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Chapter 03 Organization: Structure and Culture Answer Key

Multiple Choice Questions

1. Organizational culture is best explained as organizational

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

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Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.
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

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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.
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
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.

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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
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
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.

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Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.
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.

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Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
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.

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Topic: Project Management Structures

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
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.

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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
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
Instead of one or two special projects, the organization consists of sets of quasi-independent teams
working on specific projects.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
Budget constraints are a project consideration and not an organizational consideration.

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Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: What is the Right Project Management Structure?

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
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.
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.

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Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

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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
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
Matrix management is a hybrid organizational form in which a horizontal project management structure
is 'overlaid' on the normal functional hierarchy.

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Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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 are
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.
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.

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Difficulty: 3 Hard
Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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
In a weak matrix, the functional managers call most of the shots and decide who does what and when
the work is completed.

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Difficulty: 1 Easy
Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.
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.

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Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.
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.

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Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational 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.
Project managers have to be able to operate in several, potentially diverse, organizational cultures.

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Topic: Implications of Organizational Culture for Organizing Projects

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
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.

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Learning Objective: 03-02 Distinguish three different types of matrix structures and understand their strengths and weaknesses.
Topic: What is the Right Project Management Structure?

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
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.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: 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.
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.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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
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.

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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
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.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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
Team emphasis is the degree to which work activities are organized around groups rather than
individuals.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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
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.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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
Unit integration is the degree to which units within the organization are encouraged to operate in a
coordinated or independent manner.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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
Means versus end orientation is the degree to which management focuses on outcomes rather than on
techniques and processes used to achieve those results.

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Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

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Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

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Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

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Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

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Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.

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Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

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Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

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Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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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.

AACSB: Reflective Thinking

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Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-16
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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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: What is the Right Project Management Structure?

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

3-17
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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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

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.

functioinal

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.

AACSB: Reflective Thinking

Blooms: Understand

3-18
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Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

3-19
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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.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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 ATamp;T is different from working in a matrix environment at
Hewlett-Packard.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-20
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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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-21
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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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-22
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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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

3-23
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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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management 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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-24
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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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: What is the Right Project Management Structure?

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: What is the Right Project Management Structure?

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.

3-25
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Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

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.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

Short Answer Questions

3-26
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80. There are often considerable differences in how projects are managed within certain firms, even if the
same project management structure is being used. Explain.

Many researchers attribute these differences to the organizational culture. The organizational culture
reflects the personality of the organization.

AACSB: Analytical Thinking

Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

81. What is more important for project success, the formal project management structure or the culture of
the parent organization?

The culture of the parent organization is more important than the formal project management structure.
The project management structure should derive from the culture of the organization. The culture should
reveal what types of projects the organization will do and in turn will be reflected by the project
management structure.

AACSB: Analytical Thinking

Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

82. Identify and briefly describe at least two advantages and two disadvantages of organizing projects
within the functional organization.

Advantages include no alteration in the design or operation of the parent organization, flexibility in use
of staff, in-depth expertise, and easy post-project transition. Disadvantages include lack of focus, poor
integration, longer project duration and lack of motivation and ownership.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

3-27
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McGraw-Hill Education.

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83. Identify and briefly describe at least two advantages and two disadvantages of organizing project teams
as dedicated project teams.

Advantages include simplicity, shorter project duration, strong cohesiveness of project team members
and cross-functional integration. Disadvantages include high cost, internal strife, limited technological
expertise and difficult post-project transition.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

84. Identify and briefly describe at least two advantages and two disadvantages of organizing project teams
using the matrix management approach.

Advantages include high efficiency, strong project focus, easier post-project transition and flexibility.
Disadvantages include dysfunctional conflict, infighting, high levels of stress, and longer project
duration

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

85. Identify and briefly describe the three forms of organizing projects using the matrix management
approach.

(1) Weak matrix; (2) Balanced matrix; (3) Strong matrix.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

86. Compare and contrast the advantages and disadvantage of a weak project management structure and a
strong project management structure.

The strong matrix is likely to enhance project integration, diminish internal power struggles and
improve control. However, technical quality may suffer. The weak matrix is likely to improve technical
quality and provide better conflict management; however, there may be poor project integration.

AACSB: Analytical Thinking

Blooms: Apply

3-28
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McGraw-Hill Education.

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Difficulty: 3 Hard
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

87. Identify and briefly describe three of the 10 primary characteristics of organization culture.

Member identity, team emphasis, management focus, unit integration, unit integration, control, risk
tolerance, reward criteria, conflict tolerance, means vs. end orientation and open system focus.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

88. Culture performs several important functions in organizations. Clarifying and reinforcing standards of
behavior is one of these. Explain and provide an example.

Culture defines what is permissible and what inappropriate behavior is. These standards span a wide
range of behavior from dress code and working hours to challenging the judgment of superiors.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

89. Describe the difference between a "strong" or "thick" culture and a "thin" or "weak" culture.

"Strong" or "thick" are adjectives used to denote a culture in which the organization's core values and
customs are widely shared within the entire organization. Conversely, a "thin" or "weak" culture is one
that is not widely shared or practiced within a firm.

AACSB: Reflective Thinking

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

90. Briefly describe two ways to diagnose the culture of an organization and give an example of each.

(1) Study the physical characteristics of an organization; (2) Read about the organization; (3) Observe
how people interact within the organization; (4) Interpret stories and folklore surrounding the
organization.

AACSB: Reflective Thinking

Blooms: Understand

3-29
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McGraw-Hill Education.

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Difficulty: 2 Medium
Learning Objective: 03-04 Appreciate the significant role that organizational culture plays in managing projects.
Topic: Organizational Culture

Multiple Choice Questions

91. Growing pains can arise from implementing a matrix organization due to

A. Influence from other organizations

B. The long lead time of implementation
C. Cost and supply chain factors
D. Types of projects an organization is attempting to accomplish
Implementing a matrix organizational model can take between 3 to 5 years until it becomes effective for
the organization.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

92. Which of the below is not considered a strength for a matrix organization?

A. Strong project focus

B. Flexibility
C. Easier post-project transition
D. Streamlined project selection
Project selection processes are typically independent of an organizational structure.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: What is the Right Project Management Structure?

3-30
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93. Identified weaknesses of high expense, conflict between the team and the organization, and difficult
post-project transitions are typical of

A. Matrixed Teams
B. Functional Teams
C. Dedicated Teams
D. None of the above
Dedicated teams can become very independent and insulated for the overall organization.

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

94. It is common to use the functional organizational model when

A. There is direct influence from outside organizations

B. The project manager has functional authority over any of the department heads
C. One functional area plays a dominant role in the project
D. A technical organizational model will not work
Having a single functional area that has ownership or a significant interest in the success of the project
will lend itself to a natural leadership role.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-01 Identify different project management structures and understand their strengths and weaknesses.
Topic: Project Management Structures

95. If you are considering moving to a matrixed organization, you will need

A. time.
B. budget allocated.
C. strong leadership.
D. Both time and strong leadership.
Due to the political and personnel changes required, focused, incremental changes over time are key.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-03 Understand organizational and project considerations that should be considered in choosing an appropriate
project management structure.
Topic: Organizational Culture

3-31
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Fill in the Blank Questions

96. An indicator of project success within an organization is the strength of the _______________ to
support the project management structure.

organization culture

Research suggests that there is a strong connection between project management structure,
organizational culture, and project success.

AACSB: Reflective Thinking

Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

Multiple Choice Questions

97. Any organization has its own personality, much like an individual's personality.

A. True
B. False
That personality is reflected in the observed culture of the organization.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

98. The 10 primary characteristics of an organization’s culture all exist on a continuum.

A. True
B. False
These continuums ultimately define the unique culture of that organization at the point of measurement,
indicating that it can change over time.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

3-32
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McGraw-Hill Education.

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 lOMoARcPSD|8124706

99. An important function of an organization’s culture is to

A. Help legitimize the management system

B. Complete projects on budget and on schedule
C. Provide emotional intelligence for decision making
D. Determine the types of projects an organization is to accomplish
Culture helps clarify authority relationships and provide the basis as to why the people who are in a
position of authority are there and should be respected.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

Fill in the Blank Questions

100. A ______________ organizational culture is one where a set of core values and customs are shared
throughout the organization.

"strong= or <thick"

Conversely, a <thin= or <weak= organization is one where the core values and customs are not shared
universally throughout the organization.

AACSB: Reflective Thinking

Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

Multiple Choice Questions

101. In all cases of looking for an ideal project culture, there is always the need for

A. More funding.
B. Balance among multiple project dimensions.
C. Considerable support from all levels of management.
D. A very strong Project Management Office.
Balancing the outcome of the project and how to achieve the project is just as important as the balance
between risk and control tolerances.

AACSB: Reflective Thinking

3-33
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McGraw-Hill Education.

Downloaded by Thinh Truong (tvn1306@gmail.com)

 lOMoARcPSD|8124706

Accessibility: Keyboard Navigation

Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-06 Understand the interaction between project management structure and the culture of an organization.
Topic: Implications of Organizational Culture for Organizing Projects

3-34
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

Downloaded by Thinh Truong (tvn1306@gmail.com)