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

Two department managers each insist on keeping a shared budget surplus for their own teams. They meet and agree to split the surplus equally, so each gets part of what they wanted. Which conflict-handling style does this represent?

This is compromise. Each manager gives up part of their claim and accepts half the surplus, producing a middle-ground outcome. Avoidance would mean ignoring the dispute, and competing would mean one manager imposing their will so that the other gets nothing.

  1. ACompromiseCorrect
  2. BAvoidance
  3. CCompeting

Explanation

Compromise involves each party giving up something to reach a middle-ground solution. Splitting the surplus equally is a classic example. Avoidance would mean ignoring the issue, and competing would mean one manager forcing their position.

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