Way To Go, Wipro!
It's not quito there yet, but the goal is certainly within reach. One of India's largest IT solutions providers, Wipro Techanologies, is taking on the likes of IBM and Accenture in its effort to be influded among the largest and most successful technology services companies in the world.
Currently Wipro employs 45,000 people at a growth rateof 30 precent annually over the coming year. ''I don't see growing to 1,50,000 or 2,00,000 people as an insurmountable challenge, ''sain Premji, Chaiman, Wipro. He believe that if companies such as Accenture could grow by 20,000 people in two years, Wipro's growth projections are not impossible.
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 `$300` million in annual earnings and is self-sufficient with their own accounting books, personal 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]''.
Between 2002 and 2003, Wipro acquired two IT consulting firms to break into the U.S. market. Wipro is also moving from a service provider to a product developer. Today, it partners with other companies develop IT products to gain experience and achieve name recognition.
With reference to the given case, state the benefits of decentralisation to an organisation

Explanation

Benefits of decentralisation are:
(i) Develops initiative among subordinates It helps to promote self-reliance and confidence amongst the subordinates. This is because, lower managerial levels have been given freedom to take their own decisions and they learn to depend on their own judgement.
(ii) Quick decision making Under decentralisation, authority to make decisions is placed in the hands of those, who are responsible for executing the decisions. Since, decisions are taken at levels nearest to the point of execution, there is no delay or distortion of information.
(iii) Relief to top management It helps to reduce the amount of direct supervision over subordinates by giving them freedom to take decision and act on their own. This reduce the workload of top executives and they can devote their time and attention to important policy matters.
(iv) Facilitates growth It provides greater autonomy to lower level managers and departmental heads. This encourages them to function more efficiently to prove their supremacy, and facilitate expansion and growth of the organisation.