Reference no: EM132407760 , Length: word count:5000

Foundation of Personnel and Industrial Psychology Assignment - Wells Fargo Case Study

QUESTION -

Introduction - Organisational Behaviour (OB) can be very simply defined as how individuals and groups (including management) in organisations act and conduct the affairs of the business leading to its successful performance or otherwise.

In recent years, more attention has been paid to corporate culture and "tone at the top," and the impact that these have on organizational outcomes. While corporate leaders and outside observers contend that culture is a critical contributor to employee engagement, motivation, and performance, the nature of this relationship and the mechanisms for instilling the desired values in employee conduct is not well understood.

Graham, Harvey, Popadak, and Rajgopal (2016) find evidence that governance practices and financial incentives can reinforce culture; however, they also find that incentives can work in opposition to culture, particularly when they "reward employees for achieving a metric without regard to the actions they took to achieve that metric." According to a participant in their study, "People invariably will do what you pay them to do even when you're saying something different."

The Wells Fargo Case has received the attention of OB scholars in general.

In this assignment you have been hired as an OB scholar to support the new Chief Executive Officer of wells Fargo to review the scandal and recommend actions to improve its organisational effectiveness. You have been requested to submit a 5000 word count paper to the board as a foundation to this exercise. Your paper should specifically address the following areas and questions;

1. Your understanding of the Wells Fargo scandal from an organisational behaviour perspective using specific and appropriate Organizational Behaviour tools and concepts to illustrate your points.

2. What internal & external factors do you think may have triggered the Wells Fargo scandal?

3. The Wells Fargo cross-selling scandal demonstrates the importance of financial incentives. Was the company wrong to provide incentives to branch-level employees to increase the number of products sold per household? Would the program have worked better if coupled with additional metrics? Explain your answer using related OB theories.

4. As an OB scholar, would you submit that the sales teams were effective in Wells Fargo? Justify your answer with related theories and models.

5. How would you describe Wells Fargo organisational culture, what culture existed in Wells Fargo and how did this impact the scandal?

6. What is your perspective of the kind of leadership that existed in Wells Fargo? What impact did the leadership have on the scandal? Wells Fargo chose an inside executive as CEO successor to John Stumpf. Was this the correct decision? Justify your answer.

7. What key recommendations would you make to improve the organisational effectiveness of Wells Fargo?

Note - Attached two short summarized briefs on the incidence.

Attachment:- Personnel and Industrial Psychology Assignment Files.rar