Which of the Following Is True of How the Agency

question 84

Multiple Choice

Which of the following is true of how the agency theory views monitoring?

• A)Monitoring is more expensive when done by employees.
• B)Employees' knowledge of the workplace is not reliable.
• C)Monitoring is less effective when performed by employees.
• D)Employees understand fellow employees better than managers do.
• E)A compensation system does not influence peer monitoring.

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Definitions:

Organizational Structures

The system of hierarchy and arrangement within an organization defining how roles, responsibilities, and authority are distributed.

Line Structure

An organizational framework where direct reports and authority flow vertically from the top executive to the lowest level employee, emphasizing clear chains of command.

Multidivisional Structure

A corporate organizational structure where a company is divided into multiple, semi-autonomous units, each with their responsibilities, operations, and management.