Lindsey Wilson College Organizational Behavior Discussion

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Lindsey Wilson College

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Critical Thinking Questions

  1. What happened at Wells Fargo with regard to past activities that led to this major scandal?
  2. What internal dimensions of the company were part of the problems that occurred?
  3. How might the organizational structure of the company have been part of the problems that occurred?
  4. . Identify and use relevant concepts from this chapter as well as your own thoughts and analysis to diagnose the scandal at Wells Fargo. How could such a scandal have occurred in the first place? Who and what was at fault?
  5. Suggest some solution paths the company might consider, using knowledge from this chapter and your own thoughts/research, to avoid such a scandal from reoccurring.


Explanation & Answer:
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Explanation & Answer

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Wells Fargo, Crisis and Scandal

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1. The Wells Fargo is headquartered in America and 2016, it had a major scandal that
surprised the whole country considering how prestigious and successful the bank has been for
years. The Wells Fargo Bank management team and leaders imposed excruciatingly high
sales goals and objectives. These abusive practices, such as pressure to meet dramatic and
impossible to meet goals and extreme levels of pressure, failed the employees forcing them to
create false accounts and indulge in fraudulent activities, which led to the major scandal.
2. It turns out that the company's management system was highly incompetent, which
led to the huge scandal that followed (Harvard, 2019). The management only cared about
results and gave minimal regard to how these results were to be achieved as long as they were
achieved. Because of this, the company's internal and middle irregularities were not easily
spotted.
3. The Wells Fargo organizational structure at the time of the scandal was very
problematic, seeing as there was barely any healthy communication between the managers,
CEO, and employees which led to some activities being carried out that the managers and
CEO did not know (NPR, 2019). Lastly, the top authorities in the organizational structure
were very autonomous and only cared about results with less caution about the processes
involved in getting these results.
4. The Wells Fargo scandal happened in the first place due to the company's desire to
achieve and maintain a specific sales and financial standing that was highly successful but
also frankly unrealistic. Due to this, the employed organization used some very unfair means,
such as creating fake customer accounts to push its services to the market (Systems, 2016).
The company's management was at fault for the entire scandal first reason being that it set
extremely high goals and put the employees under much pressure to achieve these goals and

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also for failing to realize the measures being used by the employees to achieve these set goals
and objectives which as seen resulted into the scandal.
5. To avoid such a scandal, the company should get some advice and knowledge from
prestigious and successful banks to attain the level of success that the bank is looking for
(Systems, 2016). The organization should also employ a very intelligent management system.

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References
NPR.org. (2019, March 12). CEO says Wells Fargo has transformed after scandals;
Lawmakers are skeptical. https://www.npr.org/2019/03/12/702501160/ceo...

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