Read the passage and answer the following questions.

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.

Which management system did Wipro adopted during its restructuring?

Divisional structure

The correct answer is option 3- Divisional structure.

Wipro adopted Divisional structure during its restructuring.

The passage clearly says that Wipro shifted from a centralized system to a decentralized structure and divided its operations into self-sufficient subsidiaries focused on specific product lines like telecommunications, engineering, and financial services.

When an organisation is divided on the basis of product lines or divisions, it is called a Divisional Structure. Each division works almost independently and manages its own functions, which matches exactly what Wipro did during restructuring.