Team bonuses:
A)solve the free-rider problem associated with individual bonuses
B)create a principal-agent problem by channeling effort toward team performance at the expense of individual performance
C)typically comprise a large percentage of the total compensation of middle managers,but almost none of the total pay of top executives
D)work best when targeted at relatively small groups of employees

Question

Quizplus · Accepted Answer

Team bonuses are most effective when targeted at small groups because it is easier to monitor and ensure that all members contribute, reducing the free-rider problem.

Team Bonuses