_____ provides managers with continuous feedback so that when plans are not carried out properly, managers can take steps to correct the problem. |
Control |
_____ involves the use of pricing mechanisms and exchange relations to regulate activities in organizations as though they were economic transactions. |
Market control |
_____ does not assume that the interests of the organization and individuals naturally diverge. |
Clan control |
_____ are designed to measure progress toward set performance goals, and if necessary, to apply corrective measures to ensure that performance meets objectives. |
Bureaucratic control systems |
In computer-controlled production technology, the strategy of _____ is more efficient because deviations are controlled closer to their source. |
operator control |
Which of the following stages of budgetary control involves dealing with identifying what is being accomplished and comparing the results with expectancies? taking action establishing expectancies performing budgetary operations estimating sales charting a broad plan for the company |
performing budgetary operations |
The _____ budget is used for the cost of fixed assets like plants and equipment. |
capital |
_____ starts with the assumption that organizations are collections of people performing many different but related activities to satisfy customer needs. |
Activity-based costing |
The _____ shows the financial picture of a company at a given time. |
balance sheet |
_____ refers to limiting measures to functional or departmental responsibilities rather than the organization’s overall objectives. |
Provincialism |
_____ is a process wherein managers control work by dividing and simplifying tasks. |
Scientific management |
Which of the following actions is recommended for managing in an empowered world? |
Incentive systems should reinforce teamwork. |
_____ are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance. |
Standards |
Policies restricting workplace romance, tattoos and body art, and public disclosure of corporate information are examples of _____ control. |
feedforward |
_____ control focuses on the use of information about results to correct deviations from the acceptable standard after they arise. |
Feedback |
Required information for preparing a _____ budget includes types and capabilities of machines and availability of materials. |
production |
The _____ is an itemized financial statement of the income and expenses of a company’s operations. |
profit and loss statement |
_____ motivates people and provides information that enables them to correct their own deviations from performance standards. |
Feedback |
A _____ refers to a control system combining four sets of performance measures: financial, customer, business process, and learning and growth. |
balanced scorecard |
A(n) _____ is the charge by one unit in the organization for a good or service that it supplies to another unit of the same organization. |
transfer price |
Control |
Any process that directs the activities of individuals toward the achievement of organizational goals |
Bureaucratic Control |
The uses of rules, regulations, and authority to guide performance Includes: Items as budgets, statistical, reports, and performance appraisals to regulate behavior and results |
Market Control |
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations Involves: The use of prices, competition, and exchange relationships to regulate activities in organization as though they were economic transactions |
Clan Control |
Control based on the norms, values, shared goals, and trust among group members In other words: It is based on the idea that employees many share the values, expectations, and goals of the organization and act in accordance with them |
4 Steps in Control |
1. Setting performance standards 2. Measuring performance 3. Comparing performance against the standards and determining deviations 4. Taking action to correct problems and reinforce successes |
Setting Performance Standards |
Every organization has goals: profitability, innovation, satisfaction of customers and employees, a standard is the level of expected performance for a given goal. Four characteristics for successful goals: Quantity Quality Time Used Cost |
Measuring Performance |
Control process is to measure performance levels. Example: Manager can count units produced, days absent, papers filed, samples distributed, and dollars earned. Three resources: Written Reports Oral Reports (two way communication) Personal Observation |
Comparing Performance with the Standard |
The manager evaluates the performance |
Taking Action to Correct Problems and Reinforce Successes |
Last steps in control process is to take appropriate action when there are significant deviations. This step insures that operations are adjusted to achieve the planned result |
Feedforward Control |
The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly |
Budgeting |
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling |
Balance Sheet |
A repot that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders equity |
Standard |
Expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. |
Concurrent Control |
"Now" plans that are being carried out currently. |
Management Audit |
An evaluation of effectiveness and efficiency of various systems within an organization. |
External Audit |
an evaluation conducted by one organization such as a CPA firm, on another. |
Activity-Based Costing |
a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities. |
Can only tell the past, not the future. |
Control |
Return on Investment (ROI) |
A ratio of profit to capital used, or a rate of return from capital. |
Management Myopia |
Focusing on short-term earnings and profits at the expense of long-term strategic obligations. |
Bureaucratic Control Downfall |
1. Rigid Bureaucratic Behavior- rule you must follow 2. Tatical Behavior 3. Resistance |
Balanced Scorecard |
Control system combining four sets of performing measures: Financial Customer Business Process Learning and Growth |
Multitasking |
Not a good way to get things done. It is just Noise. |
Rumors Going Around |
Not letting people use emails for personal use will NOT work. |
Feedback Control |
Focuses on the use of information about results to correct deviations from the acceptable standard after they arise. |
Benchmarking |
is the process of comparing one’s business processes and performance metrics to industry bests or best practices from other companies. Dimensions typically measured are quality, time and cost. |
The _____ states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard. |
principle of exception |
Control based on the use of pricing mechanisms and economic information is referred to as: |
market control. |
_____ is the amount accruing to the corporation’s owners. |
Stockholders’ equity |
_____ show the relative amount of funds in the business supplied by creditors and shareholders. |
Leverage ratios |
_____ refers to the situation when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations. |
Management myopia |
The most common liquidity ratio is current assets to current liabilities, known as the: |
current ratio. |
An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n): |
management audit. |
The last step in a typical control system is: |
taking action to correct problems. |
Which of the following is the second stage of budgetary control? |
Performing budgetary operations |
The use of rules, regulations, and authority to guide performance is referred to as _____ control. |
bureaucratic |
_____ are the values of the various items the corporation owns. |
Assets |
Control based on the norms, values, shared goals, and trust among group members is referred to as: |
clan control. |
Which of the following relationships is true? |
Assets = Liabilities + Stockholders’ equity |
_____ indicates the company’s ability to meet its long-term financial obligations. |
Debt-equity ratio |
Which of the following budgets is used for areas of the organization that incur expenses but no revenue? |
Cost budget |
Market controls involve the use of: |
economic standards. |
Which of the following is a definition of control? |
It is any process that directs the activities of individuals toward the achievement of organizational goals. |
The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n): |
transfer price |
Which of the following is the first step in a typical control system? |
Setting performance standards |
Control and _____ have been called the Siamese twins of management. |
planning |
_____ control involves the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions. |
Market |
A company is said to lack _____ when there is an absence of policies and a lack of periodic reviews. |
control |
Which type of bureaucratic control takes place while plans are being carried out? |
Concurrent control |
When employees feel forced to attempt to "beat the system," their behavior is known as: |
tactical behavior. |
Any process that directs the activities of individuals toward the achievement of organizational goals |
control |
Control Systems have 4 steps: |
1. setting performance standards 2. measuring performance 3. comparing performance 4. taking action to correct problems |
An evaluation conducted by one organization, such as a CPA firm, on another. |
external audit |
A periodic assessment of a company’s own planning, organizing, leading, and controlling processes |
internal audit |
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences |
budgeting |
usually prepared by month, sales area, and product. |
sales budget |
is expressed in physical units. |
production budget |
is used for areas of the organization that incur expenses, but bring in no revenue, such as accounting, HR, Legal, etc. |
cost budget |
is prepared after all other budget estimates are completed. |
cash budget |
is used for the cost of fixed assets such as plant and equipment. |
capital budget |
includes all major activities of the business. |
master budget |
Procedures used to verify accounting reports and statements. |
accounting audits |
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities |
activity-based costing (ABC) |
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity. |
balance sheet |
The amounts a corporation owes to various creditors |
liabilities |
An itemized financial statement of the income and expenses of a company’s operations |
profit and loss statement |
A ratio of profit to capital used, or a rate of return from capital |
return on investment (ROI) |
Control system combining four sets of performance measures: financial, customer, business process, and learning and growth |
balanced scorecard |
control that focuses on the use of information about previous results to correct deviations from the acceptable standard. |
feedback control |
the control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly |
feedforward control |
he process of finding out what’s being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences. |
budgetary control |
Jane, an employee, received an e-mail from an angry client about a certain product. Although it was not Jane’s fault, she hesitated to report it to her manager because she knew that she would be blamed for it and could even be fired. Based on this scenario, which of the following is true of Jane’s company? |
"Shoot the messenger" management exists, implying a lack of control |
At a town hall meeting, the CEO of a company spoke energetically about adopting cost-cutting measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had gone on an exotic vacation using funds from the company. Which of the following is true about this company? |
Senior managers set a bad example, implying a lack of control |
_____ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results. |
bureaucratic |
_____ control involves the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions. |
market |
The level of expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed is referred to as a(n): |
standard |
_____ is the process of comparing a firm’s practices and technologies with those of other organizations. |
benchmarking |
Jennifer, a manager, is in charge of production at Nanosystems, Inc. Part of her job is to ensure that the components for surgical devices are extremely accurate. In fact, it is important that they are perfectly produced. When Jennifer concentrates on the significant deviations from established standards, she is using the: |
principle of exception |
At Precision Instruments Corp., a rule has been made instructing all assembly workers to arrive early for their shift in order to wear specialized gear because the products are very sensitive to external particles. These products are assembled in a controlled environment. This requirement reflects _______ control. |
Feedforward |
Which type of control is future oriented and aims to prevent problems before they arise? |
Feedforward control |
Which of the following statements is true regarding Six Sigma? |
It indicates how often defects in a process are likely to occur |
The Six Sigma approach is based on _____ that contribute(s) to customer satisfaction. |
statistical analysis |
Which of the following is a use of external audits? |
Identifying possible mergers or acquisitions |
Kate is the financial manager at Flavors Inc., a lollipop manufacturer. One of her duties is to make a budget that shows the anticipated receipts and expenditures of the company. The budget also shows the amount of working capital available and the extent to which outside financing may be required. Kate makes this budget after all other budget estimates have been completed. Which of the following types of budget is Kate currently working on? |
cash budget |
Max Inc. has started a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as: |
activity-based costing |
_____ indicate(s) a company’s ability to pay short-term debts. |
liquidity ratio |
Catherine has recently reviewed a number of indicators of financial control. The one that troubled her indicated that the company could have trouble meeting its short-term financial obligations. Which of the following was she concerned about? |
current ratio |
current ratio |
liquidity ratio |
A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities is referred to as the: |
current ratio |
_____ indicate management’s ability to generate a financial return on sales or investment. |
profitability ratios |
A company enforced a rule that employees were required to submit their cell phones for safekeeping before entering their work bay. Employees followed the rule in order to avoid getting into trouble with the management. As a result, many of them missed important phone calls from their clients/customers. This scenario is an example of: |
rigid bureaucratic behavior |
When a control system prompts employees to do only tasks required in their formal job descriptions, it is causing: |
rigid bureaucratic behavior |
Carlos noticed a pattern at the annual budgeting session of his company. Mid-level managers were asking for unrealistically high budgets while top management was attempting to limit budgets under last year’s actual expenditures. The management’s strategies are referred to as: |
tactical behaviors |
Which of the following is a reason why employees resist control systems? |
Control systems can change the power structure of the organization |
To be effective, control systems must: |
use multiple approaches |
In order to gain employee acceptance of useful performance standards, a manager can: |
set standards that employees view as possible to achieve |
The use of market control mechanisms has been criticized by those who believe that: |
economic measures do not adequately reflect the complete value of an organization |
Traditionally, boards have tried to control CEO performance mainly through: |
incentive pay |
Empowerment is important in organizations today because: |
the nature of management has changed |
Which of the following is recommended for managing in an empowered setting? |
Reinforce responsiveness and teamwork |
Which of the following is true of managing in an empowered world? |
Team performance and adding value to the customer should be emphasized |
control |
any process that directs the activities of individuals toward the achievement of organizational goals |
Lax top management; control issue |
Senior managers do not emphasize or value the need for controls, or they set a bad example. |
Absence of policies; control issue |
the firm’s expectations are not established in writing. |
Lack of agreed-upon standards; control issue |
Organization members are unclear about what needs to be achieved. |
"Shoot the messenger" management; control issue |
Employees feel their careers would be at risk if they reported bad news. |
Lack of periodic reviews; control issue |
Managers do not assess performance on a regular, timely basis. |
bad information systems; control issue |
Key data are not measured and reported in a timely and easily accessible way. |
Lack of ethics in the culture; control issue |
Organization members have not internalized a commitment to integr |
Bureaucratic control |
is the use of rules, standards, regulations, hierarchy, and legitimate authority to guide performance. It works best where tasks are certain and workers are independent. |
Bureaucratic control |
budgets, statistical reports, and performance appraisals to regulate behavior and results are examples of what type of control? |
Market control |
the use of prices, competition, and exchange relationships to regulate activities in organizations as though they were economic transactions Managers who run these units may be evaluated on the basis of profit and loss |
market control |
Business units may be treated as profit centers and trade resources (services or goods) with one another via what mechanism? |
tangible output |
Market control is most effective where ______ _________ be identified and a market can be established between the parties to be controlled. |
Clan control |
unlike market and bureatic control; it does not assume that the interests of the organization and individuals naturally diverge. Instead it is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. |
clan |
When members of an organization have common values and goals—and trust one another—formal controls may be less necessary. Which type of control does this describe? |
interpersonal processes |
Clan control is based on ________ ____________ of organization culture, leadership, and groups and teams. It works best where there is no "one best way" to do a job and employees are empowered to make decisions. |
Bureaucratic (or formal) control systems |
designed to measure progress toward set performance goals and, if necessary, to apply corrective measures to ensure that performance achieves managers’ objectives. |
detect _____correct |
Control systems _______ and ______+_significant variations, or discrepancies, in the results of planned activities. |
1Setting performance standards. 2.Measuring performance. 3.Comparing performance against the standards and determining deviations. 4.Taking action to correct problems and reinforce successes. |
what are the four major step of a typical control system? |
1. quanity |
what are the common measures of performance standards? |
1.Writtten reports |
Performance data commonly are obtained from three sources: |
Writtten reports |
Computer printouts and on-screen reports. Thanks to computers’ data-gathering and analysis capabilities and decreasing costs, companies of any size can gather huge amounts of performance data. |
Oral reports |
allow two-way communication. When a salesperson contacts his or her supervisor each evening to report the day’s accomplishments, problems, and customer reactions, the manager can ask questions to gain additional information or clear up any misunderstandings. When necessary, tentative corrective actions can be worked out during the discussion. |
involves going to the area where activities take place and watching what is occurring. The manager can directly observe work methods, employees’ nonverbal signals, and the general operation. disadvantages: It does not provide accurate quantitative data; the information usually is general and subjective. Also, employees can misunderstand the purpose of personal observation as mistrust or lack of confidence. |
personal observation |
principle of exception |
: a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard |
Specialist control |
—Operators of computer numerical control (CNC) machines must notify engineering specialists of malfunctions. With this traditional division of labor, the specialist takes corrective action. |
Operator control |
Multiskilled operators can rectify their own problems as they occur. This strategy is more efficient because deviations are controlled closer to their source. It is also more satisfying because operators benefit by having a more enriched job. |
Feedforward control Concurrent control takes place while plans are being carried out. It includes directing, monitoring, and fine-tuning activities as they occur. 3. Feedback control focuses on the use of information about results to correct deviations from the acceptable standard after they arise. |
Bureaucratic control combines what three approaches, that aredefined according to their timing? |
Feedforward control |
takes place BEFORE operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly. Examples include inspection of raw materials and proper selection and training of employees. |
Concurrent control |
takes place WHILE plans are being carried out. It includes directing, monitoring, and fine-tuning activities as they occur. |
Feedback control |
the use of information about results to correct deviations from the acceptable standard AFTER they arise. |
Management audit |
<b>Def</b>: an evaluation of the effectiveness and efficiency of various systems within an organization |
external audit |
an evaluation conducted by one organization, such as a CPA firm, on another |
Budgetary control |
the process of finding out what’s being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences |
budgeting |
the process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called <em>budgetary |
Sales budget. |
include forecasts of sales by month, sales area, and product. |
Production budget. |
commonly is expressed in physical units. Required information for preparing this budget includes types and capacities of machines, economic quantities to produce, and availability of materials. |
Cash budget. |
essential to every business. It should be prepared after all other budget estimates are completed. It shows the anticipated receipts and expenditures, the amount of working capital available, the extent to which outside financing may be required, and the periods and amounts of cash available. |
Capital budget |
used for the cost of fixed assets like plants and equipment. Such costs are usually treated not as regular expenses but as investments because of their long-term nature and importance to the organization’s productivity. |
Master budget |
includes all the major activities of the business. It brings together and coordinates all the activities of the other budgets and can be thought of as a "budget of budgets." |
accounting audits |
procedures used to verify accounting reports and statements |
activity-based costing (ABC) |
a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities |
1.Assets are the values of the various items the corporation owns. 2.Liabilities are the amounts the corporation owes to various creditors. 3.Stockholders’ equity is the amount accruing to the corporation’s owners. |
The balance sheet shows the financial picture of a company at a given time. This statement itemizes three elements: |
1.Assets |
the values of the various items the corporation owns. |
Liabilities |
the amounts the corporation owes to various creditors. |
Stockholders’ equity |
the amount accruing to the corporation’s owners. |
balance sheet |
a report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity |
ASSETS = LIABILITES + STOCKHOLDERS EQUITY |
What is the relationship between liebailities, stockholders equity and assets? |
profit and loss statement |
an itemized financial statement of the income and expenses of a company’s operations |
Liquidity ratios |
indicate a company’s ability to pay short-term debts. |
assets, liabilities |
The most common liquidity ratio is current____ to current _______, called the current ratio or net working capital ratio. |
current ratio |
a liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities; 2 to 1 desirable min |
Leverage ratios |
show the relative amount of funds in the business supplied by creditors and shareholders |
debt-equity ratio |
a leverage ratio that indicates the company’s ability to meet its long-term financial obligations. debt less than 1.5 is considered not to be exccessive |
Profitability ratios |
indicate management’s ability to generate a financial return on sales or investment |
Return on investment (ROI) |
a ratio of profit to capital used, or a rate of return from capita |
100 |
For every customer who explicitly complains to you, how many will just go away without saying anything? |
Customer defections, |
the proportion of customers who no longer do business with you because of dissatisfaction, are a way to help determine customer satisfaction with your company. |
Financial |
What four indicators does the balanced scorecard use to give managers a quick overview of how the organization is doing |
Lowers morale |
What are the three dangers associated with bureaucratic control? |
All about rules, regulations, and authority |
What is bureaucratic control (pg. 326)? |
Balance sheet- a report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity |
What’s the difference between a balance sheet and an income statement |
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities |
What is activity based costing (or activity based accounting) |
1. Top leadership set the standard. |
If top leadership determines that a certain manufacturing line should produce 1000 units of product per day, but the line operator can only produce 700 units per day, how would you use the control process to analyze this and remedy the deviation? |
Establish performance standards |
The four main steps in the control process are listed on pages |
Control processes |
__________are necessary to determine when the organization isn’t performing to standards so that corrective action can take place before too much damage occurs. |
To adapt to change & uncertainty |
the 6 main reasons why control processes are necessary are as follows: |
benchmarking |
The purpose is to systematically manage the process improvements of project delivery by a single organization over a period of time. Analysis and evaluation of practices Project office established |
client acceptance |
Argues that projects are developed with customers, or clients, in mind, and their purpose is to satisfy customers’ needs. Requires project managers and teams to create an atmosphere of openness and communication throughout the development of the project. |
clients |
Can be either internal to the organization or external. Expect that the project being developed on their behalf will work as expected. Customers. |
budget |
The approved estimate for the project or any work breakdown structure component or any schedule activity. A limitation of projects. A second key constraint for all projects. A key in determining project efficiency. |
deliverables |
Any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project. |
performance |
All projects developed in order to adhere to some initially determined technical specifications. We know before we begin what the project is supposed to do or how the final product is supposed to operate. |
process |
Ongoing, day-to-day activities in which an organization engages while producing goods or services. Uses existing systems, properties, and capabilities in a continuous, fairly repetitive manner. |
project |
A temporary endeavor undertaken to create a unique product, service, or result. A unique venture with a beginning and end, conducted by people to meet established goals within parameters of cost, schedule, and quality. Goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree, unique. Can be considered to be any series of activities and tasks that: -have a specific objective to be completed within certain specifications -have defined start and end dates -have funding limits (if applicable) -consume human and nonhuman resources (i.e., money, people, equipment) -are multifunctional (i.e., cut across several functional lines) Organized work toward a predefined goal or objective that requires resources and effort, a unique (and therefore risky) venture having a budget and schedule. |
project life cycle |
A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project. Can be documented with a methodology. |
project management |
The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. |
project management maturity models |
Used to allow organizations to benchmark the best practices of successful project management firms. Recognize that different organizations are currently at different levels of sophistication in their best practices for managing projects. 1. Center for Business Practices 2. Kerzner’s Project Management Maturity Model 3. ESI International’s Project Framework 4. SEI’s Capability Maturity Model Integration |
project success |
Must take into consideration the elements that define the very nature of a project: that is, time (schedule adherence), budget, functionality/quality, and customer satisfaction. Three criteria: 1. time 2. budget 3. performance |
stakeholders |
Important organizational contributors |
time |
The first constraint that governs project management involves the basic requirement: the project should come in on or before its established schedule. Projects are constrained by a specified time frame during which they must be completed. They are not supposed to continue indefinitely. |
triple constraint |
Once the standard by which project performance was routinely assessed. 1. time 2. budget 3. performance |
culture |
The solution to external and internal problems that has worked consistently for a group and that is therefore taught to new members as the correct way to perceive, think about, and feel in relation to these problems. Influences the manner in which employees commit themselves to the goals of their projects as opposed to other, potentially competing goals. The collective oer shared learning of a group, and it influences how that group is likely to respond in different situations. |
escalation of commitment |
Occurs when, in spite of evidence identifying a project as failing, no longer necessary, or beset by huge technical or or other difficulties, organizations continue to support it past the point an objective viewpoint would suggest that it should be terminated. |
external environment |
Consists of all forces or groups outside the organization that have the potential to affect the organization. |
functional structure |
The most common organizational type used in business today. The logic is to group people and departments performing similar activities into units. It is common to create departments such as accounting, marketing, or research and development. Members routinely work on multiple projects or support multiple product lines simultaneously. |
heavyweight project organization |
The belief that organizations can sometimes gain tremendous benefits from creating a fully dedicated project organization. Based on the notion that successful project organizations do not happen by chance or luck. Measured steps in design and operating philosophy are needed to get to the top and remain there. In these organizations, the project manager is given full authority, status, and responsibility to ensure project success. |
intervenor groups |
Any environmental, political, social, community-activist, or consumer groups that can have a positive or negatived effect on the project’s development and successful launch. |
matrix organization |
Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project. |
matrix structure |
A combination of functional and project activities, that seeks a balance between the functional organization and the pure project form. |
objectives |
Something toward which work is to be directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. |
organizational culture |
The third key contextual variable in how project are managed effectively. Unique characteristics of an organization. The manner in which each organization develops its own outlook, operating policies and procedures, patterns of thinking, attitudes, and norms of behavior. The unique method for indoctrinatingemployees, responding to environmental threats and opportunities, and supporting or discouraging operating behaviors. |
organizational structure |
Designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors. Identifies the grouping together of individuals into departments and departments into the total organization. Includes the design of systems to ensure effective communication, coordination, and integration of effort across departments. |
program |
A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. May include elements of related work outside of the scope of the discrete projects. |
project management office |
PMO An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities can range from providing project management support functions to actually being responsible for the direct management of a project. |
project organizations |
Organizations that are set up with their exclusive focus aimed at running projects. Each project is a self-contained business unit with a dedicated project team. The firm assigns resources from functional pools directly to the project for the time period they are needed. The project manager has sole control over the resources the unit uses. |
project stakeholders |
All individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development. |
project structure |
The project manager does not occupy a subordinate role. All major decisions and authority remain under the control of the project manager. The functional structure and its potential for siloing or communication problems are bypassed. Communication improves across the organization and within the project team. Decision making is speeded up. Project decisions can occur quickly, without lengthy delays. |
resources |
Raw materials, personnel, and anything needed by the project team in order to complete a project. |
stakeholder analysis |
A useful tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation and introduction of any new project. Consists of formulating strategies to identify and, if necessary, manage for positive results the impact of stakeholders on the project. |
strategic management |
The science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Consists of developing vision statements and missions statements; formulating, implementing, and evaluating; making cross-functional decisions; and achieving objectives. |
strong matrix |
A project matrix. The balance of power has shifted in favor of the project manager. The project manager controls most of the project activities and functions, including the assignment and control of project resources, and has key decision-making authority. Functional managers have some input into the assignment of personnel from their departments, their role is mostly consultative. The closest to a "project organization" mentality that we can get while working within a matrix environment. |
technology |
The conversion process of an organization, whereby it tranforms inputs into outputs. |
weak matrix |
The functional matrix. Functional departments maintain control over their resources and are responsible for managing their components of the project. The project manager’s role is to coordinate the activities of the functional departments, typically as an administrator. The project manager is expected to prepare schedules, update project status, and serve as the link between the departments with thei different project deliverables, but does not have direct authority to control resources or make significant decisions alone. |
analytical hierarchy process (AHP) |
Developed by Dr. Thomas Saaty to address many of the technical and managerial problems frequently associated with decision making through scoring models. Four-step process. Step 1. Constructing a hierarchy of criteria and subcriteria. Step 2. Allocating weights to previously developed criteria and, where necessary, splitting overall criterion weight among subcriteria. Step 3. Use the pairwise comparison process to assign numerical values to the dimensions of our evaluation scale. Step 4. Multiply the numeric evaluation of the project by the weights assigned to the evaluation criteria and then add the results for all criteria. |
checklist |
A list of criteria that pertain to our choice of projects, and then applying them to different possible projects. |
discounted cash flow method (DCF) |
Based on the principle of the time value of money. The goal is to estimate cash outlays and expected cash inflows resulting from investment in a project. All potential costs of development are assessed and projected prior to the decision to initiate the project. They are then compared with all expected sources of revenue from the project. |
discounted payback method |
The time period in which we are interested is the length of time until the sum of the discounted cash flows is equal to the initial investment. Allows us to make a more "intelligent" determination of the length of time needed to satisfy the initial project investment. More representative of the financial realities that all organizations must consider when pursuing projects. |
efficient frontier |
The set of project portfolio options that offers either a maximum return for every given level of risk or the minimum risk for every level of return. Serves as a decision-making guide by establishing the threshold level of risk/return options that all future project choices must be evaluated against. |
internal rate of return (IRR) |
An alternative method for evaluating the expected outlays and income associated with a new project investment opportunity. Found through a straightforward process, although it requires tables representing present value of an annuity in order to determine the project’s rate of return. |
lead time |
The amount of time it takes to bring a new product, service, etc. to market. |
net present value method (NPV) |
The most popular financial decision-making approach in project selection. Projects the change in the firm’s value if a project is undertaken. Positive means the firm will make money. Employs discounted cash flow analysis, discounting future streams of income to estimate the present value of money. |
nonnumeric models |
Does not employ numbers as decision inputs, relying on other data. |
numeric models |
Seek to use numbers as inputs for the decision process involved in selecting projects. The values can be derived either objectively or subjectively; that is, we may employ objective, esternal values or subjective, internal values. |
pairwise comparison approach |
Every criterion is compared with every other criterion. Allows managers to focus on a series of relatively simple exchanges, two criteria at a time. |
payback period |
The estimated amount of time that will be necessary to recoup the investment in a project, that is, how long it will take for the project to pay back its initial budget and being to generate positive cash flow for the company. |
present value of money |
Must be discounted by some factor the farther out into the future I expect to receive it. The value of money as it is today. |
profile models |
Allow managers to plot risk/return options for various alternatives and then select the project that maximizes return while staying within a certain range of minimum acceptable risk. Offers another way of evaluating, screening, and comparing projects. |
project portfolio |
The set of projects that an organization is undertaking at any given time. |
project portfolio management |
The systematic process of selecting, supporting, and managing a firm’s collection of projects. Projects are managed concurrently under a single umbrella and may be either related or independing of one another. |
project screening model |
Generates useful informatoin for project choices in a timely and useful fashion at an acceptable cost. |
required rate of return (RRR) |
The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project. |
risk/return |
The trade off which an investor faces between risk and return while considering investment decisions is called the risk return trade off. Definition: Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return. |
simplified scoring model |
Each criterion is ranked according to its relative importance. |
time value of money |
Suggests that money earned today is worth more than money we expect to earn in the future. |
baseline |
An approved plan for a project, plus or minus approved changes. Compared to actual performance to determine if performance is within acceptable variance thresholds. |
conceptual development |
The process that addresses project objectives by finding the best ways to meet them. The project management team must collect data and develop several pieces of information. |
configuration management |
A subsytem of the overall project management system. It is collection of formal documented procedures used to apply technical and administrative direction and surveillance to identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each charge and its implementation status; and support the audit of the products, results, or components to verify conformance to requirements. It includes the documentation, tracking systems, and defind approval levels necessary for authorizing and controlling changes. |
control systems |
Vital to ensure that any changes to the project baseline are conducted in a systematic and thorough manner. |
cost control accounts |
Assignable to various units engaged in performing project activities within the company. |
cost-plus contracts |
Which fix the company’s profit for a project in advance. |
milestone |
A significant point or event in the project. |
organization breakdown structure (OBS) |
Allows companies to define the work to be accomplished and assign it to the owners of thw work packages. The budgets for these activities are then directly assigned to the departmental accounts responsible for the project work. |
project closeout |
Project’s conclusion. Requires project managers to consider the types of records and reports they and their clients will require at the completion of the project. |
project scope |
The work that must be performed to deliver a product, service, or result with the specified features and functions. |
responsibility assignment matrix (RAM) |
A structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of the project’s scope of work is assigned to a person or team. |
scope baseline |
An approved specific version of the detailed scope statement, work breakdown structure (WBS), and its associated WBS dictionary. |
scope management |
Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. |
scope reporting |
Determines the types of informatoin that will be regularly reported, who will receive copies of this information, and how this information will be acquired and disseminated. |
scope statement |
The narrative description of the project scope, including major deliverables, project assumptions, project constraints, and a description of work, that provides a documented basis for making future project decisions and for confirming or developing a common understanding of project scope among the stakeholders. |
statement of work (SOW) |
A narrative description of products, services, or results to be supplied. |
turnkey contracts |
The project organization assumes all responsibility for successful performance. |
WBS codes |
Codes assigned to each activity to allocate costs more precisely, in order to track the activities that are over or under budget, and to maintain financial control of the development process. |
work authorization |
A permission and direction, typically written, to being work on a specific schedule activity or work package or control account. It is a method for sanctioning project work to ensure that the work is done by the identified organization, at the right time, and in the proper sequence. |
work breakdown structure (WBS) |
A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope of the project. |
work package |
A deliverable or project work component at the lowest level of each branch of the work breakdown structure. |
analysis of probability and consequences |
Presents a generic methodology that can be applied to multiple project environments and encompasses the key components of project risk managmenet. |
change management |
Part of risk mitigation strategies, requiring a useful documentation system that all partners in the project can access. Any strategy aimed at minimizing a project risk factor, along with the member of the project team responsible for any action, must be clearly identified. |
commercial risk |
For projects that have been developed for a definite commercial intent (profitability), a constant unknown is their degree of commercial success once they have been introduced into the marketplace. An uncertainty that companies may willingly accept, given that it is virtually impossible to accurately predict customer acceptance of a new product or service venture. |
contingency reserves |
Among the most common methods to mitigate project risks. Defined as the specific provision for unforeseen elements of cost within the defined project scope. Viewed differently, depending upon the type of project undertaken and the organization that initiates it. |
contractual or legal risk |
Often consistent with projects in which strict terms and conditions are drawn up in advance. Many forms of contracted terms result in a significant degree of project risk. Companies naturally seek to limit their legal exposure through legal protection, but it is sometimes impossible to pass along contractual risk to other parties. |
control and documentation |
Methods that help managers classify and codify the various risks the firm faces, its responses to these risks, and the outcome of its response strategies. |
cross-training |
Another method for mitigating risks, so that personnel are capable of filling in for each other in the case of unforseen circumstances. Requires that members of the project team leanr not only their own duties but also the roles that other team members are expected to perform. |
execution risk |
The specific unknowns related to the execution of the project plan. A broad category that seeks to assess any unique circumstances or uncertainties that could have a negative impact on execution of the plan. |
financial risk |
The financial exposure a firm opens itself to when developing a project. |
fixed-price contracts |
Establish a firm, fixed price for the project upfront; should the project’s budget begin to slip, the project organization must bear the full cost of these overruns. |
liquidated damages |
Represent project penalty clauses that kick in at mutually agree-on points in the project’s development and implementation. |
managerial contingency |
Budget safety measures that address higher-level risks. Used as a reserve against just such a problem. Used to offset potentially disastrous "acts of God," which are natural disasters that, by definition, are unforseeable and highly disruptive. |
mentoring |
Junior or inexperienced project personnel are paired with senior managers in order to help them learn best practices. The goal is to help ease new project personnel into their duties by giving them a formal contact who can help clarify problems, suggest solutions, and monitor them as they develop project skills. |
project risk |
Includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project. |
project risk analysis and management (PRAM) |
Presents a generic methodology that can be applied to multiple project environments and encompasses the key components of project risk management. The ultimate benefit is that they present a systematic alternative to ad hoc approaches to risk assessment, and hence can help organizations that may not have a clearly developed, comprehensive process for risk management and are instead locked into one or two aspects. Offers a step-by-step approach to creating a comprehensive and logically sequenced method for analyzing and addressing project risk. |
risk identification |
Strategy that begins by creating a classification scheme for likely risks. These risks fall into one or more of the following classification clusters: 1. financial risk 2. technical risk 3. commercial risk 4. execution risk 5. contractual or legal risk |
risk management |
Includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project. |
risk mitigation strategies |
A risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold. There are four possible alternatives a project organization can adopt in deciding how to address risks: 1. accept risk 2. minimize risk 3. share risk 4. transfer risk |
task contingency |
The most common form of contingency reserve. Used to offset budget cutbacks, schedule overruns, or other unforseen circumstances accruing to individual tasks or project work packages. A method for offsetting the project team’s inability to make an accurate budget estimate. |
technical risk |
When new projects contain unique technical elements or unproven technology. |
activity (also called task) |
A component of work performed during the course of a project. |
activity-on-arrow (AOA) |
Method for constructing activity networks. Represents the task, or activity. Demonstrate the logical sequencing from node to node through the network. |
activity-on-node (AON) |
Method for constructing activity networks. Signifies an event market that suggests the completion of one activity and the potential to start the next. Represents an activity. |
arrow |
The task or activity and demonstrates the logical sequencing from node to node through the network. |
backward pass |
The calculation of late finish dates and late start dates for the uncompleted portions of all schedule activities. Determined by working backwards through the schedule network logic from the project’s end date. |
beta distribution |
Probability distributions that are asymmetrical, suggesting we recognize that certain events are less likely to occur than others. |
burst activity |
An activity with two or more immediate successor activities (tasks flowing out from it). Can be located by doing a backward pass through the network. |
concurrent activities |
The nature of the work allows for more than one activity to be accomplished at the same time. Parallel project activity paths are constructed through the network. |
confidence interval |
Provides the highest reasonable probability of being accurate. |
crashing |
A specific type of project schedule compression technique performed by taking action to decrease the total project schdule duration after analyzing a number of alternatives to determine how to get the maximum schedule duration compression for the least additional cost. Typical approaches include reducing schedule activity durations and increasing the assignment of resources on schedule activities. |
critical path |
Generally, the sequence of schedule activities that determines the duration of the project. It is the longest path through the project. |
critical path method (CPM) |
A schedule network analysis technique used to determine the amount of scheduling flexibility (the amount of float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. Early start and finish dates are calculated by means of a forward pass, using a specified start date. Late finish and start dates are calculated by means of a backward pass, starting from a specified completion date, which sometiems is the project early finish date determined during the forward pass calculation. |
duration estimation |
The process of estimating the length of each activity for each step in the project. Can be done through experience, expert opinion, or mathematical derivation. |
early start date (ES) |
In the critical path method, the earliest possible point in time on which the uncompleted portions of a schedule activity (or the project) can start, based on the schedule network logic, the data date, and any schedule constraints. Can change as the project progresses and as changes are made to the project management plan. |
event |
A point when an activity is either started or completed. Often used in conjunction with AOA networks, events consume no resources and have no time to completion associated with them. |
float (also called slack) |
Also called slack. The amount of time that a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities. |
forward pass |
The calculation of the early start and early finish dates for the uncompleted portions of all network activities. |
hammock activities |
Can be used as summaries for some subsets of the activities identified in the overall project network. |
laddering activities |
A technique that allows us to redraw the activity network to more closely sequence project subtasks to make the overall network sequence more efficient. The overall effect is to streamline the linkage and sequencing between activities and keep our project resources fully employed. |
late start date (LS) |
In the critical path method, the latest possible point in time that a schedule activity may begin based upon the schedule network logic, the project completion date, and any constraints assigned to the schedule activities without violating a schedule constraint or delaying the project completion date. The late start dates are determined during the backward pass calculation of the project schedule network. |
merge activity |
An activity with two or more immediate predecessors (tasks flowing into it). Merge activities can be located by doing a forward pass through the network. |
network diagram |
Any schematic display of the logical relationships among the project schedule activities. Always drawn from left to right to reflect project work chronology. |
node |
One of the defining points of a schedule network; a junction point joined to some or all of the other dependency lines. |
ordered activity |
Illustrates the scheduling goal. |
path |
A sequence of activities defined by the project network logic. |
predecessors |
Those activities that must be completed prior to initiation of a later activity in the network. |
program evaluation and review technique (PERT) |
A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. |
project network diagram (PND) |
Any schematic display of the logical relationships among the project schedule activities. Always drawn from left to right to reflect project work chonology. |
project planning |
The identification of the project objectives and the ordered activity necessary to complete the project, including the identification of resource types and quantities required to carry out each activity or task. |
resource-limited schedule |
A project whose start and finish dates reflect expected resource availability. |
scope |
The sum of the products, services, and results to be provided as a project. |
serial activities |
Activities that flow from one to the next, in sequence. |
slack (also called float) |
Also called float. |
successors |
The schedule activity that follows a predecessor activyt, as determined by their logical relationship. |
task (see activity) |
A component of work performed during the course of a project. |
variance (activity and project) |
A quantifiable deviation, departure, or divergence away from a known baseline or expected value. |
brook’s law |
A claim about software project management according to which "adding manpower to a late software project makes it later. |
dummy activities |
Used in AOA networks to indicate the existence of precedent relationships between activities and their event nodes. They do not have any work or time values assigned to them. They are employed when we wish to indicate a logical dependency such that one activity cannot start before another has been completed, but the activities do not lie on the same path through the network. Usually represented as dashed or dotted lines and may or may not be assigned their own identified. |
fast-tracking |
A specific project schedule compression technique that changes network logic to overlap phases that would normally be done in sequence, such as the design phase and construction phase, or to perform schedule activities in parallel. |
gantt chart |
A graphic display of schedule-related information. In the typical bar chart, schedule activities or work breakdown structure components are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. |
lag |
A modification of a logical relationship that directs a delay in the successor activity. For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor activity has finished. |
What document is created to begin a project? |
The Charter |
What is the purpose of a project charter? |
To authorize the project. |
Which project organizations use a dedicated project team? |
Strong matrix and a pure project |
Organizational Culture |
A system of shared norms, beliefs, values, and assumptions held by an organization’s members. |
Payback |
The time it takes to paybck the project investment (investment/net annual savings). The method does not consider the time value of money or the life of the investment. |
Prioritization |
It is the process used to select projects. The system uses selected criteria for evaluating and selecting projects that are strongly linked to higher-level strategies and objectives. |
Program |
A group of related projects designed to accomplish a common goal over an extended period of time. |
Project |
A complex, non-routine, one-time effort to create a product or service limited by time, budget, and specifications. |
What items make up the triple constraint? |
Time, cost, and performance. |
What five stages of a project make up the project life cycle? |
Initiation, planning, execution, monitoring and control, and close out. |
Project Stakeholders |
Individuals and organizations that are actively involved in the project, or whose interest may be positively or negatively affected as a result of project execution or completion. They may also exert influence over the project and its results. |
Virtual Project Team |
Spatially separated project team whose members are unable to communicate face to face. Communication is usually by electronic means. |
Who controls the resources in a functional and weak matrix organization? |
The functional manager. |
Project Milestone |
A significant event in the project and associated date. |
Agile project management was created for what type of projects? |
Ones that require innovation and collaboration to be successful. |
Assumptions |
Conditions for planning purposes that are assumed to be true. |
Project Constraints |
A factor that will limit the project management team’s options. There are rules or regulations you must follow. For example, a predefined budget is a constraint that may limit the team’s scope, staffing, and schedule options. |
Project Deliverables |
Any tangible outcome that is produced by the project. These can be documents, plans, computer systems, buildings, aircraft, etc. Internal deliverables are produced as a consequence of executing the project, and are usually only needed by the project team. External deliverables are those that are created for customers and stakeholders. |
Project objectives are found on the charter and on the scope. What are these items? |
An end you seek to create or acquire. Should be specific, measurable, realistic, assignable, and include a time frame for accomplishment. In other words, what are the overarching reasons for doing the project? |
Finish this statement: A scope statement is: |
A definition of the end result or mission of a project. Scope statements typically include project objectives, deliverables, milestones, specifications, and limits and exclusions. |
Work Package |
A generic term for a unit within a work breakdown structure (WBS) at the lowest level of its branch, not necessarily at the lowest level of the whole WBS. It may be used to refer to a unit of work performed within the organization, while ‘Commitment Package’ may be used for work contracted or purchased outside the organization. |
WBS |
A hierarchical method that successively subdivides the work of the project into smaller detail. |
Instead of basing a project off of a WBS as traditional project management does, agile project management uses what to define the project? |
Key stakeholder requirements and project stories. |
Project Owner |
The customer, client, or internal department or group for whom a project is performed and who will, in effect own, the completed project deliverables. |
Project Resources |
Any person, groups, skill, material, equipment, or working capital used to accomplish a task, work package, or activity. |
Slack |
The amount of time an activity can be delayed without delaying the finish of the project. |
Project Activities |
A component of work performed during the course of a project. |
The forward pass calculates which values on a project? |
The early start and early finish values. |
Predecessor |
Those activities that must be completed prior to the start of a later activity. |
How is project crashing accomplished? |
By adding more resources to the project to speed up the schedule. |
Four types of Schedule Predecessors |
Mandatory, Discretionary, Internal, and External. |
Iteration |
A planned grouping of work usually one or two weeks in length used in agile project management. |
The longest path of activities in a project is known as the: |
Critical path |
PERT |
Program Evaluation and Review Technique – a event and probability based network analysis technique |
Where do the project stories come from in agile project management? |
From the requirements of the key stakeholders. |
Crash Costs |
The direct cost associated with reducing durations. |
Crash Time |
The shortest time an activity can be completed (assuming a reasonable level of resources). |
Risk Qualification |
Prioritize Risks |
Risk Identification |
Use Delphi and SWOT |
Risk Management Planning |
Determine Methodology |
Control Risks |
Risk Audits |
Risk Quantification |
Refine Risks |
Plan Risk Responses |
Avoid, Transfer, Mitigate |
Transfer |
Hire contractors |
Mitigate |
Risk might happen |
Active Acceptance |
Create contingency plan |
Avoid |
Risk will not happen |
Passive Acceptance |
Do Nothing |
Resource Leveling |
Techniques used to smooth resource usage, resolving resource over-allocations or when resources are only available at certain times by delaying activities. Leveling may cause the critical path(s) to change. |
Splitting as used in Project Management |
A scheduling technique in which work is interrupted on one activity and the resource is assigned to another activity for a period of time, then reassigned to work on the original activity. |
Project Cost Duration Graph |
A graph that plots project cost against time; it includes direct, indirect, and total cost for a project over a relevant range of time. |
Resource Constraint |
These constraints occur because of the absence or shortage of resources, either in quantity or resource type needed (e.g. senior software developers). |
Resource Constrained Project |
A project that assumes resources are limited (fixed) and therefore time is variable. |
What type of project organizations do agile projects typically use? |
Pure project or strong matrix |
Cost Account |
A cost account defines what work is to be performed, who will perform it and who is to pay for it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Another term for Cost Account is Control Account. |
Project Cost Control |
The processes of gathering, accumulating, analyzing, reporting, and managing the costs on an on-going basis. Includes project procedures, project cost changes, monitoring actual versus budget, variance analysis, integrated cost/schedule reporting, progress analysis, and corrective action. |
Direct Costs |
Costs that are clearly charged to a specific work package-usually labor, materials, or equipment. |
Indirect Costs to a Project |
Costs that cannot be traced to a particular project or work package or can be shared amongst two or more projects. |
Overhead Costs to a Project |
These are typically organization costs not directly linked to a specific project. These costs cover general expenses such as upper management, legal, market promotion, and accounting. Overhead costs are usually charged per unit of time or as a percent of labor or material costs. |
Top-Down |
Usually given by senior management |
Heuristic |
Rule of thumb |
Parametric |
Something per something |
Bottom-Up |
Done by performing individual |
3 Point |
Not ever been done before |
OBS |
The project’s organization chart. |
RAM |
A chart that depicts who does what on a project. |
Functional conflict |
Conflict which helps further the objectives of the project. |
Project Kick off meeting |
Typically the first meeting of the project team. |
co-location |
All members of a project are located in the same area. |
What is the purpose of a morning stand up meeting? |
To review the work of the day and any anticipated issues. |
Withdrawal |
Avoid the issue |
Forcing |
My way only |
Smoothing |
Empathize the positives |
Collaboration |
Finding a consensus to solve the issue |
Compromise |
Requiring the party to give up something |
Confrontation |
Finding the root cause of the issue and solving it. |
360 degree feeback |
A multi-rater appraisal system based on performance information that is gathered from multiple sources (superiors, peers, subordinates, customers). |
Joint Evaluation |
A process in which different parties involved in a project evaluate how well they work together. |
Project Lessons Learned |
The project team’s learning from the project. Usually defined during close out. |
Outsourcing |
Contracting for the use of external sources (skills) to assist in implementing a project. |
Project Audit Report |
A report that includes classification of the project, analysis of gathered information, recommendations, lessons learned, and an appendix of backup information. |
Project Audit |
A formal inquiry into the progress, results, or some other aspect of a project or system. |
Team Audit |
Evaluating the performance of the project team using a minimum core of conditions in place before the project began. Evaluation practices should emphasize the team as a whole, while minimizing individual performance. |
CV |
EV – AC |
SPI |
EV / PV |
CPI |
EV / AC |
SV |
EV – PV |
SPI < 1 |
Project is behind schedule. |
CPI > 1 |
Project is under budget. |
SPI = 1 |
Project is on schedule. |
CPI < 1 |
Project is over budget. |
SPI > 1 |
Project is ahead of schedule. |
CPI = 1 |
Project is on budget. |
Formal: Written |
Contracts |
Formal: Verbal |
Presentation to Senior VP |
Informal: Written |
E-mails |
Informal: Verbal |
Meetings |
Which document is created during the initiation phase of a project? |
The project charter. |
The purpose of a project charter is to: |
authorize the project. |
Project deliverables are created in the _____, which is completed during the _____ phase of a project. |
scope; planning |
Which statement is an example of a project constraint? |
We must get permits before we start work. |
The longest continuous path of activities from beginning to end on a project describes the: |
critical path |
Hammock activities are used to do which of the following? |
Summarize duration and cost information on related activities. |
In which process of risk management is the risk register initially created? |
Identify risks |
A risk matrix is used in _____ to ____. A risk register is a _____. |
qualitative risk analysis; prioritize risks; list of risks |
Compare and contrast the project charter and the project scope as used in project management. |
Both the project charter and the project scope are two important documents in the process of project management. There are some similarities, such as information that is included within the documents, but there are many differences, such as the length and detail of each document. It is important to understand how and when each document is used, as well as the purpose of each document with the context of project management. To begin with, a project charter is a document that is used in the Initiation Phase of a project. The main purpose is to put forth a document that is the basis for the project authorization. Like the scope statement, it contains a Project Description and Project Product, the Product Deliverables, Objectives, User Acceptance Criteria, High-level Project Assumptions, High-level Project Constraints, and Exclusions. For these items, the main difference is that in the charter, the information included is not as detailed and is more of a summation of each of these sections. Additionally, the charter includes the Business Need, Milestones, Major Risks, Key Stakeholders, Project Manager Authority Level, Project Core Team, and the Subject Matter Experts. The purpose of this combination of information, is to provide a document which summarizes the overall project, the budget as identified by the client, the description of what the anticipated outcome is to be, issues that may come up during the project, and the main individuals involved in the project. By providing this document, it is a means of securing authorization for the work. At this stage, the client would review the information and approve the work, signing the contract for the project management team or company to begin the planning stages. The project scope, however, is a much more detailed document, which allows the project team, and the client, to have a better feel for how much the project will actually cost by also including detailed item information, known as technical requirements, which, for example, could include a list of materials that are needed and their costs. The acceptance criteria is also much more detailed, including specific items that are needed inorder for the project to be a success. The criteria could include permit requirements, items that are needed for proper licensing, etc. One major difference between the charter and the scope is that the project includes the Statement of Work, which, in no uncertain terms, lists everything that is to be included with delivery of the completed project. The purpose of this item is to avoid miscommunication between the project team and the client in regards to what is the expected outcome. Items could include who is responsible for securing financing, who will be ordering the materials, etc. Instructor Explanation: A project charter authorizes the project. It is an official document created and approved by the key stakeholders after the project idea has been identified. It is developed by the corporate executive or sponsor and defines the responsibilities and boundaries of the project manager and the project. The scope statement is the document that references the scope of work for the project, what the project must produce, and the project deliverables. It is used for future decision making on the project. It defines the project. It is developed by the project manager along with the project team. |
You are a project manager for a new hardware/software project. You just received the project charter and established your scope statement. Within the scope statement, you defined some of the key components to meet the overall project objective. Establishing requirements will be critical to define and get approved. The hardware will be new for your company, so you will need to ensure the vendor is selected and the hardware is appropriately installed into your environment. The supporting software will need to be designed and coded. It will also need to be installed and tested on the system. To ensure the users know how to use the new software, training will be needed for managers and the associates. You have assembled your team of experts and they are anxious to get started. Part 1: To ensure you have a clear scope for your team, create a 2-level WBS. Don’t forget to include your WBS numbering. (15 points) Part 2: In your WBS, how many work packages have been created? (5 points) |
Part 1: 1. Hardware/Software Project 1.1 Establish Requirements 1.1.1 Review Project 1.1.2 List and Define Project Requirements 1.1.3 Review and Team Approval of Project Requirements 1.1.4 Submit Requirements for Client Approval Requirements Complete 1.2 Obtain Vendor for Hardware Supplies 1.2.1 Research Possible Hardware Suppliers 1.2.2 Compare Customer Service for Supplier 1.2.3 Compare Pricing and Availability of Materials Needed 1.2.4 Choose Vendor for Hardware Supplies Vendor Selection Complete 1.3 Obtain Hardware 1.3.1 Select Appropriate Hardware 1.3.2 Order Chosen Hardware 1.3.3 Confirm Proper Hardware Upon Delivery Hardware Complete 1.4 Select Hardware Installation Team 1.4.1 Research Possible Hardware Experts for Hardware Installation from Staff 1.4.2 Review Credentials and Compare to Technical Requirements 1.4.3 Develop Installation Team Hardware Installation Team Complete 1.5 Implement Hardware Installation and Testing 1.5.1 Deliver Hardware to the Installation Team 1.5.2 Being Installation 1.5.3 Run and Test Hardware Hardware Installation and Testing Complete 1.6 Obtain Programmer(s) 1.6.1 Research Staff for Team of Programmers 1.6.2 Review Credentials Against Technical Requirements for Software 1.6.3 Develop Team of Programmers Programmer Selection Complete 1.7 Begin Design, Coding, and Testing of Software 1.7.1 Deliver Requirements to Programmer 1.7.2 Begin Designing Software 1.7.3 Review and Approve Design 1.7.4 Begin Coding of Software 1.7.5 Review, Test, and Approve Coding 1.7.6 Run Final Testing of Software Software Complete 1.8 Implement Training 1.8.1 Develop Team to Develop and Implement Training for Users 1.8.2 Design Training Program 1.8.3 Review and Approve Training Program 1.8.4 Implement Training Program 1.8.5 Ensure User Knowledge of New Software/Hardware Training Complete Part 2. As I understand the defining of a work package, it is the lowest level within a WBS. Therefore, I have created 31 work packages. |
Compare and contrast crashing and fast tracking as a means of schedule compression. |
The purpose of schedule compression is to reduce the amount of time spent on a project, without damaging the resulting outcome. Two method of doing this are crashing or fast tracking. There are similarities between the two, as in the desired outcome is similar. However, the methods of reaching that outcome are very different. With crashing, the project manager and sometimes the team reviews the benefits of adding on additional expenses against the benefits of having a new deadline for the outcome. In otherwords, is it better to meet the original deadline by paying more for or purchasing more materials, such as paying for expedited shippping; or is it better for everyone involved if a new deadline is proposed. The goal here is to find balance between deadlines and costs. Fast tracking, on the other hand, is possible when all the needed resources are readily available. In this method, phases and tasks are completed at the same time, instead of one after another. That being said, this method increases the chance of the occurrance of errors, mistakes, and miscommunication. The multiple teams that are required with this type of plan eliminates the possibility of review of previous tasks and assignments. It also makes it more difficult to status updates, as there are various teams and various tasks being completed at the same time. Instructor Explanation: Fast tracking: Arranging tasks on the critical path in parallel form so that they can be performed at the same time, or concurrently, rather than sequentially. Activities on the critical path are connected by predecessors. These predecessors set the order in which critical activities get accomplished. Crashing: Adding more resources like labor and equipment, either internally or subcontracted, to shorten tasks on the critical path at greater cost to cover the expense of the added resources. Remember, when crashing a project, to focus only on critical activities or near-critical path activities and remember that the project’s cost will always rise when crashing a project. |
A firm stores data for other organizations. The company stores data across many states, providing backup data storage for state, municipal governments, and large corporations. The firm is deploying a new set of storage devices that are faster, denser, and more energy efficient. Part 1: List and discuss the major risk management functions from a project management perspective for the new data storage project. (15 points) Part 2: Describe a positive and a negative risk event, the related consequences, and the risk response plan for each of the two risks for the new data storage project. (5 points) |
Part 1: The student must discuss the following: · risk management planning; · identify risks; · qualitative risk analysis; · quantitative risk analysis; · plan risk responses; and · control risks. Part 2: The student must describe a positive and a negative risk event, its consequences to the project, and appropriate risk responses. Week 4 Lecture |
Compare and contrast how a scope is created in traditional project management versus one created in agile project management. |
In traditional project management, creating a scope statement involves many steps. The first step is that the project charter has to be written and then approved. Once this is done, the data and information from the project charter is expanded upon to be included in the scope statement. There is a specific order that the information needs to be written as well as a specific order in how the work is to be done. The scheduling process follows the scope statement not only as the next step in a project, but also as a way to detail exactly what steps are to be taken when in the project. The scope statement predicates and dictates the schedule of a project. There is very little wiggle room. Basically, in traditional project management, the team sticks to the plan that is made, changing only if disaster strikes. The leader is chosen at the beginning of the process and is somewhat of a dictator. Orders come from overhead and not the other way around. In agile project management, the team is very involved in the process, and they are consulted in the process of developing any documents necessary, including the scope. Instead of the team leader dictating everything, tasks, plans, assignments, schedules, etc., are developed as a result of the team, in its entirety, and the leader working together to find the best fit for everyone involved. The scope and the schedule are very flexible, and can be changed as it is very adaptable, as are the team and the team leader. Instructor Explanation: Both agile and traditional begin the development of a scope by gathering key stakeholder requirements. In traditional project management, the focus is on completing the project on time and on budget and to the customer-required scope. Thus, a detailed scope is required before work can begin. In agile project management, the focus is on value, not time, scope, and costs. An agile project does not have a typical scope or typical deliverables either. Instead, the scope is created as the project progresses so that the only time a detailed scope exists is at the end of the project. |
Control |
Any process that directs the activities of individuals toward the achievement of organizational goals |
Bureaucratic control |
The use of rules, regulations, and authority to guide performance |
Market control |
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations |
Clan control |
Control based on the norms, values, shared goals, and trust among group members. |
Standard |
Expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. |
Principle of exception |
A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard. |
Feedback?Control |
control that focuses on the use of information about previous results to correct deviations from the acceptable standard. |
Concurrent?Control |
is the control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed. |
Feedforward?Control |
the control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly |
Management audit |
An evaluation of the effectiveness and efficiency of various systems within an organization |
External audit |
An evaluation conducted by one organization, such as a CPA firm, on another. |
Internal audit |
A periodic assessment of a company’s own planning, organizing, leading, and controlling processes. |
Budgeting |
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences |
Sales budget |
usually prepared by month, sales area, and product. |
Production budget |
expressed in physical units. |
Cost budget |
is used for areas of the organization that incur expenses, but bring in no revenue, such as accounting, HR, Legal, etc. |
Cash budget |
is prepared after all other budget estimates are completed. |
Capital budget |
is used for the cost of fixed assets such as plant and equipment. |
Master budget |
includes all major activities of the business. |
Accounting audits |
Procedures used to verify accounting reports and statements. |
Activity-based costing (ABC) |
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities |
Balance sheet |
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity. |
Assets |
The values of the various items the corporation owns. |
Liabilities |
The amounts a corporation owes to various creditors |
Stockholders’ equity |
The amount accruing to the corporation’s owners. |
Profit and loss statement |
An itemized financial statement of the income and expenses of a company’s operations |
Current ratio |
A liquidity ratio that indicates the extent to which short term assets can decline and still be adequate to pay short-term liabilities |
Debt-equity ratio |
A leverage ratio that indicates the company’s ability to meet its long-term financial obligations |
Liquidity ratios |
Current and debt-equity ratio |
Profitability ratio |
Return on invesment |
Return on investment (ROI) |
A ratio of profit to capital used, or a rate of return from capital |
Management myopia |
Focusing on short-term earnings and profits at the expense of longer-term strategic obligations. |
Balanced scorecard |
performance measures: financial, customer, business process, and learning and growth |
control |
A company is said to lack _____ when there is an absence of policies and a lack of periodic reviews |
Concurrent control |
Which type of bureaucratic control takes place while plans are being carried out? |
tactical behavior. |
When employees feel forced to attempt to "beat the system," their behavior is known as: |
principle of exception |
The _____ states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard |
concurrent |
The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed is known as _____ control. |
clan control. |
Control based on the norms, values, shared goals, and trust among group members is referred to as: |
Cost budget |
Which of the following budgets is used for areas of the organization that incur expenses but no revenue? |
Debt-equity ratio |
_____ indicates the company’s ability to meet its long-term financial obligations. |
Benchmarking |
_____ is the process of comparing a firm’s practices and technologies with those of other organizations. |
taking action to correct problems. |
The last step in a typical control system is: |
profit and loss statement. |
An itemized financial document of the income and the expenses of a company’s operations is known as the: |
current ratio. |
The most common liquidity ratio is current assets to current liabilities, known as the: |
Leverage ratios |
_____ show the relative amount of funds in the business supplied by creditors and shareholders. |
bureaucratic |
The use of rules, regulations, and authority to guide performance is referred to as _____ control. |
Stockholders’ equity |
_____ is the amount accruing to the corporation’s owners. |
balance sheet. |
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders’ equity is referred to as a(n): |
planning |
Control and _____ have been called the Siamese twins of management. |
external audit. |
An evaluation conducted by one organization of another organization is referred to as a(n): |
transfer price. |
The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n): |
T/F: Task forces, work units, and standing committees are examples of groups rather than teams. |
False |
T/F: For teams to be effective they must be supported by an organizational culture that values collaboration. |
True |
T/F: Team leadership capacity refers to the amount of work a team leader can accomplish in a given period of time. |
False |
T/F: Negotiating support is an example of an internal leadership action. |
False |
A reason for team failure is |
D. All of the above |
In the context of team leadership, requisite variety refers to |
B. When the leader’s behavior matches the complexity of the situation. |
____________________refers to the cohesiveness of the team and the ability of team members to satisfy their own needs while working effectively with other team members. |
B. Team effectiveness |
An example of an external leadership action is |
D. Sharing information |
Task design, team composition, and norms of conduct contribute to which characteristic of team excellence? |
C. Results-driven structure |
Team-based and technology-enabled organizational structures |
B. Are found in organizations with flatter structures |
Which of the following is NOT a criticism of the team leadership approach? |
B. It offers standardized assessments for evaluating people’s ego states |
Teams that are effective have |
B. Greater productivity |
The dynamic power shifting in teams is a definition of |
D. Hierarchy |
For teamwork to be successful in organizations |
D. The culture must support lateral decision making |
Who can perform distributive team leadership functions? |
B. Any team member |
What is an advantage of shared leadership? |
C. There is more cohesion |
What should the team leader continually do to before implementing actions in order to achieve team effectiveness? |
A. Analyze internal and external situations |
Which of Larson & LaFasto’s characteristics of team excellence is associated with Hackman’s "results-driven structure"? |
A. Compelling purpose |
Our team leader outlined the objectives of our new project and identified our expected outcomes. Our leader was using which characteristic of team excellence? |
C. Clear, elevating goal |
Our code of conduct and performance criteria was created by all of us, leader and followers, together. This ties us and helps us stay fully committed to perform at our best. Which characteristic of team excellence is our team displaying? |
B. Standards of excellence |
The principled leadership characteristic of team excellence is central to team effectiveness, influencing the team through four sets of processes. Which is not one of these processes? |
D. Ethical |
The team I am leading is in conflict with one another and has little focus on the project’s goals. I should take |
D. External environmental action |
External environmental leadership actions include |
D. Facilitating decisions |
In the leadership decision-making model what does the leader do first? |
D. Monitor relationships |
T/F: Innovation and creative success is an advantage that effective teams can bring to organizations. |
True |
T/F: Team goals that are very clear help team processing and effectiveness. |
True |
T/F: Flatter organizations support lateral decision making. |
True |
T/F: Most experts describe team leadership is a simple process. |
False |
T/F: Effective team leaders need to have good monitoring, task, and relationship skills. |
True |
Group |
Has a designated strong leader, holds individuals accountable, sets identical purpose for group and organization, has individual work products, runs efficient meetings, measures effectiveness indirectly by influence on business, and discusses, decides and delegates work to individuals. |
Team |
Shares or rotates leadership roles, holds team members accountable to each other, sets specific team vision or purpose, has collective work products, runs meetings that encourage open-ended discussion and problem solving, measures effectiveness directly by assessing collective work, and discusses, decides, and shares work. |
Contributions of Teams |
Creativity, quality, speed, productivity/lower costs, and employee satisfaction. Competitive advantage and higher organizational performance. |
Dysfunction of Teams |
Lack of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results. |
Lack of Trust |
People don’t feel safe to reveal mistakes, share concerns, or express ideas. |
Fear of Conflict |
People go along with others for the sake of harmony and don’t express conflicting opinions. |
Lack of Commitment |
If people are afraid to express their true opinions, its difficult to gain their true commitment to decisions. |
Avoidance of Accountability |
People don’t accept responsibility for outcomes and engage in finger-pointing when things go wrong. |
Inattention to Results |
Members put personal ambition or the needs of their individual departments ahead of collective results. |
Effective Team Characteristics |
Trust, healthy conflict, commitment, accountability, and results orientation. |
Trust |
Members trust one another on a deep emotional level and feel comfortable being vulnerable with one another. |
Healthy Conflict |
Members feel comfortable disagreeing and challenging one another in the interest of finding the best solution. |
Commitment |
Because all ideas are put on the table, people can achieve genuine buy-in around important goals and decisions eventually. |
Accountability |
Members hold one another accountable rather than relying on managers as the source of accountability. |
Results Orientation |
Individual members set aside personal agendas and focus on what is best for the team; collective results define success. |
Work Team Effectiveness |
Productive output, satisfaction of members, and capacity to adapt and learn. |
Effective Team Leadership |
Rally people around a purpose, share power, clarify norms and expectations, and admit ignorance. |
What do effective virtual team leaders do? |
They use technology to build relationships, shape culture through technology, and monitor progress and rewards. |
Use technology to build relationships by… |
…bringing attention to and appreciating diverse skills and opinions, using technology to enhance communication and trust, ensuring timely responses online, and managing online socialization. |
Shape culture through technology by… |
…creating a psychologically safe virtual culture, sharing members’ special experience/strengths, and engaging members from cultures where they may be hesitant to share ideas. |
Monitor progress and rewards by… |
…scrutinizing electronic communication patterns, posting targets and scorecards in virtual work space, and rewarding people through online ceremonies and recognition. |
Socioemotional Role |
Encouraging, harmonizing, reducing tension, following, and compromising. |
Task Specialist Role |
Initiating ideas, giving opinions, seeking information, summarizing, and energizing. |
Five Stages of Team Development |
Forming, storming, norming, performing, and adjourning. |
Forming |
Orientation, breaking the ice. |
Storming |
Conflict, disagreement. |
Norming |
Establishment of order and cohesion. |
Performing |
Cooperation, problem solving. |
Adjourning |
Task completion. |
Four Ways Team Norms Develop |
Critical events in team’s history, primacy: first behavior precedents, carryover from other experiences, and explicit statements from lead or members. |
Styles to Handle Conflict |
Dominating style, avoiding style, compromising style, accommodation style, and collaborating style. |
Dominating Style |
"My way," uncooperative and assertive. |
Avoiding Style |
No way, uncooperative, and unassertive. |
Compromising Style |
Half way, some assertiveness and some cooperativeness. |
Collaborating Style |
"Our way," cooperative and assertive. |
Accommodating Style |
"Your way," cooperative and unassertive. |
… |
… |
Team Cohesiveness |
The extent to which members are attracted to the team and motivated to remain in it. |
Determinates of Team Cohesiveness |
Team interaction, shared goals, personal attraction to the team, presence of competition, and team success. |
Output of Team Cohesiveness |
Morale and productivity. |
Team Interaction |
When team members have frequent contact, they get to know one another, consider themselves a unit, and become more committed to the team. |
Shared Goals |
When team members agree on purpose and direction, they will be more cohesive. |
Personal Attraction to the Team |
When members have similar attitudes and values and enjoy being together. |
Presence of Competition |
When a team is in moderate competition with other teams, its cohesiveness increases as it strives to win. |
Team Success |
When a team has favorable evaluation by outsiders it adds to cohesiveness and when others in the organization recognize the success, members feel good and their commitment to the team will be high. |
Why is morale higher because of team cohesiveness? |
Because of increased communication among members, a friendly team climate, maintenance of membership because of commitment to the team, loyalty, and member participation in team decisions and activities. |
Why is productivity higher because of team cohesiveness? |
Because team members share strong feelings of connected ness and generally positive interactions tend to perform better. |
Team Norms |
Informal standards of conduct shared by members and guides their behavior. |
Conflict |
Antagonistic interaction in which one party attempts to block the goals of another. |
Two Types of Conflict |
Task conflict and relationship conflict. |
Task Conflict |
Disagreement among people about the goals to be achieved or the content of tasks to be performed. |
Relationship Conflict |
Interpersonal incompatibility that creates tension and personal animosity among people. |
How can mild conflict be beneficial? |
It prevents groupthink and makes better decision making due to multiple viewpoints. |
What can strong conflict be bad? |
It is destructive, it means the team won’t be managed properly, and it will interfere with exchange of ideas and information. |
Causes of Conflict |
Competition over resources, pursuing different goals, communication breakdown/poor, trust issues, and lack of nonverbal cues. |
Negotiation |
Type of conflict management; people engage in give and take discussions and consider various alternatives to reach a joint decision acceptable to both parties. |
Integrative Negotiation |
Win-win assumption, all parties want to come up with a creative solution that can benefit both sides, and valued in the business environment. |
Distributive Negotiation |
Win-lose assumption, competitive and adversarial, and each party attempts to get as much on their side as they can. |
Reaching a Win-Win Solution |
Separate the people form the problem, focus on interest and not current demands, listen and ask questions, and insist that results be based on objective standards. |
Separate People From the Problem |
Stay focused on the problem and the source of the conflict. |
Focus on Interests and Not Current Demands |
Interest is the "why" behind the demands. |
Listen and Ask Questions |
Learn about opponent’s position, constraint, and needs. |
Insist That Results Be Bases on Objective Standards |
Focus on the objective criteria and maintaining standards of fairness. |
What is an example of how a group is different from a team? |
An employer, a teacher, and a coach can put together a group of people and never build a team. |
Contributions of Teams |
Creativity and innovation, improved quality, speed of response, higher productivity and lower cost, and enhanced motivation and satisfaction. |
Three Different Types of Teams |
Functional, cross functional, and self-managed team. |
Functional Team |
Manager and the subordinates in the formal chain of command, include 3 or 4 levels of hierarchy, and each has a specific goal to attain. |
Cross Functional Team |
Employees of the same hierarchical level but with different expertise, include groups of same hierarchy level, and deal with specific activities until they are complete. |
Self-Managed Team |
5 to 20 multi-skilled workers, goal of improving performance, increase participation of workers, and self supervised. |
Free Riders |
A free rider is a person that benefits from the groups work and success but did not pull his/her own weight during the process. |
Being part of an effective team means… |
…giving up one’s independent work style, as everyone’s success depends on part of the team’s success. |
Team Effectiveness |
Productive output, satisfaction of members, and capacity to adapt and learn. |
Productive Output |
Pertains to performance and the quality and quantity of task outputs as defined by team goals. |
Satisfaction of Members |
Pertains to the team’s ability to meet the personal needs of its members and hence maintain their membership and commitment. |
Capacity to Adapt and Learn |
Pertains to the ability of teams to bring greater knowledge and skills to do job tasks and enhance the potential of the organization to respond to new threats or opportunities in the environment. |
How to Be a Great Team Leader |
Rally people around a compelling purpose, share control to spur commitment and motivation, clarify norms and expectations, and admit ignorance. |
Rally People Around a Compelling Purpose |
This ensures that everyone is moving in the same direction rather than floundering around, wondering why the team was created and where it is supposed to be going. |
Share Control to Spur Commitment and Motivation |
Overly controlling leaders sabotage team effectiveness, by sharing it shows the members that the leader has faith that they will make good decisions. |
Clarify Norms and Expectations |
This ensures that everyone knows what they should be doing and what they can expect from their teammates, if they are confused about their roles they will be unproductive and resentful toward other members. |
Admit Ignorance |
This serves as a fallibility model that lets people know that lack of knowledge problems, concerns, and mistakes can be discussed openly without fear of appearing incompetent. |
Virtual Team |
A team made up of members who are geographically or organizationally dispersed, rarely meet fact to face, and interact to accomplish their work primarily using advanced information and telecommunications technologies. |
Global Team |
A group made up of employees who come from different countries and whose activities span multiple countries. |
Team Characteristics |
Size, diversity, and member roles. |
Size |
Team’s performance and productivity peak when there were 5 members; any more that that caused a decrease in motivation, an increase in coordination problems, and a general decline in performance. |
Diversity |
People with different skills, thinking styles, and personal characteristics provides a source of creativity and healthy level of disagreement that leads to better decision making. |
Member Roles |
Task specialist role and socioemotional role. |
Working group |
Collection of people working in same area/drawn together for task but not necessarily together as unit/achieve significant performance improvements |
Team |
Small number of people with complementary skills, committed to common purpose, set of performance goals, approach for which they hold themselves mutually accountable |
Work teams |
Make/do things e.g. manufacture, assemble, sell, provide service Well defined Clear part of organization structure Full-time, stable members |
Project/development teams |
Long term projects Specific assignments e.g. research, new product development Members contribute expert knowledge One-time product, disband when done |
Parallel teams |
Operate separately from regular work structure temporarily Members from different units Do work not normally done by standard structure Recommend solutions to specific problems e.g. task forces, safety teams |
Management teams |
Coordinate/provide direction to subunits under jurisdiction, integrate their work, Based on authority stemming from hierarchical rank Responsible for overall performance of business unit Top of organization |
Transnational teams |
Composed of multinational members whose activities span multiple countries Multicultural Geographically dispersed Psychologically distant Work on highly complex projects of considerable impact |
Virtual teams |
Physically dispersed Communicate electronically more than face-to-face Often transnational Challenges: Building trust, cohesion, team identity, overcoming isolation of virtual team members |
Self-designing teams |
Also control who to hire/fire, what task to perform |
Forming |
Members attempt to lay ground rules for acceptable behavior |
Storming |
Hostilities, conflict, jockeying for positions of power/status |
Norming |
Agree on shared goals, norms, develop closer relationships |
Performing |
Channels energies into performing tasks |
Declining |
Deteriorates |
Adjourning/Terminating |
Temporary – when complete task/fail/lose interest |
Team effectiveness defined by three criteria |
Productive output of team meets/exceeds standards of quantity, quality Members realize satisfaction of personal needs Members remain committed to working together again i.e. group doesn’t burn out/disintegrate after grueling project – effective teams remain viable, have good prospects for repeated success in future |
Norms |
Shared beliefs about how all members should think, behave e.g. sharing information Can be positive/negative e.g. work hard; anti-management; take risks; speak favorably/critically of company |
Roles |
Different expectations for how different individuals should behave Task specialist: Individuals with specific skills, keep team moving to accomplish goal Team maintenance specialist: Develop/ maintain harmony, support, concern with well-being |
Social loafing |
Working less hard, being less productive when in a group Believe contributions not important, others will do the work for them, lack of effort will go undetected, will be lone sucker if they work hard, others don’t |
Social facilitation effect |
Working harder when in a group than when working alone Individuals more motivated when others present, concerned with what others think of them, want to maintain positive self-image |
Cohesiveness |
Degree to which Group is attractive to members Members are motivated to remain in group Members influence one another Contributes to member satisfaction Communicate, get along, enjoy coworkers even if job is unfulfilling Positive impact on performance Though depends on task (cohesiveness bad for decision-making) + performance norms |
_____ means keeping costs low enough so that the company can realize profits and price its products at levels that are attractive to consumers |
cost competitiveness |
companies that want to grow often: |
tap into international markets |
Interpersonal and communication skills are sometimes known as: |
people skills |
Which of the following is a characteristic of the mgmt function of controlling |
monitoring performance and making necessary changes |
the goodwill stemming from one’s interpersonal relationships is known as |
social capital |
which is a characteristic of frontline managers? |
they are link between mgmt and non-mgmt personnel |
which is the most important process of knowledge mgmt? |
collaborating |
managers who have to create and articulate a broad corporate purpose with which people can identify and one to which people will enthusiastically commit are known as: |
top level managers |
which of the following is a controllable environmental factor that can affect an organization |
cost leadership strategy |
what is a systemwide application of behavioral science knowledge to improve and reinforce the strategies, |
Organization development |
Too much happy talk from senior management, an absence of a major crisis, many visible resources, and low overall performance standards |
A sense of complacency |
Which of the following refers to companies that try to change the structure of their industry, creating a future competitive landscape? |
shapers |
Which of the following best indicates the three basic stages of managing resistance and motivating change within an organization? -unfreezing, moving to institute the change, refreezing |
-unfreezing, moving to institute change, refreezing |
Purple Lotus is a communications and information technology company. It plans to sell 100,000 units of a product in a quarter but manages -performance gap |
performance gap |
In the Level 5 hierarchy, which of the following refers to an individual who catalyzes commitment to and vigorous pursuit of a clear and -level 5 executive |
an effective leader |
Which of the following methods for managing resistance to change is most likely to work best when there is a lack of information or -education and communication |
education and communication |
According to a study, the four key factors that lead to sustained, superior performance of companies include strategy, execution and ______. -knowledge |
culture |
Which of the following is a change-specific reason for resistance to change? -inertia |
misunderstanding |
Even after scanning and e-mailing became accepted technologies for sharing documents, some people still resisted using them in favor |
inertia |
Which of the following types of control systems depends on pricing mechanisms and economic information to regulate activities -market control |
market control |
To increase likelihood that employees will accept a control system, it should have performance standards that are: -descriptive and idealized |
-useful and achievable |
leverage ratio that indicates a company’s ability to meet its long-term financial obligations |
debt-equity |
_____has become an essential part of clan control because employees’ jobs, the nature of management, and the employment relationship |
empowerment |
When an organization investigates several companies as potential new suppliers, it is conducting a(n) _____ audit. |
external |
_____ is designed to reduce defects in all organization processes—not just product defects but anything that may result in customer -quality control |
six sigma |
_____ is the fee charged by one unit for a good or service provided to another unit within the organization. |
transfer price |
Which of the following should be the subsequent step in a typical control process after setting performance standards? -taking action to correct problems |
measuring performance |
A common disadvantage of _____ control is the long time lags that often occur between performance and review, slowing down -feedback |
feedback |
_____ ratios indicate management’s ability to generate a financial return on sales or investment. -liquidity |
profitability |
what are the advantages of one way communication? |
-communication is faster and easier – |
what can result in an error in the transmission stage of the communication process? |
-words spoken w/ambiguous iflections |
what are the advantages of electronic communication withing orgs compared to other methods |
-increased speed and efficiency for routine messages -sharing more info -can save company $$ and time |
An example of filtering would be when a: |
worker who hasnt met his target tells his boss that he has reached it |
Media richness is described as the degree to which a(n): |
communication channel conveys info |
What are the disadvantages of oral communication? |
-likelihood of ill-considered statements is high -no permanent record |
what are the advantages of oral communication? |
-questions can be asked and answered -feedback is immediate and direct -more persuasive |
what are the disadvantages of a virtual office? |
-Loss of human interaction -burnout caused by long hours with technical tools – lack of guidance for inexperienced employees |
reflection is a process of _____. |
a person states what he or she believes the other person is saying |
Effective writing has what traits? |
-free of sarcasm and caustic humor |
what are the advantages of written communication? |
-perm record -changes can be made to it -message is constant even if relayed through many people -receiver has more time to analyze message |
what are disadvantages of written communications? |
-sender has no control over where, when, or if message is read -sender doesn’t receive immediate feedback -receiver may not understand parts of the message |
social loafing is |
working less hard when in a group |
Which of the following entities is most likely to provide the most honest, and thus the most crucial and useful, feedback about the -team leader |
external customers |
which of the following best exemplifies the work of a task specialist |
-moving team toward its objectives |
Work teams such as new product and strategic teams frequently interact with the external environment to understand outsiders’ needs through _______. |
probing |
Ignoring the problem or deemphasizing the disagreement |
avoidance |
_____ is likely to occur when individuals are more motivated to work hard when others are present, are concerned with what others think -social facilitation effect |
social facilitation |
____ is the degree to which a team is attractive to its members, how motivated members are to remain in the team, and the degree |
cohesiveness |
_____ goals are higher-level goals taking priority over specific individual or group goals that can be used to encourage collaboration. -superordinate |
superordinate |
These teams work on long term assignments, often over a period of years, and usually disband afterwards. |
project and development |
These teams operate separately from the regular work structure of a firm on a temporary basis |
parallel teams |
A person can restore _____ in a number of ways by behaviorally or perceptually changing inputs and outcomes. -equity |
equity |
According to Alderfer’s ERG theory, people have three basic sets of needs that can operate simultaneously, they are ? |
-existence -growth -relatedness |
_____ performance goals can be dysfunctional when people work in a group if the goals create competition among team members. -individual |
team |
Instrinsic rewards are: |
reward a worker derives directly from job itself |
What are the five needs in Maslow’s hierarchy? Start from bottom |
-physiological -safety or security -social -ego (independence, achievement, status) -self-actualization |
A psychological contract is described as: -a set of conditions of non-disclosure signed by an employee on joining the organization. |
a set of perceptions of what employees owe their employers, and what their employers owe them. |
The goal-setting theory states that: |
people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end. |
Managers should consider three factors before deciding -competition |
situation |
Three general categories of leadership behavior are related to group maintenance, employee participation in decision making, and _____. -task performance |
task performance |
_____ concerns how leaders influence subordinates’ perceptions of their task objectives and the way they work toward attainment of those -Fiedler’s contingency model |
path goal theory |
Which of the following leadership perspectives attempts to identify what good leaders do? -Contigency model |
behavioral approach |
The best org vision is one that : -exists at the top most level |
ideal and unique |
Muriel has taught at a public elementary school for six years, and every year she simply gets the raise given to all of the teachers at her -reward power |
reward power |
These types of leaders motivate people to transcend their personal interests for the good of the group |
transformational |
A leader who exhibits a(n) _____ style will make decisions alone, without soliciting input from others. |
autocratic |
_____ is a leadership perspective that attempts to determine the personal characteristics that great leaders share. |
trait |
Typically, diversity training has two components: awareness building and _____. -job sharing |
skill building |
Multicultural organizations differ from pluralistic ones in that within the former: -there is prevalent use of an affirmative action approach. |
diversity is valued and leveraged |
Which of the following terms refers to all kinds of differences, such as differences in gender, race, age, nationality, and religious affiliation? |
diversity |
Diversity can be a powerful tool for building competitive advantage in several ways, such as by helping companies attract and retain motivated employees and: -building greater cohesiveness. |
improving understanding of a differentiated market. |
One approach to increasing diversity in the workplace is affirmative action, the primary intent of which is to: |
correct historical discrimination and exclusion |
Obtaining commitment from _____ is critical for diversity programs to succeed so that other parties in the organization will take it seriously. -top management |
top management |
BUS 137 Chapter 14 Quiz, BUS 137 Chapter 14..
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