Why Are Flexible Benefit Plans Consistent with Expectancy Theory's Thesis

question 118

Multiple Choice

Why are flexible benefit plans consistent with expectancy theory's thesis?

• A) Organizational rewards should be linked to each individual employee's goals.
• B) They make employment at firms providing such programs more attractive.
• C) They provide a suite of tangible rewards that can be offered as motivation.
• D) They allow organizations to minimize costs associated with benefits.
• E) The motivation to gain extra benefits promotes productivity.

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Definitions:

Unemployment

The situation when individuals who are capable of working are not able to find a job despite actively seeking work.

Sacrifice Ratio

The measure of economic costs associated with reducing inflation through monetary policies, typically represented as the loss in output per percentage point decrease in inflation.

Inflation Expectations

The rate at which consumers, businesses, and investors expect prices to rise in the future.

Phillips Curve

A macroeconomic theory that suggests unemployment and inflation have a stable and inverse relationship, indicating trade-offs short-term policy-making.