Organizational structure defines the way in which the people and resources are organised and coordinated by the authority to achieve the organizational goals. Hybrid structure, otherwise known as matrix structure, is a type of organizational structure within a company/organisation that is a combination of functional and divisional structures. It features the efficient use of resources and expertise development found in functional structures (where the employee's positions are organised by specialised areas, or functions) and the flexibility among command found in divisional structures (where employees are organised by the similarity of their markets and products).

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 staffs are readily available, projects are launched quickly, thus increasing the efficiency of the organisation.

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.


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.


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 much confused about the line of authority. There can also be confusion regarding the roles and responsibilities of each employee.

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.