Chapter 2 The Organizational Context: Strategy, Structure, and Culture
49) A typical PMO could supply a company's project manager with assistance in: A) Activity scheduling. B) Establishing organizational structure. C) Crafting a mission statement. D) Day-to-day process improvement.
A) Activity scheduling.
35) A project structure for an organization is a peach when you consider how well it: A) Creates legions of project management experts. B) Maintains a pooled supply of intellectual capital. C) Assuages the fear of unemployment by project team members once the project has ended. D) Fosters loyalty to the overall organization by project team members.
A) Creates legions of project management experts.
57) The tale of Professor Larry Foster and his grade book filled with Fs was told by one generation of faculty to the next with a mix of envy, awe and delight. If there was one thing you could be sure of, there was no grade inflation in his department, whose culture was formed primarily by: A) Critical incident. B) Reward system. C) Rules and procedures. D) Environment.
A) Critical incident.
7) A strategic element consisting of statements such as "a 5% increase in freshman to sophomore retention" and "a 10% increase in the six-year graduation rate" is BEST described as a: A) Goal. B) Program. C) Strategy. D) Mission.
A) Goal.
42) The belief that organizations can sometimes gain tremendous benefit from creating a fully dedicated project organization is captured by the term: A) Heavyweight project organization. B) Matrix organization. C) Benevolent society. D) Leveraged benefits.
A) Heavyweight project organization.
2) Which of the following is descriptive of a vision statement? A) Inspirational B) Functional C) Supportive D) Critical
A) Inspirational
10) External stakeholders that are external to a project but possess the power to effectively disrupt the project's development are: A) Intervenor groups. B) Environmental groups. C) Stressor groups. D) Special-interest groups.
A) Intervenor groups.
53) The weather station model performs the invaluable function of: A) Keeping an eye on project status without influencing the project. B) Establishing standards for managing projects. C) Enforcing the adherence to accepted protocols for project management. D) Improving the current state of project management procedures.
A) Keeping an eye on project status without influencing the project.
46) Centralized units within an organization or department that oversee or improve the management of projects are called: A) Project management offices. B) PERT units. C) Tiger teams. D) Central clearinghouses.
A) Project management offices.
38) The project manager controls most of the project activities and functions, including the assignment and control of project resources in the: A) Strong matrix. B) Weak matrix. C) Dual matrix. D) Primal matrix.
A) Strong matrix.
14) The group that provides raw materials or resources that the project team needs to complete the project is: A) Suppliers. B) Intervenor groups. C) Top management. D) Functional managers.
A) Suppliers.
24) One thing that organizational structure must include is: A) The design of systems for effective communication. B) The standards of performance for all employees. C) The expected outcomes for all projects in the company portfolio. D) The mission and vision statements.
A) The design of systems for effective communication.
32) The functional structure is well-suited when: A) There are low levels of external uncertainty. B) There is high instability in the environment. C) Project coordination is assigned to the lowest levels in an organization. D) There must be rapid response to external opportunities and threats.
A) There are low levels of external uncertainty.
18) Which of the following is NOT an element of organizational structure? A) Well-articulated mission, vision, and value statements B) Formal reporting relationships C) Grouping together of individuals into departments D) Systems designed to ensure effective communication
A) Well-articulated mission, vision, and value statements
15) The first step in Block's framework of the political process as applied to stakeholder management is to: A) Assess your own capabilities. B) Assess the environment. C) Identify the goals of the principal actors. D) Define the problem.
B) Assess the environment.
11) Which of the following statements about clients is BEST? A) Client refers to the entire customer organization. B) Clients tend to be concerned with receiving the project as quickly as they can possibly get it. C) Client groups tend to have similar agendas. D) A single presentation is best when dealing with all client groups in an organization so that everyone hears exactly the same message.
B) Clients tend to be concerned with receiving the project as quickly as they can possibly get it.
3) One purpose of a mission statement is to: A) Establish a sense of what the organization hopes to accomplish. B) Explain the company's reason for existence. C) Support the tactical plans of the organization. D) Explicitly enumerate the projects in the company's portfolio.
B) Explain the company's reason for existence.
27) Companies that are structured by grouping people performing similar activities into departments are: A) Project organizations. B) Functional organizations. C) Matrix organizations. D) Departmental organizations.
B) Functional organizations.
33) In general, the poorest organizational structure when it comes to managing projects is probably the: A) Matrix structure. B) Functional structure. C) Project structure. D) Process structure.
B) Functional structure.
26) Probably the most common type of organizational structure today is: A) Project. B) Functional. C) Matrix. D) Organic.
B) Functional.
54) The greatest advantage of a PMO is that: A) It is essentially another layer of oversight within the organization. B) It helps an organization develop project management skills. C) It serves as a bottleneck for communication across the organization. D) All project management skills are located at one point in an organization.
B) It helps an organization develop project management skills.
37) A dual hierarchy is the salient feature of a: A) Project structure. B) Matrix structure. C) Functional structure. D) Bi-modal structure.
B) Matrix structure.
C) Mission. 6) Which of these strategic elements exists at a higher level than the others? A) Programs B) Objectives C) Goals D) Strategies
B) Objectives
65) Which of these is NOT considered a critical contextual factor in project management? A) Organizational strategy B) Organizational function C) Organizational structure D) Organizational culture
B) Organizational function
19) The assistant to the manager did not report to the assistant manager, only to the manager. This reporting relationship was clearly delineated in the: A) Company culture. B) Organizational structure. C) Stakeholder analysis. D) Company mission statement.
B) Organizational structure.
43) The Larson and Gobeli study that compared projects that had been managed in a variety of structural types revealed that new product development projects tended to be most effectively executed when the organizational structure was a: A) Project matrix. B) Project organization. C) Balanced matrix. D) Functional matrix.
B) Project organization.
36) Staffing fluctuations associated with project completion and initiation are most likely to occur in organizations that are: A) Functionally structured. B) Project structured. C) Matrix structured. D) Process structured.
B) Project structured.
61) When grades aren't submitted in a timely fashion, the course management system assigns an incomplete. When a graduating student receives an incomplete in a senior level course, his job offer is withdrawn. When his job offer is withdrawn, the student has to crash at his buddy's apartment. When a student crashes at his buddy's apartment, he has to sleep on the couch. When a student sleeps on the couch, he wakes up covered with cat hair. In an effort to keep students free from cat hair, college leadership demands that all grades are submitted within ten hours of administering a final exam. This college's corporate culture is influenced strongly by: A) Reward systems. B) Rules and procedures. C) Key organizational members. D) Environment.
B) Rules and procedures.
9) Which statement about stakeholders is BEST? A) Stakeholders wield considerable power. B) Stakeholders can potentially impact project development. C) Stakeholders are external to a company. D) By definition, clients are not stakeholders, they are customers.
B) Stakeholders can potentially impact project development.
58) The information systems department prides itself on being on the often bleeding edge of high-tech course offerings. They were the first department to create online classes and the first to battle all of the issues associated with these offerings. When Wally interviewed for the new assistant professor position, he knew that his subcutaneous chip was only a hiring decision away. Corporate culture in this department is probably most affected by: A) The environment. B) Technology. C) Geographical location. D) Critical incidents.
B) Technology.
25) Which statement about organization for project management is BEST? A) The overall structure of the organization specifies how project team members should communicate with the project manager. B) The internal project team structure specifies the arrangement of all units or interest groups participating in the development of the project. C) Two distinct organizational structures operate simultaneously within the project management context: the organizational structure and the project team structure. D) All of these statements are correct.
B) The internal project team structure specifies the arrangement of all units or interest groups participating in the development of the project.
39) The manager of the Super Burrito Project is in the midst of an important project team meeting but Fred Fromage, the representative from the Cheese department, is nowhere to be found. After a brief investigation it is determined that Fred's manager in the Cheese department has other plans for Fred's time and efforts over the next several days and he simply won't be available for Super Burrito Project work. The organizational structure being used here is unquestionably a: A) Strong matrix. B) Weak matrix. C) Project organization. D) Chevre organization.
B) Weak matrix.
6) Economic conditions are a part of an organization's: A) stakeholders. B) external environment. C) organizational hierarchy. D) organizational structure.
B) external environment.
1) The management department at the university decides to add a new program in restaurant, hotel, and institutional management. As part of the development process they hold focus groups consisting of area business leaders, current and former students, and restaurant and hotel owners. These groups can be described as: A) clients. B) stakeholders. C) project workers. D) project leaders.
B) stakeholders.
5) Span of control refers to: A) the number of levels from top to bottom in an organization. B) the number of employees one person supervises. C) the number of departments involved in a project. D) the number of days that the project manager is allowed to complete the project.
B) the number of employees one person supervises.
51) The PMO is used to protect and support the skill of project management under the: A) Resource pool model. B) Weather station model. C) Control tower model. D) Project model.
C) Control tower model.
64) A failing project becomes a black hole for money, time, and personnel as management continues to pour resources into it despite the growing expectation that it will fail miserably. This phenomenon is known in project management circles as: A) The vanishing horizon. B) The Pareto principle. C) Escalation of commitment. D) Negative outcome disposition.
C) Escalation of commitment.
12) Which of the following is an internal project stakeholder group? A) Clients B) Suppliers C) Functional managers D) Competitors
C) Functional managers
63) Which of the following does NOT constitute an impact of organizational culture on project management? A) The way departments interact with each other B) How much trust exists among project team members C) How customers perceive mission and vision D) How committed employees are to goals
C) How customers perceive mission and vision
59) Herb Kelleher of Southwest Airlines frequently takes Southwest flights to check out operations and informally interview passengers to find out how satisfied they are with their service. Herb's attention to customer service and emphasis of it over profits permeates the organization. Southwest's corporate culture is influenced strongly by: A) Reward systems. B) Rules and procedures. C) Key organizational members. D) Environment.
C) Key organizational members.
5) The highest priority among strategic choice elements is: A) Objective. B) Strategy. C) Mission. D) Goal.
C) Mission.
55) The solution to external and internal problems that has worked consistently for a group and that is therefore taught to new members as the correct way to perceive, think about, and feel in relation to these problems is known as: A) Groupthink. B) Socialization. C) Organizational culture. D) A frame of reference.
C) Organizational culture.
30) A functional organization structure is a weakness for project management because: A) In-depth knowledge and intellectual capital development are enabled. B) No disruption or changes to a firm's design are necessitated by projects developed within this structure. C) Priorities among functional departments may be different and competing. D) Standard career paths are enabled so team members only perform their duties as needed.
C) Priorities among functional departments may be different and competing.
44) The Larson and Gobeli study that compared projects that had been managed in a variety of structural types revealed that construction projects tended to be most effectively executed when the organizational structure was a: A) Project organization. B) Balanced matrix. C) Project matrix. D) Functional matrix.
C) Project matrix.
28) A major player in the software industry stumbles from one new edition of its operating system and office automation package to another. As soon as one package is released, the programmers and developers have two weeks to latch onto a different team that is updating a different package. Failure to find another team to work for means an end to their employment. This organizational structure is BEST classified as a: A) Functional organization. B) Matrix organization C) Project organization. D) Flexible organization.
C) Project organization.
34) All major decisions and authority are under the control of the project manager in a: A) Matrix structure. B) Functional structure. C) Project structure. D) Process structure.
C) Project structure.
22) Span of control refers to: A) The number of departments involved in a project. B) The number of days that the project manager is allowed to complete the project. C) The number of employees one person supervises. D) The number of levels from top to bottom in an organization.
C) The number of employees one person supervises.
40) A major weakness of a matrix organizational structure for project management occurs when: A) The environment is dynamic. B) Resources are scarce and shared between functional responsibilities and the competing project. C) The number of human resource coordination meetings is considered. D) One considers the dual importance of project management and functional efficiency.
C) The number of human resource coordination meetings is considered.
47) A PMO is NOT used: A) As a resource center. B) To act as a central repository for project documentation. C) To replace the project manager as being responsible for the project. D) As the place where project management improvements are identified and then disseminated to the rest of the organization.
C) To replace the project manager as being responsible for the project.
50) The PMO is used as a tracking and monitoring device under the: A) Control tower model. B) Resource pool model. C) Weather station model. D) Radar model.
C) Weather station model.
16) Creating action plans to address the needs of various stakeholder groups is part of the ________ step of Block's framework for stakeholder management. A) define the problem B) test and refine the solutions C) develop solutions D) identify the goals of the principal actors
C) develop solutions
8) A functional organization structure is a weakness for project management because: A) standard career paths are enabled so team members only perform their duties as needed. B) in-depth knowledge and intellectual capital development are enabled. C) priorities among functional departments may be different and competing. D) no disruption or changes to a firm's design are necessitated by projects developed within this structure.
C) priorities among functional departments may be different and competing
4) A strategic perspective on project management might ask which of the following questions prior to undertaking a project? A) What is our corporate culture? B) Does this project support the company vision? C) Do we have the necessary budget for this project? D) Can we define the problem?
D) Can we define the problem?
2) Which of the following statements about clients is best? A) Client groups tend to have similar agendas. B) Client refers to the entire customer organization. C) A single presentation is best when dealing with all client groups in an organization so that everyone hears exactly the same message. D) Clients are concerned with receiving the project as quickly as they can possibly get it.
D) Clients are concerned with receiving the project as quickly as they can possibly get it.
20) Organizational structure identifies the grouping of individuals into: A) Organizations. B) Companies. C) Silos. D) Departments.
D) Departments.
1) Which of the following is NOT an element of strategic management? A) Formulating cross-functional decisions B) Implementing cross-functional decisions C) Evaluating cross-functional decisions D) Eliminating cross-functional decisions
D) Eliminating cross-functional decisions
13) Which of the following is an external stakeholder group? A) Project team members B) Top management C) Internal accountants D) Environmental groups
D) Environmental groups
45) The Larson and Gobeli study that compared projects that had been managed in a variety of structural types revealed that both new product development and construction projects tended to be least effectively executed when the organizational structure was a: A) Project matrix. B) Project organization. C) Balanced matrix. D) Functional organization.
D) Functional organization.
60) The Luther Post Office closes the customer service window promptly at noon for their lunch break and opens again at one, perhaps a little after if the town's Sonic is busy. The Jones Post Office workers are aghast at this policy, preferring to stagger their lunch breaks so that the customer service window is always attended. It would appear that this difference in culture is primarily driven by: A) Reward systems. B) Key organizational members. C) Critical incidents. D) Geographical location.
D) Geographical location.
21) Individuals are commonly organized into departments for all of the following reasons EXCEPT: A) Seniority. B) Function. C) Product. D) Geography.
D) Geography.
62) One way that organizational culture affects project management is by: A) How the environment is affected by the culture. B) Where the project occurs and how much it ultimately costs. C) The level of resources needed to complete the project. D) How departments are expected to interact with each other.
D) How departments are expected to interact with each other.
17) Cleland's project stakeholder management cycle: A) Requires all stakeholders to be identified and locked in as a first step. B) Is used to identify only internal stakeholders. C) Is used to identify only external stakeholders. D) Is a recurring cycle that allows new stakeholders to be considered at any time.
D) Is a recurring cycle that allows new stakeholders to be considered at any time.
29) John Drone toils endlessly at Hurts Corporation on his routine assignment and also on a number of project teams. His annual evaluation features input from his line manager and each of the project managers, all of whom have equal say in how his 12-hour work day is partitioned. John Drone is employed by a: A) Functional organization. B) Project organization. C) Cross-functional organization. D) Matrix organization.
D) Matrix organization.
23) The University of Puhonicks hires several professors that specialize in accounting, management, and economics and clusters each into one of three departments. The dean has obviously decided to group employees by: A) Function. B) Geography. C) Project. D) Product.
D) Product.
8) A strategic element that contains formally titled initiatives such as the Customer Survey Project, the Small Business Alliance Project, and the Employee Relations Project is most likely a: A) Mission. B) Strategy. C) Goal. D) Program.
D) Program.
41) A matrix organization for project management has a distinct advantage because: A) Dual hierarchies mean two bosses. B) A significant amount of time is spent negotiating the sharing of critical resources. C) Workers must reconcile competing project and functional demands. D) Project importance is enhanced by setting authority equal to that of functional departments.
D) Project importance is enhanced by setting authority equal to that of functional departments.
48) A typical PMO could supply a company's project manager with assistance in: A) Composing a project culture document. B) Establishing organizational structure. C) Crafting a mission statement. D) Resource allocation.
D) Resource allocation.
52) The PMO is used to maintain and provide a cadre of skilled and trained project professionals as needed under the: A) Control tower model. B) Cadre model. C) Weather station model. D) Resource pool model.
D) Resource pool model.
31) The tendency of employees in a functionally organized company to become fixated on their own concerns and work assignments to the exclusion of the needs of other departments is known as: A) Layering. B) Myopia. C) Nepotism. D) Siloing.
D) Siloing.
56) Which of the following statements about culture is BEST? A) Rules of behavior are formally written down so they can be learned as quickly as possible. B) Rules of behavior are common across the entire organization regardless of how large it is. C) Rules of behavior, since they are informal, may be accepted or rejected by new employees in the organization. D) The conversion process a company uses can influence its culture.
D) The conversion process a company uses can influence its culture.
4) Organizational structure identifies the grouping of individuals into: A) organizations. B) silos. C) companies. D) departments.
D) departments.
7) Companies that are structured by grouping people performing similar activities into departments are: A) matrix organizations B) departmental organizations. C) project organizations. D) functional organizations.
D) functional organizations.
9) A dual hierarchy is the salient feature of a: A) project structure. B) bi-modal structure. C) functional structure. D) matrix structure.
D) matrix structure.
10) Centralized units within an organization or department that oversee or improve the management of projects are called: A) PERT units. B) tiger teams. C) central clearinghouses. D) project management offices.
D) project management offices.
3) The group that provides raw materials or resources that the project team needs to complete the project is: A) functional managers. B) intervenor groups. C) top management. D) suppliers.
D) suppliers.
