Labour Relations
Final Exam Questions
Course Introduction
Labour Relations explores the dynamic relationship between employers, employees, and the organizations that represent them, such as unions and employer associations. The course covers key concepts in collective bargaining, dispute resolution, labour law, and workplace negotiation. Students will analyze the development of labour movements, the impact of industrial relations on organizational effectiveness, and contemporary issues such as globalization and changing workforce demographics. Through case studies and practical exercises, the course equips students with the tools to understand and navigate the complexities of labour-management interactions in various workplace settings.
Recommended Textbook
Strategic Compensation in 5th Canada Edition by Richard Long
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13 Chapters
590 Verified Questions
590 Flashcards
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Page 2
Chapter 1: A Road Map to Effective Compensation
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Sample Questions
Q1) A reward strategy is the plan for the mix of rewards to be provided to organization members along with the means through which they will be provided.
A)True
B)False
Answer: True
Q2) As a small business owner committed to the total rewards approach to compensation, what do you need to establish before you start to develop your compensation system?
A) a reward system
B) an incentive program
C) a compensation strategy
D) a reward strategy
Answer: D
Q3) Which of the following would be an example of an extrinsic reward?
A) interesting and meaningful work
B) pay for performance based on the number of units produced per hour
C) being able to see the company's product being used by a satisfied customer
D) work that allows for enhanced personal development
Answer: B
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Page 3
Chapter 2: A Strategic Framework for Compensation
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Sample Questions
Q1) You have been asked to explain to a manager the notion of structural variables within the context of a strategic framework for compensation. Which of the following variables would you elaborate on?
A) how work is divided into subtasks
B) the market the company serves
C) the level of differentiation in the products and services offered by the company
D) the company's products' life cycle
Answer: A
Q2) Supporters of the classical managerial approach to management assume employees are inherently lazy and require constant vigilance
A)True
B)False
Answer: True
Q3) According to the textbook, all five contextual variables are of equal importance
A)True
B)False
Answer: False
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Chapter 3: A Behavioural Framework for Compensation
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Sample Questions
Q1) Which of the following terms is used to describe the degree of urgency an individual attaches to the satisfaction of a particular need?
A) hierarchy of needs
B) need deprivation
C) needs analysis
D) need salience
Answer: D
Q2) Which of the following employee behaviours is appropriate for firms using a classical managerial strategy?
A) membership behaviour
B) organizational citizenship behaviour
C) task behaviour
D) all behaviours
Answer: C
Q3) Classical management strategies generally require a reward system that focuses on task behaviour.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) Which of the following is an example of mandatory indirect pay?
A) major health benefits such as medical coverage
B) registered retirement savings plans (RRSPs) benefits
C) employee services
D) workers' compensation benefits
Q2) Which of the following is NOT a key issue in competency-based pay systems?
A) identifying competencies that demonstrably affect performance
B) devising methods to measure achievement of each competency
C) providing learning opportunities
D) developing the merit pay grid
Q3) Johnny is compensated based on a rate of $25.00 per hour worked. Which of the following terms best describes the manner in which Johnny is compensated?
A) commission
B) wage
C) piece rate
D) salary
Q4) Briefly discuss the advantages and disadvantages of using indirect pay.
Q5) According to the text, what are the key conditions for using output-related pay?
Q6) Briefly explain the three methods for establishing base pay.
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Q7) Identify and briefly describe the issues in developing a skill-based pay system.
Chapter 5: Performance Pay Choices
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Sample Questions
Q1) Which of the following management strategies is likely to benefit from a suggestion bonus system set on a group basis?
A) innovator management strategy
B) classical management strategy
C) human relations management strategy
D) high-involvement management strategy
Q2) Identify and briefly explain the nature of individual performance pay plans.
Q3) As the owner of a real estate firm with multi-office operations, you provide a bonus to all sales personnel in the highest-producing office each month. What type of performance pay plan are you using?
A) goal-sharing
B) competitive bonus
C) pooled performance
D) group commissions
Q4) The concept of piece rates has its roots in the service industry as a way to compensate individual strong performance.
A)True
B)False
Q5) Identify and briefly define each of the three types of employee stock plans.
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Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) Which pair of job characteristics is likely associated with a high-involvement managerial strategy?
A) individual and low customer contact jobs
B) low task interdependence and narrow-in-scope jobs
C) simple and repetitious jobs
D) broad and creative jobs
Q2) You have been asked to provide recommendations to a compensation committee in their attempts to shift the CEO's compensation into a mix of rewards that facilitates and encourages a long-term view of business performance. What foci should your recommendations take?
Q3) A particular organization wants to explore the potential for converting many of their employees into contractors. Which of the following characteristics would potentially lead the Canada Revenue Agency to reject this change in classification?
A) The worker has the ability to refuse or accept work from the organization.
B) The company directs how and where the work should be completed.
C) The worker has control over who actually completes the work.
D) The worker can choose the manner in which the work is completed.
Q4) Briefly summarize the legislative framework that compensation must comply with.
Page 8
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Chapter 7: Evaluating Jobs: The Job Evaluation Process
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Sample Questions
Q1) It is strongly suggested that employees in organizations using a human relations management strategy should not actively participate in the development and process associated with job evaluations.
A)True
B)False
Q2) A job description serves several purposes, including providing guidance in the selection and recruitment process.
A)True
B)False
Q3) Which of the following is NOT one of the methods of job evaluation discussed in the text?
A) ranking method
B) forced distribution method
C) factor comparison method
D) statistical/policy capturing method
Q4) There are four main methods of conducting job analysis, which include: interviews, observation, questionnaires, and functional job analysis.
A)True
B)False
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Chapter 8: Evaluating Jobs: The Point Method of Job Evaluation
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Sample Questions
Q1) Which of the following practices is a threat to the integrity of the job evaluation system?
A) wider pay grades as the system goes up
B) equal dollar differences between the range midpoint and the range minimum, and between the range midpoint and the range maximum
C) wider range spreads for higher pay grades
D) excessive overlaps between pay ranges
Q2) Which of the following is an inevitable outcome of broadbanding?
A) There are increased labour costs, as everyone is paid more for specific jobs.
B) It decreases the level of flexibility within the pay grades.
C) It tends to lead to "skinny" pay grades.
D) Jobs with significantly different scores end up in the same "band."
Q3) Which of the following compensable factors would you include under the main category of "working conditions"?
A) requirements associated with being exposed to health hazards
B) requirements associated with educational levels
C) requirements associated being responsible for the safety of coworkers
D) requirements associated with having to produce certain levels of output
Q4) Discuss the advantages and disadvantages of the point method of job evaluation.
Page 10
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Chapter 9: Evaluating the Market
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Sample Questions
Q1) Our textbook identifies two in-house methods that may be used to collect compensation data. Which of the following is classified as a so-called "in-house" source?
A) formal surveys
B) government agencies
C) consultants
D) industry groups
Q2) How does the use of questionnaires to collect data compare to personal interviews and telephone interviews?
A) It is the most complete and efficient survey method.
B) It is the least expensive and least reliable survey method.
C) It is the most favourable and user friendly survey method.
D) It is the least efficient and most expensive survey method.
Q3) The compa-ratio is calculated by taking the average pay of all employees holding a particular job title and then dividing this by the midpoint of the pay range for that job.
A)True
B)False
Q4) Discuss some of the advantages and disadvantages of in-house surveys.
Q5) Briefly describe the process for analyzing and interpreting survey data.
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Chapter 10: Evaluating Individuals
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Sample Questions
Q1) A particular organization uses a forced ranking system to appraise employees. As a peer appraiser, why might an employee be tempted to give colleagues a low rating?
A) Rating errors can be balanced out.
B) A limited amount of merit pay is available.
C) Conflict and ill will among peers is reduced.
D) You can all benefit if you rate each other low.
Q2) Describe the conditions under which recognizing individual contribution levels may be essential.
Q3) John has fabulous interpersonal skills. This causes raters to ignore some of his weaknesses, which include time management, technical, and leadership skills. Which of the following perceptual errors is likely impacting John's rating?
A) central tendency error
B) halo error
C) leniency effect
D) contrast effect
Q4) Identify the key characteristics and advantages of 360-degree feedback appraisal system.
Q5) Define and describe the key elements of performance management.
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Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) Briefly describe the Scanlon Plan.
Q2) The authors identified eight major issues that should be considered when designing a gain-sharing plan. Which of the following potential issues is NOT identified by the authors of the textbook?
A) making a decision to include or exclude certain employees
B) making a decision on frequency of payouts
C) making a decision to use a fixed or discretionary plan
D) making a decision on how to communicate results
Q3) Which of the following plans motivates employees to find ways to reduce the costs of raw materials or any other purchased inputs?
A) Rucker
B) Scanlon
C) Improshare
D) combination profit sharing
Q4) Discuss the key issues in designing a nonmonetary reward plan.
Q5) In order for the Scanlon plan to work, organizations must be able to predict future cost of inputs, particularly labour.
A)True
B)False
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Chapter 12: Designing Indirect Pay Plans
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Q1) A force hindering flexible benefits plans is loss of economies of scale in the purchase of benefits.
A)True
B)False
Q2) Which of the following is NOT a government-regulated benefit?
A) outplacement services
B) rest breaks
C) vacation time
D) statutory holidays
Q3) Which of the following processes of evaluating benefits systems considers the net benefits associated with a particular benefit system?
A) competitive analysis
B) cost break-even analysis
C) cost analysis
D) employee surveys
Q4) It is not cost effective having employers purchase dental coverage on behalf of their employees.
A)True B)False
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Sample Questions
Q1) Why is it useful to conduct surveys of key employee attitudes before system implementation?
A) to provide information about the new system
B) to have a baseline for future comparisons
C) to solicit recommendations for changes
D) to create perception of employee involvement
Q2) In order to avoid resistance to a new compensation system, it a good practice to discontinue the usage of the old system before you have fully tested the new system. Otherwise, employees will gravitate to the old and familiar system. .
A)True
B)False
Q3) What is a major issue for most organizations when planning for information technology?
A) whether to use computers
B) whether to use consultants
C) how advanced the system should be
D) whether to protect employee privacy
Q4) Identify the four key aspects that need to be considered in planning the infrastructure for compensation administration.
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