Organizational Issues and Solutions at Wells Fargo

This article discusses the organizational issues faced by Wells Fargo, including discrimination and fraudulent operations, and proposes solutions to enhance diversity and inclusion.

Running Head: ORGANIZATIONAL ISSUES AND SOLUTIONS 0
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ORGANIZATIONAL ISSUES and solutions
Wells Fargo

ORGANIZATIONAL ISSUES AND SOLUTIONS 1
Table of Contents
Introduction................................................................................................................................2
Corporate Culture.......................................................................................................................2
Area of Weakness......................................................................................................................3
Proposed Solutions.....................................................................................................................3
References..................................................................................................................................5

ORGANIZATIONAL ISSUES AND SOLUTIONS 2
Introduction
Wells Fargo is a financial service company whose headquarter is situated in San Francisco,
California. The company is providing services at various locations in the country and it is the
worlds second largest company as per the market capitalization. The major services of this
company include banking, investments, insurance, mortgage, and various financial and
commercial services. It is also the fourth largest company in the US as per the total assests
(Oliveira and Hippel, 2011).
However, Wells Fargo faces many challenges related to the diversity and for many long
periods, the company was seen as to promote discrimination in their operations. In addition,
many African-American employees argue that during the internal decisions, there were not
considered at all. Considering certain groups of workers, many faces lack motivation as they
were banned from lucrative teams.
Corporate Culture
The mission statements of the company state that – “Our guide to serving consumers and
helping each other”. The company also have a specific vision, which stands for satisfying
their customers by fulfilling their financial needs, and thus help them succeed financially.
Well, Fargo mission was to be the leader in the customer advisory. The two main aspects
united their goal, which is promoting diversity and social inclusion. The company strategy
also focuses on the employees in the organization, as they want that every employee of the
organization feel valued and respected (Delahaye et al, 2009). Their corporate culture
consists of various primary values like keeping the customer needs at the centre of their
strategy, develop, motivate and retain their efficient employees, keeping high standards of
transparency and integrity, and promoting diversity and inclusion. The company make value
their creative and innovative principles which gives them the power of innovative thinking as
well as effective use of the technology (Dean, 2008). The working culture in the Wells Fargo
may have facilitated discrimination leading to fraud, however, the unethical activities in the
organization led to the penalty of those workers who reported about the fraudulent operations
of their co-worker's immoral actions.

ORGANIZATIONAL ISSUES AND SOLUTIONS 3
Area of Weakness
The main area of weakness in relation with Wells Fargo is their global commendations. On a
global scale, the company is perceived as a low customer care and satisfaction which is also
due to the several legal issues imposed on the company. In 2016, the company faces massive
media frenzy due to the employees of Wells Fargo. They have formed thousands of
fraudulent savings and checking accounts on behalf of the organization clients without their
consent (Lindamood, Hanna and Bi, 2007).
Inside the company, management boosts its employees to measure and track various accounts
of the customers so that to check who was pre-approved for the various lines of credit. The
employees were also forced later to enter their contact data on the application of credit which
will make the consumers mislead about the identity theft. According to the various reports, an
approximate 1,534,280 unauthorised deposits accounts and 564,433 credit card accounts
between 2011 and 2016 were compromised (Ross, 2010).
The other areas of Wells Fargo include the high attrition rate of the employees as compared
to the other industries in the market. In addition, due to their tight internal operations, they
are not able to move outside their business objectives. This present culture also creates many
barriers for the company in relation with migration into different segments.
Proposed Solutions
The future success of the company stands on their long terms innovative strategy relating to
the enhancement into the diversity as well as inclusion. The transformation of three critical
areas is necessary with the approach of diversity and inclusion. These three important areas
are Team members, Market place, and Leadership. In contrast to the team member strategy,
the company need to frame various policies for attracting and retaining the new talents in the
organizations. This will also prove their vision and mission statement. The market place
strategy of the company includes the development of the effective relationships between the
various diversified vendors and suppliers. In their leadership strategy, the company needs to
engage several leaders at every position of their operations. These leaders need to hold the
vision and values of the company (Watson, 2008).

ORGANIZATIONAL ISSUES AND SOLUTIONS 4
For implementing these strategies, the company is required to establish various teams at all
regional and local levels who can take out the operations with diversity. The company also
needs to consider and involves all the sectors of the firm while implementing diversity and
inclusion strategy. It also includes establishing a relationship with all the critical partners
including society, government, community and human resource departments.

ORGANIZATIONAL ISSUES AND SOLUTIONS 5
References
Dean, K.W. (2008) Values-based leadership: How our personal values impact the
workplace. The Journal of Values-based leadership, 1(1), p.9.
Delahaye, A., Booth, C., Clark, P., Procter, S. and Rowlinson, M. (2009) The genre of
corporate history. Journal of Organizational Change Management, 22(1), pp.27-48.
Lindamood, S., Hanna, S.D. and Bi, L. (2007) Using the Survey of Consumer Finances:
Some methodological considerations and issues. Journal of Consumer Affairs, 41(2), pp.195-
222.
Oliveira, P. and von Hippel, E. (2011) Users as service innovators: The case of banking
services. Research policy, 40(6), pp.806-818.
Ross, D.G. (2010) The “dominant bank effect:” How high lender reputation affects the
information content and terms of bank loans. The Review of Financial Studies, 23(7),
pp.2730-2756.
Watson, S. (2008) FEATURE The business of customer experience: lessons learned at Wells
Fargo. interactions, 15(1), pp.38-43.