NCERT Solutions for Class 12 Business Studies Chapter 7 - Directing

NCERT Solutions for Class 12 Business Studies Chapter 7 Free PDF Download

Please Click on Free PDF Download link to Download the NCERT Solutions for Class 12 Business Studies Chapter 7 Directing

The dot mark field are mandatory, So please fill them in carefully
To download the complete Syllabus (PDF File), Please fill & submit the form below.

    Very Short Answer Type Questions

    1. 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 lines of communication is said to be informal communication. This type of communication establishes the personal relationship among employees.

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

    Ans. Laissez Faire or free reign leadership style does not believe in the use of power unless it is absolutely essential. In such leadership complete decentralisation of the authority is given to the subordinates. Maximum freedom and encouragement are provided to subordinates so, that they take decisions independently.

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

    Ans. The element in the communication process which involves the conversion of the message into words, symbols, gestures etc. called as Encoding. It is the process of transforming the message to be sent into symbols that are generally used in communication. This involves developing words, gestures, pictures, etc., that form the message.

    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. In the given situation what is required is providing motivation to the employees. The supervisor must motivate the employees and encourage them to perform to the best of their capabilities. For that he has to identify the needs and requirements of the workers. In other words, the cause for the unwillingness to work must be identified and worked upon. For motivation various financial incentives such as bonus and profit sharing or non-financial incentives such as work enrichment and position can be initiated.

    Short Answer Type Questions

    1. 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. When the sender and the receiver interpret the message differently, misunderstanding arises.
    Main causes of semantic barriers are listed below:
    (i) Ineptly expressed message
    (ii) Symbols with different meanings
    (iii) Inaccurate translations
    (iv) Unclarified assumptions
    (v) Technical jargon
    (vi) Body language and gesture decoding

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

    Ans. Motivation as a process implies encouraging and influencing the employees to perform to the best of their capabilities and knowledge.

    The steps of motivation process are as follows:

    (i) Unsatisfied Need: It starts with the need of an individual which is not satisfied.

    (ii) Tension/Frustration: Dissatisfaction of need or wants creates tension or frustuation.

    (iii) Drive: This tension creates drive and an individual starts looking for alternatives to satisfy the need.

    (iv) Behaviour: Then he starts behaving as per chosen option.

    (v) Satisfaction: After opting the chosen behaviour, his need got satisfied.

    (vi) Reduction of Tension: The fulfillment of need results in relieving of tension.


    3. State the different networks of grapevine communications.

    Ans. Grapevine communication may follow different types of networks which are as follows:

    (i) Single strand network: Each person communicates to the other in sequence.

    (ii) Gossip network: Each person communicates with all on non-selective basis.

    (iii) Probability network: The individual comm-unicates randomly with other individual.

    (iv) Cluster network: The individual comm-unicates with only those people whom he trusts.

    4. Explain any three 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., convenient and apt incentives should be given to strengthen the employees to enhance their performance.

    (ii) Harmony of Objectives: Most of the time, it happens that the organisational objectives and individual objectives move in opposite directions are conficting to each other. The person who is in charge of a team of workers should guide and train his team in such a manner that they realise the importance of both the objectives.

    (iii) 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. For some employees money acts as a motivator while for some promotion acts as a effective motivator.

    5. 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. In the given situation what is wrong is that there is a absence of free flow of communication. The manager must involve his subordinates in the decision making process and encourage them to actively give their feedback and suggestions.

    6. A reputed hostel, Gyan Pradan 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. Gyan Pradan has given perquisites and fringe benefits to the employees in the form of free education to children and medical aid. Perquisites and fringe benefits are a type of Financial incentive.

    Some other financial incentives are: (any two)

    (i) Bonus: It refers to the additional reward given over and above the salary such as gifts, festival bonus, etc.

    (ii) Retirement Benefits: Offering retirement benefits to employees such as pensions, gratuity, provident fund, etc.

    (iii) Stock Option: Offering the employees shares of the company at a price lower than the market price.

    (iv) Profit-Sharing: Incentives where a portion of the profit is shared with the employees.

    Long Answer Type Questions

    1. 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 appearence: It is believed that good physical features attract people like height, weight, health, appearance determine the physical personality of an individual.

    (ii) Knowledge: A good leader should have required knowledge and proficiency. Only then such person can instruct subordinates correctly and influence them.

    (iii) Integrity: A leader should be idol a ideal to others 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 uses it to the advantage of organisation.

    (v) Communication and Motivation Skills: A leader must be a good communicator. He must 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 the most difficult times. A person who is confident will never be successful in providing confidence to his followers.

    (vii) Assertiveness: A 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 accredit to the leader, but due credit is not given to the followers. Factors of followers like their skills, knowledge, commitment, willingness to co-operate with a 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.

    2. Discuss Maslow’s need Hierarchy theory of motivation.

    Ans. Maslow’s Need Hierarchy Theory of Motivation: Motivation is a psychological term in which the needs of an employee plays an important. In order to study motivation, various researchers developed theories on them. Among them Abraham Maslow’s need hierarchy theory is considered of worth. As per his theory, their exists a hierarchy of five needs, these are:


    (i) Basic Physiological Needs: These needs are the most basic in the hierarchy and correspond to primary needs. Food, clothing, shelter are a few examples of this type of need i.e., survival and maintenance of human life. Basic salary helps to fulfill these needs.

    (ii) Safety/Security Needs: When the basic needs satisfied, people start thinking of future. These needs provide security and protection from physical and emotional harm in coming future that is, job security, pension plans, etc. help to satisfy these nuts.

    (iii) Affiliation/Belonging Needs: These needs refer to human feeling of belongingness. We all as human beings look forward to being accepted in the society e.g., friendship.

    (iv) Esteem Needs: These include self-respect, autonomous status, attention. An individual wants a respect and recognition from others in this need.

    (v) 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-fulfillment and achievement of goals, etc.

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

    Ans.Common Barriers to Effective Communication: Several obstructions, hurdles, stoppages etc. called barriers to communication. Managers in all the organisations face problems due to communication barriers. These barriers may prevent a communication or filter the part of it or carry incorrect meaning due to which misunderstanding may be created. Hence, all managers need to 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: When the message is not communicated appropriately by the manager because of faulty vocabulary, usage of wrong words, exclusion of needed words etc.
    (b) Symbols with Different Meaning: A word may have diverse meanings. Receiver has to perceive one such meaning for the word used by communicator. This type of language barrier causes difficulties in effective communication.
    (c) Faulty Translations: Sometimes while translating, if incorrect translation is done by the translator exclusion 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 gesture 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 act 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 listening to the entire message. Such premature evaluation may be due to pre-conceived notions.
    (b) Lack of Attention: If the mind is pre-occupied then it results in non-listening of message by the receiver and acts as a major psychological barrier.
    (c) Loss 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 other’s message in its original sense as they are not giving importance to the information exchanged.

    (iii) Organisational Barriers: The barriers related to organisational 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 channels 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 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 etc. Lack or ineffectiveness of these facilities may create communication problems.

    (iv) Personal Barriers: The personal factors of both the sender and the 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, subordinates 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.

    Measures which can be adopted by organisations to improve communications are:
    (i) Clarify the Ideas Before Communication: The entire message that needs 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 Receiver: 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) Beware 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 the 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: Communication is incomplete without proper feedback from the receiver. The receiver of communication must be encouraged to respond to communication. The communication process can 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 the instructions are implemented.
    (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.

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

    Ans. Financial Incentives: Financial incentives refer to those incentives which are in direct monetary form or measurable in monetary term and serve to motivate people perform better. 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. 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 grants motivation the employees that improve their performance and contribute to increase in profits of the organisation.
    (iv) Co-Partnership/Stock Option: Under these incentives schemes, employees are offered company shares at a set price which is lower than the market price. The allotment of shares creates a feeling of ownership to the employees and encourage them to contribute more for the growth of the organisation.
    (v) Retirement Benefits: 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.
    (vi) 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 psychological, emotional and social needs of the employees 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 encourage employees to exhibit improved performance.
    (iv) Job Enrichment: Job enrichment is concerned with designing jobs that include greater variety of work content, requires 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 for best performance,
    (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 motivates them and they contribute positively to the use of skills and talents in the job performance.

    5. 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 for management should adopt to improve communication?

    Ans.In the given situation, informal communication is being followed. But now, the problem is occurred is the excessive use of it. What is required now is a proper chain of communication and a restriction on the communication of employees.
    For that, the organisation should adopt formal communication. It refers to the communication which takes place through official channels in an organisation. This communication can be oral or written, as it is recorded and filed in the office. Such communication usually delays the process as it passes through many levels managed but does not create rumours or cause miscommunication. By adopting it, a proper chain of command can be established and the necessary information will be passed through it. Hence, it will save time and more discipline would be followed as the employees would not be able to communicate at all levels.

    Share page on