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Fanancial Analysis
17

Managing Stakeholders
Conflicts
Helder Moura and José Cardoso Teixeira

17.1

Conflicts: a behavioural process

It is not unusual that a chapter on conflict management, which is about, generally speaking, helping people or organizations that are in conflict with each other to deal with their differences, opens up with this statement (Moore, 1986 cited in Gordon, 1966):
All societies, communities, organizations, and interpersonal relationships experience conflict at one time or another in the process of day-to-day interaction. Conflict is not necessarily bad, abnormal, or dysfunctional; it is a fact of life.
Typically, a conflict situation results from resource shortage and antagonistic feeling.
Conflicts may arise between individuals, between groups of individuals and between organizations. Conflict situations between people are subjective, meaning that although objective reasons may exist, conflict only breaks out if those reasons are perceived. Conflicts between people may trigger out organizational conflicts for the simple reason that organizations are (still) governed by people. However, organizational conflicts may have other root reasons, for example resource interdependency. A common definition of conflict is a process that begins whenever an individual or a group feels negatively affected by another individual or group. In other words, people are in conflict anytime one’s actions obstruct or by any means, make other’s performance, less efficient.
Individual conflicts exist in all human relations and those within the construction activity are no exception. Due to the great diversity of people involved in construction projects and to the enormous variety of situations emerging from the construction process, individual conflicts in this activity deserve particular attention. Groton (1997) found that conflicts between people in construction arise as a result of poor interpersonal skills, inefficient communication, lack of responsiveness and



References: Brown, H. and Marriot, A. (1993) ADR Principles and Practice. London: Sweet and Maxwell. Eurosite (2003) 73rd Eurosite Workshop, Natura 2000 – Conflict management and Resolution. Park Interrégional du Marais Poitevin, France, 2–5 April de 2003 Fisher, R. and Ury, W. (1991) Getting to ‘Yes’: Negotiating an Agreement without Giving In (2nd edn). Gordon, J.R. (1996) Organizational Behaviour: A Diagnostic Approach (5th edn). Englewood Cliffs, NJ: Prentice-Hall. Gould, N., Capper, P., Dixon, G. and Cohen, M. (1999) Dispute Resolution in the Construction Industry Groton, J.P. (1997) Alternative dispute resolution in the construction industry. Dispute Resolution Journal, 52(3):49–57. Hughes, W. (1994) Improving the relationship between construction law and construction management. In: Fenn, P. (ed) Proceedings of TG15 Conference on Construction Conflict: Management and Resolution Johnson, G. and Scholes, K. (1999) Exploring Corporate Strategy: Text and Cases (5th edn). London: Prentice Hall Europe. Kunreuther H. and Susskind, L. (1991) The facility sitting credo – Guidelines for an effective facility sitting process. EIA Review, University of Pennsylvania: Philadelphia. Latham, M. (1994) Constructing the Team. London: HMSO. Loosemore, M., Nguyen, B. and Denis, N. (2000) An investigation into the merits of encouraging conflict in the construction industry Meltsner, M. and Schrag, P. (1973) Negotiating tactics for legal services lawyers. Clearing House Review, 7:259–263. Moore, C. (1986) The Mediation Process, Practical Strategies for Resolving Conflict. San Francisco, CA: Jossey-Bass. Olander, S. (2003) External Stakeholder Management in the Construction Process, Licentiate dissertation, Department of Building and Architecture, Lund Institute of Technology, Lund, Sweden. Susskind, L. and Field, P. (1996) Dealing with an Angry Public: The Mutual Gains Approach to Resolving Disputes Thomas, K. (1992) Conflict and negotiation processes in organizations. In: Dunnette, M. and Hough, L Wall Jr., J. and Callister, R.R. (1995) Conflicts and its management. Journal of Management, 21(3):515–558.

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