Three Employers Have Justified Their Actions as Follows

question 30

Multiple Choice

Three employers have justified their actions as follows.Whose logic is not consistent with the logic of efficiency wage theory?

• A)Instead of spending money on an electronic timing system that monitors worker hours,Tom spends an equivalent amount of money on higher wages.
• B)Dick pays his workers less than the equilibrium wage so that they will not have the time or money to look for work somewhere else.
• C)Harry pays his workers in a developing country more than the going wage hoping that they will get a better diet and so be more productive.
• D)None of the above is consistent with the logic of efficiency wage theory.

---

Definitions:

Organizational Development

A systematic approach to improving the effectiveness, health, and capability of organizations through planned change.

Intrapreneurship

The practice of fostering entrepreneurial behaviors, skills, and attitudes within an existing organization to drive innovation and new business development.

Organization's Structure

The arrangement of roles, responsibilities, and relationships within an organization, determining how it coordinates its activities and distributes authority.

Employee Behavior

The actions and conduct of individuals within an organization, influenced by various internal and external factors.