Chapter 15 - MGT 461

In a two-tier wage system, employees hired after a specific date are placed in a higher wage scale than those hired prior to that date.

false

Moving employees through pay ranges using merit increases is more popular than automatic progression.

false

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

hiring date

With gain-sharing plans, the most common union strategy is to _____. delay taking a stand until real benefits are more apparent be very enthusiastic have direct opposition to the plans as soon as they are suggested by the management have no concern for the plans

delay taking a stand until real benefits are more apparent

Increased global competition has caused unions to: demand higher base wages than their international counterparts. become more receptive to alternate reward systems that link pay to performance. accept less variable pay in exchange for higher base pay. demand increases in product prices to cover for increased wage costs.

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

Pay-for-knowledge plans do all of the following EXCEPT _____. make employees less expendable to their firms increase the probability of work being subcontracted out to nonunion organizations make each individual employee more valuable pay employees more for learning a variety of different jobs or skills

increase the probability of work being subcontracted out to nonunion organizations

Wage adjustments in multiyear contracts may be specified through all of the following ways EXCEPT _____. cost-of-living adjustments deferred wage increases reopener clauses turnover clauses

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. skill-based efficiency-based one-tier two-tier

two-tier

A study of unions in 114 companies concluded that _____. the impact of unions on wages is lesser during recession the union-nonunion gap is the greatest during strong economies unions make a difference in wages across all studies and time periods unions are not responsible for any differences in wages

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

Research indicates that the presence of a union adds about _____ to employee benefits. 5 to 15 percent 20 to 25 percent 30 to 40 percent 50 percent

30 to 40 percent

Which of the following is NOT one of the popular explanations for the decline of union memberships? Workers do not view unions as a solution to their problems. Management resistance to unions has increased. The intensity of union organizing efforts has become less. Growing industries are most heavily unionized, while declining industries are less so.

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

Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts. 40 percent 5 percent 14 percent 22 percent

22 percent

_____ is movement through the wage ranges where seniority is specified as the basis of the movement. Length-of-stay progression Automatic progression Merit differential Performance differential

Automatic progression

Which of the following is a reason for unions opposing gain-sharing plans? Reduced job security Decreased peer pressure to perform Decreased feeling of achievement or contributing to the organization Reduced need for jobs due to increased productivity

Reduced need for jobs due to increased productivity

Which of the following is a reason for unions favoring gain-sharing plans? Increased peer pressure to perform Increased involvement with job activities Increased flexibility in moving employees quickly into high-demand areas Increased clarity in bonus calculations

Increased involvement with job activities

Which of the following actions is most likely to be favored by unions? Increasing the pricing of products to cover for increases in wages Substituting wages with gain-sharing plans Making each individual worker more expendable to the firm Introducing lump-sum awards

Introducing lump-sum awards

Which of the following actions is most likely to be favored by unions? Increasing the pricing of products to cover for increases in wages Substituting wages with gain-sharing plans Making each individual worker more expendable to the firm Introducing lump-sum awards

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 enables employees to learn new skills. It cuts down on strife and internal quarrels. It encourages individual differences. It causes a leniency effect.

It cuts down on strife and internal quarrels.

_____ are one-time cash payments to employees that are not added to an employee's base wages. Relational returns Merit increases Lump-sum awards Cost-of-living increases

Lump-sum awards

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? Introduce merit increases based on individual-based performance. Provide lump-sum awards in exchange for merit pay increases. Introduce a gain-sharing plan that substitutes wages. Provide a 20 percent increase to base wages.

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

Which of the following statements about single rates is true? Single rates are usually specified for workers within a particular job classification. Single-rate agreements differentiate wages on the basis of seniority. Single rates are only specified for workers employed by a firm in different geographic areas. Single-rate agreements differentiate wages on the basis of merit.

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

With gain-sharing plans, the most common union strategy is to _____. delay taking a stand until real benefits are more apparent be very enthusiastic have direct opposition to the plans as soon as they are suggested by the management have no concern for the plans

delay taking a stand until real benefits are more apparent

Single rates are not usually specified for workers within a particular job classification.

f

About 60 percent of all U.S. collective bargaining agreements permit some alternative reward system that links pay to performance.

false

Lump-sum awards are added to base wages.

false

A deferred wage increase is negotiated at the time of initial contract negotiations.

true

A reopener clause specifies that wages will be renegotiated at a specified time or under certain conditions.

true

A study shows that a 10 percent rise in import share has the effect of lowering the union wage differential by approximately 2 percent.

true

An alternative strategy for organizations hurt by intense competition is to control base wages in exchange for giving employees part ownership in the company.

true

Few contracts specify special rates for part-time and temporary employees.

true

In automatic progression, seniority is used as the basis for movement through the job classifications.

true

Lower-tier employees in a two-tier pay plan, those hired after the contract is ratified, receive wages 50 to 80 percent lower than employees in the higher tier.

true

Lump-sum awards are typically given because they are less costly to the employer than merit increases.

true

Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts.

true

Unions respond relatively rapidly to wage increases during inflationary periods.

false

The largest gains in wages for public sector employees are reported for _____. teachers' unions firefighters telecommunication unions postal services

firefighters

Which of the following involves periodic adjustments based typically on changes in the consumer price index? A COLA clause A deferred wage increase A reopener clause An annual improvement adjustment

A COLA clause

Which of the following plans gives employees part ownership in the company? ESOPs Pay-for-knowledge plans Gain-sharing plans Profit-sharing plans

ESOPs

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

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. three-fourths one-half one-quarter one-third

one-third