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 ManagerTeam 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
solution
No party can be made better off without making another
party worse-off by the same amount or more

Highest level of negotiation skills

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