Question 1

A ________ helps the two sides in a labour dispute clarify the issues that are separating them, while a ________ advises the disputing parties about specific steps they might take to reach a settlement.
A) arbitrator; mediator
B) mediator; arbitrator
C) conciliator; mediator
D) mediator; conciliator
E) counselor; arbitrator

Accepted Answer

The answer of A ________ helps the two sides in...

Question 2

In which of the following dispute resolution alternatives does the neutral third party dictate a settlement between the two sides, which have agreed to submit to outside judgment?
A) Arbitration
B) Strike
C) Lockout
D) Boycott
E) Mediation

Accepted Answer

Arbitration involves a neutral third party who listens to both sides of a dispute and makes a decision that is binding on both parties.

Question 3

Florabunda, a national wholesale plant supply company that caters to home gardeners, maintains greenhouses in several locations. These provide flower and vegetable seedlings for nurseries and garden centres nationwide and also pots of flowering plants, such as tulips and poinsettias, for other holidays. Relations with employees seemed smooth for some years, but over time the firm has come to rely on short-term contingent labour, especially in the spring when Florabunda fulfills large standing orders for bedding plants. At one of its largest greenhouse locations, employees invite the United Food and Commercial Workers (UFCW) to represent them as a union. The Florabunda greenhouse engages in collective bargaining with the UFCW. A key issue involves workplace safety, as the greenhouses are often fumigated with pesticides to kill insects. Management claims that it takes customary and effective precautions to protect the health of its workers, whereas the union expresses concerns that the pesticides might cause long-term health problems. While bargaining over the workplace safety issue, which of the following strategies would be most beneficial in keeping the process moving ahead in good faith?
A) Be aware that each side needs to show that it has obtained important concessions
B) Be as flexible as possible with the objectives behind each bargaining move
C) Warn that if the conflict is not resolved, each side is prepared to stage a strike or lockout
D) Begin by making extravagant demands, which the other side is not expected to accept
E) Try to come to agreement on points of conflict as quickly as possible

Accepted Answer

Being aware that each side needs to show that it has obtained important concessions is crucial in collective bargaining. It helps both parties feel that they are gaining something from the negotiation, which can facilitate a more cooperative and productive bargaining process.

Question 4

Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would most strongly support the Domino Grace CEO's argument?
A) The current proposal calls for all Kryptos employees with outstanding benefit packages to keep them in the merged company.
B) Shareholders of Domino Grace tend to support the merger.
C) According to the charters of both companies, any savings from reducing benefits would be recorded in a post-merger report.
D) A recent economic downturn has reduced the ability of many in the financial services industry to find new jobs.
E) Kryptos provides paths to advancement that are faster than those offered by most companies in the industry.

Accepted Answer

The answer of Domino Grace is a financial services firm....

Question 5

Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would strengthen the Kryptos CEO's argument?
A) Mergers are more common in the financial services industry than in many other industries.
B) Mergers are easier to execute when the merged organizations have similar corporate cultures.
C) At Kryptos, accounting, operations, and human resources are among the departments that already have the capacity to serve a much larger organization.
D) Overcoming resistance to change by using threats and other forms of coercion is usually considered only after all other options have been considered.
E) Kryptos offers employees the opportunity to serve for a year or more in overseas offices.

Accepted Answer

Option C strengthens the Kryptos CEO's argument because it suggests that Kryptos already has the capacity to serve a larger organization in some departments. This implies that the merger may not require additional expenses in those areas and may therefore be more feasible for Kryptos. This would make it more likely that Kryptos would enforce changes that would allow for a successful merger, which would be in the best interest of the company. The other options either do not support the Kryptos CEO or are irrelevant to the argument presented.

Question 6

Crescendo Inc. distributes musical and band instruments nationwide. Reductions in high school musical programs and the economic recession have led to a sharp downturn in sales. Because of this, a salary freeze has been in effect for three years and increases in supplementary health care premiums have cut into workers' take-home pay. Nevertheless, the firm has avoided layoffs, the workforce has experienced minimal turnover, and the firm has lost only a handful of employees, mostly for health reasons. The CEO considers this continuity of the workforce a healthy sign, but the human resources director is less sanguine. She feels that the workplace culture is becoming inbred and too focused on maintaining job security rather than looking for ways to be truly engaged in the company's goals. Which of the following, if true, would most support the CEO's position that the firm is basically healthy?
A) Sales have declined proportionally less than those of Crescendo's competitors.
B) Supervisors report few complaints coming from their subordinates.
C) With the economy improving, the firm is beginning to turn a profit.
D) It has been easy to replace the positions that have come open.
E) The company has always rewarded its top performers in each division.

Accepted Answer

The fact that sales have declined proportionally less than competitors suggests that Crescendo Inc. is performing relatively better in a challenging market. This indicates that the company is resilient and has a strong foothold in the industry despite the downturn.

Question 7

In a(n) ________, both parties are legally required to accept the judgment of a neutral third party.
A) collective bargaining
B) adjudication
C) voluntary arbitration
D) compulsory arbitration
E) mediation

Accepted Answer

Compulsory arbitration is a process in which both parties are legally required to accept the decision of a neutral third party. In contrast, in voluntary arbitration, both parties agree to submit their dispute to a neutral third party, but they are not legally bound to accept the decision. Adjudication refers to a legal process in which a judge or other legal authority makes a decision on a dispute. Collective bargaining is a process in which representatives of a union and an employer negotiate a collective agreement on behalf of their respective members. Mediation is a process in which a neutral third party facilitates communication and negotiation between two parties in an attempt to reach a mutually acceptable resolution to a dispute.

Question 8

After several years of sound but unimpressive performance, Foothill Federal was bought out by Cashcorp, a much larger financial organization. Hoping to turn the new network into a stronger asset to the corporation, Cashcorp's managers begin by examining Foothill's existing performance appraisal process. Cashcorp managers quickly determine that employee evaluations have been handled very superficially in the past, typically by division managers at the central location. As a result, seniority, rather than productivity, has been the primary rationale for promotions and rewards. The HR manager assigned to integrating Foothill into the Cashcorp family immediately sees that changes will need to be made in the performance appraisal process. However, he does not want to move too rashly, as the merger has already made the Foothill workforce worried that extensive terminations and layoffs are imminent. Which of the following, if true, would most strongly support changing who is responsible for performance appraisals at Foothill?
A) The supervisors carrying out appraisals were all assigned to Foothill's central location, even though most of the employees they evaluated were at branches.
B) The web-based performance appraisal software already used by Cashcorp allows employees to do self-evaluations.
C) Cashcorp has a more detailed and clearer set of corporate objectives than Foothill used in appraisals.
D) Industry-wide research shows that peer appraisal has a more direct impact on employees than supervisor appraisal.
E) A regional news report claimed that Cashcorp was prepared to trim the Foothill workforce by up to 30 percent.

Accepted Answer

Option A suggests that the supervisors responsible for performance appraisals were not located where the employees they evaluated were working. It implies that the evaluation was done without observing the employees' day-to-day work, which could have resulted in biased evaluations. As a result, changing the appraisal process by introducing new evaluators could result in fairer and more accurate assessments of employee performance.

Question 9

After several years of sound but unimpressive performance, Foothill Federal was bought out by Cashcorp, a much larger financial organization. Hoping to turn the new network into a stronger asset to the corporation, Cashcorp's managers begin by examining Foothill's existing performance appraisal process. Cashcorp managers quickly determine that employee evaluations have been handled very superficially in the past, typically by division managers at the central location. As a result, seniority, rather than productivity, has been the primary rationale for promotions and rewards. The HR manager assigned to integrating Foothill into the Cashcorp family immediately sees that changes will need to be made in the performance appraisal process. However, he does not want to move too rashly, as the merger has already made the Foothill workforce worried that extensive terminations and layoffs are imminent. Which of the following, if true, would most strongly support beginning a thorough performance appraisal of the Foothill locations by reassessing performance criteria?
A) Corporate practice has always been to reassess performance criteria on an annual basis.
B) The performance goals used by Foothill are quite different from those used by Cashcorp.
C) The Cashcorp CEO would like to see the new Foothill locations increase their assets by at least 15 percent.
D) The two best performers among the Foothill branches are the most recently opened, and its employees have the fewest years of service with the firm.
E) Employees at Foothill have been with the firm an average of 12 years.

Accepted Answer

The fact that the two best performing branches are the most recently opened and have the fewest years of service with the firm indicates that seniority is not a reliable indicator of productivity. This supports the need for a reassessment of performance criteria in order to ensure that rewards and promotions are based on actual performance rather than years of service. The other options either do not provide a strong rationale for reassessing performance criteria or are not directly related to the issue of performance appraisal.

Question 10

Which of the following statements about mediation is correct?
A) The mediator's decision is legally binding.
B) The mediator has the task of preventing outsiders from making the conflict worse.
C) The mediator is appointed by management.
D) The mediator is a neutral third party whose task is to suggest a compromise that will get the negotiations moving ahead.
E) All of these are correct.

Accepted Answer

Mediation is a process in which a neutral third party, known as the mediator, helps the conflicting parties to negotiate a settlement. The mediator is not appointed by either of the parties but chosen mutually. The mediator's role is to suggest a compromise that is acceptable to all parties and helps them to move forward with the negotiations. The mediator's decision is not legally binding, and their task is not to prevent outsiders from making the conflict worse. Therefore, option D is the correct choice.

Question 11

The human resources department of a large organization is interested in measuring the personality traits of its potential employees. The job applicants have been assured that they should feel free to answer honestly and that all responses will be anonymous. The applicants are likely to give inflated estimates of all of the following except
A) emotional stability, including the person's ability to withstand stress.
B) conscientiousness, a measure of reliability.
C) agreeableness, a measure of the ability to cooperate.
D) risk taking, a measure of eagerness to take chances.
E) self-monitoring, a measure of the ability to alter one's behaviour based on external factors.

Accepted Answer

Job applicants are likely to give deflated estimates of risk-taking, as they may fear that admitting to being too eager to take chances could harm their chances of being hired.

Question 12

Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would undermine the Kryptos CEO's argument?
A) A few years ago, Kryptos merged with another company.
B) Concern over a possible reduction of benefits is only one of many reasons why Domino Grace employees might object to the merger.
C) Attempting to overcome change through hiding the truth about the effects of the change can undermine management's credibility.
D) Customers have strong connections to their Domino Grace brokers but little loyalty to Domino Grace as a company.
E) Employees at Domino Grace who have counterparts performing similar work at Kryptos tend to be paid more than their Kryptos counterparts.

Accepted Answer

The answer of Domino Grace is a financial services firm....

Question 13

Dexterity Business School provides short-term training workshops to a variety of corporations, out of a chain of small centres across the country. The instructors leading the workshops are hired on a contingent basis, and paid a set lump sum for each program. A supervisor at each location is responsible for recruiting instructors and providing them with Dexterity's prepared teaching materials. At the Canal City location, Andy Ashe has been leading these workshops for several years, and has been asked back several times by local businesses who find his workshops especially popular because of his verbal skills and keen sense of humor. The supervisor, Charlotte Monahan, has found that while her location contracts with several other instructors, businesses often ask for Ashe by name, even agreeing to postpone their contracted sessions until he is available. Dexterity's policies state that all contingent instructors are paid the same rate per workshop. Nevertheless, Ashe is aware of his popularity, and requests that Monahan start giving him a higher rate for his workshops. Which of the following, if true, would most strengthen Ashe's case?
A) Ashe has led more different training workshops than any other contingent worker.
B) Losing Ashe as an employee would mean that companies who prefer his workshops would consider no longer contracting with Dexterity.
C) Ashe has worked for Dexterity for fifteen years, longer than any other contract employee.
D) A local teacher in the high school, Ashe has repeatedly received awards for his classroom performance.
E) The businesses that contract with Dexterity consider the workshops essential to their operation.

Accepted Answer

This statement directly addresses the financial impact of losing Ashe, showing that his popularity is not just a matter of preference but a significant factor in Dexterity's revenue.

Question 14

Dexterity Business School provides short-term training workshops to a variety of corporations, out of a chain of small centres across the country. The instructors leading the workshops are hired on a contingent basis, and paid a set lump sum for each program. A supervisor at each location is responsible for recruiting instructors and providing them with Dexterity's prepared teaching materials. At the Canal City location, Andy Ashe has been leading these workshops for several years, and has been asked back several times by local businesses who find his workshops especially popular because of his verbal skills and keen sense of humor. The supervisor, Charlotte Monahan, has found that while her location contracts with several other instructors, businesses often ask for Ashe by name, even agreeing to postpone their contracted sessions until he is available. Dexterity's policies state that all contingent instructors are paid the same rate per workshop. Nevertheless, Ashe is aware of his popularity, and requests that Monahan start giving him a higher rate for his workshops. Which of the following, if true, would most strengthen Dexterity's case in maintaining Ashe's current contract rate?
A) Monahan has never directly observed Ashe's performance in presenting a workshop.
B) As a contract worker, Ashe does not receive medical or retirement benefits.
C) Monahan has few applications from other qualified instructors in the area.
D) Dexterity uses a single-rate system for contingent workers.
E) There is no other agency in Canal City with whom Ashe could contract to provide similar workshops.

Accepted Answer

The answer of Dexterity Business School provides short-term training workshops...

Question 15

In a(n) ________, a third party suggests, but does not impose, a settlement to a labour dispute.
A) strike
B) lockout
C) boycott
D) mediation
E) arbitration

Accepted Answer

Mediation is a process in which a neutral third party facilitates communication between the parties involved in a dispute and suggests possible solutions, but does not have the power to impose a decision. This can be a helpful tool in resolving labour disputes as it allows the parties to come to a mutually beneficial agreement without the need for the more extreme measures of strikes, lockouts, or boycotts. Arbitration, on the other hand, involves a neutral third party making a binding decision on the dispute, which is not described as simply suggesting a settlement.

Question 16

The human resources department of a large organization is interested in measuring the personality traits of its potential employees. The job applicants have been assured that they should feel free to answer honestly and that all responses will be anonymous. All of the following point out reasons why the human resources department should be skeptical about the data collected except that
A) the applicants may not believe that the responses will truly be anonymous.
B) the applicants may not be able to accurately measure their own personality traits.
C) the applicants may deliberately exaggerate their positive characteristics.
D) the applicants' responses may not show any connection between personality and job performance.
E) the applicants' responses may reflect their mood only at the time of the test.

Accepted Answer

This option does not provide a reason why the data collected may be unreliable. In fact, it suggests that the data collected may not be relevant to the hiring decision, but not that it is unreliable. The other options suggest reasons why the data collected may be biased or inaccurate.

Question 17

John Roarke, a manager, makes the following statement: "To measure the effects of our educational programs designed to stop sexual harassment at our workplace, we recently conducted a survey asking employees about their attitudes and the behaviour of the people around them. The survey, conducted after the programs, showed no improvement in either attitudes or behaviour. Obviously, then, the survey was conducted improperly." Which of the following most closely resembles the flawed reasoning employed by Roarke?
A) This lawn chair must have been improperly designed. A large number of customers have complained that it rusts quickly and then falls apart.
B) The plan for the new office building must not have been well-reasoned, as it provides no backup plan in case of poor weather or other unforeseen events.
C) The inspection must have not have been competently done. After all, it failed to uncover any mould.
D) Every project that follows the ACME quality procedure is run efficiently, effectively, or both. Since the Prensabi project followed the procedure and was not effective, it must have been run efficiently.
E) The review of our ethical standards reveals serious breaches of professional standards. But this review must be wrong, because all of our employees are paid, and therefore each must be a professional.

Accepted Answer

Roarke assumes that the survey was conducted improperly because it did not show the expected results, similar to assuming an inspection was incompetent because it did not find any mould. Both involve dismissing the validity of a process based solely on an unexpected outcome.

Question 18

Crescendo Inc. distributes musical and band instruments nationwide. Reductions in high school musical programs and the economic recession have led to a sharp downturn in sales. Because of this, a salary freeze has been in effect for three years and increases in supplementary health care premiums have cut into workers' take-home pay. Nevertheless, the firm has avoided layoffs, the workforce has experienced minimal turnover, and the firm has lost only a handful of employees, mostly for health reasons. The CEO considers this continuity of the workforce a healthy sign, but the human resources director is less sanguine. She feels that the workplace culture is becoming inbred and too focused on maintaining job security rather than looking for ways to be truly engaged in the company's goals. Which of the following, if true, would support the HR director's position that the firm's workforce is at risk of becoming disengaged?
A) National polls show that less than a third of all employees are fully engaged in their work.
B) The firm's stated vision holds that each and every employee must be committed to the company's goals.
C) There are few job openings in Crescendo for which Crescendo employees can apply.
D) Crescendo offers only voluntary training programs to prepare workers for job advancement.
E) Appraisal reviews of employees are held only once a year.

Accepted Answer

The lack of job openings within Crescendo limits opportunities for employees to advance or change roles, which can lead to disengagement as employees may feel stuck in their current positions without prospects for growth or new challenges.

Question 19

Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would most weaken the Domino Grace CEO's argument?
A) Kryptos' stable finances offer outstanding long-term stability.
B) Both Domino Grace and Kryptos use a variety of tools to communicate their corporate cultures, such as stories, awards, and special employee-only events.
C) Kryptos' latest offer involves paying a higher price to Domino Grace shareholders if the combined company adopts Kryptos' benefits policy.
D) Domino Grace divisions are assigned based on the customers they serve, and not functional areas.
E) Kryptos has announced that it would follow Domino Grace's policies for attracting and retaining talent.

Accepted Answer

The CEO of Domino Grace believes that education and communication are the best way to overcome employee resistance to change. However, if Kryptos is offering a higher price to Domino Grace shareholders if the combined company adopts its benefits policy, this may undermine the argument that the benefits are the key factor in attracting and retaining top talent. This could lead to concerns among Domino Grace employees that the merger is motivated by financial considerations, rather than by a desire to create a stronger company.

Question 20

John Roarke, a manager, makes the following statement: "To measure the effects of our educational programs designed to stop sexual harassment at our workplace, we recently conducted a survey asking employees about their attitudes and the behaviour of the people around them. The survey, conducted after the programs, showed no improvement in either attitudes or behaviour. Obviously, then, the survey was conducted improperly." Which of the following is assumed by Roarke's argument?
A) Every employee would benefit from some training in stopping sexual harassment.
B) The attitudes and behaviour of the organization's employees were worse than those of most employees in the industry.
C) The educational programs were the most effective programs that could have been offered.
D) The effects of the educational programs in changing attitudes were greater than they were in changing behaviour.
E) The educational programs had a significant effect on either attitudes, behaviour, or both.

Accepted Answer

Roarke assumes that the educational programs had a significant effect on attitudes, behaviour, or both, and thus concludes that the survey must have been conducted improperly when it showed no improvement.

Quiz 8: Managing Human Resources and Labour Relations

A helps the two sides in a labour dispute clarify the issues that are separating them, while a advises the disputing parties about specific steps they might take to reach a settlement.

In which of the following dispute resolution alternatives does the neutral third party dictate a settlement between the two sides, which have agreed to submit to outside judgment?

In a(n) ________, both parties are legally required to accept the judgment of a neutral third party.

Which of the following statements about mediation is correct?

In a(n) ________, a third party suggests, but does not impose, a settlement to a labour dispute.