Chapter Twelve Outsourcing: Managing Interorganizational Relations

A comprehensive set of flashcards covering key concepts from Chapter Twelve on outsourcing and managing interorganizational relations.

Outsourcing

The practice of transferring business functions or processes to other foreign companies, now applied to contracting significant chunks of project work.

Request for Proposal (RFP)

A document that solicits proposals from potential vendors to provide services or products for a project.

Advantages of Outsourcing

Cost reduction, faster project completion, high level of expertise, and flexibility.

Disadvantages of Outsourcing

Coordination breakdown, loss of control, conflict, security issues, and complexities in managing relationships.

Principled Negotiation

An approach that emphasizes developing win/win solutions based on separating people from problems, focusing on interests, inventing options for mutual gains, and using objective criteria.

Met-Expectations Model

A model that measures customer satisfaction based on the relationship between perceived performance and customer expectations.

Contract

A formal agreement between two parties that includes obligations such as performance and payment.

Cost-Plus Contract

A type of contract where the contractor is reimbursed for all direct costs plus an additional fee.

Fixed-Price Contract

An agreement where the contractor performs work for a predetermined fixed price.

Project Manager Roles

Includes entrepreneur, politician, friend, marketer, and coach.

Contract Change Control System

Defines the process by which a contract may be modified, including paperwork and approval levels.

Best Alternative to a Negotiated Agreement (BATNA)

The best course of action a party can take if no agreement is reached in negotiations.