Which internal conflict is highlighted in the case study?

• A. Conflict between marketing and production over pricing.
• B. Conflict between autocratic management and a recycling division proposing job enrichment and teamwork.
• C. Conflict between shareholders and managers over governance.
• D. Conflict between skilled and unskilled labor due to wage disparities.

Answer: (D)

Fairness in pay between different groups of workers is a common driver of internal conflict. When skilled workers earn significantly more than unskilled workers, the latter may feel undervalued and perceive pay inequity. This can nurture resentment, reduce motivation, and strain daily collaboration, creating friction that disrupts teamwork and productivity. The case study’s focus on wage disparities between skilled and unskilled staff captures this kind of internal tension most clearly, making it the central issue within the organization, rather than conflicts between departments, management styles, or governance disputes. Addressing the issue typically involves clear pay structures, job evaluation, and opportunities for progression and training across both groups to restore perceived fairness and harmony.