Explanation
According to the PMBOK Guide 7th Edition, one of the principles of project management is to create a collaborative project team culture. This means that the project manager should foster a positive and supportive team environment, where team members can communicate openly, trust each other, and share their ideas and concerns. To create a collaborative project team culture, the project manager should organize team building activities that help the team members to get to know each other, to develop their interpersonal skills, and to enhance their team performance. If the sponsor does not approve an offsite team building activity due to budget constraints, the project manager should use the office facilities and support to organize an interactive event for the team members in-house. This will help to achieve the same objectives of the team building activity, without incurring additional costs or compromising the project scope, schedule, or quality. Explaining the financial constraint and asking each team member to pay their own share, telling the team that the event will be handled at the end of the project, or bypassing the event are not the best actions, as they do not address the need to build trust and cohesion among the team members, and they may affect the team morale and motivation. References: PMBOK Guide 7th Edition, page 11-12.