It Was More Than a Century Ago That an Engineer

question 26

Multiple Choice

It was more than a century ago that an engineer named Frederick Taylor walked into factories and starting timing workers with a stop watch. He dissected their movements, and organized them more efficiently. The monitoring tool, the 21st century equivalent of Taylor's stopwatch, is the computer. Those of us who use them produce rivers of data describing the hours of our work day. Suppose modern firms pay employees based on the quantity of work completed each day as monitored through computers by managers. How would this solve the principal-agent problem?

• A) Through employee incentive pay
• B) Through employee ownership
• C) Through employee long-term contracts
• D) Through employee monitoring

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Definitions:

Local Regulators

Substances produced in one part of an organism that affect cells in close proximity.

Neurotransmitters

Chemical messengers that transmit signals across the synaptic gaps between neurons, influencing both physical and psychological functions.

Hormones

Chemical messengers produced by glands in the body that regulate the activity of cells or organs.

Insulin Receptors

Proteins on cell surfaces that bind insulin, facilitating its role in glucose metabolism and cellular uptake.