Some employers permit telecommuting where employees work from home and contact the office through electronic methods.Which of the following identifies a problem that the employer may face?
A)Telecommuting could lead to the problem of self-selection.
B)The employer may face the problem of moral hazard.
C)Telecommuting could contribute to an informal organizational structure.
D)The cost of hiring and retaining employees will increase.
E)Telecommuting can blur the boundaries of the firm.

Question

Quizplus · Accepted Answer

The problem that the employer may face when permitting telecommuting is moral hazard, where the employee may not work as hard or effectively as they would in the office since they are not being directly supervised. self-selection refers to employees who opt for telecommuting because they prefer to not work in an office, but this is not necessarily a problem for the employer. Informal organizational structure could also be a potential issue, but it is not a given. The cost of hiring and retaining employees may or may not increase with telecommuting, depending on various factors such as location and job responsibilities. Telecommuting can blur boundaries of the firm, but it is not a problem that the employer may face.

Some Employers Permit Telecommuting Where Employees Work from Home and Contact