Directing Class 12 Notes Business Studies Chapter 7 - CBSE

Chapter: 7

What Are Directing ?

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Directing refers to the process of instructing, guiding, counseling, motivating and leading people in the organisation to achieve its objectives.

Elements of Directing

Supervision
Leadership
Motivation
Communication

Characteristics of Directing

Initiates action
Takes place at every level of Management
Continuous Process
Flows from top to bottom

Importance of Directing

Initiate Action
Integrates employees efforts in the organisation
Guides employees to fully realise their potential and capabilities
Facilitates introduction of needed changes
Helps in maintaining stability and balance in the organisation

Principles of Directing

Maximum individual contribution
Harmony of objectives
Unity of Command
Appropriateness of direction technique
Managerial communication
Use of informal organisation
Follow Through

Supervision

Supervision is the process of instructing, guiding and monitoring the subordinates so that subordinates perform their jobs according to the plans and instructions.

Importance

Maintains day-to-day contact and maintains friendly relations with workers
Link between workers and management
Maintains group unity
Ensures performance of work according to the targets set.
Provides good on the-job training
Influences the workers
Analyzes the work performed and provides feedback to the workers

Motivation

Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity.

Features

Internal Feeling
Produces goal directed behaviour
Either positive or negative
Complex Process

Importance

Improve performance levels
Changes negative or indifferent attitudes
Reduces Employee Turnover
Reduces Absenteeism
Helps managers to introduce changes smoothly

Maslow’s Need Hierarchy Theory

Basic Physiological Needs: These needs are most basic in the hierarchy like Hunger, thirst, shelter and sleep etc.
Safety/Security Needs: These needs provide security and protection from physical and emotional harm.
Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship.
Esteem Needs: These needs include self-respect, autonomy status, recognition and attention.
Self -Actualisation Needs: It refers to the drive to become what one is capable of becoming. It includes growth, self-fulfillment and achievement of goals.

Financial Incentives

These are those incentives which can be measured in monetary terms. It includes bonus, Pay and allowances, Productivity linked wage incentives, profit-sharing, co-partnership, retirement benefits, perquisites

Non-financial Incentives

These are those incentives which does not include money but satisfy psychological, social and emotional factors. It includes status, organisational climate, Career Advancement Opportunity, Job Enrichment, Employee Recognition Programs, Employee Participation and Employee Empowerment.

Leadership

It is the process of influencing the behavior of other people so that they work willingly for the attainment of goals in a given situation.

Features

Indicates ability of an individual to influence others
Bring change in the behavior
Indicates interpersonal relation between leaders and followers.
Achieve common goals of the organisation
Continuous Process

Importance

Influences the behavior of people positively
Maintains personal relations
Introduces required changes in the organisation
Handles Conflicts Effectively
Provides training to subordinates

Qualities of a Good Leader

Physical Features
Knowledge
Integrity
Initiative
Communication Skills
Motivation Skills
Self-Confidence
Decisiveness
Social Skills

Leadership Style

Autocratic or Authoritarian Leader: An autocratic leader gives orders to his subordinates and expects that his subordinates to obey those orders.
Democratic or Participative leader: A democratic leader will makes decisions in consultation with his subordinates.
Laissez faire or Free-rein leader: Such a leader does not use his power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them.

Communication

Communication is the process of exchange of ideas, views, facts and feelings etc. between two and more persons.

Elements of Communication Process

Sender
Message
Encoding
Media
Decoding
Receiver
Feedback
Noise

Importance of Communication

Acts as basis of coordination among departments, people and activities
Helps in smooth working of an Organisation
Acts as basis of decision making for managers
Increases Managerial Efficiency
Promotes cooperation and industrial peace
Establishes effective leadership
Boosts Morale of employees

Formal And Informal Communication

Formal Communication flows through official channels designed in the organisation chart.

Single chain: The communication flows from every superior to his subordinate through single chain.
Wheel: All subordinates under one superior communicate through superiors only as he acts as a hub of the wheel.
Circular: Each person can communicate with his adjoining two persons.
Free flow: Each person can communicate with others freely.
Inverted V: A subordinate is allowed to communicate with his immediate superior as well as his superiors superior.

Informal Communication flows in every direction without following the official channels.

Grapevine Network

Single Strand Network: Each person communicates with other person in sequence. Gossip network: Each person communicates with other person on non-selective basis.
Probability Network: The individual communicates randomly with other individual. Cluster: the individual communicates with only those people whom he trusts.

Barriers To Communication

Semantic Barriers

These barriers are related to the meaning of words and sentences. Such barriers are:

Faulty translation of message
Badly Expressed Message
Symbol with different meaning
Unclarified assumption
Technical Jargon
Body language and gesture decoding

Psychological Barrier

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

Organisational Barrier

The factors related to organisational structure, authority relationships, rules and regulations may, sometimes, act.

Organisational Policy
Rules and Regulations
Status
Complexity
Organisational Facilities

Personal Barriers

These barriers are related to the personal factors of both sender and receiver. The barriers can be:

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

Improving Communication Effectiveness

Organisations keen on developing effective communication should adopt suitable measures to overcome the barriers and improve communication effectiveness.