Project Management Professional (PMP)® Exam Prep Course 3 ... · manager and the other is a project expeditor. How is the expeditor different from the project manager? A. The manager

Project Management Professional (PMP)® Exam Prep

Course 3 - The Basics of Project Management - Part 1

Slide 1

Looking Glass Development, LLC(303) 663-5402 / (888) 338-7447

4610 S. Ulster St. #150 Denver, CO [email protected]

Organizations and Project Management

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Slide 2

Organizations

© Copyright and all rights reserved –Looking Glass Development, LLC.

Differentiation vs. IntegrationThe need for specialized areas ofexpertise (Production,Marketing, Finance, etc.). Thelevel of differentiationhinges on the needs of theorganization.

The need for coordinated andcross-functional efforts to accomplish organizational tasks.

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Slide 3

OrganizationsOrganic or Simple

Small, startup organizations.Every member of the team has multiple roles

and responsibilities.No one in the organization has a project

management title. The project managed by the owner with no

administrative support.Is the weakest organizational structure.


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Slide 4

Organizations


ProjectCoordinator

Accounting Dept.

Chief Executive

Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Employee 12

A Functional Organization

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Slide 5

OrganizationsPotential Advantages of a Functional

Organization Clear reporting relationships.

Highly specialized expertise.

Homogeneous groups.

Drive for technical excellence.

Clear career path.

Creates high quality organizational knowledge within the functional area.


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Slide 6

OrganizationsPotential Issues with a Functional

Organization Conflicting priorities from overlapping projects. Project boundaries limited to discipline. Barrier to customer influence & satisfaction. Employee development opportunities limited. Project Manager is dependent on personal influence.Hierarchical decision and communication processes.Overwork technical issues vs. build to a standard. Fosters part-time roles.


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Slide 7

Organizations


Chief ExecutiveOr Program Mgr.

Project 1 Project 2 Project 3

Accounting Staff Accounting Staff Accounting Staff

Sales Staff Sales Staff Sales Staff

Marketing Staff Marketing Staff Marketing Staff

Engineering Staff Engineering Staff Engineering Staff

A Projectized Organization (PBO)

Project Manager Project Manager Project Manager

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Slide 8

OrganizationsPotential Advantages of a Projectized

Organization Strong project manager role.

Full-time administrative staff clear accountability.

Fosters collocation.

Improves focus.

Cost & performance tracking of projects.

Decision-making based on overall project view.

Customer relationships tied to various projects© Copyright and all rights reserved –

Looking Glass Development, LLC.

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Slide 9

OrganizationsPotential Issues with a Projectized

OrganizationReduction of employee’s professional identity.Reduced focus on technical competence.Leadership by the non-technically skilled.Focus on administrative work vs. technical work.De-valuing of functional managers.Process vs. deliverable emphasis.Creates redundancy of efforts.Project end can be traumatic event.


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Slide 10

OrganizationsThe Matrix Organization

Are a blend of Functional and Projectizedorganizations.

They are described as WEAK if they more closely align to Functional Organizations.

They are described as STRONG if they more closely align to Projectized Organizations.


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Slide 11

Organizations


A Weak Matrix OrganizationChief Executive

Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Employee 12

ProjectCoordinator Resources Assigned to a Given Project

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Slide 12

Organizations


A Balanced Matrix OrganizationChief Executive

Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Project Mgr

Resources Assigned to a Given Project

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Slide 13

Organizations


A Strong Matrix OrganizationChief Executive

AccountingDept.

SalesDept.

EngineeringDept.

Mgr of ProjectManagers (PMO)

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Project Mgr 1

Project Mgr 2

Project Mgr 3

Resources Assigned to a Given Project

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Slide 14

OrganizationsPotential Advantages of a Matrix

Organization Visibility to project objectives. Improved control of resources by project managers. Rapid response to contingencies.Greater support from functional managers. Coordination of efforts across organization. Project end is not a traumatic event. Strong technical base.More effective dissemination of information.


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Slide 15

OrganizationsPotential Issues with a Matrix

OrganizationProject personnel report to more than one boss.Complex to monitor and control.Conflicts with resource allocation and project

priorities.Potential for duplication of effort with

“independent” projects.Power struggles and competition for scarce

resources.


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Slide 16

Organizations


Weak Matrix

Balanced Matrix

Strong Matrix

Organizational Structures

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Review Questions:

1. In what type of organization does the project manager have little or no authority? A. Functional B. Weak matrix C. Balanced matrix D. Projectized

2. In what type of organization is the functional manager likely to maintain project

budget control? A. Weak matrix B. Balanced matrix C. Strong matrix D. Projectized

3. In that type of organization does each employee have one clear superior and is

grouped by specialty such as sales, marketing, engineering, accounting, etc.? A. Projectized B. Balanced matrix C. Weak matrix D. Functional

4. In what type of organization is the project coordinator likely to be a part-time

position with almost no administrative support? A. Balanced matrix B. Weak matrix C. Functional D. Projectized

5. In what type of organization is the project manager likely to have a variety of

possible budgetary control models? A. Functional B. Balanced matrix C. Projectized D. Any of the above

6. Sally is a frustrated project coordinator. All of her resources split their time between operational responsibility and project work. It seems she can only get about 10% to 15% of their time. She also has very limited authority, and has very little administrative support. In what kind of organization does Sally work?

A. Functional B. Weak matrix C. Balanced matrix D. Strong matrix

7. Kevin is a full-time project manager within his organization. He gets some

administrative support, but really has to fight to get time from his resources because of his low level of authority. In what type of organization does Kevin work?

A. Weak matrix B. Balanced matrix C. Strong matrix D. Projectized

8. Ann is new to her company, the XYZ Widget Co. She really likes her job because

although she has to interface with functional managers, she has a high degree of authority within the company, can quickly get the resources she needs, and gets a lot of administrative support. In what kind of organization does Ann work?

A. Functional B. Balanced matrix C. Strong matrix D. Projectized

9. Jim is a project manager within the ABC Company. Within his organization there

are departments but these groups provide support services to the various projects. In what kind of organization does Jim work?

A. Functional B. Balanced matrix C. Strong matrix D. Projectized

10. The project manager’s role in a weak matrix organization is most like what?

A. A true project manager B. A project sponsor C. A coordinator D. A functional manager

11. The term used to describe most modern organizations that use multiple organizational structures is what?

A. Composite organization B. Balanced Matrix C. Projectized D. Functional

12. In which of the following organization types can a PMO not exist?

A. Functional B. Balanced matrix C. Composite D. A PMO may exist in any organization type

13. A project manager takes a job with a new firm. He has little experience and will

be working in a matrix organization. Based upon his situation he should expect communication with his stakeholders to be:

A. Complex B. Formal and written C. Formal and verbal D. Informal and written

14. A very seasoned project manager leaves a position in an organization that was

highly projectized for a job in an organization that is a balanced matrix. His new manager is very senior in the organization. Based on this information, he can expect communication to be:

A. Complex B. Less structured C. More structured D. Easy

15. A project coordinator takes a new position and she is concerned about the

amount of work it will take to communicate with all the stakeholders. The organization employs more than 30,000 people in 12 different locations. Her project team is a strong matrix organization. In her previous job her resources were projectized. As a general rule, what can she expect the communication to be?

A. Complex B. Simple C. More structured D. Hard to automate

16. Two project managers in a weak matrix organization argue over which of them is more senior. Eventually they determine that one of them is actually a project manager and the other is a project expeditor. How is the expeditor different from the project manager?

A. The manager cannot spend money B. The expeditor cannot make decisions C. The manager reports to a higher level authority D. The expeditor can spend money

17. A project manager comments to their spouse about how frustrated they are at

work. Everyone is telling their resources what to do. In a functionally organized firm who can formally direct project resources?

A. The functional manager B. The project sponsor C. The senior manager D. All of the above

18. Two project managers are discussing how frustrated they are with their projects

because of the number of people who provide direction to their project resources. In a matrix organization, who can direct project resources?

A. The project manager B. The functional manager C. The project sponsor D. All of the above

19. Sam is talking to Sally about his new job. As he describes his position he

concludes that although he is called a project manager he is actually a project coordinator. Sally comments that he’s doing better than her because she’s a project expeditor. Which of the following most accurately describes the difference between a project expeditor and a project coordinator?

A. The project coordinator cannot make more decisions B. The project coordinator can make more decisions C. The project expeditor reports to a higher level manager D. The project expeditor has more authority

20. A project manager is trying to complete a complicated COTS software project but is struggling to get enough attention to complete the required work. Most of the resources needed are focused on completing operational work and the project manager doesn’t have authority to shift their focus or assign other resources. In which type of organization must the project manager be working?

A. A functional organization B. A technical matrix organization C. An operational matrix organization D. A weak matrix organization

21. Cathy is a new project manager with very little real experience. She’s been

assigned to lead a project for which her boss feels she’s perfectly suited. Her organization is a matrix organization. Based on these characteristics she should expect communications to be:

A. Simple B. Mostly verbal C. Mostly automated and written D. Complex

22. Ralph is currently leading a project in the planning phase when two key

stakeholders come to him and ask for an explanation of the development methodology being used on the project. They are specifically interested in where it came from and how it differs from the methodology being used on most of the projects being done within the organization. As Ralph explains the methodology, the stakeholders become nervous about a number of new terms he uses (which they are unfamiliar with) and how this new methodology will impact the organization. They stakeholders are long-time associates of Ralph’s. What should he do?

A. Ask the stakeholders to trust him as they are long-time associates B. Supply the stakeholders with a glossary of terms for the new methodology C. Notify the PMO of the stakeholders’ concerns D. Advise the stakeholders that he will keep them informed regularly on the

project

23. A young project manager has just been assigned to his second project even though he has yet to complete his first project. The first project is relatively small and both the project manager and his boss believe the project manager has the capacity to manage both efforts at the same time. However, as time passes the second project begins to grow significantly in scope and the project manager quickly comes to believe he needs help. In talking about the situation with his peers, the project manager learns a similar project was completed 18 months prior. What should the project manager do?

A. Wait to see if the second project continues to grow in scope B. Make sure the scope is agreed to by all stakeholders C. Obtain the historical records and guidance from the project management

office (PMO) D. Contact the project manager from the previous project for guidance

24. A project manager gets assigned to a manufacturing effort for a new product and

gathers their team to begin work. Although the team has worked together on previous efforts they struggle to create the project charter. Which of the following best describes the real problem?

A. Constraints and assumptions have not been defined B. The project deadline has not been set C. They have not identified the project objectives D. They are working on an operation and not a project

25. The previous project manager for your project did her work without much formal

organization. There is little management control and there are no clearly defined deliverables. Which of the following would be the best choice for getting the project better organized?

A. Define the project methodology B. Adopt a lifecycle approach to the project C. Develop specific work plans for each work package D. Develop a description of the product of the project

26. The project cycle differs from the product life cycle in that the project life cycle:

A. Does not incorporate a methodology B. Is different for each industry C. Can spawn many projects. D. Describes project management activities

27. You are a Project Manager leading a large project within a manufacturing organization that is matrixed. One day one of your resources approaches you and states that she does not know which of her several assignments for different projects is most important. Who should determine the priorities between projects in the organization?

A. The project management office (PMO) B. The project manager C. The project team D. The project management team

Answer Key:

1. A Answer A. PMBOK® Guide – Although a weak matrix provides a project manager with limited authority, only the functional organization provides the project manager with little or no authority. Remember, according to PMI the project manager is a very powerful position.

2. A Answer A. PMBOK® Guide – According to PMI, the project manager has a very powerful role. As the organization gets closer to a projectized organization, the PM gains more influence. The organization in which they have the least authority is the weak matrix, and this is where the functional manager has budgetary authority.

3. D Answer D. PMBOK® Guide – In a functional organization, people are organized based upon the job they perform. These silos provide the basis for power within the organization. Project managers in such organizations have very little authority.

4. C Answer C. PMBOK® Guide – The key to this question is the fact that the role is called a coordinator, is part-time and has no administrative support. A coordinator who had a little administrative support would have been a weak matrix, but as it is represented in this question, it is a functional organization.

5. B Answer B. PMBOK® Guide – Only in a balanced matrix organization are there mixed models of budgetary control.

6. B Answer B. PMBOK® Guide – Sally works in a weak matrix organization. The keys to this question are the facts that she gets some administrative support (even though it is not much) and she does have a little authority. If not for these two differences she would be in a functional organization.

7. B Answer B. PMBOK® Guide – The fact that Kevin is full time tells you that he does not work in a weak matrix organization. The fact that he has a low level of authority tells you he does not work in a strong matrix or projectized organization. Only the balanced matrix organization meets such criteria.

8. C Answer C. PMBOK® Guide – The key to this question is the fact that functional managers still exist in Ann’s organization. Without this difference she could be in a projectized organization.

9. D Answer D. PMBOK® Guide – Only in a projectized organization are there departments that either report directly to the project manager or provide support services to the various projects.

10. C Answer C. PMBOK® Guide – Weak matrix organizations maintain many of the characteristics of a functional organization. The project manager’s role is more like a coordinator or expediter than a manager.

11. A Answer A. PMBOK® Guide – Most modern organizations involve all of the structural types to one degree or another at their various levels. These organizations are called composite organizations.

12. D Answer D. PMBOK® Guide – A PMO can exist in any of the organizational structures—including a functional organization. However, the more the organization moves towards a projectized organization, the more likely a PMO becomes.

13. A Answer A. PMBOK® Guide p.28 – This is a tricky question because much of the information is unnecessary to correctly answer it. The only piece of information necessary to answer this question is the fact that the organization is a matrix. In matrix organizations communication is complex because of the importance placed on communicating with the many power structures.

14. A Answer A. PMBOK® Guide p.28 – This is a tricky question because much of the information is unnecessary to correctly answer it. The only piece of information necessary to answer this question is the fact that the new organization is a balanced matrix. In matrix organizations communication is complex because of the importance placed on communicating with the many power structures.

15. A Answer A. PMBOK® Guide p.28 – This is a tricky question because much of the information is unnecessary to correctly answer it. The only piece of information necessary to answer this question is the fact that the new organization is a strong matrix. In matrix organizations communication is complex because of the importance placed on communicating with the many power structures.

16. B Answer B. PMBOK® Guide p.28 – A project expeditor has no authority to make decisions or spend money. Typically a true project manager can make decisions and often reports to a higher-level authority, but this is not guaranteed.

17. A Answer A. PMBOK® Guide p.28 – In a functional organization, the functional manager has the power to direct resources. The project manager must use influence to get the functional manager to direct the resources necessary to achieve project tasks.

18. D Answer D. PMBOK® Guide p.28 – In a matrix organization, either the functional manager, project manager or a sponsor could have the power to direct resources.

19. B Answer B. The project coordinator can typically make more decisions than an expeditor. They also usually have more authority and report to a higher level manager than the expeditor.

20. A Answer A. This is an example of a functional organization because the project manager does not have any power to shift resources that are focused on operational activities.

21. D Answer D. Matrix organizations increase the complexity of communications. This question has little to do with the amount of experience the project manager has. Additionally, it is not possible to tell if the communication would be written or verbal with the information given.

22. C Answer C. Many students believe this is an unfair or trick question. It is not. It represents a fairly common type of question on the exam. The key to remember here is that although you might do several of the items listed, you would do one of them first. The very first thing to be done is notify the PMO because they are the keepers of the organization’s project management policies, procedures and methodologies.

23. C Answer C. The concept of continuous improvement is very important to PMI®. A key element to continuous improvement is keeping of historical records for just such a situation as this. Although the project manager might do several of these items, the very first thing they should do is review the historical records from past similar projects.

24. D Answer D. Read the question carefully. Did you notice the question describes an operation? Operations are not managed the same way as projects. Attempting to do so is what is causing the problem.

25. B Answer B. Don’t be tempted to select “developing a work plan” for each work package. Although this would help control each phase, it would do nothing for the integration of the phases. Answer B is the only option that both improves the scope of the project and the integration.

26. B Answer B. The project life cycle does incorporate a methodology—for doing the work. It is the product life cycle that spawns many projects. Project management activities are described in the project management process. The project life cycle is different for each industry, so that is the correct answer.

27. A Answer A. Because this question deals with multiple projects, the only answer that can be correct is the project management office or PMO. A PMO deals with multiple projects.

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Project Management Professional (PMP)® Exam Prep Course 3 ... · manager and the other is a project expeditor. How is the expeditor different from the project manager? A. The manager