Page 108 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes

Caselet Azim Premji's Style

f Rahul Bajaj has a rival for the title of India's most hands-on manager, Premji is
probably high on the candidates' list. Bajaj, it is famously said, used to sign every
Icheck at the two-wheeler company. Premji likes to check the costs of airline tickets and
frequent flyer statements.

"Premji makes Uncle Scrooge look like Santa Claus," a Bangalore tech manager was once
quoted. "He monitors the number of toilet paper rolls used in Wipro facilities and demands
that employees switch off the lights when leaving their offices; Premji himself makes
random checks to see that the lights are out at the end of the day.
There are no limos awaiting Premji or Wipro staffers when they arrive at an airport. They
take taxis or trains. Premji often takes a three-wheeled autorickshaw from the Bangalore
airport when returning from his travels. His only car is a 1996 Ford Escort. While on the
road he does his own laundry and stays in three star hotels - and requires his employees
to do the same.
On the flip side, people who have left Wipro speak highly of their former boss: a rare
tribute in our dog-eat-dog world. Som Mittal, President and CEO of Digital India (Hewlett-
Packard) recounts, ''I could tell right away that Mr Premji was very demanding, because
he interviewed me for eight hours before hiring me and he'd prepared the interview very
carefully. During my five years at Wipro, Mr Premji never insisted on a specific workload
or strict working hours. But by magic, or by fear of disappointing him, employees exercised
self-discipline. When I told him I was leaving, he was really sad. He's very possessive.
Today, we run into each other regularly at conventions. I still respect him greatly and,
unlike many of his colleagues, would never dare to call him by his first name."

Premji firmly believes that ordinary people are capable of extraordinary things. The key
to this is creating highly charged teams. He takes a personal interest in developing teams
and leaders and invests personal time in his managers. Managers agree that Premji is
happy to work alongside them, making sales calls with the marketing team, and is said to
welcome criticism. A just boss, if a stern master. "I demand of others only what I demand
of myself," he says.
That's fine if you also happen to enjoy working fifteen hours a day. Mistakes are not
penalized but deception is akin to waving a red flag in front of a raging bull. There's a
legend (true!) that Premji once preferred to face a tough, three-month strike rather than
rehire an employee who had submitted fraudulent expense accounts. "The person said he
was traveling in first class, when in fact he was traveling in second class and pocketing the
difference," he recalls, "that was unacceptable."
To be able to predict the future and rightly predict it is what differentiates smart managers
from managers. And Premji has proved himself as a manager with a finger on the pulse of
the world. The future, according to him, will see significant changes in technology, economy
and society. "But what will remain unchanged is the need of the customer for an
organization with a human face," he said.
Recounting the most defining moment of his life in an interview to the BBC, Premji said,
"it happened when I was 21-years-old. I was studying at Stanford University. My father
suddenly died so I had to rush back to India and I attended the first annual general meeting
of my company. A shareholder, who was articulate and vociferous, gave me sincere advice
Contd...

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