Which of the following is true of how the agency theory views monitoring?
A)Monitoring is more expensive when done by employees.
B)Employees' knowledge of the workplace is not reliable.
C)Monitoring is less effective when performed by employees.
D)Employees understand fellow employees better than managers do.
E)Compensation system does not influence peer monitoring.

Question

Quizplus · Accepted Answer

Agency theory suggests that monitoring would be less costly and more effective if performed by employees because they have knowledge about the workplace and behavior of fellow employees that managers do not have. As such, the right compensation system might encourage self-monitoring and peer monitoring.

Which of the Following Is True of How the Agency