Free IIA-CIA-PART4 Exam Braindumps (page: 56)

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Which of the following elements of an organization requires people to be accountable to superiors?

  1. Coordination of effort.
  2. Division of labor.
  3. Common goal or purpose.
  4. Hierarchy of authority.

Answer(s): D

Explanation:

A hierarchy of authority requires people to be accountable to their superiors in the hierarchy.



Which of the following is a staff position in the bank?

  1. The manager of customer service-checking, the department that handles checking account inquiries and transactions.
  2. The directory of personnel, the department that handles the hiring, firing, promotion, etc., of all employees.
  3. The chief loan officer, who is in charge of final approval of all loans.
  4. The vice president in charge of the mortgage department, which handles mortgages on business and residential property.

Answer(s): B

Explanation:

Staff positions in any organization advise and support the line positions. They indirectly help to achieve the organization's basic objective. Each staff position's authority is, at most, functional. Such authority is exercised only over activities related to the staff's function or specialty.



The manager of customer service checking at the bank is most likely to encounter conflicts) because of:

  1. The department's reliance on the savings manager and the money market manager.
  2. The manager of customer service checking providing services for customers who do not have checking accounts.
  3. The requirement that the manager of customer service checking must report directly to both the president and the vice president for customer accounts.
  4. A potential disagreement with the director of personnel about a subordinate's

    performance appraisal.

Answer(s): D

Explanation:

The director of personnel DP) must coordinate all employee evaluations. Although the manager of checking services is in a line position that is not under the DP, s)he works with the DP when hiring, dismissing, transferring, or evaluating employees.



A line position:

  1. Is indirectly responsible for achieving the organization's basic objectives.
  2. Makes administrative and operating decisions.
  3. Advises and assists staff positions.
  4. Is indirectly involved with the organization's product(s) and/or services.

Answer(s): B

Explanation:

A line position is in the direct chain of command and is responsible for administering policy and making operating decisions. People in line positions have direct responsibility for achieving the organization's basic objectives and thus have formal or legitimate authority.






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