Chap 15 HR Compensation & Benefits
A firm may adopt a strategy to remain nonunion as part of which it may offer high wages to its employees so that wages do not become an issue that unions could use to organize the firm's employees. This is known as the _____.
spillover effect on wages
One of the issues concerning the impact of unions on the structuring of pay packages is _____.
the distinction between direct wages and benefits
Management has shown opposition toward unionization by _____.
using temps to prevent the formation of unions
Identify a feature of gain-sharing plans.
Cost savings that are a result of employees' efficiency are split between an organization and its employees.
Which of the following are wage adjustment provisions specified in multiyear contracts? (Check all that apply.)
Deferred wage increases Cost-of-living adjustments Reopener clauses
True or false: The impact of unions is smaller during periods of high unemployment.
False
Which of the following are impacted by unions? (Check all that apply.)
Nonunion firms Structure of wages Wage and benefit levels Pay policies and practices in unionized firms
Which of the following plans pays employees more for learning various new skills?
Pay-for-knowledge plans
Which of the following is true of lump-sum awards?
They are given to employees in place of merit increases.
Which of the following is a feature of two-tier pay plans?
They initially became popular as they were viewed as being less painful than pay freezes and staff cuts.
Identify the explanations that are usually offered for the decline in unionization among private sector workers. (Check all that apply.)
Union organizing efforts have reduced. The declining industries in America are the most heavily unionized. Management is increasingly opposing unions and their demands.
In the context of experience/merit differentials in labor agreements, which of the following represents a type of movement through wage ranges in which the contract repeatedly specifies the time period between movements?
automatic progression
Clover Apparels Inc., a clothing company, adopts a compensation strategy in which base wages are kept low and employees are given part ownership in the company in return. The wage control strategy followed by Clover Apparels is an example of a(n) _____.
employee stock ownership plan
The Dune Inc., a publishing company, has adopted a compensation strategy that involves providing low base wages to employees and, in exchange, offering them shares in the company. The management has implemented this strategy with the aim of aligning employee interests with those of the company. In this scenario, the company has adopted a(n) _____.
employee stock ownership plan
Which of the following is meant to coordinate workers and management in order to streamline operations and reduce cost?
gain-sharing plans
An issue related to the impact of unions on the structure of wages is the evolution of two-tier pay plans, which are pay structures that distinguish wages based upon _____.
hiring date
One-time cash remittances made out to employees that are not included in employees' base pay are called
lump sum awards
In order to keep labor costs low, Molchrome Pharma Inc., a pharmaceutical company, adopts a compensation strategy in which base wages are kept low and employees are paid a portion of the profits. This strategy allows Molchrome Pharma to pay its employees a bigger share of its profits during good profit years and lower profit payouts in bad profit years. In certain cases, the company defers profit distribution until retirement. In this scenario, Molchrome Pharma's strategy is an example of a(n)
profit sharing
Dream Homes, a construction company, has implemented a compensation plan in which employees are given a percentage of the company's financial gains in lieu of wage increases. This plan allows the company to have labor costs that vary with the company's prosperity and its ability to pay employees. In this scenario, Dream Homes has implemented a(n) _____.
profit-sharing plan
The opposition of management to unions is driven by _____.
rising pressure from domestic and international competitors
agreements do not consider seniority or merit while distinguishing wages.
single rate
Evergreen Investments, an investment firm, offers its employees above-market wages and several benefits such as health care coverage, daycare facilities, flexible working hours, and retirement insurance among others and provides them with an inclusive work environment. The management aims to avoid unionization by offering employees similar or better wages and benefits than those provided in rival unionized firms. This scenario illustrates the _____.
spillover effect
Ferrite Mold Corp., an iron and steel company, is a unionized organization. In addition to base wages and mandatory benefits, Ferrite Mold also incorporates variable pay components into its compensation plans. Its employees are paid overtime pay for extra hours worked and are given incentives for distinguished performance. To prevent unionization, Sterlite Steel Inc., a competitor of Ferrite Mold, offers a similar pay structure and benefits to its employees. In this scenario, Sterlite Steel faces no opposition to its policies, and its employees receive wages and benefits that are similar to those received by employees of Ferrite Mold. This can be considered an example of the
spillover effect
The impact caused by unions on nonunion firms is called
spillover effect
True or false: Unions are opposed to pay-for-knowledge plans as they make workers more expendable to an organization.
False