| Paper No: | 1323 |
| Title: | Overt Interfunctional Conflict (and its Avoidance through Business Strategy) |
| Publication Year: | 1994 |
| Author(s): | Julio J. Rotemberg; Garth Saloner |
| Abstract Text: | We study why functional departments within companies, such as the marketing and manufacturing departments, have different preferences regarding what their firm should do. We then analyze why these disagreements lead to overt conflict. Finally, we consider two methods for averting conflict. The first involves a change in compensation policies while the second involves concentrating innovative talent in one department. The latter might give rise to "manufacturing dominant" or "marketing dominant" organizations, or the adoption of a "low cost" or "differentiation" strategy. |
| Published In: | Rand Journal of Economics, Winter 1995, Vol. 26 Issue 4, pp. 630-653 |
| Keywords: | |
| Paper Copy Available: | No |
| Electronic Copy Available: | No |
