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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.

"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". Identify the significance of the function of management highlighted in the aforesaid statement.

Solution

✅ Correct Option: 2

Option 1 -> Division of work: While decentralization does distribute responsibilities, the statement emphasizes empowerment and growth responsibility rather than merely dividing tasks among departments.

Option 2 -> Development of personnel: The shift to decentralization, de-layering, and empowering business leaders with growth responsibilities directly focuses on developing leadership capabilities, decision-making skills, and managerial competencies of personnel.

Option 3 -> Optimum utilization of resources: Although decentralization may improve resource efficiency, the statement specifically highlights empowering people rather than managing material or financial resources.

Option 4 -> Better administration: While decentralization can improve administrative efficiency, the core emphasis here is on developing and empowering business leaders, not administrative processes.


Hence, Option 2: Development of personnel -> By shifting to a decentralized structure and empowering business leaders with higher growth responsibilities, Wipro is focusing on developing their personnel's leadership abilities, decision-making skills, and managerial capabilities. This delegation and empowerment approach enhances employee competencies and prepares them for greater organizational roles -> correct

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