Labour Relations 4th Edition By Larry Suffield – Test Bank

 

 

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Sample Questions

 

CHAPTER 4
EMPLOYERS: OBJECTIVES, PROCESSES, AND STRATEGY
True/False
1. The primary objectives of employers are to maximize profitability and maintain control
over the workplace.
Answer: True
2. Recently productivity growth has been the same in Canada and the United States.
Answer: False
3. Employers use public relations efforts as one of the methods to achieve their objectives.
Answer: True
4. The values or personal beliefs of some managers lead them to pursue control of the
workplace.
Answer: True
5. Labour relations strategy refers to how a firm competes in the marketplace.
Answer: False
6. Concession bargaining is negotiation over employer demands for reductions in wages
and benefits.
Answer: True
7. Cost leadership is a strategy that involves an organization competing on the basis of
price.
Answer: True
8. Differentiation is a strategy that involves an organization competing on the basis of price.
Answer: False
9. Wal-Mart is an example of a firm using a differentiation strategy.
Answer: False

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

10. The extent of unionization of the industry in which a firm competes influences a firm’s
labour relations strategy.
Answer: True
11. An employer’s experience with unionization influences the employer’s labour relations
strategy.
Answer: True
12. Employers in Canada and United States have the same opportunities to oppose
unionization of their employees.
Answer: False
13. The legal environment does not affect an employer’s ability to oppose unionization.
Answer: False
14. Employers in Canada have less opportunity to oppose unions than employers in the
United States because of the reliance on membership cards in the certification process in
all Canadian jurisdictions.
Answer: False
15. The premise of a union avoidance strategy is that employees will not turn to a union if
they are treated fairly.
Answer: True
16. A union avoidance strategy involves an employer adopting both legal and illegal means
to oppose unionization.
Answer: False
17. A union acceptance strategy refers to an employer voluntarily recognizing the union.
Answer: False
18. A union resistance strategy involves the employer providing employee representation
mechanisms, such as complaint procedures, to non-union employees.
Answer: True
19. Most Canadian firms adopt a strategy of union removal.

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

Answer: False
20. Wal-Mart is an organization that illustrates union opposition and removal strategies.
Answer: True
21. Employers who adopt a high commitment human resource management strategy will
develop and rely on the skills of the workforce.
Answer: True
22. High-performance organizations emphasize reducing costs by lowering compensation.
Answer: False
23. High-performance organizations maximize status differences between individuals in
order to motivate employees.
Answer: False
24. Most Canadian firms have widely adopted high-performance policies and practices.
Answer: False
25. Concession bargaining involves employer demands for reductions in compensation.
Answer: True
26. High-performance practices such as variable pay are welcomed by unions.
Answer: False
27. Younger employees make union opposition easier for the employer.
Answer: True
28. Comparing employers in Canada and the United States, it is more difficult for employers
in Canada to oppose unions.
Answer: True
29. A union opposition strategy could involve matching the pay rates of unionized firms.
Answer: False

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

30. It is recognized that banks and fast food franchises have used a union acceptance
strategy.
Answer: False
31. The predominant approach of employers in Canada is a union avoidance strategy.
Answer: False
32. A low commitment human resource management strategy involves using traditional
production methods with less emphasis on technological innovation.
Answer: True
33. High-performance work systems are part of a low commitment human resource
management strategy.
Answer: False

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

Multiple Choice
1. Which of the following are employer objectives;
a. contract negotiation
b. collaboration with the union
c. unilateral action
d. efficiency
e. a and d
Answer: d
2. Which of the following are methods used by employers to meet their objectives:
a. efficiency
b. grievances and arbitration
c. control
d. social activity
e. environment
Answer: b
3. Which of the following are measures that an employer could pursue to increased
efficiency:
a. Utilizing same technology
b. outsourcing
c. union opposition
d. increasing cost of productivity
e. decreasing cost of labour
Answer: b
4. Which of the following is correct regarding labour productivity in Canada and the United
States:
a. labour productivity is not a significant issue in either country.
b. labour productivity is higher in Canada.
c. labour productivity is higher in the United States.
d. there is no difference in labour productivity between the two countries.
e. labour productivity is lower in the United States.
Answer: c
5. Company A is in financial difficulty. In contract negotiations with the union the
company has demanded a five percent wage reduction. This illustrates:
a. concession bargaining
b. bargaining in bad faith
c. union avoidance

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

d. union resistance
e. union removal
Answer: a
6. Labour relations strategy:
a. relates to how the firm competes in the marketplace
b. relates to how the employer deals with unionization
c. has been constant since the 1980s
d. is not related to environmental factors
e. relates to a low commitment approach to human resource management
Answer: b
7. Which of the following factors affect a firm’s labour relations strategy:
a. experience with unionization
b. nature of employees
c. power of the union
d. a and b
e. a, b, c
Answer: e
8. Which of the following is a factor affecting an employer’s labour relations strategy:
a. the values of individual employees
b. the methodology of the union representing employees
c. labour relations legislation regulating employer conduct
d. competitor’s focus on their employees’ philosophy
e. union output
Answer: c
9. Which of the following make it more difficult for employers in Canada to oppose
unionization than is the case in the United States:
a. the delay between a union application for bargaining rights and a representation vote
b. first contract arbitration
c. right to work legislation
d. granting bargaining rights on the basis of a representation vote instead of membership
cards
e. provisions that allow employers to hire permanent replacements for striking workers
Answer: b
10. A cost leadership strategy is:
a. competitive strategy based on having the highest price
b. competitive strategy based on having the modest price

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

c. is the basis on which a firm competes
d. is a competitive strategy based on having a distinctive or unique product.
e. competitive strategy based on having the lowest price
Answer: e
11. Which of the following features would be emphasized by an organization employing a
differentiation strategy:
a. productivity
b. improved technology
c. management ideology
d. design
e. union philosophy
Answer: d
12. Which of the following statements correctly describes the majority of Canadian
employers:
a. They have developed policies to transform the workplace.
b. When a union has gained bargaining rights they adopt a strategy of union acceptance.
c. When a union has gained bargaining rights they adopt a strategy of union removal.
d. They have adopted a strategy of union opposition.
e. They have adopted a strategy of union assistance.
Answer: b
13. Union resistance is a labour relations strategy that involves an employer attempting
which of the following:
a. have certified unions removed from the workplace
b. prevent unionization through both legal and illegal means
c. convince employees they need a union
d. limit the spread of unionization further in the organization
e. negotiate the best deal possible with the union
Answer: d
14. Which of the following companies are the most likely to pursue a union opposition
strategy:
a. Company A, which has adopted a differentiation approach in the marketplace
b. Company B, which primarily uses young part-time employees
c. Company C, which competes in an industry in which most employers are unionized
d. Company D, which has managers who are indifferent on the matter of unionization
e. Company A and Company B
Answer: b

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

15. A low commitment approach to human resource management emphasizes or includes:
a. increasing labour skills
b. technological innovation
c. reducing labour costs
d. higher compensation levels
e. higher levels of commitment
Answer: c
16. A high commitment approach to human resource management emphasizes or includes:
a. improved technology
b. compensation freezes
c. minimizing training
d. decreasing labour costs
e. reduced levels of commitment
Answer: a
17. A high commitment approach to human resource management has been associated with:
a. a cost leadership business strategy
b. union resistance
c. union acceptance
d. a differentiation business strategy
e. reducing labour costs
Answer: d
18. A high-performance work system includes:
a. job simplification
b. increases in training and development
c. centralized decision-making
d. reducing job security
e. a and b
Answer: b
19. Which of the following correctly describes the level of adoption of high-performance
work systems by Canadian employers:
a. adopted in the service sector
b. rejected
c. adopted by U.S. subsidiaries only
d. partially adopted
e. completely adopted by a majority
Answer: d

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Labour Relations, 4th Edition

Chapter 4 Employers: Objectives, Processes, and Strategy

20. Research has established that high-performance work systems have:
a. improved results for all firms
b. improved results for some firms
c. failed to improve results for any firms
d. been more widely adopted in Canada than United States
e. improved union management relations
Answer: b
21. Which of the following is correct regarding high performance work systems (HPWS)/
a. They have been widely adopted in Canada
b. It is universally accepted that HPWS have improved employee’s work lives
c. Unions accept all of the features of HPWS
d. Some features of HPWS will be opposed by unions.
e. Is universally accepted that HPWS have improved results for employers
Answer: d
Essay Questions
1. Identify the primary objectives of employers and describe four methods that could be
used to achieve those objectives.
2. Identify the meaning of “labour relations strategy” and describe four alternative strategies
that could be adopted.
3. Identify the meaning of “labour relations strategy” and describe four factors that could
affect a labour relations strategy.
4. One strategy or approach to unions that an employer could adopt has been referred to as
union substitution / avoidance. Describe the objective of the strategy and outline how the
employer could implement the strategy.
5. Distinguish between a high commitment and a low commitment approach to human
resource management.
6. Outline the policies and practices associated with high-performance organizations and
describe the implications for the union-management relationship.

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