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Hi, there. I'm happy to help with this.

The current need for diversification should not cause the organization to divert from its traditional purpose, but rather should cause it to further that purpose.
A) but rather should cause it to further that purpose
B) but should cause it to further that purpose instead
C) but rather should be seen as a way to cause it to further that purpose
D) and should cause it to further that purpose
E) and rather should cause it further that purpose.

The first thing I'll say is --- as I read the sentence as is, I notice that (A) is perfectly correct grammatically, as well as clear, concise, and unambiguous. Not too much to complain about!

Notice the but/and split, visible in the first words of the answer choices. If we are contrasting two opposites, we need the "not . . . but" construction.

He will not lost but win. (correct)
He will not lose and win. (awkward)

So, right away, (D) & (E) are out.

(C) is a god-awful wordy trainwreck monstrosity. It's out.

That leaves (B) and (A). BTW, I don't know the source of this question, but I have never seen a genuine GMAT SC question with two answer choices with this little difference between them.

It's hard for me to pinpoint anything "incorrect" about (B), but having the "instead" at the end of the sentence feels awkward, somehow clumsy. Choice (A) just feels smoother.

I realize telling you my gut interpretations is not profoundly helpful to you in deciding between answer choices, but once again, I can assure you that the real GMAT will not do this to you. Every wrong answer on GMAT SC has a clear grammar mistake or a clear instance of wordiness/ ambiguity/ indirection.

Here's a more GMAT-like SC question:
http://gmat.magoosh.com/questions/1139
When you submit your answer, the following page will have the video explanation. Each one of our 800+ GMAT questions has its own video explanation. Magoosh has a sale ending Thursday 3/29, so right now is a particularly opportune time to get this high quality GMAT help for an incredibly affordable price.

Does all of this make sense? Let me know if you have any questions.

Mike

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Magoosh GMAT Instructor
http://gmat.magoosh.com/