mgmt 483 week 4. negotiation and the management of conflict the nature of negotiation dealing...
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MGMT 483 Week 4
Negotiation and the management of conflict The nature of negotiation Dealing with outside partners /subcontractors The role of the project charter Dealing with scope creep and scope change Some requirements and principles of negotiation
The project in the organizational structure The project as part of the functional organization The pure project organization The matrix organization Virtual projects Mixed organizational systems The project team
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Conflict is a natural and necessary part of projects, so PMs must learn to deal with it.
Negotiation is one process used to resolve conflict.
Goal: to come up with solutions that are mutually agreeable to the parties involved. “such that no party can be made better off
without making another party worse off by the same amount or more.” (known as a Pareto-optimal solution).
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Dealing with outside partners /subcontractors
The role of the project charter
Dealing with scope creep and scope change
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Project firm and subcontractors are at odds on a project – the relationship is basically adversarial Project firm wants the deliverable at the highest quality
and lowest cost, ASAP Subcontractors want to produce the deliverable at the
highest profit with the least amount of effort The concept of “partnering”: designed to replace
this with cooperation and mutual helpfulness Joint evaluation of project progress A method for solving conflicts and disagreements Acceptance of a goal of continuous improvement (TQM) Continuous high level support for the concept of
partneringMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
The Project Charter includes the expected deliverables, budgets, & resource commitments
The charter constitutes the written agreement between the parties
Very important where subcontractors are involved
All projects should have some form of Charter – at least can act as evidence that the parties agreed at some point!
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Reasons for scope change The initial assessment was wrong –
technological uncertainty is a big factor Project team or the client learns more about
the project as it proceeds Change is mandated – in other words,
something happens in the external environment that can’t be controlled
The Project Charter and partnering can also help the PM deal with conflicts over scope change – but these are not yet widely or fully adopted
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Pritchard Soap Company page 181 Work in small groups to answer the
question
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Must always try to negotiate towards a “win-win” situation – it is the key to conflict resolution in project management
What does “win-win” mean? “It is a requirement of all conflicting parties
to seek solutions to the conflict that not only satisfy their own individual needs, but also satisfy the needs of the other parties to the conflict, as well as the needs of the parent organization”
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Separate the people from the problem
2. Focus on interests, not positions3. Before trying to reach agreement,
invent options for mutual gain4. Insist on using objective criteria
The Quad Sensor project – page 178 Questions on page 181
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Huge growth in project-based work1. Need for speed, market responsiveness, and product
flexibility2. Need for broader areas of knowledge in developing
new products and services3. Rapid expansion of technology4. Management inability to understand and control large
numbers of activities Switching to a project environment is difficult and time
consuming Requires the full commitment of upper management Generally causes a lot of “concern” among employees As a result, organizations may have multiple structures
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. How to tie project to parent firm
2. How to organize the project
3. How to organize activities common to multiple projects
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. The project as part of the functional organization
2. The pure project organization3. The matrix organization
Virtual projects4. Mixed organizational systems
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Organization is divided into functional sub-units Integration between sub-units handled
by rules, procedures Management chain handles problems Works well in stable environment
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Flexible use of staff Experts assigned to functional units Assigned to projects as needed
2. Staff can easily be assigned to multiple projects Experts can be switched between projects easily Functional manager picks best expert for each
project
3. Specialists can share knowledge and experience
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
4. Functional units provide technological/knowledge continuity
Also provide continuity of policies and procedures
Functional manager can train and inspect5. Functional areas provide for a career
path within a knowledge area Engineers can become supervisors or VP’s Does not require movement into project
management to advanceMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Client is not the focus Function unit has its own work outside the project Functional manager not likely to be accountable for
project and therefore client2. Functional units not focused on project
Function unit sees success in its area as most important Project seen as secondary, or worse, an interruption
3. Project manager may not have adequate authority Must share authority with functional managers May be several managers responsible for various parts of
project Client may not have a single point of contact at project This can make response to the client slow or non-existent
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
4. Slow response Functional managers manage their part to
benefit their functional unit Interests outside their area may not be fully
considered5. Motivation is weak
Project is not the worker’s “home” Project manager most likely does not do their
performance evaluations May not receive additional pay for difficulties
of working on projectMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Figure 5-2Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Project manager has full authority Will typically report to senior management
(project sponsor) This gives project manager access to managerial
advice This centralizes authority and makes for rapid
decision making / response to client2. Everyone reports to the project manager
This gives the project manager the ability to make quick decisions
Makes it easier for project manager to motivate and reward members
May be tempered by relationship to functional unit3. Shorter communications lines
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
4. Can maintain project management skills Project managers can move from project to project It pays to hire, train, and promote skilled project
managers
5. Project team has its own identity Project members work for the “project” not the
functional unit This can significantly improve performance
6. Quick decisions Authority is centralized
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
7. Unity of command7. Each worker reports to one, and-only-one,
manager8. Project has a simple structure
8. Structurally simple and flexible Easy to implement
9. Holistic approach Everyone on project is concerned about
project, not their functional unitMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Duplicate staffing Each project has a full staff This leads to overstaffing
2. Stockpiling Project managers tend to stockpile resources so they are
available when needed They also tend to keep those resources longer than needed
just-in-case3. Experts falling behind in other areas
Experts on a project will focus on the areas essential to the project
This can lead to them falling behind in other areas It can also be difficult to feed their developing expertise
back into the organizationMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
4. Organizational inconsistency Corner-cutting “They don’t understand our problems”
5. Life of its own Projectitis Us versus them
6. Life after the project ends Lots of uncertainty Will there be layoffs Rusty skills
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Only way to do large, one-time projects
Disadvantages make it impractical for continually doing projects, e.g. construction
Matrix developed in aerospace to deal with this
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Figure 5-3Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Functional part provides home for workers after project
Functional part helps maintain expertise In a strong matrix, people from functional
areas are assigned to project In a weak matrix, capacity from functional
areas are assigned to project
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. The project is the focus That remains the project manager’s responsibility
2. The project has access to entire organization for labor and technology
Projects draw from functional organizations as required This reduces duplication of resources
3. Less anxiety about the end of the project Project members return to their functional
organizations4. Response to client is rapid
That remains the project manager’s responsibility With much remaining within parent organization,
response to parent is also rapidMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
5. Consistent policies Parent organization will oversee project Project will have closer access to parent administration
6. Easier to balance organizational resources Less competition for resources Competition can be controlled by parent organization
and functional managers7. Flexibility
Many different possible structures between strong and weak
Different structures can be used for different projects Different structures can be used for different functional
areasMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
1. Functional units make many decisions, including technology ones
Project manager has less control than in a pure project
Project manager’s control is balanced against that of the functional manager
If they disagree, it can be hard to resolve
Negotiation is the key to project success
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
2. Projects compete for resources This is especially true when there are
several large projects Someone above project managers
must set and enforce priorities Multiple schedules will add stress to
functional managers
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
3. Strong matrices mirror many disadvantages of project structure People are assigned to, and identify with,
“their” project much as in the project structure
4. Workers do not have a single manager This splits loyalty Makes performance appraisal difficult Information flow is difficult
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Project team crosses time, space, organizational, or cultural boundaries
Facilitated by the Internet and modern communications media
Often organized as a matrix
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Use it for challenging and interesting projects
Solicit volunteers to work on the team rather than forcing people to do so
Make sure a few people on the team already know each other
Create a resource to learn about one another and to do online collaboration and brainstorming
Encourage frequent communications Divide work into geographic modules if
possibleMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Figure 5-4Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Firms typically do not set out to “pick” an organizational form
Rather, the structure evolves over time
The structure is not static
Rather, it changes as the organization, its goals, and its environment changes
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
In-depth application of a technology
Large capital investment, especially when that investment is concentrated in one functional area
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Handling a large number of similar projects
Handling a one-time project that
requires much control but is not focused on one functional area
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Projects that require inputs from several functional areas
Projects that use technology from several functional areas
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Different project need different staffs A typical engineering project core team:
Systems Architect Development Engineer Test Engineer Field Manager Contract Administrator Project Controller Support Services Manager Additional resources would be provided from the
functional organizations as needed to accomplish all the tasks.
All team members report to the PMMeredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
Some of the problems that prevent a team from performing effectively: Lack of consultation and input Internal conflict Member frustration Wasting time Poor decision making Team members more concerned with finishing
job than doing good job
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
The PM must be prepared to deal with the many human issues that will occur even on the most technically oriented project.
Made more challenging by the fact that the PM often does not control pay and promotion issues for his or her team members.
PM should use formal and informal team building activities to foster the morale and participation of the team.
PM should consult his / her team and use the input
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.
“Teamwork is a lot of people doing what I say” - anon
Shaw’s Strategy page 225 Work in small groups to answer the
question
Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.