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171 Cards in this Set

  • Front
  • Back
IPFF Standards are intended to:
1. State basic principles for IA.
2. Provide framework for performing and promoting value added IA
3. Establish a basis for evaluating IA performance.
4. Improve organizational process and operations.
Attribute Standard
IA Organization and Individual
Performance Standard
IA Nature and Evaluation Criteria
Two types of Implementation Standards
Assurance and Consulting Services
Assurance Services
Auditor determines the nature and scope and evaluates evidence.

Three Parties - owner, auditor, and client
Consulting Services
The client identifies the nature and scope.

Two Parties - Auditor and client
Mandatory Guidance
(1) Definition
(2) Ethics
(3) Standards - Attribute, performance, and implementation
Strongly Recommended Guidance
(1) Position Papers
(2) Practice Advisories
(3) Practice Guides
Internal Auditing is
(1) independent and objective
(2) Engages in assurance and consulting activities
(3) Adds value and improves operations
(4) Has systematic, disciplined approach to auditing the accomplishment of organizational objectives
(5) evaluates risk management, control and governance
Attribute Standard Categories
(1) Purpose, Authority, and Responsibility
(2) Independence and Objectivity
(3) Proficiency and due professional Care
(4) Quality Assurance and Improvement Program
Attribute Standards - Purpose, Authority, and Responsibility
Charter includes the nature of audit operations and includes the definition of auditing, identifies ethics, and standards.
Attribute Standards - Independence and Objectivity
(1) Organizational Independence (Reporting)
(2) Direct interaction with the board
(3)Individual Objectivity (conflicts of interest)
(4) Impairments
Attribute Standards - Proficiency and Due Professional Care
(1) Individual Proficiency
(2) Continuing Professional Development
(3) Individual professional care
Attribute Standards - Quality Assurance and Improvement Program
(1) Ongoing and periodic internal assessments
(2) External Assessment Every 5 years
(3) Reporting on the quality assurance and improvement program to the board
(4) Use of "Conforms with the international standards for the professional practice of internal auditing"
(5) Disclosure of Non-Conformance with standards
Types of Performance Standards
(1) Managing
(2) Nature of Work
(3) Engagement Planning
(4) Performing Engagement
(5) Communicating Results
(6) Monitoring Progress
Performance Standards - Managing
(1) Managing the IA Activity
(2) Annual Planning
(3) Communication and Approval of audit plan and resources
(4) Resource Management
(5) Policies and Procedures
(6) Coordination to minimize duplication of efforts
(7) Reporting to senior management and the Board
Annual Planning must be
(1) Risk Based
(2) Consistent with Organizational Goals
(3) Have Management and Board Input
(4) Include consulting services options
Performance Standards - Nature of Work
(1) Nature of work
(2) Governance
(3) Risk Management
(4) Control
Nature of Work (def)
Evaluate and contribute to improved governance, risk manage mt, and control processes using a systematic and disciplined approach.
Governance Elements
(1) Promotes ethics and values;
(2) Ensures organizational performance management and accountability;
(3) Communicates risk and controls; and
(4) Coordinates board, audit, and management activities.
Control
Promotes continuous improvement
Performance Standards - Engagement Planning
(1) Planning
(2) Objectives
(3) Scope
(4) Resources
(5) Program
Purpose of Engagement Planning
Develop and document:
(1) Objectives
(2) Scope
(3) Timing
(4) Resources
Planning Considerations
(1) Objectives
(2) Risk
(3) Control
(4) Improve Operations
Engagement Objectives
Provide a preliminary assessment of the area
Performance Standards - Performing the Engagement
(1) Identify sufficient, relevant, reliable, and useful information
(2) Analysis and Evaluation
(3) Documenting Information to support conclusions and engagement results.
(4) Engagement Supervision
Performance Standards - Communicating Results
Communicate the results of the engagement including:
(1) Errors and Ommissions
(2) Use of conducted in conformance...
(3) Disclose non-conformance
Communications should be
(1) Accurate
(2) Objective
(3) Clear
(4) Concise
(5) Constructive
(6) Complete
(7) Timely
Performance Standards - Monitoring Progress
Must have a system to follow-up and resolution of senior managements risk acceptance.
Add Value (def)
Improving opportunities to achieve organizational objectives, identify operational improvement, and reduce risk exposure.
Control Environment (def)
Attitude and actions of board and management regarding the significance of controls in an organization. Provides the disciplined structure to achieve objectives and a system of internal controls.
Elements of a Control Environment
(1) Integrity and ethical values
(2) Management philosophy and operating style
(3) Organizational Structure
(4) Assignment of authority and responsibility
(5) HR policies and practices
(6) Competence of personnel
Internal Audit Activity (def)
Provides independent objective assurance and consulting services designed to add value and improve operations.
Proficiency (def)
Maintenance of a high degree of competence in the performing of work
Ethics: The Auditor Shall
(1) Perform their work with honesty, diligence, and responsibility
(2) Engage only in those services for which they have the necessary knowledge, skills, and experience.
(3) Perform IA services in accordance with standards
(4) Continually improve proficiency, effectiveness, and quality of services.
Proficiency and Due Professional Care includes knowledge, skills, and competency in the following areas:
(1) IA standards, procedures, and techniques
(2) Accounting principles and techniques
(3) Knowledge to identify indicators of fraud
(4) Knowledge of key IT risks and controls
(5) Understanding management principles
(6) Appreciation of business fundamentals
(7) Interpersonal Skills
(8) Written and Oral Communication skills
Due Professional Care (def)
Reasonably prudent, competent auditor in similar situations.
Exercise Due Professional Care by considering:
(1) Extent of work needed to achieve objectoves
(2) Relative complexity, materiality, or significance of matters
(3) Adequacy of governance, risk management, and control
(4) Probability of errors, fraud, and noncompliance
(5) Cost of assurance weighted with the benefits
Charter Sections
(1) Purpose, authority, and responsibility
(2) Nature of Assurance services provided
(3) Nature of consulting services provided
(4) Recognition of standards and ethics
Functional Reporting (Board)
(1) Approve charter, risk assessment and audit plan
(2) CAE communicates results or other matters
(3) Performance evaluation, appointment, and removal of the CAE.
Administrative Reporting
(1) Budget and management accounting
(2) Human Resources
(3) Communications
(4) Administration of IA policies and procedures
Individual Objectivity
(1) Honest belief in work product
(2) No significant quality compromises are made
(3) CAE organizes staff assignments, obtains COI info, and rotates when practical
(4) Review work results before released provides reasonable assurance of objectivity
(5) Impaired when auditor designs, installs, drafts procedures or operates systems
(6) non-audit work doesn't necessarily impair.
Scope Limitation (def)
Restriction that hinders ability to achieve activity objectives. Should be communicated to the board.
Governance (def)
The structure implemented to inform, direct, manage, and monitor activities to achieve organizational objectives
Nature of Audit Work (purpose)
Evaluate and contribute to improved governing, risk management, and control process using a systematic and disciplined approach.
Characteristics of an adequately planned and designed process
(1) Efficient Performance
(2) Economical Performance
(3) Reasonable Assurance
(4) Designed with goals and objectives
Processes are Effective When
Management directs them to provide reasonable assurance that objectives and goals are being achieved.
Objectives of the management orocess are to achieve
(1) Relevant and reliable financial and operational information
(2) Effective and efficient use of resources
(3) Safeguarding assets
(4) Compliance with Laws, regulations, and contracts
(5) Risk Identification and strategies to control
(6) Establish Goals and objectives
Four types of control
(1) Preventative
(2) Detective
(3) Directive
(4) Mitigating
Auditors Role in Management Process
Appraise and evaluate the management process to provide reasonable assurance that managements
(1) Risk management activities are effective
(2) Internal controls are effective and efficient
(3) Governance process is effective
IAA Objectives when Assessing Governance
(1) Promoting ethics and values in the organization
(2) Ensuring effective organizational performance management and accountability
(3) Communicating risk and control information to appropriate areas of the organization
(4) Coordinating activities and communicating to board, external/internal auditors and management.
Two Components of Governance
(1) Strategic Direction
(2) Oversight
Strategic Direction Involves Determining
(1) Business Model
(2) Overall Objectives
(3) Approach to Risk
(4) Limits of Organizational Conduct
Audits main areas of Concern in Governance
Oversight
Compliance (def)
The adherence to policies, plans, procedures, laws, regulations, contracts or other requirements.
The Organization should establish compliance standards that include:
(1) Business Code of Conduct
(2) Organizational Chart
(3) Financial Incentives that DO NOT reward misconduct
(4) Global compliance program
Compliance Programs
Assist organizations in preventing inadvertent employee violations, detecting illegal activities, and discouraging intentional violations.
Risk Management (def)
Process to identify, assess, manage, and control potential events or situations to provide reasonable assurance regarding achieving objectives.
Elements of an Effective Risk Management Process
(1) Organizational objectives support and align with mission
(2) significant risks are identifies and assessed
(3) Appropriate risk responses are selected that align risks with the organizations risk appetite
(4) Relevant risk information is captured and communicated in a timely manner across the organization enabling, staff, management, and board to carry out responsibilities.
Audit Role in Risk Management Plan
(1) None
(2) Audit risk management (in audit plan)
(3) Active, continuous support and involvement
(4) Managing and coordinating the risk process
Types of Engagement Procedures for Risk Assessment
(1) Review management analysis and actions taken (timeliness)
(2) Suggest improvements
(3) identify risks and exposures based on literature review
(4) Review p/p to identify business strategies, philosophy, and appetite
(5) Review internal/external risk evaluation reports
(6) Assess reporting lines
Enterprise-Wide Risk management (ERM) (def)
Structured, consistent. and continuous process across organization to identify, assess, respond to, and report on opportunities and threats to achieve Organizational objectives.
Responsibility for ERM
Board has overall responsibility but it is normally delegated to management.
IAA Value to Risk Management Process
ensure that key risks are managed and that risk management and control framework is effective
IAA Assurance Role in Risk Management
(1) Assurabce on risk management and process
(2) Risks are correctly evaluated
(3) Evaluating Risk management process
(4) Reporting key risks
(5) Reviewing management of key risks
IAA Consulting Role in Risk Management
(1) Facilitating identification of risks
(2) Coaching management and responding to key risks
(3) Coordinating ERM activities
(4) Consolidating and reporting on risks
(5) Maintaining and developing ERM framework
(6) Championing the establishment of ERM
(7) Developing risk management strategies for board approval.
Risk Management Activities IAA can NOT Undertake
(1) setting teh risk appetite
(2) Imposing a risk management process
(3) Managing assurance on risks
(4) making decisions on risk response
(5) Implementing risk responses on managements behalf
(6) Accounting for risk management
Business Continuity Management (BCM) (def)
Matches business continuity characteristics with likely risks. the Objective is to restore critical processes and minimize financial and other effects of disaster or business disruption.
Three Parts of an Emergency Management Program
(1) Emergency Response
(2) Crisis Management
(3) Business Continuity Management
Emergency Response (def)
lifesaving, safety, limit disaster effects, measured in hours or minutes
Crisis Management (def)
Managing communications and senior management activities, measured in hours or days
Business Continuity Management Elements
(1) management Support
(2) Risk Assessment and mitigation (3) Business Impact Analysis (BIA)
(4) Business recovery and continuity strategy
(5) Awareness and Training
(6) Exercise
(7) Maintenance
Two objectives of Business Impact Analysis (BIA)
(1) Recovery time objective (RTO) - duration of time and service level that MUST be restored
(2) Recovery point objective (RPO) - amount of data that can be lost
Crisis Management (CM) (def)
How entity informs stakeholders about crisis and steps to restore business process. Documented and use of metrics.
Disaster Recovery Plan
IT Related
IAA Role in Reliability and Integrity
(1) Determine if sr management and board have clear understanding of information reliability and integrity
(20 CAE determines if IA has access to competent auditing resources to evaluate
(3) CAE determines if sr management, board, and IIA will be promptly notified of a breach
(4) Assess the effectiveness of preventative, detective, and mitigative resources
(5) must periodically assess
IAA Role in Privacy
Evaluates the privacy network
Control (def)
Any action taken by management, the board, and other parties to enhance risk management and increase the likelihood that established objectives and goals will be achieved. management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved.
Control Processes (def)
The process, procedures, and activities that are part of a control framework designed to ensure that risks are contained within the risk tolerances established by the risk management process,
Preventative Control (def)
Deter occurrence of undesirable events
Detective Control (def)
Detect and correct undesirable events
Directive Control (def)
Cause or encourage desirable events
Control Types
(1) Feedback Controls
(2) Concurrent Controls
(3) Feed Forward Controls
(4) Financial Controls
(5) Operating Controls
Feedback Controls (def)
Obtain information about completed activities. They permit improvement by learning from mistakes. Corrective action takes place after the fact
Concurrent Controls (def)
Adjust ongoing processes. Real time controls monitor present activities to prevent deviations from standards.
Feed Forward Controls (def)
Anticipate and prevent problems/ This requires a long term perspective.
Financial Controls (def)
Should be based on relevant established accounting principles.
Operating Controls (def)
Applicable to production and support activities but may lack criteria and standards.
Control Sequence
(1) Selecting strategic control points at which to gather information about the activities being performed.
(2) Observing the work or collecting samples as a basis for measurement
(3) Accumulating, classifying, and recording information
(4) Comparing it with predetermined quality, schedule, and cost standards
(5) Determining whether performance is satisfactory
(6) Reporting significant deviations to managers concerned
(7) Through repetition determining whether action taken is correcting deviations
(8) Reviewing and revising standards.
Characteristics of Effective Controls
(1) Timely
(2) Economical;
(3) Well Placed
(4) Flexible
(5) Appropriate
(6) Accountable
(7) Identify Cause
COSO Definition of Control
Internal control is a process designed to provide reasonable assurance regarding achievement of objectives related to (1) Reliability of financial reporting, (2) efficiency and effectiveness of operations, and (3) compliance with laws and regulations.
Five Components of Internal Control (COSO)
(1) External Control Environment
(2) Risk Assessment
(3) Control Activities
(4) Information and Communication
(5) Monitoring
Internal Control Environment Includes
(1) Integrity and ethical values
(2) Commitment to competence
(3) Board and AC participation
(4) Management Philosophy and operating style
(5) Organizational Structure
(6) Assignment of authority and responsibility
(7) HR Policies and Practices
Examples of Control Activities
Policies and procedures to address risks and achieve objectives. Performance reviews, performance measures, physical controls, segregation of duties.
Limitations of Controls
Design and implement to provide reasonable assurance that control objectives are met.
ERM Alt Def
A process applied strategically across the agency to identify events and manage the risk to be within the agency risk appetite to provide reasonable assurance.
ERM Capabilities
(1) Consideration of the risk appetite and strategy
(2) Risk response decisions
(3) Reduction of operational surprises.
ERM Objectives
(1) Strategic - Align with and support the mission
(2) Operational - effectiveness and efficiency
(3) Reporting - Reliability
(4) Compliance - Adherence to laws and regulations.
ERM Components
(1) Internal Environment
(2) Objective Setting
(3) Event Identification
(4) Risk Assessment
(5) Risk Response
(6) Control Activities
(7) Information and control
(8) Monitoring
Means of Control
(1) Organization
(2) Policies
(3) Procedures
(4) Personnel
(5) Accounting
(6) Budgeting
(7) Reporting
(8) Management Control Process
Control Assures
(1) Reliability and integrity if information
(2) Efficient and effective performance
(3) Safeguarding assets
(4) Compliance with laws, regulations, and contracts.
Inherent Risk (def)
The risk when management has not taken action to reduce the impact or likelihood of an adverse event.
Impact Factor (def)
The potential result of an event usually identified through the risk assessment process.
Categories of Risk Response (ERM)
(1) Avoidance
(2) Acceptance
(3) Reduction
(4) Sharing
What is the Internal Control Guidance for Directors on the Combined Code?
Turnbull Report
Organizational Elements (Edgar Schein)
(1) Coordination of effort in a cooperative social arrangement
(2) Common goal or purpose
(3) Division of labor
(4) Hierarchy of Authority
Authority (def)
The right to direct. and to exact performance from, other people.
Organizational Classifications (Kreitner)
(1) Businesses are engaged in economic activities with the intent to make a profit.
92) NonProfit service organizations serve particular groups pf clients.
(3) Mutual Benefit Organizations are groups that exists to serve their members
(4) Commonweal organizations provide a standard service to all members of the population (police school etc)
Responsibility (def)
Obligation to perform
Accountability (def)
The duty to account for the fulfillment of the responsibility
Effective Organization
If it facilitates the contribution of individuals toward the attainment of objectives. An effective organization must be organized.
Efficient Organization
Facilitates the accomplishment of organizational objectives with minimum resources and fewest unsought consequences.
Three Kinds of Differentiation that Contributes to Complexity
(1) Vertical Differentiation
(2) Horizontal Differentiation
(3) Spatial Differentiation
Vertical Differentiation
Hierarchy Depth. More levels mean more complexity. Information can become distorted, coordination of management activities become difficult, response time is slower.
Horizontal Differentiation
Extent to which tasks require special skills and knowledge. As these become more diverse, communication and coordination become more difficult.
Spatial Differentiation
Geographic separation of operations
Formalization (def)
The extent to which job performance is standardized by job descriptions and clear procedures that define how tasks are to be accomplished. Impacts worker discretion.
Centralization (def)
Concentration of authority in an organization and the degree and levels at which it occurs.
Lorence and Lorsch: Differentiation (def)
Caused by division of labor and technical Specialization. Leads to organizational fragmentation due to narrow focus of specialists.
Lorence and Lorsch: Integration (def)
Coordination of effort required for achievement of mutual objectives.
Organizational Subsystems
(1) Department by Function
(2) Department by Territory
(3) Department by Product
(4) Department by Customer
(5) Project Departmentation
(6) Matrix Organization
Project Departmentation (def)
Organizational subsystem for experimental or one time activities.
Matrix Organization (def)
Has horizontal and vertical lines or authority.
The method of departmentation chosen is contingent upon
(1) Organizational plans, programs, policies, and procedures
(2) Environmental Constraints
(3) Training and preferences of available personnel.
Mechanistic Structure (desc)
Centralized.
Limited Information Network
Employees do not make decisions
Organic Structure (desc)
Decentralized
Low complexity and formalization.
Extensive Information System
Employees make decisions.
Flexible and adaptive
Structure is a function of
(1) Strategy
(2) Size
(3) Technology
(4) Environment
Innovation Strategy
Focuses on developing important new products or services. Organic structure best.
Cost-Minimization Strategy
Imposes tight controls over expenses and reduces product prices. Mechanistic structure is best.
Imitation Strategy
Not adopted by true innovators but by organizations that move into new markets only after smaller competitors have demonstrated the potential for success. Best structure is a combination of mechanistic and organic.
Three Dimensions of Environment
(1) Capacity
(2) Volatility
(3) Complexity
Five Organizational Components (Mintzberg)
(1) Operating Core - Workers
(2) Strategic Apex - Top management
(3) Middle line - Managers who connect the core to the apex
(4) Technostructure - Analysts
(5) Support Staff - indirect support
Five Organizational Structures (Mintzberg)
(1) Simple Structure
(2) machine Bureaucracy
(3) Professional Bureaucracy
(4) Divisional Structure
(5) Adhocracy
Difference between a Machine and an Professional Bureaucracy
(1) Machine is centralized whereas professional is decentralized.
(2) Professional has highly trained specialists with a great deal of autonomy.
Adhocracy (def)
An organic structure with low complexity, formailty, and centralization. Low vertical and high horizontal differentiation. Emphasis on flexibility and response.
Degree of decentralization will be greater if:
(1) More decisions are made lower in the management hierarchy
(2) Some important decisions are made lower in the management hierarchy
(3) More functions are affected by decisions made at lower levels
(4) Fewer approvals are required before implementation of a decision.
Strategic Business Unit (SBU) (def)
An independent business that (1) serves a specific market outside the parent, (2) has outside competition, (3) makes key decisions about such matters as strategic planning and product development even though it shares the parents resources, and (4) constitutes a profit center.
Factors to consider when determining Span of Control
(1) managers and employees preferences, skills, and experience;
(2) Organizational Culture;
(3) tasks to be performed;
(4) physical location; and
(5) Established policies and procedures.
Benefits of Flat Organizational Structures
(1) Fast information flow
(2) Increased employee satisfaction
Benefits of a Tall Organizational Structure
(1) faster and more effective problem resolution
(2) Greater Order
(3) Frequent interaction between superior and suboprdinate
Layers in an Hourglass Organization
(1) Strategic Layer - determines the mission
(2) Middle Managers - generalist managers coordinate low-level and cross-functional; activities.
(3) Technical Specialists - Self supervised, lack promotion possibilities, motivated by challenging work.
New Organizational Structures
(1) Hourglass
(2) Cluster
(3) Network
(4) Virtual
Cluster Organization
A group of teams.
Network Organizations
An organization based on long term relationship based upon implicit contracts and coordination through adaptation. May be viewed as a group of activities involving suppliers and customers that add value.
Virtual Organization
Flexible networks of value-adding subcontractors who communicate via internet, email, and telephone.
Leadership (def)
The act or process of influencing, inspiring, and guiding people so that they will strive willingly toward the achievement of group objectives through common effort.
Leadership Styles Characterization
(1) Authoritarian
(2) Democratic
(3) Laissez faire
(4) Consultative
(5) Bureaucratic
Leadership Grid (Blake & Mouton)
Management Types
(1) Impoverished - Little concern production/people
(2) Country Club - Primary concern people
(3) Authority Compliance - Primary concern production
(4) Middle of the Road - Moderate concern for people and production
(5) Team - Great concern for people and production.
Contingency Theory (Fiedler)
No single style of directing is best for all occasions. A successful leader must balance formal authority, task structure, and relationships.
Three Dimensions of the Contingency Theory (Fiedler)
(1) Position Power - Formal Authority Structure
(2) Task Structure - task responsibility defined
(3) Leader-Member Relations - Like and trust.
Situational Leadership Theory (Hersey & Blanchard)
The appropriate leadership style depends on the followers maturity.
Situational Leadership Theory (Hersey & Blanchard) Four Types of Leadership Styles
(1) Selling - Explains decisions and provides clarification
(2) Telling - Provides instructions and closely supervises
(3) Participating - Encourages sharing and facilitates decision making
(4) Delegating - Turns responsibility for decisions and implementation over.
Path-Goal Theory Emphasizes
Motivation
Path-Goal Theory - factors that affect the relationship between leadership and outcomes
(1) Environmental Factors - Beyond employees control
(2) Subordinate Factors - Employee control, experience, and perceived ability.
Transformational Leaders
Able to inspire the members of the organization to aspire to, and to achieve, more than they thought was possible.
According to Nadler & Tushman, Change is either
Anticipatory or reactive
According to Nadler & Tushman, the Scope of Change is either
Incremental or strategic
Methods of Coping with Employee Resistance to Change include:
(1) Prevention through education and communications
(2) Participation in designing and implementing change
(3) Facilitation and support through training and counseling
(4) Negotiation by providing benefit in exchange for cooperation
(5) Manipulation of information or events
(6) Co-Optation through allowing some participation but without meaningful input
(7) Coercion
Organizational Development (OD) (def)
Planned fundamental change using behavioral science techniques in a systematic way. (Top down approach)
Lewins Three Organizational Development Stages
(1) Unfreezing - diagnosis
(2) Change - altering of status quo
(3) Refreezing - Follow-Up
5P Checklist
(1) Preparation
(2) Purpose
(3) Participation
(4) Progress
(5) Persistence
Tempered Radicals
People who oppose the dominant culture while working for incremental change in accordance with their values.
Ways to address competitive conflict
(1) Problem Solving
(2) Smoothing
(3) Forcing
(4) Superordinate Goals
(5) Compromise
(6) Expand Resources
(7) Avoidance
(8) Accommodation
(9) Interest-Based Bargaining
Cooperative Conflict
Constructive
Competitive Conflict
Destructive
BATNA
Best Alternative to a Negotiated Agreement
Steps to Overcome Resistance
(1) Attempt to determine the reason behind the resistance
(2) Stop the meeting and address the other party's concern privately
(3) Restate the negotiators position regarding the issue
(4) Research the other party to determine its views and requirements.
Steps to Value Added Negotiating
(1) Clarify Interests
(2) Identify Options
(3) Design Alternative Deal Packages
(4) Select a deal
(5) Perfect the Deal
Two behavior patterns consistently found in leaders are
Initiation of structure and considerations (production-centered vs. employee-centered behavior)
Organizational Effectiveness (def)
Meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future and surviving the distant future. Short. medium, and long term goals.
Objectives of Organizational Development
(1) Deepen the sense of organizational purpose and values and align individuals with them;
(2) Promote interpersonal trust, communication, cooperation, and support;
(3) Encourage a problem-solving approach;
(4) develop a satisfying work experience;
(5) supplement formal authority with authority based on expertise;
(6) Increase personal responsibility; and
(7) encourage willingness to change.