What is the level of intergroup conflict?

At a sponsorship agency in Guatemala, employees are proud of the work they do, bringing sponsorship money to poor children and families who need assistance. But trouble is brewing in the Donor Services department. Morale is low, tension is high, and no one really knows how productive they are. The problem is that the department manager is so absorbed in other work that he is virtually ignoring operations within the department. The woman who has been assigned to oversee operations on a daily basis has not been given managerial authority or training, so workloads are uneven and employees aren’t trained to do their jobs properly. Adding fuel to the fire is a “clique” of three women who resent what little authority the supervisor has over them, and they routinely voice their negative opinions to each other and to others. Work in this department is heading off the rails.
DISCUSSION QUESTIONS TO ASSIGN
What is the level of intergroup conflict? What is its cause?
What do you recommend to help the Donor Services Department become more effective? How might greater empowerment help the situation in the Donor Services Department? What specifically would you change to achieve greater empowerment?