What Is a Hybrid Organizational Structure?

Hybrid organizational structure refers to an organizational structure formed by combining two or three organizational structures to set up divisions.

Hybrid organization

Right!

Hybrid organization

First, fully authorize and clarify the autonomy of the business unit

A business unit is a two-level organizational structure of partial power management within an enterprise, which is essentially a reasonable balance of centralized power and decentralized power. The control of business units requires proper supervision and control of decentralization through centralized means, reducing the disadvantages caused by decentralization, enhancing the autonomy of business units, and thus enhancing their competitive advantages.

Second, strict assessment and focus on the performance of business units

The business unit is the profit center of an enterprise. It must pay attention to the assessment of sales revenue, growth rate, market share, and profit of the business unit. The purpose of the assessment is to encourage the active expansion of business units while taking into account the benefits and asset responsibilities

Third, control the business unit from the personnel and financial management.

First of all, the senior management positions of each business unit should be directly appointed and removed by the headquarter company. These people should be trustworthy and highly qualified senior management talents.

Secondly, the financial control of the business unit mainly includes the following aspects: budget control-total control of the revenue and expenditure of the business unit according to the budget; financing control-the company's unified financing, the business unit implements paid occupation of funds; cash control- Centralized management of cash, business units are responsible for their own cash flow balance; profit control-all profits of business units are uniformly distributed by the company's strategy and goals.