A network organizational structure is one in which:
Answer(s): D
The subcontracting of major business functions to others is a feature of network structures.
Which of the following is a benefit of decentralization?
Decentralization is the extent to which decision-making power is delegated within an entity. When approval from upper-level management is not required, lower-level managers can make more timely decisions because they are closer to the necessary sources of information.
Which of the following is a reason that a manager may be reluctant to delegate?
Answer(s): A
Managers fear delegating because of insecurity, mistrust, insufficient planning, and/or aversion to the risk of being responsible for subordinates' actions.
Advantages of decentralization include all of the following except:
Answer(s): C
Organizational design should achieve a balance between centralization and decentralization. The main benefits of centralization are more effective control and reduced costs through resource sharing. The main benefits of decentralization are flexibility and adaptability that permit a rapid response to changes in circumstances. Accordingly, increased uniformity in decision making is an advantage of centralization. It reflects the benefit of more effective control.
Post your Comments and Discuss IIA IIA-CIA-PART4 exam with other Community members:
K.Tho Commented on October 05, 2023 Very helpful UNITED STATES
Our website is free, but we have to fight against bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the IIA-CIA-PART4 content, but please register or login to continue.