Read the following case and answer the questions that follow: Asia-pacific Internet marketing System Inc. Asia-Pacific Internet Marketing System Inc. established its China office in Beijing in June 2007, envisaged as the China head office. Good communication was maintained between the Beijing office and other offices in Shanghai and Guangzhou. A rumour arose in Guangzhou office that there would be staff cuts in the production department while the accounting department would recruit two new staff, and there would be salary cut of 5% across the Board. This led to a conflict between the two departments concerning resources and manpower. Some of the staff became very upset about the perceived inequity and job insecurity. Electronic messages and gossip expressing grievances flourished throughout the Guangzhou office. The conflict accelerated. Concerned staff members in the two departments sent email to the director of human resource department and even to the CEO in the office in Beijing, saying that if they did not hear of a decision about the staffing issue they might expose the issue to the media and the public. The CEO and the senior management group in Beijing held an emergency meeting. After some discussion, the CEO sent a clear vision statement through the Intranet to all the staff, and memos to all the different departments, expressing the company's view that retaining good staff was the first priority. The general manager of the Beijing office visited the Guangzhou, wishing to 'walk the floor' to boost employee engagement. When he met the chief worriers, he talked to them face to face about AIMS' strategic plan, and invited representatives of each department concerned to discuss ways to resolve conflict. Questions What kind of conflict do you find between production and accounting departments? (5 Marks) ii. How is the management trying to resolve conflict between the two departments? Suggest some other ways of handling the conflict. (10 marks)