Wells Fargo Bank Scandal and Compensation

Running head: WELL FARGO SCANDLA
Wells Fargo Bank Scandal and Compensation
Student’s Name
Institution Affiliation

WELL FARGO SCANDAL AND COMPENSATION 2
Introduction
Well Fargo bank is based in United State. It is a diversified financial services company that
provides many services namely: banking, mortgages, investments, consumer credit and many
others (Geisst, C.2006). It has 3,000 branches which cover 23 states that offer banking services
and serves 20 million households in the US.
In 2016, Well Fargo admitted that employees created more than 2 million sham accounts
without the client's authorization/consent (Tayan, B.2016) further investigation on the scandal
found that more than one million additional fraudulent accounts were created (Cokery,
M.2017). This aggravated the wound of the clients who suffer from the fraud by losing their

WELL FARGO SCANDAL AND COMPENSATION 3
money as well as Well Fargo which was in the process of redeeming its image after getting
involved in such heinous crime. Under the circumstance the employees/clients are entitled to
compensation as stipulated in chapter 11 of work system design and some workers must lose
their jobs for getting involved in the fraud. Well Fargo accepted to settle three government
lawsuits by paying $185 million over the scandal (Cokery, M.2017). Well Fargo further unearths
528,000 cases that clients were signed up without their authorization. Thus, the bank will pay
$910,000 to the victims to meet the fees they incurred in the situation. In addition, clients
detect sham accounts when they incur fees on them. The bank testifies that it has paid
customers$ 7 million to that effect and further agreed to give $ 142 million to meet class action
over the sham accounts (Cokery, M.2017). The company overhauls its executive by replacing its
key members of the board and encourages bank branch employees to concentrate on
customer's service instead of the sale. The fraud was transpired by employees who were trying
to meet aggressive ‘sales targets’ and created accounts with clients details without their
consent.
Describe the major components of work system.
The main components of work system include participative ergonomics, macro ergonomics
analysis of structure and finally macroeconomic analysis and design. Participative ergonomics
depends on employees participation in analyzing the job and produce work system, while
macro ergonomics brings together empirical analytic models to examine the effect of
sociotechnical system components (technology and tools, human resource and environment).

WELL FARGO SCANDAL AND COMPENSATION 4
Lastly, macroeconomic analysis and design which provides ten steps to as well as evaluation
from a sociotechnical angle ( Realiyvasquez-Vargas, A .Maldonado-Macias, A and Garcia-
Alcaraz, J 2018)
Explain the meaning of technical feasibility, economic feasibility, and behavioral feasibility.
Technical feasibility means an examination of particular solution considering organization's
resources and technological infrastructures that are present. Behavioral feasibility means an
examination of compatibility of a particular solution to organization's culture as well as the
degree to which the users are required to embrace the solution (White, M.2018) and finally,
economic feasibility demonstrates the estimation of proposed project demand potential or
benefits of the proposed project (Kumar, S.2003).The proposed project may produce goods or
services and it is important to have a market for those goods and services that the project yield.
As result of that economic feasibility produced an analysis of the market for goods and services.
Describe cases in which people are preferable to machines
Case in which people prefer to machines is when interacting with other people. For instance,
people can shows/express empathy when talking with clients that are impossible in machines.
In addition, when the complex operation is required that cannot adhere to linear logic in
computers and finally when creativity is required. For instance, a layer arguing persuasive
statement in a court of law.
Describe cases in which machines are preferable to people.