Managerial Decision Making
Research your chosen company. Find a minimum of one library source, which will support your thesis
in this assignment. Review your assigned weekly lecture and text reading. Select from this reading 3-
5 key concepts, which will also support your thesis. In a two to three page paper, address the
questions below. Your paper should follow APA format including a title and reference page. The two
to three page paper length requirement does NOT include the title page and reference page. Refer to
your classroom area titled South University Policies and Guideline. Using APA Standards in Your
Coursework to ensure you are following the correct format.
Describe some of the key decisions its management has faced within the past year or two. Identify an
ethical issue the organization either faces or has faced in the past. If it has not been resolved, provide
an analysis of how the issue should be addressed. If it has been resolved, critique how the
organization resolved this issue based on the materials you have reviewed on ethical decision
ORGANIZATION PROJECT 2: MANAGERIAL DECISION MAKING 2
Organization Project – 2: Managerial Decision Making
Every business decision has a moral or ethical dimension since it has an effect on the
company’s stakeholders (Robbins & Coulter, 2010). In this paper, some of the main decisions
which the management of Wells Fargo bank has faced over the past 2 years are described in
detail. An ethical issue which this company has faced within the past two years is also
described. An analysis of how the ethical was resolved or should be resolved is provided
basing on the materials reviewed on ethical decision making.
Key managerial decisions in the past 2 years
Over the past 2 years, the top management of Wells Fargo bank has made a number of
key managerial decisions. Firstly, in order to improve sales and revenue for this financial
institution and increase value for shareholders, Well Fargo’s senior executives in the year
2014 put tremendous sales pressure on the company’s staff members. The management also
launched Wells Fargo’s going for gr-eight initiative which pushed the bank’s average client
to have 8 dissimilar accounts. As a result of this initiative, Wells Fargo’s bankers were
pressured to victimize clients or else face consequences such as getting fired for being unable
to achieve sales quotas (Zacks investment research, 2015). Ethical decision making is the
process in which the decision-maker assesses the ethical implications of a given course of
action. In making the managerial decisions, Well Fargo’s top executives certainly did not
assess the ethical implications of their decisions (Hartman, 2011).
Ethical issue that Wells Fargo has faced
ORGANIZATION PROJECT 2: MANAGERIAL DECISION MAKING 3
In the year 2015, an ethical issue that Wells Fargo bank faced was treating its clients
and staff members in an unethical manner. This financial firm was accused of setting
unrealistic and unreasonable sales targets for its workers and encouraging its employees to
adopt fraudulent means to meet the preset quota. Staffs at this corporation assumed deceitful
tactics in achieving the stipulated impractical sales targets, for instance by issuing illicit credit
cards, opening illegal and needless customer accounts, and forging signatures of clients and
charging fees on accounts of clients who are unaware. When they got complaints from
customers pertaining to this matter, Wells Fargo refunded such fees only in part and not in
full, and it then misstated the phone numbers of those clients so that they are not reached for
client satisfaction surveys. Furthermore, the senior managers of this bank did not protect the
bank’s clients from the financial harm when they found out about the violations by their
employees (Zacks investment research, 2015).
This issue has not yet been resolved by Wells Fargo. The case of Wells Fargo bank is
a clear illustration of poor decision making in which the bank’s management made poor
ethical decisions. For this issue to be resolved in an effective manner, it is recommended that
Wells Fargo should reimburse its customers the fraudulent fees which it charged them and
secondly, Wells Fargo should discontinue such unethical and deceitful practices in the future.
Wells Fargo should focus on the best interest of its clients and create an ethical, caring and
supportive environment for its employees and team members. Non-existent or weak
governance structures at Wells Fargo resulted in poor ethical decision-making (Hartman,
2011). As such, Wells Fargo’s management should put in place effective business controls
and oversight at all times. The managers should understand ways of leading ethically
(Robbins & Coulter, 2010). Furthermore, people in this bank should learn ways of resisting to
act in an unethical manner.
ORGANIZATION PROJECT 2: MANAGERIAL DECISION MAKING 4
In conclusion, Wells Fargo’s senior management encountered an unethical issue when
they pressured the employees to achieve impractical and unrealistic sales targets. As a result
of this pressure, the bank’s employees utilized fraudulent tactics to attain the impossible
targets. This ethical issue is yet to be resolved properly. A straightforward and practical
solution is for this bank to pay back its customers the fraudulent fees which it charged them
and cease its fraudulent practices in the future.
ORGANIZATION PROJECT 2: MANAGERIAL DECISION MAKING 5
Hartman, L. P. (2011). Business ethics: decision making for personal integrity and social
responsibility. New York, NY: McGraw-Hill/Irwin.
Robbins, S., & Coulter, M. (2010). Management (10 th ed). New York, NY: Pearson Education
Zacks investment research. (2015). Wells Fargo sued by city of Oakland over predatory
lending. Chatham: Newstex.