MGT 461 Chapter 15

Which of the following actions is most likely to be favored by unions?

Introducing lump-sum awards

Which of the following is the most likely reason for most unions to insist on group-based performance measures with equal payouts to members?

It cuts down on strife and internal quarrels.

With gain-sharing plans, the most common union strategy is to _____.

delay taking a stand until real benefits are more apparent

Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts.

22 percent

Increased global competition has caused unions to:

become more receptive to alternate reward systems that link pay to performance.

The largest gains in wages for public sector employees are reported for _____.

firefighters

Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____.

hiring date

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, _____.

it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists

Wage adjustments in multiyear contracts may be specified through all of the following ways EXCEPT _____.

turnover clauses

In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs.

two-tier

A study of unions in 114 companies concluded that _____.

unions make a difference in wages across all studies and time periods

Which of the following is a reason for unions opposing gain-sharing plans?

Reduced need for jobs due to increased productivity

_____ is movement through the wage ranges where seniority is specified as the basis of the movement.

Automatic progression

Research indicates that the presence of a union adds about _____ to employee benefits.

30 to 40 percent

Which of the following involves periodic adjustments based typically on changes in the consumer price index?

A COLA clause

Which of the following plans gives employees part ownership in the company?

ESOPs

Which of the following is NOT one of the popular explanations for the decline of union memberships?

Growing industries are most heavily unionized, while declining industries are less so.

Which of the following is a reason for unions favoring gain-sharing plans?

Increased involvement with job activities

Which of the following is true regarding a gain-sharing plan?

Not all unions would be in favor of this type of plan.

A deferred wage increase _____.

is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract

The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.

the spillover effect

The CEO of BoardCom Inc., James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful?

Provide lump-sum awards in exchange for merit pay increases.

Which of the following statements regarding unions is NOT true?

Since 1997, there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization.

MaxTrain Corp. recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits. To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell. Which of the following phenomena is exemplified in this case?

The spillover effect

In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the following types of clauses has Mark introduced in the contract?

Escalator clause

Which of the following statements about single rates is true?

Single rates are usually specified for workers within a particular job classification.

When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is _____.

larger

For the past 10 years, a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.

one-third