ABC Inc.is concerned about the work effort of its employees.To minimize this problem,which of the following would be an effective policy for ABC to implement?
A)Pay the employees a wage in excess of the wage the employees would earn elsewhere.
B)Secretly install videocameras to monitor employees, and fire employees who shirk their responsibilities.
C)Eliminate profit-sharing programs since these tend to give employees the incentive to shirk their duties until the year-end bonus is paid.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

Both A and B are effective policies to minimize the problem of employee shirking. Paying employees a wage in excess of the wage they would earn elsewhere (A) reduces the incentive to shirk since employees are less likely to leave their jobs for a lower-paying position. Secretly installing video cameras to monitor employees and firing employees who shirk their responsibilities (B) also reduces the incentive to shirk since employees are more likely to be caught and punished if they do not work hard.

ABC IncIs Concerned About the Work Effort of Its Employees