Because Internal Hiring Signals Them That They Can Move Up

question 45

True/False

Because internal hiring signals them that they can move up in a company, it's a good policy for motivating current employees.

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Definitions:

Employer-Worker Relationship

The professional and legal dynamics between employers and their employees, encompassing aspects of rights, duties, and workplace culture.

Principal

The original sum of money borrowed in a loan, or the initial amount of investment, excluding any interest or profits.

Agent

In economics, an agent is an individual or entity that makes decisions, often in the context of trading or negotiating, on behalf of another person or group.

Informational Asymmetry

A situation where one party in a transaction has more or superior information compared to another. This often leads to an imbalance in power or decision-making.