ADMS 2400 Lecture Notes - Lecture 5: Flexible Spending Account, Disability Insurance, Expectancy Theory

• School: York University
• Department: Administrative Studies
• Course: ADMS 2400
• Professor: Anna Blake

Document Summary

Pay attention to the exhibits in pages from 174-184. Co(cid:374)siste(cid:374)t (cid:449)ith e(cid:454)pe(cid:272)ta(cid:374)(cid:272)(cid:455) theo(cid:396)(cid:455)"s thesis that o(cid:396)ga(cid:374)izatio(cid:374)al (cid:396)e(cid:449)a(cid:396)ds should (cid:271)e li(cid:374)ked to ea(cid:272)h i(cid:374)di(cid:448)idual e(cid:373)plo(cid:455)ee"s pe(cid:396)so(cid:374)al goals, flexible benefits individualize rewards by allowing each employee to choose the compensation package that best satisfies his o(cid:396) he(cid:396) (cid:272)u(cid:396)(cid:396)e(cid:374)t (cid:374)eeds. The(cid:455) (cid:396)epla(cid:272)e the t(cid:396)aditio(cid:374)al (cid:862)o(cid:374)e-benefit- plan-fits-all(cid:863) p(cid:396)og(cid:396)a(cid:373)s desig(cid:374)ed fo(cid:396) a (cid:373)ale (cid:449)ith a (cid:449)ife a(cid:374)d t(cid:449)o (cid:272)hild(cid:396)e(cid:374) at ho(cid:373)e that dominated organizations for more than 50 years. 51 the average organization provides fringe benefits (cid:449)o(cid:396)th app(cid:396)o(cid:454)i(cid:373)atel(cid:455) (cid:1008)(cid:1004) pe(cid:396)(cid:272)e(cid:374)t of a(cid:374) e(cid:373)plo(cid:455)ee"s sala(cid:396)(cid:455). Fle(cid:454)i(cid:271)le (cid:271)e(cid:374)efits (cid:272)a(cid:374) (cid:271)e uniquely tailored to accommodate differences in employee needs based on age, marital status, spouse"s (cid:271)e(cid:374)efit status, (cid:374)u(cid:373)(cid:271)e(cid:396) a(cid:374)d age of depe(cid:374)da(cid:374)ts, a(cid:374)d the like. The three most popular types of benefits plans are modular plans, core-plus plans, and flexible spending accounts. 52 modular plans are predesigned packages of benefits, with each module put together to meet the needs of a specific group of employees.