10. The compensation theory seeks to explain how managers differ from owners in using pay and other forms of compensation to effectively on the organisation True False 11. Owners are unalty risk wverse and may prefer conservative courses of action that minimize their chances of loss True False 12. The base pay form of compensation in as competitive at the entry level as it is thereafter True False 13.14. One of the disadvantages of a merit pay is that the criteria for determining merit are often nebulous since organizations do not clearly mention the conditions for carning the pay True False 14. Empathy is reflected by the genuine concern for and the interest in employee suggestions and innovations that can be operationalized through a feedback systems True False 15. In a learning organization, managers learn how to encourage their people to redirect their energies toward the substance of disagreements rather than toward personality clashes or political infighting True False 16. Managers at a learning organization encourage risk-taking, creative behaviour by providing a challenging environment, True False 17. When parts of the product or service are outsourced, it's called the "Hollow Organization" design True False 18. In network redesign, established companies return to a previously successful design by eliminating unproductive structural additions and modifications, True False 19. Organizational climate is an overall "feeling" that is conveyed by the physical layout, the way participants interact, and the way members of the organization conduct themselves with customers or other outsiders. True False