To decrease overtime, the manager of a surgical unit offers nurses who get their work finished on time for an entire 2-month period an extra day off with pay at regular time. What is this an example of?

Question

Quizplus · Accepted Answer

Principal agent theory suggests that followers may have an informational (expertise or knowledge) advantage over th e leader as well as their own preferences, which may deviate from that of the principal. This may lead to a misalignment of goals. To influence the agent, the principal offers an incentive that corrects excessive overtime. The remaining options do not represent the example offered.

To Decrease Overtime, the Manager of a Surgical Unit Offers