ATI Leadership Practice Test Related

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In a unionized hospital, nurses receive compensatory pay for working holidays based on the hours worked with no extra compensation. Despite management refusing to consider changes to the compensatory pay system suggested by nurses during the annual employee satisfaction survey, a trend member listened to both parties and made non-legally binding recommendations. What is this type of settlement known as?

  • A. Collective bargaining
  • B. Mediation
  • C. Grievance
  • D. Binding arbitration
Correct Answer: B

Rationale: The correct answer is B: Mediation. Mediation is a voluntary process where a neutral third party helps facilitate communication and negotiation between conflicting parties to reach a mutually acceptable agreement. In this scenario, the trend member listened to both parties and made non-legally binding recommendations, which aligns with the definition of mediation. Collective bargaining (A) involves negotiations between labor unions and management to reach a legally binding collective agreement. Grievance (C) is a formal complaint resolution process within the organization. Binding arbitration (D) is a process where a neutral third party makes a final and binding decision to resolve a dispute. In this case, the involvement of a trend member making non-legally binding recommendations indicates the use of mediation as the type of settlement.