BusinessChapter 93 min read

Labor Relations & HRM Exam Answer Analysis

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1. Labor Relations Basics

Parties to labor relations

  • Employees & labor unions ↔ Employers & employer associations
  • Government (third-party / NLRB)

Labor relations approaches

  • Unitarist: management and employees share common interests
  • Pluralist: conflicting interests acknowledged; collective bargaining required
  • Radical: structural conflict (Marxist perspective)

Collective bargaining under the NLRA

  • Mandatory subjects: wages, hours, working conditions, safety
  • Permissive subjects: management participation (voluntary)
  • Prohibited subjects: core management prerogatives (illegal to bargain)

2. Dispute Resolution

Dispute resolution ladder

  • Direct negotiation → Mediation → Arbitration → Work stoppages

Mediation

  • Third-party makes non-binding recommendations
  • No enforcement power
  • Federal Mediation and Conciliation Service (FMCS)

Arbitration

  • Third-party issues binding decision
  • Compulsory arbitration: imposed without mutual consent (rare in US private sector)
  • Voluntary arbitration: agreed by both parties

Work stoppages

  • Strike: employees refuse to work
  • Lockout: employer defensive measure (bars employees from workplace)

3. HRM Exam Wrong-Answer Traps

  1. HRM 5 functions = Planning, Staffing, Development, Maintenance, Separation (Staffing/recruiting is only ONE function)
  2. OJT = on-the-job (workplace); Off-JT = off-site/classroom (do not confuse)
  3. Kirkpatrick = Reaction → Learning → Behavior → Results (4 levels)
  4. Job description = job duties/tasks; Job specification = required KSAs
  5. Validity without reliability is meaningless (Reliability is a necessary — but not sufficient — condition for validity)
  6. Halo effect = one trait colors overall evaluation
  7. Maslow = Physiological → Safety → Social → Esteem → Self-Actualization
  8. Herzberg: Pay = hygiene factor (NOT a motivator)
  9. Job enrichment = vertical expansion (NOT horizontal)
  10. Transformational leadership = Vision, Intellectual stimulation, Individualized consideration, Idealized influence

4. Organizational Behavior Wrong-Answer Traps

  1. Adams’ Equity Theory = compare own input/output ratio to referent’s ratio
  2. Vroom’s Expectancy = Expectancy × Instrumentality × Valence (if ANY factor is 0, motivation = 0)
  3. Goal-setting = specific + challenging goals (difficult but achievable)
  4. Variable-ratio reinforcement = strongest schedule; most resistant to extinction
  5. Lewin’s change model = Unfreeze → Change → Refreeze (3 stages)

5. Key Concept Cards

Job Enrichment = Vertical; Job Enlargement = Horizontal ★★★★★ : Enrichment adds authority and responsibility; enlargement adds more tasks at the same level. Memory cue: Enrich = up; Enlarge = across

Vroom: Any Zero = Zero Motivation ★★★★★ : Expectancy, Instrumentality, and Valence must all be greater than zero. Memory cue: Vroom = multiplication

Labor Relations = 3 Parties ★★★★☆ : Employees, Employers, Government (NLRB/FMCS). Memory cue: Labor = triangle of three


6. Practice Quiz

Q. Why is job analysis the foundation of all HRM functions?

Job analysis produces two outputs — job descriptions (duties/tasks) and job specifications (KSAs required) — that anchor every HR function. Staffing: job specs set selection criteria. Training: job descriptions define skill gaps. Performance appraisal: job content becomes evaluation criteria. Compensation: job evaluation determines pay levels. Without job analysis, HR functions lose consistency and defensibility.

Q. What is the difference between a collective bargaining agreement (CBA) and the collective bargaining process itself?

Collective bargaining is the negotiation process between a union and an employer. A CBA (also called a labor contract) is the written agreement that results from that process. Under the NLRA, once a CBA is ratified, its terms set the floor for individual employment conditions — individual contracts cannot lawfully undercut CBA minimums. The typical CBA duration in the US is 3 years (vs. the Korean maximum of 2 years). Either party may request renegotiation 60–90 days before expiration.

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