CBSE Class 12 Business Studies Revision Notes Chapter 7

Q.1 What are the limitations of Informal Communication ?

Ans

Limitations of Informal Communication are:
(i) Messages tend to get distorted: Message passes through many channels which generally are neither formal nor reliable, so it gets distorted.
(ii) Rumours and Distorted Facts: It often carries rumours and distorted facts.
(iii) Unsystematic and unreliable: It is unsystematic and cannot be relied upon for regularity and timeliness.

Q.2 It is through motivation that managers can inspire their subordinates to give their best to the organisation. In the light of this statement, explain, in brief, the importance of motivation.

Ans

Meaning of Motivation. Motivation may be defined as the process of stimulating people to action to accomplish desired goals. It involves arousing needs and desires in people to initiate and direct their behaviour in a purposive manner. Motivation is a psychological phenomenon which arouses the feeling of needs and wants of individuals.

Importance of motivation: Effectiveness of motivation contributes a great deal to the success of an organisation. It is important to motivate the employees in an organisation because :
(a) Initiates the action of people: Motivation builds the will to work among employees and puts them into action. It enables the management to secure the best utilisation of physical and financial resources.
(b) Promotes improvement in efficiency : Performance of employees depends not only on individual’s abilities but also on his willingness to achieve a higher level of performance. Motivation improves willingness to work leading to improvement in their efficiency.
(c) Ensures achievement of organisational goals: If employees are not motivated, no purpose can be served by planning, organising and staffing.
(d) Motivation promotes harmoney: Management adopts various monetary and non-monetary ways of incentives leading to friendly and cordial relationship between employer and employees. Motivated employees support all changes which are in organisational interest.
(e) Motivation induces harmoney: Motivation brings satisfaction in the work force through monetary incentives like bonus, prizes, etc. and non-monetary incentives like recognition of work promotion opportunities, etc.

(f) Motivation discourages the employee turnover: Motivation helps in reducing absenteeism and turnover. It creates confidence in the employees and secures their loyalty to the organisation. This leads to stability in the work force.

Q.3 Distinguish between upward and downward communication.

Ans

Following table shows the distinction between upward and downward communication:

Basis of Distinction	Upward Communication	Downward Communication
(1) Flow	It flows from subordinates to superiors.	It flows from superiors to subordinates.
(2) Nature	Their nature is suggestive or recommendatory.	Their nature is directive.
(3) Purpose	Its purpose is to put the suggestions or grievances by subordinates before superiors.	Its purpose is to issue orders and instructions to the subordinates to get things done.
(4) Compliance	Superiors can reject or ignore such communication.	Subordinates cannot ignore them ; they have to obey them.

Q.4 Name the elements of directing function under which the superiors

(i) oversee the activities of their subordinates

(ii) assure the subordinates that their needs will be taken care of.

Ans

(i) Supervision
(ii) Motivation

Q.5 The supervisor in a factor gave instructions to a newly recruited worker. However, the worker understood it differently. Which barrier of communication is this? Identify any of its two causes.

Ans

The barrier of communication referred to here is the Semantic barrier of communicaiton.

Semantic barrier arises when a message is decoded differently by different people in the organisation. The two causes because of which it arises are:

i. Badly expressed messages – Sometimes due to lack of vocabulary, or use of wrong words, a manager may not be able to convey the exact meaning to the subordinates.

Q.6 Explain the concept of “Noise” in the communication process in about thirty words.

Ans

Noise refers to the disruption or interference in communication process anywhere along the way. It can occur at any point in the communication process. Noise can be the sound of someone coughing, a truck driving by, two people talking close at hand, a telephone line going dead.

Q.7 What is downward communication ?

Ans

Downward Communication refers to the flow of communication from the higher to the lower level. It implies communication from superiors to subordinates at different levels of the organisation. It includes orders, information, rules, policies, instructions etc.This type of communication helps subordinates in getting useful and timely information that is helpful in their work performance.

Q.8 Explain ‘‘Esteem Needs’’ of an employee.

Ans

Esteem or ego needs consist of two different set of needs :
(i) Self esteem: Self esteem needs include needs for self-respect, self-confidence, competence, autonomy and knowledge. Self esteem needs may be satisfied by recognising good performance, providing challenging job assignments and opportunities to the employees.
(ii) Esteem from others: Other esteem needs relate to reputation, prestige, power, status, recognition and respect of others.

Q.9 Write down the advantages of informal communication.

Ans

Advantages of informal communication are given here:

(i) Employees can develop friendly relations and derive social satisfaction.

(ii)It serves as a substitute where formal communication is not possible.

(iii)It is a means of communication between persons having no link through the official chain of command.

(iv)It can be used for speedy transmission of message.

(v) Employees attitude and reactions can be more easily ascertained by managers through informal interactions.

(vi) It provides a sense of emotional relief and reduces tension.

Q.10 Rahul has been appointed to oversee the work being performed by a team of workers in a factory. Which element of ‘Directing’ is being performed by him? Enumerate his functions.

Ans

Rahul is performing the element of ‘Supervision’.

Supervision means monitoring the progress of routine work of subordinates and guiding them.

The functions of a supervisor are:
i. Maintain day to day contact and friendly relations with workers.
ii. Act as a link between workers and management, conveying management policies & ideas to workers and reporting worker’s grievances to the management.
iii. Ensure performance of work according to the targets set by the management, by assuming responsibility.

Q.11 What do you mean by communication ?

Ans

Communication is the process of transmission of message, information etc. and creation of understanding between two parties.

i. Communication involves sending a message to another, who receives the message and responds to it.
ii. Effective communication takes place when the received message is understood in the same sense by the receiver as the sender intends.
iii. The elements of communication are- sender, message, encoding, media, decoding, receiver, feedback & noise.

Communication can be formal communication and informal communication.

Q.12 Explain the features of directing. Explain the features of directing.

Ans

A.The features of directing are:

i. Directing initiates action: Directing involves guiding and instructing the employees at work according to planning, organising, staffing and controlling functions. So it initiates the actions of the employees.
ii. Directing is a continuous process: Directing takes place throughout the life of the organisation as manager has to guide, supervise and motivate his subordinates continuously.
iii. Directing flows from top to bottom: Directions are given by managers to their subordinates. Every subordinate receives direction and guidelines from the immediate boss thus direction flows from top level to lower level.
iv. Performance oriented: Directing is regarded as executing function which puts plans into action by providing directions and instructions to the subordinates. So directing brings efficiency in performance.

Q.13 How does directing facilitate change in the organisation ?

Ans

Organisation is directing a part of society and any change in the society changes organisational process to keep the organisation ready to face environmental changes. Moreover, there are changes in the organisational structure and in individuals also. In order to incorporate and implement these changes, management motivates and initiates individuals to adopt these changes and guides them in that direction.

Q.14 Explain the meaning of directing in terms of its elements.

Ans

Directing means guiding subordinates in doing work. Directing is the managerial function of guiding inspiring, instructing and overseeing people towards the accomplishment of the desired results.

Following are the elements of directing :
(i) Supervision
(ii) Motivation
(iii) Leadership
(iv) Communication

Q.15 Mohan has been congratulated by his manager for his outstanding performance during the previous month in an employee meet. What is this initiative of his Manager known as? How does it act as a motivator?

Ans

The initiative of Mohan’s manager forms part of Employee Recognition.

Q.16 Supervision facilitates maintenance of discipline. Comment.

Ans

Supervision means looking after the work of subordinates. Supervision facilitates maintenance of discipline by monitoring and guiding the subordinates. Close and strict watch on performance and timely guidance of the employees induces the trait of discipline. Special attention to work, solution of almost every problem at the first instance, builds a pressure on the minds of employees for maintaining discipline.A supervisor motivates the employees towards better work performance.

Q.17 N.R. Narayan Murthy has been known as a ‘Leader’ par excellence as the co- founder and Chairman in Infosys Ltd, the largest software company of India. Explain the importance of his role as the element of directing.

Ans

N.R. Narayan Murthy has been a leader of Infosys Ltd employees, across its functions.

The importance of leadership can be highlighted as below:

i. Leadership helps in influencing behaviour of people and makes them to positively contribute towards the achievement of organizational goal.
ii. Leadership secures cooperation of the members of the organisation by developing the feeling of initiative and enthusiasm in the employees.
iii. Leadership creates confidence in employees by recognizing the hidden talent and qualities of the employees and encourages them to highlight these hidden talents to boost up their confidence level. Leaders recognize the abilities of the subordinate which provides psychological support and confidence to the employees.
iv. Leadership improves productivity by properly utilizing physical, financial and human resources. Leader develops cooperation, confidence and motivation among the employees which results in maximum utilization of resources.
v. Leadership helps in creating team spirit by encouraging the employees to share goal and work collectively. Leaders guide the subordinates to give importance to the group goal rather than individual goals.

Q.18 Explain Maslow’s hierarchy of needs and its importance in the motivation process.

Ans

Motivation may be defined as the process of stimulating people to work enthusiastically for the attainment of organisational goals. It involves arousing needs and desires in people to initiate and direct their behaviour in a particular manner. Motivation is a psychological phenomenon which arouses the feeling of needs and wants of individuals. It causes a behavioural pattern which is goal oriented.
Abraham Maslow, a psychologist, propounded the ‘Malow’s Need Hierarchy Theory’, which was based on human needs.

As per Maslow, there is a hierarchy of five needs which governs human motivation:

Physiological needs: These needs are basic for human survival and include need for food, water, air, shelter, sleep, thirst, etc.

Security or Safety needs: These are the needs for physical safety as well as psychological security and include safety of person and property, security of job and need for a predictable, secure and safe environment.

Social/ Belonging needs: These are needs for belongingness, friendship, love, affection, attention and social acceptance.

Esteem or ego needs: These needs are needs for self esteem and need for other esteem. Self-esteem needs include needs for self-respect, self- confidence, competence, autonomy and knowledge.

Self-actualisation needs: This is the need ‘to be what one is capable of becoming’ and includes need for optimal development of potential abilities, knowledge and skills, need to be creative and achieve self-fulfillment.

According to Maslow, these needs are related to one another and are arranged in an order of hierarchy of prepotency. This may be shown in the following figure:

According to Maslow’s theory the order of individual and organisational needs can be:

Individual Need Hierarchy	Order of preference	Organisation Related Need Hierarchy
Self Fulfillment	5	Achievement of Goals
Status	4	Job Title
Friendship	3	Cordial Relations with Colleagues
Stability of Income	2	Pension Plan
Hunger	1	Basic Salary

Q.19 A supervisor of a manufacturing unit daily gives instructions to his workers for the production to be achieved during the day and make sure that they understand it correctly.

Explain the elements of the process referred to here.

Ans

Process being referred to is “Communication”.

Communication is the process of exchange of information between two or more persons to reach common understanding.

The elements of communication are:

i. Sender – A person who conveys his thoughts or ideas to the receiver. Sender is the source of communication.
ii. Message – It is the content of ideas, feelings, suggestions, orders etc, intended to be communicated.
iii.Encoding – It is the process of converting the message into communication symbols such as words, pictures etc
iv. Media – It is the path through which encoded message is transmitted to receiver.
v. Decoding – It is the process of converting encoded symbols of the sender.
vi. Receiver – the person who receives the communication of the sender.
vii.Feedback – It includes the response or action of receiver indicating the understanding of message of sender.
viii. Noise – It refers to obstruction or hindrance may be caused to sender, message or receiver.

Q.20 Distinguish between a leader and a manager.

Ans

Following table shows distinction between a manager and a leader :

Basis of Distinction	Manager	Leader
(i) Existence	Managers exist only as a part of formal organisation.	Leaders exist as a part of formal as well as informal organisation.
(ii) Focus	Focus of managers is on achieving the organisational goals.	Focus of leaders is on achieving the expectations and aspirations of their followers.
(iii) Authority	Managers enjoy formal authority.	Leaders enjoy acceptance authority. Followers willingly grant them right to lead them.

Q.21 Anna Hazare is known as a leader of the anti-corruption movement in India. What is meant by ‘leadership’? Enumerate the qualities of a good leader.

Ans

Leadership may be defined as the art of influencing the people so that they will strive willingly towards the realisation of common goals. In other words, leadership refers to the equality of the behaviour of the individuals whereby they guide people and their activities in organised efforts.

The qualities of a good leader are:
i. A good leader should have knowledge and competence so that he can easily instruct his subordinates.
ii. A leader should possess high level of integrity and honesty to be a role model to others regarding the ethics and value.
iii. A leader should be an effective motivator. He should understand the needs of people and motivate them through satisfying their needs.

Q.22 Show the difference between Formal and Informal Communication.

Ans

Following table shows distinction between Formal and Informal Communication

Basis of Distinction	Formal Communication	Informal Communication
1.Mode	Mode of formal communication is written.	Informal communication is verbal
2. Direct and Indirect	It is based upon indirect written documents.	It is based upon direct gestures.
3. Proof	Since it is written proves are automatically maintained.	Informal communication is often verbal or gestural, hence lacks the maintenance of proves.
4. Relations	It is the result of authorities granted and duty assigned by the organization.	Is the result of mutual relationship among employees.
5. Authenticity	Messages are clear and authentic and in writing, there is no cause for rumour or misunderstanding.	Informal nature of communication spreads rumours and creates misunderstanding. Messages are not so authentic.

Q.23 What do you understand by ‘grapevine’?

Ans

Generally Informal communication is termed as grapevine.
Informal communication grows hayward and in all directions as it is the communication between individuals and groups, which are not officially recognised. This type of communication is the result of social interaction and satisfies social needs. Such informal paths are referred to as ‘grapevine’.

Grapevine sperads rapidly and at times gets distorted. It is very difficult to detect the source of such information.
It also generates rumors.

Q.24 List out any three characteristics of informal communication.

Ans

The characteristics of informal communication are :

1. It is verbal
2. It is not authentic and authorised.
3. It is spontaneous, implicit and flexible.

Q.25 Briefly explain the different leadership styles.

Ans

The different leadership styles are:

i. Authoritative Leadership– This refers to a ‘boss centered’ leadership style, characterised by maximum possible centralisation of authority, strict control and supervision, unilateral decision making and one way communication. In this style, the leader gives orders & insists his followers to obey them.

Policies are determined without consulting the subordinates. The leader does not provide any information about future plans. The subordinates do not have authority to influence leader’s decision.

ii. Laissez Faire leadership– This refers to ‘subordinate centered’ leadership style having complete delegation of authority and free flow of communication. The leader gives complete freedom to subordinates
He/ she avoids usage of power and lets the subordinates decide their own goals & sort out their problems themselves. In this style, the leader does not interfere in the affairs of subordinates

iii. Democratic Leadership– This refers to a ‘group centered’ leadership style, having delegation of authority, participative decision making and two way communication. Here, the policies are framed after consulting with the subordinates
The leader favours decision making by the group, which helps in

a. Improving attitude & morale of employees towards job & the organisation
b. Allowing the subordinates to become a part of the team
c. Better decision making by leaders

Q.26 Explain the communication network and how it works ?

Ans

Communication network refers to the pattern through which members of work groups communicate. The communication network among people may take the form of wheel, chain, inverted V, circle or free flow network as shown in following diagram.

(i) Wheel network- All communication flows through one central person who is generally the group leader. It is the most centralised network in the sense one person receives and disseminates all information.

(ii) Inverted V network– In this a subordinate can communicate with his/ her immediate superior as well as superior’s superior.

(iii) Chain network– In this, the persons at the end of the chain interact with only one person but other members communicate with other two.

(iv) Circle network– This permits each person to communicate with two in the group, his/ her adjoining person.

(v) Free Flow network – This permits all members to communicate with others. It is the most decentralised network and allows free flow of information among members. Everyone participates equally, nobody has exclusive control on information.

Network of Communication

Q.27 List out barriers to effective communication.

Ans

There are four major barriers to Effective communication:

1. Semantic Barriers: These are basically language related Barriers.

2. Psychological or Emotional Barriers: These are the outcome of the mental condition of the parties involved in the process of communication.

3.Organisational Barriers: Organisational structure greatly affects the capability of the employees with reference to communication process.

4.Personal Barriers: These are directly connected with the sender and the receiver.

These are further subdevided as:

Barriers to Effective Communication

•Semantic Barriers

•Badly Expressed Message

•Symbols or words with different meanings

•Faulty Translation

•Unclarified Assumption

•Technical Jargon

•Body Language and gesture decoding

•Psychological and emotional barriers

•Premature Evaluation

•Lack of Attention

•Loss by transmission and poor retention

•Distrust

•Organisational Barriers

•Organisational Policies

•Rules and Regulations

•Status

•Status

•Complexity in organisational Structure

•Organisational Facilities

•Personal Barriers

•Barriers Related to superiors like: 1.Fear of Challange of authority,2. Lack of confidence in subordinates

Q.28 State the importance of the function of Directing.

Ans

The importance of directing can be gauged by the following:

1. Integrates employees’ efforts: Many employees work in an organisation. Success of an organisation depends upon the successful completion of the jobs of all of these employees. In case if anyone in this chain does not perform up to the mark, the performance of remaining employees gets adversely affected. The manager establishes the coordination among these employees and their efforts by directing them.

2.Acts as a means of Motivation: Only well motivated employees can be helpful in effectively achieving the organisation goals because motivated employees work with a feeling of belongingness and full dedication. Through the medium of Direction a manager shapes the mindset and views of his subordinates in a way so that they wishfully accept the changes.

3.Facilitates to Implement Changes: Directing facilitates introduction of needed changes in the organisation as managers are able to shape and direct the minds of employees in away so that instead of showing reluctance towards changes they willing accept them.

4.Creates Balance in the Organisation: A leader is capable of solving any conflict be it employee vs. employee or employee vs. employer underneath his influence. He induces democracy in the process of management and directs to settle down the clashes and creates a balance in the organisation.

Q.29 This function of management is known as “management in action”. Identify it.

Ans

Directing

Q.30 Which pattern of communication indicates one source of information?

Ans

Wheel pattern, wherein the superior is the hub of the wheel.

Q.31 Name the communication barrier in which the successive transmissions of the message results in loss of, or transmission of inaccurate information.

Ans

Psychological barrier.

Q.32 Define motivators.

Ans

Motivators are the incentives or techniques used to motivate the people.

Q.33 Give any two principles of directing.

Ans

Two Principles of Directing:
i. Maximum individual contribution
ii. Harmony of objectives

Q.34 Name the kind of monetary incentive in which employees are offered company’s share at a lower price than market price.

Ans

Co- partnership or Stock Options

Q.35 Define Motivation.

Ans

Motivation is the process of stimulating people to action to accomplish desired goals.

Q.36 Suggestions and reactions are included in which type of formal communication?

Ans

Upward communication

Q.37 Name the element of directing which refers to the ability of influencing people to strike willingly for mutual objective.

Ans

Leadership

Q.38 Explain any four functions performed by a supervisor that are vital to any organisation.

Ans

A supervisor performs following functions that are vital to any organisation:
i.He maintains day-to-day contact and friendly relations with the workers. He acts as a guide, friend and philosopher to the workers.
ii.He acts as a connecting link between the workers and management by conveying its policies and ideas to the workers and workers’ problems to the management.
iii.He ensures that the workers perform efficiently as per the predefined targets to achieve overall goals of the organisation.
iv. Supervisor build high morale among workers through good leadership. He motivates them positively towards achievement of organisational goals.

Q.39 Y Ltd has obtained a huge order to process within a tight deadline. It needs to motivate the workers with incentives. Mention any two monetary and two non monetary incentives of motivation.

Ans

The two monetary incentives are:
i. Profit sharing: It means to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improve their performance and contribute to increase in profits.
ii. Retirement Benefits: It means the benefits which an employee will get after he retires from the position. Such benefits are provident funds, pension, gratuity, etc. Such benefits provide financial security even after their retirement. This acts as an incentive when they are in service in the organisation.

The two non financial incentives are:
i. Status: Status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, etc, indicates the status given to a person holding a managerial position.
ii. Job enrichment: It is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill and provides the opportunity for personal growth and a meaningful work experience. An enriched job becomes a source of motivation.

Q.40 Suggest which element of directing is suitable under the following situations and why?
i. Workers are always unwilling to take up any kind of work. Due to rise in demand, firm wants them to cooperate to meet pending orders. The supervisor is finding it difficult to cope with this situation.
ii. Workers of a factory are going to production manager for guidance and information. As a result he is overburdened with the work. Advise him with which function of directing he can reduce his work load.

Ans

i. In situation 1- manager must use ‘Motivation’, an element of directing to induce workers and to get willing cooperation of workers. The importance of motivation is:
a) Motivation improves performance levels: Performance of employees depends not only on individual’s abilities but also on his willingness to achieve a higher level of performance. Motivation improves willingness to work leading to improvement in their efficiency.
b) Motivation helps to change negative attitude into positive attitude: The reason for indifferent attitude towards work of employees is lack of motivation. If managers identify motivational needs of employees and provide suitable incentives, employees may not think of leaving the organisation.

ii. In situation 2- production manager must appoint a supervisor who will act as a link between the production manager and the workers. He will also play the role of a guide to help workers to solve their problems.
The functions/ importance of supervisor are:
i. Supervisor maintains day to day contact and maintains friendly relations with workers. A good supervisor acts as a guide, friend and philosopher to the workers.
ii. Supervisor acts as a link between workers and management. He conveys management ideas to the workers on one hand and workers problems to the management on the other.
iii. Supervisor maintains group unity among workers by sorting out internal difficulties and maintains harmony among workers.
iv. Supervisor analyses the work performed and gives feedback to the workers and suggests ways and means of developing work skills.

Q.41 Hotel Queensland has been booked for a marriage party to be scheduled this evening. The owner of the hotel calls his employees and entrusts different tasks to each of them for organising the marriage function smoothly.

What is this function of management called? Mention its characteristics.

Ans

The function of management referred to in here is known as directing.

Directing refers to the process of instructing, guiding,

counseling, motivating and leading people in the organisation to achieve its objectives. Directing is a managerial process which takes place throughout the life of an organisation.

The following are its characteristics:

(i)Directing initiates action: A manager has to perform this function along with planning, organising, staffing and controlling while discharging his duties in the organisation. Directing initiates action in the organisation.

(ii) Directing takes place at every level of management: Every manager, from top executive to supervisor performs the function of directing.

(iii) Directing is a continuous process: Directing is a continuous activity. It takes place throughout the life of the organisation irrespective of people occupying managerial positions.

(iv) Directing flows from top to bottom: Directing is first initiated at top level and flows to the bottom through organisational hierarchy. It means that every manager can direct his immediate subordinate and take instructions from his immediate boss.

Q.42 In any organisation, a manager has to deal with people with diverse background and expectations. In this, certain guiding principles of directing play an important role in directing process.

What are these guiding principles? Explain.

Ans

(i) Maximum individual contribution: This principle emphasises that directing techniques must help every individual in the organisation to contribute to his maximum potential for achievement of organisational objectives. It should

bring out untapped energies of employees for the efficiency of

organisation.

(ii) Harmony of objectives: We generally find that individual objectives of employees and the organizational objectives as understood are conflicting to each other. For example, an employee may expect attractive salary and monetary benefits to fulfill his personal needs. The organisation may expect employees to improve productivity to achieve expected profits. But, good directing should provide harmony by convincing that employee rewards and work efficiency are complimentary to each other.

(iii) Unity of Command: This principle insists that a person in the organisation should receive instructions from one superior

only. If instructions are received from more than one, it creates confusion, conflict and disorder in the organisation.

(iv) Appropriateness of direction technique: According to this principle, appropriate motivational and leadership technique should be used while directing the people.For example, for some people money can act as powerful motivator while for others promotion may act as effective motivator.

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

(vi) Use of informal organisation: A manager should realise that informal groups or organisations exist within every formal organisation.

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

(viii) Follow through: Simply giving of an order is not sufficient. Managers should follow it up by reviewing continuously whether orders are being implemented or there is some problem in implementation. Accordingly, suitable modifications should be made in the directions.

Q.43 Samuel has joined as Supervisor in a garment export factory. Mention the functions performed by him as a supervisor of an organisation.

Ans

The functions performed by Samuel as a Supervisor are as follows:

(i) He maintains day-to-day contact and maintains friendly relations with workers. A good supervisor acts as a guide, friend and philosopher to the workers.

(ii) He acts as a link between workers and management. He conveys management ideas to the workers on one hand and workers problems to the management on the other. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees.

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

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

(v) He provides good on the-job training to the workers and employees. A skilled and knowledgeable supervisor can build efficient team of workers.

(vi) He analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills.

Q.44 Psychologists say it is motivation which stimulates people to take up work voluntary. What is meant by motivation? Explain its importance.

Ans

Motivation means incitement or inducement to act or move. In business context, it means the process of making subordinates

to act in a desired manner to achieve certain organisational goals. It is important as it helps to identify and satisfy the needs of human resources in the organisation and thereby helps in improving their performance. It is the reason why every major organisation develops various kinds of motivational programmes and spends a lot of money on these programmes.

The importance of motivation can be pointed out by the following benefits:

(i) Motivation helps to improve performance levels of employees as well as the organisation.

(ii) Motivation helps to change negative or indifferent attitudes of employee to positive attitudes so as to achieve organizational goals.

(iii) Motivation helps to reduce employee turnover and thereby saves the cost of new recruitment and training.

(iv) Motivation helps to reduce absenteeism in the organisation. Some important reasons for absenteeism are–bad working conditions, inadequate rewards, lack of recognition, poor relations with supervisors and colleagues,

etc.

(v) Motivation helps managers to introduce changes smoothly

without much resistance from people.

Q.45 Mention which type of Maslow’s Need is fulfilled in the following examples:

a) More than 120 employees of ARM Ltd. were involved in developing ideas to improve the running of the company. Their ideas led to a wide variety of initiatives and an increase use of social networking.

b) Teamwork within ARM provided employees with the social opportunity to share knowledge and ideas across the organisation. Employees could go to senior managers at any time with questions or issues. ARM also used different methods of communications such as internal conferences, newsletters, internal blogs. ARM’s people frequently take part in team events such as marathons or team bike rides. ARM Ltd. is also known for timely salary disbursement to its employees.

Ans

a) Self esteem – In this case, the responsibilities associated with this helped individual to fulfill their potential in a creative way, providing them the opportunity for developing self esteem. This process is called self actualisation.

b) Safety and Psychological needs – Safety and Psychological needs are addressed through the above case as good working environment and competitive pay. ARM encourages its employees to work hard and also to have fun.

Q.46 An individual in a structured organisation moves on upward with a basic salary, pension plan, cordial relations with colleagues, job title and achievement of goals. Relate each of these organisational needs examples with Maslow’s Need Hierarchy Theory.

Ans

Organisational Needs	Maslow’s Need Hierarchy Theory
Basic Salary	Basic Physiological needs
Pension plan	Safety and Security needs
Cordial relations with colleagues	Affiliation/ belongingness needs
Job Title	Esteem Needs
Achievement of goals	Self Actualisation needs

Q.47 Explain productivity linked wage incentives and Co-partnership/Stock option.

Ans

Productivity linked wage incentives and co-partnership / stock option are financial incentives. Financial incentives refer to

incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better

performance.

Productivity linked wage incentives: Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.

Co-partnership/Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to

the employees and makes them to contribute for the growth

of the organisation. In Infosys the scheme of stock option has

been implemented as a part of managerial compensation.

Q.48 Explain autocratic and democratic leader.

Ans

Autocratic or Authoritarian leader gives orders and expects his subordinates to obey those orders. If a manager is following this style then communication is only way and subordinates have to obey commands of the manager. This leader does not wish to be contradicted. 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.

Democratic or participative leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision making. This kind of leadership style is more common now-a-days since leaders also recognise that people perform best if they have set their own objectives. They also need to respect other’s opinion and support subordinates to perform their duties and accomplish organisational objectives.

Q.49 Diwakar does not believe in the use of power unless it is absolutely essential. What kind of leadership style is this? Explain.

Ans

Here the leadership style is Laissez faire. The followers are given high degree of independence to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolving issues themselves. The manager is there only to support them and supply them the required information to complete the task assigned. At the same time, the subordinate assumes responsibility for the work to be performed.

Q.50 Communications plays a key role in the success of a manager. What is meant by communication? Elaborate the elements of communication.

Ans

The word communication has been derived from the Latin word

‘communis’ which means ‘common’ which consequently implies common understanding. It is understood as a process of exchange of ideas, views, facts, feelings etc., between or among people to create common understanding.

Communication has been defined as a process. The elements involved in communication process are explained below:

(i) Sender: Sender means person who conveys his thoughts or ideas to the receiver. The sender represents source of communication.

(ii)Message: It is the content of ideas, feelings, suggestions, order etc., intended to be communicated.

(iii) Encoding: It is the process of converting the message into communication symbols such as words, pictures, gestures etc.,

(iv) Media: It is the path though which encoded message is transmitted to receiver. The channel may be in written form, face to face, phone call, internet etc.,

(v) Decoding: It is the process of converting encoded symbols of the sender.

(vi) Receiver: The person who receives communication of the sender.

(vii) Feedback: It includes all those actions of receiver indicating that he has received and understood

message of sender.

(viii) Noise: Noise means some obstruction or hindrance to

communication. This hindrance may be caused to sender, message or receiver. Some examples of noise are:

(a) Ambiguous symbols that lead to faulty encoding.

(b) A poor telephone connection.

(c) An inattentive receiver.

(d) Faulty decoding (attaching wrong meanings to message).

(e) Prejudices obstructing the poor understanding of message.

(f) Gestures and postures that may distort the message.

Q.51 Showtime is an innovative advertisement making company. Leo is a dynamic manager who has recently joined the organisation. He receives complete support from the management. There is proper infrastructure, planning mechanism and subordinate support. He gives orders and starts the actual working of a new unit from the 1st of April. His schedule is very hectic. The demanding work keeps him occupied throughout the day. He is busy giving messages, talking to his subordinates or seniors, etc. throughout the day. One day he meets his friend Kate who is working at the lower level management though he himself is a part of middle level management. He finds that even Kate is involved in communicating and supervising his employees throughout the year though he works at the lower level management. Similar is the case with his seniors working at the higher level management. He feels relaxed after knowing this and continues his work with even more dedication.

State the function of management is highlighted in the above case. Also state its features.

Ans

The function of management which is highlighted in the above case is directing. It is the process of instructing, guiding, counseling, motivating and leading people in the organisation to achieve its planned objective.

The features of directing highlighted here are:

Initiates Action: Directing sets the action into plans, starts the actual work of converting plans into results and serves the executive function of management.

Pervasive: Directing exists at all levels, locations and operations of an organization. It functions wherever superior-subordinate relations exists.

Continuous Process: Directing continues to take place throughout the lifetime of an organization. It is an ongoing process of supervising, guiding & inspiring subordinates

Q.52 Maureen is a branch manager of a bank in a suburban area of a city. The employees of this branch have not been able to do very well in the recent past. She is not happy due to their poor performance and decides to know the reason behind it. She finds out that each employee has some reason to join the bank. This reason if satisfied could improve the performance of that person. Which element of directing has been identified by Maureen here? Also state atleast two interrelated concepts.

Ans

The concept of directing identified by maureen is motive. Motive is the inner psychological state of an individual that energises, activates and directs his behavior towards goals.
Other interrelated concept is motivation and motivator.

Motivation is the process of stimulating people to action for accomplishing desired goals.

Motivator is techniques or means which are used for motivating people in the organization.

Q.53 An organisation has the policy of providing monetary incentives. It is aware that to improve the performance of the employees their needs must be satisfied. Organisation has come up with a plan of increasing wages of workers who perform beyond a definite level. By the yearend, it has some other plans. It wants to give an incentive to the workers over and above the wages. The workers have started putting more efforts. The company has announced that after this month, it will be give stockss to the exceptionally performing workers. Company is expecting to get a good response from the employees through this announcement in terms of better performance and contribution. What type of incentive is highlighted in the above case? Also state the different types of these incentives highlighted in the above case.

Ans

The type of incentive highlighted in the above case is financial incentive. These are the incentives in direct monetary form or measurable in monetary terms.

Different types of incentives highlighted in the above case are:

• • Productivity linked wage incentive: This is offering higher wages for more productivity. This can be given at group or individual level
  • Bonus: This is an extra reward offered to employees for better performance, over & above their wages/ salary
  • Profit sharing: This is providing share to employees in organisational profits.

Q.54 A group in Coolin Inc. is going through the process of exchange of concepts and ideas on different issues connected with the proper functioning of different operations in the company. The group has arrived at a common understanding about the time, delivery and arrangement of schedules and machines. What is the process highlighted here? Also explain its types.

Ans

The process highlighted in the above case is communication. It is the process of transfer of information from the sender to the receiver with the information being understood by the receiver.

Communication is of two types: Formal and Informal.

Formal communication: It flows through the official channels designed in the organisation chart and takes place between superior & subordinate or among same cadre employees in the organization. It is mostly expressed in written form.

Informal communication: It takes place without following the formal lines of communication and spreads throughout the organisation irrespective of authority levels. It is the result of social interaction among employees.

Q.55 Sierra is a senior middle level manager. She is a departmental head of marketing in a Emiena Inc. She is very good at conveying what she means to the subordinates, and not just that, she is also a very good listener. She has led her team successfully on several occasions. The reason for her exceptional success has been her ability to understand the needs of her team and getting extra work done by making them happy. Since her college days her level of courage is high. She has the ability to take opportunities and use them to her best ability. They say that she knows a lot about her core area and this has made her irreplaceable also. Everybody hopes that she is going to be a part of the higher management soon as her company wants to benefit maximum by tapping her potential. State the concept of directing has been highlighted in the above case and also give the types of this concept.

Ans

The concept of directing highlighted in the above case is leadership. Leadership is the process of influencing behaviour of people by making them struggle voluntarily towards achievement of organisational objectives. Style of leadership depends on situations, nature of task, types of followers, leader’s philosophy, personality, experience and value system, etc.

Authoritative Leadership: It refers to a ‘boss centered’ leadership style, characterised by maximum possible centralisation of authority, strict control and supervision, unilateral decision making and one way communication.

Democratic Leadership: This refers to a ‘group centered’ leadership style, having delegation of authority, participative decision making and two way communication.

Laissez Faire Leadership: It refers to ‘subordinate centered’ leadership style having complete delegation of authority and free flow of communication.

Q.56 Enna, a recently appointed production manager of Enviorly Ltd. has decided to produce jute bags in place of plastic ones because of the ban that was imposed on plastic ones. She set a target of producing 1500 jute bags in a day. It was reported that the employees were not able to achieve the target.

After analysis she found that employees were demotivated and not putting in their best for achieving the target. Enna’s behavior is good and positive towards the employees. Therefore she announced several incentives for the employees:

• Giving the award or certificate for best performance Rewarding an employee for giving good suggestions
• Appreciating the employees for good performance

a) Explain the functions of management highlighted in the above paragraph.

b) Identify the‘ incentive’ used to motivate the employees.

Ans

a) Functions performed by the Enna here are controlling and directing.

Directing: It refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.

Controlling: This is the function that ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals.

Non monetary incentives are used by Enna to motivate the employees. She uses Employee recognition programme for this. Employees have a need for evaluation of their work and due recognition. Recognition means acknowledgment with a show of appreciation.

Q.57 Ishita is working as the Human Resource Consultant in a firm manufacturing soaps, which is facing a problem of high employee turnover. The CEO of the company has invited suggestions from her for retaining the talented employees & reducing the employee turnover. Ishita recommends that the good employees be rewarded in a way that it creates a feeling of ownership among the employees and at the same time makes them contribute towards the growth of the organization.

a) State the incentive and explain its type, that has been suggested by Ishita to the CEO of the company.

b) Explain any two other incentives of the same type.

Ans

a) The type of incentive that is suggested by Ishita is financial incentive. These are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. Co -Partnership/ Stock Option was suggested to inculcate belongingness among the employees. In this, employees are offered company shares at a predetermined price that is lower than market price. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation.
b) Other financial incentives: Productivity linked wage incentives and Bonus

• Productivity linked wage: Various wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.
• Bonus: It is an incentive offered over and above the wages/ salary to the employees.

Q.58 Olive Ltd. deals in Fast Moving Consumer Goods. It employs 120 workers and 12 operative managers for guiding and supporting workers in operating the machinery. The company has a policy of giving leaves as per the requirement of the workers. Workers are usually gives leaves on festivals and other special occasions. Recently on a festival, it received a big order. Workers are keen to take holidays whereas management is pressing hard for overtime. This matter was placed before the HR Manager who called the meeting of operative managers and worker were informed about the changes in the incentive plan that states payment of 1.5 times of wages for working overtime and triple wages for working on holidays. Workers without any pressure themselves took limited holidays and were able to increase their earning by working overtime and on holidays. During Board of Directors meeting, HR Manager was asked to update the management for achieving higher output, meeting timely supplies without any confrontation with workers. Personnel Manager replied, “I just used a carrot with no sticks approach”.
Quote the lines from above paragraph and state any two elements of directing.

Ans

The two elements of directing refered to above case are supervision and motivation.

Supervision is guiding the efforts of employees and other resources to achieve the desired results.

Supervision- It employs 120 workers and 12 operative managers…………….support to the workers.

Motivation refers to the process of stimulating people to action to accomplish desired goals.

Motivation: payment of 1.5 times of wages ………. working on holiday

Q.59 William owns a mid size gardening business, that he started 20 years ago. William believes that providing a quality service is important to the success. William’s business has a number of stakeholder groups 10 including 4 full-time and 8 part-time workers who have all been employed by him since the inception. Each worker is expected to do any job that William asks them to do. All workers are paid an hourly wage rate and are entitled to get bonus if customers recommend the business to other people. William is always thinking about different ways to improve the motivation of his workers.

a)Why do you think is William doing this?

b)What is the method used by William to boost their morale?

Ans

a. It is important to motivate employees because of the following reasons:

• Helps in improving performance levels of employees. Well motivated employees devote all their energies for optimum performance in their work
• Helps in changing indifferent attitudes of employee to positive attitudes to achieve organisational goals
• Enables cost saving by reducing employee turnover
• Helps to introduce changes without much resistance from people

b.William provides financial incentives to people to keep them motivated. These are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. These are:

• Pay & Allowances: Williams provide time wages. These include basic pay, dearness allowance and other allowances.
• Bonus: It is offered over and above the wages/ salary to the employees.

Q.60 Time Inc. uses job production to make clocks. It buys all its raw materials locally and exports 60% of its products. The business has high fixed costs. Time Inc. has 25 skilled employees. Many of them are part-time workers and delegation is prefered. All workers receive an email from management every day to keep them informed about production issues. According to The Human Resources Director, it is more cost-effective to try to retain our existing workers rather than to recruit new employees. The Director wants to reduce barriers to communication, as he knows effective communication is important to help Time Inc. meet its objectives.

1. Can you find out the method of communication used by the company here?
2. Identify TWO possible barriers to communication for Time Inc. For each barrier, explain how the company could reduce or remove the barriers.

Ans

a) Formal communication is used by Time Inc. It flows through official channels designed in the organisation chart. This essentially a downward communication which indicates communication from a superior to subordinate.

b) Possible barriers to communication can be:

i.Badly expressed message: Meaning may not be conveyed by a manager to his subordinates which can be due to inadequate vocabulary, usage of wrong words, omission of needed words etc.

ii.Technical jargon: Sometimes specialists use technical jargon while explaining to persons who may not understand the actual meaning of many such words.

Barriers can be removed by

• Clarify the ideas before communication
• Communicate according to the needs of receive
• Communicate for present as well as future
• Follow up communications
• Ensure proper feedback

Q.61 UltraPick is a social enterprise. UltraPick employs 40 people in four small towns in different parts of the country. They work from home and make a range of clutches from pieces of old fabric. Kiara started the business three years ago using micro-finance. Last year UltraPick’s revenue was $700. Kiara said: ‘Our external stakeholders want UltraPick to employ people in three more towns. Getting a bank loan to expand the business will be a problem. What should I do about management? How will I inform workers about possible expansion.

• Suggest Kiara the ways that she can use to communicate all these concerns.

Ans

Kiara can use following ways of internal communication:

i. Meeting: This helps to see the reactions to the idea proposed and facilitates fruitful discussions.

ii. Email: This will allow people to read information or have copy of it at their convenience.

Q.62 Give any three points to highlight the importance of directing function of management.

Ans

Importance of directing function of management:

• Helps to initiate action: Directing helps in initiating action of people in the organisation towards achieving of desired objectives.
• Helps in integration of employees efforts: Directing integrates employees efforts in the organisation in a manner that every person contributes to the organisational performance.
• Acts as a guiding factor: Directing guides employees to realise their potential and skills by motivating and providing effective leadership.

Q.63 There is role of directing wherever there is superior-subordinate relationship. Explain.

Ans

Directing function is performed by every manager regardless of the level of management from top executive to supervisor. It exists wherever there is superior-subordinate relationship is there.

Q.64 Directing function is performed by every manager regardless of the level of management from top executive to supervisor.

Ans

Every manager, from top level executive to supervisory level, performs the function of directing. The directing takes place wherever superior – subordinate relations exist.

Q.65 A manager needs to use several ways to lead, motivate and inspire the subordinates and to communicate with them as required. What are these ways collectively known as?

Ans

Ways to lead, motivate and inspire the subordinates and to communicate with them as required are the part of directing function of management. Thus we can say that directing is the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.

Q.66 At what level of management, directing takes place?

Ans

Directing takes place wherever superior – subordinate relations exist. Every manager, from top executive to supervisor performs the function of directing thus directing takes place at all the levels of management.

Q.67 Identify the flow of directing through organisational hierarchy.

Ans

Directing is initiated at top level first and then it flows to the bottom through organisational hierarchy.

Q.68 Tina was appointed as the supervisor in Yolt Plc. She had a small team of 6 people under her who she had to guide, supervise and motivate. But she was of the opinion that this directing is just a one time process. Can you help her in clearing this confusion?

Ans

Directing takes place throughout the life of the organisation irrespective of people occupying managerial positions. It is a continuous process.

Q.69 How does directing ensures that the individuals work for organisational goals?

Ans

Directing integrates employees efforts in the organisation in a manner that every individual effort contributes to the organisational performance. We can say that a manager with good leadership skills will be able to motivate the employees working under him in a way that individual efforts and team effort leads to achievement of organisational goals and objectives.

Q.70 Explain any three guiding principles that may help in the directing process.

Ans

Some of the guiding principles that may help in the directing process are:

1.Maximum individual contribution: This principle says that directing techniques should help one to contribute to his maximum potential for achieving the organisational objectives. It should be able to bring out untappted energies of employees for the efficiency of organisation.

2. Unity of Command: A person in the organisation should receive instructions from one superior only to avoid confusion, conflict and disorder in the organisation.

3. Use of informal organisation: The fact that informal groups or organisations exist within every formal organisation shall be accepted. A manager should spot and make use of such organisations for effective directing.

Q.71 Explain how ‘Follow Through’ can help in directing.

Ans

It is important that Managers should follow up by reviewing continuously whether the orders are being carried on accordingly and shall also see for any problem that exists in implementing them. Suitable modifications should be made in the directions if required.

Q.72 Supervisor is categorised into which level of management?

Ans

Supervisor is the part of Lower Level of Management. Infact, lower level of management is also known as supervisory level.

Q.73 What are the two ways in which supervision can be understood?

Ans

The term supervision can be understood in two ways. Firstly, as an element of directing and then as a function performed by supervisors in the organisational hierarchy.

Q.74 Supervision is the work of only top level of management. Explain.

Ans

Supervision is also pervasive and exists everywhere with the existence of superior subordinate relationships. Every manager in the organisation supervises his/her subordinates.

Q.75 Why are the functions and performance of the supervisor vital to any organisation?

Ans

Functions and performance of the supervisor vital to any organisation because he is directly related with workers whereas other managers have no direct touch with bottom level workers.

Q.76 Explain supervision as an element of directing.

Ans

Supervision refers to the process of overseeing what is being done by subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets.

Q.77 Do you agree that Supervisor acts as a link between workers and management? Why or Why not.

Ans

Supervisor conveys ideas of management to the workers and workers problems to the management. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees.

Q.78 Williams was appointed supervisor in Polin Inc. He is a guide, friend and philosopher to the workers. How important is it that a supervisor shall be fair and good to the employees?

Ans

A good supervisor ensures performance of work is according to the targets set. He is responsible for achieving task and motivating his workers effectively. He plays an important role in maintaining group unity among workers placed under his control.

Q.79 Top level management is not in touch with workers directly. They have a link between them and workers who they trust upon for forseeing the work and targets. Explain.

Ans

Supervisor conveys ideas of management to the workers and workers problems to the management. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees.

Q.80 How does a supervisor ensures that performance of work according to the targets set?

Ans

Supervisor ensures performance of work according to the targets set by

• Taking responsibility for task achievement
• Motivating his workers effectively
• Providing good on-the-job training to the workers and employees
• analysing the work performed and giving feedback to the workers
• Suggesting ways and means of developing work skills

Q.81 Give any three points to highlight importance of supervision.

Ans

Following points highlight the importance of supervision:

• Supervisor ensures that performance of work is according to the targets set. He takes responsibility for task achievement and motivates his workers effectively
• Supervisor gives good on-the-job training to the workers and employees. A skilled and knowledgeable supervisor can build efficient team of workers
• Supervisory leadership plays an important role in motivating the workers in the organisation. A supervisor with good leadership qualities can build up high morale among workers.

Q.82 Besides supervision, what are the other elements of directing?

Ans

Directing can broadly be categorised into four categories or elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Q.83 How does supervision ensures:

1. Being link between workers and management
2. Maintaining unity
3. Training workers under him

Ans

1. Being link between workers and management: Supervisor conveys ideas of management to the workers and workers problems to the management. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees.
2. Maintaining unity: Supervisor plays an important role in ensuring group unity. He resolves internal differences and tries to maintain harmony among them.
3. Training workers under him: Supervisor provides good on-the-job training to the workers. A skilled and knowledgeable supervisor has ability to build efficient team of workers.

Q.84 Which one will you associate two way communication with: Democratic leadership or Autocratice Leadership?

Ans

Two-way communication is more time-consuming because the receiver has the opportunity to feedback and to question what has been said or written. The receiver is invited to contribute to the process so this kind of communication is often associated with democratic forms of leadership. If the message is complex, two-way communication is far more effective, and probably accurate, than one-way communication.

Q.85 Which style of leadership will you associate Team based working with?

Ans

Laissez faire or Free-rein leader gives a high degree of independence to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolve issues themselves.

Q.86 Ishita feels that some of her people are highly skilled and motivated and do not need interference in decision making. What style of leadership is she following?

Ans

Ishita follows Laissez faire style of leadership. High degree of independence is given to the employees to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolve issues themselves. Such leader supports the team whenever required but the subordinate assumes responsibility for the work to be performed.

Q.87 Richard Branson is famous for his democratic leadership style. He says that every single employee at Virgin is an entrepreneur and is therefore encouraged to imply his own knowledge and ideas rather than following superior orders blindly.

Why do you think such leadership style preferred by Richard?

Ans

Richard Branson is a democratic leader. Such leader develop action plans and makes decisions in consultation with his subordinates. He allows them to participate in decision making. Such leaders respect the other’s opinion and support subordinates to perform their duties and accomplish organisational objectives.

Q.88 Owner of the well known electronics company Foxconn, Terry Gou, has contributed significantly in error free production and managing to deliver targets on time. He does not allow his employees to work independently and clearly states requirements and expectation related to tasks. Can you let us know what kind of leader Terry Gou is?

Ans

Terry Gou is an Autocratic Leader. Such leader gives orders and expects his subordinates to follow such orders. This leadership style is effective in getting productivity in many situations and also facilitates quick decision making.

Q.89 Olivia allows team to take charge of their own decision-making for all the important tasks. She sets the targets but empower team members to decide how these objectives are achieved. Comment.

Ans

Olivia follows Laissez faire style of leadership. High degree of independence is given to the employees to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolve issues themselves. Such leader supports the team whenever required but the subordinate assumes responsibility for the work to be performed.

Q.90 Identify the leadership style associated with each of the following case:

1. “I tell”

2. “I share, consult and allow”

3. “Hands-Off, trust team to decide”

Ans

1. Autocratic Style of leadership

2. Democratic Style of leadership

3. Laissez faire style of leadership

Q.91 An autocratic approach may give a business set and clear direction but it may also lead managers to undervalue or ignore input from their teams. Explain.

Ans

Autocratic style of leadership encourage only one way communication. Such leaders do not change or wish to be contradicted. Such leaders tend to ignore talent of employees.

Q.92 Lauren, a store leader, when planning a major stock reduction programme, tells his managers to put forward ideas and develop plans. This increases team motivation and encourages creativity. Elaborate.

Ans

Lauren follows a democratic style of leadership. Such leader develop action plans and makes decisions in consultation with his subordinates. He allows them to participate in decision making. Such leaders respect the other’s opinion and support subordinates to perform their duties and accomplish organisational objectives.

Q.93 Vihan leaves an experienced departmental manager to develop a budget. This is because he trusts that manager being knowledgeable about the needs of department requires no intervention. Explain.

Ans

Vihan follows Laissez-faire style of leadership. High degree of independence is given to the employees to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolve issues themselves. Such leader supports the team whenever required but the subordinate assumes responsibility for the work to be performed.

Q.94 Selena once read that the degree to which employees in an organisation are encouraged to be innovative & take risks depends on how well motivated and encouraged they are. Do you think motivation is important?

Ans

It is very important to keep employees motivated. Motivations helps in:

• Improving performance levels of employees and of organisation
• Changing negative or indifferent attitudes of employee to positive attitudes so as to achieve organisational goals
• Reducing employee turnover and thereby saves the cost of new recruitment and training
• Reduces absenteeism in the organisation

Q.95 Is the provision of basic wage and decent working conditions constituted as self actualisation need? Give reasons.

Ans

No. Self actualisation need refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfillment and achievement of goals.

Q.96 Give one financial and one non financial incentive that an organisation can give to the employees.

Ans

Financial Incentive:

Productivity linked wage incentives: There are various wage incentive plans that aim at linking payment of wages to increase in productivity at individual or group level.

Non Financial Incentive:

Job Enrichment: It is concerned with designing jobs and includes greater variety of work content, require higher level of knowledge and skill.

Q.97 Can you explain how non-financial rewards can affect job satisfaction, motivation and productivity?

Ans

To satisfy employees, non financial needs also lay an important role. Psychological, social and emotional factors also help in motivating employees. Emphasis of these incentives are to provide psychological and emotional satisfaction rather than money driven satisfaction. Some of such incentives are Stock option:, Retirement Benefits:, status, Organisational Climate, Career Advancement Opportunity:, etc.

Q.98 Adolf, the CEO of ‘Vcare Hospitals’, a leading chain of hospitals, decided to recognise the good work of the doctors of his hospitals. For this he instituted three running trophies. A ‘Humanity Rocks Trophy’ to acknowledge and appreciate the tireless efforts of the doctors who rendered selfless services to the patients, ‘Equality Trophy’ to recognise the outstanding work done by the doctors in saving the girl child, and ‘Selfless Act’ for serving in the odd hours. The hospital also wanted to improve the health care services in rural areas all over the country. He decided that all doctors must work in rural areas for at least three months. He also decided that the paramedical staff should be employed locally. (5 marks)

(a) State the incentive provided by ‘Vcare Hospitals’ to its doctors through running trophies.

(b) Identify the need of the doctors that will be satisfied through the incentive identified in part (a).

Ans

a. To satisfy employees, non financial incentives also lay an important role. Psychological, social and emotional factors also help in motivating employees.
Emphasis of these incentives are to provide psychological and emotional satisfaction rather than money driven satisfaction. Some of such incentives are Stock option:, Retirement Benefits:, status, Organisational Climate, Career Advancement Opportunity:, etc.

b. Such incentives will satisfy esteem needs of employees. These include factors such as self-respect, autonomy status, recognition and attention.

Q.99 State how types of communication influence the effectiveness of communication.

Ans

The grapevine or informal communication spreads rapidly and sometimes gets distorted. Thus it makes communication less effective.

Q.100 Communication in an organisation can be through social / group gatherings, or perhaps, simply through the company ‘gossip’ or the company ‘grapevine. Why these are considered to be informal?

Ans

These are considered to be informal or ‘unofficial’ as they are not established by the organisation like formal ones.

Q.101 Why is two-way communication often associated with democratic forms of leadership?

Ans

Two-way communication is more time-consuming because the receiver has the opportunity to feedback and to question what has been said or written. The receiver is invited to contribute to the process so this kind of communication is often associated with democratic forms of

Q.102 Read the following text and answer the question: (2 marks)

Fiora Inc. is an American multinational corporation that is best known for selling one of the best technologically advanced smartphones at reasonable pricing. Every day, the company sells a large number of smartphones worldwide.

The company was also recently listed as one of the best places to work for as per a research article. Every Tuesday, the company hosts Q&A sessions for its employees and offers them to use different channels and platforms to interact with the management leaders.

1. What element of directing function is being talked about here?

1. Supervision
2. Communication
3. Leadership
4. Organisation structure

2. Also from the following, choose the type of element that is being answered in (i).

1. Formal
2. Informal
3. Divisional
4. Lateral

3. Can you identify the type of communication barrier that is being overcome by Fiora Inc. by offering different channels of expression to its employees to communicate with superiors?

1. Semantic
2. Psychologic
3. Personal
4. Organisational

Ans

b. Communication
An element of directing function that is highlighted here is communication. It refers to a process of exchange of ideas, facts, views, feelings, etc., either in verbal, written or gestural form, between or among people, to create a common understanding.

a. Formal
Formal communication flows through official channels designed in organisation chart. It takes place between superior & subordinate or among same cadre employees in the organization and is mostly expressed in written form.

d. Organisational
Organisational Barriers relate to organisation structure, authority relationships, rules and regulations, etc.

Q.103 Rehan was the Managing Director of Yemen Ltd. The company had established a good name for itself and was doing well. It was known for the timely fulfilment of orders. The procurement and production manager Cenna was efficiently handling the processing of orders with a team of highly motivated 25 team members. Everything was going well until Cenna met with an accident. Rehan noticed that due to the absence of Cenna the company was not able to meet the deadlines. He also knew that any such delays may lead to customer dissatisfaction and loss of goodwill. So, he had a meeting with his employees where they planned for accurate and speedy processing of orders. Everybody agreed to work as a team as the attitude and behaviour of Rehan was very god towards the employees of the organisation. All put in extra efforts and time and the targets were met on time.

Not only this, Rehan visited Cenna and advised her to take rest and not to worry for work at all.

Answer the following questions in the context of this paragraph. (3 marks)

1. State the type of leader Rehan is.

1. Laissez Faire
2. Lateral
3. Authoritative
4. Democratic

2. What function of management is being discussed here?

1. Organising
2. Directing
3. Controlling
4. Staffing

3. Choose from the following, one of the values that is being depicted here.

1. Society welfare
2. Contributing towards education
3. Considerate towards employees health and well -being
4. Development of infrastructure

Ans

d. Democratic
Democratic leadership refers to a ‘group centered’ leadership style, having delegation of authority, participative decision making and two-way communication. He planned the timely deliveries after due discussion with employees.

b. Directing
The function highlighted here is Directing. Directing is the process of instructing, guiding, counseling, motivating and leading people in the organisation to achieve its planned objectives.

c. Considerate towards employees health and well -being
Values are the fundamental beliefs that guides and motivates one’s behaviour. Here Rehan is being considerate towards employees health