The quality of interdepartmental decision making relationships was correlated with the resource allocation power, or powerlessness, of the divisional manager (i.e. the manager of a group of departments). The hypothesis that low divisional managerial power is associated with disharmony, and high power with harmony, was tested. Measurement was based on a sample of 260 drawn from 200 Australian organisations. Data was collected by way of an ordinal scale questionnaire, and the hypothesis was tested by non-parametric correlation analysis. It was found that there was a significant correlation (p=<0.005) between low divisional managerial power and uncompromising conflict among department managers. This finding was complemented by a similar association between low power and general distrust and political behaviour throughout the division. Delegation of substantial resource allocation power to divisional managers is deemed to be an important factor in the empowerment of all members of a division, if dysfunctional conflict is to be avoided.