Employee Monitoring Employees can work hard or shirk Salary: $100K unless caught shirking Cost of effort $50K Managers can monitor or not Value of employee output: $200K Profit if employee doesnt work: sO Cost of monitoring: $10KEmployee Monitoring ◼ Employees can work hard or shirk ◼ Salary: $100K unless caught shirking ◼ Cost of effort: $50K ◼ Managers can monitor or not ◼ Value of employee output: $200K ◼ Profit if employee doesn’t work: $0 ◼ Cost of monitoring: $10K 20