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Table 11.3 The Employees Are in a Contract Negotiation with Your Company

question 21

Multiple Choice

Table 11.3
The employees are in a contract negotiation with your company and you represent management. You are concerned with maximizing the results for both sides, while the union is focused on getting the best wages and working conditions possible, regardless of the cost to you. During a coffee break the union negotiator tells you he understands where you are coming from but there's only so much money to go around, and his people want as much as possible. Back at the table, you ask the union negotiator if he would put the retirement plan and health care plan on the table as well so you could make an offer to increase their wages. He refuses. Three months go by with no progress. You suggest arbitration by a third party. The union agrees only if both sides must accept what the arbitrator offers. You agree.
-Refer to Table 11.3. You have a/an ________ orientation to the bargaining process.

Definitions:

Economic Rent

The excess payment made to a factor of production over and above what is needed to keep it in its current use.

Land

In economics, it refers to all natural resources used to produce goods and services, one of the factors of production.

Profits

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Joseph Schumpeter

An economist known for his theory on business cycles and for coining the term "creative destruction" to describe the process of innovation in economics.