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The Northern Division of CPP Corporation supplies parts to its Southern Division. These parts are also available in the market from other suppliers. Northern Division is operating at 80% capacity, with a variable cost per unit of $6. Because of a personality conflict between the two division managers, however, Southern has elected to buy the part from outside suppliers at $7 per unit. As a result of this action, CPP Corporation will be:
Social Loafing
The phenomenon where individuals reduce their effort when working in a group compared to when they work alone.
Fundamental Attribution Error
The overestimation of internal factors and underestimation of external factors driving individual behaviour.
Representativeness Bias
Basing a decision on similarity to other situations.
Facilitator
An individual who makes an action or process easier or assists in the progress of discussions and processes within a group.
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