Professional Documents
Culture Documents
MGT 550
Introduction to
Project Management
Chapter 6:
Conflict and
Negotiation
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Module 6 Objectives
• Conflict Strategies
– Describe five possible methods for dealing with conflict
– Present the advantages and disadvantages of each
method for dealing with conflict
– Explain that each method can be an appropriate
response to conflict
– Introduce the concept of situational leadership
– Explain that the nature of conflict will usually change
over the project lifecycle
Conflict
• Conflict
– “process which begins when one party perceives that
the other has frustrated, or is about to frustrate, some
concern of his”
– Can play creative role in planning process
• Debate over proper technical approach to
problem often generates collaborative solution
that is superior to solution originally proposed
• Conflict often educates individuals and groups
about goals/objectives of other individuals and
groups
March 31, 2002 For academic use only. M&M Text, Chpt. 6 5
MGT 550: Introduction to Project Management
• Withdraw/Avoid
• Accommodate/Smooth-over
• Dominate/Confront
• Compromise
• Problem-Solve
Withdrawing (Avoiding)
Accommodating (Smoothing)
Appropriate: Inappropriate:
• I might be wrong • I am right
• Issue important to • Issue important for
other person but not me
to you
• My position is weak • As temporary
solution to be
• The relationship is
important renegotiated later
• Gain future leverage
Dominate/Confront
Appropriate: Inappropriate:
• Speed is needed • Issue is complex
• Overcome assertive • Issue not
subordinates that important to me
lack expertise on • Both parties have
issue equal power
• Issue is important to
me
Compromise
Appropriate: Inappropriate:
• Both parties have • One party is more
equal power and powerful
goals are mutually • Problem is too
exclusive complex
• Consensus not • Win-win can be
attained and better attained
methods have not
worked
March 31, 2002 For academic use only. 11
MGT 550: Introduction to Project Management
Problem-Solve
Appropriate: Inappropriate:
• Complex issue • Simple problem
• Need synthesis to • Immediate
get solution decision needed
• Time is available • Other parties are
• Teamwork needed not concerned
about problem
(COLLABORATING)
ORIENTATION
COMPROMISE
WITHDRAWAL FORCING
LOW (AVOIDING) (COMPETING)
Module 6 Objectives
• Tuckman’s Model of Group Dynamics
– Describe the stages of group development
– Apply Tuckman’s Model to team development over the
project lifecycle
Tuckman’s Model of
Group Dynamics
• Forming
• Storming
• Norming
• Performing
• Disbanding
Module 6 Objectives
• Basic Negotiation
– Describe the basic principles of negotiation
– Emphasize the role and importance of a BATNA
– Emphasize the importance of learning from differences
– Give examples of how to negotiate for resources with
functional managers
– Explain the natural antagonism that exists between a
buyer and a seller.
– Explain the role of contracts in documenting a
negotiated “meeting of the minds”
Nature of Negotiation
• Negotiation
– “the process through which two or more
parties seek an acceptable rate of exchange
for items they own or control”
– Favored technique for resolving conflict
• Firms should view conflicts within
organization as conflicts between allies,
not opponents
March 31, 2002 For academic use only. M&M Text, Chpt. 6 17
MGT 550: Introduction to Project Management
Principled Negotiation
• Separate people from the problem
- Emotions and fact can be confused
- Define problem
• Focus on interests, not positions
- Bargaining, haggling (may have cultural linkages)
- Never focuses on real Issues
- Determine other party’s interests
• Invent options for mutual gain
- Enter knowing outcome they would like
- Blind to other outcomes
- Find options that produce mutual gain
• Insist on using objective criteria
- Find standards, use to determine quality outcome
- Make less a contest of wills
March 31, 2002 For academic use only. M&M Text, p 244-245 18
MGT 550: Introduction to Project Management
BATNA
• Best
• Alternative
• To a
• Negotiated
• Agreement
Fisher & Ury,
March 31, 2002 For academic use only. Getting to Yes 19
MGT 550: Introduction to Project Management
March 31, 2002 For academic use only. M&M Text, Chpt. 6 21
MGT 550: Introduction to Project Management
Conflict in Projects
March 31, 2002 For academic use only. M&M Text, Chpt. 6 22
MGT 550: Introduction to Project Management
Conflict in Projects
• To make transition from project formation to
buildup, 4 issues should be addressed:
– Technical objectives of project should be specified to
degree that will allow detailed planning of build up stage
to be accomplished
– Commitment of resources to project should be
forthcoming from senior management and functional
managers
– Priority of project relative to priorities of parent
organization’s other projects should be set and
communicated
– Organizational structure of project should be
established to extent sufficient for WBS and linear
responsibility chart preparation
March 31, 2002 For academic use only. M&M Text, Chpt. 6 23
MGT 550: Introduction to Project Management
Conflict in Projects
March 31, 2002 For academic use only. M&M Text, Chpt. 6 24
MGT 550: Introduction to Project Management
Conflict in Projects
• Schedules are
– Still a major source of conflict in main program
– Proximate cause of schedule-related conflict is
usually different than in earlier stages
• “Catching up”
– Requires extra resources that functional
groups will demand
– Project manager may not have extra resources
• Technical conflicts are frequent and
serious during main program stage
March 31, 2002 For academic use only. M&M Text, Chpt. 6 25
MGT 550: Introduction to Project Management
Conflict in Projects
March 31, 2002 For academic use only. M&M Text, Chpt. 6 26
MGT 550: Introduction to Project Management
Conflict in Projects
March 31, 2002 For academic use only. M&M Text, Chpt. 6 27
MGT 550: Introduction to Project Management
Conflict in Projects
March 31, 2002 For academic use only. M&M Text, Chpt. 6 28
MGT 550: Introduction to Project Management
Conflict Reduction/Resolution
March 31, 2002 For academic use only. M&M Text, Chpt. 6 29
MGT 550: Introduction to Project Management
Legal Obligations
Procurement Processes
Procurement Solicitation Solicitation Source Contract Contract
Planning Planning Selection Administration Closeout
Bid
Bidders Issue Receive Analysis
List
IFB Bids
RFP Proposals
or
Requisition
Time
March 31, 2002 For academic use only. Keeney, 2001 31
MGT 550: Introduction to Project Management
Reading Assignments