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

Two departments each need the same shared budget of $100,000. Neither can be fully satisfied, so each agrees to accept $50,000 and give up part of its demand. Which Thomas-Kilmann style is being used?

The style is compromising. Each department sacrifices part of its demand and accepts half the budget, reaching a middle-ground outcome in which both are partly satisfied. This differs from competing, where one side wins, and from avoiding, where the issue is not addressed.

  1. ACompeting
  2. BCompromisingCorrect
  3. CAvoiding

Explanation

Each party gives up something to reach a middle-ground solution, which is compromising, a moderate level of assertiveness and cooperativeness. Competing would mean one department pushing to win its full demand, and avoiding would mean neither addressing the issue.

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