US Employees Who Formerly Wanted to Defer Part of Their

question 59

Multiple Choice

U.S. employees who formerly wanted to defer part of their compensation to a 401(k) retirement plan typically had to lower their take-home pay as they "opted in" to the plan. Now companies are being encouraged to enroll their employees in the 401(k) plan automatically while allowing them to choose to raise their take-home pay by "opting-out" of the 401(k) plan. Under the "opting out" rather than "opt-in" system, enrollments in 401(k) plans soared. This best illustrates the impact of

• A) overconfidence.
• B) a process simulation.
• C) framing.
• D) belief perseverance.

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Definitions:

Four-Drive Theory

A framework in psychology that suggests four basic motivational drives influence human behavior: acquiring, bonding, learning, and defending.

Drives

Internal motivational states that compel individuals to engage in particular behaviors to satisfy specific needs.

Employee Motivation

The level of enthusiasm, energy, and commitment that employees bring to their job, which can significantly affect their performance and productivity.

Feedback Strategy

A method or plan for providing constructive criticism and suggestions to improve performance.