Outsourcing: Managing Interorganizational Relations

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Question 1
Free
Multiple Choice

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

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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.

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Question 2
Free
Multiple Choice

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

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A

Subcontracting.

B

Downsizing.

C

Partnering.

D

Joint venture.

E

Outsourcing.

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Question 3
Free
Multiple Choice

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

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A

Telecommunications.

B

Partnering.

C

Outsourcing.

D

Service shift.

E

Bilingual customer service.

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Question 4
Free
Multiple Choice

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

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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.

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Question 5
Free
Multiple Choice

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

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A

Shortened project duration.

B

Reduced costs.

C

Higher level of expertise.

D

Reduced conflict.

E

Increased flexibility.

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Question 6
Multiple Choice

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

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A
Increased conflict.
B
Coordination breakdowns.
C
Increased costs.
D
Loss of control.
E
More internal morale issues.
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Question 7
Multiple Choice

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

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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.
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Question 8
Multiple Choice

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?

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A
Arbitration
B
Escalation
C
Collaboration
D
Mediation
E
Regulation
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Question 9
Multiple Choice

Key practices in the partnering approach to managing contracted relationships include

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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.
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Question 10
Multiple Choice

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?

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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
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Question 11
Multiple Choice

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

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A
Mutual trust
B
Jointly shared risk
C
Total company involvement
D
Independent project teams
E
Long-term commitment
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Question 12
Multiple Choice

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

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A
Structured communications
B
Long-term commitment
C
Total company involvement
D
Shared risk
E
Mutual trust
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Question 13
Multiple Choice

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

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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
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Question 14
Multiple Choice

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

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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.
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Question 15
Multiple Choice

Best practices in outsourcing project work include all the following EXCEPT

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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.
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Question 16
Multiple Choice

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

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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.
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Question 17
Multiple Choice

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

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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.
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Question 18
Multiple Choice

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

Choose correct answer/s
A
Signed contract.
B
Legal partnership agreement.
C
Project plan.
D
Partnering charter.
E
Responsibility matrix.
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Question 19
Multiple Choice

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

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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.
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Question 20
Multiple Choice

What does the acronym BATNA stand for?

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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
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