Managing Diversity in Wells Fargo Bank - Case Study Example

Abstract Workplace diversity is an important management concept used by business organizations with the aim of ensuring that business operations are conducted in a competent as well as competitive manner. This essay is prepared to determine the importance of workplace diversity for business performances and its significance for Wells Fargo to conduct operations effectively. The essay would include background information of Wells Fargo Bank which would enable to ascertain its organizational culture. Moreover, the presence of Well Fargo Bank across the USA would be determined in order to gauge its workplace diversity. The impact of diversity on the company’s productivity and performance would be a key area of discussion which would enable to ascertain the significance of diversity for Well Fargo Bank. Wells Fargo has adopted the principle of diversity as well as inclusion, so that employees are facilitated with the opportunity of fair treatment and equal employment opportunity. The bank with the assistance of diversity as well as inclusion has been able to enhance business performances. Additionally, diversity and inclusion has assisted the bank in performing business operations with better competitiveness and competencies. Diversity practices have also aided the bank in building a better competitive position domestically and internationally. It can be understood why diversity and inclusion is directly associated with organizational performances. Introduction to Wells Fargo Bank Wells Fargo is a United States based bank that also provides financial services and operates on a global context. The bank is headquartered in San Francisco, California. The bank is identified as one of the largest banks in the US with regard to market capitalization as well as assets. The bank operates in 36 countries with over 265,000 employees. The main objective of the bank is to meet the financial requirements of customers, so that they are able to succeed financially. The bank provides various services which include insurance, mortgage, commercial finance, banking, consumer finance and investments. The customers are offered with different services that include online banking, ATMs and mobile banking. The bank is renowned for its outstanding customer service, innovation, as well as quality and diversity. The bank supports homeowners, small businesses and real estate industry among others (1Wells Fargo, 2014). Wells Fargo performs operations with the intention of accomplishing its vision of meeting the financial needs of customers in an effective manner. The bank has developed an efficient organizational culture with the aim of ensuring that business objectives are met successfully. The bank has developed a culture where the employees are motivated to work as a team with appropriate behaviours as well as attitudes. The bank considers attitudes as well as behaviours as core elements of its organizational culture. Employees are required to respect differences, promptly provide feedback to customers, and honour deadlines among others for better customer satisfaction. Respectively, the core-valued elements of the bank are team members, communities, stockholders and customers. Subsequently, the bank, with the intention of building an effective workplace culture has respected human rights in relation to safety and inclusion. The bank has zero tolerance for harassment along with discrimination. Respectively, the management of the banks has developed effective polices relating to diversity as well as inclusion for maintaining a sustainable workplace culture (2Wells Fargo, 2014). The essay intends to explore the importance of workplace diversity for business performances and its significance for Wells Fargo to conduct operations effectively. Presence of Wells Fargo Bank across USA and its Workplace Diversity Location of Wells Fargo Bank Wells Fargo bank has been operating businesses in worldwide market segments providing diversified ranges of financial services in over 9,000 locations. The bank is ranked fourth in the US in terms of market capitalization and assets. Additionally, the bank, with the assistance of quality services and human rights principles has been performing operations effectively. The bank is committed in performing business operations with better integrity as well as ethically. Human rights principles are adopted by the bank in its products, operations, services and employee’s well-being among others. The bank, with the assistance of ethical values and human right principles is able to conduct operations successfully both domestically and internationally by developing effective relationship with customers, communities, team members and suppliers. The bank operates in all 50 US states providing banking services relating to insurance, asset-based lending, commercial real estate, treasury management, foreign exchange and capital finance. The bank also operates in different international locations, which include London, Toronto, Sydney and Hong Kong. The bank has been conducting its business operations in different locations based on the vision of meeting as well as accomplishing the financial needs of global customers (Wells Fargo & Company, 2014). Workplace Diversity at different Branches Wells Fargo performs its business operations on worldwide market segments with the intention of meeting the financial requirements of local, national and international customers. The bank in order to excel in its global business operations has planned to conduct operations as a team. The bank adopted diversity as well as inclusion as core value with the intention of recruiting as well as retaining diverse workforce. Diverse workforce has assisted the bank in meeting the needs of diverse customers effectively. Subsequently, the bank with the aim of attaining sustainable business performance has adopted and promoted diversity in every business segment. Additionally, diversity as well as inclusion is embraced in all the management levels of the bank. The bank, with the aim of maintaining diversity and inclusion in all its branches, has adopted and implemented human rights practices. Human rights practices have assisted in building effective relationship amid employees and senior level managers. Subsequently, the bank implementing human rights practices has ensured in building an efficient workplace environment with zero forbearance for discrimination or employee harassment. Thus, the different branches of the bank implementing human rights practices are able to perform banking operations in a non-discriminate manner. Moreover, the branches, with the assistance of human rights practices are able to build an effective workplace environment where employees conduct operations as a team. In this context, the vision as well as the cultural values of the bank has assisted in embracing workplace diversity in all local, national and international market segments. The bank focuses on providing and ensuring unswerving treatment amid people, social along with economic freedom, environmental stewardship, security as well as well-being of employees in its operations. The areas wherein these human rights practices are needed include development of community, development of community as well as customer relationship, enhancement of cordial relationship with team members and most importantly augmentation of unfaltering commitment (Wells Fargo & Company, 2014; 2Wells Fargo, 2014). Workplace Diversity and Organizational Performance Theoretical Framework Workplace diversity symbolizes differences that exist amid employees owing to various factors that include aspirations, drives along with perceptions. Diversity can be recognized in different areas, which include sex, ethnicity, experiences, educational background, nationality, gender, age, culture, political affiliation, lifestyles and social affiliation and skills among others. Business organizations in order to manage and control workplace diversity are more likely to adopt the approach of diversity management. Diversity management is a procedure of implementing proactive actions with the assistance of which threats in relation to diversity can be minimised. Additionally, diversity management assists business organizations in performing business operations with better opportunities maximizing objectives (Aoun & Gibeily, 2007). Workforce diversity is segregated into social diversity, informational diversity and value diversity. There are different theoretical frameworks for workplace diversity, which business organizations use to manage diversity. Conceptual framework of workplace diversity is used in the most effective manner by business organizations with the intention of ensuring that employees are able to conduct their activities successfully. The framework is segregated into macro dimensions, micro dimensions and practice applications. Macro dimensions are based on different factors that include demographic trends, public policy, legislation and global economy. Micro dimensions are dependent on various factors, which include ‘individual and group aspect of diversity’, ‘culture and communication’, theoretical explanation of intergroup relations’ and ‘interpersonal cross-cultural relations in the workplace’. Practice applications provide different measures based on which workplace diversity can be managed as well as controlled effectively which include ‘diversity management paradigms’ and ‘inclusive workplace model’ among others. Theoretical frameworks provide basis for effective management of workplace diversity (Barak, 2010). Business organizations use workplace diversity theoretical framework with the aim of improving the performance of organisations. The conceptual framework is adopted in a systematic procedure such as assessment of ideas based on which diversity climate is recognized. Accordingly, on identifying diversity climate, appropriate measures are undertaken with the aim of performances of an organization in relation to business growth, brand images and profit margin (Prieto et al., 2009). In the present business scenario, business conditions and operational procedures have changed intensely owing to different factors that include globalization, technology advancements and immigration. Due to globalization, the primary change has occurred in global operations of the companies wherein they are including global workforce, moreover due to technological advancements operational procedures have augmented and have become technology drive. At the same time, owing to immigration, people from different nations are moving to other countries for seeking job benefits and making a living out there. The changes in business conditions are identified to affect the structure as well as dynamics of business organizations. Additionally, the changes are also more likely to influence the working procedures and relationship amid employees and internal stakeholders. In the US, different business organizations have witnessed changes for globalization and development of technologies. Moreover, globalization has facilitated business organizations in conducting their operations in different market segments meeting the needs of diversified customers. Business organizations have adopted diversity as well as inclusion in order to meet the needs of diversified customers and employ talented individuals. Workforce diversity is recognized to play an important role of ensuring that employees are able to conduct their operations innovatively and effectively (Lockwood, 2005). In the present scenario, workplace diversity frameworks are adopted by business organizations in order to ascertain that business operations are performed competitively. Wells Fargo has implemented the strategy for effective management of diversity in the workplace with the aim of integrating business operations with common vision throughout its local, national and international branches. The bank has implemented human rights practices in the workplace with the intention of ensuring that employees are provided with equal employment opportunity, fair treatment, as well as respectful workplaces (Wells Fargo & Company, 2014). Wells Fargo has been adopting conceptual theoretical framework of workplace diversity with the intention of ensuring that business operations are being conducted effectively. The diversity framework of the bank is based on certain diversity principles such as business operations being required to be conducted for better sustainable performances. The bank ensures that diversity principles are clear as well as compelling in relation to demographic reality, customers, communities, suppliers and customers. Subsequently, the bank considers different diversity aspects for devising measures based on which business practices are required to be adopted with the aim of accomplishing inclusion as well as diversity goals. The bank also considers different aspects of diversity, which include gender, race, culture, ethnicity and sex among others (Wells Fargo Advisors, LLC, 2014). Workplace diversity framework plays an important part in ensuring that banking operations are performed in an effective manner. Impact of Diversity on Company Productivity and Performance. Workforce diversity is adopted as an important element of ensuring that business operations are conducted with better competencies and competitiveness. However, managing diverse workforce is seems to be a challenging task owing to the differences in ethnic principles and language acquired by different group of employees. Additionally, workforce diversity is also recognized to be a source of conflict situations amid management and employees. It can be a source of conflict because at times due to cultural difference an employee might inadvertently hurt others feeling in terms of cultural or religion perspective. With regard to conflicts, due to workplace diversity, behavioural issues related conflict might arise and a sense of cultural over dominance might take place wherein a person from self-developed superior culture might neglect other employees belonging to another culture. Additionally, the changes in business conditions as well as management practices in business organizations operating on a global context might face challenges of cultural misunderstanding for diverse workforce, which might adversely affect working environments (Wells Fargo & Company, 2014; Kochan et al., 2003). In the present day context, business organizations have adopted diversity in the workplace with the aim of conducting operations competitively in the worldwide market segments. Business organizations implementing workplace diversity have been facilitated with the opportunity of building effective employee relation, which aid employees in performing activities as a team. Business operations are required to be integrated with the aim of ascertaining that operations are performed for common purposes. Additionally, workplace diversity is determined as an important factor in the present business environment for performing operations with better flexibility as well as adaptability towards changing business scenarios. Contextually, Wells Fargo adopting workplace diversity is able to conduct business operations sustainably. The bank has been able to attract as well as retain talented workforce from diverse culture. Workplace diversity has also facilitated the bank in minimizing costs in relation to low productivity, turnover and absenteeism. Moreover, the bank, with the assistance of diversity as well as inclusion has been able to obtain better market share and also retained customers in a diverse manner. Subsequently, the bank possessing diverse workforce is facilitated with the opportunity of performing business operations with better profit margin and growth prospects (Wells Fargo & Company, 2014; McMohan, 2010; Lockwood, 2005). Wells Fargo implementing diversity as well as inclusion in workplace practices has been able to conduct business operations as a team. Wells Fargo’s team members are able to perform their activities with better openness and positivity. The bank with the provision of diversity as well as inclusion has been performing business operations with innovativeness. The company with the assistance of diversity has been facilitated in building a better competitive position in the market segments of the US and worldwide. The bank with the practice of diversity and inclusion has assisted in developing better interpersonal relationship amid stakeholders across all levels of management. The practice of inclusion and management of diverse workforce by the bank can be seen to assist in enhancing the performances of the employees, which in return benefitted the bank with increased satisfaction of the stakeholders (Wells Fargo & Company, 2014; McMohan, 2010). Wells Fargo, with the assistance of workplace diversity has able to reap the advantages of different ideas, which has further facilitated in meeting the needs of diverse customers in an efficient manner. Moreover, diversity along with inclusion creates better bondage and coordination amid employees. In this context, the employees of the bank with better commitment as well as coordination are able to build trust as well as confidence, so that they are able to perform their activities in a better engaged manner. The bank developing an effective workplace environment is able to delegate responsibility to employees efficiently, so that they are able to perform with greater empowerment as well as independence. The bank is able to ensure that banking operations are conducted in accordance with its objectives as well as its vision (Wells Fargo & Company, 2014; Joshi et al., 2006; Joshi & Jackson, 2003). Diverse organizational culture aids Wells Fargo in ensuring better information flow based on which procedure of decision making is enhanced. The bank with the assistance of diversity as well as inclusion policy has been able to develop a better linkage amid factors that include organizational effectiveness along with organizational diversity. The bank is able to conduct operations in a better socially responsible manner for enhanced satisfaction of stakeholders and communities. The management team of the bank is committed towards effective management of diversity for seeking benefits and ideas of cultures along with other different perspectives that are essential for enhanced business performance in this competitive market scenario (Wells Fargo & Company, 2014; Simons & Rowland, 2011). Conclusion Relationship between the Two Variables; Workplace Diversity and Organizational Performance Globalization, immigration and technology advancement have changed the business scenario dramatically. The most common challenge faced by business organizations is managing workplace diversity. Presently, business organizations have adopted effective measures based on which diversity is managed with the aim of ensuring that business operations are conducted effectively. It has been proven that Wells Fargo operating on a global context offered different banking services that include commercial finance, insurance and mortgage facilities. The bank has adopted diversity as well as inclusion with the aim of ascertaining that employees conduct their activities as a team. Notably, positive linkage can be ascertained between the effective management of workplace diversity and the organizational performance. Apparently, the bank with the assistance of diversity as well as inclusion has been facilitated with the opportunity of ascertaining that banking operations are performed successfully. In this context, diversity as well as inclusion has aided the bank in enhancing its business performances by integrating different ideas and meeting the local customers’ needs efficiently. More specifically to the workplace diversity within the company has facilitated in increased profit margin, strong brand image and steady business growth. References: Aoun, G., & Gibeily, T. (2007). Managing diversity in the workplace. File, 1-10. Barak, M. E. M. (2010). Managing diversity: Toward a globally inclusive workplace. United States of America: SAGE. Joshi, A., Liao, H., & Jackson, S. E. (2006). Cross-level effects of workplace diversity on sales performance and pay. Academy of Management Journal, 49(3), 459-481. Joshi, A., & Jackson, S. E. (2003). Managing workforce diversity to enhance cooperation in organisation. International Handbook of Organizational Teamwork and Cooperative Working, 277-296. Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A., Jehn, K., Leonard, J., Levine, D., & Thomas, D. (2003). The effect of diversity on business performance: Report of the diversity research network. Human Resource Management, 42(1), 3-21. Lockwood, N. R. (2005). Workplace diversity: Leveraging the power of difference for competitive advantage. SHRM Research Quarterly, 1-10. McMohan, A. M. (2010). Does workplace diversity matter? A survey of empirical studies on diversity and firm performance, 2000-09. Journal of Diversity Management, 5(2), 37-48. Prieto, L. C., Phipps, S. T. A., & Osiri, J. K. (2009). Linking workplace diversity to organisational performance: A conceptual framework. Journal of Diversity Management, 4(4), 13-22. Simons, S. M., & Rowland, K. N. (2011). Diversity and its impact on organizational performance: The influence of diversity constructions on expectations and outcomes. Journal of Technology Management & Innovation, 6(3), 172-183. 1Wells Fargo. (2014). Wells Fargo today. Retrieved from https://www08.wellsfargomedia.com/downloads/pdf/about/wellsfargotoday.pdf 2Wells Fargo. (2014). Human rights statement. Retrieved from https://www.wellsfargo.com/about/corporate/human-rights-statement Wells Fargo & Company. (2014). Wells Fargo & Company annual report 2013. Retrieved from https://www08.wellsfargomedia.com/downloads/pdf/invest_relations/2013-annual-report.pdf Wells Fargo Advisors, LLC. (2014). Diversity. Retrieved from https://www.wellsfargoadvisors.com/onboarding/diversity.htm Read More