Management 440 Chapter 12

What is the disadvantage of outsourcing project work that is described below? Trust, which is essential to project success, can be difficult forge with interactions are limited and people come from different organizations.

conflict

Contracting project work has long been the norm in the _______________ industry.

construction

A(n) ____________ defines the rights and responsibilities of the parties involved in a codification of private law.

contract

What type of outsourcing does the description below describe? Reduces overhead when a contracted service no longer has to be maintained.

cost reduction

When the scope of a project is well-defined with predictable costs and low implementation risks, what type of contract is preferred?

fixed-price

The two basic types of contracts are ______________.

fixed-price and cost-plus

What type of outsourcing does the description below describe? Enables an organization to pursue a wider range of projects.

flexibility

The saying "Seek first to understand, then be understood" reflects which of the four key principles of negotiation?

focus on interests, not positions

In principled negotiation, "focusing on interests, not positions" means _____________.

focus on what both parties are trying to achieve

Match the role project managers often assume with the strategy described below? Identify common interests and experiences.

friend

What is the advantage of knowing your BATNA?

gives you the power to walk away from the negotiation

What type of outsourcing does the description below describe? Enables an organization to focus on developing its core competencies.

high level of expertise

When an organization decides to outsource project work overseas, what type of training is necessary to enable a successful outsourcing relationship?

how to work with people from other countries

What are the six steps of procurement management in the appropriate order?

-Planning purchases and acquisitions -Planning contracting -Requesting seller responses -Selecting sellers -Administering the contract -Closing the contract

Many companies recognize that major benefits can be enjoyed when outsourcing arrangements extend across multiple projects and are long-term. Which of the following are advantages of establishing a long-term partnership? 1) more efficient utilization of resources 2) improved performance 3) reduced administrative costs 4) improved communication 5) improved innovation 6) increased security issues

1, 2, 3, 4, 5

A contract does which of the following? 1) Defines responsibilities of the parties involved 2) Codifies private law which governs the relationship of the parties involved 3) Details the vision and mission of the parties involved 4) Defines the rights of the parties involved

1, 2, 4

Why do project managers accept negotiation as a noncompetitive process? 1) everyone loses if the project does not succeed 2) people on the project are allies and partners 3) to avoid having conflict on a project 4) everyone will continue to work together after the project ends

1, 2, 4

Which of the following are true statements about partnering? 1) In partnering, project teams consist of all participating organizations 2) In partnering, each party's goals and objectives may be similar, but the overriding objective is what is best for that party's organization 3) In partnering, risk is shared which encourages innovation and continuous improvement 4) In partnering, long-term commitments are made

1, 3, 4

Which of the following are disadvantages of outsourcing project work? 1) loss of control 2) low level of expertise 3) coordination breakdowns 4) security issues 5) conflict 6) political hot potato

1, 3, 4, 5, 6

The best practices being used by firms that excel in project management and have extensive outsourcing experience include? 1) fair and incentive laden contracts 2) risk transfer to the outsourcing party 3) well established conflict management processes in place 4) co-location when needed 5) frequent review and status updates 6) well defined requirements and procedures 7) long-term outsourcing relationships 8) extensive training and term building activities

1, 3, 4, 5, 6, 7, 8

Negotiation is pervasive in project management. Which of the following do project managers negotiate for? 1) command and control 2) support and funding 3) staff and technical input 4) priorities and commitments

2, 3, 4

One of the strategies for communicating with outsourcers is to "Confirm your requirements (Strategy 3)" . Which of the following are recommended steps in this strategy? 1) enforce late fees for missed deadlines 2) request a prototype 3) have your outsourcer re-document your requirements 4) document your requirements

2, 3, 4

Which of the following is not a recent trend in outsourcing project work? A) additional cost reductions B) increased quality of work performed C) increased ability to work together D) increased ability to collaborate

A

When an organization decides to outsource project work to a company in another country, training on how to work effectively with that company should be provided to ______________.

anyone who will interact with the company

In addition to win/win, Fisher and Ury advocate protecting yourself against ____________, as part of principled negotiation.

being taken advantage of

Recent industry polls indicate a shift away from simply nailing the best low-cost deal to securing services from companies that provide the _______________.

best value in terms of cost and performance

The purpose of a contract change control system is to define the process for _________________.

changing the original contract

When partnering organizations enable people from each organization to work side-by-side, this is an example of using ______________ to increase project coordination.

co-location

Match the role project managers often assume with the strategy described below? Provide challenging tasks to build the skills of team members

coach

______________ as partners is considered a legitimate project priority which is assessed along with time, costs, and performance.

collaborating

When outsourcing project work, integrating different firms' project management systems is a key factor in ____________.

developing well-defined requirements

When should project managers begin managing customer expectations?

during project approval phase

For every happy customer who shares their satisfaction regarding a particular product or service with another person, a dissatisfied customer is likely to share his/her dissatisfaction with ___________ other people.

eight

Match the role project managers often assume with the strategy described below? Use persuasion to influence others

entrepreneur

________________ is the primary control mechanism for dealing with and resolving problems on outsourced projects.

escalation

What type of outsourcing does the description below describe? Provides access to equipment that can accelerate completion of project tasks.

faster project completion

When dealing with unreasonable people who take a win/lose attitude in negotiations, Fisher and Ury recommend ___________.

negotiation jujitsu

Dovetailing is a technique used to _______________.

invent options for mutual gain

According to the met expectations model, customer satisfaction is a function of the extent to which perceived performance (or outcome) exceeds expectations. Mathematically, this relationship can be represented as a ratio. When performance falls short of expectations this ratio is _________________.

less than 1

Major benefits can be enjoyed when outsourcing arrangements are _______________.

long term

What is the disadvantage of outsourcing project work that is described below? The core team depends on other organizations that they have no direct authority over.

loss of control

A synonym for a "fixed-price contract" is ____________.

lump sum agreement

Match the role project managers often assume with the strategy described below? Align new ideas/proposals with strategic objectives

marketer

Negotiating jujitsu is a technique for _____________________.

negotiating with unreasonable people

The term ____________ has traditionally been applied to transferring business functions or processes (customer support, IT, accounting) to other, often foreign companies.

outsourcing

_________________ contracts are those in which significant incentives and penalties are established based on priorities of the project.

performance based

What is the disadvantage of outsourcing project work that is described below? Foreign outsourcing of work is perceived as a major cause of underemployment and US companies are under increased pressure to keep jobs local.

political hot potato

Match the role project managers often assume with the strategy described below? Align with powerful individuals

politician

Fisher and Ury from the Harvard Negotiation project champion approach called __________________ negotiation.

principled

When a project charter is developed as a result of a team-building session, the charter includes common goals for the project and ______________.

procedures to achieve these goals

Once an organization decides to outsource project work, bids will be solicited by using a __________ which is often developed by the project manager.

request for proposal (RFP)

What is the disadvantage of outsourcing project work that is described below? Depending on the nature of the project, business trade secrets may be revealed as part of the outsourcing.

security issues

What is the final step in the request for proposal (RFP) process?

select the contractor

Fisher and Ury advocate "be hard on the problem, soft on the people". This fits into which key point of principled negotiation?

separate the people from the problem

The old German proverb, "Let anger fly out the window" reflects which of the four key principles of negotiation?

separate the people from the problem

Who bears the majority of the risk in a cost-plus contract?

the client

Who bears the majority of the risk in a fixed-price contract?

the contractor

On small projects, a "cost-plus contract" is also called a ________________.

time and materials contract

Resolving a dispute by deferring to formulas established by the Financial Accounting Standards board reflects which of the four key principles of negotiation?

use objective criteria when possible