Editing Principal–agent problem (section)

==Personnel management==
When managing personnel in an organisational setting, the principal-agent problem surfaces when employees are hired to perform specific tasks and fulfil certain roles. In this environment, the goals of employee and employer may not be aligned. Often employees have the desire to further their own career or financial goals where employers often have the output interests of the organisation at the forefront of their actions and goals.<ref name="journals.sagepub.com">{{cite journal | url=https://journals.sagepub.com/doi/full/10.1177/1523422319851274 | doi=10.1177/1523422319851274 | title=The Agency of the Principal–Agent Relationship: An Opportunity for HRD | year=2019 | last1=Baker | first1=Rose M. | journal=Advances in Developing Human Resources | volume=21 | issue=3 | pages=303–318 | s2cid=197688734 | url-access=subscription }}</ref>

Employees may reveal the principal-agent problem in their work by slacking off and not meeting targets or KPIs and Employers may reveal the principal-agent problem by implementing damaging policies or actions that make the working environment unsustainable.<ref name="journals.sagepub.com"/>