PPMP20011 Unit Portfolio for Week 2: Theory of Negotiation and Negotiation in Practice

(MOHAMMED ABDUL BAKHI) / (12067067) - PPMP20011 Unit Portfolio for Week 2
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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.
It has been identified that the process of negotiation that takes place in the
project management such as in the case of English Channel can be descriptive,
normative or prescriptive in nature. Various researchers, practitioners and
theorists have conducted an evaluated research in this filed such that the
negotiation can be analysed and in order to do the same various approaches
that are being used can be defined. In the process of project negotiation it
should be noted that there are certain phases involved i.e.:
1. Setting the agenda
2. Analysis of policies
3. Formulation of policies
4. Implementation of processes
5. Monitoring and evaluation
The negotiation strategy that was used in the development of English Channel
was the strategic negotiation in which the aim of main parties was to arrive at a
goal and achieve the objectives. In order to do so, various theories such as
decision theory and rational choice theory have been chosen.
On the other hand, the process of conflict management is a situation when both
the parties want to arrive at the same goal but with a different situation. In
order to resolve the conflicts that may arise in the process the method of
effective bargaining has been chosen by the managers (Pena-Mora & Tamaki,
2001).
It has been identified that the stakeholders in a project play an important role
and on this concept, the success of the project is entirely dependent. According
to Kerzner (201), the stakeholders of the business can be defined as the entities
that are investing their interests and resources in the development of the
project such that they can get lucrative returns and enhance the development of
the project. In the development programme of English Channel, it has been
identified that the major stakeholders of the project are investors, employees
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(MOHAMMED ABDUL BAKHI) / (12067067) - PPMP20011 Unit Portfolio for Week 2
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and the customers that are getting benefits from the development of the project
(Kerzner, 2013).
In order to ensure the effective lifecycle of the project there were techniques
and processes used which have been explained below as follows:
 Effective plant engineering to analyse cost data and statistics.
 Project management plan to determine shutdown and refits of plant
and machinery.
 Preparations of the document which such as contract management
which can effectively help in the process of cost determination
regarding external engineering, maintenance of contractors and
construction maintenance.
4. Explain and apply
methods of
identifying and
reconciling
inconsistent and
conflicting objectives
and drivers that
develop, maintain,
manage relationships
and communication
with key
stakeholders.
It should be noted that when a project like the English Channel is sanctioned by
the government o the company, there are various stakeholders that might be
interested to invest in the same such that they along with their resources may
enhance the development of the project and get attractive returns from the
same. In such development of the project and with a large scope of stakeholder
management, there are various situations that might arise and may hamper the
development. One of such situations is the difference between the opinions and
ideology of the stakeholders which may differ and may lead to the conflicting
situation. In order to address these situations and issues and an effective and
efficient manner, it is essential for the project manager to ensure that the
stakeholders are satisfied. This makes it important to keep a track on the
development of the project and communicating the same to the stakeholders. In
case there is any conflict among the stakeholder's various techniques of
negotiation such adversarial negotiation, collaborative negotiation and multi-
part negotiation can be done by the stakeholders (Alfredson & Cungu, 2008).
5. Explain the
consequences of
project delays,
A large-scale project like the development of the English channel can be
disrupted in many ways and this may decrease the appeal of the project. Apart
from this, the major impact of this is seen on the contract of the project and
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(MOHAMMED ABDUL BAKHI) / (12067067) - PPMP20011 Unit Portfolio for Week 2
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disruptions, and
changes to planned
activities and the
methods for claims
variations, liquidated
damages, contract
entitlements, and
arbitration.
these issues may even lead to modification in the contract which may be a
negative factor for both the parties i.e. the project and the stakeholders that are
involved in the same. During the lifecycle of project, various contingent issues
and conflicts may arise which makes it essential for the project manager to
resolve them. This not only impacts the development of the project it also
causes a delay in the completion of same. In order to resolve these issues, the
major role is played by the technique of conflict, management such as
arbitration, claims variation and liquidated damages (Wikipedia, 2017).
In the process of claims variation both the parties have to settle to a specific
amount in case there are any disputes or damages faced in the development of
the project.
In the process of arbitration, both the parties that are involved in the dispute
hire a third party in order to resolve the conflict. This is required to be stated in
the contract.
The last technique of solving the dispute is liquidated damages and in the
development of English channel it has been identified that this is a technique of
resolving the dispute that is also required to be included in the contract in which
the major goals is to determine the amount of compensation that is required to
be paid and under what conditions in case any losses due to delay of completion
is suffered by the third party (Ury & Fisher, 2012).
6. Evaluate project
management tools
that help avoid or
provide conflict
resolution via
negotiated solutions.
It ah already been idn5ified that in the development of a big project like the
English Channel there are various conflicts that have arisen which is required to
be solved at the earliest. In order to do the same, there are various tools of
management that can be considered by the project development team that can
effectively help in solving and readdressing the issues that might be faced. These
have been stated below as follows:
 In the case when the tension among the stakeholders may increase and
may affect the development in a bad manner, it is suggested to
withdraw or avoid the conflict if it gives results. In such case, the
involvement of the third party to resolve the conflicts is seen.
 It has also been identified that another method that has effectively
been used in the development of English Channel is the use of
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(MOHAMMED ABDUL BAKHI) / (12067067) - PPMP20011 Unit Portfolio for Week 2
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authority and power. In order to resolve the conflicts for the
betterment of the project, it has been identified that the major
stakeholders have chosen their power and authority to address the
conflicts that might arise between the lower level of the managers.
 Apart from that various techniques of conflict management and
arbitration have also been used (PMI, 2013).
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(MOHAMMED ABDUL BAKHI) / (12067067) - PPMP20011 Unit Portfolio for Week 2
References
 Alfredson T., & Cungu A. 2008. Negotiation Theory and Practice http://www.fao.org/docs/up/easypol/550/4-
5_negotiation_background_paper_179en.pdf;
 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.
 Wikipedia 2017 Channel Tunnel https://en.wikipedia.org/wiki/Channel_Tunnel visited __/__/____.
 Ury W., & Fisher R. 2012. Getting to YES: Negotiating an agreement without giving in. Penguin Random House Australia
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