He needs that employee there to assist with the audit or he will not meet the Friday deadline and be in trouble with his boss, the upper-level accounting manager. This is a conflict of interest as he has a duty to the employee to keep his promise, a duty to himself to avoid getting into trouble with his boss and a duty to the accounting department to complete the audit on time.
The leading types of conflicts comprehend allocation of wealth, layoffs and promotions, favouritism and scheduling.
Types of Organizational Structures
Craig W. Fontaine, PhD of Northeastern University School of Craft State discusses the altered types of organizational structures. A functional constitution is the most accepted and basic. Decision-making is centralized, or fictional by top authority. The convention is broken into departments, such as Industry, sales and accounting. A divisional constitution groups individuals with correlative abilities and proclaim those individuals to firm product lines. Within those product column groups, there are alone accounting, sales, Industry and analysis and system departments. A matrix constitution has departments, such as accounting, legal and Industry and those departments retain agency teams. A matrix constitution has project managers who buy staff from Everyone brace company any eternity they essential to all a project. A classical organizational delineation is rangy, that is, there are several levels between lower-level employees and top-management. Managers have a narrow span of control of subordinates. A neoclassical organizational design is flat, that is, there are few levels between lower-level employees and upper management. Managers also have a wide span of control.
Allocation of Resources
In a divisional structure, a conflict may arise when one product line is more profitable and that product line receives more financial resources. The organization has a duty to both its shareholders and its employees. Shareholders want higher profits, so the company wants to allocate resources to the profit-making product. Employees want better equipment and facilities, but the organization must efficiently allocate these resources to the product section that is more profitable. In matrix structure, the allocation of personnel causes conflicts. Managers sometimes compete for staff in matrix structures and each manager places her project's interest as first priority. The conflict of interest arises between the individual project, or clients, best interest and the company's best interest in completing all projects in an efficient manner.
Layoffs and Promotions
In any organizational structure, layoffs are a conflict of interest. Upper management has a duty to its employees and a duty to its shareholders. When layoffs occur the organization is making a decision to chop cost. In some organizational structures, particularly, classical organizational designs, some promotions and hiring decisions are conflicts of interests. For instance, upper-management hires an outsider for a management position instead of promoting from within.
Nepotism
Nepotism is the act of granting preferential treatment to friends and relatives over other employees. For instance, Company XYZ has a functional structure, the CEO of Company XYZ hires his son as the director of marketing and his son is not qualified for the position. This is not in the organizations best interest, the shareholders best interest or the other employee's best interests and the CEO has a duty to behave in the best interest of all of these entities.
Scheduling Conflicts
In classical organizational designs, scheduling changes may result in conflicts of interest. For instance, a middle-level manager from accounting promises an employee he can have Friday off. Later that day, the middle-level manager finds out his department has an audit due that same Friday.Conflicts of care causation problems and entities must avoid them whenever imaginable.A clash of affliction occurs when an body has a duty to behave on behalf of extra than one diacritic, disposal or other matter or polity firm that potentially own conflicting interests. Differential types of conflicts of interests are prevalent in diversified organizational structures.
