Labor Relations Test Bank - 1442 Verified Questions

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Labor Relations

Test Bank

Course Introduction

Labor Relations explores the dynamic relationship between employers, employees, and their representatives within the framework of labor law and collective bargaining. The course examines the history and development of labor unions, the processes of negotiation and dispute resolution, and the roles of management and labor in shaping workplace conditions. Students will analyze current issues such as grievance procedures, labor contracts, union organizing, and the impact of globalization on labor movements. Through case studies and real-world examples, the course aims to provide a comprehensive understanding of the strategies and challenges involved in maintaining productive and fair labor-management relationships.

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Compensation 10th Edition by George

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1442 Verified Questions

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Chapter 1: The Pay Model

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Sample Questions

Q1) Which of the following decisions directly affects employees' attitudes and work behaviors?

A) Employee contributions

B) Internal alignment

C) External competitiveness

D) Management

Answer: A

Q2) Which of the following policy choices has the greatest effect on employees' decisions to stay with the organization and to seek additional training and responsibilities?

A) External competitiveness

B) Employee contributions

C) Internal alignment

D) Job evaluation

Answer: C

Q3) List the basic elements of the pay model.

Answer: The pay model contains three basic building blocks: i.the compensation objective, ii.the policies that form the foundation of the compensation system,and iii.the techniques that make up the compensation system.

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Chapter 2: Strategy: The Totality of Decisions

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Sample Questions

Q1) A strategy map contains strategies about all but which of the following?

A) External competitiveness

B) Management

C) HR alignment

D) Employee contributions

Answer: C

Q2) Which of the following is not one of the tests to determine if a pay strategy is a source of competitive advantage?

A) Alignment of the pay system with the organization's business strategy

B) Differentiation of an organization's strategy from its competitors

C) Internal alignment of the pay strategy with the organization's strategy

D) External competitiveness of the pay system

Answer: D

Q3) Define defenders and prospectors as referred to by Miles and Snow.

Answer: According to Miles and Snow,defenders are those firms that operate in stable markets and compete on cost,and prospectors are firms that are more focused on innovation and new markets.

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Chapter 3: Defining Internal Alignment

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Sample Questions

Q1) There is evidence that a relatively poor performing team member's performance will improve under a(n)_____ pay structure.

A) egalitarian

B) hierarchical

C) bureaucratic

D) loosely-coupled

Answer: A

Q2) The modern concept of a "living wage" is most similar to _____.

A) marginal productivity wage

B) exchange value

C) just wage doctrine

D) bourse

Answer: C

Q3) Which of the following is not one of the changes in organization design that may affect pay structures?

A) Outsourcing

B) Dual careers

C) Delayering

D) Temporary workers

Answer: B

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Chapter 4: Job Analysis

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Sample Questions

Q1) List the major decisions in designing a job analysis.

Q2) Professional/managerial jobs often have less detailed job descriptions since their jobs have more discretion and latitude.

A)True

B)False

Q3) According to government procedures of the job analysis process,the first interview should be conducted with the _____.

A) incumbent's supervisor

B) incumbent

C) HR manager

D) incumbent's co-workers

Q4) Which of the following would not be included in job identification information in a job analysis?

A) Job title

B) Department in which job is located

C) Number of people who hold job

D) Current pay level

Q5) How is validity important in judging job analysis?

Q6) Discuss the ways information can be collected.

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Chapter 5: Job-Based Structures and Job Evaluation

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Sample Questions

Q1) Which of the following is not a factor indicating a pay structure is aligned?

A) Fits the external labor market

B) Supports organization strategy

C) Is fair to employees

D) Motivates behavior toward organization objectives

Q2) An advantage of the position analysis questionnaire for job evaluation is that it can be applied to a wide depth and breadth of work.

A)True

B)False

Q3) A job description is compared to class descriptions.This describes the _____ method of job evaluation.

A) position analysis questionnaire

B) point

C) Hay Guide Chart-Profile

D) classification

Q4) Common characteristics of the point method include all of the following except:

A) benchmark factor classes.

B) numerically scaled factor degrees.

C) factor weights.

D) compensable factors.

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Chapter 6: Person-Based Structures

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Q1) Transactional work is typically paid more than tacit work.

A)True

B)False

Q2) Which of the following regarding skill-based pay is false?

A) Employees have control over their development.

B) Training is a source of complaints.

C) Less supervision is required.

D) Training costs are low.

Q3) Validity refers to the degree to which the evaluation assesses the relative worth of jobs to the organization.

A)True

B)False

Q4) Routine work is also termed _____.

A) transactional work.

B) hygiene work.

C) tacit work.

D) system work.

Q5) Which are the major skill-analysis decisions?

Q6) What is the relevance of certification in a multiskill system?

Q7) How are organizations redefining the original definition of competencies?

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Chapter 7: Defining Competitiveness

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Sample Questions

Q1) The study referred to in the text on how managers make wage adjustment decisions found:

A) level of unemployment had a major effect

B) profitability affected the overall pay budget

C) managers believed efficiency wage theory

D) managers believed higher pay makes supervision easier

Q2) There is no single "going rate" in the labor market for a specific job.

A)True

B)False

Q3) If Company A raises its pay rate one dollar per hour to hire additional workers and competitors immediately match the increase,what is the most likely result?

A) Higher labor costs for Company A,but not more workers

B) Company A will hire the needed workers at the higher wage rate

C) Competitors will lose employees to Company A

D) Company A will hire higher quality workers

Q4) Explain external competitiveness.

Q5) What explains the upward sloping supply under the human capital theory?

Q6) What are the basic assumptions of labor market theories?

Q7) What is the relevance of signaling in compensation systems?

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Chapter 8: Designing Pay Levels, mix, and Pay Structures

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Sample Questions

Q1) A market pay line _____.

A) reflects an organization's internal alignment policy

B) links a company's benchmark jobs with market rates paid by competitors

C) provides an accurate prediction of an organization's entry level pay rates

D) compares an organization's minimum and maximum pay rates for each skill level

Q2) Career moves between bands are more common than within bands.

A)True

B)False

Q3) How is a relevant labor market defined?

Q4) Who should be involved in designing a compensation survey?

Q5) All of the following are examples of potential anomalies except _____.

A) outliers

B) a large variation in base pay for a job at one company

C) one company dominates the results

D) a large variation in average base pay for a job across companies

Q6) In a survey,employees' views reveal what they think about their pay.

A)True

B)False

Q7) What is a market line?

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Q8) Explain the difference between standard deviation and quartiles and percentiles.

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Chapter 9: Pay-For-Performance: the Evidence

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Sample Questions

Q1) A key factor in increasing trust in top management is _____.

A) an acceptable appraisal system

B) high base pay

C) stock options

D) a well-designed piece rate system

Q2) Briefly explain the concept of cafeteria-style or flexible compensation.

Q3) _____ theory argues that performance-based pay is best for complex jobs where monitoring employee performance is difficult.

A) Reinforcement

B) Goal setting

C) Agency

D) Expectancy

Q4) Risk-sharing plans include a provision for cuts in base pay that are only recaptured in years when the organization meets performance objectives.

A)True

B)False

Q5) Blue-collar workers feel pay increases should be based upon performance.

A)True

B)False

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Chapter 10: Pay-For-Performance Plans

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Sample Questions

Q1) The level problem in team compensation is an example of the line of sight problem.

A)True

B)False

Q2) In which of the following incentive pay plans does the wage rate not increase for production above the standard?

A) Standard hour plan

B) Rowan plan

C) Taylor plan

D) Merrick plan

Q3) All of the following factors except _____ have been associated with success of Scanlon/Rucker plans.

A) the presence of a union

B) managers open to criticism

C) competent supervision

D) cooperative union-management attitudes

Q4) The free-rider problem is common in firms using individual incentive plans.

A)True

B)False

Q5) Discuss SVOP.

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Chapter 11: Performance Appraisals

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Sample Questions

Q1) List the areas of errors in the performance appraisal process.

Q2) The main problem of use of merit pay is how to get employees to view raises as a reward for performance.

A)True

B)False

Q3) Which is the most popular appraisal method which uses outcomes as a standard?

Q4) Rankings are more popular among managers than ratings as they are less complex and uni-dimensional.

A)True

B)False

Q5) All of the following are categories of rater training except _____ training.

A) rater-error

B) performance-standard

C) behavior modeling

D) performance-dimension

Q6) Describe the paired comparison method of appraisal.

Q7) 360-degree feedback is used primarily with managers and other high-level employees.

A)True

B)False

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Chapter 12: The Benefit Determination Process

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Sample Questions

Q1) The total cost of employee benefits in the U.S.is _____ dollars.

A) two trillion

B) one trillion

C) five trillion

D) one billion

Q2) Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____.

A) vacation days;dental plans

B) profit-sharing plans;life insurance

C) retirement benefits;paid vacations

D) pensions;medical coverage

Q3) A major approach to increasing employee awareness of health care choices and cost is:

A) customer-driven health care.

B) cafeteria plans.

C) large deductibles.

D) large co-pays.

Q4) What are some of the common cost-containment practices with regard to benefits administration?

Q5) List some examples of customer-driven healthcare benefits packages.

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Chapter 13: Benefit Options

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Sample Questions

Q1) All of the following are ways to control unemployment taxes except:

A) dismiss employees "for just cause" rather than by layoffs.

B) implement good human resource planning.

C) step up enforcement of sanctions against fraudulent claims.

D) monitor claimant behavior after termination.

Q2) An account set up to cover part of a high health care deductible is a:

A) POS.

B) flexible spending account.

C) PCA.

D) PPO.

Q3) An employer seeking to use pensions to reduce turnover is likely to prefer:

A) fully vested after three years.

B) vesting 20 percent after 2 years and 20 each year thereafter.

C) fully vested after two years.

D) vesting schedules are unlikely to affect turnover.

Q4) Of the many benefit claims,temporary total disability is the most frequent.

A)True

B)False

Q5) What is the central challenge of social security payments? How are they tackled?

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Q6) Explain the eligibility for unemployment insurance.

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Chapter 14: Compensation of Special Groups

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Sample Questions

Q1) What are the types of conflict faced by supervisors?

Q2) Contingent workers are usually considered candidates for special compensation.

A)True

B)False

Q3) Research shows that the best predictor of executive pay,by far,is _____.

A) firm size

B) the number of "insiders" on the board of directors

C) the industry in which the firm operates

D) firm performance

Q4) Incentive stock options may be deducted as a company expense.

A)True

B)False

Q5) Which of the following is an example of a popular perk offered to executives?

A) Loans at low or no interest

B) Office space at a company business location

C) An executive dining room

D) Additional secretarial services devoted to company matters

Q6) Independent contractors typically earn less than other contingent workers.

A)True

B)False

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Chapter 15: Union Role in Wage and Salary Administration

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Sample Questions

Q1) Workers begin to show a strong interest in joining a union when _____.

A) management is not unreliable

B) workplace relations are bad

C) workers feel they have influence over decisions affecting them

D) it is a condition of employment

Q2) Which of the following is true regarding a profit-sharing plan?

A) It prevents union members from sharing the wealth.

B) It creates a difficulty in maintaining employment levels in marginal organizations.

C) It becomes ineffective when union members participate in plan development.

D) Not all unions would be in favor of this type of plan.

Q3) Which of the following plans aligns workers and management in efforts to streamline operations and cut costs?

A) Employee stock ownership plans

B) Pay-for-knowledge plans

C) Gain-sharing

D) Profit-sharing

Q4) Most unions would agree that profit-sharing plans benefit employees.

A)True

B)False

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Chapter 16: International Pay Systems

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Sample Questions

Q1) Individualism is _____.

A) the degree to which individuals are supposed to look after themselves or remain integrated into groups,usually around the family

B) the distribution of emotional roles between the genders

C) the extent to which a culture programs its members to accept delayed gratification of their emotional needs

D) the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations

Q2) Seventy-seven percent of expats have less disposable income when they return.

A)True

B)False

Q3) In designing pay systems to fit the cultures of other countries,the important question is,"What are the cultural differences among nations?"

A)True

B)False

Q4) Explain the dimensions of national cultural attributes proposed by Hofstede.

Q5) Briefly summarize the degree to which the social contract constrains the employment relationship in organizations with an example.

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Chapter 17: Government and Legal Issues in Compensation

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Sample Questions

Q1) _____ prohibits discrimination on the basis of race,color,religion,sex,or national origin.

A) Executive Order 11458

B) The FMLA

C) Executive Order 11246

D) The Rehabilitation Act

Q2) Which of the following regarding child labor is not true?

A) Persons under 18 cannot work in hazardous occupations such as logging and mining

B) Persons under 16 cannot work in jobs involving interstate commerce unless working for a parent or guardian

C) The ILO finds that on a global basis child labor is increasing

D) The highest rates of child labor are in sub-Saharan Africa

Q3) The best evidence of true pay discrimination are statistical studies that account for gender differences in pay using legitimate factors.

A)True

B)False

Q4) What is the Fair Labor Standards Act of 1938? What are its major provisions?

Q5) What are the four basic steps in establishing a comparable-worth plan?

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Chapter 18: Management: Making It Work

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Sample Questions

Q1) Briefly summarize compa-ratios.

Q2) _____ is a common effect of layoffs.

A) Lower financial gains than expected

B) Unfavorable short-term stock prices

C) Higher morale among remaining employees

D) Productivity gains

Q3) A compa-ratio greater than 1 typically means that _____

A) the intended policy line has been violated

B) employees are overpaid

C) most employees are new entrants

D) turnover is high

Q4) If a company pays above the market for only one of five jobs,total compensation for these jobs may be above competitors.

A)True

B)False

Q5) _____ are to broad bands as minimums,midpoints,and maximums are to pay ranges.

A) Gray fields

B) Band-guides

C) Reference rates

D) Gray ranges

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