Overview - Chapter 2
To-Do Date: Mar 23 at 11:59pmTopic
The purpose of this chapter is twofold. First, it is important to learn about the psychological basis of employee benefits. Employers can use this knowledge to understand how employee benefits influence the attitudes and performance of their employees. Also, employers can then develop and maintain effective benefits programs aimed at promoting worker satisfaction, commitment, and productivity.
Second, it is important to understand the economic basis of employee benefits. Employee benefits are a costly proposition. Even though employee benefits are expensive, most employers continue to offer them. Still, it begs the question pertaining to whether companies should have workers pay for life or disability insurance. After considering the psychology of employee benefits, we will take up topics about the economics of employee benefits.
Objectives
In chapter two, you will gain an understanding of:
The employment relationship as an exchange relationship and the psychology behind why firms provide employee benefits.
Employee benefits as part of the psychological contract and how some employee expectations about benefits might be formed.
How employee perceptions of justice or fairness are important to understanding how pay and benefits practices influence employee attitudes.
The economic rationales for why companies offer employee benefits.
Who pays for employee benefits?
Weekly Schedule
| Activity | Estimated time required | |
|---|---|---|
| Reading: Chapter Two: The Psychology and Economics of Employee Benefits | 30-45 minutes | |
| Discussion: What are psychological contracts? Discuss the main features of psychological contracts and how they develop. Discuss how employees’ psychological contracts might be violated and the consequences of these violations for employers. For full credit, please respond to a classmate's post in at least 75 words. Your initial post should be 150 words. | 40 minutes | |
| Writing Assignment: In at least 100 words, please respond to the following: One reason employers offer benefits is that the benefits may be cheaper for the employers to provide than it would be for the employees to purchase on their own. Even if a particular benefit is cheaper for an employer to provide, would that employer always want to provide it? Why or why not? | 20-30 minutes |