43444379 06 conflict and negociation

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MGT 550: Introduction to Project Management

MGT 550 Introduction to Project ManagementChapter 6: Conflict and NegotiationWesley J. Howe School of Technology ManagementCourse Development Team Members: Michael Poli Celia Desmond, PMP David Keeney, PMP, CQM, CPDT

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Copyright InformationThe slides in this file are provided to faculty instructing MGT 500 on behalf ofthe Stevens Institute of Technology. Use is restricted to academic endeavors associated with the delivery of MGT 550 to students properly enrolled at the Stevens Institute of Technology. All other rights are reserved by the original owners

of materials contained in this program. The slides contain copyrighted materialthat has been reproduced and/or adapted to the course syllabus under the doctrine of fair use for academic purposes. All slides in this course are copyrighted bythe original source. Requests to reproduce materials for other purposes shouldbe directed to the copyright owner identified in the bibliography that will be made available to faculty.

March 31, 2002

For academic use only.

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Module 6: Conflict & NegotiationPurpose: prepare students to identify potential strategies for dealing with conflict and to recognize that negotiation can be used to resolve many problems associated with conflict among stakeholders.March 31, 2002 For academic use only. 3


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Module 6 Objectives Conflict Strategies Describe five possible methods for dealing with conflict Present the advantagesand disadvantages of each method for dealing with conflict Explain that each method can be an appropriate response to conflict Introduce the concept of situatio

nal leadership Explain that the nature of conflict will usually change over theproject lifecycle

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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 educatesindividuals and groups about goals/objectives of other individuals and groupsMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Constructive Results of Conflicts Stimulation of a search for new facts or resolutions Improved communication Diffusion of more serious conflict Increase in group cohesion and performance Development of problem solving techniquesMarch 31, 2002 For academic use only. Desmond, 2001 6


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Conflict Coping Styles Withdraw/Avoid Accommodate/Smooth-over Dominate/Confront Compromise Problem-Solve Each style has appropriate and inappropriate uses.March 31, 2002 For academic use only. 7


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Withdrawing (Avoiding)Appropriate: Trivial issue Costs > benefits Need to cool-off first Not Appropriate: Important issue You are responsible Not willing to defer Prompt action is needed

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Accommodating (Smoothing)Appropriate: I might be wrong Issue important to other person but not to you Myposition is weak The relationship is important Gain future leverageMarch 31, 2002

Inappropriate: I am right Issue important for me As temporary solution to be renegotiated later


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Dominate/ConfrontAppropriate: Speed is needed Overcome assertive subordinates that lack expertiseon issue Issue is important to meMarch 31, 2002

Inappropriate: Issue is complex Issue not important to me Both parties have equal power


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CompromiseAppropriate: Both parties have equal power and goals are mutually exclusive Consensus not attained and better methods have not workedMarch 31, 2002

Inappropriate: One party is more powerful Problem is too complex Win-win can beattained


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Problem-SolveAppropriate: Complex issue Need synthesis to get solution Time is available Teamwork needed Inappropriate: Simple problem Immediate decision needed Other parties are not concerned about problem

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Conflict Management TechniquesHIGH

SMOOTHING (ACCOMMODATING)

PROBLEM SOLVING (COLLABORATING)

RELATIONSHIPS ORIENTATION

COMPROMISE

WITHDRAWALLOW

FORCING (COMPETING)OBJECTIVE ORIENTATION HIGHDesmond, 2001 13

(AVOIDING)LOW

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Module 6 Objectives Tuckmans Model of Group Dynamics Describe the stages of group development Apply Tuckmans Model to team developmentover the project lifecycle

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Tuckmans Model of Group Dynamics Forming Storming Norming Performing Disbanding

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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 ofhow to negotiate for resources with functional managers Explain the natural ant

agonism that exists between a buyer and a seller. Explain the role of contractsin documenting a negotiated meeting of the mindsMarch 31, 2002 For academic use only. 16


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Nature of Negotiation Negotiation the process through which two or more parties seek an acceptable rate of exchangefor items they own or control Favored technique for resolving conflict

Firms should view conflicts within organization as conflicts between allies, notopponents

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M&M Text, Chpt. 6

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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 partys interests Invent options for mutual gain - Enter knowing outcome they would like - Blind to o

ther outcomes - Find options that produce mutual gain Insist on using objectivecriteria - Find standards, use to determine quality outcome - Make less a contest of willsMarch 31, 2002 For academic use only.

M&M Text, p 244-245

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BATNA

Best Alternative To a Negotiated AgreementMarch 31, 2002 For academic use only.

Fisher & Ury, Getting to Yes

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Dr. Stephen Coveys 7 Habits of Highly Effective People1. 2. 3. 4. 5. Be proactive Begin with the end in mind Put first things first Think win/win Seek first to understand, then to be understood 6. Synergize 7. Sharpen the sawMarch 31, 2002 For academic use only. 20


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Conflict and Project Lifecycle Certain patterns of conflict are associated with different periods in life of project1. Groups working on project may have different goals and expectations 2. Thereis considerable uncertainty about who has authority to make decisions 3. There a

re interpersonal conflicts between people who are parties-at-interest in project

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M&M Text, Chpt. 6

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Conflict in Projects Initially, most conflict centers around inherent confusion of setting up projectin environment of matrix management Almost nothing about project or its governance has been decided Moving from thischaotic environment to buildup stage can be difficult

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M&M Text, Chpt. 6

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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 organizations other projects should be set and communicated Organizational structure of project should be established to extent sufficient for WBS and linear responsibility chart preparationMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Conflict in Projects Formation is period during which project moves from general concept to highly detailed set of plans As plans become detailed, conflicts over technical issues build Conflicts between project manager and functional areas tend to predominate

Usually, functional areas can claim more technical expertise than project manager who is usually a generalistMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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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 maynot have extra resources

Technical conflicts are frequent and serious during main program stageMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Conflict in Projects During main phase, many parts must be linked properly These linkages are known as interfaces Number of interfaces increases rapidly asproject gets larger System gets more complex

Need to manage these interfaces and correct incompatibilities is key to technical conflicts in main program phaseMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Conflict in Projects Schedule is major source of conflict during project phaseout Technical problems are comparatively rare because most have been solved or bypassed Personality conflicts are second ranked source of conflict during phaseout Pressure to complete project Anxiety about leaving the project

Primary tool to accomplish conflict resolution and reduction is negotiationMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Conflict in Projects Few conflicts arising in projects have to do with whether or not task will be undertaken Instead, they have to do with Precise design of deliverable How design will be achieved By whom and at what co

st

Implication is clear: Work of project will be doneMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Conflict Reduction/Resolution One requirement for conflict reduction/resolution by project manager is that PMshould allow conflict to be settled without irreparable harm to projects objectives To do this, project manager should: Allow (and foster) honesty between negotiators Employ only ethical tactics durin

g negotiation Understand that any behavior that breeds mistrust will make futurenegotiations difficult, perhaps impossible Emphasize that conflicting parties are members of alliance with strong common interestsMarch 31, 2002 For academic use only.

M&M Text, Chpt. 6

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Legal Obligations Contracts create enforceable obligations related to the natural antagonism thatexists between the buyer and the seller Allocation of resources Assignment of risk The contract formalizes the relationship between the buyer and the seller

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Procurement ProcessesProcurement Solicitation Planning Planning Bidders List Solicitation Source Contract Contract Selection Administration Closeout Bid Analysis

Issue

IFB RFI RFQ RFPor

ReceiveBids Brochures Quotations Proposals

Negotiation and Selection

Contract Execution

Contract Closeout

RequisitionMarch 31, 2002

TimeFor academic use only.

Keeney, 2001

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Typical Contract Clauses Payment Free will Whole agreement Notification Termination Damages Assigrisdiction Disputes Government flowdown clauses include: Termination for convenience Privity

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Reading Assignments From Chapter 6 Text Pp 226 248 Pp 252 257

For Chapter 7 Text Pp 261 292 Pp 295 301

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43444379 06 conflict and negociation

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