Certification in Supplier Diversity Practice Exam

Which of the following is NOT a form of a hybrid organization?

1. Buying councils or commodity teams

2. Lead division purchasing center

3. Centralized purchasing authority

4. Geographic regional buying teams

The correct answer is: Centralized purchasing authority

The identification of centralized purchasing authority as not being a form of a hybrid organization stems from understanding the distinct characteristics of hybrid organizations. A hybrid organization typically combines elements of both centralized and decentralized decision-making, allowing for flexibility in procurement strategies while integrating various purchasing approaches across different divisions or regions. Centralized purchasing authority, in contrast, operates primarily under a strict centralized structure where purchasing decisions and strategies are controlled from a single point. This approach limits the autonomy of individual departments or regions, making it less adaptable than a hybrid organization, which benefits from diverse input and localized decision-making. In contrast, buying councils or commodity teams, lead division purchasing centers, and geographic regional buying teams all exemplify features of hybrid organizations by integrating different layers of purchasing authority and collaboration across various business units or geographical regions. Each of these reflects a blend of centralized coordination with localized input or expertise, thereby enhancing agility and responsiveness in procurement processes.