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Hybrid Organisation

What is a Hybrid Organisation?

A hybrid organisation is an organization that mixes elements, value systems and action logics (e.g. social impact and profit generation) of various sectors of society, i.e. the public sector, the private sector and the voluntary sector. A more general notion of hybridity can be found in Hybrid institutions and governance.

According to previous research hybrids between public and private spheres consist of following features:

  1. Shared ownership
  2. Goal incongruence and different institutional logics in the same organisation
  3. Variety in the sources of financing
  4. Differentiated forms of economic and social control

What are the effects of Hybrid Organisation?

As hybrid organizations combine diverse stakeholder groups, the potential for conflict within them might be greater. This is the challenge of stakeholder management.

This problem is similarly emphasized from the perspective of agency theory.The purported 'numerous main issue' joins different aggregate activity issues that can happen with hybridity. Free-riding or duplication in controlling and observing methodology can bring about significant expenses. Essentially, mandate vagueness or campaigning of the enterprises by singular partners can instigate wastefulness. 

Any strains can have positive and negative monetary, execution related, social and administration related impacts for the association, its standards, and its clients. For example, for state-possessed endeavors, Schmitz (2000) contends that the blend of open and private interests brings an ideal mix of motivating forces for decreasing expenses and improving quality in correlation with unadulterated generation forms.In differentiate, Voorn, Van Genugten, and Van Thiel (2017) theorize that assorted variety of proprietorship may prompt advantages, for example, specialization and expanded proficiency, yet in addition drawbacks, for example, expanded disappointment rates.

What are the examples of Hybrid Organisation?

Examples of hybrid forms of organization include:

  • Public service organization that were established by societal actors, such as (in the European context) most social housing providers, public schools and hospitals;
  • Public sector organizations that behave in a business-like way, such as state-owned enterprises that also compete on the marketplace;
  • Private sector organizations that include franchising, joint ventures, and business groups;
  • Microfinance organizations
  • Hybrid corporations engaging in corporate social entrepreneurship, progressing social and environmental activity in addition to returns for shareholders.

What are the main Organisational elements of Hybrid Organisation?

The hybrid organization comprises four major organizational elements: 

1.) Core structure or backbone – it secures the overall strategy, governance and synergies across the corporation 

2.) Functional units – they assure the operational excellence, protection and further development of the company’s key capabilities, skills, and competencies 

3.) Agile units – they operate closely to/with the customer and the market. They execute the operational business, especially in volatile environments. 

4.) Shared services – they represent the interface between the agile (3.) and the functional (2.) units

What are the advantages of Hybrid Organisation?

  1. Increased Efficiency

The major advantage of hybrid structure is the increased efficiency. This structure makes sure that the right quantity of work is assigned at the right time to the right professionals, thus making the optimum use of resources and prevention of waste. This structure works very well even when the resources are scarce. As the specialised staff are readily available, projects are launched quickly, thus increasing the efficiency of the organisation.

  1. Development of Cross-Functional Skills

In hybrid structures groups are formed considering the specialisations as well as services. Thus employees with different skills are mingled together which gives an opportunity to learn and develop a variety of skills from many other participants. This is the main advantage of hybrid structure in terms of the personal growth of employees, which can be later utilised by the organisation. This also results in minimisation of projects costs, as resources can be shared.

  1. Flexibility

The hybrid organizational structure is more flexible than divisional and functional structures. There exists a healthy relationship between the senior managers and junior employees. This helps in addressing all employee problems easily, thus increasing the effective output from the employees.

  1. Conflicts

The major disadvantage of hybrid structure is the chance of having conflicts between corporate departments and divisions. There could be dilemmas among project managers and department managers regarding deadlines and resources. Many employees become very confused about the line of authority. There can also be confusion regarding the roles and responsibilities of each employee.

  1. Too Much Administration Overhead

Waste of time and effort come into picture in case of hybrid organisations. To resolve the conflicts that happen between divisions and corporate departments, time and effort get wasted in the form of meetings. Meetings are also required for better utilisation and coordination of staff in case of two or three concurrent projects.

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