Diversification is typically defined as a strategy that takes the organization into new markets and products or services and therefore increases the diversity that a corporate parent must oversee. Diversification might be undertaken for a variety of reasons, some more value-creating than others. Three potentially value-creating reasons for diversification. Firstly, there may be efficiency gains from applying the DPWN’s existing resources or capabilities of new markets or services. There is economics to be gained by extending the scope of the DPWN’s activities. Secondly, there may also be gains from applying corporate managerial capabilities to provide new services. At this level, managers may develop a capability to manage a range of different services which although they do not share resources at the operational unit level. Finally having a diverse range of services can increase market power. With a diverse range of services, DPWN can afford to cross-subsidies one product from the surpluses earned by another, in a way that competitors may not be able to. This gives DPWN a competitive advantage and the long-term effect may be to drive out other competitors, leaving the DPWN with a monopoly from which good profits can be earned.
Diversity management has initiated in the late 1990s as an organisational mechanism for faster growth. Implementation of this diversity management in DPWN with a diverse workforce- the human resource managers have a vital role in working with backgrounds, ethnic, gender, racial and religious. In 2007, they commence an employee survey answering the question in relation to customer service, their promise to employees and customers and active leadership. They point out the strengths and potential improvements by diversification. The employees recommend about 202 thousand suggestions to improve workflows more proficient, remove environmental problems and reducing costs and increasing profits up to €257 million.
In part of the diversification, they develop their website to increase customer service as well as provides recruiting instruments. In part of the diversification, they develop their website to increase customer service as well as provides recruiting instruments. DPWN announce about 19 thousand online jobs and at most half, a million candidates applied for these online jobs. The HR departments of DPWN scrutinize the demographic growth and maintain a standard to prepare HR planning. They are monitoring the demographic risk such as interest rate risk, market risk, credit risk, technology risk, operational risk, foreign exchange risk and Country sovereign risk. These monitoring processes help to improve the strategy of DPWN.
From the beginning of 2007, it introduced a practice that is now they provide personal performance feedback from managers, supervisors to all general employees. This year company allowed 360-degree feedback to advance both personal improvement and self-reflection. Besides that, in 2004, they introduced a post for an internal talent broker and they are searching for a competent person for this job.
Mergers and acquisitions may have advantages of speed and the ability to acquire competencies not already held in-house. Acquisitions often in dramatic changes in the purpose of organizations involved with the resultant impact on a wide range of stakeholders. Postbank incorporated the last year’s acquisitions in its operating business. However, the track record of acquisitions is not good, largely owing to cultural differences.