Deck 12: Outsourcing: Managing Interorganizational Relations

Question 1

When considering principled negotiation,both buyers and sellers relying on the blue book to establish price parameters of a used car would be an example of

A) Focusing on interests,not positions.
B) Inventing options of mutual gain.
C) Being honest and forthright.
D) Using objective criteria.
E) Separating the people from the problem.

Answer 1

D
Explanation: Whenever possible,you should insist on using external,objective criteria to settle disagreements.For example,both buyers and sellers relying on the blue book to establish price parameters of a used car.

Question 2

Which of the following is NOT an advantage of establishing a long-term partnership?

A) More efficient utilization of resources
B) Reduced administration costs
C) Improved innovation
D) Risk is eventually transferred to the other party
E) Improved performance

Answer 2

D
Explanation: Among the many advantages for establishing a long-term partnership are reduced administration costs,more efficient utilization of resources,improved communication,improved innovation,and improved performance.

Question 3

Key practices in the partnering approach to managing contracted relationships include

A) Single project contracting.
B) Risk being transferred to the other party.
C) Access to each other's organizational resources.
D) Structured communications.
E) Independent project teams.

Answer 3

C
Explanation: Key practices in partnering relationships include mutual trust,shared goals,a joint project team,open communications,long-term commitment,objective critique,access to each other's organization resources,total company involvement,integration of administrative systems,and shared risk.

Question 4

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 5

What does the acronym BATNA stand for?

A) Best alternative to a negotiated agreement
B) Be able to negotiate an agreement
C) Better ability to negotiate an agreement
D) Best ability to have a negotiated agreement
E) Better agree than no agreement

Question 6

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 7

The following are differences between the partnering approach and the traditional approach to managing contracted relationships EXCEPT

A) Mutual trust forms in the partnering approach where suspicion and distrust are prominent in the traditional approach.
B) Contracts establish long-term commitments in the partnering approach while single project contracting is normal in the traditional approach.
C) Access to each other's organization resources is available in the partnering approach but limited in the traditional approach.
D) Risk is shared jointly among partners in a partnering approach but is transferred to the other party in the traditional approach.
E) The partnering approach entails significant time and energy while a handshake is satisfactory in the traditional approach.

Question 8

When negotiating,the tendency is to want to win! Why is this not a good approach when managing contracted relationships?

A) This approach inhibits the degree of trust and cooperation needed for the alliance to work
B) A noncompetitive approach can bring about functional conflict
C) This approach can cause dysfunctional conflict to rise and negotiations to break down
D) Because people have to continue to work together after negotiations
E) All of these are reasons a competitive approach to negotiation should not be used when managing contracted relationships

Question 9

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 10

Which of the following is part of the traditional approach to managing contracted relationships?

A) Structured communications
B) Long-term commitment
C) Total company involvement
D) Shared risk
E) Mutual trust

Question 11

In regard to outsourcing,the MOST effective way to avoid problems with schedules and deadlines is to

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 12

Which of the following is true in regard to negotiation when managing projects?

A) It is a competitive contest
B) Each negotiator should win as much as he or she can for his or her side
C) If project managers are not able to win negotiations,they will not be seen as effective leaders
D) Success is measured by how much is gained compared to the other party
E) It cannot be viewed as a contest

Question 13

Successful firms are very careful in selecting the work to be outsourced.If expectations and requirements are fuzzy or open to debate,working together can become very difficult.The following are ways to clarify requirements and procedures EXCEPT

A) Make sure that different firms' project management systems are integrated.
B) Contract only work with clearly defined deliverables with measurable outcomes.
C) Establish who has access to certain information through robust safeguards.
D) Make sure communication is well structured and interactions are managed to avoid confusion.
E) Document your requirements.

Question 14

Which of the following is the BEST way to ensure that cohesion and cooperation are not undermined and the parties involved will be satisfied when the project is complete?

A) Long-term outsourcing relationships
B) Good negotiation practices
C) Well-established conflict management processes in place
D) Frequent review and status updates
E) Fair and incentive-laden contracts

Question 15

Outsourced projects are susceptible to conflicts since people are unaccustomed to working together.Which of the following is a primary control mechanism for dealing with and resolving problems?

A) Arbitration
B) Escalation
C) Collaboration
D) Mediation
E) Regulation

Question 16

Why are extensive training and team building activities important when managing contracted relationships?

A) Extensive training and team building activities are not worth the effort because people issues will usually work themselves out over time
B) So team members are provided with a theoretical understanding of the barriers to collaboration as well as the skills and procedures to be successful
C) So conflict management processes can be put into place
D) So teams can still function together when co-location is not important for project success
E) So teams can identify difficult individuals and keep their distance during the project

Question 17

Best practices in outsourcing project work include all the following EXCEPT

A) Well-defined requirements and procedures.
B) Training and team-building activities.
C) Well-established conflict management processes.
D) Frequent reviews and status updates.
E) Short-term,no-pressure outsourcing relationships.

Question 18

The transferring of business functions or processes to other companies has traditionally been known as

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

Question 19

The result of team building among the project's participants that states their common goals for the project as well as the procedures that will be used to achieve these goals is a

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

Question 20

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

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

Question 21

When considering principled negotiation,keeping focus on the issues even when people become upset,frustrated,and even angry is an example of

A) Separating people from the problem.
B) Being honest and forthright.
C) Focusing on interests,not positions.
D) Inventing options for mutual gain.
E) Using objective criteria.

Question 22

When considering principled negotiation,revealing why you are trying to achieve something instead of demanding what you want or need is an example of

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 23

Mathematically,customer satisfaction is a function of the extent to which perceived performance exceeds expectations.A customer satisfaction ratio of .95 indicates that a customer is

A) Very satisfied.
B) Slightly satisfied.
C) Neutral-expectations were met.
D) Slightly dissatisfied.
E) Very dissatisfied.

Question 24

When using the partnering approach to manage contracted relationships,________ is shared jointly among the partners,which encourages innovation and continuous improvement.

Question 25

When considering principled negotiation,when one person identifies options that are of low cost to them but of high interest to the other party,this is an example of

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 26

Since different participants do not share the same values,priorities,and culture,projects are more prone to interpersonal ___________ when outsourcing.

Question 27

When using the partnering approach to manage contracted relationships,mutual ________ forms the basis for strong working relationships.

Question 28

Principled negotiation emphasizes developing win/win solutions while protecting yourself against those who would take advantage of your forthrightness.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 29

Ultimate success of the project is determined by

A) Whether the project was completed on time.
B) Whether the customer is happy.
C) Whether the project meets specifications.
D) Whether the project was under budget.
E) Whether the project served the purpose it intended.

Question 30

In the traditional approach to managing contracted relationships,________ are structured and guarded.

Question 31

Customer satisfaction can be quantified 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 32

Which of the following is NOT a reason to have a BATNA?

A) It increases the chance that you will win the negotiation
B) It gives you the power to walk away
C) It can reduce how dependent you are on the other party
D) It increases the likelihood of coming to a win/win agreement
E) It is a good defense against unreasonable win/lose negotiators

Question 33

Which of the following is NOT an element 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) Avoid dealing with unreasonable people

Question 34

Long-term partnerships will provide all the following EXCEPT

A) Improved communication.
B) More efficient utilization of resources.
C) Reduced communication requirements.
D) Lower administrative costs.
E) Improved innovation.

Question 35

The team-building sessions often conclude with the creation of a partnering _________ signed by all of the participants.

Question 36

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 37

When interacting with the customer,it is important that the project manager

A) Show the customer your knowledge on the subject by using technical terms.
B) Speak slowly and in precise terms.
C) Speak the language of the customer.
D) Allow only one person from the project team to communicate with the customer.
E) Ask the customer to repeat important details.

Question 38

In the traditional approach to managing contracted relationships,_________ project contracting is normal.

Question 39

What is the fundamental difference between a fixed-price and a cost-plus contract?

A) On fixed-price contracts partnering is used while it is not used for cost-plus contracts
B) On fixed-price contracts macro estimates are used while micro estimates are used for cost-plus contracts
C) No scope changes are made on fixed-price contracts while scope changes are allowed for cost-plus contracts
D) On fixed-price contracts the cost is set in advance while for cost-plus contracts it is established after the project is completed
E) On fixed-price contracts contractors are used while on cost-plus contracts no external contractors are used

Question 40

The following are ways a project manager can manage a customer's expectations and perceptions EXCEPT

A) Avoid the temptation to oversell the virtues of the project to win approval.
B) Make sure to develop a well-defined scope statement.
C) Delay communicating problems that you feel can be resolved without involving the customer.
D) Share significant risks that might disrupt project execution.
E) Make sure that customer interactions are handled in a competent and professional manner.

Question 41

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 42

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

Question 43

One key focus of principled negotiation is to separate people from the _________.

Question 44

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

Question 45

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

Question 46

A company no longer has to keep up with technological advances.High levels of __________ and technology can be brought onto a project by using contracted services.

Question 47

In regard to outsourcing,the MOST effective way to avoid problems with schedules and deadlines is to add a _________ clause to the contract.

Question 48

Projects are more prone to conflict when outsourcing project work.The primary control mechanism for dealing with and resolving problems is known as _________.

Question 49

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

Question 50

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

Question 51

Whether a client is dissatisfied or delighted with a project is not based on hard facts and objective data but on perceptions and _________.

Question 52

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

Question 53

When both buyers and sellers rely on the blue book to establish price parameters for a used car,they are using _________ criteria.

Question 54

Too often project members respond to customer inquiries with technical jargon.Project members should speak the language of the ________.

Question 55

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

Question 56

Cost __________ 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 57

More and more companies are using online _________ to collect data from all project participants about the quality of working relations.

Question 58

Many people approach _________ as if it is a competitive process.

Question 59

When outsourcing project work,coordination __________ are intensified by physical separation with people working in different buildings,different cities,if not different countries.

Question 60

__________ is less relevant for independent work that does not require ongoing coordination between professionals for different organizations.

Question 61

It is rare in today's flat world to find important projects that are being completed totally in-house.

Question 62

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

Question 63

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

Question 64

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

Question 65

Co-location is less relevant for independent work that does not require ongoing coordination between professionals from different organizations.

Question 66

When using the partnering approach to manage contracted relationships,each party's goals and objectives are similar but geared to what is best for them.

Question 67

When separating the people from the problem,negotiators don't react to the emotional outburst,but try to find the issues that triggered it.

Question 68

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

Question 69

Conflict is inevitable on a project;however,if it is handled effectively,it can elevate performance.

Question 70

Project managers have the capability to manage customer expectations and perceptions.

Question 71

When using the partnering approach to manage contracted relationships,access to each other's organization resources is available.

Question 72

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

Question 73

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

Question 74

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

Question 75

In order to keep the customer happy and to keep perceptions about performance high,it is acceptable to falsely assure customers that everything is on track,especially if you feel that the problem will be resolved soon.

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

It is a good idea to add a penalty clause to an outsourcing agreement to ensure that work is completed on time.