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Company A allows its employees flexibility to work from home about 80% of the time. So, employees are required to come to the office 1 day a week (5 days week). Since 24-hour monitoring of employee activity is not possible, how Company A handle the problem of asymmetric information and action.
1. Discuss the nature of the moral hazard inherent in this work arrangement on the part employees.
2. Discuss work /human resource policies and productivity/performance metrics that can be employed and make hidden action less hidden.
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