Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does a hybrid organizational structure combine?

1. Only functional departmentation

2. Functional departmentation with elements of product and geographic departmentation

3. Exclusively product-based departmentation

4. Centralized decision-making with no departmentation

The correct answer is: Functional departmentation with elements of product and geographic departmentation

A hybrid organizational structure is designed to integrate multiple forms of departmentation to optimize the effectiveness and efficiency of an organization. This structure typically combines functional departmentation—where the organization is divided into departments based on specialized functions (like marketing, finance, and operations)—with elements of product and geographic departmentation, which allows the organization to focus on specific products or different geographic regions. By incorporating both functional and product or geographic elements, a hybrid structure facilitates flexibility and adaptability, enabling the organization to respond to diverse market demands and operational complexities. This approach allows for specialization within functions while also promoting focus on specific markets or product lines, ultimately supporting both efficiency in operations and effectiveness in meeting customer needs. This balance is crucial for organizations that operate in dynamic environments where both functional expertise and responsiveness to product or market changes are essential for success.