

Labour Relations
Test Questions
Course Introduction
Labour Relations examines the dynamic relationship between employers, employees, and unions within the modern workplace. This course explores the historical context and legal frameworks shaping labour relations, including collective bargaining, dispute resolution, labour legislation, and the role of industrial action. Students will study the processes and strategies involved in negotiating collective agreements, managing workplace conflict, and promoting fair labour practices. Emphasizing both theoretical perspectives and real-world applications, the course prepares students to understand and navigate the complexities of labour relations in diverse organizational 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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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) A group of unionized employees negotiating a new contract is holding out for a better indirect pay plan. What should management offer the group in order to reach an agreement?
A) better services and benefits
B) better training and development opportunities
C) pay for performance
D) a more competitive base pay
Answer: A
Q2) Which statement best describes the term "reward strategy"?
A) the means through which performance bonuses are paid
B) the mix of rewards provided to organization members
C) the means for recognizing outstanding achievement
D) the means for identifying the key contextual variables for an organization
Answer: B
Q3) Evidence provided in the textbook appears to indicate a relationship between the level of stock options provided to executives and the risk those executives are prepared to undertake.
A)True
B)False
Answer: True
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Chapter 2: A Strategic Framework for Compensation
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45 Flashcards
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Sample Questions
Q1) Which of the following rewards are normally associated with a high-involvement managerial strategy?
A) high levels of pay and benefits
B) providing employees with the opportunity to grow professionally
C) providing employees with a pleasant team environment
D) promotions based on a high level of production
Answer: B
Q2) You have recently been hired by a manufacturing company in Vancouver, British Columbia. You conclude that the company is using a high-involvement management strategy. Which of the following variables would you review to support your aforementioned conclusion?
A) structural variables
B) organizational policies and procedures
C) contextual variables
D) behaviours of managers
Answer: A
Q3) An organization's domain is simply another term for managerial strategy or plan.
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 refers to content theories of motivation?
A) theories based on reinforcement theories
B) theories that focus on managerial strategies
C) theories that focus on understanding the means by which people make choices
D) theories that focus on human needs
Answer: D
Q2) The key employee attitudes are flexibility, citizenship, and individual goal commitment.
A)True
B)False
Answer: False
Q3) A behavioural framework provides a conceptual toolkit for understanding which aspect of compensation?
A) the organizational context within which compensation management takes place
B) the managerial strategy that best fits an organization
C) how the structural variables interact to produce employee behaviour
D) the behaviour that various compensation plans will likely produce
Answer: D
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5

Chapter 4: Components of Compensation Strategy
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Sample Questions
Q1) Which of the following is a reason why employees may prefer base pay over performance pay?
A) Performance pay is more predictable.
B) Base pay is directly related to their performance level.
C) They dislike uncertainty about their compensation.
D) Market conditions are always changing.
Q2) Which of the following steps is NOT considered part of formulating the compensation strategy?
A) determining actual dollar values for jobs and individual employees
B) determining the total level of compensation to provide
C) determining how each of the mix choices should be structured
D) determining the mix of compensation components
Q3) 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
Q4) Explain why organizations pursuing a high-involvement management strategy may find the notion of offering indirect pay to employees somewhat problematic and at odds with the principles of high involvement?
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Chapter 5: Performance Pay Choices
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Sample Questions
Q1) Which of the following characteristics of profit-sharing plans may be viewed as negative from the perspective of an employer?
A) They align employee and employer interests.
B) They eliminate the "free rider" principle by holding everyone accountable.
C) They are more complex than gain-sharing plans.
D) They require the sharing of potentially confidential information with employees.
Q2) A publically traded Canadian corporation provides employees with one year of continuous service and the opportunity to place 6% of their pre-tax income in a plan that may be invested in the company's stock. Furthermore, the company matches the shares by 50% up to a limit of 4% of the employees' pre-tax income. From the perspective of the employee, what are the potential drawbacks of participating in this program?
A) Administrative costs associated with these plans are normally very high.
B) It is extremely difficult for an employee to determine the performance of their stock.
C) They pose too much of a tax burden.
D) If the company does poorly, your job and savings may be at risk.
Q3) Identify and briefly define each of the three types of employee stock plans.
Q4) Identify and briefly explain the nature of individual performance pay plans.
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7

Chapter 6: Formulating the Reward and Compensation Strategy
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Sample Questions
Q1) In Canada, organizations face numerous legislated constraints creating so-called "boundaries" to their compensation systems. Which of the following is NOT categorized as a legislated constraint or boundary?
A) Employment Standards Act or the Canada Labour Code
B) Human Rights Act
C) management strategy constraints
D) income tax, both individual and corporate
Q2) When we discuss labour market constraints, what are we specifically referring to?
A) union constraints on labour allocation
B) availability of employees versus demand
C) cost-of-living constraints on pay demands
D) managerial strategy in recruitment methods
Q3) Which of the following should be your first step when starting an organization's compensation formulation process?
A) Define the required behaviour.
B) Determine the compensation mix.
C) Evaluate the proposed strategy.
D) Determine the compensation level.
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Chapter 7: Evaluating Jobs: The Job Evaluation Process
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Sample Questions
Q1) Identify and briefly explain the main methods used to obtain the information necessary for effective job evaluation.
Q2) 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
Q3) There are four main methods of conducting job analysis, which include: interviews, observation, questionnaires, and functional job analysis.
A)True
B)False
Q4) 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
Q5) What should a job description contain if it is to be useful for job evaluation?
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Page 9

Chapter 8: Evaluating Jobs: The Point Method of Job Evaluation
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Sample Questions
Q1) The final step in developing a job evaluation system using a point method requires that the job hierarchy scheme meet certain criteria, including validity and market fit.
A)True
B)False
Q2) After plotting a regression (market line), you determine that the slope is very steep. What possible conclusion can you make from observing the slope of the regression line?
A) The correlation coefficient is approaching -1 (negative one).
B) There is too much spread in job evaluation points between low-value and high-value jobs.
C) There is not sufficient spread in job evaluation points between low-value and high-value jobs.
D) Lower-value jobs appear to be compensated above market rates.
Q3) Under pay equity legislation, organizations need to evaluate three out of the four main categories of compensable factors in evaluating jobs.
A)True
B)False
Q4) What criteria are used to determine movement through the pay range?
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Chapter 9: Evaluating the Market
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Sample Questions
Q1) What are three of the main "third-party" sources of compensation data?
A) Statistics Canada, trade journals, and government agencies
B) private agencies, trade journals, and government agencies
C) government agencies, industry groups, and consulting firms
D) consulting firms, boards of trade, and publishers
Q2) Which of the following is NOT a possible limitation of compensation surveys?
A) Free labour market data is not readily available.
B) We cannot surmise anything about compensation strategies practised by other firms.
C) They may misrepresent actual pay trends.
D) Markets may not value jobs fairly.
Q3) 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.
Q4) Discuss some of the advantages and disadvantages of in-house surveys.
Q5) Identify and briefly describe the four main steps in conducting a compensation survey.
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Chapter 10: Evaluating Individuals
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Sample Questions
Q1) Define and describe the key elements of performance management.
Q2) Which of the following is NOT a source of performance appraisals?
A) supervisors
B) board of directors
C) subordinates
D) professional raters
Q3) Which source of appraisals can be expected to work well only in classical organizations?
A) peers
B) supervisors
C) self
D) subordinates
Q4) What performance appraisal method requires that management identify specific characteristics relevant to good job performance, and is described as simplistic, while suffering from reliability and validity issues?
A) behavioural observation scales
B) management by objectives
C) behaviourally anchored rating scales
D) graphic rating scales
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Chapter 11: Designing Performance Pay Plans
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Sample Questions
Q1) Which of the following statements regarding employee share purchase plans is NOT correct?
A) Employees receive shares at no cost to themselves, usually as a bonus.
B) Employees provide a direct payment of some sort in exchange for the shares.
C) Often the price employees pay for the shares is less than market value.
D) Often employers will match the amount of shares purchased by the employee up to a set limit.
Q2) Which of the following bonus allocation methods best supports the philosophy of gain sharing?
A) Everyone receives an equal share after minor adjustments are made for time worked.
B) Higher performers receive a greater share.
C) Higher-paid employees receive a greater share.
D) Part-time and newly hired employees receive nothing.
Q3) A rolling baseline goes up each year there is a productivity gain, and last year's productivity becomes the new baseline.
A)True
B)False
Q4) Identify how design issues for stock plans differ for private corporations.
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Page 13

Chapter 12: Designing Indirect Pay Plans
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Sample Questions
Q1) What component of a company's benefits package is second only to mandatory benefits in terms of cost for an organization?
A) employment assistance programs
B) wellness and recreational plans
C) retirement plans
D) pay for time not worked plans
Q2) Which of the following is NOT a government-regulated benefit?
A) outplacement services
B) rest breaks
C) vacation time
D) statutory holidays
Q3) Experts will support the notion that employee participation in the process of designing a benefits plan is highly desirable. Which of the following goals do experts NOT identify as a positive outcome of having employee involvement?
A) better understanding of needs
B) support mechanism in communicating the plan
C) increased level of acceptance
D) decreased overall plan costs
Q4) Identify and briefly explain the most common and important employee services.
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Chapter 13: Activating and Maintaining an Effective Compensation System
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Sample Questions
Q1) Which of the following is NOT one of the steps in implementing the compensation system?
A) Establish the implementation task forces.
B) Decide on the compensation level.
C) Test the system.
D) Conduct the training.
Q2) What main indicators should firms examine in the process of examining compensation costs?
A) budgeted costs and actual costs
B) compensation cost ratios and budget ratios
C) net profit per employee and average employee earnings
D) compensation cost ratios and average employee earnings
Q3) Which of the following statements about developing a communication plan to introduce a new compensation system is NOT true?
A) Employees need to know the rationale behind the change.
B) Ensure it is an on-going process; communicate often.
C) Various modes of communications should be used.
D) It is often a recipe for failure if frontline managers are told of impending changes early in the process.
15
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