How Does Wells Fargo Affect Organizational Behavior
4. Analysis and Findings
The results of incentives systems confirm that in particular monetary incentives within organizations increase the work performance. In particular, the bonus payments to employees will reflect the short-term success of an organization without a sustainable effect of the incorporation of performance and employee satisfaction on the long-term basis. Regarding Wells Fargo, the management created an environment with incentives which have not align with those of the employees. Introducing excessive minimum sales goals to receive rewards and employees conducted an aggressively cross-selling philosophy within employees. Omnipresent for employees was the fear to lose their job and the monthly income. Based on the successful …show more content…
In order to answer this question, a secondary research about incentive systems and also an analysis revealed that using monetary incentives can have different effects as bonus payments will affect employees just on the short-run and hence declared as short-term incentives. Monetary incentives as salary increases or stock options will encourage employees to work together with the organization and amplify the identification. In the case of Wells Fargo, besides the aspect to get laid off by not performing as required the company paid short-term incentives to their employees for reaching their sales quotas. Since the board of directors and the management established sales quotas based on individual and quantitative quotas without the supervision of a functioned compliance program, employees feared their loss of job and adopted an aggressive cross-selling culture to stay within the organization and receive the short-term incentive as a bonus payment. Causing fear and using monetary incentive were the only tools of Wells Fargo. The company didn´t consider that the management created an environment without control of internal and external standard which will not anticipate problems of the present and the past and thus not offer any foresight guidance for the future. The management created an “I” environment with individual and quantitative quota goals which haven’t had to align with those of the employees as achievement, recognition or
The results of incentives systems confirm that in particular monetary incentives within organizations increase the work performance. In particular, the bonus payments to employees will reflect the short-term success of an organization without a sustainable effect of the incorporation of performance and employee satisfaction on the long-term basis. Regarding Wells Fargo, the management created an environment with incentives which have not align with those of the employees. Introducing excessive minimum sales goals to receive rewards and employees conducted an aggressively cross-selling philosophy within employees. Omnipresent for employees was the fear to lose their job and the monthly income. Based on the successful …show more content…
In order to answer this question, a secondary research about incentive systems and also an analysis revealed that using monetary incentives can have different effects as bonus payments will affect employees just on the short-run and hence declared as short-term incentives. Monetary incentives as salary increases or stock options will encourage employees to work together with the organization and amplify the identification. In the case of Wells Fargo, besides the aspect to get laid off by not performing as required the company paid short-term incentives to their employees for reaching their sales quotas. Since the board of directors and the management established sales quotas based on individual and quantitative quotas without the supervision of a functioned compliance program, employees feared their loss of job and adopted an aggressive cross-selling culture to stay within the organization and receive the short-term incentive as a bonus payment. Causing fear and using monetary incentive were the only tools of Wells Fargo. The company didn´t consider that the management created an environment without control of internal and external standard which will not anticipate problems of the present and the past and thus not offer any foresight guidance for the future. The management created an “I” environment with individual and quantitative quota goals which haven’t had to align with those of the employees as achievement, recognition or