IIA-CIA-PART3 practice question 18 of 35

Which of the following principles s shared by both hierarchies and open organizational structures? 1. A superior can delegate the authority to make…

Full set: 516 questions
Which of the following principles s shared by both hierarchies and open organizational structures? 1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions. 2. A supervisor's span of control should not exceed seven subordinates. 3. Responsibility should be accompanied by adequate authority. 4. Employees at all levels should be empowered to make decisions.
Answer options
A: 1 and 3 only Correct answer
B: 1 and 4 only
C: 2 and 3 only
D: 3 and 4 only
Correct Answer:
A. 1 and 3 only
Explanation

The principles that a superior retains ultimate responsibility despite delegating authority (1) and that responsibility must be accompanied by adequate authority (3) are fundamental to management and organizational effectiveness. These apply universally, whether in a rigid hierarchy or a flexible, open structure. In any system, for accountability to be fair and for tasks to be completed effectively, these two principles must be upheld.

Why Incorrect

2. A narrow span of control (e.g., not exceeding seven) is a principle of classical, hierarchical organizational theory and is often abandoned in flatter, open structures.
4. Empowering employees at all levels is a defining characteristic of open/flat organizational structures, contrasting with traditional hierarchies where decision-making is typically centralized at the top.

References

1. Fayol, H. (1949). General and Industrial Management. Pitman. Fayol's 14 principles of management include "Authority and Responsibility," stating that authority and responsibility are co-extensive. This is a foundational concept for all organizational structures.

2. Urwick, L. (1956). "The Manager's Span of Control." Harvard Business Review, 34(3), 39–47. This article discusses the classical view of a limited span of control, a feature of hierarchies.

3. Drucker, P. F. (2006). The Practice of Management. HarperBusiness. Drucker emphasizes that while authority for a task can be delegated, the manager who delegates remains accountable for the result, a principle applicable in any organizational design (Chapter 17).

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