Chapter 4
Managing
Conflict and the
Art of
Negotiation
Copyright 2015 John Wiley & Sons, Inc.
Conflict
Conflict: the process which begins when
one party perceives that the other has
frustrated some concern of his
Our concern is goal conflicts that occur
when a group pursues goals different
from other groups
4-2
Best Approach
For Managing conflict is to proactively
take steps to align the goals of the
various stakeholders with the purpose of
the project.
4-3
Identifying and Analyzing
Stakeholders
Identify stakeholders
– Usually through expert judgment of PM
– Create stakeholder register
– Create stakeholder issue log
Analyze stakeholders
– Update stakeholder register
– Power-Interest Grid
– Commitment Assessment Matrix
4-4
Power-Interest Grid
4-5
Commitment Assessment Matrix
4-6
Managing Stakeholder Engagement
Obtain and conform stakeholder
commitment
Communicate with stakeholders
Proactively address stakeholder concerns
Resolve issues in a timely fashion
4-7
Conflict and the Project Life Cycle
R&D
Market introduction
Growth
Maturity
Deterioration
Death
4-8
Project Life Cycle
Formulation Conceptualization
Buildup Planning
Main program Execution
Phase-out Termination
4-9
Three Main Categories of Conflict
Different goals and expectations
Uncertainty about authority
Interpersonal conflict
4-10
Project Formation
Conflict centers around the confusion of starting
a new project
– Many of the policies and procedures have not yet
been formed
– The objectives of the project are not yet finalized
Conflict cannot be avoided at this phase
In fact, much of this conflict is good conflict
4-11
Handling Project Formation Conflict
Technical objectives must be set
Senior management and line managers
must commit to the project
The priority for the project must be set
Organizational structure of the project
must be established
4-12
Project Buildup
Conflicts tend to be technical in nature
Conflicts between the PM and the
functional areas tend to predominate
4-13
Main Program
Schedules are a major source of conflict
Some tasks will be late and the schedule
should be adjusted or the time made up
The more complex the project, the more
difficult it is to trace the sources of conflict
There are also technical conflicts
4-14
Project Phase-Out
Deadlines are a major source of conflict
Technical problems are rare
Personality conflicts will be a big deal due
to time pressures
4-15
Dealing With Conflict
People deal with conflict along two
dimensions
Assertive Unassertive
Cooperative Uncooperative
4-16
Strategies to Deal with Conflict
Competing
Avoiding
Collaborating
Accommodating
Compromising
4-17
Conflict Resolution Strategies
4-18
The Nature of Negotiation
The process through which two or more
parties seek an acceptable rate of
exchange for items they own or control
Parties to a negotiation often see
themselves as opponents
“If they win, I lose”
Project manager must avoid this on
projects as all stakeholders are
interrelated
4-19