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HRM MODULE – D
Top MCQs
What we will study?
*High priority MCQs of Module D?
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Q1. The Contract Labor (Regulation and Abolition) Act, 1970 is
applicable to which of the following establishments?
a) Establishments with less than 10 contract laborers but they
should have written agreement.
b) Establishments with 50 or more permanent employees.
c) Establishments where 20 or more workmen are employed as
contract labor.
d) Establishments that employ only part-time workers.
Answer: C
Refer Page: 402, Topic: 15.4.1.
Explanation: Legislation on working Conditions:
The Contract Labor (Regulation and Abolition) Act, 1970:
Features and Main Provisions:
• The Act is applicable to every establishment in which 20 or more
workmen are employed or were employed on any day of the
preceding twelve months as contract labour.
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• It is also applicable to a contractor who employs or had
employed on any day in preceding twelve months 20 or more
workmen.
Q2. Which of the following is the main provision of The Bombay
Shops and Establishments Act, 1948?
a) Employees can do any changes in their own schedule for better
work.
b) Employees can work in each and every day for extra time to
increase their salary.
c) No employee should be asked to work more than 9 hours on any
day and 48 hours in a week.
d) Employee should be asked to work more than 9 hours on any
day and 48 hours in a week.
Answer: C
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Refer Page: 403, Topic: 15.4.2.
Explanation: The Bombay Shops and Establishments Act, 1948:
Features and main provisions:
• No employee should be asked to work more than 9 hours on any
day and 48 hours in a week.
• A shop or establishment (which includes commercial
establishment) is to be registered under the Act with the local
authority.
Q3. Which statement clearly defines a trade dispute?
a) It is a dispute between workmen and employer only.
b) It is a dispute between workmen and workmen only.
c) It is a dispute between employers and workmen, or workmen
and workmen, or employers and employers.
d) It is a dispute between stakeholders and board of directors only
and employees are not relevant part of it.
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Answer: C
Refer Page: 404, Topic: 15.4.3.
Explanation: Trade Union Act, 1926:
Salient features:
• Trade dispute' has been defined by the Act as a dispute between
employers and workmen, or workmen and workmen, or employers
and employers, which is connected with the employment or non-
employment or terms of employment or the conditions of labour.
The definition is almost similar to the definition of industrial
dispute given in the Industrial Disputes Act.
Q4. As per the Industrial Relations Code, 2020, how many workers
must be employed in an establishment for the constitution of a
Works Committee?
a) 500 or more workers. b) 10 or 20 more workers.
c) 5 or 60 more workers. d) 100 or more workers.
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Answer: D
Refer Page: 411, Topic: 15.5.8.
Explanation: Compliance Requirements:
Short Title Threshold for Requirement
Applicability
Works Committee. 100 or more Constitution of Works Committee
workers. consisting of representatives of
employer and workers.
Grievance Redressal 20 or more Constitution of Grievance
Committee. workers. Redressal Committees for
consisting of equal number of
members representing employer
and workers.
Preparation of draft 300 or more Employer must prepare draft
Standing Orders by workers. Standing Orders within a period of
Employer. six months from the date of
commencement of this Code.
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Q5. What are the key principles guiding the functions of a trade
union?
a) Unity is strength.
b) Equal pay for equal work.
c) Security of service-to ensure social and economic security for the
members.
d) All of the above.
Answer: D
Refer Page: 427, Topic: 16.2.1.
Explanation: Problems Faced by Trade Unions:
Traditionally, the unions function on three basic principles.
These are:
• Unity is strength.
• Equal pay for equal work.
• Security of service-to ensure social and economic security for the
members.
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Q6. If a bank records a 5% year-on-year (YoY) growth in operating
profit, how many incentive days are employees eligible to receive?
a) 5 days. b) 10 days.
c) Nil. d) 15 days.
Answer: A
Refer Page: 442, Topic: 16.4.8.
Explanation: Present Scenario and Emerging Changes:
S. No. YoY Growth in Operating No. of days for which Salary (Basic
Profit + DA shall be paid)
1. < 5% NIL
2. 5% to 10% 5 days
3. >10% to 15% 10 days*
4. >15% 15 days*
*3rd & 4th slabs are payable only if the Bank has Net Profit.
If a Bank has growth in Operating Profit of 5% & more, but there is
no Net Profit, then minimum 2nd slab of 5 days will be payable.
(The PLI will be applicable from FY-2020-21).
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Q7. _________ implies joint negotiation of a dispute between
management representatives on one side and those of the
employees, on the other?
a) Collaborative Bargaining. b) Collective Bargaining.
c) Contracts Bargaining. d) Customized bargaining.
Answer: B
Refer Page: 436, Topic: 16.4.1.
Explanation: 'Collective Bargaining' - Concept & Features:
'Collective Bargaining' implies joint negotiation of a dispute
between Management Representatives on one side and those of
the employees, on the other.
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Q8. Which type of collective bargaining is characterized by a ‘win-
loss’ situation, where one party’s gain is exactly the other party’s
loss?
a) Integrative Bargaining. b) Descriptive Bargaining.
c) Distributive Bargaining. d) Interactive Bargaining.
Answer: C
Refer Page: 437, Topic: 16.4.2.
Explanation: Distributive Bargaining: Under this bargaining, one
party's gain is another party's loss, i.e., it is a 'win-loss' situation,
which is not conducive for maintaining cordial industrial relations
in the organization.
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Q9. When was the first bi-partite settlement in the Indian banking
industry signed?
a) 1956. b) 1960.
c) 1965. d) 1966.
Answer: D
Refer Page: 440, Topic: 16.4.6.
Explanation: Collective Bargaining Process i.e., Bipartidism in
Banks:
There have so far been eleven bi-partite settlements in the
industry, as indicated below:
First bi-partite settlement. October, 1966.
Second bi-partite settlement. October, 1970.
Third bi-partite settlement. August, 1979.
Fourth bi-partite settlement. September, 1983.
Fifth bi-partite settlement. April, 1989.
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Note: The latest bipartite settlement for Indian bank employees,
known as the 12th Bipartite Settlement, was officially signed on
March 8, 2024, between the Indian Banks’ Association (IBA) and
the United Forum of Bank Unions (UFBU). This agreement is
effective retroactively from November 1, 2022, and will remain in
force until October 31, 2027.
Source: [Link]
Q10. Which of the following best defines the concept of a
grievance in the workplace?
a) A formal well-being letter to management expressing
appreciation.
b) A written letter of leave to the management of the organization.
c) A written complaint filed by an employee claiming unfair
treatment.
d) A written letter to the management requesting a job change.
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Answer: C
Refer Page: 446, Topic: 17.2.
Explanation: 'GRIEVANCE': CONCEPT AND DEFINITION:
Dale Yoder defines grievance as "a written complaint filed by an
employee claiming unfair treatment.” Keith Davis defines as "any
real or imagined feeling of personal injustice, which an employee
has, concerning his employment relationship."
Beach defined it as "any dissatisfaction or feeling of injustice in
connection with one's employment situation that is brought to the
notice of the management."
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Q11. Match the following in relation to Dissatisfaction, Complaint
and Grievance:
PART I PART II
x) Dissatisfaction. i) It is related to the work situation brought to the
notice of management.
y) Complaint. ii) It is a state or feeling of discontent whether
expressed or not.
z) Grievance. iii) It is dissatisfaction made known by one employee
to another.
a) (x)-(i), (y)-(ii), (z)-(iii). b) (x)-(ii), (y)-(iii), (z)-(i).
c) (x)-(iii), (y)-(ii), (z)-(i). d) (x)-(i), (y)-(iii), (z)-(ii).
Answer: B
Refer Page: 446, Topic: 17.2.
Explanation: 'GRIEVANCE': CONCEPT AND DEFINITION:
Experts have attempted to distinguish between dissatisfaction,
complaint and a grievance.
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Dissatisfaction is a state or feeling of discontent, whether
expressed or not.
Dissatisfaction made known by one employee to another is a
complaint.
Dissatisfaction related to the work situation brought to the notice
of management, is a grievance.
Q12. What are the major sources of ‘Conflict’ at workplace?
i) Status incongruence.
ii) Differences in value systems.
iii) Better quality work.
iv) Inadequate communication.
v) Competitive work environment.
a) (ii), (iii), (iv) and (v). b) (i), (ii), (iii), and (iv).
c) (iii), (iv) and (v). d) (i), (ii), (iv) and (v).
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Answer: D
Refer Page: 451, Topic: 17.5.2.
Explanation: Sources of 'Conflict' at Workplace:
Apart from these behavioral reasons, there could be other sources
of conflict in a workplace as under:
• Status incongruence: Differences in the status in an organization
involving a salary difference of employees with similar profile.
• Competitive work environment: A judicial approach to such goal
setting and a fair opportunity for all to succeed may help save the
situation.
• Differences in value systems: This is a common source of conflict.
People come from different backgrounds, different up-bringing,
different culture and religion at the work place.
• Inadequate communication: Many of the conflicting situations
arise due to improper, incorrect, inadequate communication in the
organization.
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Q13. What are the five styles of handling conflict as per Two-
dimensional model developed by Thoms and Kilmann?
a) Computing, Constructive, Average, Accuracy and Controlling.
b) Conversation, Comparing, Attrition, Article and Confirming.
c) Cementing, Centring, Affirmations, Consequences and
Conceptual.
d) Competing, Collaborating, Avoiding, Accommodating, and
Compromising.
Answer: D
Refer Page: 453, Topic: 17.5.4.
Explanation: Conflict Resolution Techniques: 'Two-Dimensional
Model' of Conflict:
Thomas and Kilmann (1974) have developed a popular framework
(see diagram down) that accounts for five styles of handling
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conflict: competing, collaborating, avoiding, accommodating, and
compromising.
High in concern for the self is the competing style, which is
characterized by a drive to maximize individual gain even at the
expense of others.
Q14. Which of these best captures the concept of a dilemma?
a) It is the situation with two competing extremes, where the
actors are faced with "neither... nor..." choice.
b) It is the situation with two competing extremes, where the
actors are faced with "either... or..." choice.
c) It is a situation with one competing extreme, where the actors
are faced with a "forgiving" choice.
d) It is a situation with no competing extremes, where the actors
are faced with challenges within an organization.
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Answer: B
Refer Page: 457, Topic: 17.6.1.
Explanation: 'Management Dilemma': Concept and Definition:
A 'dilemma' is a complicated issue created when a manager has to
accomplish more than one goal at a time, and at first glance there
is no right answer.
'Dilemma' can also be defined as is the situation with two
competing extremes where the actors are faced with "either...
or..." choice.
Q15. Which of the following is not included in the categories of
managerial decisions that typically involve worker participation?
a) Economic decisions. b) Personnel decisions.
c) External decisions. d) Social decisions.
Answer: C
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Refer Page: 465, Topic: 18.2.
Explanation: 'PARTICIPATION': CONCEPT & DEFINITION, TYPES:
Three groups of managerial decisions affect the workers of any
industrial establishment and hence, it is advisable that the workers
have a say in it.
• Economic decisions - methods of manufacturing, automation,
shutdown, lay-offs, mergers.
• Personnel decisions - recruitment and selection, promotions,
demotions, transfers, grievance settlement, work distribution.
• Social decisions - hours of work, welfare measures, questions
affecting work rules and conduct of individual worker's safety,
health, sanitation and noise control.
Q16. What is the minimum workforce size required to establish a
Joint Management Council?
a) 500 or more workmen. b) 400 or more workmen.
c) 300 or more workmen. d) 200 or more workmen.
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Answer: A
Refer Page: 466, Topic: 18.3.2.
Explanation: Joint Management Councils:
In the Industrial Policy Resolution in 1956 pertaining to the Second
Five Year Plan, the Joint Management Councils have their origin in
1958.
Joint Management Councils highlight the need for joint
consultation in public as well as private sector.
Joint Management Councils are established especially plant level in
units employing 500 or more workmen.
Q17. Expand the acronym ESOPs?
a) Existence Stock Option Plans.
b) Employee Stock Option Plans.
c) Executive Stock Option Plans.
d) Employer Stock Option Plans.
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Answer: B
Refer Page: 469, Topic: 18.3.6.
Explanation: Employee Stock Option Plans (ESOPs):
The latest in the area of workers' participation is the employee
stock option plans.
Essentially, this is a sort of incentive scheme, very common in
America.
The full form of ESOPs are Employee Stock Option Plans.
Q18. Which disciplinary approach emphasizes total impartiality, no
undue time-lag in action, logical consequences, and consistency in
managerial follow-up action?
a) Preventive Discipline. b) Hot Stove Theory.
c) Progressive Discipline. d) Situational Discipline.
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Answer: B
Refer Page: 474, Topic: 19.1.
Explanation: Disciplinary action delay can do positive harm to the
organization and affect the morale of other workers who are law-
abiding.
The application of- 'Hot Stove Theory' in matters of discipline
implies:
• Total impartiality while handling disciplinary matters.
• No undue time-lag in the action and effect.
• The consequences should be logical and the punishment for the
misbehaviour should be made known.
• There should be consistency in managerial follow-up action, i.e.
the outcome should not be at a large variance.
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Q19. Which of the following statement is related to necessity of
discipline management?
a) To identify the causes of indiscipline and analyze the reasons.
b) To identify regressive approach and create chaos in an
organization.
c) Not intended to identify the implications of employees' work in
an organization.
d) All of the above.
Answer: A
Refer Page: 474, Topic: 19.2.
Explanation: DISCIPLINE MANAGEMENT:
There are various approaches to discipline management, where it
is necessary to identify the causes of indiscipline, analyze the
reasons, try to convince employees-through counselling-that they
need to follow rules, and as a last resort, go in for punitive action.
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Q20. What are the other forms of employee participation in
management?
a) Participation through Collective Bargaining (CB).
b) Participation through Suggestion Form (SF).
c) Participation through Simplification Form (SF).
d) Both (a) and (b).
Answer: A
Refer Page: 467, Topic: 18.3.2.
Explanation: Other forms of Worker participation:
• Participation through Collective Bargaining (CB).
• Participation through Suggestion Schemes (SS).
• Participation through Quality Circles (QC).
• Employee Stock Option Plans (ESOPs).
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Q21. _________is an elaborate process which includes intent
listening by the superior and adopting a positive approach to guide
the employee the right way?
a) Collective Bargaining. b) Collaborative.
c) Counseling. d) Performance.
Answer: C
Refer Page: 475, Topic: 19.2.1.
Explanation: Employee – Counseling:
Counseling is an elaborate process which includes intent listening
by the superior and adopting a positive approach to guide the
employee the right way.
When it is noticed that an employee has committed an act of
misconduct which is of minor nature, the counselling process could
be helpful.
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Q22. Which of the following are included in principles of natural
justice?
i) No man should be a judge in their own cause.
ii) The employee proceeded against should be clearly informed of
the charges levelled against him/ her.
iii) The employees should not be given a chance to examine their
own witnesses.
iv) The punishment to be imposed should be commensurate with
the nature of the misconduct.
a) (i), (ii) and (iii). b) (ii), (iii) and (iv).
c) (iii), and (iv). d) (i), (ii) and (iv).
Answer: D
Refer Page: 477, Topic: 19.2.5.
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Explanation: Principles of Natural Justice:
The principles of natural justice, including later additions to these
principles, are enumerated below:
• No man should be a judge in their own cause.
• No one should be condemned unheard.
• The employee proceeded against should be clearly informed of the
charges levelled against him/ her.
• The punishment to be imposed should be commensurate with the
nature of the misconduct.
• The employee should be given a chance to examine their own
witnesses.
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Q23. Match the following: Level & Authority:
PART I PART II
i) Top Management. x) Sanction of Loans and Advances both Retail
and Wholesale.
ii) Senior Management. y) Large Medium Branches. Sanction of Loans
more in Retail.
iii) Middle Management. z) Processing of Loan Applications.
iv) Junior Management. t) Strategy and sanction of loans of large
amounts.
a) (i)-(z), (ii)-(y), (iii)-(t), (iv)-(x). b) (i)-(y), (ii)-(t), (iii)-(z), (iv)-(x).
c) (i)-(t), (ii)-(x), (iii)-(y), (iv)-(z). d) (i)-(z), (ii)-(t), (iii)-(x), (iv)-(y).
Answer: C
Refer Page: 487, Topic: 19.6.
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Explanation:
Level Authority
Top Management. Strategy and sanction of loans of large amounts.
Senior Regional Large Branch Level. Sanction of Loans and
Management. Advances both Retail and Wholesale.
Middle Large Medium Branches. Sanction of Loans more in
Management. Retail.
Junior Management. Processing of Loan Applications.
Q24. CVC stands for?
a) Central Vigilance Commission.
b) Collective Vigilance Commission.
c) Cooperative Vigilance Commission.
d) Constructive Vigilance Commission.
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Answer: A
Refer Page: 488, Topic: 19.7.
Explanation: NEED FOR VIGILANCE DEPARTMENT IN BANKS:
CVC stands for Central Vigilance Commission.
The Central government through a statute, constituted Central
Vigilance Commission (CVC) consisting of three Vigilance
Commissioners out of whom one is designated as Chief Vigilance
Commissioner.
It is a constitutional authority.
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Q25. Which of the following statement is correct about the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
Redressal) Act, 2013 (POSH Act)?
a) The main objective of this Act is to make the workplace safer for
women by preventing, prohibiting, and redressing acts of sexual
harassment.
b) The law was made effective in whole of India on December
30 ,2008 by the Ministry of Finance (Government of India) and the
Ministry for Women and Child Development.
c) Both (a) and (b).
d) None of these.
Answer: A
Refer Page: 492, Topic: 19.10.2.
Explanation: Compliance Rules of 'POSH ACT':
As discussed above, The Sexual Harassment of Women at
Workplace (Prevention, Prohibition Redressal) Act, 2013,
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commonly referred to as the 'POSH Act' is an Indian law enacted
with the objective of making workplaces safer for women by
preventing, prohibiting and redressing acts of sexual harassment
against them in the workplace.
The law was made effective in the whole of India on December 9,
2013, by the Ministry for Women and Child Development.
Q26. What are the responsibilities of the employers under the
POSH Act?
i) The provision of a safe working environment in the workplace.
ii) The constitution of an Internal Committee in every workplace
with more than 10 employees.
iii) The constitution of the Local Committee is required for every
District.
iv) An in-depth inquiry into all complaints of sexual harassment.
a) (ii), (iii) and (iv). b) (i), (iii) and (iv).
c) (i), (ii) and (iii). d) All of the above.
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Answer: D
Refer Page: 492, Topic: 19.10.2.
Explanation: Employers' Responsibilities Mandated under the Act:
1. Provision of a safe working environment in the workplace.
2. Constitution of an Internal Committee in every workplace with
more than 10 employees.
3. Constitution of the Local Committee in every District.
4. An in-depth inquiry into all complaints of sexual harassment.
5. Organization of workshops and awareness programmers at
regular intervals for sensitizing the employees with the provisions
of the Act.
6. Punishment for false and malicious complaint and false
evidence.
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Q27. Which of the following Act has not been subsumed in
Industrial relations Code 2020?
a) The Industrial Disputes Act, 1947.
b) The Industrial Employment (Standing Orders) Act.
c) The Bombay Shops and Establishments Act, 1948.
d) Trade Union Act, 1926.
Answer: C
Refer Page: 408, Topic: 15.5.
Explanation: INDUSTRIAL RELATIONS CODE 2020:
The Industrial Relations Code, 2020 which has been notified by the
Government of Gazette Notification No.60 dated 29th September
2020 was one of four Labor Codes that forms a part of the Central
Government's largest reform scheme in decades.
It subsumes three major Central laws that relate to industrial
dispute settlement and collective bargaining arrangements,
namely - (i) The Industrial Disputes Act, 1947 (ii) The Trade Unions
Act, 1926 (iii) Industrial Employment (Standing Orders) Act, 1946.
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Q28. Which of the following Acts is not considered a part of wage-
related legislation in India?
a) The Payment of Wages Act, 1936.
b) The Industrial Disputes Act, 1947.
c) The Payment of Bonus Act, 1965.
d) The Equal Remuneration Act, 1976.
Answer: B
Refer Page: 400, Topic: 15.3.
Explanation: Legal Aspects of personnel function:
2. Legislation on Wages:
• The Payment of Wages Act, 1936.
• The Minimum Wages Act, 1948.
• The Payment of Bonus Act, 1965.
• The Equal Remuneration Act, 1976.
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Q29. What is the maximum period of maternity leave for working
women?
a) 12 weeks. b) 15 weeks.
c) 29 weeks. d) 26 weeks.
Answer: B
Refer Page: 418, Topic: 15.7.3.
Explanation: The Maternity Benefit Act, 1961:
Features and main provisions:
• The Act applies to every establishment, factory, mine, etc., having
10 or more employees. The State Government can extend the
scope of the Act.
• The maximum period of maternity leave is – 26 weeks; (w.e.f.
1.7.2017) - eight weeks (w.e.f. 1.7.2017) before the date of delivery
and six weeks following that date.
• Maternity leave of 12 weeks is also allowed to mothers legally
adopting a child below the age of 3 months.
• This amendment is applicable w.e.f. 1.4.2017.
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Q30. __________ is an arrangement or practice in unionized
(organized) establishments under which an employer regularly
deducts union dues from the employees' wages and passes them
on to the union?
a) ‘Common-off’ facility. b) ‘Check-off' facility.
c) ‘Cons-off’ facility. d) ‘Conserve-off’ facility.
Answer: B
Refer Page: 429, Topic: 16.2.3.
Explanation: Check – Off Facility:
Check-off facility is one such measure. In simple parlances, 'Check-
off' facility is an arrangement or practice in unionized (organized)
establishments under which an employer regularly deducts union
dues from the employees' wages and passes them on to the union.
Check-off may require a written authorization from the employee
for the deduction.
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Q31. Which of the following is not included under the broad
categories of causes of ‘grievance’?
a) Management-oriented. b) Finance-oriented.
c) Inter/ Intra-union traits. d) Employee-oriented.
Answer: B
Refer Page: 447, Topic: 17.3.
Explanation: CAUSES & EFFECTS OF 'GRIEVANCE':
As explained above, a dissatisfied employee develops a grievance,
when he feels that there is an infringement/ jeopardy of the rights
and interests.
There may be various causes for development of grievance within
an employee.
Having regard to this factor responsible for the same, all these
causes can be grouped under three broad heads; viz.,
Management-oriented, Employee-oriented and Inter/ Intra-union
traits.
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Q32. Which theory advocates that “To err is human”?
a) Hot stove Theory. b) Equity Theory.
c) Reformative Theory. d) Organizational Justice Theory.
Answer: C
Refer Page: 475, Topic: 19.2.2.
Explanation: Reformative Theory:
The reformative theory advocates that "To err is human."
Where one has to take a view of inflicting punishment on the
employee for a proved act of misconduct, the disciplinary authority
decides what kind of punishment, will meet the ends of justice,
based on the kind of punishment which can be imposed for certain
act of misconduct.