Question

Provide an explanation using one appropriate management theory from each of the following: the classical approach, the human relations approach, and the modern management approach of how Wells Fargo operated prior to the scandal becoming public (EM Chapter 2).

Answer 1

The classical approach

Step-by-step explanation:

The Wells Fargo case clearly depicts the 'Classical Approach' theory.

As you know that the classical approach theory focuses on the efficiency, the output and the productivity of the employees, while leaving behind the focus on the employee job satisfaction and social needs.

This is exactly how Wells Fargo was operating by only focusing on the market capitalization, profit maximizing and ignoring all the employee and customer values and ethical practices.