Wells Fargo Organization Audit - Essay Example

? Wells Fargo Organization Audit Report Table of Contents I. Introduction II. Report ment III. Productivity audit report IV. Recommendations V. Conclusion I) Introduction (Organization, Type of industry, Opening statement) Executive summary of the company Wells Fargo Company is a wide-reaching and diversified company that focuses on a society financial aid, compromising of almost $ 1.3 trillion assessed assets. The company enriches the society with proper banking systems, insurance services, investment ideas, mortgage aide to the society, as well as, commercial business centers that is approximately 9 thousand business stores. The company’s values, visualization, as well as, its mission have supported the company during the irregular financial periods, especially during the immense melancholy along with present financial downturn. The organization has a proven past of success, as well as, techniques on handling the hard times. Transformation management along with the capability to adapt to fresh environment is a fundamental choice for the organization in a period of time. The economic transformation methods have articulated quick transformations to the channels that organizations carryout their business in an economic industry that has a great impact on the multibillion dollar economic organizations. The organization has the responsibility of ensuring that its utmost organization management articulates a proper attention to the external environment that consists of the governmental, as well as legal transformations to the organizational level. Wells Fargo was started in the year 1852, and was initially located in San Francisco at the period of the gold rush. The vital intention of the stagecoach was to transfer gold along with other vital valuables (Abbott, Parker & Peters, 2004). II) General Statement of Results Computation of productivity Measures A. Benefits B. Total Benefits by Type for 2010–2011 C. Percentage of Total Benefits* D. Total Return on Investment E. Distribution of Return on Investment by Benefit Type Cost Operational and Run Savings $43,718,600 43% $28,825,667 $12,395,037 Revenue Collection Increases $58,358,800 57% $28,825,667 $16,430,630 Total Benefits Flow (before expenses) $102,077,400 100% — — Total Return on Investment (Net Present Value)** — — — $28,825,667 The exact personnel cost per employee against the precise productive hours per employee is what brings cost operation, while the exact personnel costs per employee against the sum of the productive hours results to total benefits flow. Lastly, the sum of personnel costs per employee against the sum of the productive hours is equal to total return on investment. Conceptually, Wells Fargo company has faired well in formulating a sense of effectiveness whenever administering the productivity of the company. Although not all the available eight fundamental factors may be functioning properly, there was not much found in the period of the audit that cannot be transformed into the best of the company. The company’s system management approach promotes the importance of educating managers so as, to understand the company’s overall system, with this they realize how certain actions affect the department with other units, and it recognizes both open as well as, closed systems. The closed system entertains self-contained and not concerned with outside influences the supportive subsystems work on acquisitions as well as functions within the company, where the acquisition involves; securing resources, this type of subsystems includes sales as well as marketing divisions, public relations units. III) Analysis of the organization productivity audit a) Policy The company has a productivity evaluation mission statement that is provided to all the available employees and is provided with first priority towards proper management in the company. The organization managers are supposed to provide productivity plans and missions that are associated with the company’s immense productivity plan, with the productivity outline formally articulated twice annually. This involves the involvement of all the organization’s employees into a decision making in places that concern their individual job related issues. One of the best practiced policies of the company is the involvement of all the available departments or even the cost centers participation in the productivity transformation, thus involving the company’s power structure that outlines all the duties for the organization’s productivity. This is best practiced by holding all the employees accountable for the productivity efforts towards the company’s achievements. b) Leadership: All the available leaders or supervisors articulate productivity upgrading in an action research system that is associated on teamwork; this is supported with all the leaders provided with a balanced effort from all the work units. Not all leaders work on a system that upholds and exercise work upgrading innovations for various levels of the company’s employees. These leaders promote competition within the organization’s productivity ideas compared to the employee’s personalities (Francis, 2004). This is done by implementing the information gathered from the productivity audits, and mainly upholds the research and formulation from the productivity audits that is presented to them annually. Wells Fargo organization articulates leadership as the act of formulating, sharing, as well as, passing the company’s vision to uphold the world in realizing and embracing its vision. All leaders in the organization are accountable, by sharing the credit along with any blame concerning the company’s failure. The leaders provide other employees with the responsibility and a chance for them to succeed. This can be by obtained from the organization’s mission, that a proper leader inspires a team to obtain confidence within them. The organization leaders do not rely on instruction from the headquarter and the company’s policy manual to make decisions, but take themselves as equal decision maki8ng partners in obtain a team effort achievement of the organization vision. The leaders empower their employees to formulate ideas, then test the ideas and select the best ideas to obtain achievements in the company. The leadership in the wells Fargo Company connects to the employee’s vision by sharing a passion and discipline on the manner to conclude to achieving the company’s vision. Leadership is all about learning from the rest in terms of ideas formulation and testing the ideas without articulating where the ideas come from. c) Objectives All the company’s managers contain precise and accountable productivity objectives, these is because the productivity goals are in consensus with the organizational achievements and purposes. This is articulated by making the employees fully alert of their assignment unit’s productivity goals which are correctly challenging, as well as a, attainable. The company suitably solves issues that may occur by using productivity course of action via a reporting technique that articulates variances from the productivity goal. Wells Fargo enforces its available consumer-oriented policy that applies to gigantic financial organizations. The organization also ensures that its objectives on financial services are understandable, as well as, accurate. This is to uphold a solitary toll-free hotline is available to ensure that the company’s consumers can report possibility of misleading practices. d) Inputs All wells Fargo resources are basically articulated in cost center budgets, with each and every employee’s time input in the company focusing on a full contribution to the organization’s objective inputs. The wells Fargo information system supervises human, as well as, material resource utilization, with the available resources being available in a time system to enable the schedules to be adhered to. The quality of input is articulated in this report as consistent with the quality rated to that of a suitable output, with the organization work unit having control over the organization’s budget formulation. The organization’s job specification is made clear and defined uniquely. The wells Fargo Company is properly established that controls most of the economic industry together with fundamental competitors. This kind of financial industry needs a huge capital, as well As, trust. At the moment, no organization contain a lot of trust on its leadership and employees e) Performance The wells Fargo Company fully trains all the available levels of employees in their job duties that they may be expected to carry out. The standards of the organization’s employees work performance are precise, measurable, as well as, realistic. All the employees in the organization control the resources that may be needed to obtain the achievable performance by the company, with the company’s employee team’s performance measures articulated in every work unit. The company’s productivity is evaluated by resource utilization levels in all the work units, with the performance outlines being the fundamental productivity measure for the work units. The technique of the company is to continuously become a fundamental financial organization, still increasing and adapting to the market. The company formulates this by promoting an ethical lending method while still holding on the competitive advantage. The vital focus for the wells Fargo company is on the leveraging a variation technique in order to work on a huge customer demands in a proper relationship bond. f) Technology The company’s productivity improvement data justifies the expenses of the fresh technology, with scheduling of the machine use being articulated to the maximum for the concern of the productivity. The work units are completely accountable for their individual equipment expense, as well as, utilization. The company’s long-term considerations do not override the company’s short-range advantages. The wells Fargo company technology is the up to date available, providing budgetary constraints, this technology increases the productivity used by the company’s employees at all times. The technology in the company is becoming a vital issue in the economic industry. This gives a great disadvantage to the economic companies. A lot of fresh programs, as well as, internet companies are available to provide an equitable competitive environment to the company’s standpoints. g) Work procedure The product or service quality is maintained as a degree of productivity expansion; with the security together with the safety precautions contain a positive effect on the company’s productivity. The wells Fargo company eliminates any operations that may be time wasting by carrying out quality checks. The company’s employees have the mandate of transforming the work techniques that may contain adverse consequence on the productivity of the company. This is carries out by using a method analysis on the company work units on an annual basis. From a conclusion on the report, the association between the human being and the machine shows arrangement for any increase on productivity. Wells Fargo can meet its strategic plan by ensuring that it contains satisfactory diversification to be able to adhere with the competition. Wells Fargo being an economic organization the single suitable channel to diversify is to give the appropriate service delivery, as well as, value added channels for the company to formulate an appropriate service delivery, it is vital to employ the suitable employees and later give them the appropriate training. Wells Fargo contains a rich history of having the ability to uphold, as well as, control transformation, this is because this skill is fundamental to achieving a diversification plan. There company contain a huge diverse portfolio that can ensure its employees contain excellent relationship with customers, this is by understanding the extra goods and services provided by the company and the manner they can assist the customers. This technique expands the company’s selling chances. h) Staff Wells Fargo Company hires employees with a high productivity awareness and skills. The company’s levels of employees are made to commit themselves along with their actions towards the company’s productivity upgrading. They are also committed with upgrading their knowledge and skills with the current evolution. In cases where the company experiences a good productivity improvement, employees are appropriately rewarded for the achievement but justified by the data evaluated. The wells Fargo communication system openly upholds and recognizes productivity improvement workforce. The company’s staff are fully available in cases there is an occurrence of turnover to be able to maintain the productivity level of the company. This is made easier by appropriately training the company’s supervisors and managers so as to continuously train the junior staff to ensure that there is an expanded productivity skill, as well as, capabilities in the company (Becker, DeFond, Jiambalvo & Subramanyam, 1998). IV) Recommendations Market research is an essential business study that is relevant in configuring which part of the population will likely purchase a product, launching new products, expanding into new markets and increasing the value of the products. Wells Fargo Company has a wanting marketing effort. This can be identified through the way in which the stores seem to cater for the local community amongst other clients. These marketing efforts are thus wanting and call for enhancement for them to stand a better ground over the other competitors. This can be equitably achieved through reliance on better and sophisticated marketing efforts. This will involve the use of radio commercials, neighbor fliers, internet websites and newspaper advertisements to market her stores. Wells Fargo Company should choose on the most convenient method that can reach a large part of the consumers (Carcello & Neal, 2000). Competitive intelligence can be defines as the data that is gathered and used by companies for the ultimate purpose of learning about the competition in a given marketing environment. This is one amongst the many inputs that can be enforced in creating a market share forecast. The forecast will determine how much inventory that the company would need bearing in mind most of the goods in the stores are perishable. This is thus a process that involves gathering, analyzing and applying these forms of vital customer information for the planning of the long term and short term needs of the company. V) Value Facet Analysis for Wells Fargo Company For wells Fargo company to increase the value over time, it is vital to evaluate the short-term success of the company together with the long-term success to be able to conclude on the productivity of the company. The driving force that should encourage this company should be for the reason of risk management versus the time horizon. Having a high number of workers in this company justifies the need to have the captive insurance. We all understand the essence of knowing what risks we are exposed to. The captive creates a ground to cover other losses that may not be covered by the regular insurers. They present a cover that goes beyond the typical commercial liabilities. Using a captive presents the company with the opportunity to pay out a lesser amount as compared to the claims. In such a case, this means that the company will start returning the surplus amounts to the business owner. This can be paid in form of dividends that would be taxed at lower rates as compared to income. This move will thus provide this company with a chance to set aside funds. This will prevent the company from being taxed personally but it will instead have operational benefits. Tax savings should also be a steering forces to this company embracing captive insurance (Ireland, Hoskisson & Hitt, 2009). Long term benefits of Value Driven Management: The more business clients are attracted the larger the business grows, and the higher cash flows it experiences. This is an essential component, as the business will encounter heights of success. The business image is built and makes it phenomenon something that will be instrumental in overcoming their competitors. Customer loyalty is won thus a repeat of purchase of behavior. The business premise will eventually meet its main objectives. This has been made like a part of selling though it causes a negative feeling to the client in the end. This may eventually drive them away. In case one is completely honest, they can make follow up calls to their clients something that will breed trust and belief in them by the clients. In some cases, they use some words that are confusing to the client. VI) Conclusion Managing involves five functions planning, organizing, staffing, lending as well as making decisions on how to come up with suitable implementation actions and reorganizing decisions as well as, actions by making healthful changes. Companies effectively sub divide organizations into various departments that work as processes this can be done by structuring chains of company’s authority as well as, responsibilities, and with this can facilitate successful performance of employees within the departments to attain company’s goals. Antitrust policy involves government methods of preventing the acquisition and administering of the monopoly power by promoting competition in the market space. The acts that got enacted in the antitrust policy may be purposely meant to avoid mergers that decreased the number of companies in a single industry. Mergers can be connected with antitrust regulators due to companies’ way of bulging price fixing charges by merging into one firm. The merger could have promoted better management and come up with economies of scale that could decrease costs and improve the quality of the output. These mergers out do other acquisitions where the merging partners have no evident correlation (Bazerman, Loewenstein & Moore, 2002). Free Will can be termed as a philosophical sculpture in which a certain nature of competence to select a track of accomplishment from in the midst of a variety of chances, while on a minimalist view; free will is the ability to choose a course of action as a means of completing some desire. The idea behind free will can be extremely associated to the perception of ethical accountability. This can be demonstrated by acting with a free will to gratify the metaphysical obligation on individual accountable for an employee action. This perception portrays to associate with the result on desolate tract for employee achievements on the self-sufficiency, as well as, the self-esteem of persons and the value one accords to feel affection for a good relationship in the working area. There are principles of management, which include unity of command, meaning an employee should be responsible to superior; unity of direction, that means group of activities have a crucial single goal and be combined in a department; centralization of control as well as, decision making; stability of life tenure of employees personnel, implying employee turnover should be minimum. There are managers who has responsibilities is to increase the effectiveness of the employees through motivational methods, an example, empowerment as well as participation in decision making and redesigning task jobs to carry out individuals strengths as well as, weaknesses. One can exerts guidance control over the actions made as far as they proceed from weakly reasons, responsive mechanism from these actions while can control volition or have a number of choices simply in virtue of its being theirs. While there may be causal influences upon various choices, the reasons being to provide an autonomous, non-causal form of explanation, provided the choices available are not wholly determined by prior factors, it is free and under one’s control simply in virtue (Zeff, 2003). References Abbott L. J, Parker S, Peters G. F. (2004). Audit committee characteristics and Restatements. Auditing: A Journal of Practice & Theory 23 (1): 69-87. Bazerman M. H, Loewenstein G, Moore D. A. (2002). Ambiguity in accounting and Auditing. Harvard Business Review 80 (11): 97-102.  Becker C. L, DeFond M. L, Jiambalvo J, Subramanyam K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research 15 (1): 1-24. Carcello J. V, Neal T. L. (2000). Audit committee composition and auditor reporting. The Accounting Review 75 (4): 453-467.  Francis J. (2004). What do we know about audit quality? The British Accounting Review 36 (4): 345-368. Zeff S. (2003). How the U.S. accounting profession got where it is today: Part II. Accounting Horizons 17 (4): 267-286. Read More