to get the workflow button.
Go to workflow and click edit given with current work flow (yes you can edit changes in current workflow)
1. jira shows only button for transitions set by you, so if you add more transitions (out going arrow) to the desired status , you will get the workflow drop down button.
2. it's easy when you do edit with text method . Also one thing to remember first two trasitions will appear on issue screen and rest come under workflow drop down
The workflow drop down only appears if you have more than two possible transitions available from the current status.
From the image i see, your workflow is designed such that when the issue is "In QA" state, you can only transition the issue to "Pass QA" or "Fail QA".
Please refer the document here to know more about configuring workflows. That should answer all the questions you have.
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