Management Article



OnOctober 12, 2016, the Los Angeles Times published an article titled“John Stumpf`s resignation from Wells Fargo won`t solve the bank`smanagement problem” written by Michael Hiltzik. The article focuseson the managerial problems facing the bank and which ultimately ledto the resignation of the chairman. The bank wishes to put an end tothe scandal affecting its reputation. This scandal saw workers of thebank open fake accounts that impersonated customers. The resignationof Stumpf is also an indication of the reluctance of management toown up to the fiasco. Some recommended changes have followed hisdeparture. One of the changes is the division of chief executive andchairman posts, which previously were held by one individual, Stumpf(Hiltzik, 2016).

Theoutgoing chairman has been replaced by someone familiar with thebank, Stephen W. Sanger, a director at Wells Fargo since 2003. Thisclearly indicates that Sanger has been in the company since theinception of the scandal which commenced in 2011or earlier. He hasearned $1.7 million as salary since 2011. He is a member of some ofthe boards charged with overseeing activities at the company, thehuman resources and risk committees. However, these committees didnot perform their duties as expected. The appointment of Sanger isstill questionable given that the culture of the board in the companycondones the fraudulent activities pursued by employees since nothingwas done as the scandal conceptualized (Hiltzik, 2016).

Thechief executive position was accorded to fifty-six-year-old TimothyJ. Sloan who has been a member of the company for the last twenty-sixyears. There is a possibility that he was part of the people whocondones impunity within the organization. Additionally, it’ssuspected that he has been groomed for this position due to thespeculations that he has been the chosen successor since last year.From this perspective, there are no chances that he would have raisedsuspicion against the scandalous activities at Wells Fargo.

Sloanhas been credited for some negative aspects in the company. He isaccused of being reluctant in talking to investigators in regards tothe scandal. He is also suspected of initiating the exit of CarrieTolstedt who was in charge of the section where the abusestranspired. However, it’s considered premature to appoint Sloan asa replacement for Stumpf due to the former’s controversial role insteering the bank forward to success. According to one analyst, BrianKleinhanzl, Sloan is considered as a non-transformational leader(Hiltzik, 2016). The concept used by the bank in appointments wasunethical given that few people were dismissed and those in lowlevels are elevated.

Thefarewell bid to Stumpf by Wells Fargo was ironical in nature. Thestatement regarded him as a professional and fruitful banker whopropelled the organizations to greater heights. However, thestatement failed to indicate the damage his leadership had caused tothe reputation of the company.

Sadly,the reshuffle at the bank is unlikely to end the negativityassociated with the bank’s customer treatment. According to SherrodBrown, a senator from Ohio, the bank is yet to give satisfactoryrecommendations on how to rectify its misdeeds.

Inconclusion, it is evident from the article that lack of propermanagement within an organization has a higher likelihood of leadingto the downfall of an organization.


Hiltzik,M. (2016, October 12). JohnStumpf`s resignation from Wells Fargo won`t solve the bank`smanagement problem. LosAngeles Times.Retrieved from

Management Article

Management:Article Summary



Thebook focuses on the outcome of humor to followers when leaders use itas a leadership skill. It’s clear that humor has a positive resultto employee’s performance and satisfaction. It builds interpersonalwork relationship which brings adorable organization outcomesPositive effect and mood is related to creativity and spirit in adirect linear fashion. It tackles the question of the impact of humorto non-profit making organization which has not been determined yet,but it’s likely to have a little impact (Northouse, 2007).

Accordingto Northouse, (2007), the use of humor lightens the environment atwork allowing followers to discuss their expectations. It also bringsabout multiple connections with the members other than the simple,direct connection of positive performance. In finance leaders who usecontingent reward and high levels of humor are less successful ascompared to those who use low levels of mood. The book also focuseson gender response to humor Males find some jokes comical thanfemales. Men involve in more forms of fun than women (Northouse,2007).

Researchis conducted to find out the effect of mood on leadership. Leadersand followers are taken from high schools in California.Questionnaires were emailed to the principles and other confidentialemailed to department heads. A Regression approach was employed totest the moderating effect of humor on the leader Behaviour for thedependent variable. Regression approach involved creating of threequestions (Northouse, 2007).

Accordingto the research, leaders who use of humor become positivelycorrelated with teacher job satisfaction. This indicated thatcontingent personal reward interacted with the use of humor inaccounting for significant increments invariance on the outcomemeasure of teacher performance. Humor significantly influences thecontrol of employees. When the leader is humorous, it eases thetension that follower get from their leader. This makes it possibleand easy to interact between the two (Northouse, 2007). This leads toa better outcome from the organization. Organizations should greatlyadvise for the use of leader humor because it leads up to opening upof the leadership. Leaders can also be trained how to use humor sinceit leads to better communication between the leaders and thefollowers.

Theelements discussed in the article indicate that humor entails atendency of particular cognitive experience to provoke laughter andamusement. Most importantly, they depict that humor requires talentwhich may be hard to teach other people. Nevertheless, humor plays anessential role when used in leadership in that it eases the tensionbetween the management and the employees. According to the article,there are very many positive outcomes of humor in leadership(Northouse, 2007). Some of these results include the fact that humorleads to a better leadership strategy which may not be used as achoice of management. For instance, in cases where the leaderdisregards humor, they may employ other strategies aimed at creatinga healthy relationship between them and their personnel. Therefore,humor may only be applied in limited conditions as a leadershipstyle. Besides, organizations involving close interaction withemployees as well as customers may employ the element of humor inhiring and acquiring effective leaders. The achievement of suchscenarios may occur through the creation of situations where thepotential employees may be required to portray funny incidentsthroughout the interaction process (Northouse, 2007).


Northouse,&nbspP.&nbspG.(2007).&nbspLeadership:Theory and practice.Thousand Oaks: SAGE Publications.