1. Negotiation and Conflict Resolution (Part I) Chapter 6

2. Introduction Planning require many inputs Multiple interactions cause conflict Conflict: “… the process which begins when one party perceives that the other has frustrated, or is about to frustrate, some concern of his” Conflict of goals

3. Conflict Resolution Lower the level of frustration – resolve conflict Brute force Absolute rule of the monarch Rule of law Establish rules and regulations to settle disputes E.g. conflict between buyer and seller, user and supplier Negotiation to reduce or resolve conflict

4. Conflict Resolution Conflict may produce positive outcomes E.g. debate over technical approach Educate people about the goals of other people Win-win negotiation

5. Nature of Negotiation Negotiation: “… the process through which two or more parties seek an acceptable rate of exchange for items they own or control” Negotiation – mediate,, conciliate, make peace, compromise, bring to agreement, settle differences, arbitrate, bargain, moderate Conflict between organization and outsiders – property rights and contractual obligation

6. Nature of Negotiation Lateral relations – decision to be made horizontally Negotiate a solution – produces gain for all Pareto optimal solution – no party better off without making another party worse off

7. Conflict and Project Life Cycle

8. Project Life Cycle Four stage model – project formation, buildup, main program and phase out Conceptualization, planning, execution and termination First stage (initial planning) – adopt objectives, set scope Second stage – detailed planning, budgeting, scheduling and aggregation of resources

9. Project Life Cycle Third stage – accomplished actual work Final stage – works are completed and products turn over to client, disposition of project’s asset and personnel

10. Categories of Conflict Conflicts on schedule, priorities, human resource requirements, technical matters, administrative procedures, costs and personality conflicts

12. Three Categories of Conflict 1.Groups may have different goals and expectations 2.Considerable uncertainty about the authority 3.Interpersonal conflicts Differ in objectives and technical judgment – expectation, costs and rewards, schedules, priorities Project manager vs. functional manager

13. Conflict Technical and administrative procedures Uncertainty about authority – resource allocation,communication, technological choices Clash of personalities

14. Parties-at- interest Categories of Conflict GoalsAuthorityInterpersonal Project team Client Functional and senior management Schedules Priorities Schedules Priorities Schedule Priorities Manpower Cost Technical Administrative Personality

15. Conflict Senior management, project manager and functional manager Stringent cost and time Project’s priority, applicability of technology, client’s priority and schedule

16. Methods for Settling Conflicts Projects rank by measure of value Senior managers determine inter project priorities

17. Conflict Matrix organization – conflict in locus of authority PM adopt administrative procedures that conform to standards PM argue for schedule and resource from functional managers Personality clashes – technical approach, philosophy of problem solving and methods to implement project results

18. Project Formation Confusion of setting up a project using matrix organization Objectives not clearly defined

19. Fundamental Issues 1.Technical objectives must be specified 2.Commitment of resources forthcoming 3.Set priority of the project 4.Establish project organizational structure Do not practice conflict avoidance Strong matrix – PM more authoritative