30 MCQs on Industrial Relations with Answers
- Explore Industrial Relations: Understand employer-employee dynamics, labor laws, and dispute resolution. Test your knowledge with 30 MCQs, complete with answers and explanations, covering trade unions, collective bargaining, and more
Industrial Relations (IR) refers to the complex interactions between employers, employees, and their representatives, such as trade unions, within the workplace. It encompasses the study of employment relationships, collective bargaining, labor laws, dispute resolution, and workplace policies aimed at maintaining harmony and productivity. IR focuses on balancing the interests of workers (fair wages, safe working conditions) with those of employers (profitability, efficiency). Effective industrial relations foster cooperation, reduce conflicts, and promote equitable workplace practices, contributing to organizational success and economic stability.
1. What is the primary objective of Industrial Relations?
A) Maximizing profits
B) Ensuring workplace harmony
C) Increasing production
D) Reducing employee turnover
Answer: B) Ensuring workplace harmony
Explanation: Industrial Relations aims to foster cooperation between employers and employees, resolving conflicts and maintaining a harmonious workplace to enhance productivity and satisfaction.2. Which act in India governs trade unions?
A) Factories Act, 1948
B) Trade Unions Act, 1926
C) Industrial Disputes Act, 1947
D) Employees’ Provident Fund Act, 1952
Answer: B) Trade Unions Act, 1926
Explanation: The Trade Unions Act, 1926, regulates the formation, registration, and functioning of trade unions in India, ensuring their legal recognition.3. What is collective bargaining?
A) Individual negotiation for wages
B) Negotiation between employer and union
C) Government-mediated wage setting
D) Employee performance appraisal
Answer: B) Negotiation between employer and union
Explanation: Collective bargaining involves negotiations between employers and trade unions to determine wages, working conditions, and other employment terms.4. Which of the following is a cause of industrial disputes?
A) High employee satisfaction
B) Wage disparities
C) Effective communication
D) Flexible work hours
Answer: B) Wage disparities
Explanation: Wage disparities often lead to dissatisfaction among employees, triggering disputes between workers and management.5. What is a lockout?
A) Workers’ refusal to work
B) Employer’s closure of workplace
C) Government intervention in disputes
D) Temporary suspension of production
Answer: B) Employer’s closure of workplace
Explanation: A lockout is an employer’s action to temporarily close the workplace to pressure workers during a dispute.6. The Industrial Disputes Act, 1947, primarily deals with:
A) Employee recruitment
B) Resolution of industrial disputes
C) Workplace safety
D) Pension schemes
Answer: B) Resolution of industrial disputes
Explanation: The Industrial Disputes Act, 1947, provides mechanisms like conciliation, arbitration, and adjudication to resolve industrial disputes in India.7. What is the role of a conciliator in industrial disputes?
A) Enforce labor laws
B) Mediate between parties
C) Represent employees
D) Issue penalties
Answer: B) Mediate between parties
Explanation: A conciliator facilitates dialogue between disputing parties to reach a mutually acceptable solution without imposing decisions.8. Which of the following is a feature of a trade union?
A) Profit-making entity
B) Collective representation of workers
C) Government-controlled body
D) Individual employee advocacy
Answer: B) Collective representation of workers
Explanation: Trade unions represent workers collectively to negotiate better wages, conditions, and rights with employers.9. What is meant by ‘strike’ in industrial relations?
A) Employer’s refusal to hire
B) Workers’ refusal to work
C) Government ban on unions
D) Temporary layoff
Answer: B) Workers’ refusal to work
Explanation: A strike is a collective action by workers who stop work to protest against unfavorable conditions or demands.10. Which body in India oversees labor welfare?
A) Ministry of Finance
B) Ministry of Labour and Employment
C) Ministry of Commerce
D) Ministry of Education
Answer: B) Ministry of Labour and Employment
Explanation: The Ministry of Labour and Employment formulates policies and laws to promote labor welfare and regulate industrial relations.11. What is grievance handling in industrial relations?
A) Recruitment process
B) Addressing employee complaints
C) Wage negotiation
D) Performance appraisal
Answer: B) Addressing employee complaints
Explanation: Grievance handling involves resolving employee complaints systematically to maintain workplace harmony.12. Which of the following is NOT a method of dispute resolution?
A) Arbitration
B) Conciliation
C) Collective bargaining
D) Performance review
Answer: D) Performance review
Explanation: Performance review is unrelated to dispute resolution, which includes arbitration, conciliation, and collective bargaining.13. What is arbitration in industrial relations?
A) Informal negotiation
B) Binding decision by a third party
C) Employee-led protest
D) Government mediation
Answer: B) Binding decision by a third party
Explanation: Arbitration involves a neutral third party making a binding decision to resolve disputes between employer and employees.14. The term ‘retrenchment’ refers to:
A) Temporary suspension
B) Permanent termination of employees
C) Wage reduction
D) Employee promotion
Answer: B) Permanent termination of employees
Explanation: Retrenchment is the permanent termination of employees due to economic or operational reasons, regulated under labor laws.15. Which act regulates workplace safety in India?
A) Factories Act, 1948
B) Trade Unions Act, 1926
C) Payment of Wages.: Answer: A) Factories Act, 1948
Explanation: The Factories Act, 1948, mandates safety, health, and welfare measures for workers in factories.16. What is the purpose of a works committee?
A) Profit distribution
B) Promote employer-employee cooperation
C) Conduct recruitment
D) Enforce discipline
Answer: B) Promote employer-employee cooperation
Explanation: Works committees facilitate dialogue between workers and management to resolve issues and promote cooperation.17. Which of the following is a type of strike?
A) Lockout
B) Sit-down strike
C) Layoff
D) Retrenchment
Answer: B) Sit-down strike
Explanation: A sit-down strike involves workers stopping work but remaining at their workplace to protest.18. What is a labor court?
A) Recruitment agency
B) Judicial body for labor disputes
C) Trade union office
D) Training center
Answer: B) Judicial body for labor disputes
Explanation: Labor courts adjudicate industrial disputes, ensuring legal resolution under labor laws.19. What is the role of the International Labour Organization (ILO)?
A) Regulate global trade
B) Promote labor standards
C) Control industrial production
D) Monitor corporate profits
Answer: B) Promote labor standards
Explanation: The ILO sets international labor standards, promotes decent work, and protects workers’ rights globally.20. Which of the following is a bipartite mechanism?
A) Arbitration
B) Works committee
C) Labor court
D) Conciliation
Answer: B) Works committee
Explanation: A works committee is a bipartite mechanism involving representatives of workers and management to address workplace issues.21. What does the term ‘layoff’ mean?
A) Permanent termination
B) Temporary suspension of work
C) Wage increase
D) Employee transfer
Answer: B) Temporary suspension of work
Explanation: Layoff refers to the temporary suspension of work due to economic or operational reasons, with employees retaining their jobs.22. Which of the following is a preventive measure for industrial disputes?
A) Strike
B) Grievance redressal system
C) Lockout
D) Retrenchment
Answer: B) Grievance redressal system
Explanation: A grievance redressal system prevents disputes by addressing employee concerns before they escalate.23. What is the significance of the Minimum Wages Act, 1948?
A) Regulates overtime
B) Ensures fair wages
C) Mandates promotions
D) Controls layoffs
Answer: B) Ensures fair wages
Explanation: The Minimum Wages Act, 1948, ensures workers receive fair wages as per government-prescribed rates.24. What is a trade dispute?
A) Conflict between employees
B) Dispute between employer and union
C) Disagreement among managers
D) Customer complaints
Answer: B) Dispute between employer and union
Explanation: A trade dispute involves disagreements between employers and trade unions over employment terms.25. Which of the following promotes industrial peace?
A) Frequent strikes
B) Collective bargaining
C) Wage cuts
D) Lockouts
Answer: B) Collective bargaining
Explanation: Collective bargaining promotes industrial peace by fostering mutual agreements between employers and employees.26. What is the purpose of the Employees’ State Insurance Act, 1948?
A) Provide retirement benefits
B) Ensure health and social security
C) Regulate trade unions
D) Control layoffs
Answer: B) Ensure health and social security
Explanation: The ESI Act, 1948, provides health insurance and social security benefits to workers in case of illness or injury.27. Which of the following is a tripartite body?
A) Works committee
B) Indian Labour Conference
C) Labor court
D) Trade union
Answer: B) Indian Labour Conference
Explanation: The Indian Labour Conference is a tripartite body involving government, employers, and workers to discuss labor policies.28. What is meant by ‘adjudication’ in industrial relations?
A) Informal negotiation
B) Legal resolution by courts
C) Employee protest
D) Wage agreement
Answer: B) Legal resolution by courts
Explanation: Adjudication involves resolving disputes through legal processes in labor courts or tribunals.29. Which act regulates payment of bonuses in India?
A) Payment of Wages Act, 1936
B) Payment of Bonus Act, 1965
C) Minimum Wages Act, 1948
D) Factories Act, 1948
Answer: B) Payment of Bonus Act, 1965
Explanation: The Payment of Bonus Act, 1965, mandates the payment of bonuses to eligible employees based on profits.30. What is the role of a shop steward in industrial relations?
A) Manage company finances
B) Represent workers in union matters
C) Conduct employee training
D) Oversee production
Answer: B) Represent workers in union matters
Explanation: A shop steward is a union representative who advocates for workers’ rights and liaises with management.
Thank you team but plz could you clarify why mediation was not the answer as third party dispute resolutioner..