When employees at Wells Fargo opened accounts in their members' names, not always with their consent, the employees blamed it on management, stating that the bank executives had set ________ goals, or goals that seemed unattainable.

Question

Quizplus · Accepted Answer

Stretch goals can demotivate employees because they set aims that seem unattainable, they can encourage unethical behavior as employees try to reach the goals in whatever way they can, and they can lead companies to take unnecessary risks. For example, many people believe that the use of stretch goals contributed to the emissions scandal at Volkswagen or in this case employees at Wells Fargo to open accounts for member's without their consent. Two recent studies seem to confirm that stretch goals "generate large attainment discrepancies that increase willingness to take risks, undermine goal commitment, and generate lower risk-adjusted performance."

When Employees at Wells Fargo Opened Accounts in Their Members