The stress of not knowing for sure if the agent is acting in his or her best interests or knowing for sure if the agent is using the resources to which he or she has been entrusted as effectively and efficiently as possible is caused by the performance ambiguity between a principal and agent.

Question

Quizplus · Accepted Answer

This statement correctly identifies the source of stress in a principal-agent relationship as performance ambiguity. The principal may not be sure if the agent is acting in their best interests or making the most of the entrusted resources. This can cause stress and uncertainty for the principal.

The Stress of Not Knowing for Sure If the Agent