Negotiation Is Used to Achieve Support or Resolve Conflicts
PMBOK v8 Definition
Negotiation is a discussion aimed at reaching an agreement. It is used to achieve support or agreement that supports the work of the project or its outcomes and to resolve conflicts within the team or with other stakeholders. Negotiation among team members is used to reach consensus on project needs, and it can build trust and harmony among team members. In procurement, negotiation clarifies the structure, rights, and obligations of the parties and other terms of the purchases so that mutual agreement can be reached prior to signing a contract.
Why It Matters for the Exam
Negotiation appears frequently on the PMI exam in two distinct contexts: (1) as a general interpersonal skill used across all Knowledge Areas for stakeholder management and team conflict resolution, and (2) as a specific tool in Procurement Management for contract agreements. Exam questions test your ability to distinguish when negotiation is the appropriate technique versus other conflict resolution methods like mediation or arbitration.
Key Points to Remember (for the exam)
- Primary Purpose: Achieve support or agreement AND resolve conflicts within the team or with other stakeholders
- Team Application: Used to reach consensus on project needs and build trust and harmony among team members
- Procurement Application: Clarifies structure, rights, obligations, and other terms before signing a contract
- Authority Requirement: Negotiation should be led by a member of the procurement team who has the authority to sign contracts
- Final Output: Concludes with a signed contract document or other formal agreement that can be executed by both buyer and seller
- Supporting Participants: The project manager and other members of the project management team may be present during negotiation to provide assistance as needed
- Alternative Dispute Resolution (ADR) Context: Negotiation is one of five ADR methods—it involves direct discussions between parties without third-party intervention
Typical PMI Exam Example
A project manager needs to resolve a disagreement between two team members regarding resource allocation for a critical deliverable. The project manager facilitates a discussion where both parties present their needs and constraints, working together to find a mutually acceptable solution. This is an example of negotiation used to achieve agreement and resolve conflict within the team.
PMI Exam Traps
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Trap: Confusing negotiation with mediation
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Reality: Negotiation involves direct discussions between parties without third-party intervention; mediation brings in a neutral third party to facilitate discussions
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Trap: Thinking any team member can lead procurement negotiation
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Reality: The negotiation should be led by a member of the procurement team who has the authority to sign contracts
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Trap: Assuming negotiation always results in a win-win outcome
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Reality: In conflict resolution, negotiation can take different forms; the compromise/reconcile technique occasionally results in a lose-lose situation
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Trap: Confusing negotiation with other conflict resolution techniques like withdraw/avoid or force/direct
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Reality: Negotiation is a discussion aimed at reaching agreement, while withdraw/avoid retreats from conflict and force/direct pushes one position
Important PMI Connections
| Related Concept | Relationship Type | Exam Attention Point |
|---|---|---|
| Conflict Resolution Techniques | Complementary tool | Negotiation is one of five general techniques; know when to use each |
| Procurement Management | Primary application area | Negotiation clarifies contract terms before signing; requires signing authority |
| Alternative Dispute Resolution (ADR) | Category relationship | Negotiation is one of five ADR methods (along with mediation, arbitration, dispute review boards, expert determination) |
| Stakeholder Engagement | Supporting process | Negotiation builds trust and harmony while achieving stakeholder support for project outcomes |
| Team Management | Application area | Used to reach consensus on project needs and resolve team conflicts |
Quick Review Questions
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What is the primary purpose of negotiation in project management according to PMBOK v8?
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Who should lead procurement negotiations, and what authority must this person possess?
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What is the final documented output of a successful procurement negotiation?
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How does negotiation differ from mediation in the context of alternative dispute resolution?
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A team member suggests postponing a conflict until the next meeting. Is this negotiation? If not, which conflict resolution technique does this represent?
PMBOK v8 Reference
Section 2.5.2.1 - Interpersonal and Team Skills: Negotiation Section 12.3.2.5 - Interpersonal and Team Skills: Negotiation (Procurement) Section 2.5.2.1 - Conflict Resolution Techniques