File: ch04, Chapter 4: Project Organization

Multiple Choice

1. Identify the statement that is not a major advantage of placing a project within a
functional element of the parent organization.
a) The flexible use of staff increases
b) Expertise is easily shared across multiple projects
c) The functional division tends to be oriented towards activities particular to its function
d) The functional division serves as a base of technological continuity
Ans: c
Response: Refer to section 4.1.
Level: easy

2. Identify the statement that is not a major disadvantage of placing a project within a
functional element of the parent organization.
a) There is a tendency to suboptimize the project
b) The client is not the primary focus of activity in the function
c) The motivation of people assigned to the project tends to be weak
d) The functional division contains the normal path of advancement for individuals
whose expertise is in the functional area
Ans: d
Response: Refer to section 4.1.
Level: easy

3. Identify the statement that is not a major advantage of placing a project within the
pure project organization.
a) The functional manager retains full line authority over project team members
b) The lines of communication are shortened
c) Centralized authority tends to increase the speed of decision-making
d) A holistic approach to performing the project is supported
Ans: a
Response: Refer to section 4.2
Level: easy

4. Identify the statement that is not a major disadvantage of placing a project within the
pure project organization.
a) The project manager has full line authority over the project
b) Projects duplicate effort because resources are not shared across projects
c) Projects attempt to stockpile resources
d) Policies and procedures of the organization are inconsistently used and enforced
Ans: a
Response: Refer to section 4.2.
Level: easy

5. If the project manager controls when and what people do while the functional
managers control who will be assigned to the project and what technology will be used,
the ________ organizational form is probably being used.
a) Projectized
b) Pure project
c) Matrix
d) Weak project
Ans: c
Response: Refer to section 4.3. The sharing of control is indicative of a matrix
organizational structure.
Level: advanced

6. In the systems approach to design, one organization would have to take responsibility
for ________.
a) Manufacturing everything in the system
b) The integrity of the project design
c) The integrity of the subcontractors
d) Product warranties
Ans: b
Response: Refer to section 4.3.
Level: intermediate

7. Identify the statement that is not a major advantage of placing a project in the matrix
approach.
a) A single individual, the project manager, takes responsibility for managing the project

b) The project will have access to representatives from the administrative units of the
parent firm
c) The division of authority between the project manager and the functional managers is
complex
d) There is less anxiety among team members about what will happen to them when the
project is completed
Ans: c
Response: Refer to section 4.3
Level: easy

8. Identify the statement that is not a major disadvantage of placing the project in the
matrix approach.
a) The balance of power between stakeholders is delicate
b) Balancing the demands of competing projects using shared resource pools is
complicated
c) The principle of unity of command is violated
d) The project manager takes responsibility for managing the project
Ans: d
Response: Refer to section 4.3
Level: easy

9. When a project requires the integration of inputs from several functional areas and
involves reasonably sophisticated technology, but does not require all the technical
specialists to work for the project on a full-time basis, the ________ organizational form
should be used.
a) Functional
b) Matrix
c) Pure project
d) Mixed
Ans: b
Response: Refer to section 4.5
Level: easy

10. The process of dealing with uncertainties in projects has come to be known as
________.
a) Scope management
b) Risk management

c) Quality management
d) Procurement management
Ans: b
Response: Refer to section 4.6.
Level: easy

11. The project management office is often created by organizations to ________.

a) Establish consistent project management standards and methods
b) Respond to the Y2K problem
c) Train process managers
d) Administer application software
Ans: a
Response: Refer to section 4.6, project management office
Level: easy

12. A major purpose of the project management office should be to serve as

a) Clerical support
b) Disaster recovery support
c) The critical link between strategic management and project management in the
organization
d) Maintain the project management library
Ans: c
Response: Refer to section 4.6, purposes of the project management office
Level: intermediate

13. This member of the project team is in charge of product design and development and
is responsible for functional analysis, specifications, drawings, cost estimates,
quality/reliability, engineering changes, and documentation.
a) Project engineer
b) Manufacturing engineer
c) Project controller
d) Support services manager
Ans: a
Response: Refer to section 4.7
Level: intermediate

14. This member of the project team is responsible for the efficient production of the
product of the process, including the manufacturing engineering, design and production
of tooling, production scheduling, and other production tasks.
a) Project engineer
b) Manufacturing engineer
c) Contract administrator
d) Support services manager
Ans: b
Response: Refer to section 4.7.
Level: intermediate

15. This behavior in a project manager would be highly correlated with unsuccessful
project management.
a) Conflict avoidance
b) Interdisciplinary problem solving
c) Win -win negotiation techniques
d) Risk mitigation
Ans: a
Response: Refer to section 4.6.
Level: easy

Short Answer

16. The underlying principle of modern organizations is ________ of the human

elements in the group.
Ans: specialization
Response: Refer to chapter 4, introduction.
Level: intermediate

17. The ________ organizational form is a pure project organization overlaid on the
functional divisions of the parent firm.
Ans: matrix

Response: Refer to section 4.3.

Level: easy

18. The ________ matrix is most similar to the pure project organizational form.
Ans: strong
Response: Refer to section 4.3.
Level: easy

19. The ________ matrix is least similar to the pure project organizational form.
Ans: weak
Response: Refer to section 4.3.
Level: easy

20. The ________ approach to design would require that the engine, airframe, and
weapons systems of an airplane be designed as a unit. The attempt is to optimize the
composite system rather than the parts.
Ans: systems
Response: Refer to section 4.3.
Level: intermediate

21. ________ is a means of dividing a large and monolithic organization into smaller,
more flexible units. When this is done, the parent organization is seeking to capture some
of the advantages of small, specialized organizational units while retaining some of the
advantages that come with larger size.
Ans: divisionalization
Response: Refer to section 4.4.
Level: intermediate

22. In the ________ form of organizational structure, pure functional and pure project
organizations may coexist in the firm.
Ans: mixed

Response: Refer to section 4.4

Level: easy

23. When the major focus of a project must be on the in-depth application of a
technology rather than on minimizing cost, meeting a specific schedule or achieving
speedy response to change, the ________ organizational form is apt to be the form of
choice.
Ans: functional
Response: Refer to section 4.5
Level: intermediate

24. When a firm engages in a large number of similar projects, the ________
organizational form is apt to be preferred.
Ans: pure project
Response: Refer to section 4.5
Level: intermediate

25. The ________ method of participative management allowed the worker to take
responsibility for the design and performance of a task under controlled conditions.
Ans: MBO (management by objectives)
Response: Refer to section 4.8.
Level: easy

26. According to Dawson, a group of individuals working independently is a ________.

Ans: name only team (NOT)
Response: Refer to section 4.8
Level: advanced

27. The ________ is a detailed plan of what needs to be done and when.
Ans: action plan
Response: Refer to the glossary.

Level: intermediate

28. ________ engineering refers to the use of a design team that includes design and
manufacturing engineers as well as staff from other relevant areas of the business.
Ans: concurrent
Response: Refer to the glossary.
Level: easy

29. The ________ manager is typically responsible for a number of related projects, each
with its own project manager.
Ans: program
Response: Refer to the glossary.
Level: easy

30. ________ is defined as inappropriately intense loyalty to the project.

Ans: projectitis
Response: Refer to the glossary.
Level: easy

31. ________ is the term that describes the optimization of a sub-element of a system,
perhaps to the detriment of the overall system.
Ans: suboptimization
Response: Refer to the glossary.
Level: easy

32. A room where project teams can meet, and where the latest details on project
progress will be available, is called the ________.
Ans: project war room
Response: Refer to the glossary.
Level: easy

33. The ________ describes how the scope of the project will be accomplished.
Ans: WBS (work breakdown structure)
Response: Refer to the glossary.
Level: easy

Essay

34. Identify the major reasons for the rapid growth of project-oriented organizations.
Ans: First, speed and market responsiveness have become requirements of successful
competition. Moreover, clients want increased customization of project outputs. Second,
the development of new products, processes, and services has become increasingly
complex. This requires interdisciplinary collaboration and coordination. Third, rapid
expansion of technological possibilities tends to destabilize organizational structures.
And finally, business managers are seeking to gain greater control over the operations of
the business.
Response: Refer to chapter 4, introduction.
Level: easy

35. Identify three major advantages and disadvantages of using functional elements of
the parent organization as the administrative home for a project. Assume that the
structure is appropriate for the project being undertaken.
Ans: The advantages would include: the flexible use of staff in a manner that maximizes
utilization of staff, the sharing of expertise among multiple projects, and the provision of
a stable base for technological continuity for the organization. The disadvantages would
include: the client is not the primary focus of activity within the function, lines of crossfunctional communication may be unclear, and responsiveness to client needs may be
slow and arduous.
Response: Refer to section 4.1. Any advantage or disadvantage listed in the textbook is an
appropriate answer to this question.
Level: easy

36. Identify three major advantages and disadvantages of using the pure project
organization as the administrative home for project. Assume that the structure is
appropriate for the project being undertaken.
Ans: The advantages would include: the project manager has full line authority over the
project, the structure tends to support a holistic approach to running the project, and the
ability to make swift decisions is greatly enhanced. The disadvantages would include:
the duplication of resources which are not shared between projects, the inconsistent
adherence to corporate policies and procedures, and the potential to develop projectitis in
a manner that distorts relationships between project team members and their counterparts
in the parent organization.
Response: Refer to section 4.2. Any advantage or disadvantage listed in the textbook is an
appropriate answer to this question.
Level: easy

37. Briefly described the six processes for risk management identified in the PMBOK
Guidelines.
Ans: Risk management planning is focused on how to approach and plan the risk
management activities for a project. In risk identification, the risks that can affect the
project for better or for worse are identified. In qualitative risk analysis, nonnumerical
priorities are established for the risk events identified previously. In quantitative risk
analysis, probability and impact are converted into expected monetary value. In risk
response planning, contingency plans are established to capture opportunities and
respond to threats. In risk monitoring and control, warning signs and triggers are used to
determine when corrective actions are required to bring the project back on track.
Response: Refer to section 4.6, organizing for risk management.
Level: easy

38. Discuss the advantages of empowering the project team.

Ans: By empowering a project team, team members are enabled to manipulate tasks so
that project objectives are met. Team members are encouraged to find better ways to do
things. A participative style of management avoids micromanaging professionals and
enables them to achieve goals using appropriate methods of their choosing. Team
members begin to understand that they are responsible and accountable for achieving the
projects deliverables. There is a good chance that synergistic solutions will result from
team collaboration. The project manager will serve as a tool for evaluating a team's
performance and will be positioned to provide timely feedback to keep the team on track.
Response: Refer to section 4.8
Level: easy