Final answer:
The debate on whether the firm should focus on profit maximization or societal good is an instance of structural conflict, which is influenced by organizational culture and management styles. The resolution of such conflicts requires careful handling and can potentially lead to team innovation and growth.
Step-by-step explanation:
The discussion between coworkers on whether the organization should focus on maximizing profits or doing good for the maximum number of people highlights a classic business ethics and organizational behavior dilemma. This dilemma can be categorized under structural conflict, which occurs when the goals and values of an organization or its members clash. Such conflicts arise from fundamental disagreements on the purpose and direction of the company. In this case, the conflict arises from different perspectives on the company's role in society - whether it should prioritize profitability or social welfare.
Organizational conflicts are not inherently detrimental; they can present opportunities for growth and innovation within a team. However, the resolution process is crucial. Teams can face additional challenges, such as coordination issues, when aligning on specifics. The introduction of diverse work teams to handle these issues can bring together various skills and experiences, although achieving increased productivity is not guaranteed and requires strategic management.
Organizational culture and management styles, such as those described in McGregor's Theory X and Theory Y, greatly influence how conflicts are perceived and resolved. The ideological split between maximizing profits and maximizing social good reflects deeper issues regarding collective action problems and the values that permeate the company culture.