Question

In: Operations Management

A business has had to limit the amount of insurance plans it offers to its employees...

A business has had to limit the amount of insurance plans it offers to its employees in order to control costs. In spite of this attempt at maintaining some benefit level, employee satisfaction levels have declined at a far greater level than management expected, even though the two plans being offered to the employees were the two most popular plans selected by the employees in the prior years from the five that were offered. What is happening?

A) The employees are experiencing a limited decision making situation.

B) The employees are dealing with cognitive dissonance.

C) The employees are experiencing the construct of decision freedom.

D) The employees are dealing with the principle of post-purchase rationalization.

Solutions

Expert Solution

A. The employees are experiencing a limited decision making situation.

The employees are given limited choices from the employer as they are offered 5 plans from which they have to choose and they are not in a position to make a decision freely. They have limited information as well as choices to go through and they have to choose from one of the offered ones which don't necessarily satisfy them and hence the decline in satisfaction levels.


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