To keep employees from shirking,you can invest in greater monitoring
A)even though monitoring is expensive
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

Quizplus · Accepted Answer

Investing in efficient monitoring can help to deter employees from shirking, without necessarily incurring high costs. However, relying solely on monitoring may create a culture of distrust and negatively impact employee morale, so it should be balanced with other methods such as incentives and clear communication of expectations. Option C may also be effective, but it depends on the nature of the job and the incentives offered. Option D is not relevant to the question of monitoring shirking behavior.

To Keep Employees from Shirking,you Can Invest in Greater Monitoring