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Managing Performance Questions 161–165 (page: 18)

Updated On: 31-Jan-2026

X is a major energy company and has discovered substantial onshore shale gas reserves in a rural part of the country. With new "fracking" technology, underground gas production could be profitable, provide jobs for local people and boost the local economy. This would require the purchase of large areas of land, without which the projects could not proceed.

Although local landowners were generally pleased to sell land to X at high prices, the
reactions of local residents were less favourable as they were very concerned about the environmental impact.

Although their powers were limited, their influence on local councils was more significant. Every new fracking site was subject to strict planning controls and local councils controlled this process.

Using Mendelow's stakeholder management theory, which stakeholder group should be categorised as high interest/low power - with a strategy of "keep informed" (unless their power and influence start to increase)?

  1. Local residents
  2. Local landowners
  3. Local Councils
  4. Directors of X

Answer(s): A



Kotter and Schlesinger devised a theoretical framework which set out six inter-related approaches to deal with resistance to organisational change.

One approach involves management taking a simplistic and authoritarian approach by instructing staff to comply with changes. This compulsory method is derived from the formal authority that senior management possesses. Senior managers often have the right to do this based on employment laws and regulations.

Select this type of approach as identified by Kotter and Schlesinger.

  1. Power/coercion
  2. Participation
  3. Education and communication
  4. Manipulation and co-optation

Answer(s): A



An employee of a company has been asked to explain the difference between a Grievance and Disciplinary Action. The employee knows the definitions of both and, whilst they have two examples of actions which would result in Disciplinary Action, they can only think of one circumstance which may result in a Grievance, and this is Discrimination.

Which of the following could the employee use as an additional example of a Grievance?

  1. The employee is regularly absent.
  2. The employee feels that they have not been considered for promotion because of their age.
  3. The employee entered a restricted area.
  4. The employee feels that they have been given an unfair appraisal.

Answer(s): D



Verbal and non-verbal communications often take place at the same time.
Which of the following best describes the complementary nature of non-verbal communication?

  1. It replaces the verbal message
  2. It reinforces the verbal message
  3. It substitutes for verbal communication
  4. It confuses the verbal message being transmitted

Answer(s): B



According to Kurt Lewin, which of the following leadership styles was thought to result in the highest level of productivity and satisfaction?

  1. Authoritarian
  2. Laissez - faire
  3. Democratic
  4. Benevolent Authoritative

Answer(s): C



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