Subunits - Week 7 Reflection

Subunits - Week 7 Reflection - Subunits Subunits can be...

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Subunits Subunits can be found in nearly all organizations through the division of decision rights. Brickley, Smith, and Zimmerman more clearly define subunits when they state, “All but the smallest organizations invariably are divided into subunits, each granted particular decision rights and then evaluated based on performance objectives for that subunit. Rewards typically are based on these performance evaluations” . Being a larger organization the subunits at Citigroup are more prominent throughout two groups which are stated in USA Today; they are the investment banking and stock research groups. The second part of the statement dealing with the rewards aspect is clearly determined by the investors as the article in USA Today clear points out by stating, “In a bid to restore its reputation with investors, Citigroup moved to separate investment banking from stock research…” . The idea behind such a move on the part of the organization is to remove the doubt faced by investors that the investment banking side of the company may be gaining favor from the stock research side due to the
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This note was uploaded on 11/01/2011 for the course MBA 575 taught by Professor Dr.tvorik during the Spring '11 term at St. Leo.

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Subunits - Week 7 Reflection - Subunits Subunits can be...

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