Both hierarchies (traditional organizations with a clear chain of command) and open organizational structures (flatter, decentralized decision-making models) share certain fundamental management principles.
Let's analyze each statement:
* A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.
* Correct. In both hierarchical and open structures, managers can delegate decision-making authority, but they remain accountable for the outcomes.
* IIA Reference: Internal auditors assess governance structures to ensure that accountability remains with senior management, even when authority is delegated. (IIA Standard 2110:
Governance)
* A supervisor's span of control should not exceed seven subordinates.
* Incorrect. While some management theories suggest an ideal span of control, there is no universal limit of seven subordinates. The optimal number depends on factors like task complexity and organizational structure.
* Responsibility should be accompanied by adequate authority.
* Correct. Employees must have the necessary authority to fulfill their responsibilities effectively, regardless of the organizational structure.
* IIA Reference: The IIA's guidelines on effective governance and accountability emphasize the need for clear delegation of authority to ensure operational efficiency. (IIA Practice Guide:
Organizational Governance)
* Employees at all levels should be empowered to make decisions.
* Incorrect. While this principle applies to open organizational structures, it does not align with traditional hierarchies, where decision-making authority is concentrated at higher levels.
Thus, the verified answer is A. 1 and 3 only.