CASE 9
Case #9
Kerkko Jahnukainen
Wells Fargo, a huge finance company in America, went through a scandal in 2016 when a scheme was uncovered conducted by the former CEO John Stumpf. This included creating fake unauthorized under the names of the current clients and using them to make profit. It has been said that nearly 2 million fake accounts had been created between 2011 and 2015. For this, over 5000 employees have been fired, for no reason. The case was originally brought to surface by a "whistle-blower", an ordinary employee down the corporate ladder.
This is an issue of HRM, but maybe not in the traditional sense, as the problem here is not with the employees, but rather the management. Blaming, and even firing employees just to try to save yourself in not unethical but illegal as well.
Of course, it was originally a HR-decision to let John Stumpf become to CEO in the first place, but that was nearly a decade go, until that point he probably was an honest and trustworthy employee who had the merits to be promoted to be the CEO. In many ways this Wells Fargo is a very extreme case, as we are dealing with a huge company, with thousands of employees and customers.
Due to the scandal, John Stumpf was let go from the company and has to pay fines.
This cases displays in an extreme case, how much the person (or people) in charge can affect the company. How much power they actually have. Even this case rumors of the wrong doings had been circulating with in the company, but they were laid on deaf ears from the management side.
Sources:
12.10.2016, Wells Fargo boss John Stumpf steps down, ( http://www.bbc.co.uk/news/business-37639648)
18.10.2016, Letters suggest Wells Fargo scandal started earlier (http://money.cnn.com/2016/10/18/investing/wells-fargo-warned-fake-accounts-2007/index.html)
20.10.2016, Most feared Wall Street prosecutor's warning to bankers, (http://money.cnn.com/2016/10/20/investing/preet-bharara-bank-culture/index.html)
3.11.2016, Inside Wells Fargo, workers say the mood is grim, (http://money.cnn.com/2016/11/03/investing/wells-fargo-morale-problem/index.html)
25.1.16, Wells Fargo tries to kill fake account lawsuit,
(http://money.cnn.com/2016/11/25/investing/wells-fargo-lawsuit-forced-arbitration/index.html)
80% of employees have experienced bad management
"A YouGov and MHR survey of 2,006 employees found that 75% of workers who have experienced this have considered leaving a job, while 55% had actually quit their jobs because of bad management."
"The research suggested a lack of people skills among managers, with 58% of respondents saying that they did not think managers were equipped to deal with the human or emotional sides of their jobs."
Bullying, micro-management and threatening behavior were listed as the most common cases of poor management. Many also described their managers to be "out-of-depth" lacking in social skills and feedback.
Rachel Muller-Heyndyk, 22.1.2018 (http://www.hrmagazine.co.uk/article-details/80-of-employees-have-experienced-bad-management)
How To Handle A Bad Boss: 7 Strategies For 'Managing Up'
1. Know their 'Why': Identify prime motivations.
2. Support their success: Work around their weaknesses.
3. Take the high road: Your “Personal Brand” is riding on it.
4. Speak up: Give your boss a chance to respond.
5. Know their preferences: Adapt to them.
6. Don’t be intimidated by a bully: Stand tall, never cower!
7. Be Proactive: Do your research before jumping ship.
Margie Warrell, How To Handle A Bad Boss: 7 Strategies For 'Managing Up', 20.1.2014, (https://www.forbes.com/sites/margiewarrell/2014/01/20/6-strategies-to-hanhandldling-a-bad-boss/#3c27c7db6ea0)
Kerkko Jahnukainen
Wells Fargo, a huge finance company in America, went through a scandal in 2016 when a scheme was uncovered conducted by the former CEO John Stumpf. This included creating fake unauthorized under the names of the current clients and using them to make profit. It has been said that nearly 2 million fake accounts had been created between 2011 and 2015. For this, over 5000 employees have been fired, for no reason. The case was originally brought to surface by a "whistle-blower", an ordinary employee down the corporate ladder.
This is an issue of HRM, but maybe not in the traditional sense, as the problem here is not with the employees, but rather the management. Blaming, and even firing employees just to try to save yourself in not unethical but illegal as well.
Of course, it was originally a HR-decision to let John Stumpf become to CEO in the first place, but that was nearly a decade go, until that point he probably was an honest and trustworthy employee who had the merits to be promoted to be the CEO. In many ways this Wells Fargo is a very extreme case, as we are dealing with a huge company, with thousands of employees and customers.
Due to the scandal, John Stumpf was let go from the company and has to pay fines.
This cases displays in an extreme case, how much the person (or people) in charge can affect the company. How much power they actually have. Even this case rumors of the wrong doings had been circulating with in the company, but they were laid on deaf ears from the management side.
Sources:
12.10.2016, Wells Fargo boss John Stumpf steps down, ( http://www.bbc.co.uk/news/business-37639648)
18.10.2016, Letters suggest Wells Fargo scandal started earlier (http://money.cnn.com/2016/10/18/investing/wells-fargo-warned-fake-accounts-2007/index.html)
20.10.2016, Most feared Wall Street prosecutor's warning to bankers, (http://money.cnn.com/2016/10/20/investing/preet-bharara-bank-culture/index.html)
3.11.2016, Inside Wells Fargo, workers say the mood is grim, (http://money.cnn.com/2016/11/03/investing/wells-fargo-morale-problem/index.html)
25.1.16, Wells Fargo tries to kill fake account lawsuit,
(http://money.cnn.com/2016/11/25/investing/wells-fargo-lawsuit-forced-arbitration/index.html)
80% of employees have experienced bad management
"A YouGov and MHR survey of 2,006 employees found that 75% of workers who have experienced this have considered leaving a job, while 55% had actually quit their jobs because of bad management."
"The research suggested a lack of people skills among managers, with 58% of respondents saying that they did not think managers were equipped to deal with the human or emotional sides of their jobs."
Bullying, micro-management and threatening behavior were listed as the most common cases of poor management. Many also described their managers to be "out-of-depth" lacking in social skills and feedback.
Rachel Muller-Heyndyk, 22.1.2018 (http://www.hrmagazine.co.uk/article-details/80-of-employees-have-experienced-bad-management)
How To Handle A Bad Boss: 7 Strategies For 'Managing Up'
1. Know their 'Why': Identify prime motivations.
2. Support their success: Work around their weaknesses.
3. Take the high road: Your “Personal Brand” is riding on it.
4. Speak up: Give your boss a chance to respond.
5. Know their preferences: Adapt to them.
6. Don’t be intimidated by a bully: Stand tall, never cower!
7. Be Proactive: Do your research before jumping ship.
Margie Warrell, How To Handle A Bad Boss: 7 Strategies For 'Managing Up', 20.1.2014, (https://www.forbes.com/sites/margiewarrell/2014/01/20/6-strategies-to-hanhandldling-a-bad-boss/#3c27c7db6ea0)
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