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Unit 13: Managing Industrial Relations - Practice Quiz

DEMGN581 60 Questions
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1 Which of the following is considered one of the three main actors in an industrial relations system?

Major actors and their roles in IR Easy
A. Consumers
B. Suppliers
C. Employers
D. Shareholders

2 The main role of trade unions in industrial relations is to:

Major actors and their roles in IR Easy
A. Protect and promote the interests of workers
B. Set national tax rates
C. Manage shareholder dividends
D. Maximise company profits

3 In industrial relations, the government mainly acts as a:

Major actors and their roles in IR Easy
A. Product distributor
B. Regulator and mediator
C. Trade union member
D. Direct competitor

4 Which party in industrial relations is primarily responsible for organising production and providing employment?

Major actors and their roles in IR Easy
A. Employers
B. Employees
C. Courts
D. Trade unions

5 Collective bargaining is mainly carried out between employers and:

Major actors and their roles in IR Easy
A. Suppliers
B. Auditors
C. Trade unions
D. Consumers

6 Which of the following is an economic factor influencing industrial relations?

Factors influencing IR Easy
A. Level of wages
B. Office decor
C. Colour of uniforms
D. Company logo

7 Labour laws and legislation are an example of which factor affecting IR?

Factors influencing IR Easy
A. Psychological factors
B. Legal and political factors
C. Geographical factors
D. Technological factors

8 Job satisfaction and worker attitudes fall under which category of factors influencing IR?

Factors influencing IR Easy
A. Economic factors
B. Legal factors
C. Technological factors
D. Psychological factors

9 Automation and the introduction of new machinery represent which factor influencing IR?

Factors influencing IR Easy
A. Economic factors
B. Social factors
C. Technological factors
D. Political factors

10 Which of the following best describes a healthy industrial relations climate?

Factors influencing IR Easy
A. Mutual cooperation between labour and management
B. Complete absence of communication
C. Constant legal disputes
D. Frequent lockouts and strikes

11 The unitary approach to industrial relations assumes that the organisation is:

Approaches to IR Easy
A. A political system of many groups
B. A purely legal contract
C. An integrated team with common goals
D. A battlefield of opposing classes

12 The pluralistic approach to IR recognises the existence of:

Approaches to IR Easy
A. Different interest groups with legitimate conflicts
B. No role for trade unions
C. Only one shared organisational interest
D. A single unchallenged authority

13 Which approach to industrial relations is associated with Karl Marx and class conflict?

Approaches to IR Easy
A. Systems approach
B. Human relations approach
C. Marxist approach
D. Unitary approach

14 In the unitary approach, trade unions are generally viewed as:

Approaches to IR Easy
A. Essential partners
B. Government agents
C. Unnecessary intruders
D. The main authority

15 The systems approach to industrial relations was notably developed by:

Approaches to IR Easy
A. John Dunlop
B. Frederick Taylor
C. Elton Mayo
D. Karl Marx

16 A grievance in the workplace is best described as:

Grievance handling procedure Easy
A. A training schedule
B. A marketing strategy
C. A company profit report
D. An employee's complaint of dissatisfaction

17 In a typical grievance procedure, a grievance is usually first raised with the:

Grievance handling procedure Easy
A. Managing director
B. Immediate supervisor
C. External consultant
D. Labour court

18 A well-designed grievance procedure should be:

Grievance handling procedure Easy
A. Costly and complex
B. Simple, prompt, and fair
C. Secret and delayed
D. Ignored by management

19 One key benefit of an effective grievance handling procedure is that it:

Grievance handling procedure Easy
A. Encourages strikes
B. Improves employee morale
C. Reduces productivity
D. Increases absenteeism

20 If a grievance is not resolved at lower levels, it is typically:

Grievance handling procedure Easy
A. Escalated to higher management
B. Turned into a promotion
C. Automatically dismissed
D. Forgotten by both parties

21 A newly formed manufacturing firm has no union yet. Workers approach the management for collective negotiation on wages. Which actor is currently missing from the classic three-actor IR system as described by Dunlop?

Major actors and their roles in IR Medium
A. Trade union (workers' organisation)
B. The employer or management
C. The government or state
D. The market and technological context

22 During an industrial dispute, a government-appointed officer helps both parties reach a voluntary settlement without imposing a decision. Which role of the state is being performed here?

Major actors and their roles in IR Medium
A. Arbitration by compulsion
B. Adjudication
C. Legislation
D. Conciliation

23 Which of the following best describes the role of a trade union in the industrial relations system?

Major actors and their roles in IR Medium
A. Setting the legal framework for disputes
B. Representing and safeguarding the collective interests of workers through negotiation, and providing a voice to workers while also engaging in collective bargaining over wages and conditions
C. Certifying skill standards for the industry
D. Maximising shareholder returns

24 An employers' association negotiates industry-wide wage standards on behalf of several member companies. What primary purpose does such an association serve for employers?

Major actors and their roles in IR Medium
A. Enforcing labour laws on behalf of the state
B. Recruiting workers for member firms
C. Collecting union membership dues
D. Presenting a unified employer stance in collective bargaining

25 In its capacity as an IR actor, the government protects workers by enacting minimum wage laws and safety regulations. This reflects the government acting primarily as a:

Major actors and their roles in IR Medium
A. Regulator and law-maker
B. Conciliator
C. Employer
D. Trade union sponsor

26 A company facing a sharp economic recession freezes wages and announces layoffs, triggering worker unrest. This situation illustrates the influence of which category of factors on industrial relations?

Factors influencing IR Medium
A. Technological factors
B. Political factors
C. Economic factors
D. Psychological factors

27 Automation reduces the need for manual labour in a plant, and unions resist the change fearing job losses. Which factor influencing IR is most directly at play?

Factors influencing IR Medium
A. Technological factors
B. Legal factors
C. Economic factors
D. Cultural factors

28 A change in the ruling party leads to new pro-labour legislation that strengthens union rights. This demonstrates the influence of which factor on IR?

Factors influencing IR Medium
A. Psychological factors
B. Economic factors
C. Institutional inertia
D. Political factors

29 Workers in a firm feel their contributions go unrecognised and that management does not listen to them, leading to low morale and frequent conflict. Which factor is chiefly responsible for the poor IR climate here, reflecting workers' perceptions, attitudes, and unmet needs for recognition and fair treatment within the organisation?

Factors influencing IR Medium
A. Legal factors
B. Technological factors
C. Psychological factors
D. Economic factors

30 Which combination correctly pairs an IR factor with its example?

Factors influencing IR Medium
A. Economic factor — cultural diversity of the workforce
B. Technological factor — inflation rate
C. Political factor — machinery upgrades
D. Legal factor — provisions of the Industrial Disputes Act

31 A manager believes that conflict between workers and management is unnatural and that everyone in the organisation shares a single common goal, so unions are seen as unnecessary intruders. Which approach to IR does this reflect?

Approaches to IR Medium
A. Systems approach
B. Marxist approach
C. Unitary approach
D. Pluralist approach

32 An HR head accepts that the organisation contains groups with legitimately different interests and treats conflict as inevitable, so unions are recognised as valid partners to be managed through negotiation. This best reflects the:

Approaches to IR Medium
A. Marxist approach
B. Human relations approach
C. Pluralist approach
D. Unitary approach

33 According to the Marxist (radical) approach, workplace conflict is fundamentally a reflection of:

Approaches to IR Medium
A. A temporary breakdown of shared organisational goals
B. Class conflict between capital and labour inherent in capitalist society
C. Poor communication between supervisors and staff
D. Inadequate grievance channels within the firm

34 Dunlop's systems approach explains industrial relations as an interaction of actors, contexts, and a web of rules. In this framework, wage agreements and workplace policies are best understood as the:

Approaches to IR Medium
A. Output (rules) of the IR system
B. Ideology binding the system
C. External economic context
D. Trade union ideology

35 Which statement most accurately contrasts the unitary and pluralist approaches to IR?

Approaches to IR Medium
A. The unitary approach relies on class struggle while the pluralist approach ignores interests
B. The unitary approach views conflict as abnormal, whereas the pluralist approach views it as inevitable and manageable
C. Both approaches deny that conflict can occur in organisations
D. The pluralist approach rejects trade unions while the unitary approach embraces them

36 An employee first raises a complaint about unfair overtime allocation with the immediate supervisor before escalating further. Placing the immediate supervisor at the first stage of the grievance procedure primarily helps to:

Grievance handling procedure Medium
A. Delay the grievance until it lapses
B. Bypass the union entirely
C. Resolve issues quickly at the level closest to the problem
D. Transfer the matter directly to a labour court

37 A grievance policy states that every complaint must be acknowledged within 48 hours and resolved within a fixed number of days. This feature reflects which principle of an effective grievance procedure?

Grievance handling procedure Medium
A. Managerial discretion to ignore minor issues
B. Anonymity of complainants
C. Promptness with defined time limits
D. Automatic escalation to arbitration

38 In a multi-step grievance procedure, if an employee is dissatisfied with the supervisor's response, the next appropriate action is usually to:

Grievance handling procedure Medium
A. Immediately go on strike
B. Escalate the grievance to the next higher level of management
C. File a case in civil court
D. Withdraw the grievance permanently

39 Which of the following is best described as a genuine grievance rather than a mere complaint?

Grievance handling procedure Medium
A. A casual remark about the canteen food
B. A rumour about a colleague
C. A personal preference for a different desk location
D. A formal expression of dissatisfaction relating to a perceived violation of terms of employment or company rules that an employee raises through the official channel expecting redressal

40 Why is it important that a grievance procedure includes the principle of allowing the aggrieved employee to be heard and to present their case?

Grievance handling procedure Medium
A. It speeds up disciplinary dismissals
B. It upholds natural justice and fairness in decision-making
C. It transfers the decision to external courts
D. It removes the need for documentation

41 A newly appointed labour minister argues that the state should confine itself to being a passive rule-setter, letting employers and unions bargain freely without intervention. According to Dunlop's IR systems theory, which critique best challenges this stance?

Major actors and their roles in IR Hard
A. The government has no legitimate role in IR because collective bargaining is a purely private matter between two parties
B. The government is a central actor whose role includes protective legislation, dispute adjudication, and shaping the shared ideology that binds the system
C. The government's only function is to collect labour statistics and publish them
D. The government should replace unions entirely and negotiate directly with individual workers to ensure fairness

42 In a tripartite forum, an employers' association and a union federation reach agreement, but the government body refuses ratification citing macroeconomic wage-inflation concerns. This scenario best illustrates which feature of the actors' interdependence?

Major actors and their roles in IR Hard
A. The government is subordinate to bipartite agreements and cannot withhold ratification
B. Unions are the only actor with genuine independent objectives in the system
C. Each actor pursues distinct objectives, so overlapping interests do not guarantee that all three will converge on a single outcome
D. Employers and unions always share identical objectives once they negotiate directly

43 A manager insists that a strike is proof of agitators and communication failure, since a well-run firm has fully aligned interests and 'one team, one goal.' Which theoretical approach underpins this reasoning, and what is its central blind spot?

Approaches to IR Hard
A. Systems approach; it reduces IR to a set of neutral procedural rules only
B. Unitary approach; it denies the structural legitimacy of divergent interests and treats conflict as pathological rather than inherent
C. Marxist approach; it treats the firm as a coalition of competing but legitimate interest groups
D. Pluralist approach; it overemphasises the inevitability of conflict between groups

44 A researcher claims that collective bargaining merely reforms the surface of the employment relationship while leaving the fundamental power imbalance rooted in ownership of capital untouched. This critique of pluralism is most consistent with which approach?

Approaches to IR Hard
A. Gandhian trusteeship approach
B. Unitary approach
C. Marxist (radical) approach
D. Human relations approach

45 Under the pluralist approach, the presence of trade unions and periodic conflict is best interpreted as:

Approaches to IR Hard
A. A legitimate and normal expression of divergent but reconcilable interests that require institutionalised negotiation
B. A sign that the organisation lacks any shared ideology among its actors
C. Evidence of an irreconcilable class struggle that bargaining can never contain
D. A temporary malfunction that disappears once management improves internal communication

46 Two firms operate in the same industry and country. Firm A has stable IR while Firm B faces frequent disputes despite paying higher wages. Which explanation is most consistent with an integrated view of the factors influencing IR?

Factors influencing IR Hard
A. Wages are the sole determinant of IR, so Firm B's data must be recorded incorrectly
B. Government policy alone explains all differences between the two firms
C. IR climate depends on the interaction of economic, psychological, and institutional factors, so fair procedures and trust can outweigh raw wage levels
D. IR outcomes are determined only by the personality of the union leader

47 A rapid shift to automation in a manufacturing plant triggers union resistance even though no layoffs are announced. Which factor category most directly explains the resistance?

Factors influencing IR Hard
A. Technological factors, which alter skill demands, job security perceptions, and control over work processes
B. Religious and cultural factors unrelated to the workplace
C. Global commodity price movements in unrelated sectors
D. Purely political factors linked to national elections

48 During a severe recession with high unemployment, union bargaining behaviour typically becomes more defensive. Which mechanism best explains this shift within the economic factors influencing IR?

Factors influencing IR Hard
A. Recessions eliminate the government's role, leaving unions in full control
B. Economic downturns have no measurable effect on bargaining posture
C. A weak labour market reduces workers' bargaining leverage, so unions prioritise job protection over aggressive wage demands
D. High unemployment strengthens strike effectiveness because replacements are unavailable

49 An employee's grievance about a supervisor's biased performance rating is filed at the first step, which happens to be with that same supervisor. Which principle of sound grievance procedure is most directly violated by this design?

Grievance handling procedure Hard
A. The first step should always bypass the immediate supervisor entirely for all grievances
B. Grievances must always be resolved at the highest level regardless of subject matter
C. The procedure should provide an impartial escalation route so a grievance is not adjudicated solely by the party complained against
D. Written documentation is unnecessary at any step of the procedure

50 A company boasts that 95% of grievances are 'closed' at Step 1 within 24 hours, yet employee surveys show rising dissatisfaction and repeat filings. What is the most likely diagnosis?

Grievance handling procedure Hard
A. The 24-hour closure proves the absence of any real workplace problems
B. The grievances are being escalated too slowly to higher steps
C. Speed is masking superficial disposal without genuine resolution, so unresolved root causes resurface as repeat grievances
D. The procedure is functioning perfectly and the survey must be invalid

51 In a multi-step grievance procedure, which sequence correctly reflects the conventional escalation order?

Grievance handling procedure Hard
A. Grievance committee → arbitration → departmental head → supervisor
B. Arbitration → grievance committee → immediate supervisor → departmental head
C. Top management → arbitration → immediate supervisor → union
D. Immediate supervisor → departmental head/manager → grievance committee or top management → arbitration

52 The Model Grievance Procedure in India emphasises time limits at each stage. What is the primary rationale for prescribing such limits?

Grievance handling procedure Hard
A. To prevent indefinite delay, contain escalation of discontent, and ensure prompt redressal before minor issues become disputes
B. To eliminate the immediate supervisor's involvement in all grievances
C. To transfer all grievances directly to statutory labour courts
D. To reduce the number of steps so grievances reach arbitration faster than negotiation

53 A federation of trade unions increasingly focuses on national policy advocacy and political affiliation rather than plant-level bargaining. Which risk to its core IR role does this shift most directly create?

Major actors and their roles in IR Hard
A. It transfers the union's statutory functions to the government permanently
B. It guarantees stronger workplace bargaining outcomes because political ties always translate into shop-floor gains
C. Politicisation may weaken the union's representative effectiveness on workplace issues and erode member confidence in day-to-day grievance handling
D. It removes the employer entirely as an actor in the IR system

54 Employers' organisations perform functions beyond individual firms. Which of the following best distinguishes their collective IR role from an individual employer's role?

Major actors and their roles in IR Hard
A. They coordinate a common employer stance, share bargaining intelligence, and represent members before government and in industry-wide negotiations
B. They replace the personnel department within each member company
C. They function as neutral arbitrators between unions and the state
D. They negotiate individual employment contracts on behalf of each worker

55 A consultant recommends 'high-trust HRM' arguing individual commitment can substitute for collective bargaining, effectively marginalising unions. Critics say this is a modern reappearance of an older frame. Which frame?

Approaches to IR Hard
A. The unitary approach, repackaged as sophisticated HRM that assumes shared goals and treats unions as unnecessary
B. The Marxist approach, because it foregrounds class conflict
C. The pluralist approach, because it institutionalises multiple interest groups
D. The systems approach, because it emphasises external rules and ideology

56 The Gandhian approach to industrial relations is best characterised by which underlying principle?

Approaches to IR Hard
A. Class antagonism resolved only through the abolition of private ownership
B. A single shared goal in which conflict signals managerial failure
C. Trusteeship and non-violent settlement of disputes, viewing capital and labour as partners with mutual moral obligations
D. A purely procedural balance of competing organised interests

57 A country liberalises its economy, exposing domestic firms to intense global competition. Analysts predict pressure on IR. Which combined effect is most consistent with the factors influencing IR?

Factors influencing IR Hard
A. External competition has no influence on internal industrial relations
B. Competitive pressure pushes firms toward flexibility and cost control, straining wage bargaining and job security even as productivity demands rise
C. Global competition uniformly increases wages and job security for all workers
D. Liberalisation removes the state as an IR actor and stabilises union power

58 Two plants have identical pay and technology, but one has participative management and transparent communication and enjoys far better IR. This best demonstrates the influence of which factor?

Factors influencing IR Hard
A. Psychological and institutional factors such as perceived fairness, voice, and trust in management
B. Legal factors, since statutes fully determine plant-level relations
C. Technological factors, since machinery determines cooperation
D. Economic factors, since pay differences drive all IR outcomes

59 An arbitrator's award in a grievance case is challenged by management as exceeding the arbitrator's authority. Which principle governing the final step of grievance handling is central to evaluating this challenge?

Grievance handling procedure Hard
A. The arbitrator must confine the decision to the terms of reference and the agreement, since authority derives from the parties' submission
B. The arbitrator may decide any workplace matter regardless of the submission agreement
C. Arbitration awards are advisory only and never binding on either party
D. The arbitrator can overturn the collective agreement itself if it seems unfair

60 A manager decides to resolve grievances informally and verbally to keep the workplace friendly, avoiding written records entirely. Which drawback most seriously undermines this practice?

Grievance handling procedure Hard
A. Informal handling always violates statutory law regardless of context
B. Lack of documentation prevents tracking patterns, ensuring consistency, and providing evidence if the matter escalates to a dispute
C. Written records are the only way to make any grievance procedure faster
D. Verbal resolution guarantees grievances are never resolved at Step 1
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