3/1443 Question 1 Answer by stating whether the statement is TRUE or FALSE: 1. The person-situation interaction dimension suggests that people are static, acting basically the same in all scenarios. True False 2. The socialization process is especially relevant to organizational behaviour because the process is mainly confined to early childhood, the period where the person is most vulnerable to impact True False 3. The real value of the Big Five to organizational behaviour is that it brings back the importance of pre-dispositional traits, and these traits have been clearly shown to relate to job performance True False 4. The situation, behaviour, and environmental consequences indicate that perception is related to behaviour. True False 5. Job satisfaction is a result of employees' perception of how well their job provides those things that are viewed as important. True False 6. Organizational commitment is an attitude reflecting employees' loyalty to their organization and is an ongoing process through which organizational participants express their concern for the organization and its continued success and well-being. True False 7. An employee who is emotionally attached and involved with the organization is showing normative commitment. True False 8. Organizations use rewards to motivate employee performance and encourage their loyalty, but it is not effective in retention of these employees, True False 9. Agency theory involves a new approach to understanding behavior by individuals and groups both inside and outside the organization. True False 10. The compensation theory seeks to explain how managers differ from owners in using pay and other forms of compensation to effectively run the organization. True False 11. Owners are usually risk averse and may prefer conservative courses of action that minimize their chances of loss. True False 12. The base pay form of compensation is 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 earning 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 leaming organization, managers leam 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 retum 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