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

question 97

Multiple Choice

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

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

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Definitions:

Real Option

A choice made available to managers regarding investment opportunities, considering the flexibility to adapt to market changes.

Call

A contract that grants the holder the ability, though not the requirement, to purchase a certain quantity of an underlying asset at a predetermined price before a specified deadline.

Exercise Price

The set price at which an option's holder has the right to purchase (call) or sell (put) the underlying asset.

Stock Price

indicates the current price at which a share of a company can be bought or sold on a stock exchange.