Project Management Professional (PMP) Exam Prep Course 3 - The Basics of Project Management - Part 1

Slide 1 Organizations and Project Management Looking Glass Development, LLC (303) 663-5402 / (888) 338-7447 4610 S. Ulster St. #150 Denver, CO 80237 information@lookingglassdev.com

Slide 2 Organizations Differentiation vs. Integration The need for specialized areas of expertise (Production, Marketing, Finance, etc.). The level of differentiation hinges on the needs of the organization. The need for coordinated and cross-functional efforts to accomplish organizational tasks. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 3 Organizations Organic 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 4 Organizations A Functional Organization Chief Executive Project Coordinator Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept. Employee 1 Employee 4 Employee 7 Employee 10 Employee 2 Employee 5 Employee 8 Employee 11 Employee 3 Employee 6 Employee 9 Employee 12 Copyright and all rights reserved Looking Glass Development, LLC.

Slide 5 Organizations Potential 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 6 Organizations Potential 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 7 Organizations A Projectized Organization (PBO) Chief Executive Or 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 Project Manager Project Manager Project Manager Copyright and all rights reserved Looking Glass Development, LLC.

Slide 8 Organizations Potential 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.

Slide 9 Organizations Potential Issues with a Projectized Organization Reduction 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 10 Organizations The Matrix Organization Are a blend of Functional and Projectized organizations. 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 11 Organizations A Weak Matrix Organization Chief Executive Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept. Employee 1 Employee 4 Employee 7 Employee 10 Employee 2 Employee 5 Employee 8 Employee 11 Employee 3 Employee 6 Employee 9 Employee 12 Project Coordinator Resources Assigned to a Given Project Copyright and all rights reserved Looking Glass Development, LLC.

Slide 12 Organizations A Balanced Matrix Organization Chief Executive Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept. Employee 1 Employee 4 Employee 7 Employee 10 Employee 2 Employee 5 Employee 8 Employee 11 Employee 3 Employee 6 Employee 9 Project Mgr Resources Assigned to a Given Project Copyright and all rights reserved Looking Glass Development, LLC.

Slide 13 Organizations A Strong Matrix Organization Chief Executive Accounting Dept. Sales Dept. Engineering Dept. Mgr of Project Managers (PMO) Employee 1 Employee 4 Employee 7 Project Mgr 1 Employee 2 Employee 5 Employee 8 Project Mgr 2 Employee 3 Employee 6 Employee 9 Project Mgr 3 Resources Assigned to a Given Project Copyright and all rights reserved Looking Glass Development, LLC.

Slide 14 Organizations Potential 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. Copyright and all rights reserved Looking Glass Development, LLC.

Slide 15 Organizations Potential Issues with a Matrix Organization Project 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. Copyright and all rights reserved Looking Glass Development, LLC.

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.