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The production department at Karishma Ltd., a firm manufacturing readymade garments for men has an objective to increase production by 10% but the Sales department does not approve of the increase in production, till changes are brought about in the product to incorporate latest fashion. These kinds of conflicts bring to light which point of importance of the coordination that can help to accomplish the linking of activities of various departments:

Solution

✅ Correct Option: 2

The production and sales departments hold conflicting objectives arising from differences in their functions, interests and approaches. Such inter-departmental conflict illustrates functional differentiation as a reason why coordination is important, since coordination links the activities of departments pursuing their own objectives towards the common organisational goal.

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