PM2

Question 1

What matters for successful project management?

Answer 1

Organizational setting

Question 2

What are project stakeholders?

Answer 2

Individuals/groups with active stake in project and can impacts its development positively or negatively

Question 3

What are some examples of internal stakeholders?

Answer 3

Top management
Accountant
Other functional managers
Project team members

Question 4

What are some examples of external stakeholders?

Answer 4

Clients
Sponsors
Competitors
Suppliers
Environmental sectors

Question 5

What does designating formal reporting relationships include?

Answer 5

-Number of levels in the hierarchy
-Span of control of managers and supervisors

Question 6

The organizational structure identifies groupings of?

Answer 6

-Individuals into departments
-Departments into the total organization

Question 7

Design of systems should be included to ensure?

Answer 7

-Effective communication
-Coordination
-Integration across departments

Question 8

What are the 3 forms of organization structure?

Answer 8

-Functional
-Project
-Matrix

Question 9

What are strengths of functional structures?

Answer 9

-No disruption to the firm’s design
-Enables development of in-depth knowledge and intellectual capital
-Allows for standard career paths

Question 10

What are weaknesses of functional structures?

Answer 10

-Tasks are done to the exclusion of the needs of other departments.
-Customers are not the primary focus
-Projects take longer to complete due to slower communication and lack of direct ownership

Question 11

What are strengths of project structures?

Answer 11

-All major decisions/authority remain under the control of the project manager
-Communication improves across the organization
-Rapid response to market opportunities

Question 12

What are weaknesses of project structures?

Answer 12

-Setting up and maintaining teams can be expensive
-Potential for inefficient use of resources
-Difficult to maintain supply of technical or intellectual capital
-Team is concerned about their future once the project ends

Question 13

What are strengths of matrix structures?

Answer 13

-Beneficial for dynamic environments
-Emphasis on project management and functional efficiency
-Better coordination across functional units
-Better resource distribution

Question 14

What are weaknesses of matrix structures?

Answer 14

-Multiple managers means potential conflicts (dual hierarchy)
-Negotiation required to share resources (slow decision making)
-Team members’ function roles and project roles are not clear

Question 15

4 forms of business organizations in Canada

Answer 15

-Sole proprietorship
-Corporation
-Partnership
-Cooperative

Question 16

What is a sole proprietorship?

Answer 16

-Easiest and most common way to start a business
-Owner has responsibility, liability, successes and losses

Question 17

What are advantages of sole propriertorships?

Answer 17

-Owner can register it quickly/easily/inexpensive
-Lowest amount of regulatory burden
-Owner receives the whole business profit directly.
-Owner makes all business decisions
-Tax advantages when the business is not making money

Question 18

What are disadvantages of a sole proprietorship?

Answer 18

-Owner is personally liable for the business and their assets can be seized to pay off business debts
-Federal and provincial (not Alberta) taxes are applied to both business and individual’s income
-Owner cannot raise capital when they do not have enough personal assets to act as collateral
-Business ceases to exist when the owner passes away.

Question 19

What is a partnership?

Answer 19

-Easy and common way to start a business
-Partners share the responsibility, liability, successes and losses
-Same advantages and disadvantages as sole proprietorship but partners share them

Question 20

What is limited liability partnership?

Answer 20

-Consists of general partners and limited partners
-Limited partners contribute money/assets and share profits/loss
-Limit partners do not participate in management and is not attached to pay claims against the business

Question 21

What is a corporation?

Answer 21

-Legal body that separates organization from shareholder/operators
-Most complicated form of ownership
-Responsibilities/liabilities is limited to corporation assets

Question 22

What are advantages of a corporation?

Answer 22

-Personal liability of shareholder is limited, so their assets are protected
-Shareholder can transfer ownership
-Personal income and incorporation profit are considered separately for tax purposes
-Can exist continuously
-Capital can be increased by sale of stocks/shares publicly/privately

Question 23

What are disadvantages of corporations?

Answer 23

-Annual corporate records are required
-Establishing a corporation is expensive
-Residency/citizenship are required
-Conflict between shareholders and directors is likely

Question 24

What is a cooperative?

Answer 24

-Business organization owned/controlled by an association of members
-Least common in Canada

Question 25

What are advantages of a cooperative?

Answer 25

-A member has limited liability
-Cooperative is controlled democratically
-Each member may receive the profit proportional to the business done with the cooperative

Question 26

What are disadvantages of a cooperative?

Answer 26

-Conflict between members are possible
-Decision making process could not be easy and may take longer
-All/high percentage of members must participate for some decisions
-Cooperative requires extensive record keeping every year