Conflict & Negotiation

People working on the same project, have different ideas about achieving project objectives
– can occur at any level / any stage of the work

PM is often described as “Conflict Manager”—Team members run the project

• What are the objectives?

• Can they be in conflict with other projects?
• Sense any indication?
• Why do conflict occur?
• How to resolve?
 Objectives
• Must be known to all project personnel
• Must be specific
• Not overly complex
• Realistic and attainable
• Within resource bound

Conflict environment
• Manpower
• Equipment
• Priorities
• Responsibilities

Meaningful conflict – some new ideas can be generated to achieve the objectives
Different types of conflict
• Personality clash
• Design/manufacturing conflict
• Manufacturing/quality conflict

Plans to resolve conflict

• Concede low intensity conflict if a high intensity conflict is expected later
• Different projects – if resource conflict, can be resolved by setting priority
• Resource allocation among different projects – internal meeting among different PMs
Negotiation
Process through which two or more parties seek an acceptable
rate of exchange for items they own and control

Pareto-optimal s olution
No party can be made better off without making another
party worse-off by the same amount or more

Highes t level of negotiation s kills needed for

• Partnering – use of subcontractors
• Chartering – among functional units
• Change – management of changes
Partnering
Method of transforming contractual relationships into a
cohesive, cooperative project team for resolving disputes

First Step:
• Parent firm must make a commitment to partnering
• Select subcontractors who also make such commitment
• Engage in joint team building exercise
Second Step:
• Joint evaluation of progress
• Method for resolving any problem
• Continuous support from both parties
Final Step:
• Commit a joint review of project execution
Chartering
Written agreement between PM, senior management and the
functional managers committing resources and people
Senior management, Functional managers and PM should be on the same page

Scope change
almost certain – no matter how carefully a project is planned –
subjected to considerable uncertainty

Different types of changes

• Technical/technological uncertainty
• Increase in user / team knowledge
• Mandate – New policy/law
Principles of negotiation

• Separate people from problem – emotion affects the most

• Focus on interest, not position – ego affects the most
• Find options for mutual gain – win-win situation