MP Board Class 12th Business Studies Important Questions Chapter 7 Directing

MP Board Class 12th Business Studies Important Questions Chapter 7 Directing

Directing Important Questions

Directing Objective type Questions

Question 1.
Choose the correct answer :
Question 1.
Out of the following which is not a part of direction :
(a) Motivation
(b) Communication
(c) Supervision
(d) Delegation
Answer:
(d) Delegation

Question 2.
Principle of motivation which was sequenced as per necessity, was formulated by :
(a) Ford Louis
(b) Scott
(c) Abraham Maslow
(d) Peter F Drucker.
Answer:
(d) Peter F Drucker.

Question 3.
Out of the following which is monetary motivation :
(a) Promotion
(b) Stock encouragement/incentives
(c) Post/security job
(d) Employee share/co-partnership.
Answer:
(d) Employee share/co-partnership.

Question 4.
Grapevine is :
(a) Formal communication
(b) Barrier/obstacle in communication
(c) Lateral communication
(d) Informal communication.
Answer:
(d) Informal communication.

Question 5.
The software company established by Narayan murthy :
(a) Infosys
(b) Wipro
(c) Satyam
(d) HCL.
Answer:
(a) Infosys

Question 6.
On the path of leadership, specify the handles faced by a leader :
(a) Mistakable behaviour leader
(b) Leader who is unaware of human tendency
(c) Unforeseeable leader
(d) All the above.
Answer:
(d) All the above.

Question 7.
Direction starts from :
(a) Top level
(b) Middle level
(c) Lower level
(d) All the levels
Answer:
(a) Top level

Question 8.
Communication means:
(a) Distribution of work
(b) To formulate information each other
(c) Control of work
(d) To motivate the employee
Answer:
(b) To formulate information each other

Question 9.
When a message is converted into a format it is known as :
(a) Medium
(b) Feed back
(c) encoding
(d) De coding
Answer:
(d) De coding

10. Out of the following, which is not a monetary motivation :
(a) To stop/with hold increase in salary
(b) Increase in salary
(c) Bonus
(d) All the above.
Answer:
(a) To stop/with hold increase in salary

Question 2.
Fill in the blanks :

1. Direction is the function of …………….
2. Direction flows from top……………. to……………. level of management.
3. …………….refers to instructing, guiding, communicating and inspiring people in the organization to achieve the desired goal.
4. Deduction in salary of employee is motivation.
5. The act of stimulating someone to set a desired course of action is known as …………….
6. Supervisor works as a link between……………. and …………….
7. Written communication is more …………….
8. Verbal communication is exchange of words mode through …………….
9. Monetary motivation gives …………….to the employees on the achievement of goals.
10. In negative motivation employees are……………. if the task is not accomplished with in the given time.
11. Motivation is …………….

Answer:

1. Management
2. Top, bottom
3. Direction
4. Negative
5. Motivation
6. Management ,worker
7. Reliable
8. Conversation
9. Rewarded
10. Punished
11. Internal peace.

Question 3.
Write the answer in one word/sentence :

1. Which method of communication is suitable in case of emergency ?
2. What is the name of informal communication ?
3. Which type of communication spreads rumours and creates misunderstanding ?
4. What do you mean by economic security ?
5. What is the ability to influence subordinate called ?
6. What are the main elements of direction ? ,
7. How do manager start the work in organization ?
8. Fill the left reasons :
   Direction = Supervision +……………. + Leadership + Motivation.
9.  Direction has three elements, supervision, leadership and motivation, which is the fourth element ?
10. Give four examples of incentives.
11. What does post means in organization in reference to management ?
12. Who is a leader ?
13. Write one example of non-monetary motivation.
14. Which function of management in called functional management ?
15. On what the desire to do some specific work by a person depend ?
16. What is profit sharing ?
17. Food, clothing and housing are of what type of wants ?
18. Write one advantage of informal communication.

Answer:

1. Informal communication
2. Grapevine network
3. Informal type of communication
4. By economic security we mean to secure the employment and to make arrangement for old age
5. Leadership ability
6. The main elements of direction are as follows :
   1. Leadership
   2. Motivation
   3. Supervision
   4. Communication
   5. Co-ordination
   6. Training
   7. Command
7. Manager starts the work by direction
8. Direction = Supervision + Communication + Leadership + Motivation
9. Communication is the fourth element
10. Facility of servant, Education of children, Car,  Free housing
11. In organization post means position or place of a person in organization
12. A leader is a person responsible to ensure that all the followers develop positive attitude, posses required skills and knowledge to perform effectively and with harmony
13. Promotion
14. Direction
15. On motivation
16. Profit sharing is a type of incentive where company decides that if it earns profit over and above a fixed percentage then the excess profit earned will be shared among employees
17. Economic wants
18. By informal communication workers get psychological satisfaction.

Question 4.
Write true or false :

1. Direction is needed at all levels of management.
2. Supervision, leadership, motivation a communication are important elements of direction.
3. Direction and supervision is synonyms.
4. The motivation theory which classifies needs in hierarchical order is developed by Abraham Maslow.
5. Leadership is required for only less salary workers.
6. Written communication requires direct contact between both parties.
7. If employees are efficient, then training is not required.
8. Leader uses informal means to show his influence.
9. By communication we mean exchange of ideas.
10.  All managers are leaders.

Answer:

1. True
2. True
3. False
4. True
5. False
6. False
7. False
8. False
9. True
10. True.

Question 5.
Match the columns :

Answer:
1. (g)
2. (a)
3. (b)
4. (c)
5. (d)
6. (e)
7. (f)

Directing Very Short Answer Type Questions

Question 1.
What is the function of management known ? Which directs the organization, provides guidance, suggestions and motivations
Answer:
Direction.

Question 2.
Name two principles of direction.
Answer:

1. Unity of command
2. Leadership.

Question 3.
Which element of direction means observing the subordinates at work to ensure that they are working according to the schedules and plans and to help them in solving problems related to work ?
Answer:
Supervision.

Question 4.
How is sound important during the process of communication ? Give example.
Answer:

1. Loud voice
2. Problem in internet connection
3. Disturbance in telephone connection.

Question 5.
Give an example of psychological constraint.
Answer:
Lack of concentration.

Question 6.
Which are positive motivations ?
Answer:
Salary or wages incrementalist, recognition, reward, pension, leave salary etc.

Question 7.
Which are negative motivations ?
Answer:
Threat, punishment.

Question 8.
What is lateral informal communication also known as ?
Answer:
Grapevine communication.

Question 9.
Salary, allowances and bonus are what type of motivation ?
Answer:
Financial motivation.

Question 10.
Which communication spreads rumours and develops misunderstanding ?
Answer:
Informal communication.

Question 11.
What is the aim of direction ?
Answer:
Execution.

Question 12.
How does the management stats/begins its work in an organization ?
Answer:
A management formulates guidelines and directions to begin a work in an organization.

Question 13.
How does motivation work as an inspiration to do a task ?
Answer:
Motivation enhances the level of ability of employees and inspires them to achieve the goal. ‘

Question 14.
Among whom does the leadership shows the relationship ?
Or
The leadership shows the relationship among whom ?
Answer:
The leadership shows the relationship between the leader and followers.

Question 15.
What is the principle of follow up ?
Answer:
The principle of follow up states that the management must supervise its employees to check whether their employees are following the directions given to them.

Question 16.
What are dependency elements to find the status of an employee in the organization ?
Answer:

1. Rights of the individual
2. Responsibility
3. Other benefits.

Question 17.
When does motivation start ?
Answer:
Motivation starts when his desires or wants are unsatisfied because motivation is a psychological element.

Question 18.
When does tension start ?
Answer:
Tension starts when our wants are not satisfied.

Question 19.
When is a person tension free ?
Answer:
A person is tension free when all his needs are satisfied.

Question 20.
“Direction starts function of management”. Explain.
Answer:
Direction starts functioning because it prepares base for other functions of man-agement.

Question 21.
How many elements of direction are there ?
Answer:
There are four elements of direction :

(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication.

Question 22
What is a motive ?
Answer:
Motive literally means stimulating a person for willingness to work.

Question 23.
What is motivation ?
Answer:
Motivation means to provide someone with a motive. It is a complex force inspiring a person to work, to use his capacities willingly for achieving certain objectives. It is a process of arousing action, sustaining the activity in progress and regulating the pattern of activity.

Question 24.
What is motivator ?
Answer:
It is a technique to motivate people in an organization.

Question 25.
How many types of motivators are there ?
Answer:
Motivators are of two types :
(a) Positive
(b) Negative.

Question 26.
In what type of communication rumours are there ?
Answer:
In informal communication rumours are found.

Question 27.
What do you mean by coaching leadership ?
Answer:
Coaching leadership involves teaching and supervising followers.

Question 28.
How many types of communications are there ?
Answer:
There are three types of communication :
(a) Verbal communication
(b) Written communication
(c) Formal communication.

Question 29.
What do you mean by verbal communication ?
Answer:
Verbal communication is that communication in which exchange of words is made through spoken words.

Question 30.
Why a good leader should have the quality of initativeness ?
Answer:
To take opportunity of having profit.

Question 31.
Food, housing and clothings are what type of wants ?
Answer:
Physical wants.

Question 32.
Love, affection and friendship are what type of wants ?
Answer:
Social wants.

Directing Short Answer Type Questions

Question 1.
What is direction ? Write definition
Answer:

After planning, organizing and staffing, for the achievement of managerial objectives directing is one of the most important factor, without proper direction the other functions of management are not having any importance. Through direction only the work of planning, organizing and motivation work can be completed. Directing provides movement to the organization.

Meaning of direction : The word direction literally means moving into action i.e., activating human resources towards attaining the objectives of the business of the business. Direction is the answer to the questions like how the work should begin ? or how the employees should be led ? Direction is the practical aspect of management involving motivation, supervision, communication and effective leadership of human resources.

Definitions : Some eminent scholars had given the following definitions :
According to Kooatg and O’Donnel : “Direction is a complex function that includes all those activities, which are designed to encourage a subordinate”.

Question 2.
Is direction important function of management do you agree give your points in case of difference in opinion.
Answer:
No, I don’t agree. According to me, Direction is the most important function of management because

1. Starts the task
2. Way of communication
3. Creates balance in the organization
4. Assimilates the efforts of the employees.

Question 3.
Distinguish between leader and manager.
Answer:
Differences between Leader and Manager:

Question 4.
Write any four functions of direction.
Answer:
Following are the functions of direction :

1. Order: The main function of direction is to give orders to his subordinates.

2. Supervision: The supervisor observes the subordinates at work to ensure that they are working according to schedules and plans.

3. Guidance and training : Guidance and training subordinates is essential. This is done by direction process.

4. Co-ordination : The another function of direction is to maintain co-ordination among the various workers of organization.

Question 5.
Distinguish between Leader and Boss.
Answer:
Differences between Leader and Boss :

Leader

1. High level leaders are present to control leaders.
2. Leader always uses the word ‘we’ in his organization.
3. Social responsibility is having an important place in leadership.
4. Leader guide their followers through motivation.
5. Leaders cannot make their followers work through fear or negative motivation.
6. There is no place for punishment of followers in leadership.
7. Suggestions or opinions are invited from followers if necessary in leadership and it is also accepted by the leaders.

Boss

1. No one is above the boss in an enterprise.
2. Boss always uses the word ‘I’ in his organization.
3. There is no place for social responsibility in bossism.
4. It guide their subordinates and employees through orders.
5. It make their subordinates work through fear and negative motivation.
6. For the errors committed by the subordinates there is provision of punishment in bossism.
7. Suggestions or opinions are generally not invited from subordinates and the decision is taken by the management.

Question 6.
Explain the Importance/Elements of direction.
Answer:
Direction is one of the important function of management. On the basis of elements oi direction it is also called as operating management. The elements of direction are as follows:

1. Leadership : Leadership may be defined as the process of influencing the behaviour of other members of the group to attain the objectives of enterprise. Leadership is the ability of the manager to induce subordinates to work with confidence and zeal. According to Tead, “Leadership is that combination of qualities by the possession of which one is able to something done by others, chiefly because through this influence they become willing to do so. “In this way the qualities of leadership is also found in direction.

2. Motivation : Motivation is a Latin word, meaning to move. Human motives are internalized goals within individuals. Motivation is the process of creating organizational conditions which will compel employees to strive to attain company’s goals.
Although motivation has been defined by different persons in different ways, they all have the same meaning. All these management experts have said to arouse dedication towards work, desire, interest etc.

3. Supervision: Supervision means observing the subordinates at work to ensure that they are working according to the schedules and plans and to help them in solving problem related with work. Supervision is a work of higher ability and knowledge. Supervisors provides necessary guidelines to the subordinates for the effective completion of work. Thus, supervision is an element of direction.

4. Communication : Although communication is the secondary function of management, its importance cannot be undermined. That is why some management experts have put it in the primary function of management. Communication is an exchange of facts, ideas, opinions or emotions by two or more persons. Coordination also consists of the qualities of direction.

5. Coordination : Due to the effect of modem contrast views and will to work freely, coordination has been an important task of management. It is called as mutual understanding also. Coordination aims at an orderly arrangement of group effect for the achievement of desired ends. Coordination also consists of some elements of direction.

6. Training : Training is the base of healthy management. Training is a process by which effort is mode to increase the knowledge and skill of employees for the accomplishment of a specific job. It imparts the practical knowledge of work which is given by high level officials. Proper guidelines are given by high official to trainee in process of training. Thus training also consists of some qualities of direction.

7. Command : For the completion of work order or command is given by superiors to subordinates. The subordinates complete the work according to the command given by superiors. Thus, command is also a kind of direction.

Question 7.
How many types of motivations are there ?
Answer:
There may be two broad categories of motivation. They are positive motivation or reinforcement or negative motivation.

1. Positive motivation : It is the process of attempting to influence others to do your will. They may be further subdivided into two category. These are :

1. Monetary and
2. Non-monetary motivation.

a. Monetary : When finance is directly related to motivation, is known as monetary motivation. Thus, motivation in the form of money is monetary motivation. Example of monetary motivation are bonus, extra allowance, a share in profits, increase in wages etc.

b. Non-monetary motivation : When a person is satisfied in any other way a part from money then it is called non-monetary motivation. Non-monetary motivation is not at all connected with money. Non-monetary motivation are the psychic rewards or the rewards of enhanced position that can be secured in the work organization,

2. Negative motivation : Negative motivation is a motivation that prohibits a person from doing some act which may be detrimental to the organization.
Example of negative motivation are :

1. Deducting salary
2. Suspension
3. Issue of show cause notices
4. Rebukes, monetary penalization
5. Penal transfer and so on.

Question 8.
Write the functions of a supervisor
Answer:
Functions of a supervisor is as follows :

1. Supervise the work: Supervisor is a major branch whose main work is to organised, direct and supervise the work.
2. Co-ordination : It is another important work of the supervisor to make bring and maintain co-ordination in the branch.
3. To achieve the goal: Directors set the goal for the branch and it is the job of the supervisor to work accordingly and achieve the goal.
4. Maintain departmental accounts: Supervisor has to maintain records of expenses,incomes of the department, expenses made on the employees etc.

Question 9.
Explain the elements of communication process. :.
Answer:
The element of communication process are :

1. Sender: Individual who conveys information sender is a source of communication.
2. Message : It is the content of information intended to be communicated.
3. Encoding : It is the process of converting the message into communication.
4. Media: It is the path through which encoded message is transmitted to the receiver.
5. Decoding : it is the process of converting encoded symbols of the sender.
6. Receiver : The person who receives communication message of the sender.
7. Feedback : Information given by receiver to indicate his understanding of the information.
8. Noise: It is the hindrance or obstruction to communication. It may be the sender, receiver or the message itself.

Question.10
“Motivation is the act of stimulating someone”. Explain.
Answer:
Motivation is something that motivates a person into action and continue him in the course of action willingly to get the results expected of him. It refers to the way in which desires and aspirations direct, control or explain the behaviour of human beings. It also refers to carrying out the task properly and with loyalty to the group that has accepted the task.

The success of management depends on efficiency. In turn, the efficiency of employees depends upon their professional capability and desire to work. In the absence of desire to work, the professional capabilities will not be tapped to its fullest potential. So it is said that motivation is the act of stimulating someone.

Question 11
Explain the importance of supervision.
Answer:
The importance of supervision can be justified from the following points :
1. Supervision is a motive power : Effective direction and supervision motivates the employees to work hard for the enterprise. Without motive power the work cannot be accomplished within the time limit. Thus for the completion of work in time direction plays an important role.
2. To maintain discipline : If proper discipline is not maintained in the organization than enterprise cannot prosper. Since production is a team work therefore disciplined efforts of all the individuals under the command of supervisor is necessary.
3. Improves communication : A situate of quarrel or dispute arises in an organization due to lack of communication “but through supervision directions are given by top level management and in return feedback is given by employees. So supervision improves communication in an organisation.
4. Better utilization of resources : The available resources of organisation like mate-rial, machinery, employees are properly utilized under supervision. All these resources are monitored closely by the supervisors which helps in completion of effective work within the time limit.
5. Feedback : Supervision maintains contact with his subordinates. This helps in receiving the suggestions, ideas, complaints etc. of employees. It facilitates the process of
reviving feed back and helps to take many

Question 12.
Distinguish between : Monetary motivation and Non-monetary motivation. ‘
Answer:
Differences between Monetary and Non-monetary Motivation
Monetary Motivation

1. It is suitable in case of workers.
2. Monetary incentives are measured in terms of money.
3. Monetary motivation includes salary or wages, allowances, bonus, rewards, profit sharing etc.
4. Monetary motivation helps in satisfying lower level needs like food, shelter and clothing.

Non-monetary Motivation

1. 1.It is suitable in case of managers.These incentives cannot be measured in terms of money.
2. 2.Non-monetary motivation includes status, job security, recognition, reward or punishment, responsibility etc.
   Non-monetary motivation helps in satisfying high level needs like love, affection, recognition, status or self system needs like position, fame etc.

Question 13.
Why a leader should have the quality of communication ?
Answer:
A leader should have a quality of communication because of the following reasons:

(1) A leader is a source of information for all the members of his group. Subordinates get the information of their officers through leaders only.

(2) Leader sends the problems of his subordinates to the higher level officers. For this leader should have good communication quality.

(3) To establish friendly relation among the members and the sub ordinate and officers a leader should have quality of communication.

Question 14.
Write the characteristics of leadership.
Answer:
Following are the characteristics of leadership :

1. Existence of followers : The first characteristic of leadership is the existence of followers and followers should accept the leader. If the number of followers will increase than it will also increase the importance of leader.

2. Continuous process : Leadership is not needed on any particular occasion but it is needed all the time. In the day to day business activities effective and continuous leadership is required.

3. Influencing process : Leadership means bringing to under one’s own influence. It is that process through which the people in a group are influenced in such a way that followers automatically start using their ability for the betterment of organization.

4. Develops relationship and Confidence : Leaders develop close relations with the followers. Leader is also required to gain confidence otherwise he will be changing decisions which will be very tough to be followed.

5. Related to particular situation : Leaders always work according to situations because if they are not going to work according to perfect situation, then difficulties will arise.

Question 15.
Explain the terms motive, motivation and motivator.
Answer:

1. Motive : Motive literally means stimulating a person for willingness to work. It is an internal desire which gives strength person to move forward.
2. Motivator : It is a technique which is used to motive people in an organization. For example bonus, promotion, etc.
3. Motivation : Motivation is a psychological phenomenon that inspires a person to perform maximum task and provides maximum satisfaction.

Question 16.
Explain the characteristics of motivation.
Answer:
Following are the characteristics of motivation :

1. Continuous process : Whatever be the motivation, after some times, its effect gradually diminishes. Therefore, in order to maintain a worker’s interest in his job, the process of motivation should be continuous. Motivation is affected by time, place and circumstances. Therefore, these should be kept in mind while motivating.

2. Psychological effect: The famous management expert, McFarland, says, “The concept of motivation is mainly psychological by which the mind is inspired with a fresh idea to do some work”.

3. Motivation is related to human being : Motivation is done by man for man. A company, firm or an organization cannot be motivated. Therefore, motivation is related with human beings. However, even the animals can be motivated.

4. Motivation wholly influences a person : Motivation influences not only a man’s ears, nose, eyes and hands but it affects the whole body of a person and the willingness to work can only be inspired when the whole body of a person is influenced.

5. Important task of management : Motivation is an important function of management by which the human force can be molded in the desired direction. By motivation, the worker is inspired to work which in turn increases his working capacity. For these reasons, motivation has become the important function of management.

6. Motivation is an inspiration : Motivation has a human nature. Inspiration comes from within a man. This inspiration is intrinsic which results in increased working capacity of a man. Thus, motivation is an internal inspiration.

Question 17.
What do you mean by transaction ?
Answer:
Transactional leadership : This is a leadership that maintains or continues the status quo. It is also the leadership that involves an exchange process, whereby followers get immediate, tangible rewards for carrying out the leader’s orders. Transactional leadership can sound rather basic, with its focus on exchange.

Being clear, focusing on expectations, giving feedback are all important leadership skills. According to Boundiess.com, transactional leadership behaviors can included : clarifying what is expected of followers’ performance, explaining how to meet such expectations and allocating rewards that are contingent on meeting objectives.

Question 18.
Write the meaning of facilitative leadership.
Answer:
Facilitative leadership: Facilitative leadership is too dependent on measurements and outcomes-not a skill, although it takes much skill to master. The effectiveness of a group is directly related to the efficacy of its process. If the group is high functioning, the facilitative leader uses a light hand on the process.
On the other hand, if the group is low functioning, the facilitative leader will be more directives in helping the group run its process. An effective facilitative leadership involves monitoring of group dynamics. Offering process suggestions and interventions to help the group stay on track.

Question 19.
Write the features of supervision.
Answer:

1. Supervision is done at all three levels of management.
2. It is the main part of direction function of management.
3. It is a continuous process.
4. It ensures if the work is going on smoothly or not.
5. Its main aim is to utilize the resources properly.

Question 20.
Decribe the importance of leadership in organization.
Answer:
The role of leadership is very important in any organization the importance of leadership is clear from the following facts :

1. A good leader defines and explains the objectives of the group to his followers in order to achieve the targets.

2. A good leader develops the spint of cooperation among his followers. He can easily resolve the internal dispute and differences among the followers.

3. A good leader persuade his followers to accept and carry out the desired changes in the present dynamic environment of the structure and working of an enterprise.

4. A competent leader serves as the proper representative of his followers. He protects the interest of his followers and acts as a spokesman.

Question 21.
Explain the term ‘Motivation’ and ‘Leadership’.
Answer:
Motivation : In motivation, there is a psychological element. This element stimulates the mind of a person for willingness to work in. Motivation is a human element of management and it cannot be used like we make a machine to work by the push of a button. A person works only when his willingness to work is stimulated. Motivation is also called encouragement. The term ‘Motivation’ is derived from the work ‘Motive’ which literally means’ stimulating a person for willingness to work. Different management experts have defined motivation differently. Henri Fayol calls it ‘Command’, Koontz and Donnell ‘Direction’ and Likert calls it ‘Heart of Management’. What is mean by them is to maintain the worker’s interest, devotion and spirit to work ?

Leadership : Leadership is the ability to awaken in order the desire to follow a common objective. Leadership is the quality of behavior of individuals, whereby they guide people or their activities in organizing efforts.

Question 22.
Write the characteristics of formal communication.
Answer:
Following are the characteristics of fonnal communication :

1. Formal communication is generally written.
2. Communication of messages is through scalar chain.
3. While moving from one person to another communication has to pass through a definite channel.
4. The channel of communication in this type’is not established automatically.
5. It is the result of authorities granted and duty assigned by the organization.

Question 23.
Write the characteristics of supervision.
Answer:
Characteristics are as follows :

1. It is a main part of direction.
2. It is an universal process which is done at all levels of management.
3. It is a continuous process which is required all the time.
4. It ensures if the work is done properly or not.

Question 24.
Write the characteristics of informal communication or grapevine network.
Answer:
Characteristics of Informal Communication :

1. It is a direct and verbal communication.
2. It moves in a zig-zag manner like a grapevine.
3. It is the result of mutual relationship among employees.
4. It spreads rumours and creates misunderstanding.
5. It is difficult to trace its source and direction of flow.
6. It is not possible to fix responsibility with respect to informal communication.
7. It may involve work related matters or social matters.

Question 25.
Write the advantages of formal communication.
Answer:
Advantages :

1. It is an orderly and systematic type of communication.
2. This system is less expensive for communicating messages.
3. It can be used as reference in the future.
4. In this system written messages are complete and clear.
5. It is generally written so it helps in resolving disputes.
6. Organization can be controlled effectively through formal communication.

Question 26.
Write the defects of formal communication.
Answer:
Disadvantages:

1. The suggestions and complaints of employees are overlooked by the officers.
2. The process of formal communication is time taking hence message is delayed.
3. Time and money is invested a lot in formal communication.
4. It is not suitable for small enterprises.
5. There is lack of personal contact in formal communication.
6. It overloads higher authorities with work.

Question 27.
What are the defects of informal communication ?
Answer:
Disadvantages:

1. It spreads rumours and develops misunderstanding.
2. There is lack of secrecy in this type of communication.
3. It is not possible to fix the responsibility with respect to informal communication.
4. It is difficult to trace its source and direction of flow.
5. There is no proof for sending information in this communication.
6. It is unreliable and unauthentic type of communication.
7. It is not possible to trace the origin of informal communication.

Question 28.
What are the advantages of informal communication ?
Answer:
Advantages :

1. It travels faster than formal communication because it is not required to follow scalar chain.
2. It is one of the simple, easier and cheap system of communication.
3. Quick feedback is ascertained in this type of communication.
4. This method is suitable in case of emergency.
5. It establishes better human relations.
6. There is more freedom in informal communication which helps the solution of difficult problems.
7. It satisfies the social needs of workers.

Question 29.
Write the types of communication on the basis of media, direction and method.
Answer:

1. communication on the basis of media :

1. Formal
2. Informal.

2. Communication on the basis of direction :

1. Towards low
2. Towards high
3. Parallel
4. Slanting.

3. On the basis of method ,:

1. Oral
2. Written
3. Indicator.

Directing Long Answer Type Questions

Question 1.
Give a detailed account of non-monetary incentives that an organization can adopt in motivating employees.
Answer:
Incentives may be extrinsic, intrinsic, monetary and non-monetary which are given as under:

1. Job security : Job security implies that an employee would continue to work for the organization, enjoying economic and social security through health and welfare programs like providing security against sickness, unemployment, disability, old age and death.

2. Opportunities of promotion: Every person desires to promote his career till he reaches the highest authority level and for this he works with full interest and dedication. So, it is the responsibility of the employer that he should make suitable arrangements for promotional prospects. Efficient, able and experienced employees should be given the benefit of promotion.

3. Reward and punishment : Rewards refer to appreciation or recognition and the efficiency of the worker, whereas punishment serves as a negative motivation. In other words, it prohibits a person from performing undesirable actions.

4. Status : Status refers to the social rank of a person. Management often iris to satisfy egoistic needs by establishing status symbols and distinction in its organization. Individuals try hard to gain this status symbol.

5. Favourable work environment : Both physical and mental environment in the organization should be conducive to good work. In the absence of a good work environment, the worker gets disturbed and is not able to put in his / her best. The management should try to remove the irritants which creep in and spoil the environment.

6. Recognition : Recognition satisfies human need for esteem by others and for self-esteem. This recognition may be shown in the form of praise or a pat on the back of the employees or a recommendation for a pay raise, promotion or assignment of more interesting work.

Question 2.
What are the essential qualities of an effective leader ?
Or
Discuss any four qualities of a good leader.
Answer:
The essential qualities of an effective leader are as follows :

1. Intelligent :This is one of the most important quality of a leader. He should be intelligent enough to find out the problems and suggest the solution. Without intelligence a person cannot become a good leader. An intelligent leader can take perfect decisions for the enterprise.

2. Attractive personality : Leader should have such type of personality so that followers or subordinates should get attracted towards him. His work and behaviour should also attract the followers.

3. Self confidence : An effective or good leader should have strong will power and self confidence to lead the followers. He should be brave to face the difficult and extreme situations.

4. Knowledge of rules and regulations : A good leader should have the complete knowledge of rules and regulations related with work. To perform the work systematically he should have the knowledge of rules and it should be communicated to the followers also

5. Honest: Leader should always work with honesty because if they are not performing the work honestly then it is going to effect their reputation and the followers will not support the leader.

6. Forward looking : A good leader should always be forward looking. He should make the plans after studying the previous plans, future plans are made. He should have the quality of forecasting.

7. Scientific outlook : An efficient leader should have scientific outlook. He should not be superstitious. All the information should be collected regarding a problem and it should solved one by one with patience.

Question 3.
Distinguish between : Formal communication and informal communication.
Answer:
Differences between Formal Communication and Informal Communication

Question 4.
Eplain Maslow’s need hierachy theory of Motivation and its assumptions.
Answer:
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 belonging , acceptance and friendship.

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

(v) Self Actualization 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.

Maslow’s theory is based on the following assumptions:

1. People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.
2. People’s needs are in hierarchical order, starting from basic needs to other higher level needs.
3. A satisfied need can no longer motivate a person; only next higher level need can motivate him.
4. A person moves to the next higher level of the hierarchy only when the lower need is satisfied.

Maslow’s Theory focuses on the needs as the basis for motivation. This theory is widely recognised and appreciated. However, some of his propositions are questioned on his classification of needs and hierarchy of needs. But, despite such criticism, the theory is still relevant because needs, no matter how they are classified, are important to understand the behaviour. It helps managers to realise that need level of employee should be identified to provide motivation to them.

Question 5.
What do you mean by styles of leadership ? How many types are there ?
Answer:
Some leaders cannot work comfortably with a high degree of followers’ participation indecision making. Some employers lack the ability or the desire to assume responsibility. Furthermore, the specific situation helps determine the most effective style of interactions. Sometimes leaders must handle problems that require immediate solutions without consulting followers.

1. Autocratic Leadership: Autocratic leadership style is centered on the boss. In this leadership the leader holds all authority and responsibility. In this leadership, leaders make decisions on their own without consulting subordinates. They reach decisions, communicate them to subordinates and expect prompt implementation. Autocratic work environment does normally have little or no flexibility. In this kind of leadership, guidelines, procedures and policies are all natural additions of an autocratic leader. Statistically, there are very few situations that can actually support autocratic leadership.

2. Decmocratic Leadership : In this leadership style, subordinates are involved in making decisions. Unlike autocratic, this headship is centered on subordinates’ contributions. The democratic leader holds final responsibility, but he or she is known to delegate authority to other people, who determine work projects.
The most unique feature of this leadership is that communication is active upward and downward. With respect to statistics, democratic leadership is one of the most preferred leadership, and it entails the following: fairness, competence, creativity, courage, intelligence and honestly.

3. Laissezfaire Leadership: Laissezfaire leadership gives authority to employees. According azcentral, depaftments or subordinates are allowed to work as they choose with minimal or no interference. According to research, this kind of leadership has been consistently found to be the least satisfying and least effective management style.

4. Strategic Leadership : Strategic leadership is one that involves a leader who is essentially the head of an organization. The strategic leader is not limited to those at the top of the organization. It is geared to a wider audience at all levels who want to create a high performance life, team or organization.
The strategic leader fills the gap between the need for new possibility and the need for practicality by providing a prescriptive set of habits. An effective strategic leadership delivers the goods in terms of what an organization naturally expects from its leadership in times of change. 55% of this leadership normally involves strategic thinking.

5. Transformational Leadership : Unlike other leadership styles, transformational leadership is all about initiating change in organizations, groups, oneself and others.

Transformational leaders motivate others to do more than they originally intended and often even more than they thought possible. They set more challenging expectations and typically achieve higher performance.

Question 6.
Explain the functions of supervisor.
Answer:
For any activity of the organisation, supervisor is responsible. Supervisor per-forms all the basic functions of management like planning, organizing, directing etc. The functions of supervisor is mentioned in American act. The functions are as follows:

1. Planning the work: Supervisor is one of the important officers of an organisation. He is responsible for the work of organisation. He has to chalk out the daily and weekly programme and present it before the higher officials. Supervisors should be effective planners.

2. Organising the section : Supervisor is required to distribute the work of his department and also regroup the identical functions. He has to seek the effective cooperation and coordination of employees. He works for making the foundation of organization strong.
3. Motivation: Motivation is a power which encourages the employees to work hard. Supervisor motivates employees and creates team spirit. Supervisors create interest of employees towards work of enterprise.

4. Training and Instructions : The labours and lower level employees are having direct and close relationship with supervisors. The preliminary work of training is provided by supervisors. Instructions and guidelines are also given time to time by the supervisors.

5. Achieving the targets : The most important duty of the supervisor to achieve the targets of his department. The supervisors uses the best possible resources of the organisation to achieve the organisational goals.

Question 7.
What do you mean by Financial motivation ? Explain the various type of it,
Answer:
Meaning : When a person is motivated to work with monetary methods, it is called monetary motivation. Thus, a person is satisfied with money. This is also called financial motivation. Under this method, the employer spends money on the various satisfaction needs of the employees by keeping in mind their essential needs.
The following methods have been included in monetary motivation which are all positive:

1. Salary or Wages : An employee is motivated to put in more work when he is paid sufficient wages according to the nature and importance of the job assigned.

2. Allowances and Bonus: The employer grants various allowances to workers. Thus, the employees can be provided satisfaction by granting them necessary allowances depending on the place of work and also by sanctioning one or two bonus during a year. Bonus is like a reward which keeps the employees cheerful and happy.

3. Gratuity and Pension: This two benefits are available after completion of service. The employees are fully satisfied and work harder with loyalty when they are notified during the tenure of service about the facility of pension and gratuity. The employees work with complete devotion when their future is thus secured.

4. Premium and Holiday Salary: Premium means share in economies due to increase in production. When the employees is granted free bonus, gifts and earned leave, he is motivated to work even during leave period. When there is a benefit of overtime allowances in addition to this, it has a positive effect on the performance of the employees.

5. Fringe Benefits and Reward : Fringe benefits are facilities provided free by employers in the absence of which the employees have to bear the expenses e.g., house, car, furniture, domestic servants etc. When they get these fringe benefits, the employees are motivated for higher work as they are satisfied with the comforts of life. Similarly, rewards or gifts granted at the time of Holi, Diwali and other festivals, are also added source of satisfaction for the employees,

6. Contribution to Provident Fund : This is a fund involving contributions by both the employer and employees which is deposited in the employee’s account in equal monthly installments. In order to motivate the employee for higher work and satisfy his needs, the employer can increase his contribution the fund.

Question 8.
What do you mean by Negative motivation. Explain some of them.
Answer:

Negative motivations may be both monetary and non-monetary. These have negative nature in human behaviour. These encourage extracting work by fear of force as opposed to welfare of human beings. Such motivations are considered suitable for ‘Management by Force’. There is no place for such negative motivations in today’s efficient and competent management system. However, sometimes it becomes necessary to resort to these motivations also. The negative motivations are :

1. Deduction of Salary : A portion or percentage of salary is deducted by way of monetary punishment when an employees does not work properly or to his full capacity. The employees tries to work efficiently for fear of deduction from salary. This negative monetary motivation.

2. Demotion: To post a worker in lower post downgrading him from his original post is called demotion. Workers try to perform efficiently as they are afraid of demotion. This is a negative monetary motivation.

3. Fear: By scaring employees that they will be drive out of job or complaint will be made against them with the top management or by threatening them with any other bodily harm, management compels employees to work harder. This is a negative monetary motivation.

4. Physical Punishment : This is a negative motivation which is applied on workers in the lower level where only physical labour is done. This is a negative motivation.

5. Removal from Job : Removal from job results in unemployment and therefore, the workers try to work harder and with greater efficiency for fear of unemployment. This motivation is adopted in many small or large industries and this is particularly adopted in case of unsuitable and inefficient workers.

6. Insult: Insult is a big blow to those employees who have high self-pride therefore, such employees always try to work efficiently and to their full capacity. This practice is prevalent in private organizations and is negative in nature.

Question 9.
Write the difference between direction and supervision.
Answer:
Differences between Direction and Supervision
The differences between direction and supervision are as follows

Question 10.
Describe the principles of direction.
Answer:
The principle of direction are as follows :

1. Principle of maximum contribution : According to this principle. The employees should be motivated in such manner that they should give their maximum contribution to the enterprise.

2. Principle of Harmony of objectives: According to this principle there should be harmony among the individual objective of employees and objective of enterprise. Both should work together and should not create hurdles.

3. Principle of unity of command : This principle requires that the employees should receive orders from one superior only for any action or activity. It means workers in a department are required to be accountable to one superior for complying with the orders for performing a job. Multiplicity of command lead to misunderstandings and confusion in the enterprise.

4. Principle of effective communication : According to this principle the hurdles of communication are removed and it is monitored whether sent message is received in the same manner and understood in the same form or not.

5. Principle of Informal organization : Informal organization is used to remove the demerits of formal organization and to creat an environment of free communication. Its aim is to develop an attitude of taking initiative among employees.

6. Principle of leadership : The subordinate should be provided effective leadership by top level executives and through its personality the leader should bring positive (creative) changes in the employees.

Question 11.
Explain briefly the importance of directions.
Answer:
The importance of directing is clear from the following facts :

1. Initiating activities : All the activities of a business enterprise are initiated through directing. The motto of directing is to activate the sub-ordinates to work to achieve the desired goals.

2. Improving efficiency : Motivation and leadership from part of directing which persuade the sub ordinates to work to the best of their ability and contribute maximum to achieve the pre-determined objectives of an enterprise.

3. Facilitating change : The present business environment is subject to frequent charges. An enterprise has to adjust and mould itself according to such changes.

4. Stabilization and Growth : Efficient directing ensures the stability and growth of a business enterprise if can lend it to right direction. Directing helps as making maximum use of ability the efficiency.

Question 12.
Explain importance of supervision.
Answer:
In the older days supervision was not having a lot of importance but nowadays supervision is a must in all the enterprises. The supervision makes the best possible utilisation of physical resources and also directs human effects to desired goals . Supervision exists at every level, location and operation throughout the organization. Top level management supervises the work of middle level while middle level managers supervises the employees. Supervision is the process of checking and comparing the performance of personnel in the organization. The importance of supervision can be justified from the following points :

1. Supervision is a motive power: Effective direction and supervision motivates the
employees to work hard for the enterprise. Without motive power the work cannot be accomplished within the time limit. Thus for the completion of work in time direction plays an important role.

2. To maintain discipline : If proper discipline is not maintained in the organization than enterprise cannot prosper. Since production is a team work therefore disciplined efforts pf all the individuals under the command of supervisor is necessary.

3. Improves communication : A situate of quarrel or dispute arises in an organization due to lack of communication but through supervision directions are given by top level management and in return feedback is given by employees. So supervision improves communication in an organisation.

4. Better utilisation of resources : The available resources of organisation like material, machinery, employees are properly utilized under supervision. All these resources are monitored closely by the supervisors which helps in completion of effective work within the time limit.
5. Feedback : Supervision maintains contact with his subordinates. This helps in receiving the suggestions, ideas, complaints etc. of employees. It facilitates the process of receiving feedback and helps to take managerial decisions.

Question 13.
Write the importance of motivation.
Answer:

1. Development of Human Relations : The thought of establishment of cordial human relations is the keystone of an ideal business enterprise. It will never be easy to achieve the objective in an organization unless cordial relations between management and workers’ groups are established. Human relations can be established by creating an atmosphere of cordial relations between management and labour though motivation. In any organization, it should be accepted that the worker is ‘first human being and then worker’.

2. Achievement of goals within time : The success of any enterprise depends not only in achieving the goals but also achieving them within time. A manager may arrange good quality material and the best machines to produce the product, but the machines and material cannot be properly utilized if the employees working there do not have full dedication and willingness to work. Therefore, motivation is necessary to achieve the goals’

3. Increase in Production : Motivation results in improvement in efficiency as the employees work with increased zeal which in turn results in increased production.

4. Full Utilization of Efficiency: It will not be out of place to agree that “Full utilization of efficiency cannot be achieved without motivation”.

5. For better Organization : To basis of any organization is that it should be better organized. A perfect organization can be established only by satisfying human needs and the basis of human satisfaction is motivation. E.F.L. Breach says, “Organization is the reflection of motivation”.

6. Reduction in Absenteeism : The growing awareness and, for some other reasons, the labour absenteeism etc. is becoming a problem to every organization. The main reason behind absenteeism is monotony. To change this monopoly into zeal and dedication can be achieved only by motivation. Therefore, absenteeism can be prevented by motivation.

Question 14.
What is meant by managerial leadership? Explain briefly the qualities of a good leader.
Answer:
Leadership may be defined as the process by which influence is made on the behaviour and performance of others in group efforts towards the achievement of specific goals in a given situation. The leader influences the followers in such a way that they willingly strive towards the fulfillment of common objectives.

Definitions : “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal. ” —Koontz and O’ Donnell
“Leadership is the activity of influencing people to strive willingly for mutual objectives. ” —George R. Terry
“Leadership in interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals. ”
Qualities of a Good Leader :

1. Sound Physique : A good leader must have good health and physical fitness. He requires tremendous stamina and vigor for hard work.

2. Intelligence : A leader should be intelligent enough to examine problems in the right perspective. He should have the ability to assess the pros and cons of his actions in a particular situation.

3. Objectivity : A leader should have and objective outlook, free from bias and prejudice. He should form his opinion and judgement on the basis of facts alone. He needs an open mind, is willing to listen to others and adopt new ideas.

4. Flexibility : A leader should be flexible or open minded i.e., he should be ready to absorb new ideas as may be demanded by the situation. He should be prepared to accommodate other view points and alter his decision if need be.

5. Self-Confidence : Self-Confidence is essential to motivate the subordinates and boast up their morale. He should have confidence in himself whenever he takes any decision or initiates any cause of action.

6. Sense of Responsibility : A leader should be prepared to shoulder the responsibility for the consequences of any steps he takes. He should be aware of the duties and obligations associated with the position held by him.

Question 15.
Distinguish between verbal and written communication.
Answer:
Differences between Verbal and Written communication

Question 16.
Write the importance of direction.
Answer:
Following are the importance :

1. Direction initiates action : The employees cannot start their work until they are not informed about what to do ? And how to do ? This work is performed by the manager through direction. Thus, direction initiates action in as organization.

2. Helpful in making plans : One of the elements of direction is communication through which the contact is made between different levels of management. Necessary modifications and changes can be brought in plans with the help of direction.

3. Means of motivation : For the achievement of organizational objectives, direction motivates the employees to contribute to the best of their abilities. Motivated employees work with full dedication and with a full of belonging.

4. Necessary at ail levels of management : Direction is performed at all the three levels of management. Direction is required more at the lower level, less at medium level and lesser at top level of management.

5. Provides stability : Direction brings stability and balance is the organization. Stability is brought through effective supervision, motivation, leadership and communication.

6. Facilitates changes : Through effective communication and leadership enterprise can cope with the changing conditions of environment. Effective direction induces the employees to accept changes and challenges.

Question 17.
Distinguish between Monetary motivation and Non-monetary motivation.
Answer:
Differences between Monetary and Non-monetary Motivation

Monetary Motivation

1. It is suitable in case of workers.
2. Monetary incentives are measured in terms of money.
3. Monetary motivation includes salary or wages, allowances, bonus, rewards, profit sharing etc.
4. Monetary motivation helps in satisfying lower level needs like food, shelter and clothing.
5. Monetary motivation provides financial burden to the organization or enterprise.
6. As the monetary incentives are measured in terms of money thus it is visible.
7. Labour unrest and disputes arises due to the.denial of monetary incentives.
8. It not only fulfils the physiological needs but also the need for social status and power.

Non-monetary Motivation

1. It is suitable in case of managers.
2. These incentives cannot be measured in terms of money.
3. Non-monetary motivation includes status, job security, recognition
4. reward or punishment, responsibility etc. Non-monetary motivation helps in satisfying high level needs like love, affection, recognition, status or self esteem needs like position, fame etc.
5. Non-monetary motivation does not provide any financial burden to the organization.
6. As the Non-monetary incentives are not measured in terms of money thus it is invisible.
7. Labour unrest and disputes does not arise due to the denial of non-monetary incentives.
8. It satisfies the emotional and psychological needs of employees.

Question 18.
Distinguish between Leader and Boss.
Answer:
Difference between Leader and Boss
leader

1. High level leaders are present to control leaders.
2. Leader always uses the word ‘we’ in his organization
3. Social responsibility is having an important place in leadership.
4. Leader guide their followers through motivation.
5. Leaders cannot make their followers work through fear or negative motivation.
6. There is no place for punishment of followers in leadership.
7. Suggestions or opinions are invited from followers if necessary in leadership and it is also accepted by the leaders.

Boss

1. No one is above the boss in an enterprise.
2. Boss always uses the word ‘I’ in his organization.
3. There is no place for social responsibility in bossism.
4. Boss guide their subordinates and employees through orders.
5. Boss make their subordinates work through fear and negative motivation.
6. For the errors committed by the subordinates there is provision of punishment in bossism.
7. Suggestions or opinions are generally not invited from subordinates and the decision is taken by the boss himself.

Question 19.
Explain the process of communication.
Answer:
Communication refers to an art of transferring facts, ideas, feelings etc. from one person to another and making him understand them. Communication is the soul of modem large scale enterprises. Communication is a systematic process of creating mutual understanding through creation of messages.
Communication process is required at all stages. According to Kootz O’Doonel, communication process is:

Necessity → Need → Tension Process/act → Satisfaction.
At first when there is necessity of something, then it converts to need. To fulfill this need a person is tension and to get rid of this tension he acts and follows a process and when he achieves the desired target he is satisfied.

Communication helps to make the employee realize the necessity and need to attain the goal. For this motivation and encouragement is given to attain the desired target by which satisfaction is achieved.
This leads to growth of employee and achievements of goals of the organization.

This leads to growth of employee and achievements of goals of the organization.

Question 20.
Describe the barries of an effective communication
or
Discuss any four barriers of the effective communication.
Answer:
The barriers or obstacles to an effective communication are as follows :

1. Barriers to organizational structure : The structure of any organization also affects the communication system. If the organization is big having various level then there will be various obstacles because due to many levels. The message or information will have to move through their levels. Due to many levels correct in information to the right person at right time through right medium becomes difficult.

2. Barriers to language : Language communication is an easy medium of communication. Different languages are spoken in different regions. Technical terms of language causes difficulties in understanding the language is same.

3. Barriers to status : In formal organization there is a formal relation between the officers and employees of top level and lower level. The emotions and behaviours of officers towards employees also effects effective communication.

4. Shortage of time: Due to shortage of time effective communication is not properly performed. Generally its should be kept in mind while sending information that receiver should have enough time to work on the information.

5. Geographical distance : Geographical distance is also an obstacle in the way of communication. Fax, Internet, Satellite system has solved this problems of geographical distance but these facilities are limited to cities and this facility is used by a specific class. These facilities cannot be used by a common man as it is expensive.

MP Board Class 12 Business Studies Important Questions