Although Wells Fargo has maneuvered the recent crisis very responsibly and prudent, it is lumped together with other Wall Street firms and their failure during the crisis. Its’ reputation, as the reputation of any firm on Wall Street, has suffered. The trust in Wall Street firms is destroyed It is believed that the economic crisis was triggered by failures in leadership; we are in a so-called leadership crisis, meaning that the majority of the American public doesn’t have trust in their leaders anymore, and neither do employees trust their managers. This leadership crisis influences the productivity of banks, as can be seen at the falling stock value of Wells Fargo. Therefore, to guarantee enduring productivity, Wells Fargo has to adjust some managerial aspects because only a strong leadership provides a stable future and avoid another crisis.
Managers have to become leaders who motivate and encourage their employees. This creates a new group dynamic and guarantees passionate workers and, hence, increased productivity. When numerous firms collapsed and experienced high losses, the managers received high pay-offs while the employees lost their jobs. Although Wells Fargo was not struck by bankruptcy and enormous losses, its employees have it in the back of their mind that they will be the straw men if the firm fails. No employee wants to engage in a firm with managers who might not be reliable and for whose failures the employees have to pay in the end. Therefore, managers have to represent that they are all part of the same group and pull on the same string. Wells Fargo has to see its employees as whole persons and members as a group, not only as workers. To convey the focus on workers, not profit, Wells Fargo has to provide empl...
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..., and receive feedback on those complaints. This can be done through online surveys or internet platforms, like a forum. Only if customers have the feeling that Wells Fargo not only cares about its profit, but about the best solution for its customers, trust can be restored.
Once Wells Fargo has implemented those managerial changes in policies, it should start a marketing campaign to inform the public about its new services. However, the best advertisement is word-of-mouth advertisement. Therefore, Wells Fargo should ensure that its employees as well as its customers are content with its service, because only happy employees and customers convey a positive image to the public. Through establishing its reputation as a reliable bank with strong leadership, Wells Fargo secures its place as one of the leading firms on Wall Street for more than fifty years from now.
One year ago, on September 8, 2016 the Consumer Financial Protection Bureau(CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo Bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015. This essay will discuss the Wells Fargo scandal by explaining how the event happened and describing how the organization approached handling a response to the crisis. This will be seen, firstly by describing the how the scandal happened, and what were the causes, secondly by discussing the reaction of the company in front of the situation, how they dealt with the crisis and then
Prior to Fuller’s transfer, management at the Carson’s location was poorly run using the classical approach. While this approach can be successful, management has to find a good middle ground between caring for the company and caring about their employees. A traditional classical approach recognizes that there are five important factors to running a successful business (Miller, 19). According to text, these factors are planning, organizing, command, coordination and control (Miller, 19-20). These factors can be seen when you look at Third Bank as a whole. In the study, the CEO saw the issues in his company and put a plan together to improve. He had meetings with management, like fuller, to organize a solution. He then commanded all locations
Key stakeholders are owners, directors, employees, and the community that the organization draws it resources businessdictionary.com,2016). Out of the 1000 Wells Fargo customers that were surveyed 3% stated that they were personally affected by the scandal and 14% of them stated that they have changed banks while 30% of them were currently looking to switch. Studies predict that Wells Fargo could lose about $99 billion in deposits and $4 billion in revenue because of customers rejecting to do business. Individual customers weren’t the only ones that were affect by the scandal but similarly 10,000 small businesses (Razin, 2016). I believe that the owners will be affected as well because of profit losses that will eventually affect Wells Fargo shares and the employees were affected after 5,300 of were fired (Razin,
Not only were millions of Americans been put out of work due to these manager’s actions, the American financial markets themselves were pushed to the brink of collapse. Despite the fact that the global financial markets, in reality, are not perfectly efficient, there is a corrective mechanism built into the day-to-day trading in the market. When prices are driven down by large sells, either by large investors or a movement in a stock, there are usually new buyers for these stocks at the cheaper price. Managers of...
It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which typically extends its operation by combining with another corporation. So from two on existence corporations in the process it gets absorbed into becomes one entity. The legal definition also implied more than meet the eye. The terms contractual and statuary, it implied a process on which contracts and statuary measures emerge as measures to regulate, standardized, governing or simply at times may complicate whole process. These terms provide an explicit umbrella and it becomes as part of the agreement formulating or promoting a case for contracts to be precedent, enforced or regulated in a now or in the future under a court of law under the Contract Business Law Statue of Practice. As for what happens to the shares of the involved corporations no more explanation is needed as the already actions mentioned clearly stated of the expectations of a merge’s share involvement.
Wells Fargo account fraud scandal One of the most recent white-collar crimes involved Wells Fargo, a banking and financial services provider. In 2016, San Francisco-based bank Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts without permission of their customers. Opening about 1.5 million fraudulent deposit accounts and submitting 565,443 credit card applications allowed Wells Fargo employees to boost their sales targets and receive bonuses. Consequently, customers were wrongly charged fees for accounts they did not know existed. In this business crime scenario, Wells Fargo is involved in paying $185 million in fines and refunding $5 million to affected customers.
At Wells Fargo, teamwork and sales are important skills needed in order to succeed as a teller. At Wells Fargo, I plan to incorporate a system where each teller gains the skills necessary so that each task runs efficiently. To begin, I will start observing each banker’s, and each teller’s normal routine. I will be listening carefully to the conversations the tellers, and bankers are having with customers. As an observer, I will be taking notes on what the employee’s strengths and weakness are when lobbying to a customer, and working with coworkers. I will continue this process for a week. Once the week is complete, I will have one on one meetings with each employee. After the employee’s one on one meeting is complete, a proposed course of
For Chase bank the mission and vision should always be clear to their customers. "At JPMorgan Ch...
Over the past 150 years, Wells Fargo Bank has become one of the largest financial institutions in the North America. Wells Fargo Bank is much more than a bank. It’s a premium financial service provider. It believes in its people and products to help them to succeed. So how has Wells Fargo become such a leader in the financial world? It measures its success by its management staff and team members. Wells Fargo has developed and implemented its own management structure and answers the following questions regarding existing success:
In this paper I will identify and analyze the Wells Fargo scandal as it pertains to the breakdown of leadership and ethics. I will first identify and analyze the event and discuss the challenges and conflicts the scandal presented. Then I will evaluate the issue by explaining why the issue has interest and concern to stakeholders followed by discussing the challenges presented to individuals and/or organizations around this case. Lastly, I will recommend action steps that should be taken to those involved as well as discuss what I have learned from exploring this topic.
Obviously, the CEO had a very important part in the problem. He was supposed to keep track of everything and should have seen that something was not right a long time ago. Also, the company needs to come up with a new sale strategy and set S.M.A.R.T. goals for the long and short run and reevaluate these decisions based on the outcomes. Wells Fargo needs to implement a system in where employee's ideas can be heard. They need to feel comfortable enough to speak up their minds and give their opinions and that their opinions are going to be taken into consideration for future decisions.
If the organization succeeds then the employees also succeeds. Employees must see the bigger picture and must feel that they are part of the organization and not just a one man show.
Wells Fargo Bank. (2014). Wells Fargo team member handbook – January 2014. Retrieved from http://teamworks.wellsfargo.com/handbook/HB_Online.pdf
Staying ahead of the competition and increasing profits are the fundamental objectives for every organization. However, many firms today continue to invest extensively in business development activities and less on employee productivity. This mindset ignores the firm’s chief asset and its core foundation, its workforce.
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.