Cultural Diversity Improvement Needs inside Wells Fargo
Managing diversity is an important process in policies, practices and systems of an organization as diversity of the workforce presupposes more opportunities and challenges. As a result, it is necessary to manage people in such a way that it is possible to work effectively that is why a diversity management is a must for any organization. Diversity phenomenon is a current trend in the business world and there is a necessity to create and implement such a strategic initiative in the organization. Managing diversity is aimed at creating favorable conditions for employees and their adaptation, minimizing conflicts in the process of putting the policy into practice.
Wells Fargo is the banking company that provides investing services and financial solutions in the USA and Canada. Wells Fargo was chosen for the analysis of cultural diversity as this company has always been a leader in diversity. Wells Fargo is known for its commitment to providing equality among employees. However, even such company as Wells Fargo needs cultural diversity improvement.
The policy of Wells Fargo is to create equal opportunities for all employees, and enhance efficiency and effectiveness. It means that diversity management of this company should be based on strategic business objectives as they increase organizational capacity and contribute to employees’ performance. Wells Fargo intends to build a high-performing and diverse workforce that will be based on mutual understanding, trust and acceptance. Without doubt, diversity management of this company should be constantly improved and adapted to the employees, regardless of religion, disability, age, race, gender, national origin and sexual orientation.
Thus, this research paper will discuss reasonable recommendations for the company with respect to the situation, as well as evaluate some pros and cons of a diversity-transition process in order to prevent possible occurrence of such situations in future.
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For analysis of a case study of Wells Fargo, it is necessary to reveal the notions of “diversity”, “diversity management” and “equal opportunity”. Diversity in the workplace is a principle grounded on employees’ differences and similarities, which contribute to the company’s success. Diversity management is a set of organizational culture rules that is created to manage employees’ feelings, attitudes, and motivation and enable them to deal effectively with all co-workers, regardless of their status. Equal opportunities suggest fair treatment towards all employees with no exceptions aimed at anti-discrimination culture at work, based on legal norms and regulations and intra-company policies.
Socialization of employees, global communication strategies, use of technology, decision-making, conflict management and dealing with emotions at an organizational level are the main components of the diverse working environment of Wells Fargo. Diversity presupposes many aspects such as race, gender, age and ethnic characteristics, as well as physical and mental abilities. It has been proved that diversity is a competitive advantage and strength that is why the main task is to apply it in a proper way. Similarities and differences in organization’s employees bring changes in the communication strategies and management.
Wells Fargo has been committed to diversity since 1852 and continues their diversity management today. It means that this company knows all advantages and disadvantages of a diverse environment. For Wells Fargo diversity is a proud tradition that has been maintained for more than 160 years. This tradition is accompanied by retaining and hiring diverse employees. “Diversity Woman reached Paschall at Wells Fargo, where she just had signed on as executive vice president of enterprise diversity and inclusion” (Rigoglioso, 2013).
Speaking about diversity in the working environment of Wells Fargo, it is necessary to say that it is an important aspect of any organization. As a result, one should attract more and more foreigners in this organization as this increases productivity and efficiency of business. In order to avoid conflicts concerning diversity in Wells Fargo, first of all it is necessary to support and encourage diverse employees as diversity should be a part of the policy. A “diversity-blind” approach provokes conflicts and discrimination among employees and this leads to a bad reputation of an organization. “We strive to attract, develop, retain and motivate the most talented people we can find, people who care and who work together as partners across business units and functions” (Stumpf, 2012, p. 6 ).
With diversity as a competitive advantage Wells Fargo is becoming a beneficial workplace. Moreover, this company understands customers' needs, delivers more value to stockholders and provides qualitative services. Wells Fargo should follow a “diversity-conscious” approach and ensure equal and creative opportunities to diverse population, involving Indigenous peoples, immigrants, and mature-age and aging workers, etc. Thus, this approach in the organizational performance is widely spread throughout the country. “The management may use the best practices as good examples to follow” (Babalola & Marques, 2013). Wells Fargo should encourage diversity in many ways. First of all, they should implement diversity performance management standards. Secondly, it is necessary to develop anti-harassment procedures. One should include diversity management goals and focus on employee staff and management. It is evident that Wells Fargo should support diversity as it will be more successful and proficient.
Table 1. Statistics of Diversity in Wells Fargo in 2014 (Wells Fargo, n.d.)
|Team Member Roles||% Women||% Minority|
Officers and Managers
Statistics of Diversity in Wells Fargo in 2014 (Table 1) proves that Wells Fargo provides practically equal opportunities for both men and women and minority groups. Besides, it means there is no discrimination in this company. Business strategies of Wells Fargo open career opportunities for people with disabilities, women, Asian-American, Latino, Lesbian, African-American, Transgender, Bisexual and Gay communities (Wells Fargo, n.d.).
Wells Fargo was the first company that helped Mexican nationals to reduce risks with a cash economy and opened the Matricula card. “Wells Fargo team members should expect to work in an environment where each person feels valued for their culture, skills and talents and to know they can fulfill their career goals and help our company succeed” (Wells Fargo, n.d.).
Nobody denies the fact that diversity benefits Wells Fargo. It is morally correct as it creates equal opportunities for every employee. Moreover, diversity makes an economic sense. A diverse workforce drives the economic growth and may capture a larger consumer market share. The multigenerational workplace creates a sense of security for their stakeholders, customers, and employees and that is why Wells Fargo should use this aspect for future perspectives (Wells Fargo, n.d.).
Diversity creates an image of socially responsible company. Hence, it gains more trust and loyalty from its consumers and gets more revenues as a result. Hiring different candidates contributes to the overall professionalism of personnel. This aspect is also vital in the contemporary business world. Particularly, in case the organization follows the inclusive diversity direction in its recruitment and selection operations, it will create a positive employer’s image for oneself as compared to its competitors. Furthermore, such policies will ensure the lower turnover rates and costs. Employees stay with a reliable and vivid employer rather than search for uncertain perspectives from other companies (Embrick, 2011).
Wells Fargo can use diversity with many benefits. Diversity encourages a more innovative and creative workforce. Practicing diversity strategies, as it has been previously indicated, is a way of adapting to the current business emerging trends to be beyond competition within the economic market even in the global scope. Wells Fargo has to take an employee-centered approach to some extent, demonstrating its “respect for differences, flexibility, and orientation toward people vs. tasks, and equifinality” within its structure (Doherty, Fink, Inglis, & Pastore, 2010, p. 368).
In any case, proper implementation of a diversity principle in the organizational process brings numerous benefits to Intel. Diversity management is more complex. It is rather a cultural system that manages employees’ feelings and enables them to deal effectively with others.
Implementing diversity management aspects in Wells Fargo one should take into consideration disadvantages of diversity. Diversity advantages are similar for all organizations in all dimensions: racial diversity may affect performance in the same way as that of gender or age. Specifically, if to consider the given example, the diversity approach applied to the international IT worker will be overall since neither one’s gender, age, race, or other features matter. The major concern to be addressed and minimized will be a possible language barrier and adaptation to the new cultural conditions, as well as the team’s adaptation to a person from a different cultural background. It is evident that these disadvantages can provoke conflicts and that is why it is necessary to do the best in order to mitigate disadvantages and underline strengths of diversity (Babalola & Marques, 2013).
The whole organizational policies ought to be renewed following the principle of “fairness, opportunity, and racial and gender equality in big business” (Embrick, 2011, p. 544). Whereas the USA is a host country for numerous multinational corporations which possess the diverse workforce, making a working environment that utilizes and values the contribution of staff and its members from various backgrounds and experiences is to be maintained as a prime priority for the company.
The main purpose of diversity management in Wells Fargo is to create a friendly atmosphere in a diverse working environment. In order to get all staff, either current or new ones, acquainted with each other, learn their working capabilities, and share knowledge about the intra-company culture, the mini-training may be arranged. In addition, meetings, holidays, trainings and other activities for overall personnel should be constantly held to make all employees feel as integral and equal part of the company.
Other aspects that should be implemented in Wells Fargo are global communication strategies. Wells Fargo is a global business that is why it is a vital aspect for its activity. Well Fargo promotes diversity that is why conflict situations occur very often here. Therefore, a diverse manager may provide own considerations concerning the issue to be implemented or at least refined on the worldwide.
Decision-making is the most important way of solving any problem and it concerns diversity in the working environment. For management of Wells Fargo, it is necessary to upgrade its legalization principle. The task is to double-check whether business strategy reflects all national and international laws and regulations regarding employment, labor and human rights spheres.
All organizational policies ought to be renewed following the racial and gender equality principle in big business. Wells Fargo should create equal opportunities in the working environment and it is one of the major priorities of this organization. Decision-making in diversity management should be respectful, flexible and tolerant. In order to put this in practice, one should conduct trainings regarding the new modified strategies and promote socially responsible actions (Stumpf, 2012, p. 3).
Diversity management has to monitor the process constantly via anonymous testing, for example, trace how the staff perceives innovations, what gaps or misunderstandings have occurred, and find immediate ways to address them, etc. Besides, it is necessary to develop self-assessment tools for employees to evaluate possible threats for their performance based on diversity issues and consequently make up suitable solutions. Training is a way to increase performance of the organization and production that is why it should be involved in the organization's management.
For instance, since the “multigenerational workplace offers a sense of security for their stakeholders, customers, and employees” (Hannay & Fretwell, 2011, p. 1), the company poses oneself as socially responsible. Hence, it gains more trust and loyalty from its consumers and gets more revenues as a result. The diversity rule has to be an ethical manner of doing business for everyone to follow whether it is a senior manager or a junior employee who has just become a part of the team. This principle is not needed to be adhered to avoid possible legal issues as a result of discrimination events at the workplace.
A schedule of trainings regarding the new modified strategies focused on “promoting socially responsible actions” (Fujimoto, Hartel, & Azmat 2013, p. 148) should be performed. The management is to monitor the process constantly via anonymous testing, for example, trace how the staff perceives innovations, what gaps or misunderstandings have occurred, and find immediate ways to address them, etc.
In order to eliminate any form of discrimination or what is worse bullying at the workplace of Wells Fargo, it is necessary to adopt few critical changes within an organization and transform the organizational culture with respect to the diversity factor. Hence, to ensure the intra-company sustainability relationships among the employees of all levels, and, as a result, prevent any further conflicts and productivity process disruptions, all above-considered aspects have to be taken into account. In order to avoid conflicts in an organization, one should deal with emotions at an organizational level conducting different trainings and seminars. In decision-making, one should be tolerant with diverse employees. Different kinds of monitoring will help to define the atmosphere in Wells Fargo and find the ways of coping with tensions and conflicts.
Hence, to ensure the intra-company sustainability relationships among the employees of all levels, and, as a result, prevent any further conflicts and productivity process disruptions, the management should upgrade its legalization principle. Particularly, their task is to double-check whether their business strategy reflects all diversity and international laws and regulations regarding employment, labor and human rights spheres.
Also, it is necessary to develop self-assessment tools for employees to evaluate possible treats for their performance on the basis of diversity issues and make up suitable solutions as a result. The diversity rule has to be an ethical manner of doing business for everyone to follow whether it is a senior manager or a junior employee who has just become a part of the team. This not needed to be adhered to avoid possible legal issues as a result of discrimination events at the workplace. Wells Fargo should follow a “diversity-conscious” approach and ensure equal and creative opportunities to diverse population, involving Indigenous peoples, immigrants, and mature-age and aging workers.