Scenario 9.1
Chocolatta University, an institute of higher learning that educates future confectionary chefs, offers a very attractive benefits package. Costs associated with benefits are about double those of rival institutions, Jellibelli Tech and Truffle State. However, Chocolatta U. administrators feel that the extensive benefits attract the most talented faculty and staff in the world. Due to recent societal trends in fitness and health, Chocolatta U. has experienced a downturn in its funding support from global confectionary corporations seeing lower profits. The university's budget has therefore been reduced. Joy Almond, human resource benefits manager, has been asked to find ways to reduce expenditures on benefits, so that important university programs such as Candy Fillings and White Chocolate Creations do not suffer. Ms. Almond is in a quandary!
-Refer to Scenario 9.1. Chocolatta University administrators justify the high costs of its benefits programs by espousing which particular theory?
A) Equity theory
B) Efficiency wage theory
C) Motivational theory
D) Expectancy theory
E) Reinforcement theory

Question

Quizplus · Accepted Answer

The administrators at Chocolatta University are espousing the efficiency wage theory, which suggests that offering attractive benefits will attract and retain the most talented staff, in this case, future confectionary chefs.

Scenario 9.1 Chocolatta University, an Institute of Higher Learning That Educates Future