The H-Form Organizational Design

 In the H-form organization, H stands for Hybrid and is also known as conglomerate. The design relics on product departmentalization with the various products constituting different businesses. This design usually results from the corporate strategy of unrelated diversification of the products.

This design has two advantages. First, such an organization can protect itself from cyclical fluctuations in a single industry. The loss in one product is compensated by profit in another. Secondly, an organization can buy and sell its individual businesses with little or no disruption to the others. The main disadvantage of this form of organization is that it is complex and diverse thereby creating difficulty for top managers in having knowledge about all products.