In 1852, Henry Wells and William Fargo founded a financialservices company that has become a mythical part of the American West, and apart of thousands of other regions as well. By 1918, Wells Fargo was part of10,000 communities across the country. Wells Fargo agents in large and smalltowns offered basic financial services like money orders, travel checks andtransferring of funds.
It also offersa variety of investment services to individual and professional clients. Thecorporation’s merchandises and services consist of, but not limited to, existingand reserves securities, individual and commercial credit services, debit andcredit cards, bonds and investment funds, and foreign exchange services. As ofApril 14, 2015, Wells Fargo became the world’s second biggest bank by marketcapitalization, worth $281 billion.Todays, the organization becomes one of the nation’s largestfinancial institutions, has team members in 42 countries, and serving 70million customers in more than 130 countries around the world.Problem Statement In September 2015,Wells Fargo agreed to pay a $185 million fine and return $5 million in feeswrongly charged to customers. Beyond the fines, Wells Fargo has fired at least5,300 employees for unsuitable sales behavior.
This problem focused on thehigh-pressure sales environment that caused employees to create as many as twomillion fake accounts. Wells Fargo made a lot of mistakes including notpublicly confessing the problem soon enough and not having enough controls tofind the fake accounts. But the remarkable aspect of this problem is that somany employees were engaged in this wrong action on a immense scale.Therefore, the question that must be asked is “What is therelationship between motivational approaches and employee’s productivity?”As can be expected, every manager has various methods andstrategies when it comes to motivating employees on a daily basic. In thisresearch paper, I’m going to find different motivational theories to increaseemployee’s incentives and reach the highest productivity of individuals.According to Leadership and Organizational Behavior course,this problem refers to TCO C, which evaluates how motivation affects organizationalbehavior and the achievement of organizational goals.Literature ReviewJob satisfaction has been associated with positiveorganizational outcomes such as increased employee’s productivity and higherinnovation, which are linked to improved firm performance. Motivation isconsider being a primary determinant of job satisfaction.
Some researches showthat the Brazilian Hotel Industry used Herzberg’s Two-Factor theory ofmotivation to assess job satisfaction.1Much of the confusion concerning job motivations resultsfrom a failure to distinguish between positive and negative motivations. Thetheoretical framework developed by studies showing that satisfaction anddissatisfaction are not caused by the same factors has been adequately appliesto the questions of why one remains with or leaves his/her organization.Friedlander and Walton2interviewed with 82 scientists and engineers.
The results indicated that thereasons for the scientist’s remaining with his/her organization are quitedifferent from those that might cause him/her to leave it.Today in modern organizations, the managers of HR faced withthe greatest challenges. Therefore, without a good management behavior andleadership, managers may fail to plan employee engagement in the organizationand also fail to gain the objectives and goals of the organization. Providingtraining, motivation, and professional development will impact the performanceof the organization, increase the incomes of employees, and make goalsachievable.3The additional understanding of work motivation can begained by incorporating current insights concerning self-categorization, socialidentify processes, and by examining the way in which these processes influencethe motivation and behavior of individuals and groups at work. This theoreticalperspective allows us to demonstrate how individual and group processescommunicate to define work motivation.4Traditionally, it is believed that employees are motivatedby the opportunity to make as much as money as possible and will act rationallyto maximize their earnings.
In today’s highly competitive labor market, thereis extensive evidence that organizations regardless of size, technologicaladvances, market focus and other factors are facing motivational challenges. Thetwo most important challenges are low self-confidence and fear of failure.5In order to continually improve the efficiency of use ofmanagerial staff and to maintain sufficient motivation at the enterprises ofelectrical energy industry, it is necessary not only to evaluate but also todevelop the mechanism for material incentives. In order to provide an efficientfunctioning of a system for improving the efficiency of managerial staff, it isnecessary to form and implement an effective mechanism for management of itsdevelopment. Therefore, the system for control of material incentives in thesystem of motivation includes: incoming control, ongoing control, finalcontrol, and control of the use of acquired knowledge and skills in the workingprocess.6AnalysisThis is one of the most dangerous dynamics to trouble afinancial institution. This paper is about the sales fraud infamy facingfinancial services firm Wells Fargo in the U.
S. and the failure of its seniorleadership team to ban the scandal in spite of several years of repeatedwarnings.As early as 2010, Wells Fargo imposed extremely pushy andforceful sales goals on its employees. Specifically, they were told to sell atleast eight accounts to each client, contrasted with an average of threeaccounts ten years earlier. Wells Fargo CEO, John Stumpf, explained this goalon the basis of a simple rhyme, telling shareholders in the bank’s 2010 annualreport: “I’m often asked why we set a cross-sell goal of eight.
The answer is,it rhymed with ‘great’. Perhaps our new cheer should be: ‘Let’s go again, for10!'”These goals appeared large when supervisors threatenedsalespeople who failed to meet their goal. One former employee interviewed byCNN reported, “I had managers in my face yelling at me” and that “the salespressure from management was unbearable.”Large scale unethical sales practices often begin with minorethical agreements:§ A bank account manager, under stress to make asales goal, pushes a customer to add a credit card.
§ Still short of the goal, the account managerasks his/her friends and family to open accounts.§ With the goal still not attained, the accountmanager opens accounts without asking customers and transfers a small amount ofmoney.A lawsuit against Wells Fargo claimed, ” Employees whofailed to resort to illegal tactics were either demoted or fired as a result.”According to Stumpf’s testimony, a board committee becameaware of the fraud “at a high level” back in 2011. They had a complete contentionin 2013-2014.
Stumpf explained that he personally became aware in 2013, whenafter two years of unsuccessful solutions within the business unit the volumeof fake accounts was still increasing. He also noted that originally, the bankdidn’t undestand customers could be charged fees for fake accounts.A lawsuit filed against Wells Fargo also claims thatemployees shared with one another the know-how used in the fraud. They used ashort and simple way to reminiscent of a video game hack: “gaming” referred toopening accounts without permission and authorization, “sandbagging” meant postponingcustomer needs, “pinning” stood for generating PINs without permission andauthorization and “bundling” involved forcing customers to open multipleaccounts over customer exceptions.Despite five years of clear and repeated warnings, theexecutive team and the board of directors were remarkably slow to see the rangeof the gravity of this fraud, and to address it effectively. Wells Fargoleaders also seem to be blind to the magnitude of this crisis, both for consumersand its own culture.SolutionUsually, people have a deep essential desire to be helpful,profitable and perform more than they thought they could. But, sometime theirattempts and efforts will not be noticed and immediately affect employee’sproductivity.
Finding employee’s motives are difficult and vary from individualto individual. There are several researches about the correlation betweenmotivation and productivity. As the result, there are many theories that cancause employees to work harder and be more useful. These theories classified intwo groups: Content theories and Process theories.
Content theories deal with “what” motivates people and it isconcerned with individual needs and goals. Maslow, Hertzberg and McClellandtheories are the samples of content motivation theories. On the other hand,Process theories try to describe how behavior is energized, managed, retainedand stopped. Process theory consists of four sections: Reinforcement theory,Expectancy theory, Equity theory, and Goal-setting theory.The equation is quite simple:High levels of motivation = High levels of productivitySo, what exactly can wells Fargo use to incentivize itsemployees to fulfill at higher levels?While these problems are obvious inthe daily operations, a manager should be looking into how to cure or reducethese challenges. To reach the high level of efficiency, Wells Fargoneeds to find some solutions to increase employee’s intensives first. Making astrategy that focuses on education, training, and the right kinds of inducementswill increase employee’s potential.
There are three possible solutions that can helporganizations to have a high level of motivation:1. Reevaluate incentives:A first solutionrefers to incentives and motivation. Anything can serve as an incentive if itcan persuade someone to do something new. There are three kinds of incentive:tangible, intangible and experiential. Tangible incentives are material objectslike money bonuses or physical prizes such as TV or watch. Intangible incentivesare thing like recognition, praise, access to better leads, or extra time off.Experiential incentives provide the individuals with an experience.Some manager’swithin the bank believe that a paycheck should be incentive enough to come intowork and put forth 100% day in and day out.
Others adhere to the intrinsicmotivation of having pride in one’s work or the desire to be the best in aspecific position. The link between performance and motivation startedwith the notion that financial rewards do help improve performance.2.
Setting realistic goals:A secondsolution would be for manager’s to set realistic goals. “Goal setting is the process ofdeveloping, negotiating, and formalizing the targets or objectives that aperson is responsible for accomplishing”. It is important for sales incentivesto be challenging but also achievable. This is a trickysolution. If a goal is too difficult, itcould be de-motivating in and of itself, but if the goal is easily gained itcan have the same effect. The employees need to be close enough to attaintheir goals, to feel the need to push themselves. Therefore, a manager needs toassess his/her employee’s abilities on a more repeated basis, as oppose toannually, in order to set and revise short- and long-term goals and objectives.
This would allow manager’s to go over their employee’s conception of the goalsand define their level of motivation to achieve them.3. Establishing consistent expectations:A third solutionwould be for management to establish stable anticipation. A commonly usedphrase in today’s business banking world is “the only constant is change.” While this can seem very true at times, amanager needs to be proactive is maintaining a consistent set of expectations. In addition to managers attempting to setconsistent expectations themselves, they need to be proactive and hold thecredit approvers accountable for being consistent as well.
From all above, increasing employeeretention can help you maximize your team productivity. That is why it’s importantto invest in options to improve employee’s morale. It’s also recommended tomake new hires feel welcomed and motivated on their first day. This will helpthem to be more comfortable and ask their questions when have any problem.
Inaddition, for low performing employees, quarterly bonuses are actually a muchstronger motivation.ReflectionFive years later, the bank isfinally sending customers an email every time a new account is opened andrevising its sales goals. For the bank, any obstacles to speaking up must be removed.
That starts with listening to and protecting the employees who raise concerns.Also, managers must take explicit steps to encourage questions and collaboratein problem solving.The lesson to be learned here is clear. Motivation andincentives have a direct, important impact on the way the team members performtheir jobs.
Tough and difficult goals cause the employees to act unethically,and if they aren’t strong enough, they would not have a reason to go out and dothe very best they can.1Sledge, S., Miles, A. K., & Coppage, S. (2008).
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Motivating Individuals andGroups at Work: A Social Identity Perspective on Leadership and GroupPerformance. The Academy of ManagementReview, 29(3), 459.5Bhat, S., & Shah, H. (2010).
Managing Work Motivation at the Bottom-A Casefrom Footwear Manufacturing Organization in India. Vilakshan: The XIMB Journal of Management. 7(1), 141-156.6Yu, K. D. (2017). The Scientific Approach to Formation of a Mechanism forMaterial Incentives in the System of Motivation at the Enterprises ofElectrical Energy Industry.
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