Chapter 14
The PMI Code of Ethics and Professional Conduct
CERTIFICATION OBJECTIVES
14.01 Responsibilities to the Profession
14.02 Responsibilities to the Customer and to the Public
Two-Minute Drill
Q&A Self Test
The PMI Code of Ethics and Professional Conduct is the authoritative guide on how all PMI members should behave. In regard to the PMP exam, this PMI document defines how the Project Management Professional (PMP) should act as a professional and how the PMP should behave with customers and the public in general. Thus, as a PMP exam candidate, you will be tested on your knowledge of the PMI Code of Ethics and Professional Conduct, which is really about ethics, fair business dealing, and doing what’s fundamentally correct as a project manager.
The code, eight pages in length, covers a broad array of do’s and don’ts for PMI members. Essentially, the PMP should always take the high road. There should be no room for misconceptions, errors in judgment, or actions that could be interpreted as conflicts of interest, shady, or just plain wrong.
Whenever you are considering doing something that might be seen as unethical, remember this: “When in doubt, don’t do it.” The full PMI Code of Ethics and Professional Conduct is available through PMI’s web site at www.pmi.org, and you’ll have to agree to abide by it when you complete and submit your exam application.
The PMP exam covers more than just the PMI Code of Ethics and Professional Conduct in regard to professional responsibility. Many of these topics have been covered in communications and human resources. The PMI Code of Ethics and Professional Conduct is not a stand-alone exam topic, but it’s integrated into all of the process groups. You’ll be tested on ethics and professional conduct throughout the PMP examination, not just in one big chunk.
The four areas of professional responsibility consist of the following:
Responsibility
Respect
Fairness
Honesty
CERTIFICATION OBJECTIVE 14.01
Responsibilities to the Profession
The PMP must adhere to a high set of principles, rules, and policies. This includes the organizational rules and policies, the certification process, and the advancement of the profession. As you’re taking the PMP exam, always choose the answer that best supports the PMP profession and the higher set of principles the PMP is expected to adhere to. PMPs are to accept and manage only projects that they’re qualified to manage. And, as a PMP, you’re to aspire to follow the core of ethics not only in business but also in the project decisions that affect society, public safety, and the environment.
Complying with Rules and Policies
Honesty is expected in all areas regarding the PMP examination process, including the following:
Exam applications must be honest and reflect actual education and work experience.
You don’t provide false information for other PMP candidates, and you don’t ask others to do the same for you.
Test items, questions, answers, and scenarios are not to be shared with other PMP candidates.
PMP renewal information must reflect an honest assessment of education and experience.
Continuing education information must be honest and accurate and reflect actual courses completed.
The PMP should report violations of the PMI Code of Ethics and Professional Conduct when clear and factual evidence of this exists. Based on the scenario, the information may be presented to PMI, to the performing organization’s management, or to the proper law enforcement authorities.
The PMP must disclose to clients and customers scenarios in which the PMP may be perceived as having an unfair advantage or a conflict of interest, or if she may profit from conditions within the project. Any appearances of impropriety must be avoided and disclosed.
Be wary of the Internet. It’s tempting to scour the Web looking for more insight on the PMP exam, but PMP candidates are not to share exam question specifics with anyone. Furthermore, just because some clown in Boise says it’s a real-live test question doesn’t make it a real-live test question. Although practice questions are nice, I think you’ll be better off studying the facts that this book and the PMBOK Guide offer. Study what you know is accurate, not what might be accurate.
Applying Honesty to the Profession
The PMP candidate is expected, at all times, to provide honesty in experience documentation, the advertisement of skills, and the performance of services. The PMP must, of course, adhere to and abide by all applicable laws governing the project work. In addition, the PMP should adhere to the ethical standards within the trade or industry.
Industry standards are recommendations for how the work and practice should be completed. Regulations are requirements for how the work and practice must be completed. A PMP must know the difference.
Advancing the Profession
The PMP must respect and recognize the intellectual work and property of others. The PMP can’t claim others’ work as his own. He must give credit where credit is due. Work, research, and development sources must be documented and acknowledged by the PMP when he is relying on others’ work.
You can advance the PMP profession by distributing the PMI Code of Ethics and Professional Conduct to PMP candidates. You can get your copy for free at www.pmi.org.
CERTIFICATION OBJECTIVE 14.02
Responsibilities to the Customer and to the Public
The PMP has a responsibility to the customer of the project and to the public. Projects that affect internal customers are expected to meet requirements and standards and fulfill the business need of the performing organization. Essentially, as a PMP, you have a duty of loyalty based on the type of work you are doing, whether you are employed by the organization or not. You may be working for your employer, or you may be a volunteer. Similar to a person performing a public service, the PMP is also accountable for the work completed for the public—and for the transactions, quality of work, and ethics enforced in the project.
Enforcing Project Management Truth and Honesty
PMPs must represent themselves and their projects truthfully to the general public. This includes statements made in advertising, press releases, and public forums. When project managers are involved in the creation of estimates, truth is also expected. The PMP must provide accurate estimates on time, cost, services to be provided, and realistic outcomes of the project work.
When a project is assigned to the PMP, the project manager is responsible for meeting the project scope as expected by the customer. PMPs work for the customer and must strive for customer satisfaction while fulfilling the project objectives. As part of the project implementation, the PMP must keep confidential information confidential. There is an obligation to the customer to maintain privacy, confidentiality, and the nondisclosure of sensitive information.
Project managers should play fair. This means that the project manager should remain impartial, make decisions for the good of the project, provide access to information, and treat stakeholders fairly. In procurement, the project manager should make fair decisions and make opportunities equally available to all qualified providers. The project manager doesn’t use favoritism in any area of the project and avoids any kind of prejudice, discrimination, or nepotism.
Although the project manager must be fair to the project stakeholders, a project manager also has a duty of loyalty. Duty of loyalty is the obligation of the project manager to promote the best interests of the organization that employs her or that she volunteers for. As a representative of an organization, the project manager protects the best interests of the organization first while maintaining a balance of fairness with those outside of the organization.
Eliminating Inappropriate Actions
A PMP must avoid conflicts of interest and scenarios in which conflicts of interest could seem apparent, opportunistic, or questionable to the customer or other stakeholders. In addition, the PMP must not accept any inappropriate gifts, inappropriate payments, or any other compensation for favors, project management work, or influence of a project. The exception to this rule is when the laws or customs of the country where the project is being performed call for gifts to the project manager. However, the PMP should be aware of what gifts are acceptable and appropriate within the country where the project is taking place. Lavish gifts outside of the norm should be refused.
See the video “Ethics.”
Respecting Others
Project managers are to respect the stakeholders and people with which they work. This means that the project manager listens to other people and tries to understand what they are trying to convey. If the project manager doesn’t understand, she should ask questions to encourage understanding. Part of respecting others is educating ourselves and understanding how other cultures operate to avoid offending someone in that culture.
There’s little doubt that in project management conflicts with others will occur. When conflicts are happening, it’s up to the project manager to approach those involved to seek a resolution to the conflict. Conflict resolution should always be in the best interest of the project, not the project manager. The project manager should always negotiate in good faith, treat others professionally, and respect the property rights of others—even if other people don’t treat the project manager this way.
CERTIFICATION SUMMARY
The PMI Code of Ethics and Professional Conduct and the professional conduct of a project manager is included in the 200 questions on the PMP exam, but these ethical questions are not a separate category of questions. They are interwoven into the PMP exam domains. To answer these questions correctly, you should always take the “ethical high road.” The questions concerning ethics, conflict of interest, and personal gain are representative of the types of situations project managers can find themselves in on a regular basis. For the PMP exam—and in daily practice—follow the PMI Code of Ethics and Professional Conduct, and you’ll do fine.
A project manager must adhere to the laws by which he is governed. This means knowing the difference between optional standards and the required regulations. Next, the project manager must follow the policies of the organization by which he is employed. This means if the project manager’s company has a policy against a certain condition—no matter how small or innocent it may seem—the policy must be followed first. Finally, the project manager must avoid and disclose conflicts of interest and any appearance of impropriety.
When a project manager is completing projects in another country, the project manager must be respectful of the laws, people, culture, and values of the country in which the work is taking place. Project managers must not succumb to ethnocentrism—the act of believing their own culture is better than everyone else’s culture. The project manager must work to understand the culture, traditions, and expectations of the people in the country in which he is working while still complying with the policies of her organization.
KEY TERMS
To pass the PMP exam, you will need to memorize the following terms and their definitions. For maximum value, create your own flashcards based on these definitions and review them daily. The definitions can be found within this chapter and in the glossary.
confidentiality A project manager should keep certain aspects of a project confidential, such as contract negotiations, human resource issues, and trade secrets of the organization.
conflict of interest A situation in which the project manager could influence a decision for personal gain.
culture shock The initial disorientation a person experiences when in a foreign environment.
ethics The personal, cultural, and organizational interpretation of right and wrong; project managers are to operate ethically and fairly.
ethnocentrism A belief that one’s own culture is superior to other cultures; can occur when individuals measure and compare a foreigner’s actions against their own local culture.
inappropriate compensation Compensation, such as bribes of other unethical acts, that must be avoided. The project manager is to act in the best interest of the project and the organization.
PMI Code of Ethics and Professional Conduct A PMI document that defines the expectations of its members to act responsibly, respectfully, fairly, and honestly in their leadership of projects and programs.
Sapir–Whorf hypothesis A theory that suggest that a link exists between the language a person (or culture) speaks and how that person (or culture) behaves in the world.
TWO-MINUTE DRILL
Responsibilities to the Profession
PMP candidates and certificate holders must provide accurate and truthful information in all aspects of PMP certification.
PMP exam questions and scenarios should not be shared with other PMP candidates.
Violations of the PMI Code of Ethics and Professional Conduct should be reported to the proper parties.
PMPs must acknowledge and recognize others’ work, intellectual property, and development.
Responsibilities to the Customer and to the Public
PMPs must comply with all laws, regulations, and ethics in regard to project management practices.
PMPs must provide accurate and truthful information when estimating costs, services, and the realistic outcomes of project work.
PMPs must keep confidential information confidential.
PMPs must avoid conflicts of interest and disclose any perceivable incidences.
PMPs must not accept inappropriate compensation or gifts for their project management work.
SELF TEST
1. You are the project manager of the JKN Project. The project customer has requested that you inflate your cost estimates by 25 percent. He reports that his management always reduces the cost of the estimates, so this is the only way to get the monies needed to complete the project. Which of the following is the best response to this situation?
A. Do as the customer asked to ensure the project requirements can be met by adding the increase as a contingency reserve.
B. Do as the customer asked to ensure the project requirements can be met by adding the increase across each task.
C. Do as the customer asked by creating an estimate for the customer’s management and another for the actual project implementation.
D. Complete an accurate estimate of the project. In addition, create a risk assessment on why the project budget would be inadequate.
2. You are the project manager for the BNH Project. This project takes place in a country different from yours. The project leader from this country presents a team of workers who are all from his family. You should do which one of the following?
A. Reject the team leader’s recommendations and assemble your own project team.
B. Review the résumé and qualifications of the project team leader before approving the team.
C. Determine whether the country’s traditions include hiring from the immediate family before hiring from outside the family.
D. Replace the project leader with an impartial project leader.
3. You are about to begin negotiations on a new project that is to take place in another country. Which of the following should be your guide on what business practices are allowed and discouraged?
A. The project charter
B. The project plan
C. Company policies and procedures
D. The PMI Code of Ethics and Professional Conduct
4. One of your project team members reports that he sold pieces of equipment because he needed the money to pay for his daughter’s school tuition. He says he has paid back the money by working overtime without reporting the hours worked so that his theft remains private. What should you do?
A. Fire the project team member.
B. Report the team member to his manager.
C. Suggest that the team member report his action to human resources.
D. Tell the team member you’re disappointed in what he did, and advise him not to do something like this again.
5. You are the project manager of the SUN Project. Your organization is a functional environment, and you do not get along well with the functional manager leading the project. You are in disagreement with the manager about how the project should proceed, the timings of the activities, the suggested schedule, and the expected quality of the work. The manager has requested that you get to work on several of the activities on the critical path even though you and she have not solved the issues concerning the project. Which of the following should you do?
A. Go to senior management and voice your concerns.
B. Complete the activities as requested.
C. Ask to be taken off the project.
D. Refuse to begin activities on the project until the issues are resolved.
6. PMI has contacted you regarding an ethics violation of a PMP candidate. The question is in regard to a friend who said he worked as project manager under your guidance. You know this is not true, but to save a friendship, you avoid talking with PMI. This is a violation of which of the following?
A. The PMI Code to cooperate on ethics violations investigations
B. The PMI Code to report accurate information
C. The PMI Code to report any PMP violations
D. The law concerning ethical practices
7. You are the project manager for the Log Cabin Project. One of your vendors is completing a large portion of the project. You have heard a rumor that the vendor is losing many of its workers because of labor issues. In light of this information, what should you do?
A. Stop work with the vendor until the labor issues are resolved.
B. Communicate with the vendor in regard to the rumor.
C. Look to secure another vendor to replace the current vendor.
D. Negotiate with the labor union to secure the workers on your project.
8. You are the project manager for the PMH Project. Three vendors have submitted cost estimates for the project. One of the estimates is significantly higher than similar project work in the past. In this scenario, you should do which of the following?
A. Ask the other vendors about the higher estimate from the third vendor.
B. Use the cost estimates from the historical information.
C. Take the high cost to the vendor to discuss the discrepancy before reviewing the issue with the other vendors.
D. Ask the vendor that supplied the high estimate for information about how the estimate was prepared.
9. You are the project manager of the LKH Project. This project must be completed within six months, but after two months, the schedule has begun to slip. As of now, the project is one week behind schedule. Based on your findings, you believe you can make some corrective actions and recover the lost time over the next month to get the project back on schedule for its completion date. Management, however, requires weekly status reports on cost and schedule. Which of the following should you do?
A. Report that the project is one week behind schedule but will finish on schedule based on cited corrective actions.
B. Report that the project is on schedule and will finish on schedule.
C. Report that the project is off schedule by a few days but will finish on schedule.
D. Report that the project is running late.
10. As a contracted project manager, you have been assigned a project with a budget of U.S. $1.5 million. The project is scheduled to last seven months, but your most recent EVM report shows that the project will finish ahead of schedule by nearly six weeks. If this happens, you will lose $175,000 in billable time. What should you do?
A. Bill for the entire $1.5 million since this was the approved budget.
B. Bill for the $1.5 million by adding more work at the end of the project.
C. Report to the customer the project status and completion date.
D. Report to the customer the project status and completion date, and ask if they’d like to add any features to account for the monies not spent.
11. You are the project manager of the PMH Project. You have been contracted to design the placement of several pieces of manufacturing equipment. You have completed the project scope and are ready to pass the work over to the installer. The installer begins to schedule you to help with the installation of the manufacturing equipment. Which of the following should you do?
A. Help the installer place the equipment according to the design documents.
B. Help the installer place the equipment as the customer sees fit.
C. Refuse to help the installer since the project scope has been completed.
D. Help the installer place the equipment, but insist that the quality control be governed by your design specifications.
12. You are the project manager of the 12BA Project. You have completed the project according to the design documents and have met the project scope. The customer agrees that the design document requirements have been met; however, the customer is not pleased with the project deliverables and is demanding additional adjustments be made to complete the project. What is the best way to continue?
A. Complete the work as the customer has requested.
B. Complete the work at 1.5 times the billable rate.
C. Do nothing. The project scope is completed.
D. Do nothing. Management from the performing organization and the customer’s organization will need to determine why the project failed before adding work.
13. You are the project manager of the AAA Project. Due to the nature of the project, much of the work will require overtime between Christmas and New Year’s Day. Many of the project team members, however, have requested vacation during that week. What is the best way to continue?
A. Refuse all vacation requests and require all team members to work.
B. Allow vacation requests only for those team members who are not needed during that week.
C. Divide tasks equally among the team members so each works the same amount of time.
D. Allow team members to volunteer for the overtime work.
14. You are a project manager for your organization. Your project is to install several devices for one of your company’s clients. The client has requested that you complete a few small tasks that are not in the project scope. To maintain the relationship with the client, you oblige her request and complete the work without informing your company. This is an example of which of the following?
A. Effective expert judgment
B. A violation of ethics
C. Contract change control
D. Integrated change control
15. You are completing a project for a customer in another country. One of the customs in this country is to honor the project manager of a successful project with a gift. Your company, however, does not allow project managers to accept gifts worth more than $50 from any entity. At the completion of the project, the customer presents you with a new car in a public ceremony. Which of the following should you do?
A. Accept the car since it is a custom of the country. To refuse it would be an insult to your hosts.
B. Refuse to accept the car because it would result in a conflict with your organization to accept it.
C. Accept the car and then return it to the customer in private.
D. Accept the car and then donate the car to a charity in the customer’s name.
16. A project team member is sabotaging your project because he does not agree with it. Which of the following should you do?
A. Fire the project team member.
B. Present the problem to management.
C. Present the problem to management with a solution to remove the team member from the project.
D. Present the problem to management with a demand to fire the project team member.
17. You are the project manager of a project in Asia. You discover that the project leader has hired family members for several lucrative contracts on the project. What should you consider?
A. Cultural issues
B. Ethical issues
C. Organizational issues
D. Political issues
18. Of the following, which one best achieves customer satisfaction?
A. Completing the project requirements
B. Maintaining the project cost
C. Maintaining the project schedule
D. Completing the project with the defined quality metrics
19. A PMP has been assigned to manage a project in a foreign country. Which of the following describes the disorientation the PMP will likely experience as he gets acclimated to the country?
A. The Sapir–Whorf hypothesis
B. Time dimension
C. Ethnocentrism
D. Culture shock
20. You are the project manager for an information technology project. It has come to your attention that a technical problem has stopped the project work. How should you proceed?
A. Measure the project performance to date and account for the cost of the technical problem.
B. Rebaseline the project performance to account for the technical problem.
C. Work with the project team to develop alternative solutions to the technical problem.
D. Outsource the technical problem to a vendor.
21. A PMP has been assigned to manage a project in a foreign country. What should be done to ensure that the project’s success is not hindered by the fact that the project manager is working in a foreign country?
A. Teach the project manager about the customs and laws of the foreign country.
B. Find a project manager who is from that country.
C. Assign the project manager a guide to the foreign country.
D. Allow the project manager to travel home on weekends.
22. Your company does not allow project managers to accept gifts of any kind from vendors. A friend who you have known for years now works for a vendor that your company may be doing business with. Your friend from the vendor asks you to lunch to discuss an upcoming project, and you accept. When the check arrives at the lunch table, your friend insists on paying. You should do which of the following?
A. Allow the friend to buy because you’ve been friends for years.
B. Allow the friend to buy because lunch isn’t really a gift.
C. Don’t allow the friend to buy, because your company does not allow any gifts from vendors.
D. Insist that you purchase your friend’s lunch and your friend buys yours.
23. You are a project manager on a construction project. Your project needs an experienced mason to repair and restore an old chimney that the customer wants to keep as part of the project. Your brother, as it happens, is an expert at restoring historical chimneys, and you award the work to him. This is an example of what?
A. Networking
B. A conflict of interest
C. Poor procurement
D. Acceptable practice, because your brother is an expert
24. While studying for your PMP exam, you are invited to participate in a study group. At your first meeting, another attendee announces that he has “real, live questions” from the PMP exam. What should you do?
A. Examine the questions.
B. Report the study group to PMI.
C. Leave the study group.
D. Ask where the person got the questions so you can report the testing center to PMI.
25. You are a project manager within an organization that completes technical projects for other entities. You have plans to leave your company within the next month to launch your own consulting business, which will compete with your current employer. Your company is currently working on a large proposal for a government contract that your new company could also benefit from. What should you do?
A. Resign from your current job and bid against your employer to get the contract.
B. Decline to participate due to a conflict of interest.
C. Help your employer prepare the proposal.
D. Inform your employer that you will be leaving the company within a month and it would be inappropriate for you to work on the current proposal.
SELF TEST ANSWERS
1. You are the project manager of the JKN Project. The project customer has requested that you inflate your cost estimates by 25 percent. He reports that his management always reduces the cost of the estimates, so this is the only way to get the monies needed to complete the project. Which of the following is the best response to this situation?
A. Do as the customer asked to ensure the project requirements can be met by adding the increase as a contingency reserve.
B. Do as the customer asked to ensure the project requirements can be met by adding the increase across each task.
C. Do as the customer asked by creating an estimate for the customer’s management and another for the actual project implementation.
D. Complete an accurate estimate of the project. In addition, create a risk assessment on why the project budget would be inadequate.
B. It would be inappropriate to bloat the project costs by 25 percent. A risk assessment describing how the project may fail if the budget is not accurate is most appropriate.
A, B, and C are incorrect. They are ethically wrong. The PMP should always provide honest estimates of the project work.
2. You are the project manager for the BNH Project. This project takes place in a country different from yours. The project leader from this country presents a team of workers who are all from his family. You should do which one of the following?
A. Reject the team leader’s recommendations and assemble your own project team.
B. Review the résumé and qualifications of the project team leader before approving the team.
C. Determine whether the country’s traditions include hiring from the immediate family before hiring from outside the family.
D. Replace the project leader with an impartial project leader.
C. You should first confirm what the local practices and customs call for in regard to hiring family members before others.
A, B, and D are incorrect. A and D are incorrect because they do not consider the qualifications of the project team leader and the project team. In addition, they do not take into account local customs. B is incorrect as well; although the qualifications of the project team leader are an important aspect, this choice does not consider the local customs. In addition, the project team leader’s ability is not called into question; the family members are the issue.
3. You are about to begin negotiations on a new project that is to take place in another country. Which of the following should be your guide on what business practices are allowed and discouraged?
A. The project charter
B. The project plan
C. Company policies and procedures
D. The PMI Code of Ethics and Professional Conduct
C. The company policies and procedures should guide you regarding the decisions you make in the foreign country.
A, B, and D are incorrect. A and B are incorrect because these documents are essential but usually do not reference allowed business practices. D is also incorrect. Although the PMP Code of Ethics and Professional Conduct harbors crucial information, the company’s policies and procedures are more specific to the project work and requirements.
4. One of your project team members reports that he sold pieces of equipment because he needed the money to pay for his daughter’s school tuition. He says he has paid back the money by working overtime without reporting the hours worked so that his theft remains private. What should you do?
A. Fire the project team member.
B. Report the team member to his manager.
C. Suggest that the team member report his action to human resources.
D. Tell the team member you’re disappointed in what he did, and advise him not to do something like this again.
B. This situation calls for the project team member to be reported to his manager for disciplinary action.
A, C, and D are incorrect. A is inappropriate because the project manager may not have the authority to fire the project team member. C is inappropriate because the project manager must take action to bring the situation to management’s attention. D is inappropriate because no formal discipline actions are taken to address the problem.
5. You are the project manager of the SUN Project. Your organization is a functional environment, and you do not get along well with the functional manager leading the project. You are in disagreement with the manager about how the project should proceed, the timings of the activities, the suggested schedule, and the expected quality of the work. The manager has requested that you get to work on several of the activities on the critical path even though you and she have not solved the issues concerning the project. Which of the following should you do?
A. Go to senior management and voice your concerns.
B. Complete the activities as requested.
C. Ask to be taken off the project.
D. Refuse to begin activities on the project until the issues are resolved.
B. The project manager must respect the authority of the functional manager.
A, C, and D are incorrect. These are inappropriate actions because they do not complete the assigned work the functional manager has delegated to the project manager.
6. PMI has contacted you regarding an ethics violation of a PMP candidate. The question is in regard to a friend who said he worked as project manager under your guidance. You know this is not true, but to save a friendship, you avoid talking with PMI. This is a violation of which of the following?
A. The PMI Code to cooperate on ethics violations investigations
B. The PMI Code to report accurate information
C. The PMI Code to report any PMP violations
D. The law concerning ethical practices
A. By avoiding the conversation with PMI in regard to the ethics violation of a friend, you are, yourself, violating the PMI Code of Ethics and Professional Conduct.
B, C, and D are incorrect. They do not fully answer the question. The situation requires you, a PMP, to work with PMI on its investigations. You’re not reporting accurate information or a PMP violation, so these choices aren’t appropriate for the question. In this instance, PMI isn’t concerned about laws, but about a PMP candidate who happens to be your friend.
7. You are the project manager for the Log Cabin Project. One of your vendors is completing a large portion of the project. You have heard a rumor that the vendor is losing many of its workers because of labor issues. In light of this information, what should you do?
A. Stop work with the vendor until the labor issues are resolved.
B. Communicate with the vendor in regard to the rumor.
C. Look to secure another vendor to replace the current vendor.
D. Negotiate with the labor union to secure the workers on your project.
B. The project manager should confront the problem by talking with the vendor about the rumor.
A, C, and D are incorrect. A, stopping work, would delay the project and possibly cause future problems. C, trying to secure another vendor, may violate the contract between the buyer and the seller. D is also incorrect—the agreement is between the vendor and the performing organization, not the labor union.
8. You are the project manager for the PMH Project. Three vendors have submitted cost estimates for the project. One of the estimates is significantly higher than similar project work in the past. In this scenario, you should do which of the following?
A. Ask the other vendors about the higher estimate from the third vendor.
B. Use the cost estimates from the historical information.
C. Take the high cost to the vendor to discuss the discrepancy before reviewing the issue with the other vendors.
D. Ask the vendor that supplied the high estimate for information about how the estimate was prepared.
D. Most likely, the vendor did not understand the project work to be procured, so the estimate is skewed. A clear statement of work is needed for the vendors to provide accurate estimates.
A, B, and C are incorrect. These are inappropriate actions because they reveal other vendors’ estimates. This information should be kept confidential between the buyer and the sellers. In some government projects, however, release of the winning bid information may be required.
9. You are the project manager of the LKH Project. This project must be completed within six months, but after two months, the schedule has begun to slip. As of now, the project is one week behind schedule. Based on your findings, you believe you can make some corrective actions and recover the lost time over the next month to get the project back on schedule for its completion date. Management, however, requires weekly status reports on cost and schedule. Which of the following should you do?
A. Report that the project is one week behind schedule but will finish on schedule based on cited corrective actions.
B. Report that the project is on schedule and will finish on schedule.
C. Report that the project is off schedule by a few days but will finish on schedule.
D. Report that the project is running late.
A. You should report an honest assessment of the project with actions on how you plan to correct the problem.
B, C, and D are incorrect. B and C are incorrect because they do not provide honest answers to management. D is incorrect because it does not provide a solution to the problem.
10. As a contracted project manager, you have been assigned a project with a budget of U.S. $1.5 million. The project is scheduled to last seven months, but your most recent EVM report shows that the project will finish ahead of schedule by nearly six weeks. If this happens, you will lose $175,000 in billable time. What should you do?
A. Bill for the entire $1.5 million since this was the approved budget.
B. Bill for the $1.5 million by adding more work at the end of the project.
C. Report to the customer the project status and completion date.
D. Report to the customer the project status and completion date, and ask if they’d like to add any features to account for the monies not spent.
C. An honest and accurate assessment of the project work is always required.
A, B, and D are incorrect. A and B are incorrect because these actions do not reflect an honest assessment of the work. D is incorrect because it offers gold plating and recommends additional changes that were not part of the original project scope. In addition, because this is a contractual relationship, the additional work may not be covered within the original project contract and may result in legal issues.
11. You are the project manager of the PMH Project. You have been contracted to design the placement of several pieces of manufacturing equipment. You have completed the project scope and are ready to pass the work over to the installer. The installer begins to schedule you to help with the installation of the manufacturing equipment. Which of the following should you do?
A. Help the installer place the equipment according to the design documents.
B. Help the installer place the equipment as the customer sees fit.
C. Refuse to help the installer since the project scope has been completed.
D. Help the installer place the equipment, but insist that the quality control be governed by your design specifications.
C. When the project scope is completed, the contract is fulfilled and the project is done. Any new work items should be sent through the proper channels within an organization to create a new project or work order. In this instance, the contract change control system should be used or a new contract should be created.
A, B, and D are incorrect. These choices are outside of the scope and have not been covered in the contract.
12. You are the project manager of the 12BA Project. You have completed the project according to the design documents and have met the project scope. The customer agrees that the design document requirements have been met; however, the customer is not pleased with the project deliverables and is demanding additional adjustments be made to complete the project. What is the best way to continue?
A. Complete the work as the customer has requested.
B. Complete the work at 1.5 times the billable rate.
C. Do nothing. The project scope is completed.
D. Do nothing. Management from the performing organization and the customer’s organization will need to determine why the project failed before adding work.
C. When the project scope has been completed, the project is completed. Any additional work, without a contract change or new contract, would be dishonest and would betray the customer or the project manager’s company.
A, B, and D are incorrect. A and B are incorrect because additional work is not covered in the current contract. D is incorrect because the project did not fail—the deliverables met the requirements of the project scope and the design document.
13. You are the project manager of the AAA Project. Due to the nature of the project, much of the work will require overtime between Christmas and New Year’s Day. Many of the project team members, however, have requested vacation during that week. What is the best way to continue?
A. Refuse all vacation requests and require all team members to work.
B. Allow vacation requests only for those team members who are not needed during that week.
C. Divide tasks equally among the team members so each works the same amount of time.
D. Allow team members to volunteer for the overtime work.
D. This is the best choice for this scenario because it allows the project team to be self-led and is sensitive to the needs of the project team.
A, B, and C are incorrect. There are all autocratic responses to the problem, and although the results may seem fair, D is the best choice.
14. You are a project manager for your organization. Your project is to install several devices for one of your company’s clients. The client has requested that you complete a few small tasks that are not in the project scope. To maintain the relationship with the client, you oblige her request and complete the work without informing your company. This is an example of which of the following?
A. Effective expert judgment
B. A violation of ethics
C. Contract change control
D. Integrated change control
B. When the project manager completes activities outside of the contract and does not inform the performing organization, it is essentially the same as stealing. The PMP must be held accountable for all the time invested in a project.
A, C, and D are incorrect. A is incorrect because this is not expert judgment. C is incorrect because the contract has not been changed or attempted to be changed. D is incorrect because the changes the project manager completed for the customer were not sent through any change control system, but were completed without documentation or reporting
15. You are completing a project for a customer in another country. One of the customs in this country is to honor the project manager of a successful project with a gift. Your company, however, does not allow project managers to accept gifts worth more than $50 from any entity. At the completion of the project, the customer presents you with a new car in a public ceremony. Which of the following should you do?
A. Accept the car since it is a custom of the country. To refuse it would be an insult to your hosts.
C. Refuse to accept the car because it would result in a conflict with your organization to accept it.
D. Accept the car and then return it to the customer in private.
D. Accept the car and then donate the car to a charity in the customer’s name.
B. Although this solution may seem extreme, B is the best answer because to accept the car in public would give the impression that the project manager has defied company policy. In addition, accepting the car would appear to be a conflict of interest for the project manager.
A, C, and D are incorrect. Accepting the car, even with the intention of returning it or donating it to charity, would be in conflict with the company’s policies regarding the acceptance of gifts.
16. A project team member is sabotaging your project because he does not agree with it. Which of the following should you do?
A. Fire the project team member.
B. Present the problem to management.
C. Present the problem to management with a solution to remove the team member from the project.
D. Present the problem to management with a demand to fire the project team member.
C. The project team member who is causing the problems should be discussed with management along with a solution to remove the team member from the project. Remember that whenever the project manager must present a problem to management, she should also present a solution to the problem.
A, B, and D are incorrect. A is incorrect because it likely is not the project manager’s role to fire the project team member. B is incorrect because it does not address a solution to the problem. Never go to management with a problem unless a proposed solution is also presented. D is incorrect because the project manager’s focus should be on the success of the project. By recommending that the project team member be removed from the project, the problem is solved from the project manager’s point of view. Management, however, may come to the decision on their own accord to dismiss the individual from the company altogether. In addition, a recommendation from the project manager to fire someone may be outside the boundary of the human resource procedure for employee termination.
17. You are the project manager of a project in Asia. You discover that the project leader has hired family members for several lucrative contracts on the project. What should you consider?
A. Cultural issues
B. Ethical issues
C. Organizational issues
D. Political issues
A. The project manager should first determine what the country’s customs and culture call for when hiring relatives. It may be a preferred practice in the country to work with qualified relatives first before hiring other individuals to complete the project work.
B, C, and D are incorrect. These are not the best choices in this scenario. They may be considered, however, after first examining the cultural issues within the country.
18. Of the following, which one best achieves customer satisfaction?
A. Completing the project requirements
B. Maintaining the project cost
C. Maintaining the project schedule
D. Completing the project with the defined quality metrics
A. The largest factor when it comes to customer satisfaction is the ability to complete the project requirements.
B, C, and D are incorrect. Achieving these factors, while satisfying to the customer, is not as complete as achieving the project requirements, which may include the cost, schedule, and quality expectations.
19. A PMP has been assigned to manage a project in a foreign country. Which of the following describes the disorientation the PMP will likely experience as he gets acclimated to the country?
A. The Sapir–Whorf hypothesis
B. Time dimension
C. Ethnocentrism
D. Culture shock
D. Culture shock is the typical disorientation a person feels when visiting a foreign country.
A, B, and C are incorrect. A, the Sapir–Whorf hypothesis, states that an individual can understand a culture by understanding its language. B, time dimension, is the local culture’s general practice for respecting time and punctuality. C, ethnocentrism, is the belief by individuals that their own culture is the best and that all other cultures should be measured against it.
20. You are the project manager for an information technology project. It has come to your attention that a technical problem has stopped the project work. How should you proceed?
A. Measure the project performance to date and account for the cost of the technical problem.
B. Rebaseline the project performance to account for the technical problem.
C. Work with the project team to develop alternative solutions to the technical problem.
D. Outsource the technical problem to a vendor.
C. When problems arise that stop project tasks, the project manager should work with the team to uncover viable alternative solutions.
A, B, and D are incorrect. A and B do nothing to find a solution to the problem, so they are incorrect. D is incorrect because the solution for the problem has not necessarily been addressed. The end result of C, to find an alternative solution, may involve outsourcing the problem to a vendor, but answer D should not be the first choice in this scenario.
21. A PMP has been assigned to manage a project in a foreign country. What should be done to ensure that the project’s success is not hindered by the fact that the project manager is working in a foreign country?
A. Teach the project manager about the customs and laws of the foreign country.
B. Find a project manager who is from that country.
C. Assign the project manager a guide to the foreign country.
D. Allow the project manager to travel home on weekends.
A. Training the project manager on the laws and customs of the foreign country is the best choice to ensure the project’s success is not jeopardized.
B, C, and D are incorrect These may all work, but they are not the best options, considering that the project manager has already been selected and needs to be educated about the foreign country’s customs. D is incorrect because the travel option does not take into consideration the customs of the foreign country.
22. Your company does not allow project managers to accept gifts of any kind from vendors. A friend who you have known for years now works for a vendor that your company may be doing business with. Your friend from the vendor asks you to lunch to discuss an upcoming project, and you accept. When the check arrives at the lunch table, your friend insists on paying. You should do which of the following?
A. Allow the friend to buy because you’ve been friends for years.
B. Allow the friend to buy because lunch isn’t really a gift.
C. Don’t allow the friend to buy, because your company does not allow any gifts from vendors.
D. Insist that you purchase your friend’s lunch and your friend buys yours.
C. Although you have been friends for years, your friend is now working with a vendor, and it would be inappropriate for your friend to buy your lunch. This would clearly be a violation of your company’s policies because you and your friend are discussing an upcoming project.
A, B, and D are incorrect. By allowing your friend to purchase your lunch, you would be going against company policies.
23. You are a project manager on a construction project. Your project needs an experienced mason to repair and restore an old chimney that the customer wants to keep as part of the project. Your brother, as it happens, is an expert at restoring historical chimneys, and you award the work to him. This is an example of what?
A. Networking
B. A conflict of interest
C. Poor procurement
D. Acceptable practice, because your brother is an expert
B. This is a conflict of interest—or it may appear to be a conflict of interest to others on the project. The project manager can do several things in this scenario: excuse himself from the decision because of the relationship with the brother, create a weighted scoring model, allow several vendors to participate, and so on.
A, C, and D are incorrect. These choices do not address the potential for the conflict of interest.
24. While studying for your PMP exam, you are invited to participate in a study group. At your first meeting, another attendee announces that he has “real, live questions” from the PMP exam. What should you do?
A. Examine the questions.
B. Report the study group to PMI.
C. Leave the study group.
D. Ask where the person got the questions so you can report the testing center to PMI.
C. You should not participate in the study group.
A, B, and D are incorrect. A is incorrect because it clearly violates the PMI Code of Ethics and Professional Conduct. B and D are not good choices because there is no clear evidence that the questions are genuine. The questions may have been purchased through a web site or other entity—not necessarily through a testing center.
25. You are a project manager within an organization that completes technical projects for other entities. You have plans to leave your company within the next month to launch your own consulting business, which will compete with your current employer. Your company is currently working on a large proposal for a government contract that your new company could also benefit from. What should you do?
A. Resign from your current job and bid against your employer to get the contract.
B. Decline to participate due to a conflict of interest.
C. Help your employer prepare the proposal.
D. Inform your employer that you will be leaving the company within a month and it would be inappropriate for you to work on the current proposal.
D. Of the choices presented, this is the best answer. You should inform your employer of your intent to leave the organization and work on similar projects to avoid a conflict of interest.
A, B, and C are incorrect. A is incorrect because you would have a conflict of interest, information gained about your current employer’s proposal (such as price and methods), and other advantages that would be ethically wrong. B is incorrect because there is no rationale behind what the conflict of interest may be. C is incorrect because a conflict of interest exists by preparing the proposal for your future competition.