Free IIA-CIA-PART4 Exam Braindumps (page: 53)

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A small engineering consulting firm accepts special projects from customers in a variety of fields. Its choice of an organic organizational design was most likely based on its:

  1. Lack of concern for self-fulfillment of employees.
  2. Preference for formal communication.
  3. Adoption of directive leadership style.
  4. Participative decision making processes.

Answer(s): D

Explanation:

The organic structure is best suited to a company that emphasizes operational efficiency less than the flexibility needed to respond quickly to changes in its environment and the creativity to find solutions to new problems. Decision making in this context tends to rely on input from many sources and requires multidirectional communication. Hence, a horizontal or flat structure typified by project or matrix management will be appropriate.



An adhocracy is most likely to be found in what kind of organizational structure?

  1. Mechanistic.
  2. Organic.
  3. Bureaucratic.
  4. Classical.

Answer(s): B

Explanation:

The organic structure is at the opposite end of the design continuum from a mechanistic organization. An organic structure has groupings of similar persons and resources in subunits horizontal specialization); relatively few policies, procedures, and rules; less stringent formal controls; decentralized staff; and matrix or divisional departmentation.



What is a primary reason for planning?

  1. Reacting to employee needs.
  2. Environmental uncertainty.
  3. Reacting to competition.
  4. Organizational policy.

Answer(s): B

Explanation:

Planning is influenced and limited constrained) by external environmental) factors, the effects of which cannot be determined with certainty. Market trends, social change, competitors' actions, and governmental regulation are among these environmental factors.



A substantial duplication of functions characterizes which of the following structures?

  1. Simple structure.
  2. Divisional structure.
  3. Machine bureaucracy.
  4. Professional bureaucracy.

Answer(s): B

Explanation:

A division is essentially a self-contained organization. Hence, it must perform all or most of the functions of the overall organization of which it is a part. It is characterized by substantial duplication of functions when compared with more centralized structures.






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