Certification in Supplier Diversity Practice Exam

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What defines a hybrid organization structure model?

Supply chain decisions are made independently by all units
Only one central organization makes all decisions
Authority is shared between central and business units
It has no specialization in supply management

The correct answer is: Authority is shared between central and business units

A hybrid organization structure model is characterized by its unique combination of both centralized and decentralized decision-making processes. In this model, authority is shared between the central organization and various business units. This approach allows for flexibility and responsiveness to specific market conditions or business needs while also maintaining some level of control and consistency from the central organization. In a hybrid structure, business units may operate autonomously in certain aspects, allowing them to adapt quickly to local or specialized requirements. However, they still adhere to overarching goals and policies set by the central authority, ensuring alignment with the organization's overall strategy. This balance between independence and oversight enables the organization to benefit from the strengths of both centralization and decentralization, leading to improved efficiency and effectiveness in operations. This definition clarifies the nature of hybrid structures, positioning them as dynamic frameworks that leverage the advantages of each approach in organizational design.