Queensland Health Payroll Program: Negotiation & Conflict Report

This report analyzes project negotiation and conflict within the context of the Queensland Health Payroll Program, focusing on four key projects: forward strategy for payroll system, governance and decision-making, people and change, and funding. For each project, the report identifies the negotiating positions and potential conflicts of the owner, designers, and contractors. It recommends strategic, integrative, and structural negotiation approaches, along with distributive and integrative negotiation methods to manage resources, decision-making, and change implementation effectively. The report concludes by suggesting preferred procurement forms, such as design and construct, manage contracting, and partnering philosophies, as outcomes of the negotiation processes. Desklib provides access to this document along with a wealth of study resources.

PROJECTS NEGOTIATION AND CONFLICT REPORT
NAME OF PROJECT
PPMP20011 Projects Negotiation
and Conflict Report
1 PROGRAM INFORMATION
Program Name: Queensland Health Payroll Program
Date: Date of the current Projects Negotiation and Conflict Report
Project Ownership: Area responsible for the project
Prepared by: Name and project position
Distribution List: List of those receiving the report
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PROJECTS NEGOTIATION AND CONFLICT REPORT
NAME OF PROJECT
2 THE PROJECTS
2.1 Project 1: Forward strategy for payroll system
The project characteristics of project 1 are definable purpose, alignment with the
strategy of the organization, temporary activities and unique.
The justifications for these characteristics are as follows.
The project has a particular purpose of developing a new fully operating
payroll system.
The new payroll system will support the organizational strategy that
includes timely and errorless wage payments to the employees.
The activities in the project will be temporary and will be wrapped up
once the project goal is reached.
The project is unique as it has a unique goal of establishing a forward
strategy for payroll system.
2.2 Project 2: Governance and decision-making
The project characteristics of project 2 are:
 A continuous process of monitoring and controlling in order to enhance
the decision making process
 A unique project
The justifications for these characteristics are:
 The project does not end at a particular point of time and is executed at
a continuous timeline
 This project was not executed before and is now being implemented to
increase the efficiency of decision making process regarding the payroll
system
2.3 Project 3: People and change
The project characteristics of project 3 are:
 The activities that are included in the project will have temporary effect
on the organization for reaching a certain goal.
 This project is unique.
The justifications for these characteristics are:
 The project is meant to be temporary in nature only.
 This project was not executed before in the organization’s history.
2.4 Project 4: Funding
The project characteristics of project 4 are:
 This project is a continuous process as funding will be provided at
various stages as per requirement.
 This project has no particular end goal but will help to achieve the end
goals of the other projects.
The justifications for these characteristics are:
 Funding is a continuous process.
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PROJECTS NEGOTIATION AND CONFLICT REPORT
NAME OF PROJECT
 Funding is an essential requirement for any project in an organization.
3 THE PARTICIPANTS
3.1 Project 1: Forward strategy for payroll system
For Project 1 the negotiating position and conflicts in relationships of the
participants of this project are described below.
3.1.1 Owner
The negotiating position of the owner will be to ensure the organization gains
maximum cost benefit while also providing certain benefits with the client /
vendor.
The potential conflicts in relationships that the owner may have include uneven
terms of contract (not favouring a certain group of stakeholders or the client /
vendor), lack of future sight while signing the contract and contract details not
agreed by the board members.
3.1.2 Designers
The negotiating position of the designers will be to gain maximum amount of
benefits against the work provided for designing the payroll system. The contract
should not only cover the basic effort value payments for the design but also
certain additional payments, bonuses and benefits to the designers.
The potential conflicts in relationships that the designers may have are lack of
sufficient payments and fees for the design process, delayed payments by the
owner, fixing the terms of contract without discussing with the designers, sudden
termination of contract or imposing penalty without any specific reason and
others.
3.1.3 Contractors
The negotiating position of the contractors will be to ensure the terms of contract
favour both of the sides involved in the project. For the owner’s side, the
contractors will have to ensure the owner gains sufficient amount of cost benefit
and the expenses do not exceed the estimated overall budget for the project. On
the other hand, the designers should also have their demands fulfilled unless
their demands are unreasonable and unfeasible for the project.
The potential conflicts in relationships that the contractors may have are lack of
agreement on the terms of contract between the owner and the designers, lack
of transparency in the contract and delay in forwarding and signing contract.
3.2 Project 2: Governance and decision-making
For Project 2 the negotiating position and conflicts in relationships of the
participants of this project are described below.
3.2.1 Owner
The negotiating position of the owner will be to ensure the governance process is
done in the right manner and the decision making process is done at the right
time with the best of the effects.
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PROJECTS NEGOTIATION AND CONFLICT REPORT
NAME OF PROJECT
The potential conflicts in relationships that the owner may have are too much
governance leading to the lack of freedom and privacy of the designers and
sudden changes in decisions imposed without any major issue.
3.2.2 Designers
The negotiating position of the designers will be to ensure project progress is
regularly reported to the owner as a requirement of fulfilling the terms of the
contract.
The potential conflicts in relationships that the designers may have are
misunderstanding regarding agreement of decision changes, unwanted
governance and others.
3.2.3 Contractors
The negotiating position of the contractors will be to ensure there is a good
contractual relationship between the owner and the designer and the governance
process is agreed before the contract is signed by both the parties.
The potential conflicts in relationships that the contractors may have are lack of
initial discussions regarding the governance process, no communication
between the owner and the designers during decision making and others.
3.3 Project 3: People and change
For Project 3 the negotiating position and conflicts in relationships of the
participants of this project are described below.
3.3.1 Owner
The negotiating position of the owner will be to ensure the implementation and
alignment of the changes with the people involved including stakeholders,
designers and other involved personnel.
The potential conflicts in relationships that the owner may have are lack of prior
information regarding change implementation, negative effects of the change on
the people and others.
3.3.2 Designers
The negotiating position of the designers will be to be able to implement the
change if it benefits their work as well as the project on a whole.
The potential conflicts in relationships that the designers may have are negative
impacts of the change on their work, lack of sufficient insight post implementation
of the change and others.
3.3.3 Contractors
The negotiating position of the contractors will be to ensure the changes are
acknowledged by all the related parties and possible changes are mentioned in
the contract itself.
The potential conflicts in relationships that the contractors may have are lack of
communication regarding possible changes and no coordination between the
owner and the designers.
3.4 Project 4: Funding
For Project 4 the negotiating position and conflicts in relationships of the
participants of this project are described below.
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PROJECTS NEGOTIATION AND CONFLICT REPORT
NAME OF PROJECT
3.4.1 Owner
The negotiating position of the owner will be to ensure the funding is done at the
right time and for the right purpose.
The potential conflicts in relationships that the owner may have are additional
fund requests, conflict over availability of funds, over-costing and others.
3.4.2 Designers
The negotiating position of the designers will be to ensure they receive sufficient
funds for the execution of their work in the project.
The potential conflicts in relationships that the designers may have are lack of
funding even when required, disapproval of funding requests and others.
3.4.3 Contractors
The negotiating position of the contractors will be to ensure the total budget is
finalized between the two parties before signing of the contract.
The potential conflicts in relationships that the contractors may have are no
mentions of additional funding requirements in contract, no specific procedure
followed for requesting funds and others.
4 THE NEGOTIATION INTERACTION PROCESS
4.1 Project 1: Forward strategy for payroll system
For Project 1 the negotiating position recommended should be a strategic
approach. The previous approaches regarding the payroll system failed
miserably due to lack of suitable strategy and insight. Hence, it is important to
develop a particular strategy for the project and also for the future.
4.2 Project 2: Governance and decision-making
For Project 2 the negotiating position recommended should be strategic
approach. While project governance is required to monitor and ensure the
progress of the project, decision making is often required for making certain
changes that will solve various issues and enhance the quality of the project.
Hence, strategic negotiation process is much recommended.
4.3 Project 3: People and change
For Project 3 the negotiating position recommended should be an integrative
approach. While it might be apparent that people and change are two completely
unrelated factors, both of them depend on each other and hence, integrative
approach is recommended. This approach ensures the changes are
implemented at the right time without imposing any negative impact on the
people.
4.4 Project 4: Funding
For Project 4 the negotiating position recommended should be a structural
approach. Any funding process in a project depends on the overall budget of the
project as well as various phases in the project that require funding. There
should be a specific funding structure in order to avoid misuse of funds and over-
expenses during the course of the project.
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PROJECTS NEGOTIATION AND CONFLICT REPORT
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5 THE NEGOTIATION METHODS
5.1 Project 1: Forward strategy for payroll system
For Project 1 the negotiating method recommended should be distributive
negotiation i.e. the project must be completed within a fixed amount of resources
provided in the same. The organization has faced significant amount of losses in
the previous projects that also involved implementation of payroll system and
hence, now the company cannot support excessive amounts of expenses for the
project.
5.2 Project 2: Governance and decision-making
For Project 2 the negotiating method recommended should be integrative
negotiation. In this project, while the project owner ensures project is progressing
in the right direction and the decision making process is done strategically and at
the right moment, the designer also receives certain benefits as compensations
for the changed decisions and introduction of changes when the project is in the
execution phase.
5.3 Project 3: People and change
For Project 3 the negotiating method recommended should be integrative
negotiation. Again, like the previous project, this project requires benefit for both
the parties – the owner being able to make necessary changes in order to
achieve his goal and the designers receive compensation as a result of changes
not mentioned in the contract or additional effort required to incorporate the
changes in the project.
5.4 Project 4: Funding
For Project 4 the negotiating method recommended should be distributive
negotiation. This is because, while the budget is fixed before the start of the
project and agreed during the contract signing, the owner needs to ensure the
funds are not wasted, misused or misplaced in the wrong activities. Hence,
distributive negotiation is recommended where funds will be distributed to the
designers as per their requirements and only after verifying the requirement in
that particular phase of the project.
6 THE OUTCOME
6.1 Project 1: Forward strategy for payroll system
The preferred form of procurement as an outcome from the negotiation process
for Project 1 is design and construct.
6.2 Project 2: Governance and decision-making
The preferred form of procurement as an outcome from the negotiation process
for Project 2 is manage contracting.
6.3 Project 3: People and change
The preferred form of procurement as an outcome from the negotiation process
for Project 3 is partnering philosophies.
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6.4 Project 4: Funding
The preferred form of procurement as an outcome from the negotiation process
for Project 4 is framework agreements.
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7 BIBLIOGRAPHY
Nederhand, J. and Klijn, E.H., 2018. Stakeholder Involvement in Public–Private
Partnerships: Its Influence on the Innovative Character of Projects and on Project
Performance. Administration & Society, p.0095399716684887.
Turner, J.R., 2017. Contracting for project management. Routledge.
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