Formal Linkage Mechanisms Minimize the Transaction Costs Associated with Reducing

question 31

True/False

Formal linkage mechanisms minimize the transaction costs associated with reducing uncertainty, opportunism, and risk.

---

Definitions:

Performance Management

A process of defining, measuring, appraising, providing feedback on, and improving performance.

Appraising

The act of evaluating the performance, value, or quality of an employee, object, or situation.

Measuring

The process of determining the size, quantity, or degree of something using standard units or tools.

Goal-orientation Theory

A framework that describes how individuals’ goals and their views on those goals can influence their motivation and behavior.