Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

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.

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

Options:

To reduce operational costs

To improve customer orientation and global competitiveness

To increase the number of employees

To focus on local markets

Correct Answer:

To improve customer orientation and global competitiveness

Explanation:

The correct answer is option 2- To improve customer orientation and global competitiveness.

To improve customer orientation and global competitiveness was the primary objective behind Wipro's organizational restructuring.

"This restructuring aimed to improve customer orientation and operational efficiency, critical to Wipro's ambition of becoming a global technology leader.” Wipro wanted to compete globally with companies like IBM and Accenture. The restructuring was primarily to enhance customer focus and become more globally competitive.