Way to go, Wipro!
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. 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. “We removed an entire layer [of executives]”.
Wipro shifted from:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Centralised to decentralised structure
Option (1) Decentralised to centralised structure — Incorrect. This states the move in the wrong direction.
Option (2) Centralised to decentralised structure — Correct. In a centralised organisation the authority to take decisions stays at the top. In a decentralised one it is spread down to the lower levels. Wipro gave the responsibility for growth to the management of each unit and removed a layer of executives. That is a clear shift to decentralisation.
Option (3) Formal to informal structure — Incorrect. An informal organisation grows by itself out of personal contacts among employees. A company does not shift to it. Wipro’s new structure was designed by management, so it is still formal.
Option (4) Informal to formal structure — Incorrect. Wipro had a formal structure both before and after the change. Only the spread of authority changed.
Note: The passage is the NCERT case study ‘Way To Go, Wipro!’, which has been reproduced by NTA in the exam. NCERT (2026-27 Edition): “Wipro shifted from a centralised to decentralised management system. All responsibilities for growth lay with the management of each entity.” “Decentralisation … Those organisations in which decision making authority lies with the top management are termed as centralised organisations whereas those in which such authority is shared with lower levels are decentralised organisations. Decentralisation explains the manner in which decision making responsibilities are divided among hierarchical levels. …” |