Question 1

Violations of psychological contracts are likely to be more intense than unmet expectations because of feelings of betrayal and loss of trust. (Psychological Contract Violation)

Accepted Answer

Violations of psychological contracts involve a sense of betrayal and loss of trust, which can lead to intense feelings of disappointment, anger, and resentment. This can make the impact of a violation much greater than simply having unmet expectations.

Question 2

Employee benefits act as a tool for recruiting and retaining desired employees for companies. (How Employee Benefits Constitute Social Exchange)

Accepted Answer

Offering attractive employee benefits is a form of social exchange where the company provides additional value beyond the employee's salary in exchange for their skills, knowledge, and time. This helps in retaining and attracting desired employees for the organization.

Question 3

Once the social exchange is set between employer and employee,it does not change over time. (How Employee Benefits Constitute Social Exchange)

Accepted Answer

The social exchange between employer and employee can change over time due to various factors such as job performance, organizational culture, economic conditions, etc. Therefore, the statement is false.

Question 4

Social exchange is one where the nature of exchange has been specified at the time of employment. (How Employee Benefits Constitute Social Exchange)

Accepted Answer

Social exchange refers to a relationship where the terms of exchange are not explicitly specified, relying on mutual trust and reciprocity instead.

Question 5

Employee benefits need to be considered as economic exchange between employer and employee rather than social exchange relationship. (How Employee Benefits Constitute Social Exchange)

Accepted Answer

Employee benefits can be considered as a form of social exchange where the employer offers benefits as a way to build and maintain a positive relationship with their employees, leading to increased loyalty, job satisfaction, and improved performance. While there may be economic benefits for both parties, the focus is on building a social connection beyond the monetary transaction.

Question 6

As the size of the insured group increases,so does the difficulty for the insurance companies to predict the total medical expenses of the group. (Cost Advantage)

Accepted Answer

As the size of the insured group increases, the law of large numbers helps insurance companies predict total medical expenses more accurately, reducing uncertainty and risk.

Question 7

Psychological contracts do not develop and change over time. (Psychological Contracts)

Accepted Answer

Psychological contracts are dynamic and can change over time as individuals' expectations and perceptions of the employment relationship evolve.

Question 8

Tax incentives are the only reason employers offer benefits to employees. (Why Do Employers Offer Benefits)

Accepted Answer

While tax incentives may be a factor in the decision to offer benefits, there are many other reasons why employers do so, including attracting and retaining employees, improving employee satisfaction and morale, and promoting a positive company culture.

Question 9

Relational psychological contracts can often be understood with an example of an independent contractor or consultant hired by a firm. (Psychological Contracts)

Accepted Answer

Relational psychological contracts are typically associated with long-term, ongoing relationships characterized by mutual loyalty and commitment, unlike the transactional nature of independent contractors or consultants.

Question 10

Long term relationship between employer and employee pertains to transactional psychological contracts. (Psychological Contracts)

Accepted Answer

Transactional psychological contracts are typically short-term and focus on specific, economic exchanges, whereas long-term relationships are associated with relational psychological contracts, which involve emotional and social elements.

Question 11

Violations of psychological contracts are basically the same as unmet expectations. (Psychological Contract Violation)

Accepted Answer

The answer of Violations of psychological contracts are basically the...

Question 12

Health insurance or other legally required benefits would form a part of employees' transactional expectation. (Psychological Contracts)

Accepted Answer

Health insurance and other legally required benefits are part of employees' basic expectations in a workplace and are considered part of their transactional contract with the employer.

Question 13

Employee benefits practices can fulfill either transactional or relational psychological contracts. (Psychological Contracts)

Accepted Answer

The answer of Employee benefits practices can fulfill either transactional...

Question 14

One reason for employer-provided health insurance is to avoid adverse selection. (Cost Advantage)

Accepted Answer

Adverse selection occurs when individuals with a higher likelihood of needing healthcare are more likely to purchase health insurance, leading to higher costs for the insurance company. Employer-provided health insurance spreads the costs across a larger pool of employees, reducing the risk of adverse selection and potentially resulting in cost savings.

Question 15

Economies of scale refers to the lower amount of co-pay required of employees in a large company as opposed to those in a small company. (Cost Advantage)

Accepted Answer

Economies of scale refer to the cost advantage that comes with producing goods or services in large quantities, not co-pays for employees.

Question 16

Economies of scale refers to the lower amount of co-pay required of employees in a large company as opposed to those in a small company. (Cost Advantage)

Accepted Answer

Economies of scale refers to the cost advantage a company experiences as it grows larger and produces more goods or services. It is not related to co-pay required for employees.

Question 17

Despite increasingly diverse workforce in the US workplace,traditional benefits practices assuming similarity among workers can still work well for today's organizations. (Workforce Changes and the Employment Relationship)

Accepted Answer

With an increasingly diverse workforce, traditional benefits practices that assume similarity among workers may not work as effectively. Different employees may have different needs and preferences, and organizations need to consider offering flexible benefits options to attract and retain a diverse group of employees.

Question 18

Retirement plans is a good example of benefits that fulfill both transactional and
relational expectations. (Psychological Contracts)

Accepted Answer

Retirement plans provide both short-term transactional benefits (such as tax benefits and employer contributions) and long-term relational benefits (such as financial security and loyalty from the employer). This fulfills both transactional and relational expectations in the psychological contract between employer and employee.

Question 19

Employer's expectation of the employee is not as important as employee's expectation about the employer. (Employee Benefits as Constituting Psychological Contracts)

Accepted Answer

Both employer's and employee's expectations are important in psychological contracts, as they form mutual obligations and influence job satisfaction and performance.

Question 20

Job security,recognition,and support in exchange for commitment and loyalty to the employer more pertain to relational psychological contracts. (Psychological Contracts)

Accepted Answer

Relational psychological contracts refer to the promise of mutual support and commitment between an employee and employer. This includes aspects such as job security, support, recognition, and loyalty in exchange for commitment from the employee. Therefore, the statement is true.

Quiz 2: The Psychology and Economics of Employee Benefits

Violations of psychological contracts are likely to be more intense than unmet expectations because of feelings of betrayal and loss of trust. (Psychological Contract Violation)

Employee benefits act as a tool for recruiting and retaining desired employees for companies. (How Employee Benefits Constitute Social Exchange)

Once the social exchange is set between employer and employee,it does not change over time. (How Employee Benefits Constitute Social Exchange)

Social exchange is one where the nature of exchange has been specified at the time of employment. (How Employee Benefits Constitute Social Exchange)

Employee benefits need to be considered as economic exchange between employer and employee rather than social exchange relationship. (How Employee Benefits Constitute Social Exchange)

As the size of the insured group increases,so does the difficulty for the insurance companies to predict the total medical expenses of the group. (Cost Advantage)

Psychological contracts do not develop and change over time. (Psychological Contracts)

Tax incentives are the only reason employers offer benefits to employees. (Why Do Employers Offer Benefits)

Relational psychological contracts can often be understood with an example of an independent contractor or consultant hired by a firm. (Psychological Contracts)

Long term relationship between employer and employee pertains to transactional psychological contracts. (Psychological Contracts)

Violations of psychological contracts are basically the same as unmet expectations. (Psychological Contract Violation)

Health insurance or other legally required benefits would form a part of employees' transactional expectation. (Psychological Contracts)

Employee benefits practices can fulfill either transactional or relational psychological contracts. (Psychological Contracts)

One reason for employer-provided health insurance is to avoid adverse selection. (Cost Advantage)

Economies of scale refers to the lower amount of co-pay required of employees in a large company as opposed to those in a small company. (Cost Advantage)

Economies of scale refers to the lower amount of co-pay required of employees in a large company as opposed to those in a small company. (Cost Advantage)

Despite increasingly diverse workforce in the US workplace,traditional benefits practices assuming similarity among workers can still work well for today's organizations. (Workforce Changes and the Employment Relationship)

Retirement plans is a good example of benefits that fulfill both transactional and relational expectations. (Psychological Contracts)

Employer's expectation of the employee is not as important as employee's expectation about the employer. (Employee Benefits as Constituting Psychological Contracts)

Job security,recognition,and support in exchange for commitment and loyalty to the employer more pertain to relational psychological contracts. (Psychological Contracts)