Solution

DIRECTING

Class 12 - Business Studies

1. Communication that takes place without following the formal lines of communication is said to be informal communication .
Informal system of communication is generally referred to as the 'grapevine' because it spreads throughout the organisation with
its branches going out in all directions in utter disregard to the levels of authority.
2. 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. He must identify the needs and requirements of the workers.
Motivation helps to change negative attitudes of the employee to positive attitudes to achieve organizational goals. Proper
motivation satisfies the need of employees and employees then devote all their energies for optimum performance in their work.
3. (1) Clarify Ideas before Communication:
The person sending the communication should be very clear in his mind about what he wants to say. He should know the objective
of his message and, therefore, he should arrange his thoughts in a proper order.
(2) Communicate According to the Need of the Receiver:
The sender of the communication should prepare the structure of the message not according to his own level or ability but he

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should keep in mind the level, understanding or the environment of the receiver.

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(3) Consult Others before Communication:
At the time of planning the communication, suggestions should be invited from all the persons concerned. Its main advantage will

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be that all those people who are consulted at the time of preparing the communication plan will contribute to the success of the
communication system.
4. The act of watching a person or activity and making certain that everything is done correctly, safely is called Supervision. A
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person who performs supervision is a "Supervisor". It means overseeing what is being done by subordinates and giving
instructions to ensure optimum utilisation of resources and achievement of work targets.
5. i. Recognition.
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ii. Recognition means acknowledgement with a show of appreciation. When the efficiency and innovation of an employee are
recognised, he feels motivated to perform and work at a higher level. Following are the examples of employee recognition:
a. Rewarding the employee
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b. Issuing certificate for best performance

c. Displaying on the notice board about the achievement of the employee.
6. Directing is the process of instructing, guiding, controlling, motivating and leading people in the organisation to achieve its
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objectives. It is concerned with influencing the behaviour of human resources.

The three points that highlight the importance of directing function of management are:
i. Initiates action: Direction sets an organisation into motion. Through directing, other managerial functions are initiated and
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activated. Directing helps the management to supervise, communicate, lead and motivate people at work to function in the
desired way for achieving organisational goals.
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 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.
7. a. Two specific barriers to communication in Lakhans e-mail were:
i. Faulty translations: Message when communicated should be precise and easy to understand, that makes it easy for the
receiver to grasp the information conveyed.
ii. Technical jargon: Language barriers also arise when the sender of the message is speaking in technical terms while the
receiver is unaware of the terms. It creates confusion and misunderstanding between the sender and receiver by acting as a
barrier to effective communication.
b. Measures to overcome communication barriers: (Any two)
i. Lakhan should communicate according to the needs, education and understanding levels of subordinates.
ii. He should take a proper feedback to improve the communication process and make it more responsive.
iii. He should regularly follow up communication and review the instructions given to subordinates.

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 iv. He should be aware of languages, tone and content of the message to make it understandable to the receiver.
8. Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of
motivation may not have uniform effect on all the members.
9. Democratic or participative leadership: A democratic leader encourages participation, relies on subordinates' knowledge and
expertise for the completion of tasks and depends on subordination respect for influence.
10. a. Functions of management.
i. Planning: “The decision taken first of all is ..... who will do it.”
ii. Organisation: “After this the Division of work ..... Chart is ready.”
iii. Staffing: “Soon after this . . . filled up with people.”
b. Directing
11. Supervisor maintains day-to-day contact with workers. He is the link between workers and management. His role is to monitor
and instruct the activities of employees from over and above. The supervisor occupies a strategic position in the organisation. He
represents management’s ideas, thoughts and desires to the operative workers and conveys workers’ attitudes and opinions to the
top management. Thus, we can say that the performance of an organisation depends on how supervisor instructs and guides the
subordinates.
12. The three advantages of democratic leadership are:

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1. Morale.

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2. Creation of more efficiency and productivity.
3. Availability of sufficient time for constructive work.
The three disadvantages of democratic leadership are:

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1. A requirement of educated subordinates.
2. Delay in decisions.
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3. Lack of responsibility and managers.
13. The various leadership styles are as follows: (i)Autocratic leadership style: This style is also known as leader centered style. The
leader keeps all the authority and employees have to perform the work exactly as per his order. He does not decentralize his
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authority. The responsibility of the success or the failure of the management remains with the manager.
(ii)Laissez-faire leadership style: This style as leadership is also known as free brain leadership or individual centered style. The
manger takes little interest in managerial functions and the sub ordinates are left on their own. Manager explains over all
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objectives; help sub- ordinates in determining their own objectives. They provide resources. They also advise the employees.
(iii)Democratic leadership: This style is also known as group centered leadership style. Managerial decisions are not taken by the
manager in consultation with employees. This leadership style is based on decentralization. Managers respect the suggestions
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made by his subordinates.

14. i. The communication barrier discussed is "Lack of proper incentives".
ii. Personal barrier to communication.
iii. Fear of challenge to the authority: There is a fear in the minds of the superiors that if they will not perform in line with their
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authority, they will be demoted to the lower levels. And, thus in order to maintain their level they intentionally hide their
weaknesses by not communicating their ideas to others.
15. i. The incentive offered to the employees is “Co-partnership/Stock option”.
ii. Retirement benefits: Retirement benefits like gratuity, pension, provident fund, leave encashment, etc. provide financial
security to the employees post their retirement. Thus, they work properly when they are in service. These incentives plays
important role in motivating employees and also provide them security and safety for their future.
16. (i) Positive motivation makes people willing to do their in the best way they can and improve their performance. Positive
motivations offer some reward to people to act in the desired manner like increase in pay, promotion, recognition etc.
(ii) Negative motivation means the act of forcing employees to work by means of threats and punishment. Sometimes must
initiates some against employees with a view to discouraging them understand behavior and encouraging positive behavior like
punishment, stopping increments, threatening etc.
17. Features of directing function of management:
i. Directing Initiates Action: Other functions prepare a base or setting of an action, i. e. how the action has to be carried on the
directing initiate or start an action.
ii. Continuing Function: Directing is a continuous process. A manager cannot just rest after issuing orders and instructions.
iii. Directing takes place at every level: Directing is a pervasive function as it is performed by managers at all levels and in all
locations.

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18. Free-rein Style of Leadership: This style involves complete delegation of authority so that subordinates themselves take
decision. In this style, leader avoids power. He serves only as a contact to bring information and resources needed by the
subordinates.
19. (i) Supervision
(ii) Motivation
(iii) Leadership
20. Financial incentives refer to incentives which are in direct monetary form and serves to motivate people for better performance.
Two financial incentives are:
i. Pay and allowances: Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowance and
other allowances.
ii. Productivity linked wage incentives: Many wage incentives are linked with the increase in productivity at individual or
group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50
pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.
21. Employee recognition is an element of Non Financial Incentives. Recognition means acknowledgement with a show of
appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform at higher
level. Example- Congratulating the employee for good performance.

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22. Employee Empowerment: Empowerment means giving more autonomy and powers to subordinates. Empowerment makes people
feel that their jobs are important. This feeling contributes positively to the use of skills and talents in the job performance.

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23. Semantic barriers of communication refer to barriers where there is a problem in decoding the message because of factors such as
difficulty in interpretation, wrong translations or wrong use of words. Some semantic barriers are:

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i. Badly expressed message: There may be difficulty in expressing the information because of poor vocabulary or wrong use of
words.
ii. Symbols with different meanings: Sometimes, a single word may have many different meanings. In such cases, it may be
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difficult for the receiver to interpret the intended meaning of the word.
iii. Faulty translations: Sometimes, it may happen that there is a language barrier between workers such that the level of
proficiency of a language may be different for the two.
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24. The three organisational barriers to communication are explained as follows:
i. Organisational policy: If organisational policy does not support free flow of information, it may result in barriers, e.g. in a
centralised organisation, most of the information remains at top level only. People at lower level may not be able to
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communicate freely in centralised organisation.

ii. Complex organisation: When the information passes through various levels then it can lead to screening or filtering of
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information at different levels, e.g while giving the feedback, the subordinates filter all their negative points and highlight only
their positive side.
iii. Status: Sometimes the people working at higher level don't believe in the information supplied by lower level employees as
they are apprehensive about their ability.
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25. Motivation is defined as the energy or the force that stimulates a person to act towards the fulfilment of one's desired goal. Before
one can achieve a deeper understanding of motivation, one must be able to gain knowledge of its basic process and the elements
involved in it.

26. The three measures to overcome the communication barriers are:

i. Clarify the Ideas before Communication: Any issue to be communicated to a subordinate should be clearly and completely
studied and analyzed by the superior. Moreover, it should be stated in such a manner that subordinate can easily understand it
in the same sense in which the supervisor wants him to receive it.
ii. Be aware of languages, tone and content of message: Language, tone and content of the message should be so adjusted
according to the situation that it is easily understood by the receiver and stimulates them.
iii. Convey things of help and value to listeners: To get a good response from the subordinates, it should be ensured that the
message relates to their interests.
27. a. The incentive provided by Goodcare Hospitals is Employee Recognition Programme which is a non-financial incentive to
motivate the employees.
b. Social and Esteem Needs are satisfied by using the incentive.

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28. i. Financial Incentive: Co-Partnership/Stock Option: Under these incentive schemes, employees are offered company shares at a
set price which is lower than the market price. Sometimes, management may allot shares in line of various incentives payable
in cash. The allotment of shares creates a feeling of ownership to the employees and makes them contribute to the growth of
the organisation.
ii. Other Financial Incentives:
a. Pay and Allowances: For every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance
and other allowances. Salary system consists of regular increments in the pay every year and enhancement of allowances
from time-to-time. In some business organisations, pay hike and increments may be linked to the performance.
b. Productivity linked Wage incentives: Several wage incentive plans aim at linking payment of wages to increase in the
productivity at individual or group level.
29. i. Informal communication is casual communication between coworkers in the workplace. It is unofficial in nature and is based
in the informal, social relationships that are formed in a workplace outside of the normal hierarchy of business structure. From
the above example: "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."
ii. Formal communication: Formal communication refers to the interchange of information officially. The flow of communication
is controlled and is a deliberate effort. This makes it possible for the information to reach the desired place without any

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hindrance, at a little cost and in a proper way. From the above example: "When the general manager came to know about it, he
ordered for fumigation in the company premises and cleaning surroundings."

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iii. The features of informal communication are as follows:
a. The grapevine/ informal communication spreads very fast and sometimes gets distorted.
b. It is very difficult to detect the source of such communication.
30. i. The democratic style of leadership is adopted by Yash. Democratic leadership or I would say participative leadership, is a type
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of management style in which 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. While the democratic process
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tends to focus on group equality and the free flow of ideas, the lead of the group is still there to offer guidance and control. A
democratic leader encourages his subordinates to participate in the process of decision making. Thereby, the manager is able
to motivate his subordinates to perform their best, as they themselves have set the goals.
"A sales target is pre-determined for each month which is mutually agreed by both Yash and his sales team."
ii. Employee participation is the type of non financial incentive that is being offered to the salesmen by seeking their
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involvement in deciding the monthly targets of the firm. Employee participation is the process whereby employees are
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involved in decision-making processes, rather than simply acting on orders. Employee participation is part of a process of
empowerment in the workplace.
31. Motivation is a goal-oriented characteristic that helps a person achieve his objectives. It pushes an individual to work hard at
achieving his or her goals. An executive must have the right leadership traits to influence motivation. However, there is no
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specific blueprint for motivation.

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As a leader, one should keep an open perspective on human nature. Knowing different needs of subordinates will certainly make
the decision-making process easier.
Both an employee as well as manager must possess leadership and motivational traits. An effective leader must have a thorough
knowledge of motivational factors for others. He must understand the basic needs of employees, peers and his superiors.
Leadership is used as a means of motivating others.
32. Employees also have non-monetary needs be it psychological, emotional or social. They need to fulfil these needs within the job
or else they may leave it for better opportunities elsewhere.
​The two incentives used by Sadaf to motivate the employees of her company are:
i. Career Advancement Opportunity - Every individual wants to grow to the higher level in the organisation. 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.
Promotion works as a tonic and encourages employees to exhibit improved performance.
ii. Job Enrichment Job enrichment is concerned with designing jobs that include:
greater variety of work content requiring higher level of knowledge and skill;
give workers more autonomy and responsibility; and
provide the opportunity for personal growth and a meaningful work experience.
If jobs are enriched and made interesting, the job itself becomes a source of motivation to the individual.

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33. i. Incentive provided by Mohan is “Employee Recognition”.

ii. It is a Non-financial Incentive.

iii. Two other incentives in the same category are:

a. Status: With reference to an organization, status refers to the position in the hierarchy of the organizational chart. The
level of authority, responsibility, recognition, salary, perks, etc. determine the status of an employee in the organization. A
person at the top level management has more authority, responsibility, recognition and salary and vice-versa. Status
satisfies the self-esteem and psychological needs of an individual and in turn, motivates him to work hard.

b. Employee participation: It is concerned with involving employees in the decision making process on issue concerned
with them. In simple words, employee participation has been considered a good technique for motivation. Employees feel
motivated when they are asked to give suggestions in their field of activity.

34. The incentive offered to employees was Job Security and it is one of the non-financial incentives. Employees also have non-
monetary needs be it psychological, emotional or social. They need to fulfil these needs within the job or else they may leave it for
better opportunities elsewhere.
Job Security : Employees want their job to be secure. They want certain stability about future income and work so that they do not

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feel worried on these aspects and work with greater zeal.

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The other two incentives in the same category are as follows:
i. Status: In the organisational context, status means ranking of positions in the organisation. Psychological, social and esteem

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needs of an individual are satisfied by status given to their job.
ii. Career Advancement opportunity: Every individual wants to grow to the higher level in the organisation. Managers should
provide opportunity to employees to improve their skill and be promoted to the higher level jobs.
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35. a. Motivation is an important factor that encourages persons to give their best performance and help in reaching enterprise goals.
A strong positive motivation will enable the increased output of employees but a negative motivation will reduce their
performance. A key element in personnel management is motivation.
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b. The measures used to motivate the employees to improve performance are known as incentives. These incentives may be
broadly classified as financial and non-financial.
c. Job Enrichment is the type of non-financial incentive being offered to Priyank. It refers to the designing of jobs in such a way
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that it involves a higher level of knowledge and skill, a variety of work content, more autonomy and responsibility of
employees, meaningful work experience and more opportunities of growth. When the job is interesting, it itself serves as a
source of motivation.
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36. The type of incentive offered to the employees is Co-partnership.

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 will work with great
zeal. All types of such incentives are measured in monetary terms. By offering such incentives, the company motivates its
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people to improve the performance.

ii. Bonus: It is a sum of money offered to an employee over and above the salary or wages as a reward for his good performance.
It is an incentive offered over and above salary/ wages 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 reduced.
37. a. Two-way process of reaching mutual understanding in which participants not only exchange (encode-decode) information,
news, ideas and feelings but also create and share meaning. In general, communication is a means of connecting people or
places. In business, it is a key function of management--an organization cannot operate without communication between
levels, departments and employees. See also communications.
b. Semantic barrier is being referred to in the above paragraph.
c. The four measures by which he can improve his communication effectiveness are suggested below:
i. Establish Trust: Raj should adjust his communication according to the education and understanding levels of his
subordinates.
ii. Speak Clearly and Concisely: The contents of the message, tone, and language used and the manner in which the
message is to be communicated are the important aspects of effective communication.
iii. Recognize Problems in Communication: He may ensure the success of communication by asking questions regarding
the message conveyed. Thus the communication process may be improved by the feedback received to ensure that the

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 workers have understood his ideas clearly.
iv. Learn How to Use Tone and Body Language​​: He should do a regular follow up and review on the instructions given to
the workers. Such followup measures help in removing hurdles, if any, in implementing the instructions.
38. Following table shows the distinction between authoritative and democratic leadership styles:
Basis of
Authoritative Style Democratic Style
Distinction
Decision- A leader is himself the sole decision-maker and A leader draws ideas and suggestions from his
making decisionmaking is one man show. subordinates before decisionmaking.
It is based on one-way communication i.e. implicit It is based on two-way communication i.e., interchange
Communication
obedience from the group. of ideas.
A leader uses threats of punishment and penalty for A leader relies heavily on non-financial incentives viz.
Motivation
motivation. prestige, status etc.
39. Job Enrichment - t refers to the designing of jobs in such a way that it involves a higher level of knowledge and skill, a variety of
work content, more autonomy and responsibility of employees, meaningful work experience and more opportunities of growth.
When the job is interesting, it itself serves as a source of motivation.

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Employee Participation - Employee participation is the process whereby employees are involved in decision-making processes,

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rather than simply acting on orders. Employee participation is part of a process of empowerment in the workplace. Involving the
employees in decision making regarding the issues related to them such as canteen committees, work committees, etc. also helps
in motivating them and inducing a sense of belongingness in them.
40. Ayasha Ltd offered non-financial incentive i.e. 'job security'.
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i. 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
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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.
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b. Installing awards or certificates for best performance, etc.

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c. Displaying the achievement of an employer on a notice board or company newsletter.

d. Distributing moments and complimentaries like T-shirts, etc.
41. There are some barriers in communication which are concerned with organizational structure and rules and regulations. Three
such barriers are:
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1. Organizational policy: The effectiveness of communication is affected, if the organizational policy does not provide for free
flow of communication. For example, subordinates may not be encouraged to have free communication if an organization is
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following highly centralized pattern.

2. Rules and regulations: Rigid rules, regulations and procedures may be hurdle to effective communication. For example,
communications through prescribed channel may result in delays.
3. Status: Status or position in the hierarchy of an organization is one of the fundamental barriers that obstructs free flow of
information. Communication among superiors belonging to different status & position is rather difficult. A status conscious
superior may not allow his subordinates to express their feelings freely.
42. 1. The physiological needs and safety needs of Rahim are being satisfied by the offer of the company.
i. Physiological Needs
The basic physiological needs are probably fairly apparent—these include the things that are vital to our survival. Some examples
of the physiological needs include:
Food
Water
Breathing
Homeostasis
In addition to the basic requirements of nutrition, air and temperature regulation, the physiological needs also include such things
as shelter and clothing.
ii. Security and Safety Needs

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 As we move up to the second level of Maslow’s hierarchy of needs, the requirements start to become a bit more complex. At this
level, the needs for security and safety become primary. People want control and order in their lives, so this need for safety and
security contributes largely to behaviors at this level.
Some of the basic security and safety needs include:
Financial security
Heath and wellness
Safety against accidents and injury
Finding a job, obtaining health insurance and health care, contributing money to a savings account, and moving into a safer
neighborhood are all examples of actions motivated by the security and safety needs.
Together, the safety and physiological levels of the hierarchy make up what is often referred to as the basic needs.
2. The other needs of Rahim followed by the physiological needs and safety needs that still need to be satisfied are as follows:
1. i. Affiliation/ Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. The
organisation, by encouraging cooperative teamwork and by having accessible and kind superiors, can fulfill these needs of its
employees.
2. ii. Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention. The organisation, by
giving praise and recognition when the employees do well, and offering promotions, can fulfill these needs of its employees.

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43. 1. The human need of Reshma as per Maslow's need hierarchy theory of which was affected due to demonetisation is described
below:

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Physiological Needs
The basic physiological needs are probably fairly apparent—these include the things that are vital to our survival. Some examples

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of the physiological needs include:
• Food
• Water
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• Breathing
• Homeostasis
In addition to the basic requirements of nutrition, air and temperature regulation, the physiological needs also include such things
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as shelter and clothing.
2. Both monetary and non-monetary incentive were being provided to the bank employees for assuming their responsibility
diligently.
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44. The communication used by David and Jhonson is "Informal Communication".

The two limitations of Informal Communication are:
i. Unreliable information: Information received through informal communication is not reliable and It is not easy to locate the
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source of informal communication. On the basis of informal communication any important decision can not be taken.
ii. No responsibility and leakage of information: In informal communication responsibility for misleading facts cannot be
pinpointed. Important information of an organization through informal communication may leak out which can be harmful for
the organization.
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45. 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.
The distinct features of motivation are:
i. Motivation is a phychological phenomenon: It is a personal and internal feeling like an urge, drives, desires and aspirations
of a human being, which influence human behaviour.
ii. 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.
iii. Motivation is a complex process: As the individuals are heterogeneous in then expectations, perceptions and reactions.
Motivation being an internal feeling cannot be observed directly. Since motives themselves are dynamic, it further adds to
complexity.
iv. Goal directed behaviour: Motivation inspires an employee to achieve goals. Thus, it encourages goal directed behaviour.
46. The factor which acts as a communication barrier is Psychological factor. Psychological barrier acts as a communication barrier
here.
The three other psychological barriers to communication are:

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 i. Premature evaluation: Some people have the tendency to form a judgment before listening to the entire message. This is
known as 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. 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.
iii. 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.
47. a. Directing and Controlling are the two functions of management being described in the above paragraph.
b. Both positive and negative motivation is being provided to the member-sisters. Directing refers to a process or technique of
instructing, guiding, inspiring, counselling, overseeing and leading people towards the accomplishment of organizational goals. It
is a continuous managerial process that goes on throughout the life of the organization. Controlling is one of the important
functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over
the activities of the subordinates. In other words, the meaning of controlling function can be defined as ensuring that activities in
an organization are performed as per the plans. Controlling also ensures that an organization’s resources are being used effectively
& efficiently for the achievement of predetermined goals.

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c. The various types of incentives being provided to member-sisters are stated below:
i. Bonus - financial incentive: A bonus is a payment an employer makes to employees in addition to their basic salaries. Bonuses

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typically occur once per year, per month, or per quarter.
ii. Employee Recognition - non-financial incentive: Recognition means acknowledgment and appreciation of work done by

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employees. Recognition in the organization boosts their self-esteem and they feel motivated.
48. Directing is telling people what to do and seeing that they do it to the best of their ability. It includes explaining procedures,
making assignment, seeing their mistakes are corrected, providing on the job instructions and issuing orders. All other functions of
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management such as planning, organizing, and staffing have no importance without directing. Leadership, motivation,
supervision, communication are various aspects of directing.
Importance of Directing: -
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1. It initiates action.
2. It integrates employees’ efforts
3. It creates balance in the organization
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4. It is the means of motivation

5. It facilitates implementing changes.
49. Directing is a continuous process.
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Two more characteristics are;

1. Efficient Utilization of Resources - Direction finance helps in clarifying the role of every subordinate towards his work. The
resources can be utilized properly only when less of wastages, duplication of efforts, overlapping of performances, etc. doesn’t
take place. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the
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instructions and motivation skill to inspire the subordinates. This helps in maximum possible utilization of resources of men,
machine, materials and money which helps in reducing costs and increasing profits.
2.It Initiates Actions - Directions is the function which is the starting point of the work performance of subordinates. It is from this
function the action takes place, subordinates understand their jobs and do according to the instructions laid. Whatever are plans
laid, can be implemented only once the actual work starts. It is there that direction becomes beneficial.
50. Formal Communication: Formal communication flows through official channels designed in the organisation chart. This
communication may take place between a superior and subordinate, a subordinate and superior or among same level employees.
The communication may be oral or written but generally written communication is preferred. Formal communication may be
further classified as - Vertical and Horizontal.
Informal Communication: Communication that takes place without following the formal lines of communication is said to be
informal communication. Informal system of communication is generally referred to as the 'grapevine' because it spreads
throughout the organisation with its branches going out in all direction in utter disregard to the levels of authority.
51. The following table shows the distinction between monetary and non-monetary incentives:
Basis of
Monetary Incentives Non-monetary Incentives
Distinction

Meaning Monetary incentives mean rewards in monetary Non-monetary incentives mean rewards in the form of social

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 form. and psychological attractions.

Needs These satisfy lower level needs. These satisfy higher level needs.

Nature These are tangible. These are intangible.

These have a direct influence on employees'

Influence These have an indirect influence on employees' performance.
performance.

These are suitable for employees working at

Suitability These are suitable for employees working at higher levels.
lower levels of management.

52.
i. The style used by Sandhya which is based on the use of authority is the Democratic style of leadership. Democratic leadership or
I would say participative leadership, is a type of management style in which 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. While the democratic process tends to focus on group equality and the free flow of ideas, the lead of the group is still
there to offer guidance and control.
ii. The two positive aspects of informal communication are stated below:
a. Fast and Effective Communication: Under this communication, the messages move fast and their effect is equally great on the
people.

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b. Free Environment: Informal communication is done in a free environment. Free environment means that there is no pressure of

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any office-big or small. The reactions of the employees can easily be collected.
53. Following table shows the distinction between democratic style and laissez-faire style leadership:

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Basis of
Democratic Style Laissez-faire Style
Distinction

Decision- A leader makes a decision through maximum Leader depends entirely on his subordinates to make their
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making participation of subordinates. own decisions.

Role of a A leader's job is that of supplier of information and

A leader's job is largely that of a moderator.
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leader resources needed by the subordinates.

Nature It is "We" style. It is "You" style.

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Individual
There is a limited scope of individual initiative. There is an unlimited scope of individual initiative.
initiative

54. a. Here one of the elements of Directing Function of Management, Motivation has been described.
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b. In my view, the Personnel Manager might have suggested the Motivating Method of Organisational Climate.
Organisational Climate: Organisational climate means the working system within the organisation. This includes individual
freedom, receipt of awards, the importance of employees, etc. Every person likes to work in a better organisational climate.
The manager can motivate the employees by providing a better organisational environment.
Ed

c. Motivating employees.
55. Directing is the function of management which is concerned with instructing, guiding, counselling, motivating and leading people
in the organisation to achieve its objectives. Directing is defined as that management function that provides the guidance and
direction to the employees of the organisation that enables them to perform effectively and efficiently for the development of the
organisation.
Two features of Directing are as follows:
i. Directing initiates action: Directing is a key managerial function. A manager has to perform this function along with planning,
organising, staffing and controlling while discharging his duties in the organisation. While other functions prepare a setting for
action, directing initiates action in the organisation.
ii. Directing takes place at every level of management: Every manager, from top executive to supervisor performs the function of
directing. The directing takes place wherevercsuperior-subordinate relations exist.
56. Direction is an aspect of management that deals directly with influencing, guiding, supervising, and motivating staff for the
achievement of organizational goals. Directing is defined as that management function that provides the guidance and direction to
the employees of the organisation that enables them to perform effectively and efficiently for the development of the organisation.
Following are the elements of directing:

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 i. Supervision: It refers to monitor the progress of routine work of one’s subordinates and guiding them properly. Supervision is
an important element of the directing function of management. Supervision has an important feature that face-to-face contact
between supervisor and his subordinate is a must.
ii. Communication: It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him
understand them. A manager has to continuously tell his subordinates about what to do, how to do, and when to do various
things. Also, it is very essential to know their reactions. To do all this, it becomes essential to develop effective
telecommunication facilities. Communication by developing mutual understanding inculcates a sense of cooperation which
builds an environment of coordination in the organisation.
iii. Leadership: It refers to influence others in such a manner to do work what the leader wants them to do. Leadership plays an
important role in directing. Only through this quality, a manager can inculcate trust and zeal among his subordinates.
iv. Motivation: It refers to that process which excites people to work for attainment of desired objective. Among the various
factors of production, it is only the human factor which is dynamic and provides mobility to other physical resources. If
human resource goes static then other resources automatically turn immobile. Thus, it becomes essential to motivate human
resource to keep them dynamic, aware and eager to perform their duty. Both monetary and non-monetary incentives are given
to employees for motivation.
57. Leadership: Leadership is that element of directing that involves motivation and persuasion in order to achieve the desired goals.

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A leader is defined as a person who is able to influence other people and inspires them to follow the instructions provided.
Features of Leadership

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Influence the behaviour of others: Leadership is an ability of an individual to influence the behaviour of other
employees in the organization to achieve a common purpose or goal so that they are willingly co-operating with each other

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for the fulfillment of the same.
Inter-personal process: It is an interpersonal process between the leader and the followers. The relationship between the
leader and the followers decides how efficiently and effectively the targets of the organization would be met.
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Attainment of common organizational goals: The purpose of leadership is to guide the people in an organization to
work towards the attainment of common organizational goals. The leader brings the people and their efforts together to
achieve common goals.
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Continuous process: Leadership is a continuous process. A leader has to guide his employees every time and also
monitor them in order to make sure that their efforts are going in the same direction and that they are not deviating from
their goals.
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58. "Managerial functions cannot be carried out without an efficient system of communication". Yes, I do agree with this statement.
Efficient system of communication is required because of following reasons:
i. Acts as basis of coordination: Communication acts as basis of coordination. It plays an important role in developing the
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coordination among departments, various activities and employees in the organization. This coordination is possibly only
through effective communication, which is helpful in exchanging ideas, information, facts and opinions etc. Organizational
goals can be achieved effectively and efficiently if these goals are clearly clarified to the subordinates and there is mutual
cooperation between departments, activities and people.
Ed

ii. Acts as basis of decision-making: Communication provides information needed for decision-making. In the absence of
effective communication, it may be difficult for the managers to take quick and effective decisions. It gives a practical shape
to the management decisions. Proper and effective communication plays important role in taking right decisions.
iii. Helps in smooth working of an enterprise: An effective communication system serves as a lubricant, fostering the smooth,
efficient and unrestricted functioning of the business organization. All successful organizational interactions depend on
effective communication. Through effective communication managers give clear directions to subordinates for the smooth
functioning of an enterprise. Smooth functioning of an enterprise is possible only when there is no communication gap.
iv. Increases managerial efficiency: Communication helps in increasing the managerial efficiency. Through communication
managers convey instructions, goals and targets to the subordinates and allocate work and responsibility to them and evaluate
their performance. Thus, communication lubricates the entire organization and keeps the organization at work with efficiency.
v. Promotes cooperation and industrial peace: Through two-way communication process managers try to develop mutual
understanding between management and employees. Effective communication plays important role in developing the mutual
cooperation and industrial peace.
59. We do not agree with the statement that human beings can be motivated only through monetary or cash incentives. Human beings
can also be motivated by non-monetary incentives. Non-monetary incentives have a distinct and significant role in motivating
employees who are not satisfied with money alone. Non-monetary incentives include all social and psychological attractions by
which workers are encouraged to accomplish the best and work more. Such incentives include job security, recognition,

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 participation in management, pride in the job, promotion, labour welfare, social security measures.
Non-monetary incentives satisfy workers' social and psychological satisfaction. Workers are not always motivated by monetary
gains. Therefore, in any programme to increase production, management should offer monetary as well as non-monetary
incentives to the workers.
60. a. The function of Management discussed in the above para is directing.
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to
achieve its objectives. Directing is defined as that management function that provides the guidance and direction to the
employees of the organisation that enables them to perform effectively and efficiently for the development of the organisation.
b. Importance of Directing are as follows:
i. Directing helps to initiate action by people in the organisation towards attainment of desired objectives. For example, if a
Supervisor guides his subordinates and clarifies their doubts in performing a task, it will help the worker to achieve work
targets given to him.
ii. Directing integrates employees-efforts in the organisation in such a way that every individual effort contributes to the
organisational performance. Thus, it ensures that the individuals work for organisational goals. For example, a manager
with good leadership abilities will be in a position to convince the employees working under him that individual team
effort will lead to achievement of organisational goals.

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iii. Directing Facilitates introduction of needed changes in the organisation. Generally, people have a tendency to resist
changes in the organisation. Generally people have a tendency to resist changes in the organisation. Effective directing

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through motivation, communication and leadership helps to reduce such resistance and develop required cooperation in
introducing changes in the organisation.

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61. No, I don’t agree, because a supervisor performs the following functions to achieve organization goals:
a. Planning the work: The supervisor has to determine the work schedule for every job.
b. Issuing orders: Supervisor issues orders to the workers for achieving coordination in his work.
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c. Providing guidance and leadership: The supervisor leads the workers of his department.
d. Make the necessary arrangement for the supply of materials and ensure they are efficiently utilized.
e. Deviations from the target if any are to be rectified at the earliest.
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f. To help the personnel departments in the recruitment and selection of workers.
g. Explains the policies and programmes of the organization to his subordinates and provide guidance.
h. Helping the team understand performance targets and goals.
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i. Training or ensuring that workers are properly trained for their specific roles.
j. Scheduling work hours and shifts.
k. Coordinating job rotation and cross-training.
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l. Providing real-time feedback on worker performance.

62. Laissez-faire leadership style is the style under which a leader depends entirely on his subordinates to establish their own goals
and to make their own decisions. The leader takes the minimum initiative in administration.
Ed

Advantages-
i. It ensures a high level of job satisfaction and morale among subordinates.
ii. Under this style, subordinates are highly creative, self-motivated and require minimum guidance and control.
iii. Subordinates feel more committed to the group goal.
Disadvantages-
i. There may be a lack of coordination which may lead to chaos.
ii. Individual goals may dominate the organisational goals.
iii. It is not appropriate for subordinates who are not well-trained and not highly knowledgeable.
63. Directing as a function of management is quite complex. To help in the directing process, certain principles have been developed.
The following are the principles of directing.
i. Maximum Individual Contribution: This principle emphasises that directing techniques must help every individual in the
organization to contribute to his maximum potential for the achievement of organizational objectives. It should bring out the
untapped energies of employees for the efficiency of the organization.
ii. Harmony of Objectives: Often the objectives of an individual diverge from the overall organizational objectives. For example,
an individual’s focus may be on earning a greater income while the organization aims at increasing the production. In such a
case, directing should work towards converging the individual goals with the goals of the organization.

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 iii. Unity of Command: As per this principle, an individual should receive commands and instructions from only one superior. If a
worker receives orders from more than one superior, it creates confusion and clashes that lead to delay in the work. For
example, the worker might get confused whose order to follow. Moreover, it might also happen that a conflict is created
between the two superiors.
64. Autocratic/Authoritarian leadership
Under this style, leader concentrates all authority in himself, instructs subordinates as to what to do, when to do it; how to do it,
etc. He also exercises close supervision and control over his subordinates. Subordinates are expected to do what they are told.
The autocratic leader accomplishes the results through the use of authority, fear of deprivation, punishment and such other
negative rewards. As it is negative in character, authoritarian approach will succeed only in the short run.

Advantages of Autocratic Leadership:

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i. It provides for quick decision-making because here only one person i.e., the leader takes decisions.
ii. Mostly subordinates like to work under centralized authority and strict supervision.

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iii. As there is no consultation with subordinates, confidential matters can be kept secretly.
iv. Leadership gives strong motivation and satisfaction to the leader who dictates terms.

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v. At lower levels, only less competent subordinates are required.
vi. This style may yield positive outcome if great speed is needed.
65. i. Supervision means instructing, observing, monitoring and guiding the efforts of the subordinates for the achievement of work
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targets in the desired manner. Managers act as supervisors and they ensure that the work is going as per their instructions. It is
the duty of a supervisor to make sure that all instructions are properly followed and the subordinates are doing as they are
instructed.
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ii. Communication is the process of exchange of ideas and information among people to create common understanding. The
purpose of communication in an organisation is to send across any set of instructions, orders or information related to the
improvement of the operational efficiency.
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iii. Motivation means stimulating people to action to accomplish desired goals. For getting the desired outcome, the employees
need to be motivated by the managers which leads to the task being completed efficiently. Motivation is a force that makes an
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individual perform to the best of his abilities in order to complete a set of tasks or instructions.
iv. Leadership is the art or process of influencing people so that they strive willingly and enthusiastically towards the
achievement of group goals. Leadership is that element of directing that involves motivation and persuasion in order to
achieve the desired goals. A leader is defined as a person who is able to influence other people and inspires them to follow the
Ed

instructions provided.
66. a. Social Needs- These needs include affection, acceptance, friendship, sense of belongingness, etc. The organisation satisfies
these needs through informal organisation and cordial relations among employees.
b. Esteem Needs- Esteem needs refer to those needs satisfaction which leads to selfconfidence and prestige. These needs include
the need for self-respect, recognition, autonomy, status, etc. The organisation satisfies these needs by offering challenging
jobs, recognition, providing good job titles, etc.
c. Basic Physiological Needs- In this category, those needs are included which are very essential for survival and maintenance
of human life. Physiological needs are the most basic needs and must be satisfied before all other needs. These needs include
air, water, food, shelter, clothing, sleep and other necessities of life. The organisation satisfies these needs by giving basic
salary to the employees.
67. Leadership is not only an essential component of security management, it is a lost art. Leadership is also an elusive component of
many individual corporate cultures. If a security management recruiting firm specializes in recruiting qualified security
professionals to lead their client companies security function, the security recruiters must select the proper candidates. This blog
post will analyze and interpret the demand I see in today's market for strong security management leaders. Leader is the most
important element of directing because of the following reasons:
i. Influences the behaviour of Employees: Leadership plays important role in influencing the behaviour of employees and
makes them to positively contribute their energies for the benefit of the organization. A good leader plays important role in

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 motivating the people for higher performance and achievement of goals.
ii. Maintains personal relations: Leadership is concerned with maintaining good personal relations. A leader helps in building
the confidence of employees and provides them support and encouragement. This helps in creating healthy working
environment.
iii. Introduces changes: In the dynamic environment of today, frequent changes are required in the structure and working of an
organization. A leader plays important role in introducing required changes in an organization. He also inspires his followers
to accept changes whole heartedly.
iv. Handles conflicts: A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts. A
leader explains the goals and objectives to the followers and plays key role in resolving the conflict arising in the group. A
good leader always allows his followers to ventilate their feelings and disagreement but persuades them by giving suitable
clarifications.
v. Provides training: A good leader always helps his followers and provides them training which help in the smooth functioning
of an organization. Effective leadership results in overall growth and development of individuals.
68. Leadership is defined as personal quality of an individual that influence the behavior of followers. It is an important function of
management. Leadership is an act of influencing people so that the followers follow the path of leader. Leadership is defined as
influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically towards the

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achievement of group work.
The various styles of leadership are as follows:

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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

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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 Add Industries delegates the work to his staff Ms Ritu, Mr Saurabh, Mr Manan, according to his
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discretion. Here Mr Ratan is behaving as an autocratic leader.
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ii. Democratic/Participative leadership: Under this style, leader consults his subordinates in the decision-making process and
Ed

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. Everybody decided to do overtime and complete the task. Here Mr Ratan is behaving as a democratic
leader.
iii. Laissez-faire/Free-rein leadership: Under this style, the leader gives full freedom to the subordinates in setting goals. Such a
leader avoids the 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.
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.

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 iv. Transformational leadership: Transformational leadership is a leadership style that is defined as leadership that creates
valuable and positive change in the followers. A transformational leader focuses on “transforming” others to help each other,
to look out for each other, to be encouraging and harmonious, and to look out for the organization as a whole. In this
leadership, the leader enhances the motivation, morale and performance of his follower group. A person with this leadership
style is a true leader who inspires his or her team with a shared vision of the future. Transformational leaders are highly
visible, and spend a lot of time communicating.
69. 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 is the ranking
of position, rights and duties in the organization. Research indicates the fact that middle and higher level employees prefer
escalations in status to increment in pay. Status satisfies psychological, social and esteem needs of an individual.
ii. Organisation climate: Organisational climate means the working system within the organisation. This includes individual
freedom, receipt of awards, the importance of employees, etc. Every person likes to work in a better organisational climate.
The manager can motivate the employees by providing a better organisational environment. A positive climate serves as an
incentive to improve performance. Supportive relationships, knowledge of work done, healthy competition for superior

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performance, etc are all motivating factors.
iii. Career advancement opportunity: Most of the employees want to explore in then career. Promotion is an important example

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of advancement. Training and development facilities have got to be provided for the promotion of the employees. An
organisation can motivate its employees by providing them opportunities for in-service training and promotion. In other

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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.
70. Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted
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as hierarchical levels within a pyramid proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation". His
theory was based on human needs. He felt that within every human being, there exists a hierarchy of five needs.
i. Basic Physiological needs: Physiological needs are biological requirements for human survival, e.g. air, food, drink, shelter,
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clothing, warmth, sex, sleep. If these needs are not satisfied the human body cannot function optimally. Maslow considered
physiological needs the most important as all the other needs become secondary until these needs are met.
ii. Safety/Security needs: These are the needs connected with the psychological fear of loss of job, property, natural calamities
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or hazards, etc. An employee wants protection from such types of fear. He prefers adequate safety or security in this regard i.e.
protection from physical danger, security of job, pension for old age, insurance cover for life, etc. The safety needs come after
meeting the physiological needs.
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iii. Affiliation/belonging needs: After physiological and safety needs are fulfilled, the third level of human needs is interpersonal
and involves feelings of belongingness. These needs are concerned with; Affection, Sense of belongingness, Acceptance, and
Friendship.
Ed

iv. Esteem needs: All humans have a need to feel respected; this includes the need to have self-esteem and self-respect. In social
needs, the need for belongingness and acceptance plays a dominant role in motivating human behavior. It includes; Self-
respect, Autonomy status, Recognition, and Attention.
v. Self Actualization needs: Maslow describes this level as the desire to accomplish everything that one can, to become the most
that one can be. It is the highest level of need in the hierarchy. It includes; Growth, Self-fulfilment, and achievement of goals.
Maslow’s theory is based on the following assumptions
i. Behaviour of people is based on their needs. Satisfaction of such needs influences their behaviour.
ii. People’s needs arise in hierarchal order, commencing from basic needs and ending at higher level needs.
iii. People can be motivated only by the unfulfilled needs and once a particular need is satisfied, it ceases to be a motivating
factor.
iv. After satisfying the lower level need people move towards the next hierarchal order.
71. The importance of directing highlighted in the above case are as follows:
i. Initiates action: 'He has helped ... through proper directing'.
ii. Guides employees: 'So, he guides his team in such a manner ... towards the achievement of objectives'.
iii. Brings stability and balance in the organisation: 'This has helped him bring cooperation and commitment... a unique
balance between activities and the groups.'

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 iv. Facilitates introduction of change: 'Whenever the subordinates have resisted any change... in making them understood the
value by bringing these changes.'
72. The supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the
organisation. The word supervision is the combination of two words, i.e., supervision where super means over and above and
vision means seeing. Supervision means overseeing what is being done by subordinates and giving instructions to ensure proper
utilisation of resources and achievement of work targets.
A 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.
The functions of supervision are as follows:
i. 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.
ii. Motivation: The supervisor motivates his subordinates by providing financial and non-financial incentives. He inspires them
for higher quality and productivity.
iii. Preserving records: The supervisor keeps records of output and other related aspects of each employee. He sends the
necessary information to the top management.

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iv. 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.

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v. 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

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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.
vi. Liaison between management and workers: The supervisor is an important link between the management and the workers.
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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.
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73. Communication process has the following elements:
i. Message- Message is the content of information intended to be communicated.
ii. Sender- Sender is a person from whom the communication process originates.
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iii. Encoding- Encoding is the process of translating ideas into language (words, symbols or gestures) or code. Message is the
output of encoding process.
iv. Media or channel- It is a medium or route through which the message is passed by the sender. It links the sender with the
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receiver. A channel could take the form of face to face written, telephone, group meetings, letter, radio, television,
memorandums, policy manuals, etc.
v. Receiver- Receiver is the person who is supposed to receive the message. He may be a listener, a reader or an observer.
Ed

vi. Decoding- It means retranslating the message to words, for the purpose of understanding. Thus, it is the conversion of a
received message into thought in order to derive its meaning.
vii. Noise- Noise means anything that hinders communication or transmission and thereby reduces its accuracy or effectiveness.
viii. Feedback- Feedback is the response by the receiver.
Communication process may be shown as under:

74. (i) Directing means giving instructions and guiding people in doing work.
(ii) In the context of management of an organisation, directing refers to the process of instructing, guiding, counselling, motivating
and leading people in the organization to achieve its objective.
Four points of importance of Directing are:
Makes the organisation goal oriented
Planning as we all know lays down goals. But the mere laying down of goals isn’t enough. It is directing in terms of those goals

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 that gets them achieved. It is that process that retains the goal oriented-ness with which the business process begins. If not for
direction the business will proceed in hap hazard manners thereby making all other processes difficult and also making the
business fragile.
Creates a motivated workforce
As already discussed above, motivation acts a sub set of the broader function of direction. Direction ensures that the workforce is
motivated and remains motivated. This is so because the process will be successful only with the effort of motivated people and
motivated people is the secret of a budding effective business. Thus managers pay extra attention to motivating workers while
directing the business.
Initiates Action
Direction is the process that kicks the plan into motion by using the resources organised and humans staffed to achieve what is
envisioned in the plan. It is the stepping stone to carrying out business processes which till then remain only on paper.
It creates adaptability
A business has to cope with constant changes in its environment. Direction plays a key role in ensuring that a business is capable
of adjusting and adapting to such changes by understanding the environment and by relaying suitable information. Such
instructions at the right point of time allows for meeting various contingencies and ensures the business isn’t knocked off its feet.
75. The various types of leadership styles are.

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i. Autocratic Leadership Style
Meaning: It refers to that Leadership style in which the leader tends to run the show all by himself.

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Characteristics:
a. Centralized Authority: In this style, a manager is not prepared to share his authority and responsibility with others.

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Consequently, all the authority of work performance remains centralized.
b. Single-man Decisions: In this style of leadership, the manager himself takes all the decisions. He takes it for granted that
he does not need any other individual.
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ii. Democratic Leadership Style
Meaning: It refers to that leadership style in which the leader consults with his subordinates before making any final decision.
Characteristics:
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a. Cooperative Relations: The chief characteristic of this style is the existence of cooperative relations among the managers
and the employees. Participation in the management decisions gives the employees a feeling of self-respect, as a result of
which the employees are always ready to be cooperative in every way.
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b. Belief in Employees: The managers inherently believe that the employees by nature want to work, do their work with
interest, accept their responsibility and try to perform their work in a good manner. This faith of the managers in the
employees increases their morale.
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iii. Laissez-Faire or Free-Rein Leadership Style

Meaning: It refers to that leadership style in which the leader giver his subordinates complete freedom to make decisions.
Characteristics:
Ed

a. Full Faith in Subordinates: A prominent characteristic of this style is that the managers consider their subordinates
capable, active and responsible individuals and have full faith in them.
b. Independent Decision-making System: In this style, the management-related decisions are taken by the subordinates
instead of the managers. They can, however, consult the managers.

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