Lara Zeyna Altinok
This paper will present answers to the following questions:
1. Provide a description of the company that you work for. As part of your description include a discussion of the type of organizational structure.
2. Describe an agency problem within the firm and discuss what you think is causing the problem and how the problem might be better controlled.
3. Describe the job dimensions of the firm and discuss whether or not you believe the current design is appropriate for the firm. Discuss any suggestions you might have for improving the job design. Grouped by function or by product or geography or a matrix organization? Provide a diagram ...view middle of the document...
324). At Citigroup, many agency relationships exist. For example, each business unit has a manager who delegates certain efforts to his/her lower level employees. Data Innovations Office facilitates cross-sector analytical insight generation to drive competitive value and optimize the use of its resources and financial assets. Under the Chief Data Officer’s leadership this office provides analytical services to many other business units. An agency relationship exists between Data Innovations Office and all other business units who use its services. At the same time, this office employs services of third party business analytics service providers. At times, the third party companies may need a database to create solutions which pose a great value. They might not be able to generate these databases on their own due to sheer volume of data and lack of very expensive data processing environments. Although these companies are hired to provide services solely for the interest of the principal – in our case Citigroup- they might see a potential to profit from selling their findings to other corporations. The principal limits such behavior by establishing appropriate incentives for the agent through the Master Service Agreements and by incurring monitoring costs. A non-disclosure agreement is also signed by the agent to legally prevent them from releasing any of their findings.
Brickley, Smith, and Zimmerman (2009) stated that the variety of tasks and scope of decision authority are two important dimensions of job design (p. 365). At Citi, job dimensions are appropriate for the firm. For the variety of tasks there is usually a very detailed description posted. These tasks are what the employee is asked to complete. For instance, one job posting describes variety of tasks as assisting with end-to-end project planning or develop analytical solutions using Excel. For the scope of decision authority dimension, employee is given information on when and how best to complete the assigned tasks. The job dimensions become more specific depending on the specialization required for the tasks. For instance, for an analyst position the posting might read “strong excel skills with ability to use v look-ups or generating pivot tables”. The job design is grouped by function, product, geography or matrix organization because Citigroup is a very large global organization. For example jobs in compliance field can be grouped by function, product, geography or matrix. By function, a compliance manager position for trading might be grouped within this function it...