REVIEW LESSON FOR

NQESH
Education Program Supervisor
Region VI-A (CALABARZON)

Leadership in the New

Millennium

Different Theories and

Concepts of Distributed
Leadership

Distributed leadership is characterized as a

form of collective leadership. (Gronn, 2002)
Leadership resides not solely in the
individual at the top, but in every person
who in one way or another, acts as a
leader. (Goleman, 2002)
It is the glue of the common task or goal
improvement of instruction and a common
frame of values for how to approach that
task.
(Elmo, 2001)

Different Theories and

Concepts of Distributed
Leadership

Richard Elmo links distributed leadership to the

schools fundamental task of helping students
learn.
It is reshuffling assignments and calling for a
fundamental shift in organizational thinking that
redefines leadership as the responsibility of
everyone in the school. In this view, the term
simply means giving other school staff members
some the principals current responsibilities.
The principal retains a key role, not the chief
doer, but as the architect of organizational
leadership.

Comparison of Classical and

Shared Leadership

CLASSICAL LEADERSHIP
SHARED LEADERSHIP
Displayed by a persons
Identified by the quality of
position in a group of
peoples interactions
hierarchy.
rather than their position.
Leadership is evaluated by
whether the leader solves
problems or leaders
provide solutions and
answers.

Leadership is evaluated by
how people are working
together. Everyone works
to enhance the process
and to make it more
fulfilling.

Distinct differences
between leaders and
followers; character, skill,
etc.

People are interdependent.

All are active participants
in the process of
leadership.

Living Leadership Roles

In living leadership, managers will
become managers exercising leadership
and living leaders will take on more
creative roles. There will exist circles
within circles. Management will NOT
disappear and reappear as something
more enhanced. Management will
evolve in place assuming a wider
circle of responsibility.

Living Leadership Roles

Living leadership has responsibilities.
These responsibilities exist in a plane of
action and non-action, of being first, doing
second. Leadership responsibilities can be
assumed by any member of the
community of organization and
leadership responsibilities are nonexclusive and overlapping with
management activities, as they are nonresident and UNDEFINED. By making
leadership non-resident and UNDEFINED,
we now create universal living
leadership.

Living Leadership Roles

Living leadership will co-create with
management and process members
around identity, awareness,
creativity, information dissemination,
knowledge learning and transfer.

Living Leadership Roles

Living leaders no longer envision, they
seek beyond vision to being, beyond
structure and prediction to infinite
variation and possibility, beyond
purpose to awareness, beyond self to
connectedness, beyond taking charge
to non-attachment, beyond control to
disruption and beyond competition to
sustainability.

Living Leadership Roles

Traditional leadership focused on
taking charge while living leadership
will be everything BUT taking charge!
Living leadership create awareness and
see opportunities to grow in any
situation. These are leaders who are
enterprise optimists.
Also known as Just-in-Time Leadership.

The different theories and

concepts of leadership roles
requires a lot of considerations
namely:
Leadership is not an issue of
personality but one of providing
directions, a sense of future!
Leadership is all about purpose.
Purpose creates consensus,
commitment and collegiality.
Management is about maintenance.
Both are required but leadership is the
key to developing a shared Vision.

 Leaders have attitude they have a

point of view they challenge current
expectations. They adapt, never adopt,
everything is judged according to the
school shared beliefs (the Vision).
Leaders focus on what is important. Make
it explicit what the school is to achieve.
They limit and focus on innovations,
believing in doing thins well. Quality and
not quantity, leaders provide clarity and
sense of shared destiny and in turn, a
sense of security and hope. Clarity
reduces complexity and in turn develops
empowerment and decision making.

Leaders spread optimism.

Leaders communicate.
Leaders always expect the best.
Leaders treat people with empathy.
Leaders must be seen as trustworthy.
Leaders support those who need the
most.
Leaders hold people accountable to
agreed commitments.
Leaders give recognition to those who
show initiative or appropriate behavior.

The Developmental Stages

of a Healthy Working
Environment
1. Forming - an exercise titled Reviewing
Our History Then and Now gives
teachers/staff an opportunity to share
significant events and turning points
throughout the schools history. This is
the stage where new and old teachers
recall how their relationships were
formed and how events have affected
those relationships over time.

The Developmental Stages

of a Healthy Working
Environment
2. Norming - this is a way in which

teachers and principal review a set of

internal norms that affect the way they
get along and work together.
3. Storming - this is where the faculty staff
meet to hold periodic Straight Talk
sessions, a practice that can address
storming issues directly and prevent a
long term storming conflicts from
escalating and becoming a destructive
force among the faculty.

The Developmental Stages

of a Healthy Working
Environment

4. Performing - all school personnel evaluate

their contribution to the improvement of
the school and student outcomes. If there
were things that went wrong and of there
are still things that need to be done
everyone is given the chance to
communicate his/her opinions, suggestions,
recommendations, etc. It would also
strengthen camaraderie if school leaders
provide celebrations for jobs well done.

Two Types of Incentives

Extrinsic : If you behave this way, do this
job, I will provide you with something that
will enable you to satisfy your needs.
Extrinsic Rewards
- Other powered controlled by
principal
- Tend to be ineffective: relation of
behavior to
reward is unclear
- Inefficient
- Often the only element in a job

Two Types of Incentives

Intrinsic : If you behave this way, do
this job, you can satisfy your needs
directly because the very act of
carrying out the job will be self-fulfilling
or will build up your self-esteem.
Intrinsic Rewards
- Inner-powered come from self
- Tend to be more effective
- Efficient

SET 1

KEY TO CORRECTIONS
1.
2.
3.
4.
5.
6.
7.
8.

C
C
C
C
C
C
C
NC

9.
10.
11.
12.
13.
14.

C
C
C
C
C
C

Developing Effective
Leaders

Managers are people

who do things right,
while leaders are people
who do the right thing.
- Warren Bennis, Ph. D. , On
Becoming a Leader

Transactional and Transformational

Leadership
(James McGregor Burns)

Transactional Leadership revolves around the

leaders capability to sway his followers to act
in such a manner that the leader hopes for in
exchange for something that the followers
want. Leadership is based on this exchange of
services for kinds of rewards that the leader
controls. According to transactional
leadership supporters, this type of leadership
enables people to identify what has to be
done to come up with the preferred results.
This kind of leadership may also boost the
peoples confidence and motivation.

Transactional and Transformational

Leadership
(James McGregor Burns)

Transformational Leadership is
evident when both leaders and
followers support one another to
reach the next level of motivation
and morality. This type of leadership
is centered on creating shared vision.
On making communication better,
and increasing joint decision-making
processes.

Effective leaders build excellence.

They do not command it. Excellence
is being the best that you can be
within the limits of your
responsibilities in your
organization. Excellence starts with
having leaders who have good and
strong character who fit in the
whole process of leadership. The
first step is being person of
principled character.

Traits of Good Leaders

Integrity is a complete and
unreserved allegiance to the higher
individual and professional principles.
Leaders should be truthful and just.
Integrity is tantamount to following a
set of values and sticking to those
values. Integrity builds a basis for
cultivating trust within an
organization.

Traits of Good Leaders

Loyalty is a three-pronged trait, which
involves truthfulness to the leader, the
colleagues, and the juniors. A leader
should demonstrate an incontestable
show of loyalty before they can look
forward to their staff to be loyal to him.
General George S. Patton: There is a great deal
of talk about loyalty from the bottom to the
top. Loyalty from the top down is even more
necessary and much less prevalent.

Traits of Good Leaders

Commitment is total deduction to
responsibility. A leader must
demonstrate total dedication to the
organization and what the
organization stands for, this includes
the staff of the organization.

Traits of Good Leaders

Energy is an eagerness and determination
to take the initiative. Going back to history,
it can be noted that leaders who succeed
have established the significance of having
physical and mental energy which help
them approach their designated job
aggressively. Their training incorporated
physical and mental conditioning, which
allowed them to look and act the part. The
moment a decision is made, they have the
determination and endurance to keep on
right track and task is accomplished.

Traits of Good Leaders

Decisiveness is a leaders enthusiasm to
act a certain manner. A leader must be
self-confident in making the right decisions
at the right time. After the decision has
been made, it has to be communicated to
the organization. Decisiveness also
involves being prepared to accept the
responsibility and the consequence of the
action. Leaders should be accountable for
what they have decided upon, even if they
have made the wrong decisions.

Traits of Good Leaders

Selflessness is foregoing personal
ambitions for bigger reasons. A leader
should always think of the mission and
care for the welfare of personnel in the
organization. Being prepared to sacrifice
is an inherent trait of a leader.
Selflessness includes the guts to face and
conquer obstacles, and make the hard
decisions. The ability to confront a tough
situation head-on rather than avoiding it
by passing the decision to someone else
requires courage and strength.

Principles of Leadership
1. Take responsibility. The position we hold is an
indicator of the responsibilities or authority
we hold. Everyone has a responsibility,
develop it in yourself and among your
people. If you decide to do or act on
something, remember that each action has a
consequence. Be prepared to take
responsibility for your actions. When you
make a mistake, take responsibility for it.
Those under your leadership and guidance
will respect your for that. A leader should get
the trust of those under his guidance. Trust is
earned. This principle is very important. Instil
this into the minds of your teachers.

Principles of Leadership
2. Know yourself and seek selfimprovement. Do not lie to yourself. Get
in touch with your soul, your whole being.
Know what your strengths are and
nurture them. Know what your
weaknesses are and turn them into
strengths. Know the things that you can
and you cannot do. Ask for an evaluation
of yourself, even from your subordinates.
Be open to criticisms. Make your teachers
follow your example.

Principles of Leadership
3. Set the example. Clear rules and
standards should exist in a school to
prevent chaos. As a school head you
must set an example to your
teachers. You must be able to teach
them to think, not just to believe and
obey. People respect leaders who
provide inspiration, strength, and
guidance.

Principles of Leadership
4. Develop responsibility among your
teachers and pupils. If you are able
to do this, they will take the initiative
when needed. Things will be done.
You will be able to develop leaders.
You will be able to delegate to them
some tasks. Expect them to be
responsible for their actions too.

Principles of Leadership
5. Ensure that a job is understood, supervised
and accomplished. Make sure that your
teachers know what to do after you have given
them instructions. Make them ask questions.
Also, verify if they have understood the
instructions. Supervise your teachers while
they are doing the task to ensure that it is
being done properly. If they have mistakes
along the way, make corrections when and
where needed. Encourage them when they are
doing well. After the task is done, inspect it and
praise your people for a job well done. Clarify
this leadership principle to them. Explain it to
them carefully and make them understand its
importance.

Principles of Leadership
6. Know your teacher and look after their
welfare. Know each of them by name. Know
what is going on with their lives. Ask them
questions. Be genuinely interested in them, in
what they do. Know their abilities, what they
excel in, and how they were trained. Know
what training they still need to develop their
craft. Know them personally. The better you
know them, the better you will be able to lead
them and do as you do. Look our for their
well-being, their health, their personal life,
and their needs. Watch out for them always.

Principles of Leadership
7. Keep every teacher informed. When
there are orders coming from the
higher office, inform every personnel
about them. Explain to them about
the orders, about what is going on.
They are the ones who will help you
in making sound and timely decisions.
If they know what is happening, and if
they are well informed, they will be
able to accomplish their jobs better.

Principles of Leadership
8. Set attainable goals. To ensure
success and increased self-esteem of
teachers and other personnel, make
sure that you give tasks that are
according to the capabilities of your
teachers. Give them assignments
according to what they are trained to
do.

Principles of Leadership
9. Know all aspects of your job. Be
technically proficient. This goes without
saying. A leader who is not proficient in
his job is a useless one, Try to keep
abreast of the new technologies in your
job. For example, know how to use a
computer in administration and
management. Familiarize yourself with
competencies needed in your job as a
principal. Master those skills. Know how
things are done and what is needed to
get the job done.

Principles of Leadership
10. Make sound and timely
decisions. For this principle you
must follow principle number 9.
It will help you accomplish your
job and help you make sound
and timely decision.

Principles of Leadership
11. Develop teamwork. Make your
teachers learn the value of teamwork.
Make them look after themselves.
Develop their confidence in themselves,
individually and as a team. If you have a
cluster of people who merely work
together because they have to, then
things do not get done. But if you have a
team who are high in spirits and people
who have high morale, the job gets done
faster, more efficiently and more
effectively.

How Effective Leadership

Works
Establishing the route to be
followed by everybody to
accomplish a task
Vision is a statement which encompasses
the general purpose of working together
towards a scenario for the future.
Mission is a written declaration of the
organizations purpose

How Effective Leadership

Works
Aligning people behind your vision
Once the vision and mission are clear, the
leader has to ensure that those are
essential in achieving it are completely on
board. This means knowing what you need
and who can supply it, and then gaining the
commitment of those people. The result is
that your chosen followers act in concert.

How Effective Leadership

Works

Implementation

Exemplifying stability to be a beacon in the

fog of change and uncertainty is to be a valued
leader.
Being committed to the development of others
to have your teachers doing things that might
have been your responsibility is not a sign of
failure; it is the hallmark of an excellent leader.
Managing individuals performance effectively
make sure that your criteria in evaluating
performance are clear.
Making sure that good performance is
acknowledged to inspire people to do better,
you must recognize them for their achievement.

Hone Your Teachers

Leadership Skills
Leadership rests not only upon
ability, not only upon capacity;
having the capacity to lead is not
enough. The leader must be willing
to use it. His leadership is then
based on truth and character. There
must be truth in the purpose and
will power in the character.
- Vince Lombardi

Hone Your Teachers

Leadership Skills

PRACTICAL LEADERSHIP SKILLS

1. Sustain or develop the self-worth of your

teachers.
2. Focus on the problem, instead of attacking
the person.
3. Persuade your teachers to express their
opinions and to make suggestions.
4. Give your teachers enough time to think
through the problem and to suggest a
solution.
5. Set a specific follow-up date to talk to your
teachers.
6. Coach and counsel when necessary.

SET 2

KEY TO CORRECTIONS
1. T
2. T
3. F. A vision statement is a written
statement of what the organization
should look like in a certain number of
years.
4. F. Leaders should praise not only those
who do outstanding work but also
those who are dependable, i. e. Those
who do good work most of the time.

T
T
F. This is coaching.
F. Employees need counselling if their
personal problems are affecting their
work.
9. F. Communication per se is not a source
of conflict. Poor communication or the
lack of it can be a source of conflict.
10. T
5.
6.
7.
8.

SET 3

MANAGEMENT &
LEADERSHIP
CONCEPTS AND
APPLICATIONS

1.
2.
communication

upward

Upward communication takes place when

information is travelling from someone lower
on the hierarchy to someone higher on it.
Downward communication takes place when
information is travelling from someone higher
on the hierarchy to someone lower on it.
Horizontal communication takes place
between parties on the same level of
hierarchy.
There is no kind of communication as
backward or forward.

2. 3. more hierarchical
A hierarchical organization is
characterized by formal authority,
procedures and rules, clearly defined
division of labor and promotions based
on skills.
As an organization expands, the number
of employees increases. This will result
to adding managers who will oversee the
workers and operation of the business.

3.

Behavioral Management Theory

The behavioral management theory focuses on

employees as individuals, as part of work groups, as
persons with needs to be met by the organization.
Quality Management Theory attempts to improve the
performance of delivering high quality goods or
services.
Classical Management Theory focuses on how to
improve productivity and device guidelines to mange
the complex organizations that emerged.
Quantitative Management Theory is the quantitative
or management science approach. The emphasis is
on the applications of quantitative or mathematical
approaches to management problems.
Contingency Management Theory is based on the
premise that the actions or approaches manager
should take depend on the situation and its variables.
It looks for the most effective way to deal with any
situation or problem.

4. 2. by having its students

take a
standardized
admission
exam
Feedforward controls are future-directed.
They are designed to detect and
anticipate deviations from standards at
various points throughout the processes.
A standardized admissions exam prescreens applicants to ensure that they
possess the skills necessary to meet with
success at the school.

5. 3. people
Organizational development is a
companywide long-term plan that
make major changes on the people. It
strives to maximize organizational
effectiveness as well as individual work
satisfaction.

6. 1. crisis
Before an organization can evolve to the
next stage of growth, a crisis is usually
encountered. For instance in the
creativity phase, the organizations
founder may be overburdened with
responsibilities and may have conflict
with the employees. This could lead to
the appointment of managers, a new
level in the hierarchy.

7. 4. Confrontation
Confrontation is a process where conflicting parties
verbalize their positions and areas of disagreement.
This is more heavily stress-related setting than a
consensus seeking approach. The outcome hoped for
is a reason for the conflict and eventually resolve it.
Avoidance is the approach where conflict is ignored.
Smoothing is an approach where conflict is managed
by playing down differences among parties.
Compromise is the approach where each party is
required to give up something and find middle
ground.
Collaboration is the approach where each party work
together to solve the conflict.

8. 3. Process-oriented
Process-oriented change increases
productivity and efficiency.
Strategic change improves the companys
strategy to meet its objectives.
People-centered change makes
adjustments to employee attitudes and
behaviors.
Structural change focuses on the
hierarchy, goal, or systems.

9. 2. unfreezing
Changing stage is next after unfreezing.
After determining the problems or what
is lacking in the system, appropriate
changes should be made.
Refreezing is where new behavior and
procedure are reinforced.
There is no stage as freezing and
reinstating.

10. 2. Individual decision-making processes

are
usually more time-consuming
than group
decision-making
processes.
Group decision making processes is more time
consuming since it needs time for debates.
(1) true The process draws on a greater pool of
ideas from contributing members.
(3) true The decision must be beneficial to
everyone. Therefore, it may not be the best
possible decision rather than a compromise
among the members.
(4) true - Since group decision represents the
preference of the majority of the employees.
(5) true Groupthink is a situation wherein the
members goes along the opinion of the group.

11.3. Status quo

Driver is a force of change intended for
solving a problem.
Resister is a force of change intended
to prevent solving a problem.
Mission statement states the reasons
why an organization exists and what it
states for.
Quota is a share that a member is
bound to contribute.

12. low-level concern with people

and
high-level concern with
production.
The authoritarian leadership style

values the success of the organization

rather than the employees.
(1) This is a characteristic of the
impoverished leadership style.
(3) This is a characteristic of the middleof-the road style.
(4) This is a characteristic of the country
club
style.
(5) This is a characteristic of the team
style.

13.5. responsibility
Responsibility is the obligation to carry out
ones assigned task to the best of ones ability.
(1) Policy provides guidelines to follow when
dealing with important areas of decision
making.
(2) Standards are quantitative or qualitative
measuring device designed to help monitor
the performances of the employees.
(3) Work schedule delegates which employees
or groups of employees will be assigned for
which tasks, and the dates by which various
elements of these tasks must be completed.
(4) Procedure is a step-by-step directions in
which activities or tasks are to be carried out.

14. 4. pygmalion effect

Pygmalion effect is the concept of self-fulfilling
prophecy, that is individuals will act according to
what others expect them to.
(1) Projection is the act of attributing ones idea or
emotion to another.
(2) Classifying is assuming something about someone
because he is part of a certain group.
(3) Selective perception is concentrating on an
aspect of a situation that is compatible with ones
own belief.
(5) Stereotyping is associating a characteristic to an
individual based on his race, ethnicity, age group, or
gender.

15.3. zero-based budgeting

Zero-based budgeting forces each part of an
organization to justify with specifics each of
the operations it wishes to fund.
(1) Top-down budgeting places the
responsibility at a managerial level one or
two steps above that of unit managers.
(2) Bottom-up budgeting places responsibility
in the hands of those who have direct
knowledge of the environment and the
marketplace.
There is no such thing as lateral and
inflexible budgeting.

16. 3. a secretary who can grant

approval for
use of the
conference room.

Staff authority is limited and need not be

obeyed.
(1) and (4) are examples of line authority. Line
authority defines the relationship between the
superior and his subordinates.
(2) This is an example of functional authority.
Functional authority is authority delegated to
an individual over specific activities
undertaken by personnel in other
departments.
(5) A new employee undergoing job
orientation does not have authority.

17.3. brainstorming
Brainstorming is a group effort at generating
ideas and alternatives that can assist a particular
manager in making decisions or solving problems.
(1) Groupthink is the phenomenon of group of
members to go along with the opinion of the
group.
(2) Decision tree is a graphic representation of
the actions a manager can take and how these
actions relate to the future events.
(4) Flow chart is a graphic representation of a
procedure.
(5) Conference is a formal meeting of people with
a shared interest usually takes place over several
days.

18. 1. improvement to
management
information
system (MIS)
Indirectly interactive forces are
political, economic, legal, sociocultural
or technological in nature.
Choices (2), (3), (4) and (5) are all
examples of directly interactive forces.

19. 3. authority
Authority is the right to make decisions that
commit the organizations resources or the legal
right of a manager to tell someone to do or not
to do something.
(1) Power is a persons ability to influence
results.
(2) Responsibility is the obligation to carry out
ones assigned task to the best of ones ability.
(4) Accountability means being answerable for
the results of ones actions.
(5) Leadership is the process of influencing a
group or an individual toward the
accomplishment of goal setting or goal
achievement.

20. 1. expert power

Personal power is based on a persons
personality, traits and knowledge. Expert
power is possessed by persons who have
demonstrated their superior skills and
knowledge. Therefore, expert power is a
form of personal power.
(3) Positional power is based on the position
of an individual in the hierarchy. The higher
the position, the greater the power.
(2) Punitive and reward powers are
examples of positional power. Individual who
have positional power have the ability to
grant favors or cause discomfort to others.

21. 4. Group members must

agree on
issues relevant
to the project
at hand.
It is highly improbable that all the
members of a group agree on issues
at hand. The remaining choices are
all criteria for a group to be a team.

22. 3. teams enter the

storming phase
with
clarity about what their
teams mission is.
Storming phase is characterized by
conflict and competitiveness. The team
must enter this stage with a clear
knowledge about their mission so that
when conflict arises, they will still be
able to decide based on their objectives.

 (1) Forming stage is where members become

familiar with one another and their task. The team
have not yet built a cohesive community at the end
of this stage. That is achieved in the norming stage.
(2) In the norming stage, the team focuses on
building a cohesive community by collecting ideas
and opinions from each member, identifying and
resolving issues, and brainstorming. This stage is
not the most productive stage rather, the
performing stage.
(4) The adjourning stage is not characterized by
sharp focus on achieving team goals. This stage
focuses on recognizing the team solidarity and
achievement.
(5) Not all teams proceeds through all the stages of
development.

23.3. Functional authority

Functional authority is the authority
delegated to an individual or
department over specific activities
undertaken by personnel in other
departments. It can violate the unity of
command principle when an individual
has two direct superiors.

 (1) Line authority defines the relationship

between superiors and subordinates.
(2) Staff authority is advisory in nature.
Managers whose role is to provide advice
or technical assistance are granted
advisory authority.
(4) Decentralized authority disperses
authority within an organization structure
usually to those in the lower levels.
(5) Hierarchical authority focuses on
selective concentration on centralization.
This concentrates on authority in the
upper levels.

24. 2. joint venture

Joint venture happens when two competing
companies work together to meet foreign
market demands.
(1) Wholly-owned subsidiary is when a
company purchases all or the controlling
interest of a foreign company.
(3) Global strategic partnership is a business
approach where two firms make a long-term
arrangement to produce new products that
will dominate the international market.
(4) Exportation is a situation where an
organization sell its products to foreign
market.
(5) Embargo is a situation where there is an
official ban on trade or other commercial
activity with a particular country.

25. 2. implementing programs

quickly
and
inexpensively.
Implementing a TQM program is neither
fast nor inexpensive. It actually requires
more time and capital. The company
using TQM program wants to make sure
of the quality of their product.

26.1. overall work output

Outsourcing is an approach where a
company obtains goods or services by
contract from another company, either local
or foreign . This method will likely increase
the overall work output of company since it
increases the pool of workers to whom tasks
may be assigned.
All the other choices will likely to decrease.
Hiring new in-house employees would mean
adding more office space, buying more
equipment and allotting budget for
employees benefits. Outsourcing enables
the company to eliminate all these
additional expenses.

27. 3. It utilizes a highly

automated
system.
Continuous process production is a
system that transforms raw materials
into goods by constantly feeding the
raw materials through an automated
system. It relies on technology therefore
it does not require large labor force. It is
flexible and not rigid in structure.

28.2. learning organizations

Learning organizations develop a
sound philosophy on change. The
organization and employees integrate
new ideas into established system to
produce better ways of doing things.

 (1) Bureaucracy is a formal structure based

on procedures with a number of channels
through which issues must pass before
arriving at a decision.
(3) Informal organization is a network of
personal and social relationships that arise
spontaneously as people interact with one
another in a work environment.
(4) Multinational organizations have
operating facilities, not just sales office in
several foreign countries as well as business
transactions with foreign companies.
(5) Wholly-owned subsidiary is when a
company purchases all or the controlling
interest of a foreign company.

29.5. grievance
(1) Negotiation happens when two parties
agree to work to resolve a labor dispute.
(2) Mediation happens when a third party
is requested to facilitate a resolution of a
negotiation.
(3) Arbitration happens when the third
party is given the authority to decide on
how the dispute will be resolved.
(4) Appraisal the review of that measures
the performance of an employee.

30.2. Storming

31.2. Job orientation

Job orientation integrates the employee into
the organization. This procedure gives
information about the organizations policies,
rules and objectives.
(1) Twinning is a situation in which two or
more employees divide a single job.
(3) Work specialization is the division of a task
into separate jobs.
(4) Mentoring is a situation where a
knowledgeable individual guides a less
experienced individual.
( 5) Job enlargement is redesigning a job to
include a greater variety of tasks.

32. 4. The organization

becomes more
decentralized.

Empowerment gives employees

autonomy and authority to
accomplish certain tasks. The
organization becomes more
decentralized since authority is
distributed mostly on the lower
level of the hierarchy.

33.2. Demotion
Demotion cannot be considered
separation since the employee is still
with the company. He is merely
transferred to a lower position in the
hierarchy.
All the other choices are considered a
separation. They would end the
relationship of the employees with
the company.

34.2. unity of command

Unity of command states that each employee
should report only to one supervisor.
(1) Span of control is concerned with the
number of subordinates each manager should
have to direct.
(3) Work specialization is the division of a task
into separate jobs.
(4) Job orientation is bringing a person into
the specific working environment with
emphasis on socialization, the specific work,
and the work environment.
(5) Mission statement states the companys
objectives, views and beliefs.

35.2. Economic
(1) Political concerns involve an unstable
government in a country it does business in.
(3) Legal concerns involve differences in laws
concerning business in other countries as to
what they were accustomed to.
(4) Technological concerns involve difference
in the level of technology of partner
companies with ones own.
(5) Social and Cultural concerns include
language barrier. The brand-new of a
multinational company when translated to
another language may change its meaning
or may have a lesser-known meaning that
can lead to embarrassment for the company.

36.4. centralization

37.2. team structure

38. 5. focus on only a few

functional
areas of the
organization.
The term Total Quality itself implies a
focus on all levels and areas of the
company not on selected only.

39.3. Working conditions

The working conditions of the
employees is considered a
maintenance factor since it requires
continuous maintenance. The area
must be conducive to working and safe
for everyone.

40.3. Process-oriented
Process-oriented changes are applied
in manufacturing products. They
increase productivity and efficiency.

41.4. performance
An incentive-based system encourages
employees to perform better and to
maximize their capabilities.

42.1. Job rotation

(2) Job enrichment allows those interested to
satisfy some of their psychological needs.
(3) Job enlargement increases the variety or
the number of tasks a job includes.

43. 5. cancelling the employee

workers
compensation
insurance.

This is a mandatory benefit of an

employee thus it cannot be
cancelled by the company.

44.1. demotion
Demotion is a movement from one
position to another which has less pay or
responsibility attached to it. Demotions
can be used for punishment, but most
organizations refuse it as an option,
preferring instead to suspend the
employee or asses a financial penalty.

 (2) Promotion is a movement by a person into a

position of higher pay and greater
responsibilities. Promotions reward competence
and ambition. They act as incentives to perform
above average.
(3) Transfer represents a lateral move from one
position to another that has similar pay and
responsibility level.
(4) Lateral move is a move from one position to
another one on the same level. It does not
involve promotion or demotion.
(5) Layoff is the result of downsizing. The
employee is terminated not because he has
done something improper but because the
company may be cutting on operational
expenses.

45.4. Differentiation
strategy

(1) Single-use plan is used only once since it is

designed for non-recurring situation.
(2) Contingency plan is an alternate plan that
can be used in the event that the original plan
is not workable due to changing circumstances.
(3) Cost leadership strategy strives to keep its
operating costs low by being efficient and
maintaining tight controls.
(5) Bureaucracy is a formal structure based on
procedures with a number of channels through
which issues must pass before arriving at a
decision.

46.2. organization chart

An organizational chart is a visual presentation of
the companys structure.
(1) Decision tree is a graphic representation of the
actions a manager can take and how these action
relate to future events.
(3) Mission statement states the companys
objectives, views and beliefs.
(4) Payroll is a list of individuals in the organizations
who are entitled to receive salary.
(5) Procedure manual contains a step-by-step
directions for carrying out various jobs in the
organization.

47. 4. rewards and their methods

of
attainment should be
uniform for
all comparable
recipients.

Rewards and their methods of attainment

should not be uniform for all comparable
recipients. Employees have varying sets
of skills to offer an organization, therefore
they should be given the opportunities to
achieve rewards in a variety of ways
depending on what would they value or
appreciate most.

48. 1. making a job more

interesting
Redesigning a job to include a
greater variety of tasks can make it
more interesting. This can motivate
employees fro job enlargement.

49. 3. Reviewing the

candidates
application

Reviewing the application form of a

candidate is the first step in
determining if he is qualified for the
position he is applying for. This step
eliminates those applicants who are
inappropriate for the position based
on their background and experience.
The other choices can be done in any
order.

50. 5. Financial-ratio analysis

(1) Job analysis is a step that requires a person
to research jobs to determine what they call for
in the way of education, skills, aptitudes, and
their environmental working conditions.
(2) Payback analysis is the evaluation of
investment alternatives by comparing the length
of time necessary to pay back their initial costs.
(3) Force-field analysis depicts the change
process as one which must overcome a persons
or organizations status quo or existing state of
equilibrium the balance between forces for
change and forces that resist change.
(4) Decision Analysis is the step in decisionmaking process that involves determining the
advantages and disadvantages of each of a
number of possible solutions.

51. 4. is one of the cornerstone

of the
private enterprise
system.

Competition affects both the

businessperson and the consumer. For the
businessperson, competition is the key to
being and staying sharp in the product
where and when it is needed, and place a
premium on product improvement. The
consumer in turn benefits from this
competition by having a better quality and
variety of product available.

52.3. its gross domestic

product
The economic system serves as the
allocator of resources and ultimately,
the determining factor in what goods
and services are produces, how much is
produces, who is to produce, and who
will receive the goods and services.

53. 1. dominates the

distribution of
industry.
(2), (3), (4) and (5) are all describing
large businesses.

54. 4. to provide information on

a
current basis to
people who
are
managing the business.
Financial statements are needed by those
managing the business to determine the
current financial status of the company.
These can be used in decision making
regarding the budget of the company or
possible business transactions.

55. 4. free-rein
Free-rein is characterized by the leaders
encouraging the individual or group to
function independently.
(1) Supportive approach is characterized by
the managers support to his subordinates
in attaining their goals. This is done by
removing barriers, developing mutual goalsetting opportunities, encouraging positive
risk-taking and providing stability.
(2) Participative approach is characterized
by the managers involving the
subordinates in the decision.
(5) Motivator approach is the same as the
supportive approach.

56. 3. readjusts operations to

make a
slightly different
product.
An intermittent production process is
occurring at irregular intervals or not
steady. This is used by a company that
readjusts its operations to make a slightly
different product to meet the current
demand of its market.

57.4. incurs an obligation to

pay.

58.5. 5h3 law of large

numbers.
Insurable risk is the idea that the person
considering transferring the risk must
stand to suffer a financial loss before he
or she will be allowed to purchase
insurance on a given risk.
Insurable interest is a relationship
between the insured and the beneficiary.

59. 2. It is adequate to have

information
somewhere in
the
company when it is
needed.
Management Information System is a

formal method of providing management

with accurate and timely information so
that managers can make decisions and
carry out the managerial functions and
operations effectively. Information must
be readily available to the managers for
decision making.

60. 5. Information on the

overall
financial
picture of the
organization.
Top-level managers need information on
the overall picture of the company since
they make decision affecting the whole
company not just a particular department.

61.2. financial analysis

Choices (1), (3) and (4) are not related to
accounting. Choice (5) focuses on the
proper management of the finances of the
company.

62.2. current ratio

Liquidity ratio is the ratio used to
determine the ability of the enterprise
to raise enough cash in short period of
time to pay its current debts. The most
common liquidity ratio is the current
ratio. It is determined by dividing the
current assets by current liabilities.

63.1. mediation

64.1. lobbying
Self-policing is the process of keeping
order or maintaining control within the
organization without accountability to the
government.

65.5. involuntary
bankruptcy
Bankruptcy is a situation where a
company is unable to pay its debts. If
the creditors petition the court and not
the company for bankruptcy, then this
is called involuntary bankruptcy.

66. 1. Business are

interdependent.
Businesses depend on one another as
customers and suppliers. Businesses are
customers for other businesses. The
action taken by each independently
influences the success or failures of the
others. If a company that is the major
customer of a small business supplier
goes out of the business, there is a very
high probability that the smaller business
will follow suit.

67. 3. must be aware of the

economy
and its impact.
Critical to decision making and business
operation is the pattern or cycle of
events in the economy. The periods of
economic expansion or contraction
influence the operations of a business
and its decision making in the areas of
employment, income, output, and prices.

68. 1. inflation
Inflation is a general increase in the levels of
prices over a period of time. It impacts on the
price of goods and services. This means that the
factors of production cost more.
(2) Recession decribes a low point of business
activity and a low point in the business cycle.
(3) Bankruptcy is a situation where a company is
unable to pay it debts.
(4) A fiscal policy relates to deliberate changes in
taxes and government spending for the purpose
of changing capital investment, income, and
employment.
(5) Contraction is a period in the business cycle
where business operations slow down. During this
period unemployment increase. Business cut back
on their production of goods and money is tight.

69.3. the ability to leverage

High technology devices have
provided leverage to their users. It
also provided power by their ability to
accomplish their tasks for faster or
with far greater efficiency than the
devices they replace.

70. 4. changing where the work

is
performed.
With technology, work is not confined in
the traditional office setting. It also allows
people in different geographic location to
work on a project with one another (using
computer interaction or
telecommunications).