SUMMARY

This chapter addressed the need for negotiation as a tool to resolve project conflicts. We first discussed the nature of negotiation and its purpose in the organization. We then described various categories of conflict and related them to the project life cycle. We followed this by identifying a number of requirements and principles of negotiation. Finally, we presented a short vignette illustrating an actual negotiation situation.

Specific points made in the chapter were these:

• Negotiation within the firm should be directed at obtaining the best outcome for the organization, not winning.

• There are three major categories of conflict: goal-oriented, authority-based, and interpersonal.

• There are also three primary sources of conflict. They are the project team itself, the client, and functional and senior management,

• Critical issues to handle in the project formation stages are delimiting technical objectives, getting management commitment, setting the project's relative priority, and selecting the project organizational structure.

• The total level of conflict is highest during the project buildup stage.

• Scheduling and technical conflicts are mo' frequent and serious in the project buildup and main program stages, and scheduling conflicts in particular during the phaseout stage.

• Project negotiation requirements are that conflicts must be settled without permanent damage, the methodology must foster honesty, and the solution must satisfy both individuals' and the organization's needs.

• One promising approach to meeting the requirements of project negotiation is called principled negotiation.

This chapter concludes the subject of project initiation. In the next part of the text we address project implementation, starting with the subject of budgeting. We look at various budgeting methods. The chapter also addresses the issue of cost estimation and its difficulty.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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