Chapter 11 Project Organizational Structures
11.1 True False
1) Project and organizational strategies have to be aligned for projects to succeed.
Answer: True
Rationale:
When project strategies align with organizational strategies, it ensures that the project is in
line with the overall goals and objectives of the organization. This alignment helps in better
resource allocation, risk management, and overall project success.
2) Based on Fayol's principles, specialization says that each and every organizational
employee should have one supervisor.
Answer: False
Rationale:
Fayol's principle of specialization suggests that work should be divided among individuals
and groups to ensure that tasks are done by the most qualified people. It does not specify that
each employee should have only one supervisor.
3) Decentralized organizations have uniformity of policies, practices, and procedures and
usually use area experts better.
Answer: False
Rationale:
Decentralized organizations allow for more autonomy at lower levels of the organization,
which can lead to variations in policies, practices, and procedures across different
departments or units. While they may utilize area experts effectively, uniformity is not a
characteristic associated with decentralization.
4) Responsibility is an employee's duty to perform assigned tasks or activities.
Answer: True
Rationale:
Responsibility refers to the obligation of an individual to perform tasks or activities assigned
to them. It is a key component of organizational roles and accountability.
5) Decentralized is one of the five major organizational structures.
Answer: False
Rationale:
Decentralization is a concept related to the distribution of authority and decision-making
within an organization. It is not one of the five major organizational structures, which
typically include functional, divisional, matrix, network, and hybrid structures.
6) When functions work together on projects, there is a single central authority.
Answer: False
Rationale:
In project-based organizations or project teams, functions may work together on projects, but
there is not necessarily a single central authority. Project teams often operate under a matrix
structure where authority is shared between functional managers and project managers.
7) A disadvantage of the functional structure is that the barriers due to differences in goals
and processes between functions can prevent functions from working together on projects.
Answer: True
Rationale:
The functional structure organizes employees based on their specialized skills or functions,
which can create silos within the organization. These silos can lead to barriers between
functions, making it challenging for them to collaborate effectively on projects.
8) The matrix structure is an organizational structure where employees are grouped according
to products, projects, customers, or geographic functions.
Answer: False
Rationale:
The matrix structure is an organizational structure where employees report to both a
functional manager (based on their specialized area) and a project manager (based on the
project they are working on). Employees are not grouped according to products, projects,
customers, or geographic functions in the matrix structure.
9) If projects demand better services for different types of markets, the department structure
will work well.
Answer: True
Rationale:
The departmental structure organizes employees based on their functions or departments,
which can be beneficial when projects require specialized services for different markets. Each
department can focus on its specific market needs, ensuring better service delivery.
10) In a weak matrix, the functional manager has a very small role and authority.
Answer: False
Rationale:
In a weak matrix structure, the project manager has limited authority and the functional
manager retains more control over resources and decision-making. The functional manager's
role and authority are typically stronger in a weak matrix compared to a strong matrix or
balanced matrix structure.
11) In a balanced matrix, the project manager assumes a full management role, authority, and
accountability.
Answer: False
Rationale:
In a balanced matrix structure, authority, roles, and responsibilities are shared between the
functional manager and the project manager. The project manager does not assume full
management authority and accountability but shares it with the functional manager.
12) In a strong matrix, the project managers have more influence over their project team
members than in the balanced or weak matrix structures.
Answer: True
Rationale:
In a strong matrix structure, the project manager has more authority and influence over
project team members compared to the balanced or weak matrix structures, where authority is
more balanced between the project manager and functional manager.
13) An advantage of the matrix structure is that the decision-making process becomes
simplified due to authority.
Answer: True
Rationale:
In a matrix structure, decision-making can be more streamlined because the project manager
has the authority to make decisions regarding the project, while the functional manager has
authority over functional aspects. This can lead to quicker and more efficient decisionmaking.
14) Duplication of efforts may arise if communication fails between projects is a
disadvantage of the matrix structure.
Answer: True
Rationale:
In a matrix structure, where employees often report to both a functional manager and a
project manager, communication is key. If communication fails between projects, there is a
risk of duplication of efforts as employees may not be aware of what others are working on,
leading to inefficiencies.
15) The flat organizational model promotes the involvement of employees through a
decentralized decision-making process.
Answer: True
Rationale:
In a flat organizational model, there are fewer levels of hierarchy, which promotes a
decentralized decision-making process. This allows for greater involvement of employees in
decision-making, as decisions can be made closer to the front lines where employees have
more direct knowledge and expertise.
16) More advancement potential for employees is a significant advantage of the flat structure.
Answer: False
Rationale:
While the flat structure can promote a more egalitarian and inclusive environment, it does not
necessarily provide more advancement potential for employees. Advancement opportunities
depend on various factors, including the organization's policies and practices.
17) Dell and Amazon are examples of virtual organizations.
Answer: True
Rationale:
Dell and Amazon are examples of virtual organizations, which operate primarily or entirely
through digital platforms and often have a decentralized workforce that may work remotely
or in various locations.
18) Participating partners learning about each other's technology, data, and trade secrets is an
advantage of the virtual structure.
Answer: False
Rationale:
While virtual organizations can facilitate collaboration between partners, the sharing of
technology, data, and trade secrets may be a concern. Security and confidentiality issues can
arise in virtual environments, making it important to have robust measures in place to protect
sensitive information.
19) Deliberate projects are unplanned projects that bring about new changes in an
organization.
Answer: False
Rationale:
Deliberate projects are planned projects that are undertaken to achieve specific goals or
objectives. They are typically part of an organization's strategic plan and are carefully
planned and executed.
20) An organization's strategy does not need to be linked with its portfolio of projects.
Answer: False
Rationale:
An organization's strategy should be closely linked to its portfolio of projects. Projects should
be aligned with the organization's overall goals and objectives to ensure that resources are
allocated effectively and that the organization is moving in the right direction.
21) With the differentiation strategy, organizations position themselves to be unique in some
attributes that are perceived to be important to their consumers.
Answer: True
Rationale:
The differentiation strategy involves offering unique products, services, or features that are
distinct and valued by consumers. This strategy aims to create a competitive advantage by
making the organization stand out from competitors.
22) Every project, regardless of its size or complexity, needs to have an organizational
structure.
Answer: True
Rationale:
Organizational structure provides the framework for how a project is planned, executed, and
controlled. It defines roles, responsibilities, communication channels, and decision-making
processes, which are essential for any project, irrespective of its size or complexity.
23) One of the functions of the PMO is to standardize and maintain prior project knowledge
that can be used effectively in the execution of current and future projects.
Answer: True
Rationale:
The Project Management Office (PMO) is responsible for standardizing project management
practices, which includes capturing and maintaining prior project knowledge. This knowledge
can be valuable in ensuring consistency, efficiency, and effectiveness in managing current
and future projects.
24) Mentoring project managers is a function of the PMO.
Answer: True
Rationale:
Mentoring project managers is a common function of the PMO, as it helps in developing the
skills and capabilities of project managers. Mentoring can provide guidance, support, and
knowledge transfer from experienced project managers to less experienced ones, improving
overall project management performance.
25) The encourager role mediates the differences between team members.
Answer: False
Rationale:
The encourager role in team dynamics involves offering support, praise, and positive
reinforcement to team members. It does not specifically mediate differences between team
members, which is more characteristic of a mediator or facilitator role.
26) The harmonizer offers to change position for the good of the group.
Answer: False
Rationale:
The harmonizer role in team dynamics involves maintaining peace and harmony within the
group. It does not necessarily involve changing one's position for the good of the group,
which is more aligned with a compromiser role.
27) The self-confessor deflates the status of others by making personal attacks using belittling
and insulting comments.
Answer: False
Rationale:
The self-confessor role in team dynamics involves sharing personal thoughts, feelings, or
experiences with the group. It does not involve making personal attacks or belittling others,
which would be counterproductive to team dynamics.
28) The dominator makes a display of his or her lack of involvement in the project.
Answer: False
Rationale:
The dominator role in team dynamics involves asserting control or authority over others in a
group. It does not typically involve displaying a lack of involvement in the project, as
dominators often seek to exert influence or control over the group's activities.
29) Regarding knowledge transfer, relational dimension factors include trust and
collaboration among virtual and global project team members.
Answer: True
Rationale:
The relational dimension of knowledge transfer in projects refers to the social aspects of
knowledge sharing, such as trust, collaboration, and relationships among team members.
These factors are critical in facilitating effective knowledge transfer, especially in virtual and
global project teams where face-to-face interaction may be limited.
30) Regarding knowledge transfer, the cognitive dimension can be defined as the resources
that provide the learning aspect in projects, shared goals, and the shared culture to enable the
project team members to achieve their tasks and deliver project outcomes.
Answer: True
Rationale:
The cognitive dimension of knowledge transfer in projects refers to the cognitive resources,
such as shared goals, shared culture, and learning mechanisms, that enable project team
members to acquire, share, and apply knowledge effectively. These resources play a crucial
role in enhancing project performance and outcomes.
11.2 Multiple Choice
1) Which of the following refers to how various tasks are divided, resources are deployed,
and departments are coordinated in an organization?
A) organizational structure
B) deployment chart
C) organizational decomposition
D) organizational alignment
Answer: A
Rationale:
Organizational structure defines how tasks are divided, resources are deployed, and
departments are coordinated within an organization. It provides a framework for the
hierarchy, roles, responsibilities, and communication channels.
2) A manager's right to make decisions, issue orders, and allocate resources best defines
A) responsibility.
B) authority.
C) accountability.
D) reliability.
Answer: B
Rationale:
Authority is the power given to a manager to make decisions, issue orders, and allocate
resources within an organization. It is a key aspect of managerial roles and responsibilities.
3) An obligation to work on the success of a project with or without guidance or authorization
best defines
A) authority.
B) accountability.
C) responsibility.
D) reliability.
Answer: C
Rationale:
Responsibility is the obligation to perform assigned tasks or activities, including working
towards the success of a project. It includes taking action, seeking guidance when needed,
and completing tasks diligently.
4) The extent to which an individual or project team is answerable to the project stakeholders
and provides visible evidence of actions best defines
A) reliability.
B) authority.
C) responsibility.
D) accountability.
Answer: D
Rationale:
Accountability is the extent to which an individual or project team is answerable to project
stakeholders for their actions and decisions. It involves providing visible evidence of actions
taken and outcomes achieved.
5) The degree to which a project team member can be depended on to ensure the success of
the project with a sound and consistent effort best defines
A) reliability.
B) flexibility.
C) accountability.
D) responsibility.
Answer: A
Rationale:
Reliability refers to the degree to which a project team member can be depended on to ensure
the success of the project with a sound and consistent effort. It involves being dependable and
consistent in meeting commitments.
6) An organization can be classified as
A) a functional structure.
B) a departmental structure.
C) a matrix structure.
D) all of the above.
Answer: D
Rationale:
An organization can be classified into different types of structures, including functional,
departmental, and matrix structures, based on how it organizes its employees, tasks, and
resources.
7) An organizational structure where employees are grouped according to their specialties
best defines
A) functional structure.
B) matrix structure.
C) departmental structure.
D) virtual structure.
Answer: A
Rationale:
A functional structure is an organizational structure where employees are grouped according
to their specialties or functional areas, such as marketing, finance, or operations.
8) Advantages of the functional structure include each of the following except
A) functional team members work in groups according to their functional specialties.
B) authority and responsibility are well established.
C) career advancement for functional team members within the functional area is possible
when they show improved morale and productivity.
D) duplication of effort is avoided due to the coordinated mechanisms in place.
Answer: B
Rationale:
The statement in option B is incorrect. While authority and responsibility are well-established
in a functional structure, career advancement within the functional area is not the only
possibility; employees can also advance to other areas in some cases.
9) An organizational structure where employees are grouped according to products, projects,
customers, or geographic locations best defines
A) virtual structure.
B) matrix structure.
C) department structure.
D) functional structure.
Answer: C
Rationale:
A departmental structure is an organizational structure where employees are grouped
according to products, projects, customers, or geographic locations. Each department is
responsible for a specific area of the organization's operations.
10) Advantages of department structure include
A) due to their focus and close proximity to issues, project teams have better understanding
of specific needs.
B) authority, communication, and control are better in these types of organizations.
C) unprofitable products or projects can be easily recognized and eliminated.
D) all of the above.
Answer: D
Rationale:
The advantages listed in options A, B, and C are all associated with departmental structure.
Project teams in departmental structures often have a better understanding of specific needs,
and the structure can facilitate better authority, communication, and control. Additionally,
unprofitable products or projects can be more easily identified and managed in this type of
structure.
11) Disadvantages of the department structure include each of the following except
A) inability to respond quickly to changes that affect product, customer, or location.
B) duplication of efforts and therefore increases in cost.
C) instability for employees if projects are terminated.
D) lack of opportunities to share new advances and technology between groups.
Answer: A
Rationale:
The departmental structure typically allows for quick responses to changes affecting
products, customers, or locations because each department focuses on a specific area and can
adapt its operations accordingly.
12) An integrated organizational structure where teams are composed of employees from
various specialized groups best defines
A) functional structure.
B) matrix structure.
C) flat structure.
D) virtual structure.
Answer: B
Rationale:
The matrix structure is an integrated organizational structure where teams are composed of
employees from various specialized groups. This structure allows for cross-functional
collaboration and resource sharing.
13) The matrix structure can be categorized as each of the following except
A) weak.
B) balanced.
C) flexible.
D) strong.
Answer: C
Rationale:
The matrix structure can be categorized as weak, balanced, or strong based on the balance of
power between the project manager and functional manager. Flexibility is a characteristic of
the matrix structure, not a categorization.
14) A project manager has a very small role or authority in the
A) balanced matrix.
B) strong matrix.
C) flexible matrix.
D) weak matrix.
Answer: D
Rationale:
In a weak matrix structure, the project manager has a very small role or authority, as the
functional manager retains more control over resources and decision-making.
15) A project manager has little formal authority and may provide some input to performance
reviews in the
A) balanced matrix.
B) weak matrix.
C) star matrix.
D) strong matrix.
Answer: A
Rationale:
In a balanced matrix structure, the project manager has limited formal authority and may
provide some input to performance reviews, but the functional manager retains more control
over resources and decision-making.
16) The project manager has a full-time job as a project manager, formal authority, full
accountability, and responsibility in the
A) star matrix.
B) strong matrix.
C) weak matrix.
D) balanced matrix.
Answer: B
Rationale:
In a strong matrix structure, the project manager has a full-time role as a project manager,
formal authority, full accountability, and responsibility for the project.
17) Advantages of the matrix structure include
A) project managers can maintain maximum project control and authority with the help of
functional managers over their team members and cost.
B) budgeting and staffing for projects become easy to create and manage.
C) the decision-making process becomes simplified due to authority.
D) all of the above.
Answer: D
Rationale:
The advantages listed in options A, B, and C are all associated with the matrix structure.
Project managers can maintain control and authority with the help of functional managers,
budgeting and staffing can be easier, and decision-making can be more streamlined.
18) Disadvantages of the matrix structure include each of the following except
A) employees reporting to dual supervisors may run into potential conflict during allocation
to projects and evaluation.
B) employees may experience conflicting reporting relationships with dual supervisors.
C) processes cannot be tailored for individual projects.
D) shifting team members from one project to another may hinder their growth and
development to their specialized areas.
Answer: C
Rationale:
Processes can be tailored for individual projects in a matrix structure. The other options
represent valid disadvantages of the matrix structure, such as potential conflicts, conflicting
reporting relationships, and hindered growth and development for team members.
19) An integrated organizational structure that has few or no levels of intervening
management best defines
A) flat structure.
B) functional structure.
C) virtual structure.
D) matrix structure.
Answer: A
Rationale:
A flat structure is characterized by few or no levels of intervening management between staff
and executives. This structure is often associated with quick decision-making and a more
streamlined communication flow.
20) Advantages of the flat structure include
A) the decision process includes all members of the team, which builds employee morale.
B) eliminating layers of middle management makes it possible for employee comments and
feedback.
C) customer feedback reaches all levels of the organization.
D) all of the above.
Answer: D
Rationale:
The advantages listed in options A, B, and C are all associated with the flat structure. In a flat
structure, the decision-making process often includes all team members, which can build
morale. Removing layers of middle management can also facilitate better employee feedback
and communication, and customer feedback can reach all levels of the organization more
easily.
21) A temporary organizational structure where people come together for a specific business
purpose or project and then disassemble when the purpose or project is completed best
defines
A) flat structure.
B) virtual structure.
C) functional structure.
D) matrix structure.
Answer: B
Rationale:
A virtual structure is a temporary organizational structure where individuals from different
locations or organizations come together for a specific project or purpose. Once the project is
completed, the virtual structure dissolves.
22) Disadvantages of the virtual structure include
A) participating partners may come to know each other's technology, data, and some trade
secrets.
B) differences in corporate cultures of participating companies can become obstacles.
C) it requires unique leadership and managerial skills.
D) all of the above.
Answer: D
Rationale:
The disadvantages listed in options A, B, and C are all associated with virtual structures.
Participating partners may gain knowledge of each other's technology and trade secrets,
differences in corporate cultures can create challenges, and effective leadership and
managerial skills are necessary to manage virtual teams.
23) Strategies to achieve a sustainable competitive advantage include each of the following
except
A) cost leadership.
B) cost/differentiation.
C) disaggregation.
D) differentiation.
Answer: C
Rationale:
Disaggregation is not typically considered a strategy to achieve sustainable competitive
advantage. The other options, such as cost leadership, cost/differentiation, and differentiation,
are commonly recognized strategies.
24) Which of the following is the department or group that defines and maintains the
standards of the process related to project management within the organization?
A) IT Product Office
B) Accounting
C) Human Resources
D) Project Management Office
Answer: D
Rationale:
The Project Management Office (PMO) is the department or group within an organization
that defines and maintains standards related to project management processes.
25) Each of the following is a PMO competency continuum stage except
A) designated PMO.
B) Center of Excellence.
C) advanced PMO.
D) standard PMO.
Answer: A
Rationale:
The designated PMO is not typically recognized as a stage in the PMO competency
continuum. The other options, such as Center of Excellence, advanced PMO, and standard
PMO, represent different stages of PMO competency.
26) Which of the following PMO competency continuum stages is a simple unit of project
organization?
A) PMO
B) project office
C) advanced PMO
D) Center of Excellence
Answer: B
Rationale:
The project office is a simple unit of project organization within the PMO competency
continuum. It typically focuses on providing support and services for individual projects.
27) Which of the following PMO competency continuum stages provides a forum to host and
control multiple projects with multiple project managers?
A) PMO
B) project office
C) advanced PMO
D) Center of Excellence
Answer: A
Rationale:
The PMO provides a forum to host and control multiple projects with multiple project
managers. It is responsible for overseeing project management activities across the
organization.
28) Which of the following PMO competency continuum stages can be a separate business
unit within an organization and has the responsibility for enterprise-wide project management
activities?
A) PMO
B) project office
C) advanced PMO
D) Center of Excellence
Answer: D
Rationale:
The Center of Excellence is a separate business unit within an organization that has the
responsibility for enterprise-wide project management activities. It focuses on developing
best practices, standards, and methodologies for project management.
29) Which of the following roles suggests or proposes original ideas or different ways of
approaching team problems or project goals?
A) initiator-contributor
B) opinion seeker
C) elaborator
D) energizer
Answer: A
Rationale:
The initiator-contributor role in team dynamics involves suggesting or proposing original
ideas or different approaches to team problems or project goals. This role helps stimulate
creativity and innovation within the team.
30) Which of the following roles asks for clarification of the values pertinent to what the
team is undertaking or of values involved in a suggestion?
A) initiator-contributor
B) opinion seeker
C) elaborator
D) energizer
Answer: B
Rationale:
The opinion seeker role in team dynamics involves asking for clarification of values relevant
to the team's tasks or suggestions. This role helps ensure that team members have a clear
understanding of the values underlying their work.
31) Which of the following roles spells out suggestions using examples?
A) initiator-contributor
B) opinion seeker
C) elaborator
D) energizer
Answer: C
Rationale:
The elaborator role in group dynamics involves expanding on suggestions or ideas by
providing examples or further explanation. This helps clarify and develop ideas within the
group.
32) Which of the following roles concentrates the group's energy on forward movement?
A) initiator-contributor
B) opinion seeker
C) elaborator
D) energizer
Answer: D
Rationale:
The energizer role in group dynamics focuses on motivating and energizing the group to
move forward and make progress. This role helps maintain momentum and enthusiasm
within the group.
33) Which of the following roles requests clarification of comments in terms of their factual
adequacy?
A) information seeker
B) opinion giver
C) orienteer
D) recorder
Answer: A
Rationale:
The information seeker role in group dynamics involves asking for clarification or additional
information to ensure that comments or statements are factually accurate. This role helps
improve understanding and decision-making within the group.
34) Which of the following roles states his/her belief pertinently to a suggestion or the subject
being discussed?
A) information seeker
B) opinion giver
C) orienteer
D) recorder
Answer: B
Rationale:
The opinion giver role in group dynamics involves expressing one's beliefs or opinions
relevant to a suggestion or topic being discussed. This role helps bring different perspectives
and viewpoints to the discussion.
35) Which of the following roles defines and clarifies the team's position on project tasks and
project-related issues?
A) information seeker
B) opinion giver
C) orienteer
D) recorder
Answer: C
Rationale:
The orienteer role in group dynamics involves defining and clarifying the team's position on
project tasks and issues. This role helps keep the team focused and aligned with project goals.
36) Which of the following roles acts as the secretary or minute-keeper?
A) information seeker
B) opinion giver
C) orienteer
D) recorder
Answer: D
Rationale:
The recorder role in group dynamics involves keeping records of discussions, decisions, and
action items. This role helps ensure that important information is captured and can be referred
back to as needed.
37) Which of the following group building and maintenance roles expresses standards to be
applied in evaluating the quality of team process?
A) standard setter
B) gatekeeper-expediter
C) follower
D) blocker
Answer: A
Rationale:
The standard setter role in group dynamics involves expressing standards or criteria to be
applied in evaluating the quality of the team's process. This role helps maintain high
standards and accountability within the group.
38) Which of the following group building and maintenance roles attempts to regulate the
flow of communication?
A) standard setter
B) gatekeeper-expediter
C) follower
D) blocker
Answer: B
Rationale:
The gatekeeper-expediter role in group dynamics involves regulating the flow of
communication within the group. This role helps ensure that all members have a chance to
contribute and that communication remains effective and efficient.
39) Which of the following group building and maintenance roles goes along with the team
more or less passively?
A) standard setter
B) gatekeeper-expediter
C) follower
D) blocker
Answer: C
Rationale:
The follower role in group dynamics involves going along with the team's decisions and
actions without actively contributing new ideas or opinions. This role helps maintain
harmony within the group but may also limit innovation.
40) Which of the following group building and maintenance roles tends to be negative,
opposes every idea or opinion without or beyond reason that is put forward, yet refuses to
make own suggestions?
A) standard setter
B) gatekeeper-expediter
C) follower
D) blocker
Answer: D
Rationale:
The blocker role in group dynamics involves being negative and opposing ideas or opinions
without reasonable justification. This role can hinder progress and decision-making within
the group.
41) The project lifespan stage where team members come together for a purpose best
describes
A) forming.
B) storming.
C) norming.
D) performing.
Answer: A
Rationale:
The forming stage is the initial stage of team development where team members come
together, get to know each other, and start to understand the project's purpose and goals. This
stage is characterized by orientation and exploration.
42) The project lifespan stage that kicks in after the team starts working together best
describes
A) forming.
B) storming.
C) norming.
D) performing.
Answer: B
Rationale:
The storming stage occurs after the forming stage, where conflicts and disagreements may
arise as team members begin to work together. This stage is characterized by competition and
resistance to group influence.
43) The project lifespan stage where team members agree and start cooperating with some
preconceived notions best describes
A) forming.
B) storming.
C) norming.
D) performing.
Answer: C
Rationale:
The norming stage is when team members begin to establish norms or standards of behavior
and agree on how they will work together. This stage is characterized by cohesion and
cooperation.
44) The project lifespan stage where team members have built strong relationships and trust
each other best describes
A) forming.
B) storming.
C) norming.
D) performing.
Answer: D
Rationale:
The performing stage is when team members have built strong relationships, trust each other,
and are able to work together effectively to achieve project goals. This stage is characterized
by high performance and productivity.
45) Benefits of virtual and global teams include
A) facilitate flexibility or agility in projects.
B) increase speed and therefore shorten schedules.
C) leverage expertise from dispersed knowledge workers.
D) all of the above.
Answer: D
Rationale:
Virtual and global teams can facilitate flexibility and agility in projects by allowing team
members to work from different locations and time zones. They can also increase speed and
shorten schedules by leveraging expertise from dispersed knowledge workers around the
world.
11.3 Essay
1) Organizations can be classified into five major structures. Identify and define these
structures.
Answer: Functional, departmental, matrix, flat, and virtual are the five structures. The
functional structure groups employees according to their specialties. The departmental
structure groups employees according to products, projects, customers, or geographic
locations. The matrix structure consists of teams composed of employees from various
specialized groups. The flat structure has few or no levels of intervening management. The
virtual structure is a temporary organizational structure where people come together for a
specific business purpose or project and then disassemble when the purpose or project is
completed.
2) Under what conditions will the department structure work well?
Answer: The department structure works well if organizations require projects that are based
on a particular product or service; if in an organizational project, specialized knowledge is
needed; if projects demand better services for different types of markets; and for global
organizations to provide better service to their customers.
3) Identify the eight main areas in which a PMO is expected to function.
Answer: The areas are project support, project management process/methodology, training,
home for project managers, internal consulting and mentoring, project management software
tools, portfolio management, and project control.
4) Describe four ways that knowledge transfer occurs in virtual and global teams.
Answer: Structural, cognitive, relational, and technical are the dimensions in which
knowledge transfer occurs. The structural dimension can be defined as the pattern of
relationships between project team members and includes time, configuration, stability,
informality, and management of project teams. The cognitive dimension can be defined as the
resources that provide the learning aspect in projects, shared goals, and the shared culture to
enable the project team members to achieve their tasks and deliver project outcomes. The
relational dimension factors include trust and collaboration among virtual and global project
team members. Technology and project management software play important roles in all
aspects of knowledge transfer.
5) Identify nine reasons organizations outsource projects.
Answer: Reasons include cost savings, lack of knowledge, improve performance, access to
talent, reduce time to market, risk transfer, focus on core business, faster completion, and
overall flexibility.
Test Bank for Project Management: Process, Technology and Practice
Ganesh Vaidyanathan
9780132807180
