In Addition to Increased Flexibility,why Do Organizations Use Contingent Workers

question 28

Multiple Choice

In addition to increased flexibility,why do organizations use contingent workers?

• A) There is less need for training.
• B) Contingent workers can replace knowledge workers.
• C) Contingent workers often represent a higher quality labor force.
• D) Contingent workers cost less.
• E) The organization simply cannot find full time workers.

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Definitions:

Efficiency Wages

Wages that are deliberately set above the market equilibrium level by employers to increase productivity and efficiency among employees.

Below-equilibrium

A situation where the quantity demanded exceeds the quantity supplied at a given price.

Principal-agent Problem

A dilemma in which one party (the agent) is expected to act in the best interest of another party (the principal) but may have the incentive to act in their own interest instead.

Shirking

The behavior of avoiding or evading work responsibilities, often in employment settings.