CAIIB ABM Module B UNIT 15 MCQ – Conflict Management and Negotiation

Correct Answer: B. Because differences in attitudes, behaviours, traits, desires, and needs naturally exist among people. The inherent diversity among individuals in their backgrounds, viewpoints, and personal attributes inevitably leads to situations where disagreements arise.

Correct Answer: A. Increased productivity and project success. Workplace conflict typically leads to negative outcomes such as decreased productivity, project failure, and other disruptions, not improvements.

Correct Answer: C. Emotional stress. Emotional stress can contribute to the start of conflicts and can also be a result experienced by those involved in conflicts.

Correct Answer: C. Fairness, trust, and mutual respect at all levels. A workplace culture built on these principles fosters strong employee relations, which helps in minimising the occurrence of conflicts.

Correct Answer: B. Because banks are custodians of public money and conflicts can severely harm their business. The nature of their service, handling public funds, makes the adverse effects of internal conflict especially damaging to banks.

Correct Answer: C. A sharp disagreement or opposition of interests or ideas. Conflict arises when individuals or groups hold differing views, interests, or ideas that clash.

Correct Answer: B. The perception of opposing incompatible goals, desires, demands, wants or needs. This definition highlights the internal or external struggle arising from perceived incompatibilities.

Correct Answer: C. It provides an opportunity to strengthen the bond between people. Addressing conflict constructively can lead to better understanding and stronger relationships.

Correct Answer: C. It tends to lower team morale and decrease productivity. Conflict generally creates a negative atmosphere, reducing morale and hindering work output.

Correct Answer: C. At least 25 per cent. Studies suggest that a significant portion of a manager’s time is dedicated to addressing and resolving conflicts among employees.

Correct Answer: B. Avoiding the situation or battling it out. Individuals often react to conflict either by withdrawing (flight) or confronting aggressively (fight), neither of which typically leads to resolution.

Correct Answer: C. Scarce resources and interference. Conflict often arises when parties perceive that resources are limited and that others are hindering their access or goals.

Correct Answer: B. Conflict is not a sign of a poor relationship. The presence of conflict does not automatically mean a relationship is weak; it’s a normal aspect of human interaction.

Correct Answer: B. Based on perceptions influenced by life-experiences, culture, values, and beliefs. How individuals react to conflict is subjective and shaped by their personal background and worldview.

Correct Answer: C. Because organisations hire diverse people with dissimilar backgrounds and viewpoints. Bringing together individuals with different perspectives, cultures, and work styles naturally leads to disagreements.

Correct Answer: C. Building trust and confidence in the relationship’s resilience. Successfully navigating conflict can strengthen relationships by demonstrating they can withstand challenges.

Correct Answer: C. Conflict is bad and should be avoided. The traditional view sees conflict purely negatively and believes it should be prevented or suppressed.

Correct Answer: D. Conflict is inevitable, potentially positive, but requires proper diagnosis and management. This view accepts conflict as unavoidable and potentially beneficial, provided it is handled correctly.

Correct Answer: C. Differences based on work details, goals, assignments, resources, or procedures. Task conflict pertains specifically to the content and objectives of the work being done.

Correct Answer: C. Task Conflict. Conflicts related to work tasks are often resolvable through clear communication, active listening, and collaborative problem-solving.

Correct Answer: B. It is based on personal issues, disagreements, and differences between individuals. Relationship conflict is personal in nature, stemming from interpersonal dynamics rather than work tasks.

Correct Answer: C. Because it is rooted in personal issues and can become long-lasting, hurting trust and performance. The personal nature of relationship conflicts makes them harder to diffuse and can have lasting negative impacts.

Correct Answer: C. Fundamental differences in identities, values, beliefs, politics, or religion. Value conflicts stem from core differences in individuals’ fundamental worldviews and principles.

Correct Answer: B. Aiming for mutual understanding and respect through dialogue. For value-based disputes, the focus should be on understanding each other’s perspectives rather than forcing agreement or resolution.

Correct Answer: C. A “values-neutral” ability to accurately describe what the other person believes. The goal is cognitive understanding—accurately grasping the other’s position without needing emotional agreement or judgement.

Correct Answer: B. Intra-personal Conflict. This type of conflict occurs internally within a single person, stemming from personal frustrations, competing roles, or dilemmas about goals.

Correct Answer: C. Approach-approach conflict. This specific type of goal conflict involves a choice between two or more desirable but mutually exclusive outcomes.

Correct Answer: D. Approach-avoidance conflict. This conflict arises when a single goal has both positive elements that attract the individual and negative elements that repel them.

Correct Answer: B. When a motivated drive is blocked before the desired goal is reached. Frustration results from an obstruction preventing the attainment of a goal that an individual is motivated to achieve.

Correct Answer: C. Collaboration. The text lists aggression (attack), withdrawal (backing away), fixation (persisting futilely), and compromise (seeking a new goal) as defence mechanisms against frustration; collaboration is not mentioned in this context.

Correct Answer: C. Intra-role conflict. This conflict arises from conflicting demands or expectations associated with the same role.

Correct Answer: D. Inter-role conflict. This occurs when the demands of different roles occupied by the same person are incompatible, such as work and family roles.

Correct Answer: C. Ego. Conflicts can be driven by ego, where individuals prioritize their own “win” without regard for the other party, creating a win/lose scenario.

Correct Answer: C. Latent Phase. This is the first stage where factors that could cause conflict are present, such as differing goals or competition for resources, even if no active dispute has occurred.

Correct Answer: C. Trigger Phase. This phase involves a specific incident or event that acts as a catalyst, bringing the underlying conflict potential to the surface.

Correct Answer: D. Differentiation Phase. This is the stage where the core issues and differences between the conflicting parties are clearly articulated.

Correct Answer: C. Because healthy resolution increases understanding, builds trust, and strengthens relationships. Effectively resolving conflict transforms a potentially destructive situation into an opportunity for growth and improved connections.

Correct Answer: B. Listen, Talk, Resolve. This basic approach emphasizes understanding the other party (Listen), communicating openly (Talk), and working towards a solution (Resolve).

Correct Answer: C. Maintaining and strengthening the relationship. The focus should be on preserving the relationship rather than achieving personal victory in the disagreement.

Correct Answer: B. Because holding onto past grudges impairs the ability to address the current issue realistically. Dwelling on past issues and blame hinders finding solutions for the present problem.

Correct Answer: C. Choosing to disengage from an unproductive conflict and move on. When a conflict reaches an impasse, accepting the disagreement and moving on is a valid strategy to end the argument.

Correct Answer: C. Avoiding. This style is characterized by a lack of engagement, where the individual tries to evade the conflict altogether.

Correct Answer: D. Accommodating. This approach prioritizes the other party’s needs and concerns over one’s own, often involving self-sacrifice.

Correct Answer: D. Partly satisfies the concerns of all parties involved. Compromising seeks a middle ground where each party gives up something to reach a mutually acceptable, though not ideal, solution.

Correct Answer: C. Competing. This style involves pursuing one’s own concerns assertively and often at the expense of others, showing low cooperation.

Correct Answer: A. To find a solution that entirely satisfies the concerns of all involved parties. Collaboration aims for a win-win outcome where the needs of all parties are fully addressed.

Correct Answer: B. To identify the source and cause of the conflict by gathering information. Understanding the root cause is essential before attempting resolution, requiring listening to both sides.

Correct Answer: C. Because the triggering event might be minor compared to the underlying, real cause of the conflict. Often, the immediate incident is just a symptom of deeper issues that need addressing.

Correct Answer: B. To get the parties to suggest their own potential solutions. This step focuses on moving from problem identification to solution generation by soliciting ideas from the disputants.

Correct Answer: C. To reach a mutually accepted agreement on a solution and specify actions. The final step aims to solidify a resolution that both parties agree to implement.

Correct Answer: B. It allows the organisation to strengthen itself by correcting underlying problems. Dealing with conflict openly provides opportunities to identify and fix issues, ultimately benefiting the organisation.

Correct Answer: C. Integration. Follett described integration as a collaborative style focused on finding solutions that genuinely meet the needs of both parties through open communication and exploration.

Correct Answer: B. Forcing, Withdrawing, Smoothing, Compromising, Problem solving. Blake and Mouton identified these five distinct approaches individuals might take when faced with conflict.

Correct Answer: C. Minimise affective conflicts and maintain a moderate amount of substantive conflict. The goal is to reduce emotional clashes (affective) while allowing for healthy debate on issues (substantive).

Correct Answer: C. Meeting separately with the individuals involved in the conflict. It is generally advisable not to meet separately, likely to ensure transparency and avoid perceptions of bias.

Correct Answer: C. Interpersonal communication, conflict management, and delegation of authority. These skills directly equip managers to handle interactions, disagreements, and responsibilities more effectively, reducing potential conflict.

Correct Answer: B. By creating clear, mutually understood guidelines distributed to all concerned. Involving employees in creating procedures fosters understanding and agreement, reducing ambiguity and potential disputes.

Correct Answer: C. Acknowledging that a difficult situation may exist and being open about it. The initial step involves recognizing the problem openly and honestly before proceeding further.

Correct Answer: B. Because emotions like anger or hurt often accompany conflict and need acknowledgment. Allowing expression of feelings is crucial for addressing the emotional dimension of the conflict.

Correct Answer: B. To find out why people want the solutions they initially proposed. Understanding the ‘why’ behind proposed solutions reveals the actual needs that must be satisfied for a lasting resolution.

Correct Answer: B. A sign of passive resistance. Silence does not always mean consent; it can indicate disagreement or unwillingness to commit, requiring further clarification.

Correct Answer: B. Exploring other avenues like involving an outside facilitator or addressing it as a performance issue. If initial attempts fail, alternative approaches, including external help or performance management, may be needed.

Correct Answer: B. When two individuals have a similar objective but disagree on how to reach it. Negotiation works well when there’s a common goal but differing views on the path or method.

Correct Answer: C. The process of resolving a dispute by meeting at least some of each side’s needs and addressing their interests. Conflict resolution aims to find a mutually acceptable outcome by considering the needs and interests of all parties.

Correct Answer: B. Finalising salary for a new employee or contract terms with a vendor. Negotiation is frequently required to find mutually acceptable terms regarding compensation and contracts.

Correct Answer: C. Speaking politely and clearly, without using abusive language. Effective communication involves respectful, clear, and considerate language to minimize misunderstandings and hurt feelings.

Correct Answer: B. Because one must understand the other person’s perspective before responding or commenting. Listening is key to grasping the other party’s viewpoint and needs accurately, which is essential for resolution.

Correct Answer: C. Sitting down and discussing the issues in an open forum. Open discussion involving all parties is presented as a constructive way to address differences and find alternatives.

Correct Answer: C. Patience. Maintaining patience and emotional control is vital to prevent escalating conflicts, especially when faced with provocation.

Correct Answer: C. Supporting what is correct and fair, regardless of personal relationships. Impartiality means judging the situation based on merit and fairness, not personal bias.

Correct Answer: C. Helping them understand their mistake gently and guiding them. A constructive approach involves guiding the person to understand their error without resorting to harsh criticism.

Correct Answer: C. Having the courage to accept it if you have done something wrong. A positive attitude includes accountability and admitting one’s own mistakes instead of blaming others.

Correct Answer: C. On the issue at hand and ways to address it. Effective negotiation requires focusing on the problem itself, not attacking the person involved.

Correct Answer: C. Finding shared interests. Identifying common ground, even if small, can help redefine the issue and work towards a mutually beneficial solution.

Correct Answer: B. Best Alternative To a Negotiated Agreement. BATNA represents the best course of action a party can take if the current negotiation fails.

Correct Answer: C. To attain a ‘win-win’ situation where both parties feel they achieved something valuable. The ideal outcome ensures mutual satisfaction, making both parties feel like winners.

Correct Answer: B. Because they indicate that the negotiation skills or strategies were insufficient to resolve the conflict effectively. These outcomes signify a failure to find a mutually acceptable solution, suggesting inadequate negotiation.

Correct Answer: B. Learning how to resolve conflict in a healthy and constructive way. Developing the skills and mindset to address disagreements constructively is highlighted as the key to effective conflict management, rather than avoidance or suppression.

Correct Answer: B. Organisational Conflicts. This term specifically denotes disputes within an organisation related to work matters.

Correct Answer: C. Five different approaches to resolving conflict (Thomas-Kilmann Model). These terms represent the five distinct styles identified in the Thomas-Kilmann model for handling conflict.