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It's not quite there yet, but the goal is certainly within reach. One of India's largest IT solutions providers, Wipro Technologies, is taking on the likes of IBM and Accenture in its effort to be included among the largest and most successful technology services companies in the world. Restructuring Wipro was considered the most important step in becoming a global giant, driven by the goal towards improved customer orientation. During the past few months, Wipro separated itself into several subsidiaries by product line: telecommunications, engineering, financial services, etc. Each subsidiary brings in about $300 million in annual earnings and is self-sufficient with their own accounting books, personnel and administrative functions. This policy of company reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis. Such a practice at Wipro further resulted in avoidance of duplication of work helps in preventing confusion and minimising the wastage of efforts. Wipro shifted from a centralised to decentralised management system. All responsibilities for growth lay with the management of each entity. "We tried to de-layer the organisation and empower our business leaders with a much higher degree of growth responsibility," said Premji. This practice gives the employee requisite time to explore areas for growth and the opportunity to innovate thereby strengthening the company's competitive position. The authority dispersal develops in the subordinate the ability to deal effectively with challenges and helps them to realise their full potential.

"Each subsidiary brings in about $300 million in annual earnings and is self-sufficient with their own accounting books, personnel and administrative functions". Identify the step from the options given below, that is highlighted in the aforesaid statement.

Solution

✅ Correct Option: 2

Option 1 -> This refers to breaking down the total work into specific tasks and activities, not about creating self-sufficient organizational units.

Option 2 -> This involves grouping activities and resources into distinct units/divisions. The statement describes subsidiaries as self-contained units with their own complete functions (accounting, personnel, administration), which is departmentalization.

Option 3 -> This means allocating specific tasks to individuals or positions. The statement describes organizational structure, not individual task allocation.

Option 4 -> This involves creating authority hierarchies and reporting chains. The statement focuses on how units are organized, not reporting relationships.


Hence, Option 2: Departmentalisation -> The statement clearly illustrates departmentalization as each subsidiary operates as a self-sufficient division with complete functional departments (accounting, personnel, administrative). This represents the organizational design step where activities are grouped into independent units based on divisional structure -> correct

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