IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 731:

  When an organization depends to a great extent on its environment, which of the following statements best characterizes the relationship among an organization's environment, the level of uncertainty it faces, and its structure? The more dynamic and complex the environment, the

  A. More uncertainty the organization will face and the more organic the structure should be.

  B. More uncertainty the organization will face and the more mechanistic the structure should be.

  C. Less uncertainty the organization will face and the more autocratic the structure should be.

  D. Less uncertainty the organization will face and the more organic the structure should be.

  Correct Answer: A

  A dynamic and complex organizational environment faces constant change, so the level of uncertainty increases. The more uncertainty an organization faces, the more organic the structure should be. Organic organizations tend to be flexible and adaptive to change.

• Question 732:

  Routine tasks, which have few exceptions and problems that are easy to analyze, are conducive to:

  A. Formalized structure, in which procedures manuals and job descriptions are common.

  B. Decentralized decision making, in which decisions are pushed downward in the organization.

  C. Organic structures that emphasize adaptability and flexibility to changing circumstances.

  D. High degrees of job satisfaction on the part of the employees performing them.

  Correct Answer: A

  Technology has been viewed in terms of two dimensions:task variability and problem analyzability, or the exceptions encountered in work and the search procedures for responding to the exceptions, respectively. Routine tasks have few exceptions, and the search for solutions is well defined. Because routine tasks change little overtime, they are well suited to a mechanistic structure. One characteristic of such a structure is high formalization.

• Question 733:

  For the past several years, many organizations have attempted to reduce administrative costs and respond more rapidly to customer and competitive demands. One method is to eliminate layers of middle management. The element of organizational structure affected by such reductions is:

  A. Spatial differentiation.

  B. Formalization.

  C. Vertical differentiation.

  D. Formalization of jobs.

  Correct Answer: C

  Vertical differentiation concerns the depth of the organizational hierarchy. The greater the number of levels, the more complex the organization, the greater the potential for information distortion, the more difficult the coordination of management activities, and the slower and less effective the response to changing conditions.

• Question 734:

  The key component of an organization configured as a professional bureaucracy is the:

  A. Strategic apex.

  B. Techno structure.

  C. Line administration.

  D. Operating core.

  Correct Answer: D

  According to Henry Minlzberg, an organization has five components. Depending on which is in control, one of five different structures will evolve. The five organizational components include 1) the operating core, which consists of workers who perform the basic tasks relatedto production; 2) the strategic apex or senior managers; ) the middle line, or managers who connect the core to the apex; 4) the technostructure or analysts who achieve a certain standardization in the organization; and 5) the support staff, which provides indirect support services. A professional bureaucracy e.g., a university or library) is a complex and formal but decentralized organization in which highly trained specialists have great autonomy. Duplication of functions is minimized. For example, a university would have only one history department. Thus, the operating core is in control. It is the key in a professional bureaucracy because of the emphasis on standardized skills. Professional bureaucracy engages people with standardized skill sets and allows them to function in an unsupervised manner.

• Question 735:

  Which of the following is true with regard to the contingency approach to solving problems within an organization?

  A. The organization's environment plays the largest role in finding situational determined answers.

  B. The organization may be less adaptive when the environment is more uncertain.

  C. The organization should search fora design format that can be used in all cases.

  D. The contingency approach focuses on a closed systems thinking.

  Correct Answer: A

  The contingency approach arguesfor situationaldetermined answers, the key is finding the relevant factors in the organization's environment.

• Question 736:

  In a dynamic equilibrium, successful organizations have a balance between fragmentation and coordination. Which of the following may cause an organization to risk the loss of this equilibrium?

  A. A framework of rules.

  B. A hierarchy of authority.

  C. Formation of cross-functional groups.

  D. Division of labor and technical specialization.

  Correct Answer: D

  The division of labor and technical specialization often lead to differentiation within an organization. Differentiation leads to fragmentation because specialists often have a narrow focus and make integration more difficult.

• Question 737:

  Which of the following is a characteristic of a mechanistic organization?

  A. Knowledge by employees tends to be task-specific.

  B. Self-control is preferred to hierarchical control.

  C. Superiors usually have an informational and advisory role.

  D. Communication is horizontal.

  Correct Answer: A

  A mechanistic organization designs tasks that are specifically designed and have little flexibility. Therefore, the mechanistic organization focuses on task-specific knowledge by its employees.

• Question 738:

  A likely effect of a bureaucratic structure on employee motivation is that:

  A. Employee performance will be mediocre because of inflexible standards and impersonal surroundings.

  B. An employee will pursue organizational goals because of his/her participation in establishing them.

  C. Morale will be high because of each employee's feeling of belonging and ownership.

  D. Job enrichment will be high because of each employee's involvement in developing and adapting his/ her job description and required tasks.

  Correct Answer: A

  In a bureaucracy, standards for evaluating job performance do not fluctuate because required tasks never change. The work environment is impersonal, which limits individual growth of employees because no incentive for extraordinary performance is present.

• Question 739:

  Which of the following scenarios illustrates an organization that has become out of balance by focusing too much on efficiency rather than effectiveness?

  A. The job is not completed and resources are wasted.

  B. The job is completed but resources are wasted.

  C. The job is not completed but resources are not wasted.

  D. The job is completed and resources are not wasted.

  Correct Answer: C

  In the narrowest sense, effectiveness is achievement of objectives. It is contrasted with efficiency, which is the ratio of output to input. In the broadest sense, an organization must achieve its objectives efficiently to be considered effective. When the job is not completed but resources are not wasted, the organization is out of balance by focusing too much on efficiency.

• Question 740:

  The alignment of managerial goals with organizational goals usually requires:

  I. Assigning responsibility for activities.

  II. Delegating the authority to perform necessary tasks.

  III. Establishing accountability.

  IV.

  Measuring and evaluating performance.

  A.

  I and IV only.

  B.

  I, II, and III only.

  C.

  II, Ill, and IV only.

  D.

  I, II, Ill, and IV.

  Correct Answer: D

  Authority is the right to direct and exact performance from others, including the right to prescribe the means and methods by which the work will be done. The right to direct should be distinguished from the ability the power) to accomplish tasks. Responsibility is the obligation to perform. In the classical view, this obligation is formally imposed by a superior and is inherent in any job. In the behavioral view, responsibility must and should be delegated; there is a successive dividing and passing down of obligation. The appropriate amount of authority or power must be delegated with the responsibility. However, a higher position cannot escape ultimate responsibility. Accountability is the duty to account for the fulfillment of the responsibility. In practice, accountability is the duty to report performance to one's superior and the physical means for reporting or being able to substantiate performance, i.e., record keeping. Thus, measuring and evaluating performance is related to accountability. Consequently, an organizational structure is effective if it facilitates the contribution of individuals toward the attainment of enterprise objectives.