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File: ch01, Chapter 1: Projects in Contemporary Organizations Multiple Choice 1. The authors identify three forces that combine to mandate the use of teams to solve problems. Identify the force that the authors named. a) explosion in the growth of certified project managers b) worldwide acceptance of the Project Management Institute c) interaction of supply and demand d) evolution of worldwide competitive markets for the production and consumption of goods and services Ans: d Response: Refer to the section: Introduction. Level: easy 2. Identify the example that would not usually be considered a project. a) building a house b) developing a computer software application program c) hosting a wedding reception d) assembly line manufacturing of automobiles Ans: d Response: Refer to the section: Nonprojects and Quasi Projects. While it is true that automobiles have an element of customization, process management techniques are used to mass-produce the vehicles. Level: intermediate 3. According to the authors, the prime objectives of project management are a) scope, cost, time b) quality, scope, schedule c) customer satisfaction, budget, schedule d) cost, quality, customer satisfaction Ans: a Response: Refer to the exhibit: Figure 1-1. Level: easy 4. Who, according to the authors, has played a significant role in the development of techniques for project management? a) European navigators b) trader community c) brokerage firms d) the military
Ans: d Response: Refer to the section: The Definition of a “Project”. Level: easy 5. The military uses the term __________ to refer to an exceptionally large, long-range objective that is broken down into a set of projects. a) task b) program c) subproject d) campaign Ans: b Response: Refer to the section: The Definition of a “Project”. Level: easy 6. The most crucial attribute of a project is that it must be important in the eyes of the ________ a) project team b) operation managers c) senior management d) project manager Ans: c Response: Refer to the section: The Definition of a “Project”. Level: easy 7. The seven attributes that characterize a project are __________. a) purpose, repetition, interdependencies, consistency, uncertainty, conflict, and lifecycle b) lifecycle, schedule, cost, uncertainty, independence, uniqueness, and purpose c) scope, resources, uniqueness, conflict, interdependencies, importance, and lifecycle d) purpose, lifecycle, conflict, certainty, independence, performance, and consistency Ans: c Response: Refer to the section: The Definition of a “Project”. Level: easy 8. The authors identify four parties-at-interest or stakeholders in any project. These stakeholders are a) client, functional manager, sponsor, and user b) client, sponsor, public, and investors c) client, functional manager, decision makers, and interveners d) client, parent organization, project team, and the public Ans: d Response: Refer to the section: The Definition of a “Project”. Level: easy
9. This “stretched-S” pattern observed during the project lifecycle, for the most part, is a result of the _________. a) changing levels of resources used during successive stages of the project lifecycle b) changing attitudes of the people who work in the project. c) difficulty in performing the individual activities of a project. d) principle that work expands to fill the allotted time Ans: a Response: Refer to the section: The Project Life Cycle. Level: intermediate 10. Which of the following is not a likely attribute of quasi-projects? a) lack of specificity in the project objective b) a designated team working on the project c) undefined performance parameters d) limited scope and budget Ans: d Response: Refer to the section: “Nonprojects and Quasi Projects”. Level: easy 11. The conventional project lifecycle can be described as a pattern characterized by ____________. a) parabolic progress b) logarithmic progress c) slow-rapid-slow progress d) extremely slow progress Ans: c Response: Refer to the exhibit: Figure 1-3. Level: easy 12. Earned value is based on the concept that the percentage of project completion is closely correlated with __________. a) the number of levels in the project b) relevance of the project c) cost or the use of resources d) final assembly of the output Ans: c Response: Refer to the section: The Project Life Cycle. Level: advanced 13. In a conventional project lifecycle, as work progresses, uncertainty about the expected outcome should __________.
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a) become a constant b) decrease c) increase d) fully removed Ans: b Response: Refer to the section: The Project Life Cycle. Level: easy 14. The desired outcomes or results of a project are called ____________. a) subgroups b) work packages c) subprojects d) deliverables Ans: d Response: Refer to the section: Three Project Objectives: The “Triple Constraint”. Level: easy 15. As sub-elements of a task, these __________ need to be accomplished to achieve the objectives of the task. a) subprojects b) programs c) work packages d) levels of effort Ans: c Response: Refer to the section: The Definition of a “Project”. Level: easy 16. The largest amount of effort applied to a project is during the __________ phase. a) conception b) planning, scheduling, monitoring, and control c) selection d) evaluation and termination Ans: b Response: Refer to the exhibit: Figure 1-4. Level: easy 17. The project to construct a highway is unique because __________. a) the characteristics of terrain will be different for different segments. b) consistency of the concrete will vary for different segments. c) different types of laborers will be used to build various segments of the highway. d) different people manage different sections of the highway. Ans: a
Response: Refer to the section: The Definition of a “Project”. Level: advanced 18. Which of the following is not one of the four dimensions of project success? a) opening new opportunities for the future b) number of people working on the project c) impact on the customer d) business impact on the organization Ans: b Response: Refer to the section: Three Project Objectives: The “Triple Constraint”. Level: easy 19. The process of creating artificial deadlines and budgets to accomplish specific, though routine, tasks within a functional department is called ______. a) programming b) routinizing c) accepting d) projectizing Ans: d Response: Refer to the section: Trends in Project Management. Level: easy 20. Projects often interact with other projects being carried out simultaneously within the organization and these interactions take the form of competition for scarce resources between project. This is an example of project __________. a) bottleneck b) breakdown c) interdependencies d) malfunctioning Ans: c Response: Refer to the section: The Definition of a “Project”. Level: intermediate 21. Which of the following is not a trend that we see in project management? a) increase in virtual projects b) decreasing importance of project managers c) importance given to strategic goals d) regular accomplishment of routine goals Ans: b Response: Refer to the section: Trends in Project Management.
Level: easy 22. When done properly, project management begins with __________. a) stakeholder interviews b) scope definition c) the initial concept for the project d) budget estimation Ans: c Response: Refer to the section: The Structure of This Text. Level: intermediate Fill in the Blanks 23. __________ occurs when the expectations of the client increase as the project progresses. Ans: Scope creep Response: Refer to the section: Three Project Objectives: The “Triple Constraint”. Level: easy 24. The foundational basis for education for project managers is the __________. Ans: PMBOK Guidelines Response: Refer to the section: The Project Manager and Project Management Organizations. Level: easy 25. This organization has the responsibility for maintaining and publishing The PMBOK Guidelines. Ans: Project Management Institute, also known as PMI Response: Refer to the section: The Project Manager and Project Management Organizations. Level: easy 26. According to PMBOK, a __________ is a temporary endeavor undertaken to create a unique product or service. Ans: project Response: Refer to the section: The Definition of a “Project”. Level: easy
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27. Individuals or groups with a special interest in a project are called __________. Ans:parties-at-interest or stakeholders Response: Refer to the section: Glossary. Level: easy 28. The chance that project processes or outcomes will not turn out as planned is called __________. Ans: risk Response: Refer to the section: Glossary. Level: easy 29. Having only partial or no information about the situation or outcomes is called __________. Ans: uncertainty Response: Refer to the section: Glossary. Level: easy 30. Relations between organizational functions, where one function or task is dependent on others, are known as __________. Ans: interdependencies Response: Refer to the section: Glossary. Level: easy 31. __________ is a subset of a project, consisting of work packages. Ans: Task Response: Refer to the section: Glossary Level: easy 32. A conventional project life cycle is a(n) __________ curve. Ans: s-shaped curve Response: Refer to the section: The Project Life Cycle. Level: easy 33. The __________ project is generally credited with beginning the era of modern project management. Ans: Manhattan
Response: Refer to the section: The Definition of a “Project”. Level: intermediate 34. An important implication of the project lifecycle concept is that a project will resist __________ of its existence. Ans: termination Response: Refer to the section: The Definition of a “Project”. Level: easy 35. Conflicting expectations among stakeholders related to performance, cost, and time will require the project manager to make appropriate ____________ in order to balance competing demands related to these objectives. Ans: trade-offs Response: Refer to the section: Why Project Management? Level: easy 36. The __________ of the project team is a crucial, but unstated, element of ancillary trade offs that the project manager must consider. Ans: health Response: Refer to the section: Three Project Objectives: The “Triple Constraint”. Level: easy 37. The Project Management Institute offers a popular certificate called the ______________. Ans: Project Management Professional (PMP) Response: Refer to the section: The Project Manager and Project Management Organizations. Level: easy Essay Questions 38. What are some of the benefits of using project management? Ans: Better control, better customer relations, shorter development times, lower costs, higher quality and reliability, higher profit margins, etc. are the benefits of using project management. Response: Refer to the section: Why Project Management? There are a lot of benefits that project management offers. A few of these are listed in this section. Level: easy
39. Discuss the factors that have contributed to the growth of the Project Management Institute. Ans: The complexity of problems faced by the project manager and the rapid growth in the number project-oriented organizations has contributed to the professionalization of project management. The growth in membership reflects the growth in the use of projects as well as the importance of PMI in the development of project management as a profession. The mission of PMI is to foster the growth of project management and to build professionalism in the field. PMI is responsible for codifying the areas of learning required for competent project management. PMI also offers a certificate called the Project Management Professional (PMP®) that includes a group of education, experience, and testing requirements to obtain. Response: Refer to the section: The Project Manager and Project Management Organizations. Level: easy 40. Explain why it is important for the project team to understand the purpose of a project. Ans: Given the complexity of modern projects and the need for an interdisciplinary approach to problem solving, the uncertainties of executing projects make it impractical to give specific instructions regarding every aspect of project execution. Therefore, team members will need to fill gaps in information by making decisions that support project objectives. If team members understand the purpose of the project, there is an increased probability that those decisions will support project success. Response: This question requires the students to build a general understanding of the concepts discussed in chapter 1. Level: advanced 41. Explain the conflict that often exists between the client and the parent organization. Ans: As the project is executed, clients will often request that changes be made in the project’s outputs. On the other hand, the parent organization is seeking to make a profit by performing the work required to produce those outputs. If the changes are made, the level of profitability may be reduced. This creates a natural antagonism between the client and the parent organization. Response: Refer to the section: The Definition of a “Project”. Level: intermediate 42. Name four benefits of project management. Ans: The project form of organization allows the project manager to be responsive to (1) the client and the environment, (2) identify and correct problems at an early date (3) make timely decisions about trade-offs between conflicting project goals, and (4) ensure that managers of the separate tasks that comprise the project do not optimize the performance of their individual tasks at the expense of the total project. Response: Refer to the section: Why Project Management? Level: easy
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43. Describe the project life cycle. Ans: The project life cycle describes the set of tasks that must be completed in order to produce a product or service. There are many different project life cycles that exist, but a typical set includes: conception, selection, planning, scheduling, monitoring and controlling, and evaluation and termination. Response: Refer to the section: The Project Life Cycle. Level: intermediate
File: ch02, Chapter 2: Strategic Management and Project Selection Multiple Choice 1. Which of the following demonstrates the quality of realism required of a project selection model? a) It does not require special interpretation, data that are difficult to acquire, or excessive personnel. b) It gives valid results within the range of conditions that the firm might experience. c) It reflects the multiple objectives of both the firm and its managers. d) It deals with situations both internal and external to the project. Ans: c Response: Refer to the section: Project Selection Criteria and Models. Level: easy 2. Which of the following demonstrates the quality of flexibility required of a project selection model? a) It does not require special interpretation, data that are difficult to acquire, or excessive personnel. b) It gives valid results within the range of conditions that the firm might experience. c) It reflects the multiple objectives of both the firm and its managers. d) It deals with situations both internal and external to the project. Ans: b Response: Refer to the section: Project Selection Criteria and Models. Level: easy 3. The two basic types of project selection models identified in the text are ________. a) biased and unbiased b) numeric and nonnumeric c) active and passive d) numeric and qualitative Ans: b Response: Refer to the section: Types of Project Selection Models. Level: intermediate 4. A project selected using the sacred cow model will be maintained until successfully completed or until __________.
a) the project exceeds its budget b) the project falls behind schedule c) the boss recognizes the project as a failure and terminates it d) the project manager is terminated Ans: c Response: Refer to the section: Types of Project Selection Models. Level: easy 5. If a system is being updated due to operating necessity, the project was selected because__________. a) the system is worth saving at any cost b) the system is worth saving at the estimated cost of the project c) the dimension of cost is not relevant to execution of the project d) the cost overruns can be hidden in someone else's budget Ans: b Response: Refer to the section: Types of Project Selection Models. Level: easy 6. For a project selected using nonnumeric models, identify the true statement regarding relative priorities for project selection. ) Operating necessity projects have priority over competitive necessity projects. b) Competitive necessity projects have priority over operating necessity projects. c) Operating necessity and competitive necessity projects have equal priority. d) Product line extension projects have priority over operating necessity projects. Ans: a Response: Refer to the section: Types of Project Selection Models. Level: easy 7. The drawback of the __________ model is that it fails to consider cash flows obtained once the initial investment has been recovered. a) payback period b) average rate of return c) discounted cash flow d) profitability index Ans: a Response: Refer to the section: Types of Project Selection Models. Level: intermediate
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8. If the NPV for a project is < 0, it indicates that the project will __________. a) report a profit loss b) report a profit gain c) fail to cover its required rate of return d) fail to generate cash inflows Ans: c Response: Refer to the section: Types of Project Selection Models. Level: advanced 9. Scoring models are most often used to overcome this disadvantage of profitability models. a) The inability to account for the time value of money. b) The inability to account for project results beyond the payback period. c) The inability to account for multiple decision criteria. d) The inability to account for cash flow. Ans: c Response: Refer to the section: Types of Project Selection Models. Level: intermediate 10. Which of the following is NOT an advantage that favors the use of weighted scoring models? a) Multiple objectives can be considered. b) Decision makers are compelled to stick with the decision once it has been made. c) The models can easily be adapted to changes in managerial philosophy. d) They can help avoid a short-term focus on profitability. Ans: b Response: Refer to the section: Types of Project Selection Models. Level: easy 11. Real options seek to reduce which of the following risks in projects? a) political b) environmental c) technological d) sociological Ans: c Response: Refer to the section: Types of Project Selection Models. Level: easy
12. The Astebro study (2004) of R&D projects found that all the characteristics below were excellent predictors of project commercial success, EXCEPT __________. a) technological opportunity b) managerial support c) expected profitability d) development risk Ans: b Response: Refer to the section: Project Selection Criteria and Models. Level: easy 13. Project proposals should include all of the following, EXCEPT __________. a) a section describing the past experience of the proposing group b) an executive summary c) a description of the ability of the proposer to supply the facilities, needed during the project d) a list of the top executives in the proposing firm Ans: d Response: Refer to the section: Project Bids and RFPS (Requests For Proposals). Level: intermediate 14. Firms usually have two or more projects and this collection of projects is referred to as __________. a) a portfolio b) an initiation c) a program d) a stochastic model Ans: a Response: Refer to the section: Project Selection Criteria and Models. Level: easy 15. The __________ is also called the benefit-cost ratio. a) Q-sort method b) profitability index c) internal rate of return d) payback period Ans: b Response: Refer to the section: Types of Project Selection Models Level: easy
16. A formalized method for transforming the opinions of a group of individuals into quantitative measures that can be aggregated for use in decision-making is referred to as the __________. a) Delphi system b) expert system c) portfolio d) simulation Ans: a Response: Refer to the section: Glossary. Level: easy 17. Which of the following is NOT a type of nonnumeric model? a) the sacred cow b) the operating necessity c) payback period d) the product line extension Ans: c Response: Refer to the section: Types of Project Selection Models Level: easy 18.The __________is the value of an opportunity foregone. a) real option b) profit c) opportunity cost d) revenue Ans: c Response: Refer to the section: Types of Project Selection Models Level: easy Fill in the blanks 19. The underlying premise of the real options approach is that __________. Ans: delaying an investment may lead to greater returns or may lead to elimination of marginal projects Response: Refer to the section: Types of Project Selection Models Level: Intermediate
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20. The __________ is the interest rate set by an organization as the minimum acceptable rate of return for a project. Ans: hurdle rate Response: Refer to the section: Types of Project Selection Models 21. The mastery of the skills required to manage projects competently is referred to in the literature as __________. Ans: project management maturity Response: Refer to the section: Project Management Maturity. Level: easy 22. __________ is the process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved. Ans: Project selection Response: Refer to the section: Project Selection Criteria and Models. Level: easy 23. The process of “carving away the unwanted reality from the bones of a problem” is called __________. Ans: modeling the problem Response: Refer to the section: Project Selection Criteria and Models. Level: intermediate 24. In a project portfolio process, the main purpose of the __________ is to establish and articulate a strategic direction for those projects spanning the internal or external boundaries of the organization. Ans: project council Response: Refer to the section: The Project Portfolio Process (PPP). Level: intermediate 25. In a project portfolio, __________ projects have objectives or deliverables that are only incrementally different in both product and process from existing offerings.
Ans: derivative Response: Refer to the section: The Project Portfolio Process (PPP). Level: intermediate 26. In a project portfolio, a project that involves a new technology or even a disruptive technology that is known to the industry would serve as an example of a __________ project. Ans: breakthrough Response: Refer to the section: The Project Portfolio Process (PPP). Level: intermediate 27. The set of documents submitted when evaluating a project is referred to as the __________. Ans: project proposal Response: Refer to the section: Project Bids and RFPS (Requests For Proposals). Level: easy 28. When the decision maker’s information is not complete, he/she will have to make a decision under conditions of __________. Ans: uncertainty Response: Refer to the section: Risk Considerations in Project Selection. Level: intermediate 29. The sophistication and experience of an organization in managing multiple projects is called ________. Ans: maturity, or project management maturity Response: Refer to the section: Glossary. Level: easy 30. Project Typhoon has a net present value of $10,000 and a profitability index of 1.01. Project Cyclone has a net present value of $10,000 and a profitability index of 1.10. If only one project could be undertaken, the organization should select __________. Ans: Project Cyclone
Response: Refer to the section: Types of Project Selection Models. Although the NPV for both projects are identical, Project Cyclone requires fewer resources to produce the same net present value. Level: advanced 31. The discounted cash flow method determines the net present value of all cash flows by discounting them by the __________. Ans: hurdle rate Response: Refer to the section: Types of Project Selection Models Level: intermediate 32. If the initial project investment is $50,000 and the average net cash flow is $10,000 per year into the foreseeable future, the payback period is __________. Ans: 5 years Response: Refer to the section: Types of Project Selection Models. Level: easy 33. Financial forecasts are reported as __________ financial statements. Ans: pro forma Response: Refer to the section: Glossary. Level: intermediate Essay 34. Explain why it is necessary for the project manager to understand the reasons leading to the selection of a project. Ans: If the project manager does not understand what a given project is expected to contribute to the parent organization, the project manager lacks critical information needed to manage the project successfully. It is important for the project manager to make sound business decisions regarding the work that will be done as part of the authorized project scope. The criteria used to select a project should provide the project manager with important insights about what the organization is trying to accomplish. The project manager should use these insights to align the project's work with the organization’s objectives. Response: Refer to the section: Introduction. Level: intermediate
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35. Project Boulder has a payback period of 2.4 years, an NPV of $10,000, and a profitability index of 1.10. Project Flintstone has a payback period of 3.0 years, an NPV of $10,000 and a profitability index of 1.05. If only one project can be executed, which project should be selected? Explain your reasoning. Ans: Based on the available data, Project Boulder appears to be more favorable. In addition to recovering the initial investment more quickly, the same net present value is generated using fewer resources. Response: Refer to the section: Types of Project Selection Models. Level: advanced 36. Explain the difference between risk and uncertainty. Ans: Uncertainty means that it is possible to have alternate outcomes. Risk is uncertainty that affects the project for better or for worse. If the risk is favorable, it presents the project team with an opportunity to capture. If the risk is unfavorable, it represents a threat that may require a response from the project team. Uncertainty will not always affect the project. If the project is unaffected by the uncertain scenario, the uncertain scenario is not a risk to the project. Response: Refer to the section: Risk Considerations in Project Selection Level: intermediate 37. Consider the following three-year projects A and B each with the same initial investment of $1000. You are presented with the following measures for the projects: Project A: NPV $400; Payback 24 months Project B: NPV $545; Payback 26 months Which project would you choose and why? Ans: Project B would be the better choice for the following reasons: Project B has a greater NPV. Since NPV takes into account the time value of money and Payback does not, NPV is a more robust estimate. The fact that the Payback is delayed by two months (a 5.5% delay in a 36 month project) does not warrant leaving $145 on the table (36.25% higher NPV). Response: Refer to the section: Types of Project Selection Models. Level: advanced 38. Suppose that you have been assigned as the project manager to execute a project that was selected using the sacred cow method of project selection. The project sponsor is an executive who has been with the company for three years. Based on past employment history, the average tenure of a senior executive at your company is 5 years. After reviewing the project’s expectations and requirements, the project team
has determined that the payback period will be 3.5 years. What are the implications for you and the project team? Ans: Many projects are terminated before they can be successfully completed. One potential source of uncertainty in a project that was selected using the sacred cow method would be the continuity of executive leadership. Therefore, it would be important for the project manager to understand the project-related factors that would support the overall corporate strategy for business success. Otherwise, should the sponsoring executive depart the company prior to completion of the project, the project will lack a sponsor. Given the selection method used, the scope of the project is likely to be unstable. A project manager should think about what he/she is doing and how it supports business success. This suggests that the project manager should understand the correlation between the project’s selection criteria and the business strategy. Response: Refer to the section: Types of Project Selection Models. Level: advanced 39. Contrast the real options selection approach with profitability models. Ans: Profitability models analyze a potential project using a single criterion: monetary return. This analysis may also include time value of money but this is not always true. Real options models are based on the concept of investing now to create opportunities for the future. This model analyses a potential project in terms of options that it generates or capability that it provides to a firm in the future. The investment may or may not be profitable or beneficial in the near future. Response: Refer to the section: Types of Project Selection Models. Level: intermediate
File: ch03, Chapter 3: The Project Manager Multiple Choice 1. Identify the attribute that is NOT normally associated with the job of functional manager. a) The functional manager is usually a generalist in the area being managed. b) The functional manager is responsible for deciding what resources will be devoted to accomplishing the task. c) The functional manager is administratively responsible for deciding how something will be done. d) The functional manager is responsible for deciding who will do the work. Ans: a Response: Refer to the section: Project Management and the Project Manager. Level: easy 2. According to the authors, the analytic method, when applied to systems, focuses on __________. a) assembling the components of a system into an integrated package b) building an array of individually designed and manufactured components c) calculating the cost and schedule requirements d) dividing the components of a system into smaller and smaller elements Ans: d Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 3. The ideal project manager should be __________. a) a direct, technical supervisor knowledgeable in the technology of the process being used b) both generalist/facilitator and have a high level of technical competence in the science of the project c) a facilitator and specialist with technical credibility d) a technical specialist competent in principles of robust design Ans: b Response: Refer to the section: Project Management and the Project Manager. Level: easy
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4. According to the authors, three major questions face the project manager with respect to synthesizing the requirements of a project. Identify the item that is NOT listed as one of the three major questions. a) What needs to be done? b) Who will actually do the work of the project? c) When must it be done? d) How will the required resources be obtained? Ans: b Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 5. When managing a project, the project manager is responsible for __________. a) auditing the project b) executing the project c) budgeting the project d) designing the project Ans: c Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 6. The project manager's responsibilities are broad and fall primarily into three separate areas. Identify the item that is NOT one of these. a) responsibilities to the parent organization b) responsibilities to the project and the client c) responsibilities to the members of the project team d) responsibilities to special-interest groups Ans: d Response: Refer to the section: Project Management and the Project Manager. Level: easy 7. The project manager must make trade-offs between project progress and process. Conceptually, this involves trade-offs between the __________ functions. a) technical and managerial b) schedule and cost c) performance and schedule d) cost and performance Ans: a Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate
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8. During the __________ stage of the project lifecycle, there is no significant difference in the importance that project managers place on the three goals of cost, time, and performance. a) initiation b) design c) buildup d) final Ans: b Response: Refer to the section: Special Demands on the Project Manager. Level: easy 9. According to the authors the project manager should be more skilled at __________. a) general management b) technology c) synthesis d) analysis Ans: c Response: Refer to the section: Project Management and the Project Manager. Level: easy 10. According to the authors, of all the characteristics desirable in a project manager, __________ is the most important. a) availability b) a strong technical background c) ability to keep the project team happy d) drive to complete the task Ans: d Response: Refer to the section: Attributes of Effective Project Managers. Level: easy 11. The project manager needs __________ credibility. a) technical and personal b) administrative and personal c) technical and administrative d) technical and financial Ans: c Response: Refer to the section: Attributes of Effective Project Managers.
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Level: easy 12. Projects are conducted in four important environments. They are __________. a) economic, political, legal, and sociotechnical b) internal, external, transitional, and multicultural c) routine, unique, fast-paced, and complex d) profit, not for profit, government, and industry Ans: a Response: Refer to the section: Problems of Cultural Differences. Level: easy 13. According to the authors the key to coping with the uncertainty that happens at the end of a project, an obstacle that the project manager must overcome is __________. a) discipline b) communication c) planning d) supervision Ans: b Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 14. During the buildup phase, the project goals, in order of importance, are __________. a) schedule, scope, cost b) cost, schedule, scope c) schedule, cost, scope d) cost, scope, schedule Ans: a Response: Refer to the section: Special Demands on the Project Manager. Level: Intermediate 15. Project managers must have __________, which refers to possessing enough technical abilities to direct the project. a) technical credibility b) managerial credibility c) negotiation skill d) drive to complete the task Ans: a
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Response: Refer to the section: Attributes of Effective Project Managers. Level: intermediate 16. PMI offers a certification for project managers. PMI offers examination for certification as __________. a) Project Management Professionals b) Project Management Experts c) Project Management Associates d) Project Management Engineers Ans: a Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 17. Resources initially budgeted for a project are frequently __________ for the task, partly because of natural optimism by the proposer about how many resources are needed. a) sufficient b) delayed c) insufficient d) hindrances Ans: c Response: Refer to the section: Special Demands on the Project Manager. Level: easy 18. One of the major problems project managers have with creating a project team is coming up with adequate human resources. One way this commonly happens is by __________. a) hiring employees fired by other departments b) training unskilled immigrants in project skills c) borrowing employees from other functional departments d) demoting executive board members Ans: c Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 19. Most of the time spent by a project manager is spent __________. a) attending technical workshops b) overseeing the workforce c) filing paperwork
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d) communicating Ans: d Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 20. The functional manager uses the __________ approach and the PM uses the __________ approach. a) systems; analytic b) numerical; nonnumeric c) analytic; systems d) nonnumeric; numerical Ans: c Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 21. Which of the following is NOT typically recommended to be considered when hiring new team members? a) high-quality technical skills b) political, and general, sensitivity c) strong goal orientation d) low self-esteem Ans: a Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 22. The __________ states that to understand the system, we must understand the environment (or larger system) of which it is a part. Ans: systems approach Response: Refer to the section: Project Management and the Project Manager. Level: intermediate Fill in the blanks 23. The project manager should be more skilled at __________, whereas the functional manager should be more skilled at __________.
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Ans: synthesis; analysis Response: Refer to the section: Project Management and the Project Manager. Level: easy 24. The project manager's responsibility to the project and to the client is met by ensuring that the __________ of the project is preserved in spite of conflicting demands made by stakeholders. Ans: integrity Response: Refer to the section: Project Management and the Project Manager. Level: intermediate 25. During the buildup stage of a project lifecycle, __________ is the dominant goal of many project managers. Ans: schedule Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 26. During the final or phaseout stage of the project lifecycle, __________ is the dominant goal of many project managers. Ans: scope Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 27. __________ results when the demands made on an individual are greater than the person's ability to cope with them, particularly when the person has a high need for achievement. Ans: stress Response: Refer to the section: Attributes of Effective Project Managers. Level: easy 28. __________ is the entire way of life for a group of people. It contains the four elements of technology, institutions, language, and arts. Ans: Culture Response: Refer to the section: Problems of Cultural Differences. Level: easy
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29. The structure of a society is determined by its __________. Ans: institutions Response: Refer to the section: Problems of Cultural Differences. Level: intermediate 30. The aesthetic values of a culture are communicated through the culture's __________. Ans: art Response: Refer to the section: Problems of Cultural Differences. Level: easy 31. According to the textbook, in Latin America, the __________ system leads a manager to give preference to relatives and friends when hiring. Ans: compadre Response: Refer to the section: Problems of Cultural Differences. Level: easy 32. The laws of the nation are often a product of the nation's __________. Ans: history Response: Refer to the section: Problems of Cultural Differences. Level: intermediate 33. The __________ is a person who spearheads an idea or action and sells it throughout the organization. Ans: champion Response: Refer to the section: Glossary. Level: easy 34. The __________ is an alternative for action if the expected result fails to materialize. Ans: contingency plan
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Response: Refer to the section: Glossary. Level: easy 35. The __________ represents everything outside the system that delivers inputs or receives outputs from the system. Ans: environment Response: Refer to the section: Glossary. Level: easy 36. The __________ is the “corporate culture” within the organization, or even within the project. Ans: microculture Response: Refer to the section: Glossary. Level: easy 37. The project manager makes a __________ by allowing one aspect of the project to get worse in return for allowing another aspect of the project to get better. Ans: trade-off Response: Refer to the section: Glossary. Level: easy 38. A __________ is a person who helps people overcome problems, either with technical issues or with other people. Ans: facilitator Response: Refer to the section: Glossary. Level: easy Essay 39. With respect to acquiring resources, there is a high potential for conflict between the functional manager and the project manager. Describe a major source of that conflict and suggest how it can be properly managed.
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Ans: The project manager often will seek individuals with scarce but necessary skills. Moreover, the project manager will seek those individuals who are top producers. However, these are the very people the functional manager would like to retain to perform the work of the function. In order to manage this conflict, the use of an objective standard to set priorities is recommended. Instead of seeking to optimize the project or the function, the project manager and the functional manager should collaborate to solve the problem in a manner that maximizes organizational success for the business as a whole. Response: Refer to the section: Special Demands on the Project Manager. Level: advanced 40. When asked, “How do you motivate astronauts?” a representative of NASA responded, “We don't motivate them, but, boy, are we careful about whom we select.” Discuss the implications of this statement for project managers seeking to motivate project team members. Ans: The most effective team members have some common characteristics. Moreover, the issue of motivating people in a project team is closely related to the kind of people who are invited to join the team. For example, when faced with technical problems, will the team members take the initiative to resolve the issue or will the team members seek to delay action by referring the problem back to the functional department? Moreover, because of the potential for conflicting priorities between the function and the project, team members should have the political skills to balance such competing demands, especially when the project team is not assigned full-time to work on a project. If each team member has a problem solving orientation, the team member will seek interdisciplinary collaboration instead of narrowly viewing the problem within a specific discipline. And finally, team members should have the moral courage necessary to work in an open environment where problems are identified and resolved. Response: Refer to the section: Special Demands on the Project Manager. Level: advanced 41. At the inception of a project, crises tend to be associated with resources. Explain why this scenario could be common in some organizations. Ans: Uniqueness is a characteristics shared by projects. Once the technical plans to accomplish the project have been translated into a budget and schedule, managerial reviews will often seek to gain cuts in budget and/or schedule. Each time this happens, the cuts will have to be translated into changes in technical plans. Response: Refer to the section: Special Demands on the Project Manager. Level: intermediate 42. Identify three important characteristics that would be desirable in a project manager. Explain your reasoning.
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Ans: The three characteristics would be an ability to get the job done without destroying the performing organization and/or its relationships with key stakeholders. There are three aspects to this statement. First, there needs to be a drive to complete the tasks of the project. Second, the resources of the performing organization must be used in a manner that ensures survivability of the organization. Finally, the project manager needs the emotional maturity to balance competing demands among multiple project stakeholders. Response: Refer to the section: Attributes of Effective Project Managers This response assumes that is important for the performing organization to survive after completion of the project. In some cases, the intent would be to dismantle the performing organization once the project's results have been completed. However, this answer assumes that the performing organization intends to sustain operations as an ongoing business. Level: advanced 43. Four project environments were identified in the chapter. Assume that there is a clash in requirements between the legal environments of two countries participating in the project. Before taking action to resolve the clash in requirements, what would you recommend that the project manager do? Ans: Since this is a multinational project, the project manager needs to understand the jurisdiction of the legal systems governing the project. Once the governing jurisdiction for the matter at issue has been identified, the project manager should also understand procedural laws associated with the interpretation and enforcement of substantive rights. In many cases, the project manager will lack the expertise to correctly understand and translate these issues into a course of action without guidance provided by competent legal counsel. Response: Refer to the section: Special Demands on the Project Manager. When in doubt, the project manager should seek the advice of competent legal counsel. Ignorance of the law is no excuse for breaking it. Level: advanced 44. You are the project manager of a multi-national projects with stakeholders and team members on both sides of the Atlantic. You receive an email request from a stakeholder in the United Kingdom for information that is “needed by 4/3/05”. You run into the stakeholder at a conference in the middle of March 2005 and he refuses to acknowledge you in any way. To what do you attribute this “weird” behavior? Ans: Coming from the UK, a request for information by 4/3/05 means the requestor needs the information by March 4 th 2005. In the US 4/3/05 means April 3 rd ! Therefore the stakeholder may have been very angry with the project manager in the middle of March if he did not receive the information. The project manager, on the other hand thought he still had two weeks to respond! This is both a culture and communication problem. The project manager has the obligation to ensure that his interpretation of the message is what the sender intended.
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Response: Refer to the section: Problems of Cultural Differences. Level: advanced
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File: ch04, Chapter 4: Negotiation and the Management of Conflict Multiple Choice 1. A party to a conflict will usually be satisfied when the level of frustration has been __________. a) increased by the domination of the other party b) lowered to the point where no action against the other party is contemplated c) lowered because the party realizes the hopelessness of continuing the conflict d) eliminated because the party has surrendered to the other party Ans: b Response: Refer to the section: Introduction. Level: easy 2. Most of the conflicts that involve the organization and outsiders have to do with __________. a) interpersonal differences b) cultural differences and status differences c) technical differences d) property rights and contractual obligations Ans: d Response: Refer to the section: The Nature of Negotiation. Level: easy 3. Conflicts within the organization typically differ from conflicts with outsiders in one important way. As far as the organization is concerned, these conflicts are __________. a) conflicts between opponents b) conflicts between allies c) conflicts between microcultures d) conflicts between subcultures Ans: b Response: Refer to the section: The Nature of Negotiation. Level: easy 4. Which one of the following choices was NOT identified by the authors as one of the reasons why organizations enter into partnership arrangements with each other?
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a) avoidance of litigation b) diversification of technical risk c) reducing internal conflict d) avoidance of capital investment Ans: c Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy 5. If a resource conflict arises between two high-priority projects, precedence is typically given to the project with the __________. a) earliest due date b) fastest completion time c) biggest revenue stream d) lowest cost to complete Ans: a Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate 6. During project formation, the organizational structure selected will have a major impact on the ways in which conflicts are handled. Lack of clarity about the relative power/influence/authority of the PM and the functional managers is a major component of all conflicts involving __________. a) contractual obligations b) property rights c) budgeting d) resource allocation, and scheduling Ans: d Response: Refer to the section: Conflict and the Project Life Cycle. Level: intermediate 7. During project build-up, the project should move from a general concept to __________. a) implementation of plans b) a highly detailed set of plans c) a project charter d) a project contract Ans: b Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy
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8. During project build-up, if a strong matrix organizational form is used, the project manager seeks a commitment of __________ from the functional departments. a) work b) materials c) people d) budgets Ans: c Response: Refer to the section: Conflict and the Project Life Cycle. Level: intermediate 9. During project build-up, if a weak matrix organizational form is used, the project manager seeks a commitment of __________ from the functional departments. a) work b) materials c) people d) budgets Ans: a Response: Refer to the section: Conflict and the Project Life Cycle. Level: intermediate 10. The need to manage technical interfaces and to correct incompatibilities is likely to create technical conflicts during the __________ phase of the project lifecycle. a) project formation b) project buildup c) main program d) project phase out Ans: c Response: Refer to the section: Conflict and the Project Life Cycle. Level: intermediate 11. __________ problems are comparatively rare during project phaseout because most have been solved or bypassed earlier. a) Resource b) Schedule c) Authority d) Technical Ans: d Response: Refer to the section: Conflict and the Project Life Cycle.
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Level: intermediate 12. Personality conflicts during project phase-out are often caused by __________. a) the absence of deadlines b) the influx of newer technology c) pressure to complete the project and anxiety about leaving the project d) distribution of expenses charged to the project Ans: c Response: Refer to the section: Conflict and the Project Life Cycle. Level: intermediate 13. Identify the category of conflict that is NOT included in the categories used by Thamhain and Wilemon in their study of project conflict. a) differences about goal/expectations b) uncertainty about authority c) interpersonal problems d) discipline/problem-orientation differences Ans: d Response: Refer to the section: Conflict and the Project Life Cycle. Level:easy 14. According to the authors, the nature of negotiation as it applies to project management is the realization that few of the conflicts arising in projects have to do with __________. a) whether or not the task will be done b) the precise design of the deliverable c) how the design will be achieved d) who will do the work, when, and at what cost. Ans: a Response: Refer to the section: Some Requirements and Principles of Negotiation. Level: intermediate 15. When dealing with conflict between parties, it is recommended that one __________ in order to avoid the conflict becoming interpersonal. a) avoid the situation b) define the substantive problem c) leisurely discuss the issue d) focus on interests
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Ans: b Response: Refer to the section: Some Requirements and Principles of Negotiation. Level: intermediate 16. There are probably more opportunities for __________ in handling conflicts and negotiations than in any other aspect of project management. a) errors in judgment b) ethical missteps c) project team strife d) project manager burnout Ans : b Response: Refer to the section: Introduction. Level: easy 17. The authors mention three situations where the highest level of negotiating skill is required by the project manager. Which of the following is NOT one of them? a) getting personnel from the functional manager b) using sub-contractors c) changing project deliverables in midstream d) using input from multiple functional units in developing the project mission Ans: a Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate 18. Which of the following is NOT included in the authors’ four part agreement for partnering? a) continuous senior management support b) a method for resolution of problems and disagreements c) joint evaluation of the project’s progress d) a set of team building exercises Ans: d Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate 19. According to the authors; which of the entities below is NOT a party to the chartering process? a) the project manager b) the customer c) senior management
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d) functional managers Ans: b Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy 20. There are several words that are synonyms for negotiate. Which of the following is NOT quoted by the authors? a) arbitrate b) bicker c) conciliate d) haggle Ans: b Response: Refer to the section: The Nature of Negotiation. Level: easy 21. Which of the following is NOT one of the four points of principled negotiation? a) Insist on using objective criteria. b) Focus on interest not positions. c) Invent options for mutual gain before trying to reach an agreement. d) Separate people from the problem. Ans: c Response: Refer to the section: Some Requirements and Principles of Negotiation. Level: intermediate Fill in the blanks 22. Partnering is an attempt to __________ the risk associated with sub-contracting. Ans: mitigate Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy 23. __________ is the process which begins when one party perceives that the other has frustrated, or is about to frustrate, some concern of his. Ans: Conflict Response: Refer to the section: Introduction.
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Level: easy 24. According to the authors, the favored technique for resolving conflict is __________. Ans: negotiation Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 25. The process through which two or more parties seek an acceptable rate of exchange for items they own or control is called __________. Ans: negotiation Response: Refer to the section: The Nature of Negotiation. Level: easy 26. The general objective of a __________ solution to conflict is to find a solution such that no party can be made better off without making another party worse off by the same amount or more. Ans: Pareto-optimal Response: Refer to the section: The Nature of Negotiation. Level: intermediate 27. __________ is a method of transforming contractual relationships into a cohesive, cooperative project team with a single set of goals and established procedures for resolving disputes in a timely and effective manner. Ans: Project partnering Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy 28. A(n) __________ is simply a written agreement between the PM, senior management, and the functional managers who are committing resources and/or people to the project. Ans: project charter Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy
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29. During the early program phases of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________. Ans: priorities Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 30. During the main program phases of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________. Ans: schedules Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 31. Toward the end of the project lifecycle, Thamhain et al say that conflict intensity is the greatest with respect to __________. Ans: schedules Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 32. Negotiating to a __________ solution is the key to conflict resolution in project management. Ans: win-win Response: Refer to the section: Some Requirements and Principles of Negotiation. Level: easy 33 What is the key to finding a negotiator's interests and concerns when he or she states a position? You should ask __________ the interest or concern is important. Ans: why Response: Refer to the section: Some Requirements and Principles of Negotiation. Level: intermediate 34. One requirement for the conflict/resolution methods described is that they must allow the conflict to be settled without __________ to the project’s objectives.
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Ans: irreparable harm Reponse: Refer to the section: Some Requirements and Principles of Negotiation. Level: intermediate 35. The total level of conflict in the project lifecycle is highest during the __________ stage. Ans: project build-up Response: Refer to the section: Summary. Level: intermediate 36. The boundaries between departments or functions represent __________. Ans: interfaces Response: Refer to the section: Glossary. Level: intermediate 37. __________ refers to communications across lines of equivalent authority. Ans: Lateral relations Response: Refer to the section: Glossary. Level: intermediate 38. The __________ approach to negotiation states immediate wants on the assumption that the environment is static. Ans: positional Response: Refer to the section: Glossary. Level: intermediate 39. The __________ approach to negotiation aims to achieve a win-win result. Ans: principled Response: Refer to the section: Glossary. Level: easy 40. __________ refers to the modifications to the project plan. In many cases, the projects get larger.
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Ans: Scope change or scope creep Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate Essay 41. Describe the type of relations that generally exist between the organization carrying out the project and a subcontractor working on the project. Ans: The relationships are best characterized as adversarial because the parent organization’s objectives are to get the deliverable at the lowest possible cost, as soon as possible. On the other hand, the subcontractor’s objectives are to produce the deliverable at the highest possible profit with the least effort. These conflicting interests tend to lead both parties to work in an atmosphere of mutual suspicion and antagonism. Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: easy 42. Describe the multistep process for building partnered projects. Ans: Initially, the parent firm must make a commitment to partnering, select subcontractors who will also make such a commitment, engage in joint team building exercises, and develop a charter for the project. Next, both parties must implement the partnering process with a four-part agreement on a joint evaluation of the project’s progress; a method for resolving any problems or disagreements; acceptance of a goal for continuous improvement for the joint project; and continuous support for the process of partnering from the senior management of both parties. Finally, the parties commit to a joint review of project execution once the project has been completed. Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: advanced 43. Identify three basic causes for change in projects. Ans: Some changes result because planners erred in their initial assessment about how to achieve a given end or erred in the choice of the proper goal for the project. Technological uncertainty is the fundamental causal factor for either error. Other changes result because the client/user or project team learns more about the nature of the project deliverable or about the setting in which it is to be used. In these circumstances, an increase in knowledge or sophistication is the primary factor leading to the change. A third source of change is the mandate. This is a change caused by a change in the environment in which the project is being conducted.
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Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate 44. Identify the three fundamental categories of conflict that occur during a project’s lifecycle. Ans: Groups working on the project may have different goals and expectations. There is considerable uncertainty about who has the authority to make decisions. There are interpersonal conflicts between people who are parties-at-interest in the project. Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 45. Describe the four points of principled negotiation described by Fisher and Ury. Ans: Separate the people from the problem. Focus on interests, not positions. Before trying to reach agreement, invent options for mutual gain. Insist on using objective criteria. Response: Refer to the section: Conflict and the Project Life Cycle. Level: easy 46. List and describe the three basic causes for change in projects. Ans: 1.) Planners erred in their initial assessment about how to achieve a given end or erred in their choice of the proper goal for the project. 2.) The client/user or project teams learn more about the nature of the project deliverable or about the setting in which it is to be used. 3.) Mandate (a change in the environment in which the project is being conducted) Response: Refer to the section: Partnering, Chartering, and Scope Change. Level: intermediate
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File: ch05, Chapter 5: The Project in the Organizational Structure Multiple Choice 1. Identify the statement that is NOT a major advantage of placing a project within a functional element of the parent organization. a) The flexible use of staff increases. b) Expertise is easily shared across multiple projects. c) The functional division tends to be oriented towards activities particular to its function. d) The functional division serves as a base of technological continuity. Ans: c Response: Refer to the section: Projects in a Functional Organization. Level: easy 2. Identify the statement that is NOT a major disadvantage of placing a project within a functional element of the parent organization. a) There is a tendency to suboptimize the project. b) The client is not the primary focus of activity in the function. c) The motivation of people assigned to the project tends to be weak. d) The functional division contains the normal path of advancement for individuals whose expertise is in the functional area. Ans: d Response: Refer to the section: Projects in a Functional Organization. Level: easy 3. Identify the statement that is NOT a major advantage of placing a project within the pure project organization. a) The functional manager retains full line authority over project team members. b) The lines of communication are shortened. c) Centralized authority tends to increase the speed of decision-making. d) A holistic approach to performing the project is supported. Ans: a Response: Refer to the section: Projects in a Projectized Organization. Level: easy
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4. Identify the statement that is NOT a major disadvantage of placing a project within the pure project organization. a) The project manager has full line authority over the project. b) Projects duplicate effort because resources are not shared across projects. c) Projects attempt to stockpile resources. d) Policies and procedures of the organization are inconsistently used and enforced. Ans: a Response: Refer to the section: Projects in a Projectized Organization. Level: easy 5. If the project manager controls when and what people do while the functional managers control who will be assigned to the project and what technology will be used, the __________ organizational form is probably being used. a) projectized b) pure project c) matrix d) weak project Ans: c Response: Refer to the section: Projects in Composite Organizational Structures. The sharing of control is indicative of a matrix organizational structure. Level: advanced 6. In the systems approach to design, one organization would have to take responsibility for __________. a) manufacturing everything in the system b) the integrity of the project design c) the integrity of the subcontractors d) product warranties Ans: b Response: Refer to the section: Projects in a Matrixed Organization. Level: intermediate 7. Identify the statement that is NOT a major advantage of placing a project in the matrix approach. a) A single individual, the project manager, takes responsibility for managing the project. b) The project will have access to representatives from the administrative units of the parent firm. c) The division of authority between the project manager and the functional managers is complex.
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d) There is less anxiety among team members about what will happen to them when the project is completed. Ans: c Response: Refer to the section: Projects in a Matrixed Organization. Level: easy 8. Identify the statement that is NOT a major disadvantage of placing the project in the matrix approach. a) The balance of power between stakeholders is delicate. b) Balancing the demands of competing projects using shared resource pools is complicated. c) The principle of unity of command is violated. d) The project manager takes responsibility for managing the project. Ans: d Response: Refer to the section: Projects in a Matrixed Organization. Level: easy 9. When a project requires the integration of inputs from several functional areas and involves reasonably sophisticated technology, but does not require all the technical specialists to work for the project on a full-time basis, the __________ organizational form should be used. a) functional b) matrix c) pure project d) mixed Ans: b Response: Refer to the section: Selecting a Project Form. Level: easy 10. The process of dealing with uncertainties in projects has come to be known as __________. a) scope management b) risk management c) quality management d) procurement management Ans: b Response: Refer to the section: The Project Management Office (PMO). Level: easy
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11. The project management office is often created by organizations to __________. a) establish consistent project management standards and methods b) deal with technological obsolescence c) train process managers d) administer application software Ans: a Response: Refer to the section: The Project Management Office (PMO). Level: easy 12. A major purpose of the project management office should be to serve as __________. a) the central location for all clerical support b) the critical disaster recovery support c) a link between strategic management and project management d) maintenance for the project management library Ans: c Response: Refer to the section: The Project Management Office (PMO). Level: intermediate 13. This member of the project team is in charge of product design and development and is responsible for functional analysis, specifications, drawings, cost estimates, quality/reliability, engineering changes, and documentation. a) systems architect b) manufacturing engineer c) project controller d) support services manager Ans: a Response: Refer to the section: The Project Team. Level: intermediate 14. This member of the project team is responsible for the efficient production of the product of the process, including the manufacturing engineering, design and production of tooling, production scheduling, and other production tasks. a) project engineer b) development engineer c) contract administrator d) support services manager Ans: b Response: Refer to the section: The Project Team.
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Level: intermediate 15. This behavior in a project manager would be highly correlated with unsuccessful project management. a) conflict avoidance b) interdisciplinary problem solving c) win -win negotiation techniques d) risk mitigation Ans: a Response: Refer to the section: Human Factors and the Project Team. Level: easy 16. This person is responsible for the installation, testing, and support of the product (process) once its engineering is complete. a) development engineer b) systems architect c) test engineer d) project controller Ans: c Response: Refer to the section: The Project Team. Level: intermediate 17. One of the main technical problems faced by the project manager is meeting __________ without compromising performance. a) supplier’s targets b) schedule and cost goals c) technical specifications d) cost and conflict goals Ans: b Response: Refer to the section: Human Factors and the Project Team. Level: intermediate 18. An organization structure that is based on the Financial, Human Resources and Operational departments rather than by project is termed as a(n) __________. a) matrix organization b) parent organization c) functional organization d) projectized organization
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Ans: c Response: Refer to the section: The Project Management Office (PMO). Level: advanced 19. The key to conflict resolution is to turn a __________ into a __________. a) win-lose situation, win-win situation b) matrix organization; mixed organization c) subcontract; work breakdown structure d) functional division, projectized division Ans: a Response: Refer to the section: Projects in a Functional Organization. Level: intermediate 20. A major advantage of using a __________ placement for a project is that individual experts can be utilized by many different projects. a) standard b) virtual c) projectized d) functional Ans: d Response: Refer to the section: Projects in a Functional Organization. Level: intermediate 21. A characteristic of __________ projects is that the work these projects can cross time, space, organizational, and cultural boundaries. a) Matrix b) Projectized c) Standard d) Virtual Ans: d Response: Refer to the section: Projects in a Matrixed Organization. Level: intermediate 22. Virtual teams, when composed, should consist of “boundary spanners” who number about one in every __________ team members. a) 6-7 b) 8-12 c) 10-20 d) 25-30
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Ans: a Response: Refer to the section: Projects in a Matrixed Organization. Level: intermediate 23. A major contribution of __________ is to establish project administration procedures for selecting, initializing and planning, budgeting, and scheduling projects as well as to serve as a repository for reports on the performance of the planning, budgeting, scheduling, and resource allocation processes. a) stakeholders b) the change control board c) PMOs d) team members Ans: c Response: Refer to the section: The Project Management Office (PMO). Level: easy 24. Project priorities are more of a concern in the __________ stages of the project life cycle. a) earlier b) later c) middle d) final Ans: a Response: Refer to the section: Human Factors and the Project Team. Level: advanced Fill in the blanks 25. Subletting tasks out to smaller contractors is known as __________. Ans: subcontracting Response: Refer to the section: Glossary. Level: easy 26. The underlying principle of modern organizations is __________ of the human elements in the group.
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Ans: specialization Response: Refer to the section: Introduction. Level: intermediate 27. The __________ organizational form is a pure project organization overlaid on the functional divisions of the parent firm. Ans: matrix Response: Refer to the section: Projects in a Matrixed Organization. Level: easy 28. The __________ matrix is most similar to the resembles the projectized organizational form. Ans: strong Response: Refer to the section: Projects in a Matrixed Organization. Level: easy 29. The __________ matrix is least similar to the pure project organizational form. Ans: weak Response: Refer to the section: Projects in a Matrixed Organization. Level: easy 30 Viewing the whole at one time rather than each piece individually describes the __________ approach. Ans: holistic Response: Refer to the section: Glossary. Level: intermediate 31. In the __________ form of organizational structure, pure functional and pure project organizations may coexist in the firm. Ans: mixed Response: Refer to the section: Projects in Composite Organizational Structures. Level: easy
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32. When the major focus of a project must be on the in-depth application of a technology rather than on minimizing cost, meeting a specific schedule or achieving speedy response to change, the __________ organizational form is apt to be the form of choice. Ans: functional Response: Refer to the section: Selecting a Project Form. Level: intermediate 33. When a firm engages in a large number of similar projects, the __________ organizational form is apt to be preferred. Ans: pure project Response: Refer to the section: Selecting a Project Form. Level: intermediate 34. When the standard departments of the organization represent individual disciplines such as engineering, marketing, purchasing, and so on, the organization follows __________. Ans: functional management Response: Refer to the section: Glossary. Level: easy 35. According to Dewhurst, a group of individuals working independently is a __________. Ans: name only team (NOT) Response: Refer to the section: Human Factors and the Project Team. Level: advanced 36. The firm or organization within which the project is being conducted is known as the __________. Ans: parent organization Response: Refer to the section: Glossary. Level: intermediate 37. __________ engineering refers to the use of a design team that includes design and manufacturing engineers as well as staff from other relevant areas of the business.
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Ans: Concurrent Response: Refer to the section: Glossary. Level: easy 38. The __________ is responsible for the installation, testing, and support of the product or process once the engineering is complete. Ans: test engineer Reponse: Refer to the section: The Project Team. Level: easy 39. The __________ manager is typically responsible for a number of related projects, each with its own project manager. Ans: program Response: Refer to the section: Glossary. Level: easy 40. __________ is defined as inappropriately intense loyalty to the project. Ans: Projectitis Response: Refer to the section: Glossary. Level: easy 41. __________ is the term that describes the optimization of a subelement of a system, perhaps to the detriment of the overall system. Ans: Suboptimization Response: Refer to the section: Glossary. Level: easy 42. A room where project teams can meet, and where the latest details on project progress will be available, is called the __________. Ans: war room Response: Refer to the section: Glossary. Level: easy
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43. The __________ is a basic project document that describes all the work that must be done to complete the project and forms the basis for costing, scheduling, and work responsibility. Ans: WBS (work breakdown structure) Response: Refer to the section: Glossary. Level: easy 44. The approach to organizing that includes both functions (disciplines) and projects in its hierarchy is known as the __________. Ans: mixed organization Response: Refer to the section: Glossary. Level: intermediate 45. It is the responsibility of the __________ to ensure that the project is structured in such a way as to allow for motivational factors to be used. Ans: project manager Response: Refer to the section: Human Factors and the Project Team. Level: intermediate Essay 46. Identify the major reasons for the rapid growth of project-oriented organizations. Ans: Speed and market responsiveness have become requirements of successful competition. Moreover, clients want increased customization of project outputs. Second, the development of new products, processes, and services has become increasingly complex. This requires interdisciplinary collaboration and coordination. Third, rapid expansion of technological possibilities tends to destabilize organizational structures. And finally, business managers are seeking to gain greater control over the operations of the business. Response: Refer to the section: Introduction. Level: easy 47. Identify three major advantages and disadvantages of using functional elements of the parent organization as the administrative home for a project. Assume that the structure is appropriate for the project being undertaken.
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Ans: The advantages would include: the flexible use of staff in a manner that maximizes utilization of staff, the sharing of expertise among multiple projects, and the provision of a stable base for technological continuity for the organization. The disadvantages would include: the client is not the primary focus of activity within the function, lines of cross-functional communication may be unclear, and responsiveness to client needs may be slow and arduous. Response: Refer to the section: Projects in a Functional Organization. Any advantage or disadvantage listed in the textbook is an appropriate answer to this question. Level: easy 48. Identify three major advantages and disadvantages of using the pure project organization as the administrative home for project. Assume that the structure is appropriate for the project being undertaken. Ans: The advantages would include: the project manager has full line authority over the project, the structure tends to support a holistic approach to running the project, and the ability to make swift decisions is greatly enhanced. The disadvantages would include: the duplication of resources which are not shared between projects, the inconsistent adherence to corporate policies and procedures, and the potential to develop projectitis in a manner that distorts relationships between project team members and their counterparts in the parent organization. Response: Refer to the section: Projects in a Projectized Organization. Any advantage or disadvantage listed in the textbook is an appropriate answer to this question. Level: easy 49. Discuss the advantages of empowering the project team. Ans: By empowering a project team, team members are enabled to manipulate tasks so that project objectives are met. Team members are encouraged to find better ways to do things. A participative style of management avoids micromanaging professionals and enables them to achieve goals using appropriate methods of their choosing. Team members begin to understand that they are responsible and accountable for achieving the project’s deliverables. There is a good chance that synergistic solutions will result from team collaboration. The project manager will serve as a tool for evaluating a team's performance and will be positioned to provide timely feedback to keep the team on track. Response: Refer to the section: Human Factors and the Project Team. Level: easy 50. Explain how a company can go about implementing a PMO. Ans: The best way to implement a PMO is to treat it as a project and apply good project management procedures. In addition, given the role of this special type of
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project, it is also suggested that the effort not be initiated until it has the full commitment of the top managers of the organization. It should also have a senior management sponsor/ champion who is determined to see this project through to success. One way to initiate the project is through a pilot program in one of the areas that falls under the responsibility of the PMO project champion. Following its completion, the pilot project can be assessed, any mistakes corrected, and the benefi ts publicized to the rest of the organization. Response: Refer to the section: The Project Management Office (PMO). Level: advanced
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File: ch06, Chapter 6: Project Activity Planning Multiple Choice 1. The project plan must be designed in such a way that the project outcome meets __________. a) the objectives of the parent organization b) unauthorized requests for change in the project outcome c) the requirements associated with scope creep d) only the expressed warranties identified in the contract Ans: a Response: Refer to the section: Introduction. Level: easy 2. The __________ is a specialized view of the action plan that focuses on who has what responsibility for each project task. a) resource histogram b) linear responsibility chart c) project team directory d) scope management plan Ans: b Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: difficult 3. The success of the project launch meeting is dependent on the existence of __________. a) a project charter b) the project's scope statement c) a well-defined set of objectives for the project d) project planning templates Ans: c Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: intermediate
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4. This project plan element describes both the managerial and the technical approaches to the work. The technical discussion describes the relationship of the project to available technologies. a) overview b) objectives c) general approach d) contractual aspects Ans: a Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy 5. This project plan element should include profit and competitive goals as well as technical goals. a) overview b) objectives c) general approach d) contractual aspects Ans: b Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy 6. This project plan element lists all milestone events. It identifies the estimated time for each task and is used to construct the master project schedule. a) budget b) schedule c) personnel plan d) evaluation methods Ans: b Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy 7. This element of the project plan contains a brief description of the procedure to be followed in monitoring, collecting, storing, and evaluating the history of the project. a) schedule b) resources c) personnel d) evaluation methods Ans: d Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy
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8. One of the challenges project managers face is to ensure that managers do not mix __________. a) outcomes with the specific tasks needed to produce them b) project milestones with their respective completion dates c) outside interests’ requirements with organizational expectations d) control limits with specifications Ans: a Response: Refer to the section: Starting the Project Plan: The WBS. Level: intermediate 9. The process of coordinating the work and timing of the different groups working on multidisciplinary teams is called __________. a) procurement management b) integration management c) vertical management d) matrix management Ans: b Response: Refer to the section: Interface Coordination Through Integration Management. Level: easy 10. The __________ of a project includes the objectives of the project as well as the time and cost required to complete the project to the customer’s satisfaction. a) scope b) change order c) outcome d) purpose Ans: a Response: Refer to the section: Introduction. Level: intermediate 11. __________ is the tendency for the project objectives to be changed with little or no discussion with other parties actively engaged in the project. a) Scope reference b) Scope creep c) Effectiveness d) Hierarchical planning
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Ans: b Response: Refer to the section: Introduction. Level: intermediate 12. The __________is a list of the project activities with major activities broken down into subactivities. a) linear responsibility chart b) PCMCIA c) activity prioritization d) WBS Ans: d Response: Refer to the section: Starting the Project Plan: The WBS. Level: easy 13. According to the authors, any project plan must contain all of the following EXCEPT __________. a) evaluation methods b) contractual aspects c) resources d) a ‘ballpark’ estimate Ans: d Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: intermediate 14. Agile IT project teams are typically __________ and located at __________. a) large, a single site b) small, multiple sites c) large, multiple sites d) small, a single site Ans: d Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: intermediate 15. In an agile project, teams are given several requirements but only deal with one at a time, with each iteration being referred to as a __________. a) sprint b) deliverable c) WBS
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d) control Ans: a Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: intermediate 16. Which of the following is not one of the risk management subprocesses? a) risk identification b) qualitative risk analysis c) work breakdown schedule d) risk response planning Ans: c Response: Refer to the section: Project Risk Management. Level: intermediate 17. Which of the following is not a type of quantitative risk analysis? a) FMEA b) decision tree analysis c) Monte Carlo simulation d) expert opinion Ans: d Response: Refer to the section: Project Risk Management. Level: intermediate 18. In risk response planning, where the goal of the project manager is to increase the probability the opportunity will occur, the project manager must __________ a) exploit b) share c) enhance d) accept Ans: a Response: Refer to the section: Project Risk Management. Level: easy 19. A type of risk response planning where the idea is to soften the danger of the threat, by reducing the likelihood it will occur, or through reducing its impact if it does occur, implies that the project manager must __________. a) avoid
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b) transfer c) accept d) mitigate Ans: d Response: Refer to the section: Project Risk Management. Level: intermediate 20. RACI stands for a) responsive, accountable, consult, inform b) responsible, accountable, consult, inform c) responsive, accountable, consult, integrate d) responsible, admissible, consult, integrate Ans: b Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: easy Fill in the blanks 21. The set of physical elements required to build a project is called the __________. Ans: bill of materials Response: Refer to the section: Glossary. Level: easy 22. The __________ is a graph showing how a statistic is changing over time compared to its average and selected control limits. Ans: control chart Response: Refer to the section: Glossary. Level: intermediate 23. The physical items to be delivered from a project are called __________. Ans: deliverables Response: Refer to the section: Glossary. Level: easy
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24. __________ is a measure of project progress frequently related to the planned cost of tasks accomplished. Ans: Earned value Response: Refer to the section: Glossary. Level: intermediate 25. __________is an approach that breaks the planning task down into the activities that must be done in each managerial level of the organization. Typically, the upper level sets the objectives for the next lower level. Ans: Hierarchical planning Response: Refer to the section: Glossary. Level: intermediate 26. The __________ provides a description of a task that defines all the work required to accomplish it, including inputs and desired outputs. Ans: work statement Response: Refer to the section: Glossary. Level: easy 27. A __________ must be submitted for any changes requested after the project plan has been approved. Ans: change order Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy 28. The major tool that a project manager uses during the planning phase is called the __________. Ans: WBS (Work Breakdown Structure) Response: Refer to the section: Interface Coordination Through Integration Management. Level: easy
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29. A(n) __________ displays the organizational units responsible for each of the various work elements in the WBS. Ans: Organizational Breakdown Structure (OBS) Response: Refer to the section: Interface Coordination Through Integration Management. Level: intermediate 30. During initial project planning, activities are identified and sorted. In completing this process, each level in the hierarchy should limit the number of activities to a range between __________. Ans: 2 to 20 activities Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: intermediate 31. The __________ chart is a tree diagram used to represent a hierarchical plan. Ans: Gozinto Response: Refer to the section: Human Resources: The RACI Matrix and Agile Projects. Level: easy Essay 32. Identify four important outcomes associated with the project launch meeting. Ans: The technical scope should be established. Participants should accept the basic areas for performance responsibility. Tentative schedules and budgets are spelled out for the overall project. A group to manage risk has been created. Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: easy 33. Identify two objections commonly raised by marketing organizations against the early participation by engineering and manufacturing in the selling process to external customers. Explain how you would counter these objections. Ans: The sales arm of the organization is trained to sell. It is expected to be fully conversant with all technical aspects of the firm's products and services. In addition,
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salespeople are expected to be knowledgeable about design and manufacturing lead times and schedules. On the other hand, it is widely assumed by marketing that manufacturing and design engineers do not understand sales techniques. Moreover, there may be legitimate concerns about the appropriateness and effectiveness of interpersonal communications due to the lack of formal training in selling processes. And finally, it is expensive to invest high-priced technical talent for proposals with a relatively low probability of success. Response: Refer to the section: Initial Project Coordination and the Project Charter. Level: intermediate 34. Describe the general steps recommended by the authors for designing and using the WBS. Ans: Step 1: Using information from the action plan, list the task breakdown in excessively finer levels of detail. Continue until all meaningful tasks for work packages have been identified. Each task should be at a level of detail such that it can be individually planned, budgeted, scheduled, monitored, and controlled. Step 2: For each work package, identify the data relevant to the WBS. It is helpful to construct a linear responsibility chart to show who is responsible for what. The LRC will help the PM keep track of who must approve what and who must report to whom. Step 3: All work package information should be reviewed with the individuals or organizations responsible for doing or supporting the work. This review should verify the WBS’s accuracy. Step 4: The project budget should consist of four elements. They are: direct budgets from each task, an indirect costs budget for the project, a project contingency for unexpected emergencies, and any residual, which includes a profit derived from the project. Step 5: Schedule information and milestones should be integrated into a project master schedule. Step 6: During project execution, the project manager will compare actual resource usage by work element, work package, task and so on against the planned amounts for those items. This will enable the project manager to refine estimates and initiate appropriate corrective actions as necessary. Step 7: The schedule will be analyzed in the same manner as the budget. Response: Refer to the section: Starting the Project Plan: The WBS. Level: easy 35. List the seven subprocesses of project risk management. Ans: Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control Risk management register. Response: Refer to the section: Project Risk Management. Level: intermediate
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36. Compare the risk response planning techniques for threats and opportunities. Ans: Threat responses: 1.) avoid 2.) transfer 3.) mitigate 4.) accept Opportunity responses: 1.) exploit 2.) share 3.) enhance 4.) accept Response: Refer to the section: Project Risk Management. Level: intermediate 37. Briefly describe the six processes for risk management identified in the PMBOK Guidelines. Ans: Risk management planning is focused on how to approach and plan the risk management activities for a project. In risk identification, the risks that can affect the project for better or for worse are identified. In qualitative risk analysis, non- numerical priorities are established for the risk events identified previously. In quantitative risk analysis, probability and impact are converted into expected monetary value. In risk response planning, contingency plans are established to capture opportunities and respond to threats. In risk monitoring and control, warning signs and triggers are used to determine when corrective actions are required to bring the project back on track. Refer to the section: Project Risk Management. Level: intermediate 38. According to the authors, the task of risk identification will be horrendous if the risk management system has no memory. Discuss the important elements of a risk management system that would compensate for alack of memory by the organization. Ans: A good risk management system should be a source of answers to the results and circumstances of previous projects. Such a system would record all the assumptions made at the outset of the project since these can be sources of risks. The system should also identify all the environments, external and internal, that can impact the project. If the organization has a risk management group, then all risks identified by that group should be recorded and easily accessible by all members of the project team. The data should be structured so that keyword searches can easily identify all
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categories of risks. Another key part of the system is a detailed listing of all qualitative and quantitative risk estimates along with an explanation of how the estimates were derived. Refer to the section: Project Risk Management. Level: intermediate 39. Why is it important for a project manager to consider risks associated with the project’s external environment? Ans: No project exists in its own world. Almost every aspect of a project is subject to external influences. The external environment of a project includes the parent organization’s corporate culture. Corporate culture shows itself in overt and subtle ways. The project manager must know the environment in which he or she is operating in and also the environment of the stakeholders if there is any hope of understanding or meeting stakeholder expectations. Refer to the section: Project Risk Management. Level: intermediate
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