CBSE Class 12 Business Studies Directing Important Questions

QUES 1. 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.   

 Ans.    (i) Job security    (ii)  Employee’s recognition/ Organizational climate.  

QUES 2. 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.  

Ans.    (i) Co-partnership/Stock option.  (ii) Other incentives: (a) Pay and allowance, (b) Bonus.  

QUES 3. 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.   

 Ans.    (i) Motivation is missing.             (ii) (a) Lower level: offer monetary incentives.                  (b) Higher level: non-monetary incentive.  

QUES 4. 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.   

 Ans.    (i) Mr. John is following inverted ‘V’ pattern. (ii) Other two pattern: Wheel pattern, (b) Chain pattern.  

 QUES 5. Is directing requisite 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.                                                                                 

 Ans. No, directing is not requisite 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.  

QUES 6. 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.                             

 Ans. Informal Communication Limitations: The grapevine/informal communication spread rapidly and sometimes get 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.

 QUES 7. 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.                                                           

  Ans. 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.  

QUES 8. Rakesh is working under his superior Neeraj.  He always communicates useful ideas and suggestions to his superior regarding reduction of cost, improvement in the product, etc. Neeraj implements his suggestions and has always found favourable results, but he never appreciates Rakesh for his suggestions.  Now Rakesh decided not to communicate any suggestion or idea to Neeraj.  Identify the factor which acts as a communication barrier.        

 Ans. Lack of proper incentives (Personal Barriers to Communication)  

QUES 9. 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.                                                                                     

 Ans. Lack of attention (Psychological/Emotional Barriers to Communication)  

 QUES 10. 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.   

 Ans. The incentive provided to Rajat is – ‘Recognition’.

QUES 11. 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.        

Ans. 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.  

QUES 12. 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?                                                                                                              

 Ans. Mr. Kshitij is supervisor in the company as he acts as a link between workers and management.  

QUES 13. 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.                                                 

 Ans. Co-partnership/Stockoption

QUES 14. Rohit often notices that whenever he gives any instructions to his personal assistant subhash,He is not able to retain the information for a long time as most of the time he seems to be inattentive or not interested.

In the context of the above case:

Identify the type and name of the communication barrier which is adversly affecting the communication between Rohit and Subhash.

Describe briefly one more barrier of the same type as identified in part(a) of the Question. 

Ans.  a) Psychological barriers: loss by transmission and poor retention is the communication barrier which is adversely affecting the communication between Rohit and Subhash.

         b) One more barrier of the same type is premature evaluation.

Some times the receiver may tend to evaluate the meaning of message before the sender completes his message. This may happen due to preconceived notions or prejudices against the communication. 

QUES 15.Rejuvenate limited offers the following incentives to its employees at various levels. Classify them into financial incentives and non financial incentives.

Annual salary revision,awarding mementos, job security, Telephone facility, Bonus, and Shares of the company. How does motivation helps to reduce employee turnover?

 Ans.  (i) Financial incentives: Annual Salary revision, Telephone facility, Bonus and shares of Rejuvenate limited.(ii) Non Financial incentives: Awarding mementos, job security  Motivation helps to reduce employee turnover because it helps to identify the motivational needs of the employees and seek to provide suitable incentives. As a result the employees may not think of leaving the organization. This also helps to retain talented people in the organization.

QUES 16. Last year Madhur started a catering business in Ludhiana. However despite his utmost sincerity towards the work his business has not been able to make a place for itself in the market. The clients never seem to be satisfied with his services. One of the prime reasons for this is the fact that he is not able to instruct his staff clearly as to what they should do. Moreover, he fails to provide effective guidance and inspiration to them to ensure that his instructions are implemented in proper perspective. As a result,his business is running into major losses and he now plans to shutdown his business.

In the context of the above ,

Name the managerial function which Madhur is unable to perform and is leading to closure of  his business.

Briefly explain the four categories into which the main activities related to the function identified in (a) above may be broadly be grouped

 Ans. Madhur is unable to perform the directing function and it is leading to the closure of business.The four categories into which the main activities related to the directing function may be broadly be grouped as motivation/communication/supervision/leadership.

QUES 17. Mr. Shubhendu Bose is the owner of ‘Bikmac Enterprise’ carrying on the business of manufacturing various kinds of biscuits. There was a lot of discontentment in the organization and the targets were not being met. He asked his son, Naval, who had recently completed his MBA, to find out the reason. Naval found that all decision making of the enterprise were in thehands of his father. His father didn’t believe in his employees. As a result both the employer and the employees were not able to understand each other’s messages in the same sense. Thus, the employees were not happy and targets were not met. 

(a) Identify any two communication barriers because of which Bikmac Enterprise was not able to achieve its target.

(b) State any two features of informal communication. 

Identify any two values that are being communicated to the society in the above case.

 Ans.

a) Two communication barriers are:

(i) Organisational barrier/ Organisational policy

(ii) Psychological barrier/ Distrust.

 Organisational barrier: (Any one)

(i) Rigid Rules and regulations may delay communication.

(ii) Status of the superior may not allow his subordinates to express their feelings freely.

(iii) Complexity in organization structure leads to delayed and distorted communication.

(iv) Lack of organizational facilities like freQuesuent meetings, suggestion box etc. may discourage free flow of communication.

Psychological barrier: (any one)

i)Premature evaluation i.e. evaluating the meaning of the message before the completion of the message may lead to prejudices against communication.

(ii) Lack of attention i.e. non-listening of the message acts a major psychological barrier.

(iii) Loss by transmission and poor retention may act as a barrier to communication.

QUES 18. Jaideep recently joined as the Managing Director of ‘Tivori Ltd.’, an apparel designing company. He observed that the company had a number of experienced fashion designers on its payroll. They regularly offered useful suggestions which were neither appreciated nor rewarded by the company. Instead the company outsourced its services to some renowned fashion designers and paid them a good compensation for their services. Because of this the employees felt disheartened and stopped giving useful suggestions.

(a) Identify the communication barrier discussed above.

(b) State the category of this communication barrier.

(c) Explain any other communication barrier of the same category.

Ans. (a) Organisational policy

(b) Organisational barrier which arises from organisational structure, authority relationships, rules and regulations etc.

(c) Other communication barriers of the same category are: (Any one)

(i) Rules and regulations(ii) Status(iii) Complexity in organisational structure.(iv)Organisational facilities.

State the features of the element of the function of management used by the CEO.

QUES 19. ‘Alfa Ltd.’ was dealing in renewable energy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at time forced female team members to travel alone. As a result, the subordinates were not acting in desired manner to achieve organisational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that all the members including the leaders would travel together in future and would usefully utilize the travelling time in discussion with the subordinates about presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader.

Ans. Features of motivation:

(a) It is an internal feeling as the urges, drives or needs of human beings which influence human behaviour are internal.

(b) It produces goal directed behaviour as it stimulates people to accomplish desired goals.

(c) It can be positive in the form of positive rewards or negative like punishment, stopping increments etc.

(d) It is a complex process as any type of motivation may not have a uniform effect on all the members.

QUES 20. Mohit Gupta is working with ‘Yellow Security Services Ltd.’ He is also recruiting security guards for the company. The company provide security services in Delhi and Noida at short notice to various companies. The guards are recruited on temporary basis. The guards provided by this company are known for their honesty and punctuality. Mohit Gupta is well known in his village for providing employment to unskilled people.

(a)   Name the source of recruitment used by ‘Yellow Security Services Ltd.’

(b)  Identify the need of ‘Security Guards’ which is being fulfilled by the company as per Maslow’s Need Hierarchy.

Identify any two values communicated to the society in the above stated case.

Ans.

a) Labour Contractors (External Source)

b) Basic Physiological Needs Honesty, Punctuality and Providing employment

QUES 21.    Arun is working in a multinational company in Gurgaon. He was running temperature for the last many days. When his blood was tested, he was found positive for dengue with a very low platelet count. Therefore, he was admitted in the hospital and a blood transfusion was advised by the doctors. One of his colleagues sent a text message about it to his immediate superior ‘Mr. Narain’. ‘Mr. Narain’ in turn sent a text message to the employees of the organization requisition them to donate blood for Arun. When the General Manager came to know about it, he ordered for fumigation in the company premises and cleanliness of the surroundings.

(a)   From the above para Quesuote lines that indicate formal and informal communication.

Ans.

(a) Formal communication

‘When the General Manager came to know about it, he ordered for fumigation in the company premises and cleanliness of the surroundings.

Informal communication

‘One of his colleagues sent a text message about it to his immediate superior ‘Mr. Narain’.

OR

‘Mr. Narain’ in turn sent a text message to the employees of the organization requisition them to donate blood for Arun’.

(b) Features of Informal communication: (Any two)

(i) It takes place without following the formal lines of communication.

(ii) It arises out of social needs of the employees

(iii) It spreads rapidly/(or any other correct feature)

(c) Values being communicated to the society are:

(i) Concern for the environment

(ii) Cleanliness and hygiene

QUES 22. Neha was a regional sales manager in 'Good Look Garments Ltd' for ten years. On the retirement of the marketing manager Neha applied for the same post as she was extremely ambitious and had dedicated all her energies to obtain the post of marketing manager. However, the top management of the company decided to fill this post by selecting a better person from outside the company. Because of this Neha was heartbroken and her performance declined. When the new marketing manager joined, one of her major problems was how to motivate and inspire Neha to her former level of performance? Suggest any three non-financial incentives that the new marketing manager may use to motivate Neha.                           

Ans. The non-financial incentives that the new marketing manager may use to motivate Neha are: 1. Job enrichment which is concerned with designing jobs that include a greater variety of work content, reQuesuire higher level of knowledge and skill, give more autonomy and opportunity for personal growth. 2. Employee recognition which means acknowledgement with a show of appreciation. 3. Employee participation which means involving employees in decision making of issues related to them. 4. Employee empowerment which means giving more autonomy and powers to subordinates. 5. Job security which refers to providing stability to the employees about future income and work so that they do not feel worried on these aspects and work with greater zeal.

QUES 23. Explain any three assumptions of Maslow’s Need Hierarchy Theory.

Ans. According to Maslow’s Need Hierarchy Theory, within each individual, there exists a set of five needs that can be arranged in a hierarchy. Knowledge of these needs helps the manager in understanding the behaviour of employees. With identification of the needs of employees, appropriate motivation can be provided to them. The following are the three assumptions of this theory: i. People behave as per their need. In other words, the satisfaction of people’s needs guides their behaviour. ii. Needs of individuals can be arranged in a hierarchical order. That is, they can be ranked from very basic to higher levels. iii. An individual can move to a higher level need only when the lower level need in the hierarchy is satisfied.

QUES 24. Jhuma is working in a company on a permanent basis. As per the job agreement she had to work for 8 hours a day and was free to work overtime. Jhuma worked overtime, due to which she fell ill and had to take leave from her work. No one showed concern and equisized 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 Questing the lines from the above para, identify the needs of Jhuma which she is able to fulfill. (ii) Also explain two other needs of Jhuma followed by the above needs, which still remained to be satisfied.            

Ans. (i) Needs of Huma followed by the above needs, which she is able to fulfill: Physiological needs and safety/ security needs ‘Huma is working in a company on a permanent basis’. (ii) Needs of Huma which still remained 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 and attention.

QUES 25. ‘The organizations which are keen on developing effective communication, should adopt suitable measures to overcome the barriers to communication and improve communication effectiveness.' Suggest and explain any such five measures.

Ans. Measures to overcome communication barriers: (i) Clarify the ideas before communicating. (ii) Communicate according to the needs 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 present as well as future. (viii) Follow up communications (ix) Be a good listener.

QUES 26. Neha was a regional sales manager in 'Good Look Garments Ltd' for ten years. On the retirement of the marketing manager Neha applied for the same post as she was extremely ambitious and had dedicated all her energies to obtain the post of marketing manager. However, the top management of the company decided to fill this post by selecting a better person from outside the company. Because of this Neha was heartbroken and her performance declined. When the new marketing manager joined, one of her major problems was how to motivate and inspire Neha to her former level of performance? Suggest any three non-financial incentives that the new marketing manager may use to motivate Neha.                           

Ans. The non-financial incentives that the new marketing manager may use to motivate Neha are: 1. Job enrichment which is concerned with designing jobs that include a greater variety of work content, reQuesuire higher level of knowledge and skill, give more autonomy and opportunity for personal growth. 2. Employee recognition which means acknowledgement with a show of appreciation. 3. Employee participation which means involving employees in decision making of issues related to them. 4. Employee empowerment which means giving more autonomy and powers to subordinates. 5. Job security which refers to providing stability to the employees about future income and work so that they do not feel worried on these aspects and work with greater zeal.

QUES 27. 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.

Ans. (i) Motivation is missing.

        (ii) (a) Lower level: offer monetary incentives.

        (b)    Higher level: non-monetary incentive.

QUES 28. Is directing reQuesuired 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.

Ans. No, directing is not reQuesuired 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.

(i) Supervision (ii) Motivation (iii) Leadership (iv) Communication.

QUES 29. 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. 

Ans. 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.

QUES 30. Pramod was a supervisor at a „Annapurna Aata‟ factory. The factory was producing 200 Quesuintals 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. 

Ans. 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.

Q. 31. Ms. Snigdha, Production Manager and Mr. Sarthak, Marketing manager of an electronics company are not on talking terms with each other. Because of that they do not transfer complete information to each other.

(a) Identify the element of directing which becomes ineffective due to the behavior of the managers.
(b) Also, explain the factor which led to their such behavior.

Ans. (a) Communication Distrust (Psychological barrier)
Distrust between sender and receiver causes failure of communication. If they do not believe each other, they cannot understand each other‟s message in its original sense.

Q. 32. 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.

Ans. „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.

Q. 33. 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.

Ans. Directing and Controlling
Employee recognition programme (non-monetary incentive) Vale:
Sensitivity of environment
Good behavior towards employees.

Q. 34. 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.

Ans. 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.

Q. 35. Mr. Sandeep is the marketing manager of a company manufacturing designer clothes. One day, in the morning while leaving home he had a quarrel with a person in his neighbourhood on some issue. That person is a criminal who could abuse his family members. Mr. Sandeep, on that day, is very worried and angry too on the behavior of the neighbouring person. On that day, a meeting was held by a team of marketing and design experts to ensure that whatever is produced is according to market demand and tastes and fashion of the customers. But Mr. Sandeep could not pay attention to the discussion between them.
(a) Identify the type of barriers to communication mentioned in the above para. Justify your answer.
(b) Explain any two such barriers to communication.

Ans.
Psychological barriers.
These are related to the state of mind of both sender and receiver of communication. For example, a worried person cannot communicate properly and an angry receiver cannot understand the real meaning of message.
„Mr. Sandeep is very worried and angry on that day. So he could not pay attention to the discussion in the meeting.‟
Psychological barriers to communication:
Lack of attention: the pre-occupied mind of receiver and the resulting non-listening of message acts as a major psychological barrier.
Premature evaluation: Sometimes people form a judgement before the sender completes his message, which causes failure of communication.

Q. 36. Mrs. Rajlaxmi is working as the Human Resource Cosultant in a firm manufacturing cosmetic, which is facing a problem of high employee turnover. The CED of the company has invited suggestions from her for retaining the talented employees & reducing the employee turnover. Mrs. Rajlaxmi recommends that the good employees be rewarded in a way that it creates a feeling of ownership among the employees and at the same time makes them contribute towards the growth of the organization.
(a) Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi to the CEO of the company.
(b) Also explain any two other incentives of the same type.

Ans.
Financial incentive.
Co-Partnership/Stock Option Other financial incentives:
Pay and allowances: For every employee, salary is the basic financial incentive. It includes basic pay, dearness allowance and other allowance. Pay hike and increments improve performance level of employees.

Profit sharing: Employees are given a share in the profits of the organization. This motives them to improve their performance and contributes to increase in profits of the organization.

Q. 37. . 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.

Ans.
Directing.
(i) Recognition
(ii) Autonomy
Organizational climate.
(i) Ethical behavior
(ii) Motivating employees
(iii) Taking Suggestions from employing.

Q. 38. 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.

Ans. 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.

Q. 39. Neeraj, a sales representative of „Omida Ltd‟ has changed seven jobs in the last one year. He is a hard working person but is not able to finalise deals with the customer due to his inadequate vocabulary and omission of needed words. Sometimes he uses wrong words because of which intended meaning is not conveyed. All this created a mis- understanding between him and his cliens.
(a) Identify the communication barrier discussed above.
(b) State the category of this communication barrier.
(c) Explain any other communication barrier of the same category.

Ans.
Badly expressed message
Semantic barrier, which arises from problems and obstructions in the process of encoding and decoding of message into words or impressions.
Technical jargon; Specialists use technical language or jargon while explaining to the workings, e.g., tariff, quotas, etc. therefore, they may not understand the actual meaning of many such words.

Q. 40. 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.

Ans. 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.

Q. 41. 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.
Ans.
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.

Q. 4.2.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?
ANS. 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.

Q. 43. 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.
Ans.
(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

Q. 44. 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.
Ans.
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. (any two)

Q. 45. Neeraj has been working as a sewing machine operator in an export house for the past ten years. His basic work is to seam the parts of a garment together, and attach buttons, hooks, zippers, and accessories to produce clothing. Considering the fact that Neeraj is an experienced
operator, he is well versed with the fundamentals of industrial production and possesses good communication skills. The plant superintendent in the factory recommends Neeraj‟s name to the production manager for the post of supervisor which will fall vacant after a month on the retirement of the present supervisor. Consequently, Neeraj is assigned the post of supervisor and his salary is increased accordingly. Moreover, as per the policy of the export house, he is offered free medical aid and education to his two children.
In the context of the above case:
Identify the type of source of recruitment used by the export house to fill up the post of supervisor. Give any two advantages of using this source.
Identify the types of financial incentives offered to Neeraj by quoting lines from the paragraph.
Ans.
The internal source of recruitment has been used by the export house to fill up the post of supervisor through promotion. The two advantages of using internal source of recruitment are stated below.
Employees are motivated to improve their performance: When employees are promoted internally from within an organization, it has a positive impact on their commitment and loyalty and they tend remain satisfied with their jobs. Also, it may lead to a chain of promotion at lower levels in the organization. As a result, it motivates the employees to improve their performance through learning and practice. Internal recruitment simplifies the process of selection and placement: The candidates can be appraised more perfectly and economically as that are already working in the organization. As the candidates are already known to the organization, it is considered to be a more reliable method of recruitment.
The types of financial incentives offered to Neeraj are as follows:
Pay and allowances: “his salary is increased accordingly.”
Perquisites: “as per the policy of the export house, he is offered free medical aid and education to his two children.”

Q. 46. Sunidhi has started a designer studio in the basement of her residence after completing her masters in fashion designing. She has appointed ten employees to take care of the various aspects of the work. She interacts regularly with each employee to tell exactly what is expected of him/.her and what he/she needs to do to be regarded as a good performer. At the same time she allows a free work environment wherein the employees openly chit chat with each other in order to fulfil their social and emotional needs. Sometimes, these interactions also lead to spreading rumours which are not authentic.
In the context of the above case: Name and explain the two types of communication being referred to in the above paragraph.
How does effective communication increases managerial efficiency?

Ans.
The two types of communication being referred to in the above paragraph are formal communication and informal communication.
Formal communication: The communication that flows through official channels designed in the organization structure is called formal communication. This communication may take place between a subordinate and superior or among same team employees or managers. Usually a written record of such communications is maintained, recorded and filed in the office. Formal communication may be further classified as – Vertical and Horizontal.
Informal communication: Informal communication is the type of communication that takes place without following the formal lines of communication. It is generally referred to as the „grapevine‟ because it spreads throughout the organization with its branches going out in all directions in utter disregard to the levels of authority. The informal communication arises out of needs of employees to exchange their views, which cannot be done through formal channels.
Effective communication increases managerial efficiency by lubricating the working of the entire organization through quick and effective performance of managerial functions. It enables the management to express the goals and targets, issue instructions, allocate jobs and responsibilities and look after the performance of subordinates.

Q. 47. Gagan has joined as a Managing Director of True Help Ltd., a company engaged in the business of providing road side assistance to the vehicle owners. He was previously working in an automobile company. As a part of the joining incentive, the company has allotted him 400 shares of the company.
In context of the above case:
Identify the type of source of recruitment used by True Help Ltd. to fill up the post of Managing Director.
Identify the type of financial incentive offered to Gagan. Also, state any one other method that can be used to offer financial incentives to the employees. Ans.
External source of recruitment has been used by True Help Ltd. to fill up the post of Managing Director.
Co-partnership/ Stock option is the type of financial incentive offered to Gagan. The other method that can be used to offer financial incentives to the employees is Bonus. Bonus is an incentive offered over and above the wages/ salary to the employees.

Q. 48. Mr. Naresh is working as a Production Manager in Vohra Ltd. His subordinates are mostly engineers and qualified technicians.
As a manager, he is very strict, does not listen to any suggestions or feedbacks given by his subordinates. He expects them to following his instructions without any questions and does not allow them to give suggestions.
What leadership style does the manager follow?
Is such a leadership style beneficial for the company? Explain. State any one value being overlooked by him?
Ans.
Autocratic leadership
This leadership style is effective in getting productivity in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity. Quick decision-making is also facilitated.
Value overlooked:
Respect for other‟s opinion

Q 49. Mr. Kirtikumar Das is a management professional for the last 10 years. In a recent assignment for an infrastructure company, he advised his client that he must take care of handicap people while constructing commercial or residential properties so that they do not feel troubled while moving around in those buildings. Do you agree with this suggestion when it is going to add cost to the builder of structure resulting in reduced profits?

Ans. Yes, we agree with this suggestion as we have to take care of the handicapped people in our society. Mr. Kirtikumar Das has reflected the value of human touch when he suggested this to the client and also client should not worry about the additional cost as this might enhance his goodwill in the market that this company is good in discharging its responsibilities toward the customers and society.

Q 50. There is a get together in an organization where only selected few employees are invited who are close to top management of the company. Which value is missing in this case?

Ans. In this case, the value of equity is missing as the company should involve all the employees of the organization or department of the organization so that those left behind do not feel bad about it. All employees should be given equal treatment without any favor to a few.

Q 51. Mr. Shyam Kale is works in a company where he is usually required to sit late hours due to excessive work load. One day his son was ill and he wanted to have an off to take care of his ailing son but his boss refused to give him leave. Which value is not followed by his boss in this case?

Ans. In this case, Mr. Shyam Kale‟s boss has not followed the value of human touch as he should allow his subordinate to look after his son for a day. This is required as he is working for long hours for quiet sometime and may require time to look after his family.

Q 52. MRF Tyre Manufacturing Co. appoints Mr. Sumit Shinde as supervisor of their production department. He is kind and guides his subordinates. He clarifies their doubts in performing the task. This helps the worker to achieve their targets. As a supervisor, what functions will you perform to cope with the situation? What positive values exhibited by Mr. Sumit Shinde?

• Help
• Motivation
• Compassion
• Responsible

Q 53. Mr. Raju Shrivastav, a Sales Manager, achieved his sales targets one month in advance. His achievement was displayed on the notice board and a certificate for the best performance was awarded to him by the CEO of the Co. Name the type of incentive offered to the employees. What values can be generated among the workers by adopting this incentive?

• Recognition
• Motivation
• Sense of appreciation
• Encouragement
• Inspiration to other workers

Q 54. In an organization, all employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone talking to each other and thus resulting inefficiency in the office. It has resulted in loss of secrecy and leakage of confidential information. What system do you think the manager should adopt to improve communication? What values are overlooked by the management in the above case?

• Discipline
• Honesty
• Loyalty

Q 55. Mr. Deodhar is a production manager in a leather manufacturing unit. He was very strict and does not have cordial relations with his subordinates. So, the subordinates always feel they are under stress and they are not working in a good environment. The subordinates always take least initiative and fear to express their problems or suggestions before Mr. Deodhar. What do you think is wrong with Mr. Deodhar? Name the values which are ignored. Contextual: Not able to provide effective leadership to his workers.

• Empathy
• Respect
• Initiative

Q 56. Blue Star Ltd. is an organization manufacturing generators. The marketing manager delegates the task to five sales representatives working under him. Among them the three sales representatives was able to achieve their respective targets. As a result the marketing manager talks to the CEO of the company to recognize the performance of the three sales representatives. The company decides to upgrade their cadre and their salary package also.
Name and explain the element of directing function which the company assures the three representatives to achieve their targets. What values does the company inculcate to the other two sales representatives?
• Commitment
• Hard work
• Responsibility
 Cooperation