Test Bank for Labor Relations 12th Edition by Fossum

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1-1
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Test Bank for Labor Relations 12th Edition by
Fossum
Download full chapter at: https://testbankbell.com/product/test-bank-for-
labor-relations-12th-edition-by-fossum/
Chapter 01
Introduction
True / False Questions
1. The basis for the practice of labor relations within a unionized employer is a contract negotiated
by the parties.
True False
2. Stock markets create the opportunity to make ownership highly liquid by providing an
institutionalized mechanism for the purchase and sale of shares.
True False
3. Operational decisions are made by the managers hired by the shareholders' elected board of
directors.
True False
4. Unions are developed to take over companies.
True False
5. In democracies, laws and regulations ultimately reflect the will of the electorate.
True False
6. Unions can exist without employers, but employers cannot exist without unions.
True False
7. A lockout occurs when a unionized employment practice is adopted by nonunion employers in
order to avoid unionization by copying what unions have won for their members.
True False

1-2
8. Unionization provides employees a voice in how the employment relationship is implemented in
their workplace.
True False
9. Spillover is a pervasive phenomenon that occurs when a group perceives danger.
True False
10. Workers in companies with innovative human resource management practices are less likely to
desire unions.
True False
11. Employees are more likely to vote for unions due to job task characteristics rather than
dissatisfaction with employment conditions.
True False
12. Dissatisfaction is consistently associated with turnover.
True False
13. Local community attitudes have no effect on union power.
True False
14. Union action cannot influence public policy decisions on potentially favorable tax abatements for
employers.
True False
15. The policies of large national unions are influenced strongly by the actions of majorities of local
union members.
True False
16. Satisfaction of nonunion employees has drastically decreased when compared to that of
unionized workers, thereby eliminating the motivation to organize.
True False
17. Prices, and ultimately wages, are controlled by collective bargaining rather than by the market.
True False
18. If the middle class perceives income distribution as fair, then support for collective bargaining will
not be strong.
True False
19. Groups of employees coalesce around common interests or group membership to pressurize
their employers to address employment issues of particular interest to their groups.
True False

1-3
20. Increasing unionization in the industry where one is employed negatively influences wages.
True False
21. Bargaining power is very low for unions that represent workers who deliver services directly to the
consumer.
True False
22. One of the greatest challenges facing private sector unions is the continued increase in the
globalization of production.
True False
23. While major employers have increasingly exercised global options, unions around the world have
maintained jurisdictions largely within their own countries.
True False
24. Traditionally, union membership depended on employment in a workplace governed by a
collective bargaining agreement.
True False
25. Unions have generally benefited much from a Democratic president and/or the Congress.
True False
Multiple Choice Questions
26. _____ is the ongoing interchange between the union and the employer that identifies their
common and specific interests and creates mechanisms to clarify, manage, reduce, and resolve
conflicts over their specific interests.
A. Monopoly power
B. Labor relations
C. Spillover
D. Voice power
27. Why are contracts renegotiated periodically?
A. To lead employees into believing that they are individually unable to influence a change in the
conditions causing their dissatisfaction
B. To lead employees into believing that changing jobs would improve conditions more than
collective bargaining
C. To take into account changes in the economy and society
D. To take into account changing goals and objectives of the government

1-4
28. Which of the following is a feature of individual investors in a corporation?
A. They have limited liability.
B. They can lose more than their original investments.
C. They are prohibited from selling their shares to new owners at any time.
D. They cannot own the corporation collectively.
29. Who are responsible for making operational decisions for corporations?
A. Managers hired by the shareholders through their elected board of directors
B. Shareholders
C. Investors and directors of the company
D. The managing directors and the partners of the company
30. What do shareholders do when they are dissatisfied with corporate performance?
A. They fire the management team.
B. They disassociate themselves from the corporate problems.
C. They sell their shares.
D. They ignore corporate problems totally.
31. What are shareholders' primary interests?
A. Altering the terms and conditions of employment
B. The introduction of democracy into the employment relationship
C. The financial performance of the corporation
D. Countering employers' powers to unilaterally change employment conditions
32. High profitability, high returns on investment capital, and high growth rates lead to _____.
A. higher share prices
B. overflow of money in the market
C. scarcity of certain products
D. greater tax rates
33. Which of the following is a reason behind employers' choice of complete freedom to alter the
terms and conditions of employment in their workplaces?
A. Eliminate their responsibilities to shareholders
B. Maximize control on employees
C. Maximize returns on investment
D. Recede from the attainment of organizational goals

1-5
34. While labor is somewhat mobile, with workers able to move between employers as opportunities
occur, it is less mobile than _____.
A. shareholder wealth
B. the company itself
C. information
D. financial capital
35. _____ offers employees a method for countering employers' powers to unilaterally change
employment conditions.
A. Spillover
B. Unionization
C. Certification
D. Picketing
36. What does unionization introduce into the workplace?
A. Democracy into the employment relationship
B. An institutionalized mechanism for the purchase and sale of shares
C. The risk of diversifying ownership across several corporations
D. Complete freedom to the employer to alter the terms and conditions of employment
37. Which of the following is a reason for the development of unions?
A. To take over companies
B. To eliminate management
C. To counter employer power
D. To assert power of top management
38. Which of the following is true about shareholders?
A. Large corporations consist of a single shareholder, who participates in the corporation's day-
to-day business.
B. Operational decisions are made by workers hired by the shareholders.
C. Shareholders who are dissatisfied with corporate performance cannot sell their shares or
combine with others to oust the current board and its managers.
D. Shareholders may decide, collectively, to sell their interests to another company that seeks to
acquire its assets.
39. In democracies, labor laws and regulations ultimately reflect the will of the _____.
A. corporations
B. managers
C. electorate
D. shareholders

1-6
40. A corporation's _____ ultimately control decisions about its direction, investments, and existence
depending on which best meets their interests.
A. managers
B. shareholders
C. board of directors
D. employees
41. As economic actors, what do unions seek to control?
A. The supply of labor to the employers
B. The changing goals and objectives of the government
C. The changes in the economy and society
D. The purchase and sale of investors' shares
42. Which of the following factors is responsible for the decline in unionized employment, in both the
proportion and number of workers?
A. A shift from services toward manufacturing
B. The decreasing intellectual content of jobs
C. The globalization of manufacturing
D. An overall increase in union organizing activity
43. Global competition, free trade, and an emphasis on corporate financial performance have
strongly influenced employment patterns and reduced _____.
A. intellectual content of jobs
B. union bargaining power
C. the overall decline in union organizing activity
D. economic relations
44. What must unions generate in order to survive?
A. Limited liability for individual investors
B. Global economic development
C. Economic benefits for their members
D. Global competition
45. Which of the following needs to be done by unions to achieve gains?
A. Decrease the intellectual content of jobs
B. Encourage the purchase and sale of investors' shares
C. Provide limited liability to individual investors
D. Exert bargaining power through some degree of labor supply control

1-7
46. What is the reason behind the statement, "Today's global economy, combined with the
elimination of anticompetitive regulations in several major industries, has reduced union
bargaining power"?
A. The costs of increased benefits cannot readily be passed on to consumers.
B. Jobs in the global economy are associated with decreasing intellectual content.
C. Unions exert the highest influence on employment practices through spillovers than they did in
the past.
D. The unions control labor supply on an international basis.
47. Union representation has declined from 35 percent in 1955 to a little more than 11 percent now,
indicating that unions exert less influence on employment practices through _____.
A. voice power
B. spillovers
C. collective bargaining
D. monopoly power
48. When an employment practice in unionized companies is adopted by nonunion employers to
avoid unionization, a _____ occurs.
A. boycott
B. spillover
C. strike
D. lockout
49. Which of the following is true about unionization?
A. There are no differences in the degree of unionization across industries and occupations.
B. It is more prevalent where jobs require employee-specific knowledge.
C. It creates monopoly power by fixing wages through contracts.
D. It is more prevalent where internal workplace rules have no influence on employee outcomes.
50. Union monopoly power costs less than _____ percent of gross domestic product (GDP).
A. 1
B. 5
C. 10
D. 15
51. Where is unionization more prevalent?
A. Where jobs require employee-specific knowledge
B. Where external workplace rules influence employee outcomes
C. Where jobs require employer-specific knowledge
D. Where internal workplace rules have no influence on employee outcomes

1-8
52. Voice option refers to people expressing dissent about their workplace by _____.
A. quitting
B. trying to reform it
C. boycotting
D. trying to take over
53. Forming a _____ enables use of a collective voice in influencing change at work.
A. union
B. worker advisory board
D. top management team
54. A phenomenon that occurs when a group perceives a threat is known as _____.
A. groupthink
B. collective bargaining
C. wagon circling
D. spillover
55. Which of the following statements about cohesiveness is true?
A. A cohesive group is characterized by a high degree of heterogeneity in the behavior of its
members.
B. Cohesive groups do not display class consciousness.
C. Cohesive groups usually have a group of leaders that strongly reflect the values of the group.
D. Unions ignore the need for cohesiveness to members through calls for solidarity during periods
of threat.
56. How do unions emphasize the need for cohesiveness?
A. Through calls for solidarity to members during periods of threat
B. By finding alternative employment for the members
C. By quitting or bringing reforms
D. Through exerting collective pressure on the members
57. Which of the following statements about class consciousness is true?
A. Class consciousness may be a catalyst for the formation of worker classes.
B. If mobility between classes is perceived as unlikely, class consciousness is less likely to
develop.
C. Large differences between managers and workers within the same organization in terms of
employment security, increases class consciousness.
D. American unions have generally emphasized class consciousness.

1-9
58. Which of the following is a reason why unions cannot ensure similar backgrounds among their
members?
A. Employees and employers come from the same social classes.
B. Income inequality between employees and employers is low.
C. Management makes hiring decisions and unions are obligated to admit all employees who
want to join.
D. The cost of membership outweighs the benefits perceived from remaining a group member.
59. How do unions maintain cohesiveness?
A. By emphasizing the costs of memberships to outweigh the benefits perceived from remaining a
group member
B. By continually convincing employees they will receive greater employment benefits through
continued unionization
C. By casting management in the best image
D. By ensuring similar background among their members irrespective of the management's hiring
decisions
60. Workers that are LEAST likely to desire unions are those with:
A. lower satisfaction with career prospects.
B. jobs in companies with innovative HR management practices.
C. lower education and lower personal income.
D. higher perceptions of job stress.
61. Which of the following conditions results in employees voting more likely for unions?
A. Discontent with employment conditions
B. Job task characteristics
C. Co-worker friction
D. Political unrest in the country
62. Which of the following is a condition in predicting the outcomes of organization attempts and
union successes?
A. Employees have to be dissatisfied and believe that they are individually unable to influence a
change in the conditions causing their dissatisfaction.
B. A majority of employers have to believe that collective bargaining would improve conditions
more than changing jobs, and its benefits outweigh the costs.
C. Employees in a unit covered by a collective bargaining agreement may decide to join unions.
D. Satisfaction with employment conditions and a desire to make things even better than they
currently are.

1-10
63. Identify a condition that has to exist in order to predict organizing attempts and union wins.
A. Employers have to be dissatisfied and believe that they are individually unable to influence a
B. A majority of employees have to believe that collective bargaining would improve conditions
C. Employees in a unit covered by a collective bargaining agreement may decide to join unions.
currently are.
64. What does a unionization model suggest?
A. Employees have to be dissatisfied and believe that they are individually unable to influence a
B. A majority of employees have to believe that collective bargaining would improve conditions
C. The gaps between expectations and achievements motivate employees to find ways to
eliminate them.
D. Differences among members of a bargaining unit after unionization may be substantial and
must be considered by the union in its representational activities.
65. Bargaining units are not organized until all of the following occur EXCEPT:
A. a majority of employees desire representation.
B. officers are elected by majorities of local union members.
C. contracts are vetoed by a majority of union members in the bargaining unit.
D. officers are defeated by majorities of local union members.
66. Which of the following is a condition that prevented union empowerment in the United States?
A. Employers fiercely protected, and unions ceded to them, the capitalistic, market-driven system
that was embraced by the United States.
B. With the exception of the skilled construction trades, employees have always controlled the
content of jobs.
C. Employers have absolutely no connection with the U.S. educational system.
D. The small middle class in the United States has had no interest in efficiency and productivity.
67. Prices, and ultimately wages, are controlled by _____.
A. collective bargaining
B. administrative orders
C. the government
D. the market

1-11
68. Which of the following occurs when an employer decides to outsource or move production
abroad?
A. Elimination of any kind of internal competition among employees to retain jobs.
B. Unionized workers from two different local unions of the same national will be forced to end
operations.
C. Increase in job security and union bargaining power on a companywide basis.
D. Companies may seek tax concessions from governments representing a particular country in
deciding where to locate.
69. Which of the following is true about union memberships?
A. Usually, membership is independent of employment in a workplace governed by a collective
bargaining agreement.
B. Only in the building trades and some entertainment unions does membership terminate after
employment with a particular employer ends.
C. Traditionally, if employment was lost, membership often terminated.
D. Unions can ensure a similar background among the members, irrespective of the
management's hiring decisions.
70. What was the reason for membership to survive in the building trades, the maritime unions, and
some entertainment unions after employment with a particular employer ended?
A. The industrial unions acted as collective bargaining agents.
B. The industrial unions found it increasingly difficult to attract members in a transient
employment environment.
C. The employees preferred to have temporary ties to an employer.
D. Union hiring halls were the primary source of employees in these industries.
Short Answer Questions
71. What is meant by labor relations?

1-12
72. Does unionization introduce democracy into the employment relationship? Explain.
73. Explain how unions are simultaneously economic and political organizations.
74. What is a spillover?
75. Explain group cohesiveness.

1-13
76. What are the three ways by which employees can become union members?
77. What are the conditions required to predict the outcomes of organizing attempts and a union
success?
78. How do local community attitudes affect union power?
79. Briefly explain the median voter concept.

1-14
80. Describe several historical conditions which have prevented the accumulation of union power in
the United States over the past two centuries.

1-15
Chapter 01 Introduction Answer Key
True / False Questions
1.
(p. 1)
The basis for the practice of labor relations within a unionized employer is a contract
negotiated by the parties.
TRUE
Blooms: Remember
Difficulty: 1 Easy
2.
(p. 1)
Stock markets create the opportunity to make ownership highly liquid by providing an
institutionalized mechanism for the purchase and sale of shares.
TRUE
Blooms: Remember
Difficulty: 1 Easy
3.
(p. 2)
Operational decisions are made by the managers hired by the shareholders' elected board of
directors.
TRUE
Blooms: Remember
Difficulty: 1 Easy
4.
(p. 2)
Unions are developed to take over companies.
FALSE
Blooms: Remember
Difficulty: 1 Easy
5.
(p. 3)
In democracies, laws and regulations ultimately reflect the will of the electorate.
TRUE
Blooms: Remember
Difficulty: 1 Easy
6.
(p. 3)
Unions can exist without employers, but employers cannot exist without unions.
FALSE
Blooms: Remember
Difficulty: 1 Easy
7.
(p. 5)
A lockout occurs when a unionized employment practice is adopted by nonunion employers in
order to avoid unionization by copying what unions have won for their members.
FALSE
Blooms: Remember
Difficulty: 1 Easy

1-16
8.
(p. 5)
Unionization provides employees a voice in how the employment relationship is implemented
in their workplace.
TRUE
Blooms: Remember
Difficulty: 1 Easy
9.
(p. 7)
Spillover is a pervasive phenomenon that occurs when a group perceives danger.
FALSE
Blooms: Remember
Difficulty: 1 Easy
10.
(p. 9)
Workers in companies with innovative human resource management practices are less likely
to desire unions.
TRUE
Blooms: Remember
Difficulty: 1 Easy
11.
(p. 9)
Employees are more likely to vote for unions due to job task characteristics rather than
dissatisfaction with employment conditions.
FALSE
Blooms: Remember
Difficulty: 1 Easy
12.
(p. 10)
Dissatisfaction is consistently associated with turnover.
TRUE
Blooms: Remember
Difficulty: 1 Easy
13.
(p. 16)
Local community attitudes have no effect on union power.
FALSE
Blooms: Remember
Difficulty: 1 Easy
14.
(p. 16)
Union action cannot influence public policy decisions on potentially favorable tax abatements
for employers.
FALSE
Blooms: Remember
Difficulty: 1 Easy
15.
(p. 17)
The policies of large national unions are influenced strongly by the actions of majorities of
local union members.
TRUE
Blooms: Remember
Difficulty: 1 Easy

1-17
16.
(p. 18)
Satisfaction of nonunion employees has drastically decreased when compared to that of
unionized workers, thereby eliminating the motivation to organize.
FALSE
Blooms: Remember
Difficulty: 1 Easy
17.
(p. 19)
Prices, and ultimately wages, are controlled by collective bargaining rather than by the
market.
FALSE
Blooms: Remember
Difficulty: 1 Easy
18.
(p. 19)
If the middle class perceives income distribution as fair, then support for collective bargaining
will not be strong.
TRUE
Blooms: Remember
Difficulty: 1 Easy
19.
(p. 19)
Groups of employees coalesce around common interests or group membership to pressurize
their employers to address employment issues of particular interest to their groups.
TRUE
Blooms: Remember
Difficulty: 1 Easy
20.
(p. 20)
Increasing unionization in the industry where one is employed negatively influences wages.
FALSE
Blooms: Remember
Difficulty: 1 Easy
21.
(p. 21)
Bargaining power is very low for unions that represent workers who deliver services directly to
the consumer.
FALSE
Blooms: Remember
Difficulty: 1 Easy
22.
(p. 21)
One of the greatest challenges facing private sector unions is the continued increase in the
globalization of production.
TRUE
Blooms: Remember
Difficulty: 1 Easy

1-18
23.
(p. 21)
While major employers have increasingly exercised global options, unions around the world
have maintained jurisdictions largely within their own countries.
TRUE
Blooms: Remember
Difficulty: 1 Easy
24.
(p. 22)
Traditionally, union membership depended on employment in a workplace governed by a
TRUE
Blooms: Remember
Difficulty: 1 Easy
25.
(p. 23)
Unions have generally benefited much from a Democratic president and/or the Congress.
FALSE
Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions
26.
(p. 1)
_____ is the ongoing interchange between the union and the employer that identifies their
common and specific interests and creates mechanisms to clarify, manage, reduce, and
resolve conflicts over their specific interests.
A. Monopoly power
B. Labor relations
C. Spillover
D. Voice power
Blooms: Remember
Difficulty: 1 Easy
27.
(p. 1)
Why are contracts renegotiated periodically?
A. To lead employees into believing that they are individually unable to influence a change in
the conditions causing their dissatisfaction
B. To lead employees into believing that changing jobs would improve conditions more than
collective bargaining
C. To take into account changes in the economy and society
D. To take into account changing goals and objectives of the government
Blooms: Understand
Difficulty: 2 Medium

1-19
28.
(p. 1)
Which of the following is a feature of individual investors in a corporation?
A. They have limited liability.
B. They can lose more than their original investments.
C. They are prohibited from selling their shares to new owners at any time.
D. They cannot own the corporation collectively.
Blooms: Understand
29.
(p. 2)
Who are responsible for making operational decisions for corporations?
A. Managers hired by the shareholders through their elected board of directors
B. Shareholders
C. Investors and directors of the company
D. The managing directors and the partners of the company
Blooms: Remember
Difficulty: 1 Easy
30.
(p. 2)
What do shareholders do when they are dissatisfied with corporate performance?
A. They fire the management team.
B. They disassociate themselves from the corporate problems.
C. They sell their shares.
D. They ignore corporate problems totally.
Blooms: Understand
31.
(p. 2)
What are shareholders' primary interests?
A. Altering the terms and conditions of employment
B. The introduction of democracy into the employment relationship
C. The financial performance of the corporation
D. Countering employers' powers to unilaterally change employment conditions
Blooms: Understand
32.
(p. 2)
High profitability, high returns on investment capital, and high growth rates lead to _____.
A. higher share prices
B. overflow of money in the market
C. scarcity of certain products
D. greater tax rates
Blooms: Remember
Difficulty: 1 Easy

1-20
33.
(p. 2)
Which of the following is a reason behind employers' choice of complete freedom to alter the
terms and conditions of employment in their workplaces?
A. Eliminate their responsibilities to shareholders
B. Maximize control on employees
C. Maximize returns on investment
D. Recede from the attainment of organizational goals
Blooms: Understand
34.
(p. 2)
While labor is somewhat mobile, with workers able to move between employers as
opportunities occur, it is less mobile than _____.
A. shareholder wealth
B. the company itself
C. information
D. financial capital
Blooms: Remember
Difficulty: 1 Easy
35.
(p. 2)
_____ offers employees a method for countering employers' powers to unilaterally change
employment conditions.
A. Spillover
B. Unionization
C. Certification
D. Picketing
Blooms: Remember
Difficulty: 1 Easy
36.
(p. 2)
What does unionization introduce into the workplace?
A. Democracy into the employment relationship
B. An institutionalized mechanism for the purchase and sale of shares
C. The risk of diversifying ownership across several corporations
D. Complete freedom to the employer to alter the terms and conditions of employment
Blooms: Understand

1-21
37.
(p. 2)
Which of the following is a reason for the development of unions?
A. To take over companies
B. To eliminate management
C. To counter employer power
D. To assert power of top management
Blooms: Remember
Difficulty: 1 Easy
38.
(p. 2)
Which of the following is true about shareholders?
A. Large corporations consist of a single shareholder, who participates in the corporation's
day-to-day business.
B. Operational decisions are made by workers hired by the shareholders.
C. Shareholders who are dissatisfied with corporate performance cannot sell their shares or
combine with others to oust the current board and its managers.
D. Shareholders may decide, collectively, to sell their interests to another company that seeks
to acquire its assets.
Blooms: Understand
39.
(p. 3)
In democracies, labor laws and regulations ultimately reflect the will of the _____.
A. corporations
B. managers
C. electorate
D. shareholders
Blooms: Remember
Difficulty: 1 Easy
40.
(p. 3)
A corporation's _____ ultimately control decisions about its direction, investments, and
existence depending on which best meets their interests.
A. managers
B. shareholders
D. employees
Blooms: Remember
Difficulty: 1 Easy

1-22
41.
(p. 4)
As economic actors, what do unions seek to control?
A. The supply of labor to the employers
B. The changing goals and objectives of the government
C. The changes in the economy and society
D. The purchase and sale of investors' shares
Blooms: Understand
42.
(p. 4)
Which of the following factors is responsible for the decline in unionized employment, in both
the proportion and number of workers?
A. A shift from services toward manufacturing
B. The decreasing intellectual content of jobs
C. The globalization of manufacturing
D. An overall increase in union organizing activity
Blooms: Understand
43.
(p. 4)
Global competition, free trade, and an emphasis on corporate financial performance have
strongly influenced employment patterns and reduced _____.
A. intellectual content of jobs
B. union bargaining power
C. the overall decline in union organizing activity
D. economic relations
Blooms: Remember
Difficulty: 1 Easy
44.
(p. 4)
What must unions generate in order to survive?
A. Limited liability for individual investors
B. Global economic development
C. Economic benefits for their members
D. Global competition
Blooms: Understand

1-23
45.
(p. 4)
Which of the following needs to be done by unions to achieve gains?
A. Decrease the intellectual content of jobs
B. Encourage the purchase and sale of investors' shares
C. Provide limited liability to individual investors
D. Exert bargaining power through some degree of labor supply control
Blooms: Understand
46.
(p. 4)
What is the reason behind the statement, "Today's global economy, combined with the
elimination of anticompetitive regulations in several major industries, has reduced union
bargaining power"?
A. The costs of increased benefits cannot readily be passed on to consumers.
B. Jobs in the global economy are associated with decreasing intellectual content.
C. Unions exert the highest influence on employment practices through spillovers than they
did in the past.
D. The unions control labor supply on an international basis.
Blooms: Understand
47.
(p. 5)
Union representation has declined from 35 percent in 1955 to a little more than 11 percent
now, indicating that unions exert less influence on employment practices through _____.
A. voice power
B. spillovers
C. collective bargaining
D. monopoly power
Blooms: Remember
Difficulty: 1 Easy
48.
(p. 5)
When an employment practice in unionized companies is adopted by nonunion employers to
avoid unionization, a _____ occurs.
A. boycott
B. spillover
C. strike
D. lockout
Blooms: Remember
Difficulty: 1 Easy

1-24
49.
(p. 5)
Which of the following is true about unionization?
A. There are no differences in the degree of unionization across industries and occupations.
B. It is more prevalent where jobs require employee-specific knowledge.
C. It creates monopoly power by fixing wages through contracts.
D. It is more prevalent where internal workplace rules have no influence on employee
outcomes.
Blooms: Understand
50.
(p. 5)
Union monopoly power costs less than _____ percent of gross domestic product (GDP).
A. 1
B. 5
C. 10
D. 15
Blooms: Remember
51.
(p. 6)
Where is unionization more prevalent?
A. Where jobs require employee-specific knowledge
B. Where external workplace rules influence employee outcomes
C. Where jobs require employer-specific knowledge
D. Where internal workplace rules have no influence on employee outcomes
Blooms: Understand
52.
(p. 7)
Voice option refers to people expressing dissent about their workplace by _____.
A. quitting
B. trying to reform it
C. boycotting
D. trying to take over
Blooms: Remember
Difficulty: 1 Easy
53.
(p. 7)
Forming a _____ enables use of a collective voice in influencing change at work.
A. union
B. worker advisory board
D. top management team
Blooms: Remember
Difficulty: 1 Easy

1-25
54.
(p. 7)
A phenomenon that occurs when a group perceives a threat is known as _____.
A. groupthink
B. collective bargaining
C. wagon circling
D. spillover
Blooms: Remember
Difficulty: 1 Easy
55.
(p. 7)
Which of the following statements about cohesiveness is true?
A. A cohesive group is characterized by a high degree of heterogeneity in the behavior of its
members.
B. Cohesive groups do not display class consciousness.
C. Cohesive groups usually have a group of leaders that strongly reflect the values of the
group.
D. Unions ignore the need for cohesiveness to members through calls for solidarity during
periods of threat.
Blooms: Understand
56.
(p. 7)
How do unions emphasize the need for cohesiveness?
A. Through calls for solidarity to members during periods of threat
B. By finding alternative employment for the members
C. By quitting or bringing reforms
D. Through exerting collective pressure on the members
Blooms: Understand
57.
(p. 8)
Which of the following statements about class consciousness is true?
A. Class consciousness may be a catalyst for the formation of worker classes.
B. If mobility between classes is perceived as unlikely, class consciousness is less likely to
develop.
C. Large differences between managers and workers within the same organization in terms of
employment security, increases class consciousness.
D. American unions have generally emphasized class consciousness.
Blooms: Understand

1-26
58.
(p. 8-9)
Which of the following is a reason why unions cannot ensure similar backgrounds among their
members?
A. Employees and employers come from the same social classes.
B. Income inequality between employees and employers is low.
C. Management makes hiring decisions and unions are obligated to admit all employees who
want to join.
D. The cost of membership outweighs the benefits perceived from remaining a group
member.
Blooms: Understand
59.
(p. 9)
How do unions maintain cohesiveness?
A. By emphasizing the costs of memberships to outweigh the benefits perceived from
remaining a group member
B. By continually convincing employees they will receive greater employment benefits through
continued unionization
C. By casting management in the best image
D. By ensuring similar background among their members irrespective of the management's
hiring decisions
Blooms: Understand
60.
(p. 9)
Workers that are LEAST likely to desire unions are those with:
A. lower satisfaction with career prospects.
B. jobs in companies with innovative HR management practices.
C. lower education and lower personal income.
D. higher perceptions of job stress.
Blooms: Understand
61.
(p. 9)
Which of the following conditions results in employees voting more likely for unions?
A. Discontent with employment conditions
B. Job task characteristics
C. Co-worker friction
D. Political unrest in the country
Blooms: Remember
Difficulty: 1 Easy

1-27
62.
(p. 10)
Which of the following is a condition in predicting the outcomes of organization attempts and
union successes?
A. Employees have to be dissatisfied and believe that they are individually unable to influence
a change in the conditions causing their dissatisfaction.
B. A majority of employers have to believe that collective bargaining would improve conditions
C. Employees in a unit covered by a collective bargaining agreement may decide to join
unions.
currently are.
Blooms: Understand
63.
(p. 10)
Identify a condition that has to exist in order to predict organizing attempts and union wins.
A. Employers have to be dissatisfied and believe that they are individually unable to influence
B. A majority of employees have to believe that collective bargaining would improve
conditions more than changing jobs, and its benefits outweigh the costs.
C. Employees in a unit covered by a collective bargaining agreement may decide to join
unions.
currently are.
Blooms: Understand
64.
(p. 10)
What does a unionization model suggest?
A. Employees have to be dissatisfied and believe that they are individually unable to influence
B. A majority of employees have to believe that collective bargaining would improve
conditions more than changing jobs, and its benefits outweigh the costs.
C. The gaps between expectations and achievements motivate employees to find ways to
eliminate them.
D. Differences among members of a bargaining unit after unionization may be substantial and
must be considered by the union in its representational activities.
Blooms: Understand

1-28
65.
(p. 16-
17)
Bargaining units are not organized until all of the following occur EXCEPT:
A. a majority of employees desire representation.
B. officers are elected by majorities of local union members.
C. contracts are vetoed by a majority of union members in the bargaining unit.
D. officers are defeated by majorities of local union members.
Blooms: Understand
66.
(p. 19)
Which of the following is a condition that prevented union empowerment in the United States?
A. Employers fiercely protected, and unions ceded to them, the capitalistic, market-driven
system that was embraced by the United States.
B. With the exception of the skilled construction trades, employees have always controlled the
content of jobs.
C. Employers have absolutely no connection with the U.S. educational system.
D. The small middle class in the United States has had no interest in efficiency and
productivity.
Blooms: Understand
67.
(p. 19)
Prices, and ultimately wages, are controlled by _____.
A. collective bargaining
B. administrative orders
C. the government
D. the market
Blooms: Remember
Difficulty: 1 Easy
68.
(p. 21)
Which of the following occurs when an employer decides to outsource or move production
abroad?
A. Elimination of any kind of internal competition among employees to retain jobs.
B. Unionized workers from two different local unions of the same national will be forced to end
operations.
C. Increase in job security and union bargaining power on a companywide basis.
D. Companies may seek tax concessions from governments representing a particular country
in deciding where to locate.
Blooms: Understand

1-29
69.
(p. 22)
Which of the following is true about union memberships?
A. Usually, membership is independent of employment in a workplace governed by a
B. Only in the building trades and some entertainment unions does membership terminate
after employment with a particular employer ends.
C. Traditionally, if employment was lost, membership often terminated.
D. Unions can ensure a similar background among the members, irrespective of the
management's hiring decisions.
Blooms: Understand
70.
(p. 22)
What was the reason for membership to survive in the building trades, the maritime unions,
and some entertainment unions after employment with a particular employer ended?
A. The industrial unions acted as collective bargaining agents.
B. The industrial unions found it increasingly difficult to attract members in a transient
employment environment.
C. The employees preferred to have temporary ties to an employer.
D. Union hiring halls were the primary source of employees in these industries.
Blooms: Understand
Short Answer Questions
71.
(p. 1)
What is meant by labor relations?
In unionized employers, labor relations is the ongoing interchange between the union and the
employer that identifies their common and specific interests and creates mechanisms to
clarify, manage, reduce, and resolve conflicts with respect to their specific interests.
Blooms: Remember
Difficulty: 1 Easy

1-30
72.
(p. 2)
Does unionization introduce democracy into the employment relationship? Explain.
Unionization introduces democracy into the employment relationship. Employees determine,
first, whether a majority desires to be represented; second, who to elect as leaders or hire as
agents; third, what workplace issues are most important to them; and fourth, whether to accept
a proposed contract or to collectively withhold their labor.
Blooms: Remember
73.
(p. 4)
Explain how unions are simultaneously economic and political organizations.
As economic actors, unions seek to control the supply of labor to employers in order to
improve economic returns for their members. To accomplish this, they also seek to create and
maintain power to influence the direction of laws and regulations, to provide a vehicle for
advancing their leaders' and members' purposes, and to survive and grow. Conflicts may exist
between union levels as national union goals may not completely agree with goals at the local
level.
Blooms: Remember
74.
(p. 5)
What is a spillover?
A spillover occurs when a unionized employment practice is adopted by nonunion employers
in order to avoid unionization by copying what unions have won for their members.
Blooms: Remember
Difficulty: 1 Easy
75.
(p. 7)
Explain group cohesiveness.
One of the characteristics that defines a cohesive group is a high degree of similarity in the
values and behavior of its members. One of these values may be class consciousness. Age,
seniority, and other background characteristics are also probably quite similar. Cohesive
groups usually have a leader or group of leaders that strongly reflect the values of the group
and are deferred to by other members of the group. Cohesiveness may also be a function of a
perceived external threat. Unions emphasize the need for cohesiveness to members through
calls for "solidarity" during periods of threat.
Blooms: Understand

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