What Is One Way to Avoid the Principal-Agent Problem in the Workplace

question 5

Multiple Choice

What is one way to avoid the principal-agent problem in the workplace?

• A)The employee constantly monitors the employer's activities.
• B)The employer constantly monitors the employee's efforts.
• C)The employer shares all management choices with employees before making decisions.
• D)The employee signs a waiver of release.

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Definitions:

Selection Round

A phase in the recruitment process where candidates undergo various evaluations or tests to determine their suitability for a job or program.

Organization's Needs

The requirements or demands of an organization necessary for it to achieve its objectives and operate efficiently.

Salary and Benefits

The compensation and additional perks offered to an employee for their service, including health insurance, retirement contributions, and paid leave.

Realistic Job Simulation

A method used in employee selection and training that replicates the actual tasks and conditions of a job to evaluate a candidate's performance.