If a Firm Frequently Changes the Basis of Its Pay-For-Performance

question 89

Multiple Choice

If a firm frequently changes the basis of its pay-for-performance system,it will most likely:

• A) diminish its credibility gap.
• B) violate its psychological contract with employees.
• C) generate fear among employees due to a lack of control.
• D) increase employees' intrinsic drive to perform beyond expectations.

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Definitions:

Conflict of Interest

A situation where an individual's personal interests could improperly influence the performance of their duties or decision-making.

Dual Agency

A real estate transaction scenario in which a single agent or broker represents both the buyer and the seller, creating potential conflicts of interest.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing another person’s assets, involving a relationship of trust and confidence.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, responsible for their own taxes and benefits.