NCERT Solutions for Class 12th: Ch 7 Directing (Long Answer Questions) Business Studies I


Long Answer Type Questions:

1. Explain the principles of Directing.


(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 untappted energies of employees for the efficiency of

(ii) Harmony of Objectives: Very often, we find that individual objectives of employees and the organisational objectives as understood are conflicting to each other. Good directing should provide harmony by convincing that employee rewards and work efficiency are complimentary 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. Adherence to this principle ensures effective

(iv) Appropriateness of Direction Technique: According to this principle, appropriate motivational and leadership technique should be used while directing the people based on subordinate needs, capabilities, attitudes and other situational variables. For example, for some people money can act as
powerful motivator while for others promotion may act as effective motivator.

(v) Managerial Communication: Directing should convey clear instructions to create total understanding to subordinates. Through proper feedback the manager should ensure that subordinate understands his instructions clearly.

(vi) Use of informal organisation: A manager should realise that informal groups or organisations
exist within every formal organisation. He should spot and make use of such organisations for
effective directing.

(vii) Leadership: While directing the subordinates, managers should exercise good leadership as it
can influence the subordinates positively without causing dissatisfaction among them.

(viii) Follow through: Mere giving of an order is not sufficient. Managers should follow it up by
reviewing continuously whether orders are being implemented accordingly or any problems are
being encountered. If necessary, suitable modifications should be made in the directions.

2. Explain the qualities of a good leader. Do the qualities alone ensure leadership success?


(i) Physical features: Physical features like height, weight, health, appearance determine the physical personality of an individual. It is believed that good physical features attract people.

(ii) Knowledge: A good leader should have required knowledge and competence. Only such person can instruct subordinates correctly and influence them.

(iii) Integrity: A leader should posses high level of integrity and honesty. He should be a role model to others regarding the ethics and values.

(iv) Initiative: A leader should not wait for opportunities come to his way, rather he should grab the opportunity and use it to the advantage of organisation.

(v) Communication skills: A leader should be a good communicator. He should have the capacity to
clearly explain his ideas and make the people to understand his ideas.

(vi) Motivation skills: A leader should be an effective motivator. He should understand the needs
of people and motivate them through satisfying their needs.

(vii) Self Confidence: A leader should have high level of self confidence. He should not loose his confidence even in most difficult times.

(vii) Decisiveness: Leader should be decisive in managing the work. Once he is convinced about
a fact, he should be firm and should not change opinions frequently.

(ix) Social skills: A leader should be sociable and friendly with his colleagues and followers. He
should understand people and maintain good human relations with them.

No, the qualities cannont alone ensure leadership success. The followers who have different skills, knowledge, commitment, willingness to co-operate team spirit etc make a person an effective leader. Therefore both followers and leaders are playing a vital role in leadership process.

3. Discuss Maslow’s need Hierarchy theory of motivation.


Maslow’s Need Hierarchy Theory is considered fundamental to understanding of 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: 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.

(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 refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfillment and achievement of goals.

4. What are the common barriers to effective communication suggest measures to overcome them?


The managers face several problems due to communication breakdowns or barriers. The barriers to communication in the organisations can be broadly grouped as: semantic barriers, psychological
barriers, organisational barriers, and personal barriers.

(i) Semantic Barriers: Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions. Normally, such barriers result on account of use of wrong words, faulty translations, different interpretations etc. These are discussed below

(a) Badly Expressed Message: Sometimes the message is not communicated correctly by the manager because of inadequate vocabulary, usage of wrong words, omission of needed words etc.

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

(c) Faulty Translations: Sometimes while translating if incorrect translation is done due to poor command over both the languages then meaning of the message changes. This leads to cause different meanings to the communications.

(d) Unclarified Assumptions: Sometimes communication may have certain assumptions which are subject to different interpretations The one should always clear the meaning of what he is instructing the worker to do, so that the worker has no doubts in his mind.

(e) Technical Jargon: Sometimes specialists may use technical words in their communication by which the receiver is not aware. Therefore, they may not understand the complete conversation.

(f) Body Language and Gesture Decoding The body movement and body gestures plays an important role in conveying the message. If there is no match between what is said and what is expressed in body movements, communications may be wrongly perceived.

(ii) Psychological Barriers: Emotional or psychological factors acts as barrier to communications e.g., a person who is worried cannot understand what is being told. Some of the psychological barriers are

(a) Premature Evaluation: Sometimes people evaluate the meaning of message before the sender
completes his message. Such premature evaluation may be due to pre-conceived notions.

(b) Lack of Attention: If the mind is pre-occupied then the result is non-listening of message by receiver act as a major psychological barrier.

(c) Lon by Transmission and Poor Retention: When message passes through various levels, successive transmission of message results in loss of information. It happens mostly with oral communication. Also, people cannot retain the information for a long time if they are inattentive or not interested.

(d) Distrust: If the communicator and communicatee do not believe on each other, they can not understand each others message in its original sense as they are not giving importance to the information exchanged.

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

(a) Organisational Policy: If the organisational policy is not supportive to free flow of communication, it may hamper effectiveness of communications.

(b) Rules and Regulations Rigid rules and cumbersome procedures may be a hurdle to communication similarly, communication through prescribed channel may result in delays.

(c) Status Status of superior may create psychological distance between him and his subordinates. The people working at higher level may not allow his subordinates to express their feelings freely.

(d) Complex Organisational Structure In an organisation where there are number of managerial levels, communications gets delayed and distorted as number of filtering points are more.

(e) Organisational Facilities For smooth clear and timely communication proper facilities are required like frequent meetings suggestion box, internet connection, inter-com facility. Lack or ineffectiveness of these facilities may create communication problems.

(iv) Personal Barriers: The personal factors of both sender and receiver may exert influence on effective communication. Some of the personal barriers are:

(a) Fear of Challenge to Authority: If a superior feels that a particular communication may affect his authority negatively then he/she may not speak it out clearly and openly.

(b) Lack of Confidence of Superior on his Subordinate: If superiors do not have confidence on their subordinates, they may not seek their advice or opinions.

(c) Unwillingness to Communicate: Sometime subordinator may not be prepared to communicate with their superiors, if they think that it may adversely affect their interests.

(d) Lack of Proper Incentives: If there is no reward for communication then employees may not be motivated to communication, e.g., if there is no reward or appreciation for a good suggestion, the subordinate may not be willing to offer useful suggestions again.

Some measures which can be adopted by organisations to improve communications are

(i) Clarify the ideas before com­munication: The problem to be communicated to subordinates
should be clear in all its perspective to the executive himself.

(ii) Communicate according to the needs of receiver: The level of understanding of receiver should be crystal clear to the communicator.

(iii) Consult Others Before Communicating: Before communicating anything, others who are linked with it in some way or the other should be taken into confidence for developing a better plan.

(iv) Beaware of Languages, Tone and Content of Message: The language used for communication should be understandable to the listener. The tone of the appropriate and the matter should not be offending to anyone.

(v) Convey Things of Help and Value to Listener: It is always better to know the interests 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 receiver of communication may be encouraged to respond to communication. The communication process may be improved by the feedback received to make it more responsive.

(vii) Follow up Communication: There should be a regular follow up and review on the instructions given to subordinates. Such follow up measures help in removing hurdles if any in implementing the instructions.

(viii) Be a Good Listener: Manager should be a good listener. Patient and attentive listening solves half of the problems. Managers should also give indications of their interest in listening to their subordinates

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


Financial incentives refer to incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance.The financial incentives are:

(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.

(ii) Productivity Linked Wage Incentives: Several wage incentives aim at linking payment of wages to increase in productivity at individual or group level.

(iii) 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 improves their performance and contribute to increase in profits.

(v) Co-Partnership/Stock Option: Under these incentives schemes, employees are offered company shares at a set price which is lower than market price. The allotment of shares creates a peeling of ownership to the employees and makes them to contribute more for 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 act 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 etc over and above the salary. These measures help to provide motivation to the employees/managers.

Non-financial Incentives help in fulfilling our psychological, emotional and social needs are known as non-financial incentives. The non-financial incentives are

(i) Status: Status means ranking or high positions in the organisation. Whatever power position prestige an employee enjoys in the organisation are indicated by his status. Psychological, social and esteem needs of an individual are satisfied by status given to their job.

(ii) Organisational Climate: This indicates the characteristics which describe an organisation and distinguish one from the other. Individual autonomy, reward orientation, consideration to employees, etc are some of the positive features of an organisation. If managers try and include more of these in an organisation helps to develop better organisational climate.

(iii) Career Advancement Opportunity: 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. Promotions have always worked as tonic and encourages employees to exhibit improved performance.

(iv) Job Enrichment: It is concerned with designing jobs that include a greater variety of work contentment, requires higher level of knowledge and skill, gives workers more autonomy and responsibility and provide opportunity for personal growth and a meaningful work experience.

(v) Employee Recognition: Programmes Recognition means acknowledgement with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at higher level. These are:
(a) Congratulate the employee
(b) Displaying names of star performers
(c) Installing awards
(d) Distributing mementos
(vi) Job Security

(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. There is only one problem with this incentive i.e. when people feel that they are not likely to lose their jobs, they may become relaxed.

(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 job performance.

Application Type

1. 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. Suggest ways for the supervisor to handle the problem.


• The supervisor provides monetary incentive to all the employees and also motivate with wages can be linked to productivity.
• The supervisors should also play the role of good leader and encourage them.

2. Workers of a factory often come to the production manager with the grievances. The production manager finds himself overburdened with so many tasks advise a way to relieve the production managers.


The supervisor would act as a link between the managers and the workers. It is through him that the manager would communicate his policies and ideas and the workers would communicate their grievances to the managers freely.

3. In an organisation employees always feel they are under stress. They take last initiative and fear to express their problems before the manager. What do you think is wrong with the manager?


The manager should adopt friendly nature toward the workers because when the workers friendly with the manager they can easily share problems, suggestions.

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 taking 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?


This will happen because companies used more informal communication and employee communicate all level, to overcome this situation by using formal means of communication.

Case problem

Y limited is a bank functioning in India. It is planning to diversify into increase business. Lately, the Government of India has allowed the private sector to gain entry in the increase business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other companies have been given licenses to start insurance business under the regulation of Insurance Regulatory and Development Authority’.
Y limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.

1. Identify how the company can supervise its employees and agents effectively. What benefits will the company derive from effective supervision?


• Training programmes should be organised regarding companies policies, how to convince clients, knowledge about their products because trained personnel will give better performance.
• Establishing targets for them and also monetary incentives.

2. What financial and non- financial incentives can the company use for employees and agents separately to motivate them. What benefits company will get from them?


Incentives for Employees
(i) Financial
(a) Productivity linked wage incentive.
(b) Bonus.
(c) Co-partnership.
(d) Employee stock option.

(ii) Non-Financial
(a) Job-security.
(b) Status
(c) Employee empowerment
(d) Employee recognition programme.

Incentives for Agents
(i) Financial
(a) Commission
(b) Bonus like paid vacation

(ii) Non-financial Incentive.
(a) Cordial relationship.
(b) Career advancement opportunity.
(c) Job Enrichment
(d) Recognition programmes like certificate of merit etc.
(e) Company achieves the motivation among the employees and they will contribute more in achieving targets.

3. How can the company ensure that higher order needs z. e., the esteem and self- actualisation needs are met?


The higher order needs can be satisfied through:
(i)  When employees have a Career advancement opportunity.
(ii) When they have assignment of challenging job.
(iii) When company provided Perquisites.
(iv) When employees participate in management decisions.

4. Identify the qualities of leadership in this line of business that the company manager must possess to motivate employees and agents.


The qualities of leaders which the manager of the insurance company must possess are:
(i) Intelligence
(ii) Good communication skills
(iii) Self-confidence, integrity and honesty
(iv) Good listener
(v) Pleasing personality

5. Give a model of formal communication system that the company can follow. Identify the barriers in this model, how can they be removed?


The company generally follow chain model of communication:
Single Chain Communication
This is a model of single chain communication
In single chain of communication the information flows from one person to the other in sequential order.

Barriers of single chain communication:
• The lack of ability to communicate leads to misunderstanding and confusion because of communication passes from one person to another.
• Because of information passes from one person to another, everyone take it their own way.
• There is a possibility of message losing its significance because of long route.

Measures to Overcome the Barrier:
(i) Clarity in the thoughts of the sender is must for effective communication.
(ii) The sender should try to make the message meaningful and understandable.
(iii) Message should be precise and to the point.
(iv)The sender should always take the feedback from the receiver.

6. How can informal communication help to supplement formal communication model given by you in answer to question?


• Helps to form a better human relation: Informal communication helps to form a better human relation which saves employees from tension free. This also affects the formal communication.
• Easy solution of difficult problems: There are many problems which cannot be solved with the help of formal communication but we can easily solved with the help of informal communication because in informal communication people enjoyed more freedom comparison of formal communication.

NCERT Solutions of Ch 7 Directing (MCQs and Short Answer Questions)

Go to Index of NCERT Solutions of Business Studies Class 12th

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