Here we are providing Class 12 Business Studies Important Extra Questions and Answers Chapter 7 Directing. Business Studies Class 12 Important Questions are the best resource for students which helps in class 12 board exams.

Class 12 Business Studies Chapter 7 Important Extra Questions Directing

Directing Important Extra Questions Short Answer Type

Question 1.
Explain the term Directing.
Directing – Meaning: In the ordinary sense, directing means giving instructions and guiding people in doing work. In our daily life, we come across many situations-like a father directing his daughter to do work in organizing a function, a teacher directing his student to complete an assignment, a film director directing the artists about how they should act in the film, etc. In all these situations we can observe that directing is done to achieve some predetermined objective.

In the context of the management of an organization, directing refers to the process of instructing, guiding, selling, motivating, and leading people in the organization to achieve its objectives.

You can observe here that directing is not a mere issue of communication but encompasses many elements like supervision, motivation, and leadership. It is one of the key managerial functions performed by every manager. Directing is a managerial process that takes place throughout the life of an organization.

The main characteristics of directing are discussed below:

  1. Directing initiates action: Directing is a key managerial function. A manager has to perform this function along with planning, organizing, staffing, and controlling while discharging his duties in the organization. While other functions prepare a setting for action, directing initiates action in the organization.
  2. Directing takes place at every level of Management: Every manager, from the top executive to supervisor performs the function of directing. The directing takes place wherever superior-subordinate relations exist.
  3. Directing is a Continuous process: Directing is a continuous activity. It takes place throughout the life of the organization irrespective of people occupying managerial positions. We can observe that in organizations like Infosys, Tata, and BHEL, HLL – the manager may change but the directing process continues because without direction the organizational activities cannot continue further.
  4. Directing flows from top to bottom: Directing is first initiated at the top level and flows to the bottom through the organizational hierarchy. It means that every manager can direct his immediate subordinate and take instructions from his immediate boss.

Question 2.
Explain in brief the importance of supervision.
Supervision: The term supervision can be understood in two ways. Firstly, it can be understood as an element of directing and secondly as a function performed by supervisors in the organizational hierarchy.

As an element of directing every manager in the organization supervises their subordinates. In this sense, supervision can be understood as the process of guiding the efforts of employees and other resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure optimum utilization of resources and achievement of work targets.

Secondly, supervision can be understood as functions to be performed by a supervisor, a managerial position in the organization hierarchy at the operative level i.e., immediately above the worker. The functions and performance of a supervisor are vital to any organization because he is directly related to workers whereas other managers have no direct touch with bottom-level workers.

Importance of Supervision:
The importance of supervision can be understood from multiple roles performed by a supervisor. These are explained below.
1. Supervisor maintains day to day contact and maintains friendly relations with workers. A good supervisor acts as a guide, friend, and philosopher to the workers.

2. Supervisor acts as link-between workers and management. He conveys management ideas to the workers on one hand and workers’ problems to the management on the other. This role played by the supervisor helps to avoid misunderstandings and conflict between management and workers/employees.

3. Supervisor plays a key role in maintaining group unity among workers placed under his control. He sorts out internal differences and maintains harmony among workers.

4. Supervisor ensures the performance of work according to the targets set. He takes responsibility for task achievement and motivates his workers effectively.

5. Supervisor provides good on-the-job training to the workers and employees. A skilled and knowledgeable supervisor can build an efficient team of workers.

6. Supervisory leadership plays a key role in influencing the workers in the organization. A supervisor with good leadership qualities can build up high morale among workers.

7. A good supervisor analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills.

Question 3.
Explain in brief the elements of the communication process.
Elements Of Communication P: Communication has been defined as a process. This process involves the elements like source, encoding, media/channel, receiver, decoding, noise, and feedback. The process is represented in the figure below.

Communication Process
Class 12 Business Studies Important Questions Chapter 7 Directing 1

The elements involved in the communication process are explained below –

  1. Sender: Sender means a person who conveys his thoughts or ideas to the ‘ receiver. The sender represents a source of communication.
  2. Message: It is the content of ideas, feelings, suggestions, order, etc. intended to be communicated.
  3. Encoding: It is the process of converting the message into communication symbols such as words, pictures, gestures, etc.
  4. Media: It is The path through which an encoded message is transmitted to the receiver. The channel may be in written form, face to face, phone call, internet, etc.
  5. Decoding: It is the process of converting encoded symbols of the sender.
  6. Receiver: The person who receives communication from the sender.
  7. Feedback: It includes all those actions of the receiver indicating that he has received and understood the message of the sender.
  8. Noise: Noise means some obstruction or hindrance to communication.

The hindrance may be caused to sender, message, or receiver. Some examples of noise are:
(a) Ambiguous symbols that lead to faulty encoding.
(b) A poor telephone connection.
(c) An inattentive receiver.
(d) Faulty decoding (attaching wrong meanings to message)
(e) Prejudices obstructing the poor understanding of the message.
(f) Gestures and postures that may distort the message.

Question 4.
Explain in brief the functions of a supervisor.
Functions of a supervisor:
The function performed by a supervisor are briefly discussed below –
1. Preparation of Work Schedules: Scheduling involves laying down the time for starting and completing various activities. The supervisor determines the schedules of work for every individual in his unit or section. This is done to ensure a steady flow of work.

2. Improving Communication: The supervisor maintains direct contact with the subordinates which leads to effective communication. He also provides leadership to the workers of his department. He fixes production targets for them and provides them the necessary guidance for doing the work assigned to them.

3. Optimum Utilisation of Resources: The supervisor issues orders and instructions to the workers for achieving coordination in section. He tells them what to do and how to do it so that they may utilize machines, materials, money, and methods effectively.

4. Providing Motivation: The supervisor motivates his subordinates by providing financial and non-financial incentives. He inspires them for higher quality and productivity.

5. Control of Performance: The supervisor controls the performance of the workers by comparing their performance with the standards. He takes necessary action to ensure that goods are produced according to the predetermined standards. He also provides feedback to the subordinates about their performance and gives them counseling for improvement.

6. Reporting: The supervisor keeps records of output and other related aspects of each employee. On the basis of records, he sends performance reports and other necessary information to his superior.

7. Link Between Management and Workers: The supervisor is an important link between the management and the workers. He explains management policies to the workers and also passes on the management’s instructions. He has close contact with the workers and tries to understand their problems. He brings worker’s problems to the notice of the top management.

8. Human Relations: A supervisor tends to achieve good human relations in his unit. He can mix up with the workers and share their joys and sorrows. He also settles conflicts between workers or groups of workers.

9. Grievance Handling: A supervisor is in direct touch with the workers, so he can handle their grievances effectively. When a grievance is reported, he listens to the worker’s viewpoint and tries to remove the cause of grievance. But if he can’t redress the grievance he should report it to the upper-level management.

Question 5.
Differentiate between formal and informal communication.
Comparison of Formal and Informal Communication:

Formal Communication Informal Communication
(i) It follows the official chain of command. (i) It is based on personal relationships and does not follow a fixed pattern.
(ii) It is slow as it has to follow the path laid down by the management. (ii) It ¡s very fast as it’s not supposed to follow a particular path.
(iii) t is rigid as deviations are not allowed. (iii) It is flexible as ¡t moves freely.
(iv) Formal communication ¡s generally accurate. (iv) Infonnal message may not be authentic.
(v) Chances of wrong information are very few. (v) Chances of distortion of information are very high.
(vi) In the case of formal communication, the status or position of the parties is very important. (vi) In case of informal communication, status or position. of the parties has no relevance.
(vii) It serves the needs of the organization. (vii) it serves the social needs of the members and also of the organization.

Question 6.
What is the importance of leadership? Explain.
Importance of Leadership:
Leadership is considered the most important element of the directing function of management. It supports all other managerial functions by assisting in the formulation and execution of plans. Good leadership provides the following benefits.

1. Clarification of Goals: A leader interprets and explains the objectives of the group to his followers. As a result, the members of the group know the targets to be achieved and the contribution, each of them is to make towards common objectives. They are not likely to go astray and will continue in the right direction.

2. Motivation: A good leader creates- an urge for higher performance among people. He creates self-confidence and enthusiasm among his subordinates. He converts lukewarm desire into a burning passion for success. A sound leader can create an environment conducive to hard work. He directs the potential talent of employees towards the achievement of goals.

3. Moral Building: A leader builds up dedication and loyalty among a group of people. He develops mutual cooperation and self-discipline among people. The persons become ready to sacrifice even their lives for the good of the common goal. Under a good leader, people work willingly and enthusiastically. The leader encourages subordinates to take initiative and provides psychological support to them. He serves as a friend, philosopher, and guide for his group.

4. Teamwork: An organization can be successful only when all its members work together as a team rather than going in different directions. It is the leader who creates team spirit and coordination among different members of the group. He resolves internal conflicts and differences, of opinion. He serves as an arbitrator and mediator among the members. A leader harmonizes the personal goals and aspirations of subordinates with the goals of the organization as a whole.

5. Creates dynamic environment: In the dynamic environment of today, frequent changes are required in the structure and working of an organization. But change creates uncertainly and inconvenience. Therefore, people tend to resist change. A good leader persuades people to accept and carry out the desired changes. A leader is an important agent of organizational change and development. He provides psychological support to his followers.

6. Representation: A leader serves as the representative of his followers. He protects their interest and serves as their guardian. He acts as their spokesman and bargains with the outside forces for the welfare of the groups. A true leader upholds the interests of his followers and attempts to fulfill their hopes and aspirations. He is always ready to solve the problems of his followers. A leader manager represents his organization in business meetings, trade conferences, government committees, and so on.

Competent leadership is required at all levels of management. All managers must provide leadership so as to create an urge in the employees to cooperate and improve their performance towards the achievement of organizational objectives.

Directing Important Extra Questions Short Answer Type

Question 1.
Explain the nature and importance of communication in today’s changing business world.
Nature Of Communication:
The foregoing definitions reveal the following characteristics of communication –
1. Pervasive Function: Communication is required at all levels of management and in all departments of the organization. It is an indispensable part of the management process. It is an activity of each and every manager. Therefore, communication is regarded as a pervasive function.

2. Continuous Process: Communication is an ongoing process that has to be in regular touch with their subordinates and superiors to maintain and improves performance.

3. Two-Way Process: Communication is a two-way process. It includes sending a message and the response to that message. It is not complete until the reaction or response to the message is available. The reaction or response is known feedback.

4. Circular Process: Communication becomes a circular process with feedback. The flow of communication is a circular one.

5. Two or more Parties: It requires at least two persons to complete the process of the communication-a sender with the message and a receiver who must understand the message and respond to it.

6. Understanding: The receiver may or may not agree with the point of view of the sender of the message. However, for communication to be complete, the receiver must understand the message in the same sense as intended by the sender.

Importance Of Communication:
Communication is an indispensable part of the process of management. Non an organization can survive and grow without an effective system of communication. Since the job of a manager is to get things done through others, he has to spend a major portion of his time on communication. The first executive function is to develop and maintain a system of communication. Most of the problems of management arise due to a lack of understanding. Therefore, communication’s the number one problem of management today:

Sound communication offers the following benefits:
1. Basis of Planning and Decision Making Communication is essential for decision-making and planning: The quality of managerial depends on the quality of communication (amount and quality of information available to the organization) Communication provides the necessary information with the help of which managers can diagnose problems, evaluate alternative courses of action and choose the right alternative.

Realistic Planning and sound decision making is not possible without accurate information through communication, for example, the entire sales plan of an enterprise may fail if the information about the latest market condition is not available to management. At the same time, the decisions and plans of management need to be communicated to the subordinates. Effective communication is also helpful for the proper implementation of plans and policies of the management.

2. Smooth and Efficient Operation: An effective communication system serves as a lubricant, fostering the smooth and efficient functioning of the enterprise. The achievement of goals of the enterprise is of paramount importance and communication is one of the important tools available to the manager to attain them. It is through communication that a manager issues orders and instructions and changes and regulates the behavior of subordinates in the desired direction. Effective communication promotes managerial efficiency and facilitates leadership.

3. Facilitates Coordination: In every organization, the work to be done is divided among several interrelated departments and sections. The activities and efforts of different individuals and groups must be coordinated. Communication is the most effective means of creating cooperation and coordination. The exchange of ideas and information helps in bringing about the unity of action in the pursuit of a common purpose.

Communication binds people together. Group meetings used in coordination involve the exchange of ideas and knowledge and the transfer of information and understanding. Communication is at the root of all group activity. It is through coordination that managers come closer to employees. Interaction and discussion between the two sides improve the superior-subordinate relationships.

4. Employee Motivation and Moral: Communication helps management to keep the employees fully informed about the plans, job changes, etc. The motivation and morale of employees tend to be high when they clearly understand what they are supposed to do. Sharing of information with employees and discussion with them on matters of common interest provide satisfaction to employees.

Communication is the means by which employees can bring their suggestions, difficulties, and grievances to the notice of the management. Upward communication ensures greater job satisfaction and stimulates worker’s enthusiasm and loyalty towards the enterprise. Effective communication satisfies the personal and social of employees.

5. Sound Industrial Relations: Effective communication helps to create mutual understanding and trust between the employer and the employees. It enables the management to come into close contact with workers. It serves as a bridge between management and labor and creates a spirit in the organization. Thus, an effective communication system is a prerequisite for good labor-management relations.

6. Industrial Democracy: Communication is essential for worker’s participation in management. It is helpful in the delegation and decentralization of authority. Effective communication is the basic training and development of managerial personnel. The process of leadership itself depends upon effective communication.

Public Relations: In the modern business world, every business enterprise must create and maintain a good corporate image in society. Communication is an indispensable means of developing a favorable public opinion. It is through communication that management can keep cordial relations with the government, trade unions, customers, and the community.

In modem business the role of communications has increased due to the following reasons:
(a) Increasing size of organizations.
(b) Growing complexities in decision making.
(c) Rapid changes in technology.
(d) Need for better industrial relations.
(e) Growth of trade union movements.
(f) Need to improve public relations,
(g) Increasing Competition.

Question 2.
Explain the nature and importance of Motivation.
Importance Of Motivation:
The success of an organization to a great extent depends upon the motivation of its employees. By motivating employees, managers can obtain their best performance towards the achievement of organizational and individual goals. Motivation is the core of management due to the following reasons.

1. Higher Efficiency: The level of performance of employees in an organization depends on their abilities and willingness to work hard. Motivation bridges the gap between the ability to work and willingness to work. It induces employees to contribute their maximum efforts to achieve a higher level of performance. Therefore, motivation helps in increasing production and reducing the cost of operations.

2. Optimum utilization of Resources: Every organization has physical, financial, and human resources. Effective utilization of physical and financial resources requires competent and motivated people. Motivation creates the willingness to work among employees. It enables managers to achieve the best possible utilization of all resources.

3. Achievement of Organisational Goals: The objectives of an organization cannot be realized unless the people working in it are motivated to work hard contribute their best towards the fulfillment of the assigned tasks. Management can secure the willing cooperation of subordinates towards the accomplishment of organizational goals by satisfying their needs through appropriate rewards. Motivated employees fully cooperate with management in achieving the desired results.

4. Stability in the Workforce: Motivation creates confidence in employees. It helps to improve their loyalty and commitment towards the organization. As a result, the rates of labor absenteeism and labor turnover are reduced. This leads to the maintenance of a stable workforce. The knowledge skills and experience of employees continue to be available to the organization.

5. Cordial Relations: Motivation brings satisfaction among employees through monetary and non-monetary rewards. Therefore, it leads to a friendly and supportive relationship between the employer and employees. Industrial disputes are reduced and the morale of employees is increased.

6. Facilitates change: Effective motivation helps management in overcoming resistance to change motivated employees and to support all changes that are in the interest of the organization. This is because they identify their own progress with the prosperity of the enterprise.

7. Corporate linage: When the employees of an organization are motivated and satisfied, the organization makes rapid progress and its reputation improves. Thus, motivation helps in building a better image of the enterprise. As a result, the enterprise is able to attract qualified and competent people.