Abstract
Purpose: The purpose of this article is to explore whether certain organisational control mechanisms can reduce conflict associated with cross-functional projects. Methodology: This is an exploratory study and individuals who had recently engaged in a cross-functional process improvement or change implementation project at automotives firm in South Africa were surveyed. The information collected from the survey was analysed using exploratory factor analysis and correlation analysis. Findings: The results of this study indicate that of the three control mechanisms examined, formalisation in project structure had the strongest association with a reduction in conflict. Reward systems that reward both the team as well as the individual were also found to have a significant association with a reduction in conflict. Use of performance measurement systems aimed at achieving strategic alignment did not have an association with conflict reduction in the organisation. Implications: These findings yield the following implications for management practice. Firstly managers need to be conscious that initiatives such as process improvement projects that require individuals from different functions to work together can often result in conflict. Secondly, this conflict can be reduced by formalizing roles and responsibilities and decreasing ambiguity in the project. Thirdly, design of reward systems that incentivise both the cross-functional team as well as the individual can also help to reduce conflict. Contribution and value: This study has shed light on the role of certain organisational control mechanisms on reducing conflict associated with cross-functional projects. It has also contributed to our understanding of how formalisation in project structure influences conflict in comparison to how performance measurement and reward systems influence conflict.
Highlights
A difference in perspectives between individuals from different groups often results in conflict when these different groups are mandated to work together (Gerwin, 2004)
In examining the expected factor pattern compared to actual factor loadings it was noted that two items from the reward systems factor did not load as expected, and that removing these two items from the reward systems variable would improve the reliability of the factor greatly
This paper reports on an exploratory study conducted in the automotive industry in South Africa
Summary
A difference in perspectives between individuals from different groups often results in conflict when these different groups are mandated to work together (Gerwin, 2004). The automotive industry contributes approximately 7.5% to South Africa’s Gross Domestic Product (GDP) It provides employment for more than 36 000 people (National association of automobile manufacturers of South Africa, 2008). The South African government has identified the automotive industry as a key growth sector and has been a strong driver of programmes such as the motor industry development programme (MIDP). This programme was initiated in 1995 to assist automotive manufacturers and component manufacturers through the reduction of tariffs, the introduction of duty-free imports of components, duty rebate credits on exports and the lifting of local content policies (Kaplan, 2004). While support from programmes such as the MIDP programme is acknowledged, researchers such as Barnes, Kaplinsky and Morris (2003) argue that the South African Automotive industry’s success in exporting has been more as a result of the industry’s efforts at improving its efficiency rather than as a result of the MIDP support programme (Kaplan, 2004)
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