CHAPTER 13 – KEY

Employee & Labor Relations

1. Which term refers to an unwritten contract that is created when an employee agrees to work
for an employer but no agreement exists as to how long the parties expect the employment to
last?
A) temporary assignment
B) contract employment
C) employment at will
D) right-to-work law
Explanation: C) Employment at will is a legal doctrine that specifies that employment may be
terminated by either the employer or employee for any reason. "The employment-at-will doctrine
avows that, when an employee does not have a written employment contract and the term of
employment is of definite duration, the employer can terminate the employee for good cause,
bad cause, or no cause at all.".
Difficulty: Easy
2. The state of employee self-control and orderly conduct that indicates the extent of genuine
teamwork within an organization is referred to as ________.
A) ethics
B) discipline
C) punishment
D) internal employee relations
Explanation: B) Discipline is the state of employee self-control and orderly conduct that
indicates the extent of genuine teamwork within an organization. A necessary but often trying
aspect of internal employee relations is the application of disciplinary action.
Difficulty: Easy
3. What involves invoking a penalty against an employee who fails to meet established
standards?
A) metrics
B) probation
C) disciplinary action
D) internal employee relations
Explanation: C) A necessary but often trying aspect of internal employee relations is the
application of disciplinary action. Disciplinary action invokes a penalty against an employee who
fails to meet established standards.
Difficulty: Easy
4. In order to be most effective, disciplinary action should be a ________ process.
A) learning
B) subjective
C) negative
D) painful
Explanation: A) The purpose of disciplinary action is to alter behavior that can have a negative
impact on achievement of organizational objectives, not to chastise the violator. Thus, the intent
of disciplinary action should be to ensure that the recipient sees disciplinary action as a learning
process rather than as something that inflicts pain.
Difficulty: Easy
5. What disciplinary action approach is intended to ensure that the minimum penalty
appropriate to the offense is imposed?
A) hot stove approach
B) performance discipline method
C) progressive disciplinary action
D) disciplinary action without punishment
Explanation: C) Progressive disciplinary action is intended to ensure that the minimum penalty
appropriate to the offense is imposed. The process of giving a worker time off with pay to think
about whether he or she wants to follow the rules and continue working for the company is
called disciplinary action without punishment.
Difficulty: Easy
6. Maria is chronically tardy to work. In response, Maria's manager has given Maria time off
with pay to think about whether she wants to follow the rules and continue working for the
company. Which disciplinary method is Maria's manager most likely using?
A) progressive disciplinary action
B) hot stove approach
C) disciplinary action without punishment
D) punitive disciplinary action
Explanation: C) The process of giving a worker time off with pay to think about whether he or
she wants to follow the rules and continue working for the company is called disciplinary action
without punishment. The approach is to throw out formal punitive disciplinary action policies for
situations such as chronic tardiness in favor of affirming procedures that make employees want
to take personal responsibility for their actions and be models for the corporate mission.
Difficulty: Moderate
7. What is the most severe penalty an organization can give to an employee?
A) suspension
B) transfer
C) termination
D) demotion
Explanation: C) Termination is the most severe penalty that an organization can impose on an
employee; therefore, it should be the most carefully considered form of disciplinary action.
Suspensions, transfers, and demotions are less severe since the worker remains employed.
Difficulty: Moderate
8. Companies possess the burden of establishing just cause in a(n) ________.
A) severance pay agreement
B) exit interview
C) employment contract
D) interpersonal employment-at-will document
Explanation: C) Just cause is a standard for determining whether to terminate an employee and
the standard is based on whether an employee violated company policy or work rules and the
severity of the violation. Employers that embrace the at-will doctrine are not compelled to justify
a termination decision. However, in an employment contract, just cause separates the basis for
termination from that of a mass layoff because of economic reasons or exercise of at-will rights
by requiring a reason for termination. In union settings, most collective bargaining agreements
require just cause for discipline and discharge. If a union files a grievance over the termination of
a union member, the employer typically has the burden to show just cause existed for the
termination during a labor arbitration hearing.
Difficulty: Easy
9. Compensation designed to assist laid-off employees as they search for new employment is
known as ________.
A) COBRA
B) premium pay
C) severance pay
D) workers' compensation
Explanation: C) Severance pay is compensation designed to assist laid-off employees as they
search for new employment. Unemployed workers may be eligible for extended health benefits
through COBRA, but they are required to pay for it.
Difficulty: Easy
10. Which term refers to the process of moving a worker to a lower level of duties and
responsibilities with a reduction in pay?
A) transfer
B) discipline
C) demotion
D) outplacement
Explanation: C) Demotion is the process of moving a worker to a lower level of duties and
responsibilities, which typically involves a reduction in pay. In outplacement, laid-off employees
are given assistance in finding employment elsewhere.
Difficulty: Easy
1. Which term suggests a one-time change in the organization and the number of people
employed?
A) demoting
B) downsizing
C) bankrupting
D) outplacing
Explanation: B) Downsizing, also known as restructuring or rightsizing, is essentially the
reverse of a company growing; it suggests a one-time change in the organization and the number
of people employed. Typically, both the organizational structure and the number of people in the
organization shrink for the purpose of improving organizational performance.
Difficulty: Easy
12. Which term refers to a lateral movement of a worker within an organization?
A) demotion
B) termination
C) promotion
D) transfer
Explanation: D) The lateral movement of a worker within an organization is called a transfer. A
promotion is the movement of a person to a higher-level position in the organization, while a
demotion is the movement of a person to a lower-level position.
Difficulty: Easy
13. The movement of a person to a higher-level position in the organization is referred to as a
________.
A) promotion
B) transfer
C) demotion
D) termination
Explanation: A) A promotion is the movement of a person to a higher-level position in the
organization, while a demotion is the movement of a person to a lower-level position. The lateral
movement of a worker within an organization is called a transfer.
Difficulty: Easy
14. Which of the following is a method of revealing the real reasons employees leave their
jobs?
A) qualitative evaluation
B) performance appraisal
C) selection interview
D) exit interview
Explanation: D) An exit interview is a means of revealing the real reasons employees leave their
jobs; it is conducted before an employee departs the company and provides information on how
to correct the causes of discontent and reduce turnover. They provide a company with a valuable
source of objective feedback.
Difficulty: Easy
15. Through what means may personality clashes between two valued employees be effectively
handled?
A) promotions
B) transfers
C) demotions
D) layoffs
Explanation: B) Transfers are an effective means of dealing with personality clashes. Some
people just cannot get along with one another. Because each of the individuals may be a valued
employee, a transfer may be an appropriate solution to the problem. Promotions, demotions, and
layoffs would be less appropriate.
Difficulty: Moderate