Case summary: RK had a solution for the challenge faced by retail banks which is to sell money. He suggested that cross-selling should be done. N bank got merged with WF bank and RK became the President and CEO of WF bank. The most important goal according to him was revenue growth and it can be achieved by cross-selling. Bankers were given targets and bonuses for better selling. The bank’s stocks saw a 67% increase from this transformation. This culture however created a lot more pressure on bankers. When problems started to emerge, RK was not the President and JS was the President. When the problem was investigated, rogue bankers were found and hence they were fired. The WF bank was fined by OCC for opening fraud accounts for which WF bank blamed the employees and not the culture. However, the inside story was different as employees told that due to immense pressure all this fraud happened and somehow bank was aware of this. When JS resigned, TS became CEO, and he removed the label of stores from banks and changed the incentive plans. The focus was now customer satisfaction and sales goals were also reduced. However, other scandals did happen in banks that were charging many customers for insurance who were taking car loans. The bank suffered a loss in reputation and ranking. Also, many penalties were charged.
To explain:The way in which employees of new branch learned the culture of WF bank.
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
Gen Combo Looseleaf Management; Connect Access Card
- Assess organizational strategies of paying employees more than the market rate and less than the market rate. Provide one (1) example from the case as support to show which strategy ALDI utilized.arrow_forwardHow will managers ensure that the company's shared values are being practiced up to the staff level in every branches?arrow_forwardDiscuss the following contemporary theories and explain how they are relevant in business management today with examples. • Systems Theory • Contingency Theory • Chaos Theory • Other Theoriesarrow_forward
- What are three ways Netflix’s internal culture positively affects their ability to stay competitiveand deliver cutting-edge content?arrow_forward1) Explain how lack of skills and insecurity participation and empowerment. discourage managers from employing canarrow_forwardWhat are the ways you would like to influence an organization’s culture? How will you go about making a difference?arrow_forward
- Why do you think people describe the hospitality industry in one of the most culturally diverse industries in the world? What should diversity and inclusion mean to hospitality managers/supervisors? How should this shape their practice or personal management philosophy?arrow_forwardIs Netflix true to its actual mission, vision, values, structure and culture?arrow_forwardHow managers use quantitative management these days give example of a manager who is working in an organization?arrow_forward
- Understanding Management (MindTap Course List)ManagementISBN:9781305502215Author:Richard L. Daft, Dorothy MarcicPublisher:Cengage Learning