Directing –  CBSE Notes for Class 12 Business Studies

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1. Directing Directing function of management is concerned with instructing, guiding, inspiring and motivating the employees in the organisation so that their efforts result in achievement of organisational goal.
According to Ernest Dale, “Directing is telling people what to do and seeing that they do it to the best of their ability.”
2. Characteristics of Directing
(i) It initiates action.
(ii) Continuing function.
(iii) It takes place at every level.
(iv) It flows from top to bottom.
(v) It is performance oriented.
(vi) It is human element.
3. Importance of Directing
(i) To initiate action
(ii) To integrate employees efforts
(iii) Means of motivation
(iv) Balance in the organisation
(v) To facilitate change
4. Principles of Directing
(i) Maximum individual contribution
(ii) Harmony of objectives
(iii) Unity of command
(iv) Appropriate technique
(v) Managerial communication
(vi) Strategic use of informal organisation
(vii) Effective leadership
(viii) Follow through
5. Elements of Staffing There are four main elements of directing
(i) Supervision (ii) Motivation
(iii) Leadership (iv) Communication
6. Supervision The supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organisation.
(i) Role of Supervisor
(a) Role of mediator or linking pin
(b) Role of a guide
7. Importance of a Supervision
8. Motivation Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity. Motivation is a psychological term which means it can not be forced on employees.
9. Interrelated Teams of Motivation
(i) Motive (ii) Motivation (iii) Motivator
10. Characteristics of Motivation
(i) Motivation is a psychological phenomenon.
(ii) Motivation produces goal-directed behaviour.
(iii) Motivators can be positive as well as negative.
(iv) Motivation is a complex process.
(v) Motivation is a dynamic and continuous process.
11. Process of Motivation
(i) Unsatisfied need (ii) Tension
(iii) Drive (iv) Search behaviour
(v) Satisfaction need (vi) Reduction of tension
12. Importance of Motivation
(i) Motivation helps change negative attitude to positive attitude.
(ii) Motivation improve performance level of employees.
(iii) Helps in achieving the organisational goal.
(iv) Motivation creates supportive work environment.
(v) Motivation help the managers to introduce changes.
(vi) Reduction in employees turnover.
13. Need Hierarchy Theory or Maslow’s Need Hierarchy theory Need or the desire is a very important elements in motivation because the employees get motivated only for their needs.
Maslow has given a sequence or hierarchy of needs in the follows way
(i) Physiological needs
(ii) Safety and security needs
(iii) Social or belonging needs
(iv) Esteem needs
(v) Self-actualization needs
14. Assumptions of Maslow’s Need Hierarchy Theory
(i) Behaviour of people depends upon their need. Human behaviour can be changed or motivated by fulfilling their ‘ needs.
(ii) Generally, the needs follow the hierarchy i.e., starting from physiological need.
15. Financial and Non-Financial Incentives Incentive means all measures which are used to motivate people to improve performance. These incentives may be broadly classified
(i) Financial Incentives The reward or incentive which can be calculated in terms of money is known as monetary incentive.
The common monetary incentives are
(a) Pay and allowances
(b) Profit sharing
(c) Co-Partnership/stock option
(d) Bonus
(e) Commission
(f) Suggestion system
(g) Productivity linked with wage incentives
(h) Retirement benefits
(i) Perks/Fringe benefits/perquisites
(ii) Non-Financial Incentives The incentives which can not be calculated in terms of money are known as non-financial incentives.
The common non-financial incentives are
(a) Status
(b) Organisational climate
(c) Career advancement
(d) Job enrichment
(e) Employees recognition
(f) Job security
(g) Employee’s participation
(h) Autonomy/Employee empowerment
16. Leadership It is a process of influencing the behaviour of people at work towards the achievement of specified goal.
(i) Features of Leadership
(a) It indicates the ability of an individual to influence others.
(b) It tries to bring change in behaviour.
(c) It shows interpersonal relationship between leader and followers.
(d) It is to achieve common goal.
(e) It is a continuous process.
17. Different Styles of Leadership
(i) Autocratic or Authoritative Leadership
(ii) Democrative or Participative Leadership
(iii) Free-rein or Laissez-Faire Leadership
18. Importance of Leadership
(i) Helps in inspiring and guiding the employees.
(ii) Secures co-operation of the members of organisation.
(iii) Creates confidence.
(iv) Improves productivity.
(v) Improves job satisfaction.
(vi) Improves team-spirit or group cohesion.
19. Qualities of a Good Leader
(i) Physical qualities
(ii) Knowledge, intelligence and scholarship
(iii) Integrity and honesty
(iv) Self-confidence and sense of responsibility
(v) Initiative
(vi) Communication skill
(vii) Decisiveness
(viii) Social skill
20. Communication It can be defined as transmission or exchange of ideas, views message information or instruction between two or more persons by different means.
21. Communication Process
22. Importance of Communication
(i) Act as basis of co-ordination and co-operation
(ii) Act as basis for decision making
(iii) Increase managerial efficiency
(iv) Establish effective leadership
(v) Helps in process of motivation and morale development
(vi) Helps in smooth working of an enterprise
(vii) Promoter co-operation and peace
23. Form of Organisational Communication
(i) Formal Communication It refers to official communication taking place in the organisation.
According to direction of flow, formal communication can be divided into four types
(a) Downward communication
(b) Upward communication
(c) Horizontal communication
(d) Diagonal communication
Common Networks of formal communication are
(a) Wheel pattern (b) Chain pattern
(c) Circle pattern (d) Channel or free flow pattern
(e) Inverted ‘V’
(ii) Informal Communication Informal communication between different members of organisation who are not officially attached to each other is known as Informal communication.
Common networks of informal communication are
(a) Gossip (b) Clusters
(c) Single strand (d) probability
24. Methods of Communication
(i) Oral communication (ii) Written communication
25. Barriers to Effective Communication
(i) Semantic Barrier
(a) Badly expressed message
(b) Symbols with different meanings
(c) Faulty translation
(d) Unclarified assumption
(e) Technical jargon
(f) Body language
(ii) Psychological Barrier
(a) Premature evaluation (b) Lack of attention
(c) Loss by poor retention (d) Distrust
(iii) Organisational Barrier
(a) Organisational policy (b) Rules and regulations
(c) Status difference (d) Complex organisation
(iv) Personal Barriers
(a) Lack of confidence
(b) Lack of incentives
(c) Fear of authority
26. Improving Effective Communication
(i) Clarify the idea
(ii) Consult others
(iii) Use of proper language
(iv) Proper feedback
(v) Communication for present as well as for future
(v) Follow-up
(vii) Good listener
(viii) Open mind
(ix) Completeness of message