Management of divercificaiton in the public sector

Abstract

Public enterprises in India are rapidly diversifying their business as a response to environmental changes as well as to achieve their growth, profitability and other strategic objectives. Hence, management of diversification has emerged as a major task of PEs. Most PEs are diversifying into related and technologically sophisticated fields; unrelated diversification is not very uncommon. Based on research done by the authors and pertinent studies byothers, three modes of growth and diversification have been conceptualised. The more effective modes amongst them have been identified and the conditions facilitating successful diversification have been delineated. Diversification creates the need for major changes in organizational structure, systems, and management processes.