ALL RIGHTS RESERVED.
Labor Relations Test 1, Labor Relations Test
Worksheet, Labor Relations FINAL EXAM
Questions and Answers 100% Pass
Labor Union - answer✔is a formal or informal group of workers who join together to influence
the nature of their employment
2 tier pay - answer✔
2 tier wage system - answer✔Is a type of payroll system in which one group of workers receives
lower wages and/or employee benefits than another.
Hot Cargo - answer✔Is a clause in union contract allowing employees to refuse to handle or
work on goods shipped from a struck plant or to provide services to an employer listed on a
union unfair list.
3 Objectives of the Employment Relationship - answer✔efficiency, equity, and voice
Efficiency - answer✔productive use of scarce resources for economic prosperity
Equity - answer✔the provision of fair labor standards for both material outcomes and personal
treatment
1|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Voice - answer✔the ability of employees to have meaningful input into workplace decisions
Pareto Optimality- Economic Definition of Efficiency - answer✔no one can be made better off
without making someone else worse off
Market Failure - answer✔something that prevents the invisible hand from producing efficient
outcomes
Collective Bargaining - answer✔representatives of the employer and the employees negotiate
the terms and conditions of employment that will apply to the employees
Union Density - answer✔the percentage of workers that are union members
Neoclassical Economics School - answer✔focuses on the economic activity of self-interested
agents, such as firms and workers, in competitive markets. Supply and demand, efficiency is the
goal. (also known as mainstream economics)
Human Resource Management School - answer✔focuses attention to the inside of a firm, takes
into account the welfare of the employees
Industrial Relations School - answer✔the labor problem is believed to stem from an inequality
of bargaining power between corporations and individual workers. it takes a group of workers
to fight against large corporations.
2|Page
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Critical Industrial Relations School - answer✔traditionally labeled "Marxist industrial relations",
believes the class or ideology that has the greatest power in society can design and control
institutions to serve their own interest. capitalism is the exploitation of employees.
Unitarist View - answer✔conflict is not seen as an inherent or a permanent feature of the
employment relationship; conflict is seen as a manifest of poor human resource management
policies. The Human Resource Management School has this view
Pluralist View - answer✔sees the workplace as characterized by multiple interest- a plurality on
interest. the Industrial Relations School has this view
Class Conflict - answer✔conflict is not limited to higher wages or better benefits; it is a social
conflict of unequal power relations
Union Wage Premium - answer✔unionized workers in the united states are generally estimated
to have wages approximately 15 percent higher than nonunion workers
Shock Effect - answer✔the presence of a union shocks managers out of complacency and forces
them to develop better managerial practices and policies that improve workplace efficiencies
including more formal human resources policies such as training programs and objectives
rather than subjective selection test
Labor Movement - answer✔a form of a social movement in which workers and unions from
multiple workplaces join together to pursue common interests, most frequently in the political
and social arenas
3|Page