CITI Citi never Sleeps Changes in Leadership? Changes in corporate leadership ca
ID: 2727162 • Letter: C
Question
CITI Citi never Sleeps
Changes in Leadership?
Changes in corporate leadership can have a significant impact on how the company functions. In 2007, Citigroup announced that Charles Prince would no longer be the CEO. Vikram Pandit was appointed as the CEO. Given that you are just starting this course and have only read the early chapters in the text, what impact might such a change have on the financial decision-making in Citigroup? Be sure to provide reasons and other examples to justify your answer.
Explanation / Answer
With changes in leadership come changes in decision-making styles. Leaders stepping into a new role may increase employees' sense of empowerment or, conversely, may wish to regain more central role over business decsions in order to affect change.
Even the potential for a change in decision authority is concerning for leaders. Since leadership and management activities in organizations involve change, inspiration, motivation, and influence, management and effective leadership, both leaders and managers must then strive to focus on the process of setting and achieving the goals of their businesses through the functions of management, with reference to strategic planning, organizing, directing, controlling, and goal accomplishments.
Studies of complex social systems suggest that the major reason for (organizational) failure lies in the way decision makers think about and execute the change process. Today, teams and organizations face rapid change like never before. Globalization and technology have increased the markets and opportunities for more growth and revenue. Leadership is human communication which modifies the attitudes and behaviors of others in order to meet shared goals and needs.
CItigroup will thus be greatly impacted, in terms of changes in its decision making process.