This paper outlines various issues of Citigroup Inc with regard to organizational analysis of its mortgage banking services. The company in its operations employs several strategies, frameworks, variables, methodologies and organizational structures in an attempt to remain competitive in financial services industry. This research works attempts to discuss various organizational issues within the company and set goals and objectives that are to be attained. In the analysis of such, numerous other issues are put into consideration including challenges, strengths, weaknesses and opportunities as outlined by the SWOT analysis. These issues are significant in discussing the field of mortgage banking with regard to challenges and opportunities inherent in the industry. Of substantial importance to the analysis includes the organizational analysis of the company critical in enabling effective and successful operations in the area of business. Besides, the report also includes recommendations essential for the company's improvement in this area of operations. In coming up with the analysis, the study consists of main sections such as the introduction, literature review, recommendations and conclusion.
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Citigroup Inc is a holding company based in U.S that offers financial services in a diversified manner. The company in collaboration with its subsidiaries provides a broad range of financial services to both corporate and individual customers. Such financial services include various services and products in the form of mortgage lending, consumer finance, commercial banking, cash management, investment banking and retail banking services and products. With operations all over the globe, the company has a robust and broad distribution network that distributes such well-diversified services and products. The company's customer base includes at least 200 million customers diversified in more than 140 countries globally. Under the laws of the Delaware State, the company's original predecessor in corporate services was incorporated making the Citigroup's history to date back to as early as 1988. Prior to the foundation of Citigroup, there were numerous transactions made covering a number of years but eventually in 1998, Citicorp and Travelers Group Inc merged to form Citigroup Inc. As of today, the company globally offers diversified services and products in finance to a broad client network including Institutions, corporations, governments and consumers. In provision of this wide range of financial services and products, the company currently operates a management reporting system primarily through business segments. These segments include Citicorp, which consists of institutional clients group and banking businesses, Citi Holdings, which consists of Lending businesses for local consumer, Asser management, brokerage and Special asset pool (Gilad, 96).
This American multinational company is considered as having the world's largest network with regard to financial services as well as being an integral dealer in treasury securities of the U.S. In 2008, the company did incur huge losses because of the global financial crisis and the U.S government came to its rescue through a massive bailout. The crisis did increasingly bring apparent profound and dramatic dynamics in market environment influencing the company to focus more on its core businesses and reorganize reporting and management services into business segments. Citigroup Inc is classified among the United States' big four banks along with Wells Fargo, Bank of America and JP Morgan Chase. The company has outlined perspectives, strategies, platforms and frameworks in line with its core mission and objectives. As an economic enterprise, Citigroup relentlessly focuses on growth, global orientation, a highly diversified base of operations and earnings, higher margin capital businesses, financial strength and doubling their digit earnings on average amongst others. In efforts to capture business opportunities that are attractive, the company commensurate rewards with taken risks, prudently invests in infrastructure and watches closely overhead costs. Besides, the customers' needs are provided for through multiple platforms, value presentation and technological innovation (Gilad, 114).
This research about Citigroup's mortgage banking and other financial services is carried through an intensive analysis of the company's organizational structure with regard to structure, symbolism, political power and human resource management. Through literature review, such major concepts are analyzed and recommendations are made hugely dependent on the analysis results. The research methodology generally involves the contextual analysis of these main concepts inherent within the company's organizational structure. The analysis covers areas of organizational design and structure, organizational variables, organizational and political environment, human resource management and recommendations for improvements dependent on findings and results. The description of these main frameworks in the analysis is of great importance in designing conclusions and recommendations essential for the company's improvement. Consequently, the organizational analysis of the company's main frameworks helps in exploration of its strengths, weaknesses, opportunities and threats. Such description is very significant in designing strategies geared towards performance improvement, attainment of competitive advantage and expansion of market share. Such methods have substantial significance in organizational analysis of any company and Citigroup with such diversified global operations and operating environment that is increasingly challenging will have to utilize them.
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The organizational structure and design for Citigroup Inc has involved many changes since the company's' foundation. Such changes are relative to the opportunities, challenges and requirements of the ever-changing business environment. The company's structure involves two major business segments in Citicorp and Citi Holdings. Citicorp undertakes operations on regional consumer banking and the Institutional clients group. This regional consumer banking involves retail banking, Citi personal wealth management, local commercial banking, Citi-branded cards, residential real estate management and the Latin America asset management. Such services and products are in provision in areas such as North America, Latin America, EMEA and Asia. On the other hand, the Institutional clients group deals with transaction services as well as securities and banking. Such services include investment banking, equity and debt markets, structured products, lending, cash management, clearing services, fund and custody services among many others. The other business segment Citi Holdings undertakes the provision of products and services in areas of local consumer lending, brokerage and asset management and special asset pool. Further, the organization of Citigroup is divided into four main business groups in Institutional clients group, consumer banking, global cards and global wealth management. (Ware, Michaels and Primer, 153).
In 2008, Citigroup announced changes in organizational structure and leadership. This comprehensive reorganization was meant to achieve greater connectivity and client focus, clear accountability and global product excellence. Such new changes in the organization structure helps the company to focus more on growth in both developed and emerging markets and the improvement of the company's efficiency. Decision-making is brought closer to clients through the establishment of new regional structures in which geographical region leaders have the authority to come up with decisions on the ground. These geographical regions are under management of a chief executive officer who reports to the company's CEO. The consumer group was also reorganized into two global businesses, Global cards and Consumer banking. In addition, the credit card business in United States and other international countries were consolidated into a single global business. The new structure was meant to allow more focus on clients through decision-making processes being closer to them. Such new organizational model would make the organization to be more efficient, leaner and simpler hence improved collaboration with clients, shareholders and businesses across the globe. As part of the reorganization, global functions of human resources, finance, legal, branding and information technology would be centralized. Such new organizational models will help in reduction of costs, unnecessary complexity, risk and accelerate innovation. The company's CEO Mr. Pandit did conduct intensive business analyses towards the business reorganization, which could improve operational efficiencies, drive costs down, eliminate bureaucracy and ensure strong management of capital resources and risks (Griffin and Moorhead, 46).
The company's systems and processes are aligned in order to ensure the reorganized structural model works well. It is very important for any company to develop compatible system and processes if its organizational structure was tom work smoothly. The new structural developments require competent staff for instance geographical region leaders to carry out the activities necessary in all fields of operations. The company through their processes conducts competitive recruitment globally to fill any upcoming positions. The systems require a human resource management that is effective and efficient in delivering the necessary and equally significant results. Through the processes of recruitment and hiring, a competent human resource capital is developed. Citigroup's system has a committee of professionals who oversee the management of issues related to risks and finance. The committee embarks on an oversight process to ensure significant policies, practices and procedures relative to the company's risk and finance management framework are developed. Undertaking many other duties, the committee therefore enables the achievement of goals, opportunities and objectives as outlined by the company's system and processes. Citigroup's operations are both national and international hence requiring efficient coordination and understanding of all the parts in the organizational system. Through this, 'systems thinking' is applied in an attempt to overcome major obstacles in the development of an enterprise that is process-managed. The activities of the company are managed through a system hence the achievement of results and significant breakthrough for such a complex system (Ware, Michaels and Primer, 182).
The political environment creates significant influences and impacts on many businesses across the globe. As for the Citigroup Inc, the political environment is stable enabling operations and activities to be carried out with hindrances and interference. The owners of the company have higher confidence levels as the political environment in U.S is conducive for investments. Almost all political variables including taxation, regulations, financial incentives, restrictions on foreign investments, investment agreements and international trade provide political environment favorable for business investments. For instance, the U.S government massively bailed out Citigroup Inc in 2008 when the global financial crisis made the company insolvent. The company further does not have problems with the countries taxation policies and investment requirements and restrictions. However, there are other countries or regions whereby the company is unable to set up operations because of their relative political environments. In countries where the political variables create unfavorable conditions for investment and business, the company seems to minimize its involvement. For instance, countries that are constantly fighting, the business environment are adversely affected and investors do not have confidence and interest on opportunities presented by their markets. In Citigroup, power is vested on geographical region leaders who have to report to the company' CEO. There are also many committees involved in the oversight and implementation of the company's policies, programs and practices. Such committees as public affairs committee and risk and finance management committee exercise power in their activities as outlined by the system and processes (Gilad, 174).
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Citigroup is one among the main sponsors of prestigious leaders and believes that staff development and education fosters leadership, a key quality for any organization. Citigroup being a tremendous large financial institution has to employ philosophy of leadership to enable the efficient and effective results from all sections. Its management structure requires performance by leaders of different sections hence leadership qualities are highly essential for this company. In their leadership philosophy, the company deeply believes in attracting and retaining valuable human capital. Their employees must be able to work as a team, be creative, foster independent thinking and strong skills on problem solving. All staff must employ strong leadership styles particularly on management sections, as it is significant for the long-term success of the company. Citigroup Company through their philosophy maintains a human resource that is talented, skilled and academically qualified. Because of the risky nature of the investments, the company has strong interest with their human resource. The human capital development is taken very serious because the long-term success of its operations is dependent on the performance of human resources. The company's leadership places human resources among their top priorities and works towards the development of results driven human capital ( Elegbe, 93).
In addition, the company's employees are recognized as extremely important hence such aspects as learning and development programs, reward and retention programs, competent resourcing, good management of employee-employer relations and attractive benefits and compensation. The company ensures that the needs and interests of employees are carefully addressed and provided for, thus, there are minimal issues between employees and the company. The company's culture is very significant to many people across the globe. Recognized as an impressive leader and truly global business, the culture appreciates the opportunity sense thus offering broad career choices and development opportunities. The company's culture also strictly upholds ethical business practices for all employees. In their corporate culture, all employees must undertake ethical training program through a five-point plan. Such plan is geared towards the improvement of communications, controls, performance appraisals, training, talent and development. The mandatory programs on code of conduct and ethics for all employees develop a unique idea of shared responsibilities with regard to one another, clients and the franchise. This culture is indeed very symbolic in that many clients would be interested to deal with a business enterprise that strongly employs business ethics in its practices. Many people are interested in developing their careers with the company because of the good culture portrayed in the society. In ensuring good symbolism, a committee on public affairs reviews programs and policies with regard to public issues of significant impact to the company and the society (Elegbe, 126).
It is evident that Citigroup Company has organizational structure important in enabling its global business operations. A global leader in financial services, the management is structured in a manner to provide the necessary competitive advantage in this industry. In attempts to increase their global market share, the organizational structure ensures the company's goals, perspectives, objectives and policies are achieved. As one of their main strategies, the company does reorganize their structure to meet the demands of the ever-fragile global business environment. The human resources are considered equally essential in attainment of desired results. Their culture is very symbolic to clients, partners and the public at large.
The company should work on policies towards reorganizing their structure again as they did in 2008. This subsequently will improve the company's stand-alone position. There is also need for consolidation of a big market share necessary to tackle the challenges of the competitive and highly sensitive global business environment. An occurrence such as the financial crisis of 2008 should not bring the company to its knees financially and at the mercies of the government. There is increased uncertainty with regard to provision of extraordinary support by U.S government for financial institutions if such an event occurs again. It is also important for the company to increase ratings of the hybrid capital issue to ensure stability in operations. The initiated restructuring by the company's CEO Vikram Pandit of the mortgage business should continue because this area of concern requires a complete overhaul.