INEN261:
Chapter # 4
Managing Conflict and the Art of
Negotiation
Presented by:
Jasim Alnahas
Chapter Learning Outcomes
If you complete the given assignments for this
chapter you will:
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Understand the nature of conflicts
Understand the role of negotiations in conflicts
Conflict
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Conflict: the process which begins when one
party perceives that the other has frustrated
some concern of his
Our concern is goal conflicts that occur when
a group pursues goals different from other
groups
Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition,
Wiley & Sons Inc., 2012
Conflict typically has a negative
connotation
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“One party perceives that the other has frustrated,
or is about to frustrate some concern of his.”
Conflict is resolved when the level of frustration is
lowered to the point where no action against the
other party is contemplated
Negotiation is a process for resolving that conflict
Conflict however can be a positive
force in Projects
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Conflict can improve the planning process by adding
creativity
Debate (conflict) over the proper technical approach
to a problem often generates a collaborative solution
that is superior to any solution originally proposed
Conflict often educates individuals and groups about
the goals/objectives of other individuals and groups
The positive resolution of the conflict can be a teambuilding process
Conflict and the Project Life Cycle
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Certain patterns of conflict are associated with the different
periods in the life of a project
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Project formation
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Project build up
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Main program
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Project phase-out
Conflict appears to fall into three fundamentally different
categories:
1.
Groups working on the project may have different goals
and expectations
2.
There is considerable uncertainty about who has the
authority to make decisions
3.
There are interpersonal conflicts between people who are
parties-at-interest (Project Team, Client, Functional
Management) in the project
Conflict During Project Formation
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In the initial stage of the project life cycle,
most of the conflict centers around the
inherent confusion of setting up a project
At this point, almost nothing about the project
or its governance has been decided
Moving from this chaotic environment to the
buildup stage can be difficult
Resolving Conflict During Project
Formation (The Plan resolves Conflict!)
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To make the transition from project formation to buildup, four
fundamental issues must be addressed:
 The technical objectives of the project must be specified
to a degree that will allow the detailed planning of the
build up stage to be accomplished
 Commitment of resources to the project must be
forthcoming from senior management and functional
managers
 The priority of the project relative to the priorities of the
parent organization’s other projects, must be set and
communicated
 The organizational structure of the project must be
established to an extent sufficient for the action plan,
WBS and linear responsibility chart to be prepared
What types of conflict are we resolving?
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We are eliminating uncertainty in decision making
and other areas
We are attempting to align goals and expectations
Conflict During Project Build-Up
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This is the period during which the project moves
from a general concept to a highly detailed set of
plans
As the plans become detailed, conflicts over
technical issues build
Conflicts between the project manager and the
functional areas tend to predominate
Usually, the functional areas can claim more
technical expertise than the project manager who is
a “generalist”
Conflict During a Project’s Main
Program
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Schedules are still a major source of conflict in the
main program
“Catching up” requires extra resources that the
functional groups will demand, but which the
project manager may not have.
Functional managers will have to borrow from
other projects or delay your project
Technical conflicts are frequent and serious during
the main program stage
More Conflict During a Project’s Main
Program
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During this phase of the project the many parts
must be linked properly
These linkages are known as interfaces
The number of interfaces increases rapidly as the
project gets larger, which is to say that the system
gets more complex
The need to manage these interfaces and correct
incompatibilities is the key to the technical conflicts
in the main program phase
Conflict During Project Phase Out
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Schedule is the major source of conflict during
project phaseout
Technical problems are comparatively rare
because most have been solved or bypassed
Personality conflicts are the second ranked source
of conflict during phaseout
These conflicts can be caused by pressure to
complete the project and to the anxiety about
leaving the project
The primary tool to accomplish conflict resolution
and reduction is negotiation
Conflict source by Project Phase
(From Figure 6-1)
Formation
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1.
2.
3.
1.
2.
3.
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Priorities
Procedures
Schedules
Build-Up
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Priorities
Schedule
Procedures
Main Program
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1.
2.
3.
Schedules
Technical
Labor
Phase Out
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1.
2.
3.
Schedules
Labor
Personalities
Conflict During a Project
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Few of the conflicts arising in projects have
to do with whether or not a task will be
undertaken
Instead, they have to do with
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The precise design of the deliverable
How the design will be achieved
By whom and at what cost
Clear scopes of work define the tasks and
communicate them sufficiently
Conflict Resolution
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One requirement for conflict reduction/resolution by the project
manager is that they must enable conflict to be settled without
irreparable harm to the project’s objectives
To do this, the project manager must:
 Allow (and foster) honesty between the negotiators
 Employ only ethical tactics during the negotiation
 Understand that any behavior that breeds mistrust will make
future negotiations difficult, perhaps impossible
 Emphasize that the conflicting parties-at-interest are not
enemies but rather allies - members of an alliance with
strong common interests
 Work toward a win – win not a win - lose
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Conflict Resolution
A technique called “principled negotiation”
tends to maintain these requirements of
negotiation and is defined by four points:
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1.
2.
3.
4.
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Separate the people from the problem
Focus on interests, not positions
Before trying to reach an agreement, invent
options for mutual gain
Insist on using objective criteria
Many other negotiations guidelines and
models
The Nature of Negotiation
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The favored technique for resolving conflict is
negotiation
Negotiation is “the process through which two or
more parties seek an acceptable rate of exchange
for items they own or control” (If you are buying or
selling)
Negotiation “focuses on gaining the favor of people
from whom we want things”
Project team should view conflicts within the
organization as conflicts between allies, not
opponents
Seek “win – win” resolution
Projects require that activities be
integrated across the functional
borders of organizations
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Project Managers are usually attempting to work
across these functional borders
Because each area has its own goals, integrating
activities of two or more units (as projects do) is
certain to produce conflicts
These conflicts may be resolved by negotiating a
solution, if one exists, that produces gains (or
minimizes losses) for all parties with some degree of
equity
Negotiating a Resolution
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Approaching project conflicts with a desire to
win a victory over the other parties is
inappropriate.
The project manager should remember that he
will be negotiating with project stakeholders
many times in the future
The proper objective should be to optimize the
outcome in terms of overall organizational
goals
Let’s discuss –
Negotiating Skills and Behaviors
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Analyze the situation
Differentiate between wants and needs (theirs and
yours)
Focus on interests and issues rather than positions
Ask high, offer low but be realistic
When you concede, act as though it is on something
of value
Seek a win – win. Don’t end with either party feeling
they were taken advantage of.
Listen well and articulate clearly
Chapter Summary
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Conflict is bound to occur on any project
Often conflict will bring about improvement to the
project execution
Resolving the conflict rests largely with the project
manager
How well he resolves it is a key indicator of his
effectiveness.
He resolves it through negotiations
Win-win negotiations should be the goal