Organizational Conflict in American Dream Holdings Ltd

In an organizational structure, the primary role of a system approach is to show the interdependence and inter-relationships amongst the systems and sub-systems. In the case study, the system is represented by the American Dream Holdings Ltd.  In the ADHL system, there are four subsystems which are EFC corporation (the company has 100% ownership over this subsidiary, it is the largest subsidiary, and its operations are throughout the world), Mr. Major (eighty percent holder), Mr. Minor (20 percent holder), and the fourth subsystem incorporates all the other subsidiaries (ADHL has 20% to 50% ownership on these subsidiaries). Amongst the 4, Mr. Minor and Mr. Major happen to have one subsystem each which are Mr. Toolate, and Ms. Iwon, the chief operating officers, in that order.

Question 2

In the organizational setting, conflict refers to the disagreement among the parties involved due to unmatched goals, perceptions, ideas, and thinking about the operation of the company. In the case study, there exists a conflict between EFC and ADHL. Whereas ADHL is the parent company and therefore subject to retrieval of the financial statements from its subsidiaries, EFC is reluctant to do so. Another conflict is due to the self-promotion of Ms. Iwon to a higher position within ADHL by interfering with the structure of the organization.  Ms. Iwon did so without consulting the company’s officers and other managers.

Question 3

Looking at the nature of the conflicts involved, it is clear that the system is neither collaborative nor competitive because EFC is not supporting ADHL and each department is silent with no single confrontation yet, respectively. However, the system is avoidant primarily because conflicts are vividly being avoided in the organization to keep peace and accord. By orchestrating a top position by herself, Ms. Iwon voids conflict amongst the top management and officers of the company. Similarly, keeps the harmony within ADHL avoiding to hand in its financial statements which would bring about so many confrontations concerning the fees to be paid.