In response to changing customer demands and strong competition, the new product development team of Z Company has been working on a new product range. However, the process has not been easy and conflict between different interest groups is a major problem.   For instance, the Marketing Department staff are complaining that the research and development staff are not working quickly enough in translating their ideas into possible products. Production staff are saying that no consideration has been given to the implications of the new product designs on the production process.

Explain the sources of conflict between the different groups involved in the new product development process.

Organisational conflict can happen on a number of different levels and can have a detrimental crash on the business. The conflict in Z Company is best characterised as horizontal conflict.  This is where conflict occurs between groups or departments at the similar level in the hierarchy.  A number of factors play a part in making the conflict:

Goal incompatibility is often the major cause, where the goals of single area block the achievement by other areas. In Z Company, the functional structure of the organisation could encourage employee loyalty to certain departments with employees wanting to concentrate on their own goals. The goals of dissimilar departments are often seen as mutually exclusive.  This can result in conflict and lack of cooperation between dissimilar departments during the latest Product Development (NPD) process.