CBSE Class 12 Business Studies HOTs Directing

Please refer to CBSE Class 12 Business Studies HOTs Directing. Download HOTS questions and answers for Class 12 Business Studies. Read CBSE Class 12 Business Studies HOTs for Chapter 7 Directing below and download in pdf. High Order Thinking Skills questions come in exams for Business Studies in Class 12 and if prepared properly can help you to score more marks. You can refer to more chapter wise Class 12 Business Studies HOTS Questions with solutions and also get latest topic wise important study material as per NCERT book for Class 12 Business Studies and all other subjects for free on Studiestoday designed as per latest CBSE, NCERT and KVS syllabus and pattern for Class 12

Chapter 7 Directing Class 12 Business Studies HOTS

Class 12 Business Studies students should refer to the following high order thinking skills questions with answers for Chapter 7 Directing in Class 12. These HOTS questions with answers for Class 12 Business Studies will come in exams and help you to score good marks

HOTS Questions Chapter 7 Directing Class 12 Business Studies with Answers

 

Case Study Based HOTs Class 12 Business Studies

Read the following text and answer the following questions on the basis of the same:
Mr. Sunil Diali is a safety officer in a reputed PSU sector ECL. He supervises the workers towards the predetermined goals of the organisation and directs how to eradicate unsafe practices of inundation, fire breakouts, existence of inflammable gasesetc.
On one such instances there was huge fire breakout in the underground mines and the workers morale was down and demotivated because of several risk hazards. Mr. Diali observed the whole situation and consulted with all his workers and constantly monitored, guided and inspired them to integrate their efforts and accept the situation as a challenge and take adequate safety measures for fire extinguish and subsidizingits effects. Thereby, production turnover was outstanding and out performed other subsidiaries. Mr. Dialiwasr ecognised with Bravery Award from CIL.

Question. Mr. Diali worked towards predetermined goals of the organization .Which important function of directing is addressed here?
A. Means ofmotivation
B. Initiatesaction
C. Facilitate change
D. Brings stability

Answer: A

Question. Mr. Diali consulted with all his workers, he listened to their opinions. Which form of leadership is identified here?
A. Laissez-faire
B. Autocratic
C. Democratic
D. Free-rein

Answer: B

Question. Bravery awardis form of non-financial incentive.
A. Status
B. Job security
C. Career Advancement
D. Employee recognition

Answer: D

Question. Under Maslow’s hierarchy need theory which need of Mr. Diali has been met through respect and recognition among other employees?
A. Self – Actualization need
B. Safety and security needs
C. Esteem needs
D. Physiological needs.

Answer: C

 

Very Short Answer type Chapter Directing Class 12 Business Studies

Question. Give one example of ‘Noise’ in the process of communication.
Answer: Poor telephone connection’.

Question. State the element of directing which helps in implementing the principle of ‘Solar-Chain’.
Answer: Formal Communication.

Question. in which type of communication does a junior communicate with his senior?
Answer: Upward Communication.

Question. State any two non-Financial incentives.
Answer: A) Job-Security B) Status

Question. Name the formal Communication network where each person can communicate with his adjoining two persons?
Answer: Circular.

Question. Give example of any two organizational facilities to encourage free flow of communication by removing organizational barriers.
Answer: Complaint Box 2) Social and Cultural Gathering.

Question. What is the highest level need in the need Hierarchy of Abraham Maslow?
Answer: Self Actualization.

Question. Name the Software company promoted by Bill Gates.
Answer: Microsoft.

Question. Enumerate any two functions of supervisors.
Answer: a) Motivating workers b) Providing Training.

Question. Give any two principles for effective Directing.
Answer: a) Maximum Individual contribution b) Unity of command.

Question. Give two examples of semantic barriers.
Answer: a) Badly expressed message. b) Unclarified Assumptions.

Question. Mohan and Sohan are friends working in Surya ltd. As Production and Sales Managers respectively .In an interdepartmental meeting sohan informed Mohan about a change in the marketing policy of the company.
(a) Identify the type of communication used in the above example.

(b) Name and explain any 2 networks of the type of communication identified in part (a)
Answer: informal
Explain any two network of informal communication-gossip,cluster

Question. There are some barriers related to organization structure rules and regulation. State any 4 such barriers.
Answer: explain organizational barrier:
Organisational policy,rules and regulations,status,complexity in structure

Question. “The post of Supervisors should be abolished,” Give your opinion.
Answer: No, explain the functions of supervisor

Question. Rajat a Sales Manager, achieved his sales targets one month in advance. This achievement was displayed on the notice board and a certificate for the best performance was awarded to him by the CEO of the company
(a) Name the incentive provided to Rajat.

(b) Identify the type of incentive.
(c) List 2 other incentives of the type identified in part (b)
Answer(a) Incentive provided to Rajat is an example of Employee Recognition Programmes.

(c) The 2 other Non-Financial incentive are:
1. Status 2. Job Security.

Question. Workers of a factory often seek guidance of Production Managers. The production Manager finds himself overburdened. Advise the way to relive production manager.
Answer: appoint a supervisor

Question. In an organization employees always feel they are under stress. They take least initiatives and fear to express their problem before the manager. What do you think is wrong with the manager?
AnswerThe manager is lacking leadership quality

Question. The employees of Manik Ltd, a Software Company, Have formed a Dramatic Group for their recreation. Name the type of organization so formed and state its 3 features.
Answer: informal

Question. Name the need in which employee desire affection, companionship, friendliness. How can such needs be fulfilled by any organization. 
Answer: social.it can be fulfilled by arranging social gatherings,clubs,keeping cordial relation with colleagues.

Question. Mr Sharma wants to own a house. Which need are we referring to over here? explain the need and also explain other needs.
Answer: the need being referred to in maslow’s need hierarchy theory in basic needs.

Explanation of all needs :
(A) physiological
(B) security
(C) social
(D) esteem
(E) self actualization.

 

Important Notes and Questions for NCERT Class Business Studies 12 Directing

DIRECTING:
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.
 
Features:
1. Directing initiates action:
2. Directing takes place at every level of Management (Pervasive):
3. Directing is a continuous process
4. Directing flows from top to bottom:
 
Importance
1. Initiates Action: It helps to initiate action by the 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. Integrates Employee’s Efforts: All the activities of the organisation are interrelated so it is 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 by satisfying their needs.
 
4. Facilitates change:Employees often resist changes due to fear of adverse effects on their employment and promotion. Directing facilitates adjustment in the organisation to cope with changes in the environment. Directing instills the spirit of cooperation and commitment among work force.
 
5. Stability and balance in the organisation:Managers while performing directing function instruct, guide, supervise and inspire their subordinates in a manner that they are able to strike a balance between individual and organisational interests.
 
ELEMENTS OF DIRECTING:
1. Supervision:It means observing the subordinates at work to see that they are working in accordance with plans and to help them in solving their problems.. Supervisor’s position is immediately above the worker.
2. Motivation: In the context of an organisation motivation means stimulating employees of all levels to work with greater enthusiasm and more efficiency for the accomplishment of the objectives of the enterprises.
3. Leadership: Leadership is the activity of influencing people to strive willingly for organisational goals. Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute for achieving organisational objectives.
4. Communication:It is the process of exchange of information between two or more persons to reach common understanding.
 
Motivation
 
Features
1. Motivation is an Internal feeling:Motivation is an internal feeling which means it cannot be forced on employees. The internal feeling such as need, desire, aspiration etc. influence human behaviour to behave in a particular manner.
2. Goal Directed Behaviour:It induces people to behave in such a manner so that they can achieve their goals. A motivated person works towards the achievement of desired goals.
3. Motivation can be either positive or Negative:Positive motivation means inspiring people to work better and appreciating a work that is well done e.g., pay increase, promotion, recognition.
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.
5. Continuous Process: Human needs are unlimited and so they keep on changing continuously,
satisfaction of one need gives rise to another.
 
It on the needs as the basis for motivation. It classifies human needs into five categories.
It helps managers to realise that need level of employees should be identified to provide motivation to them. It is based on the following assumptions:
(i) People’s behaviour is based on their needs.
(ii) People’s needs are in hierarchical order.
(iii) A satisfied need can no longer motivate a person.
(iv) A person moves to the next higher level of hierarchy only when the lower need is satisfied.
 
Financial and Non-Financial Incentives: Incentive means all measures which are used to motivate people to improve performance.
 
Financial Incentives (which can be calculated in terms of money)
1. Pay and allowances: Salary is the basic monetary incentive. It includes basic pay, dearness allowance and other allowances.
2. Productivity linked wage incentives: Aims at linking payment of wages to increase in productivity.
3. Bonus: An incentive offered over and above the wages/salary.
4. Profit sharing: It means to provide a share to employees in the profits. It creates a feeling of ownership to employees.
5. Co-partnership/Stock option: employees are offered company’s share at a price which is lower than market price.
6. Retirement benefits: Such as provident fund, pension and gratuity etc.
 
Non-Financial Incentives (which cannot be calculated in terms of money)
 
1. Status: Status means ranking of positions in the organisation. Psychological, social and esteem needs of an individual are satisfied by the status given to their job.
2. Organisational climate: Employees can be motivated with favourable atmosphere.
3. Career advancement opportunity: Works as a tonic and encourages employees to exhibit improved performance.
4. Job enrichment: If jobs are enriched and made interesting, the job itself becomes a source of motivation to the employees.
5. Employees recognition programmes: Most employees feel that what they should be recognised by the higher authorities.
6. Job security: Employees want their job to be secured and it is a strong motivator but on the other hand it makes the employees lazy.
7. Employee participation: It means involving employees in the decision making.
8. Employee empowerment: Means giving more autonomy and powers to subordinates.
Leadership: Leadership is the activity of influencing people to strive willingly for mutual objectives. Managers at all levels are expected to be the leaders of their subordinates.
 
Features of leadership
a) Leadership indicates ability of an individual to influence others.
b) Leadership tries to bring change in the behaviour of others.
c) Leadership indicates interpersonal relations between leaders and followers.
d) Leadership is exercised to achieve common goals of the organistion.
e) Leadership is a continuous process.
 
Types of leadership
 
1.Autocratic or Authoritarian Leader
An autocratic leader gives orders and insists that they are obeyed. He determines the policies for the group without consulting them.He does not give information about future plans but simply tells the group what immediate steps they must take. Under this style, all decision making power is centralized in the leader. He does not give the subordinates any freedom to influence his decisions.
 
2. Democratic or Participative Leader Democratic leader gives order only after consulting the group and worksout the policies with the acceptance of the group.
He never asks people to do things without working out the long term plans on which they are working. He favours decision making by the group as shown in the diagram. This improves the attitude of the employees towards their jobs and the organization thereby increasing their morale.
 
3. Laissez Faire or Free Rein Leader Free rein leader gives complete freedom to the subordinates. Such a leader avoids use of power. He depends largely upon the group to establish its own goals and work out its own problems. Group members work themselves as per their own choice and competence. The leader exists as a contact man with the outsiders to bring information and the resources which the group requires for accomplishing the job.
 
Communication
It is the process of exchange of information between two or more persons to reach common understanding.
Communication plays key role in the success of a manager. Directing abilities of manager mainly depend upon his communication skills. That is why organization always emphasizes on improving communication skills of managers as well as employees.
 
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 Feedback:All those actions of receiver indicating that he has received and understood the message of the sender.
 
Importance of Communication
1. Acts as basis of coordination: It provides coordination among departments, activities and persons in the organisation.
2. Helps in smooth working of an enterprise: communication is basic to an organisation existence right from its birth through its continuing life.
3. Act as basis of decision making: Communication provides needed information for decision making.
4. Increases managerial efficiency: Communication is essential for quick and effective performance of managerial functions.
5. Promotes cooperation and Industrial Peace:The two-way communication promotes cooperation and mutual understanding between the management and workers and brings peace in the organisation.
6. Establishes effective leadership:Effective communication helps to influence subordinates. While influencing, a leader should possess good communication skills.
 
TYPES OF COMMUNICATION:
 
I. FORMAL COMMUNICATION II. INFORMAL COMMUNICATION
I. Formal Communication: refers 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 too superior like suggestions, grievances, reports etc.
 
2. Horizontal/lateral Communication: between persons holding positions at the same level of the organisation e.g., production manager may contact marketing manager about product design, quality etc.
 
Merits and demerits of formal communication Merits :
1. Orderly flow of information
2. Easy knowledge of source of information
3. Fixation of responsibility
4. Easy in control
Demerits:
1. Slow process 
3. Rigidity
2. Lack of personal interest 
4. Overload of work
 
II. Informal Communication: Communication that takes place without following the formal lines of communication is said to be informal communication. There is no fixed direction or path for the flow of information. It is based on informal relations and arises out of personal and social needs of the employees.
 
Merits and demerits of Informal communication Merits :
1. Fast communication
2. Improved relation
3. Social satisfaction
4. Fill the gaps
 
Demerits :
1. Misrepresentation of messages
2. Carry rumours
3. Unorganised and irregular
4. Leakage of important facts.
 

MCQs for NCERT Class 12 Business Studies Directing

Question. Directing is function of menagement.
(a) 3rd 
(b) 1st 
(c) 4th 
(d) 5th
 
Answer : C
 
Question. One of the following is not an element of Directing.
(a) Communication 
(b) Motivation
(c) Leadership 
(d) Division of work
 
Answer : D
 
Question. Out of the following, identify non-financial incentive.
(a) Bouns 
(b) Organisational Climate
(c) Profit sharing 
(d) Perquisites
 
Answer : B
 
Question. Cheena wants to have her own house. Which type of need is it?
(a) Esteem 
(b) Safety
(c) Physiological 
(d) Social
 
Answer : C
 
Question. Out of the following, who advocated need— Hierarchy theory in 1943.
(a) Peter F. Drucker 
(b) Philip Kotler
(c) Abraham Harold Maslow 
(d) Koontz O’ Donnell
 
Answer : C
 
Question. Bhawna is very bossy and does not listen to any suggestion given by her subordinates. Which type of leader is Bhawna.
(a) Democratic 
(b) Autocratic
(c) Laiseez Faire 
(d) None of the above
 
Answer : B
 
Question. Out of the following which is not an example of Noise.
(a) Crossing of a vehicle
(b) Telephone lines going dead in between conversation
(c) Group of people talking nearby
(d) More number of organisational levels
 
Answer : D
 
Question. Understanding the forms of symbols or diagrams correctly is known as—
(a) Encoding 
(b) Transmission
(c) Decoding 
(d) feedback
 
Answer : C
 
Question. Identify a ‘Semantic Barrier’ out of the following—
(a) Rules and Regulation
(b) Distrust
(c) Technical Jargon
(d) Complex organisational structure
 
Answer : C
 
Question. Directing action.
(a) Initiates 
(b) Ends
(c) Supports 
(d) None of the above
 
Answer : A
 
Question. is an Internal Driving Force Experience.
(a) Communication 
(b) Motive
(c) Trust 
(d) Command
 
Answer : B
 
Question. A sense of ownership is provided in one of the following.
(a) Bonus 
(b) Perquisities
(c) Co-partnership 
(d) Profit-sharing
 
Answer : C
 

Very Short Answer type Chapter Directing Class 12 Business Studies

Question. It is concern with instructing, guiding and inspiring people in the organizations achieve its objectives. Name it.
Answer: Directing  

Question. Every manager from top executive to supervisor performs the functions of directing. Which characteristics of directing are referred here.
Answer: Directing takes place at every level of management  

Question. It take place throughout the life of the organization irrespective of people occupying managerial positions. Mention the characteristic of directing high lighted here and also explains two more characteristics.
Answer: Directing is a continuous process  

Question. “Directing is the least important functions of management”. Do you agree with this statement? Give any two reasons in support of your Answer.
                                                                                                              OR
“Directing is not at all reinsured in an organization” do you agree? Give any two reasons in support of your Answer. 
Answer: No, I do not agree with this statement  and explain any two point of importance of directing. 

Question. “A supervisor is not at all reinsured in an organization” do you agree? Give any three reasons in support of your Answer.
                                                                                                OR
“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 do not agree because a supervisor performs number of important functions.  

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 hand and workers problems to the management on the other.  

Question. Which element of directing helps in inspiring subordinates to give their best to the organization. Explain any three points of importance of this element.
Answer: Explain importance of motivation  

Question. Under these incentives schemes employees are offered company shares at a set price which is lower than market. Which incentive scheme is mentioned here? Also explain three more financial incentives.
AnswerExplain co-partnership/ stock option scheme. Other financial incentives are:-

1) Profit sharing 2) Bonus 3) Commission etc.  

Question. To satisfy the social and psychological needs which type of incentives are needed? Explain four types of such incentives.
Answer: Non-monitory incentives are needed to satisfy the social and psychological needs.

Type of non-monitory incentives are:-
1) Status
2) Career development opportunity
3) Organizational climate
4) Job security
5) Assignment of challenging job etc. 

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

Question. Name the type of formal communication in which the persons of the departments, one at a higher position other at lower, communication with each other. Also state the problem which may arise in this type of communications.
Answer: This type of communication is diagonal communication and state it’s any two  limitations 

Question. Name the type of written communication in which two departmental heads communicate with each other. Why is this type of communication reinsured?
Answer: In horizontal communication two departmental needs communicate with each  other. Such communication generally relates to the officially accepted and  recognized activities of the organization  

Question. Amit and vikki are working in the same organization but in different departments. One day at lunch time vikki informed amit that due to computerization many people are going to be retrenched soon from the organization. Name, which type of communication of this. State any two limitations of this type of communication.
Answer: It is an example of informal communication and also explain any two limitations of informal communication 

Question. There are some barriers in communications, which are concerned with encoding and decoding of message. State any three such barriers.
Answer: It refers to semantic barriers to communication: -

1) Symbols with different meanings
2) Badly expressed message
3) Unclarified assumptions   

Question. There are some barriers in communications which are concerned with organizational structure and regulations. State any three barriers.
Answer: Organizational barriers:-

1) Organizational policy
2) Status
3) Rules and regulations  

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 psychological barriers:-

1) Premature evaluation
2) Loss by transmission and poor attention
3) Lakeof attention 

Question. Name the process of exchanging ideas ,facts and information?
Answer: Communication. 

Question. Name the element of directing under which sub-ordinates share his views with his superior.
Answer: Communication. 

Question. Which type of communication takes place between superior sub-ordinates in the office?
Answer: Formal Communication.  

Question. Name and explain the last steps of communication process.
Answer: Feedback ‘it is the response given to sender for the message sent.’  

Question. Name the grapevine network in which an individual communicate with only those people whom he trusts?
Answer: Cluster grapevine network.    

Question. The employees of TCS Ltd. have formed a dramatic group for their recreation. Name the type of an organization. Explain any three limitations of it.
Answer: Informal organizations and explain any three limitations.

Important Notes and Questions for NCERT Class Business Studies 12 Directing

Question. Ayesha Ltd. Assured their employees that in spite of recession no worker will be retrenched from the job.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category.
Answer: (i) Job security
(ii) Explain one more incentive of the same category.
Employee’s recognition.
Organizational climate.
 
Question. Blue Birds Ltd. Offers to its employees issue of shares at a price which is less than the market price.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category.
Answer: (i) Co-partnership/Stock option.
(ii) Other incentives: (a) Pay and allowance, (b) Bonus.
 
Question. ABC Ltd. Is not able to achieve its objective on analyzing, they found that employees were not given their best, so he decided to announce an incentive plain, which offers various incentives to employee workers at different level for achieving their target.
(i) Which element of directing is used by manager?
(ii) Suggest incentive suitable for:
Employees operating at lower level.
Employees operating at higher level.
Answer: (i) Motivation is missing.
(ii) (a) Lower level: offer monetary incentives.
(b) Higher level: non-monetary incentive.
 
Question. Mr. John faced lot of problems regarding the policy on teaching. He directly consulted the principal about his problem ignoring the Headmistress who is immediate superior of Mr. John as he feels more free to communicate with principal.
(i) Name the pattern of communication followed by Mr. John.
(ii) State any other two patters.
Answer: (i) Mr. John is following inverted „V‟ pattern.
(ii) Other two pattern:
Wheel pattern, (b) Chain pattern.
 
Question. Is directing required at planning stage? Name the element of directing function under which:
(i) the superiors oversee the activities of their subordinates.
(ii) the superiors assure the subordinates that their needs will be taken care of.
(iii) the superior attempts to influence the behavior of people at work towards the realization of specified goals.
(iv) the superior share information with the subordinates in order to reach common understanding. (3 Marks)
Answer: No, directing is not required at planning stage since it is an executive function. It initiates action in the organization while other functions of management (planning, organizing, staffing and controlling) just prepare a setting for action.
Supervision (ii) Motivation (iii) Leadership (iv) Communication.
 
Question. Amit and Mikki are working in the same organization but in different departments. One day at lunch time Mikki informed Amit that due to computerization some people are going to be retrenched from the organization.
Name which type of communication is this. State any two limitations of this type of communication. (3 Marks)
Answer:Informal Communication
Limitations:
The grapevine/informal communication spreads rapidly and sometimes gets distorted. It is very difficult to detect the source of such communication.
It also leads to generate rumours. People‟s behavior is affected by rumours and informal discussion and sometimes may hamper work environment.
 
Question. You are working at the middle level of management. Your superior, a top management personnel, sent a message for you which you received and well understood. Is the communication process complete? Give reason. (3 Marks)
Answer: No, the communication process is not complete unless and until feedback is given to the superior. Feedback includes all those actions of the receiver indicating that he has received and understood the message of sender. So, I must respond to communication to improve its effectiveness, e. g., by giving a reply to letter, giving reactions to the message, etc.
 
Question. Ankur is working as a production manager in an organization. His subordinate Saurabh discussed with hi a method o production which will reduce the cost of production. But due to some domestic problems and Ankur‟s mind being pre-occupied he is not in a position to understand the message. Saurabh got disappointed by this. Identify the factor which acts as a communication barrier.
Answer: Lack of attention (Psychological/Emotional Barriers to Communication)
 
Question. Rajat a Sales Manager, achieved his sales target one moth in advance. This achievement as displayed on the notice board and the CEO of the Company awarded a certificate for the best performance to him. Name the incentive provided to Rajat.
Answer: The incentive provided to Rajat is – „Recognition‟.
  
Question. A behavior study was done on total of 100 employees of an organization. Group A (of 50 employees) were appreciated by the manager for their work and initiative for new idea. All these employees were given option of flexible working hours and were paid wages at a higher piece rate. On the other hand, Group B (of remaining 50 employees) was criticized for their poor performance. Their increments were stopped and they were paid wages at a lower piece rate.
(a) Identify and explain the feature of motivation highlighted in the above case.
(b) What type of leadership is followed by the manager? Justify your answer. (4 Marks)
Answer: Motivation can be either positive or negative. Positive motivation provides positive rewards like increase in pay, promotion, recognition, etc. Negative motivation uses negative means like punishment, stopping increments, threatening, etc.
Autocratic leadership style. The leader‟s following is based on the assumption that reward or punishment both can be given depending upon the result.
 
Question. In a company, Mr. Kshitij always explains management policies to workers and brings workers‟ problems to the notice of management. At what post does Mr. Kshitij work in this company? (1 Marks)
Answer: Mr. Kshitij is supervisor in the company as he acts as a link between workers and management.
 
Question. Prachi is working in an MNC. She has been given an option to buy the shares of the company at an amount less than the market price because of her performance as an incentive. Identify which incentive is being given to her. (1 Marks)
Answer: Co-partnership/Stock option. 

Question. Huma is working in a company on a permanent basis. As per job agreement she had to work for 8 hours a day and was free to work overtime. Huma worked overtime, due to which she fell ill and had to take leave from her work. No one showed concern and enquired about her health. She realized that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.
(i) By quoting the lines from the above para, identify the needs of Huma which she is able to fulfil.
(ii) Also explain two other needs of Huma followed by the above needs, which still remained to be satisfied.
Answer: Huma is working in a company on a permanent basis‟.
According to above line Huma is able to fulfil her following needs:
(a) Physiological needs(b) Safety or Security needs
(ii) Needs of Huma which still remained to be satisfied are:
Affiliation Need: It refers to the need for affection, since to belongingness, acceptance and friendship.
Esteem Need: It refers to the need for self-respect, autonomy, status, recognition and attention.
 
Question. Mr. Nath, a recently appointed production manager of Suntech Ltd. Has decided to produce jute bags instead of plastic bags as these are banned by the government. He set a target of producing 1000 jute bags a day. It was reported that the employees were not able to achieve the target. After analysis he found that employees were demotivated and not putting in their best for achieving the target. Mr. Nath‟s beaviour is good towards the employees. His attitude is always positive. So he announced various incentive schemes for the employees like;
Installing award or certificate for best performance.
Rewarding an employee for giving valuable suggestion.
Congratulating the employees for good performance.
Identify the functions of management highlighted in the above paragraph.
State the „incentive‟ under which the employees are motivated.
State any two values which the production manager wants to communicate to the society by his work and behavior.
Answer: Directing and Controlling
Employee recognition programme (non-monetary incentive) Vale:
Sensitivity of environment Good behavior towards employees.

Question. NOTICE
A meeting of all supervisors is scheduled on 20th August, 2016
This notice was placed on the notice board in the reception area of XYZ Ltd. But it did not mention clear specification regarding the time of meeting. Which barrier of communication is referred to here? Explain any two other forms of barriers to effective communication under the same category. (5 Marks)
Answer: Badly expressed message (Semantic barriers) – Use of wrong words, omission of needed words, inadequate vocabulary, etc.
Symbols with different meanings: A work may have several meanings. For example, consider these three sentences where the work „value‟ is used:
What is the value of this ring?
I value our friendship.
What is the value of learning compute skills?
Wrong perception by the receiver leads to communication problems.
Faulty translations: Sometimes, the communications originally drafted in one language (say, English) need to be translated to the language understandable to workers (say, Hindi). If the translator is not proficient with both the languages, communication becomes ineffective. .
 
Question. Rajiv is working as Personal Manager in a company. The specialty of the company is that financial position of all the employees is good. The employees working here are honest punctual and hardworking. The CEO of the company asked him to suggest a method of motivation. The CEO asked him to suggest a method which is happily accepted by all the employees.
Rajiv spoke to many employees in this connection. Some employees suggested give more importance to individual autonomy, another suggested good performance should be appreciated another group suggested to award, certificate, trophies to recognize the good performance. Mr. Rajiv mixed all and suggested a method of motivation to CEO. The CEO happily accepted that and it was immediately implemented. With in few days the company‟s growth rate appeared to have become fast.
Identify the functions of management indicate in the above paragraph.
Which motivation methods were suggested by different group of employees.
Which motivation method combine all the above stated and was suggested by personal manager.
Answer: Directing.
(i) Recognition
(ii) Autonomy
Organizational climate.
(i) Ethical behavior
(ii) Motivating employees
(iii) Taking Suggestions from employing.

Question. Pramod was a supervisor at a „Annapurna Aata‟ factory. The factory was producing 200 quintals of Aata every day. His job was to make sure that the work goes on smoothly and there was no interruption in production. He was a good leader who would give orders only after consulting his subordinates and work out the policies with the acceptance of the group.
Identify and describe the leadership style being adopted by Pramod.
Answer: Democratic style of leadership.
A democratic leader favours decision making by the group. This improves the attitude of the employees towards their jobs and the organization thereby increasing their morale.
Using this style is of mutual benefit – it allows them (subordinates) to become part of the team and helps leaders (seniors) to make better decisions.

Question. Smita had been working as an assistant manager with „Johnson Enterprises‟ for the last ten years. She was very popular amongst her colleagues because of her commitment and dedication towards the work. When the manager senior to her retired, all her colleagues thought that now Smita would be promoted. But to everyone‟s surprise the vacant post was filled by an outsider, Mrs. Rita. Smita felt demoralized and her performance started declining. She would abstain herself often and could not meet her targets.
Mrs. Rita was a good leader, who would not only instruct her subordinates but would also guide and inspire them. She noticed Smita‟s hebaviour and felt that her performance could be improved. She started involving Smita in decision making-issues related to the organization and made her a part of high level joint-management committed. Smita was now punctual in office and her performance started improving.
Identify the function of management being performed by Rita.
Name the element of the above function of management which helped Rita to improve Smita;s behavior.
State any three features of the element identified in (ii) above.
Answer: Directing
Motivation
Features of motivation:
Motivation is an internal feeling: The urge, desires, aspirations or needs of people, which are internal, influence human behavior.
Motivation produces goal-directed behavior: For example, if the employee is interested in promotion, it helps to produce a behavior to improve performance. Motivation can be either positive or negative: Positive motivation provides positive rewards like increase in pay, promotion, recognition, etc. negative motivation uses negative means like punishment, stopping increments, threatening, etc.

Question. Rahim was working in an enterprise on daily wages basis. It was difficult for him to fulfill the basic needs of his family. His daughter fell ill. He had no money for his daughter‟s treatment. To meet the expenses of her treatment, he participated in a cycle race and won the prize money. The cycle company offered him a permanent pensionable job which he happily accepted.
(i) By quoting the lines from the above para identify the needs of Rahim that are satisfied by the offer of cycle company.
(ii) Also, explain two other needs of Rahim followed by above that are still to be satisfied.
Answer: Needs of Rahim that are satisfied by the offer of cycle company are Physiological and safety/security needs.
„The cycle company offered him a permanent pensionable job‟.
The other needs followed by the above stated needs that are still to be satisfied are:
Affiliation/Belongingness needs: These needs refer to the need for affection, sense of belonging, acceptance and friendship.
Esteem needs: These needs refer to the need for self-respect, autonomy status, recognition, etc.
 
Question. Y Ltd. Is a bank functioning in India. It is planning to diversify into insurance business. Lately, the government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalization of the economy and to make the field competitive other companies have been given licences to start insurance business under the regulation of „Insurance regulatory and development Authority‟.
Y Ltd. Plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.
Identify how the company can supervise its employees and agents effectively.
What financial and non-financial incentives can the company use for employees and agents separately to motivate them?
How can the company ensure that higher order needs i.e., esteem and self actualization as specified by Maslow are met?
How can the company follow formal communication system?
How can informal communication help to supplement formal communication?
Answer: The company will appoint supervisors who will provide on the job training to the employees and agents. They will maintain group unity and ensure that the company gets enough insurance business.
To the employees, the company can give pay and allowances, bonus, retirement benefits, perquisites (e.g., car allowance),recognisation, promotion, job security etc. to motivate them for higher performance.
To the agents, the company can give the following incentives:
Profit sharing
Stock option (i.e., giving company‟s share at a price less than market price)
Productivity linked salary (i.e., higher salary for getting more insurance business)
Participation in decision – making.
By giving recognition, autonomy status, etc. and providing growth and self-fulfillment opportunities, the company ensures that higher order needs-esteem and self actualization needs are met.
The company can follow formal communication system by ensuring that all communication flows through official channels designed in the organization chart (i.e., through Scalar chain).
Information communication network (i.e., grapevine) can be used by the company to transmit information to know he reactions of the employees and agents to the company‟s decisions and policies. Grapevine channels can carry insurance market information rapidly.

Question. Prateek is working in a multinational company in Noida. He was running a temperature for the last many days. When his blood was tested, he was found to be positive for malaria. He was admitted in a hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organization requesting them to donate blood for Prateek. When the General Manager came t o know about it, he ordered for fumigation in the company premises and cleaning the surroundings.
From the above paragraph, quote lines that indicate formal and informal communication.
State any two features of informal communication.
Identify any two values that are being communicated to society in the above case.
Answer: (i) Informal communication: “One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organization requesting them to donate blood for Prateek.”
(ii) Formal communication: “When the general manager came to know about it, he ordered for fumigation in the company premises and cleaning surroundings.”
The features of informal communication are as follows:
The grapevine/informal communication spreads very fast and sometimes gets distorted. It is very difficult to detect the source of such communication.
The two values that are being communicated to the society are:
Humanity
Cleanliness

Question. Roshan is the chief of „Khidmat‟ restaurant located in the city of Bangaluru. The place is known for its exquisite Mughlai cuisine especially mutton briyani and kababs. All the food is prepared
under Roshan‟s purview. The various activities in the kitchen are initiated in accordance to his instructions. He is very clear and specific in issuing instructions to his subordinates in order to ensure smooth working of the department. He personally oversees the method followed by the chefs for preparation of each dish. He misses no opportunity to praise his subordinates for their good work. All his team members feel very happy and satisfied under his direction. He provides constant guidance to them in order to improve upon its taste and presentation and also encourages them to innovate and be more creative in their work.
In the above context:
Identify the various elements of directing mentioned in the above paragraph by quoting lines from the paragraph.
Describe briefly any two points to highlight the importance of directing as a function of management.
Answer: The various elements of directing mentioned in the above paragraph are as follows:
Communication: „He is very clear and specific in issuing instructions to his subordinates in order to ensure smooth working of the department.”
Supervision: “He personally oversees the method followed by the chefs for preparation of each dish.”
Leadership: “He provides constant guidance to them in order to improve upon its taste and presentation and also encourages them to innovate and be more creative in their work.”
Motivation: “He misses no opportunity to praise his subordinates for their good work.”
The importance of directing as a function of management is described below:
Initiates action: Directing helps to initiate action by people in the organization towards attainment of desired objectives. It is the first execution function of management.
Integrates employees’ efforts: Directing seeks to integrate the individual efforts of employees in the organization towards the realization of the organizational goals.
Helps to realize their potential: Directing provides effective guidance, motivation and leadership to the employees so as to enable them to realize their potential and capabilities. 
 

Very Short Answer type Chapter Directing Class 12 Business Studies

Question. Give examples as to how directing takes place at each level of organization? 
Answer: (i) At lower level supervisor directs subordinates. i
(ii) At middle level instructions & guidance given to lower level.
(iii) At top most level of management provides leadership & communicates objective & policies to entire organisation.

Question. A co. wants to replace manual production technique with mechanized techniques. labour unions are resisting this change. Which function of management will help in introducing this change and how?
Answer: Directing by instructing guiding & motivating by subordinates.

Question. An element of the directing function seeks to provide inducement to employees to act in a particular manner. Name this element. Can this inducement be in a negative manner also if so give examples.
Answer: The element is motivation Negative inducements can be given in the form of transfers, stoppage of increments.

Question. In Maslow’s need hierarchy identify the needs which can be satisfied with financial incentives and also those which can be satisfied with non financial incentives?
Answer: Needs which can be satisfied with financial incentives are physiological needs & safety & security needs. Needs satisfied by non financial incentives esteem & self actualization.

Question. Narainmurthy and J R D Tata are leaders of great status and eminence. Why do you think these role was critical in building their organisation’s fortunes?
Answer: Leadership critical to an organisation because

(i) Influence of behaviour
(ii) Interpersonal relationship
(iii) Introducing changes
(iv) Conflict handler.
(v) Training to subordinates

Question. Explain the elements in communication process which come in between the receiver and sender?
Answer: Various elements between sender & receiver
(i) Message
(ii) Encoding
(iii) Media
(iv) Decoding
(v) Feed back.
 
Question. Explain the concept of noise with suitable example?
Answer: Noise-disturbance in process of communication Eg. Faulty decoding.
 
Question. Explain how communication 
(a) Increases managerial efficiency
(b) promotes co-operation and industrial peace.
Answer: (a) Increases managerial efficiency by proper motivation, guidance & instruction.
(b) Promoter cooperation & industrial peace by resolving conflicts.
 
Question. What are the classification of vertical communication. Give example?
Answer: Vertical communication can be classified into upward & downward communication with suitable egs.
 
Question. What is grapevine communication. How is both useful and a cause for disturbance in an organization?
Answer: Explanation of grapevine
Useful— fast mode of communication
Harmful— as it gives rise to rumours.
 
Question. Ram finds his task as a typist. routine and filled with boredom. His supervisor senses his predicament and wants to motivate him. Suggest ways and means by which he can be motivated?
Answer: Job enrichment & training with suitable explanation
 
Question. Sometimes emotions or state of mind stand in way of effective communication. Name the type of barriers cited above. Give any two examples of such type of barriers?
Answer: Psychological barrier with explanation & suitable examples.
 
Question. Sachin, manager in evergreen industries Ltd is not successful as he is unable to communicate effectively. Suggest some measures where by he can improve his effectiveness.
Answer: Measures of effective communication
(i) Clarification of ideas
(ii) As per needs
(iii) Using good language
(iv) Follow up
 
Question. A type or communication satisfies social and psychological needs of employees? Name this type of communication. Why is it beneficial to an organisation?
Answer: Informal Communication explanation of benefits to the organisation.
 
Question. Techniques of direction cannot be standardised and be the same for all types of employees. Do you agree. Give reasons?
Answer: Technique of direction-employee specific based on needs & state of mind of an employee.
 
Question. Explain briefly how directing brings about stability in an organisation.
Answer: Reduces employee turnover & brings about stability.
 
Question. To ensure that operations at the shop floor are ably carried out, the services of a good supervisor is required. Do you agree. Give reasons?
Answer: Importance of role of supervisor.
 
Question. Why are needs arranged in a Hierarchy? Explain the various types of needs as per Maslaw’s hierarchy citing individuals and organisation as examples.
Answer: Needs as per Moslow needs are from basic to higher level a satisfied need can no longer motivate a person.
 
Question. “What is a perquisites?
Answer: Perquisites: are certain additional benefits given to employee in addition to salary example free housing.
 
Question. Money is the biggest motivates”. Do you agree. Give examples of needs which cannot be satisfied with monetary incentives alone?
Answer: No, I don’t agree. Esteem & self actulisation needs cannot be satisfied with mondary incentives alone.
 
Question. Define leadership. 
Answer: Leadership may be defined as the process of influencing other people to work willingly for group objectives.
 
Question. What is incentive? 
Answer: An incentive is something which induces an individual to respond in a desired manner.
 
Question. Give two functions of a supervisor.
Answer: 1) Planning the work 2) Issuing order
 
Question. Explain laissez faire or free rein leaders
Answer: They are the leaders who give responsibility of setting goals and means to achieve then to the group members.
 
Question. Give the motivational process.
Answer: Motivational process is :-
i) Encouraging the needs.
Ii) Search for action i
iii) Fulfillment of need
iv) Discovery of new need.
 
Question. How’s delegation a means of directing?
Answer: Delegation is a useful technique of directing. It is a means of sharing authority with a subordinate and providing him an opportunity to learn. (1 mark)
 
Question. Explain informal leaders.
Answer: Informal leaders are those who don’t have formal authority over three followers. (1 mark)
 
Question. How are managerial and leadership qualities interrelated.
Answer: Both manager and the leaders have the following common qualities :-
→ Physical activities
→ Intelligence
→ Motivation drive
→ Fore sightedness
 
Question. Define rumour. 
Answer: Rumour is an untrue part of the grapevive. It consists of information which is transmitted through the grapevive without adequate evidence.
 
Question. Give the communication process.
Answer: Communicator — Message — Encoding — Communication Channel —
Receiver — Decoding — Feed back.
 
Question. Distinguish between formal communication & informal communication.
Answer:
CBSE Class 12 Business Studies HOTs Directing_1
 
Question. Anil and Sunil are working in Astro Ltd as production incharge & sales incharge respectively. One day during lunch time Sunil informed Anil that due to computerization many people are going to be retrenched Name which type of communication is this, state any two limitations of this type of communication. 
Answer: It is an example of informal communication.
Limitations of Informal communication.
Message tend to be distorted.
It often carries rumours & distorted facts.
(1 Mark for naming, 2 Marks for correct limitation.)
 
Question. ‘Directing is the process around which all performance of an organization revolves.. Do you agree. Give two points in support of your answer.
Answer: Yes, Directing refers to unstryiting guiding & motivating subordinates in an organisation for achievement of organizational goals four elements of directing are
(i) Supervision
(ii) Communication
(iii) Motivation &
(iv) Leadership.
(1 Mark for agreeing
½ × 4 mark for each correct element)
 
Question. Establish the importance of motivation in modern organization by giving three suitable reasons.
Answer: Importance of motivation :—
(i) Motivation sets in motion the action of people.
(ii) Motivation improves the efficiency of wok performance
(iii) Motivation ensures achievement of organizational goals.     (½×3 = 4½ for naming     ½× correct euplanation)
 
Question. Define the terms “Monetary and Non Monetary Incentive” Enumerate various Financial and non-financial incentives used to motivate people to improve performance.
Answer: Financial Incentives — Incentives which are directly or indirectly associated with monetary benefits. 
Non Financial Incentives — Incentives which are not measurable in terms of money.
Examples for financial Incentives — Pay, allowances productivity linked wage incentives, Bonus, Retirement benefits, Copartnership.
Eq Non Financial Incentives — Status, organizational climate, career advancement opportunity, job security etc.   (1×2 Mark each for definition      ½×2 Marks for correct eg.)
 
Question. Explain the following :-
a) Job Enrichment
b) Suggestion system
c) Job security
Answer: One mark each for correct explanation.
(a) Job Enrichment — is a method of motivating employee by making the task to be performed by him more interesting and challenging. The job in itself serves as a source of motivation to the employee and brings out the best in him.
(b) Suggestion System — Is a system where suggestions regarding the work procedure, environment are solicited from employees. This increase their participation & importance in the working of the enterprise and hence motivates them.
(c) Job Security refers to making the employee feel safe in his job positions. He is not threatened by transfers or removal from service and hence performs to the best of his abilities.
 
Question. “Efficiency and productivity” depend upon quality of leadership. Do you agree. Give two reasons to support your answer.
Answer: Yes,
Importance of leadership
(i) Leadership helps in guiding and inspiring employees to perform well
(ii) By his exemplary character and conduct, a leader in stills confidence in subordinates.
 
Question. Explain the ‘communication network’ and how it works? 
Answer: Communication network : Refers to the pattern through which members of work groups communicate. Different forms of communication networks are —
(i) Chain
(ii) Wheel
(iii) Circular
(iv) Free flow
(v) Inverted V (One mark for definition’ Half mark each for correct form)
 
Question. Name the type of written communication in which two departmental heads communicate with each other. Why is this type of communication required?
Answer: In Horizontal Communication two departmental heads communicate with each other.
Flow of communicate between persons holding position at the same level of the organisation is known as horizontal communication. (One mark for naming two marks for correct explaining)
 
Question. Write a note on downward communication and upward communication.
Answer: Downward Communication : In this flow of communication is from the higher
to the lower level.
Example    →   Superior
                    ↓ orders
               Subordinates
Upward communication — It flows from a subordinate to his superior in the hierarchy. It can be regarded as a process of systematically encouraging employees to share their ideas. with management.
 
Question. Differentiate between formal & informal communication on the basis of :-
i) Channel ii) Nature iii) Speed iv) Need v) Records.
Answer:
CBSE Class 12 Business Studies HOTs Directing_2
 
Question. Workers of a factory often seek guidance of production Manager the production manager finds himself over burdened. Advise the way to relieve the production manager. (5)
Answer: The possible reason may be inability of The production manager to properly supervise the workers. To overcome the problem, the production manager should take the following measures.
(i) Arrange necessary training programmes for workers to increase their working efficiency. It also helps in building confidence among the workers.
(ii) Determine the work schedule and lay down the time, procedure and method of its.
(iii) Make necessary arrangements for the supply of materials machines and tools for the workers.
(iv) Ensure that the tasks assigned to the workers and the targets laid down go together.
(v) Recommend the cases of the workers for promotion, rewards, transfer, punishment etc.
 
Question. How can an organisation overcome the barrier to effective communication?
Answer: The barriers to an effective communication can be reduced by sing the following measures :— 
(i) Clarify the Idea : Clarify in the thoughts of the sender is must for effective ‘communication’. 
(ii) Use of proper people language : Sender should try to make the message meaningful and understandable by using appropriate words.
(iii) Message should be precise : Lengthy and unwarranted elaboration makes message less meaningful this should be avoided.
(iv) Ensure proper feedback : The sender of the message should take the feedback from the receiver. Feedback of the conveyed message is an essential tool to the check that the message is duly understood.
(v) Effective use of organisation Facilities : Effective use of organizational facilities like suggestion box complaint box secret box helps in making the communication effective.
 
Question. Give examples individual needs and organizational needs in relation to Moslow’s need hierarchy.
Answer: The following diagram shows the example of individual needs and organizational needs in relation to Maslow’s need hierarchy Self Satisfaction Self Actualisation Needs Achievements of Targets Status Esteem Needs Job Title
CBSE_Class_12_Bussiness_Studies_Directing _Set_C_4
CBSE_Class_12_Bussiness_Studies_Directing _Set_C_5
 
Question. Explain briefly responsibilities of a supervisor towards workers. (5)
Answer: Supervision means overseeing the subordinates at work. Supervision performs the following important functions which help the organisation to achieve objectives function of the supervisor : 
(i) Planning the work : The supervisor has to determine work schedule for even and steady flow of work.
(ii) Issuing orders : The supervisor issues orders and instructions to the workers for achieving coordination.
(iii) Providing guidance and leadership : The supervisors leads the workers of his department. He fixes production targets for them & provides them the necessary guidance for doming the work assigned to them.
(iv) Motivation : The supervisor motivates his subordinates by providing financial and non financial incentives. He inspires them for higher quality & productivity.
(v) Controlling output — The supervisor controls the performance of the workers by comparing their performance with the standards. He also takes necessary action to ensure that production is done according to the predetermined standards.

HOTS for Chapter 7 Directing Business Studies Class 12

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