Shaping Corporate Culture: Citigroup - Case Study Example

Management and Leadership Paper: Citigroup Financial BY YOU YOUR ACADEMIC ORGANIZATION HERE YOUR HERE HERE Management and Leadership Paper: Citigroup Role Examination The role of a leader in today’s organization is that of a mentor, an individual through which workers are motivated to succeed, developed to perform at their peak performance and by which the appropriate organizational example is set. A leader inspires others to achieve organizational goals and works with others to establish positive working relationships amongst peer groups. At Citigroup, there are a wide variety of different divisions, each maintaining their own, unique contribution to the business’ success. Finance division must work with the commercial division to perform necessary job functions, however this suggests a social interaction between the groups as well. A leader continuously inspires quality relationships with others in the organization and, as much as possible, conforms to the expectations of corporate policy as a pinnacle of ethics and integrity. At Citigroup, there are several individuals with leadership qualities who have performed excellence in financial services and, simply by being rewarded for their performance, they achieved leadership status by inspiring others to act similarly in the business environment. In groups, a leader is often the task coordinator and acts as a mediator in various discussions between diverse group members. This view of the leadership role suggests a person who is equipped to handle multiple responsibilities and ensure that all members of the project team are focused and positive. Rather than delegating their individual tasks, the leader simply acts as the catalyst for social order and positive discussion. Citigroup regularly appoints leaders to different financial groups, generally selecting those who continuously provide excellence in communication and customer service. Management and Leadership Differences In most organizations, a manager is an individual who is responsible for coordinating the efforts of various subordinate staff members to ensure they are performing their unique job functions. A manager is concerned with issues of scheduling, performing administrative tasks such as giving performance reviews to workers, and job task assignment. These are the more foundational aspects of management which suggests that the managerial role is simply one of coordination and authority. At Citigroup, there are many managers with a centralized command hierarchy where instructions are delivered from the top-down and compliance is expected. Managers are constantly scrutinizing employees work habits to ensure they are performing to the task at hand. This does not require much of a leadership capacity as it involves ensuring that the business is performing to peak expectations through a command/authority position. Leaders, however, are said to change, build and nurture corporate culture (Fowke, 1999). This suggests a more humanistic role for the leader, unlike the manager, who is responsible for identifying the needs of colleagues and working toward change which assists in satisfying them. A leader would also understand what motivates workers and strive to create conditions where employees feel valued, much like a human resources function. At Citigroup, two employees developed a dedication ceremony for new employees which involves a formal welcome from all members of the staff. This is designed to let others know that they are welcomed at Citigroup to provide the motivation to absorb training and desire to remain at the company. The largest difference between the two roles is in how others in the organization are viewed and the correct approach to coordinating staff activities. Where the manager maintains responsibility for efficient and productive work environments through careful coordination of activities, the leader simply behaves in a fashion which is congruent to corporate policy and goals and inspires others to achieve the same level of activity in their own job roles. A leader helps the organization project a positive image externally as well by providing superior customer service and positive public relations to help the company succeed. These are all true factors for leaders and managers at Citigroup Financial. Maintaining a Healthy Organizational Culture Allowing others to experience job role autonomy and treating workers as a valuable asset to the business’ success is the role of today’s managers and leaders. The United States is a very individualistic society which values the ability to express personal creativity and ingenuity on the job. If they feel that these traits are being stifled or their talents not being exploited, they will likely not want to return to work or fail to perform to high standards expected in their job roles. From a managerial viewpoint, it would be important to offer quality feedback regarding job role competency and to express gratitude when employees go above-and-beyond corporate expectations. At Citigroup, the company once maintained a program which was similar to that of traditional employee-of-the-month campaigns which recognized superior contributions to the business’ success. When employees discovered cost-savings opportunities and could provide a plan of action to combat them, their ideas were incorporated into business policy and they were rewarded with an appropriate bonus. From the leadership perspective, a leader would recognize when conflict is arising between other colleagues and try to put an end to it to promote quality relationships. Acting much like a group mediator, the leader attempts to promote diversity of viewpoint to all peers so that others understand that conflicts are often the product of simple, cultural or personal misunderstandings. The leader will promote others when they have achieved high levels of performance and strive continuously to coerce others to behave with integrity and competence. The whole point of both the managerial and leader roles in behaving this way is to create a rewarding organizational culture where all employees feel valued, feel a sense of unity and teamwork, and can work together positively (despite their many different demographics) to accomplish a quality piece of finished work. Helping the organization succeed to strategic goals by promoting positive work philosophy from the top-down will make others enjoy their work and want to perform, rather than dragging themselves into the workplace daily to provide minimal performance. At Citigroup, through the efforts of both leaders and managers, nearly all employees enjoy their job roles and there is a very positive organizational culture at the company based on teamwork and cooperation. The Four Management Functions The four management functions include planning, organizing, leading and controlling. Planning involves assessing the internal and external business environment and determining future business objectives and the steps necessary to execute them. At Citigroup, there are always a wide variety of projects underway in issues of finance, requiring a manager who is able to plan competently. If agendas are missing discussion elements or there is lack of planning in terms of job role identification, workers become frustrated and will not commit to the project’s focus. In a culture built on teamwork and dedication, planning creates a rewarding organizational culture simply by satisfying others with efficiency and careful consideration of the business. Organizing impacts Citigroup as well in terms of culture, as it involves the actual arrangement of business functions to achieve goals. Employees at Citigroup who feel that they are being under-utilized in their job role will cause them great dissatisfaction. It becomes the responsibility of a manager to recognize the human resource importance of workers, as well, in giving them job roles which fit their capabilities and experience. Leading occurs at Citigroup when managers make themselves visible, asking whether any workers have issues they might need to discuss. The manager, in their leader role, assess the overall contentment of workers and use humor and personality to make others inspired. The fact that management is not hidden away deeply within the business makes employees feel that they are considered in high-level business decision-making and find more job contentment through it. The Ministry of Local Government (2003) suggests that leadership style is determined by the culture in the organization. Since employees at Citigroup require visible management to remain happy, the company recognizes the importance and acts on it accordingly. Controlling measures performance compared to business objectives. This is also vital at Citigroup as employees are routinely assessed for their job competence and contribution to the business. If they have weaknesses they are identified and discussed to avoid misunderstandings and new changes to make them more efficient are set into motion. This gives everyone at Citigroup the sense of being respected and appreciated where they can be developed when they make errors or fail to succeed. Strategies for today’s managers and leaders Citigroup attracts exceptional people as part of their hiring focus (Annual Report, 2003). This is important in maintaining a healthy culture as it would eliminate inefficiency between peers where others can rely on the performance of peers to enhance their own job roles. When employees are forced to work with unmotivated or untalented workers, their own job roles are going to be affected negatively in some fashion. If the project is a team-oriented project, the problems will impact others in the group, likely making the group resent the unmotivated worker. As a recommendation for creating a healthy organizational culture, businesses should consider the impact of their hiring practices to make sure that employees are adequately screened for capability, talent and experience necessary to work well with others who are motivated. At Citigroup, in the rare event where the business hires a person who is untalented or unmotivated, the company culture tends to move against the worker until there is a full managerial intervention. Ultimately, the staff at Citigroup returns to normal once the employee is reprimanded or terminated. If businesses had a better hiring model, they could likely avoid problems between workers to keep a harmonious organizational culture intact. Additionally, businesses must consider what actually makes up their own organizational culture. Is the business, as a whole, dedicated to excellence in marketing and sales? Does the company have a focus of exclusivity where workers feel privileged to work at the business and perform so to show their appreciation? Whatever the construct of the organizational culture, the business must understand what motivates and drives its employee populations to succeed and constantly reinforce those values to keep people focused, efficient, and content. For instance, Citigroup recognizes that different divisions have their own, unique cultures based on familiarity and constant work affiliation with various members close to their work area. Senior managers are trained to assess the work habits of employees and respond according to these values. For instance, one finance division at Citigroup maintains a large group of employees who value external work relationships such as attending sporting events and various at-home celebrations. Citigroup managers will periodically attend these functions to show employees that they are part of the unified team. This is a suggestion for improving organizational culture: To thin out the distinction between manager and subordinate and create a team philosophy. References Annual Report. (2003). “Citigroup Annual Report”. Retrieved 24 Nov 2008 from http://careers.citigroup.com/careers/nam/citicards/annualreport.pdf Fowke, Don. (1999). “Shaping Corporate Culture”. The New Management Network. Retrieved 24 Nov 2008 from http://www.new-managementnetwork.com/pdfs/ ShapingCorporateCulture.pdf Ministry of Local Government. (2003). “Management and Leadership Skills in Local Government”. Retrieved 24 Nov 2008 from http://pdf.dec.org/pdf_docs/PNACY645.pdf Read More