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)A compensation system does not influence peer monitoring.

Question

Quizplus · Accepted Answer

Agency theory suggests that employees, due to their day-to-day interactions and shared experiences, have a better understanding of their fellow employees' actions and behaviors than managers do. This perspective emphasizes the value of peer monitoring in detecting and addressing issues that may not be visible to higher management levels.

Which of the Following Is True of How the Agency