Peerless Electric & Gas Company

Abstract

This case, based on a real situation, illustrates how interdepartmental conflict can affect company performance and is a prelude for a thorough discussion of the antecedents and management of interdepartmental conflict. The case is appropriate for MBA and upper-level undergraduate business students. At Peerless Electric & Gas Company, sales personnel in the Marketing department are responsible for the sale of new commercial and industrial lighting, a very profitable business. The extent to which sales is successful depends on the work of another Peerless department - Engineering and Installation (E/I) - which is responsible for designing, pricing, and installing lighting systems. The departments report to different managers and each operates under a different set of performance expectations. Currently, neither the planning and pricing nor the installation of new systems is done in a customer-focused, timely fashion, which jeopardizes the sales of new systems.