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

The sales department at Kestrel Ltd is rewarded on revenue and regularly accepts rush orders at discounted prices. The production department is rewarded on cost efficiency and objects to the disruption this causes to production schedules. What is the main cause of the conflict?

The main cause is differing departmental goals and performance measures. Sales is rewarded for revenue and accepts rush discounted orders, while production is rewarded for cost efficiency and is disrupted by them. The incompatible objectives, not personalities, resources or working conditions, drive the conflict.

  1. ADiffering departmental goals and performance measuresCorrect
  2. BA personality clash between the two department heads
  3. CScarcity of a shared physical resource
  4. DPoor physical working conditions

Explanation

Each department is measured and rewarded on a different objective (revenue versus cost efficiency), so their goals are incompatible. No personality issue or shared scarce resource is described, and working conditions are not mentioned.

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