CHAPTER 04 PM BPA31803_revised Version

8/12/2019 CHAPTER 04 PM BPA31803_revised Version

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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013

Chapter 4

Managing Conflict and the Art of

Negotiation

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Conflict

Definition: conflict as . . . a process inwhich one party perceives that its interests

are being opposed or negatively affected by

another party. (Wall & Callister, 1995)

Conflict arises when ones own benefit or

interest cannot be achieved simultaneously

with another partys benefit or interest

(Jones and Melcher, 1982).


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Conflict continued.. 3 basic facets that can formulate conflict definition (Aritzeta

et al. 2005):-

1. when parties involved in any argument perceive it as a

conflict

2. A high degree of interdependence between the parties

involved

3. scarcity of resources, such as monetary, human, or

prestige

Project managers need to concede that conflict is inevitable

The main concern in project management is goal conflicts

that occur when a group pursues goals different from other

groups

.

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Conflict

Conflict can be resolved through negotiation,arbitration, or mediation (Jameson, 1999).

5 basic behavior or styles to deal with conflict:-

1. Avoiding

2. Accommodating

3. Forcing

4. Collaborating5. Compromising

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Conflict Management Style

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Why conflict happen in project?

Breakdown in communication

Lack of trust and respect

Effective listening skills Perceptual differences-different school of

thought

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Conflicts Categories

Goal-oriented conflictsassociated with end results, performance

specifications and criteria, priorities, and objectives

Authority conflicts

definition of roles and reporting relationships and on

responsibilities and authority for tasks, functions, and

decisions

Interpersonal conflictsdifferences in work ethics, styles, egos, and

personalities of the participants

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Project Conflicts by Category and

Parties-at-InterestCategories of ConflictParties-at-Interest Goals Authority Interpersonal

Project Team Schedules

Priorities

Technical Personality

Client Schedules

Priorities

Technical

Functional and

Senior

Management

Schedules

Priorities

Labor Cost

Technical

Administrative

Personality

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Sources of Conflict And Their Ranking

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Project Life Cycle

Formation

Buildup

Main program

Phase-out

Conceptualization

Planning

Execution

Termination


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Conflict Dynamics

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Major Tasks in Project Life Cycle

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Conflict during Project Formation

Conflict centers around the confusion of starting a

new project

Many of the policies and procedures have not yet been

formed

The objectives of the project are not yet finalized

Conflict cannot be avoided at this phase

In fact, much of this conflict is good conflict


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Handling Project Formation

Conflict Technical objectives must be set

Senior management and line managers must

commit to the project The priority for the project must be set

Organizational structure of the project must

be established


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Project Buildup

This phase is where the project moves from

general concept to a highly detailed plans

Conflicts tend to be technical in nature

Conflicts between the PM and the functional

areas tend to predominate


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Main Program

Schedules are a major source of conflict

Some tasks will be late and the schedule

should be adjusted or the time made up

The more complex the project, the more

difficult it is to trace the sources of conflict

There are also technical conflicts


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Project Phase-Out

Deadlines are a major source of conflict

Technical problems are rare

Personality conflicts will be a big deal due totime pressures


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The Nature of Negotiation

The process through which two or more parties seekan acceptable rate of exchange for items they own orcontrol

A field of knowledge and endeavor that focuses on

gaining the favor of people from whom we wantthings

Parties to a negotiation often see themselves asopponents

If they win, I lose

Project manager must avoid this on projects as allstakeholders are interrelated


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Partnering, Chartering, and

Change Use of subcontractors

Use of input from two or more functional

units Management of change


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Partnering

Project firm and subcontractors are at odds ona project

Project firm wants high quality and low cost Subcontractors want high profits and

maximum flexibility

Partnering has been developed to replace thisatmosphere with one of cooperation andmutual helpfulness


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Project Partnering

A method of transforming contractual

relationships into a cohesive, cooperative

project team with a single set of goals andestablished procedures for resolving disputes

in a timely and effective manner


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Steps for Project Partnering

1. Project firm must commit to partnering

2. All parties must implement the process

3. Joint review when finished


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Project Firm Commit to Partnering

Select committed subcontractors

Joint team-building exercises

Develop a project charter


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Four-Part Agreement

1. Joint evaluation of the projects progress

2. A method for resolving disagreements

3. Continuous improvement

4. Support from the senior management


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Joint Review

Setting this up requires a lot of negotiation

Negotiations must be nonadversarial in nature

It has worked well in some settings


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Chartering

Project Charter - A written agreement that

outlines the specifics of the project

Contains expected deliverables and resourcecommitments

Agreeing to a charter implies that none of the

parties will change the agreement unilaterally


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Scope Change

The initial assessment was wrong

Project team learns more about the project

Change is mandated

Client ask for changes


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Some Requirements and Principles of

Negotiation

Few conflicts have to do with whetheror not a task will beundertaken

Instead, they have to do with the designof the deliverable

How Whom

When

What cost

The work of the project should get done If not, everyone loses


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Requirements for Conflict Reduction Methods

They must allow the conflict to be settled

without irreparable harm to the projects

objectives They allow and foster honesty between the

negotiators

Win-win situation for all parties involved


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Principled Negotiation

1. Separate the people from the problem

2. Focus on interests, not positions

3. Before trying to reach agreement, inventoptions for mutual gain

4. Insist on using objective criteria

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CHAPTER 04 PM BPA31803_revised Version