IIA IIA-CIA-PART4 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 331:

  During which stages do the primary issues among group members involve uncertainty about power and authority relationships?

  A. Yes Yes
  B. Yes No
  C. No Yes
  D. No No
  B. Yes No

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  According to Jewell and Reill, the principal issue in the early stages in uncertainty about power and authority relationships. The principal issue in the later stages is uncertainty about interpersonal relationships.

• Question 332:

  Which basic force(s) drive(s) industry competition and the ultimate profit potential of the industry?

  I. Threat of new entrants

  II. Bargaining power of suppliers

  III. Favorable access to raw materials and labor

  IV.

  Product differentiation

  A. I only.
  B. I and II only.
  C. Ill and IV.
  D. I, II, III, and IV.
  I. Threat of new entrants II. Bargaining power of suppliers III. Favorable access to raw materials and labor IV. Product differentiation
  B. I and II only.

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  Threat of new entrants and bargaining power of suppliers are among the five basic forces that drive industry competition and the ultimate profit potential in the industry. This potential is measured in terms of long-term return on invested capital. The other three forces are rivalry among existing firms, threat of substitutes, and threat of buyers' bargaining power.

• Question 333:

  Which of the following is an indicator of interpersonal skills that are necessary for members of a team?

  I. Routinely keeps superiors, team members, and other appropriate parties informed of significant developments.

  II. Spends sufficient time cultivating contacts with peers to obtain timely information or resolve issues outside formal channels.

  III.

  Routinely assumes an appropriate amount of work or responsibility for group projects.

  A. I only.
  B. I and II only.
  C. II and Ill only.
  D. I, II, and Ill.
  I. Routinely keeps superiors, team members, and other appropriate parties informed of significant developments. II. Spends sufficient time cultivating contacts with peers to obtain timely information or resolve issues outside formal channels. III. Routinely assumes an appropriate amount of work or responsibility for group projects.
  B. I and II only.

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  Building trust is central to team effectiveness. Individuals build trust through use of interpersonal skills that include interaction, cooperation, and ability to deal with other people. Thus, trust is built through timely and accurate communication; supportive behavior; showing respect, e.g., by delegation and effective listening; fairness of evaluations; predictability of behavior and promise-keeping; and competence exemplified by sound judgment and technical proficiency. Thus, a trusted team member routinely keeps superiors, team members, and other appropriate parties informed of significant developments. S)he also spends sufficient time cultivating contacts with peers to obtain timely information or resolve issues outside formal channels. However, routinely assuming an appropriate amount of work or responsibility for group projects is indicative of team participation, not of the interpersonal skills required of team members.

• Question 334:

  Which of the following steps works against effective listening?

  A. Listening for the emotion in the situation.
  B. Asking good questions.
  C. Listening to the steps to reach a solution.
  D. Helping the speaker to complete the point.
  D. Helping the speaker to complete the point.

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  By interrupting the speaker, even with good intentions, the listener may inhibit further communication. The listener also may be drawing unwarranted conclusions.

• Question 335:

  Faced with 3 years of steadily decreasing profits despite increased sales and a growing economy, which of the following is the healthiest course of action for a chief executive officer to take?

  A. Set a turnaround goal of significantly increasing profits within 2 months.
  B. Reduce staff by 10% in every unit.
  C. Reduce staff in the nonvalue-adding functions by 20%.
  D. Encourage innovation at all levels and use an early retirement program to reduce staff size.
  D. Encourage innovation at all levels and use an early retirement program to reduce staff size.

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  Organizational decline loss of effectiveness and efficiency coupled with inflexibility) may lead to downsizing, merger, reorganization, or liquidation. It results from decreased demand, resource limitations, or mismanagement. One characteristic of a declining organization is lack of innovation. Moreover, the most important cause of organizational decline is management complacency. In turn, a characteristic of management complacency is lack of innovation. Consequently, the CEO should encourage innovation at all levels. Also, downsizing has many negative effects. The enlightened view is that employees are not readily disposable commodities, but rather valuable resources who should be terminated only as a last resort. This view seeks alternatives to involuntary termination. One such alternative is a voluntary retirement program that offers accelerated retirement benefits, severance allowances, or other compensation.

• Question 336:

  Which of the following is a cultural aspect that typically makes international and intercultural communication more difficult?

  I. Long distances between sender and receiver.

  II. Body language.

  III. Language.

  IV.

  Attitude.

  A. I and Ill only.
  B. II and V only.
  C. I, IV, and V only.
  D. II, Ill, IV, and V only.
  I. Long distances between sender and receiver. II. Body language. III. Language. IV. Attitude.
  D. II, Ill, IV, and V only.

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  Facial, gestural, and postural body language, and other forms of nonverbal communication, may have different meanings in different cultures. Furthermore, because of the differences in language even within the same country, special care must be taken not to make mistakes or offend others in a foreign land. It is nearly impossible for someone with only a few semestersof a foreign language to understand the subtleties of nonnative communication. Attitudes, such as stereotyping, also may cause misunderstandings. In addition, time is a barrier to intercultural communication. The perception of time as it relates to business and social life varies with the culture. Polychronic time is based on a perception that time is nonlinear, flexible, and multidimensional. This perception is typical of Mediterranean,Latin American, and Arabic cultures. Monochronic time is based on a perception that time is the same for everyone and is measurable in standard units. This perception is common in Northern Europe and the U.S. These western cultures believe in punctuality and that time is money and should not be wasted. However, communication difficulties due to the long distances separating senders and receivers have been minimized by electronic communication, such as email, fax, and teleconferencing.

• Question 337:

  In accordance with Michael E Porter's generic strategies model, a firm with a broad competitive scope that has high sales volume, low margins, and efficient supply and distribution channels will most likely choose a

  A. Cost leadership strategy.
  B. Cost focus strategy.
  C. Differentiation strategy.
  D. Focused differentiation strategy.
  A. Cost leadership strategy.

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  Cost leadership is the generic strategy favored by firms that seek competitive advantage through lower costs and that have a broad competitive scope. Such a firm can earn higher profits than its competitors at the industry average price or charge a lower price to increase market share. The typical firm that follows a cost leadership strategy has low profit margins, a high volume of sales, and a substantial market share. Such a firm has efficient supply and distribution channels; is capable of large capital investment; if it is a manufacturer, has strengths in product design and process engineering; and closely supervises its labor force.

• Question 338:

  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.
  D. Participative management.

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  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 339:

  Two managers have been arguing about the distribution of money for capital investment projects affecting their respective production units. All of the projects are worthwhile and significantly exceed the organization's required rate of return. The approach that would create a win-win solution for the managers under these circumstances would be to:

  A. Smooth the differences of the two managers by emphasizing their common interests.
  B. Alter the attitudes and behaviors of the managers so that agreement can be reached.
  C. Force the managers to compromise by asking each of them to give up something.
  D. Expand the resources available so that both manager's projects can be funded.
  D. Expand the resources available so that both manager's projects can be funded.

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  Expanding the pool of scarce resources, in this case, the money available for capital projects, permits both managers to achieve his/her objectives without having to give up anything of value. Thus, each side wins.

• Question 340:

  In a dynamic equilibrium, successful organizations have a balance between fragmentation and coordination. Which of the following may cause an organization to risk the loss of this equilibrium?

  A. A framework of rules.
  B. A hierarchy of authority.
  C. Formation of cross-functional groups.
  D. Division of labor and technical specialization.
  D. Division of labor and technical specialization.

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  The division of labor and technical specialization often lead to differentiation within an organization. Differentiation leads to fragmentation because specialists often have a narrow focus and make integration more difficult.