Business Studies Class 12 Study Material Chapter 7
Business Studies Class 12 Study Material Chapter 7
DIRECTING
Meaning
Features:
4. Directing flows from top to bottom: It is initiated at the top level and flows
to the bottom through organisational hierarchy.
Importance
1. Initiates Action: It helps to initiate action by the people in the organisation
towards attainment of desired objectives. The employees start working only
when they get instructions and directions from their superiors. It is the
directing function which starts actual work to convert plans into results.
2. Integrates Employee’s Efforts: All the activities of the organisation are
interrelated so it is necessary to coordinate all the activities. It integrates
the activities of subordinates by supervision, guidance and counselling.
Elements of Direction
Supervision Motivation
Elements of
Directing
Leadership Communication
1. Supervision: It means observing the subordinates at work to see that they
are working in accordance with plans and to help them in solving their
problems. The important thing in supervision is that it involves face to face
contact between superiors and subordinates. Supervisor’s position is
immediately above the worker.
Q.1 Mr. Khanna has recently joined an ‘Interior Decoration’ firm after
completing MBA from America. He feels human resources are the most
important resources in the company. So,
(i) It is important to develop mutual understanding amongst them to inculcate
the sense of co-operation and coordination.
(ii) There is a need to monitor their progress and guide them
(iii) They need to be induced and stimulated to act in desired manner.
a) Identify which function of management is referred above.
b) Name the elements of function (in Q.1). (2)
Supervision
Under the guidance of superior the workers follow a fixed or strict time table
and execute the plans in right directions.
The relationship with the supervisor is a very good incentive to improve the
motivation level of the employees while guiding the employees, the
supervisors encourage the subordinates to perform to their best capacities.
Q. Mr. Banerjee keeps on checking the workers at work. He provides “on the
job Training” wherever required. At which post is Mr. Banerjee working?
II. Motivation
Organisational examples
Q.1 Rahul is an engineer in Jacob Ltd. He works very hard and it is observed
by Production Manager. But he never appreciates the efforts of Mr. Rahul.
Name the element of Direction not exercised by production Manager.
Q.2 Zumroo was working as a clerk in Hindustan Ltd. since last three and a half
years. He was working with full diligence. His boss noticed his performance
and gave him “Confirmation letter”. Which kind of Zumroo’s need was
satisfied?
III. Leadership
Features of leadership
Styles of Leadership.
A leader may use all styles over a period of time but one style tends to
predominate as his normal way of using power.
Different types of leadership style are as follows:
An autocratic leader gives orders and insists that they are obeyed. He determines
the policies for the group without consulting them.
He does not give information about future plans but simply tells the group what
immediate steps they must take.
Under this style, all decision making power is centralized in the leader. He does
not give the subordinates any freedom to influence his decisions.
It is like “bossing people around.” This style should normally be used on rare
occasion.
B C D
Democratic leader gives order only after consulting the group and works out the
policies with the acceptance of the group.
He never asks people to do things without working out the long term plans on
which they are working. He favours decision making by the group as shown in
the diagram. This improves the attitude of the employees towards their jobs and
the organization thereby increasing their morale.
Using this style is of mutual benefit - it allows them (subordinates) to become part
of the team and helps leaders (seniors) to make better decisions.
It works best in situations where group members are skilled and eager to
share their knowledge.
Free rein leader gives complete freedom to the subordinates. Such a leader
avoids use of power. He depends largely upon the group to establish its own
goals and work out its own problems. Group members work themselves as per
their own choice and competence. The leader exists as a contact man with the
outsiders to bring information and the resources which the group requires for
accomplishing the job.
Note: This is also known as laissez faire which means no interference in the
affairs of others. [French laissez means to let/allow fair means to do].
A
B C
D E
A is the leader
Followers have pride in their work and the drive to do it successfully on their
own.
The leader cannot or will not provide regular feedback to his followers.
Q. In Manik Ltd., selection process is very fair, scientific and standardised.
Competent, laborious employees with good work culture are selected. As
a result, subordinates are efficient, responsible and take initiative in every
activity. Which kind of leadership style would be suitable in Manik Ltd.
Q. Alok is view supervisor of Ram, Rahim and Khan. He consults all his
subordinates while framing work schedules. They provide suggestions and
Alok considers such suggestions if they are productive. Which leadership
style is followed by Alok? What would be the benefits of such leadership
style to the organisation. (3)
Communication
7. Feedback: All those actions of receiver indicating that he has received and
understood the message of the sender.
Importance of Communication
Demerits:
3. Rigidity
1. Slow process
4. Overload of work
2. Lack of personal interest
II. Informal Communication: Communication that takes place without following
the formal lines of communication is said to be informal communication. There is
no fixed direction or path for the flow of information. It is based on informal
relations and arises out of personal and social needs of the employees.
3. Speed Slow: because all information Very fast - Cuts across all
has to pass through an the official channels.
established scalar chain.
Psychological/Emotional barriers
1. Premature evaluation-judgement before listening leads to
misunderstanding.
2. Lack of attention/poor listening may disappoint the employees.
3. Loss by transmission and poor retention: When oral communication passes
through various levels it destroys the structure of the message or leads to
transmission of inaccurate message.
4. Distrust: If the parties do not believe each other. They cannot understand
each other’s message in its original sense.
Organisational Barriers
7. Be a good listener.
Questions for Practice
Q.1 Following communications indicate barriers to effective communication.
Identify them and also mention the measures to be taken to improve the
effectiveness of communication:
a) The National Sales Manager during his visit to the southern zone,
spoke to the sales managers in Hindi.
b) During a meeting, the manager was addressing to the problem of
competitors pricing policy. The two executives were busy talking
to each other about their plans for the upcoming long weekend.
The manager got distracted and forgot to inform the major
changes in company’s pricing policy.
c) Mohit prefers to stay away from his boss. He is always scared of,
what if his boss does not approve his suggestions.
d) The sales manager while addressing to fresh graduates explained
the threats and opportunities company was facing. He used lot of
technical words which he had learnt in his MBA classes.
e) Sonu Garments Ltd. follows scalar chain very strictly. No
employee, (whatsoever may be the emergency) is allowed to
divert from the defined path of communications. (5)
Q.2 Subermanyam is a newly appointed Human Resource Manager in Times
Ltd. in Punjab. He is a Tamilian basically. He is good in Tamil and
English. Most of his subordinates belong to Punjab and they are not very
much fluent in English. He feels it much difficult to make them understand
his instructions.
1. Identify the concerned communication barrier.
2. State the category of such barrier.
3. Explain any other category of same barrier.
Q.3 Neeraj, a sales representative of ‘Omida Ltd’ has changed seven jobs in
the last one year. He is a hard working person but is not able to finalise
deals with the customers due to his inadequate vocabulary and omission
of needed words. Sometimes he uses wrong words because of which
intended meaning is nor conveyed. All this creates a misunderstanding
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 barrier of the same category. (3)
Q.4 Raju is good orator, but he lacks good listening skills. Due to it, he does
not listen the instructions given by supervisor carefully and completely.
Therefore, he doesn’t complete the work as her given instructions.
Ms Anu is heading Kitchenware items. She has kept all the authority in
her own hands and makes employees perform the work exactly as per
her orders.
Q.7 The psychology lecture of MBA students of ‘Ikon Institute’ was going on.
The lecturer discussed that some employees have the desire for status
or ego of self-respect and recognition.
Q.9 Anju and Manju work as Supervisor and clerk in Production and Finance
Dept. respectively. They’re close friends and have lunch together. One
noon while having lunch Anju shared with Manju that twenty employees
will be transferred to the foreign branch next month.
NOTICE
A meeting of all supervisor
is scheduled on 18th May,
2014
This Notice Board was placed in reception area of ABC Ltd. The notice placed
here did not mention clear specification regarding the time. This resulted in
ambiguity of message. Which barrier of communication is ‘referred to’ here?
Explain any three other forms of barriers of effective communication. (4)
Q.11 Kareena is working in an MNC’ She has been given an option to buy the
shares of the company at an amount less than the market price because
of her performance as an incentive. Katrina has been awarded “Employee
of the month” award. Which forms of incentive is being referred here.
Explain the incentives along with any other three incentives. (4)
Q.12 You are a soft skill trainer who trains people in their speaking & writing
skills. What ideas can you give to the trainees about improving their
communication effectiveness?