For Week 10, discussion forum, you need to first watch the video at the link below to learn more about Wells Fargos GREAT cross-sales incentive plan that led to fraudulent practices. This incentive plan was in place from about 2006 until 2017 when it was revealed that more than 5000 Wells Fargo bank employees opened 2 million bank accounts for customers without their knowledge. The bank’s senior managers claimed that the employees acted on their own and the employees were subsequently fired. The employees claimed that they opened the fraudulent accounts because of the pressure created by their sales commission program, GREAT, which included a goal that customers have 8 products with the bank (e.g., bank account, savings account, credit cards).
After watching the video, post answers to the following questions and then discuss them with your assigned teammates. Your teammates will be the same for Weeks 10-12.
1. In what ways did the GREAT incentive system not conform to goal-setting theory? (See the slide on Implications of Goal-Setting theory for Incentive Pay on Week 10 slides).
2. To what extent do you think senior managers were responsible for the employees’ actions? Justify your position.
3. What can companies do to create an ethical culture and still have incentive systems with challenging goals?
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