_______________________________________________________________________________________
1. 12
Student: Throughout most of American history, the relationship between managers and employees has been fairly smooth.
True
False
2. Historically, managers were less concerned about productivity and more concerned with friendly relations with coworkers.
True
False
3. One of the things that labor is interested in is fair and competent management.
True
False
4. A union is an employee organization that has the main goal of representing its members in employee-management negotiation concerning
job-related issues.
True
False
5. Even in their infancy, the main goal of most labor unions was to provide members with increased management power.
True
False
6. Labor unions played a major role in establishing minimum wage laws, child-labor laws, and improvements in job safety.
True
False
7. Today labor unions have seen a revitalization of support and union membership has increased significantly.
True
False
8. Most historians view the increase in union membership in the United States as an outgrowth of the transition from an industrial economy
to a service economy during the middle part of the 20th century.
True
False
9. Some business observers contend that the previous success of labor unions is a reason for the decline of labor unions.
True
False
10. The presence of formal labor organizations in the United States dates back to the late 1700s.
True
False
11. Some contend that the main reason membership in labor unions has declined in recent years has been the passage of anti-labor legislation
in the late 1980s that guaranteed all employees of a firm the same wages and benefits whether they joined a union or not.
True
False
12. The Knights of Labor was the first truly national labor organization in the United States.
True
False
13. A craft union is an organization of skilled specialists in a particular craft or trade.
True
False
14. A union that consists of members who are all skilled specialists in a particular trade is called an industrial guild.
True
False
15. The Knights of Labor, the first national labor organization, offered membership to all working people, including employers.
True
False
16. The first national labor organization, the Knights of Labor sought to gain enough political power to restructure the entire U.S. economy.
True
False
17. Samuel Gompers was the most important leader of the American Federation of Labor during its early years.
True
False
18. The AFL (American Federation of Labor) was initially intended to be a single craft union.
True
False
19. During its early years, the AFL tried to expand as rapidly as possible by recruiting both skilled and unskilled workers.
True
False
20. In its early years, the AFL (American Federation of Labor) limited its membership to skilled workers.
True
False
21. Membership in industrial unions was strictly limited to skilled craftspeople.
True
False
22. John L. Lewis broke with the American Federation of Labor (AFL) in 1935 over membership issues and formed a rival group known as
the Congress of Industrial Organizations (CIO).
True
False
23. The initial objective of the American Federation of Labor (AFL) was to provide union membership to workers in all industries.
True
False
24. Today, more than 55 national and international labor unions are affiliated with the AFL-CIO.
True
False
25. For 20 years, the CIO was a major rival of the AFL in the contest for leadership of the labor movement.
True
False
26. In 1955, after the passage of the Taft-Hartley Act, the AFL and CIO merged to create the AFL-CIO.
True
False
27. Union membership is likely to rise in the coming decade, because the same economic and political conditions that gave rise to unions in
the late 19th and early 20th centuries are now reappearing.
True
False
28. A major difference between early labor organizations in the United States and today's labor unions is that the early labor groups often
were temporary organizations that disbanded after achieving a short-range goal, while today's unions are permanent organizations.
True
False
29. The Knights of Labor and the American Federation of Labor were actually very similar in their aims, tactics, and membership. The only
major difference was in the effectiveness of their leaders.
True
False
30. The Industrial Revolution slowed the growth of unions by creating a rapidly rising standard of living for most workers.
True
False
31. Outspoken critics of today's labor unions believe that these organizations have lost their focus. They contend that they no longer represent
the rights of workers, as much as they are concerned with the vitality and strength of the union itself.
True
False
32. Abraham was an unskilled worker who toiled 10 hours a day on an assembly line during the early and mid 1930s. His hours were long,
his wages were low and his working conditions were unsafe and unpleasant. Abraham would probably be more sympathetic to the views
of John L. Lewis than to those of Samuel Gompers.
True
False
33. The Zendor Corporation operates a manufacturing plant in Bellridge. The work is arranged in an assembly line and is performed by
semiskilled and unskilled workers. These workers are looking into obtaining union representation. The type of union they would belong to
would be classified as an industrial union.
True
False
34. The growth and strength of organized labor has always depended on one thing: the state of the economy.
True
False
35. The Norris-LaGuardia Act made it more difficult for unions to legally recruit new members.
True
False
36. A yellow-dog contract required workers to agree not to join a union as a condition of their employment.
True
False
37. The Norris-LaGuardia Act prohibits firms from requiring workers to agree not to join a union as a condition of their employment.
True
False
38. Samuel Gompers believed that collective bargaining was likely to be an ineffective way for unions to achieve their objectives.
True
False
39. The National Labor Relations Act gave labor the legal justification to pursue collective bargaining and other key labor issues.
True
False
40. The process by which a union is recognized by the NLRB as the authorized bargaining agent for a group of workers is called collective
bargaining.
True
False
41. Once a union is certified to represent a group of workers, decertification is not a consideration or future possibility.
True
False
42. Collective bargaining is the process whereby union and management representatives negotiate a labor-management agreement, or
contract, for workers.
True
False
43. The Wagner Act established the first minimum wage for workers.
True
False
44. One goal of the Landrum-Griffin Act was to clean up union corruption.
True
False
45. The Norris-LaGuardia Act prohibited courts from issuing injunctions against nonviolent union activities.
True
False
46. The National Labor Relations Act gave employees the right to form and join labor organizations and the right to engage in activities such
as strikes and boycotts.
True
False
47. The Taft-Hartley Act strengthened unions by giving them the right to engage in featherbedding and secondary boycotts.
True
False
48. The Taft-Hartley Act allowed states to pass laws that prohibited compulsory union membership.
True
False
49. The Taft-Hartley Act gave more power to management.
True
False
50. A card check is a method of openly soliciting signatures in favor of the organization of a union.
True
False
51. Under the Wagner Act, the National Labor Relations Board can establish a labor union in an organization if it finds evidence of
substantial labor abuse within that organization.
True
False
52. The NLRB (National Labor Relations Board) has created procedures that union advocates must follow in order to organize a union at a
place of business. The multi-step procedure culminates with a secret vote by the employees of the organization.
True
False
53. The NLRB oversees the decertification of unions. An employer (the company owners) can petition and seek the signatures of 30% of the
employees in order to decertify the union - in other words, officially, the union could no longer represent the employees in any bargaining
negotiations.
True
False
54. Union representatives currently prefer secret ballot voting because they do not want to intimidate employees into voting for a union by
asking them to outwardly sign a card check in favor of unions.
True
False
55. Jenna is a member of a union team that is negotiating with management to obtain a labor contract for the workers represented by the
union. Jenna is involved in contract arbitration.
True
False
56. During an interview with Zytex company representative, Hillary was told that Zytex faces intense competition and management believes
that the only way the company can survive is to have a nonunion workforce. Therefore, all workers Zytex hires must sign an employment
contract stating that they agree not to join a union while they work for Zytex. This requirement by Zytex is illegal in the United States.
True
False
57. The workers at the Kerriton Company are unhappy with the way their union has been representing them. The Wagner Act allows these
workers to take away the union's right to represent them through a process known as decertification.
True
False
58. Jake remembers his grandfather telling him about going to work at 16 years of age in the coal mines of southern Illinois. In order to get
the job, he had to agree to a yellow-dog contract. Essentially this meant he would only get the job if he agreed not to join a union.
True
False
59. Last week, Angie was approached by two of her coworkers during the lunch break pressuring her to sign a card check in favor of
organizing a union. The card check is currently a NLRB (National Labor Relations Board) approved method of finalizing unionization.
True
False
60. The main objectives of organized labor, better wages and shorter hours, have remained remarkably stable over time.
True
False
61. During the 1970s, the primary objective of most labor unions was to gain additional pay and benefits for their members.
True
False
62. During the 1980s unions became increasingly concerned with the issues of job security and union recognition.
True
False
63. The AFL-CIO was a major supporter of the NAFTA agreement to expand trade and commerce among the nations of the United States,
Canada, and Mexico.
True
False
64. The AFL-CIO has supported offshore outsourcing as a method of increasing work opportunities for union members.
True
False
65. Wage rates, hours of work, employee benefits, and job rights and seniority are issues covered in a typical negotiated labor-management
agreement.
True
False
66. A union security clause in a labor-management agreement stipulates that employees who benefit from a union must either officially join
or at least pay dues to the union.
True
False
67. The negotiated labor-management agreement clarifies the terms and conditions under which labor and management agree to function over
a specified period of time.
True
False
68. Under a closed shop agreement, workers must agree not to join a union in order to keep their jobs.
True
False
69. Until passage of the Taft-Hartley Act, under a closed shop agreement, a company could only hire workers who already belonged to a
union.
True
False
70. Under a union shop agreement, workers must belong to a union before they can be hired.
True
False
71. The Taft-Hartley Act made the union shop agreement illegal in all states.
True
False
72. A union shop agreement is illegal in states that have passed right-to-work laws.
True
False
73. In an agency shop agreement, workers who do not belong to the union must pay a union fee or pay regular union dues.
True
False
74. Under an agency shop agreement, only union members are represented at the bargaining table.
True
False
75. Under an open shop agreement, workers have the option to join or not join a union, if one is present in the workplace.
True
False
76. Unions in Europe historically have held more influence in the workplace than unions have in the United States.
True
False
77. According to the "Reaching Beyond Our Borders" box in Chapter 12, global labor movements are forming to emphasize the setting of
global labor standards.
True
False
78. A grievance is a charge by managers that the union is not abiding by the terms of the negotiated labor-management agreement.
True
False
79. The sources of many grievances include overtime rules, promotions, layoffs, and job assignments.
True
False
80. The vast majority of grievances filed by union members are negotiated and resolved by shop stewards and supervisory managers.
True
False
81. A bargaining zone is the time period during which a third party is used to reach agreement on union disputes.
True
False
82. A mediator has the power to impose a binding settlement on labor and management.
True
False
83. Arbitration is an agreement to bring in an impartial third party to render a binding decision in a labor dispute.
True
False
84. Many of the negotiated labor-management agreements in the United States call for the use of an arbitrator to end labor disputes.
True
False
85. Arbitration and mediation are alike in that both involve an impartial third party to help in the negotiation process. The differences in these
two approaches is that an arbitrator's decision is binding - both parties agree to this on the front end; a mediator encourages the two
conflicting parties to continue to negotiate and may make suggestions in pursuit of a resolution.
True
False
86. In the past, a variety of professionals have served as mediators. If a labor dispute were to breakout between the management at an auto
manufacturer and the local union that represents workers at the auto manufacturing plant, it would be highly unusual for a university
professor who has studied labor relations to be asked to mediate. The disputing parties would save his time for something more serious
like arbitration.
True
False
87. Mississippi has passed a right-to-work law, which means that union shops are illegal in the state.
True
False
88. Winona was recently hired to work at a production plant for Additup Manufacturing. When hired, she was told she must join the union at
the plant within 90 days in order to keep her job. Winona is employed in an agency shop.
True
False
89. Marina works for a company in which a union is recognized as the bargaining agent for the workers who perform her type of job.
However, under the arrangements at her company, Marina is not required to join the union, nor is she required to pay any fees or dues to
the union. Marina works under an agency shop agreement.
True
False
90. Miko began working for a company that operates under an open shop arrangement. Under this type of arrangement, Miko must join the
union at her company within 90 days or she will lose her job.
True
False
91. Labor and management at the Brookwood Company have reached an impasse in their efforts to negotiate an acceptable labormanagement agreement. The two sides have agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not like, it
can veto the decision.
True
False
92. Ashleigh has played a number of supporting roles on TV sitcoms. In her last role, she understood her contract to obligate her to perform in
22 episodes for a stipend of $500 per episode. After completion of 11 episodes, Ashleigh became ill and was unable to complete the
episodes in a timely manner. The studio claimed that Ashleigh broke her contract and they are not obligated to pay her. She is confident
that an impartial third party will view her circumstances as exceptional and will rule that she be reimbursed for the 11 performances. She
has agreed to mediation.
True
False
93. Jian is a well-known professor of labor relations at a major university. She recently was asked by representatives of labor and
management at a nearby corporation to help them resolve a disagreement that threatened to cause a breakdown in negotiations. If Jian
agrees to help, her role will be to encourage both parties to continue negotiating and to offer constructive advice and suggestions, but she
will not have the authority to render a binding decision. Jian's role is that of a mediator.
True
False
94. Regina teaches at a local college. As a full time employee, she belongs to an organized union that represents teachers. She recently filed a
grievance against her Dean claiming that the Dean prevented her promotion due to the fact that Regina's academic credentials are from a
university that the Dean does not personally feel is properly accredited. As a first step to resolving the conflict between the Dean
(considered a management level position) and the instructor, the union will support Regina by bringing in the national union officer to
negotiate with the University's Chancellor (similar to the CEO for a company).
True
False
95. Management at Enomoto Enterprises has assigned Alberto to work at two different facilities, which will require him to commute an extra
25 miles on the days he must work at both plants. Alberto believes that the negotiated labor-management agreement requires the company
to reimburse him for the extra mileage he has to drive. Management disagrees. Alberto has decided to file a charge that management is not
abiding by the terms of the negotiated agreement. Alberto's complaint is called a grievance.
True
False
96. A Lockout is a tactic utilized by unions when collective bargaining breaks down.
True
False
97. The strike historically has been the most powerful weapon unions use to achieve their objectives in labor disputes.
True
False
98. A boycott occurs when workers collectively refuse to go to work.
True
False
99. Strikes have been an effective way of settling labor disputes without violence and bitterness.
True
False
100. Postal workers and other employees of the federal government who provide important services are allowed to form unions, but are
denied the right to strike.
True
False
101. The "blue flu" refers to a situation in which union members (like firefighters) who are not allowed to strike refuse to work by calling in
sick.
True
False
102. A cooling-off period is when workers in a critical industry return to their jobs while the union and management continue negotiations.
True
False
103. In a primary boycott, a union encourages its members and the general public not to buy the goods and services produced by a firm
involved in a labor dispute.
True
False
104. In 1996, the U.S. Supreme Court ruled that primary boycotts are illegal.
True
False
105. Tactics used by management when collective bargaining breaks down include injunctions and lockouts.
True
False
106. The most potent weapon currently available to management when collective bargaining breaks down is the use of yellow-dog contracts.
True
False
107. The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.
True
False
108. A common tactic of management in labor disputes is the use of secondary boycotts.
True
False
109. The use of strikebreakers did not become a common management tactic used in labor disputes until the 1980s.
True
False
110. Workers who are hired to do the jobs of striking workers until the strike is over are called "scabs" by the union.
True
False
111. A court order directing someone to do something or to refrain from doing something is called a judicial citation.
True
False
112. Hiring strikebreakers to replace striking workers was historically a common management tactic during labor disputes, but it is seldom
used today.
True
False
113. The Taft-Hartley Act authorizes the U.S. president to ask for a cooling-off period to temporarily prevent a strike in a critical industry.
True
False
114. Courts will issue an injunction against union tactics only if management can show a "just cause" to restrict the union tactic.
True
False
115. The lockout is the most common tactic used by management today to deal with labor management disputes.
True
False
116. Unions have used givebacks as a tactic to increase membership of a culturally diverse workforce.
True
False
117. The largest labor organization in the U.S. is the National Education Association (NEA).
True
False
118. Membership in labor unions has grown steadily over the past 50 years.
True
False
119. A key to the future growth of unions will be their ability to adapt to a labor force that is becoming more culturally diverse.
True
False
120. In recent years, many unions have granted concessions on working conditions and wages in order to save jobs.
True
False
121. One way the Teamsters Union plans to increase membership is by reaching out to women in traditionally non-union occupations like
health care.
True
False
122. The unions of the 21st century are likely to be quite different from those in the past.
True
False
123. In the future, unions are likely to leave training and recruitment of workers to management, and focus instead on encouraging those
workers to join the union.
True
False
124. In the next few years, unions are likely to find that they must adopt a tough, confrontational approach in order to get what they want from
management.
True
False
125. According to "Spotlight on Small Business," in Chapter 12 many private-practice physicians have embraced unionizing as a means to
collective bargaining with managed health care organizations.
True
False
126. The Taft-Hartley Act gives the president the power to require striking workers in any industry to return to their jobs for a cooling-off
period while representatives of management and the union continue to negotiate.
True
False
127. Bellandro Bay Brewery union representatives and the company's management have reached an impasse. Going forward, the union has
planning an organized strike and other tactics to put pressure on management where it will be most effective. Union supporters are being
encouraged to avoid purchasing Bellandro's products. Now union leaders have contacted a variety of stores that stock Bellandro's Beer
informing them that union members and other supporters will stop shopping at any store that continues to carry the brewery's beer until
the dispute is resolved in the union's favor. This tactic against stores that carry Bellandro's Beer is called a primary boycott.
True
False
128. Striking union workers are picketing near the entrance of the Bellandro Bay Brewery plant where they normally work. The workers are
acting peacefully and have not threatened anyone entering or leaving the company or damaged any property. Bellandro's management is
seeking an injunction to prevent the workers from picketing. The courts are unlikely to issue an injunction under the current
circumstances.
True
False
129. Workers at the West Fenton plant of Malzone Industries have gone out on strike. Management believes it could continue operating the
plant during the strike by hiring replacement workers. If the company hires nonunion workers to continue its operations, it will be
violating a recent Supreme Court ruling that declared hiring replacement workers as a violation of the Wagner Act.
True
False
130. Employees were striking at the London Met University last year. Very few students were crossing the picket line. In fact, the city's postal
employees refused to deliver mail there claiming that they were honoring the strike for their fellow service union members. The Postal
employees were participating in a voluntary secondary boycott.
True
False
131. In the Making Ethical Decisions box, students are asked to consider what they would do if they had the opportunity to be employed as a
strikebreaker, at a company where friends and family were currently out of work and on strike. If they choose to do so, they are
immediately hired as full-time workers.
True
False
132. After adjusting for inflation, the average CEO compensation is actually a little lower now than it was in 1960.
True
False
133. The disparity in salaries is clearly reflected in the fact that in 2007, the average CEO compensation for a major company was $12.8
million, compared to a little more than $35,000 that the average worker was compensated.
True
False
134. CEOs only earn high salaries and bonuses when their companies earn substantial profits.
True
False
135. The late Peter Drucker, one of 20th century's leading management consultants was very critical of the exorbitant compensations that
some CEOs were getting.
True
False
136. Despite their high pay, most CEOs work far fewer hours per week than the average employee in their companies.
True
False
137. Comparable worth is concerned with making sure that women get paid as much as men when they do the same jobs.
True
False
138. The Equal Pay Act of 1963 required companies to provide equal pay to men and women who perform the same job.
True
False
139. The concept of comparable worth holds that people who do jobs that require similar levels of education, training and skills should
receive equal pay.
True
False
140. Today, a woman usually receives a salary that is equal to approximately 79% of her male counterpart.
True
False
141. The law protects both women and men from sexual harassment.
True
False
142. The number of sexual harassment complaints filed with the Equal Employment Opportunity Commission has leveled off since 2000.
True
False
143. In 1997, the Supreme Court ruled that same sex harassment is prohibited by sexual harassment laws.
True
False
144. Although workers and managers often know that their firm has a policy against sexual harassment, they seldom have a clear
understanding of what the policy actually says.
True
False
145. "Quid pro quo" sexual harassment occurs when a person's conduct creates an offensive, hostile, or intimidating work environment that
adversely affects the job performance of some other employee.
True
False
146. If you work for a foreign company doing business in the U.S., you are subject to the same sexual harassment laws as anyone working in
the U.S.
True
False
147. Because of the need to cut costs, fewer large U.S. companies now provide some sort of child-care for their employees than ten years
ago.
True
False
148. Small firms often offer innovative child-care programs as a way of competing for qualified employees.
True
False
149. On-site child-care remains the only acceptable way for firms to meet the child care concerns of their employees.
True
False
150. The number of households that face the burden of caring for one or more elderly parents has increased significantly over the past
decade.
True
False
151. In recent years federal programs such as Medicare and Medicaid have greatly reduced the financial burden on families faced with caring
for elderly adults.
True
False
152. Over the next decade costs associated with elder care are likely to have a much smaller impact on businesses than child-care costs.
True
False
153. Elder care costs are likely to remain a major issue for businesses for many years.
True
False
154. The spread of AIDS within the U.S. has declined in recent years.
True
False
155. Alcohol and drug abuse are serious workplace issues but they involve far fewer workers than AIDS does.
True
False
156. Alcohol is the most widely used drug in the workplace.
True
False
157. Today, over 70% of all companies require some type of drug testing.
True
False
158. The high cost of illegal drug use in the workplace has resulted in a rise in the number of firms that test employees and job applicants for
drugs.
True
False
159. According to the Occupational Safety and Health Administration (OSHA), the third leading cause of job-related fatalities is homicide.
True
False
160. One in six violent crimes that are committed in the U.S. occur in the workplace.
True
False
161. Many companies do not provide any formal training for dealing with prevention of violence in the workplace.
True
False
162. Since violence in the workplace rarely results in severe injury, it is likely not to be much of a problem in the future.
True
False
163. Due to threats of violence at work, some states have passed laws permitting companies to seek temporary restraining orders on behalf of
their management.
True
False
164. Although the general public often sees the compensation of CEOs of major U.S. corporations as being much too high, the pay and
benefits these top executives receive is actually quite similar to what is earned by top executives in other countries with market
economies.
True
False
165. According to the Legal Briefcase box associated with Chapter 12, we can cite several examples where CEOs in the U.S. received
significantly large exit compensation packages even though the profit performance of their firms under their watch was rather meager to
very poor.
True
False
166. According to the Legal Briefcase, "Paying for Incompetence", businesspersons understand that the capitalist system has no choice but to
tolerate huge disparities between a CEO's salary and a regular employee.
True
False
167. According to the Legal Briefcase box from Chapter 12 that highlighted the exorbitant salaries of some past company CEOs: When it is
all said and done, restructuring compensation packages to be more equitable is in the hands of the companies themselves.
True
False
168. Reece discovered that a male coworker is paid $1.50 per hour more than she is even though they have the same job title, have similar
qualifications, and have been employed the same length of time. Unfortunately for Reece, it is legal for the hospital to pay different
salaries to different workers who perform the same job.
True
False
169. Marco is the newly appointed CEO of the Sine of the Times Corporation. The board of directors approved an attractive stock option
package as part of his total compensation. From this information, you would assume that one of the board's objectives is to stabilize the
value of Sine of the Times' stock by preventing it from rising or falling more than a small percentage.
True
False
170. Although child-care concerns have become a pressing issue for many employees, most firms have been unable to find acceptable
solutions to these concerns.
True
False
171. Brantwell, Inc. is a forward thinking company planning to implement a program to help its employees provide care for their elderly
parents. According to recent trends, Brantwell's new program should result in future cost savings.
True
False
172. Robert and Jenny are co-workers who enjoy flirting with each other while at work. They both view their actions as harmless fun, as do
the other employees in their office. Their flirtation does not offend the other workers or make them feel threatened or uncomfortable.
Nevertheless, under current criteria, both Jenny and Robert could be found guilty of sexual harassment.
True
False
173. Rose is a human resources manager for a rapidly growing corporation. The firm recently hired one hundred new workers, ten of whom
were involved in workplace accidents soon after they were hired. It was determined that alcohol usage was the cause of these accidents.
Top management has asked Rose to do a better job in screening potential workers for alcohol abuse to avoid this in the future. Rose
should point out that in fact the ten percent of the recent-hires with alcohol issues is actually much lower than the overall percentage of
employees with alcohol issues that are involved in industrial injuries and fatalities in the U.S.
True
False
174. Recently a disgruntled employee walked into a large grocery chain's mid-west distribution center and opened fire on his fellow workers.
He killed or injured several people before being killed by the local police. The grocery chain is very concerned about the threat of
workplace violence in the future. One way to deal with this threat is for management to hold focus groups to invite employee input.
Another way is to make certain that the company hires managers with good interpersonal skills.
True
False
175. A(n) ________ is an employee organization that represents workers in employee-management bargaining over job-related issues.
A.
B.
C.
D.
trades guild
union
ESOP
cross-functional team
176. The presence of formal labor organizations in the United States dates back to the:
A. late 1700s.
B. Civil War.
C. late 1800s.
D. depression years of the 1930s.
177. According to business observers, which of the following is a reason for labor's decline?
A.
B.
C.
D.
Shifts from service to manufacturing industries
Decline in part-time work
Labor's success in seeing issues it championed become law
Increased local competition
178. The union movement in the United States was an outgrowth of the economic transition caused by the:
A.
B.
C.
D.
Revolutionary War.
Great Depression.
Industrial Revolution.
passage of antitrust legislation by the federal government.
179. Labor unions were largely responsible for:
A.
B.
C.
D.
establishing the Republican party.
the basic structure of the federal income tax system.
the passage of NAFTA.
minimum wage laws and laws against child labor.
180. __________ are workplaces with undesirable, and often unsafe and oppressive working conditions.
A.
B.
C.
D.
Treadmills
Flopshops
Steamshops
Sweatshops
181. The purpose of the earliest recognized labor unions in the U.S. was:
A.
B.
C.
D.
to achieve some short-range goal and then disband.
to achieve a long-range foundation for the craft.
to teach the craft to new workers.
to achieve notoriety for the members.
182. The first national labor organization in the United States was the:
A.
B.
C.
D.
Knights of Labor.
Congress of Industrial Organizations.
American Federation of Labor.
United Farm Workers Union.
183. Membership in the Knights of Labor was:
A.
B.
C.
D.
limited to skilled craftsmen.
limited to unskilled and semiskilled workers who belonged to industrial unions.
open to all working people, including employers.
open to anyone willing to promote capitalism as the economic system most likely to lead to economic prosperity for the working men and
women of the United States.
184. The main goal of the Knights of Labor was to:
A.
B.
C.
D.
promote world peace through the creation of a brotherhood and sisterhood of workers in all nations.
gain political power and restructure the U.S. economy.
form an organization that would protect the benefits of retired workers.
promote a better public education system.
185. In a(n) ________, all of the members are skilled specialists in a particular trade.
A.
B.
C.
D.
ESOP
craft union
industrial union
trade federation
186. __________ provided dynamic leadership for the American Federation of Labor during its early years.
A.
B.
C.
D.
Karl Marx
Kenneth Adams
George Meany
Samuel Gompers
187. The AFL was concerned primarily with:
A.
B.
C.
D.
fundamental labor issues.
gaining political power.
forming a workers' army to lead a socialist revolution.
promoting a better public education system.
188. In its early years, the AFL's strategy was to:
A.
B.
C.
D.
grow as rapidly as possible by allowing people from all professions and walks of life to join.
limit its membership to skilled craftspeople.
limit its membership to unskilled and semiskilled workers.
form one big craft union which everyone could join; but it later split into several smaller organizations.
189. The CIO (Congress of Industrial Organizations) organized unskilled and semiskilled workers into:
A.
B.
C.
D.
craft unions.
a political party.
industrial unions.
union shops.
190. The __________ was set up as a federation of many separate craft unions.
A.
B.
C.
D.
Knights of Labor
Committee of Industrial Organizations
League of Unions
American Federation of Labor (AFL)
191. The leadership of _____________ was instrumental in bringing about the merger between the American Federation of Labor and the
Congress of Industrial Organizations in 1955.
A.
B.
C.
D.
Samuel Gompers
Terence K. Powderly
Ronald Reagan
George Meany
192. In the early years, there were power struggles among the larger national unions. Leaders recognized that there was power in numbers.
After the passage of the Taft-Hartley Act in 1947,
A.
B.
C.
D.
the CIO defeated the AFL.
the "Change to Win" campaign emerged.
the AFL and CIO merged.
the unions collapsed for several years.
193. The Industrial Revolution was characterized by a(n):
A. increased emphasis on production, resulting in longer hours and less job security for most workers.
B. migration of manufacturing jobs from the Midwest and Northeast to the South as firms began locating in areas where labor costs were
lower.
C. rapid improvement in the wages and working conditions of most workers, resulting in a decline in the need for labor unions.
D. movement away from scientific management, and a greater acceptance of the ideas of Herzberg and Maslow.
194. Critics of labor unions argue that unions are no longer needed to protect workers from abusive and unfair treatment because:
A. the widespread use of ESOPs has given most workers control over their workplace.
B. supply and demand conditions in labor markets now favor labor rather than management.
C. laws and modern management attitudes minimize the possibility of unsafe working conditions and unfair treatment of workers found in
earlier eras.
D. most of the firms that treated workers poorly have moved their operations to foreign countries.
195. A major reason John L. Lewis and his followers broke with the AFL and formed the CIO was that:
A. the leaders of the AFL wanted to focus on political objectives while Lewis and his followers wanted to focus on economic objectives.
B. Lewis felt that the AFL was growing too fast.
C. the leaders of the AFL wanted to organize only skilled workers, while Lewis and his followers wanted to organize both unskilled and
skilled workers.
D. Lewis believed that the AFL would be more flexible and responsive to its members if it split into several smaller organizations, each
representing workers with one specific skill.
196. The departure of the Service Employees International Union (1.8 million members strong) from the AFL-CIO:
A.
B.
C.
D.
strengthened the focus of the AFL-CIO to serve those who work in manufacturing jobs.
weakened the AFL-CIO, even though it still has about 10.5 million members.
was the result of the passage of the Taft-Hartley Act.
created room for more craft unions to join the AFL-CIO.
197. The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this strategy
was that:
A. industrial unions were illegal until the passage of the Taft-Hartley Act in 1947.
B. the leaders of the AFL believed that the skilled workers represented by craft unions would have better bargaining power than unskilled
workers.
C. craft unions had more political clout than industrial unions.
D. most industrial unions had supported the Knights of Labor in a dispute with the AFL during the 1880s.
198. Historically, the ______________ strengthened the labor unions, while the _____________________ supported management's efforts.
A. National Labor Relations Act; Taft-Hartley Act
B. Taft-Hartley Act; Fair Labor Standards Act
C. Fair Labor Standards Act; National Labor Relations Act
D. Norris-LaGuardia Act; National Labor Relations Act
199. Antonio received specific training to become an electrician. He belongs to a union with other skilled electricians. Antonio belongs to a
(n):
A.
B.
C.
D.
industrial union.
craft union.
open union.
company union.
200. Geraldo works on the assembly line for a major automobile manufacturer. He was hired for the job without any specific training or skill.
Geraldo joined a union with other assembly-line workers who perform a variety of jobs that do not require a highly specialized skill.
Geraldo belongs to a(n):
A.
B.
C.
D.
industrial union.
craft union.
assembly union.
traditional union.
201. Which of the following statements is the most accurate assessment of the historical role of the AFL in the labor movement? In its early
years the AFL:
A.
B.
C.
D.
attracted a lot of public attention and political support because it was the first truly national labor organization in the United States.
operated as one union, but soon split into two interdependent groups and became known as the AFL-CIO.
was a federation of craft unions that championed basic labor issues.
had limited success because it suffered from poor leadership.
202. Samuel Gompers believed that ___________ was the key to attaining a fairer share of the economic pie for American workers.
A.
B.
C.
D.
collective bargaining
political power
obtaining free trade agreements with other nations
organizing workers into industrial unions
203. The two major influences on the growth of unions in the U.S. were:
A.
B.
C.
D.
population growth; the agrarian economy
the agrarian economy; the Taft-Hartley Act
the Taft-Hartley Act; support of management
laws that supported unionizing; public opinion
204. The _________ Act established the National Labor Relations Board.
A.
B.
C.
D.
Wagner
Taft-Hartley
Norris-LaGuardia
Fair Labor Standards
205. __________ is the process by which a union becomes recognized by the National Labor Relations Board as the bargaining agent for a
group of employees.
A.
B.
C.
D.
Accreditation
Certification
Arbitration
Affiliation
206. ____________ is the process by which a group of workers legally take away a union's right to represent them.
A.
B.
C.
D.
Disqualification
Decertification
Impeachment
Disenfranchisement
207. _____________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for
workers.
A.
B.
C.
D.
Mediation
Arbitration
Mutual Conciliation
Collective bargaining
208. The ______________ was established by the Wagner Act to oversee labor-management relations.
A.
B.
C.
D.
Federal Trade Commission
Commission on Labor Relations
National Labor Relations Board
Equal Employment Opportunity Commission
209. The first federal minimum wage was established by the:
A. Fair Labor Standards Act.
B. Wagner Act.
C. Minimum Compensation Act.
D. Pay Equity Act.
210. The _____________ outlawed the use of yellow-dog contracts and prohibited courts from issuing injunctions against nonviolent union
activities.
A.
B.
C.
D.
Landrum-Griffin Act
Fair Labor Standards Act
Wagner Act
Norris-LaGuardia Act
211. At one time, as a condition of employment, the employer could make the employee sign a statement prohibiting the worker from joining
a union. This was called a(n):
A.
B.
C.
D.
arbitrary agreement.
yellow-dog contract.
right-to-work contract.
employment at will agreement.
212. The __________ guaranteed the rights of individual union members when dealing with their union.
A.
B.
C.
D.
Wagner Act
Landrum-Griffin Act
Norris-LaGuardia Act
Taft-Hartley Act
213. Which of the following acts gave more power to management in its relations with organized labor?
A.
B.
C.
D.
Norris-LaGuardia Act
Landrum-Griffin Act
Wagner Act
Taft-Hartley Act
214. The Taft-Hartley Act:
A.
B.
C.
D.
established the first minimum wage.
allowed individual states to pass right-to-work laws prohibiting compulsory union membership.
required management to bargain in good faith with union representatives.
set up the process by which unions could be recognized as the exclusive bargaining agents for a group of workers.
215. The ___________ guaranteed union members the right to nominate candidates for union office and participate in union meetings.
A.
B.
C.
D.
Taft-Hartley Act
Fair Labor Standards Act
Norris-LaGuardia Act
Landrum-Griffin Act
216. One goal of the Landrum-Griffin Act was to:
A.
B.
C.
D.
firmly establish the right of unions to engage in collective bargaining.
set up the means by which unions could be certified as bargaining agents for workers.
clean up the corrupt practices of unions.
prevent employees engaged in providing critical services such as health care or police protection from going out on strike.
217. The NLRB (National Labor Relations Board) consists of:
A.
B.
C.
D.
a five member panel appointed by the U.S. president.
an eight or ten member board consisting of an equal representation of union officials and management personnel.
two large unions: the AFL and the CIO.
a congressional committee.
218. The Wagner Act is best described as a(n):
A.
B.
C.
D.
pro-management law.
pro-union law.
anti-communism law.
anti-collective bargaining law.
219. John belongs to a labor union. He believes a few key people run the union by meeting secretly and making decisions without informing
other members or allowing them to fully participate in the meetings. If John's suspicions are correct, the union is violating provisions of
the __________ Act.
A.
B.
C.
D.
Landrum-Griffin
Fair Labor Standards
Taft-Hartley
Wagner
220. The Labor-Management Relations Act (or Taft-Hartley Act) can be best described as a law which:
A. gave unions much more power and led to a rapid rise in union membership.
B. gave employees the right to serve on the board of directors of their company, thus encouraging a more equitable treatment of workers.
C. eliminated the need for unions in many industries by providing workers with widespread rights and protection against unfair labor
practices by employers.
D. placed limitations on union activities and gave more power to management in dealing with unions.
221. The primary purpose of collective bargaining is to:
A.
B.
C.
D.
ensure worker participation in setting the goals and objectives of the company.
establish and communicate clear guidelines for performance appraisals.
limit the authority of management to set job categories and direct worker activities.
negotiate a labor-management agreement that both the union and management are willing to accept.
222. Two important provisions concerning the certification or decertification process administered by the NLRB (National Labor Relations
Board) are:
A. certification or decertification requires that the workers cast over 50 percent of the required vote to certify or decertify, and that voting be
done by secret ballot.
B. certification is a four-step process, and decertification is a two-step process.
C. the union must win 30% of the vote for certification, and 70% of the vote for decertification.
D. voting to bring in a union must be done by card check, and voting to dismiss a union must be done by secret ballot.
223. During the 1920s and early 1930s the Dallas Sheet Metal Shop was able to prevent workers from forming a union by requiring them to
sign an employment contract in which they agreed not to join a union as a condition of employment. Dallas was making use of:
A.
B.
C.
D.
yellow-dog contracts.
blacklisting agreements.
injunctions.
implied consent decrees.
224. Steven is part of a team of union members that is meeting with representatives of his company's management in an effort to negotiate a
labor contract for the workers his union represents. Steven is participating in a process known as:
A.
B.
C.
D.
collective bargaining.
management by objectives.
arbitration.
certification discussions.
225. Bob believes that management is treating him unfairly because of his efforts to organize a vote for union representation. Which
organization should Bob contact to report his concerns?
A.
B.
C.
D.
Federal Board of Labor Rights
National Labor Relations Board
Federal Trade Commission
Federal Commission on Unfair Labor Practices
226. Which of the following statements about collective bargaining is most consistent with the views of Samuel Gompers?
A. Collective bargaining is the best way for workers to attain a fairer share of the economic pie.
B. Collective bargaining is a nice idea in theory, but in the real world unions must rely on weapons such as strikes and boycotts to get what
they want.
C. Unions should view collective bargaining as a useful, but limited, means for achieving some of their goals. In most cases the best way for
unions to achieve their goals is to use their political clout to help pass favorable legislation.
D. Unions should not count on collective bargaining to achieve their goals, because management can't be trusted to bargain in good faith.
227. Union leaders at the Baadfathe Corporation are furious. Although the union's certified by the NLRB, its negotiating team has had little
success in getting management to meet with them to work on a new labor contract. In fact, during the last 3 months, the management
team has agreed to meet only twice, once on a weekend, and the other time after 8:00 p.m. Even during those two meetings, the
management team was unwilling to offer serious proposals. Baadfathe's management team should review the legal rights of union
members to participate in collective bargaining, as provided under the:
A.
B.
C.
D.
Taft-Harley Act.
Norris LaGuardia Act.
Wagner Act.
Landrum-Griffin Act.
228. During the lunch break at Secure Seat Belt Corporation, Ben's friend Dan was enthusiastic about the Employee Free Choice Act.
According to Dan, if congress passes this legislation,
A. employees will no longer be under any pressure to join the union.
B. employees will have a choice of higher pay or the assurance of good union representation with safety issues.
C. union representatives will have the right to choose which members of management will participate in collective bargaining for the
company.
D. unions will win the right to replace secret ballot voting for union certification with a card check, an open authorization method of securing
votes for union representation.
229. During the 1970s, the primary objective of most labor unions was to:
A.
B.
C.
D.
restore the closed shop arrangement.
improve pay and benefits for their members.
obtain more job security for their members.
establish employee stock ownership programs.
230. During the 1980s, unions became increasingly concerned with the issues of:
A.
B.
C.
D.
pay and fringe benefits.
stock option plans and profit sharing.
job security and union recognition.
worker training and education.
231. Over the past several decades unions have:
A.
B.
C.
D.
always placed the greatest emphasis on increasing wages and benefits.
frequently changed objectives as the result of shifts in social and economic conditions.
frequently taken global competition into account.
consistently favored policies that would move the U.S. economy toward a command system.
232. The __________ sets the tone and clarifies the terms and conditions under which labor and management agree to function over a specific
period of time.
A.
B.
C.
D.
negotiated labor-management agreement
right-to-work agreement
open shop agreement
bargaining zone
233. The AFL-CIO was __________ the Central American Free Trade Agreement (CAFTA).
A.
B.
C.
D.
strongly in favor of
cautiously neutral in its views toward
opposed to
split in two camps, one in favor of and the other opposed to
234. The AFL-CIO was a major __________ of the NAFTA agreement passed by Congress in 1994.
A.
B.
C.
D.
contributor to the design
financial backer
advocate
opponent
235. Under ________, workers are not required to join the union, but those who do not join are still required to pay a union fee or regular
dues to the union.
A.
B.
C.
D.
right-to-work laws
all union security clauses
agency shop agreements
Employee Stock Option Plans (ESOPs)
236. According to the "Reaching Beyond Our Borders" box in Chapter 12,
A. going global may be the strategy that rekindles the labor unions.
B. there is not a strong enough base of unskilled laborers internationally to make it worthwhile to form a global union at this time.
C. most domestic unions are watching the auto workers unions. If the auto workers can certify auto plants in Mexico, Turkey, and Japan,
there is a chance that other unions will follow a global path.
D. the increase in unions globally has far surpassed the union growth rate in the U.S.
237. Under a(n) ___________ shop agreement, workers must belong to the union before they are hired.
A.
B.
C.
D.
open
union
agency
closed
238. The justification for dues or fees paid by nonunion members to the union in a(n) _________ shop is that the union represents all workers
in collective bargaining, not just those who belong to the union.
A.
B.
C.
D.
closed
agency
fee simple
union
239. In a(n) __________ shop, workers do not have to belong to a union before they are hired, but they must join a union within a specified
period (usually 30, 60, or 90 days) in order to keep their job.
A.
B.
C.
D.
agency
closed
open
union
240. If a union is present in a firm that has a(n) _________ shop arrangement, workers may join the union if they wish, but they are not
required to join or pay a union fee in order to keep their jobs.
A.
B.
C.
D.
open
unrestricted
freedom of choice
agency
241. A(n) ___________ is a union official who works permanently in an organization and represents employee interests on a daily basis.
A.
B.
C.
D.
arbitrator
shop steward
mediator
president
242. Closed shops were declared illegal by the:
A.
B.
C.
D.
Taft-Hartley Act.
Norris-LaGuardia Act.
National Labor Relations Board in 1929.
U.S. Supreme Court in 1946.
243. ___________ is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor dispute
or achieve a mutually acceptable labor-management agreement.
A.
B.
C.
D.
Arbitration
Mediation
Reconciliation
Intercession
244. The process of bringing in an impartial third party to render a binding decision in a labor dispute is referred to as:
A.
B.
C.
D.
resolution.
mediation.
arbitration.
confirmation.
245. If management and union officials cannot resolve a grievance, a(n) _________ is asked to listen to the arguments of each side and to
make a decision that both sides will have to comply with.
A.
B.
C.
D.
confirmer
counselor
arbitrator
mediator
246. Which of the following topics is generally covered in a negotiated labor-management agreement?
A.
B.
C.
D.
Corporate pricing policy
Grievance procedures
Management fringe benefits
Management compensation
247. Union shops are illegal in the state of North Carolina. This means that North Carolina:
A.
B.
C.
D.
is violating federal law.
has passed a right-to-work law.
allows firms to use yellow-dog contracts.
is taking advantage of a loophole in the National Labor Relations Act.
248. In a union shop:
A.
B.
C.
D.
workers must join the union within a stipulated time period (usually 30, 60, or 90 days) in order to keep their jobs.
workers must belong to the union before the company can hire them.
workers who do not join the union must pay a union fee.
workers are required to sign yellow-dog contracts.
249. The key difference between an agency shop agreement and an open shop agreement is that in an agency shop:
A. workers must join the union within a stipulated time period (usually 30, 60, or 90 days) in order to keep their jobs, but in an open shop the
workers are not required to join the union.
B. the union is restricted to a limited number of employees who perform specific types of jobs, but in an open shop membership in the union
is available to all workers.
C. workers who do not join the union must pay a fee or regular dues, while in an open shop workers who choose not to join the union do not
have to pay any union fees or dues.
D. workers must agree not to join a union in order to keep their jobs while in an open shop workers are free to join a union if they wish, but
they are not required to do so.
250. A key difference between a mediator and an arbitrator is that:
A. a mediator is appointed by labor and management, while an arbitrator is appointed by the federal government under terms set forth in the
Taft-Hartley Act.
B. a mediator is an unpaid volunteer, while an arbitrator is a paid professional.
C. an arbitrator can settle a labor-management dispute by rendering a binding decision, while a mediator can only make suggestions and
encourage the two sides in a dispute to continue negotiating.
D. a mediator is a lawyer who represents either labor or management in a labor dispute, while an arbitrator is an impartial advisor who listens
to both sides of the dispute and offers suggestions that help the two parties reach a mutually acceptable agreement.
251. A grievance is:
A. an implication that management has broken a management - union agreement, but it must be proven.
B. an employee's perception that management has not in some way fulfilled a labor contract agreement.
C. the disappointment that members of a union feel when management refuses to participate in good faith collective bargaining.
D. the result of a poorly arbitrated conflict.
252. Labor unions and management hope to resolve issues through collective bargaining. Each side comes to the table with a range of options
they are willing to consider - some more appealing than others. All options that each will consider fall within the _________________.
A.
B.
C.
D.
the LRB list of possibilities
the cases of consideration
the lands of indifference
bargaining zone
253. Hector is philosophically opposed to unions. "Why should I be required to join an organization I don't agree with, or pay a fee to support
it financially?" he asked some of his buddies who belong to the union. "I thought this was a free country, but I don't feel very free when
I'm told that I'll lose my job if I don't join the union. It just isn't fair." Hector's comments suggest he favors a(n) __________ shop
arrangement.
A.
B.
C.
D.
closed
open
regulated
certified
254. Amie was recently hired at Kreigmeister Industries as a repairperson. She was informed that if she chose not join the union representing
her fellow repair workers, she would still have to pay a fee to the union. Apparently, Kreigmeister operates under a(n):
A.
B.
C.
D.
illegal arrangement, since nonmembers can never legally be required to pay fees to unions.
closed shop agreement.
union shop agreement.
agency shop agreement.
255. In the late 1930s management at Bodenger Industries agreed to hire only those workers who were already members of the Steelworkers
Union. Bodenger had agreed to a type of arrangement known as a(n):
A.
B.
C.
D.
closed shop.
open shop.
union shop.
restricted shop.
256. At the Grenchit Corporation the union and management have not been able to reach a mutually satisfactory agreement on a grievance.
The two sides have agreed to bring in a(n) _________ who will examine the evidence and arguments on both sides and issue a binding
decision.
A.
B.
C.
D.
mediator
arbitrator
fact finder
union steward
257. Anna believes that her manager violated the terms of the negotiated labor-management agreement when he required her to report to work
on a holiday. She has discussed her concerns with her shop steward and he agrees with her. It is likely the steward will encourage Anna
to:
A.
B.
C.
D.
start looking for another job in a right-to-work state.
contact the local chapter of the ACLU.
send a letter of protest to the president of the union.
pursue a grievance over the interpretation of the labor contract.
258. You've been on your lunch break for less than 45 minutes when your boss orders you to return to work immediately or be docked an
hour's pay. You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Your boss stands firm on his order for you to return to work. Under protest, you return to work, but plan to file a grievance. The first step
you should take is to contact a(n):
A.
B.
C.
D.
arbitrator.
mediator.
strikebreaker.
shop steward.
259. Dr. Kwan, a professor at a local university, has been working with the union leaders and management at Empire Corporation to help the
two sides resolve differences over desired wage levels for a new contract. First, he met with each side privately to determine any
common ground for agreement. For the past week, he has worked with representatives from each side to promote communication and
compromise at the bargaining table. Dr. Kwan is a(n):
A.
B.
C.
D.
arbitrator.
mediator.
fact finder.
shop steward.
260. Yogi believes that an agency shop is the most desirable union security arrangement. Which of the following statements would be most
likely to represent Yogi's views?
A. A union can succeed in its collective bargaining efforts only if it represents all workers. Therefore, workers should be required to join the
union soon after they are hired.
B. Workers should be allowed to join a union if they wish, but they should not be required to join or pay a fee to the union in order to keep
their job.
C. Workers should not be required to join a union to keep their jobs. However, since all workers enjoy the benefits obtained through
collective bargaining, even those who do not join should pay a fee to support the union.
D. Unions should be replaced by employee stock ownership plans that give workers a say in the management of their firms.
261. According to information contained in the "Reaching Beyond Our Borders" box in Chapter 12, U.S. unions,
A.
B.
C.
D.
believe that they can bargain for better wages and benefits if they globalize.
are staving off European and Asian unions from trying to grow and gain a stronghold on the market that the U.S. unions enjoyed.
the lackluster numbers of participants in unions in Europe are an indication that unions will not be "going global" anytime soon.
like companies, see national borders as obstacles rather than opportunities.
262. Art B.Traytor, a member of the American Arbitration Association and long-standing faculty member of the business school of a large
university is heading out on the next plane for Detroit, Michigan where he will serve as an arbitrator between members of the United
Auto Workers union and management of a major auto manufacturer. His responsibilities will deal with:
A. certifying union representation at the Michigan manufacturing sites.
B. certifying union representation and collective bargaining at all manufacturing sites that the auto manufacturer currently has in operations,
including any in Mexico and Canada (in accordance with NAFTA).
C. listening to both sides of an unresolved dispute between labor and management and render a binding decision on the problem.
D. protecting the interests of management and staving off a strike by the auto workers.
263. As a management executive left the meeting between his team and the company's union representatives and headed straight for the
CEO's office, he reviewed where things seemed to breakdown. Union reps came to the table with three different offers to resolve the
insurance and vacation benefits problems laborers were experiencing. Management offered its own resolutions - two different ones, to be
exact. The problem was that a bargaining zone did not emerge. Neither side was willing to consider each other's alternatives. As he
reached the CEO's door, he was ready to concede that the negotiations were probably headed to ________________.
A.
B.
C.
D.
collective bargaining
arbitration
a vote
mediation
264. Historically, the most potent union tactic when collective bargaining efforts break down has been the:
A.
B.
C.
D.
strike.
lockout.
court injunction.
primary boycott.
265. When union members who have a dispute with a company walk around outside the firm's place of business carrying signs and talking to
the media and public about their concerns, they are using a tactic known as:
A.
B.
C.
D.
boycotting.
estopment.
striking.
picketing.
266. A(n) __________ occurs when a union encourages its members and the general public not to buy the products of a firm involved in a
labor dispute.
A.
B.
C.
D.
injunction
wildcat strike
primary boycott
embargo
267. A(n) ___________ is a court order directing someone to do something or to refrain from doing something.
A.
B.
C.
D.
restrictive covenant
injunction
judicial encyclical
declaratory judgment
268. Two of the most important tactics used by unions when collective bargaining efforts break down are:
A.
B.
C.
D.
strikes and boycotts.
injunctions and lockouts.
conciliation and yellow-dog contracts.
enforcement of right-to-work clauses and cooling-off periods.
269. A(n) ________ boycott is an illegal attempt by labor to convince others to stop doing business with a firm that does business with a
company that is the subject of a primary boycott.
A.
B.
C.
D.
extended
secondary
tactical
strategic
270. A(n) ___________ occurs when management temporarily closes a business to deny employment to workers.
A.
B.
C.
D.
lockout
secondary boycott
involuntary strike
employment injunction
271. At this time, the largest labor organization in the United States is the:
A.
B.
C.
D.
Teamsters.
Knights of Labor.
United Automobile Workers.
National Education Association.
272. Despite a 1938 Supreme Court ruling allowing their use, ___________ were seldom used by management during labor-management
disputes until the 1980s.
A.
B.
C.
D.
injunctions
secondary boycotts
strikebreakers
yellow-dog contracts
273. Under the provisions of the Taft-Hartley Act, the president can ask for a(n) ___________ to prevent a strike in a critical industry.
A.
B.
C.
D.
arbitrator
cooling-off period
open shop agreement
temporary take over by the federal government
274. The __________ is a tactic police, firefighters, and other workers who are not legally allowed to strike sometimes use to express their
frustration and displeasure with working conditions or pay.
A.
B.
C.
D.
gold cold
steel deal
slow-mo
blue flu
275. In recent years some unions have granted concessions and given up benefits secured in earlier contract negotiations in an attempt to save
jobs. These concessions are called:
A.
B.
C.
D.
injunctions.
givebacks.
buyouts.
disbenefits.
276. ___________ are workers a company hires to replace workers who are out on strike.
A.
B.
C.
D.
Yellow dogs
Convergent workers
Structural replacements
Strikebreakers
277. Since 1945, the unionized share of the workforce has:
A.
B.
C.
D.
remained remarkably steady.
dropped steadily, and today is only 12.4%.
risen steadily from 13.9% in 1945 to 32.1% in 2002.
fluctuated erratically with large increases in some years and large decreases in others.
278. According to the material in the "Spotlight on Small Business" box in Chapter 12, a relatively recent trend is for many __________ to
join unions.
A.
B.
C.
D.
nurses and doctors
minor league baseball players
bank tellers
teachers
279. The emergence of ______________ has changed the nature of work and affected labor-management relations.
A.
B.
C.
D.
global competition
yellow-dog contracts
closed shop agreements
scientific management
280. In recent years, many unions have begun to:
A.
B.
C.
D.
focus primarily on the issue of equitable pay.
assist management in redesigning work and recruiting and training workers from diverse backgrounds.
take a more confrontational approach when attempting to achieve important goals.
experience rapid but uneasy growth as more foreign-owned firms enter the U.S. economy, creating cultural problems for American
workers.
281. Which of the following tactics would management be most likely to use during a labor-management dispute?
A.
B.
C.
D.
picketing
secondary boycotts
lockouts
primary boycotts
282. The ability of unions to achieve key goals in the future will depend on their ability to:
A.
B.
C.
D.
reestablish their base of strength in the manufacturing sector.
find ways to cooperate with management in training workers and redesigning jobs.
repeal the Wagner Act and the Norris-LaGuardia Act in order to eliminate restrictions on union tactics.
return to the confrontational tactics used successfully in the 1930s when unions grew rapidly.
283. One strategy unions must adapt in order to grow in the future is to:
A.
B.
C.
D.
find ways to appeal to white-collar, female, and foreign-born workers.
find ways to prevent foreign companies from entering the U.S. market.
go back to the old methods of aggressive tactics and confrontation that were used successfully in the past.
emphasize recruiting efforts in the manufacturing sector of the economy.
284. Which of the following statements best summarizes the extent to which unions currently rely on strikes as a tactic when collective
bargaining breaks down?
A. Unions have become increasingly reliant on strikes as other, less confrontational, tactics have proven unsuccessful.
B. Some highly visible strikes in recent years show that the strike is not dead as a labor tactic, but very few labor disputes actually lead to a
strike.
C. Unions have almost completely avoided strikes since President Reagan replaced striking air traffic controllers with strikebreakers in 1981.
D. Strikes organized by unions are now less common than lockouts by management, indicating a major shift in attitudes between labor and
management.
285. When workers go on strike, management is often compelled to keep the business operation running. If it is unable to achieve this on its
own, management may:
A.
B.
C.
D.
elect to proceed with a lockout.
close down the facility and permanently fire the strikers.
hire strikebreakers.
picket.
286. The Making Ethical Decisions box titled, "When Do You Cross the Line?" discusses:
A.
B.
C.
D.
the violence that occurs at picket lines, and the welfare of those who are physically hurt as a result of these occurrences.
the ethics of participating as a strikebreaker in your community.
how givebacks are very unethical on the part of management in large operations and an indication that management has "crossed the line".
the ethics of participating in the blue flu.
287. Almost overnight, several police persons, all members of the police force of the growing suburb of Mayberry called in sick. As the
dispatcher took those calls - one right after the other, she speculated that there could be more to this story than she was hearing. In fact,
she thought it might be related to the emotional banter she heard the night before in the locker room as several members of the force
were leaving their shifts. The group was not happy with the recent changes in scheduling, the excessive over-time hours, and,
management's reluctance to begin negotiations on a new benefits package. She heard one person saying, "It's time for a mental health
day!" Although it is illegal for police to strike, they may be claiming to have ________.
A.
B.
C.
D.
Saturday nite fever
the blue flu
a lockout
a shutterbug
288. The Food Source Grocery chain stocks the products of Vegi-Delite Food Company at all of their supermarkets. The Teamsters Union is
currently involved in a labor dispute with Vegi-Delite. The union has already encouraged its members and the general public not to buy
Vegi-Delite products. Now it is threatening Food Source with the possibility of a boycott if it continues to carry the Vegi-Delite line. The
union is threatening Food Source with a(n):
A.
B.
C.
D.
primary boycott.
secondary boycott.
jurisdictional boycott.
informational boycott.
289. A large number of striking workers are currently picketing at the plant entrance to a Memphis Tire and Rubber plant. Because the pickets
have threatened people entering the plant and have vandalized some company property, Memphis' management believes it has just cause
to ask the courts for a(n) __________ placing limits on the number of pickets and their actions while picketing.
A.
B.
C.
D.
preemptive judgment
writ of contention
arbitration judgment
injunction
290. A labor dispute between the AFL-CIO and Gainesville Brewery is into its eighth month. The AFL-CIO has called on its membership and
the general public to refuse to purchase Gainesville products. The AFL-CIO is calling for a:
A.
B.
C.
D.
general boycott.
secondary boycott.
primary boycott.
public boycott.
291. As reported in the New York Times in November, 2008, Ron Gettelfinger, President of the U.A. W. (United Auto Workers Union)
testified with auto executives in front of the U.S. Congress, saying, "The U.A.W. can't be the low-hanging fruitWhile we're at the
table, we're asking that others come in and sacrifice as well." Mr.Gettelfinger was referring to the several ___________ that the
autoworkers' union had agree to over the past few years in order to save jobs and particularly keep retiree benefits intact.
A.
B.
C.
D.
primary boycotts
givebacks
herding tactics
legal mandates
292. The "Spotlight on Small Business" in Chapter 12 discusses the medical profession and unions. Which of the following statements
about the views of doctors and nurses is most accurate?
A. Although doctors have shown little interest in union representation, the last decade has seen almost all nurses join unions.
B. Doctors and nurses are reluctant to join unions because they believe unions are better suited to represent the interests of unskilled and
semiskilled labor than the interests of highly skilled professional health care workers.
C. Although both doctors and nurses have tried to form unions, the AFL-CIO has indicated that doctors and lawyers are not eligible for
membership.
D. Doctors and nurses have shown strong interest in seeking union representation.
293. A few years back, west coast dockworkers were locked out of their jobs in 29 west coast ports. Because many consumer goods used in
the U.S. are transported from Asia to the U.S. through these ports, the lockout could have damaged the U.S. economy and security if
allowed to continue. The President ordered the dockworkers back to work and both sides were ordered back to the bargaining table.
Which of the following statements is the most accurate conclusion about the outcome of the labor dispute between the dockworkers
union and shipping companies on the west coast? The dispute between the dockworkers and shipping companies showed that:
A.
B.
C.
D.
the only effective weapon unions now have in labor-management disputes is the threat of a strike.
arbitration is the only effective way to settle labor-management disputes in industries that are critical to the nation's safety or security.
the Taft-Hartley Act must be invoked when there is a risk to national security.
unions have become so powerful that they can shut down the entire U.S. economy.
294. In July 2009, London Met University workers went on strike and formed picket lines to oppose management's continued restructuring
and the elimination of jobs. It was reported that London postal workers who belong to the Communication Workers Union refused to
deliver mail to any building on the London Met campus, in respect of the picket lines and in honor of their fellow trade union members.
Essentially, the courtesy that the postal workers gave to the striking employees was a:
A.
B.
C.
D.
primary boycott
secondary boycott
tertiary boycott
service industry boycott
295. When AT&T anticipated that 20,000 mobility workers were planning to strike to show their solidarity against concerns of unfair
compensation, management was already calling staffing agents to temporarily employ persons to cover for striking employees.
Traditionally, these workers are called ___________.
A.
B.
C.
D.
mobile temps
picket busters
strikebreakers
boycotters
296. A comparison of compensation of CEOs in the U.S. with compensation of top executives in Canada and Europe indicates that:
A.
B.
C.
D.
U.S. CEOs are working for much lower compensation.
pay for CEOs at major corporations is about the same in all of these nations.
executives in the U.S. are compensated at a much higher rate.
U.S. executives are paid better than average when their firms are successful, but worse than average when their firms struggle.
297. According to one of the top management consultants of the past 40 years, the late Peter Drucker:
A. top executives are entitled to any level of pay they can negotiate with their board of directors.
B. the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm
earns higher profits than competitors.
C. all bonuses paid to CEOs should be tied to long-run increases in market share.
D. CEOs should not earn much more than 20 times the earnings of the company's lowest-paid employee.
298. Over the past several decades, the compensation of CEOs of large U.S. corporations has:
A.
B.
C.
D.
remained relatively stable once inflation is taken into account.
become based more on salary and less on stock options.
increased enormously, even when inflation is taken into account.
consistently lagged behind the compensation of top executives in Europe and Asia.
299. In some European countries, companies practice co-determination. For example,
A.
B.
C.
D.
CEOs can only earn their salaries if the company is profitable.
in some cases, 50% of the board of directors is company workers.
the CEO compensation is determined by the Stockholders and the government.
the union representatives and management form a hiring committee to select the CEO.
300. In the past, the compensation of chief executive officers of corporations was based on:
A.
B.
C.
D.
the assumption that CEOs should be major stockholders of the corporations that they managed.
a generally accepted principle that CEOs should earn no more than 40 times the compensation of the company's lowest-paid employee.
company profitability and increases in the value of their firm's stock.
the size of the company.
301. _____________ is the demand for equal pay for jobs requiring similar levels of education, training, and skill.
A.
B.
C.
D.
Affirmative action
Compensation by objectives
Equal opportunity pay
Comparable worth
302. Women have become a __________ part of the labor force.
A.
B.
C.
D.
sizeable and permanent
temporary
smaller
less important
303. Today, women earn approximately ________ of what men earn, though the disparity varies considerably by profession and the level of
education.
A.
B.
C.
D.
26%
49%
79%
97%
304. Studies conducted at the University of Michigan found that earnings of women graduating with baccalaureate degrees were:
A.
B.
C.
D.
less than 60% of men's earnings in all fields.
about 70% of what male graduates earned.
about 96% of men's earnings.
about 104% of men's earnings.
305. ____________ refers to unwelcome sexual advances, requests for sexual favors, and other unsolicited conduct of a sexual nature.
A.
B.
C.
D.
Sexual harassment
Gender bias
Sexual opportunism
Sexual coercion
306. The number of sexual harassment complaints filed annually with the Equal Opportunity Commission:
A.
B.
C.
D.
decreased by almost 30% between 1992 and 1999.
has leveled off since 2000.
remained fairly stable in the 1990s but has recently increased dramatically.
was greatly exaggerated by the media during the 1990s and early 2000s.
307. Sexual harassment laws:
A.
B.
C.
D.
apply only to situations in which men make unwelcome advances to women.
are enforceable only in states that have enacted right-to-work laws.
apply to the conduct of women as well as men.
are applied only in situations in which a person must submit to unwanted advances in order to keep his or her job.
308. _________ sexual harassment refers to situations in which an employee's submission to unwanted conduct is made either explicitly or
implicitly a term or condition of employment or is used to influence employment decisions affecting the worker's job status.
A.
B.
C.
D.
Quid pro quo
Post hoc
Ceteris paribus
Reflexive
309. Harassment that creates an intimidating, or offensive work environment falls under the type of sexual harassment known as a(n):
A.
B.
C.
D.
hostile work environment.
quid pro quo.
extroverted harassment.
de jure harassment.
310. Small businesses have found that child care programs:
A.
B.
C.
D.
are too expensive to offer, which puts them at a serious disadvantage when competing against larger firms to attract the best workers.
can be offered in creative ways that enable the firm to offer an attractive benefit to workers with young children.
are less necessary now than they were before the federal government expanded its child care programs.
are not very expensive, but tend to be more trouble than they are worth.
311. As the workforce of the U.S. ages, a greater percentage of workers will have to concern themselves with:
A.
B.
C.
D.
finding care for their children.
caring for older relatives.
the educational benefits of downsizing.
transportation issues.
312. According to Sandra Timmermann, Director of Met Life's Mature Market Institute, the key job-related issue of the next decade will be:
A. child care.
B. continuing education.
C. sexual harassment.
D. elder care.
313. From a work-related perspective, elder care providers may require _____________ as part of their job.
A.
B.
C.
D.
mini-van ownership
medicare options
flextime, job sharing, and telecommuting
distance learning classes
314. It is estimated that firms lose ___________ annually in productivity, absenteeism, and employee turnover due to caring for aging
parents.
A.
B.
C.
D.
$42 million
$10 thousand
$11 billion
a decreasing amount
315. Drug problems among workers is costing the U.S. economy upwards of ______ in lost work, health care costs, and even crime and
accidents.
A.
B.
C.
D.
$100 million
$50 billion
$275 billion
$50 thousand
316. The U.S. Department of Labor cites ________ as the third leading cause of job-related fatalities.
A.
B.
C.
D.
homicide
equipment-related accidents
suicide
toxic chemicals
317. The national Institute of Health estimates that each drug abuser can cost an employer approximately __________ annually.
A.
B.
C.
D.
$500
$1,000
$5,000
$11,000
318. Which of the following is an effective way to deal with the growing threat of workplace violence?
A.
B.
C.
D.
Ignore it, as the amount of workplace violence has actually decreased substantially.
Hire managers with strong interpersonal skills.
Ask employees that are experiencing threats or harassment to take paid leave.
Avoid disciplining employees who are not performing up to par since they will learn on the job and their performance will improve over
time.
319. In 1997, the Supreme Court rendered a decision on a case stipulating that sexual harassment law:
A.
B.
C.
D.
did not apply to casual jokes of a sexual nature.
applied to same-sex harassment, as well.
did not apply to married couples who are working together.
only applied to cases where a subordinate felt harassed by an immediate supervisor.
320. The subject" "Who pays for child care when the parent(s) works?" is
A.
B.
C.
D.
not a concern because the law requires companies to provide child care facilities, or to pay employees a stipend if it is not available.
by law, a shared responsibility between employer and employee.
not the concern of employees without children or single-income households because they always get to choose a different benefit.
a controversial subject, with no legal resolution to date.
321. Which of the following is likely to remain a controversial labor-management issue in the future?
A.
B.
C.
D.
The ability of employers to use yellow-dog contracts
Enforcement of the Taft-Hartley Act
Sexual harassment
A resurgence of the Knights of Labor
322. One of the major criticisms of executive compensation in the United States is that:
A.
B.
C.
D.
despite their high pay, top managers usually work fewer hours than other employees in the firm.
the compensation of top executives often seems to have little or no relationship to how well their companies are performing.
top executives' compensation does nothing to encourage them to improve the value of their company's stock.
many U.S. executives are paid much less than their counterparts earn in Europe and Japan.
323. According to material in the "Legal Briefcase" box in Chapter 12, when chief executives of large companies retire or get fired they:
A.
B.
C.
D.
are legally required to forfeit any shares of stock they received as compensation from the firm.
are sometimes better off financially than if they had stayed with the company.
typically continue to receive their salary for about two years, but forgo any bonuses or other forms of compensation.
usually receive more income from dividends on the company stock they own than they do from their severance package or retirement
pension.
324. The fact that workers sometimes serve on the board of directors of European companies helps explain why:
A.
B.
C.
D.
European executives accept less responsibility for the successes and failures of the firms they lead.
European CEOs earn much less than American CEOs.
European firms are more likely to seek protection from foreign competition than American firms.
workers in Europe are less likely to believe unions are necessary than workers in the United States.
325. Comparable worth primarily is concerned with:
A.
B.
C.
D.
ensuring equal pay for men and women who work for the same firm and have the same job title.
reducing the gap between pay for executives and the pay for non-managerial employees.
ensuring equal pay for jobs requiring similar levels of skill, education and training.
determining whether men or women are better suited to perform various jobs.
326. Which of the following statements about drug users is a claim made by the National Institute of Drug Abuse?
A.
B.
C.
D.
If you drink a lot of alcohol, you also abuse drugs.
Drug users typically cost their company more in health and workman's comp claims.
Drug users are (overall) friendlier people because they do not take much seriously, including their jobs.
There is a strong correlation between drug abuse and sexual harassment.
327. On-site daycare facilities:
A.
B.
C.
D.
are now very common in large and small business.
decrease employee productivity because parents are distracted by going to the daycare site too many times during the day.
are costly for companies to maintain.
develop smarter children.
328. An assessment of elder care needs in the United States suggests that:
A. most firms have done a better job in responding to the need for elder care than they have in dealing with the need for child care.
B. employees who must care for elderly parents are often in positions that are more critical to the firm's success than workers with concerns
about child care.
C. although an increasing number of employees must find ways to care for elderly parents, fewer firms will need to offer elder care than child
care because the federal government already provides a great deal of assistance to the elderly.
D. while an issue for some workers, at the present time elder care is not a high profile item for most businesses.
329. Paulo owns a few shares of stock in a large and diversified firm. He realizes that the CEO of the company is responsible for a multibillion dollar business, but is upset with what he feels is excessive compensation for the chief executive officer, particularly since the
firm has reported losses for the past two years. Paulo's concerns are:
A. unfounded, since laws in the United States prevent firms from paying large salaries or bonuses to executives when a firm reports a loss.
B. based on an erroneous conclusion, because CEO pay is always based on a formula tied to the company's profits and losses.
C. likely to be well-founded since CEO compensation at many U.S. companies has actually increased even when the company performed
poorly.
D. not entirely unfounded, but he needs to realize that the pay received by most chief executives must be reinvested in the company if it's
unprofitable for three years in a row.
330. Exceptional Enterprises launched a program to evaluate the relative levels of skills, education, and training needed to perform various
jobs. Based on the results of this evaluation, the firm intends to adjust pay scales so that jobs requiring similar levels of skills, abilities,
and education will receive similar pay. Exceptional Enterprises' program is an attempt to deal with the issue of:
A.
B.
C.
D.
comparable worth.
affirmative action.
reverse discrimination.
equal employment opportunities.
331. Which of the following statements about the costs of elder care is most accurate?
A. It should be much less expensive for firms to provide elder care than for them to provide child-care.
B. The financial burdens of elder care on the children of aging parents are likely to become less serious in the future than they are today,
because many senior citizens are now remaining employed into their 70s rather than retiring in their early 60s.
C. Although elder care is expensive, the good news is that companies can receive a great deal of assistance from the federal government
when they establish qualified elder care programs.
D. The costs of elder care are likely to rise very rapidly in coming years as an increasing number of older and more experienced employees
face the need to care for aging parents and other relatives.
332. As an employee of the human resource department of a major corporation, you are concerned about the potential costs of drug abuse.
You are contemplating testing employees for substance abuse. Before adopting such tests, you should know that:
A.
B.
C.
D.
this type of testing has been found to be illegal, but many firms do it anyway.
medical tests of this nature are not very accurate.
if you use these tests, your company will join over 70 percent of major companies that test workers and job applicants.
these tests are very expensive, and should only be given to those who may belong to groups judged to be at higher risk.
333. Tom Dash works as a researcher studying the effects of alcohol and drug abuse at a large research university on the east coast. The
alcohol center's mission statement reads, "Our mission is to conduct, coordinate, and promote basic and clinical research on the causes,
prevention, and treatment of alcoholism and alcoholic disease." Looking forward, which of the following statements are you likely to
agree with?
A. Tom's work, although impressive will not have any short term or long-term effect on the cost of labor in the U.S.
B.
The U.S. has seen significant declines in alcohol and drug related issues in the work place. Tom would better serve the business world by
working on AIDS related diseases.
C. Illegal drug use is more of a problem than alcohol in terms of the number of work-related accidents that these problems cause. Tom should
know, though that the baby boomers are the major drug users, and they are retiring.
D. Tom Dash's work is greatly needed by business and industry. Alcohol and drug use continue to be on the rise and present serious work
related costs to businesses across almost all industries.
334. SafenSwift Airlines implemented a program to curb workplace violence before it occurs. Under this program, the employees of
SafenSwift can expect to:
A.
B.
C.
D.
share in any profits their airline earns.
get paid extended leave if they become especially and visibly angry at work.
see much more use of contingent workers.
take part in focus groups to share their ideas about workplace violence prevention.
335. Which of the following statements about sexual harassment is most accurate?
A. Only men can be charged with sexual harassment.
B. Sexual harassment cannot be proven unless the employee's submission to such conduct was made explicitly a term of employment or was
used to influence the results of the employee's performance appraisal.
C. One flaw with the current laws concerning sexual harassment is that they do not take into account the possibility of same-sex harassment.
D. In evaluating charges of sexual harassment, the courts place a great deal of emphasis on whether the behavior was unwelcomed.
336. Last year, a retired schoolteacher moved her parents from Michigan to northern Illinois to live with her. For the past year, she was
traveling two times each month to provide care for this eighty-six year old couple, including coordinating medical services and meals. In
conversations with her family members, the teacher remarked, "If I were not already retired, I would have to quit my job to continue this
way!" This retired teacher:
A. is in an unusual situation because there are more persons entering the workforce with childcare issues than with taking care of aging
Americans.
B. is like a growing number of families whose households are caring for aging parents and relatives.
C. will benefit by all the affordable elder care facilities that cost about $20,000 per year.
D. should be advised that Medicare and Medicaid are covering all medical expenses for person 65 years and older, so she should not be
experiencing such a burden.
337. Identify several laws that significantly influenced labor-management relations. Discuss the major provisions of each law.
338. Explain the difference between closed, open, union, and agency shop agreements. What impact did the Taft-Hartley Act have on the use
of closed and union shop arrangements?
339. Identify and describe the major tactics used by unions and management when collective bargaining efforts break down.
340. Identify and discuss three controversial employee-management issues.
341. Union membership has declined in recent years. What has led to this decline and what can unions do to turn this trend around?
Mini-Case
The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly
by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since
the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for
cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who
shared his views. Together, the new management team made a series of moves that did not sit well with Endrun's workers. First, they
announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut
corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it
was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the
wages of all production line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the
company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management
team. A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to
reduce costs, increase productivity, and improve the company's profits."
Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at
the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the
company decides to downsize. Ima and Boyd are not intimidated by these management threats. "I wish we didn't have to do this," Ima
recently told many of her fellow workers at the plant. "But someone has to stop Ty Runt and his team from ruining our jobs."
342. Ima, Boyd, and their fellow employees at Endrun work on an assembly line and do not have a specialized skill. If they are successful in
their quest to set-up a union, they would probably be represented by a(n) ________ union.
A.
B.
C.
D.
craft
industrial
freelance
traditional
343. The steps Ima, Boyd and their fellow workers must take to get the union legally recognized as the authorized bargaining agent are parts
of the __________ process.
A.
B.
C.
D.
accreditation
arbitration
certification
collective bargaining
344. After gaining union representation, any workers with complaints regarding promotions, layoffs, and job assignments will file a(n)
________ with their shop steward.
A.
B.
C.
D.
grievance
arbitration request
injunction
yellow-dog contract
345. The plant where Ima and Boyd work is located in Illinois, which does not have a right-to-work law. If the workers approve the union as
their bargaining agent, Boyd wants to get the greatest union membership that is legally possible. Boyd is likely to push for a(n):
A.
B.
C.
D.
closed shop.
agency shop.
union shop.
sweatshop.
346. Ty Runt has always taken a hard line against unionization efforts. Two years ago, when workers at his previous company tried to obtain
union representation, the company closed down the plant and refused to let employees work until they abandoned their efforts to form a
union. This management tactic is called a(n):
A.
B.
C.
D.
management strike.
secondary boycott.
injunction.
lockout.
347. If management tries to threaten or punish Ima and Boyd for their efforts to gain union representation, the two workers could ask the
____________ to investigate these unfair labor practices.
A.
B.
C.
D.
National Labor Relations Board
Bureau of Labor-Management Relations
Department of Justice
Federal Trade Commission
348. If management's efforts did not disrupt everyone's work life enough the company board of directors just awarded management with
increased pay while cutting the workers pay. Which of the following issues promises to be a controversial labor-management issue?
A.
B.
C.
D.
Executive compensation
Golden parachutes
Equal employment pay requirements
Comparable worthcare
12 KEY
1. (p. 318) Throughout most of American history, the relationship between managers and employees has been fairly smooth.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #1
Topic: Employee-Management Issues
2. (p. 318) Historically, managers were less concerned about productivity and more concerned with friendly relations with coworkers.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #2
Topic: Employee-Management Issues
3. (p. 318) One of the things that labor is interested in is fair and competent management.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #3
Topic: Employee-Management Issues
4. (p. 318) A union is an employee organization that has the main goal of representing its members in employee-management negotiation
concerning job-related issues.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #4
Topic: Employee-Management Issues
5. (p. 318) Even in their infancy, the main goal of most labor unions was to provide members with increased management power.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #5
Topic: The Early History of Organized Labor
6. (p. 318) Labor unions played a major role in establishing minimum wage laws, child-labor laws, and improvements in job safety.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #6
Topic: The Early History of Organized Labor
7. (p. 318) Today labor unions have seen a revitalization of support and union membership has increased significantly.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #7
Topic: Employee-Management Issues
8. (p. 319) Most historians view the increase in union membership in the United States as an outgrowth of the transition from an industrial
economy to a service economy during the middle part of the 20th century.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #8
Topic: Labor Unions from Different Perspectives
9. (p. 319) Some business observers contend that the previous success of labor unions is a reason for the decline of labor unions.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #9
Topic: The History of Organized Labor
10. (p. 319) The presence of formal labor organizations in the United States dates back to the late 1700s.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #10
Topic: The History of Organized Labor
11. (p. 319) Some contend that the main reason membership in labor unions has declined in recent years has been the passage of anti-labor
legislation in the late 1980s that guaranteed all employees of a firm the same wages and benefits whether they joined a union or not.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #11
Topic: The History of Organized Labor
12. (p. 319) The Knights of Labor was the first truly national labor organization in the United States.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #12
Topic: The History of Organized Labor
13. (p. 320) A craft union is an organization of skilled specialists in a particular craft or trade.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #13
Topic: The History of Organized Labor
14. (p. 320) A union that consists of members who are all skilled specialists in a particular trade is called an industrial guild.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #14
Topic: The History of Organized Labor
15. (p. 320) The Knights of Labor, the first national labor organization, offered membership to all working people, including employers.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #15
Topic: The History of Organized Labor
16. (p. 320) The first national labor organization, the Knights of Labor sought to gain enough political power to restructure the entire U.S.
economy.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #16
Topic: The History of Organized Labor
17. (p. 320) Samuel Gompers was the most important leader of the American Federation of Labor during its early years.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #17
Topic: The History of Organized Labor
18. (p. 320) The AFL (American Federation of Labor) was initially intended to be a single craft union.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #18
Topic: The History of Organized Labor
19. (p. 320) During its early years, the AFL tried to expand as rapidly as possible by recruiting both skilled and unskilled workers.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #19
Topic: The History of Organized Labor
20. (p. 320) In its early years, the AFL (American Federation of Labor) limited its membership to skilled workers.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #20
Topic: The History of Organized Labor
21. (p. 320) Membership in industrial unions was strictly limited to skilled craftspeople.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #21
Topic: The History of Organized Labor
22. (p. 320) John L. Lewis broke with the American Federation of Labor (AFL) in 1935 over membership issues and formed a rival group
known as the Congress of Industrial Organizations (CIO).
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #22
Topic: The History of Organized Labor
23. (p. 320) The initial objective of the American Federation of Labor (AFL) was to provide union membership to workers in all industries.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #23
Topic: The History of Organized Labor
24. (p. 320) Today, more than 55 national and international labor unions are affiliated with the AFL-CIO.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #24
Topic: The History of Organized Labor
25. (p. 320) For 20 years, the CIO was a major rival of the AFL in the contest for leadership of the labor movement.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #25
Topic: The History of Organized Labor
26. (p. 320) In 1955, after the passage of the Taft-Hartley Act, the AFL and CIO merged to create the AFL-CIO.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #26
Topic: The History of Organized Labor
27. (p. 319) Union membership is likely to rise in the coming decade, because the same economic and political conditions that gave rise to
unions in the late 19th and early 20th centuries are now reappearing.
FALSE
There is a great deal of debate concerning the future strength and viability of unions. However, it would be hard to argue that the conditions
that plagued workers in the late 19th and early 20th centuries are reappearing. U.S. workers now have legal protection from abuse,
exploitation, and discrimination, and contemporary managers tend to take a positive and progressive approach toward dealing with
employees.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #27
Topic: Labor Unions from Different Perspectives
28. (p. 318) A major difference between early labor organizations in the United States and today's labor unions is that the early labor groups
often were temporary organizations that disbanded after achieving a short-range goal, while today's unions are permanent
organizations.
TRUE
Early labor organizations were often established to achieve a specific short-run goal. After the goal was achieved, the organization would
disband. In contrast, today's unions are permanent organizations.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #28
Topic: Employee-Management Issues
29. (p. 320) The Knights of Labor and the American Federation of Labor were actually very similar in their aims, tactics, and membership. The
only major difference was in the effectiveness of their leaders.
FALSE
The Knights of Labor was very broad-based, allowing all working people, including employers, to become members. It promoted social
causes as well as labor goals. The AFL was a federation of craft unions. As such, membership was limited to skilled workers. Moreover, the
AFL had a narrower focus, concentrating almost exclusively on fundamental labor issues.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #29
Topic: Labor Unions from Different Perspectives
30. (p. 320) The Industrial Revolution slowed the growth of unions by creating a rapidly rising standard of living for most workers.
FALSE
The Industrial Revolution created harsh working conditions for most workers. Hours were long, pay was low, and job security was rare. Child
labor was common. These conditions set the stage for the emergence of national labor organizations.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #30
Topic: Labor Unions from Different Perspectives
31. (p. 319) Outspoken critics of today's labor unions believe that these organizations have lost their focus. They contend that they no longer
represent the rights of workers, as much as they are concerned with the vitality and strength of the union itself.
TRUE
Today's critics of organized labor maintain that few of the inhumane conditions once dominant in U.S. industry exist in the modern
workplace. They claim that "organized labor is an industry in itself, and protecting workers has become secondary."
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #31
Topic: Labor Unions from Different Perspectives
32. (p. 319) Abraham was an unskilled worker who toiled 10 hours a day on an assembly line during the early and mid 1930s. His hours were
long, his wages were low and his working conditions were unsafe and unpleasant. Abraham would probably be more sympathetic to
the views of John L. Lewis than to those of Samuel Gompers.
TRUE
The primary reason that the AFL did not recognize the CIO in its infancy was a disagreement over whether to include industrial as well as
craft unions in the AFL. The AFL was founded in 1886, and under the leadership of Samuel Gompers, it initially limited its membership to
skilled workers who belonged to craft unions. In 1935, John L. Lewis, president of the United Mine Workers, proposed that the AFL also
organize unskilled and semiskilled workers in industrial unions. When his proposal was rejected, Lewis and his followers broke with the AFL
and formed the CIO.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #32
Topic: The Early History of Organized Labor
33. (p. 320) The Zendor Corporation operates a manufacturing plant in Bellridge. The work is arranged in an assembly line and is performed by
semiskilled and unskilled workers. These workers are looking into obtaining union representation. The type of union they would
belong to would be classified as an industrial union.
TRUE
An industrial union is a labor organization of unskilled and semiskilled workers in mass-production industries such as automobiles and
mining.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #33
Topic: The Early History of Organized Labor
34. (p. 320) The growth and strength of organized labor has always depended on one thing: the state of the economy.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #34
Topic: Labor, Legislation and Collective Bargaining
35. (p. 321) The Norris-LaGuardia Act made it more difficult for unions to legally recruit new members.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #35
Topic: Labor, Legislation and Collective Bargaining
36. (p. 321) A yellow-dog contract required workers to agree not to join a union as a condition of their employment.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #36
Topic: Labor, Legislation and Collective Bargaining
37. (p. 321) The Norris-LaGuardia Act prohibits firms from requiring workers to agree not to join a union as a condition of their employment.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #37
Topic: Labor, Legislation and Collective Bargaining
38. (p. 321) Samuel Gompers believed that collective bargaining was likely to be an ineffective way for unions to achieve their objectives.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #38
Topic: Labor, Legislation and Collective Bargaining
39. (p. 321) The National Labor Relations Act gave labor the legal justification to pursue collective bargaining and other key labor issues.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #39
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
40. (p. 321) The process by which a union is recognized by the NLRB as the authorized bargaining agent for a group of workers is called
collective bargaining.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #40
Topic: Labor, Legislation and Collective Bargaining
41. (p. 321) Once a union is certified to represent a group of workers, decertification is not a consideration or future possibility.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #41
Topic: Labor, Legislation and Collective Bargaining
42. (p. 321) Collective bargaining is the process whereby union and management representatives negotiate a labor-management agreement, or
contract, for workers.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #42
Topic: Labor, Legislation and Collective Bargaining
43. (p. 321) The Wagner Act established the first minimum wage for workers.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #43
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
44. (p. 321) One goal of the Landrum-Griffin Act was to clean up union corruption.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #44
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
45. (p. 321) The Norris-LaGuardia Act prohibited courts from issuing injunctions against nonviolent union activities.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #45
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
46. (p. 321) The National Labor Relations Act gave employees the right to form and join labor organizations and the right to engage in activities
such as strikes and boycotts.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #46
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
47. (p. 321) The Taft-Hartley Act strengthened unions by giving them the right to engage in featherbedding and secondary boycotts.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #47
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
48. (p. 321) The Taft-Hartley Act allowed states to pass laws that prohibited compulsory union membership.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #48
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
49. (p. 321) The Taft-Hartley Act gave more power to management.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #49
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
50. (p. 322) A card check is a method of openly soliciting signatures in favor of the organization of a union.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #50
Topic: Labor Legislation and Collective Bargaining
51. (p. 321 Under the Wagner Act, the National Labor Relations Board can establish a labor union in an organization if it finds evidence of
substantial labor abuse within that organization.
322)
FALSE
The National Labor Relations Board does not have the right to establish a union. It does, however, oversee certification elections, and will
recognize a union as the authorized bargaining agent for a group of workers if a majority of those workers vote in favor of union
representation.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #51
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
52. (p. 321 The NLRB (National Labor Relations Board) has created procedures that union advocates must follow in order to organize a union
at a place of business. The multi-step procedure culminates with a secret vote by the employees of the organization.
322)
TRUE
The U.S., government, through the Wagner Act, created the NLRB, the National Labor Relations Board, a five-member committee appointed
by the President of the United States. It oversees the organization of unions and certifies union groups. Only after 30% or more of the
employees of an organization have signed a petition in favor of union organization, then the NLRB will proceed with a secret ballot vote.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #52
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
53. (p. 321 The NLRB oversees the decertification of unions. An employer (the company owners) can petition and seek the signatures of 30%
of the employees in order to decertify the union - in other words, officially, the union could no longer represent the employees in any
bargaining negotiations.
322)
FALSE
The NLRB can also decertify unions, however, an employee or an employee's representative must initiate a petition and seek the signatures of
30% of the current employees, before the decertification goes to a secret ballot vote of all employees. The employer does not seek the
signatures.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #53
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
54. (p. 322) Union representatives currently prefer secret ballot voting because they do not want to intimidate employees into voting for a union
by asking them to outwardly sign a card check in favor of unions.
FALSE
Union representatives would like to see the secret ballot status overturned in favor of a card check, whereby employees openly approve of
union representation.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #54
Topic: Figure 12.1: Labor Legislation and Collective Bargaining
55. (p. 321) Jenna is a member of a union team that is negotiating with management to obtain a labor contract for the workers represented by the
union. Jenna is involved in contract arbitration.
FALSE
The process by which representatives of labor and management seek to negotiate a mutually acceptable labor contract is known as collective
bargaining.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #55
Topic: Labor Legislation and Collective Bargaining
56. (p. 321) During an interview with Zytex company representative, Hillary was told that Zytex faces intense competition and management
believes that the only way the company can survive is to have a nonunion workforce. Therefore, all workers Zytex hires must sign
an employment contract stating that they agree not to join a union while they work for Zytex. This requirement by Zytex is illegal in
the United States.
TRUE
A yellow-dog contract is a contract that requires workers to agree not to join a union as a condition of employment. The Norris-LaGuardia
Act of 1932 declared that this type of arrangement was illegal.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #56
Topic: Labor Legislation and Collective Bargaining
57. (p. 321) The workers at the Kerriton Company are unhappy with the way their union has been representing them. The Wagner Act allows
these workers to take away the union's right to represent them through a process known as decertification.
TRUE
The Wagner Act established a process to take away the right of a union to represent a group of workers. This process is known as
decertification.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #57
Topic: Labor Legislation and Collective Bargaining
58. (p. 321) Jake remembers his grandfather telling him about going to work at 16 years of age in the coal mines of southern Illinois. In order to
get the job, he had to agree to a yellow-dog contract. Essentially this meant he would only get the job if he agreed not to join a
union.
TRUE
A yellow dog contract made employees agree, as a condition of employment, they would not attempt to unionize, or join union.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #58
Topic: Labor Legislation and Collective Bargaining
59. (p. 322) Last week, Angie was approached by two of her coworkers during the lunch break pressuring her to sign a card check in favor of
organizing a union. The card check is currently a NLRB (National Labor Relations Board) approved method of finalizing
unionization.
FALSE
Although union officials would like for the NLRB to allow the card check method of voting for a union, it is not the currently accepted or
legal method for proceeding to organize a union in any establishment.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #59
Topic: Labor Legislation and Collective Bargaining
60. (p. 323) The main objectives of organized labor, better wages and shorter hours, have remained remarkably stable over time.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #60
Topic: Objectives of Organized Labor
61. (p. 323) During the 1970s, the primary objective of most labor unions was to gain additional pay and benefits for their members.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #61
Topic: Objectives of Organized Labor
62. (p. 323) During the 1980s unions became increasingly concerned with the issues of job security and union recognition.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #62
Topic: Objectives of Organized Labor
63. (p. 323) The AFL-CIO was a major supporter of the NAFTA agreement to expand trade and commerce among the nations of the United
States, Canada, and Mexico.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #63
Topic: Objectives of Organized Labor
64. (p. 323) The AFL-CIO has supported offshore outsourcing as a method of increasing work opportunities for union members.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #64
Topic: Objectives of Organized Labor
65. (p. 323) Wage rates, hours of work, employee benefits, and job rights and seniority are issues covered in a typical negotiated labormanagement agreement.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #65
Topic: Objectives of Organized Labor
66. (p. 323) A union security clause in a labor-management agreement stipulates that employees who benefit from a union must either officially
join or at least pay dues to the union.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #66
Topic: Objectives of Organized Labor
67. (p. 323) The negotiated labor-management agreement clarifies the terms and conditions under which labor and management agree to
function over a specified period of time.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #67
Topic: Objectives of Organized Labor
68. (p. 323) Under a closed shop agreement, workers must agree not to join a union in order to keep their jobs.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #68
Topic: Objectives of Organized Labor
69. (p. 323) Until passage of the Taft-Hartley Act, under a closed shop agreement, a company could only hire workers who already belonged to
a union.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #69
Topic: Objectives of Organized Labor
70. (p. 324) Under a union shop agreement, workers must belong to a union before they can be hired.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #70
Topic: Objectives of Organized Labor
71. (p. 324) The Taft-Hartley Act made the union shop agreement illegal in all states.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #71
Topic: Objectives of Organized Labor
72. (p. 324) A union shop agreement is illegal in states that have passed right-to-work laws.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #72
Topic: Objectives of Organized Labor
73. (p. 324) In an agency shop agreement, workers who do not belong to the union must pay a union fee or pay regular union dues.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #73
Topic: Objectives of Organized Labor
74. (p. 324) Under an agency shop agreement, only union members are represented at the bargaining table.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #74
Topic: Objectives of Organized Labor
75. (p. 324) Under an open shop agreement, workers have the option to join or not join a union, if one is present in the workplace.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #75
Topic: Objectives of Organized Labor
76. (p. 324) Unions in Europe historically have held more influence in the workplace than unions have in the United States.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #76
Topic: Objectives of Organized Labor
77. (p. 325) According to the "Reaching Beyond Our Borders" box in Chapter 12, global labor movements are forming to emphasize the setting
of global labor standards.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #77
Topic: Reaching Beyond Our Borders box
78. (p. 325) A grievance is a charge by managers that the union is not abiding by the terms of the negotiated labor-management agreement.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #78
Topic: Resolving Labor-Management Disagreements
79. (p. 325) The sources of many grievances include overtime rules, promotions, layoffs, and job assignments.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #79
Topic: Resolving Labor-Management Disagreements
80. (p. 326) The vast majority of grievances filed by union members are negotiated and resolved by shop stewards and supervisory managers.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #80
Topic: Resolving Labor-Management Disagreements
81. (p. 326) A bargaining zone is the time period during which a third party is used to reach agreement on union disputes.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #81
Topic: Mediation and Arbitration
82. (p. 326
327)
A mediator has the power to impose a binding settlement on labor and management.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #82
Topic: Mediation and Arbitration
83. (p. 327) Arbitration is an agreement to bring in an impartial third party to render a binding decision in a labor dispute.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #83
Topic: Mediation and Arbitration
84. (p. 327) Many of the negotiated labor-management agreements in the United States call for the use of an arbitrator to end labor disputes.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #84
Topic: Mediation and Arbitration
85. (p. 326 Arbitration and mediation are alike in that both involve an impartial third party to help in the negotiation process. The differences in
these two approaches is that an arbitrator's decision is binding - both parties agree to this on the front end; a mediator encourages the
two conflicting parties to continue to negotiate and may make suggestions in pursuit of a resolution.
327)
TRUE
Mediation is a process whereby an impartial third party steps in to help bring the two parties to resolution. The mediator makes suggestions
but does not bind the parties to an agreement. An arbitrator is an agreed upon third party who listens to both parties and prepares a binding
decision in the labor dispute.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #85
Topic: Mediation and Arbitration
86. (p. 326 In the past, a variety of professionals have served as mediators. If a labor dispute were to breakout between the management at an
auto manufacturer and the local union that represents workers at the auto manufacturing plant, it would be highly unusual for a
university professor who has studied labor relations to be asked to mediate. The disputing parties would save his time for something
more serious like arbitration.
327)
FALSE
Typical professionals who serve as mediators are college professors, attorneys, and elected political officials.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #86
Topic: Mediation and Arbitration
87. (p. 324) Mississippi has passed a right-to-work law, which means that union shops are illegal in the state.
TRUE
The Taft-Hartley Act recognized the legality of a union shop, but allowed individual states to declare them illegal through the passage of
right-to-work laws.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #87
Topic: Objectives of Organized Labor
88. (p. 324) Winona was recently hired to work at a production plant for Additup Manufacturing. When hired, she was told she must join the
union at the plant within 90 days in order to keep her job. Winona is employed in an agency shop.
FALSE
An arrangement that requires workers to join a union within a specified period of time in order to keep their jobs is called a union shop
agreement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #88
Topic: Figure 12.4: Different Forms of Union Agreements
89. (p. 324) Marina works for a company in which a union is recognized as the bargaining agent for the workers who perform her type of job.
However, under the arrangements at her company, Marina is not required to join the union, nor is she required to pay any fees or
dues to the union. Marina works under an agency shop agreement.
FALSE
Under an agency shop agreement, workers cannot be required to join a union, but those workers who do not join must pay a union fee. The
type of arrangement described in this question appears to be an open shop.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #89
Topic: Figure 12.4: Different Forms of Union Agreements
90. (p. 324) Miko began working for a company that operates under an open shop arrangement. Under this type of arrangement, Miko must join
the union at her company within 90 days or she will lose her job.
FALSE
Under an open shop arrangement, workers aren't required to join a union to keep their jobs.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #90
Topic: Figure 12.4: Different Forms of Union Agreements
91. (p. 327) Labor and management at the Brookwood Company have reached an impasse in their efforts to negotiate an acceptable labormanagement agreement. The two sides have agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not
like, it can veto the decision.
FALSE
An arbitrator has the authority to render a binding decision.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #91
Topic: Mediation and Arbitration
92. (p. 326 Ashleigh has played a number of supporting roles on TV sitcoms. In her last role, she understood her contract to obligate her to
perform in 22 episodes for a stipend of $500 per episode. After completion of 11 episodes, Ashleigh became ill and was unable to
complete the episodes in a timely manner. The studio claimed that Ashleigh broke her contract and they are not obligated to pay her.
She is confident that an impartial third party will view her circumstances as exceptional and will rule that she be reimbursed for the
11 performances. She has agreed to mediation.
327)
FALSE
Ashleigh has agreed to arbitration, whereby an impartial third-party official is brought in to arbitrate a binding decision. Mediation involves a
third party participant, however, this person keeps negotiations alive, by encouraging both parties to continue to negotiate and will also make
suggestions to bring each side closer to resolution.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #92
Topic: Mediation and Arbitration
93. (p. 326) Jian is a well-known professor of labor relations at a major university. She recently was asked by representatives of labor and
management at a nearby corporation to help them resolve a disagreement that threatened to cause a breakdown in negotiations. If
Jian agrees to help, her role will be to encourage both parties to continue negotiating and to offer constructive advice and
suggestions, but she will not have the authority to render a binding decision. Jian's role is that of a mediator.
TRUE
A mediator is a third party who encourages both sides to continue negotiating to overcome a disagreement. Although mediators often offer
suggestions to help resolve the disagreement, they do not have the authority to render a binding decision to the dispute.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #93
Topic: Mediation and Arbitration
94. (p. 326) Regina teaches at a local college. As a full time employee, she belongs to an organized union that represents teachers. She recently
filed a grievance against her Dean claiming that the Dean prevented her promotion due to the fact that Regina's academic credentials
are from a university that the Dean does not personally feel is properly accredited. As a first step to resolving the conflict between
the Dean (considered a management level position) and the instructor, the union will support Regina by bringing in the national
union officer to negotiate with the University's Chancellor (similar to the CEO for a company).
FALSE
The first step in a grievance process will involve the shop steward, the local union representative that represents employee interests on a daily
basis. This person will meet with the Dean to try and resolve the issue at the lowest level. If it is unresolved, the union will take it to the next
level of management, which will probably be a campus president or a vice-president.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #94
Topic: Figure 12.6: The grievance resolution process
95. (p. 325 Management at Enomoto Enterprises has assigned Alberto to work at two different facilities, which will require him to commute an
extra 25 miles on the days he must work at both plants. Alberto believes that the negotiated labor-management agreement requires
the company to reimburse him for the extra mileage he has to drive. Management disagrees. Alberto has decided to file a charge that
management is not abiding by the terms of the negotiated agreement. Alberto's complaint is called a grievance.
326)
TRUE
A grievance is a charge by an employee, or group of employees, that management is not abiding by the terms of the negotiated labormanagement agreement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #95
Topic: Figure 12.6: The grievance resolution process
96. (p. 328) A Lockout is a tactic utilized by unions when collective bargaining breaks down.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #96
Topic: Management Tactics
97. (p. 327) The strike historically has been the most powerful weapon unions use to achieve their objectives in labor disputes.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #97
Topic: Union Tactics
98. (p. 327) A boycott occurs when workers collectively refuse to go to work.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #98
Topic: Union Tactics
99. (p. 327
328)
Strikes have been an effective way of settling labor disputes without violence and bitterness.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #99
Topic: Union Tactics
100. (p. 328) Postal workers and other employees of the federal government who provide important services are allowed to form unions, but are
denied the right to strike.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #100
Topic: Union Tactics
101. (p. 328) The "blue flu" refers to a situation in which union members (like firefighters) who are not allowed to strike refuse to work by
calling in sick.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #101
Topic: Union Tactics
102. (p. 328) A cooling-off period is when workers in a critical industry return to their jobs while the union and management continue
negotiations.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #102
Topic: Union Tactics
103. (p. 328) In a primary boycott, a union encourages its members and the general public not to buy the goods and services produced by a firm
involved in a labor dispute.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #103
Topic: Union Tactics
104. (p. 328) In 1996, the U.S. Supreme Court ruled that primary boycotts are illegal.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #104
Topic: Union Tactics
105. (p. 328) Tactics used by management when collective bargaining breaks down include injunctions and lockouts.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #105
Topic: Management Tactics
106. (p. 328) The most potent weapon currently available to management when collective bargaining breaks down is the use of yellow-dog
contracts.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #106
Topic: Management Tactics
107. (p. 328) The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #107
Topic: Management Tactics
108. (p. 328) A common tactic of management in labor disputes is the use of secondary boycotts.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #108
Topic: Management Tactics
109. (p. 329) The use of strikebreakers did not become a common management tactic used in labor disputes until the 1980s.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #109
Topic: Management Tactics
110. (p. 329) Workers who are hired to do the jobs of striking workers until the strike is over are called "scabs" by the union.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #110
Topic: Management Tactics
111. (p. 328
329)
A court order directing someone to do something or to refrain from doing something is called a judicial citation.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #111
Topic: Management Tactics
112. (p. 329) Hiring strikebreakers to replace striking workers was historically a common management tactic during labor disputes, but it is
seldom used today.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #112
Topic: Management Tactics
113. (p. 328) The Taft-Hartley Act authorizes the U.S. president to ask for a cooling-off period to temporarily prevent a strike in a critical
industry.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #113
Topic: Union Tactics
114. (p. 329) Courts will issue an injunction against union tactics only if management can show a "just cause" to restrict the union tactic.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #114
Topic: Management Tactics
115. (p. 328) The lockout is the most common tactic used by management today to deal with labor management disputes.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #115
Topic: Management Tactics
116. (p. 329) Unions have used givebacks as a tactic to increase membership of a culturally diverse workforce.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #116
Topic: The Future of Unions and Labor-Management Relations
117. (p. 329) The largest labor organization in the U.S. is the National Education Association (NEA).
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #117
Topic: The Future of Unions and Labor-Management Relations
118. (p. 329) Membership in labor unions has grown steadily over the past 50 years.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #118
Topic: The Future of Unions and Labor-Management Relations
119. (p. 329) A key to the future growth of unions will be their ability to adapt to a labor force that is becoming more culturally diverse.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #119
Topic: The Future of Unions and Labor-Management Relations
120. (p. 329) In recent years, many unions have granted concessions on working conditions and wages in order to save jobs.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #120
Topic: The Future of Unions and Labor-Management Relations
121. (p. 330) One way the Teamsters Union plans to increase membership is by reaching out to women in traditionally non-union occupations
like health care.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #121
Topic: The Future of Unions and Labor-Management Relations
122. (p. 329) The unions of the 21st century are likely to be quite different from those in the past.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #122
Topic: The Future of Unions and Labor-Management Relations
123. (p. 330) In the future, unions are likely to leave training and recruitment of workers to management, and focus instead on encouraging
those workers to join the union.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #123
Topic: The Future of Unions and Labor-Management Relations
124. (p. 328) In the next few years, unions are likely to find that they must adopt a tough, confrontational approach in order to get what they
want from management.
FALSE
In recent years, unions have shown a willingness to cooperate with management in order to implement programs needed to make U.S. firms
more competitive in the global economy. In exchange for their cooperation, unions have received improved job security, profit-sharing
programs, and sometimes, higher wages. This cooperative trend is likely to continue into the near future.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #124
Topic: The Future of Unions and Labor-Management Relations
125. (p. 331) According to "Spotlight on Small Business," in Chapter 12 many private-practice physicians have embraced unionizing as a
means to collective bargaining with managed health care organizations.
TRUE
Many private-practice physicians have embraced unionizing as a means to collective bargaining with managed health care organizations such
as health maintenance organizations (HMOs). The American Medical Association (AMA) launched a physicians union called Physicians for
Responsible Negotiations (PRN) in late 1999, and the PRN has been affiliated with the SEIU since 2004.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #125
Topic: Spotlight on Small Business box
126. (p. 328) The Taft-Hartley Act gives the president the power to require striking workers in any industry to return to their jobs for a coolingoff period while representatives of management and the union continue to negotiate.
FALSE
The Taft-Hartley Act allows the president to ask for a cooling-off period to prevent a strike only in a critical industry that is vital to the
nation's health or safety.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #126
Topic: Union Tactics
127. (p. 328) Bellandro Bay Brewery union representatives and the company's management have reached an impasse. Going forward, the union
has planning an organized strike and other tactics to put pressure on management where it will be most effective. Union supporters
are being encouraged to avoid purchasing Bellandro's products. Now union leaders have contacted a variety of stores that stock
Bellandro's Beer informing them that union members and other supporters will stop shopping at any store that continues to carry
the brewery's beer until the dispute is resolved in the union's favor. This tactic against stores that carry Bellandro's Beer is called a
primary boycott.
FALSE
A primary boycott is a boycott against a firm involved in a labor dispute. Thus, the action taken directly against Bellandro Bay Brewery
would be a primary boycott. However, the action against retail stores is a secondary boycott. A secondary boycott occurs when a union
boycotts firms not directly involved in the labor dispute in an effort to persuade them to stop doing business with the firm that is the subject of
the primary boycott. Secondary boycotts were declared illegal by the Taft-Hartley Act.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #127
Topic: Union Tactics
128. (p. 328 Striking union workers are picketing near the entrance of the Bellandro Bay Brewery plant where they normally work. The workers
are acting peacefully and have not threatened anyone entering or leaving the company or damaged any property. Bellandro's
329)
management is seeking an injunction to prevent the workers from picketing. The courts are unlikely to issue injunction an under the
current circumstances.
TRUE
Courts will issue injunctions against union activities if the company seeking the injunction can show a "just cause" such as the possibility of
violence or destruction of property.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #128
Topic: Management Tactics
129. (p. 329) Workers at the West Fenton plant of Malzone Industries have gone out on strike. Management believes it could continue operating
the plant during the strike by hiring replacement workers. If the company hires nonunion workers to continue its operations, it will
be violating a recent Supreme Court ruling that declared hiring replacement workers as a violation of the Wagner Act.
FALSE
The Supreme Court ruled in 1938 that employers had the right to replace striking workers. The law has not changed.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #129
Topic: Management Tactics
130. (p. 328) Employees were striking at the London Met University last year. Very few students were crossing the picket line. In fact, the city's
postal employees refused to deliver mail there claiming that they were honoring the strike for their fellow service union members.
The Postal employees were participating in a voluntary secondary boycott.
TRUE
A Secondary boycott occurs when union members encourage others to stop doing business with the company that is the focus of the primary
boycott.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #130
Topic: Union Tactics
131. (p. 329) In the Making Ethical Decisions box, students are asked to consider what they would do if they had the opportunity to be
employed as a strikebreaker, at a company where friends and family were currently out of work and on strike. If they choose to do
so, they are immediately hired as full-time workers.
FALSE
In the Making Ethical Decision box, the situation arises where a young person is offered the opportunity to work in a grocery store, as a
temporary replacement (strikebreaker) for striking union members. Is it ethical to take advantage of such a situation?
AACSB: Ethics
Blooms: Analysis
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #131
Topic: Making Ethical Decisions box
132. (p. 332) After adjusting for inflation, the average CEO compensation is actually a little lower now than it was in 1960.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #132
Topic: Executive Compensation
133. (p. 332) The disparity in salaries is clearly reflected in the fact that in 2007, the average CEO compensation for a major company was $12.8
million, compared to a little more than $35,000 that the average worker was compensated.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #133
Topic: Executive Compensation
134. (p. 332) CEOs only earn high salaries and bonuses when their companies earn substantial profits.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #134
Topic: Executive Compensation
135. (p. 333) The late Peter Drucker, one of 20th century's leading management consultants was very critical of the exorbitant compensations
that some CEOs were getting.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #135
Topic: Executive Compensation
136. (p. 334) Despite their high pay, most CEOs work far fewer hours per week than the average employee in their companies.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #136
Topic: Executive Compensation
137. (p. 334) Comparable worth is concerned with making sure that women get paid as much as men when they do the same jobs.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #137
Topic: Pay Equity
138. (p. 334) The Equal Pay Act of 1963 required companies to provide equal pay to men and women who perform the same job.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #138
Topic: Pay Equity
139. (p. 334) The concept of comparable worth holds that people who do jobs that require similar levels of education, training and skills should
receive equal pay.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #139
Topic: Pay Equity
140. (p. 334) Today, a woman usually receives a salary that is equal to approximately 79% of her male counterpart.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #140
Topic: Pay Equity
141. (p. 335) The law protects both women and men from sexual harassment.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #141
Topic: Sexual Harassment
142. (p. 335) The number of sexual harassment complaints filed with the Equal Employment Opportunity Commission has leveled off since
2000.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #142
Topic: Sexual Harassment
143. (p. 335) In 1997, the Supreme Court ruled that same sex harassment is prohibited by sexual harassment laws.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #143
Topic: Sexual Harassment
144. (p. 335) Although workers and managers often know that their firm has a policy against sexual harassment, they seldom have a clear
understanding of what the policy actually says.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #144
Topic: Sexual Harassment
145. (p. 335) "Quid pro quo" sexual harassment occurs when a person's conduct creates an offensive, hostile, or intimidating work environment
that adversely affects the job performance of some other employee.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #145
Topic: Sexual Harassment
146. (p. 336) If you work for a foreign company doing business in the U.S., you are subject to the same sexual harassment laws as anyone
working in the U.S.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #146
Topic: Sexual Harassment
147. (p. 336) Because of the need to cut costs, fewer large U.S. companies now provide some sort of child-care for their employees than ten
years ago.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #147
Topic: Child Care
148. (p. 336) Small firms often offer innovative child-care programs as a way of competing for qualified employees.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #148
Topic: Child Care
149. (p. 336) On-site child-care remains the only acceptable way for firms to meet the child care concerns of their employees.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #149
Topic: Child Care
150. (p. 337) The number of households that face the burden of caring for one or more elderly parents has increased significantly over the past
decade.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #150
Topic: Elder Care
151. (p. 337) In recent years federal programs such as Medicare and Medicaid have greatly reduced the financial burden on families faced with
caring for elderly adults.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #151
Topic: Elder Care
152. (p. 337) Over the next decade costs associated with elder care are likely to have a much smaller impact on businesses than child-care costs.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #152
Topic: Elder Care
153. (p. 337) Elder care costs are likely to remain a major issue for businesses for many years.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #153
Topic: Elder Care
154. (p. 338) The spread of AIDS within the U.S. has declined in recent years.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #154
Topic: Drug Testing
155. (p. 338) Alcohol and drug abuse are serious workplace issues but they involve far fewer workers than AIDS does.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #155
Topic: Drug Testing
156. (p. 338) Alcohol is the most widely used drug in the workplace.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #156
Topic: Drug Testing
157. (p. 338) Today, over 70% of all companies require some type of drug testing.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #157
Topic: Drug Testing
158. (p. 338) The high cost of illegal drug use in the workplace has resulted in a rise in the number of firms that test employees and job
applicants for drugs.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #158
Topic: Drug Testing
159. (p. 338) According to the Occupational Safety and Health Administration (OSHA), the third leading cause of job-related fatalities is
homicide.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #159
Topic: Violence in the Workplace
160. (p. 338) One in six violent crimes that are committed in the U.S. occur in the workplace.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #160
Topic: Violence in the Workplace
161. (p. 338) Many companies do not provide any formal training for dealing with prevention of violence in the workplace.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #161
Topic: Violence in the Workplace
162. (p. 338) Since violence in the workplace rarely results in severe injury, it is likely not to be much of a problem in the future.
FALSE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #162
Topic: Violence in the Workplace
163. (p. 338) Due to threats of violence at work, some states have passed laws permitting companies to seek temporary restraining orders on
behalf of their management.
TRUE
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #163
Topic: Violence in the Workplace
164. (p. 333) Although the general public often sees the compensation of CEOs of major U.S. corporations as being much too high, the pay and
benefits these top executives receive is actually quite similar to what is earned by top executives in other countries with market
economies.
FALSE
Top executives in American corporations typically earn much more than top executives from other countries. For example, American CEOs
typically earn two to three times as much as their counterparts in Europe and Canada.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #164
Topic: CEO Compensation
165. (p. 333) According to the Legal Briefcase box associated with Chapter 12, we can cite several examples where CEOs in the U.S. received
significantly large exit compensation packages even though the profit performance of their firms under their watch was rather
meager to very poor.
TRUE
Several examples can be cited where well known corporate CEOS received large stock option packages and guaranteed stipends worth several
million, indicating that some Boards of Directors are willing to pay for incompetent or lackluster work.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #165
Topic: Legal Briefcase box
166. (p. 333) According to the Legal Briefcase, "Paying for Incompetence", businesspersons understand that the capitalist system has no choice
but to tolerate huge disparities between a CEO's salary and a regular employee.
FALSE
In the past, CEO compensation was at the very least tied to the profit performance of the company, the appreciation of the stock price, or the
return on investment, however, in recent times, these compensation packages do not seem to be tied to any measurable company results.
Watchdog groups and others are questioning these procedures.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #166
Topic: Legal Briefcase box
167. (p. 333) According to the Legal Briefcase box from Chapter 12 that highlighted the exorbitant salaries of some past company CEOs: When
it is all said and done, restructuring compensation packages to be more equitable is in the hands of the companies themselves.
TRUE
The Legal Briefcase box highlighted several well-known CEOs who stepped down from their positions have lackluster years of service, but
managed to be rewarded with compensation packages worth several million. In the end, it is the internal management of the firms that can
make changes and issue some controls on executive compensation.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #167
Topic: Legal Briefcase box
168. (p. 334) Reece discovered that a male coworker is paid $1.50 per hour more than she is even though they have the same job title, have
similar qualifications, and have been employed the same length of time. Unfortunately for Reece, it is legal for the hospital to pay
different salaries to different workers who perform the same job.
FALSE
The Equal Pay Act of 1963 states that men and women who perform the same job must receive equal pay, as long as the pay additional
amounts are not tied to merit increases or additional compensation tied to seniority at the job.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #168
Topic: Pay Equity
169. (p. 333) Marco is the newly appointed CEO of the Sine of the Times Corporation. The board of directors approved an attractive stock
option package as part of his total compensation. From this information, you would assume that one of the board's objectives is to
stabilize the value of Sine of the Times' stock by preventing it from rising or falling more than a small percentage.
FALSE
Stock options allow the holder to buy a firm's stock at a set price at a later date. This can be worth millions of dollars to executives who are
able to exercise the option when the market price of the stock is significantly higher than the option price. Thus, rather than trying to stabilize
the price of the stock, DeMarco would have a strong incentive to pursue policies that would increase the value of his company's stock.
Moreover, if DeMarco exercises his options and sells off large amounts of the stock to realize his gains, his actions might cause the value of
the stock to fall significantly.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #169
Topic: CEO Compensation
170. (p. 336) Although child-care concerns have become a pressing issue for many employees, most firms have been unable to find acceptable
solutions to these concerns.
FALSE
The number of companies that offer child-care benefits is growing. Even small companies have developed innovative child-care plans. The
text describes several methods companies have used to help employees with child-care, including discount arrangements, vouchers, and
referral services as well as on-site child care centers.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #170
Topic: Child Care
171. (p. 337) Brantwell, Inc. is a forward thinking company planning to implement a program to help its employees provide care for their
elderly parents. According to recent trends, Brantwell's new program should result in future cost savings.
TRUE
The number of households in which at least one adult is providing elder care has tripled in the past tend years. According to some experts
cited in the text, in coming years elder care will have a greater impact on the workplace than child-care. Sandra Timmerman, director of
MetLife's Mature Market Institute, suggests that elder care is the key workplace issue of the next decade. Moreover, employees who are likely
to need help with elderly parents are the older, more experienced workers, whose responsibilities are likely to be critical to the company's
success. Thus, proactive firms will look for ways to help employees deal with these costs.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #171
Topic: Elder Care
172. (p. 335) Robert and Jenny are co-workers who enjoy flirting with each other while at work. They both view their actions as harmless fun,
as do the other employees in their office. Their flirtation does not offend the other workers or make them feel threatened or
uncomfortable. Nevertheless, under current criteria, both Jenny and Robert could be found guilty of sexual harassment.
FALSE
In evaluating a person's behavior to determine if it involves harassment, specific criteria are applied. A person's behavior is considered
sexually harassing if: (1) another employee is required (either explicitly or implicitly) to submit to such conduct as a condition of
employment, or if accepting or rejecting such behavior is used as a basis for employment decisions affecting the worker's status; or (2) the
conduct unreasonably interferes with a worker's job performance or creates an intimidating, hostile, or offensive work environment. Since
neither Robert or Jenny feels threatened or pressured to engage in this behavior, and since the work environment is not intimidating, offensive
or hostile to Robert, Jenny, or their coworkers, the criteria for sexual harassment are not present.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #172
Topic: Sexual Harassment
173. (p. 338) Rose is a human resources manager for a rapidly growing corporation. The firm recently hired one hundred new workers, ten of
whom were involved in workplace accidents soon after they were hired. It was determined that alcohol usage was the cause of
these accidents. Top management has asked Rose to do a better job in screening potential workers for alcohol abuse to avoid this in
the future. Rose should point out that in fact the ten percent of the recent-hires with alcohol issues is actually much lower than the
overall percentage of employees with alcohol issues that are involved in industrial injuries and fatalities in the U.S.
TRUE
Approximately 40 percent of industrial injuries and fatalities can be linked to alcohol consumption.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #173
Topic: Drug Testing
174. (p. 338) Recently a disgruntled employee walked into a large grocery chain's mid-west distribution center and opened fire on his fellow
workers. He killed or injured several people before being killed by the local police. The grocery chain is very concerned about the
threat of workplace violence in the future. One way to deal with this threat is for management to hold focus groups to invite
employee input. Another way is to make certain that the company hires managers with good interpersonal skills.
TRUE
As the text points out, many executives and managers consider workplace violence a serious issue and have taken action to prevent problems
before they occur. To deal with this growing threat, firms have held focus groups to invite employee input, hired managers with strong
interpersonal skills, and employed skilled consultants to deal with any growing potential of workplace violence.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #174
Topic: Violence in the Workplace
175. (p. 318) A(n) ________ is an employee organization that represents workers in employee-management bargaining over job-related issues.
A.
B.
C.
D.
trades guild
union
ESOP
cross-functional team
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #175
Topic: Employee-Management Issues
176. (p. 319) The presence of formal labor organizations in the United States dates back to the:
A.
B.
C.
D.
late 1700s.
Civil War.
late 1800s.
depression years of the 1930s.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #176
Topic: The Early History of Organized Labor
177. (p. 319) According to business observers, which of the following is a reason for labor's decline?
A.
B.
C.
D.
Shifts from service to manufacturing industries
Decline in part-time work
Labor's success in seeing issues it championed become law
Increased local competition
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #177
Topic: Labor Unions from Different Perspectives
178. (p. 319) The union movement in the United States was an outgrowth of the economic transition caused by the:
A.
B.
C.
D.
Revolutionary War.
Great Depression.
Industrial Revolution.
passage of antitrust legislation by the federal government.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #178
Topic: The Early History of Organized Labor
179. (p. 319) Labor unions were largely responsible for:
A.
B.
C.
D.
establishing the Republican party.
the basic structure of the federal income tax system.
the passage of NAFTA.
minimum wage laws and laws against child labor.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #179
Topic: The Early History of Organized Labor
180. (p. 319) __________ are workplaces with undesirable, and often unsafe and oppressive working conditions.
A.
B.
C.
D.
Treadmills
Flopshops
Steamshops
Sweatshops
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #180
Topic: Labor Unions from Different Perspectives
181. (p. 319) The purpose of the earliest recognized labor unions in the U.S. was:
A.
B.
C.
D.
to achieve some short-range goal and then disband.
to achieve a long-range foundation for the craft.
to teach the craft to new workers.
to achieve notoriety for the members.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #181
Topic: The Early History of Organized Labor
182. (p. 320) The first national labor organization in the United States was the:
A.
B.
C.
D.
Knights of Labor.
Congress of Industrial Organizations.
American Federation of Labor.
United Farm Workers Union.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #182
Topic: The Early History of Organized Labor
183. (p. 320) Membership in the Knights of Labor was:
A.
B.
C.
D.
limited to skilled craftsmen.
limited to unskilled and semiskilled workers who belonged to industrial unions.
open to all working people, including employers.
open to anyone willing to promote capitalism as the economic system most likely to lead to economic prosperity for the working men and
women of the United States.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #183
Topic: The Early History of Organized Labor
184. (p. 320) The main goal of the Knights of Labor was to:
A.
B.
C.
D.
promote world peace through the creation of a brotherhood and sisterhood of workers in all nations.
gain political power and restructure the U.S. economy.
form an organization that would protect the benefits of retired workers.
promote a better public education system.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #184
Topic: The Early History of Organized Labor
185. (p. 319) In a(n) ________, all of the members are skilled specialists in a particular trade.
A.
B.
C.
D.
ESOP
craft union
industrial union
trade federation
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #185
Topic: The Early History of Organized Labor
186. (p. 320) __________ provided dynamic leadership for the American Federation of Labor during its early years.
A.
B.
C.
D.
Karl Marx
Kenneth Adams
George Meany
Samuel Gompers
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #186
Topic: The Early History of Organized Labor
187. (p. 320) The AFL was concerned primarily with:
A.
B.
C.
D.
fundamental labor issues.
gaining political power.
forming a workers' army to lead a socialist revolution.
promoting a better public education system.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #187
Topic: The Early History of Organized Labor
188. (p. 320) In its early years, the AFL's strategy was to:
A.
B.
C.
D.
grow as rapidly as possible by allowing people from all professions and walks of life to join.
limit its membership to skilled craftspeople.
limit its membership to unskilled and semiskilled workers.
form one big craft union which everyone could join; but it later split into several smaller organizations.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #188
Topic: The Early History of Organized Labor
189. (p. 320) The CIO (Congress of Industrial Organizations) organized unskilled and semiskilled workers into:
A.
B.
C.
D.
craft unions.
a political party.
industrial unions.
union shops.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #189
Topic: The Early History of Organized Labor
190. (p. 320) The __________ was set up as a federation of many separate craft unions.
A.
B.
C.
D.
Knights of Labor
Committee of Industrial Organizations
League of Unions
American Federation of Labor (AFL)
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #190
Topic: The Early History of Organized Labor
191. (p. 320) The leadership of _____________ was instrumental in bringing about the merger between the American Federation of Labor and
the Congress of Industrial Organizations in 1955.
A.
B.
C.
D.
Samuel Gompers
Terence K. Powderly
Ronald Reagan
George Meany
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #191
Topic: The Early History of Organized Labor
192. (p. 320) In the early years, there were power struggles among the larger national unions. Leaders recognized that there was power in
numbers. After the passage of the Taft-Hartley Act in 1947,
A.
B.
C.
D.
the CIO defeated the AFL.
the "Change to Win" campaign emerged.
the AFL and CIO merged.
the unions collapsed for several years.
The Taft-Hartley Act favored management. The two rival unions: AFL, the craft union, and CIO, the unskilled labor union merged in order to
strengthen their position. There was power in numbers - for one thing, members would support each other in strike situations.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #192
Topic: The Early History of Organized Labor
193. (p. 319) The Industrial Revolution was characterized by a(n):
A. increased emphasis on production, resulting in longer hours and less job security for most workers.
B. migration of manufacturing jobs from the Midwest and Northeast to the South as firms began locating in areas where labor costs were
lower.
C. rapid improvement in the wages and working conditions of most workers, resulting in a decline in the need for labor unions.
D. movement away from scientific management, and a greater acceptance of the ideas of Herzberg and Maslow.
The Industrial Revolution brought enormous productivity gains through mass production and job specialization. For the workers, however,
this brought a realization that production was vital. If you failed to produce, you lost your job. Firms started expanding the length of the
average workweek and employing child labor.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #193
Topic: The Early History of Organized Labor
194. (p. 319) Critics of labor unions argue that unions are no longer needed to protect workers from abusive and unfair treatment because:
A. the widespread use of ESOPs has given most workers control over their workplace.
B. supply and demand conditions in labor markets now favor labor rather than management.
C. laws and modern management attitudes minimize the possibility of unsafe working conditions and unfair treatment of workers found in
earlier eras.
D. most of the firms that treated workers poorly have moved their operations to foreign countries.
The harsh and unsafe working conditions, low pay, and unfair treatment of workers that characterized the Industrial Revolution contributed
greatly to the rise of the labor movement. Today, however, laws and regulations exist to protect workers from sweatshop-like working
conditions and arbitrary or unfair treatment. In addition, the attitudes and behaviors of most contemporary managers toward their employees
are more positive than the attitudes and behaviors of managers from earlier eras. Critics of today's unions maintain that these changes have
reduced the need for unions to serve as protectors of workers.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #194
Topic: Labor Unions from Different Perspectives
195. (p. 320) A major reason John L. Lewis and his followers broke with the AFL and formed the CIO was that:
A. the leaders of the AFL wanted to focus on political objectives while Lewis and his followers wanted to focus on economic objectives.
B. Lewis felt that the AFL was growing too fast.
C. the leaders of the AFL wanted to organize only skilled workers, while Lewis and his followers wanted to organize both unskilled and
skilled workers.
D. Lewis believed that the AFL would be more flexible and responsive to its members if it split into several smaller organizations, each
representing workers with one specific skill.
The AFL originally limited its membership to skilled workers in craft unions. Over time, an unauthorized committee within the AFL began
organizing unskilled and semiskilled workers into industrial unions. In 1935, John L. Lewis, the leader of this unauthorized committee,
proposed that the AFL actively organize both craft unions and industrial unions. When the AFL rejected his proposal, Lewis and his followers
broke from the AFL to form the CIO.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #195
Topic: The Early History of Organized Labor
196. (p. 320) The departure of the Service Employees International Union (1.8 million members strong) from the AFL-CIO:
A. strengthened the focus of the AFL-CIO to serve those who work in manufacturing jobs.
B. weakened the AFL-CIO, even though it still has about 10.5 million members.
C. was the result of the passage of the Taft-Hartley Act.
D. created room for more craft unions to join the AFL-CIO.
The departure of the SEIU, the AFL-CIO's largest union significantly decreased the power of the AFL-CIO. Although the large union still
boasts several million members, the SEIU was a sizeable organization and provided strength for the core organization.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #196
Topic: The Early History of Organized Labor
197. (p. 320) The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this
strategy was that:
A. industrial unions were illegal until the passage of the Taft-Hartley Act in 1947.
B. the leaders of the AFL believed that the skilled workers represented by craft unions would have better bargaining power than unskilled
workers.
C. craft unions had more political clout than industrial unions.
D. most industrial unions had supported the Knights of Labor in a dispute with the AFL during the 1880s.
Under the leadership of Samuel Gompers, the AFL intentionally limited its membership to skilled workers belonging to craft unions. A major
reason for this strategy was that Gompers believed skilled workers would have more success with collective bargaining than unskilled
workers.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #197
Topic: The Early History of Organized Labor
198. (p. 321 Historically, the ______________ strengthened the labor unions, while the _____________________ supported management's
efforts.
322)
A.
B.
C.
D.
National Labor Relations Act; Taft-Hartley Act
Taft-Hartley Act; Fair Labor Standards Act
Fair Labor Standards Act; National Labor Relations Act
Norris-LaGuardia Act; National Labor Relations Act
The National Labor Relations Act helped the unions by providing legal protection that allowed them to unionize and participate in collective
bargaining. The Taft-Hartley Act helped management by prohibiting compulsory unions.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-1
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #198
Topic: Major Legislation Effecting Labor-Management Relations; Figure 12.1
199. (p. 319) Antonio received specific training to become an electrician. He belongs to a union with other skilled electricians. Antonio belongs
to a(n):
A.
B.
C.
D.
industrial union.
craft union.
open union.
company union.
A union whose members are skilled specialists in a particular skill or trade is known as a craft union.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #199
Topic: The Early History of Organized Labor
200. (p. 320) Geraldo works on the assembly line for a major automobile manufacturer. He was hired for the job without any specific training or
skill. Geraldo joined a union with other assembly-line workers who perform a variety of jobs that do not require a highly
specialized skill. Geraldo belongs to a(n):
A.
B.
C.
D.
industrial union.
craft union.
assembly union.
traditional union.
An industrial union is an organization of unskilled or semiskilled workers. This type of union is often found in industries characterized by
mass production methods, such as the automobile industry.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #200
Topic: The Early History of Organized Labor
201. (p. 320) Which of the following statements is the most accurate assessment of the historical role of the AFL in the labor movement? In its
early years the AFL:
A. attracted a lot of public attention and political support because it was the first truly national labor organization in the United States.
B. operated as one union, but soon split into two interdependent groups and became known as the AFL-CIO.
C. was a federation of craft unions that championed basic labor issues.
D. had limited success because it suffered from poor leadership.
The AFL was never a single union. Instead, it operated as a federation of craft unions. The organization succeeded largely due to the dynamic
leadership of Samuel Gompers, who championed basic labor issues.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #201
Topic: The Early History of Organized Labor
202. (p. 321) Samuel Gompers believed that ___________ was the key to attaining a fairer share of the economic pie for American workers.
A.
B.
C.
D.
collective bargaining
political power
obtaining free trade agreements with other nations
organizing workers into industrial unions
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #202
Topic: Labor Legislation and Collective Bargaining
203. (p. 320) The two major influences on the growth of unions in the U.S. were:
A.
B.
C.
D.
population growth; the agrarian economy
the agrarian economy; the Taft-Hartley Act
the Taft-Hartley Act; support of management
laws that supported unionizing; public opinion
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #203
Topic: Labor Legislation and Collective Bargaining
204. (p. 321) The _________ Act established the National Labor Relations Board.
A.
B.
C.
D.
Wagner
Taft-Hartley
Norris-LaGuardia
Fair Labor Standards
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #204
Topic: Labor Legislation and Collective Bargaining
205. (p. 321) __________ is the process by which a union becomes recognized by the National Labor Relations Board as the bargaining agent
for a group of employees.
A.
B.
C.
D.
Accreditation
Certification
Arbitration
Affiliation
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #205
Topic: Labor Legislation and Collective Bargaining
206. (p. 321) ____________ is the process by which a group of workers legally take away a union's right to represent them.
A.
B.
C.
D.
Disqualification
Decertification
Impeachment
Disenfranchisement
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #206
Topic: Labor Legislation and Collective Bargaining
207. (p. 321) _____________ is the process by which representatives of a union meet with representatives of management to negotiate a
contract for workers.
A.
B.
C.
D.
Mediation
Arbitration
Mutual Conciliation
Collective bargaining
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #207
Topic: Labor Legislation and Collective Bargaining
208. (p. 321) The ______________ was established by the Wagner Act to oversee labor-management relations.
A.
B.
C.
D.
Federal Trade Commission
Commission on Labor Relations
National Labor Relations Board
Equal Employment Opportunity Commission
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #208
Topic: Labor Legislation and Collective Bargaining
209. (p. 321) The first federal minimum wage was established by the:
A.
B.
C.
D.
Fair Labor Standards Act.
Wagner Act.
Minimum Compensation Act.
Pay Equity Act.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #209
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
210. (p. 321) The _____________ outlawed the use of yellow-dog contracts and prohibited courts from issuing injunctions against nonviolent
union activities.
A.
B.
C.
D.
Landrum-Griffin Act
Fair Labor Standards Act
Wagner Act
Norris-LaGuardia Act
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #210
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
211. (p. 321) At one time, as a condition of employment, the employer could make the employee sign a statement prohibiting the worker from
joining a union. This was called a(n):
A.
B.
C.
D.
arbitrary agreement.
yellow-dog contract.
right-to-work contract.
employment at will agreement.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #211
Topic: Labor Legislation and Collective Bargaining
212. (p. 321) The __________ guaranteed the rights of individual union members when dealing with their union.
A.
B.
C.
D.
Wagner Act
Landrum-Griffin Act
Norris-LaGuardia Act
Taft-Hartley Act
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #212
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
213. (p. 321) Which of the following acts gave more power to management in its relations with organized labor?
A.
B.
C.
D.
Norris-LaGuardia Act
Landrum-Griffin Act
Wagner Act
Taft-Hartley Act
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #213
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
214. (p. 321) The Taft-Hartley Act:
A.
B.
C.
D.
established the first minimum wage.
allowed individual states to pass right-to-work laws prohibiting compulsory union membership.
required management to bargain in good faith with union representatives.
set up the process by which unions could be recognized as the exclusive bargaining agents for a group of workers.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #214
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
215. (p. 321) The ___________ guaranteed union members the right to nominate candidates for union office and participate in union meetings.
A.
B.
C.
D.
Taft-Hartley Act
Fair Labor Standards Act
Norris-LaGuardia Act
Landrum-Griffin Act
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #215
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
216. (p. 321) One goal of the Landrum-Griffin Act was to:
A.
B.
C.
D.
firmly establish the right of unions to engage in collective bargaining.
set up the means by which unions could be certified as bargaining agents for workers.
clean up the corrupt practices of unions.
prevent employees engaged in providing critical services such as health care or police protection from going out on strike.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #216
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
217. (p. 321) The NLRB (National Labor Relations Board) consists of:
A.
B.
C.
D.
a five member panel appointed by the U.S. president.
an eight or ten member board consisting of an equal representation of union officials and management personnel.
two large unions: the AFL and the CIO.
a congressional committee.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-2
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #217
Topic: Labor Legislation and Collective Bargaining
218. (p. 321
322)
A.
B.
C.
D.
The Wagner Act is best described as a(n):
pro-management law.
pro-union law.
anti-communism law.
anti-collective bargaining law.
The Wagner Act explicitly allowed for collective bargaining, a right long-sought by labor unions. The Wagner Act also established the
National Labor Relations Board to offer legal protection to workers and to oversee the union certification process.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #218
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
219. (p. 321) John belongs to a labor union. He believes a few key people run the union by meeting secretly and making decisions without
informing other members or allowing them to fully participate in the meetings. If John's suspicions are correct, the union is
violating provisions of the __________ Act.
A.
B.
C.
D.
Landrum-Griffin
Fair Labor Standards
Taft-Hartley
Wagner
The Landrum-Griffin Act guaranteed individual union members the right to attend and participate in union meetings, nominate candidates for
union office, vote in union elections, and examine union records and accounts.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #219
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
220. (p. 321) The Labor-Management Relations Act (or Taft-Hartley Act) can be best described as a law which:
A. gave unions much more power and led to a rapid rise in union membership.
B. gave employees the right to serve on the board of directors of their company, thus encouraging a more equitable treatment of workers.
C. eliminated the need for unions in many industries by providing workers with widespread rights and protection against unfair labor
practices by employers.
D. placed limitations on union activities and gave more power to management in dealing with unions.
The Taft-Hartley Act prohibited featherbedding (requiring payment for work not performed), secondary boycotts, and closed shops. These
restrictions were very unpopular with unions. This act also allowed individual states to pass right-to-work laws prohibiting union shops and
established provisions for dealing with strikes that threaten the nation's health and safety. These restrictions gave more power to management
in dealing with unions.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #220
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
221. (p. 321) The primary purpose of collective bargaining is to:
A.
B.
C.
D.
ensure worker participation in setting the goals and objectives of the company.
establish and communicate clear guidelines for performance appraisals.
limit the authority of management to set job categories and direct worker activities.
negotiate a labor-management agreement that both the union and management are willing to accept.
Successful collective bargaining results in a labor-management agreement that is mutually acceptable.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #221
Topic: Labor Legislation and Collective Bargaining
222. (p. 321) Two important provisions concerning the certification or decertification process administered by the NLRB (National Labor
Relations Board) are:
A. certification or decertification requires that the workers cast over 50 percent of the required vote to certify or decertify, and that voting be
done by secret ballot.
B. certification is a four-step process, and decertification is a two-step process.
C. the union must win 30% of the vote for certification, and 70% of the vote for decertification.
D. voting to bring in a union must be done by card check, and voting to dismiss a union must be done by secret ballot.
At this time, the NLRB requires that certification (voting for a union) or decertification (voting against a union) be administered by secret
ballot. Either process requires that the union received over 50% of the required vote.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-2
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #222
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
223. (p. 321) During the 1920s and early 1930s the Dallas Sheet Metal Shop was able to prevent workers from forming a union by requiring
them to sign an employment contract in which they agreed not to join a union as a condition of employment. Dallas was making
use of:
A.
B.
C.
D.
yellow-dog contracts.
blacklisting agreements.
injunctions.
implied consent decrees.
A yellow-dog contract required workers to agree not to join a union as a condition of employment. This type of contract was declared illegal
by the Norris-LaGuardia Act in 1932.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #223
Topic: Labor Legislation and Collective Bargaining
224. (p. 321) Steven is part of a team of union members that is meeting with representatives of his company's management in an effort to
negotiate a labor contract for the workers his union represents. Steven is participating in a process known as:
A.
B.
C.
D.
collective bargaining.
management by objectives.
arbitration.
certification discussions.
Collective bargaining is the process whereby union and management representatives form a labor-management agreement, or contract, for
workers.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #224
Topic: Labor Legislation and Collective Bargaining
225. (p. 321) Bob believes that management is treating him unfairly because of his efforts to organize a vote for union representation. Which
organization should Bob contact to report his concerns?
A.
B.
C.
D.
Federal Board of Labor Rights
National Labor Relations Board
Federal Trade Commission
Federal Commission on Unfair Labor Practices
The National Labor Relations Board provides guidelines and offers legal protection to workers that seek to vote on "organizing" a union to
represent them in the workplace.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #225
Topic: Labor Legislation and Collective Bargaining
226. (p. 321) Which of the following statements about collective bargaining is most consistent with the views of Samuel Gompers?
A. Collective bargaining is the best way for workers to attain a fairer share of the economic pie.
B. Collective bargaining is a nice idea in theory, but in the real world unions must rely on weapons such as strikes and boycotts to get what
they want.
C. Unions should view collective bargaining as a useful, but limited, means for achieving some of their goals. In most cases the best way for
unions to achieve their goals is to use their political clout to help pass favorable legislation.
D. Unions should not count on collective bargaining to achieve their goals, because management can't be trusted to bargain in good faith.
Samuel Gompers believed the collective bargaining process was critical to achieving the goals of organized labor.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #226
Topic: Labor Legislation and Collective Bargaining
227. (p. 321) Union leaders at the Baadfathe Corporation are furious. Although the union's certified by the NLRB, its negotiating team has had
little success in getting management to meet with them to work on a new labor contract. In fact, during the last 3 months, the
management team has agreed to meet only twice, once on a weekend, and the other time after 8:00 p.m. Even during those two
meetings, the management team was unwilling to offer serious proposals. Baadfathe's management team should review the legal
rights of union members to participate in collective bargaining, as provided under the:
A.
B.
C.
D.
Taft-Harley Act.
Norris LaGuardia Act.
Wagner Act.
Landrum-Griffin Act.
The Wagner Act established a certification process by which a union was recognized by the NLRB as the authorized bargaining agent for a
group of workers. The act required that once a union was certified, management must bargain at reasonable times and in good faith with the
union on issues such as wages, hours, and terms and conditions of employment.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #227
Topic: Labor Legislation and Collective Bargaining
228. (p. 322) During the lunch break at Secure Seat Belt Corporation, Ben's friend Dan was enthusiastic about the Employee Free Choice Act.
According to Dan, if congress passes this legislation,
A. employees will no longer be under any pressure to join the union.
B. employees will have a choice of higher pay or the assurance of good union representation with safety issues.
C. union representatives will have the right to choose which members of management will participate in collective bargaining for the
company.
D. unions will win the right to replace secret ballot voting for union certification with a card check, an open authorization method of securing
votes for union representation.
The Employee Free Choice Act would allow unions to gather voter approval for union representation by having employees opening sign a
check card. The act would eliminate the need for secret ballot.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #228
Topic: Labor Legislation and Collective Bargaining
229. (p. 323) During the 1970s, the primary objective of most labor unions was to:
A.
B.
C.
D.
restore the closed shop arrangement.
improve pay and benefits for their members.
obtain more job security for their members.
establish employee stock ownership programs.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #229
Topic: Objectives of Organized Labor
230. (p. 323) During the 1980s, unions became increasingly concerned with the issues of:
A.
B.
C.
D.
pay and fringe benefits.
stock option plans and profit sharing.
job security and union recognition.
worker training and education.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #230
Topic: Objectives of Organized Labor
231. (p. 323) Over the past several decades unions have:
A.
B.
C.
D.
always placed the greatest emphasis on increasing wages and benefits.
frequently changed objectives as the result of shifts in social and economic conditions.
frequently taken global competition into account.
consistently favored policies that would move the U.S. economy toward a command system.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #231
Topic: Objectives of Organized Labor
232. (p. 323) The __________ sets the tone and clarifies the terms and conditions under which labor and management agree to function over a
specific period of time.
A.
B.
C.
D.
negotiated labor-management agreement
right-to-work agreement
open shop agreement
bargaining zone
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #232
Topic: Objectives of Organized Labor
233. (p. 323) The AFL-CIO was __________ the Central American Free Trade Agreement (CAFTA).
A.
B.
C.
D.
strongly in favor of
cautiously neutral in its views toward
opposed to
split in two camps, one in favor of and the other opposed to
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #233
Topic: Objectives of Organized Labor
234. (p. 323) The AFL-CIO was a major __________ of the NAFTA agreement passed by Congress in 1994.
A.
B.
C.
D.
contributor to the design
financial backer
advocate
opponent
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #234
Topic: Objectives of Organized Labor
235. (p. 324) Under ________, workers are not required to join the union, but those who do not join are still required to pay a union fee or
regular dues to the union.
A.
B.
C.
D.
right-to-work laws
all union security clauses
agency shop agreements
Employee Stock Option Plans (ESOPs)
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #235
Topic: Objectives of Organized Labor
236. (p. 325) According to the "Reaching Beyond Our Borders" box in Chapter 12,
A. going global may be the strategy that rekindles the labor unions.
B. there is not a strong enough base of unskilled laborers internationally to make it worthwhile to form a global union at this time.
C. most domestic unions are watching the auto workers unions. If the auto workers can certify auto plants in Mexico, Turkey, and Japan,
there is a chance that other unions will follow a global path.
D. the increase in unions globally has far surpassed the union growth rate in the U.S.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #236
Topic: Reaching Beyond Our Borders box
237. (p. 324) Under a(n) ___________ shop agreement, workers must belong to the union before they are hired.
A.
B.
C.
D.
open
union
agency
closed
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #237
Topic: Figure 12.4: Different Forms of Union Agreements
238. (p. 324) The justification for dues or fees paid by nonunion members to the union in a(n) _________ shop is that the union represents all
workers in collective bargaining, not just those who belong to the union.
A.
B.
C.
D.
closed
agency
fee simple
union
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #238
Topic: Figure 12.4: Different Forms of Union Agreements
239. (p. 324) In a(n) __________ shop, workers do not have to belong to a union before they are hired, but they must join a union within a
specified period (usually 30, 60, or 90 days) in order to keep their job.
A.
B.
C.
D.
agency
closed
open
union
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #239
Topic: Figure 12.4: Different Forms of Union Agreements
240. (p. 324) If a union is present in a firm that has a(n) _________ shop arrangement, workers may join the union if they wish, but they are not
required to join or pay a union fee in order to keep their jobs.
A.
B.
C.
D.
open
unrestricted
freedom of choice
agency
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #240
Topic: Figure 12.4: Different Forms of Union Agreements
241. (p. 326) A(n) ___________ is a union official who works permanently in an organization and represents employee interests on a daily
basis.
A.
B.
C.
D.
arbitrator
shop steward
mediator
president
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #241
Topic: Resolving Labor-Management Disagreements
242. (p. 324) Closed shops were declared illegal by the:
A.
B.
C.
D.
Taft-Hartley Act.
Norris-LaGuardia Act.
National Labor Relations Board in 1929.
U.S. Supreme Court in 1946.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #242
Topic: Figure 12.4: Different Forms of Union Agreements
243. (p. 326) ___________ is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor
dispute or achieve a mutually acceptable labor-management agreement.
A.
B.
C.
D.
Arbitration
Mediation
Reconciliation
Intercession
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #243
Topic: Mediation and Arbitration
244. (p. 327) The process of bringing in an impartial third party to render a binding decision in a labor dispute is referred to as:
A.
B.
C.
D.
resolution.
mediation.
arbitration.
confirmation.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #244
Topic: Mediation and Arbitration
245. (p. 327) If management and union officials cannot resolve a grievance, a(n) _________ is asked to listen to the arguments of each side and
to make a decision that both sides will have to comply with.
A. confirmer
B. counselor
C. arbitrator
D. mediator
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-3
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #245
Topic: Mediation and Arbitration
246. (p. 323) Which of the following topics is generally covered in a negotiated labor-management agreement?
A.
B.
C.
D.
Corporate pricing policy
Grievance procedures
Management fringe benefits
Management compensation
A negotiated labor-management agreement typically includes the grievance procedures such as the arbitration agreement and mediation
procedures.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #246
Topic: Objectives of Organized Labor
247. (p. 324) Union shops are illegal in the state of North Carolina. This means that North Carolina:
A.
B.
C.
D.
is violating federal law.
has passed a right-to-work law.
allows firms to use yellow-dog contracts.
is taking advantage of a loophole in the National Labor Relations Act.
The Taft-Hartley Act recognizes the union shop as a legal arrangement, but gives individual states the power to outlaw union shops by
passing right-to-work laws. Figure 12.5 shows NC as one of the states with right-to-work laws.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #247
Topic: Figure 12.4: Different Forms of Union Agreements
248. (p. 324) In a union shop:
A.
B.
C.
D.
workers must join the union within a stipulated time period (usually 30, 60, or 90 days) in order to keep their jobs.
workers must belong to the union before the company can hire them.
workers who do not join the union must pay a union fee.
workers are required to sign yellow-dog contracts.
Under a union shop, workers do not have to belong to a union to be hired for a job, but they do have to join the union within a prescribed
period in order to keep their job.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #248
Topic: Figure 12.4: Different Forms of Union Agreements
249. (p. 325) The key difference between an agency shop agreement and an open shop agreement is that in an agency shop:
A. workers must join the union within a stipulated time period (usually 30, 60, or 90 days) in order to keep their jobs, but in an open shop the
workers are not required to join the union.
B. the union is restricted to a limited number of employees who perform specific types of jobs, but in an open shop membership in the union
is available to all workers.
C. workers who do not join the union must pay a fee or regular dues, while in an open shop workers who choose not to join the union do not
have to pay any union fees or dues.
D. workers must agree not to join a union in order to keep their jobs while in an open shop workers are free to join a union if they wish, but
they are not required to do so.
In an agency shop workers are not required to join the union, but workers who choose not to join are required to pay a fee to the union or
regular union dues. In an open shop, workers are free to join a union or not join, and those that do not join are not required to pay any fees or
dues.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #249
Topic: Figure 12.4: Different Forms of Union Agreements
250. (p. 326
327)
A key difference between a mediator and an arbitrator is that:
A. a mediator is appointed by labor and management, while an arbitrator is appointed by the federal government under terms set forth in the
Taft-Hartley Act.
B. a mediator is an unpaid volunteer, while an arbitrator is a paid professional.
C. an arbitrator can settle a labor-management dispute by rendering a binding decision, while a mediator can only make suggestions and
encourage the two sides in a dispute to continue negotiating.
D. a mediator is a lawyer who represents either labor or management in a labor dispute, while an arbitrator is an impartial advisor who listens
to both sides of the dispute and offers suggestions that help the two parties reach a mutually acceptable agreement.
A mediator is an impartial third party who encourages both parties in a labor management dispute to continue negotiating. Mediators can offer
suggestions to help the parties reach an agreement, but do not have the authority to end the dispute by making a binding decision. An
arbitrator is an impartial third party who has the authority to settle a labor-management dispute by rendering a binding decision.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #250
Topic: Mediation and Arbitration
251. (p. 325) A grievance is:
A.
B.
C.
D.
an implication that management has broken a management - union agreement, but it must be proven.
an employee's perception that management has not in some way fulfilled a labor contract agreement.
the disappointment that members of a union feel when management refuses to participate in good faith collective bargaining.
the result of a poorly arbitrated conflict.
A grievance is a charge by an employee that management is not abiding by the agreed upon labor contract, as he/she perceives it. Grievances
are usually filed due to problems with overtime rules, promotions, layoffs, transfers and job assignments.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #251
Topic: Resolving Labor-Management Disagreements
252. (p. 326) Labor unions and management hope to resolve issues through collective bargaining. Each side comes to the table with a range of
options they are willing to consider - some more appealing than others. All options that each will consider fall within the
_________________.
A.
B.
C.
D.
the LRB list of possibilities
the cases of consideration
the lands of indifference
bargaining zone
The bargaining zone is the range of options that each side is willing to consider in the process of collective bargaining.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-3
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #252
Topic: Mediation and Arbitration
253. (p. 324) Hector is philosophically opposed to unions. "Why should I be required to join an organization I don't agree with, or pay a fee to
support it financially?" he asked some of his buddies who belong to the union. "I thought this was a free country, but I don't feel
very free when I'm told that I'll lose my job if I don't join the union. It just isn't fair." Hector's comments suggest he favors a(n)
__________ shop arrangement.
A.
B.
C.
D.
closed
open
regulated
certified
Under an open shop arrangement, workers can join a union if they wish (if one is present in the workplace) but cannot be required to join a
union or pay a fee to a union to keep their jobs.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #253
Topic: Figure 12.4: Forms of Union Agreements
254. (p. 324) Amie was recently hired at Kreigmeister Industries as a repairperson. She was informed that if she chose not join the union
representing her fellow repair workers, she would still have to pay a fee to the union. Apparently, Kreigmeister operates under a
(n):
A.
B.
C.
D.
illegal arrangement, since nonmembers can never legally be required to pay fees to unions.
closed shop agreement.
union shop agreement.
agency shop agreement.
In an agency shop, workers do not have to join a union, but nonmembers are required to pay either a special union fee or regular union dues.
Union supporters justify this type of arrangement because the collective bargaining efforts of the union gain benefits for all workers, not just
those who belong to the union.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #254
Topic: Figure 12.4: Forms of Union Agreements
255. (p. 324) In the late 1930s management at Bodenger Industries agreed to hire only those workers who were already members of the
Steelworkers Union. Bodenger had agreed to a type of arrangement known as a(n):
A.
B.
C.
D.
closed shop.
open shop.
union shop.
restricted shop.
In a closed shop, workers must belong to the union before they could be hired. While this type of arrangement was legal in the 1930s, the
Taft-Hartley Act declared closed shops illegal in 1947.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #255
Topic: Figure 12.4: Forms of Union Agreements
256. (p. 326) At the Grenchit Corporation the union and management have not been able to reach a mutually satisfactory agreement on a
grievance. The two sides have agreed to bring in a(n) _________ who will examine the evidence and arguments on both sides and
issue a binding decision.
A.
B.
C.
D.
mediator
arbitrator
fact finder
union steward
Figure 12.6 illustrates the different steps the formal grievance procedure could follow. An arbitrator is an impartial third party who will render
a binding decision in a labor dispute.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #256
Topic: Mediation and Arbitration
257. (p. 325) Anna believes that her manager violated the terms of the negotiated labor-management agreement when he required her to report
to work on a holiday. She has discussed her concerns with her shop steward and he agrees with her. It is likely the steward will
encourage Anna to:
A.
B.
C.
D.
start looking for another job in a right-to-work state.
contact the local chapter of the ACLU.
send a letter of protest to the president of the union.
pursue a grievance over the interpretation of the labor contract.
A grievance is a charge by employees that management is not abiding by or fulfilling the terms of the negotiated labor-management
agreement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #257
Topic: Resolving Labor-Management Disagreements
258. (p. 326) You've been on your lunch break for less than 45 minutes when your boss orders you to return to work immediately or be docked
an hour's pay. You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15
minutes left. Your boss stands firm on his order for you to return to work. Under protest, you return to work, but plan to file a
grievance. The first step you should take is to contact a(n):
A.
B.
C.
D.
arbitrator.
mediator.
strikebreaker.
shop steward.
Shop stewards are union officials who work permanently in an organization and represent employee interest on a daily basis. Figure 12.6 in
the text shows that the first step for an employee who wants to file a grievance is to contact the shop steward.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #258
Topic: Resolving Labor-Management Disagreements
259. (p. 326) Dr. Kwan, a professor at a local university, has been working with the union leaders and management at Empire Corporation to
help the two sides resolve differences over desired wage levels for a new contract. First, he met with each side privately to
determine any common ground for agreement. For the past week, he has worked with representatives from each side to promote
communication and compromise at the bargaining table. Dr. Kwan is a(n):
A.
B.
C.
D.
arbitrator.
mediator.
fact finder.
shop steward.
A mediator is an impartial third party who encourages both sides in a labor dispute to continue negotiating. Mediators will often make
suggestions for resolving a disagreement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #259
Topic: Mediation and Arbitration
260. (p. 324) Yogi believes that an agency shop is the most desirable union security arrangement. Which of the following statements would be
most likely to represent Yogi's views?
A. A union can succeed in its collective bargaining efforts only if it represents all workers. Therefore, workers should be required to join the
union soon after they are hired.
B.
Workers should be allowed to join a union if they wish, but they should not be required to join or pay a fee to the union in order to keep
their job.
C. Workers should not be required to join a union to keep their jobs. However, since all workers enjoy the benefits obtained through
collective bargaining, even those who do not join should pay a fee to support the union.
D. Unions should be replaced by employee stock ownership plans that give workers a say in the management of their firms.
Under an agency shop arrangement, workers are not required to join a union, but those who do not join must pay a union fee.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #260
Topic: Figure 12.4: Forms of Union Agreements
261. (p. 325) According to information contained in the "Reaching Beyond Our Borders" box in Chapter 12, U.S. unions,
A.
B.
C.
D.
believe that they can bargain for better wages and benefits if they globalize.
are staving off European and Asian unions from trying to grow and gain a stronghold on the market that the U.S. unions enjoyed.
the lackluster numbers of participants in unions in Europe are an indication that unions will not be "going global" anytime soon.
like companies, see national borders as obstacles rather than opportunities.
The U.S. unions are interested in globalizing and some have already taken steps in that direction, including the U.S. Steel Workers and the
United Food and Commercial Workers.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #261
Topic: Reaching Beyond Our Borders box
262. (p. 326) Art B.Traytor, a member of the American Arbitration Association and long-standing faculty member of the business school of a
large university is heading out on the next plane for Detroit, Michigan where he will serve as an arbitrator between members of the
United Auto Workers union and management of a major auto manufacturer. His responsibilities will deal with:
A. certifying union representation at the Michigan manufacturing sites.
B. certifying union representation and collective bargaining at all manufacturing sites that the auto manufacturer currently has in operations,
including any in Mexico and Canada (in accordance with NAFTA).
C. listening to both sides of an unresolved dispute between labor and management and render a binding decision on the problem.
D. protecting the interests of management and staving off a strike by the auto workers.
Arbitration is a more extreme form of negotiation as compared to mediation. The arbitrator will listen to the perceptions and problems of both
parties and workout a binding solution to the dispute. Both sides must preliminarily agree that they will accept the arbitrator's decision.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #262
Topic: Mediation and Arbitration
263. (p. 326) As a management executive left the meeting between his team and the company's union representatives and headed straight for the
CEO's office, he reviewed where things seemed to breakdown. Union reps came to the table with three different offers to resolve
the insurance and vacation benefits problems laborers were experiencing. Management offered its own resolutions - two different
ones, to be exact. The problem was that a bargaining zone did not emerge. Neither side was willing to consider each other's
alternatives. As he reached the CEO's door, he was ready to concede that the negotiations were probably headed to
________________.
A.
B.
C.
D.
collective bargaining
arbitration
a vote
mediation
Labor and management were proceeding with collective bargaining, however, they had reached an impasse because there was no bargaining
zone. The next step is to enter into mediation, where an impartial third party listens to disagreements and solutions offered by both sides,
encourages the talks to continue, and makes suggestions for alternative solutions leading toward resolution.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #263
Topic: Mediation and Arbitration
264. (p. 327) Historically, the most potent union tactic when collective bargaining efforts break down has been the:
A.
B.
C.
D.
strike.
lockout.
court injunction.
primary boycott.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #264
Topic: Union Tactics
265. (p. 327) When union members who have a dispute with a company walk around outside the firm's place of business carrying signs and
talking to the media and public about their concerns, they are using a tactic known as:
A. boycotting.
B. estopment.
C. striking.
D. picketing.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #265
Topic: Union Tactics
266. (p. 328) A(n) __________ occurs when a union encourages its members and the general public not to buy the products of a firm involved
in a labor dispute.
A.
B.
C.
D.
injunction
wildcat strike
primary boycott
embargo
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #266
Topic: Union Tactics
267. (p. 328) A(n) ___________ is a court order directing someone to do something or to refrain from doing something.
A.
B.
C.
D.
restrictive covenant
injunction
judicial encyclical
declaratory judgment
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #267
Topic: Management Tactics
268. (p. 327
328)
A.
B.
C.
D.
Two of the most important tactics used by unions when collective bargaining efforts break down are:
strikes and boycotts.
injunctions and lockouts.
conciliation and yellow-dog contracts.
enforcement of right-to-work clauses and cooling-off periods.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #268
Topic: Union Tactics
269. (p. 328) A(n) ________ boycott is an illegal attempt by labor to convince others to stop doing business with a firm that does business with
a company that is the subject of a primary boycott.
A.
B.
C.
D.
extended
secondary
tactical
strategic
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #269
Topic: Union Tactics
270. (p. 328) A(n) ___________ occurs when management temporarily closes a business to deny employment to workers.
A.
B.
C.
D.
lockout
secondary boycott
involuntary strike
employment injunction
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #270
Topic: Management Tactics
271. (p. 329) At this time, the largest labor organization in the United States is the:
A.
B.
C.
D.
Teamsters.
Knights of Labor.
United Automobile Workers.
National Education Association.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #271
Topic: The Future of Unions and Labor-Management Relations
272. (p. 329) Despite a 1938 Supreme Court ruling allowing their use, ___________ were seldom used by management during labormanagement disputes until the 1980s.
A.
B.
C.
D.
injunctions
secondary boycotts
strikebreakers
yellow-dog contracts
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #272
Topic: Management Tactics
273. (p. 328) Under the provisions of the Taft-Hartley Act, the president can ask for a(n) ___________ to prevent a strike in a critical industry.
A.
B.
C.
D.
arbitrator
cooling-off period
open shop agreement
temporary take over by the federal government
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #273
Topic: Union Tactics
274. (p. 328) The __________ is a tactic police, firefighters, and other workers who are not legally allowed to strike sometimes use to express
their frustration and displeasure with working conditions or pay.
A.
B.
C.
D.
gold cold
steel deal
slow-mo
blue flu
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #274
Topic: Union Tactics
275. (p. 330) In recent years some unions have granted concessions and given up benefits secured in earlier contract negotiations in an attempt
to save jobs. These concessions are called:
A.
B.
C.
D.
injunctions.
givebacks.
buyouts.
disbenefits.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #275
Topic: The Future of Unions and Labor-Management Relations
276. (p. 329) ___________ are workers a company hires to replace workers who are out on strike.
A.
B.
C.
D.
Yellow dogs
Convergent workers
Structural replacements
Strikebreakers
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #276
Topic: Management Tactics
277. (p. 330) Since 1945, the unionized share of the workforce has:
A.
B.
C.
D.
remained remarkably steady.
dropped steadily, and today is only 12.4%.
risen steadily from 13.9% in 1945 to 32.1% in 2002.
fluctuated erratically with large increases in some years and large decreases in others.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #277
Topic: The Future of Unions and Labor-Management Relations
278. (p. 331) According to the material in the "Spotlight on Small Business" box in Chapter 12, a relatively recent trend is for many
__________ to join unions.
A.
B.
C.
D.
nurses and doctors
minor league baseball players
bank tellers
teachers
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #278
Topic: Spotlight on Small Business box
279. (p. 330) The emergence of ______________ has changed the nature of work and affected labor-management relations.
A.
B.
C.
D.
global competition
yellow-dog contracts
closed shop agreements
scientific management
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #279
Topic: The Future of Unions and Labor-Management Relations
280. (p. 330) In recent years, many unions have begun to:
A.
B.
C.
D.
focus primarily on the issue of equitable pay.
assist management in redesigning work and recruiting and training workers from diverse backgrounds.
take a more confrontational approach when attempting to achieve important goals.
experience rapid but uneasy growth as more foreign-owned firms enter the U.S. economy, creating cultural problems for American
workers.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-4
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #280
Topic: The Future of Unions and Labor-Management Relations
281. (p. 328) Which of the following tactics would management be most likely to use during a labor-management dispute?
A.
B.
C.
D.
picketing
secondary boycotts
lockouts
primary boycotts
Picketing and boycotts are tactics that are used by labor rather than management. However, a lockout is a management tactic.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #281
Topic: Management Tactics
282. (p. 330) The ability of unions to achieve key goals in the future will depend on their ability to:
A.
B.
C.
D.
reestablish their base of strength in the manufacturing sector.
find ways to cooperate with management in training workers and redesigning jobs.
repeal the Wagner Act and the Norris-LaGuardia Act in order to eliminate restrictions on union tactics.
return to the confrontational tactics used successfully in the 1930s when unions grew rapidly.
Union leaders realize that U.S. firms must remain competitive in the global economy, and that this will require unions to work with
management to train workers, redesign jobs, and assimilate the 21st century workforce. The rewards unions can expect for cooperating with
management include improved job security, profit sharing, and, in some cases, higher wages.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #282
Topic: The Future of Unions and Labor-Management Relations
283. (p. 330) One strategy unions must adapt in order to grow in the future is to:
A.
B.
C.
D.
find ways to appeal to white-collar, female, and foreign-born workers.
find ways to prevent foreign companies from entering the U.S. market.
go back to the old methods of aggressive tactics and confrontation that were used successfully in the past.
emphasize recruiting efforts in the manufacturing sector of the economy.
The manufacturing sector has always been an area of union strength. However, future growth will require unions to find ways to appeal to
workers that have not been attracted to unions in the past.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #283
Topic: The Future of Unions and Labor-Management Relations
284. (p. 327 Which of the following statements best summarizes the extent to which unions currently rely on strikes as a tactic when collective
bargaining breaks down?
328)
A. Unions have become increasingly reliant on strikes as other, less confrontational, tactics have proven unsuccessful.
B. Some highly visible strikes in recent years show that the strike is not dead as a labor tactic, but very few labor disputes actually lead to a
strike.
C. Unions have almost completely avoided strikes since President Reagan replaced striking air traffic controllers with strikebreakers in 1981.
D. Strikes organized by unions are now less common than lockouts by management, indicating a major shift in attitudes between labor and
management.
Strikes are very costly to both the firm and the workers involved, and the aftermath of a strike can be hard feelings and poor morale that
plague a company for years. Thus, both management and labor seek to avoid strikes when possible. Very few labor disputes actually lead to
strikes.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #284
Topic: Union Tactics
285. (p. 329) When workers go on strike, management is often compelled to keep the business operation running. If it is unable to achieve this
on its own, management may:
A.
B.
C.
D.
elect to proceed with a lockout.
close down the facility and permanently fire the strikers.
hire strikebreakers.
picket.
Two tactics used by management to deal with the consequences of a strike are court injunctions, asking the legal system to demand that
workers return to work, or they may hire strikebreakers, temporary employees that will work in place of the striking workers. Strikebreakers
must cross the picket line a choice that can often be intimidating.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #285
Topic: Management Tactics
286. (p. 329) The Making Ethical Decisions box titled, "When Do You Cross the Line?" discusses:
A.
B.
C.
D.
the violence that occurs at picket lines, and the welfare of those who are physically hurt as a result of these occurrences.
the ethics of participating as a strikebreaker in your community.
how givebacks are very unethical on the part of management in large operations and an indication that management has "crossed the line".
the ethics of participating in the blue flu.
The Making Ethical Decisions box asks the student to consider how he/she would feel about taking advantage of a strike situation by seeking
employment as a strikebreaker. Is it ethical to work in the place of friends and neighbors that you know are striking for reasonable concerns
such as good health care benefits?
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-4
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #286
Topic: Making Ethical Decisions box
287. (p. 328) Almost overnight, several police persons, all members of the police force of the growing suburb of Mayberry called in sick. As the
dispatcher took those calls - one right after the other, she speculated that there could be more to this story than she was hearing. In
fact, she thought it might be related to the emotional banter she heard the night before in the locker room as several members of the
force were leaving their shifts. The group was not happy with the recent changes in scheduling, the excessive over-time hours, and,
management's reluctance to begin negotiations on a new benefits package. She heard one person saying, "It's time for a mental
health day!" Although it is illegal for police to strike, they may be claiming to have ________.
A.
B.
C.
D.
Saturday nite fever
the blue flu
a lockout
a shutterbug
Even though they can unionize, it is illegal for public safety officers such as the police and fire fighters to go on strike. When negotiations
breakdown between these officers and their management, some may group together and call-in sick, as a way of boycotting work and
demonstrating to management that they are not agreeing to the their work conditions. This is called the "blue flu".
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #287
Topic: Union Tactics
288. (p. 328) The Food Source Grocery chain stocks the products of Vegi-Delite Food Company at all of their supermarkets. The Teamsters
Union is currently involved in a labor dispute with Vegi-Delite. The union has already encouraged its members and the general
public not to buy Vegi-Delite products. Now it is threatening Food Source with the possibility of a boycott if it continues to carry
the Vegi-Delite line. The union is threatening Food Source with a(n):
A.
B.
C.
D.
primary boycott.
secondary boycott.
jurisdictional boycott.
informational boycott.
A secondary boycott is an attempt to discourage other organizations from doing business with a firm that is the subject of a primary boycott.
Secondary boycotts are prohibited by the Taft-Hartley Act.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #288
Topic: Union Tactics
289. (p. 328 A large number of striking workers are currently picketing at the plant entrance to a Memphis Tire and Rubber plant. Because the
pickets have threatened people entering the plant and have vandalized some company property, Memphis' management believes it
329)
has just cause to ask the courts for a(n) __________ placing limits on the number of pickets and their actions while picketing.
A. preemptive judgment
B. writ of contention
C. arbitration judgment
D. injunction
A court order directing someone to do something, or to refrain from doing something is called an injunction. Courts will only issue
injunctions in labor disputes if the company can show just cause such as the possibility of violence or the destruction of property.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #289
Topic: Management Tactics
290. (p. 328) A labor dispute between the AFL-CIO and Gainesville Brewery is into its eighth month. The AFL-CIO has called on its
membership and the general public to refuse to purchase Gainesville products. The AFL-CIO is calling for a:
A.
B.
C.
D.
general boycott.
secondary boycott.
primary boycott.
public boycott.
A primary boycott occurs when organized labor encourages its membership and the general public not to buy products produced by a firm
involved in a labor dispute.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #290
Topic: Union Tactics
291. (p. 329) As reported in the New York Times in November, 2008, Ron Gettelfinger, President of the U.A. W. (United Auto Workers Union)
testified with auto executives in front of the U.S. Congress, saying, "The U.A.W. can't be the low-hanging fruitWhile we're at
the table, we're asking that others come in and sacrifice as well." Mr.Gettelfinger was referring to the several ___________ that the
autoworkers' union had agree to over the past few years in order to save jobs and particularly keep retiree benefits intact.
A.
B.
C.
D.
primary boycotts
givebacks
herding tactics
legal mandates
Givebacks refer to concessions that unions grant back to management in order to save jobs or stave off worsening economic conditions.
Examples of givebacks may be collective bargaining agreements for higher wages or better insurance or vacation benefits.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #291
Topic: The Future of Unions and Labor-Management Relations
292. (p. 331) The "Spotlight on Small Business" in Chapter 12 discusses the medical profession and unions. Which of the following
statements about the views of doctors and nurses is most accurate?
A. Although doctors have shown little interest in union representation, the last decade has seen almost all nurses join unions.
B. Doctors and nurses are reluctant to join unions because they believe unions are better suited to represent the interests of unskilled and
semiskilled labor than the interests of highly skilled professional health care workers.
C. Although both doctors and nurses have tried to form unions, the AFL-CIO has indicated that doctors and lawyers are not eligible for
membership.
D. Doctors and nurses have shown strong interest in seeking union representation.
The Spotlight on Small Business cites several examples of ways doctors and nurses are seeking union representation.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #292
Topic: Spotlight on Small Business box
293. (p. 328) A few years back, west coast dockworkers were locked out of their jobs in 29 west coast ports. Because many consumer goods
used in the U.S. are transported from Asia to the U.S. through these ports, the lockout could have damaged the U.S. economy and
security if allowed to continue. The President ordered the dockworkers back to work and both sides were ordered back to the
bargaining table. Which of the following statements is the most accurate conclusion about the outcome of the labor dispute
between the dockworkers union and shipping companies on the west coast? The dispute between the dockworkers and shipping
companies showed that:
A.
B.
C.
D.
the only effective weapon unions now have in labor-management disputes is the threat of a strike.
arbitration is the only effective way to settle labor-management disputes in industries that are critical to the nation's safety or security.
the Taft-Hartley Act must be invoked when there is a risk to national security.
unions have become so powerful that they can shut down the entire U.S. economy.
To help settle this dispute the President stepped in, using the provision of the Taft-Hartley Act that applies to critical industries such as
transportation, to get both sides to the bargaining table during a "cooling off" period. (The final result was a new six-year contract that
allowed both sides to achieve much of what they wanted.)
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #293
Topic: Union Tactics
294. (p. 328)
In July 2009, London Met University workers went on strike and formed picket lines to oppose management's continued
restructuring and the elimination of jobs. It was reported that London postal workers who belong to the Communication Workers
Union refused to deliver mail to any building on the London Met campus, in respect of the picket lines and in honor of their fellow
trade union members. Essentially, the courtesy that the postal workers gave to the striking employees was a:
A.
B.
C.
D.
primary boycott
secondary boycott
tertiary boycott
service industry boycott
A primary boycott occurs when the striking union discourages its members and the general public from buying the products and services of
the organization they are striking against. A secondary boycott occurs when other organizations are encouraged to stop doing business with
the organization that is the focus of the primary boycott. In this situation, the postal workers voluntarily agreed to boycott the university by
refusing to provide their service to the school.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #294
Topic: Union Tactics
295. (p. 329) When AT&T anticipated that 20,000 mobility workers were planning to strike to show their solidarity against concerns of unfair
compensation, management was already calling staffing agents to temporarily employ persons to cover for striking employees.
Traditionally, these workers are called ___________.
A.
B.
C.
D.
mobile temps
picket busters
strikebreakers
boycotters
Strikebreakers are persons who are temporarily hired to replace striking employees.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #295
Topic: Union Tactics
296. (p. 332) A comparison of compensation of CEOs in the U.S. with compensation of top executives in Canada and Europe indicates that:
A.
B.
C.
D.
U.S. CEOs are working for much lower compensation.
pay for CEOs at major corporations is about the same in all of these nations.
executives in the U.S. are compensated at a much higher rate.
U.S. executives are paid better than average when their firms are successful, but worse than average when their firms struggle.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #296
Topic: Executive Compensation
297. (p. 333) According to one of the top management consultants of the past 40 years, the late Peter Drucker:
A. top executives are entitled to any level of pay they can negotiate with their board of directors.
B. the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm
earns higher profits than competitors.
C. all bonuses paid to CEOs should be tied to long-run increases in market share.
D. CEOs should not earn much more than 20 times the earnings of the company's lowest-paid employee.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #297
Topic: Pay Equity
298. (p. 332
333)
A.
B.
C.
D.
Over the past several decades, the compensation of CEOs of large U.S. corporations has:
remained relatively stable once inflation is taken into account.
become based more on salary and less on stock options.
increased enormously, even when inflation is taken into account.
consistently lagged behind the compensation of top executives in Europe and Asia.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #298
Topic: Executive Compensation
299. (p. 334) In some European countries, companies practice co-determination. For example,
A.
B.
C.
D.
CEOs can only earn their salaries if the company is profitable.
in some cases, 50% of the board of directors is company workers.
the CEO compensation is determined by the Stockholders and the government.
the union representatives and management form a hiring committee to select the CEO.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #299
Topic: Executive Compensation
300. (p. 332
333)
A.
B.
C.
D.
In the past, the compensation of chief executive officers of corporations was based on:
the assumption that CEOs should be major stockholders of the corporations that they managed.
a generally accepted principle that CEOs should earn no more than 40 times the compensation of the company's lowest-paid employee.
company profitability and increases in the value of their firm's stock.
the size of the company.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #300
Topic: Executive Compensation
301. (p. 334) _____________ is the demand for equal pay for jobs requiring similar levels of education, training, and skill.
A.
B.
C.
D.
Affirmative action
Compensation by objectives
Equal opportunity pay
Comparable worth
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #301
Topic: Pay Equity
302. (p. 334) Women have become a __________ part of the labor force.
A.
B.
C.
D.
sizeable and permanent
temporary
smaller
less important
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #302
Topic: Pay Equity
303. (p. 334) Today, women earn approximately ________ of what men earn, though the disparity varies considerably by profession and the
level of education.
A.
B.
C.
D.
26%
49%
79%
97%
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #303
Topic: Pay Equity
304. (p. 334) Studies conducted at the University of Michigan found that earnings of women graduating with baccalaureate degrees were:
A.
B.
C.
D.
less than 60% of men's earnings in all fields.
about 70% of what male graduates earned.
about 96% of men's earnings.
about 104% of men's earnings.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #304
Topic: Pay Equity
305. (p. 335) ____________ refers to unwelcome sexual advances, requests for sexual favors, and other unsolicited conduct of a sexual nature.
A.
B.
C.
D.
Sexual harassment
Gender bias
Sexual opportunism
Sexual coercion
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #305
Topic: Sexual Harassment
306. (p. 335) The number of sexual harassment complaints filed annually with the Equal Opportunity Commission:
A.
B.
C.
D.
decreased by almost 30% between 1992 and 1999.
has leveled off since 2000.
remained fairly stable in the 1990s but has recently increased dramatically.
was greatly exaggerated by the media during the 1990s and early 2000s.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #306
Topic: Sexual Harassment
307. (p. 335) Sexual harassment laws:
A.
B.
C.
D.
apply only to situations in which men make unwelcome advances to women.
are enforceable only in states that have enacted right-to-work laws.
apply to the conduct of women as well as men.
are applied only in situations in which a person must submit to unwanted advances in order to keep his or her job.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #307
Topic: Sexual Harassment
308. (p. 335) _________ sexual harassment refers to situations in which an employee's submission to unwanted conduct is made either explicitly
or implicitly a term or condition of employment or is used to influence employment decisions affecting the worker's job status.
A.
B.
C.
D.
Quid pro quo
Post hoc
Ceteris paribus
Reflexive
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #308
Topic: Sexual Harassment
309. (p. 335) Harassment that creates an intimidating, or offensive work environment falls under the type of sexual harassment known as a(n):
A.
B.
C.
D.
hostile work environment.
quid pro quo.
extroverted harassment.
de jure harassment.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #309
Topic: Sexual Harassment
310. (p. 336) Small businesses have found that child care programs:
A.
B.
C.
D.
are too expensive to offer, which puts them at a serious disadvantage when competing against larger firms to attract the best workers.
can be offered in creative ways that enable the firm to offer an attractive benefit to workers with young children.
are less necessary now than they were before the federal government expanded its child care programs.
are not very expensive, but tend to be more trouble than they are worth.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #310
Topic: Child Care
311. (p. 337) As the workforce of the U.S. ages, a greater percentage of workers will have to concern themselves with:
A.
B.
C.
D.
finding care for their children.
caring for older relatives.
the educational benefits of downsizing.
transportation issues.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #311
Topic: Elder Care
312. (p. 337) According to Sandra Timmermann, Director of Met Life's Mature Market Institute, the key job-related issue of the next decade
will be:
A.
B.
C.
D.
child care.
continuing education.
sexual harassment.
elder care.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #312
Topic: Elder Care
313. (p. 337) From a work-related perspective, elder care providers may require _____________ as part of their job.
A.
B.
C.
D.
mini-van ownership
medicare options
flextime, job sharing, and telecommuting
distance learning classes
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #313
Topic: Elder Care
314. (p. 337) It is estimated that firms lose ___________ annually in productivity, absenteeism, and employee turnover due to caring for aging
parents.
A.
B.
C.
D.
$42 million
$10 thousand
$11 billion
a decreasing amount
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #314
Topic: Elder Care
315. (p. 338) Drug problems among workers is costing the U.S. economy upwards of ______ in lost work, health care costs, and even crime and
accidents.
A.
B.
C.
D.
$100 million
$50 billion
$275 billion
$50 thousand
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #315
Topic: Drug Testing
316. (p. 338) The U.S. Department of Labor cites ________ as the third leading cause of job-related fatalities.
A.
B.
C.
D.
homicide
equipment-related accidents
suicide
toxic chemicals
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #316
Topic: Violence in the Workplace
317. (p. 338) The national Institute of Health estimates that each drug abuser can cost an employer approximately __________ annually.
A.
B.
C.
D.
$500
$1,000
$5,000
$11,000
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #317
Topic: Drug Testing
318. (p. 338) Which of the following is an effective way to deal with the growing threat of workplace violence?
A.
B.
C.
D.
Ignore it, as the amount of workplace violence has actually decreased substantially.
Hire managers with strong interpersonal skills.
Ask employees that are experiencing threats or harassment to take paid leave.
Avoid disciplining employees who are not performing up to par since they will learn on the job and their performance will improve over
time.
AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 12 #318
Topic: Drug Testing
319. (p. 335) In 1997, the Supreme Court rendered a decision on a case stipulating that sexual harassment law:
A.
B.
C.
D.
did not apply to casual jokes of a sexual nature.
applied to same-sex harassment, as well.
did not apply to married couples who are working together.
only applied to cases where a subordinate felt harassed by an immediate supervisor.
The Supreme Court (in 1997) said that same-sex harassment also falls within the purview of sexual harassment law.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #319
Topic: Sexual Harassment
320. (p. 336) The subject" "Who pays for child care when the parent(s) works?" is
A.
B.
C.
D.
not a concern because the law requires companies to provide child care facilities, or to pay employees a stipend if it is not available.
by law, a shared responsibility between employer and employee.
not the concern of employees without children or single-income households because they always get to choose a different benefit.
a controversial subject, with no legal resolution to date.
There is no consensus or legal resolution about child care benefits at this time. Questions about responsibilities for child care subsidies, child
care programs, and parental leave have spurred much debate.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #320
Topic: Child Care
321. (p. 335) Which of the following is likely to remain a controversial labor-management issue in the future?
A.
B.
C.
D.
The ability of employers to use yellow-dog contracts
Enforcement of the Taft-Hartley Act
Sexual harassment
A resurgence of the Knights of Labor
The text discusses several controversial labor-management issues including executive compensation, pay equity, sexual harassment, childcare and elder care, drug testing and violence in the workplace.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #321
Topic: Sexual Harassment
322. (p. 332
333)
A.
B.
C.
D.
One of the major criticisms of executive compensation in the United States is that:
despite their high pay, top managers usually work fewer hours than other employees in the firm.
the compensation of top executives often seems to have little or no relationship to how well their companies are performing.
top executives' compensation does nothing to encourage them to improve the value of their company's stock.
many U.S. executives are paid much less than their counterparts earn in Europe and Japan.
The salaries, benefits, stock options, and bonuses earned by top executives sometimes rise even when their companies perform poorly. In the
Legal Briefcase box, the text cites several examples of CEOs whose compensation did not correlate with company performance
measurements.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #322
Topic: Legal Briefcase box
323. (p. 333) According to material in the "Legal Briefcase" box in Chapter 12, when chief executives of large companies retire or get fired
they:
A.
B.
C.
D.
are legally required to forfeit any shares of stock they received as compensation from the firm.
are sometimes better off financially than if they had stayed with the company.
typically continue to receive their salary for about two years, but forgo any bonuses or other forms of compensation.
usually receive more income from dividends on the company stock they own than they do from their severance package or retirement
pension.
The Legal Briefcase box documents provides examples of high profile CEO's who received performance bonuses, exorbitant severance
packages and other incentives contractually due to them upon parting ways with their employers.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #323
Topic: Legal Briefcase box
324. (p. 334) The fact that workers sometimes serve on the board of directors of European companies helps explain why:
A.
B.
C.
D.
European executives accept less responsibility for the successes and failures of the firms they lead.
European CEOs earn much less than American CEOs.
European firms are more likely to seek protection from foreign competition than American firms.
workers in Europe are less likely to believe unions are necessary than workers in the United States.
Since boards set executive compensation, the presence of workers on boards can serve as a restraint on this compensation.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #324
Topic: CEO Compensation
325. (p. 334) Comparable worth primarily is concerned with:
A.
B.
C.
D.
ensuring equal pay for men and women who work for the same firm and have the same job title.
reducing the gap between pay for executives and the pay for non-managerial employees.
ensuring equal pay for jobs requiring similar levels of skill, education and training.
determining whether men or women are better suited to perform various jobs.
Comparable worth does not mean that men and women who perform the same job should receive the same pay. Rather, it focuses on
comparing jobs, to ensure that people in jobs that require the same levels of skill, education and training receive equal pay.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #325
Topic: Pay Equity
326. (p. 338) Which of the following statements about drug users is a claim made by the National Institute of Drug Abuse?
A.
B.
C.
D.
If you drink a lot of alcohol, you also abuse drugs.
Drug users typically cost their company more in health and workman's comp claims.
Drug users are (overall) friendlier people because they do not take much seriously, including their jobs.
There is a strong correlation between drug abuse and sexual harassment.
According to the National Institute of Drug Abuse, drug users cost their companies twice as much in medical claims and workman's
compensation claims than do non-drug users.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #326
Topic: Drug Testing
327. (p. 336) On-site daycare facilities:
A.
B.
C.
D.
are now very common in large and small business.
decrease employee productivity because parents are distracted by going to the daycare site too many times during the day.
are costly for companies to maintain.
develop smarter children.
Daycare facilities are costly to maintain but usually result in positive long-term affects with respect to better employee productivity.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #327
Topic: Child Care
328. (p. 337) An assessment of elder care needs in the United States suggests that:
A. most firms have done a better job in responding to the need for elder care than they have in dealing with the need for child care.
B. employees who must care for elderly parents are often in positions that are more critical to the firm's success than workers with concerns
about child care.
C. although an increasing number of employees must find ways to care for elderly parents, fewer firms will need to offer elder care than child
care because the federal government already provides a great deal of assistance to the elderly.
D. while an issue for some workers, at the present time elder care is not a high profile item for most businesses.
It is usually the older, more experienced employees that must care for elderly parents. These older employees are often in positions with job
responsibilities that are critical to their company's success.
AACSB: Reflective Thinking
Blooms: Comprehension
Learning Goal: 12-5
Level of Learning 2: Understanding of concepts and principles
Nickels - Chapter 12 #328
Topic: Elder Care
329. (p. 333) Paulo owns a few shares of stock in a large and diversified firm. He realizes that the CEO of the company is responsible for a
multi-billion dollar business, but is upset with what he feels is excessive compensation for the chief executive officer, particularly
since the firm has reported losses for the past two years. Paulo's concerns are:
A. unfounded, since laws in the United States prevent firms from paying large salaries or bonuses to executives when a firm reports a loss.
B. based on an erroneous conclusion, because CEO pay is always based on a formula tied to the company's profits and losses.
C. likely to be well-founded since CEO compensation at many U.S. companies has actually increased even when the company performed
poorly.
D. not entirely unfounded, but he needs to realize that the pay received by most chief executives must be reinvested in the company if it's
unprofitable for three years in a row.
CEO compensation often soars even when the firm performs poorly. In fact, some CEOs earn huge payouts even when performance is so bad
that they are force to resign. The Legal Briefcase in this chapter cites several examples of this type of situation.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #329
Topic: Legal Briefcase box
330. (p. 334) Exceptional Enterprises launched a program to evaluate the relative levels of skills, education, and training needed to perform
various jobs. Based on the results of this evaluation, the firm intends to adjust pay scales so that jobs requiring similar levels of
skills, abilities, and education will receive similar pay. Exceptional Enterprises' program is an attempt to deal with the issue of:
A.
B.
C.
D.
comparable worth.
affirmative action.
reverse discrimination.
equal employment opportunities.
Comparable worth is concerned with achieving equal pay for jobs requiring the same level of skill, training, and education.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #330
Topic: Pay Equity
331. (p. 337) Which of the following statements about the costs of elder care is most accurate?
A. It should be much less expensive for firms to provide elder care than for them to provide child-care.
B. The financial burdens of elder care on the children of aging parents are likely to become less serious in the future than they are today,
because many senior citizens are now remaining employed into their 70s rather than retiring in their early 60s.
C. Although elder care is expensive, the good news is that companies can receive a great deal of assistance from the federal government
when they establish qualified elder care programs.
D. The costs of elder care are likely to rise very rapidly in coming years as an increasing number of older and more experienced employees
face the need to care for aging parents and other relatives.
As the workforce of the United States ages, an increasing number of employees will face the need to care for aging parents or other relatives.
Since the workers who have elderly parents are likely to be among the company's most experienced employees, they are likely to be in
positions of greater authority and responsibility than workers who have child care needs. Thus, the cost of absenteeism, tardiness, turnover
and reduced productivity of workers with elder care responsibilities could be especially high. Moreover, the federal government currently
provides little assistance to providers of elder care.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #331
Topic: Elder Care
332. (p. 338) As an employee of the human resource department of a major corporation, you are concerned about the potential costs of drug
abuse. You are contemplating testing employees for substance abuse. Before adopting such tests, you should know that:
A.
B.
C.
D.
this type of testing has been found to be illegal, but many firms do it anyway.
medical tests of this nature are not very accurate.
if you use these tests, your company will join over 70 percent of major companies that test workers and job applicants.
these tests are very expensive, and should only be given to those who may belong to groups judged to be at higher risk.
Today over 70 percent of major companies now test workers and job applicants for substance abuse.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #332
Topic: Drug Testing
333. (p. 338) Tom Dash works as a researcher studying the effects of alcohol and drug abuse at a large research university on the east coast. The
alcohol center's mission statement reads, "Our mission is to conduct, coordinate, and promote basic and clinical research on the
causes, prevention, and treatment of alcoholism and alcoholic disease." Looking forward, which of the following statements are
you likely to agree with?
A. Tom's work, although impressive will not have any short term or long-term effect on the cost of labor in the U.S.
B. The U.S. has seen significant declines in alcohol and drug related issues in the work place. Tom would better serve the business world by
working on AIDS related diseases.
C. Illegal drug use is more of a problem than alcohol in terms of the number of work-related accidents that these problems cause. Tom should
know, though that the baby boomers are the major drug users, and they are retiring.
D. Tom Dash's work is greatly needed by business and industry. Alcohol and drug use continue to be on the rise and present serious work
related costs to businesses across almost all industries.
Alcohol is the most widely used drug with over 6.2% of all U.S. employees believed to be heavy drinkers. According to the National Institute
on Drug Abuse, employed drug users cost their employers about twice as much in medical and workers' compensation claims than drug-free
co-workers.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #333
Topic: Drug Testing
334. (p. 338) SafenSwift Airlines implemented a program to curb workplace violence before it occurs. Under this program, the employees of
SafenSwift can expect to:
A.
B.
C.
D.
share in any profits their airline earns.
get paid extended leave if they become especially and visibly angry at work.
see much more use of contingent workers.
take part in focus groups to share their ideas about workplace violence prevention.
Many executives and managers consider workplace violence a serious issue and have taken action to prevent problems before they occur. To
deal with this growing threat, firms have held focus groups to invite employee input, hired managers with strong interpersonal skills, and
employed skilled consultants to deal with any growing potential of workplace violence.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #334
Topic: Violence in the Workplace
335. (p. 335) Which of the following statements about sexual harassment is most accurate?
A. Only men can be charged with sexual harassment.
B. Sexual harassment cannot be proven unless the employee's submission to such conduct was made explicitly a term of employment or was
used to influence the results of the employee's performance appraisal.
C. One flaw with the current laws concerning sexual harassment is that they do not take into account the possibility of same-sex harassment.
D. In evaluating charges of sexual harassment, the courts place a great deal of emphasis on whether the behavior was unwelcomed.
In evaluating charges of sexual harassment, a key word seems to be unwelcome, a term that refers to behavior that would offend a reasonable
person.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #335
Topic: Sexual Harassment
336. (p. 337) Last year, a retired schoolteacher moved her parents from Michigan to northern Illinois to live with her. For the past year, she was
traveling two times each month to provide care for this eighty-six year old couple, including coordinating medical services and
meals. In conversations with her family members, the teacher remarked, "If I were not already retired, I would have to quit my job
to continue this way!" This retired teacher:
A. is in an unusual situation because there are more persons entering the workforce with childcare issues than with taking care of aging
Americans.
B. is like a growing number of families whose households are caring for aging parents and relatives.
C. will benefit by all the affordable elder care facilities that cost about $20,000 per year.
D. should be advised that Medicare and Medicaid are covering all medical expenses for person 65 years and older, so she should not be
experiencing such a burden.
Some workers may have to concern themselves with finding child care many workers will confront another problem: how to care for older
parents and relatives. The number of households with at least one adult providing elder care has tripled since 1992.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #336
Topic: Elder Care
337. (p. 321) Identify several laws that significantly influenced labor-management relations. Discuss the major provisions of each law.
The text lists five acts that have had a major impact on labor-management relations. Much of the information about the major provisions of
each law is provided in Figure 12.1.
The Norris-LaGuardia Act of 1932 prohibited courts from issuing injunctions against nonviolent union activities, outlawed contracts
forbidding union activities, and outlawed yellow-dog contracts that required workers to agree not to join a union as a condition of
employment.
The National Labor Relations Act of 1935 (popularly known as the Wagner Act) gave employees the right to form and join labor unions,
the right to engage in collective bargaining with employers, and the right to engage in strikes, picketing, and boycotts. This act also
established the National Labor Relations Board to oversee labor-management relations and to oversee the union certification process. Under
the certification process, if a union receives more than half the votes cast in a secret ballot election, the NLRB recognizes the union as the
exclusive bargaining agent for the workers. Once a union is certified, the employer is required to bargain in good faith on wages, working
conditions, and other terms of employment. This act gave a significant boost to the union movement.
The Fair Labor Standards Act of 1938 established the first minimum wage (25 cents an hour) and established the maximum basic hours for
workers engaged in interstate commerce.
The Labor-Management Relations Act of 1947 (popularly known as the Taft-Hartley Act) prohibited closed shop arrangements (where
employees had to belong to the union before they could be hired). It also allowed states to pass right-to-work laws banning the union shop (in
which employees were required to join the union after they were hired in order to keep their jobs). Taft-Hartley also included provisions for
handling strikes that threatened the nation's health and safety, and made featherbedding and secondary boycotts illegal. This act gave more
power to management.
The Labor-Management Reporting and Disclosure Act of 1959 (also known as the Landrum-Griffin Act) guaranteed the rights of
individual union members to participate in union meetings, nominate candidates for union office, and vote in union elections. This law also
gave union members the right to examine union records and accounts and required unions to make annual financial reports to the U.S.
Department of Labor. The major goals of this act were to clean up union corruption and make unions more responsive to their members.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #337
Topic: Figure 12.1
338. (p. 323 Explain the difference between closed, open, union, and agency shop agreements. What impact did the Taft-Hartley Act have on
the use of closed and union shop arrangements?
324)
Under a union shop agreement, the firm can hire anyone it wishes to hire, but workers must join the union within a specified period of time
(usually 30, 60 or 90 days) to keep their jobs. The Taft-Hartley Act recognized the legality of this arrangement, but allowed individual states
to ban union shops by passing right-to-work laws. (At the present time, 22 states have passed right-to-work laws.)
In open shop agreements, union membership is voluntary even if a union operates in the work place. Workers who choose not to join the
union do not have to pay union dues, yet share in the same benefits others workers receive. Needless to say, most unions oppose the open
shop agreement.
An agency shop agreement, like an open shop, allows workers to join a union or not join a union. In an agency shop, however, the workers
who do not join must pay a fee to the union. In many instances the union fee is equivalent to the dues paid by members.
A closed shop arrangement required workers to belong to the union before they could be hired. The Taft-Hartley Act outlawed this type of
arrangement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #338
Topic: Figure 12.4
339. (p. 325
327)
Identify and describe the major tactics used by unions and management when collective bargaining efforts break down.
The primary tactics used by labor are strikes and boycotts. In addition, union members also will sometimes engage in picketing a place of
work where a labor management dispute exists.
Strikes: Historically, the strike has been the most powerful weapon of organized labor. In a strike workers refuse to go to work and attempt to
stop the operations of the company with which they have a dispute. Strikes also focus public opinion on the labor dispute. Strikes tend to be
very costly to both labor and management, and often result in hard feelings long after the labor dispute has been resolved. Thus both
management and unions attempt to avoid strikes whenever possible and only a small percentage of labor disputes actually result in strikes.
However, since the successful strike against UPS in 1997, unions have been more willing to strike than they were in the 1980s and early
1990s.
Boycotts: Boycotts can be either primary or secondary. In a primary boycott, labor encourages its membership, as well as the general public,
not to buy the products of a firm involved in a labor dispute. Secondary boycotts attempt to convince other organizations that do business with
a firm that is the subject of a primary boycott to stop their support. Primary boycotts are legal, but the Taft-Hartley Act prohibits secondary
boycotts.
Although strikes and boycotts are the major weapons used by unions, some students may also note that unions may also use picketing. This
refers to having workers walk around the outside of the organization where a dispute exists, carrying signs and talking to the public about
their issues and concerns. The idea is to call attention to the union's position and gain public support. Picketing often is done in conjunction
with a strike, but may also be a tactic used as an informational tool even before a strike occurs.
The most important tactics of management are lockouts, injunctions, and hiring strikebreakers:
Lockouts: Management can try to put pressure on workers by temporarily closing the business, thus denying workers employment. Lockouts
are not used very often in labor disputes today.
Injunctions: An injunction is a court order directing someone to do something or refrain from doing something. Management commonly uses
this tactic to get striking workers back to work, to limit picketing in front of a place of business, or to prevent other union practices that could
be considered detrimental to the public welfare. The Norris-LaGuardia Act states that a court can only issue such an injunction if the company
can show "just cause," such as the possibility of violence or the destruction of property.
Strikebreakers: When workers go out on strike, firms can hire replacement workers who are referred to as strikebreakers (or "scabs" by the
striking workers). This tactic is used more frequently today than in the past. President Reagan used strikebreakers during the air traffic
controllers' strike in 1981.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #339
Topic: Resolving Labor-Management Disagreements
340. (p. 332
339)
Identify and discuss three controversial employee-management issues.
The text covers a large number of controversial issues. Any three of the following issues would be acceptable:
Executive compensation - how much is too much? The average CEO of a major U.S. corporation makes 160 times the pay of a typical
American factory worker, and CEO compensation often rises even when the company performs poorly.
Pay equity - The Equal Pay Act of 1963 requires companies to give equal pay to men and women who do the same job, yet in the U.S.
today, women earn approximately 80 percent of what men earn, though the disparity varies considerably by profession. As women continue
to comprise a large percentage of the labor force, pay equity promises to be a challenging issue.
Sexual harassment--what constitutes sexually harassing behavior? How can firms discourage such behavior? The number of sexual
harassment complaints has increased significantly during the 1990s, but appears to have leveled off in recent years. Sexual harassment is still
the largest category of complaints filed with the EEOC.
Child-care costs continue to rise as single parent and two-income households continue to grow. Employers are concerned because absences
related to child care already cost American businesses billions of dollars annually, and employee child care is controversial around the
question of who should pay for child care services. Some workers argue that single workers and single-income families should not subsidize
child-care for dual-income families.
Elder care is rapidly becoming more important than the child-care issue as the workforce ages. Very few firms do much to help employees
faced with the need to care for an aging relative. However, the costs of elder care to firms are already significant and are likely to skyrocket as
the workforce ages. Reductions in Medicare and Medicaid place greater burdens on family caregivers. Proactive firms will seek to come up
with creative ways to deal with this problem.
The problems and dangers associated with drug and alcohol use have led many companies to test workers and job applicants for substance
abuse.
Workplace violence is a growing trend. OSHA reports that workplace homicides account for 16 percent of all workplace deaths. While
some companies believe that reports of workplace violence are overblown by the media, others are being proactive and holding focus groups
to invite employee input, hiring managers with strong interpersonal skills, and employing skilled consultants to deal with any growing
potential of workplace violence.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #340
Topic: Controversial Employee-Management Issues
341. (p. 329
331)
Union membership has declined in recent years. What has led to this decline and what can unions do to turn this trend around?
The decline in union membership has resulted from a number of trends over the past several decades. The manufacturing sector, where unions
were strongest in the past, is no longer the dominant sector of the economy. Today the U.S. economy is much more service oriented. The
workforce is becoming increasingly diverse. Management styles are different, labor laws have changed, and global competition is tougher. All
of these changes have caused many critics to state that traditional unions are no longer in touch with current needs and issues. For example,
some critics maintain that improved legal protection and more democratic management styles have eliminated the harsh treatment and abuse
that unions have cited in the past to justify their role.
In order to grow and remain viable, unions must recognize and adapt to changes in the economic, legal, and social environment in which they
operate. They will need to adapt to a workforce that is becoming increasingly culturally diverse, white-collar, female, and foreign-born.
Another key to long-term union success is to recognize that it is vital for U.S. firms to remain competitive with foreign firms. Unions have
already begun to work with management to find ways to train workers, redesign jobs, and adapt to the increasingly diverse workforce to
improve U.S. competitiveness in key industries.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #341
Topic: The Future of Unions and Labor-Management Relations
Mini-Case
The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly
by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since
the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for
cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who
shared his views. Together, the new management team made a series of moves that did not sit well with Endrun's workers. First, they
announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut
corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it
was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the
wages of all production line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the
company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management
team. A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to
reduce costs, increase productivity, and improve the company's profits."
Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at
the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the
company decides to downsize. Ima and Boyd are not intimidated by these management threats. "I wish we didn't have to do this," Ima
recently told many of her fellow workers at the plant. "But someone has to stop Ty Runt and his team from ruining our jobs."
Nickels - Chapter 12
342. (p. 320) Ima, Boyd, and their fellow employees at Endrun work on an assembly line and do not have a specialized skill. If they are
successful in their quest to set-up a union, they would probably be represented by a(n) ________ union.
A.
B.
C.
D.
craft
industrial
freelance
traditional
An industrial union consists of unskilled and semiskilled workers in mass-production industries such as automobile manufacturing and
mining.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-1
Level of Learning 3: Application of principles
Nickels - Chapter 12 #342
Topic: The Early History of Organized Labor
343. (p. 321) The steps Ima, Boyd and their fellow workers must take to get the union legally recognized as the authorized bargaining agent are
parts of the __________ process.
A.
B.
C.
D.
accreditation
arbitration
certification
collective bargaining
The process by which a union is recognized by the NLRB as the authorized bargaining agent for a group of workers is known as certification.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #343
Topic: Labor Legislation and Collective Bargaining
344. (p. 325) After gaining union representation, any workers with complaints regarding promotions, layoffs, and job assignments will file a(n)
________ with their shop steward.
A.
B.
C.
D.
grievance
arbitration request
injunction
yellow-dog contract
A grievance is a charge by employees that management is not abiding by or fulfilling the terms of the negotiated labor-management
agreement.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #344
Topic: Resolving Labor-Management Disagreements
345. (p. 324) The plant where Ima and Boyd work is located in Illinois, which does not have a right-to-work law. If the workers approve the
union as their bargaining agent, Boyd wants to get the greatest union membership that is legally possible. Boyd is likely to push for
a(n):
A. closed shop.
B. agency shop.
C. union shop.
D. sweatshop.
Although a closed shop used to be the strongest type of union security, the Taft-Hartley Act declared this type of arrangement illegal in 1947.
The strongest union security arrangement that is permitted under the Taft-Hartley Act is a union shop. In a union shop, workers do not have to
belong to a union before they are hired, but they do have to join the union within a specified time to keep their jobs. Union shops are legal in
all states except those that have passed right-to-work laws.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-3
Level of Learning 3: Application of principles
Nickels - Chapter 12 #345
Topic: Figure 12.4
346. (p. 328) Ty Runt has always taken a hard line against unionization efforts. Two years ago, when workers at his previous company tried to
obtain union representation, the company closed down the plant and refused to let employees work until they abandoned their
efforts to form a union. This management tactic is called a(n):
A.
B.
C.
D.
management strike.
secondary boycott.
injunction.
lockout.
The lockout is a management tactic designed to put pressure on workers by temporarily closing the business.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-4
Level of Learning 3: Application of principles
Nickels - Chapter 12 #346
Topic: Management Tactics
347. (p. 321) If management tries to threaten or punish Ima and Boyd for their efforts to gain union representation, the two workers could ask
the ____________ to investigate these unfair labor practices.
A.
B.
C.
D.
National Labor Relations Board
Bureau of Labor-Management Relations
Department of Justice
Federal Trade Commission
The National Labor Relations Board was established by the Wagner Act to oversee labor-management relations and the union certification
(and decertification) process. The NLRB is empowered to investigate allegations of unfair treatment of workers who participate in union
activities.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-2
Level of Learning 3: Application of principles
Nickels - Chapter 12 #347
Topic: Labor Relations and Collective Bargaining
348. (p. 332) If management's efforts did not disrupt everyone's work life enough the company board of directors just awarded management with
increased pay while cutting the workers pay. Which of the following issues promises to be a controversial labor-management
issue?
A.
B.
C.
D.
Executive compensation
Golden parachutes
Equal employment pay requirements
Comparable worthcare
The Board of Directors approved a sizeable raise for Ty Runt and his executive team, while employees were forced to take a pay cut. As
noted the Legal Briefcase, during the past several years, executive compensation has increased even though company performance in many
situations has gone down.
AACSB: Reflective Thinking
Blooms: Application
Learning Goal: 12-5
Level of Learning 3: Application of principles
Nickels - Chapter 12 #348
Topic: Legal Briefcase box
12 Summary
Category
# of Questions
AACSB: Ethics
AACSB: Reflective Thinking
Blooms: Analysis
Blooms: Application
Blooms: Comprehension
Blooms: Knowledge
Learning Goal: 12-1
Learning Goal: 12-2
Learning Goal: 12-3
Learning Goal: 12-4
Learning Goal: 12-5
Level of Learning 1: Knowledge of key terms
Level of Learning 2: Understanding of concepts and principles
Level of Learning 3: Application of principles
Nickels - Chapter 12
Topic: CEO Compensation
Topic: Child Care
Topic: Controversial Employee-Management Issues
Topic: Drug Testing
Topic: Elder Care
Topic: Employee-Management Issues
Topic: Executive Compensation
Topic: Figure 12.1
Topic: Figure 12.1: Labor Legislation and Collective Bargaining
Topic: Figure 12.1: Major Legislation Affecting Labor-Management Relations
Topic: Figure 12.4
Topic: Figure 12.4: Different Forms of Union Agreements
Topic: Figure 12.4: Forms of Union Agreements
Topic: Figure 12.6: The grievance resolution process
Topic: Labor Legislation and Collective Bargaining
Topic: Labor Relations and Collective Bargaining
Topic: Labor Unions from Different Perspectives
Topic: Labor, Legislation and Collective Bargaining
Topic: Legal Briefcase box
Topic: Major Legislation Effecting Labor-Management Relations; Figure 12.1
Topic: Making Ethical Decisions box
Topic: Management Tactics
Topic: Mediation and Arbitration
Topic: Objectives of Organized Labor
Topic: Pay Equity
Topic: Reaching Beyond Our Borders box
Topic: Resolving Labor-Management Disagreements
Topic: Sexual Harassment
Topic: Spotlight on Small Business box
Topic: The Early History of Organized Labor
Topic: The Future of Unions and Labor-Management Relations
Topic: The History of Organized Labor
Topic: Union Tactics
Topic: Violence in the Workplace
1
347
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54
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61
56
75
70
86
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54
76
349
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7
1
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12
7
9
1
1
22
2
11
4
2
23
1
8
8
7
1
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21
18
26
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3
9
15
3
27
18
18
26
8