Chapter 5

Conflicts
 Conflicts
Conflicts:
• a way of life in a project structure
• generally occur at any level in the
organization,
• usually occurs as a result of conflicting
objectives.
• The project manager has often been
described as a conflict manager.
 Conflicts
• The ability to handle conflicts requires an
understanding of why they occur.
• Asking and answering these four questions may help
handle and prevent conflicts.
1. What are the project objectives and are they in
conflict with other projects?
2. Why do conflicts occur?
3. How do we resolve conflicts?
4. Is there any type of analysis that could identify
possible conflicts before they occur?
5.1 OBJECTIVES

• Each project must have at least one objective.

• The objectives of the project must be made
known to all project personnel and all
managers, at every level of the organization.
• If this information is not communicated
accurately, then it is entirely possible that
there will be a different interpretation of the
ultimate objective, a situation that invites
conflicts.
PROJECT OBJECTIVES MUST BE:

• Specific, not general

• Not overly complex
• Measurable, tangible, and verifiable
• Appropriate level, challenging
• Realistic and attainable
• Established within resource bounds
• Consistent with resources available or
anticipated
• Consistent with organizational plans,
policies, and procedures
THE PROJECT’S OBJECTIVE MUST
FOLLOW THE SMART RULE,
WHEREBY:
● S _ specific
● M _ measurable
● A _ attainable
● R _ realistic or relevant
● T _ tangible or time bound

e.g. R & D
 MANY PROJECTS ARE DIRECTED AND
CONTROLLED USING A MANAGEMENT-BY-
OBJECTIVE (MBO) APPROACH.

 THE PHILOSOPHY OF MBO:

Is proactive rather than reactive management

Is results oriented, emphasizing accomplishment

Focuses on change to improve individual and

organizational effectiveness
• MBO IS A SYSTEMS APPROACH FOR
ALIGNING PROJECT GOALS WITH ORGANIZATIONAL
GOALS, PROJECT GOALS WITH THE GOALS OF
OTHER SUBUNITS OF THE ORGANIZATION, AND
PROJECT GOALS WITH INDIVIDUAL GOALS.
 5.2 THE CONFLICT ENVIRONMENT
• Conflicts are inevitable in the project environment.
• Conflicts and their resolution can be planned for.
The most common types of conflicts involve:
● Manpower resources
● Equipment and facilities
● Capital expenditures
● Costs
● Technical opinions and trade-offs
● Priorities
● Administrative procedures
● Scheduling
● Responsibilities
● Personality clashes
• The most frequently occurring conflicts are
over schedules but the potentially damaging
conflicts can occur over personality clashes.
• Sometimes conflict is “meaningful” and
produces beneficial results.
• A project manager should report high enough
so that he can get timely assistance in resolving
conflicts.
• Project managers must plan for conflict
resolution.
• The best way of resolving conflicts is by
establishing priorities.

• The ultimate responsibility for

establishing priorities rests with top-level
management.
Factors influencing the establishment of project
priorities include:
● The technical risks in development
● The risks that the company will incur, financially or
competitively
● The nearness of the delivery date and the urgency
● The penalties that can accompany late delivery dates
● The expected savings, profit increase, and return on
investment
● The amount of influence that the customer possesses,
possibly due to the size of the project
● The impact on other projects or product lines
● The impact on affiliated organizations
Reasons why conflicts occur:
• The greater the diversity of disciplinary expertise, the
greater the potential for conflict to develop.
• The lower the project manager’s degree of authority,
reward, and punishment power, the greater the
potential for conflict to develop.
• The less the specific objectives of a project are
understood, the more likely it is that conflict will
develop.
• The greater the ambiguity of roles , the more likely it
is that conflict will develop.
• The greater the agreement on super-ordinate goals,
the lower the potential for detrimental conflict.
• The more the members of functional areas perceive
that the implementation of a project management
system will adversely seize their traditional roles, the
greater the potential for conflict.
5.3 CONFLICT RESOLUTION

The four most common conflict resolution methods

are:
1. The development of company-wide conflict
resolution policies and procedures
2. The establishment of project conflict resolution
procedures during the early planning activities
3. The use of hierarchical referral
4. The requirement of direct contact
 1. Company-wide policies and procedures
• This method is often destined to failure
because each project and conflict is
different.
• Furthermore, project managers, by virtue of
their individuality, and sometimes differing
amounts of authority and responsibility,
prefer to resolve conflicts in their own
fashion.
2. “Plan” for conflicts during the planning
activities

• often very effective

• can be accomplished through the
use of linear responsibility charts.
3. Hierarchical referral

• appears as the best method because neither the

project manager nor the functional manager
will dominate.
• the project and functional managers agree that
for a proper balance to exist their common
superior must resolve the conflict to protect
the company’s best interest.
4. Direct contact:

• conflicting parties meet face-to-face and

resolve their disagreement.
• does not always work and, if continually
stressed, can result in conditions where
individuals will either suppress the
identification of problems or develop new
ones during confrontation.
5.4 UNDERSTANDING SUPERIOR, SUBORDINATE,
AND FUNCTIONAL CONFLICTS

In order for the project manager to be

effective, he must understand how to work
with the various employees who interface
with the project.
These employees include:
• upper-level management
• subordinate project team members, and
• functional personnel
• A project manager must demonstrate ability for
continuous adaptability by creating a different
working environment with each group of
employees.
• The type and intensity of conflicts can also vary with the
type of employee, as shown in figure below.
The specific resolution mode that a project manager
will use might easily depend on whom the conflict
is with, as shown in Figure 7–2.
• Various influence styles that project managers find effective in helping to reduce
potential conflicts.
• Penalty power, authority, and expertise are considered as strongly unfavorable
associations with respect to low conflicts. As expected, work challenge and
promotions (if the project manager has the authority) are strongly favorable.
5.5 THE MANAGEMENT OF CONFLICTS

Good project managers realize that conflicts are

inevitable, but that good procedures or techniques
can help resolve them.
Once a conflict occurs, the project manager must:
• Study the problem and collect all available
information
• Develop a situational approach or methodology
• Set the appropriate atmosphere or climate
 • If a confrontation meeting is necessary between
conflicting parties, then the project manager should
be aware of the logical steps and sequence of events
that should be taken.
These include:
● Setting the climate
● Analyzing the images
● Collecting the information
● Defining the problem
● Sharing the information
● Setting the appropriate priorities
● Organizing the group

5
 ● Problem-solving: obtaining cross-functional
involvement, securing commitments, and
setting the priorities and timetable
● Developing the action plan
● Implementing the work
● Following up

5
P.M should understand conflict minimization
procedures include:
● Pausing and thinking before reacting
● Building trust
● Trying to understand the conflict motives
● Keeping the meeting under control
● Listening to all involved parties
● Maintaining a give-and-take attitude
● Educating others tactfully on your views
● Being willing to say when you were wrong
● Not acting as a superman and leveling the discussion
only once in a while
Effective manager in conflict problem-solving
situations:
● Knows the organization
● Listens with understanding rather than
evaluation
● Clarifies the nature of the conflict
● Understands the feelings of others
● Suggests the procedures for resolving
differences
● Maintains relationships with disputing
parties
● Facilitates the communications process
● Seeks resolutions
 5.6 CONFLICT RESOLUTION MODES

Based upon the situation, the type of conflict, and

whom the conflict is with, any of these modes
could be justified.
1. Confronting / Problem Solving
2. Compromising
3. Forcing
4. Smoothing / Accommodating
5. Withdrawing / Avoiding
Confronting / Problem Solving
• Sometimes referred to as
“collaborating”
• Generally viewed as the best
method for conflict resolution
• Looks to solve the conflict at the
source so it will not be an issue for
the project
Confronting / Problem-Solving
when…
• When conflicting parties can both get at
least what they want and maybe more
• To reduce cost
• To create a common power base
• To attack a common enemy
• When skills are complimentary
Confronting / Problem-Solving
when…
• When there is enough time
• When there is trust
• When you have confidence in the other’s
ability
• When the ultimate objective is to learn
Compromising

• To negotiate or bargain for a solution

to give both parties some degree of
satisfaction
• “Give and take” or “win-win”
• Neither party gets everything they
want or need (“lose-lose”)
Compromising when…
• When both parties need to be “winners”
• When you can’t win
• When others are as strong as you are
• When you haven’t time to win
• To maintain the relationship
Compromising when…
• When you are not sure you are right
• When you get nothing if you don’t
• When stakes are moderate
• To avoid giving the impression of
“fighting”
 Forcing
• Competing, Being Uncooperative, Being Assertive
• When one party imposes the solution
on the other party
• “win-lose” situation, wins at the
expense of the loser
• Does not always address the
underlying source of conflict and
often reduces team morale
Forcing when…
• When you are right
• When a do-or-die situation exists
• When stakes are high
• When important principles are at stake
• When you are stronger
Forcing when…
• To gain status or power
• In short term (one time) deals
• When the relationship is unimportant
• When a quick decision must be made
Smoothing / Accommodating
• Emphasize areas of agreement
• Tends to downplay conflict instead of
solving conflict
• May make sacrifices to satisfy the
needs of the other party
Smoothing / Accommodating
when…
• To reach an overarching or higher goal
• To create obligation for a trade-off at a
later date
• When the stakes are low
• When liability is limited
Smoothing / Accommodating
when…
• To maintain harmony
• When any solution will be adequate
• To create goodwill
• When you will lose anyway
• To gain time
Withdrawing / Avoiding
• Temporary solution at best
• Conflict and source of conflict will
continue through project life
• Some view as cowardice and
unwillingness to address the conflict
situation
Withdrawing / Avoiding when…
• When you can’t win
• When stakes are low
• When stakes are high, but you are not
ready
• To gain time
Withdrawing / Avoiding when…
• To unnerve your opponent
• To preserve neutrality or reputation
• When you think the problem will “go
away”
• When you win by delay