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Managing Performance Questions 199–203 (page: 15)

Updated On: 31-Jan-2026

Third party consultants, Member rotation, Confrontation, and Super-ordinate goals are examples of which of the following?

  1. Causes of horizontal conflict
  2. Methods of managing intergroup conflict
  3. Methods of managing conflict according to the Thomas-Kilmann Conflict Mode Instrument (TKI)
  4. Causes of vertical conflict

Answer(s): B



An insurance group is contemplating a proposal to outsource its customer call centre. The centre is currently managed as an internal function. Before taking a strategic decision, the group directors are assessing not only the long term operating costs but all the transaction costs associated with a change to an external provider.
In the context of this proposal, what are the transaction costs that would need to be considered by the directors?

Select ALL that apply.

  1. Contract drafting and negotiations
  2. Incentive payments for call centre staff
  3. Enforcing the terms of the contract
  4. Setting and monitoring service standards

Answer(s): A,C,D



A manager was in conflict with employees about annual leave arrangements. He wanted to have two weeks in the summer when the factory was closed and all employees had to take two of their four week annual allowance.

Employees were resistant to this change as they wanted flexibility in when they took their holidays.

This conflict went on for sometime as the manager avoided resolving the issue. They have recently however, collaborated and agreed that only one week would be required to be taken as holiday in the summer when the factory closed and the employees would get two days extra holiday throughout the rest of the year · a win-win situation!

Using Thomas-Kilmann's conflict mode instrument, what changed in the way this conflict was handled?

  1. Both assertiveness and co-operativeness increased.
  2. Assertiveness increased but co-operativeness remained low.
  3. Co-operativeness increased but assertiveness remained low.
  4. Assertiveness fed and co-operativeness increased.
  5. Co-operativeness fell and assertiveness increased.
  6. Both co-operativeness and assertiveness fell.

Answer(s): A



Which THREE of the following are determinants of national competitive advantage outlined in Porter's Diamond?

  1. Demand Conditions
  2. Factor Conditions
  3. Related and Competitive Industries
  4. Firm, Strategy, Structure and Rivalry
  5. Firm Infrastructure
  6. Technology Development

Answer(s): A,B,D



WBS organisation has recruited a new project manager to manage the implementation of a new accounting package for its UK division.

The previous project manager created a hostile environment for the team involved in developing the new system.

How could the new project manager foster a more motivated team environment?

  1. By taking control of all meetings and inform the team only when a major issue needs dealing with.
  2. By recruiting a new team from outside the organisation that may be more motivated from the start.
  3. By adopting an autocratic management style that does not allow participation of the team.
  4. By adopting a participative style of management, recruiting a team with the correct skills, holding regular meetings and managing any conflict.

Answer(s): D



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