THE EFFECTS OF HR DECISIONS & CASE10
In this post I am using Wells Fargo case as example and talk about effects of HR decisions. Wells Fargo is an American international banking and financial service holding company. In September 2016 Wells fargo started to appear in bad light when CNN released an article about horror stories from Wells Fargo employees. Employees told that they work under lot of pressure trying to reach unrealistic sales targets. Some workers had even asked their relatives to open new bank accounts just to reach targets. At the end there were about 2million fake accounts opened. Employees were also pushed to work overtime without extra salary. After this whole scene was revealed to the public, Wells Fargo ended up firing more than 5000 employees.
Resigning over 5000 employees concerned exit management. Fired employees told that they experienced stress in Wells Fargo. Working under stressful conditions lowers employee wellbeing and safety at work. Some former employees told that they lost their willingness to work for Wells Fargo because of lack of motivation towards company’s goals. So to say, employee engagement was weak. Also rewarding employees did’t work well since employees were not paid extra for working overtime. Employees were ordered to reach high goals regardless how they do that. I believe that by firing over 5000 employees who had violated Wells Fargo’s code of conducts by opening fake accounts they tried to make a statement that everyone who doesn’t follow rules gets fired. Firing more than 5000 employees is not the best way to try to clean company’s imago.
To conclude this case, it is clearly easy to say that Human resource management was not that successful at Wells Fargo. Employees were yelled at and they were not engaged at all. No rewarding hard work no nothing. Company’s goals were unrealistic and performance was managed poorly. All the bad things combined lead to unhappy employees who only tried to survive and ended up loosing their jobs.
CNN 2016. Workers tell Wells Fargo horror stories. URL: http://money.cnn.com/2016/09/09/investing/wells-fargo-phony-accounts-culture/index.html Accessed 11.05.2017
Wikipedia. Wells Fargo. URL: https://en.wikipedia.org/wiki/Wells_Fargo Accessed 11.05.2017
BBC 2016. Wells Fargo boss John Stumpf steps down. URL: http://www.bbc.com/news/business-37639648 Accessed 11.05.2017
BBC 2016. Wells Fargo boss urged to resign over accounts scandal. URL: http://www.bbc.com/news/business-37419968 Accessed 11.05.2017