Incentive problems are usually:
A) larger, the further up the organization the decision rights are placed.
B) larger, the further down the organization the decision rights are placed.
C) smaller, the further down the organization the decision rights are placed.
D) larger regardless of where the decision rights are placed.

Question

Quizplus · Accepted Answer

Incentive problems tend to be larger when decision rights are placed further down the organization because lower-level employees may have less alignment with the organization's overall goals and may require more incentives to ensure their decisions align with those goals.

Incentive Problems Are Usually