The Principal-Agent Problem Occurs

question 97

Multiple Choice

The principal-agent problem occurs:

• A)when the principal has more information than the agent.
• B)commonly in school settings, when the agent puts in more effort than the principal would like.
• C)commonly in the employer-employee relationship.
• D)when the principal and agent have the same objectives.

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Definitions:

Task Leadership

A leadership style focused on the organization, clarification, and distribution of tasks and objectives, as well as the coordination of individuals or team efforts to achieve specific goals.

Democratic Management Style

A leadership approach that involves making decisions based on the input of the whole team, fostering collaboration and shared responsibility.

Human Factors Psychology

A branch of psychology focused on optimizing human interaction with systems and products to improve safety, efficiency, and usability.

360-Degree Feedback

A performance appraisal method where employees are evaluated by their peers, subordinates, supervisors, and sometimes clients, providing a comprehensive view of their performance.