Exhibit 11-5 -Reputation and Cooperation Are More Difficult to Achieve When

question 22

Multiple Choice

Exhibit 11-5
-Reputation and cooperation are more difficult to achieve when

• A)firms find it difficult to observe the behavior of other firms.
• B)a game is repeated.
• C)there are only two firms as opposed to three or more firms.
• D)firms can easily observe what other firms are doing.
• E)firms act out of their own self-interest.

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Definitions:

Job Embeddedness

The degree to which an employee is attached to their job and company, influencing their likelihood to stay.

Functional Turnover

The departure of employees who are performing poorly or are a poor fit for their jobs, which can be beneficial for the organization by potentially increasing productivity and efficiency.

Affective Commitment

Affective commitment refers to an employee's emotional attachment to, identification with, and involvement in the organization they work for.

Progressive Discipline

A process of dealing with job-related behavior that does not meet expected and communicated performance standards, starting with the least severe action to address the issue.