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Lesson #3, Assignment #7: Chapter 4 Case Study

1. The employees who were leaving understood and valued the health insurance and medical benefits the most. However, the stock program and pension contribution program were confusing and not well understood. 2. The child care center and wellness center provided little value to the leaving employees. 3. The management should better explain benefits upon hiring and provide periodic reminders. They should focus on educating employees on the stock and pension programs. The usage and value of the child care center and wellness center should also be re-evaluated. A flexible cafeteria-style benefits selection may better fit employees' individual needs.

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59 views1 page

Lesson #3, Assignment #7: Chapter 4 Case Study

1. The employees who were leaving understood and valued the health insurance and medical benefits the most. However, the stock program and pension contribution program were confusing and not well understood. 2. The child care center and wellness center provided little value to the leaving employees. 3. The management should better explain benefits upon hiring and provide periodic reminders. They should focus on educating employees on the stock and pension programs. The usage and value of the child care center and wellness center should also be re-evaluated. A flexible cafeteria-style benefits selection may better fit employees' individual needs.

Uploaded by

Doffa Arinalhaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Lesson #3, Assignment #7:

Chapter 4 Case Study


Address the following case in a short essay of 300-350 words. Don't neglect to copy-and-paste the
questions to your assignment's response.

Study Chapter 4 Organizational Behavior Case, "Huge Benefits, Little Understanding or Use," found on
page 118 of Organizational Behavior (11th Edition) and answer the following questions:

1. Which benefits did the employees who were leaving seem to best understand and like?

2. Which benefits did they find confusing or of little value?

3. Based on your answers and other relevant considerations, what recommendations would you make to
Velma’s management regarding how they can do a better job of using the benefits package in their
organizational reward system?

The health insurance and medical benefits seemed to be understood by everyone who participated in an
exit interview. Although this wasn’t specifically discussed in the results of the exit interview, there is no
mention of confusion surrounding this benefit or that employees were leaving based on different coverage
being offered by another firm. The pay rate was also mentioned as a positive.

Most of the other benefits were confusing or had little value for those employees who left the company.
Specifically the stock program and the pension contribution program were confusing and misunderstood
by both designers and manufacturing personnel. The child care center and wellness center held little
value for those leaving the organization.

Based on the results of the interviews, I would suggest that the organization do a better job of explaining
the benefits upon initial hire of an employee as well as provide periodic information and reminders to all
employees of their benefits package. Stock options and retirement/pension funds are very confusing to
many people and may require special training to gain understanding across the organization. I would
start by reeducating all current employees on these topics and providing specific examples of costs and
benefits of buying additional stock or contributing pre-tax money to the pension plan.

In addition, I would recommend looking closely at the usage and value added of programs such as the
wellness center and day care center. Does the retention value justify the expense? Are there better
ways to address those needs of their employees without having on underutilized onsite facilities? For
those employees who don’t use these benefits, what additional services would they like to see? This may
be a good case for a flexible cafeteria style benefit selection where each person is allowed a certain
amount of money to select benefits that fit their needs.

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