Ch. 6: Conflict and Negotiation
Most conflicts have their roots in
uncertainty, and negotiation is a way
of managing the resultant risk
Ch. 6.0: A Good Way to
Understand Conflict
Conflict is a process which begins
when one party perceives that the
other party has frustrated some
concern of his/her
Ch. 6.0: When Is a Conflict
Resolved?
When the level of frustration has
been lowered to the point where
no action against the other party
is being contemplated
Ch. 6.1: Two Definitions of
Negotiation
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Negotiation is a process through which
the parties seek an acceptable rate of
exchange for items they own or control
Negotiation is an endeavor that focuses
on gaining the favor of people from
whom we want things
Ch. 6.1: Pareto-optimal
Solution
A solution, such that no party can be
made better without making another
party worse off by the same amount
or more (the antithesis of a win/win
situation)
Ch. 6.2: Partnering
Partnering is a method of
transforming contractual
relationships into a cohesive,
cooperative project team
with a single set of goals
Ch. 6.2: Multi-step Process for
Building Partnered Projects
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Commitment
Four part agreement:
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Joint progress evaluation
Problem resolution method
Continuous improvement goals
Joint review at project termination
Ch. 6.2: Project Charter
Written agreement between
PM, senior management
and functional managers,
committing resources and
people to the project
Ch. 6.2: A Charter Is a Signed
Commitment To:
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Meet design intent
Complete contract without the need for
litigation
Finish the project on schedule
Keep cost growth equal or below a
predetermined amount
Ch. 6.2: Scope Changes Are
Caused By:
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Technological uncertainty
When the project team learns more
about the nature of the deliverable
A mandate
Ch. 6.2: Conflicting Priorities
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High priority projects: currently
supported by senior management
Lower priority projects: should be
done if time and resources permit
Mandates: must be done immediately
Ch. 6.3: Conflict Sources
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Schedules
Priorities
Staff and labor requirement
Technical factors
Administrative procedures
Cost estimate
Personality conflicts
Ch. 6.3: The Three Fundamental
Conflict Categories
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Different groups with different goals
Who makes decisions
Interpersonal conflicts
Ch. 6.3: Conflict and the
Project Life Cycle (PLC)
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The project life cycle (PLC)
Nature of conflicts in the PLC
Linkage of PLC with conflict categories
Ch. 6.3: Four Phases of
Project Life Cycle As Seen By:
Phase Senior
Management
Thambain and
Wilemon
Adams and
Barndt
I
Bootleg work
Concept
II
Project
formation
Buildup
Aggregation of
resources
Lions share of
Main program
work
Products to client Phase out
III
IV
Plan
Execute
Terminate
Ch. 6.3: Personality Clashes
Senior Management  PM  Client
Ch. 6.3: Project Manager Vs.
Functional Manager Conflicts
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PM concern: project
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FM concern: day-to-day operations
Ch. 6.3: Who Decides in a
Matrix Organization?
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PM: schedule and flow of work
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FM: technical decisions, manpower
Ch. 6.3: When Top Management
Fixes Time and Cost Too Tightly
1. Underestimation of cost and time
2. PM tries to pass cost and time
squeeze on to FM
3. FM complains to senior management
that he/she cannot meet cost and
time goals
Ch. 6.3: Whose Priorities are
Ruling?
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Functional manager
Client
Project team
Ch. 6.3 Methods for Settling
Project Priority Conflicts
1. Priority ranking through PS model
2. Priority ranking through senior
management
Ch. 6.3: The“Who” and “What”
of Matrix Organization Conflicts
Who
What
Project team and client Technical problems
Senior Management (*) a) Wants PM to create
communication rules
b) Wants to dictate
who reports to
whom
(*) Good example of senior management wanting to
have their cake AND eat it!
Ch. 6.3: Conflicts in the
Different Phases of the PLC
Phase
Conflict Source
Formation
Confusion of setting up project
Buildup
Main
Priorities, schedules and
administrative procedures
PERT critical path
Phase-out
Schedules, cost overrun
Ch. 6.3: Fundamental Issues for
Conflict during Project Formation
1.
2.
3.
4.
Technical objectives
Commitment of resources
Priority
Organizational structure
Ch. 6.3: Questions Leading to
Conflict during Project Formation
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Which of the functional areas will be
needed to accomplish project tasks?
What will be the required level of
involvement of each of the functional
areas?
How will conflicts over resources/facility
usage between this and other projects
be settled?
Ch. 6.3: More Questions Leading to
Conflict during Project Formation
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What about those resource/facility issues
between the project and the routine work in
the functional departments?
Who has the authority to decide the
technical, scheduling, personnel and cost
issues?
How will changes in the parent organization’s
priorities be communicated to everyone
involved?
Ch. 6.3: Who Will Win the
Argument?
Relative
strength of
manager
PM
FM
Project
oriented
Matrix
Functional
Type of organization
Ch. 6.3: The “Height” of
Conflict during Project Buildup
Issue
Rivals
Technical approach PM Vs. FM
Handicap
PM: generalist, but
occasionally has a bright
technical idea
FM: has generally more
technical expertise
Ch. 6.3: How a Main Phase
Scheduling Conflict Develops
1) Some project activity runs into trouble
2) Some tasks dependent on (1) will be
delayed
3) (2) will delay the entire project
4) PM tries to prevent (3) from
happening by requesting resources
from the FM
5) PM vs. FM
Ch. 6.3:Environment for
Conflict during Phaseout
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Schedule slippage consequences from main
phase felt strongly during phase out
Firm deadlines  hectic environment
Substantial cost overruns ignored to meet
deadline  potential conflict with senior
management
Functional groups needed to support project
team to meet deadlines  potential conflict
with FM
Ch. 6.3: Personality Conflicts
During Project Phaseout
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Pressure to complete project
Anxiety to leave project
Distribution of project resources at
project termination
Fresh starting projects Vs. Phasing out
projects
Ch. 6.3: Discipline Oriented Vs.
Problem Oriented Individual
“He/she will do whatever he/she
thinks is right to get his/her own
job done, whether or not it is good
for the company or anyone else”
Pelled and Adler, 1994
Ch. 6.3: Successful Handling
of Conflicts by PM
Ability to reduce and resolve conflict in ways
to support achievement of project’s goals
Primary tool:
Negotiation
Ch. 6.3: Preview and Reading
for Ch. 6.4
Similarities between the confrontation-problem
solving technique and win-win negotiation:
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Pinto and Kharbanda (1995) – conflict resolution
in the spirit of win-win negotiation
Dyer (1987) – focus on conflict between team
members
Afzalur (1992) – general work on win-win
negotiating
Ch. 6.4 Negotiations NOT
covered in Section 6.4
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President and Congress
NFL player’s agent and team
Real-estate buyer and seller
Divorce
Collective bargaining agreement
Tourist and peddler
Ch. 6.4: Key to Understanding
the Nature of Negotiating
NOT: whether or not a task will be
undertaken or a deliverable
produced
BUT: project design of the deliverable
and/or how the design will be
achieved, by whom, and at what cost
Ch. 6.4: Main Requirement for
Conflict Reduction/Resolution
Conflict is to be settled without irreparable
harm to the project’s objectives
Ch. 6.4: Second Requirement for
Conflict Reduction/Resolution
Honesty between negotiators
Ch. 6.4: The Win/Win Solution
Seek solutions to the conflict
that not only satisfy an
individual’s own needs, but
also satisfy the needs of
other parties-at-interest and
the parent organization
Ch. 6.4: Principled Negotiation
1. Separate people from problem
2. Focus on interests, not positions
3. Before trying to reach agreement,
invent options for mutual gain
4. Insist on using objective criteria
Ch. 6.4: How to Separate
People from Problems
Carefully define the substantive
problem
Then, let everyone work on the problem
– not on the person
Ch. 6.4: How to Focus on
Interest, not Position
WRONG: Focus on position
PM: “I need this subassembly by November 15”
FM:” I can’t deliver it before February 1 next
year”
RIGHT: Focus on interest
FM and PM: “Let’s talk about the schedule for
this subassembly.”
Ch. 6.4: Two Examples of
Negotiating Positions
1. Real estate bidder, assuming a future
property value:
“I will not pay more than 1 million for that
property.”
2. Assume that a workgroup’s current
workload will not change, PM states:
“We cannot deliver this subassembly before
February 1.”
Ch. 6.4: Shifting Focus from
Position to Interest
Real estate bidders true interest:
Earn a certain return on investment in
the property
Workgroup PM’s true interest:
Not to commit to delivery of work if
delivery on the due date cannot be
guaranteed
Ch. 6.4: An Interest Negotiator’s
Knowledge and Purpose
Knowledge:
The parties-at-interest’s interests
Purpose:
Suggesting solutions that satisfy the
conflicting party’s interests without
agreeing with either side’s position
Ch. 6.4: Before Reaching Agreement,
Invent Options for Mutual Gain
Marital conflict:
Joe wants to go to the
mountains
Sue wants to go to the
shore
WIN/WIN solution:
Go to lake Tahoe
Ch. 6.4: Four Steps to Move from
Parties-at-Conflict to Win/Win
1. Parties-at-conflict (pac) enter
negotiations knowing what they want
2. The negotiator spells out the
“substantive problem”
3. As the negotiator presents a variety of
possible solutions that advance their
mutual interests, the pac’s converge in
their positions
4. A win/win situation emerges
Ch. 6.4: Key to Finding a Negotiator’s
Interests and Concerns
Ask “WHY?” when he or she states a position
Ch. 6.4: Insist on Using
Objective Criteria
Instead of bargaining on positions,
try to find a standard
Example:
Our friend, the FM, wants to use an
expensive process to test a part
The cost conscious PM then asks if
there is not a less expensive test to
achieve the same result
Ch. 6.4: Short Bibliography on
Negotiating for the PM
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Wall, J.A., jr. “Negotiation: Theory and
Practice” Glenview, Il. Scott, Foresman, 1985
– Excellent academic treatment of the subject
Fisher, R., and Ury, W. “Getting to Yes”
Harmondsworth, Middlesex, G.B.: Penguin
Books, 1983 – clear presentation of principled
negotiations
Cohen, H. “You Can Negotiate Anything”
Secaucus, N.J.: Lyle Stuart Inc., 1980 –
outstanding guide to win-win negotiation
Ch. 6.4: Tactical Issues Covered
by Most Books on Negotiations
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What to do if you want “win-win” but the
other party wants “win-lose”
What to do if the other party is seating you
so that bright lights shine into your eyes
What to do if the other party drags their feet
so as to put you into a situation of extreme
time pressure to accept whatever solution
they offer
(continued on next slide)
Ch. 6.4: Tactical Issues …..
(continued)
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How to settle purely technical disputes
How to handle threats
The FM tries to go over your head and
attempts to enlist the aid of your boss
to get you to accept an unsatisfactory
solution
How to deal with a person that dislikes
you