MASTER IN MANAGEMENT TOPICS FOR FINAL EXAM

ACADEMIC YEAR 2020/2021 (I year)

I. CORE TOPICS FOR ALL TRACKS
1. Describe one of the contemporary management theories/ideas. Explain its origins. What are key
assumptions about organization, its members, and human being in provided theory/idea? Discuss
pros and cons of its implementation, as well as potential difficulties in its implementation in
contemporary organizations.
Contingency management theory basically is the idea in which there is no specific management style that will suit one company .
ONE SIZE FITS ALL.
It all depends on : size of organization, the technology that they use and the leader
Leader should be flexible;
Pro : more flexibility , adapt to change , suit the people
Cons: Lack of standardized system
2. Classical - Aristotle's - theory of management and modern theories. What are the major differences?
What is the concept of human being underlying them? Provide examples of contemporary
organizations that reflect classical concept of "good firm".

- Classical management theory: workers only have physical and economic ( HUMAN MACHINE)
Needs focus on money, increasing productivity and profit ( HUMAN MACHINE)
- Modern theory: workers have job satisfaction and social life

Difference in the reward and motivation: the other one focus on money and the other one can use different way more life work
balance

3. Individual decisions of managers and employees in organizational hierarchy - discuss the

consequences for organization, its members, customers, and society based on example of chosen
contemporary firm/firms.
Example Firm: Amazon

Organization: Individual decisions of managers and employees can impact the organizational culture and values of the company.
For instance, if managers prioritize meeting delivery deadlines over employee safety or work-life balance, it can lead to a toxic
work environment that negatively impacts employee morale and productivity.

Members: Individual decisions of managers and employees can also impact the well-being of the members of the organization.
For instance, the high-pressure work environment and performance targets at Amazon have been linked to high levels of stress
and burnout among employees, which can have negative impacts on their mental and physical health.

Customers: Individual decisions of managers and employees can impact the customer experience. For instance, if warehouse
workers are overworked and underpaid, it can lead to a higher likelihood of errors and delays in delivery, which can negatively
impact customer satisfaction and loyalty.

Society: Finally, individual decisions of managers and employees can have wider social implications. For instance, Amazon has
been criticized for its labor practices and environmental impact, including the use of fossil fuels in its transportation network and
the high carbon emissions associated with its data centers. These decisions can have a negative impact on society as a whole,
contributing to climate change and exacerbating income inequality.

4. What is the main understanding of the definition of privacy as the right to be left alone, and what
consequences it has in the perception of other freedoms?
Privacy is predominantly understood as the right to be let alone by others. It protects an
individual against intrusions upon the private sphere
Impact on freedom of expression, freedom of assembly, It is important for laws and policies that protect privacy rights to strike a
balance between protecting individual
5. What is digital maturity and what are the main reasons for measuring it?
Digital maturity is the ability of an organization to respond and take advantage of technological
developments that change how the market functions.
Digital Maturity Index (DMI) measures an organization’s capabilities and results in light of the
transformation challenge. Thinking digital means being aware that your customers, products,
operations, and competitors are digital or in the process of becoming digital. ( through survey of stakeholders)
6. What is the difference between digitization, digitalization and digital transformation?
- Digitization is the conversion of any document into a digital format that is understood by the
computer system. Analog into digital. ( SCAN )
 - Digitalization is the use of converged digital technologies to optimize and automate the entire
value chain of the business in order to deliver differentiated value proposition to the customers.
Redefine how enterprises interact with customers. Allows to effectively manage customer
experience ecosystem ( ONE PROCESS BEING DIGITAL)
- Digital transformation is a complete new form of business, using only digital means.
( ELIMINATE ANY ANALOG MEAN) EX SPOTIFY

7. What are the main competences of the future that will be needed on the labour market?
-Soft skills ( leadership, communication , time management, creativity)
- Digital literacy
8. Key theories explaining international behaviour of firms: compare OLI framework, Uppsala model,
and Born-global approach. What are the main assumptions of the OLI paradigm? What is a “born
global” firm and how it challenges the postulates of the Uppsala model? Which framework(s) is
particularly insightful in terms of FDI undertaken by MNCs?
OLI Paradigm assums that the firm only goes international if there is any benefit that they have from it ( location benefit,
ownership and internalization); Driven by the need

Uppsalla: focus on the stage in which the company gradually expand its international presence, maybe start from export and
gradually go through licensing or another type. Driven by the capacity

Born Global: Start internationally from the beginning. Drive by the desire to access large global market

In term is FDI taking MNC, The OLI is insightful because it takes into account the desire of the company to grow internationally
and look toward the benefit first and align them with the need of the company
9. International business strategy (IBS) – motives, key choices and their determinants: motives
(why?), timing (when?), market selection (where?), entry mode selection (how?), local
responsiveness/global integration challenge (what product/service or business model’s features, if
any, need to be localised? What is a desired level of standardisation/global integration)? Discuss
whether and how key IBS’ choices differ between MNCs, SMEs and INVs.
The are many reason why a company may decide to go international
- Market motive : new market
- Resource seeking : access to new resource such as material
- Efficiency: reduce cost
Timing is crucial, first come advantages but depending on whether the company is ready or not and the challenge that they may
have , also with the market selection. It all should depend on the size of the company , its product and the market
The entry mode should be dependent on the objective of the company.
Main difference
MCE may have strong branding , a lot more capital
SME challenged by the resources but very flexible and possibility to adapt to new market

Basically it depends on the objective and the size of the company, its resources

10. Low- and high-risk entry modes: Discuss advantages and disadvantages of non-equity and equity
modes.
The low-risk entry modes refer to non-equity entry modes, such as licensing, franchising, joint venture, and strategic alliances.
These modes allow a company to enter a foreign market without investing a large amount of capital and without taking
ownership of the operations in the foreign market.

Advantages of non-equity entry modes include:

Reduced risk because reduced investment

Access to local knowledge: Companies can take advantage of the knowledge and expertise of local partners when entering a new
market.

Flexibility: Non-equity modes are often more flexible, allowing companies to change their approach as the market develops.
The high-risk entry modes refer to equity entry modes, such as acquisition and greenfield investment. These modes require a
company to invest a large amount of capital and take ownership of the operations in the foreign market.

Advantages of equity entry modes include:

Full control, full profitability

Increased profitability:
Long-term commitment: Equity entry modes demonstrate a long-term commitment to the foreign market, which can help to build
trust with local customers and partners.
Access to local resources: Equity entry modes provide access to local resources, such as employees and suppliers, which can help
to build a strong foundation for the business.

Disadvantages of equity entry modes include:

Increased risk via large investment

Culture differences: Companies may struggle with cultural differences in the foreign market, which can lead to communication
difficulties and reduced effectiveness.

Integration challenges: Integrating the operations in the foreign market into the existing business can be a challenge, particularly
if the business processes and culture are significantly different.

11. Organizational structures and knowledge flows in multinational corporations (MNCs).

Characterize four main corporate international strategies relying on Barlett & Ghoshal
framework.

When a company is going global there are 2 main forces that will put pressure on them
- The local responsiveness which means that the company has to adapt their product to the local needs and use
- Global integration which means that the company has pressure to keep the same standard of the company even when
being international ( standard product)
There are for scale of these pressure
Global: high local responsiveness and low global integration
Transnational: both high ( starbucks)
International: both low ( MACDO)
Multidomestic; Global integration high, local responsiveness low ( SPECIFIC STRATEGY FOR EVERY COUNTRY )

12. Sources of economic growth: exogenous versus endogenous growth theories. What is the role of
human capital accumulation in economy? What are the knowledge spillovers?
- Exogenous growth theories: focus on external factors such as technological progress.
- Endogenous growth theories: focus on internal factors such as human capital Human capital accumulation is positively
correlated to economic growth since investment tends
to boost productivity.
Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management,
it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which
contribute to economic growth.

Knowledge spillover occurs when recipient firms exploit knowledge that has been originally
developed by another firm (i.e., originating firm) (Griliches, 1992). These recipient firms may be
alliance partners, direct competitors of the originating firm, or firms from other industrial sectors.

13. Outline economic impacts of climate change. What economic tools may be used in addressing
mitigation and adaptation policies?

Climate change has a huge impact on the economy because it has an impact in many businesses from agriculture to transportation
, tourism and so on.
R&D investments can help create new and innovative technologies for reducing emissions and adapting to the impacts of climate
change.
Carbon pricing through carbon for example

14. Concept of market equilibrium. Effects of setting maximum and minimum prices.
Market equilibrium – when supply meets the demand
Effects of setting max price:
Quantity of demand > quantity of supply, shortages, black market, forced substitutes
Effects of setting min price:
Quantity of supply > quantity of demand, too much supply, government has to buy the surplus

15. Explain the differences between deductive and inductive approaches to research.
Deductive research – theory testing. A theory provides hypotheses about how things are in the
world. We gather data to test the hypotheses. Usually quantitative research within positive
paradigm.
Existing theory -> Hypothesis -> Observations -> Confirmation
Inductive research – theory building. Data collected and patterns in data examined. This aids the
development of theory or model. Usually qualitative research within interpretivist paradigm.
Observation -> Patterns -> Theory development
16. What are Type I and Type II errors in the statistical hypothesis testing?
Type I error: Rejecting the null hypothesis when it is true.
Type II error: Not rejecting (note: avoid saying “accepting” or “retaining”) the null hypothesis
when it is false.
The Null Hypothesis – symbolized as H0
H0: The finding was simply a chance (random) occurrence – nothing really occurred
17. What are the assumptions of the independent samples t-test compared to the assumptions of the
one-way ANOVA test?
T-test: 2 population , sample , variables equally distributed

ANOVA: 3 or more ample population , variable independent from each other

18. How financial and non-financial information can be used to assess performance of a company?
Both are crucial for evaluating a company.
There is the typical financial information found on balance sheet, such as the turnover. Annual growth, profit and expense .

There is the non financial information such as market share, clients and employee satisfaction., brand reputation.

19. Discuss different responsibility centers and possible measures of performance for each of them.
Revenue Center are units within an organization that are responsible for specific areas of the business
revenue center is solely responsible for generating sales. A typical revenue center is the sales
department. ( directly,
Cost Center is solely responsible for the incurrence of certain costs. A typical cost center is the
janitorial department. ( cost to generate revenue, such as R&D department) measures in cost control
Profit Center is responsible for both revenues and expenses, which result in profits and losses. A
typical profit center is a product line, for which a product manager is responsible.
Investment Center ( retail store for example) , profit, margin as measurement
investment center is responsible not only for profits, but also for the return on funds invested
in the group's operations. A typical investment center is a subsidiary entity, for which the
subsidiary's president is responsible. ( subsidiaries, ) possible measurement ROI
20. Using Financial Ratios - liquidity, leverage, profitability, efficiency. Choose 2-3 ratios from each
group and provide a managerial interpretation.
Liquidity Ratios: Liquidity ratios measure a company's ability to pay its short-term obligations as they come due.

Current Ratio: This ratio measures a company's ability to pay its short-term obligations by dividing current assets by current
liabilities. A current ratio of 1.5 or higher is considered healthy, ( comfort to creditors if high ,if low reduce expense)

Quick Ratio: This ratio is similar to the current ratio, but it excludes inventory from current assets, since inventory is less liquid
than other assets. A quick ratio of 1 or higher

Profitability Ratios: Profitability ratios measure a company's ability to generate profits from its operations. ( if high may seek to
increase dividend payment )

Gross margin: the proportion of revenue that remains after subtracting the cost of goods sold, higher the better

Return on Equity: This ratio measures the return that a company is generating for its shareholders by dividing net income by
shareholder equity. high ROE indicates that a company is generating high returns for its shareholders
21. Net present value & alternative investment decision rules (PP, DPP, NPV, IRR). Provide a
managerial interpretation of each metric.
NPV : NET INCOME MINUS THE INITIAL INVESTEMENT, high = potential to increase company’s wealth
Payback period: Time in which the initial investment to be recovered. Short= low risk ,
Discounted PP: similar to PP but takes into account the time value of money.
Internal rate of return: Evaluate the profitability of an investment and compare 2 investment that may have the same cost but
different RR, the higher the better
22. Raising capital using the Warsaw Stock Exchange (GPW Main Market, New Connect, Catalyst,
BondSpot; How to become listed on the exchange (IPO)? What are the benefits of going public
on the exchange?
Has to go through different initial public offering and meet certain listing requirement ( depending on the size , the owner and
profitability)
Benefits:
 access to capital, a lot of investors
 increased prestige and visibility
 benefits for shareholders – potential to cash out
Liquidity _easier to buy and sale
23. Multinational Enterprises (MNEs) as establishment forms of commercial presence abroad. Explain
legal concepts of a parent company, branch, subsidiary and representative office. Which of them
can be parties to a contract and bear liability for contractual obligations? What can be the reasons
for having a holding company/companies established in an MNE?
PARENT COMPANY
• a head office for MNE
• owns and controls subordinate entities
BRANCH
• unit or part of a company
• not separately incorporated
SUBSIDIARY –
• company owned by a parent or a parent’s holding company
• separate entity
REPRESENTATIVE OFFICE
• contact point (information, marketing)
• does not conduct business operations
HOLDING COMPANY
• Tax optimization
• supervises and coordinates the subsidiaries
centralization of management
only a parent company, branch and subsidiary can be parties to a contract and bear liability for contractual obligations. A
representative office does not have the legal authority to enter into contracts on behalf of the parent company
24. MNE structures with more than one parent company: discuss how they are typically created and
what are standard legal means to facilitate their functioning.
There are 4 main ways:
- Acquisition where one parent company acquired another parent company and the acquired one become a subsidiaries , both will
be a separate legal entities

- Joint Ventures,: 2 companies become 1 legal entity to pursue common goal

- Holding companies; one parents company has a control over another parent company

- Greenfields: creation of a subsidiaries which will have its own legal status
25. Methods of payment in international commercial transactions and their contractual forms. Explain
the allocation of risks between the parties in prepayment by clean remittances and in selling on
open account. Factoring and forfaiting as transactions on accounts receivable – what is their
purpose, object and differences between them?
-Prepayment by Clean Remittances : All risk on the buyer, good paid before delivery
-Selling open account: All risk on the seller, good paid after delivery
-Factoring: Seller sells its receivable to a third party and the third party advances a portion of the invoice. Less risk for both and
access to cash to by the seller ( SELLER IS STILL RESPONSIBLE)
-Forfaiting; same is Factoring but the seller has to sell its receivable to a 3rd party , typically a bank at a discounted prince. Main
difference is that the receivable are sold to the 3rd party and not a financial arrangement ( FORFAITER FULLY REPONSIBLE)

SPECIALIZATION:
1.Leading organizations (societies) providing project management standards and methodologies. Please
indicate the similarities and differences between PM methodologies.

Leading organizations in project management standards and methodologies include:

- Project Management Institute (PMI)
- Association for Project Management (APM)
- International Project Management Association (IPMA)

Similarities between PM methodologies:

improve the success rate of projects

focus on project planning, execution, monitoring and control, and closing

Differences between PM methodologies: detail of each step can differ, approach to risk management
can differ, for example PMI is more rigor and Prince2 is more about flexibility

• PMI focuses on a process-oriented approach to project management, with an emphasis on

standardization through its Guide to the Project Management Body of Knowledge (PMBOK).
• IPMA takes a more holistic approach, incorporating elements such as project leadership and
stakeholder engagement.
• APM emphasizes the strategic and business value of project management, and provides
professional development opportunities for project managers.
PMI and APM are process-driven methodologies, while IPMA's approach is more focused on individual
competencies

2. What is the triangle of the project and for what purpose it is used.
The triangle of the project is a visual representation of the interdependent relationship between three
main constraints of a project: cost, time, and scope. It's used to show the trade-off between these
constraints and the need for project managers to balance them in order to successfully complete a
project within budget, on time, and to the required level of quality.

3. Risk management in projects. Tools and techniques. ( 5)

• Risk identification: This involves listing out all potential risks that could impact the project, such
as changes in project scope, budget overruns, or schedule delays.

• Risk assessment: This involves evaluating the likelihood and impact of each risk and determining
its overall level of risk.

• Risk prioritization: This involves determining which risks pose the greatest threat to the project
and need to be addressed first.
 • Risk response planning: This involves developing strategies to mitigate the risks, such as
increasing project budget, adding contingency time, or changing project scope.

• Risk monitoring and control: This involves tracking the project's progress and making any
necessary adjustments to the risk response plan

4. Project, program, project portfolio - differences in management.

• Project: A temporary effort with a specific goal and timeline to produce a unique product,
service, or result.

• Program: A group of related projects managed in a coordinated way to achieve common goals
and benefits.

• Project Portfolio: A collection of projects, programs, and other work that are grouped together
to align with an organization's strategy and to improve the overall performance.

Differences in management:

• Project management focuses on delivering a specific product or service within a defined time
and budget.

• Program management focuses on coordinating and aligning multiple projects to achieve

common goals and benefits.

• Project portfolio management focuses on prioritizing and selecting the right mix of projects to
achieve organizational goals, ensuring the alignment of projects with the organization's strategy
and optimizing the overall performance of the portfolio.
5. Methods of financial analysis of projects.

The first step is to identify the cost benefit analysis, which include cost benefit ratio to see if the benefit
outweigh the cost, pay back period to see how long it will take , it will help to assess the risk of the
project and once we have that we can analysis the potential ROI for the project compared to our
investment

• Cost-Benefit Analysis: compares the estimated costs of the project to its expected benefits
to determine if the project is worth pursuing: ROI,PP, BENEFIT COST RATIO
• Net Present Value (NPV): calculates the present value of future cash flows from the project,
taking into account the cost of capital.
• Internal Rate of Return (IRR): calculates the rate at which the NPV of a project is equal to
zero, indicating the profitability of the project.
• Payback Period: measures the time it takes for a project to pay back its initial investment.
• Benefit-Cost Ratio (BCR): calculates the ratio of benefits to costs to determine if the benefits
of the project outweigh the costs.
 • Return on Investment (ROI): measures the return on investment in a project, comparing the
net benefits to the initial investment.
These methods help to determine if a project is financially viable and will generate a positive return
for the organization.
6. Managing the change introduced by the project in the organization in which the project is carried out.

• Identifying and assessing the impact of the change on various stakeholders, such as employees,
customers, and suppliers.
• Developing a communication plan to inform stakeholders of the change and its impact.
• Implementing a training plan to ensure that employees have the skills and knowledge needed to
adapt to the change.
• Developing a support plan to help stakeholders adjust to the change, such as providing
additional resources or assistance.
• Monitoring and adjusting the change management plan as needed to ensure that the change is
successfully implemented and sustained.
7. Project change management. Key elements and concepts.

• Change control process: A formal process for managing changes to the project, which includes
reviewing, evaluating, and approving or rejecting change requests.
• Change request: A request for a change to the project, which includes the justification for the
change and its impact on the project.
• Change log: A record of all change requests and the decisions made about them.
• Impact analysis: An assessment of the impact of a change on the project, including the impact
on the schedule, budget, and resources.
• Communication plan: A plan for communicating changes to stakeholders, including the project
team, sponsor, and customers.
• Stakeholder management: The process of managing stakeholders' expectations and ensuring
that their interests are considered in the change management process.
8. New trends and the future of project management.
characterized by a growing focus on agility, innovation, digital transformation, and sustainability.
9. Traditional methodologies and agile methodologies - similarities and differences.

• Similarities: Both aim to deliver a successful project outcome within budget and on time. Both
also prioritize stakeholder satisfaction and communication.

Differences:

• Approach: Traditional methodologies follow a linear, sequential approach with defined phases
and deliverables, while Agile methodologies follow an iterative and adaptive approach, where
requirements and solutions evolve through collaboration.
• Documentation: Traditional methodologies rely heavily on extensive documentation, while Agile
methodologies prefer lightweight documentation.
• Roles and Responsibilities: Traditional methodologies have clearly defined roles and
responsibilities, while Agile methodologies have more cross-functional and self-organizing
teams.
 • Planning and Control: Traditional methodologies have a centralized plan and control approach,
while Agile methodologies empower teams to plan and control their own work.
• Flexibility: Traditional methodologies are less flexible to change, while Agile methodologies
embrace change and encourage adaptation
10. Basic project management processes. ( IPEMC)

1 Initiating - starting the project by defining the problem or opportunity, and developing a
business case to determine if the project is worth pursuing.

2 Planning - determining the objectives, scope, resources, schedule and budget for the project.
This involves creating a project management plan and work breakdown structure.

3 Executing - implementing the project activities and using the project management plan to guide
the work.

4 Monitoring and controlling - regularly monitoring the project to ensure it stays on track, and
making changes as needed to keep the project on schedule, within budget, and meeting quality
expectations.

5 Closing - completing the project and formally closing it out, which includes evaluating the
project's performance and documenting the results for future reference
11. Documentation in projects - objectives, scope, responsibilities related to it, method of conduct.

• Objectives: Documentation outlines the objectives of the project and provides a clear
understanding of what the project aims to achieve.

• Scope: Documentation defines the scope of the project, including what is included and what is
excluded from the project.

• Responsibilities: Documentation clarifies who is responsible for creating and maintaining

different types of project documentation.

• Method of Conduct: Documentation outlines the method by which documentation will be

created and maintained throughout the project.
12. Project management office (PMO) - goals, scope of duties, principles of operation.

• A Project Management Office (PMO) is a centralized team or department within an organization

responsible for defining and maintaining project management standards, processes, and
guidelines. The main goals of a PMO are to improve the overall efficiency and effectiveness of
project delivery, provide consistent project management practices across the organization, and
support decision-making by providing information and analysis. The scope of duties of a PMO
can vary depending on the organization, but typically includes areas such as project portfolio
management, risk management, resource allocation, project governance, and performance
measurement.

The principles of operation for a PMO typically include the following:

 • Alignment with the organization's strategy and goals
• Clear definition of roles and responsibilities
• Adherence to project management standards and processes
• Use of data-driven decision making
• Continuous improvement and adaptation to changing needs.

13. Project team management. Motivation of the project team.

• Clarification of roles and responsibilities: All team members should have a clear understanding
of their roles and responsibilities within the project.

• Good communication: Regular and effective communication is essential for building trust and
strong relationships within the team.

• Encouragement of participation: All team members should feel valued and be encouraged to
contribute their skills, knowledge and ideas to the project.

• Recognition and reward: Team members should be recognized and rewarded for their hard
work and contributions to the project.

• Flexibility and adaptability: The team should be flexible and adaptable to changes and
challenges that may arise during the project.

• Conflict resolution: Conflicts within the team should be identified and resolved in a constructive
and timely manner
14. Implementation of project management in the organization. Transition from traditional
management to project management. Please indicate the most important elements.

Apply basic change implementation : Change process which assessing why and where the change Is
needed. Then assessing the impact to the stallholders. Plan a communication , training the stake
holders and monitoring the transition

15. Project stakeholders. Communication of the project with the environment.

• Identifying stakeholders and understanding their interests and needs

• Developing a communication plan that outlines the frequency, method, and content of
communication
• Regularly communicating project updates and progress to stakeholders
• Encouraging feedback and ensuring that stakeholders' concerns are addressed
• Managing stakeholders' expectations and ensuring that they understand the project goals and
objectives.
16. Computer-aided project management tools. IT support for projects. The most important elements
and qualities.

• User-friendly interface: The tool should be easy to use and accessible to all team members.
• Integration with other tools: The tool should integrate with other software used in the project,
such as calendars, task management tools, and financial management systems.
• Real-time updates: The tool should provide real-time updates on the status of tasks and project
progress, so that all team members are always informed.
• Customization: The tool should be customizable to meet the specific needs of the project and
the organization.

• Reporting and analysis: The tool should provide robust reporting and analysis capabilities, such
as project performance metrics, risks and issues, and progress tracking.
• Security: The tool should have robust security features to ensure that sensitive project
information is protected.
17. Products and quality assurance of project products.
Quality assurance of project products involves a systematic approach to evaluating the quality of the
project deliverables and ensuring that they meet the required standards. The key elements and qualities
of quality assurance in projects include:

• Defining quality standards and expectations: The project team must agree on the standards for
quality and establish clear expectations for the project deliverables.

• Quality planning: Quality planning involves defining the activities and processes required to
ensure quality in the project.

• Quality control: This involves the ongoing monitoring and inspection of the project products to
ensure that they meet the quality standards.

• Quality improvement: If quality control reveals areas for improvement, quality improvement
activities are undertaken to address these issues.

18. Project maturity model of the organization. What is Project maturity model? What are most
important elements? What is the purpose of model?

The Project Maturity Model (PMM) is a matrix that illustrates how a company's project management
process evolves over time. The purpose of the model is to provide organizations with a roadmap for
achieving excellence in project management.
Level 1: Initial - Ad-hoc and chaotic project management processes, with little or no standardization or
consistency.

Level 2: Repeatable - Basic project management processes and tools are in place, with some
standardization and consistency.
Level 3: Defined - Standardized project management processes are well-defined and documented, with
a focus on continuous improvement and efficiency.

Level 4: Managed - Project management processes are monitored and measured for performance, with
a focus on proactive risk management and quality assurance.

Level 5: Optimized - Project management processes are fully optimized, with a focus on continuous
improvement and innovation, and a culture of project management excellence.
19. Typology of projects according to different categories.

• Based on size: Small, medium, large projects

• Based on duration: Short-term, long-term projects
• Based on complexity: Simple, complex projects
• Based on type of industry: Construction, IT, Manufacturing, etc.
• Based on type of product or service: Development, research, operational, maintenance projects
• Based on the degree of innovation: Routine, innovative projects
• Based on organizational structure: Internal, external projects
20. Organization strategy and projects and project management. Mutual influences.
The organization's strategy sets the direction for the company and guides decision making.
Projects are a means for the organization to achieve its goals and objectives.

Project management helps ensure that the project is delivered on time, within budget, and to the
required quality standards.

The organization's strategy should align with the project goals and objectives.
The success of the project can impact the organization's strategy, as it may lead to the development of
new opportunities and capabilities.
On the other hand, the organization's strategy can also impact the project, as it may provide guidance
and constraints for project activities.
Effective communication between the organization and the project team is important to ensure that the
project is aligned with the organization's strategy.

21. Financial measures of PM performance

• Cost Performance Index (CPI): Indicates the relationship between actual cost and planned cost
of a project. A value less than 1 means the project is over budget, while a value greater than 1
means the project is under budget.

• Schedule Performance Index (SPI): Indicates the relationship between actual progress and
planned progress of a project. A value less than 1 means the project is behind schedule, while a
value greater than 1 means the project is ahead of schedule.

• Return on Investment (ROI): Indicates the amount of return on investment for a project
compared to the amount invested.
 • Benefit Cost Ratio (BCR): Indicates the ratio of benefits from a project to its costs. A value
greater than 1 means the benefits of the project exceed its costs.

• Net Present Value (NPV): Indicates the present value of future cash flows from a project,
adjusted for the time value of money. A positive NPV indicates that the project is financially
viable.

• Internal Rate of Return (IRR): Indicates the rate of return for an investment, taking into account
the time value of money. A high IRR indicates that the project is a good investment.
22. Financial tools for project management planning. Methods of estimating.

• Cost estimating: Involves predicting the costs of the project to determine its feasibility and
budget.

• Budgeting: The process of allocating the estimated costs to individual project activities.

• Cost-benefit analysis: Comparing the costs of the project with the expected benefits to
determine its value to the organization.

• Return on investment (ROI): Calculates the net gain or loss generated by the project as a
percentage of the investment.

• Net present value (NPV): Calculates the present value of the expected cash flows generated by
the project.

• Payback period: Calculates the time required for the project to generate enough cash flows to
recover its initial investment.

• Benefit cost ratio (BCR): Calculates the ratio of benefits to costs, indicating the value of the
project to the organization.

23. Project as a financial cost center

A project as a financial cost center refers to a situation where the primary objective of a project is to
incur costs in order to achieve specific benefits. In other words, the project is seen as a cost center
because it consumes resources (e.g., time, money, personnel) without producing a direct financial
return. The benefits generated by the project are usually intangible and/or non-monetary in nature,
such as increased customer satisfaction, improved employee morale, or enhanced brand reputation.
Example, hiring new software developer,

24. Risk and crisis. Similarities and differences

• Risk: refers to the possibility of an event that may negatively impact a project and its objectives.
 Risk management: a systematic approach to identifying, assessing, and mitigating or accepting
risks in a project.
• Crisis: refers to a significant unexpected event that threatens the success of a project and
requires immediate attention.
Crisis management: a proactive approach to preparing for and responding to crisis situations
that may arise in a project.
• Similarities:

Both risk and crisis have the potential to negatively impact a project and its objectives.
Both require a systematic approach for identification, assessment, and management.
Both require proactive planning and preparation to minimize negative impact.
• Differences:

Risk is a potential future event, while crisis is an unexpected event that is already occurring.
The focus of risk management is on prevention and mitigation, while crisis management focuses
on response and recovery.
The scale of impact is greater in crisis compared to risks.
25. Crisis management team and response – main features

• Detecting the early signs of a crisis.

• Identifying the potential risks and concerns.
• Assessing the impact of the crisis.
• Preparing and activating an action plan.
• Communicating the solution to employees and the public.
• Implementing standards to prevent the crisis from reoccurring

26. Risk response techniques for project management

• Avoidance: Eliminating the risk by removing the cause

• Transfer: Shifting the risk to another party
• Mitigation: Minimizing the impact of the risk
• Acceptance: Deciding to accept the risk and its consequences
• Contingency planning: Developing a backup plan for a risk that may occur
• Insurance: Purchasing insurance to transfer the risk to the insurance company
• Diversification: Spreading the risk across multiple projects or activities
27. Reporting and communication in project management. How reporting tools and communication
techniques influence each other?

Reporting and communication in project management are closely related as they both aim to provide
information about the project's progress and status. The use of reporting tools, such as dashboards,
charts, and progress reports, helps to provide a clear picture of the project's status and highlight areas
that need attention. Communication techniques, such as regular meetings, updates, and email, facilitate
the dissemination of this information to relevant stakeholders and ensure that everyone is on the same
page. The two elements influence each other in that effective reporting helps to support clear
communication, while effective communication helps to ensure that the information contained in the
reports is understood and acted upon.
28. Tools and techniques for scheduling. Please indicate the most important
Task list : simply a list of activities showing who is responsible and giving deadlines.

WBS( Work breakdown structure) : hierarchical representation of every step needed to deliver the
project, great first step in breaking down a project scope into smaller, more manageable chunk
Gantt Chart : It’s a horizontal bar chart that tracks activities over time and allows you to communicate
the project timeline visually

29. Tools and techniques for scope management and product management planning. Please indicate the
most important : same as 28
The Statement of Scope (SOS) is a document that defines the boundaries and goals of the project. It
typically includes a description of the project, the objectives, and the deliverables. The SOS provides a
clear and concise overview of the project scope, which is important for ensuring that all stakeholders
understand the project's goals and objectives.

The Work Breakdown Structure (WBS) is a tool that breaks down the project scope into smaller, more
manageable components. It provides a hierarchical view of the project and helps to identify all the work
that needs to be done to complete the project. The WBS can be used to create a schedule, estimate
costs, and allocate resources.
30. What is business case document and project charter document. Describe content and purpose. How
do they influence each other?

• Business Case Document:

Defines the rationale behind a proposed project or investment

Outlines the expected benefits, costs, and risks of the project
Helps decision-makers to determine whether the project is worth pursuing

• Project Charter Document:

A formal document that defines the project and its goals, objectives, and stakeholders
Outlines the project scope, timeline, and budget
Identifies the project manager and the team members involved
Business Case Document and Project Charter Document:

Both documents are important for project planning and decision-making

The Business Case Document provides the financial justification for the project, while the Project
Charter Document outlines the project plan
The Business Case Document may be used to create the Project Charter Document, and the Project
Charter Document may be updated as the project progresses
Together, these documents provide a clear picture of the project, its goals, and its expectations for
success.