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CAPM Exam Terminology
360-Degree Appraisal correct answer A performance review completed by a person's peers, managers, and subordinates. It's called a 360-degree appraisal as it's a circle of reviews by people at different levels of an organization. Active Listening correct answer This occurs when the receiver confirms the message is being received by feedback, questions, prompts for clarity, and other signs of having received the message. Activity on Node correct answer A network diagramming approach that places the activities on a node in the project network diagram. Analogous Estimating correct answer This relies on historical information to predict estimates for current projects. Also known as top-down estimating and is a form of expert judgment. Benchmarking correct answer A process of using prior projects within or external to the organization to compare and set quality standards for processes and results. Bidder Conferences correct answer A meeting with prospective sellers to ensure all sellers have a clear understanding of the product or service to be procured. Bidder conferences allow sellers to query the buyer on the details of the product to help ensure that the proposal the seller creates is adequate and appropriate for the proposed agreement. Bottom-Up Estimating correct answer A technique where an estimate for each component in the WBS is developed and then totaled for an overall project budget. This is the longest estimate to complete, but it provides the most accurate estimate. Change Control Board correct answer A group of decision makers that review proposed project changes.
Communications Formula correct answer The formula N(N-1)/2 shows the number of communication channels in a project. N = total number of stakeholders. Composite Structure correct answer An organizational structure that uses a blend of the functional, matrix, or projectized organization to operate and manage projects. Compromising correct answer A conflict resolution method; this approach requires both parties to give up something. The decision ultimately made is a blend of both sides of the argument. Because neither party completely wins, it is considered a lose-lose solution. Contingency Reserve correct answer A time or dollar amount allotted as a response to risk events that may occur within a project. Control Charts correct answer These illustrate the performance of a project over time. They map the results of inspections against a chart. Upper and lower control limits indicate if values are within control or out of control. Cost of Conformance correct answer The cost of completing the project work to satisfy the project scope and the expected level of quality. Also known as the cost of quality. Cost of Nonconformance correct answer The cost of not completing the project with quality; includes wasted time for corrective actions, rework, wasted materials. Also known as cost of poor quality. Crashing correct answer A duration compression technique that adds project resources to the project in an effort to reduce the amount of time allotted for effort-driven activities. Critical Chain Method correct answer A network diagramming approach that considers the availability of project resources and the project's promised end date to determine the critical path(s) in the project.
Exploit correct answer The organization wants to ensure that the identified risk does happen to realize the positive impact associated with the risk event. Fast Tracking correct answer A schedule compression technique that allows phases to overlap in order to compress the schedule and finish the job faster. Fast tracking does increase project risk. Feedback correct answer Sender confirmation of the message by asking questions, requesting a response, or other confirmation signals. Finish-to-Finish correct answer A relationship between project activities where the predecessor activities must finish before successor activities may finish. Finish-to-Start correct answer A relationship between project activities where the predecessor activities must finish before the successor activities may start; this is the most common network diagramming relationship type. Float correct answer A generic term to describe the amount of time an activity may be delayed without delaying any successor activities start date. Formal Power correct answer The type of power where the project manager has been assigned by senior management to be in charge of the project. Forming correct answer The initial stage of team development; the project team meets and learns about their roles and responsibilities on the project. Functional Managers correct answer The managers of the permanent staff in each organizational department, line of business, or function. Project managers and functional managers interact on project decisions that affect functions, projects, and operations.
Functional Structure correct answer An organization that groups staff according to their expertise. Entities that have a clear division regarding business units and their associated responsibility. Project managers in functional organizations have little power and report to the functional managers and the project team all exist within one department. Herzberg's Theory of Motivation correct answer Posits that there are two catalysts for workers: hygiene agents and motivating agents. Hygiene agents do nothing to motivate, but their absence demotivates workers (i.e., job security, paychecks, clean/safe working conditions, sense of belonging). Motivating agents are components such as reward, recognition, promotion, and other values that encourage individuals to succeed. Indirect Costs correct answer These costs can be shared across multiple projects that use the same resources. Iron Triangle correct answer A term used to describe the three constraints of every project: time, cost, and scope. The sides of the triangle must be kept in balance or the quality of the project will suffer. Lag correct answer Time added to a project activity to delay its start time; lag time is considered positive time and it is sometimes called waiting time. Lead correct answer Time added to activity to allow its start time to begin earlier than scheduled; lead time is negative time as it moves the activities closer to the project's start date. Maslow's Hierarchy of Needs correct answer A theory that states that there are five layers of needs for all humans: physiological, safety, social, esteem, and self-actualization. Matrix Structure correct answer An organization that groups staff by function but openly shares resources on project teams throughout the organization. Project managers in a matrix structure share the power with functional management. There are three types of matrix structures: weak, balanced, and strong to describe the amount of authority for the project manager.
Procurement correct answer The process of a seller soliciting, selecting, and paying for products or services from a buyer. Progressive Elaboration correct answer The process of starting with a large idea and through incremental analysis, actions, and planning the idea becomes more and more specific. Project Sponsor correct answer Authorizes the project. This person/group ensures that the project manager has the necessary resources, including monies, to get the work done. The project sponsor is someone within the performing organization that has the power to authorize and sanction the project work, and is ultimately accountable for the project's success. Projectized Structure correct answer Group of employees, collocated or not, by activities on a particular project. The project manager in a projectized structure may have complete, or very close to complete, power over the project team. RACI Chart correct answer A chart which designates each team member against each project activity as either Responsible, Accountable, Consult, or Inform (RACI). A RACI chart is technically a type of responsibility assignment matrix. Receiver correct answer Part of the communications model; the recipient of the message. Referent Power correct answer Power that is present when the project team is attracted to, or wants to work on the project or with, the project manager. Referent power also exists when the project manager references another, more powerful person, such as the CEO. Run Chart correct answer Similar to a control chart, a run chart tracks trends over time and displays those trends in a graph with each plotted data mapped to a specific date. Start-to-Finish correct answer A relationship that requires an activity to start so that a successor activity may finish; it is unusual and rarely used.
Start-to-Start correct answer A relationship structure that requires a task to start before a successor task activity may start. This relationship allows both activities to happen in tandem. Storming correct answer The second stage of team development; the project team struggles for project positions, leadership, and project direction. Three-Point Estimate correct answer An estimate that uses optimistic, most likely, and pessimistic values to determine the cost or duration of a project component. Work Breakdown Structure correct answer A decomposition of the project scope statement into work packages. WBS Dictionary correct answer A companion to the WBS, this document defines all of the characteristics of each element of the WBS. Workarounds correct answer Unplanned responses to risks that were not identified or were accepted.
