The fact that many companies employ supervisors to oversee the actions of workers is a way to treat:

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Employing supervisors is a measure to address the moral hazard problem, which is the risk that the workers may not act in the best interest of the company or do not put in optimal effort because they are not fully accountable for the outcome of their actions. Supervisors can monitor the work of the employees, provide feedback, and discipline noncompliant workers. Adverse selection refers to the risk of selecting the wrong type of workers, which is usually addressed through screening and signaling mechanisms in the hiring process. The law of diminishing returns refers to the decrease in marginal productivity as more units of a factor of production (such as labor) are added while holding other factors constant. The free-rider problem refers to the situation in which some workers may benefit from the effort of others without contributing their fair share, which can be addressed through incentives, monitoring, and group-based rewards.

The Fact That Many Companies Employ Supervisors to Oversee the Actions