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

Two departments in a manufacturing company both need the same limited annual capital budget for new equipment, and neither can get what it wants without reducing the other's share. Which source of conflict does this best illustrate?

The conflict arises from competition for scarce resources. Both departments want money from the same limited capital budget, so any gain for one reduces what the other receives, creating a situation in which their interests directly clash.

  1. ACompetition for scarce resourcesCorrect
  2. BDifferences in personal values
  3. CPoor physical working conditions
  4. DA lack of formal qualifications

Explanation

Both departments depend on one limited pool of funds, so one gaining means the other losing. This is conflict arising from competition for scarce resources. The other options do not describe the situation given.

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