Deck 12: Outsourcing: Managing Interorganizational Relations

Question 1

Which of the following did the state of Ohio do before starting a bond-financed school construction project?

A)Create a specific RFP (request for proposal)
B)Have a dress rehearsal
C)Reviews the performance of contractors on past projects
D)Both A and C are correct
E)A, B, and C are all correct

Answer 1

B
Explanation: Before starting a bond-financed school construction project, Ohio does what a theater company does before opening night-it holds a dress rehearsal.Just as a theatrical dress rehearsal can allow a company to find and fix glitches before they ruin a show, preconstruction partnering can find early solutions to problems before they become lawsuits.For example, during the discussions it becomes apparent that different parties are interpreting a key requirement differently.Instead of waiting for this difference to escalate into a major problem, the parties reach a shared understanding before work begins.

Question 2

Which of the following is not a potential part of the outsourcing concept?

A)Computers
B)Faxes
C)Computer-aided design systems
D)Video teleconferencing
E)All the above are correct

Answer 2

E
Explanation: Many outsourced projects operate in a virtual environment in which people are linked by computers, faxes, computer-aided design systems, and video teleconferencing.

Question 3

In the Snapshot from Practice "Strategies for Communicating with Outsourcers," which of the following was not one of the suggested strategies?

A)Recognize cultural differences
B)Use a translator to make sure everyone understands
C)Choose the right words
D)Confirm your requirements
E)Set deadlines

Answer 3

B

Question 4

To avoid problems with schedules and deadlines you should:

A)Develop detailed schedules
B)Hold frequent status reviews
C)Add a penalty clause to the contract
D)Hold frequent conversations with the outsourcer
E)Build extra time into the schedules that the outsourcer is not aware of

Question 5

Which of the following is not a key to successful partnering relationships?

A)Mutual trust
B)Jointly shared risk
C)Total company involvement
D)Independent project teams
E)Long-term commitment

Question 6

The driving motive for increasing the use of outsourcing on projects was:

A)Reducing the trade deficit
B)Reducing costs
C)Improving international sales
D)Making products more international in design
E)Securing technology that was not available domestically

Question 7

When you call your Internet provider to solve a technical problem and you end up talking to a technician in India or Romania, you have just experienced:

A)Telecommunications
B)Partnering
C)Outsourcing
D)Service shift
E)Bilingual customer service

Question 8

Recent outsourcing trends have shown an increasing emphasis on the suppliers for all of the following except:

A)Further cost reductions
B)Increased quality of work performed
C)Increased ability to collaborate
D)Increased ability to work together
E)All of these are recent trends

Question 9

Which of the following is part of the traditional project process?

A)Structured communications
B)Long-term commitment
C)Total company involvement
D)Both A and B are correct
E)A, B, and C are all correct

Question 10

Key practices in partnering relationships include:

A)Single project contracting
B)Goals and objectives are similar
C)Access to each other's organizational resources
D)Both B and C are correct
E)A, B, and C are all correct

Question 11

To make sure that an outsourcer thoroughly understands your requirements you should:

A)Document your conversations in writing
B)Insist that the outsourcer write the requirements in their own words
C)Request they build a prototype
D)Both A and C are correct
E)A, B, and C are all correct

Question 12

Advantages of outsourcing project work may likely include all of the following except

A)Shortened project completion
B)Reduced costs
C)Higher level of expertise
D)Reduced conflict
E)Increased flexibility

Question 13

Disadvantages of outsourcing project work may likely include all of the following except

A)Increased conflict
B)Coordination breakdowns
C)Increased costs
D)Loss of control
E)More internal morale issues

Question 14

In the "Competing against the Giants" Snapshot from Practice, SATT Control uses which of the following to successfully compete against much larger competitors?

A)Excellent project management
B)Acts as a system integrator
C)Using the same subsystem vendors again and again
D)Both A and B are correct
E)A, B, and C are all correct

Question 15

Among the many advantages for establishing long-term partnerships are:

A)Reduced administrative costs
B)Improved performance
C)Improved communication
D)B and C are both correct
E)A, B, and C are all correct

Question 16

Best practices in outsourcing project work include all the following except:

A)Well defined requirements and procedures
B)Training and teambuilding activities
C)Well established conflict management processes
D)Frequent reviews and status updates
E)All of these are best practices

Question 17

The traditional project process includes all of the following except:

A)Independent project teams
B)Shared goals and objectives
C)Single project teams
D)Risk is transferred to the other party
E)Limited objectivity

Question 18

ontracting project work has long been the norm in the _______ industry.

A)Telecommunications
B)Financial
C)Insurance
D)Construction
E)Retail

Question 19

The result of teambuilding among the project's participants is a:

A)Signed contract
B)Legal partnership agreement
C)Project plan
D)Partnering charter
E)Responsibility matrix

Question 20

The process for the transferring of business functions or processes to other, often foreign, companies has traditionally been known as:

A)Subcontracting
B)Downsizing
C)Partnering
D)Joint venture
E)Outsourcing

Question 21

The dovetailing technique is used in which of the following keys to good negotiation?

A)Separate people from the problem
B)Be honest
C)Focus on interests, not positions
D)Invent options for mutual gain
E)When possible, use objective criteria

Question 22

Which of the following would be included in best practices in outsourcing project work?

A)Establishing long-term relationships
B)Include financial incentives
C)Reduce costs by using tried and true methods
D)A and B are both correct
E)A, B, and C are all correct

Question 23

Contracting project work has long been the norm in the __________ industry.

Question 24

Which of the following is a part of the noncompetitive view of negotiation?

A)Reaching an agreement
B)Implementation phase
C)Review of the completed project
D)Both A and B are correct
E)A, B, and C are all correct

Question 25

Which of the following is suggested as the best target for a customer satisfaction ratio?

A)1.00
B)1.05
C)1.10
D)1.20
E)1.50

Question 26

In the Snapshot from Practice dealing with the Value Engineering Awards program, which branch of the U.S.government was involved?

A)Department of Defense
B)Department of Commerce
C)Department of Transportation
D)N.A.S.A
E)Department of Education

Question 27

Regarding customer relations, advice passed on by veteran project managers includes:

A)Speak with one voice
B)Speak in precise terms
C)Speak the language of the customer
D)Both A and B are correct
E)Both A and C are correct

Question 28

In the research highlight on IT project managers, which of the following was not one of the roles taken by project managers?

A)Entrepreneur
B)Politician
C)Friend
D)Marketer
E)Auditor

Question 29

Which of the following is reflected in the saying "Let anger fly out the window"?

A)Separate people from the problem
B)Be honest
C)Focus on interests, not positions
D)Invent options for mutual gain
E)When possible, use objective criteria

Question 30

Which of the following is not one of the elements of good negotiation?

A)Be hard on the problem, soft on the people
B)Conflict on a project can be good
C)Negotiation is not a contest
D)Seek first to understand, then to be understood
E)All of these are elements of good negotiation

Question 31

The __________ project, which created a transportation tunnel between France and England, involved more than 250 organizations.

Question 32

Which of the following is reflected in the saying "Seek first to understand, then to be understood"?

A)Separate people from the problem
B)Be honest
C)Focus on interests, not positions
D)Invent options for mutual gain
E)When possible, use objective criteria

Question 33

Long-term partnerships will provide all the following except:

A)Improved communication
B)More efficient utilization of resources
C)Reduced need for total number of partnerships
D)Lower administrative costs
E)Improved innovation

Question 34

Teambuilding between partners should:

A)Include engineers, architects, lawyers, specialists and other staff
B)Be facilitated by an outside consultant
C)Not take more than one day
D)A and B are both correct
E)A, B, and C are all correct

Question 35

Customer satisfaction can be quantitified by:

A)Perceived performance divided by actual performance
B)Actual performance divided by expected performance
C)Perceived performance divided by expected performance
D)Actual performance divided by perceived performance
E)Expected performance divided by actual performance

Question 36

In a partnering relationship, ________ is shared jointly among the partners, which encourages innovation and continuous improvement.

Question 37

Which of the following is not one of the key points of principled negotiation?

A)Use objective criteria when possible
B)Be honest and forthright
C)Focus on interests, not positions
D)Separate the people from the problem
E)Invent options for mutual gain

Question 38

In a partnering relationship, ________ forms the basis for strong working relationships.

Question 39

In traditional project relationships, ________ are structured and guarded.

Question 40

In traditional project relationships, ________ is limited due to fear of reprisal and lack of continuous improvement opportunity.

Question 41

Projects are more prone to interpersonal _________ because the different participants do not share the same values, priorities, and culture.

Question 42

There is a potential loss of __________ over a project when the core team depends on other organizations that they do not have direct authority over.

Question 43

Toyota and Daimen-Chrysler collaborating with suppliers to develop new automobile platforms is an example of outsourcing.

Question 44

"Let anger fly out of the window" is an example of the ___________ key point of negotiation.

Question 45

In Ohio before starting a bond-financed ____________, projects management consultants and the related parties get together to figure out how to talk to each others and how to handle problems.

Question 46

_______ satisfaction is measured by the ratio of perceived performance to expected performance.

Question 47

The term __________ has traditionally been applied to the transferring of business functions or processes to other, often foreign, companies.

Question 48

__________ is a major advantage of outsourcing project work because companies can secure competitive prices for contracted services, especially if the work can be outsourced offshore.

Question 49

High levels of __________ and technology can be brought to bear on a project by using contracted services.

Question 50

Fisher and Ury champion the ________ approach to negotiation because it emphasizes win/win solutions while protecting yourself against those who would take advantage of your forthrightness.

Question 51

Explaining why a critical task must be done by a specific time is an example of the ___________ key point of negotiation.

Question 52

As part of an effort to cut costs the United States Department of Defense issues annual __________.

Question 53

Breakdowns in __________ of professionals from different organizations can occur if the project work requires close collaboration and mutual adjustment.

Question 54

Dividing perceived performance by expected performance will calculate __________.

Question 55

Many outsourced projects operate in a _________ environment in which people are linked by computers, faxes, computer-aided design systems, and video teleconferencing.

Question 56

Contracting project services can increase a firm's _________ by no longer being constrained by their own resources.

Question 57

In the Snapshot from Practice involving SATT Control, a Swedish electronics firm, the company referred to one of its competencies as being a ________ who subcontracts the subsystems to other firms.

Question 58

There is little disagreement that __________ was the primary motive behind outsourcing project work.

Question 59

The best defense against unreasonable, win/lose negotiators is having what Fisher and Ury call a strong __________.

Question 60

Not only can contracted project work be cheaper, it can also be done __________.

Question 61

In the traditional method of managing projects, total company involvement requires commitment from CEO to team members.

Question 62

Increased conflict and loss of coordination are typical disadvantages of outsourcing project work.

Question 63

A prime consideration in choosing outsourcing vendors is to assess the fit with their project management system.

Question 64

In project negotiation each negotiator is out to win as much as he or she can for their side.

Question 65

In partnering, each party's goals and objectives are similar but geared to what is best for them.

Question 66

Principled Negotiation emphasizes developing win/win solutions while protecting yourself against those who would take advantage of your forthrightness.

Question 67

Because English is the language of business, it is not necessary to speak in a direct manner using short sentences made of basic, simple words as this may taken as an insult.

Question 68

Trust can be difficult to forge when interactions are limited and people come from different organizations.

Question 69

Working in outsourcing teams, projects can be completed faster and more cheaply.

Question 70

As part of an effort to cut costs, the United States Department of Defense issues annual Value Engineering Awards.

Question 71

Experience indicates that co-location of project teams is not worth the extra costs.

Question 72

Team-building workshops with outsourcing vendors is usually led by an outside consultant who is an expert in designing and facilitating such workshops.

Question 73

By keeping the focus on the issues and not the personalities, negotiators are better able to let the other person blow off steam.

Question 74

In partnering, access to each other's organization resources is available.

Question 75

All conversations with outsourcers should be followed up with commitments documented in writing since they are likely to understand written English better than spoken English.

Question 76

Participants from different organizations working close together at the construction site or in shared office space is an example of a virtual team.

Question 77

A partnering charter states the common goals for the project as well as the procedures that will be used to achieve these goals.

Question 78

In some countries, laws are considered to be guidelines that are not necessarily followed.

Question 79

For people in some countries, a written, signed contract is merely a suggestion.

Question 80

It is a good idea to add a penalty clause to an outsourcing agreement because deadlines are often taken as a suggestion rather than a commitment.