1. The Board of Directors of the firm Day News (a firm which manufactures newspaper) has recently sent its four senior managers on a training course to help find solutions for their problems. They complain that workers are not motivated and that they cannot achieve short-term consensus for any change they propose. At the training course, they were told the following: • mission statements help different people in a firm share a vision
• management should introduce change in spite of experiencing resistance
• one of the main causes of conflict in firms is poor communication

2. (i) Explain why workers for Day News might be scared of change.
(4)
(ii) What could the four senior managers do to minimise the fear that their employees show?
(4)
(Total 8 marks)

3. Top-taste is a medium-sized food manufacturing company. The company faces tough domestic competition. The Chief Executive Officer (CEO) and the Senior Management Team have considered both short-term and long-term options so as to reduce costs and improve efficiency. Top-taste is now considering a merger with a considerably larger overseas company that will inject much needed cash and expertise. In an emergency meeting called by the management the employees were told that:
• a large injection of money into advanced technology will enable Top-taste to move from “batch” to “flow” production. Work groups will have to be dismantled. • all employees have to take a 3% wage cut with immediate effect. • due to a restructuring and de-layering process, numbers of middle management will be cut by 5%. • some workers must take their annual leave immediately rather than when they choose. • future increases in wages will be directly linked to increases in productivity. The employees are currently very upset and considering their reaction.

4. (a) Use Maslow’s hierarchy of needs to