Before revision: We follow the agentization approach and transform the standard-hidden action model introduced by Holmstr\"om  into an agent-based model.
After revision: We follow the agentization approach and transform the standard-hidden action model introduced by Holmstr\"om and, by doing so, provide a model which can be used to further explore theoretical topics in managerial economics, such as the efficiency of incentive mechanisms. We employ the concept of agentization, i.e., we systematically transform the standard hidden-action model into an agent-based model.