IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 681:

  Which of the following statements about group decision making is most likely false?

  A. There is a lack of responsibility for group decisions.

  B. Group decision making is almost always less efficient than individual decision making.

  C. The desire by individual members to be accepted by the group often restrains open disagreement.

  D. Group decision making tends to be less creative than individual decision making.

  Correct Answer: D

  Groups tend to be more creative than individuals because diversity of member views generally results in the consideration of more alternatives for solving a problem but the social pressure to conform also may inhibit creativity.

• Question 682:

  Which one of the following is generally not beneficial to group decision making in an organization?

  A. More information.

  B. Acceptance.

  C. More knowledge.

  D. Dominant members.

  Correct Answer: D

  Group decision making, such as by committee, works better when the committee is small and the members accept each other as contributing parts of the group. A dominant member is not desirable. The chair should act as a moderator and not be considered threatening or overbearing by the other members.

• Question 683:

  Which of the following is not an advantage of group decision making as compared to individual decision making?

  A. Groups obtain an increased degree of acceptance of a solution so that it may be more easily implemented.

  B. Group decision making is consistent with democratic methods.

  C. Group members bring more complete information and knowledge into the decision process.

  D. Group members avoid expressing opinions that deviate from what appears to be the group consensus.

  Correct Answer: D

  The groupthink phenomenon is undesirable. Groupthink occurs when group members accept what appears to be the group consensus rather than giving their honest input. The result maybe decisions with which some members of the group are not happy.

• Question 684:

  Which of the following can be a limiting factor associated with group decision making?

  A. Groups generally do not analyze problems in enough depth.

  B. It is very difficult to get individuals to accept decisions made by groups.

  C. Groups have a difficult time identifying the important components of decision making.

  D. Accountability is dispersed when groups make decisions.

  Correct Answer: D

  The difficulty associated with group-aided decision making is accountability for the decision. If a decision is made by a group, no one person is responsible. The best method is for the group to recommend a decision but for a manager to assume responsibility for making the final decision.

• Question 685:

  The CEO of a rapidly growing high-technology firm has exercised centralized authority over all corporate functions. Because the company now operates in four geographically dispersed locations, the CEO is considering the advisability of decentralizing operational control over production and sales. Which of the following conditions probably will result from and be a valid reason for decentralizing?

  A. Greater local control over compliance with governmental regulations.

  B. More efficient use of headquarters staff officials and specialists.

  C. Less overall operating costs.

  D. Quicker and better operating decisions

  Correct Answer: D

  Decentralization results in greater speed in making operating decisions because they are made by lower-level managers instead of being referred to top management. The quality ofoperating decisions should also be enhanced, assuming proper training of managers, because those closest to the problems should be the most knowledgeable about them.

• Question 686:

  The most effective way fora supervisor to delegate a task to an employee is to:

  A. Define the desired outcome and the approach precisely and in writing.

  B. Define the desired outcome precisely, discuss possible approaches with the employee, and reach agreement on the approach to be taken.

  C. Let the employee try to perform the task fora defined period of time and then meet to critique the approach, clarify the assignment as needed.

  D. Give the assignment in very general terms, have the employee develop the desired outcome and approach, and then review and critique the employee's decisions.

  Correct Answer: B

  The supervisor's expectations should be clear. The employee should also be involved in determining how to reach the desired outcome, thereby increasing both acceptance and understanding of the assignment.

• Question 687:

  An organization has 10 groups of teams that each consists of multi-skilled workers. Workers are often transferred between teams when needed, and communication among and within groups is emphasized. The corporation would be classified as a(n)

  A. Hourglass organization.

  B. Cluster organization.

  C. Network organization.

  D. Virtual organization.

  Correct Answer: B

  A cluster organization is essentially a group of teams. The workers are often multi-skilled and shift among teams as needed. The workers undergo special training and team-building exercises. The pay is also based upon knowledge.

• Question 688:

  Which of the following is not a cost of decentralization?

  A. Dysfunctional decision making owing to disagreements of managers regarding overall goals and sub goals of the individual decision makers.

  B. A decreased understanding of the overall goals of the organization.

  C. Increased costs for developing the information system.

  D. Increased costs of corporate-level staff services and management talent.

  Correct Answer: D

  The costs of centralized staff may actually decrease under decentralization. On the other hand, the corporate staff and the various services they provide may have to be duplicated in various divisions, thereby increasing overall costs. Suboptimal decisions may result fromdisharmony among organizational goals, subgoals of the division, and the individual goals of managers. The overall goals of the firm may more easily be misunderstood because individual managers may not see the larger picture. Moreover, the information system necessary for adequate reporting in a decentralized mode will tend toward redundancy, which increases costs.

• Question 689:

  Which of the following is most likely to be a disadvantage of decentralization?

  A. Lower-level employees will develop less rapidly than in a centralized organization.

  B. Top management will have less time available to devote to unique problems.

  C. Lower-level managers may make conflicting decisions.

  D. Lower-level managers may lose motivation.

  Correct Answer: C

  The disadvantages of decentralization include a tendency to focus on short-run results to the detriment of the long-term health of the entity, an increased risk of loss of control by top management, the increased difficulty of coordinating interdependent units, and less cooperation and communication among competing decentralized unit managers.

• Question 690:

  Which of the following is not a characteristic of decentralized organizations?

  A. Decentralized organizations are usually more flexible.

  B. Decentralized organizations have reduced costs through resource sharing.

  C. Decentralized organizations have fewer decisions made lower in the hierarchy that are monitored by senior management.

  D. Decentralization has a positive influence on morale.

  Correct Answer: B

  The main benefits of centralization are more effective control and reduced costs through resource sharing. In a centralized organization, senior management is able to direct control over subordinates and direct the flow of resources. Senior management is able to allocate reduce costs most effectively because they are aware of where expenses can be reduced across departments within an organization.