Work Done by Truman Bewley of Yale University Suggests That

Multiple Choice

Work done by Truman Bewley of Yale University suggests that during recessions managers of most enterprises are reluctant to enact a reduction in wages even though, given the extensive unemployment, they could have easily afforded to hire workers at lower wages. The primary resistance to wage reduction comes from upper management and not from employees. Bewley suggests that the main reason for avoiding pay-cuts is that such pay-cuts hurt morale. Which of the following is not an integral component of worker morale?

A) Identification with the firm and an internalization of its objectives.
B) Trust in an implicit exchange with the firm and with other employees.
C) A mood that is conducive to good work.
D) Monitoring of worker performance by their immediate managers.