final lf
Organizational Development and Change
( 1 )
Introduction
The systematic use and sharing of behavioral science knowledge for the aim of establishing, enhancing, and sustaining the strategies, techniques, and attributes that influence an organization's success is known as organization development .Typically, managers initiate and carry out the plan, sometimes with the help of an organizational development professional.
According to the Harvard Business Review, the major probe into Wells Fargo's culture focused on the increasing sales atmosphere, which resulted in personnel springing up millions
of fraudulent identities (Ochs, 2016). Ex staff claimed that they were exposed to a disheartening culture of terror and continuous compulsion by administration, wherein they were pressured to fulfill unachievable revenue goals, some of which were accomplished by illegal means. This paper illustrates the role of organizational development and approaches that can be employed by organizational development practitioners to deal with organizational issues such as those of Wells Fargo.
The Nature of Planned Change (CH 2 P 30)
One of the organizational development approaches includes planning change.
Organizational development is the systematic process of changing an organization in attempt to optimize its entire effectiveness for sole-transformation. A variety of ways may be used to handle domestic ethical concerns at Wells Fargo under the planned modification item. The action research model of planned change can be applied to the Wells Fargo scenario, where initial study on the company will be conducted to offer data to guide future action. After identifying the issue, consultation with a behavioral science specialist may begin. It is at this point that the ODP will communicate his/her values and convictions with the corporation (P 30) in order to foster an interactive and transparent environment. Following that, as an ODP, I
will collect data and do a preliminary diagnosis with the assistance of Wells Fargo personnel and staff. The ODP may collect data in a variety of ways, including by questioning management and staff, such as John Stumpf, the organization's CEO at the time.
In the instance of Wells Fargo, this will include learning about the business's history, as well as any other internal ethical issues that the firm has encountered. Wells Fargo's misleading sales practices are regarded immoral, and the resulting damage to firms' image, workplace morale, compliance expenses, and a broader damage to society's general faith in business, is enormous. Few Corporate leaders intentionally violate the rules in order to achieve competitive advantages, and the majority of businesses have mechanisms in order to prevent misconduct at all ranks. The research will focus on the perilous cultural dimensions within the firm, as well as inadequacies among top executives at Wells Fargo. According to Ochs (2016), there were five years of clear and frequent warnings about Wells Fargo's fraud, but the senior management and directors took an unusually long time to recognize the scope and seriousness of the fraud and to confront it decisively.
The Organizational Developmental Practitioner (CH 3 P52)
As an organizational development practitioner, there are specific responsibilities, characteristics, and abilities that I should possess in order to enable the successful implementation of planned change at Wells Fargo. Ethical behavior is critical to an organization's success, and Wells Fargo executives demonstrated the importance they put on ethical behavior. The ODP's duty is to elicit complicated and confusing facts in order to make educated judgments regarding its applicability to Wells Fargo's internal ethical concern.
Knowledge about the problem under examination and the necessary changes is critical for organizational growth.
Entering and Contracting (CH 4 P82)
As the ODP, I will be expected to grasp many fundamental skills regarding Wells Fargo, including organizational design (structural systems, incentive systems, personnel management, sociopolitical, and workplace structure), system dynamics, and the firm's history of growth and transformation (societal, geopolitical, financial, and personal forces). As previously mentioned, an organization's culture is crucial, and it is critical to examine Wells Fargo's comparative cultural viewpoints. According to Forbes, it is an irrefutable reality that an organization's culture has a significant impact on how its people behave, and Wells Fargo neglected this fact, putting the bank at a crossroads .
Diagnosing (CH 5 P101)
Diagnosis is the phase during which the ODP determines the intervention actions necessary to increase an organization's effectiveness. It is a way of obtaining a knowledge of how a system is currently operating. It entails gathering important data about present operations, interpreting that data, and generating inferences about the factors that contribute to recent standing and the possibility for development and reform (Cummings & Worley, 2015). Effective diagnosis generates the structured information about an organization that is required to plan effective solutions. In this instance, pertinent material includes customer damage that occurred over time and the impact of Wells Fargo's culture. The data collection process should involve determining why staff violated customer confidence by acquiring credentials, falsifying identities, and surreptitiously transferring money. Additionally, the goal of diagnosing this problem is to determine why management minimized the situation until it burst and why it was quick to impose punishments on executives and other parties involved until after the first damning Congressional inquiry and months of public protest. Thus, were there workers who
attempted to raise concerns about Wells Fargo's threatening atmosphere and unethical behaviors, and how did the business respond to them? These kinds of inquiries will aid in the diagnosis phase by facilitating the collection, analysis, and dissemination of diagnostic data.
Collecting, Analyzing, and Feeding Back Diagnostic Information (CH 6 P 117)
Organizational development is contingent upon the collection of diagnostic data that will be presented to the client in order to mutually analyze the organization's performance and choose the most effective change intervention. As a result, the quality of data collected and the efficacy of the feedback mechanism are key components of the organizational growth cycle.
After assessing the information supplied by the company and connected individuals, providing feedback assists in choosing the most effective change intervention. This will be contingent upon the relevance of the content I obtain from Wells Fargo workers and personnel identifying domestic ethical issues that have impaired the organization's performance and growth. I can, for example, study and determine why eight executives at this organization were sanctioned, as well as their participation in the sales scam. The business was fined up to 185 million
dollars for unethical sales activities, which included the creation of about 3.5 million bogus accounts without client consent. Almost every stakeholder was impacted by this crisis, and obtaining information from a variety of sources, including workers, consumers, and executives, would aid in developing interventions prior to implementing change.
Designing Interventions (CH 7 P169)
Under OD, intervention refers to a series of activities, actions, and events designed to assist an organization in enhancing its quality and productivity . This is a method that will assist Wells Fargo in resolving the domestic quandary and enhancing certain aspects of organizational performance, such as leadership and culture.
Managing Change (CH 8 P 184)
Managing change may be used to solving issues, benefiting from experiences, reinterpreting common beliefs, adjusting to changing environmental conditions, enhancing performance, and promoting potential developments. Organizational culture is a component in organizational growth largely because it has a tremendous influence on how people behave inside an organization. Apart from paying billions of dollars to resolve criminal and civil probes, Wells Fargo would be obliged to dismiss multiple senior executives and restructure its culture. Recognizing and apologizing for wrongdoing is critical to establishing change in this company.
Evaluating and Institutionalizing Organization Development Interventions (CH 9 P 215).
Evaluation and institutionalization are critical steps in managing change and they are based on the interventions. Evaluation includes giving feedback to the clients and organizations involved regarding the interventions’ progress and impact. Given that Wells Fargo is fully aware that the action in which it was engaged was unethical, it should address the problem honestly and not attempt to conceal what occurred in order to maintain credibility. Wells Fargo was required to provide a prompt and public reaction as a means of admitting the situation for the benefit of all stakeholders. People want forgiveness, and remorse is ingrained in our society. Falsehood is not. Following the controversy, the corporation attempted to dodge criticism by running an ad campaign that people saw as inauthentic .This is one way the company demonstrated failure, since it was unable to increase consumer involvement and retention. Additionally, the organization should serve as a catalyst for cultural change.