mget term 1-2

Management Term 3

Name

Institution Affiliations

Professor

Date

Wells Fargo & Company (domestic ethical issues) Intervention to Create and Sustain a highly Ethically run Organization Including Motivations within this Ethical Structures

Introduction

Organizations aim at providing essential goods and services to their customers alongside employment opportunities. The organizations also ensure a conducive working environment for their employees. Wells Fargo and company is one of the organizations that have been in public for violating the employees' rights by engaging them in strict working conditions. The employees were forced to create accounts in their customers' names without their Knowledge. This made the company suffer significant losses due to the fines imposed on the company. Wells Fargo and the company also face poor leadership. To clear their name, the company has embarked on redesigning its infrastructure, conducting an internal review and regulatory review, and incentive programs that would help the employees work ethically to meet the company's needs rather than meeting selfish needs. To have a successful organization, it is essential to have an OD plan which improves an organization's level of performance in terms of the structures, the people involved (members of the Organization and customers), incentives in place, and the management processes. The discussion below focuses on how Wells Fargo and the company can apply the OD measures to solve its domestic ethical issues.

Identify and State the issue of the case, Choice of

Applicable Planned Change Model (23) CH 2 – This model monitor planned Change. The model provided the framework for understanding organizational change. The model also addressed two issues; forces aimed at maintaining the state of the Organization and the other party that is advocating for Change. The model had seven steps that an organization goes through to achieve successful Change: scouting, entry, diagnosis, planning, action, stabilization, and evaluation (p 22). Wells Fargo and the company should have a clear framework of what organizational Change entails and should mobilize its members to embrace Change. This would convince the workers to work positively, considering the ethical principles.

Degree of Organization (Over vs. Under –organized) (34) CH 2 entails under–managed and over-organized situations. The over-organized conditions are characterized by rigid leadership styles, rigid job designs, organizational structures, and policies. Wells Fargo and company is a true replica of this kind of management situation, where the employees are under pressure to work by engaging in unethical principles, that is, opening bank accounts with customers' names without their consent while the organizational leaders are for selfish ambitions This is aimed at meeting the set target by the Organization and to earn more bonuses. There should be a change in leadership, job design, and organizational structures here (p 34).

Self-knowledge and Skills Necessary (49) CH 3 – The necessary Knowledge includes organizational behavior, which entails ethics, leadership, goal setting, and interpersonal relationship, Individual psychology knowledge is responsible for learning theory, motivation and perception theories, Knowledge on group dynamics, management, and Organization Theory, Knowledge on research methods and comparative cultural perspectives (p 49 & 50). The necessary skills include interpersonal and general consultation skills (p 51). Wells Fargo and company managers and employees lacked the skills mentioned earlier. For instance, an organization should portray ethics in its services. The top management violated customers' principles by opening accounts using their credentials without their Knowledge. The company also suffered poor interpersonal skills, which made it undergo a huge organizational breakup. To have an excellent administrative relationship, Wells Fargo and the company should employ managerial leaders with the necessary qualified skills for running an organization.

External vs. Internal Consulting (53) CH 3– External consultants deal with formal documents, rely on repeat business and customer referrals as critical measures of the project, and confine activities within the boundaries of the client organization. On the other hand, internal consultants are concerned with the informal agreement; they rely on repeat business, pay rise, and promotion as critical measures of success and are in charge of running interference for clients across organizational lines to align support (p 53). Wells Fargo and the company should employ the OD principle of hiring external consultants to properly audit the company's financial accountability other than the internal consultants concerned with a pay rise and promotion.

Role of Ethics (62)CH 3 – Ethics enables Organization Development practitioners, teams, and clients to avoid the problems of misinterpretation, misuse of data, coercion, values and goal conflict, and technical ineptness (p 62). Wells Fargo and the company should have OD practitioners and clients who have a clear understanding of organizational ethics to interpret information correctly.

Entering into an OD Relationship (76): CH 4

Clarify the Organizational Issue

Generally, an OD process entails an issue to be addressed, which has to be clarified, the relevant client for the case, and an appropriate OD practitioner. To ensure clarity of an organizational issue, the management should have preliminary data that help provide the rudimentary Knowledge of the administrative subject. The two parties involved can make informed choices about proceeding with the contracting process. Clarification is essential because it ensures subsequent diagnostic and intervention activities are done correctly (page 76). For instance, Wells Fargo and company have one major ethical issue of violating the Customers' rights by opening accounts by using their names without their consent. The OD practitioners must have explicit Knowledge to establish suitable measures and provide the correct findings to find solutions.

Determine the Relevant Client

After outlining the issue, Wells Fargo and the company should select the correct client to address the organizational problem. The client chosen in an OD process should be one who can improve the change issue. Under complex conditions, the OD practitioners must gather additional information concerning the Organization to determine the relevant client (p 77).

Selecting the Practitioner

This is the last activity involved in the OD process. The OD practitioner selected should have the skills and experience to work with team members on the organizational issue. The Wells Cargo and company issue is the creation of accounts without the customer's consent. Therefore, the OD practitioner chosen should be well equipped with the relevant skills, which comprises interpersonal communication skills on how to relate to the other team members in determining the solution to the issue. Among the requirements for an OD practitioner suggested by Lippitt in 1972 include the skills relevant to the case, the ability to form good interpersonal relationships, the contributions of the practitioner to the issue, and lastly, whether the practitioner belongs to a professional association. The practitioner who meets the above qualifications is selected (p 78)

Essentials of Effective OD Proposal (78) CH 4

Objectives – These are the goals to be achieved by the Organization engaging in the OD process. They should be clear, concise, and measurable (p 78). Wells Fargo and the company should clearly state the objectives in the OD process before beginning the process.

Proposed Action – This is an overview of the process to be used. It entails diagnosis, feedback, and implementation (p 78). The OD practitioners and clients involved in the process for Wells Fargo and the company should have a precise diagnosis of how the unethical practice started, the motivating factors towards the action, give appropriate feedback, and the implementation process.

Roles and Responsibilities – These are the stakeholders involved in the OD process. They are the OD practitioner and their responsibilities (p 78).

Recommended Interventions – The Wells Fargo company OD practitioners, involved should give proposed strategies to ensure the change process is successful. They include training, procedures to be redesigned, and offsite meetings (p 78).

Fee, Terms, & Conditions –These are the total expenses and capital incurred during the process of Change (p 78).

Developing a Contract (79) CH 4

Mutual Expectations – These are the expectations of the relevant client and the OD practitioner. The client clearly outlines the services provided by the OD practitioner and highlights the expectations from the OD process and the consultants. On the other side, the OD practitioner also states his expectations to gain from the OD process. The mutual expectations include desired outcomes such as reduced costs and higher job satisfaction (from the client), trying out new interventions, reporting results to other potential clients, and receiving appropriate recognition (from OD practitioner) (p 81).

Time and Resources – Time involves the set duration for the OD process to be accomplished. The resources are all the materials required to make the OD process successful. To have a successful OD process, there should be adequate time allocated for the process, and the resources to be used should be adequately available (p 81)

Ground Rules – The ground rules determine how the OD practitioner will work with the client. Some of the laid down rules include confidentiality, how the two parties will involve in personal or interpersonal issues, how to terminate the relationship and whether the practitioner should make recommendations or help in decision making (p 82). For instance, in the case of Wells Fargo and the company, high standards of confidentiality should be demonstrated as it deals with people's financial accounts.

Factors Affecting Client Practitioner Dynamics (86) CH 4

Some of the factors affecting Client Practitioner Dynamics include misunderstanding, motivation, dependency, trust, and disengagement. At times, the practitioner may be untrustworthy, causing drawbacks in the OD change process (p 86). A practitioner may demand reasonable client requests, thus challenging the client lowering the client's motivation. The practitioners are expected to engage in interview sessions when psychologically settled such that they do not engage in emotional issues (p 87). Wells Fargo and the company clearly show a lack of understanding between the leaders and employees. The leadership structure is very rigid, thereby demotivating the employees. The company should demonstrate good leadership skills to increase employees' morale to prevent this.

Open System Models in Diagnosing Organizational Systems (95) CH 5

The open system model shows that organizations exist in a larger environment, affecting how they perform and interact. The model also indicates that the Organization acquires inputs, including information and energy. The inputs are transformed with the help of social and technical processes. Outputs (finished goods, services, and ideas) from the transformation processes are returned to the environment. Impacts of outcomes are regarded as feedback (p 92).

The cycle of Data Collection and Feedback (124) CH 6

The data collection and feedback cycle entail establishing a diagnostic relationship and planning, collecting, analyzing, feedback, and following up and action planning (Nadler, 1977). The OD practitioners involved in Wells Fargo and the company should clarify who they are, why they are collecting the data, what the data gathering will apply, and how they will be used. The concept of who they are introduces the OD to the organization members, particularly those who do not know the consultant. Why they are there are the goals they aim to achieve through the diagnosis and data gathering activities. The data gathering will involve the methods of data collection used during the process (p 124).

Data Collection Methods (126) CH 6

Questionnaires – Contains fixed response questions about various features of an organization. They can be administered to prominent people simultaneously and are easy to analyze. These features make it one of research organizations' most efficient data collection methods (p 127). Regarding Wells Fargo and the company, the questionnaires will apply to both the leaders of the Organization and the employees.

Interviews – Interviews can be individual or group interviews. It is the most widely used method of data collection in OD. The group interviews save time, allow people to build on others' responses, and enhance leadership skills. Generally, interviews enable interviewers to pose direct questions to the interviewees and clarify main issues (p 129). The OD directors will interview the top management first and later the employees.

Observations – This type of data collection is more direct. In OD, the practitioner observes organizational behaviors in the work areas or by taking note of some occurrences of certain behaviors. This data collection method does not suffer from bias; it is adaptive and involves real-time data. It also has some disadvantages such as time-consuming, misinterpretation of behaviors, and an expensive data collection method since the practitioner has to travel to the Organization under observation (p 130). For instance, using the case at hand, the body in charge, the clients, and practitioners may visit the company and observe how the work is done and conclude.

Unobtrusive Measures – This data collection method does not involve direct interaction with the respondents but secondary resources such as records and archives. In organizations, obscure data include absenteeism records, grievances, quantity, quality of services, financial performance, suppliers, and governmental agencies. Its advantages include providing a relatively objective view of the organizational functioning, free from bias. Its disadvantage is that drawing valid conclusions can be challenging (p 131).

Sampling Considerations (132)

Population – The number of people used for sampling in an OD should represent the characteristics of the total population (p 132). The OD practitioners involved for Wells Fargo and the company should consider taking samples from both employees and the leaders and not depending on the leaders alone in their investigations.

Sample Selection (random) – Here, each member's behavior or record has an equal chance of being selected (p 132).

Stratified Sample (mutually exclusive) – This is a sampling method used when the population is complex or where several subgroups are required to be represented in the Sample (p 132).

Force-Field Analysis (135) CH 6

Force–field analysis is a method of analyzing qualitative data in OD. It is derived from Lewin's three-step change model (Lewin, 1951). The technique focuses on two events; the forces for Change such as new technology, better raw materials, competition from other groups, and supervisor pressures. The other event is the forces resisting the Change, such as group performance norms, fear of Change, complacency, and well-learned skills. From the analysis, two full details are focused on high performance. The forces are pressures from the group's supervisor and competition from other workgroups that perform the same work. The other two forces suppress them from the opposing side. From the suggestion, the troops for Change should be applied to Wells Fargo and the company to improve leadership and the quality of services rendered to the customers. Having these changes in place will imply the acquisition of new skills by the members, thus resulting in Organizational Change (134).

Possible Effects of Feedback (143) CH 6

Relevancy -The feedback received from the OD practitioners should be relevant in that it shows some progress and a change from the company's current state (p 143).

Understandable – This is a kind of feedback that can be easily interpreted by organization members (p 143). The company members should easily understand the response from the organization practitioners with ease. The language should be simple to understand.

Verifiable – This a valid and accurate data (p 143)

Descriptive - Descriptive feedback is the kind of feedback linked to fundamental organizational behaviors (p 143).

Timely – Timely feedback entails feedback circulated back to members after collection and analysis (p 143). This is done to ascertain whether the recorded information is accurate and matches people's views.

Process for Feedback (144) CH 6

It is majorly concerned with the process by which information is fed back. OD practitioners need to manage the feedback process carefully to ensure that constructive discussion and ownership of data by members of the Organization are achieved (p 144). A proper and successful feedback process motivates members of an organization to work positively with the data provided by the feedback. According to Mohman (1983), process feedback has five characteristics: motivation to work with the data, which implies that members of the Organization need to be motivated by the feedback data. Secondly is the structure for the meeting, where the meeting should have a leader who gives the outline for the meeting. There should be appropriate attendance for the feedback meeting. Appropriate powers in the sense that members should know where to make changes and adjustments and when to give recommendations should be included in the feedback meeting (Pffer, 1982). The above features of successful feedback meetings and adequate data enhance member ownership when effectively utilized (page 145).

6-6cLimitations of Survey Feedback (152) CH 6

According to Conlon & Short (1983), the limitations for survey feedback are;

· Ambiguity of purpose

· Distrust

· Unacceptable topics

· Organizational disturbance

Organizational Issues (171 & Table 7.2-174) CH 7

Strategic - Here, the Organization should decide on the products they provide, the markets they serve, and their relationship with their surrounding (p 170).

Technological and Structural - These are how the work is divided into departments related to each other (p 170). To have an effective organization, the company should delegate appropriately considering the employee's qualifications before assigning the roles.

Human Resource - It entails skilled personnel in the Organization. An organization should be equipped with experienced professionals who are also ambitious and ensure they (Organization) develops such people's careers through training and education (p 170). The company should hire skilled and experienced personnel in handling financial matters.

Human Process - human process issues include proper communication, decision-making, and leadership. Wells Fargo and company portrayed a lack of adequate communication skills, poor decision-making, and leadership skills, resulting in unethical organizational practice. The company should embrace excellent and effective communication and good leadership skills to facilitate effective Organization Development Interventions (p 170).

Effective Change Management (180- Figure 8.1) CH 8

Motivating Change – Nadler (1987) argues that creating readiness for change and overcoming resistance to change are the two related tasks that require attention in inspiring Organizational Change. This implies that people's enthusiasm for Change depends on creating a felt need and taking care of the resistance generated by change processes in an organization (p 181 & 183). The motivation was lacking in Wells Fargo and the company's previous state before the OD process in that the leadership system was too rigid with unethical motivation forms. Therefore, the company should motivate the change process to have a successful organization in the future.

Creating a Vision- This involves creating a clear picture of what the organization should look like. A vision describes the core values and purpose that guides and provide direction for designing, implementing, and assessing organizational changes (p 184). The evidence unwrapped by various information sources shows that Wells Fargo and company violated their vision and was working to fulfill their selfish goals. Having undergone the OD process, this company should have a better vision and work toward it to achieve the Organization's set objectives.

Developing Political Support- It is one of the most recent additions to OD to manage the political dynamics of organizational change. It asserts that OD agents can build their power base to gain access to other power holders. Without such access, those involved in decision-making may not look at change management from an OD perspective (p 188 & 191). To have effective change management, Wells Fargo and the company should seek political support to show evidence of commitment and transparency.

Managing the Transition- Involves moving from an existing old state to the desired plan and requires a transition period which the Organization uses to implement the needed conditions. It requires unique management structures and activities like; activity planning, commitment planning, and change management structures (p 193). From the OD process, Wells Fargo and the company should embrace new activities such as commitment as proposed in the change process. This would enable the company to move to excel in various activities.

Sustaining Momentum refers to the energy and focuses needed during the organizational change process from start to completion. This requires providing resources for Change, putting up a support system for change agents, developing new skills and behaviors, and staying in the course (p 199 & 200).

Behavioral Outcomes to Measure Interventions (213- Table 9.1) CH 9

Behavioral outcomes to measure interventions in table 9.1 include absenteeism, tardiness, turnover, internal employment stability, strikes and work stoppages, accidents and work-related illness, written grievances in line with the labor-management contract, productivity, production quality, and inventory material (p 213).

Institutionalizing Framework (222- Figure 9.2) CH 9

Organization Characteristics - Organization characteristics influence intervention characteristics. It has three dimensions: unity, environmental and technological stability, and unionization (Stewart, 1996).

Intervention Characteristics – Intervention characteristics have the five features of OD intervention characteristics: programmability, goal specificity, the level of change target, internal support, and sponsorship. The intervention goals should be specific and not broad. Specificity helps channel given activities such as training to the particular group in charge of particular tasks in the intervention process. The internal Organization Development team provides internal support. It helps the members of the Organization to implement the change process. External practitioners can also help internal support during the early stages of Change by bringing external experts to assist in the change process. People of high ranks in other organizations do take the sponsorship roles. They are expected to have the power to drive the interventions and ensure the Change made remains firm (p 222).

Institutionalizing Process – Five institutionalizing processes affect Organization Interventions institutionalization. Socialization, commitment, reward allocation, diffusion, and sensing and calibration (p 225). Each process influences Organization Intervention institutionalization differently.

Indicators of Institutionalization – Indicators of institutionalization are the extent or the level of institutionalization. They include Knowledge, which shows the time to which members of the Organization portray the skills and behaviors associated with interventions. Performance is the level at which the organization members demonstrate intervention behaviors through engaging in various intervention activities. Other indicators of institutionalization are normative consensus, preferences, and value consensus (p 226).

References

Mohman, S., Cummings, T., & Laler III , e., (1983). “Creating useful knowledge with organizations: relationship on process issues," in producing useful KnowledgeKnowledge for organizations.

Nadler, D., (1977), Feedback and organization development: Using data-based Methods

Lein, K., (1951) Field theory in social science. New York: Harper & Row

Conlon, F., & Short, L., (1983): 225-29. "An empirical examination of survey feedback as an Organizational change device." Academy of management proceedings

Nadler, D., (1987): 358-69. "The effective management of change," in Handbook of Organizational behavior.

Bennis, W., (1966) "Organization development theory: A typology and evaluation," in Research in Organizational Change and development

Pfeffer, J., (1982) Power in organizations. New York: Pitman

Stewart, T., (1996, July 8): 145- 47. Company values that add value. San Francisco: Jossey- Bass

Lippit, G., (1972): 10-15. "Criteria for selecting, evaluating and developing consultants," training and development Journal

Chapters one to nine