To keep employees from shirking,invest in greater monitoring
A)if monitoring is inexpensive relative to its benefits
B)especially when monitoring is not very efficient
C)when employees respond well to incentive contracts
D)when incentives solve both moral hazard and adverse selection problems with employees

Question

​To keep employees from shirking,invest in greater monitoring
A)if monitoring is inexpensive relative to its benefits
B)especially when monitoring is not very efficient
C)when employees respond well to incentive contracts
D)when incentives solve both moral hazard and adverse selection problems with employees

Quizplus · Accepted Answer

Investing in monitoring can be effective in deterring shirking by employees, especially when the cost of monitoring is relatively low compared to the potential benefits in terms of increased productivity or reduced misconduct. This approach can be particularly useful in situations where other forms of motivation such as incentives or moral appeals may not work as well. Additionally, if monitoring is inefficient, it may be necessary to invest more in monitoring technology or personnel to achieve the desired level of oversight.

​To Keep Employees from Shirking,invest in Greater Monitoring

To Keep Employees from Shirking,invest in Greater Monitoring