Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jan Hobart, president and CEO of Micro Bank, was stunned when she received documentation stating that a civil lawsuit had been filed against her company

image text in transcribed
image text in transcribed
Jan Hobart, president and CEO of Micro Bank, was stunned when she received documentation stating that a civil lawsuit had been filed against her company for opening millions of secret accounts without customer permission. After calling together her executive team, they determined that a sales incentive program that encouraged retail bankers to cross-sale banking products to their customers was at the root of the lawsuit. Larry Smith, vice president over marketing and sales, was adamant that the sales incentive program should not have caused that kind of problem. Smith assured the team that the program was designed to increase sales and not fraud and that similar programs had been used by other retailers with no problems. Lynne West, general counsel, challenged Smith's assurances by stating that the escalating monthly quotas to cross-sell more products that were placed on each retail bank manager, coupled with the individual monetary incentives that each employee received for selling products, would naturally lead to this kind of disaster if no one was closely supervising the results and how they were achieved. West, then grilled Smith on the safeguards and reporting systems he had put in place. Smith confessed that the only thing he was doing was tracking the number of sales and calculating how much to increase the quotas for the next month-no one was auditing the legitimacy of the sales. Which of the following statements, best summarizes this situation? Micro Bank's cross sales incentive program was a sound marketing program, not dissimilar to other retail programs. Micro Bank did not do anything wrong by implementing its cross-sales incentive program. Micro Bank wanted to increase the cross-sales among its retail bankers, but instead got fraudulent behavior from some of its employees. Micro Bank should fight the civil suit and refuse to settle out of court, because Smith's description of how he monitored the program should convince jurors that the bank was on top of the program Based on employee research on what motivates employees, Liberty Manufacturing changed many of its major Human Resources systems, practices, and policies, including its compensation and discretionary benefits plans. Its changes focused entirely on the top four items employees said were more important to them: job security, interesting work, opportunity for advancement, and appreciation. Only cost-of-living adjustments were made to pay, because employees rated pay as tenth among the things that motivated them. After these changes were made, the company began receiving complaints about low pay, "stingy" increases, etc. Top- rated employees began leaving the company. The Vice President of HR and other company officers could not understand why employees were so disgruntled, because: "We gave them all of those items they said were most important to them." Had they read the assigned additional reading by Rynes, Gerhart, and Minette, they would have understood that: Employees tend to select items on a survey that reflect socially approved behaviors. All of the above The more a particular question touches on strongly held social values, the less valid direct employee responses are likely to be. No other incentive or motivational technique comes close to money with respect to its instrumental value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago