Chapter 01 Modern Project Management

1. The advent of project management has been most profound in

A. Automobile manufacturing
B. Construction
C. Information technology
D. The U.S. Department of Defense
E. Film making
Answer C
The impact of project management is most profound in the area of electronics industry, where the new folk heroes are young
professionals whose Herculean efforts lead to the constant flow of new hardware and software products.

2. A professional organization for project management specialists is the

A. PMI
B. AMA
C. MIS
D. IPM
E. PMBOK
Answer A
The Project Management Institute (PMI), is a professional organization for project managers.

3. Which of the following is not considered to be a characteristic of a project?

A. An established objective
B. A clear beginning and end
C. Complex tasks
D. Only for internal use
E. Never been done before
Answer D

4. Which of the following activities is not considered a project?

A. Developing a new software program
B. Designing a space station
C. Preparing the site for the Olympic Games
D. Production of automobile tires
E. Developing a new advertising program
Answer D
A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and
over, while a project is done only once; a new product or service exists when the project is completed.

5. From among the following activities, which is the best example of a project?
A. Processing insurance claims
B. Producing automobiles
C. Writing a term paper
D. Completing a college degree
E. All of these are good examples of projects
Answer C

6. Which of the following constraints is not typically found in managing projects?

A. Time
B. People
C. Cost
D. Performance
E. Both B and D are not typical constraints
Answer B
Specific time, cost, and performance requirements bind projects.

7. Which of the following choices is not one of the stages of a project life cycle?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Answer A

8. In which of the following stages are project objectives established, teams formed, and major responsibilities assigned?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Answer B
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are
assigned.

9. In which of the following stages is a major portion of the physical and mental project work performed?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Answer D
A major portion of the project work takes place—both physical and mental.

10. In which of the following stages are you more likely to find status reports, many changes, and the creation of forecasts?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Answer D
Time, cost, and specification measures are used for control.

11. Which of the following characteristics is not typical of a project manager?

A. Managing a temporary activity
B. Possesses in-depth technical knowledge
C. Managing a non-repetitive activity
D. Manages independently of the formal organization
E. Provides a direct link to the customer
Answer B
Increased competition has placed a premium on customer satisfaction. Customers no longer simply settle for generic products
and services.

12. Which of the following choices is not one of the driving forces behind the increasing demand for project management?
A. Compression of the product life cycle
B. Knowledge explosion
C. Development of third world and closed economies
D. More emphasis on the product and less on the customer
E. Corporate downsizing
Answer D
Increased customer attention has prompted the development of customized products and services.

13. Which of the following statements is true?

A. Project management is becoming a standard way of doing business
B. Project management is increasingly contributing to achieving organizational strategies
C. Project management is being used at a consistent percentage of a firm's efforts
D. Both A and B are true
E. A, B, and C are all true
Answer D
Project management is no longer a special-need management. It is rapidly becoming a standard way of doing business. The
future promises an increase in the importance and the role of projects in contributing to the strategic direction of
organizations.

14. Project management is ideally suited for a business environment requiring all of the following except
A. Accountability
B. Flexibility
C. Innovation
D. Speed
E. Repeatability
Answer E
Competing in a global market influenced by rapid change, innovation, and time to market means organizations manage
more and more projects.

15. Which of the following is the number one characteristic that is looked for in management candidates?
A. Overall intelligence
B. Works well with others
C. Experience
D. Past successes
E. Good references
Answer B
The phrase "works well with others" has long been a staple on grade school report cards; now, in the IT world, it's the No. 1
criterion for management candidates.(See Research Highlight on page 16).

16. A common rule of thumb in the world of high-tech product development is that a six- month project delay can result in a loss
of product revenue share of ____ percent. The waste on failed projects and cost overruns is estimated in the neighborhood of
A. 10
B. 20
C. 33
D. 45
E. 50
Answer C
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33
percent loss in product revenue share.

17. The waste on failed projects and cost overruns is estimated in the neighborhood of
A. Under $100 Million
B. Over $150 Billon
C. Under $10 Billion
D. Between $90-$100 Billion
E. Between $125-$135 Billion
Answer B
The need for elevating performance continues to challenge the project management profession. The waste on failed projects and
cost overruns is estimated in the neighborhood of over $150 billion!

18. Which of the following is the first step in developing a set of strategies designed to best meet the needs of customers?
A. Market Research
B. Define the Integrated Project Management System
C. Environmental Analysis
D. Project Selection
E. All of the above are correct
Answer C
Project management is critical both to development of customized products and services and to sustaining lucrative
relationships with customers.

19. Integration of project management with the organization takes place with the
A. Master budget
B. Strategy plan
C. Process of managing actual projects
D. Both b and c are correct
E. A, B, and C are all correct
Answer D
Since projects are the modus operandi, strategic alignment of projects is of major importance to conserving and effective use of
organization resources. Selection criteria need to ensure each project is prioritized and contributes to strategic goals.

20. Two dimensions within the project management process are

A. Technical and sociocultural
B. Cost and time
C. Planned and unexpected
D. Established and new
E. Unique and reoccurring
Answer A
There are two dimensions within the actual execution of projects (see Figure 1.3. The Technical and Sociocultural
Dimensions of the Project Management Process on page 15).

21. Which of these is not part of the "technical dimension" of project management?
A. WBS
B. Budgets
C. Problem solving
D. Schedules
E. Status reports
Answer C

22. Which of these is not part of the "sociocultural dimension" of project management?
A. Negotiation
B. Resource allocation
C. Customer expectations
D. Leadership
E. Politics
Answer B

23. Corporate downsizing has increased the trend toward

A. Reducing the number of projects a company initiates
B. Outsourcing significant segments of project work
C. Using dedicated project teams
D. Shorter project lead times
E. Longer project lead times
Answer B
Companies outsource significant segments of project work, and project managers have to manage not only their own
people but also their counterparts in different organizations.

24. The importance of project management has increased due to

A. The movement of manufacturing operations out of the U.S
B. Time to market
C. The movement toward flatter and leaner organizations
D. Both a and b are true
E. A, B, and C are all true
Answer E
One of the most significant driving forces behind the demand for project management is the shortening of the product life
cycle. In today's flatter and leaner organizations, where change is a constant, project management is replacing middle
management as a way of ensuring that things get done. Corporate downsizing has also led to a change in the way organizations
approach projects. Companies outsource significant segments of project work, and project managers have to manage not only
their own people but also their counterparts in different organizations.
25. Which of the following is not typically the responsibility of a project manger?
A. Meeting budget requirements
B. Meeting schedule requirements
C. Meeting performance specifications
D. Coordinates the actions of the team members
E. All of these are typical responsibilities
Answer E
They must ensure that appropriate trade-offs are made between the time, cost, and performance requirements of
the project.

26. A series of coordinated, related, multiple projects that continue over extended time intended to achieve a goal is
known as a
A. Strategy
B. Program
C. Campaign
D. Crusade
E. Venture
Answer B
A program is a group of related projects designed to accomplish a common goal over an extended period of time.

27. In which of the following stages is it determined what the project will entail, when it will be scheduled, whom it will benefit,
and what the budget will be?
A. Conceptualizing
B. Defining
C. Planning
D. Executing
E. Delivering
Answer C
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled,
whom it will benefit, what quality level should be maintained, and what the budget will be.

28. Competing in a global market is influenced by

A. Rapid change
B. Innovation
C. Time to market
D. Politics
E. A, B, and C are all true
Answer E
Competing in a global market influenced by rapid change, innovation, and time to market means organizations manage
more and more projects.

29. Integration of all project processes and practices to improve Project Management is due to
A. Centralization
B. Environmental analysis
C. Customer Expectations
D. Project management system
E. The organization's environment and culture
Answer A
Centralization entails integration of all project processes and practices to improve project management.

30. From 1994 to 2009 the trend for projects late or over budget was:
A. Significantly better
B. Slightly better
C. About the same
D. Slightly worse
E. Significantly worse
Answer B
Failed projects also declined from 31 percent in 1994 to 18 percent in 2004. However, the CHAOS Summary 2009 report
shows a small decrease in the numbers.

Fill in the Blank Questions

31. Like most organizational effort, the major goal of a project is to .
satisfy a customer's need
Like most organizational effort, the major goal of a project is to satisfy a customer's need.

32. The initial stage in the Project Life Cycle is the stage.
defining
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are
assigned.

33. The final stage in the Project Life Cycle is the stage.
closure
Closure includes three activities: delivering the project product to the customer, redeploying project resources, and post-project
review.

34. The _______, a professional organization for project managers, has grown from 93,000 in 2002 to more than 230,000
currently.
PMI
The Project Management Institute (PMI), is a professional organization for project managers.

35. In the ____ stage of the Project Life Cycle a major part of the project work, both physical and mental, takes place.
executing
A major portion of the project work takes place—both physical and mental.

36. In the stage of the Project Life Cycle what will be accomplished by the project is determined along with the
project's schedule and budget.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled,
whom it will benefit, what quality level should be maintained, and what the budget will be.

37. A common rule of thumb in the world of high-tech product development is that a six- month project delay can result in
a __ percent loss in product revenue share.
thirty-three
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33
percent loss in product revenue share.

38. In today's high-tech industries the product life cycle is averaging years.
1 to 3
Today in high-tech industries the product life cycle is averaging 1 to 3 years. Only 30 years ago, life cycles of 10 to 15 years were
not uncommon.

39. The advent of many small projects has created the need for an organization that can support management.
multiproject
This climate has created a multiproject environment and a plethora of new problems. Sharing and prioritizing resources across a
portfolio of projects is a major challenge for senior management.

40. Increased competition has placed a premium on customer satisfaction and the development Of products
and services.
customized
Customers want customized products and services that cater to their specific needs.

41. In some organizations, selection and management of projects often fail to support the broad-based ______of the
organization.
strategic plan
Today, projects are the modus operandi for implementing strategy. Yet in some organizations, selection and management of
 projects often fail to support the strategic plan of the organization.

42. WBS, schedules, and budgets are examples of the dimension of the project management process.
technical
See Figure 1.3. The Technical and Sociocultural Dimensions of the Project Management Process on page 15.

43. Leadership, teamwork, and negotiation are examples of the ______dimension of the project management process.
sociocultural
See Figure 1.3. The Technical and Sociocultural Dimensions of the Project Management Process on page 15.

44. The is a professional organization for project management specialists.

Project Management Institute (PMI)
The Project Management Institute (PMI), is a professional organization for project managers.

45. One of the defining characteristics of a project is that it has a singular purpose, i.e., an established
.
objective
Projects have a defined objective—whether it is constructing a 12-story apartment complex by January 1 or releasing version
2.0 of a specific software package as quickly as possible.

46. Because projects have a defined beginning and end, the ___is frequently used to manage the transition of a project from
start to completion.
Project Life Cycle
The project life cycle typically passes sequentially through four stages: defining, planning, executing, and delivering.

47. The development of schedules, budgets, and identifying risks are common elements to the____ stage of the project life cycle.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled,
whom it will benefit, what quality level should be maintained, and what the budget will be.

48. The establishment of project goals, specifications, and responsibilities usually occurs in thestage of the project
life cycle.
defining
Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are
assigned.

49. Training the customer, reassigning staff, and releasing resources occurs in the ____ stage of the project life cycle.
closure
Includes three activities: delivering the project product to the customer, redeploying project resources, and post-project
review. Delivery of the project might include customer training and transferring documents.

50. Project managers are expected to ensure that appropriate trade-offs are made between the time, cost, and requirements
of the project.
performance
Project managers are ultimately responsible for performance (frequently with too little authority). They must ensure that
appropriate trade-offs are made between the time, cost, and performance requirements of the project.

51. The growth in has increased the complexity of projects because projects typically include the latest
advances.
new knowledge
The growth in new knowledge has increased the complexity of projects because projects encompass the latest advances.
Product complexity has increased the need to integrate divergent technologies. Project management has emerged as an
important discipline for achieving this task.

52. A __is a series of coordinated, related; multiple projects that continue over extended time intended to achieve a goal.
program
A program is a group of related projects designed to accomplish a common goal over an extended period of time.
53. In the stage, it determined what the project will entail, when it will be scheduled, whom it will
benefit, and what the budget will be.
planning
The level of effort increases, and plans are developed to determine what the project will entail, when it will be scheduled,
whom it will benefit, what quality level should be maintained, and what the budget will be.

True / False Questions

54. Because of the profitability motive, project management is nearly always limited to the private sector.
FALSE
Project management is not limited to the private sector. Project management is also a vehicle for doing good deeds and solving
social problems.

55. Ten years ago major universities offered only one or two classes in project management, primarily for engineers.
TRUE
Ten years ago major universities offered one or two classes in project management, primarily for engineers. Today, most
universities offer multiple sections of project management classes, with the core group of engineers being supplemented by
business students majoring in marketing, management information systems (MIS).

56. The professional certification for project managers is a Project Management Professional (PMP).
TRUE
PMI provides certification as a Project Management Professional (PMP)—someone who has documented sufficient project
experience, agreed to follow the PMI code of professional conduct, and demonstrated mastery of the field of project
management by passing a comprehensive examination. (See Snapshot on Page 4).

57. Because of its flexibility, project management is equally useful in ongoing, routine work as well as unique, one-time
projects.
FALSE
A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and
over, while a project is done only once; a new product or service exists when the project is completed.

58. One of the defining characteristics of project management is that the projects are not confined to a single department
but involve several departments and professionals.
TRUE
One of the major characteristics is the involvement of several departments and professionals.

59. One of the characteristics that separate project management from other endeavors of the organization is that there are
specific time, cost, and performance requirements.
TRUE
Major characteristics are specific time, cost, and performance requirements.

60. The singular purpose of a project is often lacking in daily organizational life in which workers perform repetitive
operations each day.
TRUE
This singular purpose is often lacking in daily organizational life in which workers perform repetitive operations each day.

61. Since a construction company builds many buildings the projects after the first building do not fit the definition of a project.
FALSE
All projects are nonroutine and has some unique elements.

62. The first stage in the Project Life Cycle is the Concept stage.
FALSE
The first stage is defining.

63. A major portion of the project work, both physical and mental, takes place during the Production stage of the Project
Life Cycle.
FALSE
A major portion of the project work, both physical and mental is done in the executing stage.
64. In practice, the amount of work accomplished in each stage of the Project Life Cycle will vary greatly depending on the
department or work group.
TRUE
In practice, the project life cycle is used by some project groups to depict the timing of major tasks over the life of the project.

65. Because of the requirement for in-depth expertise, project management is generally restricted to specialists.
FALSE
Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge.

66. On the project team, the Marketing manager is the primary, direct link with the customer.
FALSE
Project Managers are typically the direct link to the customer and must manage the tension between customer expectations
and what is feasible and reasonable.

67. One of the most significant driving forces behind the demand for project management is the ever increasing expansion of
the product life cycle.
FALSE
One of the most significant driving forces behind the demand for project management is the shortening of the product life
cycle.

68. Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge to make
trade-off decisions.
TRUE
Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge.

69. Because of the significant loss in potential product revenue, "time to market" has become one of the most critical factors in
developing new products.
TRUE
Time to market for new products with short life cycles has become increasingly important.

70. A common rule of thumb in the world of high-tech product development is that a six- month project delay can result in
a 33 percent loss in product revenue share.
TRUE
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a 33
percent loss in product revenue share. Speed, therefore, becomes a competitive advantage; more and more organizations are
relying on cross- functional project teams to get new products and services to the market as quickly as possible.

71. Project management integration necessitates combining all of the major dimensions of project management under one
umbrella.
TRUE
Project management integration necessitates combining all of the major dimensions of project management under one umbrella.
Each dimension is connected in one seamless, integrated domain. Integration means applying a set of knowledge, skills, tools,
and techniques to a collection of projects in order to move the organization toward its strategic goals.

72. Due to corporate downsizing significant segments of project work have been outsourced to other organizations.
TRUE
Corporate downsizing has also led to a change in the way organizations approach projects. Companies outsource significant
segments of project work, and project managers have to manage not only their own people but also their counterparts in
different organizations.

73. Smaller projects in larger organizations tend not to need project management skills.
FALSE
Many small projects can eat up the people resources of a firm and represent hidden costs not measured in the accounting
system. Organizations with many small projects going on concurrently face the most difficult project management problems.

74. In the current trends, Project managers are typically required to manage many diverse systems such as; networks, bar
charts, job costing, task forces, partnering and schedule, to manage projects.
 FALSE
Project managers must shape a project culture that stimulates teamwork and high levels of personal motivation as well as a
capacity to quickly identify and resolve problems that threaten project work. This dimension also involves managing the interface
between the project and external environment. Project managers have to assuage and shape expectations of customers, sustain
the political support of top management, negotiate with their functional counterparts, monitor subcontractors, and so on.
Overall, the manager must build a cooperative social network among a divergent set of allies with different standards,
commitments, and perspectives.

75. Project management is usually restricted to specialists.

FALSE
Unlike their functional counterparts, project managers generally possess only rudimentary technical knowledge.

76. Project management is becoming a standard way of doing business.

TRUE
Project management is no longer a special-need management. It is rapidly becoming a standard way of doing business.

Chapter - 3
Multiple Choice Questions

1. Organizational culture is best explained as organizational

A. Personality.
B. Hierarchy.
C. Reporting relationships.
D. Background.
E. Management style.
Answer A
A simple explanation of organizational culture is that it reflects the "personality" of an organization.

2. Which of the following is NOT true of project management structures?

A. They provide a framework for launching and implementing projects
B. They appropriately balance the needs of both the parent organization and the project
C. In selecting a management structure, the culture of the organization is not a huge consideration
D. The project itself should be considered when determining which structure is best
E. They help determine who has most authority in regard to managing the project
Answer C
When determining which project management structure is most appropriate, organizational culture should be considered. There are
often large differences in how projects are managed within certain firms even with similar structures. Researchers attribute this to
organizational culture.

3. All of the following are disadvantages of organizing projects within a matrix arrangement EXCEPT
A. Dysfunctional conflict between functional managers and project managers.
B. Expensive.
C. Infighting.
D. Stressful.
E. Longer project duration.
Answer B
Dysfunctional conflict, infighting, stressful situations, and longer project duration are all disadvantages of organizing projects within
a matrix arrangement. High cost is a disadvantage of dedicated project teams.

4. The structure that manages projects within the existing organizational structure is __________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Answer A
One approach to organizing projects is to simply manage them within the existing functional hierarchy of the organization. Once
management decides to implement a project, the different segments of the project are delegated to the respective functional units
with each unit responsible for completing its segment of the project.

5. Bill is working on a project involving the upgrading of a management information system. The project is being managed by the
information systems department with the coordination of other departments occurring through normal channels. He is working in a
_________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Answer A
When organizing projects within the functional organization, once management decides to implement a project, the different
segments of the project are delegated to the respective functional units with each unit responsible for completing its segment of the
project.

6. Which of the following is an advantage of a functional project management organization?

A. Maximum flexibility in the use of staff
B. Good integration across functional units
C. Shorter project duration
D. Strong motivation of project team members
E. Longer project duration
Answer A
There is maximum flexibility in the use of staff. Appropriate specialists in different functional units can temporarily be assigned to
work on the project and then return to their normal work.

7. Which of the following is a disadvantage of functional project management organization?

A. Lack of motivation of project team members
B. Longer project duration
C. Lack of focus on the project
D. Poor integration
E. All of these are disadvantages of functional project management organization
Answer E
Disadvantages of functional project management organization are lack of focus on the project, poor integration across functional
units, longer project duration due to slow response time, and lack of ownership.

8. Which of the following is a disadvantage of a projectized organization?

A. It is expensive
B. Longer project duration
C. Poor integration
D. High complexity
E. Lack of focus on the project
Answer A
Disadvantages of organizing projects as dedicated project teams are that it is expensive, internal strife can occur, limited
technological expertise, and difficult post-project transition.

9. A project team that operates with a full-time project manager as a separate unit from the rest of the organization is structured
using ________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Answer E
Instead of one or two special projects, the organization consists of sets of quasi-independent teams working on specific projects. The
main responsibility of traditional functional departments is to assist and support these project teams. This type of organization is
referred to in the literature as a Projectized Organization.

10. Which of the following combinations represents the extremes of project organization?
A. Strong matrix and balanced matrix
B. Functional and projectized
C. Projectized and balanced matrix
D. Projectized and strong matrix
E. Strong matrix and functional
Answer B
The functional organization is also commonly used when, given the nature of the project, one functional area plays a dominant role
in completing the project or has a dominant interest in the success of the project. At the other end of the structural spectrum is the
creation of dedicated project teams. These teams operate as separate units from the rest of the parent organization.

11. MegaComputers Inc., has assigned a project manager for each of the five new-product teams. The managers, as well as the
project team members, work on the projects on a full-time basis. The structure being used is ________ organization.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Answer E
Instead of one or two special projects, the organization consists of sets of quasi-independent teams working on specific projects.

12. All of the following are organizational considerations when determining the right project management structure EXCEPT
A. How important project management is to the success of the organization
B. What percentage of core work involves projects
C. Resource availability
D. Assess current practices and determine any changes that are needed to more effectively manage projects
E. Budget constraints
Answer E
Budget constraints are a project consideration and not an organizational consideration.

13. Elizabeth is considering how to structure a project team that will not directly disrupt ongoing operations. The project needs to be
done quickly and a high level of motivation will be needed in order to do that. For this situation, the ______ organization would be
the best choice.
A. Functional
B. Balanced matrix
C. Weak matrix
D. Strong matrix
E. Projectized
Answer E
In many cases, the project team approach is the optimum approach for completing a project when you view it solely from the
standpoint of what is best for completing the project.

14. At the project level, which of the following is a factor that should influence the choice of project management structure?
A. The size of the project
B. The novelty of the project
C. Budget and time constraints
D. The strategic importance of the project
E. All of these are factors that should influence the choice of project management structure
Answer E
At the project level, seven factors should influence the choice of project management structure. They are the size of the project, the
strategic importance, the novelty and need for innovation, the need for integration, the environmental complexity or the number of
external interfaces, budget and time constraints, and the stability of resource requirements.

15. Which are the three different matrix systems discussed in the text?
A. Functional, Weak, Strong
B. Balanced, Functional, Projectized
C. Weak, Strong, Balanced
D. Neutral, Weak, Strong
E. Functional, Neutral, Projectized
Answer C
In practice there are really different kinds of systems, depending on the relative authority of the project and functional managers.
The text discusses the weak matrix, the balanced matrix and the strong matrix.

16._________ organization is a hybrid form in which a horizontal project management structure is "overlaid" in the normal
functional hierarchy.
A. Functional
B. Matrix
C. Project
D. Balanced
E. Neutral
Answer B
Matrix management is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the normal
functional hierarchy.

17. Which of the following is NOT true regarding organizing projects within a matrix arrangement?
A. Its flexibility supports a strong project focus that helps alleviate stress among project team members
B. It is designed to optimally utilize resources by having individuals work on multiple projects as well as being capable of performing
normal functional duties
C. There are usually two chains of command
D. Provides a dual focus between functional/technical expertise and project requirements that is missing in either the project team
or the functional approach
E. It is a hybrid form of organization that combines characteristics of both dedicated project teams and functional organization
Answer A
It is true that a matrix arrangement supports a stronger project focus; however, this arrangement is also very stressful for team
members due to the fact that they are reporting to two managers.

18. In which of the following is the balance of authority strongly in favor of the functional managers?
A. Weak matrix
B. Balanced matrix
C. Strong matrix
D. Matrix
E. Neutral matrix
Answer A
In a weak matrix, the functional managers call most of the shots and decide who does what and when the work is completed.

19. All of the following are functions culture plays in an organization EXCEPT
A. It provides a sense of identity.
B. It helps legitimize the management system.
C. It replaces the need for a project selection process.
D. It helps create social order.
E. It clarifies and reinforces standards of behavior.
Answer C
An organization's culture provides a sense of identity, helps legitimize the management system, helps create social order and
clarifies and reinforces standards of behavior.

20. How does someone learn more about an organization's culture?

A. Read about the organization
B. Interpret stories about the organization
C. Observe how people interact within the organization
D. Study the physical characteristics of the organization
E. All of these are examples of how someone can learn more about an organization's culture
Answer E
Physical characteristics (architecture, office layout, décor), public documents (annual reports, vision statements), behavior (pace,
language, meetings), and folklore (stories, heroines, heroes, villains) are all ways to find out more about an organization's culture.
21. Which organization's culture is NOT a culture a project manager has to be able to operate in or interact with?
A. The culture of their parent organization
B. The culture of government and regulatory agencies
C. The culture of vendors and subcontractors
D. The culture of the project's customer or client
E. All of these are cultures a project manager has to be able to operate in or interact with
Answer E
Project managers have to be able to operate in several, potentially diverse, organizational cultures.

22. Which structure would be most appropriate for developing a new, highly innovative product that has strict time constraints?
A. Functional organization
B. Balanced matrix
C. Dedicated project team
D. Strong matrix
E. Weak matrix
Answer C
A dedicated project team is separate from the rest of the parent organization and appropriate when the project is highly innovative
and when there are budget and time constraints.

23. From the list below, which is NOT a primary characteristic of organizational culture?
A. Control
B. Team emphasis
C. Profitability
D. Conflict tolerance
E. Risk tolerance
Answer C
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings. Profitability is not a primary characteristic of organizational culture.

24. Factors in identifying cultural characteristics include all the following EXCEPT
A. Norms.
B. Customs.
C. Values.
D. Attitude.
E. All of these are factors in identifying cultural characteristics.
Answer D
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings. This system is manifested by customs and habits that exemplify the values and beliefs of the organization.

25. Who is responsible for determining how tasks will be done in a weak matrix project management structure?
A. The functional manager
B. The project manager
C. Both the functional manager and the project manager are responsible
D. There is no rule established for who takes responsibility
E. This is negotiated
Answer A
Matrix management is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the normal
functional hierarchy. In a matrix system, there are usually two chains of command, one along functional lines and the other along
project lines. Instead of delegating segments of a project to different units or creating an autonomous team, project participants
report simultaneously to both functional and project managers.

26. Which of the following cultural characteristics relates to the degree to which employees identify with the organization as a whole
rather than with their type of job or field of professional expertise?
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control
Answer A
Member identity is the degree to which employees identify with the organization as a whole rather than with their type of job or
field of professional expertise.

27. Which of the following cultural characteristics relates to the degree to which work activities are organized around groups rather
than individuals?
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control
Answer B
Team emphasis is the degree to which work activities are organized around groups rather than individuals.

28. Which of the following cultural characteristic relates to the degree to which rules, policies, and direct supervision are used to
oversee and control employee behavior?
A. Member identity
B. Team Emphasis
C. Managerial focus
D. Unit integration
E. Control
Answer E
Control is the cultural characteristic that relates to the degree to which rules, policies, and direct supervision are used to oversee
and control employee behavior.

29. Which of the following cultural characteristics relates to the degree to which groups within the organization are encouraged to
operate in a coordinated or independent manner?
A. Member identity
B. Team emphasis
C. Managerial focus
D. Unit integration
E. Control
Answer D
Unit integration is the degree to which units within the organization are encouraged to operate in a coordinated or independent
manner.

30. Which of the following cultural characteristics relates to the degree to which management focuses on outcomes rather than on
techniques and processes used to achieve those outcomes?
A. Risk tolerance
B. Reward criteria
C. Conflict tolerance
D. Means versus end orientation
E. Open-systems focus
Answer D
Means versus end orientation is the degree to which management focuses on outcomes rather than on techniques and processes
used to achieve those results.

Fill in the Blank Questions

31. The personality of an organization is a simple explanation of ___________.
organizational culture
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings.

32. The approach to project management that uses the existing hierarchy of the organization to manage projects is ___________
organization.
functional
One approach to organizing projects is to simply manage them within the existing functional hierarchy of the organization. Once
management decides to implement a project, the different segments of the project are delegated to the respective functional units
with each unit responsible for completing its segment of the project.

33. No radical alteration in the design or operation of the parent organization is a major advantage of __________ organization.
functional
Once management decides to implement a project, the different segments of the project are delegated to the respective functional
units with each unit responsible for completing its segment of the project. No change in the design or operation of the parent
organization is a major advantage to a functional organization.

34. Two of the major disadvantages of the ________ organizational approach are that projects may lack focus and it can take longer
to complete projects.
functional
These disadvantages are particularly pronounced when the scope of the project is broad and one functional department does not
take the dominant technological and managerial lead on the project.

35. Firms where projects are the dominant form of business and the entire organization is designed to support project teams are
usually structured as a(n) _________ organization.
projectized
Instead of one or two special projects, the organization consists of sets of quasi-independent teams working on specific projects.
This type of organization is referred to in the literature as a projectized organization.

36. A high level of motivation and the tendency for projects to get done more quickly are benefits of using the ________
organizational approach to project management.
projectized
A high level of motivation and cohesiveness often emerges within the project team. Participants share a common goal and personal
responsibility toward the project and the team.

37. High project costs and difficult post-project transition are two evident weaknesses of a(n) __________ organization.
projectized
Disadvantages of a projectized organization include high project costs, internal strife, limited technological expertise and difficult
post-project transition.

38. In a(n) ________ system, there are usually two chains of command, one along functional lines and the other along project lines.
matrix
Matrix management is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the normal
functional hierarchy.

39. The ________ structure is designed to optimally utilize resources by having individuals work on multiple projects as well as being
capable of performing normal functional duties.
matrix
Instead of delegating segments of a project to different units or creating an autonomous team, project participants report
simultaneously to both functional and project managers.

40. A matrix in which the balance of authority is strongly on the side of the project manager is described as __________.
strong
When the dominant organization culture inhibits collaboration and innovation, it is advisable to insulate the project team from the
dominant culture. Here it becomes necessary to create a self-sufficient project team. If a dedicated project team is impossible
because of resource constraints, then at least a project matrix should be used where the project manager has dominant control over
the project. In both cases, the managerial strategy is to create a distinct team subculture where a new set of norms, customs, and
values evolve that will be conducive to project completion.

41. A matrix in which the balance of authority is strongly on the side of the functional manager is described as _________.
weak
This form is very similar to functional organization with the exception that there is a formally designated project manager
responsible for coordinating project activities. Functional managers call most of the shots and decide who does what and when the
work is completed.

42. High levels of stress and dysfunctional conflict are disadvantages of a(n) _________ organization.
matrix
Matrix management violates the management principle of unity of command. Project participants have at least two bosses—their
functional head and one or more project managers. This can result in high levels of stress and dysfunctional conflict.

43. The ________ matrix form of project organization is likely to enhance project integration, diminish internal power struggles, and
ultimately improve control of project activities and costs.
strong
The strong matrix most closely resembles a dedicated project team. The functional manager is consulted on a need basis. This is
likely to enhance project integration, diminish internal power struggles, and ultimately improve control of project activities and
costs.

44. The ________ matrix form of project organization is likely to improve technical quality as well as provide a better system for
managing conflict across projects because the functional manager assigns personnel to different projects.
weak
The weak matrix most closely resembles functional organization. The project manager basically acts as a staff assistant who draws
the schedules and checklists, collects information on status of work, and facilitates project completion. This is likely to improve
technical quality as well as provide a better system for managing conflict across projects because the functional manager assigns
personnel to different projects.

45. The ________ matrix form of project organization can achieve better equilibrium between technical and project requirements,
but it is a very delicate system to create and manage.
balanced
This is the classic matrix in which the project manager is responsible for defining what needs to be accomplished while the functional
managers are concerned with how it will be accomplished. More specifically, the project manager establishes the overall plan for
completing the project, integrates the contribution of the different disciplines, sets schedules, and monitors progress.

46. ________ project teams should be used for urgent projects in which the nature of the work requires people working steadily
from beginning to end.
Dedicated
Strong budget and time constraints and high stability of resource requirements imply more autonomy and authority that the project
manager and the project team need to be successful. This translates into using a dedicated project team.

47. Conflict tolerance, risk tolerance, reward criteria and unit integration are all examples of cultural __________.
characteristics
Research suggests that there are 10 primary characteristics which capture the essence of an organization's culture. These include
conflict tolerance, risk tolerance, reward criteria and unit integration.

48. Research suggests that there is a strong connection between project management structure, organizational ________, and
project success.
culture
Culture reflects the personality of the organization and, similar to an individual's personality, can enable us to predict attitudes and
behaviors of organizational members.

49. Organization ________ refers to a system of shared norms, beliefs, values, and assumptions which bind people together, thereby
creating shared meanings.
culture
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings.

50. The more autonomy and authority the project manager and project team need to be successful, the more appropriate a
dedicated project team or a(n) ________ matrix structure is to manage the project.
strong
A dedicated project team or a strong matrix is most appropriate when project consideration factors such as project size, strategic
importance, and need for innovation are high.

51. When most of the project work can be done within a specified department and any coordination with other departments can be
done easily through normal management channels, ___________ organization is most appropriate.
functional
The functional organization is also commonly used when, given the nature of the project, one functional area plays a dominant role
in completing the project or has a dominant interest in the success of the project.

52. The cultural characteristic that refers to the degree to which rewards such as promotion and salary increases are allocated
according to employee performance rather than seniority, favoritism, or other nonperformance factors is known as _____________.
reward criteria
Reward criteria reflect the degree to which rewards such as promotion and salary increases are allocated according to employee
performance rather than seniority, favoritism, or other nonperformance factors.

53. The cultural characteristic that refers to the degree to which employees are encouraged to air conflicts and criticisms openly is
known as ___________.
conflict tolerance
Conflict tolerance is the degree to which employees are encouraged to air conflicts and criticisms openly.

54. The cultural characteristic that refers to the degree to which the organization monitors and responds to changes in the external
environment is known as ___________.
open-systems focus
Open-systems focus is the degree to which the organization monitors and responds to changes in the external environment.

55. The cultural characteristic that refers to the degree to which employees are encouraged to be aggressive, innovative, and risk
seeking is known as _____________.
risk tolerance
Risk tolerance is the degree to which employees are encouraged to be aggressive, innovative, and risk seeking.

True / False Questions

56. While organization culture is important to the overall function of an organization, it has minor influence on its project
management.
FALSE
Culture reflects the personality of the organization and, similar to an individual's personality, can enable us to predict attitudes and
behaviors of organizational members.

57. There are often considerable differences in how projects are managed within certain firms, even when similar project
management structures are being used.
TRUE
For example, working in a matrix at AT&T is different from working in a matrix environment at Hewlett-Packard.

58. The projectized form of project management structure is commonly used when one functional area plays a dominant role in
completing the project or has a dominant interest in the success of the project.
FALSE
The functional organization is commonly used when, given the nature of the project, one functional area plays a dominant role in
completing the project or has a dominant interest in the success of the project.

59. The matrix form of project management structure is a good choice when resource usage needs to be optimized by having
individuals work on multiple projects while still performing functional duties.
TRUE
The matrix structure is designed to optimally utilize resources by having individuals work on multiple projects as well as being
capable of performing normal functional duties.

60. A disadvantage of using the functional form of project management structure is that projects generally take longer to complete.
TRUE
It generally takes longer to complete projects through this functional arrangement. This is in part attributable to slow response time.
Project information and decisions have to be circulated through normal management channels.

61. The functional project team is usually physically separated from the parent organization and given the primary directive of
accomplishing the objectives of the project.
FALSE
Dedicated project teams are teams which operate as separate units from the rest of the parent organization. Usually a full-time
project manager is designated to pull together a core group of specialists who work full time on the project.

62. In the projectized form of project management structure, there is limited technological expertise when compared to the
functional or matrix organization.
TRUE
Creating self-contained teams inhibits maximum technological expertise. It is limited somewhat to the talents and experience of the
specialists assigned to the project.

63. The projectized form of project management structure is a good choice when speed of completion is important and the project
needs to be implemented without directly disrupting ongoing operations.
TRUE
Projects tend to get done more quickly when participants devote their full attention to the project and are not distracted by other
obligations and duties.

64. One of the major disadvantages of the projectized form of project management structure is that it tends to be more expensive
than other forms of organization.
TRUE
The projectized form is expensive. Not only have you created a new management position (project manager), but resources are also
assigned on a full-time basis. This can result in duplication of efforts across projects and a loss of economies of scale.

65. One advantage of a matrix project management structure is that it is fast and easy to implement.
FALSE
A matrix structure cannot be installed overnight. Experts argue that it takes 3-5 years for a matrix structure to fully mature.

66. A matrix project management structure is a hybrid organizational form in which a horizontal project management structure is
"overlaid" on the normal functional hierarchy.
TRUE
Matrix management is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the normal
functional hierarchy.

67. When three forms of the matrix project management structure are considered, all share the same advantages and disadvantages
and at an equal level.
FALSE
When the variant forms of the matrix approach are considered, we can see that advantages and disadvantages are not necessarily
true for all three forms. The strong matrix is likely to enhance project integration, diminish internal power struggles, and ultimately
improve control of project activities and costs. On the downside, technical quality may suffer because functional areas have less
control over their contributions.

68. When determining the most appropriate project management structure, considerations need to be made at the organizational
level and at the project level.
TRUE
At the organizational level, the importance of project management to the success of the firm needs to be considered as well as
resource availability. At the project level, things such as project size, strategic importance and need for innovation need to be
considered.

69. Generally, the more autonomy and authority the project manager and the project team need to be successful, the more
appropriate to implement either a dedicated project team or a strong project management structure.
TRUE
The bigger the project, the more environmentally complex, the tighter the budget and cost constraint, the more autonomy and
authority the project manager and the project team need to be successful. This translates into using either a dedicated project team
or a strong project matrix structure.

70. As discussed in the text, the three forms of matrix project management are weak, mixed, and strong.
FALSE
The three forms are weak, balanced, and strong.

71. Within a matrix project management structure, the extent to which the project manager has direct authority over project
participants depends on whether the matrix is weak, balanced, or strong.
TRUE
In practice there are different kinds of matrix systems, depending on the relative authority of the project and functional managers.

72. In a balanced matrix form of project management, the project manager is responsible for defining what needs to be
accomplished while the functional managers are concerned with how it will be accomplished.
TRUE
The merger of "what and how" requires both parties to work closely together and jointly approve technical and operational
decisions.

73. The matrix form of project management is notable for the tension it creates between functional managers and project managers
who both bring critical expertise and perspectives to the project.
TRUE
The matrix approach is predicated on tension between functional managers and project managers who bring critical expertise and
perspectives to the project. Such tension is viewed as a necessary mechanism for achieving an appropriate balance between
complex technical issues and unique project requirements.

74. Member identity refers to the degree to which work activities are organized around groups rather than individuals.
FALSE
Team emphasis refers to the degree to which work activities are organized around groups rather than individuals.

75. Control is the cultural characteristic that refers to the degree to which management decisions take into account the effect of
outcomes on people within the organization.
FALSE
Management focus refers to the degree to which management decisions take into account the effect of outcomes on people within
the organization.

76. Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which bind people together.
TRUE
Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people together, thereby
creating shared meanings. This system is manifested by customs and habits that exemplify the values and beliefs of the organization.

77. Unit integration is the cultural characteristic that refers to the degree to which units within the organization are encouraged to
operate in a coordinated or independent manner.
TRUE
Unit integration refers to the degree to which units within the organization are encouraged to operate in a coordinated or
independent manner.

78. There are strong connections among project management structure, organizational culture, and project success.
TRUE
There are strong relationships among project management structure, organizational culture, and successful project management.

79. Certain aspects of the culture of an organization support successful project management while other aspects deter or interfere
with effective management.
TRUE
There are subcultures within an organization where differing norms and values exist. Those working in marketing may have different
values than those working in finance.