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Management article
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Reference no. 79204
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1979

Abstract

Citibank overhauled its service areas with a minicomputer and processing models copied from the manufacturing industry. However, this system was insufficient to provide personalized customer services. By decentralizing their system and reorganizing along market segments, the bank created National, World, and Industrial groups. The reorganization provides opportunities for advancement, better accountability of individual performance, and greater efficiency which markedly improves morale.

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Abstract

Citibank overhauled its service areas with a minicomputer and processing models copied from the manufacturing industry. However, this system was insufficient to provide personalized customer services. By decentralizing their system and reorganizing along market segments, the bank created National, World, and Industrial groups. The reorganization provides opportunities for advancement, better accountability of individual performance, and greater efficiency which markedly improves morale.

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