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Avoiding shirking:If it is difficult to measure the quantity or quality of a worker's effort-and systems of piece rates or commissions are impossible-there may be an incentive for him or her to "shirk"(do less work than agreed). The manager thus may pay an efficiency wage in order to create or increase the cost of job loss due to shirking.This threat can be used to prevent shirking (or "moral hazard").◼ Avoiding shirking: If it is difficult to measure the quantity or quality of a worker's effort—and systems of piece rates or commissions are impossible—there may be an incentive for him or her to "shirk" (do less work than agreed). The manager thus may pay an efficiency wage in order to create or increase the cost of job loss due to shirking. This threat can be used to prevent shirking (or "moral hazard")
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