IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 751:

  Which type of organization is based upon strategic long-term relationships based upon implicit contracts and coordination through adaptation?

  A. Hourglass organization.

  B. Cluster organization.

  C. Network organization.

  D. Virtual organization.

  Correct Answer: C

  A network organization is a network based upon coordination through adaptation. It also is based upon long-term relationships without specific legal ties.

• Question 752:

  The organizational chart:

  A. Is used only in centralized organizations.

  B. Is applicable only to profit-oriented companies.

  C. Depicts only line functions.

  D. Depicts the lines of authority linking various positions.

  Correct Answer: D

  An organizational chart is used to represent the organizational structure of an entity. It normally resembles a pyramid, with the chief executive on top and the operating work force on the bottom. Lines show reporting relationships, lines of authority, and task groupings. An organizational chart depicts promotional or career tracks and illustrates the span of control and the number of organizational levels.

• Question 753:

  A staff auditor is technically outstanding and works well with audit clients but is not good at leading an audit team. To improve the auditor's performance, the auditor should be:

  A. Put in charge of the biggest project; the only way to learn is by performing the task.

  B. Put in charge of small projects with set milestones and a fully trained staff.

  C. Sent to school for management theory classes.

  D. Left alone and given assignments that accentuate personal strengths and avoid personal weaknesses.

  Correct Answer: B

  The auditor can learn to lead small teams, which will in turn prepare him or her to lead larger projects.

• Question 754:

  Identify the management technique in which employees assist in setting goals, making decisions, solving problems, and designing and implementing organizational changes.

  A. Total quality control.

  B. Job enlargement.

  C. Kanban.

  D. Participative management.

  Correct Answer: D

  According to Marshall Soshkin [Participative Management is an Ethical Imperative," Organizational Dynamics 12 (Spring 1984):4-22] employees may participate in goal setting, decision making, problem solving, and designing and implementing change. Subject to various individual (values and attitudes), organizational (e.g. job design and company culture), and environmental (such as technological change and competition) contingencies, workers who participate in the aforementioned ways should experience greater autonomy and find their tasks more meaningful. In turn, this experience should lead to satisfaction, challenge, security, andacceptance and commitment. Ultimate results are innovation and improved performance and productivity.

• Question 755:

  Which approach to understanding leadership focuses on the social skills, judgment, and maturity of the leader?

  A. Behavioral styles theory.

  B. Emotional intelligence theory.

  C. The Ohio State model.

  D. Path-goal theory.

  Correct Answer: B

  A recent traitist approach is based on the emotional intelligence of leaders, that is, their social skills and judgment, maturity, and emotional control. These abilities can be learned, especially when a manager or employee understands that immaturity, erratic behavior, and uncontrolled negative emotions have a bad effect on the workplace. According to Daniel Goleman, a leader can acquire social capital through exhibiting the following leadership traits: 1Self-awareness is knowing oneself. 2Self-management is the ability to prevent one's mood swings from interfering with positive relationships. 3Social awareness is understanding the actions and emotions of others. This ability helps a person to adapt in a productive way. 4Relationship management is an ability possessed by a person who communicates and resolves conflict effectively. Humor and a benign approach are characteristics of people who develop good relationships.

• Question 756:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, the delegating leadership style is appropriate when followers have:

  A. Low maturity.

  B. Low to moderate maturity.

  C. Moderate to high maturity.

  D. High maturity.

  Correct Answer: D

  The dimensions of the delegating leadership style are low task and low relationship. Consequently, task-and relationship-related behaviors are low. The leader provides little direction or support because the maturity of followers is high. They are willing and able to do what is necessary.

• Question 757:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, a participating leadership style has which dimensions?

  A. High task and high relationship.

  B. High task and low relationship.

  C. Low task and high relationship.

  D. Low task and low relationship.

  Correct Answer: C

  A participating leadership style encourages the sharing of ideas and facilitates decision making. The leader must therefore be an effective communicator. The participating leadership style is appropriate when followers have moderate to high maturity, that is, when they are able but not willing to perform the desired actions.

• Question 758:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, a telling leadership style has which dimensions?

  A. High task and high relationship.

  B. High task and low relationship.

  C. Low task and high relationship.

  D. Low task and low relationship.

  Correct Answer: B

  A telling leadership style provides specific instructions to employees and closely supervises performance. Thus, the leader tells followers what tasks to accomplish and how to do them. Task-related behavior is high and relationship-related behavior is low. The telling leadership style is appropriate when followers have low maturity; that is, when they are lacking in both competence and confidence, so that they are unable and unwilling to do what is necessary.

• Question 759:

  Which of the following leadership styles is least likely to consider input from employees in the decision process?

  A. Laissez faire.

  B. Autocratic.

  C. Participative.

  D. Consultative.

  Correct Answer: B

  Under the autocratic style, the manager dictates all decisions to employees. Employees are not allowed to give input. Autocratic leaders rely on threats and punishment, and do not trust workers. Autocratic leadership can sometimes be the most effective form, such as where there is limited time to make a decision or when workers do not respond to any other leadership style.

• Question 760:

  Which of the following is not an effective principle for guiding a manager's use of leadership techniques?

  A. Serve as a model of the behavior expected from others.

  B. Value accountability.

  C. Value differences.

  D. Follow written procedures at all times.

  Correct Answer: D

  Leadership is the act or process of influencing, inspiring, and guiding people so they will strive willingly toward the achievement of group objectives through common effort. Much management research has been devoted to determining the traits of leaders, leadership styles, and the situations in which particular styles are effective. However, a blind focus on internal process is a habit of administration, not of leadership. A manager of this type is called a bureaucratic leader. In the absence of a specific policy or procedure, (s)he seeks guidance from the next levelof management. In some situations, for example, when employees handle cash or highly delicate or dangerous equipment or chemicals, bureaucratic leadership may be needed.