Question 1

David and Jose have been business partners for 8 years. While David wants to acquire one of their major competitors, Jose is keen on expanding operations to other states. After a few rounds of discussions, they decide on buying out two smaller firms in different states. David is happy with this decision because the acquisitions significantly enhance the prospect of acquiring major firms in future, and Jose's interest in expanding operations to other states is also met. Which of the following conflict resolution strategies does this situation represent?

Accepted Answer

The situation represents the strategy of compromise as both parties had different interests initially but they reached a solution that accommodated both their interests by acquiring two smaller firms in different states.

Question 2

Michelle, the manager of human resources at KLP Consulting and Carrie, the vice president of operations, of the same organization are in disagreement about their company's diversity policy. This is an example of _____ conflict.

Accepted Answer

The conflict between Michelle and Carrie is interpersonal because it involves a disagreement between two individuals within the organization. Intragroup conflict would involve conflict among members of the same team or department, while intradepartmental conflict refers to conflict between different departments within the same organization. Interorganizational conflict involves conflict between different organizations, and horizontal conflict typically refers to conflict between individuals or groups at the same level of authority within an organization.

Question 3

Which of the following sources of conflict is likely to create conflict when some departments in an organization are highly regarded than the rest?

Accepted Answer

Status inconsistencies can create conflict when some departments are perceived as more important or higher status than others. This can lead to resentment and feelings of unfair treatment among lower-status departments, which can ultimately lead to conflict. Scarce resources, task interdependencies, overlapping authority, and different time horizons can also lead to conflict, but they are not specifically related to perceptions of status.

Question 4

Managers at Delaware Appliances feel that an advertisement of one of their major competitors is false and tarnishes the reputation of Delaware Appliances. This can lead to which of the following types of conflict?

Accepted Answer

Interorganizational conflict arises between organizations.

Question 5

Which of the following is true of the impact of conflict on organizational performance?

Accepted Answer

Some level of conflict is necessary for an organization to challenge the status quo, stimulate innovation, and promote critical thinking. However, when conflict is too high, it can lead to dysfunction and hinder organizational performance. Therefore, an optimum level of conflict is necessary for peak organizational performance.

Question 6

The production manager at JPC Inc. faces difficulty in meeting the quarterly production target as 10 of the production staff report in sick. Based on this scenario, which of the following sources of conflict is likely to cause conflict?

Accepted Answer

The scarcity of resources (production staff) is likely to cause conflict as it will create competition among the remaining staff in terms of workload, overtime pay, and job security, leading to potential conflicts and stress.

Question 7

Both the marketing division and the corporate communications department of Value Homes, a real estate company, claim responsibility for developing corporate marketing strategies. Which of the following could be a potential source of conflict between the two divisions?

Accepted Answer

Overlapping authority could lead to disagreements and power struggles between the marketing division and the corporate communications department, as both departments may feel the need to control and make decisions about corporate marketing strategies. Scarce resources, different reward systems, status inconsistency, and different time horizons could also be potential sources of conflict, but they are less likely to cause conflicts specifically related to the development of corporate marketing strategies.

Question 8

Jim, the dean of student services and Paula, the dean of academic affairs, are in disagreement about how to handle the misconduct of a student. Their disagreement with each other signifies _____ conflict.

Accepted Answer

This is an interpersonal conflict because it involves a disagreement between two individuals, Jim and Paula, who are both deans within the same organization.

Question 9

The marketing department needs the production department to manufacture the goods it attempts to sell, while the production department needs the marketing department to find customers for the goods it produces. Which of the following is a source of conflict between the marketing and the production departments?

Accepted Answer

Task interdependence is the source of conflict between the marketing and production departments. This is because the marketing department's success depends on the production department's ability to manufacture products, while the production department relies on the marketing department to find customers for the goods it produces. Any failures or delays by either department can have a negative impact on the other department's performance, leading to conflict. Scarce resources, status inconsistency, different evaluation systems, and overlapping authority may also contribute to conflict, but task interdependence is the most relevant factor in this scenario.

Question 10

Dan and Scott head the production and marketing departments respectively at KYP Solutions Inc. Dan wants to extend the roll out date of a new product by two months in order to cash in on an impending decrease in the prices of raw materials. Scott, on the other hand, fears losing out to competition and wants Dan to start production immediately. In an attempt to resolve their conflict, Dan and Scott decide to produce a smaller number of units initially and scale up production once the prices of raw materials have reduced. This method of conflict resolution is known as _____.

Accepted Answer

The conflict resolution method used by Dan and Scott is compromise because they have found a solution that partially satisfies both parties. They have compromised on the production timeline by starting with a smaller number of units and scaling up later, which allows them to cash in on lower raw material prices while also not losing out to competition by starting production immediately.

Question 11

Two managers in the marketing department of SGR Inc. disagree on whether their organization should spend the bulk of its advertising budget on print advertising or Internet marketing. This is an example of _____ conflict.

Accepted Answer

Intragroup conflict arises within a group, team, or department.

Question 12

Discord arising from the incompatibility of goals of different individuals and their attempts to thwart each other's pursual of objectives is known as:

Accepted Answer

Organizational conflict refers to the disagreement or discord that arises due to incompatible goals or competing interests among different individuals or groups. This could occur due to differences in values, personalities, or priorities, and can lead to tension, stress, and negative outcomes such as decreased productivity, resentment, and even sabotage of each other's efforts. Workplace bullying and harassment are forms of negative behavior that are targeted at individuals and are different from conflicts that arise from incompatible goals. Social loafing refers to reduced individual effort when working in a group, whereas participative behavior reflects the degree of involvement and engagement of employees in decision-making processes.

Question 13

Mary and John are business partners, but they have frequent arguments at work due to the differences in their values and interests. This is an example of _____.

Accepted Answer

The situation described in the question is an example of organizational conflict, which arises when there are disagreements or disputes among individuals or groups within an organization. This is often due to differences in values, interests, or goals. Distributive justice refers to the fair distribution of resources, and equity conflict refers to conflicts that result from perceived inequalities or unfair treatment. Workplace bullying and directive behavior are not relevant to the situation described in the question.

Question 14

Conflict that takes place between different departments of the same organization is known as:

Accepted Answer

Intergroup conflict refers to conflict that arises between different groups within the same organization.

Question 15

Conflict that takes place between members of the same department is known as:

Accepted Answer

Intragroup conflict refers to conflict that takes place between members of the same department or team. This can be caused by differences in opinions, styles of work, or competing goals.

Question 16

When the parties in conflict attempt to resolve the conflict without making concessions but, instead, attempt to resolve their differences in ways that leave all parties better off, it is known as _____.

Accepted Answer

Collaboration involves the parties working together to find solutions that benefit all parties involved. It is a win-win situation where all parties are satisfied with the outcome, rather than one party making concessions to satisfy another.

Question 17

When two or more managers claim responsibility for the same activities or tasks, the source of conflict is _____.

Accepted Answer

Overlapping authority occurs when two or more managers claim responsibility for the same activities or tasks. This creates confusion and conflict as employees may receive conflicting directives from different managers.

Question 18

Conflict that takes place across different companies is known as:

Accepted Answer

Interorganizational conflict refers to a situation where two or more companies or organizations are in conflict with each other due to clashes in interests, goals, or competition. Interpersonal conflict refers to conflicts between individuals within the same organization, top-down conflict refers to conflicts between higher-level and lower-level employees within an organization, intragroup conflict refers to conflicts between members of the same group, and intergroup conflict refers to conflicts between different groups within the same organization.

Question 19

Kevin, the production manager at Hexavex Systems prefers long production runs of thousands of units in order to drive the cost per unit down. However, Andrea, the marketing manager prefers shorter production runs of a few hundred units in order to deliver the product more quickly to a key customer. Which of the following is the source of conflict between the two managers?

Accepted Answer

The conflict between Kevin and Andrea is due to having different goals. Kevin's goal is to drive down the cost per unit by having long production runs, while Andrea's goal is to deliver the product more quickly to a key customer by having shorter production runs.

Question 20

When differences are resolved by compromise or collaboration between the parties in disagreement, it is known as _____.

Accepted Answer

Functional conflict resolution refers to the process of resolving differences through compromise or collaboration, where both parties are willing to work towards a mutually acceptable solution. This approach seeks to find a win-win solution for all parties involved, rather than a winner-takes-all outcome. It is considered to be a positive and constructive way of resolving conflicts, and can often help to build stronger relationships between the parties involved.

Quiz 17: Managing Conflict, Politics, and Negotiation