CAPM (Certified Associate in Project Management) Practice Exam

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What can be an effect of the bureaucracy in projectized organizations?

  1. Increased efficiency

  2. Decreased costs

  3. Red tape

  4. Faster project completion

The correct answer is: Red tape

In projectized organizations, where projects are the dominant form of organizational structure, bureaucracy can lead to an effect known as "red tape." Red tape refers to excessive rules, procedures, and formalities that can slow down decision-making processes and hinder project progress. This bureaucratic burden can increase administrative work, create delays, and limit the flexibility required to adapt to changing project needs. Therefore, in projectized organizations, excessive bureaucracy, or red tape, can be a significant challenge that hampers project efficiency and effectiveness.

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