Answer to Question 1
Answer: Perceiving and interpreting people's behavior is a lot of work, so we use shortcuts to make the task more manageable. These techniques can be valuable when they let us make accurate interpretations quickly and provide valid data for making predictions. However, they aren't perfect.
It's easy to judge others if we assume that they're similar to us. In assumed similarity, the observer's perception of others is influenced more by the observer's own characteristics than by those of the person observed.
When we judge someone on the basis of our perception of a group he or she is part of, stereotyping is the shortcut being used.
When individuals form a general impression about a person on the basis of a single characteristic, such as intelligence, sociability, or appearance, the halo effect is the influencing factor.
Managers need to recognize that their employees react to perceptions, not to reality. So whether a manager's appraisal of an employee is actually objective and unbiased or whether the organization's wage levels are among the highest in the community is less relevant than what employees perceive them to be. If individuals perceive appraisals to be biased or wage levels as low, they will behave as if those conditions actually exist. Employees organize and interpret what they see, so there is always the potential for perceptual distortion.
Answer to Question 2
Answer: FALSE
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