Please refer to the Directing Class 12 Notes for Business Studies given below. These revision notes and important question answers have been prepared based on the latest NCERT book for Class 12 Business Studies. Our teachers have developed these short notes and Important Questions Class 12 Business Studies as per the latest syllabus for Grade 12 Business Studies issued by CBSE. Read these notes and important questions to get better marks in examinations
Class 12 Business Studies Directing
Directing refers to the process of instructing, guiding, counseling, motivating and leading people in the organization for the purpose of achieving organizational goals
Importance of Directing
✔ Directing helps to initiate action by people in the organization towards attainment of desired objectives.
✔ Directing integrates employees’ efforts in the organization in such a way that it contributes to the organizational performance.
✔ Directing guides employees to fully realize their potential through effective communication, motivation and leadership.
✔ Directing facilitates introduction of needed changes in the organization as it helps to reduce employees’ resistance and develop an environment which is conducive to introducing changes in the organization.
✔ Effective directing helps to bring stability and balance in the organization since it encourages cooperation and commitment.
Features of Directing
1. Directing initiates action in the organisation as it is an executive function of management.
2. Directing takes place at every level of management wherever superior – subordinate relations exist.
3. Directing is a continuous process and is carried on till an organisation ceases to exist.
4. Directing flows from top to bottom as it is first initiated at top level and flows to the bottom through organisational hierarchy
Elements of Directing
Supervision is the process of overseeing the work of a subordinate by his superior.
Importance of Supervision
1. A good supervisor acts as a guide, friend and philosopher to the workers.
2. Supervisor acts as a link between workers and management.
3. Supervisor plays a crucial role in maintaining group unity among workers placed under his control.
4. Supervisor ensures performance of work according to the targets set and motivates the workers effectively.
5. Supervisor provides good on-the-job training to the workers and employees.
6. A supervisor with good leadership qualities can build up high morale among workers.
7. A good supervisor analyses the work performed and gives feedback to the workers.
Motivation is the process of stimulating people to action to accomplish desired goals.
Importance of Motivation
1. Motivation helps to improve the performance of both the employees as well as the organisation.
2. Motivation helps to mould negative or indifferent attitudes of employees into positive attitudes for the benefit of the organisation.
3. Motivation helps to reduce the employee turnover and leads to reduction in the cost to be incurred on new recruitment and training.
4. Motivation helps managers to introduce changes within the organisation smoothly without much resistance from their subordinates.
5. Motivation helps to reduce absenteeism in the organisation as work becomes a source of pleasure and workers attend to the work regularly.
Features of Motivation
1. Motivation is an internal feeling as it relates to the urge, drives, desires, or needs of human beings.
2. Motivation produces goal directed behaviour.
3. Motivation can be either positive or negative.
4. Motivation is a complex process as the individuals may differ in their perceptions and reactions. expectations,
Incentive means all measures which are used to motivate people to improve performance
Types of Incentives
• Financial incentives – refers to incentives which are in direct monetary form.
• Non-financial incentives – mainly focus on psychological, social and emotional needs.
Types of Financial Incentives
• Pay and allowances
• Productivity linked wage incentives
• Profit Sharing
• Co-partnership/ Stock option
• Retirement Benefits
Types of Non-financial Incentives
2. Organizational Climate
3. Career Advancement Opportunity
4. Job Enrichment
5. Employee Recognition program
6. Job security
7. Employee participation
8. Employee Empowerment
Abraham Maslow’s Needs Hierarchy Theory of Motivation
1. Basic Physiological Needs- refer to the needs that are most basic in the hierarchy like hunger, thirst, shelter etc. which can be fulfilled by basic salary.
2. Safety/Security Needs- refer to the needs to get security and protection from physical and emotional harm which can be fulfilled through job security, stability of income, pension plans etc.
3. Affiliation/Belonging Needs- refer to the needs that relate to affection, sense of belongingness, acceptance and friendship which can be fulfilled through team work, kindness etc.
4. Esteem Needs – include factors such as self-respect, autonomy status, recognition and attention which can be fulfilled by giving praise and recognition, offering promotions etc.
5. Self-Actualisation Needs – refer to the drive to become what one is capable of becoming which can be fulfilled by providing challenging work and giving them flexibility and autonomy in their jobs
Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.
Importance of Leadership
1. It helps to bring about a positive change in the behaviour of the employees for the benefit Of the organisation.
2. It helps to maintain good personal relations and also helps the followers in fulfilling their needs.
3. It helps to introduce the required changes in the organisation smoothly.
4. It helps to resolve the conflicts within the organisation effectively without leading to any disruptions in working of the organisation.
5. It facilitates training of subordinates by the leader.
Features of Leadership
1. Leadership shows the ability of an individual to influence others.
2. Leadership seeks to bring about a desired change in the behavior of others.
3. Leadership reflects the interpersonal relations between leaders and followers.
4. Leadership is an effective tool to achieve common goals of the Organisation.
5. Leadership is a continuous process
Styles of Leadership
• Autocratic leadership: the leader tells his or her employees what to do and how to do it, without getting their advice
• Democratic leadership: the leader includes one or more employees in the decision making process, but the leader normally maintains the final decision making authority
• Delegative OR Laissez-faire : the leader allows the employees to make the decisions, however, the leader is still responsible for the decisions that are made
Communication is defined as a process of Exchange of ideas, Views, Facts, Feelings etc. between or among people to create common understanding.
Importance of Communication
1. Acts as basis of coordination among departments, activities and persons in the organization
2. Helps in smooth working of an enterprise as all organisational interactions depend on communica tions.
3. Acts as basis of decision making as it provides the information needed for decision making.
4. Increases managerial efficiency as it lubricates the entire organisation and keeps the organisation at work with efficiency
5. Promotes cooperation and industrial peace as the two ways communication promotes cooperation and mutual understanding between the management and workers.
6. Effective communication helps to establish effective leadership.
7. Boosts morale and provides motivation to the employees and managers to achieve higher goals.
Elements Involved in Communication Process
1. Sender refers to a person who conveys his thoughts or ideas to the receiver.
2. Message is the content of ideas, feelings, suggestions, order etc., intended to be communicated.
3. Encoding refers to the process of converting the message into communication symbols such as words, pictures, gestures etc.,
4. Media is the path through which encoded message is transmitted to receiver through a face to face interaction, phone call, internet
5. Decoding is the process of converting encoded symbols of the sender.
6. Receiver refers to the person who receives communication of the sender.
7. Feedback includes all those actions of receiver indicating that he has received and understood message of sender. 8. Noise means some obstruction to communication
Types of Formal Communication Networks
1. Formal communication : Formal communication refers to interchange of information officially This makes it possible for the information to reach the desired place without any hindrance, at a little cost and in a proper way. This is also known as ‘Through Proper Channel Communication.’
✔ Upwards (from subordinate to his superior)
✔ Downward (formal superior to his subordinate)
• Takes place between one division and another
2. Informal Communication : Informal communication is generally referred to as the ‘Grapevine’ because it spreads throughout the organization with its branches going out in all directions in complete disregard to the levels of authority.
Formal Communication Network
1. Chain Communication: Chain communication refers to the communication between a superior and a subordinate. All the people in an organization from top to bottom are linked with the help of a scalar chain as has been shown in diagram
Example :- A is placed at the highest rank, B is a subordinate of A, C is the subordinate of B, D is the subordinate of C and E is the subordinate of D.
2. Wheel Communication: In this form of communication, all the subordinates of a superior talk to one another through his medium. The superior works as a hub of a wheel.
Example :- A is the superior and B, C, D and E are the subordinates. All the four subordinates communicate through the medium of A.
3. Circular Communication: This communication takes place among the members of a group. Every member of a group can communicate with the nearest two members.
Example :- A can have communication with B and E. Similarly, B can have communication with A and C. The same applies to all the members of the group. In this case the communication moves at a slow speed.
4. Free Flow Communication: This form of communication also takes place among the different members of the group. Its special feature is that every member of the group can talk to all the other people in the group.
Example :- A can talk directly to B, C, D, E. In the same way B can talk directly to A, C, D, and E. The same applies to all the members of the group. In this case, the communication moves at a rapid pace.
5. Inverted ‘V’ Communication: In this form of communication, a subordinate is permitted to communicate with the boss of his boss. In this form of communication the messages move at a rapid speed,
Example :- C and D are the subordinate of B who, in turn, is a subordinate of A. Here C and D can talk directly to A who happens to be the boss of B.
1. Single strand Network :- a person communicates with the other in sequence
2. Gossip Network :- a person communicate with all on non-selective basis.
3. Probability Network :- a person communicates randomly with other.
4. Cluster Network :- a person communicates with only those people whom he/she trust.
Barrier To Communication In The Organisation
✔ Badly expressed massage
✔ Symbols with different meanings
✔ Faulty translations
✔ Un clarified assumptions
✔ Technical jargon
✔ Body language and gesture decoding
✔ Organisational Barriers
✔ Rules and regulations
✔ Complexity in organisation structure
✔ Organisational facilities
✔ Premature evaluation
✔ Lack of attention
✔ Loss by transmission and poor retention
✔ Fear of challenge to authority
✔ Lack of confidence of superior on his subordinates
✔ Unwillingness to communicate
✔ Lack of proper incentives
Ways of Improving Communication Effectiveness
✔ Clarifying the ideas before communication
✔ Communicate according to the needs of receiver
✔ Consult others before communicating
✔ Be aware of languages, tone and content of message
✔ Convey things of help and value to listeners
✔ Ensure proper feedback
✔ Follow up communications
✔ Be a good listener
Case Study Directing Class 12 Business Studies
Question. Prateek is working in a multinational company in Noida. He was running a temperature for the last many days. When his blood was tested, he was found to be positive for malaria. He was admitted in a hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek. When the General Manager came to know about it, he ordered for fumigation in the company premises and cleaning the surroundings.
• From the above paragraph, quote lines that indicate formal and informal communication.
• State any two features of informal communication.
• Identify any two values that are being communicated to society in the above case.
Ans. • Informal communication: “One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek.”
• Formal communication: “When the general manger came to know about it, he ordered for fumigation in the company premises and cleaning surroundings.”
• The features of informal communication are as follows:
✔ The grapevine/ informal communication spreads very fast and sometimes gets distorted.
✔ It is very difficult to detect the source of such communication.
✔ The two values that are being communicated to the society are:
Question. Mr. Shubhendu Bose is the owner of Bikmac Enterprises carrying on the business of manufacturing various kinds of biscuits. There was a lot of discontentment in the organisation and the targets were not being met. He asked his son, Naval, who had recently completed his MBA, to find out the reason. Naval found that all the decision-making of the enterprise were in the hands of his father. His father didn’t believe in his employees. As a result, both the employer and the employees were not able to understand each others’ messages in the same sense. Thus, the employees were not happy and targets were not met.
• Identify any two communication barriers because of which Bikmac Enterprises was not able to achieve its target.
• State one more barrier each of the types identified in (1) above.
Ans. • The two communication barriers because of which Bikmac Enterprises was not able to achieve its targets are:
✔ Organisational barriers: If the organisational policy, is not supportive to free flow of communication, it may hamper effectiveness of communications. Like in the above case Naval found that all the decision making power of the organisation was highly centralised as it was in hands of his father only.
✔ Psychological barriers: Distrust :- Sometimes if there is lack of trust between the parties, they cannot understand each other’s message in the same sense. Like in the above case Naval found out that his father didn’t believe in his employees.
• Organisational barriers:
✔ Status: Sometimes a status conscious manager also may not allow his subordinates to express their feelings freely. This kind of an attitude may create psychological distance between him and his subordinates.
✔ Psychological barriers: Premature evaluation: Sometimes people tend to evaluate the meaning of message even before the sender completes his message on the basis of their own judgement, experience etc.
Question. Mr. Fernandes is the owner of Unibie Enterprises, carrying on the business of manufactur¬ing electrical appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son, Michel, who has recently completed his MBA to find out the reason. Michel found that all the decision-making of the enterprise were in the hands of his father. Moreover, his father did not have confidence in the competency of the employees. Thus, the employees were not happy.
✔ Identify any two communication barriers because of which Unibie Enterprise was not able to achieve its target.
✔ State one more barrier each of the types identified in part (1) above.
Ans. The two communication barriers because of which Bikmac Enterprises was not able to achieve its targets are:
• Organisational barriers: If the organisational policy, is not supportive to free flow of communication, it may hamper effectiveness of communications. Like in the above case Michel found that all the decision making power of the organisation was highly centralised as it was in hands of his father only.
• Personal barriers: :- Lack of confidence of superior in the subordinate: The personal factors of both sender and receive may exert influence on effective communication and they may not be able to understand each other’s message in the same sense. Like in the above case Michel found out that his father didn’t have confidence in the competency of the employees.
• Organisational barriers: Status: Sometimes a status conscious manager also may not allow his subordinates to express their feelings freely. This kind of an attitude may create psychological distance between him and his subordinates.
• Personal barriers: :- Pear of challenge to authority: If a superior may withhold or suppress the communication that he may perceive is likely to have an adverse affect on his authority.
Question. 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.
1. Identify the communication barrier discussed above.
2. State the category of this communication barrier.
3. Explain any other communication barriers of the same category.
Ans. 1. The communication barrier discussed in the above paragraph is Lack of proper incentives
2. It is a type of personal barrier.
3. Some of the types of personal barriers are described below:
Fear of challenge to authority: If a superior may withhold or suppress the communication which he perceives is likely to adversely affect his authority..
Lack of confidence of superior on his subordinates: A superior may not seek the advice or opinions of their subordinates if he / she do not have confidence on their competency.
Unwillingness to communicate: Sometimes, subordinates may deliberately with hold any communication with their superiors, if they perceive that it may adversely affect their personal interests.
Question. Neeraj, a sales representative of Omida. Ltd. has changed seven jobs in the last one year. He is a hardworking person but is not able to finalise deals with customers due to his inadequate vocabulary and omission of needed words. Sometimes, he uses wrong words because of which the intended meaning is not conveyed. All this creates a misunderstandings between him and his clients.
1. Identify the communication barrier discussed above.
2. State the category of this communication barrier.
3. Explain any other communication barriers of the same category.
Ans. 1. The communication barrier discussed above is badly expressed message.
2. This kind of barrier falls in the category of semantic barriers.
3. Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions. A few of these are discussed below:
• Symbols with different meanings: Sometimes, a word may have several meanings. The communication will be effective only if the receiver perceives it in the same manner as intended by communicator.
• Faulty translations: Many a times it has been noted that if the translato
• Technical jargon: It is usually seen that specialists use technical jargon while explaining something. If the persons with whom they are communicating are not specialists in the concerned field, they may not be able to understand the actual meaning of many such words.
• Body language and gesture decoding: While speaking, one may tend to move his/her body in a certain manner. If there is no match between what is said and what is expressed in body movements, communications may be wrongly perceived by the receiver
Question. Pramod was a supervisor at ‘Annapurna Aata’ factory. The factory was producing 200 quintals of aata every day. His job was to make sure that the work went on smoothly and there was no interruption in production. He was a good leader who would give orders only after consulting his subordinates and work-out the policies with the acceptance of the group. Identify and describe the leadership style being adopted by Pramod.
Ans. As a supervisor of ‘Annapurna Atta/ Pramod has adopted the democratic style of leadership. Democratic leadership is also known as participative leadership. In this type of leadership style, the members of the group take a more participative role in the decision-making process. Everyone is given the opportunity to participate, ideas are exchanged freely, and discussion is encouraged. It is one of the most effective style of leadership and leads to higher productivity, better contributions from group members, and increased group morale.