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Case Study 1

Title: Wells Fargo, Crisis and Scandal

Summary: This summary is about a multinational bank called the Wells Fargo, and how it used

unethical ways to meet the sale goals it had set. It is one of the biggest frauds in the financial

market.Wells Fargo representatives presumably made 3.5 million fake accounts, opening bank

accounts for customers who didn’t even need them to show positive financial gains to meet high-

pressure objectives of the senior management. Controllers and examinations tracked down that

the wrongdoing was undeniably more inescapable and tirelessthan had been figured it out. Hence

the company had to pay huge sums of fines and go through several law suits as there was a lot of

government pressure which in hand lead to increasing in legal regulations for the banking

industry. The company was forced to allow regulators the authority to enforce several actions to

prevent future abuses.

Question 4

Response: The decentralization of management is one of the concepts I see in this case study,

the authority was delegated from the top to the lower levels of management without a proper
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blueprint, only goals were set and there was high pressure for the goals to be achieved. One more

concept I see is Principal Agent problem which is that there was a conflict or priorities between

the managers and the Ceo as the employees carried all the fraud out on behalf of the

management. Socio culture Forces as we can see this concept involves ethics and while reading

the case study we can see that the company has been quite unethical in order to achieve its goals

might have gone against the code of conduct as well.

The scandal occurred due to the way management behaved at the first time as no formal strategic

plans were made just the goals were set out to be followed with anything in hand that would have

acted as a guidance for the employees. I believe the management was at fault, as dual roles were

being played by John Stumpf, as we know that two roles cannot necessarily be interchangeable,

meaning there could be different leadership styles

Question 5

Response: Well I believe the company should carry out proper planning and not only pass down

goals but a proper path that needs to be followed by the employees to achieve certain goals

ethically. Realistic goals should be set, so no fraud can take place while achieving them. Every

plan should be discussed with the entire team so the final plan could be executed in the best

possible way. I believe providing better environment for the employees should be a major part of

this and they should not be forced to carry out any tasks.

Case STUDY 2

Summary: The case signifies the major problem with tipping culture in restaurants which is

identified by Meyer, CEO of Union Square Hospitality. He goes for eliminating the tip structure
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in most of his restaurants. He has noticed that Eliminating tip culture brought the largest negative

impact on employees. Meyer resolved the issues by engaging affected employees in town-hall

talks. Moreover, Meyer also hosts the town halls with customers to explain the importance of fair

wages for all his employees at the restaurant. As a result of eliminating the tip structure in most

of his restaurants. Meyer has been able to increase the pay structure and hire employees with a

purpose to deliver exceptional hospitality. Also, he centers on the relationships between people

and usually focuses on helping people to work more effectively together He constantly uses

feedback from his employees to improve, existing aspects and practices within the organization.

Title: Danny Meyer Leads His Company through the Challenges of Eliminating Tips 

1. What type of change is this: transformational or incremental? Why?

Meyer identified the major problem with tipping culture in restaurants which lead Meyer to

transformational change. According to the case, transformational change was desired to bring

significant shifts to some underlying aspect of the organization in an organizational, such as: tip

structure. For some employees, Transformational change can be invigorating, but also highly

disruptive and stressful for others. Eliminating tip culture brought the largest negative impact on

employees. One of the reason is, employees stuck in front-line positions with no chance to

advance to management without taking significant pay cuts. Meyer resolved the issues by first

involving the affected employees in town-hall talks. Moreover, Meyer also hosted town halls

with customers to explain the importance of fair wages for all his employees at the restaurant. As

a result of eliminating the tip structure in most of his restaurants, Meyer has been able to increase

the pay structure and hire employees with a purpose to deliver exceptional hospitality. Meyer

constantly uses feedback from his employees to improve, existing aspects and practices within

the organization.
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2. What level(s) of change is Meyer aiming for in this case?

Meyer aims at Organization-level change as it affects an entire organizational system or several

of its units. Strategic planning and implementation is perhaps the most common type of

organization level change. Organization may require change at both team and individual levels.

Meyer removed tip structure which results in changes at lower levels. Later on, Meyer also

centers on the relationships between people and usually focuses on helping people to work more

effectively together by considering Group-level change. Team development, or teambuilding, is

one of the most common forms of a team change process.

3. What models are consistent with Meyer’s process for designing and implementing

change?

Meyer adopted Lewin’s model that follows a basic process that accompanies to the routines that

exist in organizational changes. This model helps to replace Regular routines and behaviors that

are needed to be disrupted and describes to introduce a basic pattern of model that seems to fit in

organizations where any change is likely to last for a long period of time. For instance, Meyer’s

organization was stuck with old existing tip culture that was required to be eliminated for fair

hierarchical structure.

Furthermore, changes were introduced in the organization to shift the system to a tip free

structure. Typically, people reacted to a new form of order that caused moments of disorder.

According to the model, managers might provide interventions that would help people adjust to

the new norms of reality they are facing. For that purpose, Meyer held town-hall meetings with

employees and customers, and talk about the changes and troubleshoot. The intent of this phase

is to help them to adjust to the expected change. Finally, Meyer led to the last phase "refreeze" of
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the organization. He reinforced the new norms or practices that should accompany the change in

restaurants. Meyer has been able to increase the pay structure for cooks and address a common

industry shortage. He adjusted the new norms or practices including, hiring employees with a

purpose to deliver exceptional hospitality. Moreover, he used feedback to ensue from his

employees even after the tip structure was eliminated.

Discussion 1

If there is a conflict between two of my employees, first of all I would give a chance to both of

them to speak out what they have to say and will not make a biased decision. Moving on, to

come to a final decision, I would test both the employees, as we all the one who has More

confidence and knowledge. I would surely remind them code of conduct so they don’t forget

about. About the morals and ethics while reporting lies or trying to play around. Furthermore, I

can often improve the quality of the decision-making by involving others in the process as

people they have worked with before will be able to share the employee’s performance,

especially when generating a decision, other people tend to view problems from different

perspectives because they have had different life experiences. This can help generate alternatives

that you might not otherwise have considered. Talking through big decisions with a mentor can

also be beneficial, especially for new managers who are still learning and developing their

expertise; someone with more experience will often be able to suggest more options. Moreover, I

would like to see the history of both employees to see how have they performed throughout time

so I can see clearly that which one could be at fault. I willingly cooperate with both of them to

come up to a solution and cater to their problems. In order to prevent such happenings, I would

make sure that every person individually reports to me an share about the part they have carried

out so it becomes easier or I will appoint someone who they can report to in their free time. This
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will be enough to resolve such matter and I would put forward some guidelines giving some

basic instructions on how the employees can work together.

Discussion 2

I would take action once I come up with a plan to cater this problem before it gets out of control.

Iwill reach out to the employee who is generally having the issue with me, I would clearly want

to know the problems that have existed because of my lacking abilities and allow the employee

to share what he believes is wrong I would try my best to understand his point of view and

consult him for a resolution, in all this process I will remain calm and patient as much as I can

be.On the other hand, I would also take a step and explain the employee a bit about my

communication and working skills and leadership styles and how I like my employees to work

under me. As the complaint considers others in the department as well I would go for a meeting

with them as well and see whether everyone comes to the same conclusion or whether it is one

person, I can do this by voting or ways by a company in meetings. And if everyone agrees to one

thing I will surely be willing to work on this with them as I do not want to ruin my terms with

my boss as it can put my career on a bumpy road. I would take a decision best in my interest and

working on the lack if the employees say so, as I can’t let go of this I have to maintain my

relationship with them as well.

Discussion 3

When I detect any stress I would surely find ways to manage stress in the best possible, first of

all I would consider what is making me upset and the moment I figure it out I will relocate my

attention towards what has to be done and how can I start helping myself. For example, I’ll start
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by figuring out how can the work be done in the easiest way and not bother me, and then I would

break the work into small pieces. Then do one small piece at a time, rather than look at the whole

huge mess. As I finish each piece, the work becomes less overwhelming. Make lists of what I

need to do. This will help me sleep better because my head won’t spin with worry about whether

I can do everything. At the end of the day, I’ll have less to worry about as I can check off the

things I have finished. I will look at the same huge amount of work and realize I can handle it

moving forward I’ll make timelines as they can help with big projects. I would try to look at

things in a much more practical way and let go of impracticalities as they misguide a person.

Furthermore, if I want help handling my stress I would talk to professionals with more

experience than my own to manage work in the best possible manner. Take advices from senior

employees and see how they carry their work out in the given time while handling stress.

Observing my behavior at work and finding better ways to handle stress as I don’t want to ruin

my work in stress.

Discussion 4

I would not accept the request as I believe it is unprofessional because I would keep professional

and personal pages separate. The best way to communicate between professional workers is

through email. CO-Workers do not have a relationship apart from work.Friending someone you

don’t have a relationship with outside of work can lead to a number of problems. If you post a

very personal photo, for example, co-worker might post an inappropriate comment that makes

you feel uncomfortable, harassed or discriminated against. This can make interactions at work

extremely awkward, especially if the situation escalates to a point where H.R. gets involved.

Which in turns creates a mess for both, I would be accountable for my actions and getting
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blamed for such things which I have not even done can damage career opportunities as some

employees do such acts in order to destroy the reputation of others, in hatred or jealousy. The

lower level of management should always be aware of such things as this can be taken very

negative at their own part as well and it can ruin further opportunities for them and create a

certain impression of them to other employees as well ruining the work environment and

relationship between a boss and a employee.

Moreover, I wouldn’t be hesitant to have a talk with the employee. I would have a personal

conversation in my office with the employee to guide him/her that how things are done, and

sending requests on social media isn’t quite a professional way. I will make sure any further

communication should be carried out on email and such incidents don’t happen again. As it is

bad for my reputation as well, and leaving no personal space in my life and such matters travel

up to the higher levels of management in no time.

Works Cited

Admin. "What Is Decentralisation: Meaning, Definition, Example." BYJUS. BYJU'S, 05 Oct.

2020. Web.

David S. Bright, Wright State University Anastasia H. Cortes, Virginia Tech University Eva

Hartmann, University of Richmond K. Praveen Parboteeah, University of Wisconsin-

Whitewater Jon L. Pierce, University of Minnesota-Duluth Monique Reece Amit Shah,

Fr. "OpenStax." OpenStax. Web.

Flitter, Emily. "The Price of Wells Fargo's Fake Account Scandal Grows by $3 Billion." The

New York Times. The New York Times, 21 Feb. 2020. Web.
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Terry, George R., and Stephen G. Franklin. "Principles of Management." Principles of

Management. AITBS, 1997. 81-118. Print.

"The Wells Fargo Banking Scandal - Case Solution." Casehero. 21 Jan. 2021. Web.

Terry, George R., and Stephen G. Franklin. "Principles of Management." Principles of

Management. New Delhi: AITBS, 1997. 21-54. Print.

Megan Moran | Senior Human Resource Specialist New York, Name, Insperity Blog Hi Mysti,

Insperity Blog You’re Welcome, Insperity Blog Hi There, Insperity Blog Thank You for Your

Insight – You Offered Some Great Points for Further Consideration on the Topic of Workplace

Atmosphere. We Appreciate You Sharing with Us. Reply, Insperity Blog Thank You for Your

Thoughtful Feedback! Glad You Enjoyed the Read and Found the Information Helpful. Reply,

Insperity Blog Thank You! Really Appreciate Your Feedback and Glad You Enjoyed the Read ?

Reply, Insperity Blog Thank You, and Insperity Blog Thanks for Your Comment. "Dealing with

Employee Conflict: How to Solve the Problem." Insperity. 01 Sept. 2020. Web. 24 Mar. 2021

Ginsburg, Ken. "Creating a Stress Management Plan." Center for Parent and Teen

Communication. 17 Mar. 2020. Web. 24 Mar. 2021.

"How to Effectively Deal With Employees' Complaints." Bizfilings. Web. 24 Mar. 2021

Debbycarreau. "Never, Ever Friend These 5 Types of Co-workers on Facebook, Instagram-or

Any Social Media Site." CNBC. CNBC, 29 Mar. 2019. Web. 24 Mar. 2021.

Terry, George R., and Stephen G. Franklin. "Principles of Management." Principles of

Management. New Delhi: AITBS, 1997. 21-54. Print.

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