BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013

Chapter 4
Managing Conflict and the Art of
Negotiation
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4-2
Conflict
Definition: conflict as . . . a process in
which 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).
BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
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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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
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. Collaborating
5. Compromising


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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
Conflict Management Style

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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
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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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
Conflicts Categories
Goal-oriented conflicts
associated 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 conflicts
differences in work ethics, styles, egos, and
personalities of the participants


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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
Project Conflicts by Category and
Parties-at-Interest
Categories of Conflict
Parties-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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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
Sources of Conflict And Their Ranking


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Project Life Cycle
Formation
Buildup
Main program
Phase-out
Conceptualization
Planning
Execution
Termination
BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
Conflict Dynamics
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BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
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
BPA 31803 PROJECT MANAGEMENT SEM 2 2012/2013
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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 to
time pressures
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The Nature of Negotiation
The process through which two or more parties seek
an acceptable rate of exchange for items they own or
control
A field of knowledge and endeavor that focuses on
gaining the favor of people from whom we want
things
Parties to a negotiation often see themselves as
opponents
If they win, I lose
Project manager must avoid this on projects as all
stakeholders 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 on
a project
Project firm wants high quality and low cost
Subcontractors want high profits and
maximum flexibility
Partnering has been developed to replace this
atmosphere with one of cooperation and
mutual 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 and
established 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 resource
commitments
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 whether or not a task will be
undertaken
Instead, they have to do with the design of 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, invent
options for mutual gain
4. Insist on using objective criteria