CBSE Class 12 Business Studies Directing Worksheet Set A

Staffing is the process of management

Directing- It refers to instructing, guiding, communicating and inspiring people to achieve common objectives .

Elements of directing.

1. Supervision

 2. Leadership

3. Motivation

 4, Communication

Supervision.- Supervision refers to the direct and immediate guidance and control of subordinates in the performance of their task.” Or To watch over the routine activities of workers.

Motivation-: It refers to that process which encourage people to work for the attainment of a desired objective.

Maslow’s Need Hierarchy Theory-

1. Basic Needs 

2. Safety and Security Needs

3. Affiliation or Social needs

 4. Esteem needs

5. Self actualization needs

Types of incentives-

(i) Financial Incentives 

(ii) Non-Financial Incentives

Leadership-It refers to influence others in a manner to do what the leader wants them to do. Leadership Stylesa. Autocratic Leadership Style

b. Democratic leadersjhip Style

c. Laissez Faire Leadership Style.

Communication-Transferring the ideas, thought, facts etc from one person to another.

Type of Communications:

(i) Formal Communication

(ii) Informal Communications

Barriers in communication

(a) Semantic Barriers: This barrier is related with the words, signs and figures used in the communication. Sometimes they cannot convey the same message which they want to. It can be

(i) badly expressed message

(ii) symbols and words with different meaning

(iii) Faulty translation 

(b) Physiological or Emotional barriers: The importance of communication depends on the mental condition of both the parties. A mentally disturbed party can be a hinder in communication. It can be

(i) premature evaluation

(ii) lack of attention

(iii) Distrust

(c) Organizational barriers: Organizational structure affects the capability of all the employees as far as the communication is concerned. Some major hindrances are

(i) Organizational policies

(ii) Rules and regulations

(iii) complexity in organizational structure

(iv) Organizational facilities

(d) Personal barriers : This barrier is related with personal attitude of employees as well as employer. They fear challenge of authority, lack of confidence in subordinates etc. Employees are some time not willing to communicate, lack of proper incentive and so on.

Very short answer type Question

Question. What is meant by Directing?
Answer: It refers to instructing, guiding, communicating and inspiring people to achieve common objectives .

Question. Give any two elements of directing.
Answer: 1. Supervision 2. Leadership

Question. Define Supervision.
Answer: “Supervision refers to the direct and immediate guidance and control of subordinates in the performance of their task.”

Question. What is meant by ‘Motivation’?
Answer: It refers to that process which encourage people to work for the attainment of a desired objective.

Question. What is Informal Communications?
Answer: It refers to the communication within an organization that is officially sanctioned.

Question. How Supervision is helpful in maintaining discipline?
Answer: Through close eye and timely guidance of the employees.

Question. Give an example of ‘employee recognition programmes’ as in non- financial incentive.
Answer: Displaying employee’s achievements on the notice board or company’s newsletter.

Question. Give any two Characteristics of ‘Organizational Climate’ that influence the behavior of individuals and act as non-financial incentives.
Answer: Characteristics of ‘Organisational Climate’ that influence the behavior of individuals are
1) IndividualsAutonomy 2) Reward orientation

Question. One of the employees of ‘Hindustan Agriculture Implements Limited’ receives an order from the department manager and passes it on to the non-managerial members. Because the actual work in the organisation is done by the non-managerial Members, therefore, even a little carelessness in delivering themessage can lead to a heavy loss. This employee performs the role of the human relation specialist also.
Identify the designation of the employee described above.
Answer: Supervisor.

Question. Kritika is posted at lower level management at ‘libra costmetics pvt. Ltd.’The daily sale of the company is about Rs.50 lakhs only. She has given her responsibility that the production work of the company should continue uninterrupted. Themanaging director has asked her to focus her attention especially on the speed and quality of production she is doing her efficiently. Her reputation is that of a successful leader. She takes every decision after discussing it with all the concerned persons. Her subordinates are happy with her.
Identify the leadership style adopted by kritika.
Answer: Democratic leadership style.

Question. The chief Executive Officer –CEO of ‘Shri ram ltd.’ sent themessage to all the departmental Managers: “With effect from today, whatever communication they have to do, they will do so in writing.” This communication reached all the departments. In the company, this order began to be followed.Within a few days the unfavorable consequence of this order became apparent. Mainly the speed of work became slow. In this context, whosoever went to the CEO to give a suggestion, he ignored all others.
Identify two of the barriers in the communication stated in the paragraph given above.
Answer: 1. Organisational barrier 2. Personal Barrier

Question. Everyday a new problem crops up at ‘BALCO Engineering Udyog Limited.’A meeting of the managers was held regarding this situation.After a lot of discussion they arrived at this conclusion that the root-cause of all the problems was the company’s weak communication system. Hence, if the communication system was improved, they could be relieved of the problems to a great extent. With this aim in view, the company invited a specialist in communication system. In his lecture, he mainly asserted that it was most necessary to ascertain whether the receiver had taken the communication in the right sense.
Identify the solution suggested by the communication specialist in order to remove the barriers in the communications.
Answer: Ensuring proper feedback.

Short answer type question

Question. Themanaging director of ‘Narula tyre pvt. Ltd.’ held ameeting of the departmentalmanagers. It was attended by all the five departmental managers. In the meeting the managing director said that besides doing their current work efficiently, they had also to make it capable of shoulderingmore responsibility in future. For the realization of this objective, he invited the suggestions of all of them. He said that on the basis of suggestions of all of them the decision to do so would be taken. The managing director prepared a plan on the basis of suggestions received. Out of the fivemanagers three of themcarried out the plan, but two of them did not care for it.
(a) Identify the factor of staffing describe in the paragraph above.
(b) Two of the managers didn’t carry out of the plan. On the basis of this fact, can we take it that the communication process has been incomplete? Explain.
(c) What leadership style is being referred to here?
Answer: (a) Employee development/Promotion and Career Planning.
(b) No, it can’t be taken that the communication process have been incomplete, because for the completion of communication process, only to understand the message is necessary, not acting upon it.
(c) Democratic leadership style.

Question. In a company, the employees is connected with one another, fromthe highest to the lowest in a straight hierarchy. Their order is has follows: General Manager>Departmental manager>Deputy departmentalmanager>Supervisor>Foremen>workers.The communication among all of them is taking place as follows. The General Manager held the meeting of all the employees of the company and said,We should delete the word ‘I’ from our vocabulary and in its place we should substitute the word ‘WE’. Some of the employees of the company were explaining the company’s policies to some others and were giving orders. Similarly, some employees were sending the reports of their work, while some others were busy in complaining.
(a) Which principle of management has been highlighted by the General Manager in his message to the employees?
(b) What sort of Formal Communication is taking place here? Explain with examples.
Answer: (a) Espirit De Corps.
(b) Vertical communication: It is of two types:
i) Downward Communication: Policies and orders fall in this category.
ii) Upward Communication: Reports and complaints fall in this category.

Question. ‘Anvi Pvt. Ltd.’ has divided its business into four departments; namely, marketing, Finance, Production, and Personnel. The finance manager has to arrange finance for the following year.With this aim, he asks the Marketing Manager of how much worth he would be able to sell goods in following year. The reason for asking such a question was to make an estimate of purchases and production. Similarly, he asked the PersonnelManger to prepare an estimate of the expected number of the employees and the remuneration to be paid to them. The Financial Manager shared all the information received with Mr Rawat, the senior finance Manager. Thus, both jointly prepared the cash budget.
(a) What type of organizational structure is being adopted by this company?
(b) What type of formal communication would you call the conversation which took place between the heads of different departments?
(c) What type of formal communication is the conversation which took place between the two officials of the Finance Department?
Answer: (a) Functional Organizational Structure
(b) Horizontal Communication
(c) Vertical Communication

Question. Mr ‘A’ is working as the manager in the Marketing Department of ‘Mansarovar Handloom Limited’. ‘B’, ‘C’, ‘D’, and ‘E’ are his four subordinates.All the four of them have to often communicate with their manager Mr ‘A’ in connection with their job requirement. Besides, ‘B’, ‘C’, ‘D’ and ‘E’ have to communicate with one another also. But they cannot do any communication directly with one another. This job has to be done through Mr ‘A’. For example, if ‘B’ has to send some message to ‘C’, he will send this message first to ‘A’ and the latter will pass it on to ‘C’. According to the subordinates, this type of communication becomes a hurdle in the speed of work. They are not at all happy with this system.
(a) What main form of communication has been used in the paragraph given above?
(b) What system of communication is being used by ‘A’, ‘B’, ‘C’, ‘D’and ‘E’?
(c) Which value is being ignored here?
Answer: (a) Formal communication.
(b) Wheel communication.
(c) Free communication is being ignored here.

Question. Usually we see that on the occasion of Diwali people buy a large number of gifts. ‘Ambe Electronics limited’ wants to take advantage of this habit of people. It decided to prepare a big range of attractive gifts.All the employees of the company co-operated fully to implement this decision. One day some of the employees were chatting together in the canteen. One of them, Mr Ravindra had secret and enjoyable information about one of his colleagues. He was telling them all as he stood amidst them. All of them were enjoying themselves the information he shared with them.
(a) Identify this factor of business Environment.
(b) In which method of communication comes the chatting going on in the canteen?
Describe this method.
(c) To which main type of communication belongs the method referred to in point ‘b’?
Answer: (a) Social Environment.
(b) Gossip Chain
(c) Informal communication.

Question. Describe any three points which explain the role of supervision in management.
Answer: 1) As a key man
2) As amediator.
3) As human Relations Specialist.

Question. Explain any three functions performed by a supervisor that are vital to any organization.
Answer: 1) Facilities control.
2) Optimum Utilization of Resources.
3) Maintenance of Discipline.
4) Feedback.
5) Improves Communication.

Question. Describe the Process of communication.
Answer:
1) Sender/Communicator.
2) Message
3) Encoding.
4) Media/Transmission.
5) Decoding.
6) Feedback

Question. State any three non- monetary incentives.
Answer: Three non-monetary incentives are:
(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 increases 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. Explain the difference between formal communication and informal communication.
Answer: The difference between formal communication and informal communication are as follows: 

Long answer type Question

Question. Explain the formal communication network? Write its Feature.
Answer: It refers to the communication within organization that is officially sanctioned.
Features:
(a) Written and oral: It can be both in written or oral. Daily works are handed through oral communication while the policy matters require written communication.
(b) Formal Relations : This communication is adopted among those employees where formal relations have been established by the organization. The sender and the receiver have some sort of organizational relation.
(c) Prescribed path: The communication has to pass through a definite channel while moving from one person to another For example to convey the feelings of a worker to the manager, their foreman’s help has to be sought.
(d) Organisational message: This channel is concerned with the authorized organizational messages only and the personnel messages are out of its jurisdiction.

Question. Explain different networks of grapevine communication.
Answer: (a) Single Strand.
(b) Gossip chain.
(c) Probability.
(d) Cluster.

Question. Mr Ekant Miglani, after completing his studies of B.B.A is working in the Production Department of ‘jai chemicals limited’. There are fifty persons working at different posts in this Department. He tries hard to keep a watch over the Routine Activities of all the employees. He observed one of the employees, Bholo ram and a few others working on machines. They were running the machines in a wrong manner. The machines were very sophisticated. Mr Miglani at once explained the right method of working to them. He wanted to solve this problem of the employees for good. He called a meeting of his subordinates. He took this decision that the company will have to organize training of the employee immediately. They also decided all the employees will drop a suggestion each in the suggestion-box daily, so that the different activities of the department may be improved speedily. It was announced that the employees giving valuable suggestions shall be rewarded. On the basis of the above paragraph answer the following question:
(a) Which function of management is being discharged by Mr Miglani by keeping a watch over the Routine Activities?
(b) Which method of training of the employees will be suitable to be adopted here?
Explain.
(c) Which style of leadership is being followed by Mr Miglani?
(d) Which method of motivation will be decided to be adopted in the meeting of employees?
Answer: Supervision.
(b) Here the Vestibule training Method will be suitable to be adopted. Under this training method a separate training centre is set up. In this centre factory like atmosphere or circumstances is/are created and the employees are trained to work on sophisticated machines.
(c) Democratic Leadership Style.
(d) Employee Recognition Programme.

Question. Five students of BBA took part in a discussion. The subject of their discussion was: “Why do people get motivated to do anything?” The main portions of their discussion are as under: The first student said, “People work because they want to deposit wealth enough to protect themselves from diseases and to be relieved of the tension of old age.”
The second student said, “People work because they want to arrange food, cloth and shelter for themselves at any rate.”
The third student said, “People work because they want to reach the top of the field in which they are. They, therefore, put in untiring efforts.”
The fourth student said, “People work, so that when they have money, people will become friendly with them and they will stand by them through think and thin.”
The fifth student said, “People work, so that they may get respect in the society and that they may be recognize as exceptional persons.”
(a) The discussion given above relates to which function of management?
(b) The five friends spoke about the different needs of people as the basis of their doing work. Identify these needs.
Answer: (a) Motivation
(b) First friend: Safety Needs
(c) Second friend: Physiological Needs
(d) Third friend: Self Actualization Needs
(e) Fourth friend: Social Needs
(f) Fifth friend: Esteem Needs

Question. Describe five importance of directing?
Answer: (1) Through directing, managers not only tell the people what they should do, when they should do and how they should do, but also see that their instructions are implemented in proper direction
(2) As the superiors direct the actions of employees towards the predetermined goals, it results in unity of direction and achievement of organizational goal.
(3) It is well known fact that employees are having lot of individual differences such as differences in levels of authority, types of job, interest, attitude, aptitude etc. But,
the directing function integrates and co-ordinates the efforts of all the employees in such a way that every individual effort contributes to the organizational performance.
(4) Through directing, managers not only tell the people what they should do, when they should do and how they should do, but also see that their instructions are implemented in proper direction
(5) As the superiors direct the actions of employees towards the predetermined goals, it results in unity of direction and achievement of organizational goal.

Question. Explain the barriers of effective communications?
Answer: (a) Semantic Barriers: This barrier is related with the words, signs and figures used in the communication. Sometimes they cannot convey the same message which they want to. It can be
(i) badly expressed message
(ii) symbols and words with different meaning
(iii) Faulty translation and so on
(b) Physiological or Emotional barriers : The importance of communication depends on the mental condition of both the parties . A mentally disturbed party can be a hinder in communication. It can be (i) premature evaluation
(ii) lack of attention
(iii) distrust
(c) Organizational barriers: Organizational structure affects the capability of all the employees as far as the communication is concerned. Some major hindrances are
(i) organizational policies
(ii) Rules and regulations
(iii) complexity in organizational structure
(iv) organizational facilities
(d) Personal barriers : This barrier is related with personal attitude of employees as well as employer. They fear challenge of authority, lack of confidence in subordinates
etc. Employees are some time not willing to communicate, lack of proper incentive and so on.

Question. Discuss six monetary Incentives.
Answer: The incentives that have a monetary and financial benefit are called financial incentives.
a) Profit sharing: It has been accepted that the profit earned by the firm is also due to the effort put by the workers. So they have a full right to receive a share in it. It is an effective incentive which satisfies the workers.
b) Co-partnership: Under this system, employees share the capital as well as the profits.
Under employees stock option plan the workers are given shares. They are also given Bonus shares and they share the ownership of the firm. It motivates them as they share the profits too.
c) Productivity linked wages: Under this system, a sales person is guaranteed a minimum wage as well as commission on sales. A commission plan motivates him to work better.
d) Suggestion system: Valuable suggestions are accepted and the most valuable ones are also rewarded with cash money.
e) Retirement benefits: Every employee wants his future to be secured. The firm provides retirement benefits, pension, provident fund, gratuity etc.
Perks: various perks such as housing, car allowance foreign trips etc can be given to the managers to boost up his morale.

Question. Explain various leadership styles.
Answer: Autocratic leadership: An autocratic leader gives orders and expects that they are obeyed.
He determines the policies for the group without consulting them. All decision making power is centralized with the leader.
Democratic leadership: In this style, the leader consults with his subordinates on proposed actions and decisions and encourages them to participate in decision making. This improves the attitude of the employees towards their jobs and increases their morale.
Laissez faire leadership: This style gives a high degree of freedom to his subordinates.
Group members work themselves as per their own choice and competence. Such a leader avoids use of power. He exist as a contact man with the outsiders to bring information and the resources the group requires for accomplishing the job.

Important Questions for NCERT Class 12 Business Studies Directing

Question. The characteristic of motivation happens to be ________ .
(a) Positive
(b) Negative
(c) Positive and Negative
(d) Quantitative

Answer : C

Question. What type of financial motivation helps the employees in satisfying one of the following needs?
(a) Physiological
(b) Security
(c) Physiological and Security
(d) Esteem

Answer : C

Question. Abraham Maslow propounded the Need Hierarchy Theory in the year ________.
(a) 1843
(b) 1943
(c) 1893
(d) 1963

Answer : B

Question. Grape vine is 
a. Formal communication
b. Barrier to communication
c. Horizontal communication
d. informal communication 

Answer : D

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

Answer : B

Question. Which of the following communication spreads rumours?
(a) Formal
(b) Informal
(c) Written
(d) All the Above

Answer : B

Question. ________ is an example of the medium of communication.
(a) Letter
(b) Telephone
(c) E-Mail
(d) All the Above

Answer : C

Question. Which of the following communication spreads quickly?
(a) Formal
(b) Informal
(c) Written
(d) All the above

Answer : B

Question. Physiological needs include ________ .
(a) Food
(b) House
(c) Clothes
(d) All the above

Answer : D

Question. According to Maslow a person satisfies his ________ needs one after the other in a definite order.
(a) Seven
(b) Five
(c) Three
(d) Six

Answer : B

Question. From which of the following leadership styles yields the advantage of high level motivation?
(a) Autocratic leadership style
(b) Democratic leadership style
(c) Free-rein leadership style
(d) None of the above

Answer : C

Question. In order to complete the process of communication, there should at least be ________ persons.
(a) One
(b) Two
(c) Three
(d) Four

Answer : B

Question. ________ is an example of monetary motivation.
(a) Bonus
(b) Status
(c) Job
(d) Job Security

Answer : A

Question. Job security means the ________ of Job.
(a) Insecurity (Instability)
(b) Stability
(c) Demotion
(d) Promotion

Answer : B

Question. Which of the following is not an example of financial incentive?
(a) Perquisites
(b) Job Enrichment
(c) Profit Sharing
(d) Co-partnership

Answer : B

Question. Encoding is related to
(a) converting message into symbols.
(b) converting symbols into machine
(c) transmitting message.
(d) receiving symbols

Answer : A

Question. Grapevine is a form of
(a) formal communication.
(b) channel of communication
(c) informal communication.
(d) barrier to communication

Answer : C

Question. Which of the following is not a non-financial incentive?
(a) Status
(b) Job enrichment
(c) Bonus
(d) Employee progress

Answer : C

Question. Which one of the following is a non-financial incentive?
(a) Recognition
(b) Perquisite
(c) Retirement benefit
(d) Stock option

Answer : A

True/False

1. Productivity linked wage incentives include regular increments in the pay every year and enhancement of allowances from time-to-time.False
2. Rewarding an employee in such a way that it creates a feeling of ownership in them is one of the financial incentives.True
3. Motivation can be Positive and it can never be negative. False
4. If jobs are enriched and made interesting, the job itself becomes a source of motivation to the individual. True
5. Esteem needs include growth, self-fulfillment and achievement of goals. False
6. If there is two way information flow between the superior and subordinate then there will be positive reaction of employees. True
7. Formal communication may be written or oral. True
8. Informal communication arises out of formal interaction. False
9. Vertical communication exists between departments. False
10. Informal communication has a definite path but formal communication does not have a definite path. False
11. Converting encoding symbols of the sender is known as decoding. True
12. Ambiguous symbols that lead to faulty encoding is an example of noise. True
13. The channel which is used to transmit the message to the receiver is media. True
14. Issue of notice is an informal way of communication. False
15. Minimum two parties are involved in the process of communication. True

Question. Define the term supervision.
Answer: Supervision is the process of guiding the efforts of employees another resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets.

Question. Explain the process of motivation.
Answer: Process of motivation:
An unsatisfied need of an individual creates tension which stimulates his or her drives. These drives generate search behaviour to satisfy such need. If such need is satisfied, the individual is relieved of tension.

Question. Describe the concept of Authoritative leadership and state its merits and demerits.
Answer:  Autocratic (or Authoritative) Leadership: It is a leadership style where a leader has complete control over his subordinates and all the decisions are taken by himself without consulting the subordinates.
Merits:
i. Decision-making is quicker under this leadership style.
ii. This leadership style is effective in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity.
Demerits:
i. This leader rarely or does not takes inputs, advice nor suggestions from subordinates/followers. Therefore, decision is based on the leader’s own beliefs.
ii. This leader does not delegate authority but centralises power in himself.
iii. This leader gives orders and expects his subordinates to obey those orders.
iv. There is only one-way communication with the subordinate, only acting according to the command given by the leader.

Question. Describe the concept of Laissez-faire leadership and state its merits and demerits.
Answer: Laissez faire (or Free-rein leader): It is a leadership style where subordinates take decisions and resolve issues themselves. Subordinates are given a high degree of freedom to formulate their own objectives and ways to achieve them. This type of leader does not believe in the use of power unless it is absolutely essential.
Merits:
i. Subordinates are given a high degree of freedom.
ii. More job satisfaction and morale among subordinates.
iii. Maximum scope of development of subordinates.
Demerits:
i. Subordinates do not get the guidance and support of the leader.
ii. It ignores the contribution of leader.
iii. Subordinates may work in different directions and result in chaos.

Question. What is informal communication? State the demerits of formal communication.
Answer: Communication that takes place without following the formal lines of communication is said to be informal communication. It is also called as ‘grapevine’ because it spreads throughout the organisation with its branches going out in all directions regardless of the levels of authority.
Demerits:
• Actual information may possibly get distorted.
• Difficult to detect the source of such communication.
• It leads to generate rumours which are not authentic.
• People’s behaviour is affected by rumours and informal discussions may hamper work environment.

Question. Explain the advantages of informal communication.
Answer:  The advantages of informal communication are:
• Spread of information through informal channels is faster. It may be useful to the manager at times.
• Provides emotional relief to employees and results in reducing union and management problems.
• Managers can get true and accurate response of subordinates on various policy matters.

Question.  Define the term of motivation.
Answer: Motivation is the process of stimulating, inspiring and inducing the employees to perform to their best capacity to accomplish desired goals.

Question. Define the term leadership.
Answer: Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.

 Key points to remember for Chapter 07 Directing

• Characteristics of Directing :
(i) Initiates action.
(ii) Takes place at every level of management.
(iii) Continuous process.
(iv) Flows from top to bottom.

• Importance of Directing :
(i) Helps to initiate action.
(ii) Integrates employees’ efforts.
(iii) Guides employees to fully realise their potential.
(iv) Facilitates changes in the organisation.
(v) Brings stability and balance in the organisation. 

• Features of Motivation :
(i) Internal feeling.
(ii) Produces goal directed behaviour.
(iii) Can be either positive or negative.
(iv) Complex process.
(v) Continuous process
(vi) Different from job satisfaction

• Maslow’s Need Hierarchy Theory of Motivation :
Abraham Maslow categorised human needs into five types :
(i) Basic physiological needs : Also known as survival needs, e.g., food, shelter, clothing, etc.
(ii) Safety or security needs : Protection from physical dangers and economic security, e.g., pension plans, job security, etc.
(iii) Affiliation/Belonging needs : Also known as social needs, e.g., affection, acceptance, etc.
(iv) Esteem needs : Self-respect, status, etc.
(v) Self actualisation needs : Desire of becoming what one is capable of becoming, e.g., growth, self-fulfillment, etc. It helps managers to realise that the unsatisfied needs of employees should be identified so as to provide motivation to them.

• Financial Incentive :
It refers to the incentives which are measurable in monetary terms such as :
(i) Pay and allowances.
(ii) Productivity linked wage incentives.
(iii) Bonus.
(iv) Profit sharing.
(v) Co-partnership/stock option.
(vi) Retirement benefits.

(vii) Perquisites. Non-Financial Incentives :
It refers to the incentives which are related to psychological, social and emotional factors :
(i) Status.
(ii) Organisational climate.
(iii) Career advancement opportunity.
(iv) Job enrichment.
(v) Employee recognition programmes.
(vi) Job security.
(vii) Employee participation.
(viii) Employee empowerment.

• Features of leadership
(i) Process of influencing people.
(ii) Brings behavioural changes.
(iii) Inter personal relationship between a leader and the follower.
(iv) Continuous process.
(v) Exercised to achieve common goals.

• Leadership styles
(i) Authoritative/Autocratic Leadership : A style in which the leader centralises all decision making powers and exercises complete control over his subordinates.
(ii) Democratic/Participative Leadership : A style in which the leader consults the subordinates in the decision making process and encourages them to give suggestions.
(iii) Free Rein/Laissez Faire Leadership : A style in which the leader gives complete freedom to the subordinates in setting the goals and delegates entire authority of decision making to them.

• Elements of Communication :
(i) Sender : Conveying his/her message.
(ii) Message : Subject matter of communication.
(iii) Encoding : Converting message into symbols.
(iv) Media : Path or medium to transmit message.
(v) Decoding : Translating encoded message into language.
(vi) Receiver : Receiving the message.
(vii) Feedback : Reaction to the sender.
(viii) Noise : Hindrance in effective communication process.

• Channels of Communication
(i) Formal Communication : Official communication taking place in the organisation through official channels.
(ii) Informal Communication : Unofficial communication that arises from the social interaction of people.

•  Barriers to the Communication :

(i) Semantic Barriers : Related to encoding and decoding of message :
(a) Unclear message.
(b) Symbols with different meanings.
(c) Faulty translation.
(d) Unclarified assumptions.
(e) Technical Jargon.
(f) Body language and gesture decoding.

(ii) Psychological Barriers : Related to the state of mind of both the sender and the receiver.
(a) Premature evaluation.
(b) Lack of attention.
(c) Loss by transmission and poor retention.
(d) Distrust.

(iii) Organisational Barriers : Related to organisation structure.
(a) Organisational policy.
(b) Rules and regulations.
(c) Status.
(d) Complexity in organisation structure.
(e) Organisational facilities.

(iv) Personal Barriers : Related to the personal attitudes of both the sender and the receiver.
(a) Fear of challenge to the authority.
(b) Lack of confidence of superior on his subordinates.
(c) Unwillingness to communicate.
(d) Lack of proper incentive.

• Measures to improve communication effectiveness :
(i) Clarify the ideas before communication.
(ii) Communicate according to the need of the receiver.
(iii) Consult others before communicating.
(iv) Be aware of the language, tone and content of the message.
(v) Convey things of help and value to listeners.
(vi) Ensure proper feedback.
(vii) Communicate for the present as well as for the future.
(viii) Follow up.
(ix) Be a good listener.

Important Questions for NCERT Class 12 Business Studies Directing

Question. Which of the following is not a measure to overcome barrier to effective communication?
a) Convey things of help and value to listeners
b) Communicate according to the needs of receiver
c) Consult others before communicating
d) Fear of challenge to authority

Answer : D

Question. Choose the incentive which best describes ‘Organisational climate’ as a non-financial incentive.
a) Individual autonomy
b) Holding a managerial position
c) Appropriate skill development program
d) Meaningful work experience

Answer : A

Question. Which of the following is a financial incentive?
a. Job security
b. Stock option
c. Job enrichment
d. Employee participation

Answer : B

Question. Which of the following is a non-financial incentive?
a. Job security
b. Retirement Benefit
c. Bonus
d. Co-partnership 

Answer : A

Question. The need that is concerned with sense of belongingness
a. Esteem need
b. Self Actualisation need
c. Security need
d. Affiliation need 

Answer : D

Question. Job enrichment is concerned with
a. Designing jobs with greater variety of work content
b. Involving employees in decision making
c. Promoting an employees
d. Empowering an employees by giving more autonomy 

Answer : A

Question. Which financial incentive is concerned with regular increments in pay every year?
a. Bonus
b. Productivity linked wage incentives
c. Pay and allowances
d. Co- Partnership 

Answer : C

Question. Risk taking is an example of the following type of non-financial incentive
a. Employee empowerment
b. Career advancement opportunity
c. Organisational Climate
d. Employee Recognition programmes 

Answer : C

Question. The process of converting the message into communication symbols is known as: 
a. Media
b. Encoding
c. Feedback
d. Decoding 

Answer : D

Question. Disturbance in telephone line is an example of:
a. Media
b. Message
c. Noise
d. Feedback 

Answer : C

Question. ‘Better human relationship’ is an advantage of which type of communication?
a. Formal
b. Horizontal
c. Vertical
d. Informal 

Answer : D

Question. Full utilization of potential and capacity of employees can be seen in
a. Autocratic leadership
b. Democratic leadership
c. Free rein leadership
d. Paternalistic leadership 

Answer : C

Question. Which is not an element of leadership
a. It is the process of influence
b. The influence is always for common goal
c. It influence your own behavior
d. It influence employee willingly 

Answer : C

Question. Which type of communication is rigid and cannot be modified?
a. Formal
b. informal
c. Horizontal
d. vertical

Answer : A

Question. Directing is performed at
(a) Top level
(b) Middle level
(c) Supervisory level
(d) All levels

Answer : D

Question. The incentive to provide company’s share at very low price or free to employee workers is called
(a) Profit sharing
(b) Commission
(c) Retirement benefit
(d) Co-partnership stock option

Answer : D

Question. The leader who does not welcome suggestions of employees is called
(a) Autocratic leader
(b) Democratic leader
(c) Free Rein leader
(d) None of the above

Answer : A

Question. Directing
(a) Is a primary function of management
(b) Initiates action
(c) Recruits and Selects employees
(d) Identifies and groups the activities

Answer : B

Question. The barrier due to lack of vocabulary, wrong grammer or use of wrong words is called
(a) Badly expressed message
(b) Technical Jargon
(c) Faulty Translation
(d) Symbol with different meaning

Answer : A

Question. To build up the morale of employees and to develop interest in the job, manager uses the following element of directing.
(a) Supervision
(b) Leadership
(c) Motivation
(d) Communication

Answer : C

Question. The leader who encourages the employees to give suggession and allots the work after consulting the employees is called
(a) Autocratic leader
(b) Free Rein leader
(c) Democratic leader
(d) None of the above

Answer : C

Question. The communication between Production Head and Sales Head is
(a) Downward communication
(b) Upward communiation
(c) Horizontal communication
(d) None of the above

Answer : C

Question. Giving a special rank, position, or authority to employees is part of
(a) Monetary Incentive
(b) Non-monetary Incentive
(c) Profit sharing
(d) Compartnership

Answer : B

Question. Motivators can be
(a) Positive only
(b) Negative only
(c) Positive as well as negative
(d) None of the above

Answer : C

TRUE OR FALSE

1. To motivate employees, only positive motivators can be used.  False 
2. Lack of attention is a part of organisational barrier. False  
3. We must always clarify the idea before communication.  True
4. Use of words having same pronunciation but different meaning is called personal barrier.  False 
5. Directing flows from all the directions. False 

Questions. Describe the concept of Democratic leadership and state its merits and demerits.
Answer : Democratic (or Participative) Leadership: It is a leadership style where the leader takes decisions in consultation with his subordinates and follows the opinion based on the majority.
Merits:
i. He will encourage the subordinates to participate in decision-making.
ii. This leader delegates and decentralises authority.
iii. They also need to respect the other’s opinion and support subordinates to perform their duties and accomplish organisational objectives. They exercise more control by using forces within the group.
Demerits:
i. Decision making is time taking.
ii. It is difficult at the time of emergency.

Questions. Define directing as a function of management.
Answer : Directing is the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.

Questions. What are the features of motivation?
Answer : Features of motivation:
1. Motivation is a psychological phenomenon: Motivation is an internal feeling. It cannot be seen or touched. This internal feeling urges employees to behave in a particular manner. 2.Motivation produces goal-oriented behaviour: Motivation induce people to behave in such a manner so that they can achieve their goal.
3. Motivation can be positive as well as negative: Positive motivation can take the form of appraisal or promotion. On the other hand, negative motivation can take the form of pay-cut and demotion.
4) Motivation is a complex process: Different individuals have different needs and expectations. Hence, all employees get motivated for different reasons at different times. Some employees get motivated by appreciation, whereas some employees get motivated by appraisals.

Questions Explain any three points of importance of directing as the function of management.
Answer : The three importance of directing are:
i. Initiate action:It enables employees to initiate action in the organisation towards the attainment of different objectives.
ii. Integrates employees’ efforts:It integrates employees’ efforts in the organisation so that every individual effort contributes to the organisational performance.
iii. Means of motivation: It guides employees to fully realise their potential and capabilities by motivating and providing effective leadership.

Questions. What is meant by communication? Explain how communication is an important function of management.
Answer : Communication is the exchange of information, facts and feelings such that a common understanding is created. The importance of communication are:
i. Provides coordination: Communication is the key to good coordination among various departments in an organisation. Communication promotes coordination by making clear the goals to be achieved and how they would be achieved.
ii. Enables smooth operations: Clear and effective communication enables smooth operations in the organisation. Various interactions in the organisation depend on effective communication. Working efforts of individuals and departments can be united towards common goals and objectives through proper communication
iii. Facilitates decision making: Taking meaningful decisions requires a pool of information which can be provided through good communication.
iv. Increases efficiency: Goals, objectives, instructions and targets are conveyed effectively through good communication. In this way, it enables smooth operations and improves efficiency.
v. Enables effective leadership: Communication forms a basis for effective leadership. Communication also helps in influencing subordinates in a positive manner. vi. Helps in motivation: Good communication is the basic tool for motivation. It is only with good communication that the needs of employees can be recognised and accordingly worked upon.

Questions. Why is directing known as the execution function of management?
Answer : Directing is known as the execution function of management because it converts plans into action. While the other functions prepare a setting for action, it initiates action in the organisation for the achievement of pre-determined goals.

Questions. Why is it said that directing flows from top to bottom?
Answer : Directing is said to flow from top to bottom because directions are given by the superior to the subordinates. It starts from top level and flows to lower level.

Questions. Define the term communication
Answer : Communication is the process of exchange of ideas, views, facts, feelings, etc., between or among people to create common understanding.