Sources Of Cultural Conflict In Citigroup Globally

Sources of Cultural Conflict in Citigroup Globally

Introduction

Citigroup is one of the most famous financial services company which was formed by merging the Travelers Group and the previous Citigroup. The merger was formed in 1998 and does its operations in New York. It has its operations in about one hundred and forty countries in the whole world and is known to be the world largest bank in terms of the number of customers that if has. This paper will seek to identify the cultural conflicts in Citigroup, identify and discuss their sources, and discuss why these conflicts occurred.

Cultural Conflicts in Citigroup

Citigroup Inc. has experienced some cultural conflicts especially in the issue of management due to some differences in the goals and interests of the different individuals (Peter, 2000). Power struggle between the group from United States and the one from London was a major source of conflict. Top individuals in the management have resigned from their current positions due to these differences in the management.

Sources of Conflict

The major sources of conflict were in the way the management was carried out. Some individual managers believed in working as a group where the group focuses at achieving one goal while the others believe in individual performance and in this case, each individual focuses his or her efforts at achieving the goal of the organization (Peter, 2000).

Sources of Cultural Conflict in Citigroup Globally

The Conflicts

Power struggle between the individuals from the two countries led to the downward movement in the company’s profits. Different managers from different countries had different interests in the merger and thus coming to an agreement was a problem (Peter, 2000). The group from the United States accused their fellow managers of too much bureaucracy.

Conclusion

Citigroup which resulted from merging two different companies was quite successful in its first years but with time, cultural conflicts began to rise resulting from the interests of different individuals. The conflicts led to the resignation of some important workers that required some replacement. The cultural differences especially existed between the individuals from the United States and those from London.

References

Peter, J. B. (2000). International Mergers and Acquisitions: A Reader. London: Cengage, 48-56.