business studies class 12 directing case study questions

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Class 12th Business Studies - Directing Case Study Questions and Answers 2022 - 2023

By QB365 on 08 Sep, 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 12 Business Studies Subject - Directing, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

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Directing case study questions with answer key.

12th Standard CBSE

Final Semester - June 2015

Business Studies

Mr. Sunil Diali is a safety officer in a reputed PSU sector ECL. He supervises the workers towards the predetermined goals of the organisation and directs how to eradicate unsafe practices of inundation, fire breakouts, existence of inflammable gases etc. On one such instances there was huge fire breakout in the underground mines and the workers morale was down and demotivated because of several risk hazards. Mr. Diali observed the whole situation and consulted with all his workers and constantly monitored, guided and inspired them to integrate their efforts and accept the situation as a challenge and take adequate safety measures for fire extinguish and subsidizing its effects. Thereby, production turnover was outstanding and out performed other subsidiaries.Mr.Diali was recognised with Bravery Award from CIL. 1. Mr. Diali worked towards predetermined goals of the organization . Which important function of directing is addressed here?

2. Mr. Diali consulted with all his workers, he listened to their opinions. Which form of leadership is identified here?

3. Braveryawardis form of non-financial incentives.

4. Under Maslow’s hierarchy need theory which need of Mr. Diali has been met through respect and recognition among other employees?

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Directing case study questions with answer key answer keys.

1. (b) Initiates action 2. (c) Democratic 3. (d) Employee recognition 4. (c) Esteem needs

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CBSE Class 12 Case Studies In Business Studies – Directing

DIRECTING Directing: Definition Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation for the purpose of achieving organisational goals.

Importance of Directing

• Directing helps to initiate action by people in the organisation towards attainment of desired objectives.
• Directing integrates employees’ efforts in the organisation in such a way that it contributes to the organisational performance.
• Directing guides employees to fully realise their potential through effective communication, motivation and leadership.
• Directing facilitates introduction of needed changes in the organisation as it helps to reduce employees’ resistance and develop an environment which is conducive to introducing changes in the organisation.
• Effective directing helps to bring stability and balance in the organisation since it encourages cooperation and commitment.

Features of Directing

• Directing initiates action in the organisation as it is an executive function of management.
• Directing takes place at every level of management wherever superior – subordinate relations exist.
• Directing is a continuous process and is carried on till an organisation ceases to exist.
• Directing flows from top to bottom as it is first initiated at top level and flows to the bottom through organisational hierarchy.

Elements of Directing

• Supervision
• Communication

SUPERVISION Supervision: Definition Supervision is the process of overseeing the work of a subordinate by his superior.

Importance of Supervision

• A good supervisor acts as a guide, friend and philosopher to the workers.
• Supervisor acts as a link between workers and management.
• Supervisor plays a crucial role in maintaining group unity among workers placed under his control.
• Supervisor ensures performance of work according to the targets set and motivates the workers effectively.
• Supervisor provides good on-the-job training to the workers and employees.
• A supervisor with good leadership qualities can build up high morale among workers.
• A good supervisor analyses the work performed and gives feedback to the workers.

MOTIVATION Motivation: Definition Motivation is the process of stimulating people to action to accomplish desired goals.

Importance of Motivation

• Motivation helps to improve the performance of both the employees as well as the organisation.
• Motivation helps to mould negative or indifferent attitudes of employees into positive attitudes for the benefit of theorganisation.
• Motivation helps to reduce the employee turnover and leads to reduction in the cost to be incurred on new recruitment and training.
• Motivation helps managers to introduce changes within the organisation smoothly without much resistance from their subordinates.
• Motivation helps to reduce absenteeism in the organisation as work becomes a source of pleasure and workers attend to the work regularly.

Features of Motivation

• Motivation is an internal feeling as it relates to the urge, drives, desires, or needs of human beings.
• Motivation produces goal directed behaviour.
• Motivation can be either positive or negative.
• Motivation is a comolex nrocess as the individuals may differ in their perceptions and reactions. expectations,

Abraham Maslow’s Need Hierarchy Theory of Motivation

• Basic Physiological Needs refer to the needs that are most basic in the hierarchy like hunger, thirst, shelter etc. which can be fulfilled by basic salary.
• Safety/Security Needs refer to the needs to get security and protection from physical and emotional harm which can be fulfilled through job security, stability of income, pension plans etc.
• Affiliation/Belonging Needs refer to the needs that relate to affection, sense of belongingness, acceptance and friendship which can be fulfilled through team work, kindness etc.
• Esteem Needs include factors such as self-respect, autonomy status, recognition and attention which can be fulfilled by giving praise and recognition, offering promotions etc.
• Self-Actualisation Needs refer to the drive to become what one is capable of becoming which can be fulfilled by providing challenging work and giving them flexibility and autonomy in their jobs .

INCENTIVES Incentive: Definition Incentive means all measures which are used to motivate people to improve performance.

Types of Financial Incentives

• Pay and allowances
• Productivity linked wage incentives
• Profit Sharing
• Co-partnership/ Stock option
• Retirement Benefits
• Perquisites

Types of Incentives

• Financial incentives refers to incentives which are in direct monetary form.
• Non-financial incentives mainly focus on psychological, social and emotional needs.

Types of Non-financial Incentives

• Organisational Climate
• Career Advancement Opportunity
• Job Enrichment
• Employee Recognition programmes
• Job security
• Employee participation
• Employee Empowerment

LEADERSHIP Leadership: Definition Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.

Importance of Leadership

• It helps to bring about a positive change in the behaviour of the employees for the benefit Of the organisation.
• It helps to maintain good personal relations and also helps the followers in fulfilling their needs.
• It helps to introduce the required changes in the organisation smoothly.
• It helps to resolve the conflicts within the organisation effectively without leading to any disruptions in working of the organisation.
• It facilitates training of subordinates by the leader.

Features of Leadership

• Leadership shows the ability of an individual to influence others.
• Leadership seeks to bring about a desired change in the behaviour of others.
• Leadership reflects the interpersonal relations between leaders and followers.
• Leadership is an effective tool to achieve common goals of the drganisation.
• Leadership is a continuous process.

Styles of Leadership

• Autocratic leadership
• Democratic leadership
• Laissez-faire

COMMUNICATION Communication: Definition Communication is defined as a process of exchange of ideas, views, facts, feelings etc., between or among people to create common understanding.

Importance of Communication

• Acts as basis of coordination among departments, activities and persons in the organisation
• Helps in smooth working of an enterprise as all organisational interactions depend on communica tions.
• Acts as basis of decision making as it provides the information needed for decision making.
• Increases managerial efficiency as it lubricates the entire organisation and keeps the organisation at work with efficiency.
• Promotes cooperation and industrial peace as the two way communication promotes cooperation and mutual understanding between the management and workers.
• Effective communication helps to establish effective leadership.
• Boosts morale and provides motivation to the employees and managers to achieve higher goals.

Elements Involved in Communication Process

• Sender refers to a person who conveys his thoughts or ideas to the receiver.
• Message is the content of ideas, feelings, suggestions, order etc., intended to be communicated.
• Encoding refers to the process of converting the message into communication symbols such as words, pictures, gestures etc.,
• Media is the path through which encoded message is transmitted to receiver through a face to face interaction, phone call, internet
• Decoding is the process of converting encoded symbols of the sender.
• Receiver refers to the person who receives communication of the sender.
• Feedback includes all those actions of receiver indicating that he has received and understood message of sender.
• Noise means some obstruction to communication

Types of Formal Communication Networks

• Upwards (from subordinate to his superior)
• Downward (froma superior to his subordinate) Horizontal
• Takes place between one division and another
• Informal communication is generally referred to as the ‘Grapevine’ because it spreads throughout the organisation with its branches going out in all directions in complete disregard to the levels of au thority.

BARRIERS TO COMMUNICATION IN THE ORGANISATIONS Semantic Barriers

• Badly expressed massage
• Symbols with different meanings
• Faulty translations
• Unclarified assumptions
• Technical jargon
• Body language and gesture decoding

Organisational Barriers

• Organisational policy
• Rules and regulations
• Complexity in organisation structure
• Organisational facilities

Psychological Barriers

• Premature evaluation
• Lack of attention
• Loss by transmission and poor retention

Personal Barriers

• Fear of challenge to authority
• Lack of confidence of superior on his subordinates
• Unwillingness to communicate
• Lack of proper incentives

Ways of Improving Communication Effectiveness

• Clarifying the ideas before communication
• Communicate according to the needs of receiver
• Consult others before communicating
• Be aware of languages, tone and content of message
• Convey things of help and value to listeners
• Ensure proper feedback
• Follow up communications
• Be a good listener

LATEST CBSE QUESTIONS

Question 1. Give the meaning of ‘motivation’ as an element of directing. (CBSE, Delhi 2017) Answer: Motivation is the process of stimulating people to action to accomplish desired goals.

Question 2. Explain briefly any three functions performed by a supervisor. (CBSE, Delhi 2017) Answer: The three functions performed by the supervisor are stated below:

• Supervisor maintains day-to-day contact and maintains friendly relations with workers and acts as a guide, friend and philosopher to them.
• Supervisor provides good on the-job training to the workers and employees and helps to build efficient team of workers.
• A good supervisor analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills.

Question 3. Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms. Kanta was efficiently handling the processing of order and had a team of fourteen motivated employees working under her. Everything was going on well. Unfortunately she met with an accident. Umang knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate the speedy processing of orders was planned. Everybody agreed to work as team because the behaviour of Umang Gupta was positive towards the employees of the organisation. Hence everyone put in extra time and efforts and the targets were met on time. Not only this, Umang visited Ms. Kanta and advised her to take sufficient rest.

• Identify the leadership style of Umang Gupta and draw a diagram depicting the style.
• State any two values highlighted by the behaviour of Umang Gupta. (CBSE, Delhi 2017)
• Responsibility
• Participation

Question 4. Explain any three points that highlight the importance of directing function of management. (CBSE, Delhi 2017) Answer: The three points that highlight the importance of directing function of management are described below:

• Initiate action: Directing helps to initiate action by people in the organisation 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 organisation towards the realisation of the organisational goals.
• Helps to realise their potential: Directing provides effective guidance, motivation and leadership to the employees so as to enable them to realise their potential and capabilities.

Question 5. Explain briefly any three measures to overcome the communication barriers. (CBSE, Delhi 2017) Answer: The three measures to overcome the communication barriers:

• Communicate according to the needs of receiver: For effective communication it is important that the message should be adjusted according to the education and understanding levels of the receiver.
• Be aware of languages, tone and content of message: The contents of the message, tone, language used, manner in which the message is to be communicated are the important aspects of effective communication.
• Ensure proper feedback: Inorder to ensure the success of communication, questions may be asked regarding the message conveyed. Thus the communication process may be improved by the feedback received to make ensure that the receiver has understood the sender’s ideas clearly.

Question 6. Explain briefly any three semantic barriers to communication. (CBSE, OD 2017) Answer: Semantic barriers are the ones that arise due to the problems and hinderances in the process of encoding and decoding of message into words. The three types of semantic barriers are described below:

• Badly expressed message: Many a times due to inadequate vocabulary, usage of wrong words, omission of required words etc. the sender may not be able to convey the intended meaning to the receiver.
• Faulty translations: Many a times a message has to be translated in an easily understandable language keeping in view the needs of the receiver. However, the message may not be conveyed in the desired manner if the translator is not proficient in both the languages and mistakes may happen which is likely to change the meaning of messages due to use of inappropriate words.
• Technical jargon: In order to communicate effectively it is important that the words used are easily understandable by the receiver. However, many a times it has been observed that the specialists may use technical terminology which cannot be comprehended by the receivers in the desired manner.

Question 7. Explain briefly any three organisational barriers to communication. (CBSE, OD 2017) Answer: Organisation barriers includes the factors related to organisation structure, rules and regulation, authority responsibility relationships etc. which are likely to hinder the smooth flow of communication within the organisation. The three types of organizational barriers are described below:

• Organisational policy: The effectiveness of communications within the organization is likely to be adversely affected if the organizational policy either explicitly or implicitly restricts the free flow of communication within the organization like if an organization is highly centralized.
• Status: The subordinates may not be able to express themselves freely if their superior being status conscious prefers to maintain a distance with them. This kind of an attitude of the superior tends to create a psychological distance between them.
• Organisational facilities: If an organization provides facilities like frequent meetings, suggestion box, complaint box, social and cultural gathering, transparency in operations and so on in order to facilitate free flow of communication it will lead to better management. This approach will foster smooth, clear and timely communications.

Question 8. Explain briefly any three personal barriers to communication. (CBSE, OD 2017) Answer: The personal barriers arise as a result of the personal outlook of both sender and receiver that may exert influence on effective communication. The three personal barriers to communication are described below:

• Tear of challenge to authority: At times a superior may tend to withhold or suppress such communication which he feels is likely to have an adverse affect on his authority.
• Lack of confidence of superior on his subordinates: A superior is unlikely to seek any advise from his subordinates if he lacks confidence on their competencies.
• Unwillingness to communicate: Many a times, a subordinate may withhold any communication deliberately if he feels its disclosure is likely to affect his/her interests adversely.

Question 9. Why is it said that directing takes place where ever superior subordinate relationship exists? (CBSE, Sample Paper, 2017) Answer: In every organisation, directing function is performed by every manager regardless of the level of management from top executive to supervisor. Therefore, it is said that directing takes place wherever superior subordinate relations exist .

Question 10. M/s Beta Ltd. deals in consumer goods. It employs 100 workers and 10 operative managers who give guidance and support to the workers while operating the machinery. The company has a policy of granting leave as per the requirement of the workers. Workers 3 H 3 are generally granted leave on festivals and special occasions. Recently on Puja festival, it received a big order. Workers are keen to take Puja holidays while management is pressing hard for overtime. This matter was placed before the Personnel Manager who called the meeting of operative managers and workers to inform them about the changes in the incentive plan which states payment of double wages for working overtime and triple wages for working on holidays. Workers without any pressure voluntarily took limited holidays and were able to increase their earning by working overtime and on holidays. During Board of Directors meeting, Personnel Manager was asked to update the management for achieving higher output, meeting timely supplies without any confrontation with workers. Personnel Manager replied, “I just used a carrot with no sticks approach”. (CBSE, Sample Paper, 2017) By quoting the lines from above paragraph state any two elements of directing. Answer: The two elements of directing being discussed in the above paragraph are outlined below:

• Supervision: Supervision is the process of overseeing the work of the subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets. Supervision-” it employs 10 operating managers ……………….. support to the workers.”
• Motivation: Motivation is the process of stimulating people to action to accomplish desired goals. Motivation-“to pay double wages for working overtime and triple wages for working on holidays”.

Question 11. Describe briefly Maslow’s need hierarchy theory of motivation. (CBSE, Sample Paper, 2017) Answer: The various types of needs that exist in a hierarchy within every human being are stated below:

• Basic Physiological Needs: These needs are most basic in the hierarchy and are linked to primary needs like hunger, thirst, shelter etc. These needs of employees may be fulfilled by providing basic salary and the necessary breaks to use the washroom and eat food.
• Safety/Security Needs: These needs offer security and protection from physical and emotional harm. Job security and safe working conditions may be offered to the employees for the fulfillment of these needs.
• Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. By encouraging cooperative teamwork and by being-an accessible and kind superiors these needs of employees may be fulfilled.
• Esteem Needs: These include factors such as self-respect, autonomy, status, recognition and attention. By giving praise and recognition when the employee does well and offering promotion these needs of the employee may be fulfilled.
• Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfilment and achievement of goals. By providing challenging work and giving them flexibility and autonomy in their jobs, these needs of the employees may be fulfilled.

Question 12. 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 organisation requesting them to donate blood for Prateek. When the General Manager came to 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. (CBSE, OD 2016)
• 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 organisation requesting them to donate blood for Prateek.” Formal communication: “When the general manger came to know about it, he ordered for fumigation in the company premises and cleaning surroundings.”
• The grapevine/ informal communication spreads very fast and sometimes gets distorted.
• It is very difficult to detect the source of such communication.
• Cleanliness

Question 13. Mr. Shubhendu Bose is the owner of Bikmac Enterprises carrying on the business of manufacturing various kinds of biscuits. There was a lot of discontentment in the organisation 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 the decision-making of the enterprise were in the hands 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 others’ messages in the same sense. Thus, the employees were not happy and targets were not met.

• Identify any two communication barriers because of which Bikmac Enterprises was not able to achieve its target.
• State one more barrier each of the types identified in (1) above. (CBSE, Delhi 2016)
• Organisational barriers: Organisational Policy If the organisational policy, is not supportive to free flow of communication, it may hamper effectiveness of communications. Like in the above case Naval found that all the decision making power of the organisation was highly centralised as it was in hands of his father only.
• Psychological barriers: Distrust Sometimes if there is lack of trust between the parties, they cannot understand each other’s message in the same sense. Like in the above case Naval found out that his father didn’t believe in his employees.
• Organisational barriers: Status: Sometimes a status conscious manager also may not allow his subordinates to express their feelings freely. This kind of an attitude may create psychological distance between him and his subordinates. Psychological barriers: Premature evaluation: Sometimes people tend to evaluate the meaning of message even before the sender completes his message on the basis of their own judgement, experience etc.

Question 14. Mr. Fernandes is the owner of Unibie Enterprises, carrying on the business of manufactur¬ing electrical appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son, Michel, who has recently completed his MBA to find out the reason. Michel found that all the decision-making of the enterprise were in the hands of his father. Moreover, his father did not have confidence in the competency of the employees. Thus, the employees were not happy.

• Identify any two communication barriers because of which Unibie Enterprise was not able to achieve its target.
• State one more barrier each of the types identified in part (1) above. (CBSE, OD 2016)
• Organisational barriers: Organisational policy If the organisational policy, is not supportive to free flow of communication, it may hamper effectiveness of communications. Like in the above case Michel found that all the decision making power of the organisation was highly centralised as it was in hands of his father only.
• Personal barriers: Lack of confidence of superior in the subordinate: The personal factors of both sender and receiver may exert influence on effective communication and they may not be able to understand each other’s message in the same sense. Like in the above case Michel found out that his father didn’t have confidence in the competency of the employees.
• Organisational barriers: Status: Sometimes a status conscious manager also may not allow his subordinates to express their feelings freely. This kind of an attitude may create psychological distance between him and his subordinates. Personal barriers: Pear of challenge to authority: If a superior may withhold or suppress the communication that he may perceive is likely to have an adverse affect on his authority.

Question 15. Alfa Ltd. was dealing in renewable energy services. To get the business, the team leader and his team used to travel to different states to give presentations to the clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time-consuming but also forced the female team members to travel alone at times. As a result, the subordinates were not acting in a desired manner to achieve the organisational goals. The CEO of the company 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 in future, all the members including the leader would travel together and usefully utilise the travelling time in discussion about the 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. State the features of the element of the function of management used by the CEO. (CBSE, OD 2016) Answer: The CEO Alfa Ltd. has used Motivation, which is an element of directing function of management in order to deal with the situation effectively. The features of motivation are explained below:

• Motivation is an internal feeling: An urge, drives, or needs of human being, which are internal, but likely to influence human behaviour.
• Motivation produces goal directed behaviour: A motivated employees is likely to act in a desired manner and contribute effectively.
• Motivation can be either positive or negative: Positive motivation can be provided through rewards like increase in pay, promotion, recognition etc. Negative motivation involves use of negative means like punishment, stopping increments, threatening etc. which also may prompt a person to act in the desired way.

Question 16. Samita 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 work. When the manager senior to her retired, all her colleagues thought that now Samita would be promoted. But to everyone’s surprise, the vacant post was filled by an outsider, Mrs. Rita. Samita felt demoralised and her performance started declining. She would absent 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 notices Samita’s behaviour and felt that her performance could be improved. She started involving Samita in the decision-making issues related to the organisation and made her a part of a high level joint-management committee. Samita was now punctual in office and her performance started improving.

• Identify the function of management being performed by Mrs. Rita.
• Name the element of the above function of management which helped Rita improve Samita’s behaviour.
• State any three features of the element identified in (2) above. (CBSE, Delhi 2015)
• Mrs. Rita has performed the directing function of management.
• Mrs. Rita has been able to improve Samita’s behaviour with the help of motivation which is an element of directing.
• Motivation is an internal feeling: An urge, drives, or needs of human being, which are internal, but are likely to influence human behaviour.
• Motivation can be either positive or negative: Positive motivation can be provided through rewards like increase in pay, promotion, recognition etc., Negative motivation involves use of negative means like punishment, stopping increments, threatening etc. which also may prompt a person to act in the desired way.

Question 17. 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.

• Identify the communication barrier discussed above.
• State the category of this communication barrier.
• Explain any other communication barriers of the same category. (CBSE, OD 2015)
• The communication barrier discussed in the above paragraph is Lack of proper incentives
• It is a type of personal barrier.
• Fear of challenge to authority: If a superior may withhold or suppress the communication which he perceives is likely to adversely affect his authority..
• Lack of confidence of superior on his subordinates: A superior may not seek the advice or opinions of their subordinates if he / she do not have confidence on their competency.
• Unwillingness to communicate: Sometimes, subordinates may deliberately with hold any communication with their superiors, if they perceive that it may adversely affect their personal interests.

Question 18. Neeraj, a sales representative of Omida. Ltd. has changed seven jobs in the last one year. He is a hardworking person but is not able to finalise deals with customers due to his inadequate vocabulary and omission of needed words. Sometimes, he uses wrong words because of which the intended meaning is not conveyed. All this creates a misunderstandings between him and his clients.

• Explain any other communication barriers of the same category. (CBSE, Delhi 2015)
• The communication barrier discussed above is badly expressed message.
• This kind of barrier falls in the category of semantic barriers.
• Symbols with different meanings: Sometimes, a word may have several meanings. The communication will be effective only if the receiver perceives it in the same manner as intended by communicator.
• Faulty translations: Many a times it has been noted that if the translator is not proficient with both the languages, mistakes may creep in causing different meanings to the communication.
• Technical jargon: It is usually seen that specialists use technical jargon while explaining something. If the persons with whom they are communicating are not specialists in the concerned field, they may not be able to understand the actual meaning of many such words.
• Body language and gesture decoding: While speaking, one may tend to move his/her body in a certain manner. If there is no match between what is said and what is expressed in body movements, communications may be wrongly perceived by the receiver.

Question 19. Pramod was a supervisor at ‘Annapurna Aata’ factory. The factory was producing 200 quintals of aata every day. His job was to make sure that the work went 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. (CBSE, Delhi 2015) Answer: As a supervisor of ‘Annapurna Atta/ Pramod has adopted the democratic style of leadership. Democratic leadership is also known as participative leadership. In this type of leadership style, the members of the group take a more participative role in the decision-making process. Everyone is given the opportunity to participate, ideas are exchanged freely, and discussion is encouraged. It is one of the most effective style of leadership and leads to higher productivity, better contributions from group members, and increased group morale.

Question 20. Rahim was working in an enterprise on a 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.

• By quoting lines from the above paragraph, identify the needs of Rahim that are satisfied by the offer of the cycle company.
• Also, explain two other needs of Rahim followed by above that are still to be satisfied. (CBSE, Delhi 2014)
• The physiological needs and safety needs of Rahim are being satisfied by the offer of the company.
• Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. The organisation, by encouraging cooperative teamwork and by having accessible and kind superiors, can fulfill these needs of its employees.
• Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention. The organisation,by giving praise and recognition when the employees do well, and offering promotions, can fulfill these needs of its employees.

Question 21. Ankur is working as a production manager in an organisation. His subordinate, Saurabh, discussed with him a method of 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 communication barrier. Explain three other factors of the same group of communication barriers. (CBSE, OD 2012) Answer: Ankur is not in a position to understand the message due to lack of attention. It is a type of psychological barrier. The preoccupied mind of the receiver leads to non-listening of a message which acts as a major psychological barrier. Some of the other psychological barriers are described below:

• Premature evaluation: Sometimes people tend to evaluate the meaning of a message on the basis of their own judgement, experience etc., even before the sender completes his message. This may lead to misinterpretation of the message.
• Loss by transmission and poor retention: When communication passes through various levels, successive transmissions of the message result in the loss of information or transmission of inaccurate information. Also, sometimes due to poor retention, people cannot retain the information for a long time if they are inattentive or not interested.
• Distrust: If the communicator and communicator not trust each other, it may act as a barrier. This is because if they do not believe each other, they may not understand each other’s message in the desired sense.

Question 22. Rakesh is working under his superior Neeraj. He always communicate useful ideas and suggestions to his superior regarding the reduction of cost, improvements in the product, etc. Neeraj implements his suggestions and has always found favourable results but he never appreciates Rakesh for his suggestions. Now, Rakesh decides not to communicate any suggestion or idea to Neeraj. Identify the factor which acts as a communication barrier. Explain three other factors of the same group of communication barriers. (CBSE, Delhi 2012) Answer: Due to the lack of proper incentives, Rakesh has decided not to communicate any suggestion or idea to Neeraj. If there is no motivation or incentive for communication, subordinates may not take initiative to communicate. It is a type of personal barrier. Sometimes the personal factors of both the sender and the receiver may exert influence on effective communication. A few of these are discussed below:

• Fear of challenge to authority: A superior may withhold or suppress the communication which he perceives is likely to adversely affect his authority.
• Lack of confidence of superior in his subordinates: A superior may not seek the advice or opinions of his/her subordinates if he/she does not have confidence on their competency.
• Unwillingness to communicate: Sometimes, subordinates may deliberately withhold any communication with their superiors if they perceive that it may adversely affect their personal interests.

Question 23. Ayasha Ltd. assured their employees that in spite of the recession, no workers will be retrenched from their jobs.

• Name and explain the type of incentive offered to the employees.
• Explain one more incentive of the same category. (CBSE, Delhi 2010)
• The type of incentive offered to the employees is job security. It is a non-financial incentive. In order to fulfill their safety needs, the employees want certain stability about future income and work. As a result they feel motivated and give better job performance. However, it has been observed many a times that when people feel that they are not likely to lose their jobs, they may become complacent.
• The other incentive of this category is employee participation. It is a means by which the employees may be involved in the decision making process of the issues related to them. The sense of participation motivates them to contribute positively towards their job performance.

Question 24. Rajat, a sales manager, achieved his sales targets one month in advance. This achievement was displayed on the notice board and a certificate for the best performance was awarded to him by the CEO of the company.

• Name the incentive provided to Rajat.
• Identify the type of incentive.
• List two other incentives of the type identified in part (2). (CBSE, 2008)
• Recognition is the incentive provided to Rajat.
• It is a type of non-financial incentive.
• The two other types of non-financial incentives are job security and status.

Question 25. Mohan and Sohan are friends working in Surya Ltd. as Production Manager and Sales Manger respectively. In an interdepartmental meeting, Sohan informed Mohan about a change in the marketing policy of the company. Identify the type of communication used in the above example. (CBSE, 2008) Answer: Formal communication is being used in the above example.

ADDITIONAL QUESTIONS

Question 1. Post demonetisation, bank employees have been experiencing hectic long working hours, which has been highly praised by all. Banks chalked out a compensation plan for their employees, who have been working long hours like offering compensatory “off-days” in lieu of holidays on which the employees worked , giving “additional money” to the employees and so on. Reshma (42), who has been working with a nationalized bank for seven years, said, ” We have worked tirelessly to meet customer’s demands,”. Moreover she added that “There were several circulars from the head office and RBI. We had to go through them thoroughly and adhere to all the instructions. It is also important to ensure transactions go smoothly and we solve customer-staff disputes,” In context of the above case:

• Identify the human need of Reshma as per Maslow’s need hierarchy theory which was affected due to demonitisation.
• Identify the type of incentives which were provided to the bank employees for assuming their responsibility diligently.
• State any two values which the banks are propagating towards their customers.
• The human need of Reshma as per Maslow’s need hierarchy theory of which was affected due to demonitisation is described below: Basis physiological needs: These needs are most basic in the hierarchy and are linked to primary needs like hunger, thirst, shelter etc.
• Both monetary and non-monetary incentive were being provided to the bank employees for assuming their responsibility diligently.
• Customer satisfaction

Question 2. Roshan is the chief chef of ‘Khidmat7 restaurant located in the city of Bangaluru. The place is known for its exquisite Mughlai cuisine especially mutton biryani 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.
• 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.”
• Initiates action: Directing helps to initiate action by people in the organisation 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 organisation towards the realisation of the organisational goals.
• Helps to realise their potential: Directing provides effective guidance, motivation and leadership to the employees so as to enable them to realise their potential and capabilities, (any two)

Question 3. Anurag has joined as a supervisor in a hospital. He realises that the support staff workers are not working up to their full potential. Due to a constant conflict with the management on wages, they have developed an indifferent attitude towards it. The workers have become lazy and tend to avoid work. Moreover, there are a few internal differences amongst the workers. In order to motivate them he starts giving them praise and encouragement as a result of which the workers slowly start showing improvements in their work performance. In the above context:

• Define the term supervision.
• What are the challenges that Anurag is facing as a supervisor? Outline the role he needs to play in overcoming them.
• The term supervision consists of two words i.e. ‘super’ which means over and above and ‘vision’ which means the art of seeing objects. Supervision is the process of overseeing the work of a subordinate by his superior.
• As a link between workers and management, he has to work towards resolving the conflicts between management and workers. He should convey the management’s ideas to the workers on one hand and workers’ problems to the management on the other.
• He should strive to maintain harmony among the workers by helping to clear out the internal difference among them.
• He has to ensure that the performance of work in the hospital is according to the targets set. He has to assume the responsibility for task achievement and motivates his workers effectively.

Question 4. 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 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.
• Employees are motivated to improve their performance: When employees are promoted internally from within an organisation, 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 organisation. 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 organisation. As the candidates are already known to the organisation, it is considered to be a more reliable method of recruitment.
• 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.”

Question 5. After completing his bachelor’s in computer science, Abhijeet joined an IT consultancy firm. He observed there that the senior management more often communicated failures than successes. They rarely shared any good news related to the growth of the firm or give any recognition to its employees for their extraordinary contributions towards the firm. As a result, Abhijeet never felt encouraged enough to work up to his full potential and started exploring other avenues for employment. In the context of the above case:

• Identify and explain the element of directing in the absence of which the employees don’t feel encouraged to work.
• State the importance of this element as identified in part (1) by giving any two suitable points
• The element of directing being referred to is motivation.
• Improves performance: Motivation helps to improve the performance of both the employees as well as the organisation. This is because motivated employees contribute their maximum efforts for organisational goals.
• Reduces employee turnover: Motivation helps to reduce employee turnover and thereby saves the cost of new recruitment and training. This is due to the fact that the managers identify the motivational needs of employees and provide suitable incentives. Consequently the employees feel satisfied and may not think of leaving the organisation.

Question 6. Atuliya has started his own consultancy firm under the name ‘Happy Go Lucky’ after working for five years in a company as a wedding planner. Considering the fact that he is into a labour intensive business and motivation is a complex process, Atulia wants to offer such rewards and benefits that will help to fulfill the various needs of the employees and will inspire them to give their best to the organisation. In the context of the above case:

• Why is motivation considered to be a complex process?
• Name the various types of needs that exist in a hierarchy within every human being. Also, suggest any two suitable incentives for each of these that Atulia may offer to his employees.
• Motivation is considered to be a complex process as the individuals may differ in their expectations, perceptions and reactions. Therefore, the same type of motivation may not have uniform effect on all the persons.
• Basic Physiological Needs: These needs are most basic in the hierarchy and are linked to primary needs like hunger, thirst, shelter etc. Atulia may fulfill these needs of his employees by providing basic salary and the necessary breaks to use the bathroom and eat and/or drink.
• Safety/Security Needs: These needs offer security and protection from physical and emotional harm. Atulia may offer job security and safe working conditions to his employees for the fulfillment of these needs.
• Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. Atulia, by encouraging cooperative teamwork and by being an accessible and kind manager, can fulfill these needs of his employees.
• Esteem Needs: These include factors such as self-respect, autonomy, status, recognition and attention. Atulia may give praise and recognition when the employee does well, and offer promotions to fulfill these needs of his employees.
• Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfilment and achievement of goals. Atulia, by providing challenging work and giving them flexibility and autonomy in their jobs, may fulfill these needs of his employees.

Question 7. 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?
• Formal communication: The communication that flows through official channels de¬signed in the organisation structure is called formal communication. This corn- munication 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 organisation 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 organisation 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.

Question 8. 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.
• 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

Question 9. Yash has set up a small scale manufacturing unit for making different varieties of low cost detergents. In order to market his product he has employed a team of five salesmen. Each salesman has been assigned specific areas in the city. He holds a meeting every month for determining the objectives to achieved during the coming month. A sales target is pre¬determined for each month which is mutually agreed by both Yash and his sales team. If the salesmen succeeds in reaching this target a bonus is paid out to all of them along with the monthly salary. In context of the above case:

• What style of leadership is adopted by Yash? Explain by quoting lines from the para.
• Name the type of non financial incentive being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm.
• The democratic style of leadership is adopted by Yash. A democratic leader encourages his subordinates to participate in the process of decision making. Thereby, the manager is able to motivate his subordinates to perform their best, as they themselves have set the goals. “A sales target is pre-determined for each month which is mutually agreed by both Yash and his sales team.”
• Employee participation is the type of non financial incentive that is being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm.

Question 10. Priyank works as a banquet manager in a hotel. He feels highly motivated at his job because the work that is assigned to him frequently involves variety of challenges. He is given more autonomy and responsibility and provided with ample opportunities for personal growth and a meaningful work experience. In context of the above case:

• Define the term ‘motivation’.
• What are the measures used to motivate the employees to improve performance known as? Give its classification.
• Identify the type of non-financial incentive being offered to Priyank.
• Motivation refers to the process of stimulating people to action to achieve desired goals.
• The measures used to motivate the employees to improve performance are known as incentives. These incentives may be broadly classified as financial and non-financial.
• Job Enrichment is the type of non-financial incentive being offered to Priyank.

Question 11. Google Inc. is an American multinational corporation that is best known for running one of the largest search engines on the World Wide Web (WWW). Every day, 200 million people use it. Google was named the 2014 “Best Company to Work For” by the Great Place to Work Institute and Fortune Magazine. The organization topped the’list for the fifth time. The company hosts employee forums on all fridays where there is an examination of the 20 most asked questions. Moreover, its employees can make use of any of a number of channels of expression to communicate their ideas and thoughts. Channels include Google+ conversations, a wide variety of surveys, Fixits (24 hour sprints wholly dedicated to fixing a specific problem) and even direct emails to any of the Google leaders. In the above context:

• Identify the type of communication barrier being overcome by Google Inc. by providing a number of channels of expression to their employees to communicate their ideas and thoughts.
• Briefly explain any two other types of communication barriers.
• Organisational barrier is being overcome by providing organisation facilities through a number of channels of expression to their employees to communicate their ideas and thoughts.
• Psychological barriers: Sometimes the emotional or psychological factors act as barriers to communicators. Thus, the state of mind of both sender and receiver of communication reflects in effective communication. For example, premature evaluation, distrust etc.
• Semantic barriers: These barriers are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions. Normally, such barriers result on account of use of wrong words, faulty translations, different interpretations etc.

Question 12. Nikhil runs a small dhabba on the Jaipur highway. He is very rigid and follows a strict policy of punishment like cutting the salary, stopping increments or giving job termination threats to his workers for any kind of discrepancies in their work. He does not seek advice or opinions from his workers, as he does not have any confidence on the competence of his workers. Also, the workers are not willing to offer useful suggestions as they do not expect any motivation or incentive for taking such initiatives. As a result, the labour turnover is high and his business has been adversely affected. In the above context:

• Name and explain the style of leadership adopted by Nikhil.
• Identify the various human needs of workers that are being overlooked by Nikhil as per the Maslow’s need hierarchy theory of motivation.
• Identify the type of communication barrier created by Nikhil due to which the workers suppress their need to communicate with him.
• The autocratic style of leadership has been adopted by Nikhil. An autocratic leader expects strict compliance from his subordinates with regard to the orders and instructions given by him. Therefore, it involves only one-way communication.
• Basic Physiological Needs: These needs are most basic in the hierarchy and are linked to primary needs like hunger, thirst, shelter etc.
• Safety/Security Needs: These needs offer security and protection from physical and emotional harm.
• Lack of confidence of superior on his subordinates: If superiors do not have confidence on the competency of their subordinates, they may not seek their advice or opinions.
• Lack of proper incentives: If there is no motivation or incentive for communication, subordinates may not take initiative to communicate. For example, if there is no reward or appreciation for a good suggestion, the subordinates may not be willing to offer useful suggestions.

Question 13. After pursuing a course in gemmology from Australia, Raj started a workshop in Surat to supplement his father’s jewellery business in Delhi. He is used to speaking in English but the local skilled workers understand only Hindi and Gujarati. Hence, he started facing problems in the work due to miscommunications between him and the workers. As a result, he is not able to get the jewellery designs made in the desired manner and getting them redesigned turns out to be very expensive. In the context of the above case:

• Define the term ‘communication’.
• Identify the type of communication barrier being referred to in the above paragraph.
• Suggest any four measures by which he can improve his communication effectiveness.
• Communication is a process by which people create and share information with one another in order to reach common understanding.
• Semantic barrier is being referred to in the above paragraph.
• Communicate according to the needs of receiver: Raj should adjust his communication according to the education and understanding levels of his subordinates.
• Be aware of languages, tone and content of message: The contents of the message, tone, and language used and the manner in which the message is to be communicated are the important aspects of effective communication.
• Ensure proper feedback: He may ensure the success of communication by asking questions regarding the message conveyed. Thus the communication process may be improved by the feedback received to ensure that the workers have understood his ideas clearly.
• Follow up communications: He should do a regular follow up and review on the instructions given to the workers. Such follow up measures help in removing hurdles, if any, in implementing the instructions.

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Case Study Chapter 7 Directing

Please refer to Chapter 7 Directing Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 7 Directing

Read the source given below and answer the following questions : Incentive can be defined as monetary or non-monetary reward offered to the employees for contributing more efficiently. Incentive can be extra payment or something more than the regular salary or wage. Incentive acts as a very good stimulator or motivator because it encourages the employees to improve their efficiency level and reach the target.

Questions :

Question. To motivate employees to perform to their best level, managers use: (a) Incentives (b) Punishment (c) Performance appraisal (d) None of the above

Question. Incentives are: (a) Salary increment (b) Extra Reward (c) Bonus (d) All of the above

Question. Which function of management offers incentives to employees? (a) Planning (b) Organising (c) Staffing (d) Directing

Question. Incentives can be (a) Monetary (b) Non-monetary (c) Both (a) and (b) (d) None of the above

Read the source given below and answer the following questions : Rajiv is working as Personnel Manager in a company. The speciality 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 recognise 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. Within few days the company’s growth rate appeared to have become fast.

Question. Which motivation method combines all the above stated and was suggested by personal manager? (a) Employee participation (b) Organisational climate (c) Perks and fringe benefits (d) Recognition

Question. Differential piece wage technique of scientific management is example of which incentive? (a) Employee participation (b) Retirement benefits (c) Productivity linked with wages (d) Employee Recognition

Question. Identify the function of management indicated in above para. (a) Planning (b) Organising (c) Staffing (d) Directing

Question. The group which suggested award, certificate, trophies is indicating which incentive? (a) Employee Participation (b) Employee Recognition (c) Productivity linked with wage/incentive (d) Autonomy

Read the source given below and answer the following questions : The communication process begins when sender thinks of an idea or message to be conveyed to other person. Then the sender encodes the message, i.e., plans out the words or the language in which the message must be sent to the other party. After encoding the message the sender transmits or transfers the message by using different ways and means. After transmission the message reaches to receiver. The receiver decodes the message to understand the message and give his response or feedback to the sender. When the feedback reaches back to sender then only the communication process ends which means the communication is a circular process which starts with sender and ends with sender.

Question. The response of receiver to sender is called : (a) message (b) feedback (c) encoding (d) decoding

Question. Communication is : (a) a two way process (b) circular process (c) both (a) and (b) (d) none of the above

Question. Converting the messages into language is called : (a) encoding (b) decoding (c) noise (d) all of the above

Question. Understanding the message is called : (a) encoding (b) decoding (c) noise (d) none of the above

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

Question. Bravery award is ___________ form of non-financial incentive. (a) Status (b) Job security (c) Career Advancement (d) Employee recognition

Question. Mr. Diali consulted with all his workers, he listened to their opinions. Which form of leadership is identified here ? (a) Laissez-faire (b) Autocratic (c) Democratic (d) Free-rein

Question. Under Maslow’s hierarchy need theory which need of Mr. Diali has been met through respect and recognition among other employees? (a) Self – Actualization need (b) Safety and security needs (c) Esteem needs (d) Physiological needs.

Question. Mr. Diali worked towards predetermined goals of the organization .Which important function of directing is addressed here ? (a) Means of motivation (b) Initiates action (c) Facilitate change (d) Brings stability

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CBSE Important Questions Class 12 Business Studies Chapter 7

Home » CBSE » CBSE Important Questions Class 12 Business Studies Chapter 7

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Important Questions for CBSE Class 12 Business Studies Chapter 7 – Directing

In these important questions Class 12 Business Studies chapter 7 , students will learn about the concept of directing. The topic of directing includes various important sub-topics like leadership qualities, formal and informal communication, motivation-meaning and importance, Maslow’s need hierarchy theory of motivational and financial and non-financial incentives, and more. So by going through these chapter 7 class 12 Business Studies important questions , students will be able to gain a better understanding of these concepts and study the important questions that may come in their examination. These Business Studies class 12 chapter 7 important questions contain questions from CBSE sample papers and CBSE past years’ question papers and follow the NCERT book. 

CBSE Class 12 Business Studies Chapter-7 Important Questions

Study important questions for class 12 business studies chapter 7 – directing.

Giving instructions, direction, and inspiration to an organization’s workforce in order to encourage them to work effectively toward organisational objectives is referred to as direct. Along with planning, organising, staffing, and controlling, the manager’s primary managerial responsibilities also include directing. Students will learn more about directing and other concepts through these Class 12 Business Studies chapter 7 important questions . These questions are based on the CBSE syllabus and NCERT book , as prescribed by CBSE . 

In addition, these important questions for Class 12 Business Studies chapter 7 also contain CBSE extra questions which students may not find elsewhere. . Here are some important questions that you can study and practice for your upcoming board examination. 

Very Short Answer Questions (1 or 2 Marks)

• What does “motivation” signify as an aspect of directing mean?

Ans. As a means of achieving organisational goals, motivation refers to the process of inspiring and encouraging people to act in a particular way. In order to reach the intended organisational goals means urging and motivating the employees to work to the best of their ability. Promotion, evaluations, and recognition are just a few examples of how motivation differs depending on the wants and expectations of the employees.

• Name any two elements present in directing.

Ans.  The two elements that are present in directing are.

• Supervision
• Describe any one aspect of directing.

Ans. Providing direction enables people inside an organisation to take the first steps toward achieving their intended goals.

• It entails supervising employees who are subordinate to you. What aspect of directing is being discussed?

Ans. Supervision

• What motivates a Supervisor to serve as a liaison between employees and management?

Ans. By instructing the workers on the one hand and communicating with the management about the worker’s concerns on the other, the supervisor puts the management’s ideas into action.

• Explain what “supervision” means in terms of directing.

Ans. The act of supervising employees at work to make sure their tasks are being completed in accordance with company standards is referred to as a supervision.

• According to Abraham Maslow, name the highest level present in the hierarchy.

Ans. The highest level, according to Abraham Maslow, is self-actualisation.

• What are self-actualization needs and self-esteem needs in terms of employee motivation?

Ans. (i) Esteem needs: These needs include the need for both self- and other-esteem. Examples include self-confidence, confidence, etc.

(ii) Self-actualization Needs: These are the requirements for reaching one’s full potential, which also includes requirements for optimum growth.

• Describe the three benefits and three drawbacks of an authoritarian leadership style.

Ans. Few advantages of the authoritarian leadership style: 

• Quick and precise judgments
• Excellent work
• Necessary for individuals with less education

 Certain negative aspects of the authoritarian leadership style include:

•  Lack of motivation
• Employee agitation 
• Potential for prejudice.
• Name some features of democratic leadership.

Ans. Some features of democratic leadership are.

• Open communication
• Relief among employees
• Co-operative relations 

Short Answer Questions (3 or 4 Marks)

• How does directing contribute to the smooth operation of an organisation? Give an explanation using any three points.

Ans: Directing contributes to the efficient and successful operation of management. This can be further explained through the following points.

• It integrates employees: By integrating employees’ contributions into the organisation, management ensures that each person’s activities benefit the organisation as a whole. As a result, it guarantees that workers put up efficient effort toward achieving objectives.
• It increases effectiveness: Managing helps employees realise their full potential and abilities. Through this function, managers make the most of each employee’s potential and influence them to work hard and give their all to the accomplishment of organisational goals.
• It makes the transition easier: Although the business environment is always changing, people often have the predisposition to resist change. In this situation, directing assists the management in persuading his subordinates to implement adjustments periodically to deal with environmental changes as the changes are necessary to adapt, which is a requirement of modern business.
• For the previous ten years, Priya worked as a regional sales manager for “Lucky Garments Ltd.” Priya applied for the same post when the marketing manager decided to retire because she was very bright and had worked so hard to get the title of the marketing manager. The company’s top management, however, chose the best candidate from outside the organisation to fill this position. Priya was upset as a result, and she was forced to quit her job. How will you inspire Priya to perform at her prior level was one of the new marketing manager’s toughest challenges?

Which three non-financial advantages will a new marketing manager utilise to encourage Priya?

Ans. The new marketing manager may use the following non-monetary incentives:

• Status: Status refers to a ranking of roles in an organisational setting. A person with status is someone who occupies a high position with several advantages and greater duties.
• Job Enrichment: Designing occupations with a broader diversity of work content and higher knowledge and skill requirements are known as “job enrichment.”
• Job Security: Employees desire job security and financial stability so they won’t have to worry about these things and can focus on their work.
• Name and explain any three elements that emphasize the significance of directing managers’ jobs.

Ans. Here are some reasons why directing is important:

• Achievement of goals: In an organisation, the directing role starts the real action. People who are in charge of others are better able to execute their tasks on time and correctly, as instructed by their superiors.
• Coordinating efforts: Every organisation consists of a number of workers who are entrusted with various tasks and functions at various levels. Their actions are coordinated for the successful accomplishment of organisational objectives through direction, communication, and incentive.
• Encourages change: Employees can express reluctance when it comes to the organization’s changing rules and structure because they believe the changes are either not in their best interests or would be exceedingly challenging to implement. In this situation, management can influence employees’ perspectives by motivating them and often communicating about the advantages and benefits the change will bring to the company and to them.
• Explain any three semantic communication.

Ans. A subfield of linguistics called semantics examines the significance of words and sentences. The process of encrypting and decrypting messages into words or perceptions is hampered and complicated by semantic obstacles. Such hurdles frequently stem from the choice of inappropriate language, inaccurate translations, or disparate interpretations. Semantic barriers can be caused by a variety of factors.

• Poorly Expressing the Message: Due to a lack of vocabulary or poor word choice, the content could occasionally be difficult to understand.
• Symbols with Various Interpretations: Sometimes, a word might have more than one meaning, and other times more than one word can sound the same (such as idle and idol). In certain situations, the proper interpretation of words is still unclear.
• Faulty translations: It occasionally happens that managers and employees have different levels of language proficiency. In these circumstances, it is necessary to translate the material into a language that the employees can comprehend. However, throughout the translation process, some words or phrases could be misinterpreted. For instance, when a translation of a directive from English to Hindi is made, some terms may take on a different meaning.

Ans. The meaning of the terms self-esteem and self-actualization

• Self-Esteem Needs: The ego requirements of a person are satisfied by things like power, responsibility, status, and so forth. As an illustration, consider self-respect, confidence, etc. Each person aspires to get respect and attention from their peers; therefore, these components include things like respect, dignity, and acknowledgement. It is the fourth need in Maslow’s need hierarchy.
• Self-Actualization needs: This need has to do with realising one’s ambitions or dreams. It fulfils the hierarchy’s top-level criteria. These requirements relate to a worker’s development, job happiness, and other factors. This involves the urge for optimal development and the need to become what one is capable of becoming. It is the last on Maslow’s hierarchy of needs.
• Explain the importance of communication.

Ans. The management process is impossible without effective communication. A strong communication system is essential to the survival and expansion of any company. Since a manager’s primary responsibility is to coordinate the efforts of others, communication takes up a significant amount of his time. The creation and maintenance of a communication system is the first executive function. The majority of managerial issues are brought on by a lack of comprehension. Therefore, the biggest issue for today’s management is communication.

Here are some additional benefits of communication

• Basic decision and planning: The effectiveness of management is dependent on the effectiveness of communication (the quantity and quality of information available to the organisation). Communication provides the crucial information that managers need to diagnose issues, assess potential solutions, and select the best course of action.
• Effortless and Effective Operation: An efficient communication system acts as a lubricant, promoting the organization’s effective and efficient operation. The attainment of the company’s goals is of utmost importance, and one of the key resources accessible to the management to do so is communication.
• Promotes Coordination: Every organisation divides the job into various interconnected divisions and sectors. It is necessary to coordinate the actions and endeavours of various people and organisations. The best way to foster coordination and cooperation is through communication.
• Employee Morale and Motivation: Management uses communication to completely inform the workforce on plans, job changes, etc. Employee morale and motivation are often good when they know what they are responsible for. Employees are satisfied when information is shared with them and when they can talk with one another about topics of interest.
• Good workplace relations: Building mutual understanding and trust between the employer and the employees begins with effective communication. It makes it possible for management to interact closely with employees.
• Industrial Democracy: For employees to participate in management, communication is necessary. Delegating and decentralising power are made easier by it. The fundamental education and training of managing professionals are around effective communication. Effective communication is a prerequisite to effective leadership.
• Media Relations: Every commercial enterprise in the modern business environment needs to establish and sustain a positive corporate reputation in society. A positive public perception can only be developed through communication. Management can maintain friendly ties with the government, labour unions, customers, and the community through communication.

Long Answer Type Questions (5 or 6 Marks)

• Briefly describe the duties of a supervisor.

Ans. A supervisor performs the following duties, which are briefly mentioned below.

• Creating Work Schedules: Setting the timing for various activities to begin and end is a part of scheduling. Every employee in his unit or division has a work schedule that is set by the supervisor. To guarantee a constant flow of work, this is done.
• Enhancing Communication: Effective communication results from the supervisor’s continued direct contact with the staff. The employees in his department benefit from his leadership as well. He establishes production goals for them and gives them the direction they require to complete the tasks given to them.
• Best resource utilisation: The workers receive directives and instructions from the supervisor on how to coordinate within the section. He instructs them on what to do and how to accomplish it so that they use tools, resources, resources, and procedures more efficiently.
• Providing Inspiration: The boss encourages his staff members with both monetary and non-monetary rewards. He motivates people to work more effectively and efficiently.
• Control of Results: The manager keeps an eye on the employees’ performance by comparing it to the standards. He takes the required steps to guarantee that goods are manufactured in accordance with the established criteria. He also critiques the performance of his subordinates and offers them advice on how to do better.
• Reporting: The supervisor keeps track of each employee’s output and other relevant information. He sends performance reports and other necessary information to his superior based on records.
• Relationship between workers and management: An essential link between management and employees is the supervisor. He conveys management directives and explains management rules to the employees. He keeps in regular contact with the employees and makes an effort to comprehend their issues. He alerts upper management to issues facing employees.
• Human relation: In his team, a supervisor typically fosters positive interpersonal relationships. He can mingle with the staff and share their happiness and grief. He also resolves disputes involving individuals or groups of individuals.
• Grievance Resolution: A supervisor can efficiently manage employee complaints since he has regular contact with them. When a complaint is made, he considers the worker’s perspective and works to fix the problem. However, if he is unable to resolve the issue, he should bring it to the attention of higher-up management.
• P.P Energy Ltd. was a consulting firm that promoted energy efficiency. The team leader and his group used to go to several states to make presentations to potential clients in order to win their business. The group leader used to fly, and his group used the road or train, as per corporate policy. In addition to taking up time, it occasionally required the ladies in the group to go alone.

As a result, employees did not behave as they should have in order to accomplish corporate objectives.

It was revealed to the CEO. He spoke with the team leader over the phone, explained the situation to him, and modified the company’s travel policy. It was determined that moving forward, all team members, including the leader, would travel together and take advantage of the time to consult with colleagues about client presentations. This had a positive effect, and everyone on the team began acting in the way that the team leader wanted.

Describe the characteristics of the management function element that the CEO uses.

Ans. The CEO uses “Motivation” as a management function.

The company’s previous travel policy wasn’t acceptable because it caused the women’s group to travel alone and forced the leader and members to take a different mode of transportation. This deters potential employees from working for the organisation.

However, a modification in the travel policy had a beneficial effect on the staff, and they began performing in a way that the leader wanted them to, which is only achievable with motivation.

These are some key features of motivation:

• The psychological phenomenon of motivation: Employees cannot be made to feel motivated; it is an inherent sensation, such as urges, drives, and desires.
• Motivation is goal-oriented conduct: It is beneficial for people to arrange things in a specific way in order to accomplish their objectives. A motivated individual makes efforts to accomplish the goals they have in mind.
• Positive or negative motivation can be possible: Positive motivation entails encouraging employees to do better at their jobs and showing appreciation for work well done, such as through pay increases and promotion recognition. Threats and sanctions are the fundamental components of negative motivation.
• The Process of Motivation is Complex: Due to the human element, the procedure is complicated and challenging. People have different needs and want, and human needs occasionally vary.
• Describe the importance and nature of motivation.

Ans. The success of an organisation depends a lot on how motivated its employees are, which is why motivation is so important. In order to attain both organisational and personal goals, managers can get the maximum performance out of their staff by inspiring them. For the reasons listed below, motivation is the foundation of management.

• Higher Effectiveness:

Employee aptitude and work ethic determine their level of performance inside an organisation. Between having the capacity to work and having the desire to work, motivation fills the gap. It encourages workers to put forth their best efforts in order to perform at a greater level. Therefore, motivation aids in boosting output and lowering operating expenses.

• Best possible resource use:

Resources include material, financial, and human assets in every firm. Competent and motivated individuals are necessary for the efficient use of material and financial resources. Employees who are motivated are likely to be willing to work. It enables administrators to use all resources as efficiently as possible.

• Organisational Goals Achieved:

Without employees who are driven to work hard and give their best effort in order to complete the duties allocated to them, an organization’s goals cannot be achieved. By meeting their demands through suitable rewards, management may ensure the willing participation of subordinates in the achievement of organisational goals. Motivated workers give management their full cooperation in order to achieve the desired outcomes.

• Workforce Stability:

Employees get confident when they are motivated. It enhances their dedication to the organisation and increases their loyalty. The rates of worker turnover and absenteeism are consequently decreased. The preservation of a stable workforce results from this. Employee expertise, knowledge, and experience are still at the organization’s disposal.

• Cordial relations

Employee happiness is increased through motivation and both monetary and non-monetary benefits. Consequently, it results in a cordial and helpful interaction between the employer and the workforce. Employee morale is raised, and there are fewer workplace issues.

• Encourages change

Effective motivation aids management in overcoming employees’ aversion to change and supports all organizationally beneficial changes. This is due to the fact that people associate their own development with the success of the business.

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FAQs (Frequently Asked Questions)

1. name some characteristics of laissez-faire leadership..

Here are some characteristics of Laissez-faire leadership.

• It offers a system of independent decision-making.
• It provides decentralisation of authority. 
• It is self-directed.

2. Name some elements of directing.

Given below are four  elements of directing:

• Communication

3. Why is directing a pervasive function of management?

Directing is known to be a pervasive function because it is performed by every manager, whether it is a top executive or a superior.

4. Name some characteristics of autocratic leadership?

Some characteristics of autocratic leadership are as follows:

• Decisions made by a single person
• The existence of wrong beliefs related to employees
• Centralised authority 
• The communication is only downward.

5. Name some advantages and disadvantages of autocratic leadership.

Here are some advantages of autocratic leadership

• It is necessary for employees who are less educated.
• It offers fast and clear decisions.
• It promotes satisfactory work.

Here are some disadvantages of autocratic leadership

• There might be some possibility of partiality.
• There is a lack of motivation.
• More chances of agitation among employees.

6. What is the act of motivating, instructing, and guiding people working within an organisation to achieve its goals called?

This act is known as direct.

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NCERT Solutions for class 12 Business studies Directing

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NCERT Solutions for class 12 Business studies Directing Class 12 Business studies Class book solutions are available in PDF format for free download. These ncert book chapter wise questions and answers are very helpful for CBSE board exam. CBSE recommends NCERT books and most of the questions in CBSE exam are asked from NCERT text books. Class 12 Business studies chapter wise NCERT solution for Business studies part 1 and Business studies part 2 for all the chapters can be downloaded from our website and myCBSEguide mobile app for free.

Download  NCERT solutions for Directing as PDF.

NCERT Class 12 Business studies Chapter wise Solutions

Business studies part  – i.

• 1 – Nature and Significance of Management
• 2 – Principles of Management
• 3 – Management and Business Environment
• 4 – Planning
• 5 – Organising
• 6 – Staffing
• 7 – Directing
• 8 – Controlling

Business Studies Part  – I I

• 9 – Business Finance
• 10 – Financial markets
• 11 – Marketing
• 12 – Consumer Protection
• 13 – Entreprenuership Development

Chapter 7 Directing

• Directing: Importance and Elements
• Supervision: Concept and Functions
• Motivation: Financial and Non-financial Incentives
• Leadership: Concept and Styles
• Communication: Concept, Types and Barriers

Multiple Choice Questions

1. Which of the following is not an element of direction?

(a) Motivation

(b) Communication

(c) Delegation

(d) Supervision

Ans: Delegation is not an element of directing, rather, it precedes directing. Direction refers to a process where employees of an organisation are instructed, motivated and guided to achieve certain goals and objectives. Motivation, communication and supervision are elements of direction.

2. The motivation theory which classifies the needs in hierarchical order is developed by

(a) Fred Luthans

(c) Abraham Maslow

(d) Peter F. Drucker

Ans: Abraham Maslow gave the need hierarchy theory of motivation. His theory was based on the argument that within each individual there lies five basic needs that can be put in hierarchical order. Starting from the most primary ones, the order of hierarchy was stated as physiological needs, security needs, belongingness needs, esteem needs and actualisation needs.

3. Which of the following is a financial incentive

(a)Promotion

(b)Stock Incentive

(c)Job Security

(d)Employee Participation

Ans: Stock incentive is a kind of financial incentive. It is a direct monetary incentive wherein the employee is offered the shares of the company at a price lower than the market price. The other three options as given in the question, that is, promotion, job security and employee participation are non-financial incentives that focus on psychological and social needs of the employees.

4. Which of the following is not an element of communication process?

(a)Decoding

(b)Communication

(d)Receiver

Ans: Communication is a process wherein ideas, feelings, facts, etc. are exchanged among people. Decoding, channel and receiver are elements of communications. Channel refers to the path through which the message in the form of encoded symbols from the sender is transferred to the receiver. Before the message is received by the receiver, the encoded symbols must be converted. This process of converting the encoded symbols is known as decoding. On the other hand, receiver refers to the person who actually receives the message.

5. Grapevine is 

(a) Formal communication

(b) Barrier to communication

(c) Lateral communication

(d) Informal communication 

Ans: Informal communication is known as grapevine. This is because informal communication spreads throughout the organisation in all directions without following the formal path of communication.

6. Status comes under the following types of barriers

(a)Semantic barrier

(b)Organisational barrier

(c)Non semantic barrier

(d)Psychological barrier 

Ans: Status comes under organisational barriers. Organisational barriers refer to those barriers in the communication that are related to structure of the organisation, hierarchical relationships in the organisation, rules and policies. Sometimes status of an individual in the company in terms of profile, authority, etc. instills a feeling of superiority (or inferiority) in him. Such a psychology acts a barrier in free flow of communication in the organisation.

7. The software company promoted by Narayana Murthy is

Ans: Narayana Murthy was the founder of the software company ‘Infosys’. He started Infosys in the year 1981and in 2002 it was a global IT company. Narayana Murthy was the CEO of Infosys for two decades before he retired from the post in 2002. Under the leadership of Murthy, Infosys reached unimaginable heights and is today among the biggest exporters of software from India.

8. The highest level need in the need Hierarchy of Abraham Maslow:

(a)Safety Need

(b)Belongingness Need

(c)Self Actualisation Need

(d)Prestige Need

Ans: The highest level need in the need Hierarchy of Abraham Maslow is self actualisation need. This need of an individual refers to achieving what one aims or aspires. For an employee in an organisation, such needs relate to growth, work satisfaction, etc.

9. The process of converting the message into communication symbols is known as:

(b) Encoding

(c) Feedback

(d) Decoding

Ans: The process of converting the message into communication symbols is known as encoding. The communication symbols in the process of encoding can be in the form of pictures, gestures, etc.

10. The communication network in which all subordinates under a supervisor communicate through supervisor only is:

(a)Single chain

(b)Inverted V

(d)Free flow

Ans: The communication network in which all subordinates under a supervisor communicate through supervisor only is wheel communication network. In a wheel network, the supervisor is at the centre of the communication network (wheel). The subordinates cannot communicate among themselves, rather they need to communicate through the supervisor.

Short Answer Type:

1. Distinguish between leaders and managers.

Ans: The following points highlight the difference between a manager and a leader.

2. Define Motivation.

Ans: Motivation refers to a process of inducing and stimulating an individual to act in certain manner. In the context of an organisation, motivation implies encouraging and urging the employees to perform to the best of their capabilities so as to achieve the desired goals of the organisation. In other words, it refers to driving the individual psychologically so as to induce his willingness to work and perform better. In an organisation motivation can take various forms such as promotion, appraisal, recognition, etc. depending on the expectations and desires of the employee. For example, an appraisal may act as a motivating factor for an employee to improve performance. Similarly, for another employee praise from the senior may motivate him to further improve the performance.

3. What is informal communication?

Ans: Informal communication refers to the communication that flows without following the formal defined path. An informal communication system is also known as grapevine. Under informal communication, a piece of information flows in all directions without paying any heed to the level or authority. It arises out of social interactions among the employees and then spreads throughout the organisation. It can take the form of a rumour or a gossip. For example, a talk over lunch regarding the attitude of a senior is an informal communication. It is difficult to determine the source of such information. Moreover, the actual talk may even get distorted and the final piece of information may come out to be much different from the original one.

4. What are semantic barriers of communication?

Ans: Semantic barriers of communication relate to the use or understanding of language. Sometimes certain words, sentences or phrases are misinterpreted or misunderstood. In such cases, effective communication is obstructed. Such barriers in communication that arise out of ambiguity or difficulty in understanding of words and sentences are known as semantic barriers. The following are some of the causes of semantic barriers.

i. Sometimes due to poor vocabulary or wrong use of words, the information may not be clearly expressed.

ii. At times a word may have more than one meaning or two or more words may have same pronunciation (such as idle and idol). In such cases, the correct interpretation of the word remains ambiguous.

iii. In certain cases the proficiency of a language differs among the workers and the mangers. In such cases, a translation of the information is required in the language which is understandable to the workers. However, in the process of translation some of the words or sentences may get misinterpreted. For example, in a translation of an instruction from English to Hindi, the meaning of certain words might change.

iv. At times while giving out instructions the senior or specialist uses technical vocabulary that might be difficult to understand for the subordinates.

5. Who is a supervisor?

Ans: A supervisor refers to a person who directly oversees the activities of the workers. In the organisational hierarchy he lies immediately above the worker. A supervisor performs the following functions.

i. He is in direct contact with the workers and thereby guides and supports the workers. He also helps in maintaining harmony and unity among the workers.

ii. He acts as a link between the manager and the workers. Through supervisor, on one hand, the management communicates the ideas and policies to the workers and on the other hand, the workers are able to communicate their problems and grievances to the management.

iii. Supervisor ensures that the workers work efficiently and as per the set targets.

iv. He provides the required knowledge and skill to the workers.

6. What are elements of directing?

Ans: Directing refers to the process of instructing, motivating, guiding and leading the people to achieve certain goals and objectives. Directing involves the following four elements.

i. Supervision : Supervision implies the process of guiding and instructing the subordinates towards achieving the desired goals. In other words, it implies overseeing the work of the subordinates. Supervision ensures that work takes place as per the desired objectives. A good supervision helps in improving the efficiency of the workers. Besides this, it also plays a key role in maintaining harmony and unity among the workers.

ii. Motivation : Motivation implies encouraging and inducing the employees to perform to the best of their capabilities so as to achieve the desired goals of the organisation. Motivation can take various forms such as promotion, appraisal, recognition, etc. By satisfying the needs of the employees, motivation helps in improving their performance. It provides a psychological boost to the workers and drives their willingness to work. Moreover, it also helps in reducing the turnover and absenteeism in the organisation.

iii. Leadership : Leadership implies influencing the behaviour of the employees in such a manner that they willingly work towards achieving the objectives of the organisation. Leadership plays a key role in the success of an organisation. Good leadership brings out the capabilities and talents of the workers and thereby, boosts their confidence. They act as guide to the workers and induces a feeling of initiative in them.

iv. Communication : Communication refers to the process of exchange of ideas, feelings, facts, etc. among people. A smooth functioning of an organisation requires a good communication. It fosters coordination among various departments and individuals in the organisation. Communication forms the basis of management. Without good communication network efficient management becomes difficult.

7. Explain the process of motivation?

Ans: Motivation implies inducing and stimulating an individual to act in certain manner. The following points explain the process of motivation.

i. Unsatisfied Want : The motivation process begins with an unsatisfied need of an individual.

ii. Frustration : As the want remains unsatisfied frustration builds up in the mind of the individual.

iii. Drives : The frustration drives the individual to look out for alternatives to satisfy his need.

iv. Behaviour : Among the various alternatives he chooses one and starts behaving according to it.

v. Satisfaction : After following a particular alternative for some time, he assesses if his need is satisfied.

vi. Reduced Frustration : Once the need is satisfied, the frustration and tension of the individual finally gets reduced.

For example, suppose an individual desires promotion. This makes him uneasy and he starts looking out for alternatives through which he can earn a promotion. He may think of working harder and improving his performance. After consistently working hard, he may get recognition and the promotion that finally satisfies his want and reduces his frustration.

8. Explain the different networks of grapevine communication?

Ans: Grapevine communication or informal communication refers to the communication that arises out of social interaction among employees and spreads without following the formal communication path. The following are the types of grapevine communication network.

i. Single Strand Network : In this network, the information spreads from one person to other in a sequence. That is, one person communicates to another person who turn communicates to some other person.

ii. Gossip Network : In gossip network, one person shares the information with many other people.

iii. Probability Network : Under a probability network, an individual shares the information randomly with other people. That is, the person is indifferent about who he shares the information with.

iv. Cluster Network : In this network, information is first shared between two people who trust each other. One of them then passes the information to some other person who in turn shares it with another and so the information spreads.

Long Answer Type:

1. Explain the principles of directing?

Ans: Directing as a function of management is quite complex. To help in the directing process, certain principles have been developed. The following are the principles of directing.

(a) Maximum Individual Contribution : According to this principle, a manager should use such directing techniques that induce the workers to perform to the best of their capabilities. It should encourage the workers to work towards the goals of the organisation. That is, each individual should contribute the maximum towards the organisational goals. For example, suitable incentive and motivation techniques can be used by the managers to urge the employees to perform better.

(b) Harmony of Objectives : Often the objectives of an individual diverge from the overall organisational objectives. For example, an individual’s focus may be on earning greater income while the organisation aims at increasing the production. In such a case, directing should work towards converging the individual goals with the goals of the organisation.

(c) Unity of Command : As per this principle, an individual should receive commands and instructions from only one superior. If a worker receives orders from more than one superior, it creates confusion and clashes that leads to delay in the work. For example, the worker might get confused whose order to follow. Moreover, it might also happen that a conflict is created between the two superiors.

(d) Appropriateness of Direction Technique : According to this principle, the direction technique to be used should be appropriately selected. It should suit the need and attitude of the employees. For example, one employee might get motivated by a praise while other requires monetary incentive. Thus, the manager should use suitable directing techniques on requirement basis.

(e) Managerial Communication :

Effective communication plays a key role in directing. The instructions and commands given by the superior must be clear and easily understandable by the subordinates. In addition, the subordinates must also be able to communicate with the superiors in an unhesitant manner. They must be able to express freely their feedbacks and suggestions. Thus, an effective two-way communication must take place between the superior and the subordinates.

(f) Use of Informal Organisation : The manger should realise the existence and importance of informal organisation. He must strategically use them. For example, informal communication can be used to divulge true and real feedback on policy matters.

(g) Leadership : Leadership is an important element of directing. A manager must be able to bring out the capabilities of the employees. He must be able to influence the behaviour of the employees such as to boost the willingness of the employees to work towards the organisational goals. In addition, he must also be able to work effectively towards the satisfaction of the individual goals of the employees.

(h) Follow Through : According to this principle, a manager’s role is not just limited to giving instructions to the subordinates rather, he should continuously review the implementation of the instructions. Through a proper follow up he must ensure that the commands are properly followed and implemented. If required suitable corrective actions must also be taken.

2. Explain the qualities of a good leader? Do the qualities alone ensure leadership success?

Ans: It is said that to be a successful leader an individual must possess certain qualities. Some of the qualities of a good leader are as follows.

(a) Physical Attributes : People with good physical features such as height, appearance, health etc. are attractive. A healthy and active person can himself work hard and efficiently and thereby, has the capability of being looked up to. Thus, he can induce his subordinates as well to work and perform better.

(b) Honesty : A good leader should maintain high degree of honesty. He should be sincere and should follow ethics and values. He should be an idol for others in terms of honesty, integrity and values.

(c) Intelligence : A leader must have a good presence of mind and knowledge. He should be competent enough to effectively examine and solve the problems encountered in the course of work. He must have the required intelligence to take proper decisions based on logic and facts.

(d) Inspiration : A leader should be a source of inspiration and motivation to others. That is, he must be exemplary in terms of work, performance and values. He must be able to develop willingness among the subordinates to work to the best of their capabilities.

(e) Confidence : A leader should be high in confidence. He must also be able to maintain his confidence in difficult situations as well. Only when a leader is confident himself, he can boost the confidence of his subordinates.

(f) Responsibility :

A leader should command responsibility for the work and tasks of his group. He should hold the responsibility of being answerable for the mistakes of his subordinates. However, as a mark of encouragement he must share the credit of the success with his subordinates.

(g) Effective Communication Skill : A leader should be able to clearly express his ideas and instructions clearly to the subordinates. On the other hand, a leader also forms the link between the higher authorities and the subordinates. He should be able to effectively pass the problems and suggestions of the subordinates to the seniors. Besides, he should also be a patient listener and counsellor.

(h) Ability to take Decisions : A leader should be able to take appropriate decisions based on logic, facts and figures. Moreover, he should be confident enough to hold on to his decisions and not get confused.

(i) Social Behaviour : He should maintain a friendly and supportive behaviour with his subordinates. He must be able to understand people and maintain good social relations with them.

(j) Dynamic : A leader must be dynamic and outgoing. He must be able to take up new initiatives and break the old paradigms for the benefit of the organisation.

Though the above mentioned qualities are necessary for being a good leader, however, the mere presence of these qualities does not ensure leadership success. In fact, no single individual can possess all the qualities. However, a conscious effort must be made by the managers to acquire them.

3. Discuss Maslow’s Need Hierarchy theory of motivation.

Ans: Maslow’s Need Hierarchy theory provides an understanding of the complex phenomenon of motivation. According to Maslow, 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 the employees, appropriate motivation can be provided to them.

Assumptions:

Maslow’s theory is based on the following assumptions.   

(i) People’s need influences their behaviour.

(ii) Needs of the individuals can be arranged in a hierarchical order.

(iii) An individual can move to a higher level need only when the lower level need in the hierarchy is satisfied.

(iv) Once a need is satisfied, an individual can be motivated only through the next higher level need.

The following is the hierarchy of needs as given by Maslow.

(a) Physiological Needs : Such needs comprise of essential requirements for sustenance of life. They are at the top of the hierarchy. The fulfilment of these needs is necessary for survival. For example, food, clothing, shelter are physiological needs. An employee requires a certain basic salary for the satisfaction of these needs.

(b) Security Needs : These needs relate to physical and economic security and well-being. For example, an employee desires job security, income stability, etc.

(c) Belongingness Needs : Such needs comprise of the social needs of an individual such as affection, acceptance, companionship, etc. as every individual yearns for social acceptance and belongingness.

(d) Esteem Needs : These needs include such elements as respect, dignity, recognition, etc. as every individual wants to command respect and acknowledgement in the peer group.

(e) Self-Actualisation Needs : This need refers to achieving what one aims or aspires. It is the highest level need in hierarchy. For an employee such needs relate to growth, work satisfaction, etc.

Maslow’s theory is widely appreciated and is used as basis for motivation by the managers. However, sometimes it can happen that needs of an individual do not follow the exact order of hierarchy. Nevertheless, an understanding of the needs as given by Maslow helps the managers in practicing efficient motivation.

4. What are the common barriers to effective communication? Suggest measures to overcome them.

Ans: Barriers in Communication: Sometimes the information that reaches the receiver is not in the manner that the sender had intended. That is, at times there arises misunderstanding or misinterpretation of the information as it is passed from the sender to the receiver. This creates barriers in the effective flow of communication. Barriers to communication can be classified as follows:

(a) Semantic Barriers : Semantic barriers of communication relate to the use or understanding of language. Sometimes it happens that certain words, sentences or phrases remain ambiguous or difficult to understand. Thereby, they are likely to get misinterpreted. Such barriers in communication that arise out of ambiguity or difficulty in understanding of words and sentences are known as semantic barriers. For example, sometimes while giving out instructions the senior or specialist uses technical vocabulary that might be difficult to understand for the subordinates. Similarly, at times two or more words have the same pronunciation (such as access and excess), that results in confusion regarding the correct interpretation of the word.

(b) Psychological Barriers :

Sometimes psychological factor such as frustration, anger, fright may also obstruct effective communication. For example, out of frustration over a certain matter, an individual’s mind may be preoccupied and he may not be able to attentively grasp the information given to him. Similarly, due to preconceived notions regarding a conversation, an individual might derive conclusions even before the information is completed.

(c) Personal Barriers : Sometimes personal factors related to the sender or the receiver act as a hurdle in communication. For example, often in formal organisations, superiors do not share such information that they fear will harm their authority. Similarly, due to lack of trust on their subordinates, they may not be willing to pay attention to the information provided by them. In a similar manner, subordinates may lack the incentive to communicate freely with the superiors. Thus, in such cases effective communication is hindered due to personal factors pertaining to the sender and the receiver

(d) Organisational Barriers : In formal organisational structures, barriers to communication arise due to such factors as authority, rules, regulations, relationships, etc. For example, if an organisation follows long vertical chains of communication, it might result in delay in the flow of information. Similarly, a highly centralised organisational structure obstructs free communication.

Measures to overcome Barriers in Communication:

The following are some of the measures that can be adopted to overcome various barriers of communication.

(i) The communication should take place as per the understanding level and capabilities of the receiver. That is, it must be ensured that the receiver is clearly able to understand the information.

(ii) The language, tone and content of the information should be appropriately chosen. It should be easily understandable and should not harm anybody’s sentiments.

(iii) For the communication to be effective proper feedbacks must be taken from the receiver. That is, he must be encouraged to respond during the conversation.

(iv) It must be ensured that the information is complete in all respect and nothing is left ambiguous.

(v) The core idea of the communication must be clear between the sender and the receiver. That is, it must be conveyed properly what the communication is about.

(vi) The sender of the information should also be a patient listener. He should be open to communication from the other end as well.

5. Explain different financial and non-financial incentives used to motivate employees of a company?

Ans: Financial Incentives: Financial incentives refer to direct monetary incentives offered to the employees to motivate or reward people for better performance. The following are some of the financial incentives used in the organisations.

i. Salary and Allowances : In every organisation salary and allowances given to the employees forms the basic form of financial incentive. Regular raise in salaries and grant of allowances acts as a motivation for the employees

ii. Performance Based Incentives : Often organisation offer monetary rewards for good performance. This induces the workers to improve their efficiency and performance.

iii. Bonus : Bonus refers to the extra reward over and above the basic salary. It can take the form as cash, gifts, paid vacations, etc. For example, some organisations grant bonus during festival times such as Diwali bonus.

iv. Stock Option : Under this incentive scheme, the employee is offered the shares of the company at a price lower than the market price. This instils a feeling of ownership and belongingness in the employee and urges him to contribute towards the goals of the organisation.

v. Sharing of Profit : Herein, the organisation shares a portion of the profit with its employees. This encourages the workers to contribute actively towards the growth of the organisation.

vi. Retirements Benefits : Many organisations offer certain retirement benefits to its employees such as pensions, gratuity, provident fund, etc. This provides a sense of security and stability to the employees.

vii. Fringe Benefits : Besides the basic salary an organisation may offer certain additional advantages also to its employees such as housing allowance, medical allowance, etc.

Non-Financial Incentives: Non-financial incentives refer to those incentives that focus on non-monetary needs of the employees such as the social and psychological needs. The following are some of the non- financial incentives used in the organisations.

i. Position :

Rise in status in terms of power, authority, responsibility provides a psychological boost to the employees. For example, a promotion may satisfy the esteem and self actualisation needs of an individual.

ii. Organisational Characteristics : Certain characteristics such as employee freedom, recognition of performance, incentives and rewards play an important role in influencing the behaviour of the employees. For example, if the employees get due recognition for their performance, it encourages them to work more efficiently.

iii. Work Enrichment : Often, a challenging work endowed with greater responsibility and requiring higher knowledge and skill enhances the interest of the employee. It provides the employee prospects for personal growth. Thus, it proves to be a good source of motivation for him.

iv. Career Opportunities : If the organisation is endowed with appropriate growth and career opportunities for its employees, it strives then to perform better and thereby, climb the professional ladder.

v. Job Security : An employee should have a certain extent of security regarding his association with the organisation. Constant fear of losing the job hampers their efficiency. However, a complete security can also result in loss of interest in work.

vi. Involvement : If an organisation allows the participation of the employees in the policy and decision making matters, then it instils a feeling of belongingness in them and motivates them to work towards the organisational goals.

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Directing Class 12 Important Extra Questions Business Studies Chapter 7

February 10, 2021 by Prasanna

Here we are providing Class 12 Business Studies Important Extra Questions and Answers Chapter 7 Directing. Business Studies Class 12 Important Questions are the best resource for students which helps in class 12 board exams.

Class 12 Business Studies Chapter 7 Important Extra Questions Directing

Directing important extra questions short answer type.

Question 1. Explain the term Directing. Answer: Directing – Meaning: In the ordinary sense, directing means giving instructions and guiding people in doing work. In our daily life, we come across many situations-like a father directing his daughter to do work in organizing a function, a teacher directing his student to complete an assignment, a film director directing the artists about how they should act in the film, etc. In all these situations we can observe that directing is done to achieve some predetermined objective.

In the context of the management of an organization, directing refers to the process of instructing, guiding, selling, motivating, and leading people in the organization to achieve its objectives.

You can observe here that directing is not a mere issue of communication but encompasses many elements like supervision, motivation, and leadership. It is one of the key managerial functions performed by every manager. Directing is a managerial process that takes place throughout the life of an organization.

The main characteristics of directing are discussed below:

• Directing initiates action: Directing is a key managerial function. A manager has to perform this function along with planning, organizing, staffing, and controlling while discharging his duties in the organization. While other functions prepare a setting for action, directing initiates action in the organization.
• Directing takes place at every level of Management: Every manager, from the top executive to supervisor performs the function of directing. The directing takes place wherever superior-subordinate relations exist.
• Directing is a Continuous process: Directing is a continuous activity. It takes place throughout the life of the organization irrespective of people occupying managerial positions. We can observe that in organizations like Infosys, Tata, and BHEL, HLL – the manager may change but the directing process continues because without direction the organizational activities cannot continue further.
• Directing flows from top to bottom: Directing is first initiated at the top level and flows to the bottom through the organizational hierarchy. It means that every manager can direct his immediate subordinate and take instructions from his immediate boss.

Question 2. Explain in brief the importance of supervision. Answer: Supervision: The term supervision can be understood in two ways. Firstly, it can be understood as an element of directing and secondly as a function performed by supervisors in the organizational hierarchy.

As an element of directing every manager in the organization supervises their subordinates. In this sense, supervision can be understood as the process of guiding the efforts of employees and other resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure optimum utilization of resources and achievement of work targets.

Secondly, supervision can be understood as functions to be performed by a supervisor, a managerial position in the organization hierarchy at the operative level i.e., immediately above the worker. The functions and performance of a supervisor are vital to any organization because he is directly related to workers whereas other managers have no direct touch with bottom-level workers.

Importance of Supervision: The importance of supervision can be understood from multiple roles performed by a supervisor. These are explained below. 1. Supervisor maintains day to day contact and maintains friendly relations with workers. A good supervisor acts as a guide, friend, and philosopher to the workers.

2. Supervisor acts as link-between workers and management. He conveys management ideas to the workers on one hand and workers’ problems to the management on the other. This role played by the supervisor helps to avoid misunderstandings and conflict between management and workers/employees.

3. Supervisor plays a key role in maintaining group unity among workers placed under his control. He sorts out internal differences and maintains harmony among workers.

4. Supervisor ensures the performance of work according to the targets set. He takes responsibility for task achievement and motivates his workers effectively.

5. Supervisor provides good on-the-job training to the workers and employees. A skilled and knowledgeable supervisor can build an efficient team of workers.

6. Supervisory leadership plays a key role in influencing the workers in the organization. A supervisor with good leadership qualities can build up high morale among workers.

7. A good supervisor analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills.

Question 3. Explain in brief the elements of the communication process. Answer: Elements Of Communication P: Communication has been defined as a process. This process involves the elements like source, encoding, media/channel, receiver, decoding, noise, and feedback. The process is represented in the figure below.

The elements involved in the communication process are explained below –

• Sender: Sender means a person who conveys his thoughts or ideas to the ‘ receiver. The sender represents a source of communication.
• Message: It is the content of ideas, feelings, suggestions, order, etc. intended to be communicated.
• Encoding: It is the process of converting the message into communication symbols such as words, pictures, gestures, etc.
• Media: It is The path through which an encoded message is transmitted to the receiver. The channel may be in written form, face to face, phone call, internet, etc.
• Decoding: It is the process of converting encoded symbols of the sender.
• Receiver: The person who receives communication from the sender.
• Feedback: It includes all those actions of the receiver indicating that he has received and understood the message of the sender.
• Noise: Noise means some obstruction or hindrance to communication.

The hindrance may be caused to sender, message, or receiver. Some examples of noise are: (a) Ambiguous symbols that lead to faulty encoding. (b) A poor telephone connection. (c) An inattentive receiver. (d) Faulty decoding (attaching wrong meanings to message) (e) Prejudices obstructing the poor understanding of the message. (f) Gestures and postures that may distort the message.

Question 4. Explain in brief the functions of a supervisor. Answer: Functions of a supervisor: The function performed by a supervisor are briefly discussed below – 1. Preparation of Work Schedules: Scheduling involves laying down the time for starting and completing various activities. The supervisor determines the schedules of work for every individual in his unit or section. This is done to ensure a steady flow of work.

2. Improving Communication: The supervisor maintains direct contact with the subordinates which leads to effective communication. He also provides leadership to the workers of his department. He fixes production targets for them and provides them the necessary guidance for doing the work assigned to them.

3. Optimum Utilisation of Resources: The supervisor issues orders and instructions to the workers for achieving coordination in section. He tells them what to do and how to do it so that they may utilize machines, materials, money, and methods effectively.

4. Providing Motivation: The supervisor motivates his subordinates by providing financial and non-financial incentives. He inspires them for higher quality and productivity.

5. Control of Performance: The supervisor controls the performance of the workers by comparing their performance with the standards. He takes necessary action to ensure that goods are produced according to the predetermined standards. He also provides feedback to the subordinates about their performance and gives them counseling for improvement.

6. Reporting: The supervisor keeps records of output and other related aspects of each employee. On the basis of records, he sends performance reports and other necessary information to his superior.

7. Link Between Management and Workers: The supervisor is an important link between the management and the workers. He explains management policies to the workers and also passes on the management’s instructions. He has close contact with the workers and tries to understand their problems. He brings worker’s problems to the notice of the top management.

8. Human Relations: A supervisor tends to achieve good human relations in his unit. He can mix up with the workers and share their joys and sorrows. He also settles conflicts between workers or groups of workers.

9. Grievance Handling: A supervisor is in direct touch with the workers, so he can handle their grievances effectively. When a grievance is reported, he listens to the worker’s viewpoint and tries to remove the cause of grievance. But if he can’t redress the grievance he should report it to the upper-level management.

Question 5. Differentiate between formal and informal communication. Answer: Comparison of Formal and Informal Communication:

Question 6. What is the importance of leadership? Explain. Answer: Importance of Leadership: Leadership is considered the most important element of the directing function of management. It supports all other managerial functions by assisting in the formulation and execution of plans. Good leadership provides the following benefits.

1. Clarification of Goals: A leader interprets and explains the objectives of the group to his followers. As a result, the members of the group know the targets to be achieved and the contribution, each of them is to make towards common objectives. They are not likely to go astray and will continue in the right direction.

2. Motivation: A good leader creates- an urge for higher performance among people. He creates self-confidence and enthusiasm among his subordinates. He converts lukewarm desire into a burning passion for success. A sound leader can create an environment conducive to hard work. He directs the potential talent of employees towards the achievement of goals.

3. Moral Building: A leader builds up dedication and loyalty among a group of people. He develops mutual cooperation and self-discipline among people. The persons become ready to sacrifice even their lives for the good of the common goal. Under a good leader, people work willingly and enthusiastically. The leader encourages subordinates to take initiative and provides psychological support to them. He serves as a friend, philosopher, and guide for his group.

4. Teamwork: An organization can be successful only when all its members work together as a team rather than going in different directions. It is the leader who creates team spirit and coordination among different members of the group. He resolves internal conflicts and differences, of opinion. He serves as an arbitrator and mediator among the members. A leader harmonizes the personal goals and aspirations of subordinates with the goals of the organization as a whole.

5. Creates dynamic environment: In the dynamic environment of today, frequent changes are required in the structure and working of an organization. But change creates uncertainly and inconvenience. Therefore, people tend to resist change. A good leader persuades people to accept and carry out the desired changes. A leader is an important agent of organizational change and development. He provides psychological support to his followers.

6. Representation: A leader serves as the representative of his followers. He protects their interest and serves as their guardian. He acts as their spokesman and bargains with the outside forces for the welfare of the groups. A true leader upholds the interests of his followers and attempts to fulfill their hopes and aspirations. He is always ready to solve the problems of his followers. A leader manager represents his organization in business meetings, trade conferences, government committees, and so on.

Competent leadership is required at all levels of management. All managers must provide leadership so as to create an urge in the employees to cooperate and improve their performance towards the achievement of organizational objectives.

Question 1. Explain the nature and importance of communication in today’s changing business world. Answer: Nature Of Communication: The foregoing definitions reveal the following characteristics of communication – 1. Pervasive Function: Communication is required at all levels of management and in all departments of the organization. It is an indispensable part of the management process. It is an activity of each and every manager. Therefore, communication is regarded as a pervasive function.

2. Continuous Process: Communication is an ongoing process that has to be in regular touch with their subordinates and superiors to maintain and improves performance.

3. Two-Way Process: Communication is a two-way process. It includes sending a message and the response to that message. It is not complete until the reaction or response to the message is available. The reaction or response is known feedback.

4. Circular Process: Communication becomes a circular process with feedback. The flow of communication is a circular one.

5. Two or more Parties: It requires at least two persons to complete the process of the communication-a sender with the message and a receiver who must understand the message and respond to it.

6. Understanding: The receiver may or may not agree with the point of view of the sender of the message. However, for communication to be complete, the receiver must understand the message in the same sense as intended by the sender.

Importance Of Communication: Communication is an indispensable part of the process of management. Non an organization can survive and grow without an effective system of communication. Since the job of a manager is to get things done through others, he has to spend a major portion of his time on communication. The first executive function is to develop and maintain a system of communication. Most of the problems of management arise due to a lack of understanding. Therefore, communication’s the number one problem of management today:

Sound communication offers the following benefits: 1. Basis of Planning and Decision Making Communication is essential for decision-making and planning: The quality of managerial depends on the quality of communication (amount and quality of information available to the organization) Communication provides the necessary information with the help of which managers can diagnose problems, evaluate alternative courses of action and choose the right alternative.

Realistic Planning and sound decision making is not possible without accurate information through communication, for example, the entire sales plan of an enterprise may fail if the information about the latest market condition is not available to management. At the same time, the decisions and plans of management need to be communicated to the subordinates. Effective communication is also helpful for the proper implementation of plans and policies of the management.

2. Smooth and Efficient Operation: An effective communication system serves as a lubricant, fostering the smooth and efficient functioning of the enterprise. The achievement of goals of the enterprise is of paramount importance and communication is one of the important tools available to the manager to attain them. It is through communication that a manager issues orders and instructions and changes and regulates the behavior of subordinates in the desired direction. Effective communication promotes managerial efficiency and facilitates leadership.

3. Facilitates Coordination: In every organization, the work to be done is divided among several interrelated departments and sections. The activities and efforts of different individuals and groups must be coordinated. Communication is the most effective means of creating cooperation and coordination. The exchange of ideas and information helps in bringing about the unity of action in the pursuit of a common purpose.

Communication binds people together. Group meetings used in coordination involve the exchange of ideas and knowledge and the transfer of information and understanding. Communication is at the root of all group activity. It is through coordination that managers come closer to employees. Interaction and discussion between the two sides improve the superior-subordinate relationships.

4. Employee Motivation and Moral: Communication helps management to keep the employees fully informed about the plans, job changes, etc. The motivation and morale of employees tend to be high when they clearly understand what they are supposed to do. Sharing of information with employees and discussion with them on matters of common interest provide satisfaction to employees.

Communication is the means by which employees can bring their suggestions, difficulties, and grievances to the notice of the management. Upward communication ensures greater job satisfaction and stimulates worker’s enthusiasm and loyalty towards the enterprise. Effective communication satisfies the personal and social of employees.

5. Sound Industrial Relations: Effective communication helps to create mutual understanding and trust between the employer and the employees. It enables the management to come into close contact with workers. It serves as a bridge between management and labor and creates a spirit in the organization. Thus, an effective communication system is a prerequisite for good labor-management relations.

6. Industrial Democracy: Communication is essential for worker’s participation in management. It is helpful in the delegation and decentralization of authority. Effective communication is the basic training and development of managerial personnel. The process of leadership itself depends upon effective communication.

Public Relations: In the modern business world, every business enterprise must create and maintain a good corporate image in society. Communication is an indispensable means of developing a favorable public opinion. It is through communication that management can keep cordial relations with the government, trade unions, customers, and the community.

In modem business the role of communications has increased due to the following reasons: (a) Increasing size of organizations. (b) Growing complexities in decision making. (c) Rapid changes in technology. (d) Need for better industrial relations. (e) Growth of trade union movements. (f) Need to improve public relations, (g) Increasing Competition.

Question 2. Explain the nature and importance of Motivation. Answer: Importance Of Motivation: The success of an organization to a great extent depends upon the motivation of its employees. By motivating employees, managers can obtain their best performance towards the achievement of organizational and individual goals. Motivation is the core of management due to the following reasons.

1. Higher Efficiency: The level of performance of employees in an organization depends on their abilities and willingness to work hard. Motivation bridges the gap between the ability to work and willingness to work. It induces employees to contribute their maximum efforts to achieve a higher level of performance. Therefore, motivation helps in increasing production and reducing the cost of operations.

2. Optimum utilization of Resources: Every organization has physical, financial, and human resources. Effective utilization of physical and financial resources requires competent and motivated people. Motivation creates the willingness to work among employees. It enables managers to achieve the best possible utilization of all resources.

3. Achievement of Organisational Goals: The objectives of an organization cannot be realized unless the people working in it are motivated to work hard contribute their best towards the fulfillment of the assigned tasks. Management can secure the willing cooperation of subordinates towards the accomplishment of organizational goals by satisfying their needs through appropriate rewards. Motivated employees fully cooperate with management in achieving the desired results.

4. Stability in the Workforce: Motivation creates confidence in employees. It helps to improve their loyalty and commitment towards the organization. As a result, the rates of labor absenteeism and labor turnover are reduced. This leads to the maintenance of a stable workforce. The knowledge skills and experience of employees continue to be available to the organization.

5. Cordial Relations: Motivation brings satisfaction among employees through monetary and non-monetary rewards. Therefore, it leads to a friendly and supportive relationship between the employer and employees. Industrial disputes are reduced and the morale of employees is increased.

6. Facilitates change: Effective motivation helps management in overcoming resistance to change motivated employees and to support all changes that are in the interest of the organization. This is because they identify their own progress with the prosperity of the enterprise.

7. Corporate linage: When the employees of an organization are motivated and satisfied, the organization makes rapid progress and its reputation improves. Thus, motivation helps in building a better image of the enterprise. As a result, the enterprise is able to attract qualified and competent people.

• Commerce Important Questions
• Class 12 Business Studies
• Chapter 7 Directing

Important Questions Class 12 Business Studies Chapter 7 - Directing

Important Questions with Answers for CBSE Class 12 Business Studies Chapter 7 – Directing which is outlined by expert Business Studies teachers from the latest version of CBSE (NCERT) books

CBSE Class 12 Business Studies Chapter-7 Important Questions:

State any two non-financial incentives

• Status- In a company context, status is referred to as the position or rank given to an employee. In simple words, status can be any managerial post assigned to a person.
• Career Advancement Position- It refers to higher-level progression in one’s career. A person’s progress can be a move from an entry-level job to a managerial position with the same field.

Also Check: Business Studies MCQs

Give the meaning of ‘motivation’ as an element of directing.

Answer: Motivation as an element of directing is a process of understanding and stimulating an employee to work towards the desired objectives and goal. It encourages workers to operate to the best of their skills and work towards common objectives and purpose of a company.

Explain three points that highlight the importance of directing the function of management .

Answer: In any organisation, the operation begins with the function of directing. The three important points of directing function of management are mentioned below.

• Achieving objectives- The actual action of a company starts with the directing function of management. A company cannot function without proper direction and guidance. The directing assists an individual to conclude a specified task properly and on time. The directing also motivate and supervise the employee to accomplish their objectives more efficiently.
• Integration of Effort- Every company have many employees, with different job role and work at various levels. It is only through directing all the employees’ efforts are integrated and channelised towards accomplishing the common company goal.
• Employees Development- Right guidance helps and guides an employee in the right direction. Components of directing such as leadership and motivation encourage an employee to give their best and help the company achieve the ultimate goal.

What is meant by ‘Esteem needs’ and ‘self-actualisation needs’ in relation to the motivation of an employee?

• Esteem needs- It refers to the need for self-esteem, self-confidence, and respect. Esteem needs are the foundation of human desire, which needs to be accepted and valued by others. Esteem need includes self-belief, confidence, personal and social acceptance, strength, and respect from others.
• Self-actualisation needs- It refers to the need for personal development and discovery of what one is capable of doing. Self-actualisation is those individuals who are fulfilled and correctly doing what they are capable of doing.

Explain five points of importance of directing function of management.

Answer: Importance of directing function of management.

• Directing Initiates action- It helps an employee to initiate an action and achieve the desired goal.
• Directing Integrates Employee’s Effort- Directing assures integration of employees’efforts towards the achievement of company goals.
• Motivation and Leadership- It motivates an employee to show their leadership quality to work efficiently and give their maximum contribution to achieving an organisation goal.
• Directing Facility Change- In an organisation, an employee often withstand changes due to the fright of the adverse effect. Efficient directing motivates and encourages the employee to get through the turns.
• Helps in Stability and Balance in a Company- Effective directing stimulate supportiveness and engagement among an individual and help in balancing between multiple department and activities.

What are the various types of leadership style? Example.

Answer: The various types of leadership style are.

• Autocratic and Authoritarian Leader- It is a leadership style identified by an individual that has total authority and control over decision making. Authoritarian Leader makes a decision based on their choices or ideas and expect little input from others or accepts others advice.
• Democratic or Participatory Leader – It is a type of leadership, where the leader and the team member take a more participatory role in a decision-making process. Each participant is given a chance and opportunity to share and exchange ideas freely.
• Laissez-Faire and Rein Leader -In this leadership style, leaders do not participate in any decision-making process and allow group members to make a decision.

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Directing Case Studies for Class 12 Business Studies Chapter 7

• Last modified on: 6 months ago
• Reading Time: 7 Minutes

Table of Contents

Here you will find Case Study Questions for CBSE Class 12 Business Studies (BST) Chapter 7 Directing.

Directing Case Study Questions

Case Study Question 1:

Units and Chapter List:

Unit 1 – Nature and Significance of Management, Principles of Management and Business Environment

Chapter 1: Nature and Significance of Management Case Studies Chapter 2: Principles of Management Case Studies Chapter 3: Business Environment Case Studies

Unit 2 – Planning and Organising

Chapter 4: Planning Case Studies Chapter 5: Organising Case Studies

Unit 3 – Staffing, Directing and Controlling

Chapter 6: Staffing Case Studies Chapter 7: Directing Case Studies Chapter 8: Controlling Case Studies

Unit 4 – Financial Management and Financial Market

Chapter 9: Financial Management Case Studies Chapter 10: Financial Market Case Studies

Unit 5 – Marketing and Consumer Protection

Chapter 11: Marketing Case Studies Chapter 12: Consumer Protection Case Studies

How to Tackle Business Studies Case Studies in Exams

Here’s a tip on how to approach and answer case study questions for Class 12 BST (Business Studies) exams:

1. Understand the Format:

• Case study questions are designed to test your ability to analyze and apply your knowledge to real-world situations.
• These questions are usually longer in length, but your answers should be concise and to the point.

2. Careful Reading:

• Begin by carefully reading the entire case study. Don’t rush; understand the context and details provided.
• Pay attention to any data, statistics, or specific information presented in the case.

3. Examine the Question:

• Before diving into the case study, read the question(s) associated with it. This will help you focus on what to look for while reading the case.
• Identify the key concepts or issues the question is addressing.

4. Highlight Key Information:

• While reading the case, underline or highlight important facts, figures, or statements that seem relevant to the question.
• Make notes if necessary to organize your thoughts.

5. Analyze the Situation:

• Once you have a good grasp of the case and its details, analyze the situation. Consider the cause-and-effect relationships, potential solutions, and any ethical or business principles involved.

6. Structure Your Answer:

• Start your answer with a brief introduction, summarizing the main problem or situation presented in the case.
• Organize your response logically. You can use bullet points or numbered lists for clarity.
• Present your analysis, providing relevant business theories or concepts as appropriate.
• Offer solutions or recommendations based on your analysis. Be clear and concise in your suggestions.

7. Use Simple Language:

• Write your answers in clear and simple language. Avoid unnecessary jargon or complex vocabulary.
• Ensure your answers are easy to understand for the examiner.

8. Practice with Sample Papers:

• Practice case study questions from sample papers and previous year papers to get a feel for the format and types of questions that may be asked.
• Writing practice answers will help you refine your approach.

Remember to practice, and you’ll become more proficient at tackling case study questions effectively.

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NCERT Solutions for Class 12 Business Chapter 7 - Directing

• NCERT Solutions
• Business Studies
• Chapter 7 Directing

Class 12 NCERT Solutions Business Studies - Directing - Free PDF Download

NCERT Solutions of Class 12 Business Studies Chapter 7 provides one of the spectacular study materials for students to excel in their examinations. Students who find it difficult to grasp the concepts of Chapter 7 Directing of Business Studies Class 12 can get hold of the study materials provided by NCERT solutions. Study materials available are highly revised content which enables the students to get a vision about Business Studies. Various aspects of CBSE Class 12 Business Studies Chapter 7 is covered in these. These notes benefit the students in school life and also prepares them for future competitive examinations.

Related Chapters

Access NCERT Solutions for Class 12 Business Studies Chapter 7 – Directing

1. What is informal communication? 

Ans: Communication between employees who are not officially related to each other is called informal communication, this type of communication may flow in any direction thus it is also called 'grapevine'. Informal communication involves the flow of information in all directions without regard for the level or authority of the sender. 

Informal communication arises from the need for employees to exchange ideas that cannot be done through formal channels. The informal communication spreads information rapidly and sometimes generates rumors.

2. Which style of leadership does not believe in use of power unless it is absolutely essential? 

Ans: Laissez Faire, or free rein leadership does not believe in using power unless it is absolutely necessary. Subordinates are given complete decentralisation of authority under such leadership. Hence, the subordinates are given complete autonomy and are encouraged to make their own decisions.

3. Which element in the communication process involves converting the message into words, symbols, gestures etc.?

Ans: Encoding is the step in the communication process that involves converting the message into words, symbols, gestures, and so on.

4. The workers always try to show their inability when any new work is given to them. They are always unwilling to take up any kind of work. Due to sudden rise in demand a firm wants to meet excess orders. The supervisor is finding it difficult to cope up with the situation. State the element of directing that can help the supervisor in handling the problem

Ans: The element is motivation. 

Also, the firm can do the following to enhance workers motivation:

Supervisor can provide monetary incentives like wages linked with productivity to motivate the employees.

He can encourage the workers to work by making them understand that this work will lead to increased exposure to industry and will have better job prospects.

Opportunity for effective leadership should be provided to employees so that they get motivated, and have a sense of responsibility.

5. What are semantic barriers of communication? 

Ans: Semantics is a branch of linguistics that studies the meaning of words and sentences. Semantic barriers are problems and impediments in the process of encoding and decoding messages into words or impressions. Typically, such barriers arise as a result of the use of incorrect words, erroneous translations, or differing interpretations. Some of the causes of semantic barriers are as follows.

Badly Expressed Message: The information may not be clearly expressed at times due to a lack of vocabulary or incorrect word usage.

Symbols with Different Meanings: A word may have more than one meaning at times, or two or more words may have the same pronunciation (such as idle and idol). The correct interpretation of the word remains ambiguous in such cases.

Faulty Translations: In some cases, the proficiency of a language varies between workers and managers. In such cases, a translation of the information into a language that the workers can understand is required. However, some words or sentences may be misinterpreted during the translation process. For example, the meaning of certain words may change in a translation of an instruction from English to Hindi.

Technical Jargon: When giving instructions, the senior or specialist may use technical terminology that the subordinates may find difficult to understand( such as the meaning of drawings for a commerce student and some either person is different).

Body Language and Gesture Decoding: Every movement of the body conveys some meaning. The communicator's body movement and gestures are extremely important in conveying the message. Communications may be misinterpreted if there is a mismatch between what is said and what is expressed through body movements. As in your face expression reveals anger, while your hand movements reveal otherwise.

Unclarified Assumptions: Certain assumptions in some communications may be open to different interpretations.

6. Explain the process of motivation with the help of a diagram. 

Ans: Motivating someone entails inducing and stimulating them to act in a certain way. The following points describe the motivational process.

Unsatisfied Need: The motivation process begins with an individual's unsatisfied need.

Tension: As the desire goes unsatisfied, frustration builds up in the individual's mind.

Motives/Drives: Frustration motivates the individual to seek out alternatives to meet his needs.

Search Behaviour: He selects one of several options and begins acting in accordance with it.

Satisfied Needs: After a period of time, he evaluates whether or not his need has been met.

Reduced Tension: Once the need is met, the individual's frustration and tension are relieved.

Example: Assume a person wishes to advance in his or her career. This makes him uneasy, and he begins to look for other ways to advance in his career. He may consider working harder and bettering his performance. After consistently working hard, he may receive recognition and a promotion, which will finally satisfy his desire and alleviate his frustration.

The process of motivation explains by the following diagram:

(Image Will Be Updated Soon)

7. Explain the different networks of grapevine communication? 

Ans: Grapevine communication, also known as informal communication, is a communication that develops as a result of social interaction among employees and spreads without following the formal communication path. The types of grapevine communication networks are as follows.

Single Strand Network: In this network, information spreads from one person to the next person in a certain sequence. That is, one person communicates with another, who then communicates with yet another. Hence , information is passed through a line of persons.

Gossip Network: In a gossip network, one person spreads information to a large number of people. Such as gossip about the new employee who recently joined the organization etc.

Probability Network: In a probability network, an individual shares information with other people at random. That is, the individual is unconcerned about who he shares the information with.

Cluster Network: Information in this network is first shared between two people who trust each other. One of them then passes the information on to another, who then passes it on to another, and so the information spreads.

8. Explain the three principles of directing? 

Ans: Management's function of directing is quite complex. Certain principles have been developed to aid in the directing process. The principles of directing are as follows.

Maximum Individual Contribution: A manager should use directing techniques that encourage employees to perform to the best of their abilities, according to this principle. It should motivate employees to work toward the organization's goals. That is, each individual should make the greatest possible contribution to the organization's goals. Managers, for example, can use appropriate incentive and motivation techniques to encourage employees to perform better.

Appropriateness of Direction Technique: This principle states that the direction technique to be used should be appropriate. It should be appropriate for the employees' needs and attitudes. For example, one employee may be motivated by praise, whereas another requires monetary compensation. As a result, the manager should employ appropriate directing techniques based on the situation.

Managerial Communication: Effective communication is essential for effective directing. The superior's instructions and commands must be clear and easily understood by the subordinates. Furthermore, subordinates must be able to communicate with superiors without hesitation. They must be able to freely express their opinions and suggestions. As a result, effective two-way communication between the superior and the subordinates is required.

9. In an organisation, one of the departmental manager is inflexible and once he takes a decision, he does not like to be contradicted. As a result, employees always feel they are under stress and they take least initiative and fear to express their opinions and problems before the manager. What is the problem in the way authority is being used by the manager? 

Ans: The manager is an autocratic leader.

An autocratic leader gives orders and expects others to obey them. The decision-making power is centralized. Due to the inflexibility of the leader, employees feel demotivated and discouraged due to the leader's unwillingness to take their suggestions, and the productivity is also impacted due to demotivated employees.

To solve this issue, the manager needs to be a little flexible, and foster positive communication with its employees, as well as welcome suggestions from them.

10. A reputed hostel, GyanPradan provides medical aid and free education to children of its employees. Which incentive is being highlighted here? State its category and name any two more incentives of the same category.

Ans: GyanPradhan has provided its employees with perquisites and fringe benefits such as free education for children and medical aid. This comes under Financial incentives.

Other financial incentives include:

Bonus: An additional reward given in addition to the salary, such as gifts, a festival bonus, and so on.

Retirement Benefits: Providing employees with retirement benefits such as pensions, gratuities, provident funds, and so on.

Stock Option: Providing employees with shares of the company at a lower price than the market price.

Profit-Sharing: It is the practice of sharing a portion of a company's profits with its employees (any two)

11. Explain the qualities of a good leader? Do the qualities alone ensure leadership success? 

Ans: It is said that in order to be a successful leader, a person must possess certain characteristics. 

The following are some qualities of a good leader:

Physical Attributes: People with attractive physical characteristics such as height, appearance, and health are considered attractive. A healthy and active person is capable of working hard and efficiently and, as a result, can be looked up to. As a result, he can persuade his subordinates to work harder and perform better.

Honesty: A good leader must be honest at all times. He must be sincere and adhere to ethics and values. In terms of honesty, integrity, and values, he should be an inspiration to others.

Intelligence: A leader must have a strong mental presence as well as knowledge. He should be competent enough to examine and solve problems that arise during the course of his work. He must have the necessary intelligence to make sound decisions based on logic and facts.

Inspiration: A leader should be an inspiration and motivation to others. That is, he must be an example of work, performance, and values. He must be able to instill in his subordinates a desire to work to the best of their abilities.

Confidence: A leader should be self-assured. He must also be able to maintain his confidence in the face of adversity. Only when a leader is confident in himself can he instill confidence in his subordinates.

Responsibility: A leader should assume responsibility for his group's work and tasks. He should accept the responsibility of being held accountable for his subordinates' mistakes. However, as a token of encouragement, he must share the success with his subordinates.

Effective Communication Ability: A leader, on the other hand, serves as a liaison between higher authorities and subordinates. He must be able to effectively communicate the problems and suggestions of his subordinates to his superiors. In addition, he should be a patient listener and counsellor.

Ability to take Decisions: A leader must be able to make sound decisions based on logic, facts, and figures. Furthermore, he should be self-assured enough to stick to his decisions and avoid becoming confused.

Social Behaviour: He should maintain a friendly and supportive attitude toward his subordinates. He must be able to understand people and maintain positive interpersonal relationships with them.

Dynamic: A dynamic and outgoing personality is required of a leader. He must be able to take on new initiatives and challenge old paradigms in order to benefit the organization. 

No, the mere presence of such qualities does not ensure leadership success. In reality. This is because no single person can possess all of the qualities. Managers must, however, make a concerted effort to obtain them.

12. Discuss Maslow's Need Hierarchy theory of motivation. 

Ans: Maslow's Need Hierarchy theory helps to explain the complex phenomenon of motivation. According to Maslow, each person has a set of five needs that can be arranged in a hierarchy. Understanding the needs of employees aids the manager in understanding their behavior. Appropriate motivation can be provided to employees after identifying their needs. This theory was given by Abraham Maslow in 1943, and is based on human needs. 

Assumptions

Satisfaction of needs influences people's behaviour.

Needs are in hierarchical order.

Once need is satisfied only, the next higher need can motivate individuals.

Satisfaction of lower-level needs motivates to move to the next level of need.

Hierarchy of Needs

According to Maslow need hierarchy theory, employees need and wants can be categorised as a hierarchy of five needs:

Basic Physiological Needs: It includes basic needs like hunger, thirst, shelter, sleep, etc.

Safety/ Security Needs: It includes needs of security and protection like job security, etc.

Affiliation/ Social/ Belonging Needs : It includes needs like affection, sense of belongingness, friendship, etc.

Esteem Needs: It includes needs like self respect, autonomy, status, recognition, etc.

Self Actualization Needs: It includes needs that drive to realize a dream.

Maslow's hierarchy of needs theory is widely accepted and is used as a foundation for motivation by managers. However, it is possible that an individual's needs do not always follow the exact order of hierarchy. Nonetheless, understanding Maslow's hierarchy of needs assists managers in practicing effective motivation.

13. What are the common barriers to effective communication? Suggest measures to overcome them. 

Ans: Sometimes information does not reach the intended recipient in the manner intended by the sender. That is, there are times when information is misunderstood or misinterpreted as it is passed from sender to receiver. This obstructs the effective flow of communication. 

Communication barriers are classified as follows.

Semantic Barriers: Semantic communication barriers are related to the use or understanding of language. Certain words, sentences, or phrases may remain ambiguous or difficult to understand at times. As a result, they are prone to being misinterpreted. Semantic barriers are communication barriers that arise as a result of ambiguity or difficulty understanding words and sentences. 

For example, when giving instructions, the senior or specialist may use technical terminology that the subordinates may find difficult to understand. Similarly, when two or more words have the same pronunciation (for example, access and excess), it causes confusion about the correct interpretation of the word.

Psychological Barriers: Psychological factors such as frustration, anger, and fear can all obstruct effective communication. 

For example, an individual's mind may be preoccupied due to frustration with a particular matter, and he may be unable to grasp the information given to him attentively. Similarly, due to preconceived notions about a conversation, an individual may draw conclusions before the information is fully processed.

Personal Barriers: Personal factors associated with the sender or receiver can sometimes act as a barrier to communication. 

For example, in formal organizations, superiors frequently do not share information that they fear will jeopardize their authority. Similarly, if they lack trust in their subordinates, they may be unwilling to listen to the information they provide. Similarly, subordinates may lack the motivation to communicate freely with superiors. As a result, effective communication is hampered in such cases due to personal factors pertaining to both the sender and the receiver.

Organisational Barriers: Barriers to communication arise in formal organizational structures due to factors such as authority, rules, regulations, relationships, and so on. 

For example, if an organization uses long vertical communication chains, the flow of information may be delayed. A highly centralized organizational structure, on the other hand, obstructs free communication.

Measures to Overcome Barriers in Communication 

The following are some of the measures that can be taken to overcome various communication barriers.

Clarify the Ideas Before Communicating: Communication should take place in accordance with the receiver's understanding level and capabilities. That is, it must be ensured that the information is clearly understood by the receiver.

Be Mindful of Message Language, Tone, and Content: The language, tone, and content of the information should be appropriately chosen. It should be simple to understand and should not offend anyone's sensibilities.  

Obtain Proper Feedback: In order for communication to be effective, proper feedback from the receiver must be obtained. In other words, he needs to be encouraged to respond during the conversation.

Communicate for Both the Present and the Future: It must be ensured that the information is complete in every way and that nothing is left ambiguous.

Communicate in Accordance with the Needs of the Receiver: The central idea of the communication must be understood by both the sender and the receiver. That is, the purpose of the communication must be clearly communicated.

Be a Good Listener: The information sender should also be a patient listener. He should also be open to communication from the other side.

14. Explain different financial and non-financial incentives used to motivate employees of a company? 

Ans: Financial Incentives

Financial incentives are direct monetary incentives given to employees in order to motivate or reward them for better performance. Some of the financial incentives used in organizations are as follows.

Salary and Allowances: The basic form of financial incentive in any organization is salary and allowances given to employees. Employees are motivated when their salaries are raised on a regular basis and they are given allowances.

Performance-Based Incentives: Organizations frequently offer monetary rewards for high performance. This motivates employees to improve their efficiency and performance.

Bonus: A bonus is an additional reward given in addition to the basic salary. It can take the form of money, gifts, paid vacations, and so on. Some organizations, for example, offer bonuses during festival seasons, such as the Diwali bonus.

Stock Option: Under this incentive scheme, the employee is offered company shares at a lower price than the market price. This instills a sense of ownership and belonging in the employee and encourages him to contribute to the organization's goals.

Profit Sharing: In this case, the organization shares a portion of its profits with its employees. This encourages employees to actively contribute to the organization's growth.

Retirements Benefits: Many organizations provide retirement benefits to their employees, such as pensions, gratuities, provident funds, and so on. Employees will feel more secure and stable as a result of this.

Fringe Benefits: In addition to the basic salary, an organization may provide its employees with additional benefits such as housing allowance, medical allowance, and so on.

Non Financial Incentives  

Non-financial incentives are incentives which are given to provide psychological and emotional satisfaction rather than monetary satisfaction.

The following are some examples of non-monetary incentives used in organizations.

Position: A rise in status in terms of power, authority, and responsibility provides employees with a psychological boost. A promotion, for example, may meet an individual's esteem and self-actualization needs.

Organizational Characteristics: Certain characteristics, such as employee freedom, performance recognition, incentives, and rewards, play an important role in influencing employee behavior. For example, if employees receive appropriate recognition for their efforts, it motivates them to work more efficiently.

Work Enrichment: A challenging job with more responsibility and requiring more knowledge and skill often piques an employee's interest. It offers opportunities for personal development to employees. As a result, it serves as a good source of motivation for him.

Career Opportunities: When an organization provides its employees with appropriate growth and career opportunities, they strive to perform better and thus climb the professional ladder. 

Job Security: An employee should feel secure in his or her association with the organization. Their efficiency is hampered by the constant fear of losing their job. However, complete security can lead to a loss of interest in one's job.

Involvement: When an organization allows employees to participate in policy and decision-making matters, it instills a sense of belonging in them and motivates them to work toward the organization's goals.

15. In an organisation all the 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 in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out. What system do you think the manager should adopt to improve communication? 

Ans: The manager should adopt a formal system of communication.

Formal communication flows through official channels designed in the organization chart to communicate official information between employees.

Hence the manager should adhere to the single chain, which is a network under formal communication. This network connects a supervisor and his subordinates. Because there are many levels in an organizational structure, communication flows through a single chain from every superior to his subordinate. Only essential information should be passed down the chain of command. Employees at all levels are not permitted to communicate with one another. This will result in increased work efficiency and a leak-proof information system.

Business Studies Class 12 Chapter 7 - Free PDF Download

Students need not anymore search for study materials of Class 12 Business Studies on various websites. The free PDF of Chapter 7 Directing is available for download on our website and our app. Solutions for all the questions listed in the NCERT textbook is available for free. Apart from the textbook questions students now can get extra questions in this free study material. Apart from the normal question and answer format, our experts have included explanations on various topics. Students can get the image of the concept by revising these notes. Notes are scripted in a way that every topic complements one another. Notes are provided systematically helping the students to learn heading wise.

NCERT Solutions Class 12 Business Studies Chapters

Chapter-wise NCERT Solutions for Class 12 Business Studies

Students can access the Class 12 Business Studies Chapter-wise NCERT Solutions from the links provided below.

NCERT Solutions for Chapter-1 Nature & Significance of management

NCERT Solutions for Chapter-2 Principles of Management

NCERT Solutions for Chapter-3 Business Environment

NCERT Solutions for Chapter-4 Planning

NCERT Solutions for Chapter-5 Organising

NCERT Solutions for Chapter-6 Staffing

NCERT Solutions for Chapter-8 Controlling

NCERT Solutions for Chapter-9 Finance and Management

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Chapter-Directing

NCERT Solutions Class 12 Chapter 7 deals with various contents like informal communication, leadership styles, elements of communication, etc. By revising these notes students get a strong sense of confidence to face all types of questions from this chapter. The study material includes every element of this chapter. Learning is made easier through various types of activities and exercises along with the solutions. Students can rely on this one source instead of pressurizing themselves by going behind thousands of other materials. NCERT Solutions can be considered as the students who go to study equipment.

Class 12 Business Studies Chapter Wise Marks Weightage

Check the chapter-wise weightage of Class 12 Business Studies from this table.

Students need to expect up to 20 marks from the unit containing Chapter 7 Directing. Students at no cost can miss out on this chapter as it is a very scoring portion. NCERT solutions assist the students with this by emphasizing on important topics and making the concept clear. The materials provided do not leave out any topics which ensure clarity at all levels. Some of the topics discussed in the notes are styles of leadership, elements of communication, characteristics of directing, etc. A particular topic is explained by covering the definition, characteristics, importance, principles, etc of the same. Students can have a systematic approach to their studies if they learn from NCERT Solutions.

Why Are NCERT Solutions For Class 12 Business Studies Chapter Directing Important?

Real-world Relevance: Concepts like directing, leadership, and communication elements from Class 12 Chapter 7 have practical applications in real life.

Holistic Understanding: NCERT Solutions aim to provide a comprehensive understanding, emphasizing practical application alongside academic knowledge.

Time-saving: Students don't need additional notes as NCERT Solutions cover all chapter topics, saving time in preparation.

Efficient Revisions: A single study material is sufficient for final revisions, eliminating the need for multiple notes for one chapter.

Benefits of using Vedantu for NCERT Solutions for Class 12 Chapter 7 - Directing

Key Features of NCERT Solutions, These solutions are designed to help students achieve proficiency in their studies. They are crafted by experienced educators who excel in teaching business Subjects. Some of the features include:

Comprehensive explanations for each exercise and questions, promoting a deeper understanding of the subject.

Clear and structured presentation for easy comprehension.

Accurate answers aligned with the curriculum, boosting students' confidence in their knowledge.

Visual aids like diagrams and illustrations to simplify complex concepts.

Additional tips and insights to enhance students' performance.

Chapter summaries for quick revision.

Online accessibility and downloadable resources for flexible study and revision.

Mastering Class 12 Business Chapter 7 - Directing is more than a mere academic feat; it holds practical importance. Key concepts like directing, leadership, and communication elements are vital not only for exams but also for real-world applications. NCERT Solutions ensure a holistic learning approach, encouraging students to apply knowledge in their lives. A noteworthy aspect is the time-saving nature of these solutions, eliminating the need for separate notes. Students can efficiently conduct final revisions using this comprehensive study material, simplifying the preparation process and enhancing understanding for both academic success and practical use.

Other Related Links

CBSE Class 12 Business Studies Syllabus

Revision Notes for CBSE Class 12 Business Studies

Important Questions for CBSE Class 12 Business Studies

Class 12 Business Studies Previous Year Questions Papers

FAQs on NCERT Solutions for Class 12 Business Chapter 7 - Directing

1. What is the Meaning of Motivation as an Element of Directing?

Motivation can be defined as the process of encouraging or inducing individuals to behave or work in a certain way to achieve the objectives of the organization. Motivation is an important element in directing. It aims to keep the employees happy so that the maximum input can be achieved from each. 

Different forms of motivation from employers are given in the form of promotions, appraisals, incentives, etc. All these ensure a good work environment and energizes the employees to give in more.

2. Explain Informal Communication.

It is also known as grapevine communication. The informal method of communication doesn't follow any formal way of communication. This is mainly used for conveying the social needs of an employee to his/her superior. By this way of communication, the employee can discuss his/her issues freely without following any formal authoritative line of communication. No formal hierarchical pathway is to be followed in informal communication. Employees can express themselves fully by giving this kind of flexibility in their communication to concerned authorities.

3. What is the weightage of Class 12 Business Studies Chapter 7?

Chapter 7 of Class 12 Business Studies talks about the Principles and Functions of Management Directing. There are many important concepts in this chapter that students need to learn and understand. From the examination point of view, students can expect up to 20 marks worth of questions from Chapter 7. However, this can vary every year. Questions related to all the important concepts in the chapter can be asked in the examinations.

4. Why NCERT Solutions for Class 12 Business Studies, Chapter 7 are important?

NCERT Solutions for Chapter 7 of Class 12 Business Studies, provides one of the most fundamental study materials for students to ace their examinations. With the help of NCERT Solutions for Class 12 Business Studies Chapter 7, concepts such as the element of direction, motivation theory, and informal communication help students understand the chapter better. There are many more concepts that students can learn with the help of NCERT Solutions. The solutions are for free download and are available on the Vedantu Mobile app.

5. How can I prepare the Class 12 Business Studies Chapter 7?

Revision is the best way to understand any chapter easily. Therefore, to prepare Chapter 7, students need to revise it regularly. They can solve practice papers and exercises that are available in the chapters. With the help of NCERT Solutions, students can do a concrete revision and last-minute preparation for their board examinations. Students preparing these NCERT Solutions can get outstanding scores in exams.

6. What are the elements that I need to understand in Class 12 Business Studies Chapter 7?

Class 12 Business Studies Chapter 7 Directing, is an important chapter from the examination point of view. NCERT Solutions on Vedantu helps students understand this chapter by emphasizing important topics and ensuring that the concepts are clearly explained. Some elements that students need to understand include styles of leadership, characteristics of directing, elements of communication, etc. With the help of definitions, principles, characteristics, and importance, students can easily understand the elements of the chapter.

7. What are the basics of Directing?

Directing is a part of Chapter 6 of the Class 12 Business Studies syllabus. The basic meaning of directing refers to giving instructions, counselling, guiding, leading, and motivating staff of an organization to work together to achieve certain organizational goals. This concept is explained in the NCERT Solutions with the help of definitions, principles, importance, as well as characteristics. There are activities and exercises available in the chapter with solutions, for students to understand the chapter easily.

NCERT Solutions Class 12 Business Studies

Cbse study materials, jee study materials, neet study materials.

NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12

NCERT Solutions for Class 12 Business Studies Chapter 7 Directing

September 30, 2019 by Sastry CBSE

NCERT Solutions for Class 12 Business Studies Chapter 7 Directing 

NCERT Solutions CBSE Sample Papers Business Studies Class 12 Business Studies

Short Answer Type Questions

3. What is informal communication? Ans:  The social interactions, gossips, friendly talks and non official matters which are discussed among different members of organisation who are not officially recognised is known as informal communication or we can say the communication that takes place without following the formal guidelines of communication is said to be informal communication. This type of communication establishes the personal relationship among employees. It is flexible, dynamic and no records of information communication are maintained under this Informal communication system is generally referred to as “Grapevine”.

4. What are semantic barriers of communication? Ans:  While communicating a message, misrepresentation of communication causes misunderstanding on account of use of wrong words lack of vocabulary skills, faulty translations, different interpretations is known as semantic barriers. It is concerned with the problems which arises in the process of encoding and decoding of message into words or impressions. Main causes of semantic barriers are listed below (i) Badly expressed message (ii) Symbols with different meanings (iii) Faulty translations (iv) Unclarified assumptions (v) Technical jargon (vi) Body language and gesture decoding

5. Who is a supervisor? Ans:  Supervision means instructing, guiding, monitoring motivating and observing the activities of employees from over and above. The person who is performing the work of supervision is known as supervisor. Supervisor is the link between management and subordinates. He is the person who translates the policies and plan of management to the subordinates and revert back the complaint, suggestions and feedback of subordinates to management.

6. What are the elements of directing? Ans:  Directing comprises of four elements (i) Supervision It can be understood as the process of guiding and instructing the efforts of employees. (ii) Motivation The process of encouraging the employees in order to help them in achieving the desired goals is known as motivation. (iii) Leadership It is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals. (iv) Communication It is the process of exchange of ideas, views, facts, feelings etc between or among people to create common understanding.

7. Explain the process of motivation. Ans:  Motivation process is based on how unsatisfied human need gets satisfied and results in reduction of tension. The steps of motivation process are as follows (i) Unsatisfied Need The need of an individual which is not satisfied. (ii) Tension Unsatisfied need creates tension. (iii) Drive This tension creates drive and an individual starts looking for alternatives to satisfy the need. (iv) Search Behaviour Then he starts behaving as per chosen option. (v) Satisfied Need After opting the chosen behaviour his need got satisfied. (vi) Reduction of Tension The fulfillment of need results in relieving of tension.

Long Answer Type Questions

1. Explain the principles of Directing. Ans:  Principles of Directing (i) Maximum Individual Contribution This principle emphasises that directing techniques must help every employee to contribute to his maximum potential in order to achieve the organisational goals. It should help in bringing out unused or dormant potential of an employee to improve the efficiency of the organisation, e.g., suitable and appropriate incentives should be given to encourage employees to improve their performance. (ii) Harmony of Objectives  Most of the time it happens that the organisational objectives and individual objectives move in opposite directions. The person in charge of a team of workers should guide and instruct his team in such a manner that they realise the importance of both the objectives. (iii) Unity of Command  This principle insists that a person in the organisation should receive instructions from one superior only. If instructions are received from more than one, it creates confusion, conflict and disorder in the organisation. Adherence to this principle ensures effective direction. (iv) Appropriateness of Direction Technique  According to this principle, appropriate motivational and leadership technique should be used while directing the people based on subordinate needs, capabilities, attitudes etc, e.g., combination of both monetary and non-monetary incentives should be used to elicit the right response from the employees. (v) Managerial Communication  Directing should convey clear instructions to create total understanding to subordinates. Through proper feed back the manager should ensure that subordinate understands his instructions clearly. (vi) Use of Informal Organisation  Informal groups or organisations exist within every formal organisation and every manager should spot and make use of such organisations for effective directing. (vii) Leadership  While directing the subordinates managers should exercise good leadership as it can influence the subordinates positively without causing dissatisfaction among them. (viii) Follow Through  Mere giving of an order is not sufficient. Managers should follow it up by reviewing continuously whether orders are being implemented accordingly or any problems are being faced by the subordinates.

2. Explain the qualities of a good leader. Do the qualities alone ensure leadership success? Ans:  Some of the qualities required by all leaders are (i) Physical Features It is believed that good physical features attract people. Height, weight, health, appearance determine the physical personality of an individual. (ii) Knowledge  A good leader should have required knowledge and competence. Only such person can instruct subordinates correctly and influence them. (iii) Integrity  He should be a role model to other regarding the ethics and values. A leader should possess high level of integrity and honesty. (iv) Initiative  A good leader never waits for opportunities to come to his way rather he grabs the opportunity and use it to the advantage of organisation. (v) Communication and Motivation Skills  A leader should be a good communicator. He should have the capacity to explain his ideas and make the people to understand his ideas. He should also understand the needs of people and motivate them through satisfying their needs. (vi) Self Confidence  A high level of self confidence is very important for any leader. He should not loose his confidence even in most difficult times. A person who is not himself confident will never be successful in providing confidence to his followers. (vii) Decisiveness  Leader should be able to take decisions while managing the work. Once he is convinced about a fact, he should be firm and should not change opinions frequently. (viii) Social Skills  A leader should be sociable and friendly with his colleagues and followers. He should understand people and maintain good human relations with them. Many times, the success of an organisation is attributed to the leader, but due credit is not given to the followers. Many followers related factors like their skills, knowledge, commitment, willingness to co-operate team spirit etc make a person an effective leader. It is said that followers make a person, a good leader by acceptance of leadership. Therefore both followers and leaders are playing an vital role in leadership process.

4. What are the common barriers to effective communication suggest measures to overcome them? Ans:  Common Barriers to Effective Communication Managers in all organisations face problems due to communication barriers. These barriers may prevent a communication or filter part of it or carry incorrect meaning due to which misunderstanding may be created. Therefore all managers should take some steps to overcome these barriers. There are broadly four groups of barriers (i) Semantic Barriers  Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions. Normally, such barriers result on account of use of wrong words, faulty translations, different interpretations etc. These are discussed below (a) Badly Expressed Message  Sometimes the message is not communicated correctly by the manager because of inadequate vocabulary, usage of wrong words, omission of needed words etc. (b) Symbols with Different Meaning  A word may have several meanings. Receiver has to perceive one such meaning for the word used by communicator. (c) Faulty Translations  Sometimes while translating if incorrect translation is done due to poor command over both the languages then meaning of the message changes. This leads to cause different meanings to the communications. (d) Unclarified Assumptions  Sometimes communication may have certain assumptions which are subject to different interpretations The one should always clear the meaning of what he is instructing the worker to do, so that the worker has no doubts in his mind. (e) Technical Jargon  Sometimes specialists may use technical words in their communication by which the receiver is not aware. Therefore, they may not understand the complete conversation. (f) Body Language and Gesture Decoding  The body movement and body gestures plays an important role in conveying the message. If there is no match between what is said and what is expressed in body movements, communications may be wrongly perceived.

(ii) Psychological Barriers Emotional or psychological factors acts as barrier to communications e.g., a person who is worried cannot understand what is being told. Some of the psychological barriers are (a) Premature Evaluation   Sometimes people evaluate the meaning of message before the sender completes his message. Such premature evaluation may be due to pre-conceived notions. (b) Lack of Attention  If the mind is pre-occupied then the result is non-listening of message by receiver act as a major psychological barrier. (c) Lon by Transmission and Poor Retention  When message passes through various levels, successive transmission of message results in loss of information. It happenes mostly with oral communication. Also people cannot retain the information for a long time if they are inattentive or not interested. (d) Distrust  If the communicator and communicatee do not believe on each other, they can not understand each others message in its original sense as they are not giving importance to the information exchanged.

(iii) Organisational Barriers  The factors related to organisation structure, authority relationships, rules and regulations may sometimes act as barriers to effective communication some of these barriers are (a) Organisational Policy  If the organisational policy is not supportive to free flow of communication, it may hamper effectiveness of communications. (b) Rules and Regulations  Rigid rules and cumbersome procedures may be a hurdle to communication similarly, communication through prescribed channel may result in delays. (c) Status  Status of superior may create psychological distance between him and his subordinates. The people working at higher level may not allow his subordinates to express their feelings freely. (d) Complex Organisational Structure In an organisation where there are number of managerial levels, communications gets delayed and distorted as number of filtering points are more. (e) Organisational Facilities For smooth clear and timely communication proper facilities are required like frequent meetings suggestion box, internet connection, inter-com facility. Lack or ineffectiveness of these facilities may create communication problems.

(iv) Personal Barriers The personal factors of both sender and receiver may exert influence on effective communication. Some of the personal barriers are (a) Fear of Challenge to Authority  If a superior feels that a particular communication may affect his authority negatively then he/she may not speak it out clearly and openly. (b) Lack of Confidence of Superior on his Subordinate  If superiors do not have confidence on their subordinates, they may not seek their advice or opinions. (c) Unwillingness to Communicate  Sometime subordinator may not be prepared to communicate with their superiors, if they think that it may adversely affect their interests. (d) Lack of Proper Incentives  If there is no reward for communication then employees may not be motivated to communication, e.g., if there is no reward or appreciation for a good suggestion, the subordinate may not be willing to offer useful suggestions again. Some measures which can be adopted by organisations to improve communications are (i) Clarify the Ideas Before Communication  The entire message to be communicated should be studied in depth, analysed and stated in such a manner that it is clearly conveyed to subordinates. The message should be encoded in simple language which is understandable. (ii) Communication According to the Needs of Receives  All managers should be aware of the understanding level of his/her subordinates. He should adjust his communication and select the words according to the education and understanding levels of subordinates (iii) Consult Others Before Communicating  Before communicating anything, others who are linked with it in some way or the other should be taken into confidence for developing a better plan. (iv) Beaware of Languages, Tone and Content of Message The language used for communication should be understandable to the listener. The tone of the appropriate and the matter should not be offending to anyone. (v) Convey Things of Help and Value to Listener It is always better to know the interests of the people with whom you are communicating. If the message relates directly or indirectly to such interests and needs it certainly evokes response from communicatee. (vi) Ensure Proper Feedback The receiver of communication may be encouraged to respond to communication. The communication process may be improved by the feedback received to make it more responsive. (vii) Follow up Communication There should be a regular follow up and review on the instructions given to subordinates. Such follow up measures help in removing hurdles if any in implementing the instructions. (viii) Be a Good Listener Manager should be a good listener. Patient and attentive listening solves half of the problems. Managers should also give indications of their interest in listening to their subordinates

5. Explain different financial and non-financial incentives used to motivate employees of a company. Ans:  Financial Incentives Financial incentives refer to incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. The financial incentives used in organisations are listed below (i) Pay and Allowances  For every employee, salary is the basic monetary incentive. It includes basic pay, DA and other allowances. Salary system consists of regular increments in the pay every year and enhancement of allowances from time to time. (ii) Productivity Linked Wage Incentives  Several wage incentives aim at linking payment of wages to increase in productivity at individual or group level. (iii) Profit Sharing  Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improves their performance and contribute to increase in profits. (v) Co-Partnership/Stock Option  Under these incentives schemes, employees are offered company shares at a set price which is lower than market price. The allotment of shares creates a peeling of ownership to the employees and makes them to contribute more for the growth of the organisation. (vi) Retirement Benefits  Several retirement benefits such as provident fund, pension and gratuity provide financial security to employees after their retirement. This act as an incentive when they are in service in the organisation. (vii) Perquisites In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education etc over and above the salary. These measures help to provide motivation to the employees/managers. Non-financial Incentives Incentives which help in fulfilling our psychological, emotional and social needs are known as non-financial incentives. Some of the non-financial incentives are (i) Status  Status means ranking or high positions in the organisation. Whatever power position prestige an employee enjoys in the organisation are indicated by his status. Psychological, social and esteem needs of an individual are satisfied by status given to their job. (ii) Organisational Climate  This indicates the characteristics which describe an organisation and distinguish one from the other. Individual autonomy, reward orientation, consideration to employees, etc are some of the positive features of an organisation. If managers try and include more of these in an organisation helps to develop better organisational climate. (iii) Career Advancement Opportunity  Managers should provide opportunity to employees to improve their skills and be promoted to the higher level jobs appropriate skill development programmes and sound promotion policy will help employees to achieve promotions. Promotions have always worked as tonic and encourages employees to exhibit improved performance. (iv) J ob Enrichment  Job enrichment is concerned with designing jobs that include greater variety of work contentment, require higher level of knowledge and skill, give workers more autonomy and responsibility and provide opportunity for personal growth and a meaningful work experience. (v) Employee Recognition Programmes  Recognition means acknowledgement with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at higher level, e.g., (a) Congratulate the employee (b) Displaying names of star performers (c) Installing awards (d) Distributing mementos (vi) Job Security Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal. There is only one problem with this incentive i.e., when people feel that they are not likely to lose their jobs, they may become relaxed. (vii) Employee Participation It means involving employees in decision making of the issues related to them. In many companies, these programmes are in practice in the form of joint management committees, work committees canteen committees etc. (viii) Employee Empowerment Empowerment means giving more autonomy and powers to subordinates. Empowerment makes people feel that their jobs are important. This feeling contributes positively to the use of skills and talents in the job performance.

Application Type Questions

1 . The workers always try to show their inability when any new work is given to them. They are always unwilling to take up any kind of work. Due to sudden rise in demand a firm wants to meet excess orders. The supervisor is finding it difficult to cope up with the situation. Suggest ways for the supervisor to handle the problem. Ans:  The supervisor can take help of monetary incentives to motivate the workers. Their wages can be linked to productivity, they can earn more incentives besides wages by producing goods. Supervisor should also play the role of a good leader and encourage them to accept any kind of work as it would lead to increase exposure to the industry and better job prospects.

2 . Workers of a factory often come to the production manager with the grievances. The production manager finds himself overburdened with so many tasks advise a way to relieve the production managers. Ans:  To overcome the problem, the production manager should take the following measures (i) Arrange necessary training programmes (ii) Prepare a work schedule. (iii) Recommend the cases of the workers for promotion, rewards, transfer, punishment etc. (iv) Proper availability of materials, machines and tools for the workers. (v) Delegate sum of his authorities.

3 . In an organisation employees always feel they are under stress. They take last initiative and fear to express their problems before the manager. What do you think is wrong with the manager? Ans:  The manager should adopt more friendly approach towards the workers. The manager should encourage a system of two-way communication, provide an outlet to workers to share their feelings, suggestions and problems.

4 . In an organisation all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone taking to each other and thus resulting in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out. What system do you think the manager should adopt to improve communication? Ans:  Excess of everything is bad. More use of informal communication is resulting in this problem. A proper chain of command should be established. Only the necessary information should be passed through chain of command The employees will not be allowed to communicate at all levels. This will save time and more discipline.

Case Problem

Y limited is a bank functioning in India. It is planning to diversify into increase business. Lately, the Government of India has allowed the private sector to gain entry in the increase business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other compnies have been given licenses to start insurance business under the regualtion of Insurance Regulatory and Development Authority’. Y limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.

1. Identify how the company can supervise its employees and agents effectively. What benefits will the company derive from effective supervision? Ans:  The company can supervise its employees and agents by taking the following steps (i) Training programmes should be organised. (ii) Make them understand the various policies so that they can convince their clients. (iii) Establishing targets for them and also monetary incentives. (iv) Regularised system for submission of periodical reports of their performance. The benefits of the above steps will be (i) Trained personnel will give better performance. They can improve upon their skills. (ii) Knowledge of the products of the insurance company will ensure better satisfaction for the clients. (iii) They will compete to give better performance and earn higher incentives. (iv) It will help in identifying the areas where workers and agents need specialised training programmes.

2. What financial and non financial incentives can the company use for employees and agents separately to motivate them. What benefits company will get from them? Ans:  Incentives for Employees (i) Financial (a) Productivity linked wage incentive (b) Bonus (c) Co-partnership (d) Employee stock option (ii) Non-financial (a) Job-security (b) Status (c) Employee empowerment (d) Employee recognition programme Incentives for Agents

(i) Financial (a) Commission (b) Bonus like paid vacation (ii) Non-financial Incentive (a) Cordial relationship (b) Career advancement opportunity (c) Job enrichment (d) Recognition programmes like certificate of merit etc. (e) Company achieves the motivation among the employees and they will contribute more in achieving targets.

3. How can the company ensure that higher order needs z. e., the esteem and self actualisation needs are met? Ans:  The higher order needs can be satisfied through (i) Career advancement opportunity (ii) Assignment of challenging job (iii) Perquisites (iv) Participation in management decisions

4 . Identify the qualities of leadership in this line of business that the company manager must possess to motivate employees and agents. Ans:  The qualites of leaders which the manager of the insurance company must possess are (i) Intelligence (ii) Good communication skills (iii) Self confidence, integrity and honesty (iv) Good listener (v) Pleasing personality

6. How can informal communication help to supplement formal communication model given by you in answer to question? Ans:  Informal communication takes place outside the official channels of communication. It fills the gaps that might exist in the formal communication. Merits of Informal communication are (i) It helps the members to discuss the matters which cannot be discussed at the official level. (ii) It is a way of knowing the reactions and opinions of the people about a change. (iii) It helps in building team spirit. (iv) The information flows at a faster speed.

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