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Select Any One Of the Following Options: Characteristics of Diversification model isCentralized management of functional/process/business unitAutonomous business unit leaders with limited discretion over processesBusiness unit control over business process designHigh Level of Process Standardisation

Question

Select Any One Of the Following Options: Characteristics of Diversification model isCentralized management of functional/process/business unitAutonomous business unit leaders with limited discretion over processesBusiness unit control over business process designHigh Level of Process Standardisation

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Solution 1

The characteristics of a Diversification model include:

  1. Autonomous business unit leaders: In a diversification model, each business unit operates independently. The leaders of these units have the autonomy to make decisions regarding their processes, strategies, and operations.

  2. Limited discretion over processes: Although business unit leaders have autonomy, they have limited discretion over processes. This means that while they can make decisions, they must still adhere to certain guidelines and standards set by the central management.

  3. Business unit control over business process design: Each business unit has control over its own business process design. This allows for flexibility and adaptability, as each unit can design processes that best suit its needs and objectives.

  4. High level of process standardisation: Despite the autonomy of business units, there is still a high level of process standardisation. This ensures consistency and quality across all units. It also facilitates coordination and integration among different units.

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Solution 2

The characteristics of a Diversification model typically include:

  1. Autonomous business unit leaders: In a diversification model, each business unit operates independently. The leaders of these units have the autonomy to make decisions and control processes within their respective units.

  2. Limited discretion over processes: Although business unit leaders have autonomy, they may have limited discretion over processes. This means that while they can make decisions, there may be certain guidelines or standards they must follow.

  3. Business unit control over business process design: In a diversification model, each business unit has control over its own business process design. This allows each unit to tailor its processes to its specific needs and goals.

  4. High level of process standardization: Despite the autonomy of each business unit, there is often a high level of process standardization across the organization. This ensures that all units are following the same basic procedures and guidelines, which can help to maintain consistency and quality across the organization.

Please note that the level of centralization or decentralization in management can vary in a diversification model, and it is not a defining characteristic.

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