IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 351:

  Although bureaucracy is often perceived negatively by the public, bureaucracy is a feature of nearly every large company. Which of the following is a sign that a bureaucracy is dysfunctional?

  A. A diversity of jobs.

  B. Rules that obscure responsibility.

  C. A large number of rules necessary for day to day operations.

  D. Obedience to authority.

  Correct Answer: B

  A sign that a bureaucracy is dysfunctional is the development of rules that are meaningless or that obscure accountability. A lack of accountability shows that the bureaucracy is ineffective at identifying the source problems and creating solutions to solve the problems.

• Question 352:

  Which of the following concepts is not consistent with a successful authoritarian organization?

  A. Each subordinate should only have one superior.

  B. Superiors may have as many subordinates as possible within the superior's span of control.

  C. Responsibility may be delegated.

  D. The hierarchy of authority should be precisely defined.

  Correct Answer: C

  Taylor, Fayol, and other traditionalists advocated the creation of authoritarian organizations. One of the criteria for success was the ability to delegate authority but not responsibility. Responsibility should always remain with the person who made the decision.

• Question 353:

  Organizational charts often represent the formal structure of an organization. Often the organizational chart represents a pyramid with the chief executive on the top and the operating workforce on the bottom. Which of the following would not be included in a typical organizational chart?

  A. The span of control and the number of organizational levels.

  B. Communication channels.

  C. Promotional or career tracks.

  D. Informal influence or friendships.

  Correct Answer: D

  Organizational charts often show the formal relationships between employers and employees. However, a shortcoming of organizational charts is that they do not show informal relationships between the upper and lower levels of the corporate hierarchy.

• Question 354:

  A public university would be considered which type of organization?

  A. Commonweal organization.

  B. Business organization.

  C. Nonprofit service organization.

  D. Mutual benefit organization.

  Correct Answer: C

  Nonprofit service organizations include charities and universities. Nonprofit service organizations serve particular groups of clients.

• Question 355:

  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 356:

  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 357:

  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 358:

  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 359:

  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 360:

  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.