Industrial Relations
Textbook Exam Questions
Course Introduction
Industrial Relations examines the complex relationships between employers, employees, trade unions, and the government within the workplace. The course explores the historical development of industrial relations, the roles and functions of key stakeholders, and the legal and institutional frameworks that govern employment relationships. Students will analyze conflict resolution, collective bargaining, labor law, and strategies for promoting effective communication and cooperation in the workplace. Emphasis is placed on understanding contemporary issues such as globalization, labor market reforms, and evolving work patterns to equip students with the knowledge and skills needed to navigate and manage industrial relations in diverse organizational settings.
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Labor Relations Development Structure Process 12th Edition by John A. Fossum
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Chapter 1: Introduction
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Q1) Which of the following is true about unionization?
A) There are no differences in the degree of unionization across industries and occupations.
B) It is more prevalent where jobs require employee-specific knowledge.
C) It creates monopoly power by fixing wages through contracts.
D) It is more prevalent where internal workplace rules have no influence on employee outcomes.
Answer: C
Q2) What do shareholders do when they are dissatisfied with corporate performance?
A) They fire the management team.
B) They disassociate themselves from the corporate problems.
C) They sell their shares.
D) They ignore corporate problems totally.
Answer: C
Q3) Stock markets create the opportunity to make ownership highly liquid by providing an institutionalized mechanism for the purchase and sale of shares.
A)True
B)False
Answer: True
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Chapter 2: The Evolution of American Labor
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Q1) In the Danbury Hatters case,the union was charged with conspiring to restrain trade in violation of the _____.
A) Landrum-Griffin Act
B) Norris-La Guardia Act
C) Sherman Antitrust Act
D) Taft-Hartley Act
Answer: C
Q2) According to the _____,a union could be punished if either its means or its ends were deemed illegal by the courts.
A) doctrine of respondeat superior
B) conspiracy doctrine
C) delegation doctrine
D) strict liability doctrine
Answer: B
Q3) The Federal Mediation and Conciliation Service was established to aid settlement of unresolved contractual disputes.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Employment Law and Federal Agencies
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Q1) According to the Wagner and Taft-Hartley Acts,a(n)_____ is one whose work is intellectual in character,requiring independent judgment or discretion;whose performance cannot readily be measured in a standardized fashion;and whose skills are learned through prolonged,specialized instruction.
A) professional employee
B) union
C) trustee
D) employer
Answer: A
Q2) Under the Wagner and Taft-Hartley Acts,financial dealings between an employer and a union representing its employees are forbidden.
A)True
B)False
Answer: False
Q3) The Civil Service Reform Act,Title VII covers all non-uniformed,non-managerial federal service employees and agencies.
A)True
B)False
Answer: True
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Chapter 4: Union Structure and Government
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Q1) The International Brotherhood of Electrical Workers was originally a union of skilled electricians primarily involved in contract construction.
A)True
B)False
Q2) The centralized organizational makeup of the _____ is largely a function of employer concentration and the level at which economic bargaining occurs.
A) United Auto Workers
B) local unions
C) ILUs
D) International Brotherhood of Teamsters
Q3) Describe state and local central bodies.
Q4) To best serve members in a consistent manner across the major manufacturers,the UAW established _____.
A) political action committees
B) executive committees
C) national departments
D) AFL-CIO
Q5) Briefly discuss the responsibilities of the AFL-CIO.
Q6) Briefly describe the national structure of national unions.
Page 6
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Chapter 5: Unions: Member and Leader Attitudes,
Behaviors, and Political Activities
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Q1) Briefly explain endorsements and get-out-the-vote drives.
Q2) Union activists tend to be more satisfied with their employment.
A)True
B)False
Q3) Local union leaders have higher job satisfaction than nonparticipating members.
A)True
B)False
Q4) Which of the following is true about the financial aspects of unions?
A) Unions representing employees in the public sector allocate the smallest proportion of dues toward political activity.
B) Medium-sized unions spend less per capita on political action than smaller or larger unions,and spending decreases as dues increase.
C) Local union officers contribute the least.
D) Political contributions by rank-and-file members are quite modest.
Q5) What are the factors associated with higher rates of free riding?
Q6) What happens to the election of local officers when the local union has contracts with several employers?
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Q7) Briefly explain why organized labor was opposed to the North American Free Trade Agreement (NAFTA).
Chapter 6: Union Organizing Campaigns
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Q1) Economic returns from _____ are substantially greater than costs of organizing for employees in most industries.
A) picketing
B) craft severance
C) decertification elections
D) union representation
Q2) Which of the following is true of successor organizations?
A) Where ownership changes but operations continue unchanged,the new owner must honor the existing contract but need not recognize the union.
B) Where operations continue but,because of layoffs and/or new hires,the union lacks a majority,the employer has to strictly honor a contract.
C) When a closed firm is reopened by new owners,the bargaining relationship continues if a majority of the employees worked for the former company and were in a represented unit.
D) A firm that acquires or merges with another firm need not honor the existing contractual obligations.
Q3) Explain the communication-related rule during organizing campaigns.
Q4) List the factors that the NLRB considers to determine a bargaining unit.
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Chapter 7: Union Avoidance: Rationale,Strategies,and
Practices
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Q1) Lower returns in unionized firms are accompanied by lower risk in that security prices are less volatile.
A)True
B)False
Q2) In the reciprocal employment relationship,employees may come to feel that a(n)_____ exists between them and their employer.
A) implied contract
B) increased productivity output expectation
C) undercurrent of threat
D) heightened sense of goodwill
Q3) Relatively speaking,in _____ industries,unionized worker quality is lower than that of their nonunion counterparts.
A) manufacturing
B) medical
C) agricultural
D) service
Q4) Elaborate on the unfair management campaign tactics in representation elections and explain their implications.
Q5) How are human resource expenditures higher for nonunionized employers?
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Chapter 8: The Environment for Bargaining
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Q1) Economic theory suggests workers will be added until the added value of the additional output no longer exceeds the wage.
A)True
B)False
Q2) _____ in basic industries has decreased the wages and employment of domestic workers.
A) Prohibited bargaining
B) Global competition
C) Permissive bargaining
D) Unionization
Q3) Which of the following best describes a monopsonist employer?
A) A single producer of a specific product in a given market
B) The only unionized employer in a given market
C) A single purchaser of labor in a given market
D) The most dominating producer in a given market
Q4) Employers in the private sector are interested in _____.
A) maximizing long-term return to the investment in skills
B) maximizing long-term profits
C) encouraging all employees to join unions
D) increasing employment wages
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Chapter 9: Wage and Benefit Issues in Bargaining
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Q1) Which of the following statements is true regarding pension plans?
A) Under salary reduction plan,the employer's fiduciary decides where to invest funds.
B) Under defined benefit plan,the employee elects to contribute some amount of pretax income to his/her retirement account.
C) Under defined contribution plan,the risk of investment is borne by the employer.
D) Under ERISA,employer is not required to offer a pension plan.
Q2) Identify a condition that is likely to decrease wage imitation.
A) Decreased competition in industries where employers operate
B) Differences between industries where employers operate
C) Equal ability to pay within the industries
D) Decreased emphasis on company productivity trend
Q3) Why was the voluntary employee benefits association (VEBA)created?
Q4) Takeovers of unionized firms result in higher shareholder return compared with takeovers of nonunion employers.
A)True
B)False
Q5) How does skill-based pay plan work?
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Page 11
Chapter 10: Nonwage Issues in Bargaining
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Q1) Which of the following is true of the work design after industrial revolution?
A) The level of needed skill requirements increased
B) Production was highly labor-intensive
C) Job specialization was implemented
D) All products were produced by a single individual
Q2) Which of the following is true of the work design prior to industrial revolution?
A) Production was highly labor-intensive
B) Any complex product required the least skills
C) All the production processes involved the use of machinery
D) All products were produced at very low prices
Q3) Contracts do not specify the union's representation rights.
A)True
B)False
Q4) Which of the following is an endogenous change?
A) State of the economy
B) Changing goals and objectives of new managers
C) Changes in competitive products and services
D) Changes in laws and regulations
Q5) Explain high-performance work organizations (HPWO).
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Chapter 11: Contract Negotiations
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Q1) Before the tentative agreement becomes permanent:
A) the 60-day grace period is required under law.
B) the management might backtrack on its commitments.
C) the regulatory agencies must approve the agreement.
D) the international union must approve the agreement.
Q2) What are the major objectives of a bargaining convention?
Q3) Use of just-in-time inventories and other sophisticated supply-chain management methods has increased union bargaining power.
A)True
B)False
Q4) A basic rule that appears to govern the bargaining process is that an impending contract expiration is necessary for the commencement of bargaining.
A)True
B)False
Q5) Bluffing allows a bargainer to test the firmness of an opponent's demands without a full commitment to a settlement and provides an opportunity to learn about the opponent's expectations.
A)True
B)False
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Chapter 12: Impasses and Their Resolution
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Q1) The failure to reach an agreement is called _____.
A) bankruptcy
B) logrolling
C) collusion
D) an impasse
Q2) Under _____,the firm continues operations and gains protection from its creditors while trying to reorganize.
A) the Landrum-Griffin Act
B) the ally doctrine
C) Chapter 11
D) the Taft-Hartley Act
Q3) Third parties are used more frequently in the public sector,because most public sector employees are prohibited from striking.
A)True
B)False
Q4) A mediator uses reflexive tactics to _____.
A) attempt to simplify agenda
B) suggest a particular settlement
C) clarify the needs of the other party
D) avoid taking sides in important issues
Page 14
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Chapter 13: Union-Management Cooperation
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Q1) A contract is normally based on the assumption that current conditions will change during the length of the agreement.
A)True
B)False
Q2) Which of the following is true about a relations by objectives program?
A) It is designed to train negotiators to adopt a conciliatory approach to serve the interest of the management.
B) It assumes that obtaining increased information will enable management to better specify bargaining issues.
C) It refutes the efficacy of mutually planned actions to reduce future conflicts.
D) It is designed to increase the skills of union and management negotiators in communicating,mutual goal setting,and goal attainment.
Q3) Which of the following is true about integrative bargaining?
A) It precludes the possibility of both parties sacrificing simultaneously.
B) The gain of one party translates into an equal loss for the other party.
C) Both parties may experience an absolute gain over their previous positions.
D) It is inappropriate for long-term problems.
Q4) How do gainsharing plans benefit both employers and employees?
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Page 15
Chapter 14: Contract Administration
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Q1) Presenting grievances in an informal oral manner prevents supervisors and stewards from reaching a quick solution before a written record is established.
A)True
B)False
Q2) Teams have the authority to adjust grievances within the teams.
A)True
B)False
Q3) The _____ prohibits injunctions against lawful union activity,which includes strikes.
A) Wagner Act
B) Norris-La Guardia Act
C) Taft Hartley Act
D) Sherman Antitrust Act
Q4) Higher grievance rates are positively related to all of the following EXCEPT _____.
A) experienced stewards
B) union policies that influence grievance filing
C) periods close to negotiations
D) political choice within the union
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Chapter 15: Grievance Arbitration
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Q1) Which of the following is a protection clause for arbitration laid down by the Supreme Court in the context of the Steelworkers' trilogy?
A) If an arbitration clause exists,courts will order arbitration even if a dispute is clearly outside contract provisions.
B) The substance of grievances and their arbitrability are to be determined by courts,not arbitrators.
C) Contractual arbitration clauses require that parties arbitrate unresolved grievances. D) Courts are presumed to have greater competence in resolving labor disputes than labor arbitrators.
Q2) Grievances taken to arbitration for almost all issues have declined substantially since the early 1980s.
A)True
B)False
Q3) Arbitration is a labor relations process that aims to increase job satisfaction among workers through collective bargaining.
A)True
B)False
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Page 17
Chapter 16: Public Sector Labor Relations
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Q1) Which of the following is true regarding the incidence of strikes?
A) Strikes appear to be used when they are prevented,as vehicles for increasing public employee bargaining power.
B) Threats of firing increase public sector strikes.
C) Permissive laws decrease the frequency of strikes.
D) For police,strikes occur less often when there is a provision for arbitration to settle impasses.
Q2) Early evidence related to arbitration suggests a(n)_____ effect existed because negotiations in states providing for arbitration went to impasse more frequently.
A) epidemic
B) whipsaw
C) narcotic
D) positive
Q3) Bargaining-unit composition depends on the:
A) interests of the organizing union
B) degree of union-management cooperation
C) qualification of the union organizers
D) interests of the management
Q4) What is the role of the fact-finder in a private sector impasse?
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Chapter 17: A Survey of Labor Relations in Market
Economies
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Q1) Which of the following helps explain why union density falls far short of union coverage in most of Europe?
A) Affiliation to unions is regarded with suspicion by most employers which,in turn,negatively affects employee prospects.
B) Mandatory membership is not important.
C) Exclusive representation is a requirement in most countries.
D) Higher job satisfaction among workers dilutes the role of unions.
Q2) In which of the following nations does collective bargaining resemble U.S.labor relations,with recognition initially obtained primarily at the plant level and with generally adversarial bargaining at the establishment or corporate level?
A) Sweden
B) Britain
C) Japan
D) Germany
Q3) In the U.S. ,the locus of power is vested in the local unions.
A)True
B)False
Q4) Briefly describe how works councils function in Germany.
Q5) Discuss the early stages in the development of European labor union.
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