Project Management Methodology And Negotiation Theory

Description of topics including reading samples

Learning outcomes of the course

Learnings from your experience, this and prior course reading, assignments

Supporting documentation including your prior learning

Week 2 Topic: Theory of Negotiation and Negotiation in Practice.

Alfredson T., &Cungu A. 2008. Negotiation Theory and Practice;

Kerzner (2013) Section 25.5 Managing Troubled Projects;

William Ury and Robert Fisher (2012) GETTING TO YES: Negotiating an agreement without giving in;

YouTube: Popular Videos – Negotiation;

3. Differentiate methods of project negotiation, conflict management, and stakeholder engagement across projects consisting of differing technology standards and asset lifecycles.

The objective of this week’s topic is to make sure you have an appreciation of the fundamentals of the philosophical basis and methods of negotiation.  

Try to ask yourself the questions that were in the slides in the 4^thweek’s lecture:-

1. Does the ‘Theory’ outlined in the Alfredson T., &Cungu A., 2008 paper match the concept of negotiation on this course?

Answer: Yes it matches the concept of negotiation. The project negotiation technique can be structural, integrative, strategic, behavioural and processual. Conflict management includes resolving conflict by different delivery system and conflict avoidance. Stakeholder engagement needs full participation and dedication from their sides.

2. In the more serious YouTube videos do you find that they support or contradict the concept of “commercial negotiation” as outlined in the first two weeks of the course?

Answer: The YouTube video supports the concept of negotiation as it says that every negotiation is different. The video explained that communication is required for the purpose of successful communication and people must follow certain rules like identifying their interest.

3. Is the “art of negotiation” applicable to the Chunnel Project?

Answer: Yes this art of negotiation is applicable in channel project because building a channel needs negotiation between the governments of UK and France.

In Alfredson T., &Cungu A. 2008. Negotiation Theory and Practice paper they raise a number of points, in reflection:

4. Is negotiation really part of policy making?  In what way is it so?

Answer: Yes negotiation is a part of policy making process. It is a core component in the process of making national policy. It helps to determine what policies are needed to be addressed.  

5. Is negotiating something that is related to a tangible outcome, such as the Chunnel, the same as negotiating something that is intangible, such as the end of a war?

Answer: Yes both are related. The reason is that both the negotiations give an outcome. This outcome must satisfy the needs of the clients. If there is no proper negotiation then there will be problems related to the project like project delay and increase of cost.

Kerzner (2013) Section 25.5 Managing Troubled Projects also raises interesting points, particularly around the bullets that Kerzner has in his section.  So how many of these can be used as trigger points or times that negotiation should employed to avoid a troubled project:

6. What bullets in this section apply to negotiation?

Answer: Sometimes there are issues in figuring out the warning signs and there can be misunderstanding related to the management of a troubled project. Here negotiation plays a major role. If there would have been proper negotiations regarding such issues in the earlier stages then there would not have been any misunderstanding or project failure.

7. Are there any similarities between Alfredson T., &Cungu A. 2008 paper and this section?

Answer: Yes there is similarity because the paper discusses about the importance or significance of negotiation while developing policy. And the section of the book talks about troubled projects and says that if proper negotiation would have taken place then there would be no issues.

8. Could Kerzner’s Recovery Life-Cycle Phases be applied in the Theory outlined in Alfredson&Cungu?

Answer: The phases include understanding, then auditing, identifying the tradeoffs, negotiate after that restart and execute the project. These phases can be applied while identifying interests, people, alternatives and carrying out the task and communicating.

Your tutor might have shown you a World Bank Institute collaborative video

…. https://www.youtube.com/watch?v=1FeM6kp9Q80. Do you think regarding stakeholder that there:

9. Are different stakeholders in negotiation?

Answer: There are supportive stakeholders who always support the firm. Other stakeholders are marginal stakeholders, non supportive stakeholders and mixed blessing stakeholders.

10. How can we manage the stakeholders?

Answer: The supportive stakeholders need to be involved in the decision making process of the company. In case of the marginal stakeholders the firm needs to identify the areas that are related to them and involve. The interest of the non supportive stakeholders need to be reduced so that they do not get involved in the decision making process of the firm. The mixed blessing stakeholders need to be managed by collaboration.

Alfredson T., and Cungu A., 2008. Negotiation Theory and Practice https://www.fao.org/docs/up/easypol/550/4-5_negotiation_background_paper_179en.pdf;

En.wikipedia.org. ,2017. Channel Tunnel. [online] Available at: https://en.wikipedia.org/wiki/Channel_Tunnel [Accessed 14 Sep. 2017].

Kerzner H., 2013. Project Management: A Systems Approach to Planning, Scheduling, and Control, 11th Edition.  Hoboken, USA: John Wiley & Sons.

Peña-Mora F. and Tamaki T., 2001. “Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”. Journal of Management in Engineering. Vol:April 2001 pp.105-121

PMI., 2013a. A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5th Edition. USA: Project Management Institute.

Ury W. and Fisher R., 2012. Getting to YES: Negotiating an agreement without giving in. Penguin Random House Australia

Walker D.H.T. and Lloyd-Walker B.M., 2015. Theory and Practice Collaborative Project Procurement Arrangements.  PMI Published Research.

YouTube. 2017. Negotiation. [online] Available at: https://www.youtube.com/watch?v=1FeM6kp9Q80 [Accessed 14 Sep. 2017].

Are any of the activities above relevant to your reflections for the learning outcomes on the right?

4. Explain and apply methods of identifying and reconciling inconsistent and conflicting objectives and drivers that develop, maintain, mange relationships and communication with key stakeholders.

Making an overall reflection of PPMP20011:

11. Does Commercial Negotiation require soft skills, and interpersonal skills or is it about contracts and procedures without any emotion being involved?

Answer: Soft skills are highly important in this process. The people involved in negotiation must have convincing power to come to common agreed terms and conditions.

12. What are the drivers that motivate the parties involved in a negotiation process?

Answer: This can be identified by focusing on the interests of the people and their roles. Proper understanding and resolving techniques will manage the relationship of the key stakeholders. The benefits that they will get from the negotiation act a motivational force.

PMI. ,2013a.A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5^th Edition. USA: Project Management Institute.

Are any of the activities above relevant to your reflections for the learning outcomes on the right?

5. Explain the consequences of project delays, disruptions, and changes to planned activities and the methods for claims variations, liquidated damages, contract entitlements, and arbitration.

If there is any change in the planned activity then it can lead to increase in the cost and expense. Project delay can affect its quality as well.

YouTube. 2017. Negotiation. [online] Available at: https://www.youtube.com/watch?v=1FeM6kp9Q80 [Accessed 14 Sep. 2017].

Kerzner H., 2013.Project Management: A Systems Approach to Planning, Scheduling, and Control, 11^th Edition.  Hoboken, USA: John Wiley & Sons.

Are any of the activities above relevant to your reflections for the learning outcomes on the right?

6. Evaluate project management tools that help avoid or provide conflict resolution via negotiated solutions.

The initial step should be to get a clear understanding of the interest. Then the people in the negotiation must communicate in an effective manner. Identification of alternatives plays a major role. The commitments that are made by the people needs to be maintained and followed. There must be proper communication. All these leads to successful negotiation.

YouTube. 2017. Negotiation. [online] Available at: https://www.youtube.com/watch?v=1FeM6kp9Q80 [Accessed 14 Sep. 2017].

Kerzner H., 2013.Project Management: A Systems Approach to Planning, Scheduling, and Control, 11^th Edition.  Hoboken, USA: John Wiley & Sons.