Agency Theory Is of Particular Value in Compensation Management Because

question 26

Multiple Choice

Agency theory is of particular value in compensation management because of its emphasis on the _____ trade-off.

• A)performance-reward
• B)risk-reward
• C)motivation-reward
• D)ability-reward
• E)behavior-reward

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Definitions:

Profitability

The ability of a business to earn a profit, or the degree to which its revenues exceed its expenses.

HRM Activities

Tasks and functions associated with Human Resource Management, focusing on managing people within organizations in areas such as recruitment, training, and compliance with labor laws.

Market Value

The estimated worth of a product, service, or company within the marketplace, determined by factors like supply, demand, and competition.

HR Practices

Strategies, methods, and processes implemented by the Human Resources department to manage and develop the workforce efficiently.