In fake accounts. But the remarkable aspect of this

In 1852, Henry Wells and William Fargo founded a financial
services company that has become a mythical part of the American West, and a
part of thousands of other regions as well. By 1918, Wells Fargo was part of
10,000 communities across the country. Wells Fargo agents in large and small
towns offered basic financial services like money orders, travel checks and
transferring of funds. It also offers
a variety of investment services to individual and professional clients. The
corporation’s merchandises and services consist of, but not limited to, existing
and reserves securities, individual and commercial credit services, debit and
credit cards, bonds and investment funds, and foreign exchange services. As of
April 14, 2015, Wells Fargo became the world’s second biggest bank by market
capitalization, worth $281 billion.

Todays, the organization becomes one of the nation’s largest
financial institutions, has team members in 42 countries, and serving 70
million customers in more than 130 countries around the world.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Problem Statement

 In September 2015,
Wells Fargo agreed to pay a $185 million fine and return $5 million in fees
wrongly charged to customers. Beyond the fines, Wells Fargo has fired at least
5,300 employees for unsuitable sales behavior. This problem focused on the
high-pressure sales environment that caused employees to create as many as two
million fake accounts. Wells Fargo made a lot of mistakes including not
publicly confessing the problem soon enough and not having enough controls to
find the fake accounts. But the remarkable aspect of this problem is that so
many employees were engaged in this wrong action on a immense scale.

Therefore, the question that must be asked is “What is the
relationship between motivational approaches and employee’s productivity?”

As can be expected, every manager has various methods and
strategies when it comes to motivating employees on a daily basic. In this
research paper, I’m going to find different motivational theories to increase
employee’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 organizational
behavior and the achievement of organizational goals.

Literature Review

Job satisfaction has been associated with positive
organizational outcomes such as increased employee’s productivity and higher
innovation, which are linked to improved firm performance. Motivation is
consider being a primary determinant of job satisfaction. Some researches show
that the Brazilian Hotel Industry used Herzberg’s Two-Factor theory of
motivation to assess job satisfaction.1

Much of the confusion concerning job motivations results
from a failure to distinguish between positive and negative motivations. The
theoretical framework developed by studies showing that satisfaction and
dissatisfaction are not caused by the same factors has been adequately applies
to the questions of why one remains with or leaves his/her organization.

Friedlander and Walton2
interviewed with 82 scientists and engineers. The results indicated that the
reasons for the scientist’s remaining with his/her organization are quite
different from those that might cause him/her to leave it.

Today in modern organizations, the managers of HR faced with
the greatest challenges. Therefore, without a good management behavior and
leadership, managers may fail to plan employee engagement in the organization
and also fail to gain the objectives and goals of the organization. Providing
training, motivation, and professional development will impact the performance
of the organization, increase the incomes of employees, and make goals
achievable.3

The additional understanding of work motivation can be
gained by incorporating current insights concerning self-categorization, social
identify processes, and by examining the way in which these processes influence
the motivation and behavior of individuals and groups at work. This theoretical
perspective allows us to demonstrate how individual and group processes
communicate to define work motivation.4

Traditionally, it is believed that employees are motivated
by the opportunity to make as much as money as possible and will act rationally
to maximize their earnings. In today’s highly competitive labor market, there
is extensive evidence that organizations regardless of size, technological
advances, market focus and other factors are facing motivational challenges. The
two most important challenges are low self-confidence and fear of failure.5

In order to continually improve the efficiency of use of
managerial staff and to maintain sufficient motivation at the enterprises of
electrical energy industry, it is necessary not only to evaluate but also to
develop the mechanism for material incentives. In order to provide an efficient
functioning of a system for improving the efficiency of managerial staff, it is
necessary to form and implement an effective mechanism for management of its
development. Therefore, the system for control of material incentives in the
system of motivation includes: incoming control, ongoing control, final
control, and control of the use of acquired knowledge and skills in the working
process.6

Analysis

This is one of the most dangerous dynamics to trouble a
financial institution. This paper is about the sales fraud infamy facing
financial services firm Wells Fargo in the U.S. and the failure of its senior
leadership team to ban the scandal in spite of several years of repeated
warnings.

As early as 2010, Wells Fargo imposed extremely pushy and
forceful sales goals on its employees. Specifically, they were told to sell at
least eight accounts to each client, contrasted with an average of three
accounts ten years earlier. Wells Fargo CEO, John Stumpf, explained this goal
on the basis of a simple rhyme, telling shareholders in the bank’s 2010 annual
report: “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, for
10!'”

These goals appeared large when supervisors threatened
salespeople who failed to meet their goal. One former employee interviewed by
CNN reported, “I had managers in my face yelling at me” and that “the sales
pressure from management was unbearable.”

Large scale unethical sales practices often begin with minor
ethical agreements:

§ 
A bank account manager, under stress to make a
sales goal, pushes a customer to add a credit card.

§ 
Still short of the goal, the account manager
asks his/her friends and family to open accounts.

§ 
With the goal still not attained, the account
manager opens accounts without asking customers and transfers a small amount of
money.

A lawsuit against Wells Fargo claimed, ” Employees who
failed to resort to illegal tactics were either demoted or fired as a result.”

According to Stumpf’s testimony, a board committee became
aware of the fraud “at a high level” back in 2011. They had a complete contention
in 2013-2014. Stumpf explained that he personally became aware in 2013, when
after two years of unsuccessful solutions within the business unit the volume
of fake accounts was still increasing. He also noted that originally, the bank
didn’t undestand customers could be charged fees for fake accounts.

A lawsuit filed against Wells Fargo also claims that
employees shared with one another the know-how used in the fraud. They used a
short and simple way to reminiscent of a video game hack: “gaming” referred to
opening accounts without permission and authorization, “sandbagging” meant postponing
customer needs, “pinning” stood for generating PINs without permission and
authorization and “bundling” involved forcing customers to open multiple
accounts over customer exceptions.

Despite five years of clear and repeated warnings, the
executive team and the board of directors were remarkably slow to see the range
of the gravity of this fraud, and to address it effectively. Wells Fargo
leaders also seem to be blind to the magnitude of this crisis, both for consumers
and its own culture.

Solution

Usually, people have a deep essential desire to be helpful,
profitable and perform more than they thought they could. But, sometime their
attempts and efforts will not be noticed and immediately affect employee’s
productivity. Finding employee’s motives are difficult and vary from individual
to individual. There are several researches about the correlation between
motivation and productivity. As the result, there are many theories that can
cause employees to work harder and be more useful. These theories classified in
two groups: Content theories and Process theories.

Content theories deal with “what” motivates people and it is
concerned with individual needs and goals. Maslow, Hertzberg and McClelland
theories are the samples of content motivation theories. On the other hand,
Process theories try to describe how behavior is energized, managed, retained
and 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 productivity

So, what exactly can wells Fargo use to incentivize its
employees to fulfill at higher levels?

While these problems are obvious in
the daily operations, a manager should be looking into how to cure or reduce
these challenges. To reach the high level of efficiency, Wells Fargo
needs to find some solutions to increase employee’s intensives first. Making a
strategy that focuses on education, training, and the right kinds of inducements
will increase employee’s potential.

 

There are three possible solutions that can help
organizations to have a high level of motivation:

1.    
Reevaluate incentives:

A first solution
refers to incentives and motivation. Anything can serve as an incentive if it
can persuade someone to do something new. There are three kinds of incentive:
tangible, intangible and experiential. Tangible incentives are material objects
like money bonuses or physical prizes such as TV or watch. Intangible incentives
are thing like recognition, praise, access to better leads, or extra time off.

Experiential incentives provide the individuals with an experience.

Some manager’s
within the bank believe that a paycheck should be incentive enough to come into
work and put forth 100% day in and day out. Others adhere to the intrinsic
motivation of having pride in one’s work or the desire to be the best in a
specific position. The link between performance and motivation started
with the notion that financial rewards do help improve performance.

2.    
Setting realistic goals:

A second
solution would be for manager’s to set realistic goals.  “Goal setting is the process of
developing, negotiating, and formalizing the targets or objectives that a
person is responsible for accomplishing”. It is important for sales incentives
to be challenging but also achievable. This is a tricky
solution.  If a goal is too difficult, it
could be de-motivating in and of itself, but if the goal is easily gained it
can have the same effect. The employees need to be close enough to attain
their goals, to feel the need to push themselves. Therefore, a manager needs to
assess his/her employee’s abilities on a more repeated basis, as oppose to
annually, 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 goals
and define their level of motivation to achieve them.

3.    
Establishing consistent expectations:

A third solution
would be for management to establish stable anticipation. A commonly used
phrase in today’s business banking world is “the only constant is change.”  While this can seem very true at times, a
manager needs to be proactive is maintaining a consistent set of expectations.  In addition to managers attempting to set
consistent expectations themselves, they need to be proactive and hold the
credit approvers accountable for being consistent as well.

From all above, increasing employee
retention can help you maximize your team productivity. That is why it’s important
to invest in options to improve employee’s morale. It’s also recommended to
make new hires feel welcomed and motivated on their first day. This will help
them to be more comfortable and ask their questions when have any problem. In
addition, for low performing employees, quarterly bonuses are actually a much
stronger motivation.

Reflection

Five years later, the bank is
finally sending customers an email every time a new account is opened and
revising 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 collaborate
in problem solving.

The lesson to be learned here is clear. Motivation and
incentives have a direct, important impact on the way the team members perform
their 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 do
the very best they can.

1
Sledge, S., Miles, A. K., & Coppage, S. (2008). What role does culture
play? A look at motivation and job satisfaction among hotel workers in Brazil. The International Journal of Human Resource
Management, 19(9), 1667-1682.

2
Friedlander, F., & Walton, E. (1964). Positive and negative Motivations
Toward Work. Administrative Science
Quarterly, 9(2), 194.

3
Gjinovci, A. (2014). The role of trainings and the professional development in
increase of revenues in the public and private organizations.

4 Ellemers,
N., Gilder, D. D., & Haslam, S. A. (2004). Motivating Individuals and
Groups at Work: A Social Identity Perspective on Leadership and Group
Performance. The Academy of Management
Review, 29(3), 459.

5
Bhat, S., & Shah, H. (2010). Managing Work Motivation at the Bottom-A Case
from Footwear Manufacturing Organization in India. Vilakshan: The XIMB Journal of Management. 7(1), 141-156.

6
Yu, K. D. (2017). The Scientific Approach to Formation of a Mechanism for
Material Incentives in the System of Motivation at the Enterprises of
Electrical Energy Industry. Business
Inform, 8(475), 265-270.