Basics of Human Resource Management — Case 10 ( The Effects of HR Decisions)
The Wells Fago case was in the media’s attention. What was it about? First of all some of the branch bankers created some fake accounts to receive the bonuses. From that thing the whole thing just expanded more and more.
Of course clients were mad, because their name and information were used illegally and their human rights have been violated.
The CEO had to take the blame for everything, because he knew from 2013 about the fact that the unauthorised accounts problem, and in result, he resigned.
This scandal affected a lot of people, from the CEO, to the branch managers to the clients.
I think that this is such an important case, because the crime wasn’t done by the managers or other people with a lot of influence, on the contrary it was done by the “lowest” tier and that is the normal bank worker. And they did it for a pretty small bonus.
This scandal made future possible clients to doubt the whole banking industry.
The HR department should be held responsible for not noticing it, because there were a lot of complaints from employees who were whistle-blower and also the bank received calls from clients.
Matt Egan, CNN Money, “5,300 Wells Fargo employees fired over 2 million phony accounts” (September 9, 2016) accessed: 30.04.2017 URL: http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/
Gomez-Mejia, L.R., Balkin, D.B. and Cardy, R.L. 2016. Managing Human Resources.
James Rufus Koren, “Wells Fargo CEO knew for years about problems with unauthorised accounts” (29.09.2016) accessed: 30.04.2017 URL: http://www.latimes.com/business/la-wells-fargo-live-updates-stumpf-ceo-stumpf-long-aware-of-issues-with-1475166245-htmlstory.html