Provide an example of addressing functional conflict from either your work experience or a business publication. Please identify the conflict, the organization’s approach and the outcome. ORGB Organizational Behavior Text Book

Answer:

Mr. John & Ms. Helen are husband and wife, working in the same company and in the same function. Both husband and wife can work in an organization, but their role should not cross each other or both of them should not have common functional transactions where one is the maker and other is the checker. So both of them directly cannot be engaged in a transaction, where one requests approval and other supports/organizes the approval. This could have bias and will come under conflict of Interest.

Functional Conflict: John and Helen are working in the same function. In this case Helen wants to purchase an expensive machine, for which the project proposal is in review & under approval and John is also a part of the approval group; So this become the a conflict of Interest for John and Helen. John cannot be involved in an approval case, where his wife is seeking the approval.

Organization Approach: the standard approach for an organization is to ensure that husband and wife or brother and sister or any two close relatives cannot be in the same function with reporting structure or in maker and checker functional role, as it creates a conflict of interest. Husband and wife can be in the same function but with different manager and different role for each other.

Organizational Outcome: This creates a good atmosphere and working environment for the employees where the employees do not feel that any of the employees is given a special privilege/importance in the organization and all employees are considered equal.

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