Georgia State University Managerial Theories and Principal Agent Problem Questions

Description

Describe an example you have experience with of the principal-agent problem (for example, you have a desire for your children to listen in school and do well, while for them, goofing off at school might be much more fun), and explain how incentives can be used to overcome the principal-agent problem (such as paying your children for good grades). Include in your explanation an analysis of the risks in using incentives.
Part II: How will you be able to apply what you learned in this course to your current or future work?
1.Describe an example you have experience with of the principal-agent problem (for example, you have a desire for your children to listen in school and do well, while for them, goofing off at school might be much more fun), and explain how incentives can be used to overcome the principal-agent problem (such as paying your children for good grades). Include in your explanation an analysis of the risks in using incentives.How will you be able to apply what you learned in this course to your current or future work?answer in paragraph2. A principal-agent problem I can recall includes the business owner wanting the employees to act on the owners behalf. The problem occurred when one employee decided to act on their own behalf due his pay being less than his coworker who has the same title, but does not perform the same duties. His act was not in the best interest of the company and/or business owner.reply to 2-3 sentences. number you answers 
 

Explanation & Answer:
2 Questions

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Business Owner

sales volumes

customers values

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