Effective communication is an important tool that has wide ranging influence in the smooth functioning of corporate bodies. It is significant in the administration of the organization and projection of organization’s aims and objectives in the eyes of the public and stakeholders and also promotes better understanding of cross cultural values and help resolve conflicts. The change greatly facilitated in creating congenial work atmosphere that motivated and inspired others to improve their performance and achieve organization’s goals with more enthusiasm, vigor and creativity.
The third important change that he brought into the organization was in the regular performance appraisal that was linked to the compensation. The various offices, located at different geographical locations had wide disparity in the performance appraisal systems that were considerably influenced by the individual and regional interests. The uniform appraisal system ensured that employees across the world had equal opportunity for personal and professional growth.
Indeed, the changes were designed to inculcate better ethical imperatives to provide competitive edge in the fast changing global business with long term benefits. The time bound implementation of its strategic goals had hugely improved the overall image and credibility of the organization.
When Prince had made wide ranging changes in the strategic goals and administrative processes of Citigroup due to falling credibility of its ethical and regulatory control, he had the option of using different change model that could have expedited the solution of its immediate problems. Instead of adopting an integrated approach he might have solely focused on was strong appraisal system and stringent regulation and control system.
Prince could have followed these model of change primarily because the focused approach would have given him and the organization to overcome the difficult phases of MTS in Europe and Japan fiasco which had greatly affected the credibility of the organization. The effective appraisal system would have ensured early detection of mismanagement so as to avert another Japan like event to corrode organizational image. Stringent regulation and control would have ensured adherence to company’s guidelines and values.
Most importantly, the process would have expedited the process of getting a clean chit from the U.S. Federal Reserve Board that had barred the company from making any ‘significant acquisitions before getting its house in order’. These changes would have resulted in short term gain.
When Prince took over the stewardship of Citigroup, it was under tremendous pressure from the Federal Regulation Authority and had huge demoralizing repercussions from the event of Japan and MTS. Under his leadership, he created visions and goals and inspired the workforce to work towards achieving them. In the fast changing equation of global business environment, he needed to introduce changes that would inculcate strong organizational culture which would be truly global in essence and encompass values that would cut across cultural divide and local interest. To make a significant difference to the work place, it is important the leaders and managers need to develop and enhance cross cultural relationship that must go beyond the officialdom in order to win the trust of the