We have given these Business Studies Class 12 Important Questions Chapter 7 Directing to solve different types of questions in the exam. Go through these Planning Class 12 Important Questions and Answers & Previous Year Questions to score good marks in the board examination.

Important Questions of Directing Class 12 Business Studies Chapter 7

Question 1.
State two characteristics of ‘Directing’. (All India 2019)
Answer:
Characteristics of directing are:

  • It takes place at every level.
  • It is a continuous process.

Question 2.
Kamal is working as a gang boss in the assembly unit of ‘Sokia Ltd.’, a laptop manufacturing company. He supervises the work of ten trained workers who perform the various activities related to the assembly of the laptops. One day when he was supervision the work of his workers, he told Ashok, a worker that his work could be improved. Ashok interpreted the comments of Kamal as that his work was not good.
Identify the type of barrier to effective communication in this case. (All India 2019)
Answer:
The type of barrier highlighted here is psychological barrier.

Question 3.
Give the meaning of ‘Supervision’ as an element of directing. (All India 2017)
Answer:
As an element of directing supervision means instructing, guiding and monitoring the subordinates to ensure that they perform their jobs in accordance with the plans and instructions.

Question 4.
Give the meaning of “Motivation’ as an element of directing. (Delhi 2017)
Answer:
Motivation is the process of stimulating people to act voluntarily to accomplish desired goals.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 5.
Explain in one sentence how directing initiates action in management. (Compartment 2014; Delhi 2011)
Or
How does directing initiate action? State. (Comportment 2014)
Or
Explain in one sentence how direction is an executive function of management. (All India 2011)
Answer:
Directing initiates action by ordering employees to attain the desired goals of an organisation.

Question 6.
Give any two examples of employee recognition as a non-financial incentive. (Delhi [c] 2014)
Answer:
Two examples of employee recognition are:

  • Installing awards or certificate for best performance.
  • Displaying on the notice board or in company newsletter about the achievement of employee.

Question 7.
Give any two characteristics of organisational climate that influence the behaviour of individuals and act as a non-financial incentive. (All India 2014)
Answer:
Characteristics of organisational climate are:

  • Reward orientation.
  • Individual autonomy.

Question 8.
List any two non-financial incentives. (Comportment 2014)
Answer:
Non-financial incentives include:

  • Status
  • Career advancement

Question 9.
Why is motivation called a complex process? (Comportment 2014; Delhi 2013)
Answer:
Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions and reactions. Different people
have to be motivated differently as any one type of motivation cannot have a uniform effect on all the members.

Question 10.
What is meant by decoding as an element of communication? All Indio 2014
Answer:
Decoding is the process of converting encoded symbols of the sender.

Question 11.
What is meant by feedback in the concept of communication? (Foreign 2014)
Answer:
The action of the receiver, which reciprocates to the sender of the message, that he has understood the message in its true sense is called feedback.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 12.
What is meant by encoding as an element of communication? (Delhi 2014)
Answer:
The sender translates the message into words, symbols, gestures or other symbols, which he feels, will make the receiver understand the message. This is known as encoding of message.

Question 13.
At which level of management directing takes place? (Delhi 2013)
Answer:
Directing takes place at all levels of management, wherever superior-subordinate relationship exists.

Question 14.
Define directing as a function of management. (Comportment 2013)
Answer:
Directing is the process of instructing, guiding and inspiring people in the organisation to achieve its objectives.

Question 15.
What is meant by motivation? (All India 2013)
Answer:
Motivation is the process of stimulating people to act voluntarily to accomplish desired goals.

Question 16.
Give the meaning of ‘Autocratic’ style of ‘leadership’. (Comportment 2013)
Answer:
Under this style, all decision-making power is vested in the leader and he exercises complete control over his subordinates.

Question 17.
What is meant by ‘Democratic style’ of leadership? (Comportment 2013; All India 2013)
Answer:
A democratic leader provides freedom of thinking. He listens to the suggestions, grievances and opinions of the subordinates.

Question 18.
Define supervision. (Comportment 2013; All India 2012)
Answer:
Supervision means instructing, guiding and monitoring the subordinates to ensure that they perform their jobs in accordance with the plans and instructions.

Question 19.
Name the term used in management for influencing people to strive willingly for group objectives. (All India 2012)
Answer:
Leadership influences people to strive willingly for group objectives.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 20.
Define formal communication. (Delhi 2012)
Answer:
Formal communication refers to the official communication which takes place through the chain of command.

Question 21.
What is meant by informal communication? (Delhi 2012)
Answer:
Informal communication is the communication that takes place without following the formal lines of communication.

Question 22.
Define communication. (All India 2012)
Answer:
Communication is the process of exchange of ideas and views among two or more persons to create common understanding.

According to Newman, Summer and Warren, “Communication is an exchange of facts, ideas, opinions or emotions between two or more persons.”

Question 23.
Name the term used in management which stimulates people to take up work voluntarily. (All India 2011)
Answer:
‘Motivation’ stimulates people to take up work voluntarily.

Question 24.
Explain ‘Career advancement opportunity’ and ‘Job security” as non-financial incentive. (All India 2019)
Answer:
Career advantage opportunity:
Most of the employees want to explore ‘n their career. An organisation can motivate its employees by providing them opportunities for in-service training and promotion. In other words, if the employees arc provided the opportunity for their advancement and growth and to develop their potentiality, they feel very much satisfied and become more committed towards the organisation goals.

Job security:
Job security Generally, workers prefer security of job. It is an assurance by the cmployer that the worker will continuc in the employment. It eliminates uncertainty about the earnings and job and have a positive impact on the efficiency.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 25.
Explain ‘Job enrichment’ and ‘Employee participation’ as non-financial incentives. How do they motivate employees? (Delhi 2019)
Answer:
Job enrichment Assignment of challenging:
Jobs is a significant non-financial incentive. Assignment of challenging work to subordinates provide opportunities for maximum development and helps them to reach upto the point of seif-realisation.

Participation In management’s decisions The active participation of workers and their representatives in decision-making helps in securing cooperation and commitment of workers towards organisational goals.

Question 26.
Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people working under her. She encouraged them to set their own objectives and take decisions. She respects their opinions and supports them, so that they can perform their duties and accomplish organisational objectives. To manage and exercise effective control she uses forces within the group.
As an intelligent manager, at times, she also makes use of positive aspects of informal communication. This way, she is able to unify diverse interests and ensure that targets are met.
(a) There are many theories and styles of influencing people’s behaviour. Identify the style used by Sandhya which is based on the use of authority.

(b) State two positive aspects of the communication discussed above, which Sandhya is using as an intelligent manager. (CBSE 2018 )
Answer:
(a) The style of leadership used by Sandhya is ‘Democratic leadership’.
A democratic leader takes decisions after consultation and encourages the participation of subordinates. This leadership style is more common and popular, as it ensures achievement of goals, when they are set with the acceptance of the subordinates themselves.

A democratic leader provides freedom of thinking and listens to suggestions, grievances and opinions of the subordinates. This improves the attitude of the employees towards their jobs and the organisation, thereby increasing their morale.

This style is of mutual benefit which allows subordinates to become part of team and help leaders (seniors) to make better decisions.
As shown in the figure, the leader involves subordinates in decision-making.
Directing Class 12 Important Questions and Answers Business Studies Chapter 7 -1

(b) Two positive effects of informal communication are:

  • Prescribed lines of communication are not followed. Thus, it facilitates quick feedback and spreads information faster.
  • It provides a sense of belongingness and gives due respect to social and psychological needs.

Question 27.
Lakhan, an expert in the area of Financial Management, sent an email to his subordinate Thomas about a new project for a client in France. Though, the mail was in English, a language known to Thomas, he was not able to understand the actual meaning of many words used in the mail. He was also not a specialist in the field of Financial Management. Not only this some portions of the mail were translated from French to English in such a manner that many mistakes crept in, causing different meaning to the message.
(a) Identify two specific barriers to communication in Lakhan’s email.
(b) State any two measures which can be taken by Lakhan to overcome the barriers identified in part (a) above to improve in future, the effectiveness of his Communication-Compartment 2018
Answer:
(a) Two barriers to communication in Lakhan’s e-mail were:

  • Technical Jargon
  • Faulty translations

(b) Measures to overcome these barriers are:

  • Be aware of languages, tone and content of message.
  • Communicate according to the needs of receiver.

Question 28.
Explain briefly any three semantic barriers to communication. (All India 2017)
Or
Explain any five semantic barriers to communication. (Comportment 2015)
Or
Describe any four semantic barriers of communication. (Delhi 2011, 2011)
Answer:
Three semantic barriers to communication are as follow: (any three)
(i) Badly expressed message Sometimes due to lack of vocabulary, manager may use wrong words, omission of needed words, etc. Due to this, the manager may fail to convey the desired meaning to this subordinates.

(ii) Words with different meanings Sometimes a word may have different meanings, Receiver may understand the other meaning, e.g. price, prize, principle, principal right, write, etc.

(iii) Faulty translations Sometimes the workers do not understand the language which is used by manager. Some workers get it translated. If the translator is not efficient, he may make mistakes in translation. Due to wrong translation, there may be transfer of wrong message.

(iv) Unclarified assumptions Sometimes, the worker may misinterpret the assumptions, e.g. boss may instruct the subordinate to take care of goods. He may mean that take care of quality of good whereas, workers may understand that he is instructing to keep the goods safely.

(v) Technical Jargon Specialists often use technical language, which common man does not understand who are not specialists in the concerned field. Patients often do not understand many words used by doctors.

Question 29.
Explain briefly any three organisational barriers to communication. (All India 2017; Foreign 2014)
Or
Describe any four organisational barriers of effective communication. (All India 2011)
Answer:
The three organisational barriers to communication are: (any three)
(i) Organisational policy If organisational policy does not support free flow of information, it may result in barriers, e.g. in centralised organisation, most of the information remains at top level only. People at lower level may not be able to communicate freely in centralised organisation.

(ii) Status Sometimes, the people working at higher level do not believe in the information supplied by lower level employees as they are apprehensive about their ability.

(iii) Rules and regulations Rigid rules and regulations may also create barriers as following rules may lead to red tapism, delay of action and delay in free flow of communication.

(iv) Complex organisation When the information passes through various levels then it can lead to screening or filtering of information at different levels, e.g. while giving the feedback, the subordinates filter all their negative points and highlight only their positive side.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 30.
Explain briefly any three personal barriers to communication. (All India 2017; Foreign 2014)
Or
Explain the organisational barriers to communication. (Comportment 2015)
Or
Explain any four personal barriers of effective communication. (All India 2011)
Answer:
The three personal barriers to communication are: (any three)
(i) Lack of confidence of superior in his subordinates If superiors have no confidence and trust in their subordinates, then they pay no attention to their advice, opinion or suggestions.

(ii) Lack of incentives If there is no incentive for communicating new ideas, then subordinates may not take initiatives to give suggestions, e.g. if there is not reward given for giving some good suggestion, then employees will take no initiative to give good suggestions.

(iii) Fear of authority Some superiors may modify feedback going from lower-level employees. This may be done especially if the feedback is a complaint directed against the superior. The dishonest superior may block complains reaching to senior management in order to prevent challenge to his authority. In order words, sometimes superiors conceal and hide information if they have fear of losing their authority over the subordinates.

(iv) Unwillingness to communicate The personal characteristic of an individual also influences the free flow of communication. Sometimes, the superiors may not be prepared to communicate with the subordinates. These superiors may have selfish intentions and may prevent any negative information that threatens their reputation.

Question 31.
Explain briefly any three functions performed by a supervisor. (Delhi 2017)
Or
Explain any three functions performed by a supervisor that are vital to any organisation. (All India 2014)
Answer:
The three functions performed by a supervisor are as follows: (any three)
(i) Acts as a link between workers and management Supervisor conveys management policies and ideas to the workers on one hand and workers’ problem to the management on the other. He plays a crucial role of avoiding misunderstanding and conflicts between management and workers.
Directing Class 12 Important Questions and Answers Business Studies Chapter 7 -2
(ii) Maintains group unity Supervisor directly overlooks the workers and this is a key link in maintaining harmony and unity among workers by sorting out their internal differences.

(iii) Ensures performance of work He takes the responsibility for task achievement according to the targets and motivates his workers effectively.

Question 32.
Explain any three points that highlight the importance of directing function of management. (Delhi 2017)
Or
How directing helps in efficient and effective functioning of the organisation? Explain by giving any three points. (Delhi 2014)
Answer:
There are some points that highlight the importance of directing function of management (any three):
(i) Initiates action: Directing helps to initiate action by people in the organisation towards the attainment of desired objectives, e.g. If a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help workers to achieve work targets given to them.

(ii) Integrates employees efforts: Directing integrates employees efforts in the organisation in such a way that every individual effort contributes to the attainment of organisational objectives. Thus, it ensures that the individuals work for organisational goals.

(iii) Improves efficiency: Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work upto their potential.

(iv) Brings balance and stability in the organisation: Effective directing helps to bring stability and balance in the organisation since, it fosters cooperation and commitment among the people and helps to achieve balance among various group activities and the departments.

(v) Facilitates changes: Changes in an organisation are usually resisted by employees. Through effective direction, a manager can explain the purpose and benefit of such changes to the employees.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 33.
Explain briefly any three measures to overcome the communication barriers. (Delhi 2017)
Or
The organisations which are keen on developing.effective communication, should adopt suitable measures to overcome the barriers to communication and improve communication effectiveness. Suggest and explain any such five measures. (Comportment 2015)
Or
Explain any five points of importance of directing function of management. (Comportment 2015)
Or
Barriers to effective communication exist in all organisations to a greater or lesser degree. State any six measures to overcome these barriers. (Delhi 2013)
Or
Effective communication should adopt suitable measures to overcome the barriers of communication. ‘Explain any four such measures. (All India 2013)
Answer:
The three measures to overcome the communication barriers are: (any three)
1. Be aware of languages, tone and content of message Language, tone and content of message should be so adjusted according to the situation that it is easily understood by the receiver and stimulates them.

2. Convey things of help and value to listeners To get good response from the subordinates, it should be ensured that the message relates to their interests.

3. Ensure feedback For success of communication, response of the listeners should be encouraged by the manager.

4. Communicate for present as well as future For communication to be successful, managers should incorporate existing commitments as well as future goals of the organisation.

5. Follow-up communication Sometimes it is difficult to implement instructions in its totality by the subordinates. To overcome this, regular follow-up should be done by managers.

6. Be a good listener Lot of problems can be solved due to attentive listening quality of the manager.

Question 34.
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 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.
(i) Identify any two communication barriers because of which Bikmac Enterprises was not able to achieve its target.
(ii) State one more barrier each of the types identified in (i) above. (Delhi 2016)
Answer:
(i) Two communication barriers because of which Bikmac Enterprises was not able to achieve its target are:

  • Organisational barrier in the form of Organisational policy, as it is indicated that it was the policy of the company that all decisions were taken by Mr Shubhendu Bose.
  • Psychological barrier in the form of ‘Distrust’, as it is indicated that Mr Bose did not trust his employees.

(ii) Organisational barrier-complexity in organisation structure. Psychological barrier-premature evaluation.

Question 35.
Mr Fernandes is the owner of Unibie Enterprises, carrying on the business of manufacturing 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 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.
(i) Identify any two communication barriers because of which ‘Unibie Enterprise’ was not able to achieve its target.
(ii) State one more barrier each of the types identified in part (i) above. (All India 2016)
Answer:
(i) The two communication barriers because of which Unibie Enterprises was not able to achieve its target, were:
(a) Organisational barrier In the form of ‘Organisational Policy’, as it is indicated that it was the policy of the company that all the decisions were taken by Mr Fernandes.
(b) Personal barrier In the form of ‘Lack of confidence of superior on his subordinates’, as it is indicated that Mr Fernandes did not have confidence in the competency of his employees’.

(ii) Organisational barrier: Complexity in organisation structure.
Personal barrier: Fear of challenge to authority.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 36.
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 goes on smoothly and there was no interruption in production. He was a good leader who would give orders only after consulting his subordinates and work out the policies with the acceptance of the group.
Identify and describe the leadership style being adopted by Pramod. (Delhi 2015)
Answer:
Promod is a Democratic leader Under this style, leader consults his subordinates in decision-making process and works out policies with the acceptance of the group. He encourages them to give suggestions in setting goals and implementing decisions. It is group centered leadership.

e.g. Mr Ratan realised that due to the absence of Mr Manan, the targets will not be met, so he discusses with his staff about meeting the deadline. Every body decided to do overtime and completed the task. Here Mr Ratan is behaving as a democratic leader.

Question 37.
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.
(i) Identify the communication barrier discussed above.
(ii) State the category of this communication barrier.
(iii) Explain any other communication barrier of the same category. (All India 2015)
Answer:
(i) Lack of proper incentives.
(ii) Personal barrier to communication.
(iii) Fear of challenge to the authority If a superior perceives that a particular communication may adversely affect his/her authority, he/she may with held or suppress such communication.

Question 38.
Neeraj, a sales representative of ‘Omida Ltd’ has changed seven jobs in the last one year. He is a hard working person but is not able to finalise deals with the customers due to his inadequate vocabulary and omission of needed words. Sometimes, he uses wrong words because of which intended meaning is not conveyed.
All this created a misunderstanding between him and his clients.
(i) Identify the communication barrier discussed above.
(ii) State the category of this communication harrier.
(iii) Explain any other communication barrier of the same category. (Delhi 2015)
Answer:
(i) Badly expressed message.
(ii) Semantic barrier of communication.
(iii) Another type of semantic barriers is:

Faulty translations When the translator is not proficient in both the languages involved in translations, the meaning of the message may get distorted.

Question 39.
Huma is working in a company on a permanent basis. As per the job agreement, she had to work for 8 hours a day and was free to work overtime. Huma worked overtime, due to which she fell ill and had to take leave from her work. No one showed concern and enquired about her health.
She realised that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.
(i) By quoting the lines from the above para, identify the needs of Huma which she is able to fulfill.
(ii) Also explain two other needs of Huma followed by the above needs, which still remained to be satisfied. (All India 2014)
Answer:
(i) ‘No one showed concern and enquired about her health’. The quoted line depicts that her affiliation/belongingness needs are not fulfilled.

(ii) The two other needs which still remain to be satisfied according to Maslows’ Need Hierarchy Theory are:

  • Esteem needs These include fulfilment of needs such as self-respect, autonomy, status, recognition and attention.
  • Self-actualisation needs It is the highest level of need in the need hierarchy theory. These needs include growth, self-fulfillment and achievement of goals.

Question 40.
Kavya is working in a company on permanent basis. As per the job agreement, she had to work for 8 hours a day and was free to work overtime. Kavya worked overtime. But even after working for long hours and putting in her best efforts, no recognition was given to her by her boss. Due to overtime, she fell ill and had to take leave from her work. No one showed concern and enquired about her health. She realised that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.
(i) Identify and explain the needs of Kavya discussed in the above para, by quoting the fines.
(ii) Also explain two other needs of Kavya followed by the above needs, which still remained to be satisfied. (Foreign 2014)
Answer:
(i) ‘No one showed concern and enquired about her health’. The quoted line depicts that her affiliation/belongingness needs are not fulfilled.

(ii) The two other needs which still remain to be satisfied according to Maslows’ Need Hierarchy Theory are:
(a) Esteem needs These include fulfilment of needs such as self-respect, autonomy, status, recognition and attention.
(b) Self-actualisation needs It is the highest level of need in the need hierarchy theory. These needs include growth, self-fulfillment and achievement of goals.

Question 41.
Explain any three assumptions of Maslow’s Need Hierarchy Theory. (All India 2012)
Answer:
Assumptions of Maslow’s Need Hierarchy Theory are:

  • People’s behaviour is affected by their needs.
  • There are many needs of people and their order or priority can be made.
  • Motivation ends with the satisfaction of needs.

After that, the next higher need serves as a motivator.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 42.
Explain any three qualities of a good leader. Delhi 2012: All Indio 2011
Answer:
Qualities of a good leader are as follows:

  1. Knowledge A good leader should have required knowledge and competence. Only such person can instruct subordinates correctly and influence them.
  2. Initiative A leader should have courage and ability to take initiative. He should not wait for opportunities to come to his way, rather he should grab the opportunities and use it to the advantage of organisation.
  3. Integrity A leader should possess high level of integrity and honesty. He should be a role model to others regarding the ethics and values.

Question 43.
What is meant by non-financial incentives? List any two non-financial incentives. (Delhi 2010)
Answer:
Non-mdhetary or non-financial incentives are those incentives which do not involve monetary benefits. These incentives are based on factors which gives a feeling of satisfaction of doing or accomplishing something worth-while to the workers.

The two non-financial incentives are:
(i) Participation in management decisions: The active participation of workers and their representatives in decision-making helps in securing cooperation and commitment of workers towards organisational goals.

(ii) Job security: Generally, workers prefer security of job. It is an assurance by the employer that the worker will continue in the employment.

Question 44.
What is meant by financial incentives? State any two financial incentives. (All India 2011)
Answer:
Financial incentives refer to incentives which are in direct monetary form and serves to motivate people for better performance.

Two financial incentives are:

  • Pay and allowances Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowances and other allowances.
  • Productivity linked wage incentives Some incentives plans link wages with productivity . of an individual or that of the group to motivate him/them to produce more.

Question 45.
Explain the concept of motivation and leadership. (All India 2011; Delhi 2011)
Answer:
Motivation It is the process of stimulating people to act or to accomplish desired goals. It is an internal feeling. According to Berelson and Steiner, ‘Motivation is an inner state that energises, activates and that directs or channels behaviour towards goals’.

Motivation is something that motivates a person into action and continues him in the course of action enthusiastically. It determines the behaviour of a person to a great extent. Leadership It is the process of influencing the behaviour of other people so that they work willingly for the attainment of goals in a given situation. According to Koontz and O’Donnell, ‘Leadership is an art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals’. Leadership is a psychological process of influencing followers or subordinates and providing guidance to them.

Question 46.
Kunal joined as a shop level manager in the Production department of a textile company in the year 2005. Because of his good work, he became the Deputy Production Manager of he company in the year 2010. He had status and prestige and was well-respected by all in the company. On 1st March, 2019, he was promoted as the General Manager of the company. Kunal was very happy on his promotion as now he had become what he was capable of becoming. As a good manager, Kunal decided to motivate his subordinates, after understanding the Need Hierarchy theory which is based on various assumptions. He realised that people’s behaviour is based on their needs and the manager can influence the behaviour of his employees by satisfying their needs.
(a) One of the assumptions of Need Hierarchy theory is stated in the above paragraph. State the other three assumptions of this theory.
(b) State the needs of Kunal which are 3. being satisfied through promotion. (All Indio 2019)
Answer:
(a) Other assumptions of Maslow’s Need Hierarchy Theory is:

  • People’s needs are hierarchical in order. They start from basic physiological needs and reach to high level needs.
  • A satisfied need can no longer motivate a person, only next higher level need can motivate a person.
  • A person moves to the next higher level need only when the lower level need is satisfied.

(b) Since, he has got prestige, respect and recognition through the promotion, h is esteem needs are getting fulfilled.

Question 47.
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hosiptals, decided to reward the good work of the doctors of his organisation. For this he instituted two running trophies. A ‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise the outstanding work done by the doctors in saving the girl child.

The CEO also wanted to improve the health services in rural areas all over the country. He decided that all doctors must work in rural areas for atleast six months. He also decided that the paramedical staff should be employed locally.
(a) Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running trophies.
(b) Which need of the doctors will be satisfied through the incentive identified in part (a) (State? CBSE 2018)
Answer:
(a) The incentive provided by ‘Goodcare Hospitals’ is ‘Employee Recognition Prpgramme’ which is a non-financial incentive to motivate the employees.
(b) Social and esteem needs are satisfied by using the incentive.

Question 48.
‘AS Environs Ltd’ is dealing in Environment-Consultancy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time consuming, but also at times forced the female team members to travel alone.
As a result, the subordinates were not acting in a desired manner to achieve 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. (All India 2016)

Or

Alfa Ltd was dealing in renewable energy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at time forced female team members to travel alone.

As a result, the subordinates were not acting in a desired manner to achieve organisational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that all the members including the leader would travel together in future and would usefully utilise the travelling time in discussion with the subordinates about presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader.
State the features of the element of the function of management used by the CEO. (Delhi 2016)
Answer:
The function of management being performed by the CEO is ‘Direction’ and the element of ‘Direction’ used by him is ‘Motivation’.
Motivation means incitement or inducement to act or move. In the context of an organisation, it means the process of making subordinates to act in a desired manner to achieve certain organisational goals. (1)

The distinct features of motivation are (any three):
(i) Motivation is a phychological: phenomenon It is a personal and internal feeling like an urge, drives, desires and aspirations of human being, which influence human behaviour.
(ii) Goal directed behaviour Motivation inspires an employee to achieve goals. Thus, it encourages goal directed behaviour.
(iii) Motivation may be positive or negative Positive motivation means inspiring people to work better by providing incentives and negative motivation means forcing people to work by threatening or punishment.
(iv) Motivation is a complex process As the individuals are heterogeneous in their expectations, perceptions and reactions.

Question 49.
Smita had been working as an assistant manager with ‘Johnson Enterprises’ for the last ten years. She was very popular amongst her colleagues because of her commitment and dedication towards the work. When the manager senior to her retired, all her colleagues thought that now Smita would be promoted. But to everyone’s surprise, the vacant post was filled by an outsider, Mrs Rita. Smita felt demoralised and her performance started declining. She would abstain herself often and could not meet her targets.

Mrs Rita was a good leader, who would not only instruct her subordinates but would also guide and inspire them. She noticed Smita’s behaviour and felt that her performance could be improved. She started involving Smita in decision-making issues related to the organisation and made her a part of high level joint-management committee. Smita was now punctual in office and her performance started improving.
(i) Identify the function of management being performed by Rita.
(ii) Name the element of the above function of management which helped Rita to improve Smita’s behaviour.
(iii) State any three features of the element identified in (ii) above. Delhi 2015
Or
Anjali had been working with ‘Tata Enterprises’ for the last ten years. She was famous for her dedication towards the work. When the Manager senior to her retired, all her colleagues thought that now Anjali would be promoted. But to everyone’s surprise the vacant post was filled by an outsider “Ms Monika’. Anjali felt demoralised and her performance started declining. She would absent herself often and could not meet her targets.

Miss Monika was a good leader who would not only instruct her subordinates, but also guide and inspire them. She noticed Anjali’s behaviour and felt that her performance could be improved.

She started involving Anjali in decision-making issues related to the organisation and made her a part of a high-level joint management committee. Anjali was now punctual to office and her performance started improving.
(i) Identify the function of management being performed by Monika.
(ii) Name the element of the above function of management which helped Monika to improve Anjali’s behaviour.
(iii) State any three features of the element identified in (ii) above. (All India 2015)
Answer:
(i) Directing
(ii) Motivation Mrs Rita used non-finandal incentives to motivate Smita to improve her performance.

(iii) Three features of motivation are:

  1. Motivation is a psychological phenomenon It is a personal and internal feeling like an urge, drives, desires and aspirations of human being, which influence human behaviour.
  2. Goal directed behaviour Motivation Ans. inspires an employee to achieve goals. Thus, it encourages goal directed behaviour.
  3. Motivation may be positive or negative Positive motivation means inspiring people to work better by providing incentives and negative motivation means forcing people to work by threatening or punishment.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 50.
Neha was a regional sales manager in ‘Good Look Garments Ltd. ‘for ten years. On the retirement of the marketing manager Neha applied for the same post as she was extremely ambitious and had dedicated all her energies to obtain the post of marketing manager. However, the top management of the company decided to fill this post by selecting a better person from outside the company.
Because of this Neha was heart-broken and her performance declined.
When the new marketing manager joined, one of her major problems was how to motivate and inspire Neha to her former level of performance?
Suggest any three non-financial incentives that the new marketing manager may use to motivate Neha. (Comportment 2015)
Or
Sultan was a Regional Manager in ‘Homely Products Ltd. ‘for the last eight years. On the retirement of the Marketing Manager, Sultan applied for the same post because he was extremely ambitious and had dedicated all his energies to obtain the post of marketing manager. However, the top management Am. decided to fill the position by selecting a better person from outside the company.

Because of this Sultan was heart-broken and his performance declined.
When the new Marketing Manager joined, one of her major problems was how to motivate and inspire Sultan to his former level of performance.
Suggest any three non-financial benefits that the new marketing manager may use to motivate Sultan. (Comportment 2015)
Answer:
Various types of non-financial incentives are as follows: (any three)
(i) Job security:
Generally, workers prefer security of job. It is an assurance by the employer that the worker will continue in the employment. It eliminates uncertainty about the earnings and job and have a positive impact on the efficiency.

(ii) Participation in management’s decisions:
The active participation of workers and their representatives in decision-making helps in securing cooperation and commitment of workers towards organisational goals.

(iii) Employee recognition:
It is one of the most important motivator. It helps in improving the attitudes of employees and at the same time, motivates them to put in their best efforts. Efficiency and innovations of the workers should be recognised and praised. Recognition can be given by appreciating the work, installing awards and certificates, display of achievements on the notice board, etc.

(iv) Job enrichment:
Assignment of challenging Jobs is a significant non-finandal incentive. Assignment of challenging work to subordinates provide opportunities for maximum development and helps them to reach upto the point of self-realisation.

(v) Status:
In the organisation context, status means ranking of positions in the organisation. The status of a person is reflected in his authority, responsibility, pre-requisites and recognition. Psychological, social and esteem needs of an individual are satisfied by status.

Question 51.
Define motivation. How does it improve efficiency and facilitate the accomplishment of organisational goals? (Delhi 2012)
Answer:
It is the process of stimulating people to act voluntarily to accomplish desired goals.
In other words, motivation refers to the way a person is enthused at work to intensify his willingness and use his potential for the achievement of organisational objectives. It is through motivation that managers attempt to . inspire the employees to work for the organisation.
According to William G Scott, “Motivation means a process of stimulating people to action to accomplish desired goals”.

Motivation improves efficiency The level of performance of employees depends not only on individual abilities but also his willingness to achieve at high level of performance. Motivation induces employees to work better and to use their full potential. Thus, motivation helps in increasing productivity and overall efficiency.

Motivation facilitates the accomplishment of organisational goals Management can achieve the goals effectively by motivating the subordinates. The motivated employees contribute to the fulfilment of the assigned tasks with their best efforts. In the existence of an effective system of motivation, the worker cooperate voluntarily with the management towards the accomplishment of organisational goals.

Question 52.
Mukesh is working under his superior Neeraj. He always communicates useful and suggestions to his superior regardin reduction of cost improvement in the product, etc. Neeraj implement his suggestion and has always found favourable results, but he never appreciates Rakesh for his suggastions. 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. (Compartment 2012)
Answer:
Lack of proper incentive under the head personal harpers of communication is being discussed here.

The three personal barriers to communication are: (any three)
(i) Lack of confidence of superior: In his subordinates If superiors have no confidence and trust in their subordinates, then they pay no attention to their advice, opinion or suggestions.

(ii) Lack of Incentives:
If there is no incentive for communicating new ideas, then subordinates may not take initiatives to give suggestions, e.g. if there is not reward given for giving some good suggestion, then employees will take no initiative to give good suggestions.

(iii) Fear of authority:
Some superiors may modify feedback going from lower-level mployees. This may be done especially if the feedback is a complaint directed against the superior. The dishonest superior may block complains reaching to senior management in order to prevent challenge to his authority. In order words, sometimes superiors conceal and hide information if they have fear of losing their authority over the subordinates.

(iv) Unwillingness to communicate:
The personal characteristic of an individual also influences the free flow of communication. Sometimes, the superiors may not be prepared to communicate with the subordinates. These superiors may have selfish intentions and may prevent any negative information that threatens their reputation.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 53.
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 a communication barrier. Explain three other factors of the same group of communication barriers. (Compartment 2012)
Answer:
Psychological factor: Psychological barrier acts as a communication barrier here.
Three other psychological barriers to communication are:
(i) Premature evaluation Communication is likely to fail, if the receiver evaluates the meaning of message before the sender completes the message. Such premature evaluation may occur due to pre-conceived notions or prejudices against the communicator.

(ii) Lack of attention When the receiver’s mind is pre-occupied, he fails to understand what is being said. e.g. A worker explains some problems to his supervisor. The supervisor is pre-occupied with a telephone call and does not grasp the message.

(iii) Loss by transmission and poor retention When communication passes through various levels, it may result in loss by transmission. Sometimes, poor retention of people due to lack of interest and attention leads to miscommunication.

Question 54.
Explain any four non-financial incentives. (All India 2011)
Answer:
To satisfy the social and psychological needs, non-monetary incentives are needed.
For non-financial incentives

Various types of non-financial incentives are as follows: (any three)
(i) Job security Generally, workers prefer security of job. It is an assurance by the employer that the worker will continue in the employment. It eliminates uncertainty about the earnings and job and have a positive impact on the efficiency.

(ii) Participation In management’s dedsions The active participation of workers and their representatives in decision-making helps in seewing cooperation and commitment of workers towards organisatlonal goals.

(iv) Employee recognition It is one of the most important motivator. ti helps in improving the attitudes of employees and at the sanie Lime. motivates them to put in their best efforts. efficiency and innovations of the workers should be recognised and praised. Recognition can be given by appreciating the work. installing awards and certificates. display of achievements on the notice board. etc.

(iv) Job enrichment Assignment of challenging Jobs is a significant non-financial incentive. Assignment of challenging work to subordinates provide opportunities for maximum development and helps them to reach upto the point of sdf-reajisatjoa

(v) Status In the organisation context, status means ranking of positions In the organisation. The status of a person Is reflected in his authority, responsibility pre-requisites and recognition. Psychological social and esteem needs of an individual arc satisfied by status.

Question 55.
Explain the meaning and any three characteristics of directing. (All India 2010)
Answer:
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation through effective communication, so that their efforts result in achievement of organisational objectives.

Characteristics of directing are as follows:
(i) Initiating process It involves giving orders and instructions to the employees and thereby decisions are converted into actions.
(ii) Pervasive function The directing function is performed by all managers at all levels to achieve the organisational goals, (in) A continuous process It is an activity that takes place throughout the life of an organisation, irrespective of people occupying managerial position.

Question 56.
Ayasha Ltd assured their employees that inspite of recession, no worker will be retrenched from the job.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category. (Delhi 2010)
Answer:
(i) Job security Ayasha Ltd offered non-fmandal incentive i.e. ‘job security’.
It refers to the stability about future income and work so that the employees do not feel worried on these aspects and work with great zeal. Workers may not prefer jobs with higher wages or salaries which do not carry security.

(ii) Employee recognition programmes The other incentive of this category is employee recognition. When the services of an employee is recognised, he feels morally upgraded and his confidence level goes high. He prepares himself to take new challenges.

Recognition can be given by:
(a) Congratulating the employee for good performance.
(b) Displaying the achievement of an employer on a notice board or company newsletter.
(c) Installing awards or certificates for best performance etc.
(d) Distributing moments and complimen- taries like T-shirts etc.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 57.
Blue Birds Ltd offers to its employees to issue shares at a price which is less than the market price.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category. All Indio 2010
Answer:
(i) Co-partnership By offering its employees issue of shares at a price less than the market price, Blue Birds Ltd offered ‘co-partnership’ which is a financial incentive. The company did so, to motivate its employees so that they work with great zeal. All types of such incentives are measured in monetary terms. By offering such incentives, the company motivates its people to improve their performance. These incentives may be provided on individual or group basis.

(ii) Bonus It is an incentive offered over and above wages/salary to the employees. Monetary benefits have only limited utility in increasing the motivation of employees. After the basic needs have been met, the role of money in motivating the employees is generally decreased.

Question 58.
Communication plays a key role in the directing function of management. Do you agree? Give any four reasons in support of your answer. (All India 2010)
Answer:
Yes, communication plays a key role in the directing function of management.
The communication is an important element of directing because of the following points:
(i) Acts as a basis of coordination and cooperation Communication acts as a basis of coordination. It provides coordination among departments, activities and persons in the organisation. Such coordination is provided for explaining about organisational goals, the mode of their achievement and inter- relationships between different individuals, etc.

(ii) Increases managerial efficiency The employees must know clearly about their responsibilities and authority, who will report to whom, what part of total job they are expected to perform and what are their decision-making powers. This leads to smooth flow of communication.

(Hi) Helps in smooth working of an enterprise All interactions in an organisation and smooth working of an enterprise is possible only when there is no communication gap. Right from establishing of enterprise till its survival, communication is essential.

(iv) Promotes cooperation and industrial peace Efficient operation is the aim of all prudent management. It may be possible only when there is industrial peace in the factory and mutual cooperation between management and workers. The two way communication promotes cooperation and mutual understanding between the management and workers.

Question 59.
Pratap Singh is the Chief Executive Officer of Nissar Enterprises. It is an automobile parts manufacturing company. The enterprise has a functional structure, in which jobs of similar nature have been grouped together as Production, Finance, Marketing and Human Resource. Nissar Enterprises has its manufacturing unit at Manesar. The factory has been plagued with many problems for a long time which was in the knowledge of the Production Manager, Varun Sharma. The workers had internal differences. Time and again, there were misunderstandings between the management and the workers. Keeping the problems in mind, Varun Sharma appointed, Siyaram Singh who had 14 years of experience of working with the actual workforce and passing on instructions of the middle management to the workers.

Siyaram Singh met Varun Sharma to understand what the management wanted?
Thereafter, he met the workers and conveyed the ideas of management to them. He also promised the workers to convey their problems to the management. In this way, he cleared the misunderstanding between the management and the workers.
He also sorted out internal differences and was able to unite the workers within a month of his joining. His work was . acknowledged by management and he was given a certificate of good performance alongwith 10% increase in salary.
(i) Siyaram Singh performed some of the functions which are required to be performed at the position he is working at. State any five other functions Siyaram Singh is expected to perform.
(ii) Name the incentives provided to Siyaram Singh. (Delhi 2019)
Answer:
(i) Apart from acting as a link between f management and workers, functions required to be performed by Siyaram Sharma (Supervisor) are:
(a) Providing guidance and leadership: The supervisor leads the workers of his department. He fixes production targets for them and provides them the necessary guidance for doing the work assigned to them. He provides on-the-job training to the workers working under him.

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

(c) Preserving records The supervisor keeps records of output and other related aspects of each employee. He sends the necessary information to the top management.

(d) Controlling output: The supervisor controls the performance of the workers by comparing their performance with the standards. He also takes necessary action to ensure that production is done according to the predetermined standards.

(e) Liaison 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 to the workers. He has a close contact with the workers and tries to understand their problems. He brings worker’s problems to the notice of the top management.

(f) Grievance handling: A supervisor is in direct touch with the workers, so he can handle their grievances effectively. He should maintain good relations with the workers so that the workers come to him if they have any grievance. When a grievance is reported, he should try to remove it. But, if he can not redress the grievance, he should report it to the upper level management.

(ii) Incentives given to Siyaram Singh are:

  • Employee recognition
  • Pay and allowances

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 60.
Explain the concept of leadership and its various styles. (Compartment 2015)
Answer:
Following are the types of leadership styles:
(i) Autocratic/Authoritative leadership:
Under this style, all decision-making power is vested in the leader and he exercises complete control over his subordinates. The leader determines the policies without consulting them and assign task to them without giving them any freedom. It is like ‘bossing people around’. It is a boss centered leadership, and is also called directive style of leadership. e.g. Mr Ratan, the GM of Addi Industries delegates the work to his staff Ms Ritu, Mr Saurabh, Mr Manan, according to his discretion. Here Mr Ratan is behaving as an autocratic leader.
Directing Class 12 Important Questions and Answers Business Studies Chapter 7 -3

(ii) Democratic/Participative leadership Under this style, leader consults his subordinates in decision-making process and works out policies with the acceptance of the group. He encourages them to give suggestions in setting goals and implementing decisions. It is group centered leadership.

e.g. Mr Ratan realised that due to the absence of Mr Manan, the targets will not be met, so he discusses with his staff about meeting the deadline. Every body decided to do overtime and complete the task. Here Mr Ratan is behaving as a democratic leader.
Directing Class 12 Important Questions and Answers Business Studies Chapter 7 -4

(iii) Laissez-faire/Free-rein leadership Under this style, the leader gives full freedom to the subordinates in setting goals. Such a leader avoids use of power. The leader does not interfere in the activities of the subordinates. Group members work themselves as per their own choice and competence. It is called subordinate centered leadership.
Directing Class 12 Important Questions and Answers Business Studies Chapter 7 -5
e.g. The staff plans to organise a party in the honour of Mr Manan as he got promoted. Mr Ratan asks the other members of the staff to fix the venue and menu for the occasion. Here, Mr Ratan is behaving as a free-rein leader.

NOTE: A leader may use all the styles over a period of time. However, one style tends to predominate the normal way of using power.

Question 61.
Explain how directing helps in effective and efficient functioning of the organisation. (Comportment 2014)
Or
Directing is the heart of the management process. Do you agree? Give any four reasons in support of your answer. (Delhi (C) 2010)
Or
What is meant by directing as a function of management? Describe any four points of its importance. (Delhi 2012)
Or
‘Every action in the organisation is initiated through directing’. Explain any four points of importance of directing in the light of this statement. (All India 2012)
Answer:
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation through effective communication so that their efforts result in achievement of organisational objectives. The scope of directing is very wide. It consists of all those activities by which a manager influences the behaviour of his subordinates to secure desired performance from them.

Question 61.
‘The function and performance of the supervisor are vital to an organisation because he is directly related with the workers whereas, other managers have no direct touch with bottom level workers’.
In the light of this statement, explain any four functions of a supervisor. (Compartment 2014)
Or
‘The supervisor performs a very important role in an organisation by performing multiple functions’. State any six such functions. (Delhi 2013)
Or
Give the meaning of supervision as an element of directing and any four points that explain its role. (Delhi 2012)
Or
Explain the role of supervision as an element of directing function of management. (Delhi 2011)
Or
Role of a supervisor is vital to any organisation as he performs multiple functions’.
Or
Explain any four functions of a supervisor. (Compartment 2013)
Answer:
Supervision means instructing, guiding and monitoring the subordinates to ensure that they perform their jobs in accordance with the plans and instructions. It means overseeing what is being done by subordinates and giving instructions to ensure proper utilisation of resources and achievement of work targets. Supervisor is a person, who is primarily an incharge of a section and employees, or is responsible for both the quantity and quality of production.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 62.
Explain the following non-financial incentives:
(i) Status
(ii) Organisation climate
(iii) Career advancement opportunities (All India 2013)
Answer:
Non-financial incentives are used to motivate employees to improve their performance. These incentives are not measured in terms of money, rather they provide psychological and emotional satisfaction.
(i) Status In business terms, status means ranking of positions in the organisation. The authority, responsibility, rewards,
recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position. It satisfies psychological, social and esteem needs of an individual.

(ii) Organisation climate Organisational climate refers to the sum total of characteristics like individual autonomy, reward orientation, consideration to employees, risk-taking, etc. A positive climate serves as an incentive to improve performance. Supportive relationships, knowledge of work done, healthy competition for superior performance, etc are all motivating factors.

(iii) Career advancement opportunity Most of the employees want to explore in their career. An organisation can motivate its employees by providing them opportunities for in-service training and promotion. In other words, if the employees are provided the opportunity for their advancement and growth and to develop their potentiality, they feel very much satisfied and become more committed towards the organisation goals.

Question 63.
Give the meaning of ‘motivation’ and state any four features of motivation. (Comportment 2012)
Answer:
Meaning of motivation Motivation means incitement or inducement to act or move. In the context of an organisation, it means the process of making subordinates to act in a desired manner to achieve certain organisational goals. It is the act of inspiring employees to work hard to achieve the desired goals of the organisation.

Motivation means a process of stimulating people to action to accomplish desired goals. – William G Scout

The salient features of motivation are:
(i) Motivation is a psychological phenomenon It is a personal and internal feeling like an urge, drives, desires and aspirations of human being, which influence human behaviour.
(ii) Goal directed behaviour Motivation inspires an employee to achieve goals. Thus, it encourages goal directed behaviour.
(iii) Motivation may be positive or negative Positive motivation means inspiring people to work better by providing incentives and negative motivation means forcing people to work by threatening or punishment.
(iv) Motivation is a complex process, as the individuals are heterogeneous in their expectations, perceptions and reactions.

Question 64.
What is meant by leadership? Describes any four qualities of a good leader. (All India 2012; Compartment 2012)
Or
A leader who has only good physical features and required knowledge and competence cannot inspire others to work. Then what else is required by a leader to be successful? Explain by giving any six points. (All India 2010; Delhi (C) 2010)
Answer:
Leadership is an attempt aimed at influencing people directly towards the attainment of given goals. Leadership may also be defined as an art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals. In the words of Louis A Allen, ‘A leader is one who guides and directs other people. A leader gives the efforts of his followers a direction and purpose by influencing their behaviour’.

Qualities of a good leader are (any four):
(i) Integrity and honesty A leader must possess high level of integrity and honesty. He must follow ethics and values, then only he can expect his subordinates to be ethical and honest.

(ii) Initiative A leader must take initiative to grab the opportunities. He must have courage and initiative to take bold decisions. He must take risk for the advantage of organisation.

(iii) Decisiveness Leader should be quick in managing the work. Once he is convinced about a fact, he should be firm and should not change his opinion frequently.

(iv) Self-confidence and sense of responsibility A leader must be confident, then only he will be able to tackle any situation successfully. Only a confident leader can create confidence in his subordinates. A leader must have the sense of responsibility for achievement of goals or target of his group members.

(v) Social skills A leader must be friendly with his subordinates. He must provide supportive environment to subordinates so that they do not hesitate to discuss their problems. He must understand people and try to maintain good relations with them.

(vi) Motivational skills Leader should be an effective motivator. He should understand the needs of people and motivate them by satisfying their needs.

Question 65.
Leadership is a key factor in making any organisation successful. Do you agree with this statement? Give any four reasons in support of your answer. (All India 2010)
Answer:
Yes, I agree with this statement. Leadership is required in the organisation because of the following reasons:
(i) Effective direction An organisation comes into existence with certain objectives. To attain the objectives, the activities of the organisation must be directed. Direction of the activities is effected through leadership. In short, effective leadership directs the activities of an organisation towards the attainment of the specified organisational goals.

(ii) Source of motivation Effective leadership motivates the subordinates to contribute their energies for the benefit of the organisation.

(iii) Provide confidence Leadership creates confidence in the subordinates by giving them proper guidance and advice.

(iv) High morale Good leadership increases the morale of the employees which in turn, contributes to higher productivity.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 66.
Managerial functions cannot be carried out without an efficient system of communication. Do you agree with this statement? Give any five reasons in support of your answer. (Delhi 2010)
Answer:
Communication may be defined as a process of exchanging ideas and information between two or more persons to create mutual understanding.
Importance of communication are as follows:
(i) Acts as a basis of coordination Communication acts as a basis of coordination. It provides coordination among departments, activities and persons in the organisation. Such coordination is provided for explaining about organisational goals, the ‘ mode to their achievement and inter-relationships between different individuals, etc.

(ii) Acts as a basis of decision-making The decisions made in an organisation depends largely on the amount and quality of information available. On the basis of communication of relevant information, one can take right decisions.

(iii) Increases managerial efficiency The employees must know clearly about their responsibilities and authority, who will report to whom, what part of total job they are expected to perform and what are their decision-making powers. This leads to smooth flow of communication.

(iv) Helps in the process of motivation and morale Motivation and morale of employees largely depend upon the effectiveness of communication. Sharing of information with employees helps management to secure their willing cooperation.

(v) Effective leadership Communication is the basis of leadership. By developing the skills of communication, a manager can be a real leader of his subordinates. A good system of communication brings them in close contact with each other and removes misunderstandings.

Question 67.
“Motivation plays an important role in the success of management’. Explain any four points of importance in the light of the statement. (Delhi 2010)
Answer:
Importance of motivation are as follows:
(i) Changes negative attitude to positive attitude Sometimes, workers have indifferent or negative attitude towards work. Motivation helps to build a positive attitude towards work through suitable rewards, positive encouragement and praise for good work.

(ii) Improves efficiency Motivation influences the level of performance of employees which depends not only on individual abilities but also on their willingness to achieve a higher level of performance. Motivation infuses willingness to work. In this way, it bridges the gap between the ability to work and willingness to work.

(iii) Helps to introduce changes smoothly Whenever some changes are brought in the organisation, employees resist change. However, with proper motivation, employees can be convinced that the proposed changes will bring additional rewards to the employees. This will help them to readily accept the changes.

(iv) Creates supportive work environment Organisation offers various rewards to their employees to satisfy their diverse needs. They offer monetary rewards, promotional opportunities, recognition for efficient work and involvement of employees in decision-making. These bring satisfaction among employees. Such satisfaction leads to cordial relationship between the employer and employee.

Multiple Choice Questions

Question 1.
Direction flows ………………. in the hierarchy.
(a) downward
(b) upward
(c) diagonal
(d) horizontal
Answer:
(a) downward

Hint:
Directing is initiated at the top level and flows to the bottom, which means that it flows downward in the hierarchy.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 2.
Which one of the following is not a leadership style?
(a) Boss centered leadership
(b) Group centered leadership
(c) Subordinate centered leadership
(d) Organisation centered leadership
Answer:
(d) Organisation centered leadership

Question 3.
Grapevine is which type of communication?
(a) Formal communication
(b) Informal communication
(c) Lateral communication
(d) Barrier to communication
Answer:
(b) Informal communication

Hint:
Grapevine is defined as the network of informal communication which can spread in any direction irrespective of the official channels in the organisation structure.

Question 4
Leadership is an essential element of
(a) directing
(b) controlling
(c) staffing
(d) organising
Answer:
(a) directing

Hint:
Leadership is an essential element of directing as it helps in influencing the behaviour of others for the accomplishment of goals.

Question 5.
Formal communication may be classified as
(a) vertical
(b) horizontal
(c) Both (a) and (b)
(d) parallel
Answer:
(c) Both (a) and (b)

Hint:
Formal communication flows through official channels designed in the organisation chart. Vertical communication flows upwards or downwards through formal channels. Horizontal communication takes place between one division and another.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 6.
Hunger, thirst, shelter, sleep are some of the examples of
(a) basic physiological needs
(b) safety needs
(c) social needs
(d) esteem needs
Answer:
(a) basic physiological needs

Question 7.
…………… represents formal communication with one another freely and quickly.
(a) Inverted V network
(b) Wheel network
(c) Free flow network
(d) Circular network .
Answer:
(c) Free flow network

Question 8.
A democratic leader ……………..
(a) provides freedom of thinking
(b) listen to suggestions and opinions of subordinates
(c) delegates authority
(d) All of the above
Answer:
(d) All of the above

Hint:
A democratic leader provides freedom of thinking and delegates authority to participate in decision-making. Apart from it, democratic leader listens to suggestions, grievances and opinions of the subordinates.

Question 9.
Which of the following is/are disadvantage of free-rein leadership style?
(a) Subordinates do not get the support of leader
(b) Subordinates move in different directions
(c) There is a lack of guidance to subordinates
(d) All of the above
Answer:
(d) All of the above

Hint:
The free-rein leader avoids use of power and gives freedom to subordinates. The negative point with this leadership style is that the subordinates move in different directions as there is no guidance to subordinates. They do not get the support of leader.

Question 10.
Match the following.

List I List II
I. Supervision (i) The manager shares information with subordinates
II. Motivation (ii) The manager assures that workers needs will be taken care of
III. Communication (iii) The manager attempts to influence his subordinates
IV. Leadership (iv) The manager oversees the workers activities Codes

Codes

I II II IV
(a) (iv) (ii) (i) (iii)
(b) (i) (ii) (iii) (iv)
(c) (ii) (i) (iv) (iii)
(d) (iv) (i) (ii) (iii)

Answer:
(a) (iv) (ii) (i) (iii)

Question 11.
It takes place throughout the life of the organisation irrespective of people occupying managerial positions. Mention the characteristic of directing highlighted here.
(a) Pervasiveness
(b) Complex process
(c) Initiates action
(d) Flows from top to bottom
Answer:
(a) Pervasiveness

Hint:
Every manager from top to bottom performs the function of directing. Directing exists at every level, location and operates throughout an organisation. That’s why, directing is a pervasive function of management.

Directing Class 12 Important Questions and Answers Business Studies Chapter 7

Question 12.
Mr John always involves employees in decision-making, delegates authority and gathers input from employees, but makes the final decision himself. Which leadership style he is using?
(a) Autocratic
(b) Democratic
(c) Free-rein
(d) None of the above
Answer:
(b) Democratic

Hint:
Democratic leadership, also known as participative leadership, is a type of leadership style in which members of the group take a more participative role in the decision-making process. But final decision is taken by the leader himself.

Question 13.
A film director is about to start a film on social issues. For this, he guides the artists about how they should act in the film and inspires them to perform better. Which function of management is performed here?
(a) Organising
(b) Controlling
(c) Coordinating
(d) Directing
Answer:
(d) Directing

Hint:
Directing, as a function of management, means giving instructions and guiding people in doing work. Directing is done to achieve some pre-determined objectives. In above instance, film director guides the artists about how to perform and inspires them to perform better to achieve his pre-determined objective.

Question 14.
“A manager must continuously guide and inspire people and supervise his subordinates, so that the organisational goals are achieved. This function continues throughout the life time of an organisation. If directing stops, an organisation ceases to work and grow.” This statement describes which feature of directing?
(a) Pervasiveness
(b) Continuous process
(c) Hierarchy
(d) None of the above
Answer:
(b) Continuous process

Hint:
Directing is a continuous process which goes on throughout the life of an organisation. Managers and employees may come or go, but directing goes on in order to achieve organisation’s goals on time. Directing is performed by every manager at every level and it is a never ending process.

Question 15.
Match the following.

List I List II
I. Element of directing (i) Pervasiveness
II. Importance of directing (ii) Harmony of objectives
III. Principle of directing (iii) introduce changes
IV. Feature of directing (iv) Communication

Codes

I II II IV
(a) (i) (ii) (iii) (iv)
(b) (ii) (iii) (iv) (i)
(c) (iv) (iii) (i) (ii)
(d) (iv) (iii) (ii) (i)

Answer:
(d) (iv) (iii) (ii) (i)