The Case Where People Purposely Act in a Careless Way

question 112

Multiple Choice

The case where people purposely act in a careless way, for example, driving recklessly because they are insured, is called

• A) asymmetric information.
• B) risk aversion.
• C) moral hazard.
• D) bounded rationality.
• E) thrill-seeking.

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Definitions:

Horizontal Fit

Refers to the alignment between an individual's skills and interests and the job requirements or the compatibility between various HR practices within an organization.

Vertical Fit

The alignment between an individual's career path and the strategic objectives or needs of the organization.

HR Alignment

The process of ensuring that human resource practices are in harmony with the strategic goals and objectives of an organization.

Enforcing Fit

The process of ensuring that the employees' skills, values, and behaviors align with the organizational culture and requirements.