SHREEYADEVI BHAGIRATH RATHI
MAHESHWARI VIDYAPEETH
(An Institution of Shree Maheshwari Shikshan Sansthan)
(2025– 26)
Class: XII Subject: Business Studies Chapter : Directing
MULTIPLE CHOICE QUESTIONS
1 The channel of communication which is transmitted through informal channel is
called as----------
a. Gang Plank b. Formal communication
c. grapevine d. Decoding
2 Identify the need in which an employee desires self-respect, recognition and status.
a. Security Needs
b. Social Needs
c. Esteem Needs
d. Self-Actualisation Needs
3 The importance of directing is reflected in:
a. Goal accomplishment
b. Effective communication
c. Efficient utilization of resources
d. All of the above
4 The element of directing which involves guiding and influencing the behaviour of
employees towards the achievement of organizational goals?
a. Motivation
b. Communication
c. Leadership
d. Coordination
5 Which type of incentives are needed to satisfy esteem needs?
a. Financial incentives
b. Non-Financial incentives
c. Additional incentives
d. None of the above
6 Assertion (A): Communication acts as the basis of coordination.
Reason (R): We must always clarify the idea before communication.
Alternatives
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A)
c. Assertion (A) is true, but Reason (R) is false
d. Assertion (A) is false, but Reason (R) is true
7 One of the incentives includes a greater variety of work content, giving workers
more autonomy and responsibility and providing the opportunity for personal
growth’ Which of the following incentives are discussed here?
a. Employee recognition programme
b. Career advancement opportunity
c. Job enrichment
d. Employee Participation
8 State the type of communication barrier of Unclarified assumption?
a. Psychological barrier
b. Semantic barrier
c. Organisational barrier
d. Personal barrier
9 Identify the style of leadership in which the superior encourages participation of
subordinates.
a. Autocratic leadership
b. Democratic leadership
c. Laissez faire leadership
d. Authoritarian leadership
10 Which of the following is not an assumption of Maslow’s theory?
a. People behaviour is not based on their needs
b. Satisfaction of such needs influences their behaviour
c. A satisfied need no longer motivates a person only the next higher-
level need can motivate him
d. A person moves to the next higher level of Hierarchy only when the
lower-level need is satisfied.
11 Name the function that initiates the action in the organisation, while other functions
prepare a setting for action.
a. Planning
b. Organising
c. Staffing
d. Directing
12 For taking the company out of losses, Ravi Kumar took over as the
Managing Director of the struggling ‘Vova Watch Company’ in January
2020. As soon as he joined, he tried to find out the reason for the
company not doing well. He found that the employees were not involved
in decision-making and they had to just follow orders, resulting in low
morale of employees.
Recognising the need for change, Ravi Kumar started on a journey to
bring back the enthusiasm and motivation of the employees. He initiated
open dialogues and encouraged them to actively participate in
decision-making. Together, they developed action plans to address the
company’s challenges regarding outdated designs and inefficient
production processes etc. As time passed, ‘Vova Watch Company’ transformed
from a struggling enterprise to a profit-making enterprise. Identify the leadership
style of Ravi Kumar:
(A) Autocratic leadership style (B) Democratic leadership style
(C) Free-rein leadership style (D) Both (A) and (B)
MULTIPLE CHOICE QUESTIONS---ANSWERS
1 Grapevine
2 Esteem Needs
3 All of the above
4 Leadership
5 Non -Financial incentives
6 b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A)
7 Job enrichment
8 Semantic Barrier
9 Democratic leadership
10 a) People behaviour is not based on their needs
11 Directing
12 (B) Democratic leadership style
SHORT ANSWER QUESTIONS (3 marks)
1 Abhichand is working as CEO of Logistics Ltd. He introduced appropriate skill
development programmes and sound promotion policy for the employees of the
company to motivate and to include greater variety of work content. Identify
and explain two incentives introduced by Abhichand to motivate the
Employees.
2 Explain briefly any three measures to overcome communication barriers.
3 Why a manager thinks that motivation is the only source to stimulating
employees?
4 What is meant by leadership? State any two leadership styles?
OR
Explain the following leadership styles:
a) Autocratic leadership
b) Laissez Faire leadership
5 Aswin is working as a supervisor at Navaratna oil Factory. The factory is
producing 2500 Liters of refine oil every day. His job was to make sure that the
work goes on smoothly and there was no interruption in production. He was
such a leader who gives orders only after consulting with his subordinates and
work out the policies with the acceptance of the group. Identify and describe the
leadership style being adopted by Aswin.
6 Define the terms: -
a) ‘motive’ b) ‘motivation’ and c) ‘motivator’.
7 "Directing initiates every action in the organisation". Considering this
statement, list any three reasons why directing is important.
8 State the type of barrier mentioned in the following statements
a) These are concerned with encoding/decoding of messages.
b) A worried person cannot communicate properly.
c) Authority relationships and rules and regulations obstruct
communication.
HINTS FOR ANSWERS:
1 a) Career advancement opportunity
b) Job enrichment
2 a) Clarify the ideas before communication
b) Communicate according to the need of the receiver
c) Be aware of languages, tone, and content of message
d) Ensure feedback (any three points)
3 a) it helps to improve the performance level of employees
b) it helps to change negative attitude of employees to positive attitude
c) it helps to reduce employee turnover and absenteeism
4 Leadership is the process of influencing the behaviour of other people so that
they work willingly for the attainment of goals in a given situation.
Leadership styles are: -
a) Authoritarian or autocratic leadership- autocratic leader exercises
complete control over the subordinates.
b) Democratic or participative leadership- a democratic leader takes
decisions after consultation and encourages the participation of
subordinates
OR
a) Autocratic or Authoritarian leadership style-An autocratic leader
gives orders and expects his subordinates to obey those orders. This
leadership style is effective in getting productivity in many situations
like in a factory where the supervisor is responsible for production on
time and has to ensure labour productivity. Quick decision making is
also facilitated.
b) Laissez fair or Free-rein leader-Such a leader does not believe in the
use of power unless it is absolutely essential. The followers are given
high degree of independence to formulate their own objectives or
ways to achieve them. The manager is only there to support them and
supply them the required information to complete the task assigned.
5 Democratic Leadership.
Democratic leader favours decision making by group
It allows subordinates to become part of the team to take better decisions
6 a) Motive: A motive is an inner state that energizes, activates or moves and
directs behaviour towards goals. Motives arise out of the needs of
individuals. Realisation of a motive causes restlessness in the individual
which prompts some action to reduce such restlessness.
b) Motivation: Motivation is the process of stimulating people to action to
accomplish desired goals. Motivation depends upon satisfying needs of
people.
c) Motivator: Motivator is the technique used to motivate people in an
organisation. Managers use diverse motivators like pay, bonus, promotion,
recognition, praise, responsibility etc., in the organisation to influence
people to contribute their best.
7 Directing is important due to following reasons:
a) Provides Leadership -Effective directing provides motivation and
leadership by the employees, which helps them to identify their potentials
and realise their latent capabilities, leading to growth
b) Introduces Changes-- Changes in an organisation are usually resisted by
employees. Through effective direction, a manager can explain the purpose,
benefit and offer incentives to adopt such changes to the employees.
c) Provides Stability--- Effective directing helps to develop commitment on
part of subordinates. This provides stability to the organisation and
helps to achieve balance among various groups activities and departments.
8 a) Semantic barriers
b) Psychological barriers
c) Organizational barriers
SHORT ANSWER QUESTIONS
1 Give the meaning of formal communication and informal communication
2 Anu and Minu are working in zenith Ltd. Anu is working in the finance
department and Minu in the production department During lunch time Anu
informed Minu that due to computerisation few employees in the finance
department are going to lose their Jobs. Identify the type of communication in
the above case. Explain any three limitations of that
type of communication.
3 Prerana is working in a multinational company. Her performance is appreciated
by everyone in the company. As an incentive, the company offered her to buy the
shares of the company at a price that is less than the market price,
i. Name and give the meaning of the incentive offered to Prerana.
ii. State any two more incentives of the same type.
4 Nitya is a student of class XII of a well-known school. She has a
preconceived notion that her teacher always finds fault in her work. One
day while checking the project work of class XII, her teacher wanted to
appreciate Nitya for her hard work and good performance, but before she
could complete her sentence, Nitya left the room without listening to her
teacher.
a) Identify the barrier to communication and also the type of barrier to which
it is related.
b) Explain two other communication barriers of the type/category
identified in (a) above.
5 Employers contribute 12% of basic wages each towards Employees Provident
Fund scheme and Employees’ Pension Fund scheme. A proposal to reduce the
contribution by employers and employees to 10% of basic pay and dearness
allowance was listed on the agenda for a recent meeting of Employees Provident
Fund Organisation held. The stakeholders expressed their reservations about it
and they feel that it should be continued at 12%. Explain any two needs as
suggested by Maslow's Need Hierarchy Theory, which will not be satisfied by
the incentives discussed above.
6 State any FOUR organizational barriers of communication.
7 “Autocratic style of leadership is appropriate where subordinates are
uneducated.” In the light of this statement, give some advantages of autocratic
style of leadership.
8 Amrit Lal joined as a shop level manager in the production department of a textile
company in the year 2005. Because of his good work he became the Deputy
Production Manager of the company in the year 2010.
He had status and prestige and was well respected by all in the company. On
1/3/19 he was promoted as the general manager of the company.
Amrit Lal was very happy with his promotion as now he had become what he
was capable of becoming. As a good manager Amrit Lal decided to motivate his
subordinates after understanding the need hierarchy theory which is based on
various assumptions. He realized that people’s behavior is based on their needs
and the manager can influence the behavior of his employees by satisfying their
needs.
i. One of the assumptions of need hierarchy theory is stated in the above
paragraph. State other 3 assumptions of this theory.
ii. State the needs of Amrit which are being satisfied through promotion.
ANSWERS --SHORT ANSWER QUESTIONS
1 Formal communication refers to communication taking place through official
channel in the organization. such type of communication takes place between
superior and subordinate or managers working at the same cadre, or employees
working in the same cadre. Though such communication maybe oral or written, but
it is recorded and filed in the office.
Informal communication takes place in an organization without following the
formal lines of communication the network of communication followed in the
informal communication is referred to as grapevine network, because it spreads
throughout the organization with its branches going out in all directions irrespective
of the level of authority.
2 Informal communication
Limitations:
a) Spreads rapidly and sometimes get distorted
b) Difficult to detect the source
c) Generate rumours
3 i. The incentive offered to Tanushree is financial incentive of co- partnership
or stock option. Financial incentives are in direct monetary form and serves
to motivate people for better performance.
ii. Other financial incentives- pay and allowances, bonus, profit sharing, etc.
4 (a) Premature Evaluation and Psychological Barriers
(b) Any two of the following:
1. Lack of Attention: The preoccupied mind of the receiver and the resultant
non listening of messages acts as a major psychological barrier.
2. Loss by transmission and poor retention: When communication passes
through various levels, successive transmissions of the message results in
loss of, or transmission of inaccurate information.
3. Distrust: Distrust between communicator and communicatee acts as a barrier.
If the parties do not believe each other, they cannot understand each other’s
message in its original sense.
5 1. Basic Pay and allowances-Basic needs
2. Retirement benefits-Safety and security needs
6 a) Organizational policy- Communication is hampered if the policy of an
organization doesn’t support the free flow of communication
b) Rules and regulations- Rigid rules and cumbersome procedures act as a
barrier to effective communication. Communication through the prescribed
channels may result in delays.
c) Organizational facilities- lack of facilities like suggestion box, frequent
meetings, complaint box, etc. may lead to barriers to effective
communication.
d) Complexity of organizational structure- when there are several managerial
levels communication gets delayed and distorted.
7 Yes, autocratic style of leadership is appropriate where the subordinates are
uneducated because here the leader gives orders which are to be obeyed. As per this
style of leadership the leader exercises complete control over his subordinates. He
centralizes power in himself and takes all decisions without consulting the
subordinates. Advantages of autocratic style are: -
a) Autocratic style permits quick decision making
b) It provides strong concentrated power to leader
c) This style is suitable when great speed for decision making is
required
8
i. The following are the assumptions of Maslow’s need hierarchy theory other
than the one discussed above: -
b) People’s needs are in hierarchical order, starting from basic needs to other
higher-level needs.
c) A satisfied need can no longer motivate a person, only next higher-level need
can motivate him.
d) A person moves to the next higher level of the hierarchy only when the lower
need is satisfied.
[Link] of Amrit Lal which are being satisfied through promotion are:-
a) Esteem needs- the need for self-respect, autonomy, status recognition and
attention.
b) Self-actualization needs- it refers to the drive to become what one is capable
of becoming. It includes growth, self fulfillment and achievement of goals.
LONG ANSWER QUESTIONS
1 Explain any four points of importance of ‘Directing’ function of management.
2 ALAKA is running a successful business of providing high end beauty services to
the upper section of society. Her parlor boasts of innovative beauty products. she
has an inhouse training program for new employees.
Also, she believes in high standard of performance and shares her profits with her
employees. She also gives them yearly bonus and salary hikes but still she feels that
her employees are not as motivated as she wants them to be.
i. Are financial incentives the only way to motivate employees? what are the
non-monetary incentives?
ii. State and explain any FOUR non-monetary incentives which contributes to
the performance of employees.
3 What are the measures to overcome barriers to effective communication?
4 Name the process of exchange of information between two or more persons to reach
common understanding? Also state in brief the elements of that process.
5 Explain Maslow’s Need Hierarchy theory of Motivation
LONG ANSWER QUESTIONS-- ANSWERS
1 Importance of directing: (Any four)
1. Initiates action: Directing helps to initiate action among people in an
organization towards attainment of desired objectives.
2. Integrates employees’ efforts: Directing integrates employees’ efforts in the
organization in such a way that every individual effort contributes to the
organizational performance. Thus, it ensures that the individuals work for
organization’s goals.
3. Guides employees to fully realise their potential: Directing guides
employees to fully realise their potential and capabilities by motivating and
providing effective leadership.
4. Facilitates introduction of needed changes: A manager reduces resistance to
change through motivation, communication and leadership, and develop
required cooperation in introducing changes in the organisation.
5. Brings stability and balance in the organisation: It fosters cooperation and
commitment among the people and helps to achieve balance among various
groups, activities and the departments.
2 No.
Financial incentives are not the only way to motivate employees. Employees can
also motivate with the help of non-monetary incentives.
Non-Financial Incentives – All human needs cannot be satisfied by money alone.
There are certain needs which are psychological, social or emotional in nature. To
satisfy them some other motivation methods are required. Incentives which cannot
be measured in terms of money are called non- monetary incentives. Some of them
are given below:
1. Status –Status means ranking of positions. The authority, recognition, pay
and perquisites, rewards etc. indicate the status of a person in the
organization. Status fulfills psychological, social and esteem needs of an
individual.
2. Career advancement opportunity–Appropriate skill development
programs and sound promotion policy encourage employees to improve
their performance.
3. Employee recognition programmes –Acknowledgement and
appreciation of good performance is called recognition. It inspires to
improve their performance. E.g. congratulating an employee for his good
work, Wall of fame, Cash awards, Mementos or certificates etc
4. Employees Participation – Employees participation in management
refers to involving employees in the process of decision making is means
of motivation
3 Various measure to overcome barriers to effective communication are:
1. Clarify Ideas before Communication: The person sending the message
should be very clear about the information to be communicated. He should
know the objective of his message and, therefore, he should arrange his
thoughts in a proper order.
2. Communicate according to the need of the Receiver: The sender should
prepare the content of the message according to the understanding or the
environment of the receiver so that the communication is effective.
3. Consult Others before Communication: It is desirable to involve others in
developing a plan for communication.
4. Consulting the subordinates before communicating the message helps gain
their cooperation which in turn leads to effective communication.
5. Be Aware of Language, Tone and Content of Message: The language should
be clear, simple and easily understandable.
6. Similarly, the tone and content of the message should not provide any harm
to the sentiments of listeners.
4 Communication.
a) Sender: Who conveys his thoughts or ideas.
b) Message: Ideas, feelings, suggestions, order etc.
c) Encoding: Converting the message into communication symbols such as
words/pictures etc.
d) Media: Path/Channel through which encoded message is transmitted to
receiver e.g., face to face, phone call, internet etc.
e) Decoding: Converting encoded symbols of the sender& receiver, Who
receives communication of the sender.
f) Feedback: All those actions of receiver indicating that he has received and
understood the message of the sender.
g) Noise: Some obstruction or hindrance to communication like poor telephone
connection, inattentive receiver
5 Famous Psychologist Abraham H Maslow developed a conceptual framework for
understanding the nature and strength of human needs.
1. Basic Physiological Needs – These are the basic needs of an
individual like food, clothing and shelter. Unless these needs are
met, a higher-level need will not arise, the majority of a person’s
activities will probably be directed towards satisfying them.
2. Safety and Security Needs – These are the needs for safety and
protection against hazards and dangers. People in the organization
want job security, security of source of income, provision for old
age, insurance against risks etc.
3. Affiliation / Belonging needs (Social Needs) – These are the
needs for love and affection, friendship, a sense of belonging etc.
Since man is a social being, he has a need to belong and to be
accepted by various groups.
4. Esteem Needs – These needs are the desire for status, prestige,
dignity, self-respect, independence, respect from others etc. The
organizations can satisfy these needs by recognizing and
appreciating good performance, promotions etc.
5. Self-Actualization Needs--- Self-actualization is the need to