Asked by Lianna Callens on Sep 24, 2024
Verified
Which of the following addresses agency costs?
A) advertising for employee positions in as many outlets as possible
B) hiring only from job fairs
C) instituting longer work days
D) replacing closed offices with cubical office spaces
Agency Costs
Expenses and losses in value occurring when there is a conflict of interest between the principals (owners) and the agents (managers) of a company.
Longer Work Days
Extended periods of work hours in a single day beyond the standard working schedule.
Cubical Office
A workspace design consisting of cubicles, which are partially enclosed office spaces assigned to individual employees.
- Determine approaches to mitigate the costs associated with agency within a firm.
Verified Answer
GP
Govind Purohit4 days ago
Final Answer :
D
Explanation :
Replacing closed offices with cubical office spaces can help address agency costs by promoting a more collaborative work environment and reducing the potential for isolated decision-making by individual employees. It can also help to reduce the perception of hierarchy within the organization and promote more efficient communication and teamwork, which can help to reduce conflicts and improve overall productivity. Advertising for employee positions in as many outlets as possible or hiring only from job fairs may be effective strategies for attracting new talent, but they do not necessarily address agency costs. Instituting longer work days can potentially increase productivity, but it may also lead to burnout and employee dissatisfaction, which can ultimately lead to increased agency costs.
Learning Objectives
- Determine approaches to mitigate the costs associated with agency within a firm.