Free IIA-CIA-PART4 Exam Braindumps (page: 60)

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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?

  1. Tasks require little direction and control of subordinates.
  2. Work areas are geographically dispersed.
  3. Tasks are highly complex and varied.
  4. Subordinates perform distinctly different tasks.

Answer(s): A

Explanation:

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.



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:

  1. Decentralized organizations are easier to control.
  2. Decentralized structures streamline organizations and eliminate duplication of resources.
  3. Decentralized organizations have fewer managers than centralized organizations.
  4. Decentralized organizations encourage increased initiative among employees.

Answer(s): D

Explanation:

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.



A claimed advantage of decentralizing is:

  1. Concentration of authority.
  2. Manager development.
  3. Elimination of duplication of effort.
  4. Departmentalization.

Answer(s): B

Explanation:

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.



Which of the following is a reason for delegating?

  1. The manager wants to make more decisions.
  2. Subordinates lack initiative.
  3. The manager wants to remain the sole expert in the manager's field.
  4. Subordinates have too many responsibilities.

Answer(s): B

Explanation:

Delegation is the assignment of a manager's authority and/or workload to the manager's subordinates. By increasing subordinates' responsibilities, the manager gives them more opportunity to exercise judgment and become more confident.






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