Pay-for-performance systems seek to deal with the
A) unemployment problem.
B) monitoring problem.
C) discouraged worker problem.
D) principal-agent problem.

Question

Quizplus · Accepted Answer

Pay-for-performance systems are designed to address the principal-agent problem, which arises when the interests of the principal (employer) and the agent (employee) are not perfectly aligned. By incentivizing employees to perform well and achieve specific goals, pay-for-performance systems can help ensure that employees act in the best interests of the organization.

Pay-For-Performance Systems Seek to Deal with the