CBSE Class 12 Business Administration Business Comunication Notes

RECRUITMENT - MEANING AND SOURCES

The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening, in a timely and cost effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. It is the process of bringing together those who are offering jobs and those who are seeking jobs. Recruitment is a positive process where a pool of prospective employees is created and management select the right person for the right job from this pool. It provides a base for the selection process.

PROCESS OF RECRUITMENT :
i) Firstly it identify the different sources of employee supply
ii) To check their validity
iii) Selecting the most suitable source
iv) Inviting the applications from the prospective candidate for the vacancy.

Sources of recruitment :
Broadly, there are two main sources of recruitment
1) Internal sources of recruitment which means recruitment from within the organization.
2)External sources of recruitment means recruitment from outside the organization

1) Internal sources of recruitment which means recruitment from within the organization:
i) Transfer: it means shifting of employees from one job to another. There is no drastic change in the pay or status of the employees it generally remains the same.
ii) Promotion: it means shifting the employee to higher position with the change in the pay or status.
iii) Internal advertisement: it means appointing the employees from within the organization through advertisement.
iv) Lent services: it means employing the person for newly started plant in the organization.
v) Extension of services: it is extending the service of employees by recruiting them again.
vi) Absorption of trainees: those who come in the organization for training employing them.

2) External sources of recruitment mean recruitment from outside the organization:
i) Advertisement: it is a way to attract number of employees by giving advertisement in the newspaper.
ii) Casual callers: the good organizations have a list of casual callers also who apply them and the organization instead of giving new advertisement give a call to these casual callers.
iii) Employment exchange: it is a good source of recruitment where the candidates are called with the help of employment exchange.
iv) Educational institutions: here the company’s go to the educational institutions from where they select the suitable employees for the job.
v) Labor union: the organization may select the candidate from the labor union of the company to satisfy the labors also.
vi) Recommendation of employees: sometimes the employees working in the organization also suggest the name of suitable candidate for the appointment.
vii) Waiting lists: generally the organization s prepares the waiting lists of the employees.
Sometimes the selected candidates failed to join in that case the waiting list employees are called.
Thus the above said are the main sources of recruitment of the employees within the organization and outside the organization which are used by the organization to employ the
employees.

CONCEPT AND IMPORTANCE OF DIRECTING

While managing an enterprise, managers have to get things done through people. In order to be able to do so, they have to undertake many activities, like guide the people who work under them, inspire and lead them to achieve common objectives. An office manager, for instance, has to supervise the activities of his subordinates, i.e., typists, office assistants, dispatchers, accounts clerks, etc. He has to issue instructions to them and describe and illustrate the work and related activities. He has to tell them what to do, and how to do it. The office manager can plan, organise and appoint people, but he can not get things done, unless he assigns specific duties to his subordinates and motivates them to perform well. All these activities of a manager constitute the directing function.

Thus, directing is concerned with instructing, guiding, supervising and inspiring people in the organisation to achieve its objectives. It is the process of telling people what to do and seeing that they do it in the best possible manner. The directing function thus, involves:
• telling people what is to be done and explaining to them how to do it;
• issuing instructions and orders to subordinates to carryout their assignments as scheduled;
• supervising their activities;
• inspiring them to meet the mangers expectation and contribute towards the achievement of organisational objectives; and
• providing leadership.

Managers plan and take decisions. They organise to define the work and create suitable positions in the enterprise. People are employed to perform the jobs, but the actual work of
getting the job done comes under the directing function. Thus, directing is 'management in action'. It is through the exercise of this function that managers get things done through
people.

IMPORTANCE OF DIRECTING

Plans remain mere plans unless they are put into action. In the absence of direction, subordinates will have no idea as to what to do. They will probably not be inspired to complete the job satisfactorily. Implementation of plans is, thus, largely the concern of directing function. As a function of management, directing is useful in many ways.

• It guides and helps the subordinates to complete the given task properly and as per schedule.
• It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do them best.
• It helps in maintaining discipline and rewarding those who do well.
• Directing involves supervision, which is essential to make sure that work is performed according to the orders and instructions.

iMPORTANT PRINCIPLES OF DIRECTING:

(1) Principle of Maximum Individual Contribution:
According to this principle, management should adopt that directing policy through which the employees get motivated and give their maximum individual contribution for the achievement of organisational objective.

(2) Principle of Harmony of Objectives:
According to this principle, there must be full coordination between organisational and individual objectives. Employees work in an organisation with an objective to get better remuneration, promotion, etc. On the other hand, organisational goal can be to earn more profits and to increase market share.

Sometimes it is seen that there is a conflict between the objectives of both the parties, e.g.,
organisation wants that it should get a major share of profit whereas employees perceives that as they work directly on the job, so more profit must be shared among them in the form of bonus.

Management here must establish coordination between the objectives of both the parties/factors by adopting suitable method of direction.

(3) Principle of Unity of Command:
According to this principle, a subordinate should get directions from one officer at a time. If the subordinate gets directions from more than one officer, the subordinate will be unable to priorities his work. As a result, situation of confusion, conflict and disarrangement is created. By following this principle, effective direction takes place.

(4) Principle of Appropriateness of Direction Technique: 
According to this principle, appropriate direction techniques should be used, e.g., to supervise effectively, to provide able leadership, to adopt free communication and to motivate through right medium.

(5) Principle of Managerial Communication: 
According to this principle, it should be monitored by the management that the subordinates get the same meaning for what has been said. This simplifies the job of the subordinates and they need not go to the managers repeatedly for enquiring.

(6) Principle of Use of Informal Organisation: 
According to this principle, there must be a free flow of information between the seniors and the subordinates. The success of direction depends upon effective exchange of information to a great extent. Information should be given both through formal and informal mediums. Special attention should be given to the informal organisation. This strengthens the formal organisation.

(7) Principle of Leadership: 
According to this principle, while giving directions to the subordinates a good leadership must be provided by the managers. By this, subordinates get influenced by the managers. In this situation, subordinates act according to the wish of the managers.

(8) Principle of Follow Through:
According to this principle, it must be monitored by management as to what extent the policies framed and issued directions have been enforced. Thus, it must be seen whether the employees are following the management or not. If yes, then to what extent. As per this principle, the job of managers is not to sit idle after framing policies or issuing directions but to continuously take feedback. The advantage of this will be that if there is any problem in implementing a policy or a direction it can be removed then and there.

ELEMENT OF DIRECTING
It has been made clear in the nature of leading that it is not a single activity but a group of functions. On the same basis, the following functions are included in its scope: (1) Supervision, (2) Communication, (3) Leadership, and (4) Motivation.

(1) Supervision: It refers to monitor the progress of routine work of one’s subordinates and guiding them properly. Supervision is an important element of the directing function of management. Supervision has an important feature that face-to-face contact between the supervisor and his subordinate is a must. (iMAGE)

(2) Communication:
It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him understand them. A manager has to continuously tell his subordinates about what to do, how to do, and when to do various things. Also, it is very essential to know their reactions. To do all this it becomes essential to develop effective telecommunication facilities. Communication by developing mutual understanding inculcates a sense of cooperation which builds an environment of coordination in the organisation.

(3) Leadership:
It refers to influence others in a manner to do what the leader wants them to do. Leadership plays an important role in directing. Only through this quality, a manager can inculcate trust and zeal among his subordinates.

(4) Motivation:
It refers to that process which excites people to work for attainment of the desired objective. Among the various factors of production, it is only the human factor which is dynamic and provides mobility to other physical resources.

If the human resource goes static then other resources automatically turn immobile. Thus, it becomes essential to motivate the human resource to keep them dynamic, aware and eager to perform their duty. Both the monetary and non-monetary incentives are given to the employees for motivation.

SUPERVISION - CONCEPT AND ROLE
A variety of definitions for clinical supervision exist. Differences typically reflect aspects of the author’s discipline and training focus. Bernard and Goodyear (1998) offer this definition that has come to be accepted within the counseling profession: Supervision is an intervention that is provided by a senior member of a profession to a junior member or members of that same profession. This relationship is evaluative, extends over time, and has the simultaneous purposes of enhancing the professional functioning of the junior member(s), monitoring the quality of professional services offered to the clients she, he, or they see(s), and serving as a gatekeeper of those who are to enter the particular profession.

Within the definition, there is mention of several components of supervision:

Supervision is an intervention
There are unique competencies and skills involved in supervision that allow the supervisor to help the supervisee. Models of supervision exist that provide a framework for the process. In addition, supervisors incorporate various modes and interventions to facilitate supervisee development.

Awareness of these models, modes, and interventions will help the supervisee understand the underlying processes of supervision and therefore, be a more active participant in the supervision process. A dialogue can develop between supervisor and supervisee as a means to share personal styles and preferences for frameworks and interventions to be used in supervision.

Supervision is provided by a senior member of a profession
A clinical supervisor is more advanced, at least in some important ways, than the supervisee. During fieldwork experiences, supervisors typically include a course instructor and an individual clinical supervisor. Depending on the level of the fieldwork experience and the program, the clinical instructor may be the course instructor or other professor from the training program, a doctoral student from the training program, and/or a professional counselor affiliated with the site at which the student is engaged in the fieldwork experience. It is important that the supervisee understand the roles and expectations of each supervisor.

Supervision is a relationship that extends over time
The process of supervision occurs within the relationship established between the supervisor and supervisee. It is important to keep in mind that both the supervisor and supervisee contribute to the relationship and have responsibilities within the process. As assumption of supervision is that it will last long enough for some developmental progress of the supervisee. Supervision is differentiated from brief interactions (such as workshops), and consultation that, by definition, is time and session limited, although all of these interactions share common goals (e.g., training in a skill, clarification of process, regaining objectivity). The fact that supervision is ongoing allows for the relationship to grow and develop. The importance of the supervisory relationship has received much attention in supervision literature.

While not the sole determinate of the quality of supervision, the quality of the relationship between the supervisor and supervisee can add or detract from the experience. It is important that the “relationship” aspect of supervision not be overlooked or neglected.

The supervisor evaluates, monitors, and serves as a gatekeeper
In addition to enhancing the professional functioning of counselors, supervisors have an ethical and legal responsibility to monitor the quality of care that is being delivered to the supervisee’s clients. In order to enhance the professional functioning of the supervisee and assure quality of care, the supervisor constantly monitors and provides feedback regarding supervisee performance. This formative evaluation forms the basis of the work done in supervision. The supervisor also serves as a gatekeeper for those who want to enter the counseling profession. The supervisor is charged to evaluate the counselor based on work done with current clients, and to assess potential for working with future clients. As part of this role, supervisors formallyevaluate supervisees. These summative evaluations occur after there has been enough supervision to expect a certain degree of competence. For example, during fieldwork experiences, summative evaluations typically occur at the midpoint and end of semesters.

MOTIVATION - CONCEPT, MASLOW’S HIERARCHY OF NEEDS
Motivation is the driving force which help causes us to achieve goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in a basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion.

Motivation concepts
Intrinsic and extrinsic motivation
Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Research has found that it is usually associated with high educational achievement and enjoyment by students. Explanations of intrinsic motivation have been given in the context of Fritz Heider's attribution theory, Bandura's work on self-efficacy, and Deci and Ryan's cognitive evaluation theory (see self-determination theory). Students are likely to be intrinsically motivated if they:
• attribute their educational results to internal factors that they can control (e.g. the amount of effort they put in),
• believe they can be effective agents in reaching desired goals (i.e. the results are not determined by luck),
• are interested in mastering a topic, rather than just rote-learning to achieve good grades. 

Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives.

Social psychological research has indicated that extrinsic rewards can lead to overjustification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition and to children who received no extrinsic reward.

Self-determination theory proposes that extrinsic motivation can be internalised by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs.

Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a person may be highly intelligent according to a more conservative definition (as measured by many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Yale School of Management professor Victor Vroom's "expectancy theory" provides an account of when people will decide whether to exert self control to pursue a particular goal.

Drives and desires can be described as a deficiency or need that activates behavior that is aimed at a goal or an incentive. These are thought to originate within the individual and may not require external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger, which motivates a person to seek food; whereas more subtle drives might be the desire for praise and approval, which motivates a person to behave in a manner pleasing to others.

By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training animals by giving them treats when they perform a trick correctly. The treat motivates the animals to perform the trick consistently, even later when the treat is removed from the process.

MASLOW’S HIERARCHY OF NEEDS;

INCENTIVE AND ITS VARIOUS TYPES
The term ’incentive’ is not peculiar to economics alone, it is a general term used in many spheres of life. However, in economics, it is a very important word. In fact you can never study economics successfully without understanding what incentives are. One American economist says that economics in its entirety is a study of people’s response to incentives. Whether that statement is accurate or not is subject to one’s point of view, but what comes out clearly is the fact that incentives are truly central to the study of economics.

dictionary definition of an incentive is ‘something that motivates you to do something’. In economics one can say that an incentive is a benefit, reward, or cost that motivates an economic action. Human beings do things deliberately and purposefully, and, naturally, people expect to benefit from their own decisions and actions. Before someone decides to produce something and sell it to people, they should have taken time to think and decide that doing this will help them earn something. Likewise, before a consumer buys anything, they know (or at least they think) that they are going to benefit from the product. In strict sense, it is more than just the usual concepts or trade and economics, it is about human nature. No one does something for no reason. Not when they have to spend time and resources in doing so.

Types of incentives
Incentives can be grouped into four main categories, or types. These types of incentives apply both to economics and to other spheres of life.

Financial incentives
Perhaps in the modern times, financial incentives are more dominant. Before you get to business, you know that it is always about profit. Employment is all about salary and remuneration. It is true that sometimes people do voluntary jobs for some reasons other than financial ones. But ultimately, the main reason why human beings do business or work at all in modern days is money. It is this type of incentive that informs the idea of product promotions, where people are told that if they buy a certain product; they stand a chance of winning a certain amount of money.

Moral incentives Moral incentives motivate people to do things on the basis of right and wrong. People are encouraged to do certain action because morally, it is the right thing to do. Aspects of morality today are quite diverse, varying broadly from one society to the next, and it is practically impossible to define morals of society in general. Moral incentives therefore generally appeal to an individual’s own conscience.

Natural incentives
“What will happen if I do this?” We often ask ourselves. Humans are naturally curious creatures, and we do many things for no reason other than to find out what the consequences are.

Coercive incentives
Coercive investments emphasize on the consequences of not doing something, rather than the benefit of doing it.A good example is blackmail. You are warned to do something or risk being beaten up, or being reported to your seniors. That is a coercive incentive.

LEADERSHIP - CONCEPT; QUALITIES OF A GOOD LEADER
“Leadership is the art of leading others to deliberately create a result that wouldn’t have happened otherwise.”

The Characteristics of a Good Leader
What makes a good leader? Here are some of their most important characteristics:

Self-Awareness.
You have an intimate knowledge of your inner emotional state. You know your strengths and your weaknesses. You know when you’re working in flow and you know when you’re over worked. You know yourself, including your capabilities and your limitations, which allows you to push yourself to your maximum potential.

Self-Direction.
You’re able to direct yourself effectively and powerfully. You know how to get things done, how to organize tasks and how to avoid procrastination. You know how to generate energy for projects, to calm yourself when angered. You can make decisions quickly when necessary, but can also slow to consider all the options on the table.

Vision.
You’re working towards a goal that’s greater than yourself. It could be something small, like the success of the team, or a larger vision like world peace. Working towards a vision is far more inspiring than working towards personal gain.

Ability to Motivate.
Leaders don’t lead by telling people what they have to do. Instead, leaders cause people to want to help them. A key part of this is cultivating your own desire to help others. When others sense that you want to help them, they in turn want to help you.

Social Awareness.
Understanding social networks and key influencers in that social network is another key part of leadership. Who in the organization has the most clout, both officially and unofficially? Who moves the hearts of the group?

These are some of the most important characteristics of good leaders.

Emotional Intelligence and Leadership
Most of these traits tie directly into emotional intelligence (EQ). Leaders with high EQ are intrinsically more self-aware. They understand their mental processes and know how to direct themselves. They’re more in touch with what they’re deeply passionate about. They naturally care more for others and receive more compassion in return. They’re more socially in tune.

Leadership is more often than not about “soft skills” rather than hard skills. Yes, a leader who understands what drives the bottom line is valuable. Yet it’s the leader who can get others to perform at their best who ultimately creates winning organizations.

Very Short Answer type Questions

Question, Looking at the severe pandemic situation of Covid-19, the entire education system has adjusted itself with online teaching, online examination, developing creative way of teaching etc. Which point of importance of business environment does it reflect? Identify.
Answer : Coping with rapid changes

Question, Identify the dimension of environment in each of the following?
a) Banks have reduced interest rate on house loans.
b) Prohibition of alcohol to be advertised
Answer : a) Economic b) Legal

Question, Which of the following is an element of social environment?
a) Banking policy b) Consumer protection act c) Import export policy d) Composition of family
Answer : Composition of family

Question, Which component of business environment has banned the use of child labour in any area of work.
Answer : Legal

Question, Facebook, Twitter and WhatsApp is the result of--------
Answer : Technological environment

Question, Increase in the use of mobile phones and I-pods in place of paper and radio is an example of which component of business environment?
Answer : Technological environment

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