Operator-manager conflict can end result in loss of productiveness, result in waste, and even make the firm go out of business. There are at least five resources of conflict that can come up in between proprietors and managers

A person case in point would be a corporation that drilled drinking water wells. The entrepreneurs experienced created up the small business to be an truthful and reliable business enterprise but after they retired and hired a supervisor to run the business enterprise for them the supervisor had various ideas of how to operate the enterprise. They were not as trustworthy as the owners had been and addressed workforce dishonestly by dishonest them out of their pay. This induced considerably conflict among the homeowners and the supervisor as the business was dropping prospects but the supervisor continued to fork out himself major wages.

Another instance is a used car or truck large amount in Dade Town that the original homeowners bought automobiles in an honest and dependable way developing the enterprise up and when he employed a manager to choose above the enterprise the manager began offering automobiles that were being breaking down in just weeks just after the consumers drove them off the lot. The manager would not support the consumers with the repairing the cars and trucks like the operator did if he bought a vehicle that brought on his buyers issues. The manager was building the sales and exhibiting earnings to the operator thus producing greater earnings for himself but at the exact time he was ruining the reputation of the motor vehicle ton. There was conflict with the proprietor and manager because the proprietor required the small business ran one way and the manager ran it a distinct way.