According to Hon, Bloom, and Crant, (2014), William Fargo, and Henry Wells in 1852 founded the Wells Fargo & Co. the purpose of the company was to offer the banking services to the west. The primary activity for the bank was buying the goods and selling the bank paper draft as the gold; they also deliver an ything valuable such as gold rapidly. The Wells Fargo started a business in the port San Francisco, soon after that, the agents of the Wells Fargo opened their offices at the new cities targeting the West camps. The bust and the boom of the economy in the 1850s made the business very reputable since it was dealing responsibly and rapidly with peoples’ money. By the 1960s the company had earned long – lasting together with the corporate symbols (Brown, and Worthington, 2017). Wells Fargo has been able to ma intain the marketplace, and even in the modern times it stills hold the reputation of and the fame it had since 19th and 20th Century, the company has a culture that is very flexible and can adapt to any environmental change today. For instance, the presen t rapid technology of communication and the social changes, the Wells Fargo has been so attentive to the customers need and doing the business to realize great success. Wells Fargo is an American Corporation with the headquarter situated in San Francisco ( Brown, and Worthington, 2017). The purpose of the bank is to offer the west business and agricultural growth. For instance, film industry, aerospace, and fledging auto among others. Wells Fargo is a big corporation with its operation extending to over 35 c ountries, and the branches are approximately 8,700. In 2017, the total number of the company’s employees both the full time and part tie were 239, 836 (Verschoor, 2016). The Wells Fargo human resource has laid down the strategies which are aiming at the diversity inclusivity. The policy of the human resource adheres to rules and the federal regulations on the
KOTTER CHANGE MANAGEMENT MODEL 3 sexual harassment acts, the racial segregations and the abuse of the workplace among others. Are comprise in the Act of the age discriminations, th e Act of Civil rights and the Act for the American. The Wells Fargo human resource make references to the above acts when dealing with the issue of compensating the staff, involuntary employment termination and the absent leaves (Brown, and Worthington, 20 17). The key factors facing the Wells Fargo organization has to do with the lending, deposits, sharing insurance and the information. The information should be able to develop the techniques of ensuring that they offer the employees with the best training techniques with relation to the working environment, the report of the employee and the customers to avoid losing more customers (Verschoor, 2016). The wells Fargo organization should come up with the strategy of ensuring that the employees and the sta ffs are having the better communications concerning the insurance, and the practices of lending which is supposed to be used by the members of staffs. In their provision of services in diverse part of the regions (Hon, Bloom, and Crant, 2014). The Wells Fa rgo company should be able to mitigate the international issues in relations to human resources global strategy. The human resource comprehensive strategy aims at legal, problems in the environment, cultural and the political factors (Verschoor, 2016). The next strategy which ensures that there is understanding of multiculturalism; is through the staff model which allows a significant number of citizens. Both from the country and internationally to make applications concerning working for the Wells Fargo Corporation (Brown, and Worthington, 2017). Wells Fargo currently lacked the strategy which is well defined which could assist with the employees hiring and the training techniques. Such lack of proper hiring has resulted in the company losing vast amount s of funds through the fines because of the employee’s malpractice where they created credit cards over 2.1 million accounts for
KOTTER CHANGE MANAGEMENT MODEL depositing for the customers unaware. The policy recommendation for such kind of issue is through customizing the approach of h iring, firing training and the process of compensating in each nation. The Wells Fargo had to ensure that the persons hired are a valuable personality (Verschoor, 2016). The human resource should, therefore, invest in the adoption of the training techniqu es which are useful for ensuring that employees are more oriented towards the work ethics. According to Hon, Bloom, and Crant, (2014), the Wells Fargo Company will stand out to be the beneficiary if they can adopt and maintain the worker’s retention us ing such kinds of programs. In the long run, the employees are motivated to achieve the objective of the company. Hence, the Wells Fargo will be able to focus on the quality of the products even as they reduce the costs of productions. The Wells Fargo has been involved in some form of scandals which resulted in massive loss of funds by the stakeholders due to substantial penalties, that scandal made the stockholders lose their trust in business which called for immediate change and restructuring. Among the transition, reasons are that the investors and inventors need the leadership style which is trustworthy, and they can believe with their investment. The cross – selling are enlarging their scandal occurring at the management and board levels (Brown, and Wor thington, 2017). The price of the stock dropped massively by about 4.3 percent following the scandal while other businesses like the American Bank gains over 7 percent. The Wells Fargo Company also recommended the four top – level executives to retire after the federal reserves restricted the size of the company. It resulted in the change of management with lack of effective communication from the top management to the subordinate staffs (Verschoor, 2016). The diagnosis of the organization is an essential too l when it comes to the determination of the significant gaps existing between previous leadership blood and the current change that is
KOTTER CHANGE MANAGEMENT MODEL 5 needed. The first strategy of communication that will be conducted by the Wells Fargo for implementation is not related t o change. Wells Fargo Company is looking forward to preventing the further scandal from occurring. Therefore, the company had to be transparent with that group of persons that were responsible for the mischief (Verschoor, 2016). The company had to critical ly analyze the persons involved and come up with a way of suspending them and further observation of the persons who could avoid future scandals. Wells Fargo Corporation should come up with a new list of names as an indication of consciousness concerning t he future occurrence. The next tool for diagnosis is analyzing the language of the company to check whether they are ready for a change. The board of management for the Wells Fargo should be able to speak one language of the employee’s expectations. That will take place after replacing the four – leading management of the Wells Fargo. The reason for the recommendation of the new diagnostic tool is because the company is moving to the next level of leadership whereby are assuring the stakeholder and investors that there will be no further scandalous incidence of occurrence (Hon, Bloom, and Crant, 2014). Implementation of the change would imply that the company will be able to improve regarding performance, and the previous fall in the price of the stock by 4 percent will rise again since the investors will be trusting in the company. Wells Fargo is using the tool for emphasizing to ensure that the implementation is executed appropriately (Verschoor, 2016). The company will demand the retirement of the four e xecutives at the top level management and replace with members who are dedicated. The reputation of the company will be gained as they are focusing on the rectification of the flaws before the investors. Hence they will be able to make more product sales i n comparison to earlier periods (Brown, and Worthington, 2017).