Q&A Hero

Q: Identify the correct statement about the trends in union membership in the U.S. in relation to trends in other countries. A. In Western Europe, it is common to have union coverage rates of 80 to 90 percent. B. Coverage rates within the United States are much higher than in most other countries. C. U.S. employees tend to have a larger, more formal role in organizational decision making than in Western European countries. D. Worker representatives on boards of directors are much more common in the United States than in Western European countries. E. The union membership rate in the U.S. is second only to that of Denmark.

Q: Which of the following is a factor that has been associated with the decline in union membership? A. High regulation in such areas as workplace safety and equal employment opportunity B. Low competition between companies for scarce human resources C. High job growth in the manufacturing sector of the economy D. Low costs of unionized labor E. Low prospects for growth in the service industry

Q: The employees of Fanzi Textiles Inc. are concerned about company management overlooking their interests. They decide to form a union to voice their concerns and speak up for their rights. They elect Ronny to represent them during negotiations. Ronny's new role requires him to ensure that the terms of the labor contract are enforced and that the interests of the union are met. In this context, Ronny most likely holds the position of _____. A. business representative B. chief executive officer C. stakeholder D. union trustee E. union steward

Q: The United Association of Plumbers and Pipefitters is a labor union that seeks to unite plumbers and pipefitters from around the country. The members of this union exhibit the same set of skills and are proficient in relatively similar tasks. Such an association is most likely an example of a(n) _____. A. craft union B. industrial union C. local union D. business union E. vertical union

Q: Britt, a heavy equipment operator; Sara, an operating engineer; and Nick, a construction mechanic, hail from different parts of the United States. Though they have different occupations, they are all members of the same union. In the context of types of union, Britt, Sara, and Nick most likely belong to a(n) _____ union. A. international B. industrial C. stewards D. checkoff E. craft

Q: Most national unions in the United States are linked with the _____, an association that pursues to improve the shared interests of its member unions at the national level. A. National Labor Relations Act (NLRA) B. Change to Win C. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) D. Chamber of Commerce E. National Association of Manufacturers

Q: The difference between an industrial union and a craft union is that an industrial union: A. contains members who have a particular skill or occupation. B. is often responsible for training its members through apprenticeships. C. organizes as many employees in as wide a range of skills as possible. D. represents a particular occupation. E. comprises members who change employers more often.

Q: Identify the statement that characterizes an industrial union. A. All the members are in the same occupation. B. Union leaders try to limit the number of members in order to maintain high wages. C. Members are linked by their work in a particular industry. D. Members change employers more frequently than in other types of unions. E. It is often responsible for training its members through apprenticeships.

Q: Which of the following is true of a craft union? A. It represents many different occupations. B. Membership in the union is the result of working for a particular employer in the industry. C. Changing employers is not very common. D. It is often responsible for training members through apprenticeships. E. It consists of members who are linked by their work in a particular industry.

Q: A labor union in which all of the members have a particular skill or occupation is known as a(n) _____ union. A. common B. industrial C. craft D. regional E. employer's

Q: The employees of Neronsen Inc. decide to form a union. Although most members of management are ready to support their decision, the CEO wishes to maintain nonunion operations. In an attempt to persuade the CEO to change his mind, a union official claims that labor-management cooperation can help improve the company's revenues. The CEO, however, disagrees. Who is right in this scenario? A. The union official is right because studies show unionized workers are more productive than nonunionized workers. B. The CEO is right because union workers are less committed to quality work. C. The union official is right because union formation tends to reduce the overall cost of labor. D. The CEO is right because unionized workers find it more difficult to form self-managing teams. E. The CEO is right because the introduction of unions may cause managers to disregard employee ideas and pay less attention to management practices.

Q: Alonso, the union steward at Selzar Inc., is attempting to persuade members of management to make certain revisions to the company's policies on job security and work rules on behalf of the union. The union believes that company management has neglected these aspects of the company's administration system for too long. Which of the following levels of decisions is Alonso most likely concerned with in this scenario? A. Forming labor relations strategies B. Administering agreements C. Negotiating contracts D. Terminating contracts E. Forming dissociation strategies

Q: Kristen, a production manager at KartWheel Designs Inc., believes that the formation of labor unions may have a negative impact on the performance of a company's stock. Which of the following statements is likely to strengthen Kristen's belief? A. Workers in unionized organizations tend to exhibit lower levels of productivity than workers in nonunion organizations. B. Unionized organizations are often required to pay their workers higher wages and offer them more generous benefits. C. Studies reveal that unions do not have any positive effects on performance measures, such as productivity, profits, and stock performance. D. Unions tend to have a positive impact on the self-esteem of their members. E. The formation of labor unions is likely to lead to conflicts between social and labor union goals.

Q: When employees in an organization have reason to believe that the management is overlooking their needs and interests, they are likely to respond by collectively forming _____. A. partnerships B. bureaus C. trade associations D. labor unions E. Interest groups

Q: Organizations that are formed in order to represent their members' interests while dealing with employers are known as: A. employee guilds. B. sororities. C. lobbies. D. member clubs. E. labor unions.

Q: Cooperation between labor and management may feature employee involvement in decision making and self-managing employer teams.

Q: Contract administration includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement.

Q: Under the National Labor Relations Act, the union has a duty of fair representation, meaning that the union must provide equal representation to all members of the bargaining unit, whether or not they actually belong to the union.

Q: Courts generally avoid reviewing arbitrators' decisions and focus only on whether the grievance involved an issue that is subject to arbitration under the contract.

Q: The frequency for bargaining over a new contract is only about every three years.

Q: Mediation is the most formal and least used method of conflict resolution.

Q: During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced.

Q: Preparation, in collective bargaining, includes establishing objectives for the contract, reviewing the old contract, and gathering data.

Q: An outside party cannot be barred from holding an election for more than three years.

Q: If at least 30 percent of an organization's employees sign an authorization card, the union may request that the employer voluntarily recognize the union.

Q: Enforcement of the National Labor Relations Act rests with the Federal Mediation and Conciliation Service.

Q: Right-to-work laws grant both the employee and employer the right to terminate the employment relationship at any time with or without cause or notice.

Q: Originally, the National Labor Relations Act (NLRA) did not contain a list of any unfair labor practices by unions.

Q: Joining a union, whether recognized by the employer or not, is an activity protected under the National Labor Relations Act (NLRA).

Q: Under a checkoff provision, a person must be a union member before being hired.

Q: In their labor relations, managers prefer to increase wages and benefits and to give maximum control to workers over work rules and schedules.

Q: Most studies have found that union workers are more productive than nonunion workers.

Q: Unlike union membership for workers in businesses, union membership among government workers has remained strong.

Q: Competition for scarce human resources can lead employers to offer much of what employees traditionally sought through union membership.

Q: A union steward is a person hired by management to monitor union activity and report violations, if any.

Q: The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is by far the largest labor union in the U.S.

Q: A craft union's bargaining power depends greatly on the control it can exercise over the supply of its workers.

Q: Discuss several strategies the HR department might use to communicate the type and value of employee benefits.

Q: What are sick leave programs? What are the pros and cons of allowing employees to accumulate sick leave year after year?

Q: Discuss the Family and Medical Leave Act (FMLA) of 1993, including its eligibility requirements, scope of coverage, and effectiveness.

Q: Laura, HR manager at a tech company, is responsible for administering the company benefits program. The employee benefits package will undergo several significant changes at the start of the new year. Which of the following would be an effective strategy to share the changes with employees? A. Issue a revised employee handbook. B. Mention the changes to a few employees and hope they spread the word. C. Say little about the changes. D. Ask the CEO to say a few words about the changes at the company holiday party. E. Set up Q&A sessions with each department to discuss the changes.

Q: Research asking employees about their benefits has shown that employees: A. significantly underestimate the cost and value of their benefits. B. only want their companies to provide them with cafeteria-style plans. C. want health care professionals to be chosen by the organization. D. prefer cash compensation over benefits. E. understand the value of benefits without assistance from employers.

Q: In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Steven, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which of the following strengthens Steven's belief? A. Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees. B. The Internal Revenue Service provides more favorable tax treatment of benefits when they are offered to a broad range of employees. C. A top-heavy plan requires faster vesting for non-key employees. D. Extending pension plans to employees at all levels will increase triple the costs. E. Pension plans are determined exclusively by state and federal laws.

Q: Which of the following must be true for a pension plan to be deemed as a qualified plan? A. It must not discriminate in favor of an organization's highly compensated employees. B. It must not be a cafeteria-style plan. C. It should include elder care and child care. D. It has to be a defined-contribution plan. E. It has to be a defined-benefit plan that requires most of the funding to come from the employer.

Q: Which of the following is true of employee benefits? A. Employees have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees significantly underestimate the cost and value of their benefits. C. Employers do an effective job of communicating the cost and value of benefits to their employees. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.

Q: Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards? A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Q: An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument? A. The organization has a risk-based insurance in place before recruiting Rick. B. The organization plans to stop Rick's benefits when he reaches the age of 50. C. The organization switches to a risk-based policy after hiring Rick. D. The organization gives equal access to Rick as other employees. E. The organization does not have a risk-based insurance.

Q: Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges? A. An employer who switches to a risk-based policy after hiring a disabled employee B. An employer who sets guidelines for using waivers C. An employer who discriminates against workers over age 40 in providing pay or benefits D. An employer who has risk-based insurance and then hires an employee with a disability E. An employer who does not have risk-based insurance

Q: Under the Older Workers Benefit Protection Act of 1990, which of the following guidelines must employers follow when asking employees to sign early-retirement waivers? A. Inform employees that they may consult with a lawyer before signing. B. Allow employees no more than 48 hours before signing the retirement agreement. C. Make Age Discrimination in Employment Act (ADEA) waivers compulsory. D. Provide lesser benefits than would otherwise be available upon retirement. E. Provide employees with an annual bonus and health insurance after the retirement.

Q: Which of the following is legally required by an organization while offering early retirement incentives? A. Setting an age at which retirement benefits stop growing B. Asking female employees to pay more to defined-benefit plans C. Ensuring there is no coercion used to force employees to retire D. Asking employees to sign compulsory waiver under ERISA E. Providing employees no more than 48 hours to make an early retirement decision

Q: Which of the following is an advantage of a qualified plan in retirement benefits? A. Immediate tax deductions for the funds employees contribute to the plan B. Taxable earnings on the money in the retirement fund C. Tax-free withdrawals for highly compensated employees D. Exemption of contribution from employees E. A retirement plan that provides benefits exclusively to its owners and top managers

Q: _____ strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee. A. The Internal Revenue Service B. The Consolidated Omnibus Budget Reconciliation Act (COBRA) C. The Employee Retirement Income Security Act (ERISA) D. Employee Benefit Research Institute E. The Bureau of Labor Statistics

Q: Which of the following strategies can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. Using more independent contractors rather than hiring additional employees B. Limiting the coverage on life insurance based upon an employee's age C. Using more full-time rather than part-time employees D. Recruiting new employees instead of demanding overtime from existing employees E. Substituting HMO and PPO plans with traditional health insurance plans

Q: Which of the following is an advantage of cafeteria-style plans? A. Employees do not have to select their individual plans. B. Employees can get a better understanding of the value of benefits provided. C. They have lower administrative costs. D. Since employees will select the benefits that they need the most, it reduces the overall costs. E. When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.

Q: Jim is the CEO of a company that is expanding overseas. He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce. However, the HR team brings up the concern of higher expenses involved in this type of benefits. Which of the following is Jim likely to do to lower costs at the initial stage? A. Opt for communication methods that do not stress the value of each benefit B. Avoid standardized plans available for employers opting for cafeteria-style benefits C. Use software packages to design the plan D. Discourage employees from choosing lower-cost options E. Encourage employees to choose benefits they need the most

Q: Stan, the CEO of a company, considers dropping medical insurance from the list of benefits provided to employees. Alisha, the operations director, disagrees with Stan by stating that medical insurance is a high-value benefit. Which of the following supports Alisha's statement? A. Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans. B. Most employees do not appreciate what health insurance costs the employer. C. Medical insurance plans do not cover mental illness. D. Health insurance rate is higher than general insurance rate. E. Employees usually realize that surgery or a major illness can be financially devastating.

Q: Ravi is the CEO of a magazine publishing company. He wants to diversify his workforce and bring in more ethnically diverse employees into his company as he believes that exposure to people from different cultures is likely to increase the creativity of his workforce. Which of the following types of plans should Ravi adopt to allow flexibility? A. Defined-benefit plan B. Cafeteria-style plan C. Vested-benefit plan D. Worker's compensation plan E. Cash compensation plan

Q: Which of the following actions help organizations reduce the cost of health care benefits offered to employees? A. Increasing the amount employers pay for deductibles and coinsurance B. Selecting traditional health insurance over HMOs and PPOs as a preferred option C. Expanding the coverage for different types of claims D. Paying some or all of the difference in cost between an HMO or PPO plan E. Shifting from traditional health insurance plans to PPOs and CDHPs

Q: How do cafeteria-style plans increase costs for employers? A. Employers pay much higher premiums for an HMO than a preferred health care plan. B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. Employers bear the cost of providing employees with benefits they do not value.

Q: Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called: A. preferred provider plans. B. cafeteria-style plans. C. defined-benefit plans. D. flexible spending accounts. E. cash balance plans.

Q: Grey Inc. is a start-up located in Orlando. It offers highly beneficial pension plans to its employees. Which of the following categories of employees is the company most likely to attract through its pension benefits? A. Women of childbearing age B. Disabled workers C. Older people D. Young people E. Unmarried people

Q: Helen is a marketing manager at a local equipment manufacturer. She and her husband know that saving for college for their 4-year-old twin boys is a challenge. Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan. What is the type of plan recently implemented? A. 529 savings plan B. 401k savings plan C. 2015 college tuition plan D. U.S. saving bonds plan E. TD Ameritrade college tuition plan

Q: James is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take up courses to improve themselves. Which of the following programs is James most likely to use in order to encourage this behavior? A. Tuition reimbursement program B. Employee wellness program C. Worker's compensation program D. Short-term vesting program E. Mature education program

Q: Jacob is a new father. His company helps Jacob by collecting information about the cost and quality of available child care. The company also provides Jacob with 12 weeks of unpaid leave. Which of the following is true of the child care provided by Jacob's company? A. The child care provided by the company is at the lowest level of involvement. B. The child care provided by the company is at the highest level of involvement. C. According to the Family and Medical Leave Act, the company has not provided Jacob with adequate child care. D. According to the Patient Protection and Affordable Care Act, the company has exceeded the level of involvement that is permissible. E. The child care provided by the company is a form of a dependent care assistance plan.

Q: Which of the following is true of child care? A. At the highest level of involvement, organizations provide vouchers or discounts for employees to use at existing child care facilities. B. Companies that provide child care facilities face liability concerns. C. Provision of child care is mandatory under the Family and Medical Leave Act. D. Child care should be limited to provision of leaves to employees. E. Child care must include death benefits for it to be considered as a qualified plan.

Q: Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills. A. tuition reimbursement programs B. paid vacations C. pension plans D. quarterly promotions E. medical insurance plans

Q: Which of the following is a function of elder care benefits offered by organizations? A. They provide direct financial assistance. B. They provide tax exemptions on medical bills of the dependent elders. C. They set up elderly care facilities close to the workplace. D. They provide information, referrals, and support. E. They provide vouchers and discounts to help employees access the existing elderly care facilities.

Q: What are vesting rights? A. Ability of retired employees to retain their seniority if they return to work at their former employer. B. Government commitment to provide retirement benefits to all U.S. workers. C. Designation that retired workers will receive cost-of-living increases as part of their monthly pension checks. D. Guarantee that employees in a pension plan will receive a pension at retirement age, regardless of whether they stay with the employer. E. Ability of younger workers to move their retirement savings to another account after leaving a specific employer.

Q: A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution

Q: Steve and Cathy are managers at an advertising firm. Steve proposes that the company adopt defined-benefit plans to attract and retain its employees, and Cathy opposes his view. Which of the following statements will strengthen Steve's argument? A. All the employees are under the age of 30. B. The nature of work demands college graduates. C. The firm employs experienced, older people. D. The firm employs young and creative minds. E. The firm mainly employs freelancers.

Q: Which of the following organizations benefits when switching from a defined-benefit plan to cash balance plans? A. Organizations with many experienced employees B. Organizations with a few skilled employees C. Organizations with many young employees D. Organizations with many retired employees E. Organizations with highly skilled, young employees

Q: Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.

Q: Under a 401(k) plan, the _____ is responsible for choosing specific investments. A. employee B. PGBC C. ERISA fiduciary advisor D. financial institution handling the account E. employer

Q: Which of the following is an example of a defined-contribution pension plan? A. Consumer-driven pension plan B. Money purchase plan C. Cost-sharing plan D. Flexible spending account plan E. Unfunded PBGC plan

Q: Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees? A. The Consolidated Omnibus Budget Reconciliation Act (COBRA) B. The Age Discrimination in Employment Act (ADEA) C. The American Disabilities Act (ADA) D. The Fair Labor Standards Act (FLSA) E. The Employee Retirement Income Security Act (ERISA)

Q: Which of the following factors is considered while calculating the retirement benefit levels under a defined benefit retirement plan? A. The state where the person was employed during the retirement year B. Number of dependents C. Employees' years of service, age, and earnings level D. Average earning during the last 20 years of employment E. Number of unused leaves at the end of the retirement year

Q: Which of the following is true of short-term disability insurance? A. It pays the full amount of a disabled employee's salary for a minimum period of one year. B. It pays the double the full salary of a disabled employee for a period of two months. C. Only employees who have been with an organization for less than two years are eligible for short-term disability insurance. D. It pays a portion of a disabled employee's salary as benefits for up to six months. E. It is only provided to those individuals who work part time.

Q: Rita, who recently moved to a new city, evaluates several job offers. Owing to her recent medical issues, she wants to choose a health care provider and not rely on the providers in a specific insurance network. Which of the following health care plans is Rita most likely to find suitable for her needs? A. A managed care plan B. A health maintenance organization C. A preferred provider organization D. An employee wellness program E. A flexible spending account

Q: Ron, the manager of a shipping company, introduces a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs. The program aims at specific health risks, such as high blood pressure, high cholesterol levels, smoking, and obesity, He has introduced a(n) _____. A. employee wellness program B. health maintenance organization plan C. preferred provider program D. managed care program E. consumer-driven health program

Q: Matt has a health care plan that provides him coverage in such a way that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Matt using? A. Managed care B. Health maintenance organization C. Preferred provider organization D. Flexible health plan E. Consumer-driven health plan