Manage conflict

Concepts

By mastering this skill, project managers can deliver projects on time, within budget, and scope without compromising quality or customer satisfaction.

I. Understanding Budget Planning

At this stage, you’ll establish a financial plan for your project. The process of creating a budget plan involves estimating costs, setting a baseline, and gaining stakeholder approval.

Cost Estimating: You will estimate the monetary resources needed to complete the project tasks. These can include direct costs (like labor and materials) and indirect costs (like electricity, rent, or insurance).
Baseline Setting: After cost estimation comes setting a baseline. The baseline is the approved version of the budget and serves as a reference point for future project control.
Stakeholder Approval: Finally, this budget needs approval from the stakeholders. Once approved, it becomes the project budget.

II. Managing the Budget

After the approval of the budget, you need to manage it, which includes cost tracking, performance evaluation, and rectifying any deviations from the budget.

Cost Tracking: This involves tracking the actual costs and comparing them to the budgeted costs.
Performance Evaluation: Here, you evaluate the performance of the project in terms of whether it is over or under budget. This can be done using Earned Value Management techniques such as Cost Performance Index (CPI) and Schedule Performance Index (SPI).
Rectifying Deviations: If there is a deviation from the budget, corrective actions need to be taken to bring the project back on track.

III. Resource Management

Managing resources involves planning, allocating, and controlling the resources required to execute the project. This is an important aspect of project management, encompassing human resources, materials, software, and hardware, among others.

Resource Planning: Here, you’ll identify and document the physical and human resources needed for the project.
Resource Allocation: This involves assigning the resources to the project tasks based on the project schedule.
Resource Control: This refers to monitoring resource usage, ensuring there’s no overspending, and determining whether additional resources are required.

Let’s take an example for a clearer understanding:

Consider a software development project with an estimated budget of $500,000. Over a period of 6 months, the actual amount spent, as calculated, is $450,000. Using Earned Value Management techniques, you find your project’s CPI is 0.9, which indicates that your project is over budget. Upon finding this, manager takes corrective actions such as cost cutting in areas that do not affect the project output or requesting additional funds, thus bringing the project back on track.

In conclusion, understanding budget planning, managing the budget, and resource management equips project managers with the skills to successfully deliver quality projects within budget and schedule constraints. Mastering these aspects of project management is, therefore, crucial for those preparing for the PMP exam.

Answer the Questions in Comment Section

True or False: Conflict management is the process of limiting the negative aspects of disagreement and optimizing the positive aspects.

True
False

Answer: True

Explanation: The goal of conflict management is to enhance learning and group outcomes in a constructive manner.

Which one of these is NOT a common source of conflict in project management?

a) Schedules
b) Costs
c) Priorities
d) Weather conditions

Answer: d) Weather conditions

Explanation: Weather conditions is not among the key sources of conflict in project management. The common sources are typically schedule, cost, and priorities.

True or False: Avoiding is an effective conflict management strategy.

True
False

Answer: False

Explanation: Avoiding is simply ignoring the problem. It is commonly a short-term solution and often results in unresolved issues in project management.

In a conflict situation, the project manager’s role is to:

a) Stay neutral.
b) Pick a side.
c) Intensify the conflict.
d) None of the above.

Answer: a) Stay neutral.

Explanation: As a mediator, the project manager should remain impartial and facilitate resolution proactively.

True or False: According to the PMBOK guide, conflicts should be addressed early and usually in private, using a direct, collaborative approach.

True
False

Answer: True

Explanation: The PMBOK guide suggests resolving conflicts directly and as early as possible, focusing on a collaborative approach.

What is the primary goal when managing conflict?

a) To prove who’s right.
b) To win the argument.
c) To find a resolution.
d) To establish dominance.

Answer: c) To find a resolution.

Explanation: The main goal in managing conflict is to find an appropriate resolution, not to establish dominance or win an argument.

True or False: In the “compromising” conflict resolution technique, an attempt is made to partially satisfy everyone.

True
False

Answer: True

Explanation: Compromising looks to find a solution that will at least partially satisfy all parties.

Which of these is a proactive approach to conflict management?

a) Avoiding.
b) Accommodating.
c) Forcing.
d) Collaborating.

Answer: d) Collaborating.

Explanation: Collaborating involves an attempt to work with others to find some solution that fully satisfies their concerns.

True or False: A high-performing project team does not have any conflicts.

True
False

Answer: False

Explanation: Even high-performing project teams can have conflicts. What differentiates them is their ability to manage and resolve conflict effectively.

The project manager should document all conflict resolutions:

a) To have evidence in case of similar future conflicts.
b) To embarrass team members.
c) To criticize team members.
d) None of the above.

Answer: a) To have evidence in case of similar future conflicts.

Explanation: Conflict resolution documentation helps in future conflicts and provides a record of what was agreed upon.

True or False: Project managers should promote a competitive environment that leads to conflict in order to improve performance.

True
False

Answer: False

Explanation: While healthy competition may improve performance, a highly competitive environment can result in conflict and negative impacts on team performance.

A collaborative approach to conflict management is also known as:

a) Forcing.
b) Problem-solving.
c) Ignoring.
d) Retreating.

Answer: b) Problem-solving.

Explanation: The collaborative approach, also known as problem-solving, involves working together to find a solution that fully satisfies all parties.