Conflict and Negotiation

The work life of a project manager is a life of conflict. Although conflict is not necessarily bad,

it is an issue that has to be resolved by the project manager. Without excellent negotiation skills, the project manager has little chance for

success.

Taylor, J. 1998. A survival guide for project managers. AMACON

Conflict is actual or perceived opposition of needs, values and interests.

Traditional view of conflict – all conflict is harmful and must be avoided.

Human relations view of conflict –conflict is a natural and inevitable outcome in any group.

Interactionist view of conflict – conflict is not only a positive force in a group, but it is also an absolute necessity for a group to perform effectively.

3 types of conflict:

Task conflict – conflict over content and goals of the work.

Relationship conflict – conflict based on interpersonal relationships.

Process conflict – conflict over how work gets done.

I Potential opposition or incompatibility

II Cognition and personalization

III Intentions

IV Behavior

V Outcomes

I POTENTIAL OPPOSITION OR INCOMPATIBILITY

COMMUNICATION

STRUCTURE

PERSONAL VARIABLE

II COGNITION AND PERSONALZIATION

Perceived conflict

Felt conflict

III INTENTIONS

IV BEHAVIOUR

Party’s behavior Other’s reaction

IV BEHAVIOUR

Overt efforts to destroy the other party

Aggressive physical attacks

Threats and ultimatums

Assertive verbal attacks

Overt questioning or challanging of others

Minor disagreements or misunderstandings

Annihilatory conflict

No conflict

IV BEHAVIOURCONFLICT RESOLUTION

TECHNIQUESProblem solvingSuperordinate goalsExpansion of resourcesAvoidance

Smoothing

Compromise

Authoritative command

Alreing the human variable

Altering the structural variable

IV BEHAVIOUR

CONFLICT STIMULATION TECHNIQUES

Communication

Bringing in outsidersRestructuring the

organizationAppointing a devil’s

advocate

V OUTCOMES

Increased group performance

Increased group performance

Negotiation = bargainingTwo or more parties exchange goods

And attempt to agree on exchange rates

Approaches to negotiation:

Distributive bargaining

Fixed pie

Opposed interests

Win/lose

Target point/resistance point

Approaches to negotiation

Integrative bargaining

One or more settlements

Win/win

Long-term relationship

Negotiation Style Number 5

http://www.youtube.com/watch?v=3oKwg6W05MU

THE NEGOTIATION PROCESS

Preparation

and planning

•What is the nature of conflict?

•Who is involved?

•What are your goals?

•BATNA ( the best alternative to a negotiated agreement)

Definition of ground

rules

•Who will do the negotiating?

•Where it will take place?

•What is the time limit?

Clarification and justification

•Educating and informing

Bargainin

g and Problem

Solving

•Concessions time

Closure and implementation

•Formalizing the agreement and developing procedure

•BUT closure of the negotiation process for most cases is nothing more than a formal handshake

INDIVIDUAL DIFFERENCES IN NEGOTIATION EFFECTIVENESS

Personality traits• The best bargainer is Disagreeable introvert (according to the Big Five Test)

Moods/emotions

Gender differences• a popular stereotype: women are more cooperative and pleasant in negotiations

than men.

Cultural differences• Brazilians on average said “no” 83 times, Japanese 5 and North Americans 9• Brazilians interrupted 2.5 to 3 times more often than the North Americans and

Japanese• Japanese and North Americans had no physical contact while Brazilians touched

each other almost 5 times every half hour

THIRD PARTY NEGOTIATIONSMediator – a neutral third party who facilitates a negotiated solution by using reasoning, persuasion and suggestions for alternatives.

Arbitrator – a third party to a negotiation who has the authority to dictate an agreement

THIRD PARTY NEGOTIATIONS

Conciliator – a trusted third party who provides an informal communication link between the negotiator and the opponent.

Consultant – a skilled and impartial third party who attempts to facilitate problem solving through communication and analysis, aided by a knowledge of conflict management.

THANK YOU!