Question 1

According to the critical industrial relations school, the most successful labor unions are those that take a very pragmatic, business-like approach to bargaining for better wages, hours and working conditions.

Accepted Answer

According to the critical industrial relations school, the most successful labor unions are those that adopt a more adversarial approach to bargaining, emphasizing the inherent conflict between labor and management and employing tactics such as strikes and other forms of direct action to achieve their goals.

Question 2

The key belief that distinguishes the mainstream economics school from the institutional labor economics school (or industrial relations school) is the notion that labor markets can live up to the ideal of perfect competition.

Accepted Answer

The mainstream economics school believes that labor markets can live up to the ideal of perfect competition, while the institutional labor economics school (or industrial relations school) sees labor markets as imperfect, and influenced by institutional factors, such as unions, minimum wage laws, and other labor regulations.

Question 3

According to the industrial relations school of thought, there is an inherent conflict of interest between employers and employees and that conflict is over how to split profit between them.

Accepted Answer

The industrial relations school of thought posits that employers and employees have conflicting interests, particularly over how to divide profits.

Question 4

During the recent recession, many companies have instituted wage freezes, dropped health care coverage, and increased hours of work to maintain profitability. According to the industrial relations school, the competitive forces of the economy, and employees' rights to quit and find another job, provide a sufficient "check and balance" system to ensure that other employers do not take advantage of the poor economy simply as a way to decrease the share of profits that are paid to labor.

Accepted Answer

The industrial relations school argues that the power imbalance between employers and employees means that the competitive forces of the economy and the right to quit are not sufficient to prevent exploitation. They believe in the need for collective bargaining, labor laws, and other forms of intervention to protect workers' rights and interests.

Question 5

In 1904, the Nernst Lamp Co., located in Pittsburgh, PA, established a committee of employees who were assigned the task of representing other employees' concerns to management. This type of committee is an example of what is meant by the term "labor union".

Accepted Answer

The committee described in the statement is an example of a "employee representation committee" or "works council", not a labor union. Labor unions typically have the goal of negotiating collective bargaining agreements on behalf of workers and advocating for workplace rights, while employee representation committees are focused on facilitating communication and resolving workplace issues at the local level.

Question 6

According to the critical industrial relations school, conflict between employers and employees is primarily a conflict over how to distribute the profits generated by business.

Accepted Answer

The answer of According to the critical industrial relations school,...

Question 7

According to the industrial relations school, market imperfections create a significant imbalance of power to the point that employers can exercise a vast degree of control and influence over their employees.

Accepted Answer

The industrial relations school believes that market imperfections such as unequal bargaining power, information asymmetry, and externalities create a significant power imbalance between employers and employees, which allows employers to exercise a vast degree of control and influence over their employees.

Question 8

The term "socialist" has been used widely in the mainstream press lately. Socialism describes a movement that would encourage and utilize revolution as a way to replace capitalism with worker control.

Accepted Answer

Socialism is a broad political and economic ideology that advocates for social ownership of the means of production and can encompass a range of methods to achieve this goal, not exclusively through revolution. Some socialist movements seek reform through democratic processes rather than revolution.

Question 9

The key distinguishing feature separating an employee representation committee from a labor union is the fact that labor unions are elected and run completely independent of the employer and its management team.

Accepted Answer

An employee representation committee is typically organized and supported by the employer, while a labor union is entirely independent and autonomous from the employer's management team. Labor unions are also elected by their members, rather than appointed or chosen by management.

Question 10

The notion that management and labor have common goals and that there is no inherent conflict of interest between them is consistent with a unitarist view of the employment relationship.

Accepted Answer

According to unitarism, management and labor have a shared interest in the success and profitability of the organization. Therefore, there is no inherent conflict of interest between them, and they should work together towards common goals.

Question 11

From the perspective of the critical industrial relations school of thought, U.S. unions offer a model that should be imitated by other unions because it holds long term potential for eliminating class divisions.

Accepted Answer

The critical industrial relations school of thought holds that U.S. unions, like other unions, are insufficient in addressing the fundamental issues of capitalism and class inequality. Therefore, they do not advocate for the imitation of U.S. unions as a model for other unions.

Question 12

According to the critical industrial relations school, the cause of the labor problem is that the capitalistic class has control over both society's institutions and the means of production.

Accepted Answer

According to the critical industrial relations school, the labor problem arises from the fact that the capitalist class has the power to control society's institutions and production facilities, resulting in an unequal distribution of power and resources between labor and capital.

Question 13

If you believe that labor cannot be treated like other commodities but that there is no inherent conflict of interest between capital owners and laborers, your beliefs are most consistent with the human resources school of thought.

Accepted Answer

The human resources school of thought recognizes that employees are not interchangeable commodities but valuable assets to a company. However, they do not believe that there is an inherent conflict between capital owners and laborers, and instead focus on ways to align the interests of both parties for mutual benefit.

Question 14

The term "workplace rules" is meant to include rules of behavior and performance as well as rules governing compensation and benefits within a particular workplace.

Accepted Answer

The statement correctly describes the scope of workplace rules.

Question 15

The underlying theme of the critical industrial relations school of thought is that the class that holds the greatest power in society can dictate the rules and control institutions in ways that serve their own interests, hence keeping others from improving their lot in life.

Accepted Answer

This is the central idea of the critical industrial relations school of thought, which emphasizes the role of power dynamics and social inequality in shaping employment relations and broader societal structures. Adherents of this perspective argue that employers and other dominant actors in the economy use their power to shape the rules of the game in ways that benefit themselves, often at the expense of workers and other marginalized groups. This can include strategies like union-busting, outsourcing, and wage suppression, as well as more subtle forms of control and manipulation. The critical industrial relations perspective seeks to expose these dynamics and promote more equitable forms of economic organization and governance.

Question 16

The pluralist view of conflict in the workplace says that there are no shared interests between employers and employees in the employment relationship.

Accepted Answer

The pluralist view of conflict in the workplace acknowledges that there may be different interests and perspectives between employers and employees in the employment relationship, but it also recognizes the potential for negotiation, compromise, and collaboration to address these differences and reach mutually beneficial outcomes.

Question 17

The declining unionization rates and increasing income inequality in the U.S. closely exemplifies predictions of the critical industrial relations school of thought.

Accepted Answer

The critical industrial relations school of thought suggests that declining unionization rates could lead to increasing income inequality, which is a trend observed in the U.S. Therefore, the statement is true.

Question 18

The mainstream economics perspective is the only school of thought that believes that labor and management truly have equal bargaining power in the labor market.

Accepted Answer

Mainstream economics posits that labor and management have equal bargaining power in the labor market based on the theoretical assumptions of perfect competition and rational expectations. However, other schools of economic thought, such as critical economics and institutional economics, argue that power imbalances exist in the labor market due to factors such as unequal access to information, bargaining skills, and resources.

Question 19

Workplace governance refers to the method of ruling a particular workplace.

Accepted Answer

Workplace governance refers to the policies, rules, and procedures that guide and regulate the conduct of employees in a workplace.

Question 20

Proponents of the industrial relations school of thought, are concerned with finding ways to increase workers' bargaining power through collective bargaining.

Accepted Answer

This statement accurately reflects the goals and perspectives of the industrial relations school of thought.

Quiz 2: Labor Unions: Good or Bad