Test Bank Project Management 1st Edition Pinto PDF

Test Item File
Project Management
Achieving Competitive Advantage
Jeffrey K. Pinto
Geoff Willis
University of Central Oklahoma
Upper Saddle River, New Jersey 07458
Full file at http://testbank360.eu/test-bank-project-management-1st-edition-pinto

Contents
Chapter 1 Introduction: Why Project Management? 1
Chapter 2 The Organizational Context: Strategy, Structure, and Culture 23
Chapter 3 Project Selection 49
Chapter 4 Leadership and the Project Manager 76
Chapter 5 Scope Management 106
Chapter 6 Project Team Building, Conflict, and Negotiation 133
Chapter 7 Risk Management 164
Chapter 8 Cost Estimation and Budgeting 196
Chapter 9 Project Scheduling:

Networks, Duration Estimation, and Critical Path 227
Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 269
Chapter 11 Critical Chain Project Scheduling 318
Chapter 12 Resource Management 355
Chapter 13 Project Evaluation and Control 414
Chapter 14 Project Close-Out and Termination 455
Problem difficulty levels are represented as:

Diff 1 - Easy
Diff 2 - Moderate
Diff 3 - Difficult

Chapter 1
Introduction: Why Project Management?
True/False
1) Projects, rather than repetitive tasks, are now the basis for most value-added in business.
Answer: TRUE
Diff: 1
Section: Introduction
Keywords: projects, tasks, value-added
2) Projects have a process orientation.
Answer: FALSE
Diff: 2
Section: What is a Project?
Keywords: projects, tasks, value-added
3) A typical project stays within functional and organizational boundaries.
Answer: FALSE
Diff: 1
Section: General Project Characteristics
Keywords: project, functional, organizational, boundaries
4) The special nature of projects relieves project managers from their routine of planning,
organizing, motivating, directing and controlling.
Answer: FALSE
Diff: 2
Keywords: project, planning, organizing, controlling, management
5) A project exists outside of the standard line organization.
Answer: TRUE
Diff: 2
Keywords: project, line, organization, process
6) The initial goal and technical specifications of the project are developed during the planning
stage.
Answer: FALSE
Diff: 2
Section: Project Life Cycles
Keywords: project, life, cycle, stage, planning

Chapter 1 - Introduction: Why Project Management?
7) Client interest in a project is highest during the termination and conceptual phases.
Answer: TRUE
Diff: 2
Keywords: project, life, cycle, stage, conceptual, termination, client
8) The classic triple constraint standard for project performance is composed of time, cost, and
client acceptance.
Answer: FALSE
Diff: 2
Section: Determinants of Project Success
Keywords: project, time, cost, client acceptance
9) The business success dimension of project success determines whether the project achieved
significant commercial success.
Answer: TRUE
Diff: 2
Keywords: business, success, dimensions
10) The Atkinson model for assessing project success gathers input from all of the projectʹs
stakeholders.
Answer: TRUE
Diff: 2
Keywords: success, Atkinson, stakeholder
11) The use of benchmarking allows companies that are relatively immature at project
management to achieve quantum leaps of improvement.
Answer: FALSE
Diff: 2
Section: Developing Project Management Maturity
Keywords: management, maturity, benchmarking
12) Most effective project maturity models chart both a set of standards that are currently accepted
as state-of-the-art as well as a process for achieving significant movement towards these
benchmarks.
Answer: TRUE
Diff: 2
Keywords: management, maturity, standards, process

Introduction: Why Project Management? - Chapter 1
13) Acme uses no recognizable project management processes and has entertaining project
meetings because each member has a unique way of reporting progress or lack thereof. Acme
is most likely at the moderate level in the generic project management maturity model.
Answer: FALSE
Diff: 1
Keywords: management, maturity, model, moderate
14) Any organization, no matter how initially unskilled in project management, can begin to chart
a course toward the type of project organization they wish to become.
Answer: TRUE
Diff: 2
Keywords: management, maturity, model
15) A companyʹs culture has little impact on whether projects are successfully implemented.
Answer: FALSE
Diff: 1
Section: Project Elements and Text Organization
Keywords: culture, implementation
Fill in the Blank
16) A(n) ________ refers to ongoing, day-to-day activities in which an organization engages while
producing goods and services.
Answer: process
Diff: 1
Keywords: process, ongoing
17) The goals of a project are sometimes called ________.
Answer: deliverables
Diff: 2
Keywords: project, goal, deliverable
18) Projects are ________ focused.
Answer: customer
Diff: 1
Keywords: project, customer, focus

19) Project management entails crossing ________ boundaries.
Answer: functional and organizational
Diff: 2
Keywords: functional, organizational, boundaries
20) In general, product life cycles are becoming ________ and product launch windows are
becoming ________.
Answer: shorter, narrower
Diff: 1
Section: Why Are Projects Important?
Keywords: life, cycle, launch, product
21) ________ serves as an excellent training ground for future senior executives in most
organizations.
Answer: Project management
Diff: 2
Keywords: project, management, senior, executives
22) The stages in a projectʹs development are known as a(n) ________.
Answer: project life cycle
Diff: 1
Keywords: life, cycle, project
23) Detailed specifications, schematics, and schedules are all developed during the ________ stage.
Answer: planning
Diff: 2
Keywords: life, cycle, project, planning, stage
24) Creativity is at its zenith during the ________ stage of the project life cycle.
Answer: execution
Diff: 2
Keywords: life, cycle, project, execution
25) The degree of risk associated with the project is at it highest during the ________ stage.
Answer: conceptualization
Diff: 2
Keywords: life, cycle, project, conceptualization

26) The triple constraint of project success is ________.
Answer: time, cost, performance
Diff: 2
Keywords: success, time, cost, performance, triple, constraint
27) Atkinson suggests that all groups that are affected by a project, otherwise known as ________,
should have a hand assessing project success.
Answer: stakeholders
Diff: 2
Keywords: stakeholders, success, Atkinson
28) ________ are used to allow organizations to benchmark the best practices of successful project
management firms.
Answer: Project management maturity models
Diff: 2
Keywords: benchmarking, maturity, model
29) The Center for Business Practices maturity model stage that describes project management as
an ad hoc process is ________.
Answer: Level 1 or Initial Process
Diff: 2
Keywords: maturity, model, ad hoc, initial, process
30) In general, all project management maturity models agree that an organization that has
internalized all necessary project management principles and is actively seeking to move
beyond these in innovative ways is ________.
Answer: (project) mature
Diff: 2
Keywords: project, management, maturity, mature

Multiple Choice
31) Which of the following types of activities is more closely associated with projects rather than
processes?
A) an activity that is ongoing
B) an activity that is day-to-day
C) an activity that uses existing systems
D) an activity that establishes its own work rules
Answer: D
Diff: 1
Keywords: project, process
32) Which of the following is accomplished through project management?
A) A cellular phone company activates a new customerʹs service.
B) An automotive manufacturer produces a dayʹs quota of vehicles.
C) A software developer creates a new crash-proof operating system.
D) A retailer restocks the shelves after a day of brisk sales.
Answer: C
Diff: 2
33) A project typically has:
A) a defined start and end date.
B) a defined start date but no defined end date.
C) no defined start but a defined end date.
D) no defined start or end date.
Answer: A
Diff: 1
Keywords: project, start, end

34) The Project Management Body of Knowledge Guide definition of a project indicates that a
project is:
A) multifunctional.
B) temporary.
C) designed to consume human resources.
D) limited by a budget.
Answer: B
Diff: 2
Keywords: PMI, PMBoK, project, definition
35) Project members may be from:
A) different departments.
B) other organizational units.
C) one functional area.
D) all of the above.
Answer: D
Diff: 1
Keywords: team, member, department, functional area
36) There is no such thing as a project team:
A) with a deliverable.
B) with an ongoing, nonspecific purpose.
C) with a goal.
D) with a project manager.
Answer: B
Diff: 2
Keywords: deliverable, goal, purpose
37) A project that results in ʺdoing the wrong things wellʺ has ignored the:
A) budgetary goal.
B) technical goal.
C) customer satisfaction goal.
D) scheduling goal.
Answer: C
Diff: 2
Keywords: customer, satisfaction

38) Which of these is not characteristic of a project?
A) Projects are responsible for the newest and most improved products, services, and
organizational processes.
B) Projects are ad hoc endeavors with a clear life cycle.
C) Projects provide a philosophy and strategy for the management of change.
D) Traditional process management functions of planning, organizing, and controlling do
not apply to project management.
Answer: D
Diff: 2
Keywords: planning, organizing, controlling
39) Which of the following is not a project constraint?
A) the budget
B) the customer requirements
C) the schedule
D) the technical specifications
Answer: B
Diff: 2
Keywords: constraint, customer, requirements
40) Projects differ from classic organizational processes because projects are:
A) discrete activities.
B) part of line organization.
C) well established systems in place to integrate efforts.
D) multi-objective.
Answer: A
Diff: 2
Keywords: project, discrete
41) Process management features ________ with respect to project management.
A) greater heterogeneity
B) greater certainty of performance
C) greater numbers of goals and objectives
D) lower adherence to established practices
Answer: B
Diff: 2
Keywords: process, certainty

42) Studies of IT projects reveal that:
A) initial cost estimates are overrun by an average of 15%.
B) over 66% of IT projects were delivered to customers but not used.
C) about 25% of all IT projects become runaways by overshooting budgets and timetables.
D) up to 75% of software projects are cancelled.
Answer: D
Diff: 3
Keywords: success, IT, project, software
43) A business reality that makes effective project management critical is the fact that:
A) products are becoming increasingly simple.
B) inflation is rampant.
C) product life cycles are compressing.
D) product launch windows are widening.
Answer: C
Diff: 1
Keywords: product, life, cycle
44) A product is introduced into a market, gains the acceptance of a fickle public, and finally is
supplanted by a new and improved offering. This phenomenon is known as:
A) the product life cycle.
B) the rule of 80.
C) the Mendoza line.
D) the beta.
Answer: A
Diff: 1
Keywords: product, life, cycle
45) Low inflation is a trigger for improved project management skills because:
A) rampant cost increases must be passed along to the consumer.
B) internal process improvement is accomplished via project management.
C) lower inflation means narrower product launch windows.
D) global markets are a prerequisite for low inflation.
Answer: B
Diff: 1
Keywords: process, improvement, inflation

46) The technical side of project management emphasizes:
A) team building.
B) conflict management.
C) negotiation.
D) budgeting.
Answer: D
Diff: 1
Keywords: technical, budget
47) The behavioral side of project management emphasizes:
A) scheduling.
B) leadership.
C) planning.
D) project selection.
Answer: B
Diff: 1
Keywords: behavioral, leadership, people
48) Geoffcoʹs project manager names three individuals and requests a project budget of $3,000,000
for the new 8-Pod, a backpack-sized personal music player for 8-track tapes capable of
holding up to 100 songs from the 60s and 70s. This important step takes place during ________
of the project life cycle.
A) planning
B) conceptualization
C) execution
D) termination
Answer: B
Diff: 2
Keywords: life, cycle, project, conceptualization
10

49) Individual activities and their durations are developed during the:
A) planning phase of the project life cycle.
B) conceptualization phase of the project life cycle.
C) execution phase of the project life cycle.
D) termination phase of the project life cycle.
Answer: A
Diff: 2
Keywords: life, cycle, project, planning
50) Keith Monroe nails hundreds of pieces of culled lumber in the blazing July sun to form a
parquet deck for his barn roof. He and his assistant are clearly in:
A) the termination stage of the project life cycle.
B) the planning stage of the project life cycle.
C) the execution stage of the project life cycle.
D) way over their heads.
Answer: C
Diff: 1
Keywords: life, cycle, project, execution
51) The MBA redesign committee presents the results of their five-year project to their bemused
Dean. They hope it is not just wishful thinking that they are in the:
A) planning phase.
B) conceptualization phase.
C) execution phase.
D) termination phase.
Answer: D
Diff: 1
Keywords: life, cycle, project, termination
52) Client interest is typically at its lowest during the:
A) conceptualization phase.
B) planning phase.
C) execution phase.
Answer: C
Diff: 3
Keywords: life, cycle, execution, client, interest
11

53) The degree of innovation and creativity is typically at its highest during the:
B) planning phase.
C) execution phase.
Answer: C
Diff: 2
Keywords: life, cycle, execution, creativity
54) The amount of corporate investment is typically at its lowest in the:
B) planning phase.
C) execution phase.
Answer: A
Diff: 1
Keywords: life, cycle, conceptualization, investment, stake
55) The amount of corporate investment is typically at its highest in the:
B) planning phase.
C) execution phase.
Answer: D
Diff: 2
Keywords: life, cycle, termination, stake, investment
56) The degree of risk associated with the project is typically at its highest during the:
B) planning phase.
C) execution phase.
Answer: A
Diff: 1
Keywords: life, cycle, risk, uncertainty,
12

57) The technical challenges that the project has to face are typically at their lowest during the:
B) planning phase.
C) execution phase.
Answer: D
Diff: 1
Keywords: life, cycle, project, termination
58) The commitment of financial, human, and technical resources is highest during the:
B) planning phase.
C) execution phase.
Answer: C
Diff: 2
Keywords: life, cycle, execution, resources
59) The most recent addition to the four criteria of project success is:
A) time.
B) cost.
C) performance.
D) client acceptance.
Answer: D
Diff: 1
Keywords: client, acceptance, success, criteria
60) Which of the following statements about project success criteria is best?
A) Project cost is an external performance measure.
B) Completion time is an internal performance measure.
C) Client acceptance is an internal performance measure.
D) Client acceptance is often referred to as conducting a ʺqualityʺ check.
Answer: B
Diff: 2
Keywords: client, acceptance, internal, external
13

61) A design project is completed on time, under budget, to the customerʹs satisfaction and in
adherence to the technical specifications agreed. The new product takes the market by storm
and everyone associated with the project receives a coveted gold star. Under the four
dimensions of project success model, the project still needs to show:
A) future potential.
B) business success.
C) impact on the customer.
D) efficiency.
Answer: A
Diff: 2
Keywords: success, dimension, future, potential
62) The dimension of project success that is realized first is:
D) efficiency.
Answer: D
Diff: 2
Keywords: success, dimension, efficiency
63) The dimension of project success that is realized last is:
D) efficiency.
Answer: A
Diff: 2
Keywords: success, dimension, future, potential
14

64) The dimension of project success that is measured by both an internal and external criterion is:
D) efficiency.
Answer: C
Diff: 3
Keywords: success, dimension, customer, impact
65) In the Atkinson model of project success, a projectʹs impact to the surrounding community
would be classified as:
A) an element of the iron triangle.
B) a stakeholder benefit.
C) an organizational benefit.
D) a strategic goal.
Answer: B
Diff: 3
Keywords: success, Atkinson, stakeholder
66) ABC company compares the way they manage projects with the way rival NBC company
manages projects. ABC company is engaged in:
A) corporate espionage.
B) ring level 0.
C) competitive benchmarking.
D) cutting edge practices.
Answer: C
Diff: 1
Keywords: benchmarking, maturity
67) Project management maturity models are not used to:
A) compare practices against an industry standard.
B) define a systematic route for improving project management practices.
C) evaluate current project management practices.
D) ascertain all stakeholders relevant to a project in the conceptualization phase.
Answer: D
Diff: 2
Keywords: benchmarking, maturity, project, management
15

68) A spider web diagram is useful for:
A) showing company performance on a number of criteria simultaneously.
B) collecting data on how a competitor manages projects.
C) identifying industry standards for project management maturity.
D) coaching, evaluating, and auditing projects.
Answer: A
Diff: 2
Keywords: spider, web, diagram
69) The project maturity model developed by the Center for Business Practices would have
________ rings if a spider web diagram were used.
A) three
B) four
C) five
D) six
Answer: C
Diff: 2
Keywords: spider, web, diagram, maturity
70) The most basic level in Kerznerʹs project management maturity model is:
A) common language.
B) common processes.
C) initial process.
D) ad hoc.
Answer: A
Diff: 3
Keywords: Kerzner, project, management, maturity
71) Carnegie Mellonʹs SEI model, ESI Internationalʹs project framework and the Center for
Business Practices all call their highest level of maturity:
A) continuous improvement.
B) optimizing.
C) ganbei.
D) comprehensive.
Answer: B
Diff: 3
Keywords: project, management, maturity, optimizing
16

72) The authorʹs synthesis of all well-known maturity models states that moderate project
management maturity is characterized by:
A) ad hoc processes.
B) little support from upper management.
C) project management training programs.
D) active exploration of ways to improve project management.
Answer: C
Diff: 2
Keywords: management, maturity, training, moderate
73) Which statement regarding the Project Management Instituteʹs Project Management Body of
Knowledge (PMBoK) is best?
A) The PMBoK consists of seven knowledge areas of project management skills and
activities.
B) Each element of the iron triangle is represented by its own area.
C) Project risk management is part of the integration section.
D) The instituteʹs position that a properly planned project will not require any changes
precludes the need for change control in the model.
Answer: B
Diff: 2
Section: Project Elements and Text Organization
Keywords: management, body, knowledge, institute, project
Short Answer
74) What is a project?
Answer: The author offers a number of definitions, including the Project Management Instituteʹs
statement ʺa temporary endeavor undertaken to create a unique product or service.ʺ A
synthesis of the definitions offered might be that projects are customer -focused,
complex, one-time processes limited by budget, schedule and resources that are
developed to resolve a clear goal or set of goals.
Diff: 1
Keywords: project
17

75) What are key differences between projects and processes?
Answer: A process refers to ongoing, day-to-day activities in which an organization engages
while producing goods and services. Processes use existing systems, properties, and
capabilities in a continuous, fairly repetitive manner. Projects take place outside the
normal, process-oriented world of the firm and project management activities remain
unique and separate from the manner in which process-oriented work is performed.
Differences are listed in the table reproduced below.
Process Project
Repeat process of product New process or product
Several objectives One objective
Ongoing One shot  limited life
People are homogeneous More heterogeneous
Well established systems in place to Systems must be created to integrate
integrate efforts efforts
Greater certainty of performance, cost, Greater uncertainty of performance,
schedule cost, schedule
Part of line organization Outside of line organization
Bastions of established practice Violates established practice
Diff: 1
76) What roles do traditional process management duties of planning, organizing, and controlling
play in project management, if any?
Answer: The traditional managerial duties of planning, organizing, and controlling all apply to
project management. Project managers must be technically well versed, proficient at
administrative functions, willing and able to assume leadership roles, and above -all,
goal oriented. The project manager is the person most responsible for keeping track of
the big picture.
Diff: 2
Keywords: project, planning, organizing, controlling
77) Why is project management challenging?
Answer: Projects present challenges for a number of reasons; by their nature they are often
dramatic departures from the routine process-oriented work that employees are
accustomed to. Projects face budget, time, and resource constraints and these resources
must often be marshaled from across the organization.
Diff: 2
Keywords: project, management, characteristics
18

78) Why are projects important?
Answer: Todayʹs business face a set of pressures that make projects crucial in helping an
organization achieve its strategic goals. These pressures include shortened product life
cycles, narrow product launch windows, increasingly complex and technical products,
the emergence of global markets, and an economic period marked by low inflation.
Diff: 2
Keywords: project, importance, global, inflation
79) What changes in the business environment have necessitated a greater use of project
management skills?
Answer: Todayʹs business face a set of pressures that make projects crucial in helping an
organization achieve its strategic goals. These pressures include shortened product life
cycles, narrow product launch windows, increasingly complex and technical products,
the emergence of global markets, and an economic period marked by low inflation.
Diff: 2
Keywords: project, importance, global, inflation
80) Why is project management considered an excellent training ground for future senior
executives in many organizations?
Answer: One of the unique aspects of projects is their unique blend of technical and behavioral
challenges. The technical side of project management requires managers to become
skilled in project selection, budgeting and resource management, planning and
scheduling, and tracking their projects. The behavioral side of project management
requires project managers to bring together individuals from across the organization,
mold them into a team, manage conflict, provide leadership, and engage in negotiation
and appropriate political behavior.
Diff: 2
Keywords: project, training, technical, behavioral, executives
81) Describe the activities that occur at each stage of a project.
Answer: Stages in a projectʹs development are referred to as the project life cycle, which consists
of conceptualization, planning, execution, and termination. In the conceptualization
stage the scope of the work is determined, necessary resources are identified, and
important organizational stakeholders signed on. In the planning stage all detailed
specifications, schematics, schedules, and other plans are developed. Individual pieces
of the project are broken down, individual assignments are made, and the process for
completion is delineated. During the execution phase the system is developed or the
product is created and fabricated. Termination occurs when the completed project is
transferred to the customer, the projectʹs resources are reassigned, and the project is
formally closed out.
Diff: 2
Keywords: life cycle, conceptualization, planning, execution, termination
19

82) Where in the project life cycle are the intensity level of resources and client interest at their
highest? Why is this the case?
Answer: The intensity level of resources peaks during the execution phase of the project life
cycle. The actual work is performed during this phase, so the commitment of financial,
human, and technical resources peaks at this time. The level of enthusiasm or concern
expressed by the projectʹs intended customer peaks in both the conceptualization and
termination phases. The client is initially very interested because they provide input on
the goal and specifications of the project. Project work moves out of the conceptual
phase to a more internal mode and the clientʹs interest wanes until the project nears
delivery. At this point the clientʹs interest peaks again as they prepare to receive the
completed project and all the associated benefits.
Diff: 2
Keywords: life cycle, intensity, client, interest, resources
83) Rank the determinants of project success from most important to least important and justify
your rankings.
Answer: Answers with regards to ranking may vary since, for example, circumstances may
dictate that time is an overriding concern at the expense of quality and cost. The
determinants of project success are conformance to budget, schedule, performance
specifications, and client acceptance.
Time  Projects are constrained by a specified timeframe during which they must be
completed; they are not supposed to continue indefinitely.
Cost  Projects must meet budgeted allowances in order to use resources as efficiently
as possible.
Performance  Projects are developed in order to adhere to some initially determined
technical specifications. Performance measurement means determining whether the
finished product operates according to specifications.
Client acceptance  Projects are developed with customers in mind; their purpose is to
satisfy customersʹ needs. If the completed project meets all internal criteria but does not
satisfy the customer, then the project has not been a complete success.
Diff: 2
Keywords: project, success, time, cost, performance, client, acceptance
20

84) Discuss the internal and external measures of project success?
Answer: The determinants of project success are the internal measures of time, cost, and
performance and the external measure of client acceptance.
Time  Projects are constrained by a specified timeframe during which they must be
completed; they are not supposed to continue indefinitely.
Cost  Projects must meet budgeted allowances in order to use resources as efficiently
as possible.
Performance  Projects are developed in order to adhere to some initially determined
technical specifications. Performance measurement means determining whether the
finished product operates according to specifications.
Client acceptance  Projects are developed with customers in mind; their purpose is to
satisfy customersʹ needs. If the completed project meets all internal criteria but does not
satisfy the customer, then the project has not been a complete success.
Diff: 2
Keywords: project, success, time, cost, performance, client, acceptance
85) Describe the elements of the Atkinson model of project success?
Answer: The Atkinson model incorporates the input of all stakeholders in assessing project
success. Stakeholders are all groups that are affected by a project, for example,
employees, customers, end users, the community, suppliers, etc. The Atkinson model
begins with the traditional iron triangle of time, cost, and performance and adds
considerations of the benefits accrued by organizational and external stakeholders.
Diff: 2
Keywords: project, success, time, cost, performance, client, Atkinson
86) What are project management maturity models used for?
Answer: Project management maturity models are used to allow organizations to benchmark the
best practices of successful project management firms. Project maturity models
recognize that different organizations are currently at different levels of sophistication
in their best practices for managing projects.
Diff: 2
Keywords: project, management, maturity
87) Describe the spider-web methodology for displaying project management maturity and
present any five components of project management practice that can be displayed using this
technique.
Answer: A spider-web diagram (or radar chart) derives its name from its visual similarity to a
spider-web, consisting of some number of spokes connected by concentric rings. The
spokes represent the components of project management practice that the organization
chooses to measure. The rings represent levels of achievement for each of the
components.
Diff: 2
Keywords: project, management, maturity, spider-web
21

88) Describe the project management characteristics of firms that reside at the lowest levels of the
ESI, SEI, Center for Business Practice, and Kerzner maturity models and characteristics of
firms that reside at the highest levels of these models.
Answer: The lowest level of each model is occupied by companies that have no clear sense of
project management. There is no common project management language within these
companies and management processes, if any exist, are ad hoc. Firms occupying the
highest level of project management maturity are project savvy; having progressed
beyond simply applying project management to processes. These firms actively explore
ways to continuously improve project management techniques and procedures.
Diff: 3
Keywords: project, management, maturity, level, Kerzner, ESI, SEI
22

Chapter 2
The Organizational Context:
Strategy, Structure, and Culture
True/False
1) The same project managed in the same fashion may succeed in one organization but fail in
another.
Answer: TRUE
Diff: 2
Keywords: organization, project
2) Most companies are well suited to allow for successful completion of projects in conjunction
with other ongoing corporate activities.
Answer: FALSE
Diff: 2
3) Developing vision and mission statements is an important tactical step in project management.
Answer: FALSE
Diff: 2
Section: Projects and Organizational Strategy
Keywords: vision, mission
4) One element of strategic management is cross-functional decision-making.
Answer: TRUE
Diff: 2
Keywords: strategic, management, functional
5) Strategy, goals and programs support the organizational mission.
Answer: TRUE
Diff: 2
Keywords: strategy, goal, program, mission
6) Stakeholder analysis looks at a projectʹs customers and determines whether their needs are
being met.
Answer: FALSE
Diff: 2
Section: Stakeholder Management
Keywords: stakeholder, analysis
23

Chapter 2 - The Organizational Context: Strategy, Structure, and Culture
7) Suppliers and competitors are possible intervenor groups in a project.
Answer: TRUE
Diff: 2
Keywords: intervenor, stakeholder
8) An important step in stakeholder management is the assessment of your own capabilities.
Answer: TRUE
Diff: 2
Keywords: capability, assessment, stakeholder, management
9) Policies and procedures are examples of an organizationʹs external environment.
Answer: FALSE
Diff: 2
Section: Forms of Organization Structure
Keywords: external, environment, policy, procedure
10) A project organization does not have functional departments.
Answer: FALSE
Diff: 2
Keywords: project, organization, functional
11) A Project Management Office is designed to oversee or improve the management of projects
without stripping responsibility from the project manager.
Answer: TRUE
Diff: 2
Section: Project Management Offices
Keywords: project, management, office, PMO
12) Organizational culture can be influenced in a variety of ways, including by reward systems
and key organizational members.
Answer: TRUE
Diff: 2
Section: Organizational Culture
Keywords: organization, culture, reward
Fill in the Blank
13) ________ designates formal reporting relationships, including the number of levels in the
hierarchy and the span of control of managers and supervisors.
Answer: Organization structure
Diff: 2
Section: Organizational Structure
Keywords: organization, structure, span, hierarchy
24

The Organizational Context: Strategy, Structure, and Culture - Chapter 2
14) ________ is the term for the tendency for employees to become fixated on their concerns and
work assignments to the exclusion of the needs of other departments.
Answer: Functional siloing
Diff: 2
15) Functional departments maintain control over their resources and are responsible for
managing their components of the project in a(n) ________.
Answer: weak matrix
Diff: 2
Keywords: organization, functional, department
16) The ________ form of the project management office has the goal of maintaining and
providing trained and skilled project professionals as they are needed.
Answer: resource pool
Diff: 2
Section: Project Management Offices
Keywords: organization, project, management, office, PMO, resource, pool
Multiple Choice
17) 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
Answer: D
Diff: 1
Keywords: strategic, management, cross-functional
18) The highest priority among strategic choice elements is:
A) objective.
B) strategy.
C) mission.
D) goal.
Answer: C
Diff: 2
Keywords: strategic, management, mission
25

19) Which of these strategic elements exists at a higher level than the others?
A) Programs
B) Objectives
C) Goals
D) Strategies
Answer: B
Diff: 2
Keywords: strategic, management, elements, objectives
20) A strategic element consisting of statements such as ʺa 5% increase in freshman to sophomore
retention,ʺ and ʺa 10% increase in the six-year graduation rate,ʺ is best described as a:
A) goal.
B) program
C) strategy.
D) mission.
Answer: A
Diff: 3
Keywords: strategic, element, goal
21) 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.
Answer: D
Diff: 2
Keywords: strategic, element, program
26

The Organizational Context: Strategy, Structure, and Culture - Chapter 2
22) 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) project leaders.
B) project workers.
C) stakeholders.
D) clients.
Answer: C
Diff: 2
Keywords: stakeholder
23) 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.
Answer: B
Diff: 2
Keywords: stakeholder
24) External stakeholders that are external to a project but possess the power to effectively disrupt
the projectʹs development are:
A) intervenor groups.
B) environmental groups.
C) stressor groups.
D) special-interest groups.
Answer: A
Diff: 2
Keywords: stakeholder, intervenor, group
27

25) Which of the following statements about clients is best?
A) Client refers to the entire customer organization.
B) Clients are 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.
Answer: B
Diff: 2
Keywords: client, group
26) Which of the following is an internal project stakeholder group?
A) clients
B) suppliers
C) functional managers
D) competitors
Answer: C
Diff: 2
Keywords: stakeholder, internal
27) Which of the following is an external stakeholder group?
A) project team members
B) top management
C) accountant
D) environmental groups
Answer: D
Diff: 1
Keywords: stakeholder, external
28) 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.
Answer: A
Diff: 1
Keywords: stakeholder, suppliers, materials
28

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Upper Saddle River, New Jersey 07458

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Chapter 2 The Organizational Context: Strategy, Structure, and Culture 23

Chapter 3 Project Selection 49

Chapter 4 Leadership and the Project Manager 76

Chapter 5 Scope Management 106

Chapter 6 Project Team Building, Conflict, and Negotiation 133

Chapter 7 Risk Management 164

Chapter 8 Cost Estimation and Budgeting 196

Chapter 9 Project Scheduling:

Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 269

Chapter 11 Critical Chain Project Scheduling 318

Chapter 12 Resource Management 355

Chapter 13 Project Evaluation and Control 414

Chapter 14 Project Close-Out and Termination 455

Problem difficulty levels are represented as:

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