Question 1 asked you to evaluate the impact of the events on the attitudes and perceptions of the staff. While chapter one may seem not much relevant to the first question, it is in fact relevant to part two of the Question 1. Part two of Question 1 ask you to discuss what actions you would take to manage the negative attitudes and perceptions. You need to discuss some aspects of an effective manager, the qualities of an effective managers. These information were given in the past few posts from chapter one.
The post on psychological contract is also relevant to the perceptions and attitudes of the staff. Referencing is need here.

Effective Manager- What every organization wants from the head of department.

An effective manager is a manager whose work unit achieves high levels of task accomplishment and maintains itself as a capable workforce over time. Such managers need to be able to attain two key results for their work unit — the accomplishment of the quality and quantity of work (task performance) and the attraction and continuation of a capable workforce over time (human resource maintenance). Through the management process, managers would plan, organise, lead and control to achieve such results.