TEST BANK FOR PROJECT
MANAGEMENT, THE MANAGERIAL
PROCESS, 7TH EDITION BY ERIK W.
LARSON, CLIFFORD F. GRAY
, Chapter 02 Organization Strategy and Project Selection Answer Key
Multiple Choice Questions
1. Which of the following is NOT true about an organization's strategy?
A. Strategy determines how an organization will compete.
B. Strategy is implemented through projects.
C. Only top management must understand strategy.
D. Project selection should be clearly aligned with strategy.
E. Project management plays a key role in supporting strategy.
Strategy was considered to be under the purview of senior management, but this is old school thinking.
Projects and project management play a key role in supporting strategic goals. It is vital for project
managers to think and act strategically.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Identify the significant role projects contribute to the strategic direction of the organization.
Topic: The Strategic Management Process: An Overview
2. A project selection process that is strongly linked to strategy results in
A. The most profit.
B. Better utilization of the organization's resources.
C. More projects.
D. A larger and more diverse organization.
E. Stronger core competencies.
Without integration of projects with the strategic plan, resources are poorly utilized. Conversely,
organizations that have a link of projects to strategy have more cooperation across the organization,
perform better on projects and tend to have fewer projects.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Identify the significant role projects contribute to the strategic direction of the organization.
Topic: The Strategic Management Process: An Overview
,3. Which of the following is NOT true about organizational politics?
A. Project managers should not engage in organizational politics.
B. Politics can have a significant influence on which projects receive funding.
C. Politics exist in every organization.
D. Politics can influence project selection.
E. Politics can play a role in the aspirations behind projects.
Many would argue that project management and politics should not mix. A more proactive response
would be that projects and politics invariably mix. Effective project managers recognize that any
significant project has political ramifications.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 3 Hard
Learning Objective: 02-03 Understand the need for a project priority system.
Topic: The Need for a Project Priority System
4. Which of the following terms is often used to denote a project that a powerful, high-ranking official is
advocating?
A. Sacred cow
B. Pet project
C. Political necessity
D. Special undertaking
E. Strategic ploy
The term 'sacred cow' is often used to denote a project that a powerful, high-ranking official is
advocating.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Understand the need for a project priority system.
Topic: The Need for a Project Priority System
, 5. Why do project managers need to understand their organization's mission and strategy?
A. To reduce project duration and increase the number of projects implemented
B. So they can make appropriate decisions and adjustments and be effective project advocates
C. It is only important for senior management to understand the organization's mission and strategy.
D. To get their job done and increase opportunities for promotion
E. So that they can make sure the customer is satisfied
There are two main reasons why project managers need to understand their organization's mission and
strategy. The first reason is so they can make appropriate decisions and adjustments. For example, how
a project manager would respond to a suggestion to modify the design of a product to enhance
performance will vary depending upon whether his company strives to be a product leader through
innovation or to achieve operational excellence through low cost solutions. The second reason project
managers need to understand their organization's strategy is so that they can be effective project
advocates. Project managers have to be able to demonstrate to senior management how their project
contributes to their firm's mission.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-02 Identify the significant role projects contribute to the strategic direction of the organization.
Topic: The Strategic Management Process: An Overview
6. Project managers who understand the role that their project plays in accomplishing the organization's
strategy will be inclined to do all of the following EXCEPT
A. Demonstrate to senior management how their project contributes to the firm's mission.
B. Explain to team members why certain project objectives and priorities are critical.
C. Explain to stakeholders why certain project objectives and priorities are critical.
D. Be able to respond appropriately to delays and/or questions about product design.
E. Be able to focus on problems or solutions if the project is a low priority strategically.
Project managers who understand the role that their project plays in accomplishing the organization's
strategy will not be inclined to waste time focusing on problems that are a low priority in regard to
achieving the organization's strategy.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-02 Identify the significant role projects contribute to the strategic direction of the organization.
Topic: The Strategic Management Process: An Overview
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