Business Studies

Organising

Easy

Wipro Technologies, one of India's largest IT solutions providers, restructured its organization in its bid to compete globally with giants like IBM and Accenture. This restructuring aimed to improve customer orientation and operational efficiency, critical to Wipro's ambition of becoming a global technology leader.

The company transitioned from a centralized management system to a decentralized structure, dividing its operations into several self-sufficient subsidiaries focused on specific product lines, such as telecommunications, engineering, and financial services. Each subsidiary operates independently, managing its personnel, accounting, and administrative functions. This decentralization empowered business leaders to take greater responsibility for growth and eliminated an entire layer of executives to streamline operations.

Azim Premji, Wipro's then-chairman, emphasized the importance of this shift, noting that it gave leaders more autonomy and enhanced decision-making at the operational level. This organizational change helped Wipro achieve specialization and allowed better alignment of resources with customer needs.

Despite the advantages of decentralization, including flexibility, faster decision-making, and enhanced accountability, it also posed challenges, such as coordination among subsidiaries and maintaining consistency in strategic objectives. Wipro addressed these challenges by clearly defining roles and responsibilities across its new structure.

What was the key challenge faced by the Wipro during its restructuring process?

Decrease in customer satisfaction

Lack of employee specialization

Coordination among subsidiaries

High employee turnover

✅ Correct Option: 3

Option 1 -> Decrease in customer satisfaction was not identified as the primary restructuring challenge, as Wipro maintained its service quality standards throughout the transition.

Option 2 -> Lack of employee specialization was not the main issue; Wipro had skilled professionals across domains, but organizational structure created barriers.

Option 3 -> Coordination among subsidiaries was the critical challenge as multiple business units operated independently, creating silos and hindering seamless collaboration and resource sharing.

Option 4 -> High employee turnover was not cited as the key restructuring challenge; the focus was on organizational alignment rather than retention issues.

Hence, Option 3: Coordination among subsidiaries -> During Wipro's restructuring, the major challenge was achieving effective coordination among its various subsidiaries and business units that had been operating independently, leading to fragmentation and inefficiencies in operations and decision-making -> correct

Question 42

What was the primary objective behind Wipro's organizational restructuring?

Question 43

How did decentralization benefit Wipro?

Question 44

What significant organizational change did Wipro make during restructuring?

Question 45

Which management system did Wipro adopted during its restructuring?

What was the key challenge faced by the Wipro during its restructuring process?

Solution

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