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Discuss pros of rewarding them on their respective tasks

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Reference no: EM133189893

In a micro finance bank (which loans money to groups of poor borrowers), there are two basic tasks: origination of loans (sales) and collection. Both are connected in that the originator screens for risk, which affects collection, and the collector's behavior could affect whether a borrower returns as client in the future. Suppose these tasks are executed by different people.

Question : Discuss the each pros and cons of rewarding them

(i) on measures of their respective tasks (loans originated and collected),

(ii) the profitability of loans = origination times successful collection.

Reference no: EM133189893

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