CBSE Class 12 Business Studies Directing Assignment

Meaning
Directing as a function of management, refers to the process of instructing, guiding counselling, motivating and leading people in the organisation to achieve its objectives. It does not mean only instructions but also include supervising the employees when they are performing the job, motivating them to perform more efficiently and leading them towards the achievement of organisational goal.

Features :

1. Directing initiate action : The other functions of management prepare a setting for action, but directing initiates action in the organisation.

2. Directing takes place at every level of Management :- Every manager from top executive to supervisor performs the function of directing.

3. Directing is a continous process of supervision, communication, leadership and motivation, It takes place throughout the life of the organisation.

4. Directing flows from top to bottom :- It is first initiated at the top level and flows to the bottom through organisational hierarchy.

Importance :
1. Initiates Action : It helps to initiate action by people in the organisation towards attainment of desired objectives. The employees start working only when they get instructions and directions from their superiors. It is the directing function which starts actual work to convert plans into 
results.

2. Integrate Employee s Efforts :- All the activities of the oranisation are interrelated so it in necessary to coordinate all the activities. It integrates the activities of subordinates by supervision, guidance and counselling.

3. Means of motivation - It motivates the subordinates to work efficiently and to contribute their maximum efforts towards the achievement of organisational goals.

4. Facilitates change :- Employees often resist changes due to fear of adverse effects on their employment and promotion. Directing facilitate adjustment in the organisation to cope with changes in the environment.

5. Stability and Balance in the organisation :- It helps to achieve balance between individual interests of employees and organisational interests.

Principles of Directing :-

1. Maximum Individual Contribution : - Directing techniques must help every individual in the organisation to contribute his maximum potential for achievement of organisational objectives.

2. Harmony of objectives - The objectives of individual and organisation must be in harmony with each other. But good directing should provide harmony by convincing the employees that organisational objectives are in their own interest.

3. Unity of Command :- An individual or subordinate in the organisation should receive instructions from one superior only otherwise it creates confusion conflict and disorder in the organisation.

4. Appropriateness of Direction Technique : According to this principle the technique like motivation, supervision, communication and leadership should be appropriate - according to the attitude and need of the employees.

5. Managerial Communication : The two way flow of information is the most effective means of securing cooperation of the subordinates because it provides them an opportunity to express their feelings.

6. Use of Informal organisation :- An informal organisation exist within formal organisation structure. So managers must make use of informal structure also for getting correct and real feed back.

7. Leadership - A manager by becoming a good leader can make direction effective with the trust and confidence of his subordinates.

8. Follow through : Mere giving of an order is not sufficient managers should follow it up by reviewing continuously.

Elements of Direction 

1. Supervision - It means observing the subordinates at work to see that they are working in according with plans and to help them in solving their problems. The important thing in supervision is it involves face to face contact between superior and subordinates. Supervisor s position is immediately above the worker.

Importance of Supervision / Role of a Supervisor

1. Link between workers and management because the supervisor explains management policies to worker and brings workers problems to the notice of the management.

2. Ensures issuing Instructions : To make sure that the instructions are communicated to each and every employee.

3. Facilities Control : - Control means match between actual and planned output. It ensures checking on the methods in use and progress of work according to planned schedule.

4. Maintainence of Discipline : The strict supervision and guidance of supervisor encourages the employees and workers to be more disciplined in the activities.

5. Feedback - The supervisors are directly dealing with the subordinates, As a result feedback in the form of suggestions, grievances keeps coming to the management.

6. Improved Motivation - A supervisor with good leadership qualities can build up high morale among workers.

7. Optimum utilisation of resources All the activities are under the observation of supervisor so less wastages and optimum utilisation of resources is possible.

Motivations :-

Meaning :- It is the process of stimulating people to act to their best ability to accomplish desired goals. It depends upon satisfying needs of people.

Features :

1. Psychological phonomenon - It is personal and internal feelings which arises from the needs and wants of a person.

2. Goal Directed Behaviour - It includes people to behave in such a manner so that they can achieve their goal.

3. Motivation can be either positive or Negative - Positive motivation means inspiring people to work better and appreciating a work that is well done. Negative motivation means forcing people to work by threatening or punishing them.

4. Complex Process :- It is a complex and difficult process. Individuals differ in their needs and wants and moreover human needs change from time to time.

Motivation Process -

It is based on human needs.

Unsatisfied Needs

Tension

Drives

Search Behaviour

Satisfied Need

Reduction of Tension

An Unsatisfied needs of an individual creates tension which stimulates his or her drives. These drives generate a search behaviour to satisfy such need. If such need is satisfied, the individual is relieved of tension.

Importance -

1. Achievement of Organisational Goal : Motivation puts human resources into action by satisfying their needs through appropriate rewards.
Motivated employees cooperate and contribute their maximum efforts towards the organisational goals.

2. Higher Efficiency of Employees - Depends upon their abilities and willingness to work hard. It bridges the gap between the ability to work and willingness to work and willingness always improves efficiency.

3. Reduction in resistance to change :- It helps to overcome resistance tochange. 

4. Stability in workforce - It brings confidence in employees and also improve their loyality and commitment towards the organisation. As a result the rates of labour absenteeism and labour turnover reduce.

5. Optimum Utilisation of Resources - The motivated workers would handle machines and materials properly. This would ensure optimum utilisation of resources and reduction of wastage.
Financial and Non-Fi- nancial Incentives Incentive means all measures which are used to motivate people to improve performance. 

Maslow s Need Hierarchy Theory of Motivation :- Maslow s Theory focuses on the needs as the basis for motivation 

Leadership -
Leadership is the activity of influencing people to strive willingly for mutual objectives. Managers at all levels are expected to the leaders of their subordinates.

Features :-
1. Influence behaviour : It indicates ability of an individual to influence others.
2. Interpersonal relations : It tries to bring change in the behaviour of others.
3. Common goals : It is exercised to achieve common goals of the organisation.
4. Contnuous process : It is a continous process.
5. Situational : There a no particular style of leadership it is related to particular situation.

Importance :-
1. Help in guiding and inspiring employees.
2. Creates confidence - by recognising the Quality and capabilities of individuals.
3. Handles conflicts effectively and does not allow adverse effects resulting from the conflics.
4. Provides Training to Subordinates .
5. Secures cooperation of members of organisation
6. Inspires productivity
7. Improves job satisfaction
8. Achievement of organisational goals
9. Introducing required changes.

Qualities of a Good Leader
1. Physical Features - Health and endurance help a leader to work hard which inspires others also to work with same spirit.
2. Knowledge - A leader must be able to examine every problem in the right direction.
3. Integrity - He should be a model to others regarding his ethics and values.
4. Initiative - He should not wait for opportunities come to his way rather he should grab the opportunities.
5. Motivation skills - To understand the needs of people and motivate them through satisfying their needs.
6. Communication skills : A leader must be a good communicator.
Communication - It is transfer of information from the sender to the receiver with the information being understood by the receiver.

Elements of Communication Process -
1. Sender - Who conveys his thoughts or ideas
2. Message - Ideas, feelings, suggestions, order etc.
3. Encoding - Converting the message into communication symbols such as words / pictures etc.
4. Media - Path/ Channel through which encoded message is transmitted to receiver e.g., face to face, phone call, internet etc.
5. Decoding - Converting encoded symbols of the sender.
6. Receiver - Who receives communication of the sender.
7. Feed back - All those action of receiver indicating that he has received and understood message of sender.
8. Noise - Some obstruction or hindrance to communication like poor telephone connection, inattentive receiver.

Importance of Communication
1. Facilitates Coordination - between interrelated departments and sections thus creating a unity of purpose and action.
2. Provides data necessary for decision makings - When information is effectively and efficiently communicated to management.
3. Increases Managerial Ef ficiency - By Conveying the goals, targets, instructions.
4. Promotes cooperation and Industrial Peace - The two way communication promotes cooperation and mutual understanding between the management and workers.
5. Establishes effective leadership - Effective communication helps to influence subordinates - while influencing leader should posses good communication skills.
Formal Communication - refer to official communication which takes place following the chain of command. Classification of formal communication -

1. Vertical communication - Flows vertically i.e., upwards or downwards through formal channels
i) Downward Communication - Higher to lower level like plans, policies, rules etc.
ii) Upward Communication - Subordinate to superior like suggestions, grievances, reports etc.

2. Horizontal / lateral Communication - between persons holding positions at the same level of ther organisation e.g., production manager may contact marketing manager about product design, quality etc.
Communication Net works of a Formal Communication. 

Informal Communication : Communication that takes place without following the formal lines of communication is said to be internal communication. There is no fixed direction or path for the flow of information.
Grapevine or Informal Communication Networks
1. Single Strand - Each person communicates with the other in sequence.
2. Gossip - Each person communicates with all on non-selective basis.
3. Probability - The individual communicates randomly with other individual.
4. Cluster - the individual communicates with only those people whom he trusts.

Difference between Formal & Informal Communicationģ (tbl) 

Basis	Formal communication	Internal communication
1. Meaning	within the official chain of command	Between individuals and groups which are not officially recognised.
2. Channel	Through a definite path	No definite path
3. Speed	Slow - because all information has to pass through an established through an established chain of command	Very fast - Cuts across all the official channels.
4. Nature	More rigid and cannot be modified	Flexible and varies from individual to individual.
5. Expression	It is mostly expressed in written form.	It mostly tends to be oral

Barriers to Effective Communication -
1. Semantic Barriers - Concerned with problems and obstructions in the process of encoding or decoding of message into words or impressions Semantic barriers are as follows.
1. Badly expressed message
2. Symbols with different meanings.
3. Faulty Translations.
4. Unclarified assumptions - Subject to different interpretations.
5. Technical Targon - Technical words may not be understood by the workers.

Psychological Barriers -
The state of mind of both sender and receiver affect the process of communication. Psychological barriers are as follows.
1 Premature Evaluation - Judgement before listening.
2. Lack of attension.
3. Loss by transmission and Poor Retention - When oral communication passes through various levels - destroy the structure of the message.
4. Distrust - If the parties do not believe each other.

Organisational Barriers :-
Factor related to organisation structure.
1. Organisational Policy
2. Rules and regulations.
3. Status.
4. Complexity in organisation structure.

Personal Barriers - of superiors and subordinates
1. Fear of challenge to authority.
2. Lack of confidence of superior on his subordinates.
3. Unwillingness to communicate.
4. Lack of Proper incentives.

Improving Communication Effectiveness.
1. Clarify the ideas before communication.
2. Communicate according to the needs of receiver.
3. Consult others before communicating.
4. Be aware of language, tone and content of message.
5. Ensure proper feedback.
6. Follow up communication.
7. Be a good listner.

Notes Class 12 Business Studies Controlling

DIRECTING
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.

Features of Directing
1. Directing initiates actions.
2. Directing takes place at every level of management.
3. Directing is a continuous process.
4. Directing flows from top to bottom.

Importance of Directing
1. Directing helps to initiate action by people in the organisation towards attainment of desired objectives .
2. Directing integrates employees efforts with the organisational objectives .
3. Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership .
4. Directing facilitates introduction of needed changes in the organisation .
5. Directing helps to achieve balance among various groups, activities and departments

Elements of Directing
1.Motivation
2. Leadership
3. Communication

MOTIVATION
Motivation is the process of making subordinates to act in a desired manner to achieve certain organisational goals.

Maslow’s Theory of Motivation
His theory is based on five types of needs-
1.Basic Physiological needs: Hunger, shelter, clothing, sleep etc.
2. Safety/Security needs: Job security , stability of income , pension plans etc.
3. Affiliation /Belonging needs: Affection ,sense of belongingness, acceptance and friendship .
4. Esteem needs:  Self respect, autonomy status, recognition and attention .
5. Self-actualisation needs: Growth, self-fulfilment and achievement of goals.

Assumptions of Maslow’s Theory
1. People’s behaviour is based on their needs.
2. People’s needs are in hierarchical order, starting from basic needs to other higher level needs.
3. A satisfied need can no longer motivate a person.
4. A person moves to the next higher level of the hierarchy only when the lower need is satisfied.

To motivate employees to perform better in the organisation two types of incentives are given-

Financial and Non- Financial Incentives
Financial Incentives or monetary incentives are those which can be expressed in terms of money. Types of financial incentives are-
1. Pay and allowances: It includes basic pay, dearness allowance and other allowances. Salary system consists of regular increments in the pay every year and enhancement of allowances from time-to-time.
2. Productivity linked wage incentives: Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.
3. Bonus: Bonus is an incentive offered over and above the wages/salary to the employees.
4. Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of the organisation. increase in profits.
5. Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price.
6. Retirement Benefits: Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement.
7. Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children etc. over and above the salary.

Non-financial incentives
Non-financial incentives are those incentives which cannot be expressed in terms of money and satisfies the emotional and psychological needs of employees. Types of non-financial incentives are-
1. Status: In the organisational context, status means ranking of positions in the organisation. Psychological, social and esteem needs of an individual are satisfied by status given to their job.
2. Organisational Climate: Some of these characteristics are–individual autonomy, reward orientation, consideration to employee risk-tasking etc.,
3. Career Advancement Opportunity: Every individual wants to grow to the higher level in the organisation. Managers should provide opportunity to employees to improve their skills and be promoted to the higher level jobs.
4. Job Enrichment: Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility.
5. Employee Recognition programmes: Some examples of employee recognition are:
(i) Congratulating the employee for good performance.
(ii) Displaying on the notice board or in the company news letter about the achievement of employee.
(iii) Installing award or certificate for best performance.
(iv) Distributing mementos, complimentary like T-shirts in recognition of employee services.
(v) Rewarding an employee for giving valuable suggestions.
6. Job security: Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal.
7. Employee participation: It means involving employees in decision making of the issues related to them.
8. Employee Empowerment: Empowerment means giving more autonomy and powers to subordinates.

LEADERSHIP
Leadership is the activity of influencing people to strive willingly for group objectives.

Leadership Styles
1. Autocratic or Authoritative Leadership style: In this style the leader takes all the decisions himself without consulting his subordinates.
2. Democratic or Participative Leadership style: In this style the leader takes all the decisions after consulting his subordinates.
3. Laissez Faire or Free reign Leadership style: In this style the leader only provides the resources to his subordinates and they are free to work independently.

COMMUNICATION
Communication is transfer of information from sender to the receiver with the information being understood by the receiver.

Types of communication:
1. Formal Communication: Communication which flows through official channels in the organisation is called Formal Communication.
2. Informal Communication: Communication that takes place without following the formal lines of communication is called Informal Communication.

BARRIERS TO COMMUNICATION

I Semantic barriers: These are language and vocabulary related barriers. Types of Semantic barriers are-
1. Badly expressed message:  These badly expressed messages may be an account of inadequate vocabulary, usage of wrong words, omission of needed words etc.
2. Symbols with different meanings: A word may have several meanings. Receiver has to perceive one such meaning for the word used by communicator. Wrong perception leads to communication problems.
3. Faulty translations: Sometimes the communications originally drafted in one language (e.g., English) need to be translated to the language understandable to workers (e.g., Hindi). If the translator is not proficient with both the languages, mistakes may creep in causing different meanings to the communication.
4. Unclarified assumptions: Some communications may have certain assumptions which are subject to different interpretations.
5. Technical jargon: It is usually found that specialists use technical jargon while explaining to persons who are not specialists in the concerned field. Therefore, they may not understand the actual meaning of many such words.
6. Body language and gesture decoding: Every movement of body communicates some meaning.If there is no match between what is said and what is expressed in body movements, communications may be wrongly perceived.

II Psychological barriers: These type of barriers are related to the state of mind of both sender and receiver of communication. Some of the psychological barriers are:
1. Premature evaluation: Sometimes people evaluate the meaning of message before the sender completes his message. Such premature evaluation may be due to pre-conceived notions or prejudices against the communication.
2. Lack of attention: The pre-occupied mind of receiver and the resultant non-listening of message acts as a major psychological barrier.
3. Loss by transmission and poor retention: When communication passes through various levels, successive transmissions of the message results in loss of, or transmission of inaccurate information. Usually people cannot retain the information for a long time if they are inattentive or not interested.
4. Distrust: Distrust between communicator and communicate acts as a barrier. If the parties do not believe each other, they cannot understand each others message in its original sense.

III Organisational barriers: The factors related to organisation structure, authority relationships, rules and regulations may, sometimes, act as barriers to effective communication. Some of these barriers are:
1. Organisational policy: If the organisational policy, explicit or implicit, is not supportive to free flow of communication, it may hamper effectiveness of communications.
2. Rules and regulations: Rigid rules and cumbersome procedures may be a hurdle to communication.
3. Status: A status conscious manager also may not allow his subordinates to express their feelings freely.
4. Complexity in organisation structure: In an organisation where there are number of managerial levels, communication gets delayed and distorted as number of filtering points are more.
5. Organisational facilities: If facilities for smooth, clear and timely communications are not provided communications may be hampered. Facilities like frequent meetings, suggestion box, complaint box, social and cultural gathering, transparency in operations etc., will encourage free flow of communication. Lack of these facilities may create communication problems.

IV Personal barriers: The personal factors of both sender and receiver may exert influence on effective communication. Some of the personal barriers of superiors and subordinates are mentioned below:
1. Fear of challenge to authority: If a superior perceives that a particular communication may adversely affect his authority, he or she may withhold or suppress such communication.
2. Lack of confidence of superior on his subordinates: If superiors do not have confidence on the competency of their subordinates, they may not seek their advice or opinions.
3. Unwillingness to communicate: Sometimes, subordinates may not be prepared to communicate with their superiors, if they perceive that it may adversely affect their interests.
4. Lack of proper incentives: If there is no motivation or incentive for communication, subordinates may not take initiative to communicate.

HOW TO OVERCOME BARRIERS?
1. Clarify the ideas before communication: The entire problem should be studied in depth, analysed and stated in such a manner that is clearly conveyed to subordinates.
2. Communicate according to the needs of receiver: Manager should adjust his communication according to the education and understanding levels of subordinates.
3. Consult others before communicating: Before actually communicating the message, it is better to involve others in developing a plan for communication.
4. Be aware of languages, tone and content of message: The contents of the message, tone, language used, manner in which the message is to be communicated are the important aspects of effective communication.
5. Convey things of help and value to listeners: While conveying message to others, it is better to know the interests and needs of the people with whom you are communicating.
6. Ensure proper feedback: The communicator may ensure the success of communication by asking questions regarding the message conveyed.
7. Be a good listener: Manager should be a good listener. Patient and attentive listening solves half of the problems.

Important Questions for NCERT Class 12 Business Studies Directing

Question. Directing _________________-
a. Primary function of management Initiates
b. Initiates action
c. Recruits and selects employees
d. Identifies and groups the activities.

Answer : B

Question. These needs are most basic in the hierarchy of motivation theory and correspond to primary needs
a. self actualization needs
b. basic physiological needs
c. security needs
d. belonging needs

Answer : B

Question._________ Is the process of guiding the efforts of employees to accomplish the desired goal
a. Supervision
b. Directing
c. Controlling
d. Motivating

Answer : A

Question. Which of the following is not an assumption of Maslow’s theory
a. People behaviour is not based on their needs
b. satisfaction of such needs influences their behaviour
c. A satisfied need no longer motivate a person only the next higher level need can motivate him
d. A person moves to the next higher level of Hierarchy only when the lower-level need is satisfied.

Answer : A

Question. ____________Is the process of influencing the behaviour of people making them strive voluntarily towards achievement of goals.
a. Motivation
b. Communication
c. leadership
d. directing

Answer : C

Question. While other functions prepare a setting for action name the function that initiate the action in the organisation.
a. Planning
b. Organising
c. Staffing
d. directing

Answer : D

Question. The communication network in which all subordinates under a superior communicate through him only is is
a. Single chain
b. Inverted V
c. Wheel
d Free Flow

Answer : C

Question. Respect and recognition is part of ____________-
a. Psychological need
b. social need
c. safety and security need
d. Esteem need

Answer : D

Question. Which of the following is a financial incentive?
a. Promotion
b. stock option
c. job security
d. Employee participation

Answer : B

Question. Directing is necessary at the ________ level of management.
(a) Top
(b) Lower
(c) Middle
(d) All

Answer : D

Question. ________ is not included in Directing.
(a) Planning
(b) Leadership
(c) Communication
(d) Motivation

Answer : A

Question. In supervision there is a ________ relationship between the supervisor and the subordinates.
(a) Distant
(b) Close
(c) Face to Face
(d) Almost nothing (Nil)

Answer : C

Question. A supervision performs role of ________ .
(a) As a Key Man
(b) As a Middle Man
(c) As a Human Relation Specialist
(d) All the above

Answer : D

Question. ________ Communication is also called Grapevine Communication.
(a) Written
(b) Informal
(c) Formal
(d) Oral

Answer : B

Question. ‘Wrong interpretation of message’ - what type of communication barrier is it?
(a) Semantic
(b) Emotional
(c) Organisational
(d) Personal

Answer : A

Question. Who of the following ensures that the work is progressing at the desired speed or not?
(a) Planning
(b) Organising
(c) Communication
(d) Supervision

Answer : 10

Question. The purpose of motivation is that process which creates ________ among the people to achieve desired objectives.
(a) Competition
(b) Excitement
(c) Conflict
(d) Cooperation

Answer : B

Question. Which of the following is a financial incentive?
(a) Promotion
(b) Stock Incentive
(c) Job Security
(d) Employee Participation

Answer :  B

Question. The communication network in which all subordinates under a supervisor communicate through supervisor only is:
(a) Single chain
(b) Inverted V
(c) Wheel
(d) Free flow

Answer :  C

Question. The highest-level need in the need Hierarchy of Abraham Maslow:
(a) Belongingness need
(b) Safety need
(c) Prestige need
(d) Self-actualisation needs

Answer : D

Question. Which of the following is not a feature of leadership?
(a) It shows ability of an individual to influence others.
(b) It leads to achievement of organisational goals.
(c) Leadership is one-time process.
(d) It leads to desired change in the organisation.

Answer : C

Question. .___ is the process of stimulating people to engage in goal-directed behaviour.
(a) Communication
(b) Motivation
(c) Directing
(d) None of these

Answer : B

Question. The channel of communication which is transmitted through informal channels is called ___
(a) Horizontal communication
(b) Formal communication
(c) Grapevine
(d) Gang plank

Answer : C

Question. Formal communication may take place between
(a) Superior and subordinate
(b) Subordinate and superior
(c) Two managers at the same level
(d) All of the above

Answer : D

Question. Directing flows in ___ direction.
(a) Upward
(b) Downward
(c) Diagonal
(d) Both (a) and (c)

Answer : B

Question. Directing takes place at ___ levels of management.
(a) Top
(b) Middle
(c) Lower
(d) All

Answer : D

Question. ___ is the process of converting the encoded message into language and understanding the message.
(a) Encoding
(b) Decoding
(c) Coding
(d) Both (b) and (c)

Answer : B

Question. Safety from illness, accident, fire, etc. is included in
(a) Physical security
(b) Economic security
(c) Social security
(d) None of the above

Answer : A

Question. The communication gap due to size and complexity of organisation’s structure comes under the following category.
(a) Semantic Barrier
(b) Psychological Barrier
(c) Organisational Barrier
(d) Personal Barrier

Answer : C

Question. According to Maslow, how many level of needs are there in every human being?
(a) 3
(b) 5
(c) 4
(d) 6

Answer : B

Question. Respect and recognition is part of
(a) Physiological need
(b) Social need
(c) Safety Security need
(d) Esteem need

Answer : D

Question. Informal organisation and informal communication tries to fulfil
(a) Physiological need
(b) Social need
(c) Safety security nee
(d) Self-a actualizations need

Answer : B

 

Fill in the blanks

1. A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts.

2. Leader provides training to their subordinates.

3. Leader persuades, clarifies and inspires people to accept changes whole heartedly.

4. There are many theories of leadership behavior, and styles.

5. The most popular classification of leadership styles is based on the use of authority. 

6. A democratic leader will develop action plans and makes decisions in consultation with his subordinates

7. Leadership is a key factor in making any organisation successful. 

8. Leadership influences the behavior of people and make them to positively contribute their energies for the benefit of  organisation

9. In autocratic leadership style only one way communication is done with subordinates. 

10. There are three basic styles of leadership i.e. autocratic, democratic and lissez faire

11. Motivation is the process of stimulating people to action to accomplish desired goal.

12. Motivator is the technique used to motivate people in an organization.

13. Maslow’s need hierarchy theory is considered fundamental to understanding of motivation.

14. Financial incentive refers to incentive which is in direct monetary form.

15. The emphasis of non-financial incentive is to provide psychological and emotional satisfaction rather than money driven satisfaction.

 

Short answer type questions

Question. Such leaders does not believe in the use of power unless it is absolutely essential. They give high degree of freedom to the followers”. Identify the type of leadership .Explain other two leadership styles.
Answer : Laissez faire or free rein leader. Other two styles of leadership are Democratic leadership and Autocratic leadership.

Question. What is meant by financial incentives? State any two financial incentives.
Answer : Financial incentives refer to incentives which are in direct monetary form and serves to motivate people for better performance.
Two financial incentives are:
i. Pay and allowances: Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowance and other allowances.
ii. Productivity linked wage incentives: Many wage incentives are linked with the increase in productivity at individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.

Question. Give any four differences between formal and Informal Communication.
Answer : 1. Formal communication takes place through official Channel. Informal communication takes place between individuals and groups which are not officially recognised.
2. formal communication is rigid and informal communication is flexible
3.Formal communication serves the needs of the organisation and informal communication serves individual needs.
4. Formal communication is mostly inwritten form . Informal communication mostly tends to be oral.

Question. Define the terms ‘motive’, ‘motivation’ and ‘motivator’. 
Answer : i. Motive: A motive is an inner state that energizes, activates or moves and directs behaviour towards goals. Motives arise out of the needs of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such restlessness.
ii. Motivation: Motivation is the process of stimulating people to action to accomplish desired goals. 
Motivation depends upon satisfying needs of people.
iii. Motivator: Motivator is the technique used to motivate people in an organisation. Managers use diverse motivators like pay, bonus, promotion, recognition, praise, responsibility etc., in the organisation to influence people to contribute their best.

Question. “Managerial functions cannot be carried out without an efficient system of communication.” Do you agree? Give any three reasons in support of your answer.
Answer : Yes, I agree with this statement.
Communication is important because of the following reasons.
i. Communication facilitates planning in a number of ways
ii. Communication helps management in arriving at vital decisions
iii .Communication is necessary in creating unity of action of action

Question. State any four importance's of directing. 
Answer : a. Direction initiates action
b. Directing integrates employees efforts
c. Directing is a means of motivation
d. Directing brings stability and balance in the organisation.

 

Long Answer type Questions 

Question. Explain Maslow”s Need Hierarchy theory of Motivation? 
Answer : According to A braham Maslow within every human being there exist a hierarchy of 5 needs;
Basic physiological needs, safety /security needs, affiliation/belonging needs,. Esteem needs self actualization needs.
Assumptions:
1. People's behaviour is based on their needs satisfaction of such needs influences their behaviour.
2. People needs are in hierarchical order starting from basic needs to other higher level need .
3. A satisfied need can no longer motivate a person. only next higher level need can motivate him
4. A person moves to the next higher level of the hierarchy only when the lower-level need is.satisfied

Question. Chandana is the production manager of of Stars India Ltd, manufacturing and exporting Steel During the year 2019-20 the company could not meet its production targets. The chief executive of the company constituted a committee to find out the reason and give recommendation, So that the production target could be met in the future . The committee found out that there are problems due to communication. Stars India Ltd, had rigid rules and would insist on communication through prescribed channels which led to delays. The company also had a number of managerial level causing for the delay and distorted communication. Moreover the production manager Chandana was taking rudely that quite often offended the sentiments of the workers, Chandana and the workers did not believe in each other and so could not understand each other's message in the original sense .
(a)Identify and give the meaning of the type of communication barrier discussed above.
(b)State the recommendation that might have been given by the committee to improve communication effectiveness.
Quoting, lines from the above, state two communication barriers under each of the time identified in in part a because of which star India Limited could not meet its production target
Answer : (a) Organisational barrier
Psychological barrier
(b) Be aware of tones, language and content of the message, Be a good listener
(c )Star India Ltd had rigid rules…..
Delays communication
Chandana and workers do not believe………..
Distrust between sender and receiver

Question. Directing is the heart of the management process. Do you agree? Give any four reasons in support of your answer.
Answer : Yes, I do agree with this statement. Directing may be regarded as the heart of the management process; Its importance may be explained under the following points
(i) Initiates action Directing helps to initiate action by people in the organisation towards attainment of desired objectives, e.g. if a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help workers to achieve work targets given to them.
(ii) Integrates employees’ efforts Directing integrates employees’ efforts in the organisation in
such a way that every individual effort contributes to the attainment of organisational objectives,
(ii) Integrates employees’ efforts Directing integrates employees’ efforts in the organisation in such a way that every individual effort contributes to the attainment of organisational objectives,

Question. Explain Different Elements of communication process.
Answer : The process of communication involves elements like source, encoding, media/ channel receiver, decoding, noise and feedback
1. Sentre means person who conveys his thoughts or ideas to the receiver.
2. message is the content of Ideas, feeling, suggestions, order etc intended to be communicated
3. Encoding is the process of converting the message into communication symbols such as words, pictures, gestures etc.
4. Media is the path through which encoded message is transmitted.
5. Decoding is the process of converting encoded symbols of the sender.
6. Receiver is the person who receives communication of the sender
7. Feedback includes all those actions of the receiver indicating that he has received and understood message of the sender.
8. Noise means some obstruction or hindrances to communication.

Question. Three friends Ranju, Rana and Anish after completing their MBA from a reputed Business School at Mumbai were discussing about the type of organisation they would like to join Ranju was very clear that he would like to take up a government job as it gives stability about future income and work which will help him to work with greater Zeal. It will also provide him pension when he will retire from the service. Rana wanted to work in a company which has appropriate skill development plans for its employees and helps the employees to grow to higher levels in the organisation in addition to this the company should also provide facilities like housing medical aid etc. Anish said that he would prefer to work in an organisation which has the culture of individual autonomy is considerate to employees and provide the Employees with opportunity for personal growth and a meaningful work experience .
(1) Identify the various financial and non financial incentive discussed by the three friends in the above conversation.
(2) Explain three other non financial incentive which were not discussed by any one of them.
Answer : (a)Financial and non financial incentives discussed by the three friends in the above conversation are
financial incentives:
retirement benefits ,perquisites
non financial incentives:
job security ,career advancement opportunity, Organisational climate, status Other non financial incentives which were not discussed by any one of them job enrichment Employee recognition, Employee participation, Employee empowerment

Question. What is meant by communication? Explain how communication is an important function of management. 
Answer : Communication is the process of exchange of information between two or more persons to reach common understanding
Importance
1. Communication access basis of coordination
2. Communication helps in smooth working of an enterprise
3. Communication acts as a basis of decision making
4. Communication increases managerial efficiency
5. Communication promotes coordination and industrial piece

Important Questions for NCERT Class 12 Business Studies Directing

Question. Which element of directing is concerned with making subordinate to act in a desired manner to achieve certain organization goal?
(a) Leadership
(b) Motivation
(c) Communication
(d) Coordination 

Answer : B

Question. It is a process which moves the person to action and continues him in the course of action already initiated
(a) Coordination
(b) Communication
(c) Motivation
(d) Decentralisation 

Answer : C

Question. Directing is the ________ stage of management process.
(a) First
(b) Second
(c) Third
(d) Fourth

Answer : D

Question. The presence of more managerial levels - what type of communication barrier is it?
(a) Semantic
(b) Emotional
(c) Organisational
(d) Personal

Answer : C

Question. Which of the following is the personal communication barrier?
(a) Fear of challenge to authority
(b) Organisational Policies
(c) Unclarified Assumptions
(d) Premature Evaluation

Answer : A

Question. ________ is included under directing.
(a) Planning
(b) Organising
(c) Supervision
(d) Staffing

Answer : C

Question. Which of the following needs of the employees are satisfied by the nonfinancial motivation?
(a) Social
(b) Esteem
(c) Self-Actualisation
(d) All the above.

Answer : D

Question. The objective of leadership is to make use of ________ per cent of the ability of an individual.
(a) 40
(b) 50
(c) 80
(d) 100

Answer : D

Question. Which of the following is not an element of communication process?
(a) Decoding
(b) Communication
(c) Channel
(d) Receiver

Answer : B

Question. Grapevine is
(a) Formal communication
(b) Barrier to communication
(c) Lateral communication
(d) Informal communication

Answer : D

Question. Status comes under the following type of barriers
(a) Semantic barrier
(b) Organisational barrier
(c) Non-semantic barrier
(d) Psychological barrier

Answer : B

Fill in the blanks :

Question. Employee participation means involving employees in........... of the issues related to them.
Answer :  decision making

Question. ............ acts as an incentive when employees are in service in the organization.
Answer :  Retirement Benefits

Question. A ......... need can no longer motivate a person.
Answer :  satisfied 

Question. Bonus is an incentive offered over and above the ......... to the employees.
Answer :  wages/salary

Question. A joint Management committee is an example of ............., one of the non financial incentives.
Answer :  employees’ participation

Question. Directing abilities of manager mainly depends upon his ........... skills. 
Answer :  communication

Question. A one who conveys his thoughts or ideas in communication process is known as ...........
Answer :  sender

Question. The communication that follows the chain of command is known as  ............. communication.
Answer : formal 

Question. The form of communication that arises out of social interaction is .............
Answer :  informal communication

Question. Obstruction or hindrance to communication like poor telephone connection, inattentive receiver etc. are termed as .............
Answer :  Noise

Question. Path or channel through which encoded message is transmitted to receiver is called .........
Answer :  media

Question. Flow of information to superior to subordinate is ............ communication. 
Answer :  Downward 

Question. The network of informal communication is known as ...........
Answer :  Grapevine

Question. Spread of rumors is possible in ............ communication. 
Answer :  Informal 

Question. Converting encoded symbols of the sender is .............
Answer :  Decoding

True/False :

Question. Leadership is a complex phenomenon involving the leader, the followers and the situation. 
Answer : True

Question. The main reason for using the phrase “desirable opportunities” is a definition of leadership is to distinguish between leadership and management.
Answer : False

Question. Some managers may be effective leaders without ever having taken a course or training program in leadership. 
Answer : True

Question. Leadership is most associated with vision. 
Answer : True

Question. Lazzise faire is one of the style of leadership. 
Answer : True

Question. Participative type of leadership is also known as democratic style of leadership. 
Answer : True

Question. In autocratic style of leadership, the leader is dogmatic.
Answer : True

Question. Leadership is not a continuous process.
Answer : False

Question. Leadership never determine the ability of an individual to influence others.
Answer : False

Question. Leadership tries to bring change in the behavior of others. 
Answer : True

Question. Motivation is a simple process as the individuals are homogenous in their expectations, perceptions and reactions. 
Answer : False

Question. In promotion monetary aspects over-ride the non-monetary aspects. 
Answer : False

Question. Installing award or certificate for best performance is an example of Employee Recognition Programme.
Answer : True

Question. Stability of income is an example of Basic Physiological Needs. 
Answer : False 

Question. People’s needs are in hierarchical order, starting from basic needs to other higher level needs. 
Answer : True

Short Answer Type Questions :

Question. Define the terms ‘motive’, ‘motivation’ and ‘motivator’.
Answer : Motive is an inner state that energises, activates or move sand directs behaviour towards goals.
Motivation is the process of stimulating people to action to accomplish desired goals.
Motivator is the technique used to motivate people in an organisation like pay, bonus, promotion, recognition, praise, responsibility etc.

Question. Explain Maslow’s Need Hierarchy Theory.
Answer : Maslow’s need hierarchy was based on human needs. He felt that within every human
Being, there exists a hierarchy of five needs. These are:
(I) Basic Physiological Needs: Theseneeds are most basic in the hierarchy and corresponds to primary needs. Hunger, thirst, shelter, sleep and sex are some examples of these needs. In the organisational context, basic salary helps to satisfy these needs.
(ii) Safety/Security Needs:These needs provide security and protection from physical and emotional harm. Examples: job security, stability of income, Pension plans etc.,
(iii)Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship.
(iv) Esteem Needs: These include factors such as self-respect, autonomystatus, recognition and attention.
(v) Self Actualisation Needs:It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfilment and achievement of goals.

Question. What are financial incentives? Explain any three types of financial incentives.
Answer :  Financial incentives refer to the direct monetary benefits given to employees by an organisation with the objective of providing motivation to improve performance. The three financial incentives are: Salary and allowances: It is the most basic form of financial incentive. Regular increment in salaries and other allowances act as good motivation for employees. Performance-based incentives: Sometimes monetary incentives can be given based on the performance of employees. In other words, they can be suitably rewarded for good performance. This motivates workers to improve work efficiency. Bonus: Bonus refers to the monetary reward which is over and above the basic salary. It can be in the form of cash and gifts. It is given to employees in order to recognise their exemplary performance in the organisation.

Question. Give some example of "Noise” in the process of communication.
Answer :   Some examples of noise in the process of communication are:
(a) Ambiguous symbols that lead to faulty encoding.
(b) A poor telephone connection.
(c) An inattentive receiver.
(d) Faulty decoding (attaching wrong meanings to message).
(e) Prejudices obstructing the poor understanding of message.
(f) Gestures and postures that may distort the message.

Question. What is formal communication? State the merits and demerits of formal communication.
Answer :  Formal communication refers to official channels of communication (formal line of communication) designed in the organisational chart.
Merits:
i. Formal communication is systematic and ensures orderly flow of information.
ii. Source of information can be easily located.
iii. It is easy to fix responsibilities of different employees as there is proof for the information.
Demerits:
i. Information is conveyed or passed in impersonal manner.
ii. Although very systematic in passing information, it delays decision making.

Question. What are non-financial incentives? Explain any three types of non-financial incentives.
Answer :  Non-financial incentives are incentives which cater to the non-monetary needs of employees such as social and psychological needs. The three non-financial incentives are: Status or Position: Employees often require a rise in the status in terms of power and authority. It provides them psychological satisfaction. Organisational Climate: Various organisational characteristics such as employee freedom and recognition of performance play an important role in motivating employees. For example, if an employee’s work is recognised and praised, it would encourage him to further improve performance. Job enrichment: Challenging work endowed with greater responsibility and requiring higher knowledge and skill enhances the interest of employees. It provides employees prospects for personal growth. Thus, it proves to be a good source of motivation Job security: Employees need a certain degree of job security in the sense that they must be certain about their income in the future. This is would enable them to work with greater passion.

Question. What are the various types of leadership styles? Briefly explain.
Answer :   The various types of leadership styles are Autocratic Leadership, Democratic Leadership and Laissez Faire / Free-rein Leadership.
Autocratic (or Authoritative) Leadership: It is a leadership style where a leader has complete control over his subordinates and all the decisions are taken by himself without consulting the subordinates.
Democratic (or Participative) Leadership: It is a leadership style where the leader takes decisions in consultation with his subordinates and follows the opinion based on the majority.
Laissez faire (or Free-rein leader): It is a leadership style where subordinates take decisions and resolve issues themselves. are given a high degree of freedom to formulate their own objectives and ways to achieve them. This type of leader does not believe in the use of power unless it is absolutely essential.

Question. What are the elements of Directing?
Answer :  The elements of directing are i) supervision, ii) motivation, iii) leadership and iv) communication.