Which of the Following Practices Would Indicate That an Employer

question 115

Multiple Choice

Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?

• A)The employer pays his workers wages that are unusually high for the industry and region.
• B)The employer pays his employees year-end bonuses depending to how well the business does and his observations of the employees' efforts.
• C)The employer has voluntarily removed video cameras from the factory floor.
• D)Both A and B are correct.

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Definitions:

Interpersonal Processes

The exchanges and interactions that occur between individuals in a social or professional context.

Fine-Tuning

Making small adjustments to improve or optimize a process, system, or product.

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed.

Reengineering

The redesigning of business processes and structures to improve performance significantly.