To keep employees from shirking,invest in greater monitoring
A)when monitoring is expensive relative to its benefits
B)especially when monitoring is 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)​when monitoring is expensive relative to its benefits
B)especially when monitoring is 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

Monitoring is most beneficial when it is efficient, meaning the benefits of monitoring (such as increased productivity and reduced shirking) outweigh the costs associated with implementing such systems.

​To Keep Employees from Shirking,invest in Greater Monitoring

To Keep Employees from Shirking,invest in Greater Monitoring