Moral hazard can be reduced at the workplace by _____.

Question

Quizplus · Accepted Answer

Moral hazard at the workplace refers to situations where employees, including managers, may not act in the best interests of their employers due to misaligned incentives or lack of oversight. Setting and monitoring targets for managers is a direct method to align their actions with company goals, thereby reducing the risk of moral hazard by ensuring that their performance is closely watched and evaluated against specific objectives.

Moral Hazard Can Be Reduced at the Workplace by _____