CBSE Class 12 Business Studies Directing Notes

CONCEPT MAPPING:

• Concept and importance
• Elements of Directing
-Supervision‐concept, functions of a supervisor.
- Motivation‐concept, Maslow’s hierarchy of need: Financial and non‐financial incentives.
-Leadership‐concept, styles‐authoritative, democratic and laissez faire.
- Communication‐ concept, formal and informal communication; barriers to ffective communication, how to overcome the barriers.

Meaning

Directing as a function of managment 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 employess when they are performing the job, motivating them to perform more efficiently and leadning them towards the achievement or 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 in a pervasive function or 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 hieraechy.

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. Integrats 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. Harmoney of objectives - The objectives of individual and organisation must be in harmony with each other. But good directing should provide narmony 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. 
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 contidence of his subordinates.

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.

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 communication 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. Maintences of Discipline : The strict supervision and guidance of super visor encourages the employees and workers to be more disciplinede 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.

Motivations :-
Meaning :- It is the process of stimulating people to act to their best abiity to accomplish desired goals. It depends upon satisfying needs of people.
Features :
1. Psychological phonamenon - 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. (Image)

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 appreapriate rewards motivated employees cooperated and contribute their maximum towards the organisational goals.

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

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

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 all reduced.

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-Financial Incentives - Incentive means all measures which are used to motivate people to improve performance. (Image 5)
Maslow’s Need Hierarchy Theory of Motivation :- Maslow’s Theory focuses on the needs as the basis for motivation (Image 5)
Leadership - Leadership is the activity of influencing people to strive willingly for grap objectives.

Features :- 1. It indicates ability of an individual to influence others.
2. It tries to bring change in the behaviour of others.
3. It is exercised to achieve common goals of the organisation.
4. It is a continous process.

Importance :- 1. Help in guiding and inspiring employees.
2. Creates confidence - by recognising the Quality and capabilities of individuals.
3. Handles conflic effectively and does not allow adverse effects resulting from the conflics.
4. Provides Training to Subordinates .

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 under the needs of people and motivate them through satisfying their needs. Communication - 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 receivers 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, in altertive 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 Efficiency - 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., upwords 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 when he trusts. Reference between Formal & Informal Communication (Image 9)

Barriers to Effective Communication -
1. Semantic Barriers - Concerned with problems and obstructions in the process of encoding or decoding of message into words or impresions semantic barriers are as follows.
1. Bodly expressed message
2. Symbols with differente 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 Pre mature Evaluation - Judgement before listening.
2. Lack of altertion.
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. Unwillingnessto 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.

Key Concepts in Nutshell

• Meaning of Directing: It refers to instructing, guiding, communicating and inspiring people in the organisation.

• Importance of Directing: (1). It initiates action. (2).It integrates employees’ efforts. (3)It is the means of motivation. (4)It facilitates implementing changes. (5)It creates balance in the organization.

• Elements of Directing: (1)Supervision (2)Communication (3)Leadership (4)Motivation

• Concept of Supervision: Supervision refers to monitoring the progress of work of one’s subordinates and guiding them properly.

• Functions of a Supervisor:(1) Facilitates control (2) Optimum utilization of resources(3) Maintenance of discipline (4) Feedback (5) Improves communication (6) Improves motivation

•Motivation-Motivation process of stimulating people to accomplish desired goals. It depends up on satisfying the needs of people.

• Maslow’s Hierarchy of Needs: ‐ According to Maslow, man does every work to satisfy his need. A man has various needs and their order can be determined. The needs of a human being serve as a motivation for him. On the basis of priority human needs can be divided into five parts (i) Physiological needs, (ii) Safety needs, (iii).Affiliation or social needs, (iv) Esteem needs and (v) Self‐actualization needs.

• Financial or Monetary Incentives: Financial incentives are those incentives which are evaluated in terms of money. These are helpful to satisfy Physiological and Safety Needs. It includes the following (i) Pay and allowances, (ii) Productivity‐linked wage Incentives, (iii) Bonus, (iv) Profit sharing, (v) Co‐partnership (iv) Suggestions, (vi) Retirement benefits, (vii) Perquisites.

• Nonfinancial or Nonmonetary Incentives: Non‐financial incentives are not directly related with money. These incentives help in the satisfaction of top hierarchy needs like social, esteem and self‐actualization. It includes the following (i).Status (ii) Organizational climate (iii) Career advancement opportunity (iv) Job enrichment (v) Employee recognition programmes (vi) Job security (vii) Employee participation (viii) Employee empowerment.

• Meaning of Leadership : It refers to influence others in a manner to do what the leaders wants them to do.

Leadership Styles:

I. Autocratic Leadership Style:

(a).Meaning: It refers to that leadership style in which the leader tends to run the show all by him‐self.

(b).Characteristics:
(i) Centralized Authority,
(ii) Single –man Decision,
(iii) Wrong Belief Regarding Employee,
(iv) Only Downward Communications.

(c). Advantages:
(i) Quick and Clear Decisions,
(ii) Satisfactory Work,
(iii) Necessary for Less Educated Employees.

(d).Disadvantages:
(i) Lack of Motivation,
(ii) Agitation by Employees,
(iii) Possibility of Partiality.

II. Democratic Leadership Style :

(a). Meaning : It refers to that leadership style in which the leader consult with his subordinates before making any final decisions.
(b).Characteristics : ‐(i)Cooperative Relations,(ii)Belief in Employees, (iii) Open Communication.
(c).Advantages : (i) High Morale, (ii)Creations of More Efficiency and Productivity, (iii) Availability of Sufficient Time for Constructive Work.
(d).Disadvantages : (i) Requirement of Educated Subordinates, (ii) Delay in Decisions, (iii)Lack of Responsibility in Managers. 

III. Laissezfaire or Freerein Leadership Style:

(a) Meaning : It refers to that leadership style in which the leader gives his sub ordinates complete freedom to make decisions.
(b) Characteristics (i)Full faith in subordinates, (ii) Independent Decision‐making system,(iii) Decentralisation of Authority (iv)Self‐Directed Supervisory and Controlled.
(c) Advantages. (i)Development of Self‐confidence in Sub ordinates, (ii) High‐level Motivation,(iii)Helpful in Development and Extension of the Enterprise.
(d) Disadvantages. (i).Difficulty in Cooperation, (ii)Lack of Importance of Managerial Post, (iii) uitable only for Highly Educated Employees. S

Communication: Communication refers to process of exchange of ideas between or among persons and creates understanding. Communication process involves the elements of source, encoding, channel, receive r, decoding and feedback.

Formal Communications refers to all official communications in the form of orders, memos, appeal, notes , circular, agen da, minutes etc.

Informal Communications are usually in the form of rumours, whispers etc. They are unofficial, spontaneous, unrecorded, spread very fast and usually distorted.

Barriers may exist for effective communications. Some of these barriers include‐semantic barriers, organizational barriers, language barriers, transmission barriers, psychological barriers a nd personal barriers.

Manager should take appropriate measures to overcome these barriers and promote effective communication in the organization such as

Improving communication effectiveness:
i. Clarify the ideas before communication ii. Communicate according to the needs of receiver. iii. Consult others before communicating iv. Be aware of language v. Convey things of help and value to listeners vi. Ensure proper feedback vii. Communicate for present as well as future viii. Follow up communications and ix. Be a good listener.

KEY CONCEPT QUESTIONS WITH ANSWERS

Question. What is meant by Directing? Explain the importance of directing?
Answer : Directing is telling people what to do and seeing that they do it to the best of their ability. It includes making assignment, explaining procedures, seeing their mistakes are corrected, providing on the job instructions and issuing orders.
Importance of Dire cting: 
1. It initiates action s
2 It integrates employees’ effort
3. It is the means of motivation
4. It facilitates implementing changes.
5. It creates balance in the organization

Question. Mention the elements of directing?
Answer : 1) supervision 2) motivation 3) leadership 4) communication

Question. Explain how directing is a pervasive function of management
Answer : Directing is a pervasive function as every manager from top executive to superior performs it.

Question.‘Directing is the least important function of management.’ Do you agree with this pport of your answer.statement? Give any two reasons in support for answer.
Answer : No, I don’t agree with this statement. regarded as the heart of the management process.

Importance of direction : Direction may be It is explained under the following parts:

a).Initiates action: All organizational activates are initiated through direction.

b).Integrates employees’ efforts: At all levels of management the subordinates under the managers.Managers integrate the work of subordinates.

c).Means of motivation : Directing helps in motivating employees towards organizational goals

Question.“The post of supervisor should be abolished in the hierarchy of managers”. Do you agree? Give any three reasons in support of your answer.

Answer : No, I don’t agree, because a supervisor performs the following functions to achieve organization goals.
Functions of the supervisor:
a).Planning the work. The supervisor has to determine work schedule for every job.
b).Issuing orders: Supervisor issues orders to the workers for achieving coordination in his work.
c).Providing guidance and leader ship: The supervisor leads the workers of his department.
d).Explains the policies and programmes of the organization to his sub ordinates and provide guidance.
e).Make necessary arrangement for supply of materials and ensure they are efficiently utilized.
f). Deviations from the target if any are to be rectified at the earliest.
g). To help the personnel departments in recruitment and selection of workers.

Question. What is meant by ‘Esteem needs’ and ‘Selfactualization needs’ in relation to M motivation of the employees?
Answer :  i. Esteem Needs: these needs are needs for self esteem and need for other esteem .For Example: Self‐respect, self‐confidence etc. ii. Self‐actualization Needs: This is the needs to be what one is capable of becoming and includes needs for optimal development.

Question. It is through motivation that managers can inspire their subordinates to give their best to the organisation’. In the light of this statement, explain, in brief, the importance of motivation.

Answer : Importance of motivation:

i. Motivation sets in motion the action of people: Motivation builds the will to work among employees and puts them into action.

ii. Motivation includes the efficiency of work performance: Performance of employees dependence not only on individual abilities but also on his willingness. iii. Motivation ensures achievement of organizational goals: If employees are not motivated,

no purpose can be served by planning organizing and staffing.

iv. Motivation creates friendly relationships: Motivation creates friendly and supportive relationships between employer and employees.

V .Motivation leads to stability in the employees: Motivation helps in reducing absenteeism and turnover.

vi. Motivation helps to change negative / indifferent attitudes of an employee

Question.“All managers are leaders, but all leaders are not managers.” Do you agree with this statement? Give any three reasons in support of your answer. 
Answer : Yes, I agree with this statement. ifference between leadership and management : (Image 5)

Question. Explain the various leadership styles? 
Answer : Autocratic leadership style: This style is also known as leader centered style. The leader keeps all the authority and employees have to perform the work exactly as per his order. He does not decentralizes his authority. The responsibility of the success or the failure of the management remains with the manager.

Democratic leadership: This style is also known as group centered leadership style. Managerial decisions are not taken by the manager in consultation with employees. This leadership style is based on decentralization. Managers respect the suggestions made by his
sub ordinates. Laissez‐faire leadership style: this style as leadership is also known as free brain leadership or individual centered style. The manger takes little interest in managerial functions and the sub ordinates are left on their own. Manager explain over all objectives; help sub‐ ordinates in determining their own objectives. They provide resources. They also advise the employees.

Question. Mention the characteristics of autocratic leadership style. 
Answer : 1.Centralized authority 2.Single man decisions 3.Wrong belief regarding employees 4.Only downward communication.

Question. Explain three advantages and three disadvantages of autocratic leadership style.
Answer : Advantages: 1.quick and clear decisions 2.Satisfactory work 3.Necessary for less educated employees

Disadvantages: 1.lack of motivation 2.Agitation by employees 3.Possibilities of partiality.

Question. Explain three advantages and three disadvantages of democratic leadership.
Answer : Advantages:1.Democratic leadership style advantages,2.Morale,3.Creation of more efficiency and productivbity,4.Availability of sufficient time for constructive
work 
Disadvantages:1.Requirement of educated sub ordinates 2.Delay in decisions 3.Lack of responsibility and managers.

Question. Mention features of democratic leadership style?
Answer : 1) co operative relations 2).Relief in employees 3).Open communication

Question. Mention the characteristics of laissezfaire leadership style 
Answer : Full faith in sub‐ ordinates 1).Independent decision making system 2).Decentralization of authority 3).Self directed

Question. Mention three advantages and three disadvantages of laissezfaire 
Answer : ‐1.Development of self confidence in sub ordinates, 2.High level motivation, 3.Help in development of extension and enterprise
Disadvantages: 1.Difficulty in co operation, 2.Lack of importance of managerial post, 3.Suitable only for highly educated employees

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 sions
ii. Communication helps management in arriving at vital decisions
iiii .Communication is necessary in creating unity of action of action

Question. Mention one barrier to effective communication. 
Answer : Poor listening skills of people.

Question. Give any one measure to improve communication.
Answer : Communicate according to the needs of receiver.

Question. What do you mean by grapevine? Explain two types of grapevine along with diagram.
Answer : Grapevine: The network or pathway of informal communication is known as grade point communication.

Two types of grapevine communication

Question. Explain any three measures to overcome the barriers to improve communications effectiveness.
Answer : 1.Clarify the areas before communication: Before communicating to employees a manager should make an analysis of the subject matter.
2. Consult others before communication: A manager should encourage participation of subordinates which will ensure their support and cooperation.
3. Communicate according to the needs of receiver: The manager should make adjustments ccording to the needs of the receiver.

QUESTIONS WITH DIFFERENT DIFFICULTY LEVELS

Question. It is concerned with instructing guiding and inspiring people in the organization to achieve its objectives. Name it.
Answer : Directing

Question. Every manager from top executive to superior performs the function of directing. Which characteristic of directing is referred here? 
Answer : Directing takes place every level of management.

Question. It means overseeing the subordinates at work. Which element of directing is referred to?
Answer : Supervision.

Question. Supervisor acts as a link between workers and management. How?
Answer : Supervisor conveys management ideas to the workers on one hand and workers problems to the management on the other.

Question. It refers to the way in which urges, drives, desires, aspirations, strivings or needs direct control and explain the behavior of human beings. Which element of directing is indicated here? 
Answer : Motivation.

Question. Motivation can be either positive or negative. Give two examples of negative motivation.
Answer : a) Stopping increments b) Treating

Question. Which need in the hierarchy theory of motivation refers to affection, acceptance and friendship?
Answer : Belonging needs

Question. It is an incentive offered over and above the wages/salary to the employees. Name the type of financial incentive referred here. 
Answer : Bonus

Question. Name the incentive which refers to ‘give more autonomy and powers to subordinates’ and how are people affected by this incentives?
Answer : Employee Empowerment : Due to this incentive people start feeling that their jobs are important and they contribute positively to use their skills and talent in the job performance

Question. It is defined as a process of influencing other people to work willingly for group objectives. Mention this element of directing. 
Answer : Leadership

Question. It is process by which people create and share information with one another in order to reach common understanding. Which element of directing is referred here?
Answer : Communication.

Question. Which element in communication process relates to the process of converting encoded symbols of the sender? 
Answer : Decoding

Question. In which kind of communication network, a subordinate is allowed to communicate which his immediate superior as well as his superior’s superior?
Answer : Inverted V.

Question. Amit and Mikki are working in the same organization but different departments. One day at lunch time Mikki informed Amit that due to computerization many people aren going to be retrenched soon from the organigoization. 
Answer : It is an example of informal communication.
Limitations of informal communication.

Question. There are some barriers in communication which are concerned with the state of mind of both the sender and the receiver. State any three such barriers.
Answer : It refers to physiological barriers: i. premature evaluation ii. Loss by transmission and oor retention. Iii .Lack of attention.

Questions 1 Mark
1. Which function of management is known as ‘Management-in-action’?
2. How supervision is helpful in maintaining discipline?
3. What is Economic Safety?
4. What is meant by ‘Job Enrichment’ as a type of non-monetary incentives?
5. What is meant by ‘Leadership’?
6. What is meant by ‘Integrity’?
7. ‘A leader does not wait for opportunities but creates their’. This statement is related to which quality of a good leader?
8. What is meant by ‘NOISE’ in communication process?
9. What is meant by ‘Feedback’ in communication process?
10. What is meant by ‘Grapevine’?

3 Marks Questions
11. ‘Direction is the least important function of management’. Do you agree with this statement? Give any two reasons in support of your answer.
12. ‘The post of supervisor should be abolished in the hierarchy of Managers’.
Do you agree? Give any three reasons in support of your answers.
13. Explain how supervision facilities control?
14. Motivation can be either positive or negative. How?
15. Motivation helps to reduce absentesion in the organisation. Clarify.

4/5 Marks Questions
16. Explain any four principles of directing.
17. State any four characteristics of motivation.
18. Clarify ‘Job Enrichment’ and ‘Job Securing’ as non-financial Motivators.
19. Explain the importance of leadership as the directing functions of management.
20. Explain any four factors which are likely to disrupt effective communication.

6 Marks Questions
21. ‘Supervision is an important element of directing function’. Explain any
four reasons in support of the above statement.
22. Explain different financial and non-financial incentives used to motivate employees of a company.
23. ‘Effectiveness of Leadership depends on the qualities of the leader’. Explain any four such qualities of a leader.
24. In an organization there are many leaders. But a good leader must be a distinguished one. Suggest any four qualities that a good leader must possess.
25. Explain the meaning and importance of communication process.

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