The design results from a strategy of related diversification.

Divisional (M-form) design

Explanation:

Multi divisional organization Design results from a strategy of related diversification.

In such design the business is spread all around the country or region ,or multiple products or services.

The business owner spread the business all around the region where the employees work for the one goal and one product or multiple products assigned by the business owner. In such businesses the major decisions use to make in head office and then circulated to the bottom.

Advantage of such business design is that the line managers are responsible for any  excellence and poorness of the business. The higher management gives goals and vision to the line manager of specific firm working in the different regions. The line managers of the firm use to attend the meetings and propagate the message to employees and they motivate them to work for vision.

Disadvantage In such designs is that sometime the line managers use to make monopoly in the firm. They hire and fire the employee for their own satisfaction not for the betterment of the company. So in this  way the company suffers and can not achieve the goals set by the business owner.

The owner is not having one to one meeting with the employees so the professionals may not be retained by the company.

For example a school xyz is having the branches all around the region and the owner is only one. The owner has hired the managers to run the each branch of the school. It is best way to expand the business in different regions but at the same time the quality of the business would be compromised due to different line managers working for the project. Here in this case the more potential manger can achieve the goals but the normal one could not do so. So here the quality of the firm or company would be compromised.

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