Study guide for TCT in distributive education [1983]

Study Guide for TCT in Distributive Education
Published by Georgia Department of Education Georgia Teacher Certification Testing Program
Atlanta, Georgia 30334

Study GUide for TeT in Distributive Education
Published by Georgia Uepartment of Education Georgia Teacher Certification Testing Program
Atlanta, Georgia 30334

National Evaluation Systems, Inc., has prepared for distribution by the Georgia Department of Education the set of content objectives found in this Study Guide. These objectives have been verified as important content requirements for initial certification. Not all of the listed objectives have had test items written for them. The selected objectives have not been identified. All objectives which appear here are certification requirements and a sampling of them will be tested. When the project to develop the Georgia Teacher Certification Tests (TCT) was begun in November 1976, an Ad Hoc Committee composed of . Georgia educators was appointed to work with NES on each TCT. The function of these Ad Hoc Committees was to review all NES-generated materials with a goal of making the materials more reflective of Georgia education needs. The first step in the test development process was that of content domain specification. Educators identified all content knowledge that an applicant would need to know to function effectively in a Georgia school. This content was further defined into content objectives, which were sent to currently practicing Georgia educators for verification. These educators provided actual ratings of the "job-relatedness" of the content objectives. At that point, it was possible to identify, from the original domain specification, the extent of essentiality of specific content skills for successful performance on the job. Test items were written for the most essential objectives which spanned the content of the field. The purpose of providing objectives is to explicitly define the content required of an applicant for certification in this field. Further, the statement of these objectives should assist in preparing for the criterion-reference content knowledge test. We encourage applicants to study these materials, which will enhance their understanding of the content field and alleviate any unnecessary concerns about the nature of the Georgia Teacher Certification Tests. Along with these materials go hopes for a rewarding career in education.
If you have questions or desire further information. contact:
Performance-Based Certification Division of Staff Development 1858 Twin Towers East Atlanta, Georgia 30334 (404) 656-2556
Georgia Department of Education Charles McDaniel. State Superintendent of Schools

The Georgia Department of Education wished to express its appreciation to the group of Georgia educators listed below who volunteered their time and expertise to develop this Study Guide.
Marvin M. Brown, Chairperson Georgia Department of Education

Lester Sanders University of Georgia Barbara Wilkie Georgia State University

Joe E. Hill University of Georgia Rona F. Flippo, Georgia Department of
Education

June, 1983 Georgia Department of Education
Atlanta, Georgia

STUDY GUIDE FOR TCT IN DISTRIBUTIVE EDUCATION Georgia Teacher Certification Testing Program
Field 17: Distributive Education INTRODUCTION
This study guide was specifically designed for teachers pre~ paring to take the Georgia Teacher Certification Test (TCT) in Distributive Education. The Distributive Education Test was developed by the National Evaluation Systems, Inc. (NES) and educators in the state of Georgia. The test covers nine subareas: Career Development, Economics, Distribution, Selling, Market Research, Operation, Management, Human Relations, and Professional Skills. These subarea designations and the objectives within these subareas were developed by National Evaluation Systems, Inc., and the Ad Hoc Committee of Georgia educators that developed this testnot the authors of this study guide.
The suggested references which follow the content objectives of each subarea should be helpful to potential teachers preparing to take the test. Most of the refere~ces listed are available from one of the state approved Distributive Education programs in Georgia colleges and universities. Some of the references are high school level materials. There are also many other excellent materials which have not been listed due to limited space.
The listing of numerous sources does not mean that all are needed to grasp a particular concept or meet a given objective. Some examinees will have better access to certain sources than to other sources. Additionally, in some cases several subareas have been referenced to the same readings. This is because those readings cover several topics.
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GEORGIA TEACHER CERTIFICATION TESTING PROGRAM

FIELD 17: DISTRIBUTIVE EDUCATION

I. CAREER DEVELOPMENT:

Content Objective

Understand the critical aspects of a business interview, e.g., preparation, appearance, conduct, follow up.

Recognize that a person's need for recognition, income, satisfaction, prestige, and security will influence his/ her career decisions

Be able to complete an application form accurately, and know what kinds of information an employer does not have the legal right to require.

Recognize that there are job opportunities in distribution for individuals with different levels of skill, e.g., entry, master employee, and owner-manager.

Understand that an individua1s attitudes will influence his/her career choice.

Recognize that jobs in distribution can be classified into two categories: the distribution of goods and distribution of services.

Know how to prepare the various parts of a resume.
Understand that the field of distribution includes all of the business activities involved in moving goods or services from producer to consumer.
Be familiar with preemployment activities such as work permits, social security numbers, and medical exams, which are often required by law.
Explain the function of letters of application and related correspondence as important in obtaining employment

Know the different methods of compensation (straight ~alary, salary plus tips, etc.), and analyze their effectiveness as employee motivations.
List some of the personal interests that are compatible with a career in distribution
Understand that an individual's decision to choose a career in distribution should be based on his/her aptitude for mathematics, II communications, and social contact.
Understand the function of employment tests and know the sort of skills and knowledge that are commonly tested.

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Know the advantages and disadvantages of various sources of job information such as want ads and placement services. etc.
Identify the various type~ of institutions in the field of distribution. e.g., retail, wholesale. transportation, and finance.
Know the procedures for terminating employment. and how they can affect future employment.

Know that jobs in distribution can be divided according to the different marketing functions.
Know ways to determine the economic outlook of jobs in distribution.
Explain how employers use various fringe benefits to reduce turnover and maintain job satisfaction among their employees.

CAREER DEVELOPMENT:

Suggested References

Bikkie, James. Careers in Marketing. New York: Gregg/McGraw-Hill. 1978.

Eggland, Stephen and John W. Williams. Human Relations at Work. Cincinnati: South-Western, 1981.

Herr, Edwin L. Rosemary T. Frueh1ing, William M. Kidwel and others. Your Working Life: A Guide to Getting and Holding a Job. New York: Gregg/McGraw-Hill, 1980.

Russon, Al1ien R. and Harold R. Wallace. Personality Development at Work. Cincinnati: South-Western, 1981.

Williams, John W. and Stephen Eggland. Communications at Work. Cincinnati: South-Western, 1981.

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II. ECONOMICS:
Recognize that consumers, producers, government, capital resources, and technology are components of an economic system.
Identify the major goals of an economic system, (e.g., profit, full employment, growth, security, and efficiency).
Understand that economic systems (e.g., capitalism, socialism, communism) can be compared on the basis of how they make decisions about the allocation of resources.
Recognize that all economic systems must make decisions about how to allocate limited resources for the production and distribution of goods and services.
Recognize that inflation, recession, and depression are symptoms of economic imbalance.

Content Objective
Understand the various methods used to measure economic conditions, e.g., gross national product, personal income, price indexes, and business income.
Understand that government can use fiscal policy, monetary policy, and taxation as buffers against economic fringe.
Recognize the conflict in the economic environment between relatively unlimited wants and relatively limited resources.
Understand the methods the federal government can use to influence the economic environment.
Understand the interdependence of the components of a given economic system.

ECONOMICS:

Suggested References

Byrns, Ralph T. and Gerald W. Stone, Jr. Macroeconomics. Glenview

11: Scott, Foresman and Co., 1982.

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Byrns, Ralph T. and Gerald W. Stone, Jr. Student Guide for Learning Economics. Glenview,I1: Scott, Foresman and Co., Inc., 1982.

Housley, Blair C., Robert Haney Scott and Nic Nigro. Principles of Economics Study Guide. New York: Macmillan PUblishing Co., Inc., 1982.

Nigro, Nic and Robert Haney Scott. Principles of Micro Economics. New York: Macmillan Publishing Co., Inc., 1982.

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III. DISTRIBUTION
Show how positive attitudinal characteristics such as loyalty, honesty, industry, and tact are related to success in selling.
Explain how good grooming and hygiene affect success in the sales field.
Explain the importance of knowing the different features and benefits of a product.
Explain how the ability to differentiate one's product can increase sales volume.
Explain how personal and non-personal selling can be combined advantageously to create successful sales promotion.
Know the different types of retail salespeople and explain how they can be used to reach specific segments of the public.
Know the different types of middle-persons involved in selling (e.g., agents, brokers, manufacturers' representatives).
Understand how the different features of a package (e.g., economy, eye appeal, ecology, convenience, etc.) affect both the cost of the product and its a ppea 1 to the customer.

Content Objective
Explain how the development of skill used in selling can enhance both employee and customer satisfaction.
Understand the AIDA formula and know its advantages and disadvantages as a theory of selling.
Know the different types of sellers (retail, wholesale, and service).
Understand how the various types of labeling (descriptive, informative, grade, etc.) can aid the seller in selling and the consumer in selecting merchandise.
Know several different ways to differentiate business services in order to get the edge in a competitive market.
An a1yze how bra nd s (i. e , .I local, regional, national, and private) affect the retailer's profit.
Know the different sources of product information (e.g., merchandise, fellow salespeople, customers, customer agencies) and how they function as aids in selling.

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DISTRIBUTION:

Suggested References

Dorr, Eugene, G. H. Richert and Peter Haines. Merchandising. New York: Gregg/McGraw-Hill, 1978.

Ertel, Kenneth and Lawrence Walsh. Wholesaling and Physical Distribution. New York: Gregg/McGraw-Hill, 1978.

McCarthy, E. Jerome. Basic Marketin: A

roach.

Homewood, IL:

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IV. SELLING Know the importance of courtesy, promptness, interest, and selfconficence when approaching a prospective customer. Know how to use basic communication skills (listening, asking questions, observation, etc.) in order to effectively determine a customer's needs and wants. Know how to handle the objections to buying a product that customers commonly raise (e.g., price, merchandise, store policy, etc.). Know how to compute sales tax. Be able to help each customer choose the most appropriate kind of sales transaction (e.g., cash send, cash take, charge send, charge take, C.O.D.). Know how the various sections of a sales check are used in making a transaction. Know how to benefit from trade discounts when buying in large quantities. Identify the various kinds of discounts from the list price that manufacturers may grant to wholesalers and retailers. Know how to compute shipping terms and costs.

Content Objective Know the techniques for successfully closing a sale. Know how to incorporate suggestion selling and trading up into your sales technique. Tell how the use of negative statements, scare tactics, and indifference can negatively affect sales and customer relations. Know a variety of ways to present merchandise to a customer, and know benefits of the product to be included in the sales conversation. Know how to use a cash register when making both cash and charge transactions. Realize how being courteous to both the buyer and the non-buyer when taking leave of them can be advantageous to customer relations. Know the factors involved in making a merchandise approach or a service approach to a prospective customer. Tell how skillful handling of the mechanics of closing a sale (e.g., charge, delivery or payment arrangements, etc.) can increase the likelihood that the customer will return. Know that carefully arranged stock and well-informed salespeople form the basis for successful personal selling.

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Identify the various customer types, e.g., decided, undecided, casual looker, etc., in order to determine a customer's needs and wants.
Cite several uses for percentages in marketing, e.g., computing discounts, markup, profit, etc.
Know the methods an outside salesperson can use to organize his/her time in order to increase his/her sales productivity.
Understand that dealers may assist the promotional efforts of wholesalers and retailers by providing premiums, point of purchase displays, and cooperative advertising programs.

Understand how to use the various methods of prospecting in order to increase your clientele (e.g., store contracts, newspapers, classified directories, etc.). Know the importance of computing stock-to-sales ratio in order to prevent over-ordering and a resulting profi t loss. Understand how employee discounts are computed and how they increase employee satisfaction. Relate the effective use of mathematics in marketing to the maintenance of efficiency and profits. Recognize that a salesperson may deal with a buyer who represents a group of stores (e.g., a retail chain) or a voluntary buying group.

SELLING:

Suggested References

Anderson, J. Professional Selling. Englewood Cliffs, NJ: Prentice Hall, 1982.

Cundiff, Edward W., Norman A. P. Govoni and Richard R. Still. Sales Management: Decisions, Strategies and Cases. Englewood Cliffs, NJ: Prentice-Hall Inc., 1981.

Kotler, Philip. Principles of Marketing. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1983.

McCarthy, E. Jerome. Basic Marketing: A Managerial Approach. Homewood, IL: Richard Irwin, Inc., 1981.

Pederson, Carlton A., Barton A Weitz and Milburn D. Wright. Selling: Principles and Methods. Homewood,IL: Richard D. Irwin, Inc., 1981.

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V. MARKET RESEARCH Identify the various sales promotion techniques typically used by manufacturers, wholesalers, and retailers, e.g., contests, advertising, visual merchandising, etc. Know that different kinds of window displays (e.g., full, partial, or open background) can be used to reinforce other promotional tools and to attract customers into the store. Understand that sales promotion is essentially communicating with potential consumers through the written and spoken word. Understand how the basic principles of design are used in constructing effective and appealing displays. Describe how color can be used to enhance the effectiveness of visual advertising. Evaluate the effectiveness of radio as an advertising medium on the basis of its timeliness and the extend of coverage it provides. Understand that the purpose of marketing research is to collect and analyze information about markets and consumers.

Content Objective Describe the advantages of using newspapers as a medium for sales promotion. Distinquish between headlines and body copy in printed advertisement. Distinquish between advertisements that promote particular merchandise and those that emphasize customer service. Understand the need to prepare, schedule, and evaluate broadcast advertising on the basis of the advertisement1s ability to reach potential consumers successfully. Understand how changes in income, educational level, groups, and mobility affect consumer needs and wants. Distinguish between institutional and promotional advertising. Evaluate television as an advertising medium on the basis of cost and effectiveness. Identify possible types of interior displays in a retail store. Recognize that drawings or photographs can be used to illustrate printed advertisements.

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Understand that in sales promotion, certain magazines can be used to reach particular segments of the population. Describe the steps involved in carrying out a market research study and reporting the results. Understand the different processes that can be used to prepare an ad for printing. MARKET RESEARCH

Understand that a firm might use market research to learn more about consumre behavior, product design, market strength, or advertising effectiveness. Understand that the costs of advertising may be borne by either the distributor or the manufacturer, or may be shared on a cooperative basis.
Suggested References

Cundiff, Edward W., Norman A. P. Govoni and Richard R. Still. Sales Management: Decisions, Strategies and Cases. Englewood, Cliffs, NJ: Prentice-Hall, Inc., 1981.
Hawkins, Del 1. and Donald S. Tull. Marketing Research: Measurement and Methods. New York: Macmillan Publishing Co., Inc., 1980.
Kotler, Philip. Principles of Marketin9' Englewood Cliffs, NJ: Prentice-Hall, Inc., 1983.
McCarthy, E. Jerome. Basic Marketing: A Managerial Approach. Homewood, IL: Richard Irwin, Inc., 1981.
Stanley, Richard E. Promotion: Advertising, Publicity, Personal S e l l i n g , Sales Promotion. Englewood C l i f f s ' , NJ: P r e n t i c e - '"-'-~-7-i-"':"":"";';";"--=';"';"';;;'~""--"-"';"';;;""":"";:'~-:::-':::=~~~-k-":-='~";;";':''';;;'''':'' Hall Inc., 1982.

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VI. OPERATIONS
Understand the need for a store policy on detecting and handling shoplifters.
Know the procedures used to maintain accurate records of credit accounts and identify alternative ways of billing customers for their purchases.
Understand the importance of maintaining accurate records of all merchandise received.
Idenfity the advantages of offering credit to customers.
Understand how an individual's character, credi t, capacity, and capital will influence the outcome of his or her credit application.
Demonstrate knowledge of the legal aspects of credit, e.g., legislation requiring truth in lending, non-discriminatory credit-granting practices, and the rights of consumers to cancel contracts.
Know what steps to take when the merchandise actually received does not match the quantity or type listed on the invoice.
Know the various methods of marking merchandise before and after it is received by the retailer (e.g., preretailing, premarking, item-marking, non-marking, re-marking).
Understand the steps a credit manager might take to collect an overdue account.

Content Objective Identify the major types of credit plans a retailer can offer, e.g., revolving accounts, 30-day accounts, bank credit plans, and layaway. Know how store layout, surveillance systems, and good stockkeeping practices can reduce stock shortages. Identify the different methods used to check merchandise actually received against the merchandise listed on the invoice. Recognize that customers should be made aware of the store's policy regarding returns and adjustments. Understand the methods of carefully, attractively, and efficiently packaging merchandise after it has been sold. Understand that defective merchandise may be returned to the vendor for credit or replacement. Understand stock-turn, and know some of the factors that might affect it. Understand that merchandise must be checked before it is distributed to each selling unit. Understand the need to establish a record-keeping system that identifies the rate of sale as well as the amount of merchandise on hand.

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OPERATIONS:

Suggested References

Mason, Joseph Barry and Morris Lehman Mayer. Modern Retailing Theory and Practice. Plano, Texas: Business Publications, Inc., 1981.
Mason, Ralph E., Patricia Mink Rath and Herbert L. Ross. Marketing Practices and Principles. Englewood Cliffs, NJ: Gregg/McGrawHill, 1980.
McCarthy, E. Jerome. Basic Marketing: A Managerial Approach. Homewood IL: Richard Irwin, Inc., 1981.

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VII. MANAGEMENT Identify the various forms of ownership for retail stores, e.g., corporations. partnerships, sole proprietorships, and franchises. Understand how employee motivation is affected by recognition, fair treatment, and morale. Recognize that the manager of an outside salesforce ;s responsible for recruiting, training, motivating, and supervising the salespeople. Understand why a retailer must plan for profits by developing a merchandise plan and an expense budget. Distinguish among initial markup, maintained markup, and cumulative markup. Know that a balance sheet shows the assets, liabilities, and owner's equity of a business as of a certain day. Understand the importance of planning assortments of merchandise. Identify the factors that should be considered when developing a pricing strategy (e.g., costs, customary price, competition, demand). Identify the factors that should be considered when determining the location of merchandise within the store.

Content Objective Be able to apply the problem-solving approach to the management of people and merchandise. Understand that stores differ (e.g., general merchandise stores carry an assortment of many different products, while limited-line stores specialize in one type of merchandise). Understand that a retailer might offer a variety of services to customers in order to make shopping easier or more convenient. Identify the various types of retail operations that sell a service rather than a product. Understand that a potential location should be evaluated on the bases of traffic, proximity to other stores, and availability of parking. Understand why a retailer .. takes markdowns on merchandise. Demonstrate knowledge of a buyer's responsibilities for planning, purchasing, and pricing merchandise. Identify possible sources of information on market trends and consumer needs. Understand that an income statement is a summary of a firm's sales and expenses over a period of time.

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Be able to calculate markup when given information on the cost and the retail price of an item.
Identify the various activities that might be included in a firm's public relations efforts.

Understand that some retailers do not operate stores but serve consumers through vending machines, mail order catalogues, and in-home selling.
Know how, when, and why physica1 inventory is taken.

Recognize that good vendor relations are dependent upon ,both buyer and seller fulfilling the terms of the sales contract.
Understand the legal responsibilities of the buyer and seller as set forth in the laws regulating contracts, agencies, and advertising.

Categorize the possible locations for a retail store (e.g., central shopping districts, neighborhood shopping districts, string streets, shopping centers). Understand that a retail sales manager is responsible for merchandise, supervision of the salesforce, and customer service.

Recognize the need to assess business opportunities in terms of the investment required and the expected profits.
Understand the retailer's responsibility for the safety of customers and employees and applicable laws and regulations.
Recognize that financing a business involves analyzing financial requirements and identifying sources of capital.

Understand that ~ firm may select a pricing strategy in order to obtain a particular share of the market, achieve a set return on an investment, or stabilize prices. Understand the various pricing policies a store might adopt such as price lining, fixed versus variable pricing, leader pricing, and odd-cent pricing.

MANAGEMENT

Suggested Resources

Everard, Kenneth and Bernard Shilt. Business Principles and Management. Cincinnati: South-Western, 1979.

Hellriegel, Don and John W. Slocum, Jr. Management. Massachusetts: Addison-Wesley Publishing Company, 1982.

Mason, Joseph Barry and Morris Lehman Mayer. Modern Retailing Theory and Practice. Plano, Texas: Business Publications, Inc., 1981.

Meyer, Warren G., Peter G. Haines and E. Edward Harris. Retailing Principles and Practices. New York: Gregg/McGraw-Hill, 1982.

McCarthy, E. Jerome. Basic Marketing: A Managerial Approach. Homewood IL: Richard Irwin, Inc., 1981.
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VIII. HUMAN RELATIONS
Understand that to get along with employers and co-workers, employees must demonstrate proper attitudes (e.g., self-control, adaptability, integrity, self-expression, etc.)
Tell how personal appearance can affect job success.
Explain how knowledge of human relations can be used to increase employee satisfaction, efficiency, and production.
Explain the various factors that affect employee morale.
Know that workers who are willing to accept responsibility for their actions are likely to win the respect of their supervisors and co-workers.

Content Objective
Recognize the clues that point to poor employee morale, and suggest remedial strategies the employer can use.
Explain the abilities needed to analyze situations, solve problems, and made decisions.
Understand the factors involved in successfully delegating responsibility (i.e., selecting the right person, giving clear instructions, follow-up).
Tell how different styles of leaqership (e.g., autocratic, democratic, free-rein) can be used to advantage in different wor~ situations.

HUMAN RELATIONS:

Suggested References

Eggland, Stephen and John W. Williams. Human Relations at Work. Cincinnati: South-Western, 1981.

Hiserodt, Donald. Human Relations in Marketing. New York: Gregg/ McGraw-Hill,1978.

Russon, Allien R. and Harold R. Wallace. Personality Development at Work. Cincinnati: South-Western, 1981.

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IX. PROFESSIONAL SKILLS
Know how to select and recruit students for whom a program in Distributive Education would be most beneficial.
Know the importance of maintaining high ethical standards when dealing with the community.
Understand the function of on-the-job visitation in the valuation of a student1s overall progr~ss and needs.
Know how to pinpoint and constructively criticize danger signs in a student's on-the-job performance (e.g., tardiness, absenteeism, complaints).
Know how to match student's skills and attitudes to appropriate jobs in distribution.
Understand the advantages of coordinating student's onthe-job learning activities with classroom activities.
Know how to set up and maintain appropriate training facilities for Distributive Education students.
Know how to assist students in planning long-term career goals.
Understand how DECA functions and how to use is a a mora1ebuilder for students.
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Content Objective
Know how to prepare students for the different management policies and organizational patterns they may encounter in on-the-job learning activities.
Be able to describe how entry-level employees may progress within an organization.
List some of the resources available to a Distributive Education program (such as instructors, equipment, and supplies, etc.).
Know that trade journals are periodicals are valuable sources of information for curriculum planning and student projects.
Understand how maximum supervision of a studentteacher can benefit both the trainee and the students involved.
Know the importance of having a departmental budget.
Know methods of identifying, acquiring, and preparing written and audio-visual materials.
Understand the importance of keeping parents informed of their children's activities.
Explain the advantage of participating in local business and civic organizations when seeking fieldwork sites for a Distributive Education program.

Know how to use the training sponsor as a source of information regarding the student's progress at work.
Know benefits which a Distributive Education program can derive from good public relations (e.g. t guest speakers, field trips, fund raising support t etc.).
Explain different methods of publicizing Distributive Education in the community.
Know the advantages of using the school guidance department when setting up a Distributive Education program.
Identify interview techniques that can be used in vocational counseling.
Know how to secure, prepare, and utilize information pertaining to career planning.
Be aware of how federal and state labor laws pertain to on-the-job training of secondary school students.
Know the importance of getting students actively involved in Distributive Education at state and national levels.
Be able to use the media as a tool for promoting the Distributive Education program.
Know how to use the :r es u1t s of an evaluation to improve a program.

Know the practical implications of existing state and federal laws pertaining to vocational education. Know the purposes of and techniques for taking community surveys as part of a Distributive Education program. Know how to set up a training agreement that will be advantageous to both the trainer and the student involved. List the advantages of a practical filing system for a Distributive Education teacher/coordinator. Know the key factors involved in developing an individual training plan for a student. Know the advantage of post-secondary programs in distribution. Know some of the considerations involved in planning a curriculum aimed at reaching economically disadvantaged youths. Understand how Distributive Education programs are regulated and given financial support by the State of Georgia. Know how to work with the school librarian to order books and audio-visual materials oriented towards career education. Know how to establish and use advisory committees for a Distributive Education program.

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Know criteria for judging materials to be acguired for the classroom (e.g., 1act of bias, accuracy, comprhensiveness, current information).
PROFESSIONAL SKILLS

Know sources of technical information for use in curriculum-writing.
Suggested References

Crawford, Lucy C. and Warren G. Meyer. Organization and Administration of Distributive Education. Columbus, OH: Charles Merrill, Inc., 1975.
Meyer, Warren G., Lucy C. Crawford and Mary K. K1aurens. Coordination in coorerative Vocational Education. Columbus, OH: Charles Merri1 , Inc., 1975.

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