Future Business Leaders of America (FBLA) Business Management Practice Test

Reorganizations and corporate downsizing are sources of what type of conflict?

1. Interpersonal conflict

2. Intergroup conflict

3. Organizational conflict

4. Imaginary conflict

The correct answer is: Organizational conflict

Reorganizations and corporate downsizing can lead to organizational conflict because these actions significantly alter the structure, roles, and processes within a business. When a company undergoes these changes, employees may feel uncertainty about their job security, changes in responsibilities, or shifts in company culture. This can create tensions among different departments, create a lack of trust in leadership, or lead to competition for fewer positions or resources. Organizational conflict typically arises from changes that affect the entire structure or dynamics of the organization, leading to differing viewpoints, anxieties, and reactions among employees and management. Such conflict can also emerge from the differences in objectives between various parts of the organization as they adapt to new realities posed by the restructuring or downsizing. This situation highlights the complexity of managing human resources during major changes and underscores the need for effective communication and conflict resolution strategies.