Applying Negotiation Theory & Practice to Project Management Cases

This report provides an analysis of negotiation theory and practice within the context of project management, drawing upon case studies from the telecommunications and airline industries. It explores the scope of negotiation, key factors to consider, and the development of strategic analyses. The report also includes a negotiation script, discusses alternative options, and compares negotiation strategies from airline cases. Ultimately, the study aims to provide insights into how negotiation theory can be effectively applied in project settings to foster positive outcomes and strong working relationships. Desklib offers a platform for students to access this and other valuable study resources.

Running head: NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
Negotiation Theory & Practice for Project Management
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1NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
Executive Summary
Negotiation is necessary and ongoing procedure, which is the part of everyday lives. It is
considered a skill that study, practice and enhance upon. It is important to analyze the concepts
and practices of negotiation in the case study organization. The report demonstrates the scope
of negotiation with respect to Telco. In addition, the factors of negotiation are taken into account.
In addition, a strategic worksheet is helpful in this perspective. In addition, the negotiation script
for the organizations in making negotiations is described in this report. The options are
considered other than explained in the current scenario are discussed in the current study.
Apart from these, a strategic analysis of end game and the negotiations from Airline cases are
compared in the study.

2NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
Table of Contents
Introduction...................................................................................................................... 3
The scope of negotiation..................................................................................................3
The factors required into account.....................................................................................4
The negotiation script for each negotiation party..............................................................4
Options might be considered............................................................................................5
Development of a strategic analysis.................................................................................6
Compare the negotiation from Airline...............................................................................7
Conclusion....................................................................................................................... 8
Bibliography.....................................................................................................................9
Appendices.................................................................................................................... 11

3NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
Introduction
Negotiation is considered as a specialized as well as formal version for managing
conflicts most frequently employed when vital issues must be agreed upon. It is an essential
when a party needs agreement of the part to achieve the aim. On the other hand, the aim of
negotiation is developing a shared environment leading to have long-term trust. Negotiation
theory includes decision analysis, game theory and behavioural decision-making. Clarification of
the theories makes differences between structural analysis, process analysis and integrative
analysis. On the other hand, individuals need to be separated, makes interactive decisions, and
consider the process of making collaborative decisions. In the present study, the case studies
are related European telecommunication company and the airline negotiations. The study
highlights the decision activities taken by the organizations. In addition, comparisons of the
activities between the selected case studies and critically analysis have been made that are
helpful to understand and apply negotiation theory in projects.
The scope of negotiation
Negotiation theories share notion of negotiations as a procedure. However, they differ in
explanation of the procedure. Structural, strategic as well as procedural analysis develop
rational actors, able prioritizing clear goals and able to receive uncertainty into account. In the
present context, the grand vision of the airline is recovering from 9/11, the Sars can outbreak
and general uncertainty that is surrounding the Middle East of the world (Clegg et al. 2015).
An industry responded to the challenge was looking for scope in order to rationalize as well as
develop by alliances. The other case study in negotiation is related to a telecommunication
company. Thus, a strong country, it is important to have an explanatory approach to the
process.
Gelfand and McCusker (2017) stated that strategic analysis generally starts with
assumptions that the parties include a veto. Hence, negotiation of the parties cooperate the
process. On the other hand, strategic analysis can assess the possible results of making
negotiations through assigning the values to every possible result. Hence, the parties are
coordinating incentives in order to cooperate the process. The project teams are developed
based on the negotiation process. It is important to have positive outcome and relationships that
include the negotiators developed proper working relationships between the projects. However,
it is essential for the organizations to make confidential agreement. In addition, it continues to

4NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
make the negotiations as well as signed a confidential agreement. It is also important for the
organizations to make the agreement and commercially sensitive information technical as well
as financial information (Walker 2015). The project teams returned to the organizations as well
as reported favorable results to CEOs. The team sets working regarding the practicalities of the
system. In the airline industry, it is important to uphold by complicated as well as rigorous
systems.
In the present case, the project teams developed negotiation relationship as they spent
time informally on social gatherings as well as in meetings that are more formal. The
possibilities offered through making cooperation and in broad terms. There are two results in the
approaches. The negotiators developed effective working relationships among the members of
the teams. On the other hand, they obtained clear comprehension of potential nature along with
advantages of the proposed joint project.
The factors required into account
The European project team has developed a project where it is required to compliance
with safety standards in documentary systems. It is also important to benefit the negotiation
process and develop the process that could be helpful for the system. In addition, recognizing
reality of negotiation is important to recognize the process of negotiation. The negotiators agree
on rounding the meetings to close the process. The project teams are returned to respective
organizations as well as reflected upon experience (Fischer 2016). In addition, it is important to
make the issue remained high and negotiating the teams that could meet the relationship. The
negotiators help to develop the process reliable. Hence, the negotiators agreed that it is
important to bring meetings to close the process before getting any worse. In addition, there
was any agreement on the particular issues. The high level of making cooperation was not
materialized. Hence, the project are important for the organizations that could be evaluated.
The negotiation script for each negotiation party
The main sector that is seen in the meeting is both the parties who were in the aspect of
the negotiation were convinced with their individual as the offer they were negotiating into. The
main sector that is taken into consideration in any type of process of negotiation is that both the
parties should have faith in each other. Nelson and Staggers (2016) mentioned that the
sector of faith is the most important aspect because there are many critical documents which
should be taken into consideration. This majorly result that if they do not have a sense of faith it

5NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
would be directly affecting the critical data of the organisation. Both the parties wanted to alter
their internal working which directly result in the aspect of increasing their business area. It can
be stated here most importantly there can be different issue which can be faced so in most of
the situation it should be taken into consideration that conflict situation does not take place.
Conflict can overall decrease the efficiency of the system. It can be stated that negotiation
should be one of the most important aspect in the sector of the working between two
organisation. The sector of faith that the sectors which are taken into consideration into the
working of the negotiation (Binder 2016). Offence sector is another sector, which is, should be
taken into consideration that would be hampering the sector of negotiation. Justification in the
sector of implementation would be directly affecting. As seen in the case study the agenda of
the negotiation is one of the most sectors, which is critical so that there are no wastage of the
time in the sector of fixing of the agenda. Mostly the organisation set a plan before the actual
negotiation is conducted.
Succession of meetings and the negotiators developed important progress on the
proposal. The discussions are engaged periods at the time of working to find the ways in
making differences. It is important to develop problem-solving skill that helps to solve the ways
that are helpful to achieve the solutions. The parties are comfortable with negotiation teams and
respective organizations with agreement.
Options might be considered
The content of the negotiation is majorly seen in the sector of building a negotiation
which majorly implement safe and strategic working of the organisation. Building a team would
be directly helping the organisation to enhance their internal as well external working with
emphasis on the sector of working. People should be very much indulged in the aspect of the
working of the negotiation and in most of the cases it should be seen that negotiation should be
focused on improving the sector of working into the organisation. People should be more
towards the friendly nature in the working of the organisation. People have a clear idea about
the agenda of the negotiation and there should not be much conflict in the internal working of
the organisation (Bolman and Deal 2017). Should there be any type of problem in the aspect
it should be seen working. Organisation should always allow the employee to respond directly
into the working of organisation. Enhancing the working should be one of the most important
aspect in the sector of working within the organisation.

6NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
In order to get a clear idea of the working it should be taken into consideration that the
members should be active and should input their own idea into the negotiation and it should not
be a alone task (Roberts and Siemiatycki 2015). In most of the time, the project manager is
one of the most important member in the negotiation as there are many area which need
expertise area. Project manager should take into consideration that they directly help in the
sector of input about the idea onto how the internal as well as external working of the
organisation could be changed and how the organisation can increase their internal strength
and increase their own working area. It should be one of the most important area is the
teamwork in these type of activity.
Development of a strategic analysis
In case of the problem the negotiators were set to form a project team and the team from
the Europe flew to Asia for further process of the negotiations. The two project team’s
collaboratively and slowly made the negotiation plans. The team member used the technique of
meeting in the social and the informal gathering for making the bond between them stronger.
The way toward adding components to a transaction which encourage one or the two sides to
acquire, a fundamental assignment in making arrangements more integrative. These are
generally components, which are esteemed diversely by each gathering, and frequently they
have the trademark that one side will pick up a bit, surrender nothing or endure just a little
misfortune as an end-result of extraordinary pick up to the next. These components can as a
rule be added to any arrangement regardless of how distributive the transaction at first gives off
an impression of being (Gelfand and McCusker 2017). As illustrations: the vender of a house
may not think about taking the drapes or the grass furniture. The purchaser may extraordinarily
esteem these courtesies since they will spare a considerable measure of time in moving in.
Consequently, the vender may would not fret if the purchaser sends heaps of books that will be
put away in the carport months before exchange happens. Both purchaser and dealer may
appreciate acquainting the purchaser with the neighbours. Both may extraordinarily esteem
aware and decent treatment from the other, which for the most part costs nothing.
One of the major advantages that the team gained with the meeting in the informal way
is that the team members had more and more interpersonal relationship (Brown et al. 2015). It
made them understands each other in a better way. Other than this, the team members
understood the importance of the joint venture of the project and the process that it can be
beneficial for them in the future. In addition, the team understood the issues that may came up

7NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
with the project in the recent future. Because of this, both the team agreed to sign the
memorandum of the understanding that had to sign by the CEOs of the organisations as an
agreement. The Telco being one of the most reputed industry in the world had to make some of
the most important decisions to make the deal the best one.
The terms of the negotiation was made in such a way that the European head would
work and develop the proposal of the systems while the Asian part would take care of the
proposals of the operating systems (McIver et al. 2016). The decisions were made in such a
way that the expectation of both the teams became high in after meetings. In the first meeting
that the teams had earlier, both teams presented the documents of the plans that the teams. As
both the teams wanted to get their own proposal to be followed, tension rose in between them.
This created chaos among the team members of the teams. Both the teams tried to defend the
policies that were written in the document and make it prove right but the main problems arise
when maximum of the points in the proposals came out to be faulty of both the teams. Summing
up the entire process of the negotiation, the result came out to be both the teams did not wanted
to work with the other team and the European team had to fly back disappointed with the
negotiations being failed.
The air transportation system is considered as an important infrastructure enabling
economic development. It provides important social benefits. Technology innovation may play
an important role in the process. A game theory analysis can demonstrate the process of
incentives in order to innovate, altered through subsidies, regulations forcing by technology, and
increased effective fuel cost. Threat of new entrants as well as long-term competitive strategies
may have outcome in incumbent manufacturers. It increases the process by optimal strategies
delaying entry of single aisle aircraft.
Companies in the joint venture have to be accounted with certain agreement that might
help in imagining a proper business deal in the market. The use of this theory can be regarded
as the end game for the market scenario that helps in providing technical and cost
arrangements to the company (Koskela-Huotari et al. 2016). The use of the theory is
maintaining financial arrangements in the market. The use of financial scenarios in the market
has been creating various opportunities in the market. The use of joint venture in order to
provide return investment has been agreed on their market share. The negotiating term is
companies in the European countries have created specific opportunities in the market. The use
of internal discussion in the organization has been helping in maintaining the joint venture in the

8NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
market. The market analysis of companies have been maintaining the financial aspects of the
companies in the market.
Compare the negotiation from Airline
Pawlowski and Bick (2015) commented that a strong focus has been placed on
developing trust as well as professionalism. In addition, the relationship and the issues are
making trouble for the management. It quickly brought up a broad level that is simmering the
issues for making larger concerns. The team of negotiation would meet a large room that helps
to increase the process. With wide concurrence on the manner by which the joint wander would
work, each organization at that point assessed the circumstance it wound up. The transactions
had come to the 'end amusement'. The specialized and cost courses of action had been worked
out and every one of that was left to do was finish the monetary game plans (Page et al.
2015). Expansive money related situations had been under exchange all through the
transaction however the time had come to make these particular; specifically, the two
organizations needed to focus on their separate speculations into the joint wander and concede
to the fine detail of the benefit share plans. As laid out above despite the fact that the arranging
groups from the two organizations had accomplished understanding this was just conceivable at
all since one gathering (for this situation the delegates of the Asian aircraft) had made a critical
concession. While the European organization respected the substance of the assention as
tasteful as was in a situation to go into the transactions on the financials, the Asian organization
was not prepared. Assist inner talks were important to address the worries yet being
communicated inside the carrier over having consented to work with the European framework. It
was against this foundation that the carrier finished up it was ready to proceed with discourses
on the money related parts of the game plan. It was essential to choose another administration
group rapidly (Butler et al. 2015). This included making another full-time part in the Asian
nation to show to the two gatherings that there would be close checking of the assertion’s
execution and that the understanding was not just an open door for 'facilitate transaction'.
Asiatel's position was observed through month-to-month audit gatherings and quarterly
executive gatherings. Its own particular arranging group additionally connected such
carefulness to Eurocom’s execution of its own duties. The European agents to ensure that
nothing was done against the soul of the understandings effectively followed ensures of
administrations, staff and aptitudes.

9NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
Conclusion
The negotiation theory can be explained as analysis of behaviour decision making for
any deal. It considers that how a group of people reasonably make a bright decision. The
different types of negotiation practices that are very common in the business world are the
competing or the aggressive process of the negotiation, the collaborating or the cooperating
process of the negotiation and the avoiding style of the negotiation. Most of the negotiators use
more than one technique of the negotiations. It is also agreed that the organizations need to be
delegate in the process of negotiating the teams in order to explore potential to cooperate. It
would be helpful to take the form of European purchasing part. The critical issues would be
helpful to engage the subsequent operation of the organization.

10NEGOTIATION THEORY & PRACTICE FOR PROJECT MANAGEMENT
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