CHAP 1: Modern PM - Page 7

1. Define a project. What are five characteristics that help differentiate projects from
other functions carried out in the daily operations of the organization?
A project is a complex, non routine, one-time effort limited by time, budget, resource, and
specifications. (A temporary endeavor undertaken to create a unique product, service, or
result (The goal of a project is to satisfy a customer’s need)).
Differentiating characteristics of projects from routine, repetitive daily work are below: - p7
a. A defined life span.
b. A well-defined objective.
c. Typically involves people from several disciplines.
d. A project life cycle.
e. Specific time, cost, and performance requirements.

2. What are some of the key environmental forces that have changed the way projects
are managed? What has been the effect of these forces on the management of projects?
- Some environmental forces that have changed the way we manage projects are the
product life cycle, knowledge growth, global competition, organization downsizing,
technology changes,and time to market.
- The impact of these forces is more projects per organization, project teams
responsible for implementing projects, accountability, changing organization
structures, need for rapid completion of projects, linking projects to organization
strategy and customers, prioritizing projects to conserve organization resources, and
alliance with external organizations.

3. Describe the four phases of the traditional project life cycle. Which phase do you
think would be the most difficult one to complete? - page 10
The four phases of the traditional project life cycle are:
i. Defining stage: Specifications of the project are defined; project objectives are established;
teams are formed; major responsibilities are assigned.
ii. Planning stage: Plans developed to determine what the project will entail, when it will be
scheduled, whom it will benefit, what quality level should be maintained, and what the
budget will be.
iii. Executing stage: Physical products are produced. Time, cost, specification measures are
used for control.
iv. Closing stage: Delivering of the product, redeploying project resources, and conducting a
post-project review. Delivery of the project might include customer training and transferring
documents. Redeployment usually involves releasing project equipment/materials to other
projects and finding new assignments for team members. Post-project reviews include not
only assessing performance but also capturing lessons learned.
While I believe each stage is important, the most difficult phase in my opinion would be
the executing stage. During this stage the majority of the work takes place and will largely
determine the success of the project. Defining, and planning are no good if you are unable to
execute according to those plans. (The execution phase is usually the phase taking the
longest. In terms of complexity this phase will be the most challenging to manage, because
there are so many activities taking place in a tight sequence)

4. What kinds of projects is Agile PM best suited for and why? - page 13
Agile PM is best suited for projects with high levels of uncertainty. A good example of this
would be software projects because software projects are notorious for having unstable
scopes in which end user requirements are discovered and not defined up front.
*Agile is best suited for projects with high levels of uncertainty where creativity and
innovation in finding the best solution are more important than predictability, planning, and
control, while agile is less suited for projects that have low level of uncertainty where
predictability, planning, and control are more important than creativity and innovation.
However, Agile project management methodology is commonly used for software
development projects. It has greater adaptability to frequently changing scope. As a
consequence, agile project management uses iterative or phased planning and continuous
integration throughout the life of the project

5. The technical and sociocultural dimensions of project management are two sides of
the same coin. Explain. - page 18
They are two sides of the same coin because managing projects involves balancing the
technical and sociocultural dimensions of the project.
- The first dimension is the technical side of the management process, which consists of
the formal, disciplined, purely logical parts of the process. This technical dimension
includes planning, scheduling, and controlling projects.
- The second dimension is the sociocultural side of project management. In contrast to
the orderly world of project planning, this dimension involves the much messier, often
contradictory and paradoxical world of implementation. It centers on creating a
temporary social system within a larger organizational environment that combines the
talents of a divergent set of professionals working to complete the project. Some
suggest that the technical dimension represents the "science" of project management,
while the sociocultural dimension represents the "art" of managing a project. To be
successful, a manager must be a master of both.
Another answer: Technical dimensions are often quantifiable and tangible, such as income
levels, age demographics, or geographic location. Technical dimensions can be measured and
compared objectively. In contrast, sociocultural dimensions are more unformulated concepts
like values, beliefs, or attitudes. These subjective factors cannot be quantified in the same
way as technical dimensions, but they play a significant role in shaping our behavior. The
sociocultural dimension of project management refers to how social factors (e.g., culture,
politics, religion) affect how people work together to achieve common goals. It includes an
understanding of how different cultures approach problem-solving and conflict resolution and
an appreciation for the impact of societal norms on team dynamics.
Technical dimensions are the measurable properties of an object or system, such as its length,
width, height, mass, and electrical conductivity. Sociocultural dimensions are the
non-measurable aspects of an object or system, such as its function, use, history, and meaning
within a culture. Technical dimensions can be studied objectively using scientific methods.
Sociocultural dimensions cannot be studied objectively and must be inferred from data
collected through interviews, surveys, and other qualitative research methods.

CHAP 2- Organization Strategy and Project Selection - page 31

1. Describe the major components of the strategic management process.
- Review and Define the Organizational Mission: Mission statements identify the scope of
the organization in terms of its product or service. A written mission statement provides
focus for decision making when shared by organizational managers and employees.
Everyone in the organization should be keenly aware of the organization’s mission.
- Analyze and Formulate Strategies: Formulating strategy answers the question of what
needs to be done to reach objectives. Strategy formulation includes determining and
evaluating alternatives that support the organization’s objectives and selecting the best
alternative.
- Set Objectives to Achieve Strategies: Objectives translate the organization strategy into
specific, concrete, measurable terms. Organizational objectives set targets for all levels of
the organization. Objectives pinpoint the direction managers believe the organization
should move toward. Objectives answer in detail where a firm is headed and when it is
going to get there.
- Implement Strategies through Projects: Implementation answers the question of how
strategies will be realized, given available resources. The conceptual framework for
strategy implementation lacks the structure and discipline found in strategy formulation.
Implementation requires action and task completion; the latter frequently means
mission-critical projects. Therefore, implementation must include attention to several key
areas.

2. Explain the role projects play in the strategic management process.

Projects need to be linked with the firm's overall strategy and provides theme and focus for
the firm's future direction
Strategy is implemented primarily through projects. Successful implementation of projects
means reaching the goals of the organization and thus meeting the needs of its customers.
Projects that do not contribute to the strategic plan waste critical organization resources.

3. How are projects linked to the strategic plan?

The most important criteria for selecting a project is that the project will fit with the
organization strategy. Organization s need to maximize the use of their resources by
allocating resources to projects that will contribute to the strategic plan.

Projects are linked to the strategic plan because projects represent how a strategy is to be
implemented. Since some projects are more important than others, the best way to maximize
the organization’s scarce resources is through a priority scheme which allocates resources to a
portfolio of projects which balance risk and contribute the most to the strategic plan.
4. The portfolio of projects is typically represented by compliance, strategic, and
operations projects. What impact can this classification have on project selection?
Strategic = support org in long run; increase rev & MS
Compliance = meet regulatory conditions to operate; must do
Operational = improve efficiency & delivery
It can impact project selection because all these of these classifications have a specific value,
and if a compliance classified project is pushed behind a strategic compliance it may be
detrimental for the company

By carefully aligning your project proposal with one classification, you may increase the
chances of it being selected. Remember, senior management typically allots budgets for each
category independent of actual project selection. Knowledge of funds available, risk
portfolio, senior management bias, etc. may cause some to attempt to move their project
proposal to a different classification to improve the chances of the project being selected

5. Why does the priority system described in this chapter require that it be open and
published? Does the process encourage bottom-up initiation of projects? Does it
discourage some projects? Why?
Without a strong priority system it can lead to problems within the organization. Having an
open priority system ensures that projects are selected based on their contribution to the
organization. If it isn't open it can create 3 specific issues:
1) Implementation Gap
2) Organization Politics
3) Resource conflicts and multitasking
It does encourage bottom up; it allows organization members to evaluate projects in a fair
manner

An open, published priority system ensures projects are selected on the basis of their
contribution to the organization. If the priority system is not open, squeaky wheels, strong
people, and key departments all get their projects selected for the wrong reasons. Bottom-up
evaluation is encouraged because every organization member can self-evaluate their project
idea against priorities – and so can everyone else in the organization. To some, this approach
may look intimidating but it rarely is in practice; however, it does discourage projects that
clearly will not make positive, significant contributions to the organization vision.

6. Why should a project not rely on ROI to select projects?

Even though financials help evaluate a projects return, pure financial models fail to include
projects where financial return is impossible to measure companies need to be disciplined in
saying no to potentially profitable projects outside of the realm of their core mission
maintaining core competencies need to be considered it is best to use a multiple screening
criteria to evaluate projects.
Another answer: Financial criteria, like ROI alone, will not ensure that selected projects
contribute to the mission and strategy of a firm. Other considerations such as developing new
technology, public image, brand loyalty, ethical position, and maintaining core competencies
should be considered. Furthermore, it is difficult or next to impossible to assess ROI for
many important projects (e.g., projects to develop new technologies). While ROI is likely to
be a key consideration for many organizations, multiple screening criteria are recommended
for selecting and prioritizing projects

7. Discuss the pros and cons of the checklist versus the weighted factor method of
selecting projects. - page 44
Checklist model:
- have flexibility
- can be used across different divisions and locations
- doesn't answer relative importance or value of a project
- doesn't let you compare with other projects

Weighted factor model:

- allows comparison and ranking of potential projects
- open system
-allows self evaluation
- power and politics are exposed

CHAP 3 Organisation Structure and Culture - page 72

1. What are the relative advantages and disadvantages of the functional, matrix, and
dedicated team approaches to managing projects?
The advantages of the functional approach include:
● No radical alteration in basic structure of the parent organization
● Maximum flexibility in use of staff within functional units
● In-depth expertise can be brought to bear on specific components of the project
● Normal career paths can be maintained
The advantages of the matrix approach include:
● ·Flexible utilization of resources across projects and functional duties
● Project focus is provided by having a designated project manager
● Specialists maintain ties with their functional group
● Balances project prerogatives with technical requirements
The advantages of the dedicated team approach include:
● Does not disrupt the basic structure of the parent organization
● Concentrated project focus
● Projects tend to get done quickly
● Strong cross-functional integration
The weaknesses of the functional approach include:
● Lack of project focus
● Poor cross-functional integration
● Slow
● Lack of project ownership
The weaknesses of the matrix approach include:
 ● Decision making can be bogged down as agreements have to be negotiated
● between project managers and functional managers
● Stress induced by multiple superiors
The weaknesses of the dedicated project team include:
● Dilemma of what to do with people once the project is over
● Technical expertise limited to the people on the team
● We/they attitude emerges between project team and rest of organization which
● inhibits integration of project with mainstream operations
● Expensive – creation of project management role and duplication of services
● across projects
Suggestion:
Begin the discussion by identifying the strengths and weaknesses of the functional
organization. Record responses on the left side of a large whiteboard. Next, identify the
strengths and weaknesses of the dedicated team approach on the right side of the whiteboard.
In the middle, record the strengths and weaknesses of the matrix organization. Use this
framework to discuss the relative merits of different kinds of
matrix organizations.

2. What distinguishes a weak matrix from a strong matrix?

The main distinction between a weak and strong matrix is the project manager' relative
influence over project participants and functional managers.
- In a weak matrix the project manager role is limited to coordinating project activities and
has little formal authority over the project. The functional managers are responsible for
managing their segment of the project.
- In a strong matrix, the project manager controls most aspects of the project including design
trade-offs and assignment of project personnel. The functional managers are responsible for
supporting project completion.
- Project managers in a strong matrix would be involved in performance appraisals and
compensation decisions unlike those in a weak matrix.

Another answer: The most distinguishing characteristic between a weak and strong matrix
is: The relative influence the project manager has over project participants and functional
managers. In a weak matrix the project manager role is limited to coordinating project
activities. The functional managers are responsible for managing their segment of the project.
The project manager has little formal authority over the project. In a strong matrix, the
project manager controls most aspects of the project including design trade-offs and
assignment of project personnel. The functional managers are responsible for supporting
project completion. A project manager in the weak matrix is not likely to be involved in
performance appraisals and compensation decisions while project managers in a strong
matrix would
3. Under what conditions would it be advisable to use a strong matrix instead of a
dedicated project team? When the organization cannot afford to have people work full time
and when the culture of the organization supports the dual authority structure.
Both structures can be quite effective.

● The strong matrix would be recommended when the organization cannot afford to
have people work full-time on the project and when the culture of the organization
supports the dual authority structure.
● Dedicated project teams are recommended when speed is essential to success and
there is not enough project work to warrant a formal matrix structure.
● Dedicated project teams are also recommended when the prevalent culture within the
organization does not support collaboration and innovation.

4. How can project management offices (PMOs) support effective project management?
(Page 83)

a PMO may track projects, provide training, and institutionalize lessons learned. In recent
years, PMOs have played a key role in helping organizations adapt Agile methods to their
projects (Patel, 2018). PMOs will continue to evolve and adapt. It is important to remember
that that the primary role of a PMO is to facilitate/enable projects, not do projects. Top
management should not allow a PMO to usurp the technical aspects (scheduling, planning,
budgeting, etc.) of completing a project. Those are the project manager’s responsibilities.
PMOs support effective project management by:
● tracking project progress,
● promulgating best practices,
● providing project management training and consulting services,
● integrating latest advances in field of project management,
● being an organizational advocate.
It should be noted that the extent to which a PMO performs the above functions will vary
from one organization to the next.

5. Why is it important to assess the culture of an organization before deciding what

project management structure should be used to complete a project?

The culture of the organization can impact the effectiveness of different project management
structures. Organizational cultures that do not encourage teamwork, collaboration, and
cross-functional integration need a stronger project management structure (i.e., project team,
project matrix) to be successful. Conversely, a functional matrix can be effective in an
organization in which the culture of the organization is conducive to project management

6. Other than culture, what other organizational factors should be used to determine
which project management structure should be used?
Two main considerations:
- The percentage of core work that involves projects
- Resource Availability
Organizations that evolve around projects should consider a projectized form of structure
Organizations that have mainstream operations and projects should use a matrix structure
When resource availability is limited then a matrix structure should be used that would allow
sharing personnel across projects & operations.
Another answer: The two major considerations are the percentage of core work that
involves projects and resource availability. Organizations, whose main business evolves
around projects, should consider a projectized form of structure. Organizations that have
mainstream operations and projects should use a matrix structure. When resource availability
is limited then a matrix structure should be used that allows sharing personnel across projects
and operations.

7. What do you believe is more important for successfully completing a project—the

formal project management structure or the culture of the parent organization?
I believe that both can be argued.
Culture impacts behavior of employees more so than the structure. Having a strong culture in
a work environment can help compensate for weaknesses of the structure.
Even though there is a formal layout for the project management structure, if employee
culture is poor the project may not be completely well or at all.
Another answer: Both are important and an argument can be made for either structure
or culture. The bias of the authors is that culture is more important than structure since it
more directly impacts behavior. A positive organizational culture can compensate for the
inherent weaknesses of the formal structure. For example a functional or matrix structure can
be effective if the norms and customs of the organization value teamwork and effective
problem-solving. Conversely, a functional or matrix structure is likely to be disastrous in a
negative culture that encourages competition and looking out only for yourself. Alternatively,
one could argue that an organization can circumvent a negative culture by creating an
independent project team or a strong project matrix. In either case, the strategy is to insulate
the project team from the dominant organizational culture and create a unique project
subculture.

CHAP 4 - Defining the project - page 107

1. What are the 6 six elements of a typical scope statement? (Project Scope Checklist)

a. Project objective /// b. Deliverables //// c. Milestones //// d. Technical requirements

e. Limits and exclusions //// f. Reviews with customer.

Many companies engaged in contracted work refer to scope statements as statement of work
(SOW)

● Project Charter: document that authorizes the PM to initiate & lead the project.
● Scope creep : the tendency for the project scope to expand over time (usually by
changing requirements, specifications, and priorities).
2. What questions does a project objective answer? What would be an example of a
good project objective? The project objectives answers what, when, and how much. To
replace the Willamette bridge by August 3rd at a cost not to exceed $1.5 million.

3. What does it mean if the priorities of a project include: Time–constrain,

Scope-accept, and Cost–enhance? (page 112) The project must be completed on a specific
date, the scope can be scaled back in order to meet cost and time objectives, and when
possible seek opportunities to reduce costs.

•Causes of Project Trade-offs

–Shifts in the relative importance of criterions related to cost, time, and performance
parameters
•Budget–Cost
•Schedule–Time
•Performance–Scope
One technique found in practice that is useful for this purpose is completing a priority matrix
for the project to identify which criterion is constrained, which should be enhanced and can
be accepted.

01. Project Management Trade-offs

–Constrain: a parameter is a fixed requirement. The project must meet the completion date,
specifications and scope of the project, or budget

–Enhance: optimizing a criterion over others.

–Accept: reducing (or not meeting) a criterion requirement.

 Fig 2. Project Priorities Matrix

•Work Breakdown Structure (WBS)

● Defines the relationship of the final deliverable (the project) to its subdeliverables,
and in turn, their relationships to work packages.
● Best suited for design and build projects that have tangible outcomes rather than
process-oriented projects.
The benefits of WBS:
● Facilitates evaluation of cost, time, and technical performance of the organization on a
project.
● Provides management with information appropriate
● to each organizational level.
● Helps in the development of the organization breakdown structure (OBS). which
assigns project responsibilities to organizational units and individuals
● Helps to plan schedule, and budget.
● –Defines communication channels and assists
● in coordinating the various project elements.

4. What kinds of information are included in a work package? Work packages include
the following types of information: (page 116 - 117)

● Work to accomplish a segment of the project

● Time to accomplish the work package
● Time-phased budget for the work package and total cost to complete the work
package
● Resources needed to complete the work package
● Single person responsible for accomplishment of the work package
● Monitoring points for measuring progress during implementation of the work package
● Any specifications critical to the work package.

Organizational Breakdown Structure (OBS): Depicts how the firm is organized to

discharge its work responsibility for a project.
5. When would it be appropriate to create a responsibility matrix rather than a
full-blown WBS? On smaller projects where verbal, face-to-face communication is possible,
a responsibility matrix should be adequate. Sometimes a responsibility matrix is used for a
segment of a project or one in which a team wishes to stress responsibility.

6. How does a communication plan benefit management of projects? - page 125

The advantage of establishing a communication plan is that instead of responding to

information requests you are controlling the flow of information. Keeping stakeholders
informed with timely information reduces confusion, unnecessary interruptions, and can
provide project managers greater autonomy. Why? Because by reporting on a regular basis
how things are going and what is happening, you allow senior management to feel more
comfortable about letting the team complete the project without interference

Exercises:
1. You are in charge of organizing a dinner-dance concert for a local charity. You have
reserved a hall that will seat 30 couples and have hired a jazz combo.
a. Develop a scope statement for this project that contains examples of all the elements.
Assume that the event will occur in four weeks. Provide your best estimate of the dates for
milestones.
A typical scope statement contains the following six elements.
• Project Objective.
• Deliverables.
• Milestones.
• Technical requirements.
• Limits and exclusions.
• Reviews with customer.
For the given case the scope statement follows,
Project Objective:
Successfully organize a dinner- dance concert with jazz combo entertaining thirty couples.
Deliverables:
• Concert security.
• Concert hall.
• Dance team arrangements.
• Separate dinner garden.
• Stage setup.
• Seating arrangements.
• Catering service.
• Event Insurance.
Milestones:
Weak 1:
• Concert hall finalizing.
• Catering service booking.
• Dance concert –artists/ team contract signing.
• Permission from respective authorities.
Weak 2:
• Finalizing the facilities required at the concert hall.
• Ensuring security services.
• Stage decoration design selection.
• Food items selection.
Weak 3:
• Ensuring the safe environment for the concert.
• Food garden ambience enhancement.
• Dance theme review.
• Water and electricity amenities availability check.
Weak 4:
• Dance rehearsal and changes.
• Stage design implementation.
• Concert hall decoration.
• Ensuring dining garden amenities.
Technical Requirements:
• Professional Sound system.
• City compliance requirements.
• Regulation and standards of stage formation.
• Restroom facilities with proper hygienic conditions.
• Food waste disposable.
• Food standards and quality products.
Limits and Exclusions:
• Food and Seating capacity for thirty couples.
• Standard security services.
• Drinking water and a single dessert will be included in the food package.
• Performers must have their own traveling and accommodation arrangements.
• Concert will end at 11:00 PM.
Customer Review:
Scope statements should be timely shared to charity representatives.

b. What would the priorities likely be for this project?

All elements in the scope statement have its own weightage in conducting or administering a
project. Milestones have high priority for this kind of projects, as it clearly states the must do
step by step way. Time is a most important constraint, as postponing the event is nearly
impossible. Formulation of a detailed milestone in scope chart will prevent last minute
hassles. Sharing the scope statement and accomplishment reports with customer will give an
excellent experience to customers.

2. In small groups, identify real-life examples of a project that would fit each of the
following priority scenarios:
a. Time-constrain, Scope-enhance, Cost-accept
b. Time-accept, Scope-constrain, Cost-accept
 c. Time-constrain, Scope-accept, Cost-enhance

a.
Time-constrain, Scope-enhance, Cost-accept:
• Special event projects – Concerts, parades.
• Tournaments.
• Emergency health care projects by government.
• Defense projects.
b.
Time-accept, Scope-constrain, Cost-accept:
• Public infrastructure projects.
• New technology products.
• Drugs manufacturing.
• High quality premium products production.

3. Develop a WBS for a project in which you are going to build a bicycle. Try to identify
all of the major components and provide three levels of detail.

4. You are the father or mother of a family of four (kids ages 13 and 15) planning a
weekend camping trip. Develop a responsibility matrix for the work that needs to be
done prior to starting your trip.

Task Date Mother Father Daughter Son

Search for the site for camping trip 1st May R R

Decide and choose the site for the trip 2nd May R S S S

Reserve the chose site 4th May R

Make a list of shopping items required for camping trip 5th May R S S S

Make purchases of supplies for the trip mentioned on 5th May R R

the list

Pack the equipment for camping 6th May S R

For fishing at the trip, pack fishing gear 6th May S R

Fuel up the car to reach the site 7th May R

Get some money 8th May R

5. Develop a WBS for a local stage play. Be sure to identify the deliverables and
organization units (people) responsible. How would you code your system? Give an
example of the work packages in one of your cost accounts. Develop a corresponding
OBS that identifies who is responsible for what

WBS:
OBS:
6.Use an example of a project you are familiar with or are interested in. Identify the
deliverables and organization units (people) responsible. How would you code your
system? Give an example of the work packages in one of your cost account

Project Details

The selected project is an implementation of an Accounts Payable Workbench (APW)

system. The project involves an online system, where individuals (suppliers, vendors,
customers and company) could easily perform various AP related financial and non-financial
functions.

Deliverables and Organizational Units (People) Responsible

The above described project has the main deliverable as completion and implementation of
the APW system all across the organization within the specified timeframe. Also, it was to be
ensured that the system was easily accessible to the people from all the units.

Also, in terms of peoples, the IT team was responsible for the software development based
upon guidance and inputs from our team. Further, at various instances, approvals were
needed from senior management and leadership in terms of the budget approvals.

System Coding

The system was coded using the Java technology with a user interface developed using
HTML.

Work Package

Also, there is not any work package associated with the system as of now but future
advancements of the tool may have one.

Telly is planned to be integrated in the near future.

7: Develop a communication plan for an airport security project. The project entails
installing the hardware and software system that (1) scans a passenger’s eyes, (2)
fingerprints the passenger, and (3) transmits the information to a central location for
evaluation.

A communication plan is generally developed by the project manager at the beginning of a

project. It is the planning regarding coordination with the important stakeholders for the
relevant updates, issues, and tracking information of the project.

A communication plan generally involves the following steps :

Identify the stakeholder groups, their level of power and interest in the project
Identify the information needed by the specific stakeholder groups.

Determine the sources of information

Dissemination mode for each type of communication encounters

Responsibility and timing for the communication encounters

The following table shows the communication plan for a airport security project :

câu này chegg giải saisai

8. Go to an Internet search engine (e.g., Google) and type in “project communication
plan.” Check three or four results that have “.gov” as their source. How are they similar
or dissimilar? What would be your conclusion concerning the importance of an internal
communication plan?

Project communication plan, is a way to communicate effectively with the client, team and
concerned stakeholders about a specified project and it also derives how critical information
has to be communicated with individuals associated with the projects communication acts as
a primary to serve the better understanding between individuals and teams relying on
implementing the plans and projects for the growth and achievement of organizational goals
and so does the effective utilization of concise and clear ideas among them to cooperate with
one another internal communication plan.

at the same time, it also serves the management by transmitting the information between
every concerned stakeholder, team members, and workers of an organization addressing
every division of an organization and management.

1. it defines a clear way ahead to employees and management about the plans and strategies
on which they have to work together

2. it keeps team members focused and concerned about the qualitative efforts to be used for
the projects

3. and enables a proper communication channel between partners and business leaders to
deliver the best strategies on the various plans and projects

9. Your roommate is about to submit a scope statement for a spring concert sponsored
by the entertainment council at Western Evergreen State University (WESU). WESU is
a residential university with over 22,000 students. This will be the first time in six years
that WESU has sponsored a spring concert. The entertainment council has budgeted
$40,000 for the project. The event is to occur on June 5. Since your roommate knows
you are taking a class on project management she has asked you to review her scope
statement and make suggestions for improvement. She considers the concert a
resumebuilding experience and wants to be as professional as possible. Following is a
draft of her scope statement. What suggestions would you make and why?

CHAP 5: - Estimating Time and Costs - page

1. Why are accurate estimates critical to effective project management?

In general, all project stakeholders prefer the most accurate cost and time estimates
because of the fact that cost, time and budget estimates are the lifeline for control and
stability. They serve as the standard for comparison of actual plan throughout the life of
the project. Moreover, project status reports depend on reliable estimates as the major
input for measuring variances and taking corrective action.

2. How does the culture of an organization influence the quality of estimates?

Organizational culture can significantly influence project estimates. In some

organizations padding estimates is tolerated and even privately encouraged. Other
organizations place a premium on accuracy and strongly discourage estimating
gamesmanship. Organizations vary in the importance they attach to estimates. The
prevailing belief in some organizations is that detailed estimating takes too much time
and is not worth the effort or that it’s impossible to predict the future. Other organizations
subscribe to the belief that accurate estimates are the bedrock of effective project
management. Organizational culture shapes every dimension of project management;
estimating is not immune to this influence.
3. What are the differences between bottom-up and top-down estimating approaches?
Under what conditions would you prefer one over the other?

Condition Top – Down estimates Bottom – up estimates - page 146

Strategic decision making X

Cost and time important X

High uncertainty X

Internal, small project X

Fixed-price contract X

Customer wants details X

Unstable scope X
 Top-down estimates usually are derived from someone who uses experience and/or
information to determine the project duration and total cost. However, these estimates are
sometimes made by top managers who have very little knowledge of the component
activities used to complete the project. The question is, do these estimates represent
low-cost, efficient methods? Seldom.

If possible and practical, you may want to push the estimating process down to the work
package level for Bottom-up estimates that establish low-cost, efficient methods. This
process can take place after the project has been defined in detail.

The bottom-up approach at the work package level can serve as a check on cost elements
in the WBS by rolling up the work packages and associated cost accounts to major
deliverables.

*Top down estimates (macro)

● usually done by senior management

● often derive estimates from an analogy, group consensus, or mathematical relationships
● Top down estimates are sometimes inaccurate; they don't know about all the details of the
project but give a rough estimate to help select and prioritize projects

*Bottom up estimates (micro)

● - typically done by the people doing the work

● - estimates are made from elements of the work breakdown structure
● - estimates establish low cost & efficient methods
● - prefer bottom up if time to estimate is available, estimating cost is reasonable

4. What are the major types of costs? Which costs are controllable by the project
manager? - page 151

*Direct costs: These costs are clearly chargeable to a specific work package. Direct costs can
be influenced by the project manager, project team, and individuals implementing the work
package. These costs represent real cash outflows and must be paid as the project progresses;
therefore, direct costs are usually separated from overhead costs. Lower-level project rollups
frequently include only direct costs.

● Labor
● Materials
● Equipment
● Other

*Direct project overhead costs: Direct overhead rates more closely pinpoint which
resources ò the organization are being used in the project. Direct project overhead costs can
be tied to project deliverables or work packages. Selective direct overhead charges provide a
more accurate project (job or work package) cost than using a blanket overhead rate for the
whole project.

*General and administrative (G&A) overhead costs: These represent organization costs
that are not directly linked to a specific project. They are carried for the duration of the
project. Allocation of G&A costs varies from organization to organization. However, G&A
costs are usually allocated as a percent of total direct cost or a percent of the total of a
specific direct cost such as labor, materials, or equipment.

5. Why is it difficult to estimate mega project (e.g., airport, stadium) cost and benefits?

Mega projects are large-scale, complex ventures that typically cost 1bil or more, take many
years to complete, and involve multiple private and public stakeholders. They often
involve a double whammy. Not only did they cost much more than expected, but they under
delivered on benefits they were to provide.

In most cases project promoters use deception to promote projects not for public good but for
personal gain, political or economic. In some cases, promoters rationalize that nothing great
would ever get built if people know in advance what the real cost and challenges involved
were. On some mega projects, there are triple whammies. Not only are they over budget and
under value, but the cost of maintaining them exceeds the benefits received. These kinds of
projects are called white elephants.

Another answer: First, the time horizon of 2-5 years to complete large, complex projects
makes it difficult to accurately forecast costs and user needs. Second, the sheer complexity of
these kinds of projects make it difficult to accurately estimate all of the costs. Third, the
severity of the risks involved are significant. When things go wrong, they go wrong is a big
way. While such conditions would suggest a very conservative estimate, the opposite occurs.
Either blind enthusiasm or calculated deception is used to promote an exaggerated case for
the project.

6. Define a white elephant in project management. Provide a real-life example.

<<page 156>>

A “white elephant” suggests a valuable, but burdensome, possession, which its owner cannot
easily dispose of and whose cost (particularly upkeep) is out of proportion with its usef
ulness.Example: P.157

A white elephant is a burdensome possession that the owner cannot easily dispose of and
whose cost (particularly upkeep) is out of proportion with its usefulness. Examples include
dormant Olympic and World Cup stadiums, the Concorde, or little used vacation homes.
CHAP 6: Develop a project Schedule - page 170

1. How does the WBS differ from the project network?

Once the scope and deliverables have been identified, the work of the project can be
successively subdivided into smaller and smaller work elements. The outcome of this
hierarchical process is called the WBS. Basically, WBS is the outline of the project with
different levels of detail. On the other hand, the project network is a visual flow diagram
of the sequence, interrelationships, and dependencies of all the activities that must be
accomplished to complete the project.

The WBS is hierarchical while the project network is sequential.mThe network provides a
project schedule by identifying sequential dependencies and timing of project activities.
The network sets all project work, resource needs, and budgets into a sequential time
frame; the WBS does not provide this information. The WBS is used to identify each
project deliverable and the organization unit responsible for its accomplishment within
budget and within a time duration. The WBS provides a framework for tracking costs to
deliverables and organization units responsible.

2. How are WBS and project networks linked?

Project networks are developed from the WBS. Work packages from the WBS are used to
build the activities found in the project network.

The network uses the time estimates found in the work packages of the WBS to develop
the network. Remember, the time estimates, budgets, and resources required for a work
package in the WBS are set in time frames, but without dates. The dates are computed
after the network is develped An activity that spans over a segment of a project. Duration
of hammock activities is determined after the network plan is drawn. Hammock activities
are used to aggregate sections of the project to facilitate getting the right amount of detail
for specific sections of a project.

3. Why bother creating a WBS? Why not go straight to a project network and forget
the WBS?

The WBS defines all the elements of the project in a hierarchical framework and establishes
their relationships to the project end times. This hierarchical structure facilitates the
evaluation of cost, time and technical performance at all levels in the organization over the
life of the project. Without the WBS, the project network would become unclear and may
result many flaws which will cost time and resources just to find out the problems and
solutions for it. The primary inputs for developing a project network plan are work packages
which come from the WBS so it can not be ignored when conducting a project network.

The WBS is designed to provide different information for decision making. For example, this
database provides information for the following types of decisions:
a. Link deliverables, organization units, and customer

b. Provide for control

c. Isolate problems to source

d. Track schedule and cost variance. Network doesn't.

e. Assign responsibility and budgets

f. Focus attention on deliverables

g. Provide information for different levels in the organization.

4. Why is slack important to the project manager?

When it comes to slack, there are 2 types of slack:

● 1st one is total slack, is the amount of time an activity can exceed its early finish date
without affecting the project end date or an imposed completion. This one is used for
identifying the critical path of the project which is based on the least slack time
of an activity.
● 2nd one is free slack, is the amount of time an activity can be delayed without delaying
any immediately following (successor) activity or known as the amount of time that
an activity can exceed its early finish date without affecting the early start date of any
successors. This one is usually at the end of the project network path.

Another answer: Slack is important to the project manager because it represents the degree
of flexibility the project manager will have in rearranging work and resources. A project
network with several near critical paths and hence, little slack, gives the project manager little
flexibility in changing resources or rearranging work.

5. What are the differences between total slack and free slack?

The distinction between free and total slack at first glance seems trivial, but in reality it is
very important. When you are responsible for a late activity that has zero free slack, you
impact the schedules of subsequent activities. You should notify the managers of the
remaining activities in the chain that you will be late.

Another answer: Free slack usually occurs at the end of an activity chain—before a merge
activity. It is the amount of time the activity can be delayed without affecting the early start of
the activity immediately following it. Since free slack can be delayed without delaying
following activities, it gives some resource flexibility to the project manager. Total slack is
the amount of time an activity can be delayed before it becomes critical. Use of total slack
prevents its use on a following activity.
6. Why are lags used in developing project networks?

The use of lags has been developed to offer greater flexibility in network construction. A
lag is the minimum amount of time a dependent activity must be delayed to being or end.
The use of lags in project networks occurs primarily for two reasons:

When activities of log duration delay the start or finish of successor activities, the
network designer normally breaks the activity into smaller activities to avoid the long
delay of the successor activity. Use of lags can avoid such delays and reduce network
detail. Lags can be used to constrain the start and finish of an activity.

7. What is a hammock activity and when is it used? - page 194

Another of the extended techniques uses a hammock activity; this type of activity derives
its name because it spans over a segment of a project. The hammock activity duration is
determined after the network plan is drawn. Hammock activities are frequently used to
identify the use of fixed resources or costs over a segment of the project. Hammock
activities are very useful in assigning and controlling indirect project costs.

Another major use of hammock activities is to aggregate sections of a project. This is

similar to developing a subnetwork, but the precedence is still preserved. This approach is
sometimes used to present a “macro network” for upper management levels. Using a
hammock activity to group activities can facilitate getting the right level of detail for
specific sections of a project.

Another answer: A hammock activity is a special purpose activity that exists over a segment
of the life of the project. A hammock activity typically uses resources and is handled as an
overhead cost—e.g., inspection. Hammock activities are used to identify overhead resources
or costs tied directly to the project. The hammock duration is determined by the beginning of
the first of a string of activities and the ending of the last activity in the string. Hammock
activities are also used to aggregate sections of projects to avoid project detail—e.g., covering
a whole subnetwork within a project. This approach gives top management an overview of
the project by avoiding detail.

Chap 7: Managing Risk

1. Project risks can/cannot be eliminated if the project is carefully planned. Explain.
Project risks cannot be eliminated. It is impossible to be aware of all things that might
happen when a project is being implemented. Undesirable events identified before the
project begins can be transferred, retained/reduced, or shared. Contingency plans with
trigger points and responsibility should be established before the project begins.

2. The chances of risk events occurring and their respective costs increasing change
over the project life cycle. What is the significance of this phenomenon to a project
manager? The chances of risk events and estimated costs changing over the project life
cycle are high.These events will impact project change control mechanisms. Moreover,
 such changes could be significant enough to require changes in scope. The project
manager must ensure that these changes are recorded and kept updated. Otherwise the
integrity of the project control system will quickly deteriorate and become useless as a
management tool.

3. What is the difference between avoiding a risk and accepting a risk? Avoiding a risk
is changing the project plan in advance so as to eliminate specific risks from occurring while
accepting a risk means no preventive action is taken; contingency plans may be used if the
risk materializes.

4. What is the difference between mitigating a risk and contingency planning?

Mitigating a risk refers to taking action to either reduce the likelihood that a risk (bad event)
will happen and/or reduce the impact the risk has on the project. Contingency planning is
developing a response if the risk occurs. Mitigating is preventive while contingency is
reactive.

5. Explain the difference between budget reserves and management reserves.

Budget reserves are established to cover identified risks that occur while implementing a
project work package or activity. If the risk does not materialize, the funds are removed from
the budget reserve. The management reserve covers unforeseen risks and applies to the total
project. These reserves are usually controlled by top management, the owner, and/or the
project manager. Budget and management reserves are independent of each other.

6. How are the work breakdown structure and change control connected?

The WBS and change control are directly linked. Any change from the baseline developed
from the WBS needs to be recorded. This link allows management to trace changes and
problems directly to deliverables and the organization unit responsible.

7. What are the likely outcomes if a change control process is not used? Why?

If a change control process is not used, budgets and plans will self-destruct quickly. Tracking
changes facilitates control and accountability of budgets and time. In addition, change
control allows for coordination of changes further on in the project.

8. What are the major differences between managing negative risks versus positive
risks (opportunities)?

Essentially the same process that is used to manage negative risks is applied to positive risks.
The major differences occur in the responses. Instead of avoiding negative risks, project
managers often try to exploit positive risks by taking action to ensure that the opportunity
occurs. Instead of transferring risks to another party, project managers often share positive
risks to increase the likelihood the opportunity can be exploited. Instead of mitigating
negative risks, project managers will take action to enhance the likelihood the opportunity
will occur and/or increase the positive impact of the opportunity. Finally, project managers
will often choose to accept both negative and positive risks, but be prepared to respond if
either occurs.

Chapter 8: - Scheduling Resources and Costs - page 262

1. How does resource scheduling tie to project priority? - page 260

Resource scheduling ties to project priority because resources are limited. Remember, the
priority system ranks projects which then determines which project each resource should
work on first.

2. How does resource scheduling reduce flexibility in managing projects?

Resource scheduling systems usually reduce flexibility because when resources are
considered, computer routines use slack to get an “efficient” schedule. When slack is used
up, flexibility is lost and the risk of delaying the project increases. If the resource conflict
occurs on the critical path, the project is delayed.

3. Present six reasons scheduling resources is an important task.

Several reasons for scheduling resources are to:

· Check if existing resources are adequate and available

· Decide which resources have priority
· Assess the impact if another project is added to the pool
· Determine where the real critical path is. Are there unforeseen dependencies?
· See what happens to the risk of being late if slack is used up developing a schedule
· Decide if outside contractors have to be used
· Decide if an imposed project duration is realistic.
Note that there are many more reasons for scheduling resources – e.g. it allows you to
develop the time-phased budget which allows you to monitor and control the project schedule
and budget (see chapter 13 for more details), allows you to generate cash flow statements,
resource usage schedule ….

4. How can outsourcing project work alleviate the three most common problems
associated with multiproject resource scheduling?
Outsourcing can be used to reduce project slippage, improve utilization of critical resources,
and avoid resource bottlenecks. For example, project delays can be avoided by contracting
key activities when resources are not available internally. Likewise, hiring consultants to
help with Y2K problems allows critical IT people to work on specific problems, while the
outsiders work on standard programs. Not only does the project get done on time, but the
company avoids hiring IT personnel to meet a short term need.
5. Explain the risks associated with leveling resources, compressing or crashing
projects, and imposed durations or “catch-up” as the project is being implemented.
(Crashing means reducing the project duration.)
The risks associated with leveling, crashing, and “catch-up” are similar to those noted in
question 2. Flexibility is decreased and risk of delay is increased. For example, slack is used
up and may cause other bottlenecks later in a sequence of activities. Having time buffers at
merge points before the project begins could help avoid some of the need to crash activities.
Decoupling critical activities can help to cut time if decoupling is possible and resources can
be shifted; however, the risk is typically reduced only slightly.
6. Why is it critical to develop a time-phased baseline? - page 282
Other systems do not measure how much work is accomplished for the money spent! Hence,
without time-phasing cost to match your project schedule, it is impossible to have reliable
information for control purposes.
It is critical to develop a time-phased budget because they are necessary for good project
schedule and cost control. Other systems don’t’ measure the amount of work accomplished
for the money spent. Time-phasing cost to match project schedule is a prerequisite to having
reliable information for control purposes.

Chap 9 - Reduce Project Duration - page 320

1. What are five common reasons for crashing a project? - page 321

1. Reducing time to market in order to gain a competitive advantage

2. Unforeseen delays that cause substantial delays midway through the project

3. Incentive contracts that reward reduced project time

4. Imposed deadlines

5. Very high overhead costs

2. What are the advantages and disadvantages of reducing project scope to accelerate a
project? What can be done to reduce the disadvantages? Advantages to reducing project
scope to accelerate a project are that time and cost may be reduced. Disadvantages include
the fact that functionality is lost and the value of the project reduced. These disadvantages
can be minimized by an intense re-examination of requirements with stakeholders to
determine which features are essential. This “may actually improve the value of the project
by getting it done more quickly and for a lower cost”

Another answer: The reduction in project scope is done by crashing activities to enable
project managers to accelerate the project to reduce time. This can be done by working
overtime, outsourcing, or using resources that are time-savers to the project. Crashing
activities will shorten the duration of the project. Therefore, projects can meet the established
deadlines or finish earlier than the time originally planned. Furthermore, another advantage is
that it decreases the budget needed to complete the project as it eliminates some tasks within
the project. On the other hand, reducing the project scope is a risk as it can have detrimental
effects. The project can lose functionality which consequently will reduce the value and
quality of it, resulting in failure to meet the requirements initially defined. However, the
disadvantages can be minimised by monitoring and re-assessments of requirements to
determine essential features. This will ensure that the project the adaptation of the projects
functions to maintain and quality. Thus, it will also increase projects costs.
Overall, there are advantages and disadvantages influenced by three project parameters
(cost, schedule and technical performance) can largely affect the perceived success or failure
of the project. Consequently, managers need to carefully evaluate their decision in whether
to crash activities to accelerate the project and ensure that they can adapt to all possible
outcomes.

3. Why is scheduling overtime a popular choice for getting projects back on schedule?
What are the potential problems for relying on this option?

Scheduling overtime is a popular choice for accelerating project completion because it avoids
the additional costs of coordination and communication encountered when new people are
added to a project. Additionally, there may be fewer distractions when working outside of
normal business hours and, if the people working overtime are salaried workers, there may
not be any real additional cost for the extra work. 
Potential problems with relying on
overtime include the increased costs when using hourly workers. Overtime for salaried
workers may result in reduced productivity, lower employee satisfaction, burnout or turnover.

4. Identify four indirect costs you might find on a moderately complex project. Why are
these costs classified as indirect?

Indirect costs that might be found on a moderately complex project include supervision,
administration, consultants, and interest. These costs are classified as indirect because they
cannot be associated with any particular work package or activity.

Indirect (overhead) costs are costs that cannot be attributed to a specific activity or work
package. Examples of indirect costs are supervision, consultants, debt interest charges,
machinery common to several activities, accounting and information processing, public
relations, penalties or incentives for early or late completion. In practice it is amazing how
many project compression decisions are made without serious consideration of indirect costs.

5. How can a cost-duration graph be used by the project manager? Explain.

Cost-duration graphs allow the project manager to identify “the costs of reducing project time
so that comparisons can be made with the benefits of getting the project completed sooner”
(p. 288). These graphs require gathering direct and indirect costs for specific project duration
which can help highlight and searching critical activities to find the lowest direct-cost
activities that will shorten project duration.

6. Reducing the project duration increases the risk of being late. Explain.

Reducing the project duration increases the risk of being late because reducing the slack of
noncritical activities increasing the likelihood of creating new critical paths. More critical
paths increases the risk of the project being late.

Another answer: Compressing the project duration means slack (float) on noncritical
activities will be reduced. When slack of noncritical activities is reduced, the chance of new
critical paths occurring increases; hence, the risk of the project becoming late increases. In
addition, compressing will have the following other impacts on managing the project:

● Reduces flexibility by using slack

● Can increase number of critical activities
● Can increase interdependencies of paths
● Makes resource scheduling tighter (critical)
● May increase costs

7. It is possible to shorten the critical path and save money. Explain how.
Shortening the critical path can save money in instances where indirect costs are a
significant percentage of total project costs. A shorter project means these costs are incurred
for less time.

Chap 13 - Progress and Performance Measurement and Evaluation - page 476

1. How does a Tracking Gantt chart help communicate project progress?

It shows actual & revised time estimates against scheduled time estimates quickly and
efficiently.

2. How does earned value give a clearer picture of project schedule and cost status than
a simple plan versus actual system?
Unlike simple plan vs. actual system, earned value gives a realistic estimate of performance
against a time-phased budget. Calculates the percent of the original budget that has been
earned by actual work completed.
3. Schedule Variance (SV) is in dollars and does not represent time. Why is it still
useful?
Schedule variance is still useful because it can assess the direction all project work is taking
after 20% or more of the project is completed.
How would a project manager use the CPI?
Project managers can use CPI to measure the cost efficiency of project related work
accomplished to date. It's useful as an early warning signal and allows project managers to
make budget or scope adjustments.

4. What are the differences between BAC and EAC?

BAC: computes budgeted cost at completion and shows total budgeted cost of baseline or
project cost accounts.
EAC: Allows changes to baseline durations and costs OR uses actual-to-date costs + CPI

5. Why is it important for project managers to resist changes to the project baseline?
Changes in the project baseline may result in cost overruns, late schedules, low morale, and
loss of control.

6. Under what conditions would a project manager make changes to a baseline?

PMs should only make changes to a baseline if: the customer makes a new request, the
government renders new requirements that require scope revisions, or if stakeholders identify
unforeseen problems/improvements that changes the scope.

7.When would a project manager not allow changes to a baseline?

Baseline changes shouldn't be allowed if the project can still succeed without the change,
there is no significant improvement, or the customer doesn't ask for the change.
Chap 10: Being an Effective Project Manager - page 357

1. What is the difference between leading and managing a project?

Leading involves recognizing and communicating the need to change course and direction of
the project, aligning people to this new direction, and motivating the team to overcome
obstacles to achieve the new objectives. Managing is about formulating plans and objectives,
designing procedures to achieve those objectives, monitoring progress, and taking corrective
action. Managing is about putting out fires and maintaining the course. Leading is about
change, and altering the course of a project.

2. Why is a conductor of an orchestra an appropriate metaphor for being a project

manager? What aspects of project managing are not reflected by this metaphor? Can
you think of…show more content…

The key is to find out what you can offer others that is of value to them so that they will feel
obligated to reciprocate. Here the notion of influence currencies is useful in identifying
different ways to gain cooperation from others. A second key is building a positive “bank
account” with those whom you are dependent upon so that they are inclined to cooperate with
you.

3. What differences would you expect to see between the kinds of influence currencies
that a project manager in a functional matrix would use and the influence a project
manager of a dedicated project team would use?

This question is designed to explore the impact that the project management structure has on
the ability of project managers to exercise influence over team members. The key point is that
the project manager of a dedicated team has more formal authority over the participants and
the project and, therefore, greater access to influence currencies than the project manager in a
functional matrix. For example, the dedicated project manager is responsible for assigning
project work, while functional managers do so in a functional matrix. A dedicated project
manager will have greater access to position-related currencies. Since dedicated projects are
used for high priority projects, the dedicated project manager is likely to develop
inspiration-related currencies. Project managers in a functional matrix compensate for their
lack of formal authority by exercising.

4. Why is it important to build a relationship before you need it?

People are likely to be more cooperative if they know you, and you have developed a
personal relationship with them. When people view you as pleasant, credible, and helpful
based on past contact, they are more likely to be responsive to your requests for help and less
confrontational when problems arise. The key is building a positive credit in the relationship
that you can tap into when you need help.

5. Why is it critical to keep the project sponsor informed?

The project sponsor is a powerful ally who uses his/her influence to protect the project when
it comes under attack in higher circles of management. Project sponsors need to be kept
informed so that they can defend the project to the best of their abilities.

6. Why is trust a function of both character and competence?

Character alone is not likely to engender trust. People must have confidence in the other
person's abilities and competence. For example, you are unlikely to follow someone who has
the best of intentions if he/she has a track record of failing to get things done correctly.
Conversely, one will not trust someone who is very competent but has a doubtful character.
For example, you are unlikely to follow someone who is quite competent if you believe
he/she is only looking out for what is best for him/her.

7. Which of the eight traits/skills associated with being an effective project manager is
the most important? The least important? Why?

This question is designed to generate discussion rather than a definitive answer. Most
students will pick either emotional intelligence, systems thinker, skillful politician, or
personal integrity. Having students debate their choices can lead to a spirited discussion,
especially between those who picked skillful politician and personal integrity. The key is to
 get students to mink about how these traits relate to being an effective project manager. For
example, personal integrity is important because it leads to trust which facilitates more
effective interaction. Alternatively, being a skilled politician is necessary to deal with
different stakeholders with conflicting agendas. Students should come to the conclusion that
while some traits may be more important than

others, all are important to being an effective project manager.

7. Which of the eight traits/skills associated with being an effective project manager is
the most important to you and why? What do you think is the least important and why?

The following are the eight skills in question:

1. Risk management
2. Leadership
3. Critical Thinking
4. Coordination
5. Team Player Skills
6. Communication
7. Planning
8. Delegation Skills

All of these skills are important for an effective role as a project manager. However,
leadership is probably the most important one. Without it, the team cannot function properly
and chaos ensues. There is no least important skill, however. In the absence of any of the
above skills, a manager cannot be effective as they are lacking in a particular area and this
has the likelihood to hurt their performance and effectiveness.

Chap 11: Managing Project Team - page 394

1. What are the differences between the five- stage model of team development and the
punctuated equilibrium model?

The five stage model progresses from forming, storming, norming to performing and it
concludes by adjourning once the project is ending. The equilibrium model starts with
 forming and norming combined and then moves into a period of low performance, then
storming, high performance, and adjournment when project is ending.

2. What are the elements of an effective project vision? Why are they important?

There are four key elements to an effective vision. First, the vision must make strategic sense.
Second, one must be able to communicate it to others. Third, the project leader must have a
personal passion to achieve it. Finally, the vision should inspire others to give optimal effort.
The vision must make strategic sense, otherwise others will not see it as appropriate or
realistic. One must be able to communicate the vision to others so that they understand it and
choose to pursue it. The project manager must have a passion to achieve the vision so that it
is seen as being credible and has the full support of the project manager. Finally, visions
motivate superior performance and therefore must be a source of inspiration to others.

First, the essential qualities of the vision must be able to be communicated. This is important
because the vision has to be communicated in order for others to help bring the vision to life.
Next, the vision must be challenging but still realistic. This is important because, if the vision
isn't realistic it won't be pursued and if too simple it won't draw people in and inspire them.
Third, the project manager must believe in the project. This is important because this will
draw others in and give it credibility. Finally, it needs to be a source of inspiration to others.
This is important because in order to get the performance needed from the team they need to
be inspired by the vision.

3. Why should a project manager emphasize group rewards over individual rewards?

Because most project work is a collaborative effort, it makes sense that the reward system
encourages teamwork. Recognizing individuals can distract from team unity. Because project
work is interdependent it can be very difficult to distinguish who truly deserves individual
credit. Group cohesion can be undermined if members feel that others are receiving special
treatment. Camaraderie can vanish, to be replaced by bickering and obsessive preoccupation
with internal group politics. Such distractions can absorb a tremendous amount of energy that
would otherwise be directed to completing the project. Individual rewards should only be used
when there is clear agreement that a member deserves special recognition.
4. What is the difference between functional and dysfunctional conflict on a project?

It can be difficult to discern whether a conflict among project members is functional or

dysfunctional. The key is how conflict affects project performance, not how individuals feel.
Members can be upset and dissatisfied with each other, but as long as the conflict enhances
project performance then it is considered functional. Conversely, if the conflict distracts from
project performance by degenerating into personality clashes or creating unnecessary delays in
critical project work, then the conflict is considered dysfunctional.

5. When would it be appropriate to hold a formal team-building session on a project?

Formal team-building sessions should be used whenever it is believed that such activities will
enhance the performance of the project team. This would especially be true at the beginning of a
project when the session would help develop a team identity among a group of strangers.
Likewise, team-building activities could be used to assimilate new project members once the
project is underway. Devoting time and attention to team-building would also be appropriate
when the project team is experiencing problems working together or needs to elevate its
performance to meet new project demands. The sessions would be useful in identifying and
changing dysfunctional behavior as well as re-energizing the team to higher levels of
performance. One mistake project managers make is that they resort to formal team-building
activities after they realize the team is in trouble. lt might be wiser to utilize team-building
sessions earlier to encourage collaboration and to prevent small problems from escalating into
major problems within the team.

6. What are the unique challenges to managing a virtual project team?

There are many challenges associated with managing a spatially separated, virtual team. Two of
the biggest challenges are developing trust within the team and effective communication
patterns. People tend to find it difficult to trust someone whom they have met one or two times
or not at all. Furthermore, unlike when members work side by side and can readily assess the
competence and effort displayed by fellow team members, the actions of distant members are
not visible. Finally, physical separation prohibits informal socializing that contributes to trust
among participants. Reliance on electronic, as opposed to direct communication, can be
problematic. Managers not only have to overcome time zone differences and cross-cultural
variations, but they are missing visual cues that contribute to effective communication.

7. What can a project manager do to avoid some of the pitfalls of a highly cohesive project
team?

First, project managers need to be aware that there is a potential downside to a highly
cohesive team and be able to recognize the symptoms associated with the pathologies
described in the chapter. Second, they can take preemptive action to reduce the isolation of
the team by encouraging the maintenance of ties with the rest of the organization as well as
with other project stakeholders. Third, they can personally reinforce the connection between
the project and the mission and policies of the parent organization. They can also encourage
functional conflict and discourage the group from developing a "holier than thou" attitude.
They can also use the nominal group technique to encourage the surfacing of dissenting
opinions. Finally, they can hold formal team-building sessions to identify and eliminate
dysfunctional norms and refocus the team's attention on project objectives.

8. "Trust can actually encourage disagreement and conflict among team members."
Explain why this could be the case.

Team members might have different points of view, but feel comfortable expressing them, which
could lead to an argument due to the conflicting ideas/beliefs. The more trust team members
feel, the more comfortable they'll feel sharing their true thoughts since they do not need the feel
to agree with others in order to impress or befriend them. Since team members will be sharing
more honestly, disagreements are bound to occur. As long as these disagreements are not taken
as personal attacks, the team and the project could benefit from the results.

Chap 12: Outsourcing: Managing Interorganizational Relations

1. Why do firms outsource project work?

The main reasons why firms outsource project work are because it can be done cheaper, faster,
and/or better than if they tried to do it. In many cases firms do not have the technology,
manpower, and know-how to do the work. They also outsource work when their own resources
are not available.
2. How can outsourcing increase the quality of the work performed?
Contractors may possess superior expertise and/or technology that contributes to
higher quality work

3, What are the best practices used by firms to outsource project work?

Establishing well-defined requirements and procedures

Investing in extensive training and interorganizational team-building activities

Establishing conflict management processes before the project begins

Engaging in frequent review on how well the different parties are collaborating

Insisting of co-location of participants when needed

Using fair and incentive-laden contracts

Establishing long term outsourcing relationships with reliable partners.

4.What does the term "escalate" refer to, and why is it essential to project success?

Escalation is a control mechanism for dealing with and resolving problems. The basic principle
is that problems should be resolved at the lowest appropriate level within a set time limit (for
example, 24 hours) or they are "escalated" to the next level of management. This process is
repeated until the problem is resolved. Escalation discourages participants from forcing
concessions by delaying decisions. It empowers people to solve problems. There is no shame in
pushing significant problems up the hierarchy, at the same time management discourages
subordinates from passing up problems that the subordinates should have resolved. Time is
money on the project, and escalation contributes to quick and effective problem solving.

5. Why is the principled negotiation approach recommended for negotiating agreements on

projects?

Project management is not a contest. People on a project are not opponents but allies attempting
to complete a project. For this alliance to work there has to be a degree of trust, cooperation, and
honesty. Principled negotiation is a method for developing win/win solutions while protecting
yourself against those who would take advantage of your forthrightness.
6. What does the acronym BATNA refer to, and why is it important to being a successful
negotiator? BATNA stands for "best alternative to a negotiated agreement." Essentially it
represents the best alternative if you are unable to reach an agreement with the party you are
negotiating with. BATNA reflects how dependent you are on the other party. If you have a
strong BATNA you can walk away from a deal and say "no, unless we work towards a win/win
scenario." If you have a weak BATNA, then you are more likely to have to concede to the
demands of the other party. BATNA is a true benchmark for determining whether you should
accept an agreement.

7. How can a project manager influence customer expectations and perceptions?

According to the met expectations model, customer satisfaction is a function of the extent to
which perceived performance exceeds expectations. Through their interactions with customers,
project managers can influence customers' base expectations (what they expect to get) and
perceptions of performance (what they actually received). The project manager, through
frequent communication, educates clients so that they can make valid judgments as to project
performance and reduces misunderstandings that can lead to disappointment and dissatisfaction.