Increasing the salary workers are paid while decreasing pay tied to performance

	decreases the risk assumed by employers but increases the risk assumed by workers.
	increases the risk assumed by both workers and employers.
	decreases the risk assumed by both workers and employers.
	increases the risk assumed by employers and decreases the risk assumed by workers.

Solutions

Expert Solution

Increases the risk assumed by employers and decreases the risk assumed by workers.

Increasing the fixed component of salary of workers will decrease the risk assumed by th workers. This is because of the fact that workers will be ensured of their salary no matter how their performance is. On the other hand risk assumed by the employer will increase as they will be liable to pay workers a fixed salary no matter how they perform or how much profit the firm makes.

Rahul Sunny answered 2 years ago

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