Page 253 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes (b) two or more parties try to avoid differences.
(c) two or more parties try to create differences.
7. In the lose-win strategy:
(a) one party is satisfied and the other dissatisfied with a negotiated settlement.

(b) one party is prepared to give concessions, and the result may go one way or the
other.
(c) both parties are dissatisfied with the negotiated result.

8. Coercive power in negotiation is based on:
(a) the control over resources desired by others.
(b) punishment, authority and use of force, whereby others are compelled to behave a
particular way.
(c) a capacity to seek information and consider the ideas of others.
9. The four elements of the principled negotiation method are:
(a) purpose, intervention, opinions and criteria.

(b) people, interactions, options and criteria.
(c) people, interests, options and criteria.

14.4 Negotiating Conflicts

The right to differ and have one’s own viewpoint is an integral part of a democracy. We become
convinced that our point of view is the right one and that the other party could not agree to it
because of the lack of understanding or inability to using the same facts and arguments to arrive
at the conclusion. As a result both the parties waste hours and days together fruitlessly arguing
repeating the same ground instead of negotiating to achieve a workable compromise.
One of the major causes of conflict is differing perceptions. Beside there are other causes too: e.g.
one of the parties might want to improve on other’s offer (even after a deal has been agreed) thus
introducing conflict deliberately. Sometimes there is a genuine gap between the parties beyond
their control e.g. suppose a flight is delayed due to fog, hence a major contract is lost, consequently
substantial reduction of work available in the company, redundancies are inevitable.

People negotiate because of self interest, be it corporate or personal. It is not always possible to
resolve conflict by negotiation. Two parties in conflict can, of course, decide to ignore the issue
and agree to disagree. Difference of opinion on politics, religion and sport may probably fall in
this category. Agreeing to disagree will not make the problem go away where these differences
affect or are part of a work or commercial relationship.
In the negotiating context, the conflict can be of two kinds:
1. Conflict of interest, and

2. Conflict of rights.
The conflict of interest occurs where either the terms of business have not been settled or being
renegotiated, having settled earlier. Labour negotiations on wages, hours, numbers and working
conditions, commercial negations on price, quantity, quality and delivery are the examples of
the conflicts of interest.

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