2. Forms of organisational structure

Question 1

What is the main role of the functional manager?
a. To control resources
b. To manage the project when the project manager
isn’t available
c. To define business processes
d. To manage the project manager

Answer 1

a—The functional manager runs the day-to-day

operations of his department and controls the resources

Question 2

What is the typical role of senior management on a project?
a. Support the project
b. Pay for it
c. Support the project and resolve resource and other
conflicts
d. Resolve resource and other conflicts

Answer 2

c—Because senior managers usually outrank the project

manager, they can help with resolving any resource or other conflicts as they arise

Question 3

What is an organization that controls project managers,
documentation, and policies called?
a. Project management office
b. Strong matrix
c. Functional
d. Pure project

Answer 3

a - The project management office

(PMO) typically has all of these responsibilities

Question 4

A business analyst has a career path that has been very
important to her throughout the 10 years of her career.
She is put on a project with a strong matrix organizational
structure. Which of the following is likely viewed
as a negative of being on the project?
(a). Being away from the group and on a project that
might make it more difficult to get promoted
(b). Working with people who have similar skills
(c). Working long hours because the project is a high
priority
(d). Not being able to take her own certification tests
because she is so busy

Answer 4

a - Being away from her functional group may cause her to feel that her efforts on behalf of the project are not being recognized by her functional manager since the project employs a strong matrix structure

Question 5

The functional manager is planning the billing system
replacement project with the newest project manager at
the company. In discussing this project, the functional
manager focuses on the cost associated with running
the system after it is created and the number of years the
system will last before it must be replaced. What best
describes what the functional manager is focusing on?
a. Project life cycle
b. Product life cycle
c. Project management life cycle
d. Program management life cycle

Answer 5

b - The functional manager is focusing on the product life cycle, which is developed based on an example of a successful project and encompasses the range of use for the product.

Question 6

What are the forms of organizational structures?

Answer 6

1. Functional organizations
2. Project organizations
3. Matrix organizations

Question 7

What does the term ‘Siloing’ mean?

Answer 7

When similar people in a workgroup are unwilling or unable to consider alternative viewpoints, collaborate with other groups or work in cross-functional ways.

Question 8

What are the strengths of Functional structures for project management?

Answer 8

1. Projects are developed within the basic functional structure of the organization, requiring no disruption or change to the firm’s design
2. Enables the development of in-depth knowledge and intellectual capital.
3. Allows for standard career depths.

Question 9

What are the weaknesses of Functional structures for project management?

Answer 9

1. Functional siloing makes it difficult to achieve cross-functional cooperation.
2. Lack of customer focus.
3. Projects generally take longer to complete due to structural problems, slower communication, lack of direct ownership of the project, and competing priorities among the functional departments.
4. Projects may be sub-optimized due to varying interest or commitment across functional boundaries.

Question 10

What is a functional organization?

Answer 10

Companies structured by grouping people performing similar activities into departments.

Question 11

What is a project organization?

Answer 11

Companies structured by grouping people into project teams on temporary assignments.

Question 12

What is a matrix organization?

Answer 12

Companies structured by creating a dual hierarchy in which functions and projects have equal prominence.

Question 13

What is strategic management?

Answer 13

The science of formulating, implementing and evaluating, cross-functional decisions that enable an organization to achieve its objectives.

Question 14

What is the tool ‘Stakeholder Analysis’ used for?

Answer 14

Stakeholder Analysis is a useful tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation and introduction of new projects.

Question 15

What are Project Stakeholders?

Answer 15

Project Stakeholders are defined as all individuals or groups
who have an active stake in the project and can potentially impact, either positively or negatively, its development.

Question 16

What are the three key elements of organizational structure?

Answer 16

1. Designates formal reporting relationships
2. Identifies groupings of: individuals into departments
   and departments into the total organization
3. Design of systems to ensure, effective communication, coordination, integration across departments

Question 17

What are the strengths of Project structures for project management?

Answer 17

1. Assigns authority solely to the project manager
2. Leads to Improved communication across the organization and among functional groups.
3. Promotes Effective and speedy decision-making
4. Promotes the Creation of project management experts
5. Enncourages Rapid response to market opportunities

Question 18

What are the weaknesses of Project structures for project management?

Answer 18

1. Expensive to set up and maintain teams
2. Chance of loyalty to the project rather than the firm
3. Difficult to maintain a pooled supply of intellectual capital
4. Team member concern about future once project ends

Question 19

What are the strengths of Matrix structures for project management?

Answer 19

1. Suited to dynamic environments
2. Equal emphasis on project management and functional efficiency
3. Promotes coordination across functional units
4. Maximizes scarce resources

Question 20

What are the weaknesses of Matrix structures for project management?

Answer 20

Dual hierarchies mean two bosses
Negotiation required in order to share resources
Workers caught between competing project & functional demands