Organizational behavior encompasses the analysis of individual performance within an institution and also assess the impact and influence of a group within the organization. The company that will be scoped in this case is Wells Fargo. The company has notably been having ups and down within the past years, and a look at it through the systemic analysis of organizational behavior as an assessment tool will be able to provide a practical outlook of what is happening and the recommendations available to counter any negative realization. The organizational behavior report will be able to thoroughly assist in the actualization of the business process within the company and be able to ensure that the human resource is effectively accommodated to ensure maximum returns are achieved through company operation. This report will start the analysis through assessment of notable and glaring organizational behavior issues that are certainly out in the public eye.
Ethics and Corporate Social Responsibility
Wells Fargo has been operational for years, and through its positive activity has been able to build a large pull of clientele. In the year 2012, it came to light that the company has been scheming the most vulnerable in society and especially the marginalized black and Latino communities. This led to an extensive assessment of how the bank was running its affairs and was found to stem from the need for employees to be meeting the target set continuously. The Department of Justice accorded the afflicted 178 million dollars, but the company was exempted from accepting liability of the occurrence. The company was again in the spotlight in 2016, where employees were found to have opened more than two million illegal accounts with the quest of meeting daily sales goals. The pressure within the company not only derailed the company for realizing better ways of making money but also created low morale and team conflict within the company.
Lack of Diversity
The question of diversity is always a touchy subject, and most companies always seek to be welcoming to all races without prejudice. The company states that the company has a diverse workforce of about 44%, but though this might seem like a notable number majority of the blacks and Latinos have the least paying jobs within the organization. The CEO was also quick to remark that the pool of educated people who are black that could occupy some notable positions was limited because the numbers were relatively low. This out rightly depicts unconscious bias because the high-level slots within the companies that have been occupied by diverse races and females are slowly decreasing that than increasing in the past few years. For black and female employees who are aiming for top jobs within the company will undoubtedly build a high sense of resentment and seek to look for positions in different companies leading to high turnover numbers of marginalized people.
The company seems to lack awareness that their actions have consequences because their result is a large payout without being credited as doing the wrong obligation. Another notable issue is the lack of a clear direction that the company seeks to follow to make more revenues. It has in the past year been found guilty of using tactics that can be deemed inappropriate to attain more profits each financial year. The company has flawed feedback protocol and communication system, and this is because the majority of low levels employees would instead be filled with resentment and continue working rather than blatantly telling the company that what they are doing is wrong. This issues eventually translate to more significant problems within the company, which became harder to fight, such as high turnover, low employees morale and conflict from within the company. The Failure for Well Fargo to meet the threshold that is affecting the company means that the future might not be so bright for the financial institution and more cases of racial prejudice, the pressure of management and lack of communication are expected to rise seditiously.
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Works Cited
“Diversity and Inclusion.” Wells Fargo – Banking, Credit Cards, Loans, Mortgages & More, 2019, www.wellsfargo.com/about/diversity/diversity-and-inclusion/.
“SEC and Other Regulatory Filings – Investor Relations – Wells Fargo.” Wells Fargo – Banking, Credit Cards, Loans, Mortgages & More, 2019, www.wellsfargo.com/about/investor-relations/filings/.
Wells Fargo – Banking, Credit Cards, Loans, Mortgages & More, www08.wellsfargomedia.com/assets/pdf/about/corporate-responsibility/progress-to-goals.pdf.
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