Designing a hybrid organization structure based on competences: the importance of the organizational structure

Purpose The purpose of this study is to propose a comprehensive model of a hybrid organizational structure through action research, aiming to fill a gap in the literature on organizational structure implementation. The focus is on designing a model that integrates structural elements (centralization and specialization) and a non-structural element (competence), emphasizing operational efficiency and innovation capacity. The study was conducted in the production scheduling and control department (PSC) of a manufacturing company, with quantitative results demonstrating the feasibility of the proposed model. Design/methodology/approach The study employs an action research approach to develop a hybrid organizational structure model in three phases comprising ten steps. It focuses on integrating structured elements like centralization and specialization, alongside a non-structural component, competence. The research was conducted within the PSC of a manufacturing firm. This methodological framework facilitates the systematic design and implementation of the organizational structure model, allowing for a comprehensive analysis of its impact on performance indicators. Findings The quantitative results of the action research revealed a 3% increase in Overall Equipment Efficiency (OEE) and a 4% improvement in On Time/In Full (OTIF) performance metrics. These findings demonstrate the effectiveness and feasibility of the hybrid organizational structure model implemented in the PSC. The structured elements (centralization and specialization) combined with the non-structural element (competence) contributed to enhancing operational efficiency and meeting production goals, underscoring the significance of aligning organizational structure with strategic objectives for improved performance in dynamic competitive environments. Originality/value This study contributes to the literature by addressing the gap in research on implementing organizational structures. It offers a novel approach through action research, proposing a comprehensive model of a hybrid organizational structure. By integrating structured elements (centralization and specialization) with a non-structural element (competence), the model enhances operational efficiency and innovation capacity. The quantitative findings demonstrate the model’s effectiveness in improving performance metrics, emphasizing its value in guiding organizational design processes. This research underscores the importance of aligning organizational structures with strategic objectives to foster competitiveness and adaptability in dynamic business environments.