IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 701:

  Which of the following is a likely effect of a narrow span of control?

  A. The manager closely supervises employees.

  B. Each employee is given more responsibility.

  C. The organizational structure is flexible.

  D. The manager's control over employees is limited.

  Correct Answer: A

  The span of control is the number of subordinates for which a manager or supervisor is responsible. When the span of control is narrow, a few subordinates are tightly controlled. A narrow span of control is typical of tall organizational structures.

• Question 702:

  Which of the following is an advantage of a tall organizational structure?

  A. The flow of communications from top to bottom and bottom to top is improved.

  B. The organization's overall objectives are familiar to all employees.

  C. More opportunity to advance.

  D. Labor expenses are reduced.

  Correct Answer: C

  The organizational structure consists of the order, disposition, and relationships of positions and lines of responsibility within an entity. In a tall organizational structure, decision-making responsibility is shared by many levels.

• Question 703:

  The optimal span of control of a manager is contingent upon several situational variables. For instance, a manager supervising workers within the same work area who are performing identical tasks that are simple and repetitive would best be able to supervise:

  A. An unlimited number of employees.

  B. Only a few workers a narrow span of control).

  C. A relatively large number of employees a wide span of control).

  D. Fewer workers than if the workers were geographically dispersed.

  Correct Answer: C

  In any situation, there are underlying variables that influence the number of subordinates a manager can supervise. In general, if jobs are similar, procedures are standardized, and physical dispersion is minimized, a wide span of control is most effective.

• Question 704:

  The difference between a tall organization structure and a flat organization structure is that, in the former.

  A. The communication process takes longer and is of poorer quality.

  B. Maintenance of the organization is less costly.

  C. The morale of lower-level employees is generally higher.

  D. A higher degree of coordination and cooperation is created.

  Correct Answer: A

  "Flat" organizational structures have relatively few levels from top to bottom. "Tall" organizational structures have many levels between top and bottom. Flat structures have the advantages of fast information flow from top to bottom of the organization and increased employee satisfaction. Tall structures are faster and more effective at problem resolution because of the increased frequency of interaction between superior and subordinate and the greater order imposed by the hierarchy. Studies do not indicate great advantages for either flat or tall structures.

• Question 705:

  The most likely span of control to apply over 14 data-entry clerks who do essentially the same job and work in the same office would be:

  A. Close.

  B. Narrow.

  C. Moderate.

  D. Wide.

  Correct Answer: D

  In any situation, there are underlying variables that influence the number of subordinates a manager can supervise. In general, if jobs are similar, procedures are standardized, and physical dispersion is minimized, a wide span of control is most effective.

• Question 706:

  In which of the following situations would a narrower span of control be more appropriate?

  A. Managers do not spend a great deal of time on planning or strategic management.

  B. Managers must spend a great deal of time coordinating with other managers.

  C. Subordinates work in the same area rather than being geographically dispersed.

  D. Work performed by subordinates is substantially identical.

  Correct Answer: B

  If substantial coordination is required, a manager benefits from reduced supervision requirements. In addition, increased coordination implies that the work done by subordinates is not standardized. As spans of control move from wider to narrower, the work done becomes less similar and more complex.

• Question 707:

  Which of the following is generally true regarding a manager's span of control?

  A. Narrow spans of control are typically found in flat organizations, those with few hierarchical levels.

  B. An organization with narrow spans of control needs more managers than those with wide spans.

  C. Wider spans of control mean higher administrative expense and less self-management.

  D. Wider spans of control help ensure good internal controls and policy compliance throughout an organization.

  Correct Answer: B

  Span of control span of management or span of authority) is an upper limit to the number of people who can be effectively and efficiently supervised by one person. Narrow spans of control mean that the ratio of those supervised subordinates) to those doing the supervision managers) is lower. Hence, more managers are required.

• Question 708:

  When determining the appropriate span of control, the most important consideration is:

  A. The set of policies and procedures currently in effect.

  B. The typical span of control used by other entities.

  C. The preference of the company's creditors.

  D. That all departments will be evaluated, whether or not they will be affected.

  Correct Answer: A

  The most important factors to consider are the employees' and manager's preferences and skills, the firm's culture, the tasks involved, physical location of the department, and established policies and procedures.

• Question 709:

  Which of the following factors is least likely to affect a manager's direct span of control?

  A. Frequency of supervisor-subordinate contact.

  B. The manager's willingness to delegate authority.

  C. The manager's training and communication skills.

  D. Number of people in the corporation.

  Correct Answer: D

  The optimal span of control is the number of subordinates that a given manager can effectively supervise. It is a function of many situational factors. However, the total number of people in an organization has no bearing on the optimal span of control of a particular manager.

• Question 710:

  As an organization increases the number of employees, its structure becomes more complex. Rules become more formalized and more supervisors are hired to direct the increased numbers of subordinates. What is the nature of the size-structure relationship?

  A. The size-structure relationship is linear.

  B. The structure becomes fixed once an organization attains a level of about 200 employees.

  C. The size-structure relationship is concave.

  D. None of the answers are correct.

  Correct Answer: D

  As an organization increases in size, its structure tends to become more formal and mechanistic. More policies and procedures are necessary to coordinate the increased number of employees, and more managers must be hired. However, the relationship between size and changes in structure is linear only within a certain range. For example, adding 100 employees to a company with 100 employees is likely to cause significant structural change, but adding the same numberto a workforce of 10,000 is unlikely to have little impact. By the time a company reaches a certain size 1,500 to 2,000 or more), it usually has most of the qualities of a mechanistic structure.