Wells Fargo was founded by William Fargo and Henry Wells to serve people in the wes
Wells Fargo was founded by William Fargo and Henry Wells
Wells Fargo was founded by William Fargo and Henry Wells to serve people in the west. The company started by buying gold offering express services for delivering gold. The company prospered in the 20th century as it earned a good reputation from its customers due to its loyalty and attention to them. Wells Fargo Bank is an American global company offering banking and financial services. The companies headquarter is located in San Francisco. Wells Fargo is among the biggest banking companies worldwide operating across thirty – five countries with 8,700 branches. With that extension worldwide, it has over seventy million customers. The company leads with the highest number of employees, the company’s number of employees both part – time and full – time during 2017 w as 239 836 (Brown & Worthington, 2017). The human resource of Wells Fargo has strategized in a way that it ensures inclusivity and diversity. The human resource department has a policy that adheres to the regulation and federal laws on acts of sexual hara ssment, racial discrimination and workplace abuse which are included in The Age Discrimination Act, The Americans with Disabilities Act and The Civil Rights Act. The human resource refers to the Acts when handling cases of staff compensation, leave of abs ent and involuntary terminations. Of the major legal issues facing the company are deposits, lending, information, and insurance sharing. To avoid losses in the company, the human resource should come up with a strategy to educate their employees regarding work, customer and employee information and the best method to protect and dispose of such information. Another change that should be implemented is an all through communication on recommended insurance retail and lending practices to be granted to all st aff members in the organization. The organization lacks a policy that clearly addresses the issues of the language barrier, cultural practices, and norms which leads to misunderstanding considering that they
DIAGNOSING CHANGE operate in different countries worldwide (Versc hoor, 2016). The company ought to address the issues by coming up with a global human resource strategy that takes into the context of the political, cultural, and legal environment. Another way to make sure the issues of multiculturalism is understood, th e company has to use the polycentric staff model that calls for a large number of citizens from host countries to work in the company. Currently, there is no defined HR strategy that looks into the issue of compensation, cost of living and working conditio ns. The managers have to establish how the executives who take overseas assignments have to be compensated. Wells Fargo recently lacks a defined strategy to hire and train employees. Lack of hiring qualified and required and training employees has cost the company a lot o0f fine such as the recent malpractice where employees created over 2.1 million credit card accounts and phony deposit for the unaware customer. The recommended policy and way to approach the issue is customizing the hiring, training firing and compensation processes in each country. The Human resource department has to ensure that it hires valuable candidates, invest in training programs focusing more on employee ethics. It will benefit the company to realize factors that lead to workers re tention and through these programs, the workers are motivated towards working hard to achieve the defined objectives. In the long term, the company will be reducing cost by focusing on quality. Wells Fargo has been involved in a scandal that has led to he avy penalization. The scandal made the investors lose trust in the company’s behavior and leadership thus pushing for management change. The first reason that gives a purpose for the management change is that the inventors need leadership that they can bel ieve in. cross – selling is a growing scandal that occurs at the board and management levels. The stock price of the company fell by 4.3% after the scandal while other companies such as Bank of America posted gains of more than 7%. The
DIAGNOSING CHANGE second reason for the company recommending retirement of their four top executives is following the size restriction of the company by the Federal Reserve. The Office of the Comptroller of the Currency a banking regulator finalized their enforcement action on Wells Fargo due to it risk control (Verschoor, 2017). Another reason that led to management change is lack of effective management that with improper communication from top management to down management (Metz, 2017). An organizational diagnosis is an effective tool that looks to determine the major gaps between the current and the previous leadership and how the change will be conducted. The first communication strategy that will ensure change in management in Wells Fargo will be implemented is not emphasizing the change. The company is looking to prevent a scandal from occurring again thus has to be frank on what and who transpired the misbehavior. Wells Fargo ought to critically examine who was involved and suspend them and be keen on individuals who may influence such a scandal in future. The company needs to list the new names onto its ranks of the board to show that it is really cautious of such scandal from happening again. Another diagnostic tool that will determine if the organization is ready for change is the alig nment of language. The company’s board of management ought to speak of what is expected of every employee. This will occur after Wells Fargo has replaced its top four executives (Verschoor, 2016). The reason why I recommend the diagnostic tools is that it shows that the company is on a move to a new leadership and assures investors that such scandal will not happen again. The implementation of change will improve the performance of the bank where its stock price had fallen by 4% percent as the investors w ill remain their trust in the company. The company has used emphasizing tool as a way to make sure that the implementation plan is effectively executed. The company order for of its topmost executives to retire and it has
DIAGNOSING CHANGE promised to replace them with dedi cated members. The company has also stated that it will continue implementing considering staff with long – term experience with those who have a new perspective on the organization. The organization has for long been known as a well – run and highly profitab le company but its reputation was ruined by its company’s misconduct where they created over two million phony accounts without customer’s authorization(Metz, 2017). The company is likely to get its reputation back where it will focus on rectifying their flaws in the management and the board level. The company will be able to sell more products than before as the investors will trust the company. The employees will be familiar with their expectation and how to realize how misbehavior can lead to their job termination and cost the company’s reputation impairing it’s functioning.