Industrial Relations
Final Exam Questions
Course Introduction
Industrial Relations explores the complex relationships between employers, employees, trade unions, and government organizations within the world of work. This course examines the historical development, legal frameworks, and contemporary issues that shape the dynamics of workplaces, including collective bargaining, dispute resolution, labor legislation, and human resource management. Through case studies and theoretical models, students gain insights into conflict management, negotiation strategies, and the impact of globalization and technology on workforce relations, equipping them to understand and address real-world challenges in modern industrial environments.
Recommended Textbook
Strategic Compensation A Human Resource Management Approach 7th Edition by Joseph J. Martocchio
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Page 2
Chapter 1: Strategic Compensation: A Component of Human Resource Systems
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Q1) These describe the terms of employment that are set between management and union bargaining representatives.
A) employee relationship agreements
B) collective bargaining agreements
C) joint employment agreements
D) workplace requisite agreements
Answer: B
Q2) What is pay-for-knowledge plan? Explain the role of training in pay-for-knowledge plans.
Answer: Pay-for-knowledge programs reward managerial,service,or professional workers for successfully learning specific curricula.This type of pay systems reward employees for the range,depth,and types of knowledge they are capable of applying to their jobs.Designing and implementing training programs are crucial in the success of pay-for-knowledge programs.Through training programs,employees learn the necessary skills and knowledge for performing their job,and this in turn increases their pay.In this type of pay systems,training is necessary rather than optional.
Q3) ________ pay systems reward employees with base pay raises according to their length of service on the job.
Answer: Seniority
Page 3
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Chapter 2: Contextual Influences on Compensation Practice
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Q1) These programs granted income to workers who were unable to work due to injuries sustained while on the job.
A) sick leave
B) FMLA
C) workforce restitution
D) workers' compensation
Answer: D
Q2) The ________ of 1963 makes it illegal to pay one sex more than the other for equal work performed.
Answer: Equal Pay Act
Q3) Which of the following is NOT a protected characteristic by Title VII of the Civil Rights Act of 1964?
A) sexual orientation
B) race
C) national origin
D) gender
Answer: A
Q4) Congress creates and passes laws within the ________ branch of the American government.
Answer: legislative
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Chapter 3: Traditional Bases for Pay: Seniority and Merit
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Q1) This term refers to a difference between the output of a human judgment process and that of an objective,accurate assessment.This difference could be due to bias,prejudice,or other subjective,extraneous influences.
A) content validity
B) rating error
C) the performance appraisal process
D) a first-impression effect
Answer: B
Q2) A manager expects high levels of performance from a newly hired employee,Ashley,as she graduated from a prestigious Ivy League university.A year later,the manager rates Ashley's job performance higher than her actual performance due to his initial belief.What kind of rater error was made by the manager?
A) negative halo effect
B) first-impression-effect
C) positive halo effect
D) contrast errors
Answer: B
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Chapter 4: Incentive Pay
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Q1) Which gain sharing plan bases incentives on the ratio between labor costs and sales value of production (SVOP)?
A) Rucker Plan
B) referral plan
C) Scanlon Plan
D) Improshare
Q2) XYZ Company pays a portion of company profits to its employees.The management offers this incentive plan as one kind of retirement program.What kind of companywide incentive plan does XYZ Co.offer?
A) employee stock ownership plan
B) deferred profit sharing plan
C) current profit sharing plan
D) employee stock option plan
Q3) This incentive plan has a buy-back provision.
A) ESOPs
B) Rucker
C) Improshare
D) Scanlon
Q4) Another name for incentive pay is ________ pay.
Q5) Compare and contrast individual and group incentive plans.
Page 6
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Chapter 5: Person-Focused Pay
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Q1) This term refers to the level of specialization or expertise an employee possesses in a particular job.
A) vertical skills
B) depth of skills
C) breadth of skills
D) horizontal skills
Q2) A ________ encourages employees to develop skills and learn to perform jobs from different job families.
Q3) Compare and contrast horizontal skills,vertical skills,and depth of skills.
Q4) In a TV set manufacturing facility of XYZ Inc.,although there are different assembly lines in which workers focus on certain aspects of production,senior line workers are capable of producing the TV sets from start to finish.Senior workers' capability of doing the entire operation from start to finish is an example of which following term?
A) vertical skills
B) feedback
C) autonomy
D) task identity
Q5) Person-focused pay programs depend in large part on well-designed ________ programs.
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Chapter 6: Building Internally Consistent Compensation Systems
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Q1) What type of jobs provide reference points to judge against other jobs within a company?
A) standardized jobs
B) high-value jobs
C) benchmark jobs
D) hierarchical jobs
Q2) After completing the job analysis,your boss has asked you to conduct a job evaluation of the various positions in the company.Detail the steps you would take in accomplishing this task.
Q3) This overview concisely summarizes the job with two to four descriptive statements.
A) job summary
B) job duties
C) job titles
D) job preview
Q4) A ________ is a collection of tasks constituting the total work assignment of a single worker.
Q5) ________ information describes physical and social factors that influence the nature of work.
Q6) ________ describe preferences for work environments and outcomes.
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Chapter 7: Building Market-Competitive Compensation Systems
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Q1) The market ________ policy most closely follows the typical market pay rates because companies pay according to the market pay line.
Q2) Compensation professionals in XYZ Company use regression analysis to determine the pay rates of its marketing professionals.There are 4 different marketing job titles in XYZ Company.Compensation professionals use job evaluation points assigned to each marketing job title and a salary survey data.In other words,they regress job evaluation points on the salary data.What does it mean when the R2 value of this regression turns out to be 0.85?
A) All of the variation in market pay can be explained by the company's job structure.
B) None of the variation in market pay can be explained by the company's job structure.
C) A large amount of the variation in market pay can be explained by company's job structure.
D) A small amount of the variation in market pay can be explained by company's job structure
Q3) Elaborate on the link between a company's pay level policy and its strategic mandate.
Q4) The ________ is the middle value in an ordered sequence of numerical data.
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Chapter 8: Building Pay Structures that Recognize
Individual Contributions
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Q1) A ________ is the difference between the maximum and minimum pay rates of a given pay grade.
Q2) This term describes a set of skills necessary to perform a specific job or a group of similar jobs.
A) skill range
B) skill grade
C) skill block
D) skill structure
Q3) The HR manager of a company thinks that they have too many narrow pay grades within the organization.By getting the support from upper management,they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation.This is an example of which pay structure variation?
A) broadbanding
B) two-tier pay system
C) pay compression
D) multiple-tier pay system
Q4) ________ is a form of compensation based upon a percentage of the selling price of a product or service.
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Chapter 9: Discretionary Benefits
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Q1) An ________ refers to the minimum amount of time that an employee must wait after becoming disabled before disability insurance payments begin.
Q2) Full or partial reimbursement of training costs is which type of benefit?
A) financial assistance
B) employee assistance
C) tuition reimbursement
D) sabbatical leave
Q3) This policy allows employees to schedule time off without having to justify the reasons,and is more effective in controlling absenteeism than other types of absence control policies.
A) personal paid time off
B) social service leaves
C) sick leaves
D) integrated paid time off
Q4) By what percentage have total healthcare expenditures risen since 1960?
A) 100%
B) 500%
C) 2000%
D) 5000%
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Chapter 10: Employer-Sponsored Retirement Plans and Health Insurance Programs
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Q1) Common HMO copayment amounts for each doctor's visit vary between?
A) $15-$50
B) $0-$3
C) $50-$75
D) $100-$150
Q2) These types of insurance plans are set up to cover things like dental care,vision care,and prescription drugs.
A) flexible savings plans
B) flexible services accounts
C) carve-out plans
D) health services accounts
Q3) These represent a series of payments for the life of the participant and beneficiary.
A) collateral payments
B) periodic payments
C) lump sum distributions
D) annuities
Q4) ________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.
Q5) Compare and contrast defined contribution plans with defined benefit plans.
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Chapter 11: Legally Required Benefits
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Q1) In 2009,Carnation Candles had 100 employees.Approximately how much did the legally required benefits cost the company that year?
A) $650,000
B) $580,000
C) $890,000
D) $440,000
Q2) Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.
Q3) What is the only state where employers are not required to fund workers' compensation programs?
A) Michigan
B) New York
C) Texas
D) Oregon
Q4) ________ plans emphasize cost control by limiting an employee's choice of doctors and hospitals,and often pay a higher level of benefits if health care is received from approved providers.
Q5) ________ specify insurance rates based on classifications of businesses.
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Chapter 12: Compensating Executives
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Q1) ________ bonuses are awarded to executives by boards of directors on an elective basis.
Q2) These rights provide employees with an opportunity to purchase a number of stocks at a designated price within a specified period of time.
A) stock option
B) stock grant
C) disposition
D) exercise of one's grant
Q3) The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means she has at least one of which of the following qualifications in the preceding year?
A) 1% owner in the top paid employee group
B) 5% owner in the top paid employee group
C) made over $50,000
D) made over $75,000
Q4) The actions of executives on behalf of their own self-interest are known as the ________ problem.
Q5) Shareholders' interests are represented by a ________ who weigh the pros and cons of top executives' decisions.
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Chapter 13: Compensating the Flexible Work Force:
Contingent Employees and Flexible Work Schedules
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Q1) With ________ arrangements,temporary employees generally do not work for more than one year,and the hiring companies are the temporary workers' legal employers.
Q2) Most contingent workers were employed as what,in 2005?
A) on-call employees
B) temporary employees
C) leased employees
D) independent contractors
Q3) According to the most recent data as of this book's publishing,what percentage of the U.S.civilian labor force did contingent and flextime-schedule employees comprise?
A) 4.8%
B) 14.2%
C) 27.5%
D) 48.7%
Q4) Companies must use the IRC's ________ test to determine whether individuals are employees or independent contractors.
Q5) ________ allows for an alternative work arrangement in which employees are able to work at home or at an alternate location besides the office.
Page 15
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Chapter 14: Compensation Expatriates
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Q1) ________ is the increase in prices for consumer goods and services.
Q2) These represent additional paid time off for employees working in hardship locations.
A) rest and relaxation leave benefits
B) permissible premiums
C) foreign service premiums
D) chillaxtion time
Q3) What happens under tax equalization?
A) Expatriates realize tax benefits whenever actual taxes are less than the hypothetical tax.
B) The employee pays the foreign income tax, but not the U.S. government tax.
C) Employers reimburse expatriates for the difference between the hypothetical tax and the actual income tax.
D) The employer takes the responsibility for paying the income tax on behalf of the expatriates.
Q4) If the local index in Tegucigalpa,Honduras is 99,what does that mean?
A) the cost of living in Tegucigalpa is 1% lower than in Washington, D.C.
B) the cost of living in Tegucigalpa is 99% lower than in Washington, D.C.
C) the cost of living in Tegucigalpa is 1% higher than in Washington, D.C.
D) the cost of living in Tegucigalpa is 99% higher than in Washington, D.C.
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Chapter 15: Pay and Benefits Outside the United States
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Q1) Xue has been working at an electronics manufacturing plant in China for the last 5 years.Which one of the following should NOT be true regarding her paid time off benefits?
A) She is entitled to "home leave" as her husband lives in another city in China.
B) Her employer is obliged to pay all her travel expenses when she visits her husband who lives in another city.
C) She is entitled to a minimum of 90 days maternity leave.
D) During an employer-approved medical treatment period, her salary is based on 50% of the local minimum wage.
Q2) The average hourly cost to pay a manufacturing worker in the United States in 2007 was how much?
A) $17.23
B) $24.91
C) $33.53
D) $48.18
Q3) Why is it important for HR and compensation professionals to learn about compensation practices in other parts of the world? Discuss.
Q4) In 2010,________ is the largest economy in Asia (and growing rapidly).
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Chapter 16: Challenges Facing Compensation
Professionals
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Q1) Briefly discuss the uncertainties brought by health care reform and changing workforce demographics.
Q2) Jane holds a bachelor's degree in sociology.She works as a part-time taxi driver.This situation is an example of which of the following?
A) malemployment
B) overstaffing
C) discrimination
D) unemployment
Q3) List the four challenges for compensation professionals.Among these,describe the challenges brought by wage issues in China.
Q4) Which one of the following is NOT true about labor participation rate?
A) Labor participation rate for younger workers is expected to decline.
B) Labor participation rate for older workers is expected to rise.
C) Labor participation rate for women is expected to increase slightly.
D) Labor participation rate for men is expected to increase slightly.
Q5) ________ measures the purchasing power of a dollar.
Q6) ________ is a situation in which a worker possesses more qualifications,skill,and education than is required by his/her existing job.
Page 18
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