Chapter 12

1. Chapter 12 Dealing With Employee-Management Issues and Relationships CPS questions

2. 1. As suggested by business observers, _______ is a reason for labor’s decline. • shifts from service to manufacturing industries • decline in part-time work • labor’s success in seeing issues it championed become law • increased local competition

3. 2. Which of the following was AFL primarily concerned with? • Fundamental labor issues • Gaining political power • Forming a workers' army to lead a socialist revolution • Promoting a better public education system

4. 3. Which is a major reason John L. Lewis and his followers broke with the AFL and formed the CIO? • The leaders of the AFL wanted to focus on political objectives while Lewis and his followers wanted to focus on economic objectives. • Lewis felt that the AFL was growing too fast. • The leaders of the AFL wanted to organize only skilled workers, while Lewis and his followers wanted to organize both unskilled and skilled workers. • 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.

5. 4. The most accurate assessment of the historical role of the AFL in the labor movement is that in its early years it: • 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.

6. 5. Which of the following is the process by which a group of workers take away a union's right to represent them? • Disqualification • Decertification • Impeachment • Disenfranchisement

7. 6. Which of the following best describes the Labor-Management Relations Act (or Taft-Hartley Act)? • It gave unions much more power and led to a rapid rise in union membership. • It gave employees the right to serve on the board of directors of their company, thus encouraging a more equitable treatment of workers. • It eliminated the need for unions in many industries by providing workers with widespread rights and protection against unfair labor practices by employers. • It placed limitations on union activities and gave more power to management in dealing with unions.

8. 7. Union leaders at the Freeair Corporation are furious. Although the union is 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. It appears that Freeair’s management team is violating provisions of the: • Taft-Harley Act. • Norris LaGuardia Act. • Wagner Act. • Landrum-Griffin Act.

9. 8. What is the primary purpose of collective bargaining? • To ensure worker participation in setting the goals and objectives of the company. • To establish and communicate clear guidelines for performance appraisals. • To limit the authority of management to set job categories and direct worker activities. • To negotiate a labor-management agreement that both the union and management are willing to accept.

10. 9. During the 1980s, unions became increasingly concerned with the _______issues. • pay and fringe benefits • stock option plans and profit sharing • job security and union recognition • worker training and education

11. 10. Which of the following was the AFL-CIO a major part of during the NAFTA agreement passed by Congress in 1994? • Contributor to the design • Financial backer • Advocate • Opponent

12. 11. What is the key difference between an agency shop and an open shop? In an agency shop: • 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. • 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. • 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. • 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.

13. 12. In the late 1930s management at Gumption Industries agreed to hire only those workers who were already members of the Steelworkers Union. What type of arrangement had Gumption agreed to? • Closed shop • Open shop • Union shop • Restricted shop

14. 13. Which of the following occurs when a union encourages its members and the general public not to buy the products of a firm involved in a labor dispute? • Injunction • Wildcat strike • Primary boycott • Embargo

15. 14. The ability of unions to achieve key goals in the future will depend on which of these? • 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

16. 15. The extent to which unions currently rely on strikes as a tactic when collective bargaining breaks down is best summarized by which of these? • Unions have become increasingly reliant on strikes as other, less confrontational, tactics have proven unsuccessful • 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 • Unions have almost completely avoided strikes since President Reagan replaced striking air traffic controllers with strikebreakers in 1981 • Strikes organized by unions are now less common than lockouts by management, indicating a major shift in attitudes between labor and management

17. 16. 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. What is the AFL-CIO is calling for? • General boycott • Secondary boycott • Primary boycott • Public boycott

18. 17. Which is true according to management consultant Peter Drucker? • Top executives are entitled to any level of pay they can negotiate with their board of directors. • 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. • All bonuses paid to CEOs should be tied to long-run increases in market share. • CEOs should not earn much more than 20 times the earnings of the company’s lowest-paid employee.

19. 18. Which of the following 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? • Quid pro quo • Post hoc • Ceteris paribus • Reflexive

20. 19. Which of the following is one of the major criticisms of executive compensation in the United States? • 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.

21. 20. Which of these can be described as the most accurate statement about the costs of elder care? • It should be much less expensive for firms to provide elder care than for them to provide child care • 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 • 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 • 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

22. 1. Answer: C LG: 1 Page: 322 2. Answer: A LG: 1 Page: 324 3. Answer: C LG: 1 Page: 324 4. Answer: C LG: 1 Page: 324 5. Answer: B LG: 2 Page: 325 – 326; figure 12.2 6. Answer: D LG: 2 Page: 325; figure 12.1 7. Answer: C LG: 2 Page: 325 8. Answer: D LG: 2 Page: 325 9. Answer: C LG: 3 Page: 326 10. Answer: D LG: 3 Page: 327 11. Answer: C LG: 3 Page: 328 – 329 12. Answer: A LG: 3 Page: 328 13. Answer: C LG: 4 Page: 332 14. Answer: B LG: 4 Page: 335 15. Answer: B LG: 4 Page: 332 16. Answer: C LG: 4 Page: 332 17. Answer: D LG: 5 Page: 337 18. Answer: A LG: 5 Page: 339 19. Answer: B LG: 5 Page: 337 20. Answer: D LG: 5 Page: 342