ACCA Applied Knowledge · Business and Technology · Sources of conflict and techniques for conflict resolution
The sales department at Kestrel Co is rewarded on revenue and regularly promises short delivery dates. The production department is rewarded on cost efficiency and resists rush orders. Which cause of conflict is MOST clearly shown?
The conflict is most clearly caused by differing departmental goals and reward systems. Sales is rewarded on revenue and production on cost efficiency, so each pursues objectives that are incompatible with the other, producing disputes over rush orders.
- ADifferences in personality between the two managers
- BDiffering departmental goals and reward systemsCorrect
- CPoor physical working conditions
Explanation
Each department is measured and rewarded on different objectives (revenue versus cost efficiency), which pulls them in opposing directions. No information points to personality clashes or working conditions.
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