This is another question that you will likely be asked if you are being considered for a management or supervisory position, so you should take the time to prepare your answer in advance. Due to the fact that this question relates to your experience in terms of management, it is a fairly simple question. Your goal in answering this question should be to demonstrate that you are able to communicate information to your staff in an effective manner, even if that information is not likely to be received well.
Also, keep in mind that the way you choose to communicate information could very well be based on that particular situation. For example, the way that you respond in this situation might depend upon whether you are sharing the information with a group or with an individual. It is critical that you include in your answer your ability to recognize the perspectives of the staff when relaying information, particularly if the information to be shared is bad news.
In the event that you have not had the experience of communicating bad news to your staff in the past, you will need to be somewhat more creative in framing your answer to this question. Keep in mind the principles that were described above and consider how you would approach this situation based on those principles. If you have not had any actual experience in this regard you should not simply indicate that and leave your answer without going on to describe how you plan to handle the situation if it should arise in the future. Elaborating on the topic even if you do not have any actual prior experience is a good way to show that you have given the matter careful consideration and also that you are a forward thinker. It can also be good preparation for the future to consider how you would respond in this type of situation. If you are involved in management there is likely to come a time at some point where you very well may need to relate bad news so giving thought to how you will handle that type of situation now will ensure you are well prepared.