IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 301:

  A claimed advantage of decentralizing is:

  A. Concentration of authority.

  B. Manager development.

  C. Elimination of duplication of effort.

  D. Departmentalization.

  Correct Answer: B

  When an organization changes from a centralized to a decentralized structure, top management is delegating more authority to middle and lower levels. Thus, managers at these lower levels are usually hired and developed more rigorously than under the centralized structure.

• Question 302:

  Centralization and decentralization are defined according to the relative delegation ofdecision-makingauthority by top management. Many managers believe that decentralized organizations have significant advantages over centralized organizations. A major advantage of a decentralized organization is that:

  A. Decentralized organizations are easier to control.

  B. Decentralized structures streamline organizations and eliminate duplication of resources.

  C. Decentralized organizations have fewer managers than centralized organizations.

  D. Decentralized organizations encourage increased initiative among employees.

  Correct Answer: D

  A decentralized organization allows lower level employees to participate in decision making. This increased involvement encourages initiative and creative thinking and is especially appropriate in complex and rapidly changing environments.

• Question 303:

  A flat organization structure is one with relatively few levels of hierarchy and is characterized by wide spans of management control. A tall organization has many levels of hierarchy and narrow spans of control. Which of the following situations is consistent with a flat organization structure?

  A. Tasks require little direction and control of subordinates.

  B. Work areas are geographically dispersed.

  C. Tasks are highly complex and varied.

  D. Subordinates perform distinctly different tasks.

  Correct Answer: A

  Flat structures have the advantages of fast information flow from the top to the 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. For a flat structure to be successful, employees must be able to work without supervision much of the time because a manager with many employees has little time for each one.

• Question 304:

  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 305:

  Which of the following is a disadvantage of a flat organizational structure?

  A. Employees are not encouraged to be creative.

  B. The input of fresh ideas from outside the company is limited because employee turnover is low.

  C. Managers spend too much time training individuals and not enough time supervising.

  D. Employees may not be performing work tasks properly.

  Correct Answer: D

  A flat organizational structure concentrates decision-making authority at one level. Tasks and performance objectives may be unclear to employees because of a lack of supervision.

• Question 306:

  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 307:

  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 308:

  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 309:

  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 310:

  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.