Agents prefer a behavior-based contract when outcome uncertain is high. A behavior-based contract is when employees of an organization are classified by monitoring their behavior in situations. Some situations that are measured by behavior are monitoring how salespeople are involved in activities and how they end. How different management strategies correlate with their team and so on. The outcome is high for what may happen based on the behavior of the different individuals.
Agents prefer a behavior-based contract when D. outcome uncertainty is high.
Behavioral contract is a form of agreement that explains the goals of a certain business venture and the results of either meeting up to those goals or not.
Agents who are the middle persons in business contracts will prefer this behavior-based contract when they are not so sure of the risks that are associated with a business venture.
This will help them to have a better grasp of what they are getting into.
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