| The agency principal problem arises because of the principal's lack of control of an agent's actions. To counter this lack of control, incentive plans are designed by the principal to align the agent's goals more closely with those of the principal. A study was conducted to measure the impact of an incentive plan on the actions of the agent, using the Analytic Hierarchy Process as a mechanism to measure the importance of that plan relative to other factors. The plan in question did not motivate the selected group of agents as desired. |
