NCERT Class 12 Business Studies Chapter 7 Directing

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NCERT Class 12 Business Studies Chapter 7 Directing

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Directing

Chapter: 7

PART – Ⅰ  PRINCIPLES AND FUNCTIONS OF MANAGEMENT

EXERCISE

VERY SHORT ANSWER TYPE

1. What is informal communication?

Ans: Communication that takes place without following the formal lines of communication is said to be informal communication.

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

Ans: The Laissez faire or Free-rein leader does not believe in the use of power unless it is absolutely essential. 

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

Ans: The element in the communication process that involves converting the message into words, symbols, gestures, etc. is called Encoding.

4. The workers always try to show their inability when any new work is given to them. They are always unwilling to take up any kind of work. Due to sudden rise in demand a firm wants to meet excess orders. The supervisor is finding it difficult to cope up with the situation. State the element of directing that can help the supervisor in handling the problem. 

Ans: The element of directing that can help the supervisor in handling this problem is Motivation. It improves good human relations in industry. Communication is the basis of participative and democratic patterns of management. Communication helps to boost morale of employees and managers.

SHORT ANSWER TYPE

1. What are semantic barriers of communication?

Ans: Semantics is the branch of linguistics dealing with the meaning of words and sentences. Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding messages into words or impressions. Normally, such barriers result on account of use of wrong words, faulty translations, different interpretations, etc.

These are discussed below: 

(i) Badly expressed message: Sometimes intended meaning may not be conveyed by a manager to his subordinates. These badly expressed messages may be an account of inadequate vocabulary, usage of wrong words, omission of needed words, etc.

(ii) Symbols with different meanings: A word may have several meanings. Receiver has to perceive one such meaning for the word used by the communicator.

(iii) Faulty translations: Sometimes the communications originally drafted in one language (e.g., English) need to be translated to the language understandable to workers (e.g., Hindi). If the translator is not proficient with both the languages, mistakes may creep in causing different meanings to the communication. 

(iv) Unclarified assumptions: Some communications may have certain assumptions which are subject to different interpretations. For example, a boss may instruct his subordinate, “Take care of our guest”.

(v) Technical jargon: It is usually found that specialists use technical jargon while explaining to persons who are not specialists in the concerned field. Therefore, they may not understand the actual meaning of many such words. 

(vi) Body language and gesture decoding: Every movement of the body communicates some meaning. The body movement and gestures of the communicator matters so much in conveying the message. 

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

Ans: Motivation process is based on human needs. A simple model to explain the motivation process is presented below.

(i) Unsatisfied Need: These needs can be physiological, psychological, and social. Which creates tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the tension.

(ii) Tension: When an unsatisfied need is recognised, a tension is created in the mind of the person. 

(iii) Drives: Drive is a stage in the motivation cycle that involves the urge to fulfill an unmet need. 

(iv) Search Behavior: Consumer motivation is an internal state that drives people to identify and buy products or services that fulfill conscious and unconscious needs or desires.

(v) Satisfied need: The degree to which a person feels happy and fulfilled with their work, based on their perceptions, attitudes, and emotions.

(vi) Reduction of tension: In the motivation process, reduction of tension refers to satisfying a need or fulfilling a goal, which leads to a decrease in psychological or physiological tension.

3. State the different networks of grapevine communications. 

Ans: In a single strand network, each person communicates to the other in sequence. In gossip networks, each person communicates with all on a non-selective basis. In a probability network, the individual communicates randomly with another individual. In a cluster, the individual communicates with only those people whom he trusts. Of these four types of networks, cluster is the most popular in organisations.

4. Explain any three principles of Directing. 

Ans: These principles are briefly explained below:

(i) Maximum individual contribution: This principle emphasises that directing techniques must help every individual in the organisation to contribute to his maximum potential for achievement of organisational objectives. It should bring out untapped energies of employees for the efficiency of organisation. 

(ii) Harmony of objectives: Very often, we find that individual objectives of employees and the organisational objectives as understood are conflicting to each other. 

(iii) Unity of Command: This principle insists that a person in the organisation should receive instructions from one superior only. If instructions are received from more than one, it creates confusion, conflict and disorder in the organisation. 

5. In an organisation, one of the departmental managers is inflexible and once he takes a decision, he does not like to be contradicted. As a result, employees always feel they are under stress and they take the least initiative and fear expressing their opinions and problems before the manager. What is the problem in the way authority is being used by the manager? 

Ans: The problem in the way authority is being used by the manager is autocratic leadership. An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager is following this style, then communication is only one-way with the subordinate only acting  according to the command given by the manager. This leader is dogmatic, i.e., does not change or wish to be contradicted. His following is based on the assumption that reward or punishment both can be given depending upon the result. This leadership style is effective in getting productivity in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity. Quick decision-making is also facilitated.

6. A reputed hostel, Gyan Pradhan provides medical aid and free education to children of its employees. Which incentive is being highlighted here? State its category and name any two more incentives of the same category.

Ans: GyanPradhan is offering a financial incentive of fringe benefits. 

Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary. These measures help to provide motivation to the employees/ managers.

The two more Incentives of the same category are:

(i) Job security: Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal. In India, this aspect is more important considering the inadequate job opportunities and too many aspirants for these.  

(ii) Employee Recognition programmes: Most people have a need for evaluation of their work and due recognition. They feel that what they do should be recognised by others concerned. Recognition means acknowledgment with a show of appreciation.

LONG ANSWER TYPE

1. Discuss Maslow’s Need Hierarchy theory of motivation.

Ans: Maslow’s Need Hierarchy Theory of Motivation: Since motivation is highly complex, many researchers have studied about motivation from several dimensions and developed some theories. These theories help to develop understanding about motivation phenomenon. Among  these, Maslow’s Need Hierarchy Theory is considered fundamental to understanding of motivation. Let us examine it in detail. Abraham Maslow, a well-known psychologist in a classic paper published in 1943, outlined the elements of an overall theory of motivation. His theory was based on human needs. He felt that within every human being, there exists a hierarchy of five needs.

These are: 

(i) Basic Physiological Needs: These needs are most basic in the hierarchy and corresponds to primary needs. Hunger, thirst, shelter, sleep and sex are some examples of these needs. In the organisational context, basic salary helps to satisfy these needs. 

(ii) Safety/Security Needs: These needs provide security and protection from physical and emotional harm.

Examples: Job security, stability of income, Pension plans etc.

(iii) Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. 

(iv) Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention. 

(v) Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfillment and achievement of goals. 

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

Ans: The barriers to communication in the organisations can be broadly grouped as: semantic barriers, psychological barriers, organisational barriers, and personal barriers.

These are briefly discussed below:

(i) Semantic barriers: Semantics is the branch of linguistics dealing with the meaning of words and sentences. Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding messages into words or impressions. Normally, such barriers result on account of use of wrong words, faulty translations, different interpretations, etc.

(ii) Psychological barriers: Emotional or psychological factors acts as barriers to communicators. For example, a worried person cannot communicate properly and an angry receiver cannot understand the real meaning of a message. The state of mind of both sender and receiver of communication reflects in the effective communication. 

(iii) Organisational barriers: The factors related to organisation structure, authority relationships, rules and regulations may, sometimes, act as barriers to effective communication. 

(iv) Physical Barriers: Physical barriers are environmental obstacles that make it difficult to communicate between people. These barriers can include noise, distance, poor network connections, walls, and closed doors.

Some measures to overcome them are:

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

Some such measures are indicated below: 

(i) Clarify the ideas before communication: The problem to be communicated to subordinates should be clear in all its perspectives to the executive himself. The entire problem should be studied in depth, analysed and stated in such a manner that is clearly conveyed to subordinates.

(ii) Communicate according to the needs of receiver: The level of understanding of receiver should be crystal clear to the communicator. Manager should adjust his communication according to the education and understanding levels of subordinates. 

(iii) Consult others before communicating: Before actually communicating the message, it is better to involve others in developing a plan for communication. Participation and involvement of subordinates may help to gain ready acceptance and willing cooperation of subordinates. 

(iv) Be aware of languages, tone and content of message: The contents of the message, tone, language used, manner in which the message is to be communicated  are the important aspects of effective communication. The language used should be understandable to the receiver and should not offend the sentiments of listeners. The message should be stimulating to evoke response from the listeners. 

(v) Convey things of help and value to listeners: While conveying message to others, it is better to know the interests and needs of the people with whom you are communicating. If the message relates directly or indirectly to such interests and needs it certainly evokes response from communicatee.

(vi) Ensure proper feedback: The communicator may ensure the success of communication by asking questions regarding the message conveyed. The receiver of communication may also be encouraged to respond to communication. The communication process may be improved by the feedback received to make it more responsive. 

(vii) Communicate for present as well as future: Generally, communication is needed to meet the existing commitments to maintain consistency, the communication should aim at future goals of the enterprise also. 

(viii) Follow up communications: There should be regular follow up and review on the instructions given to subordinates. 

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

Ans: (A) Financial Incentives: In the context of the existing economic system, money has become a means to satisfy the physical needs of daily life and also of obtaining social position and power. Since money has the purchasing power, it becomes a very important incentive for every individual. Financial incentives refer to incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. These incentives may be provided on individual or group basis. 

The financial incentives generally used in organisations are listed below: 

(i) 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 performance. 

(ii) Productivity linked wage incen tives: Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level. 

(iii) Bonus: Bonus is an incentive offered over and above the wages/ salary to the employees. 

(iv) Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to  improve their performance and contribute to increase in profits. 

(v) Copartnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than 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. 

(vi) Retirement Benefits: Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement. This acts as an incentive when they are in service in the organisation. 

(vii) Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary. These measures help to provide motivation to the employees/ managers. 

Non-Financial Incentives: All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play an important role in providing motivation.  

Non-financial incentives mainly focus on these needs. Sometimes, monetary aspects may be involved in non-financial incentives as well. However, the emphasis is to provide psychological and emotional satisfaction rather than money driven satisfaction. 

Some of the important non-financial incentives are discussed below: 

(i) Status: In the organisational context, 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. Psychological, social and esteem needs of an individual are satisfied by status given to their job. 

(ii) Organisational Climate: Organisational climate indicates the characteristics which describe an organisation and distinguish one organisation from the other. These characteristics influence the behaviour of individuals in the organisation.

 (iii) 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. 

(iv) Job Enrichment: Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience. 

(v) Employee Recognition programmes: Most people have a need for evaluation of their work and due recognition. They feel that what they do should be recognised by others concerned. Recognition means acknowledgment with a show of appreciation. 

(vi) Job security: Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal. In India, this aspect is more important considering the inadequate job opportunities and too many aspirants for these. 

(vii) Employee participation: It means involving employees in decision making of the issues related to them. In many companies, these programmes are in practice in  the form of joint management committees, work committees, canteen committees etc., 

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

4. In an organisation all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone talking to each other and thus resulting in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out. What system do you think the manager should adopt to improve communication?

Ans: The manager should adopt a Formal Communication System to improve communication efficiency and maintain confidentiality. 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 cadre employees or managers. The communications may be oral or written but generally recorded and filed in the office. Formal communication may be further classified as – Vertical and Horizontal. Vertical communication flows vertically, i.e., upwards or downwards through formal channels. Upward communications refer to flow of communication from subordinate to superior whereas downward communication indicates communication from a superior to subordinate. The examples of upward communication are, application for grant of leave, submission of progress report, request for grants, etc. Similarly, the examples of downward communication include – sending notice to employees to attend a meeting, ordering subordinates to complete an assigned work, passing on guidelines framed by top management to the subordinates, etc.