HCAD 760 EXAM REVIEW QUESTIONS
WITH ACCURATE SOLUTIONS 2026
▶ Where we are heading with management: Answer: Authoritarianism
remains but is steadily diminishing in prevalence, particularly in higher-
order jobs
Legalism as a primary management style is steadily being replaced by the
humanistic approach (but some legalistic traits will always be present,
particularly in crisis situations)
Humanistic managers provide fair and more inclusive workplaces because
they believe that doing so is the proper way to conduct themselves,
manage others, treat people and improve productivity and retention
▶ Arbitration: Answer: A legal alternative to litigation ("alternative conflict
resolution")
May be voluntary or specified in a contract
Parties in a dispute present their positions to a neutral third party for
resolution (arbitrator)
Results can be binding or non-binding
With binding arbitration, the decision of an arbitrator can be converted into
a legal judgment
Purpose of arbitration is to Reach a Decision
▶ Advantages of Arbitration: Answer: Permits all participating parties and
the arbitrator to observe any damage or other problems for themselves -
particularly useful in determining fault regarding disclosure and "expert
matters"
Arbitrators are not bound by legal precedent
In situations involving customers, goodwill is not usually damaged
Arbitration saves time, is flexible and usually less costly than trial
Arbitration can usually be conducted in a private setting so others will not
be aware of its proceedings
▶ Disadvantages of Arbitration Answer: The choice of an arbitrator, as
defined in a contract, may limit the options of individuals to select an
arbitrator. Therefore, arbitration panels may not be "balanced"
, Critics argue that arbitration can be unfair to an individual in a dispute with
a large organization
Absence of legal representation can be harmful to individuals (vs. a
corporation)
Arbitration proceedings are rarely public
▶ Mediation: Answer: A different "alternative conflict resolution" option
Mediator's goal is to reach a compromise that is fair and acceptable to both
sides in a dispute
Process is less formal than arbitration
Mediator has no power to impose a solution
Mediated agreement is not legally binding unless ordered so by a court
No formal rules of evidence or set procedures to follow. However, legal
representation is common
▶ Procedures: Answer: Arbitration uses rules of evidence and procedures
that are less formal than those followed in trial courts
Binding arbitration similar to a court proceeding in that an arbitrator has the
power to impose a decision
In "final offer arbitration," an arbitrator is required to choose between the
proposals of the parties
Arbitrators may not exceed the limits of their authority in their award (no
punitive damages)
▶ Certification: Answer: Certification of arbitrators is based on specific and
substantive knowledge related to a case at hand
Standard for certification of arbitrators and mediators is often by
membership in a specialized organization
▶ Legal Aspects: Answer: Arbitrators are not bound by precedent or rules
of procedure
Have latitude in matters such as accepting evidence, participating in the
proceedings, questioning witnesses, and reaching conclusions
May visit sites outside of a hearing room, seek additional evidence, or call
on expert witnesses
An arbitrator can decide to allow the parties to be represented by legal
counsel, but this is NOT routine
▶ Decisions: Answer: Arbitrator normally renders a decision in writing
WITH ACCURATE SOLUTIONS 2026
▶ Where we are heading with management: Answer: Authoritarianism
remains but is steadily diminishing in prevalence, particularly in higher-
order jobs
Legalism as a primary management style is steadily being replaced by the
humanistic approach (but some legalistic traits will always be present,
particularly in crisis situations)
Humanistic managers provide fair and more inclusive workplaces because
they believe that doing so is the proper way to conduct themselves,
manage others, treat people and improve productivity and retention
▶ Arbitration: Answer: A legal alternative to litigation ("alternative conflict
resolution")
May be voluntary or specified in a contract
Parties in a dispute present their positions to a neutral third party for
resolution (arbitrator)
Results can be binding or non-binding
With binding arbitration, the decision of an arbitrator can be converted into
a legal judgment
Purpose of arbitration is to Reach a Decision
▶ Advantages of Arbitration: Answer: Permits all participating parties and
the arbitrator to observe any damage or other problems for themselves -
particularly useful in determining fault regarding disclosure and "expert
matters"
Arbitrators are not bound by legal precedent
In situations involving customers, goodwill is not usually damaged
Arbitration saves time, is flexible and usually less costly than trial
Arbitration can usually be conducted in a private setting so others will not
be aware of its proceedings
▶ Disadvantages of Arbitration Answer: The choice of an arbitrator, as
defined in a contract, may limit the options of individuals to select an
arbitrator. Therefore, arbitration panels may not be "balanced"
, Critics argue that arbitration can be unfair to an individual in a dispute with
a large organization
Absence of legal representation can be harmful to individuals (vs. a
corporation)
Arbitration proceedings are rarely public
▶ Mediation: Answer: A different "alternative conflict resolution" option
Mediator's goal is to reach a compromise that is fair and acceptable to both
sides in a dispute
Process is less formal than arbitration
Mediator has no power to impose a solution
Mediated agreement is not legally binding unless ordered so by a court
No formal rules of evidence or set procedures to follow. However, legal
representation is common
▶ Procedures: Answer: Arbitration uses rules of evidence and procedures
that are less formal than those followed in trial courts
Binding arbitration similar to a court proceeding in that an arbitrator has the
power to impose a decision
In "final offer arbitration," an arbitrator is required to choose between the
proposals of the parties
Arbitrators may not exceed the limits of their authority in their award (no
punitive damages)
▶ Certification: Answer: Certification of arbitrators is based on specific and
substantive knowledge related to a case at hand
Standard for certification of arbitrators and mediators is often by
membership in a specialized organization
▶ Legal Aspects: Answer: Arbitrators are not bound by precedent or rules
of procedure
Have latitude in matters such as accepting evidence, participating in the
proceedings, questioning witnesses, and reaching conclusions
May visit sites outside of a hearing room, seek additional evidence, or call
on expert witnesses
An arbitrator can decide to allow the parties to be represented by legal
counsel, but this is NOT routine
▶ Decisions: Answer: Arbitrator normally renders a decision in writing
