If the quality of an output is difficult to measure, which of the following can help firms incentivize quality?
A) tournaments
B) environment risk
C) corporate culture
D) piece rate pay

Question

Quizplus · Accepted Answer

Corporate culture can help incentivize quality by creating an environment where quality is valued and rewarded. This can include emphasizing the importance of quality in training programs, promoting a culture of continuous improvement, and recognizing and rewarding employees who produce high-quality work. Option A, tournaments, may incentivize effort but may not necessarily incentivize quality output. Option B, environmental risk, is not directly related to incentivizing quality. Option D, piece rate pay, may incentivize quantity over quality.

If the Quality of an Output Is Difficult to Measure