1a

The core tenets of goal-setting theory have been the subject of extensive study and have been put to use
in a variety of organizational contexts; the findings of this research indicate that they may, in fact,
improve the performance of employees.

Firstly, the thing that can be done to assist improve employee performance is to boost clarity and
concentration. This can be accomplished by defining objectives that are both clear and detailed to
provide workers with both direction and a feeling of focus. When workers have a clear understanding of
what is expected of them and what they are responsible for achieving, it is easier for them to prioritize
activities, efficiently manage time and resources, and maintain their motivation and motivation. Stay
focused on your task. Clearly, this improves performance while also lowering visibility.

Lastly, companies have the ability to establish challenging but attainable objectives for their workforce,
therefore fostering employee motivation and encouraging enhanced performance. Employees are
inclined to exhibit higher levels of motivation when they are tasked with pursuing objectives that align
with their own values and aspirations. The active involvement of workers in the goal-setting process,
known as goal commitment, not only increases employee motivation but also fosters a greater feeling of
ownership and responsibility in accomplishing those goals. The approach should be focused and specific.
According to prevailing theories on goal setting, it may be posited that it serves as an additional means
to augment staff productivity.

https://www.indeed.com/career-advice/career-development/goal-setting-theory

Roepe, L. R. (2022) 6 Ways Managers Can Help Employees Achieve Their Performance Goals, SHRM,
[online] Available at: https://www.shrm.org/hr-today/news/hr-magazine/summer2022/pages/how-
managers-can-help-employees-achieve-their-performance-goals.aspx

1b

According to the goal-setting hypothesis, establishing clear, difficult objectives may inspire people and
enhance their performance. However, it is clear from the Wells Fargo case study that the implementation
of this idea encountered substantial difficulties and fell short in several areas. For instance, Wells Fargo
has established a hostile and demanding workplace. The emphasis on individual achievement has
created a poisonous workplace environment where people compete with one another rather than
encouraging cooperation and teamwork. The entire environment of the organization and the wellbeing
of the workforce have suffered because of this unproductive component of goal setting theory.
According to this notion, personnel are under pressure to meet high sales targets, which encourages
unethical behavior like creating unauthorized client accounts. Goal-oriented thinking has taken
precedence over ethical and integrity issues. Because goal-setting theory does not account for the
possible drawbacks of establishing unrealistic or immoral objectives, this exposes a significant fault in it.
Insights from equity theory may be used to solve some of the problems with goal-setting theory that
were highlighted in the Wells Fargo case study. problems with goal-setting theory. The use of equity
theory has the potential to effectively address several superfluous issues inside Wells Fargo's
organizational framework. The equity hypothesis suggests that when workers regard the goal-setting
process as unjust, for instance, when incentives are not commensurate with effort or when unethical
conduct is promoted, it may result in dissatisfaction and adverse consequences. Organizations may foster
a more pleasant work environment and mitigate unethical conduct by including considerations of
fairness and justice into their goal setting and incentive systems. (G, 2022) “Employees will compare
themselves to other groups both inside and outside of the organization. In doing so, they will compare
the total of all inputs against the total of all outputs. If they perceive unfairness they will adjust their
inputs to compensate, working more or working less, depending on if their situation is positive or
negative relative to the group or person being compared.” At that point the establishment of ambitious
sales targets by Wells Fargo fostered a highly competitive atmosphere, whereby workers felt a need to
engage in unethical conduct in order to either match or surpass their colleagues. By incorporating the
principles of equity theory, companies may prioritize the establishment of objectives that foster a culture
of cooperation and collaboration, rather than perpetuating an environment characterized by unjust
competition. The use of this approach may contribute to the establishment and maintenance of an
ethical and sustainable work environment.

https://www.indeed.com/career-advice/career-development/equity-theory-of-motivation

Bishop. (2018) An Analysis of Motivation and Culture: Examining the 2009-2016 Wells Fargo Case -
ProQuest, [online] Available at:
https://www.proquest.com/openview/45727a41dad2e63c66a72dee4dee48d0/1?pq-
origsite=gscholar&cbl=18750&diss=y

G, D. (2022) The Equity Theory of Motivation - How to Keep your team Motivated, expert, [online]
Available at: https://expertprogrammanagement.com/2017/06/equity-theory/

Describe the way in which you would adapt the following elements of Wells Fargo’s performance
management system to eliminate fraudulent practices, making use of at least 3 academic references.
(~1,000 words) a. Performance appraisal/ review process b. Reward system c. Disciplinary process