Organizational Corruption And Power By Wells Fargo

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Organizational Corruption and Power
There are many challenges organizations encounter in attempting to increase productivity, satisfy consumers, and remain competitive. Successfully navigating organizational challenges will require leadership knowledge and skills, perseverance, integrity, and use of different types of power among others. The latter, use of different forms of power, if not carefully managed hold severe consequences for organizations, especially if it is used wrongfully whereby involvement in corruption occurs. According to Singh (2009), success or failure of an organization, increase or decrease productivity, motivation or demotivation, is a result of its appropriate or inappropriate use of power.
Today, many organizations are publicized on social media for involvement in corruption, with Wells Fargo, a banking institution, being one of the latest. Wells Fargo, opened since 1852, appeared several times in news media for allegations of corruption practices. Egan (2017) reported that Wells …show more content…

Raven and French, social psychologists, identified five types of power, coercive, reward, legitimate, referent and expert (as cited in Hellebrand, 2017). As it relates to the corruption practices, coercive and reward power were used by Wells Fargo leaders. Coercive power is generated by leaders using pressure or intimidation to get employees to perform. Gabel (2011) notes that coercive power involves application of undesirable stimuli to get compliance. In an organization, these undesirable stimuli may be demotion, lowered wages and salary, and job separation among others. Kent (2016) reported that Julie Miller, former employee of Wells Fargo was intimidated and terminated for not meeting the targeted sales goals established by the leaders of the organization. Clearly, Wells Fargo leaders used coercive power get employees to

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