way a manager can reduce an agent's risk is to tie:
A)penalties more closely to the agent's effort.
B)bonuses more closely to the agent's sales.
C)rewards more closely to the actions that the agent can control.
D)pay directly to past performance.

Question

Quizplus · Accepted Answer

Tying rewards more closely to the actions that the agent can control reduces the agent's risk because it ensures that their performance is evaluated fairly based on factors within their control. This can motivate the agent to focus on improving their performance in specific areas and reduce the chances of them being penalized for factors outside of their control. Option A and B are also valid strategies, but they may not necessarily reduce an agent's risk unless the penalties and bonuses are tied to factors that are within the agent's control. Option D may not necessarily reduce risk as past performance may not always be an accurate indicator of future performance.

Way a Manager Can Reduce an Agent's Risk Is to Tie