CHAPTER 4

Management of Conflict and Negotiation

 Objectives

At the end of this chapter, the learner will be able to:

 Recommend solutions on conflicts encountered during the development of the project;
 Diagnose the fundamental issues that may become the cause of conflict in project management.;
 Critique recommended solutions for likely conflicts during the different phases in the project life cycle;
 Practice principled negotiation as an effective negotiating strategy.

Types of Conflicts

Conflict is a normal part of a project team's life. Conflict is the process by which individuals or groups
perceived that someone has taken action that has frustrated or is about to frustrate a major concern of his or their
interests. The definition states two significant things namely that conflict is a process and that it is perceptual in
nature. Being a process it has a dynamic aspect or it evolves. This means that one-time causes of conflict may change
over time. Since conflict is based on perception, it does not matter anymore if a party has actually offended the other
party.
Conflicts and Recommended Solutions
Types of Conflict Definitions R e c o m m e n d e d Solutions
Conflict over project priorities Outlooks of project team members vary over Create a master plan that is well-matched
progression of activities and tasks; includes with long term strategies
goals incongruity and differentiation in long
term versus short term standpoints.
Conflict over administration Conflicts over managerial and administrative Make clear roles, responsibilities and
procedures issues on the manner of organizing and reporting relations at the start of the
managing the project project.

Conflict over technical opinions Disagreements over technical issues, Utilize peer review and steering
and performance trade-offs performance specifications and technical committees to appraise specifications and
trade-offs design
Conflict over human resources Conflicts about staffing and allocating project Create a work breakdown structure and a
personnel and where to get them and how corresponding responsibility matrix

Conflict over cost and budget Conflict on cost estimates from support areas Create overall budgets supported by
regarding work breakdown structures and detailed budget and cost estimates and
estimating techniques subproject tasks and activities
Conflict over schedules Disagreement over the time, Create overall schedule that
sequence, and schedules of project incorporates schedule for
related tasks and information subprojects with staffing and other
system to set up and check project life restrictions
schedules

Personality conflict Disagreements on interpersonal Highlight team building and

issues generate an atmosphere that stress
respect, diversity and equality
 Fundamental Issues for Potential Conflict

1. Ambiguous definition of responsibility - When it is vague who is in charge for what area of a project or task, conflict can
take place. Territorial concerns occur when decisions are prepared that seem to traverse boundaries of responsibility. It is of
the essence that the roles and responsibilities of all the project team members are spelled out clearly and approved upon by
everyone involved prior to the start of project to avoid this from happening.

2. Conflict of interest - Knowing how individual interests and goals match with the structure of the organization will lessen
conflict of interest troubles. The individual may be lured to fight for his individual goals, when a person's own goals are at
odds with the goals of the organization. This situation shall form a conflict that will impede success of the project.

3. Scarce resources- Rivalry over resources, like money, time and materials, could be the cause for the teams to destabilize
each other, leading to conflict among departments or other work groups. Costly resources should to be protected, as well as
dispersed reasonably among all the groups. Making clear picture of the available resources at the start of a project will
facilitate a good approach on some of this conflict.

4. Interpersonal relationships -The personalities of the people concerned in the organizational structure has a significant
role in conflict resolution. Frequently the conflict is a consequence of interpersonal relationships where the parties to the
conflict are powerless to determine individual issues with each other. It is not always simple to reserve individual prejudices
when entering the workplace. However, it is vital to know what those prejudices are and handle them properly before
conflict crops up.
 Conflicts and the Project Life Cycle

The nature and intensity of conflicts vary over each stage of the life cycle of a project. In order to guarantee
the success of a project, conflicts arising from each stage in its life cycle must be precisely defined and resolved
accordingly.

Conflicts in Each Stage of the Project Life Cycle

Project Life Stages Conflicts Recommendations
Project formation  Inherent confusion of new  Define plans clearly with joints
project using matrix organization consultations with affected
 Project organization, objectives parties and giving importance of
not clear project to organizational goals
 Developed detailed
administrative operating
procedures to be followed in the
conduct of project
 Create statement of
understanding
 Get approval coming from key
administrators
 Project Life Stages Conflicts Recommendations

Project build-up  Conflict in project priorities,  Offer useful feedback to support

schedules, administrative areas on predicted project plans
procedures and needs through status review
 Project moves from general meetings
concept to detailed plans  In collaboration with functional
 Strong matrix – PM seeks groups plan a work breakdown
commitment of people from packages
functional department  Create contingency plans on
 Weak matrix-PM seeks important administrative issues
commitment of work
 Conflict over technical issues
 Technical expert vs. generalist
 Project Life Stages Conflicts Recommendations

Main program  Conflict in schedule as actual work  Monitor continuously works that are
under way in progress
 Get schedule back on track to avoid  Correspond outcomes to concern
delay parties
 Catching up require extra resources  Anticipate problems and think about
 Difficult to trace and estimate the options
impact of delay  Identify potential problems that
 Manage time/ cost/ performance requires quicker scrunity
trade-offs  Resolve technical problems early
 Trade-offs constrained by contract  Schedule and budget limitations
company policy and ethical should be communicated to
considerations technical personnel
 Stress enough and early technical
testing
 Make possible early agreement on
ultimate designs
 Estimate and communicate staffing
need early
 Set up staffing needs and main
concerns with functional and staff
groups
 Project Life Stages Conflicts Recommendations

Project phase-out  Schedule-major conflict  Close schedule monitoring in

 Schedule slippage, project with project life cycle
firm deadlines  Consider reallocation of
 PM, project group and available staff to critical project
functional departments band area prone to schedule
together to complete project slippages
 Tolerate moderate cost overrun  Reach punctual decision on
 Technical problems are rare technical issues that may
impinge on schedules
 Create plans for allocation of
people upon completion of the
project completion
 Sustain good relationships with
project team and support
groups
 Endeavor to tone down high-
stress atmosphere
 The Negotiation
Negotiation is an indispensable process for parties to a conflict in order to put solution on their
issues. Negotiation is the process of engaging in a conflict exchange offers and counteroffers by two
conflicting to find a mutually acceptable agreement. The objective of negotiation is to lessen or put an end
to the conflict.
"Lessen" means no additional action not in favor of another party is considered. "Put an end"
means all parties are pleased to a point less than the intensity of frustration. Negotiating is the "win-win"
solution to conflict resolution in project management. In this solution the needs of conflicting parties will be
fulfilled including the parent organization.

Generally, there are three key requirements to take into reflection when negotiating a conflicted issue.

1. Conflicts must be resolved with no irremediable damage to the project's objectives.

2. The techniques must promote honesty among negotiators.
3. Make the solution take place on the project that must gratify the needs of the bargaining parties, other
parties to the conflict, and the parent organizations.
 The following are the propositions they recommend in creating an effective negotiating
strategy:
1. Separate the objective from the problem
a. Negotiations should focus on both the issues and the relationship but must be taken separately.

b. Detect the root of the conflict. Discover what each party wishes and make sure that each party recognizes the issues.

c. Persuade both parties to identify and know their emotions. Request them to analyze the conflict from the angle of the
other side and apply active listening
2. Focus on interests and not in positions
b. Center on the issues, not on positions

b. Identify how each party can get what it desires. Determine the issues that are incompatible between the two parties.
Recognize that both parties have rightful yet numerous interests

c. Have each party identify and rank its goals in the conflict. This often shows that the important goals of each side are
different, thereby helping each party see how to trade off unimportant goals to get what it really wants
3. Prior to trying to achieve agreement, formulate alternatives for reciprocal gains

a. Resourcefully endeavor to generate alternatives that offer reciprocal gains for both parties. Detach generation of
ideas from selection of alternatives

b. Discover areas of common interest. Devise several solutions as well as solutions to parts of the problem

c. Observe viewing the problem from alternative viewpoints.

4. Persevere on applying objective criteria

a. Develop objective criteria to draw on as a foundation for decisions. Describe what fair standards and fair
procedures to employ to determine the conflict. Consent on these principles earlier than getting on a solution.

b. Converse through the issues to remove insignificant issues. important differences, searching for the common
points on each party.

c. Focus on solutions to which both parties can agree. Do not give in to pressure.