Certified Internal Auditor - Part 4, Business Management Skills: IIA-CIA-PART4

A corporation adheres to an open-systems perspective belief that the organization must adapt to changes in the environment to be successful. Which of the following would be inconsistent with the corporation following an open-systems framework?

A. The corporation attempts to utilize resources in order to be self-sufficient.

B. The corporation experiments with different production methods to find the method that is the most efficient and effective.

C. The corporation emphasizes the overall result of projects instead of the individual inputs.

D. The corporation requires employees to undergo monthly training seminars.

A likely effect of a bureaucratic structure on employee motivation is that:

A. Employee performance will be mediocre because of inflexible standards and impersonal surroundings.

B. An employee will pursue organizational goals because of his/her participation in establishing them.

C. Morale will be high because of each employee's feeling of belonging and ownership.

D. Job enrichment will be high because of each employee's involvement in developing and adapting his/her job description and required tasks.

Which of the following factors is least typical of an industry that faces intense competitive rivalry?

A. Price-cutting.

B. Large advertising budgets.

C. Frequent introduction of new products.

D. A high threat of substitutes.