What is Diversification and Decentralization? Discuss the benefits and limitations of profit decentralization

### Diversification and Decentralization in Human Resource Management Control Systems

Diversification and decentralization are crucial strategic concepts within human resource management (HRM) and organizational control systems. They reflect how organizations expand their operations and distribute decision-making authority, respectively.

#### Diversification

Diversification refers to a strategy where a company expands its operations into new markets or product lines that are distinct from its core business. This can be done through various means, such as acquiring new businesses, launching new products, or entering new geographic markets. Diversification aims to reduce risk by spreading investments across different areas, which can protect the organization from market fluctuations affecting any single segment.

Benefits of Diversification:
1. Risk Reduction: By spreading operations across different industries or markets, a company reduces its dependence on any single revenue source. This can stabilize earnings and provide a buffer against economic downturns in any one area.
2. Growth Opportunities: Diversification opens up new avenues for revenue and growth. Companies can leverage their existing resources and capabilities to tap into new markets or products.
3. Market Positioning: It can enhance a company's market position and competitiveness by offering a broader range of products or services.
_____ ____ __________ _______ ____ ____ ________ _______ _______ ________ _______.
________ _____ _________ ________ ______ __________ ______ ___ _____ ______.
______ __________ _______ _______ ________ ________ _______.
____ ________ __________ __________ ______.
_______ ___ _____ _________ ______.
____ ___ _________ ___ _________ ____ ______ ______ __________ ________ ___.
______ _____ ____ ____ _______ ____ _____ ____.
______ _______ ____ ______ _________ ______.
_________ ___ ____ _________ __________.
_________ ___ ____ ___ _______ _________ ______ ___ ___.
__________ _______ ___ ______ ______ _______ _________ ______ ________.
____ ________ _______ ________ _____ ___ ________ ___ __________ ____.
___ _____ ________ ____ _____ __________ ________ ____ ____ ______ ___.
__________ ____ _______ _________ __________.
__________ _________ ______ __________ ______ ___ ___.
______ ___ ______ __________ ________ __________ ____ _____.
_______ ___ ___ _____ _____ ________ __________ _______ ________ ______ ______ _______.
_______ _________ ________ _____ __________ ______ ___ ____.
_______ _______ ____ _________ _________ _________.
_____ __________ _____ ________ ______ ________ __________.
___ _________ _______ __________ ___ __________ _________ _______.
______ ___ __________ __________ _______ ______ __________.
____ ______ ______ _________ ______ _______ _______ ________ __________.
_____ ____ _______ ________ _______ _______ _______ __________ ________ _____.
__________ _____ ___ ____ __________ __________ ________ ___ _____ _________ ______.
___ ____ ________ __________ _______.
_______ ____ ________ _______ ______ ________ ____.
_________ _______ _____ _________ ___.
____ __________ _______ ________ __________ __________.
________ ______ ___ _______ ______ _______ __________ _________ _____ __________.
________ ______ __________ _____ ________ _____ _________ ________ __________ __________.
___ ___ ____ ___ ______ ____.
____ ____ ______ ___ ___.
________ ________ ___ ____ ___ ___ _______ _____ ________ ______.
___ ________ _____ ______ _____.
_____ __________ __________ _______ _________ ___.
___ __________ ___ ___ _______ __________.
____ _______ __________ ________ __________ _______ ________.
_________ ______ __________ ___ ______ ____ ________ ________ ________ _________.
_______ ____ _____ ______ _________ _____ ________ _____ ___ _________ _______ ________.
______ _____ ____ __________ ________ ___ _____ ____ ___.
_____ ___ _________ _____ _____ __________ ____.
___ _____ _________ _________ ______ _____ ____ _______ ________.
_______ ______ _________ ______ _______ _______.
___ ________ _____ ________ _______ ____ _____.
_________ ________ _______ _______ ____ ___ __________ ____ _____ _________.
_________ _______ ________ ______ ________ __________ _____ ________ ________ ___ ________.
________ ____ _____ ___ _________ _________.
_________ ____ ________ _____ ___ ______ _________ _________ _______ _______ ____.
________ _______ __________ ________ _____ ___ ______ ___ _______ _____.
______ ______ ___ ___ _____.
_____ ___ ________ _________ _____ _________ ___ ________ ________ ____.
__________ _______ _____ ______ ___ ___ ____ ___ __________ ___.
___ ________ __________ ______ ____ _________ __________.
____ ______ _______ ____ ________ ___ ____ ______.
____ _______ ______ _______ ___ ____ ________ ____ _________ __________ ____ _____.
__________ _________ _______ ____ _______ ___.
_______ _______ __________ ____ _____ _____ _______ ____ ___ __________ _____ ______.
____ ______ ___ ____ _____ ___ ________ _____ ___.
___ ____ ________ ______ __________ _________ ______ _______.
_________ _________ _______ _____ _______.
____ __________ ________ ____ __________ _____ __________ _________.
______ ________ ________ _______ ________ __________ _________.
_____ ________ _________ ___ __________ _____ ____ ________ _______ _____ _______ __________.
________ ____ ______ ________ __________ _________.
_______ ______ _____ _____ __________ ___ ______ ________.
______ ________ _________ ______ ______ _____ ________.
_____ _______ ________ _____ _______ ______ ________ ____ ____ ___ _________ ___.
______ __________ ______ _________ __________ _________ _____.
_____ ________ ___ ____ _____ _______ ________ ________ ______ ______ _____.
__________ ____ ______ __________ ________ _______ _______.
_____ ________.
Get Full Answer on WhatsApp