Answer To: Assessment 4 – Major Organisational Behaviour Assignment The purpose of this assessment is to take...
Soumi answered on May 29 2021
Running Head: WIPRO’S ORGANISATIONAL BEHAVIOUR 1
WIPRO’S ORGANISATIONAL BEHAVIOUR 17
ORGANISATIONAL BEHAVIOUR OF WIPRO
Table of Contents
Introduction 3
Wipro as an Organisation 3
Wipro’s Behaviour and Leadership Issues 4
Literature Review 6
Classical Organisational Theory 6
Social Identify Theory 7
Utilitarian Ethical Theory 8
Evaluation of Possible Alternative Solutions to the Identified Issues at Wipro 9
Recommendation for the Most Suitable Among the Mentioned Strategies 12
Conclusion 13
References 14
Introduction
Organisations are inanimate objects, therefore, organisational behaviour tends to imply to the behaviour of the human resource as a part of a functional organisation. Every organisation with its internal working environment, culture, external market conditions and the aim as well as aims and objectives of organisations lead to organisational behaviours. The human resource within an organisation, which is the major component as well as regulator of organisational behaviour are managed by leaders within the organisations, thereby, taking up a lot of responsibility for the proper functioning of the organisation.
The organisational behaviour and its leadership, in a combined format lead organisations to their success and also help them to formulate workplace culture, competencies and motivation among the human resources. The organisational behaviour and leadership with their alignment with organisational mission and vision tend to generate the positive growth. In the current study, Wipro, its organisational behaviour and its subsequent leadership style have been discussed in detail in the chosen case study.
Wipro as an Organisation
Founded in 1945, Wipro had been a major success from its very inception. The company was established by Md. Hashim Premji and was succeeded by his son Azim Premji, which gradually transited the business from one type to another to grow steadily, to become one of India’s leading IT companies. The company started with selling vegetables and edible oil and it was only in 1970s and in 1980s that the company entered Information Technology (IT) business. It is worth the mention that the company despite entering the IT industry business, it continued its production of toiletries.
In the following decades, Wipro started forming ties with national and international companies for business projects (Good Returns, 2019). In between the 1980s and early 1990s, the company tied up with United States-based Company General Electronics (GE) for manufacturing commercial products such as cylinders. Wipro performed many more business ventures with other companies and attained a higher status in the market in the early 2000s as it started the production of IT hardware and software at the same time.
The company, based on its increasing monetary capital and stable market conditions started acquisitions of smaller, yet potential business organisations (Rao & Mulloth, 2007). Apart of strategic management, the company created many subsidiaries and also demerged itself from its manufacturing units. The company however started its losing its share values after its defaulter in many large-scale projects, which led to multiple organisational changes and leadership revamping.
Wipro’s Behaviour and Leadership Issues
Wipro, acting as a conglomerate has many subsidiaries and businesses to tackle under the single organisational brand name. In order to manage the proper functioning of the departments, the organisation has developed an independent organisational culture for its different businesses, which considering the pressure generated from the profiting needs have benefitted the organisation positively. As stated by Ibsen and Navrbjerg (2019), when business organisations face the pressure of getting a lot of pressure from the market, the development of multiple profitable businesses ensures consistent cash flow, which helps the organisation.
Instead of having a tall organisational structure, Wipro has followed a matrix organisational structure, in which it had its leadership divided into specific sections, promoting the use of joint-CEO model. However, the current market growth due to the direct impact of evolution of IT and globalisation, the joint-CEO model is failing to tackle the tasks separately. As supported by Koufopoulos and Gkliatis (2018), the joint-CEO strategy proves to be effective in cases businesses, which have predictable market growth potentials and the pressure for managing the demand is within the optimum performance capacity of the organisation. As Wipro has used the joint-CEO model, it had enabled the practice of democratic leadership, where the junior executives and the lower level staffs have higher responsibilities and liberty of working at their will. However, considering the current pressure from the market the leadership style is proving to be a failure.
The business organisation at present is facing huge demand from the market and pressure from the management to increase the performance per quarter, which requires highly effective guidelines from the leaders, which the democratic leadership is lacking to offer. As mentioned by Hoobler, Masterson, Nkomo and Michel (2018), democratic leadership is beneficial for small workforce, limited work pressure and innovation based businesses, however, when it comes to offering higher performance within a given timeframe, democratic leadership lacks efficiency as the power struggle among the employees remains unresolved.
Another major leadership issues at Wipro is its gender-biased attitude, lurking underneath the organisation’s social image. Many female staffs, including executives of the organisations have faced issues of lower payments, misconduct by male executives, unsupportive nature of the organisational ombudsman, leading to court cases (NDTV, 2016). The issue of biased treatment has not only hampered the reputation of the organisation, but has also raised concern over the retention of talented female executives, who are the primary human resource for proper management of the business. In addition, Wipro is also seen to have issues with its leadership making proper contact with the lower level subordinates and formulate proper idea about the capacity of the workforce, leading to unattainable projects (The Register, 2018).
Literature Review
Classical Organisational Theory
The Classical Organisational Theory, which is the base for multiple organisational framework and structure, tends to incorporate the ideologies of scientific management theory, administrative theory and bureaucratic theory. As mentioned by Pardoe, Vincent and Conway (2018), the Classical Organisational Theory tends to place the right skilled person at the right organisational spot to consider the need to regulate the organisational hierarchy. It enforces the idea that organisation is a functional tool, performing based on components that are core characteristics of scientific management theory, bureaucratic theory and administrative theory respectively.
In case of organisations, as opined by Andersson, Carmen, Labra and Richards (2018), the focus on the right skilled persons leads the organisations to place selected candidates in specific sections, often entrusting higher responsibilities on individual employees, instead of giving all responsibilities to leaders, hinting at the development of democratic leadership and matrix or flat organisational structure. The flat or matrix organisational structure lead the organisations into lower performances, as employees despite being skilled,...