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

A sales team is rewarded on the volume of orders won, while the production team is rewarded on keeping costs low and avoiding rush jobs. Sales regularly promise short delivery times, and production complains. What is the most likely underlying cause of this conflict?

The most likely cause is incompatible departmental goals. Sales is rewarded for winning high order volumes with quick delivery, while production is rewarded for low cost and no rush jobs, so pursuing one team's targets undermines the other's.

  1. AIncompatible departmental goalsCorrect
  2. BAmbiguity over the organisation's legal status
  3. CDifferences in age between the staff
  4. DAn excessive span of control

Explanation

Each team is measured and rewarded on objectives that work against the other: volume versus low cost and stable schedules. This produces goal incompatibility between departments. Age and span of control are not indicated in the scenario.

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