PA 114 – PROJECT MANAGEMENT

MODULE
Roderick Tuling Olivar, MPA (CAR), CHRA

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 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; and
Practice principled negotiation as an effective negotiating strategy.

Even the smallest and simplest project needs interaction of every functional and staff operating in
the firm. It is unfeasible that interaction would take place without the slightest possibility of conflicts. The
opposing ideas of people involved on the same project on how to attain project objectives could be a reason
for conflicts. In addition, personality is also a factor that requires to be considered in assessing ways to trim
down conflicts in projects. Therefore, it is beneficial if acceptable methods to resolve such conflicts are at
hand.
Negotiation on the other hand is a mandatory skill required of a project manager. It is necessary
that a project manager must not only understand the importance of negotiation in projects but should have
a good training in the art of doing it. The skilful application of negotiation is a great benefit in making
certain that team development and conflict do not disrupt the project completion.
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. The perception of frustration which defines reality that
something wrong occurred is alone sufficient.
There are seven types of conflict that may happen during the development of the project (see Table
7):
Table 7 Conflicts and Recommended Solutions

Types of conflict Definition Recommended solution

Conflict over project priorities Outlooks of project team Create a master plan that is well-
members vary over progression matched with long-term
of activities and tasks; includes strategies
goals incongruity and
differentiation in long term
versus short term standpoints
Conflict over administration Conflict over managerial and Make clear roles, responsibilities
procedures administrative issues on the and reporting relations at the start
manner of organizing and for the project
managing the project

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 Conflict over technical opinions Disagreements over technical Utilize peer review and steering
and performance trade-offs issues, performance committees to appraise
specifications and technical specifications and design
trade-offs.
Conflict over human resources Conflicts about staffing and Create a work breakdown
allocating project personnel and structure and a corresponding
where to get them and how responsibility matrix
Conflict over cost and budget Conflict on cost estimates from Create overall budgets supported
support areas regarding work by detailed budget and cost
breakdown structures and estimates of subproject tasks and
estimating techniques activities
Conflict over schedules Disagreements over the time, Create overall schedules that
sequence, and schedules of incorporates schedule for
project related tasks and subprojects with staffing and
information system to set up and other life restrictions
check project schedules
Personality conflict Disagreements on interpersonal Highlight team building and
issues generate an atmosphere that
stress respect, diversity and
equality
Source: http://www/iei.liu.se/pdf
Fundamental Issues for Potential Conflict
Conflict is unavoidable every time two or more individuals interrelate, whether in the place of work
or at home. It can happen amid two or more individuals, two or more groups, or an individual and a group.
It is significant to keep in mind toward concentrating on the issue, not the people when handling conflict in
an organization. Fundamental issues that can cause conflict which can transpire in any organization consist
of ambiguous definitions of role responsibility, conflict of interest, lack of resources and interpersonal
relationships within the workplace.
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.

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 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 (see Table 8).

Table 8 Conflicts in each stage of the project life cycle

Project life stages Conflicts Recommendations

Project Formation Inherent confusion of Define plans clearly with
new project using matrix joint consultations with
organization affected parties and
Project organization, giving importance of
objectives 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 Build-up Conflict in project Offer useful feedback to
priorities, schedules, support areas on
administrative predicted project plans
procedures and needs through status
Project moves from review meetings
general concept to In collaboration with
detailed plans functional groups plan a
Strong matrix-PM seeks work breakdown
commitment of people packages
from functional Create contingency
department plans on important
Weak matrix-PM seeks administrative issues
commitment of work
Conflict over technical
issues
Technical expert vs
generalist
Main program Conflict in schedule as Monitor continuously
actual work under way works that are in
Get schedule back on progress
track to avoid delay Correspond outcomes to
Catching up require concern parties
extra resources Anticipate problems and
think about options

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 Difficult to trace and Identify potential
estimate the impact of problems that requires
delay quicker scrutiny
Manage Resolve technical
time/cost/performance problems early
trade-offs Schedule and budget
Trade-offs constrained limitations should be
by contract, company communicated to
policy and ethical technical personnel
considerations Stress enough and early
technical testing
Make possible early
agreement on ultimate
designs
Estimate and
communicate staffing
needs early
Set up staffing needs and
main concerns with
functional and staff
groups
Project phase-out Schedule – major Close schedule
conflict monitoring in project life
Schedule slippage, cycle
project with firm Consider reallocation of
deadlines available staff to critical
PM, Project group and project area prone to
functional departments schedule slippages
band together to Reach punctual decision
complete project on technical issues that
Tolerate moderate cost may impinge on
overrun schedules
Technical problems are Create plans for
rare reallocation of people
upon completion of the
project completion
Sustain good
relationships with
project team and support
groups
Endeavour to tone down
high-stress atmosphere
Source: Project Management: A managerial Approach 8 th, 2012 by Jack R. Merideth & Samuel J.
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.

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 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.
In order to succeed using negotiation process, it is essential to know how to bargain. 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 book Getting to Yes by Roger Fisher and William Ury endorsed an excellent advice on a
"principled negotiation" (Meredith & Mantel, 2012). According from these authors this type of
compromising is the art of soliciting agreement with the other party while preserving a principled "win-
win" attitude. 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

a 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 endeavour 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

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 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. Discuss important differences,
searching for the common points each party.
c. Focus on solutions to which both parties can agree. Do not give in to pressure.
In order to guarantee a substantive and successful negotiation, the discussion must be along
objective criteria. It is better to avoid disputing on perceptions and subjective evaluations. The best basis
for truthful negotiations are objective data and some measurable criteria like costs, prices and works hours
which are comprehensible and easy to interpret to both parties. Make sure that objective criteria must be
clearly explained and should be equally meaningful. In this manner any possible misinterpretations and
misunderstandings are avoided.

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