Chapter 7
CHAPTER 13
Types of Project Organizations
True/False
1. The most common types of organization structures are functional, progressive, and matrix.
ANSWER: F
2. Functional organization structures are typically used in businesses that primarily sell and produce standard products.
ANSWER: T
3. In the project organization structure, groups consist of individuals who perform the same function.
ANSWER: F
4. In a functional organization, individuals continue to perform their regular functional jobs while they may serve part-time on a project task force.
ANSWER: T
5. In a functional-type organization, the project manager does not have complete authority over the project team.
ANSWER: T
6. Companies with functional organization structures frequently perform projects involving external customers.
ANSWER: F
7. In the matrix organization structure, people are hired to work on a specific project.
ANSWER: F
8. In the functional-type organization, each project is operated like a mini-company.
ANSWER: F
9. A project-type organization can be cost-inefficient both for individual projects and for the company.
ANSWER: T
10. Project organization structures are prevalent in aerospace industries.
ANSWER: T
11. The project-type organization is kind of a hybrid—a mix of two other organization structures.
ANSWER: F
12. In the matrix organization structure, individuals are assigned to the project for the length of time they are needed.
ANSWER: T
13. In a matrix-type organization, it’s not unusual for an individual from a functional component to be assigned part-time to several concurrent projects.
ANSWER: T
14. The functional-type organization provides opportunities for people in the functional components to pursue career development through assignment to various types of projects.
ANSWER: F
15. The project organization structure allows for fast response upon problem identification because it has both a horizontal (project) and a vertical (functional) path for the flow of information.
ANSWER: F
16. By bringing specialists from the same discipline together in the same organizational unit, a functional-type organization reduces duplication and overlap of activities.
ANSWER: T
17. The hierarchical structure causes communication, problem resolution, and decision making to be slow within a project organization.
ANSWER: F
18. In a functional-type organization, all the individuals on the project team work for the project manager.
ANSWER: F
19. In the project organization structure, there is a low level of knowledge transfer among projects.
ANSWER: T
20. The matrix structure allows efficient utilization of resources by having individuals from various functions assigned to work part-time, if necessary, on specific projects or by having them assigned for only a limited duration to certain projects.
ANSWER: T
21. The dual communication paths of the project organization increase the chances that problems will be identified rather than suppressed.
ANSWER: F
Multiple Choice
22. The most common types of organization structures are:
a. functional, project, and matrix
b. functional, progressive, and matrix
c. framework, project, matrix
d. functional, project, management
ANSWER: A
23. ______________ organization structures are typically used in businesses that primarily sell and produce standard products.
a. matrix
b. functional
c. progressive
d. project
ANSWER: B
24. In the ____________________ organization structure, each functional group, or component, concentrates on performing its own activities in support of the company’s business mission.
a. matrix
b. functional
c. progressive
d. project
ANSWER: B
25. In a _______________ organization(s), the project manager does not have complete authority over the project team.
a. project
b. matrix
c. functional
d. functional and matrix
ANSWER: D
26. Companies with _______________ organization structures seldom perform projects involving external customers.
a. project
b. matrix
c. functional
d. temp-based
ANSWER: C
27. In the _________________ organization structure, people are hired to work on a specific project.
a. project
b. matrix
c. functional
d. temp-based
ANSWER: A
28. In the ________________ organization structure, a full-time project manager has complete project and administrative authority over the project team.
a. project
b. matrix
c. functional
d. temp-based
ANSWER: A
29. The _________________ organization is well positioned to be highly responsive to the project objective and customer needs because each project team is strictly dedicated to only one project.
a. matrix
b. functional
c. progressive
d. project
ANSWER: D
30. __________ organization structures are found primarily in companies that are involved in very large projects.
a. matrix
b. functional
c. progressive
d. project
ANSWER: D
31. In the ______________ organization structure, the project manager is responsible for the project results, while the functional managers are responsible for providing the resources needed to achieve the results.
a. mixed-mode
b. matrix
c. project
d. functional
ANSWER: B
32. In the _______________ organization structure, the project manager meets with the appropriate functional managers to negotiate the assignment of various individuals from the functional components to work on the project.
a. mixed-mode
b. matrix
c. project
d. functional
ANSWER: B
33. The objective of the matrix-type organization structure is to _________ the number of functional person-hours applied to work on projects (within the project budget) and __________ the unapplied time.
a. level, stop
b. stop, level
c. minimize, maximize
d. maximize, minimize
ANSWER: D
34. The ______________organization provides opportunities for people in the functional components to pursue career development through assignment to various types of projects.
a. matrix
b. mixed
c. functional
d. progressive
ANSWER: A
35. Each ________________ manager in a matrix organization structure is responsible for how the assigned work tasks will be accomplished and who (which specific people) will do each task.
a. middle
b. proposal
c. functional
d. project
ANSWER: C
36. The ________ organization structure allows for fast response upon problem identification because it has both a horizontal (project) and a vertical (functional) path for the flow of information.
a. matrix
b. mixed
c. functional
d. progressive
ANSWER: A
37. Teamwork with other functions is not emphasized, and there is little cross-fertilization of ideas in the ________________ organization structure.
a. matrix
b. mixed
c. functional
d. progressive
ANSWER: C
38. The ___________________ type organization structure lacks customer focus.
a. matrix
b. mixed
c. functional
d. progressive
ANSWER: C
39. The __________________ type organization structure is highly responsive to the customer.
a. matrix
b. project
c. functional
d. progressive
ANSWER: B
40. The functional component within a _____________ organization provides a home for individuals at the end of a project while they are waiting to be assigned to other projects.
a. matrix
b. project
c. functional
d. progressive
ANSWER: A
Short Answer
41. Name the 3 common types of organizational structures?
ANSWER:
a. functional
b. project
c. matrix
42. What are some advantages and disadvantages of the functional organizational structure?
ANSWER:
Advantages: No duplication, Functional excellence.
Disadvantages: Insular, Slow responsiveness, Lack of customer focus.
43. What are some advantages and disadvantages of the project organization structure?
ANSWER:
Advantages: Control over resources, Responsive to customers.
Disadvantages: Cost inefficient, Low knowledge transfer among projects.
44. What are some advantages and disadvantages of the matrix organization structure?
ANSWER
Advantages: Efficient utilization of resources, Functional expertise available to all projects, Increased learning and knowledge transfer, Responsiveness, Customer focus
Disadvantages: Dual reporting relationships, Need for balance of power
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