market activities could oust public activities.
 Hybrid structure
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Advantages:
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Alignment of corporate and divisional goals
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Functional expertise and/or efficiency
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Adaptability and flexibility in divisions
Disadvantages:
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Conflicts between corporate departments and divisions
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Excessive administration overhead
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Slow response to exceptional situations