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ACCA Applied Knowledge · Business and Technology · Sources of conflict and techniques for conflict resolution

A company merges two divisions. Staff in Division X were used to autonomy and informal decision-making, while Division Y staff work within rigid procedures and approvals. After the merger, frequent disputes arise over how decisions should be made, even though both divisions share the same targets. Which analysis of the conflict is most accurate?

The conflict mainly stems from clashing organisational cultures and working styles. Division X is used to autonomy and informality, Division Y to rigid procedures, and since targets are shared, the disputes come from differing norms about decision-making rather than resource scarcity.

  1. AIt stems mainly from clashing organisational cultures and working styles rather than from scarce resourcesCorrect
  2. BIt stems mainly from different shareholding rights in each division
  3. CIt stems mainly from the legal separation of the two divisions
  4. DIt stems mainly from the absence of any departmental targets

Explanation

The facts point to different norms about autonomy and procedure, which is cultural difference. Targets are shared, so goal incompatibility and absent targets are ruled out. Shareholding and legal separation are not mentioned.

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