CBSE Important Questions Class 12 Business Studies Chapter 7

Important Questions for CBSE Class 12 Business Studies Chapter 7 – Directing

In these important questions Class 12 Business Studies chapter 7, students will learn about the concept of directing. The topic of directing includes various important sub-topics like leadership qualities, formal and informal communication, motivation-meaning and importance, Maslow’s need hierarchy theory of motivational and financial and non-financial incentives, and more. So by going through these chapter 7 class 12 Business Studies important questions, students will be able to gain a better understanding of these concepts and study the important questions that may come in their examination. These Business Studies class 12 chapter 7 important questions contain questions from CBSE sample papers and CBSE past years’ question papers and follow the NCERT book. 

CBSE Class 12 Business Studies Chapter-7 Important Questions

Study Important Questions for Class 12 Business Studies Chapter 7 – Directing

Giving instructions, direction, and inspiration to an organization’s workforce in order to encourage them to work effectively toward organisational objectives is referred to as direct. Along with planning, organising, staffing, and controlling, the manager’s primary managerial responsibilities also include directing. Students will learn more about directing and other concepts through these Class 12 Business Studies chapter 7 important questions. These questions are based on the CBSE syllabus and NCERT book, as prescribed by CBSE

In addition, these important questions for Class 12 Business Studies chapter 7 also contain CBSE extra questions which students may not find elsewhere. . Here are some important questions that you can study and practice for your upcoming board examination. 

Very Short Answer Questions (1 or 2 Marks)

  1. What does “motivation” signify as an aspect of directing mean?

Ans. As a means of achieving organisational goals, motivation refers to the process of inspiring and encouraging people to act in a particular way. In order to reach the intended organisational goals means urging and motivating the employees to work to the best of their ability. Promotion, evaluations, and recognition are just a few examples of how motivation differs depending on the wants and expectations of the employees.

  1. Name any two elements present in directing.

Ans.  The two elements that are present in directing are.

  • Leadership
  • Supervision
  1. Describe any one aspect of directing.

Ans. Providing direction enables people inside an organisation to take the first steps toward achieving their intended goals.

  1. It entails supervising employees who are subordinate to you. What aspect of directing is being discussed?

Ans. Supervision

  1. What motivates a Supervisor to serve as a liaison between employees and management?

Ans. By instructing the workers on the one hand and communicating with the management about the worker’s concerns on the other, the supervisor puts the management’s ideas into action.

  1. Explain what “supervision” means in terms of directing.

Ans. The act of supervising employees at work to make sure their tasks are being completed in accordance with company standards is referred to as a supervision.

  1. According to Abraham Maslow, name the highest level present in the hierarchy.

Ans. The highest level, according to Abraham Maslow, is self-actualisation.

  1. What are self-actualization needs and self-esteem needs in terms of employee motivation?

Ans. (i) Esteem needs: These needs include the need for both self- and other-esteem. Examples include self-confidence, confidence, etc.

(ii) Self-actualization Needs: These are the requirements for reaching one’s full potential, which also includes requirements for optimum growth.

  1. Describe the three benefits and three drawbacks of an authoritarian leadership style.

Ans. Few advantages of the authoritarian leadership style: 

  • Quick and precise judgments
  • Excellent work
  • Necessary for individuals with less education

 Certain negative aspects of the authoritarian leadership style include:

  •  Lack of motivation
  • Employee agitation 
  • Potential for prejudice.
  1. Name some features of democratic leadership.

Ans. Some features of democratic leadership are.

  • Open communication
  • Relief among employees
  • Co-operative relations 

Short Answer Questions (3 or 4 Marks)

  1. How does directing contribute to the smooth operation of an organisation? Give an explanation using any three points.

Ans: Directing contributes to the efficient and successful operation of management. This can be further explained through the following points.

  • It integrates employees: By integrating employees’ contributions into the organisation, management ensures that each person’s activities benefit the organisation as a whole. As a result, it guarantees that workers put up efficient effort toward achieving objectives.
  • It increases effectiveness: Managing helps employees realise their full potential and abilities. Through this function, managers make the most of each employee’s potential and influence them to work hard and give their all to the accomplishment of organisational goals.
  • It makes the transition easier: Although the business environment is always changing, people often have the predisposition to resist change. In this situation, directing assists the management in persuading his subordinates to implement adjustments periodically to deal with environmental changes as the changes are necessary to adapt, which is a requirement of modern business.
  1. For the previous ten years, Priya worked as a regional sales manager for “Lucky Garments Ltd.” Priya applied for the same post when the marketing manager decided to retire because she was very bright and had worked so hard to get the title of the marketing manager. The company’s top management, however, chose the best candidate from outside the organisation to fill this position. Priya was upset as a result, and she was forced to quit her job. How will you inspire Priya to perform at her prior level was one of the new marketing manager’s toughest challenges?

Which three non-financial advantages will a new marketing manager utilise to encourage Priya?

Ans. The new marketing manager may use the following non-monetary incentives:

  1. Status: Status refers to a ranking of roles in an organisational setting. A person with status is someone who occupies a high position with several advantages and greater duties.
  2. Job Enrichment: Designing occupations with a broader diversity of work content and higher knowledge and skill requirements are known as “job enrichment.”
  3. Job Security: Employees desire job security and financial stability so they won’t have to worry about these things and can focus on their work.
  4. Name and explain any three elements that emphasize the significance of directing managers’ jobs.

Ans. Here are some reasons why directing is important:

  • Achievement of goals: In an organisation, the directing role starts the real action. People who are in charge of others are better able to execute their tasks on time and correctly, as instructed by their superiors.
  • Coordinating efforts: Every organisation consists of a number of workers who are entrusted with various tasks and functions at various levels. Their actions are coordinated for the successful accomplishment of organisational objectives through direction, communication, and incentive.
  • Encourages change: Employees can express reluctance when it comes to the organization’s changing rules and structure because they believe the changes are either not in their best interests or would be exceedingly challenging to implement. In this situation, management can influence employees’ perspectives by motivating them and often communicating about the advantages and benefits the change will bring to the company and to them.
  1. Explain any three semantic communication.

Ans. A subfield of linguistics called semantics examines the significance of words and sentences. The process of encrypting and decrypting messages into words or perceptions is hampered and complicated by semantic obstacles. Such hurdles frequently stem from the choice of inappropriate language, inaccurate translations, or disparate interpretations. Semantic barriers can be caused by a variety of factors.

  • Poorly Expressing the Message: Due to a lack of vocabulary or poor word choice, the content could occasionally be difficult to understand.
  • Symbols with Various Interpretations: Sometimes, a word might have more than one meaning, and other times more than one word can sound the same (such as idle and idol). In certain situations, the proper interpretation of words is still unclear.
  • Faulty translations: It occasionally happens that managers and employees have different levels of language proficiency. In these circumstances, it is necessary to translate the material into a language that the employees can comprehend. However, throughout the translation process, some words or phrases could be misinterpreted. For instance, when a translation of a directive from English to Hindi is made, some terms may take on a different meaning.
  1. What are self-actualization needs and self-esteem needs in terms of employee motivation?

Ans. The meaning of the terms self-esteem and self-actualization

  • Self-Esteem Needs: The ego requirements of a person are satisfied by things like power, responsibility, status, and so forth. As an illustration, consider self-respect, confidence, etc. Each person aspires to get respect and attention from their peers; therefore, these components include things like respect, dignity, and acknowledgement. It is the fourth need in Maslow’s need hierarchy.
  • Self-Actualization needs: This need has to do with realising one’s ambitions or dreams. It fulfils the hierarchy’s top-level criteria. These requirements relate to a worker’s development, job happiness, and other factors. This involves the urge for optimal development and the need to become what one is capable of becoming. It is the last on Maslow’s hierarchy of needs.
  1. Explain the importance of communication.

Ans. The management process is impossible without effective communication. A strong communication system is essential to the survival and expansion of any company. Since a manager’s primary responsibility is to coordinate the efforts of others, communication takes up a significant amount of his time. The creation and maintenance of a communication system is the first executive function. The majority of managerial issues are brought on by a lack of comprehension. Therefore, the biggest issue for today’s management is communication.

Here are some additional benefits of communication

  • Basic decision and planning: The effectiveness of management is dependent on the effectiveness of communication (the quantity and quality of information available to the organisation). Communication provides the crucial information that managers need to diagnose issues, assess potential solutions, and select the best course of action.
  • Effortless and Effective Operation: An efficient communication system acts as a lubricant, promoting the organization’s effective and efficient operation. The attainment of the company’s goals is of utmost importance, and one of the key resources accessible to the management to do so is communication.
  • Promotes Coordination: Every organisation divides the job into various interconnected divisions and sectors. It is necessary to coordinate the actions and endeavours of various people and organisations. The best way to foster coordination and cooperation is through communication.
  • Employee Morale and Motivation: Management uses communication to completely inform the workforce on plans, job changes, etc. Employee morale and motivation are often good when they know what they are responsible for. Employees are satisfied when information is shared with them and when they can talk with one another about topics of interest.
  • Good workplace relations: Building mutual understanding and trust between the employer and the employees begins with effective communication. It makes it possible for management to interact closely with employees.
  • Industrial Democracy: For employees to participate in management, communication is necessary. Delegating and decentralising power are made easier by it. The fundamental education and training of managing professionals are around effective communication. Effective communication is a prerequisite to effective leadership.
  • Media Relations: Every commercial enterprise in the modern business environment needs to establish and sustain a positive corporate reputation in society. A positive public perception can only be developed through communication. Management can maintain friendly ties with the government, labour unions, customers, and the community through communication.

Long Answer Type Questions (5 or 6 Marks)

  1. Briefly describe the duties of a supervisor.

Ans. A supervisor performs the following duties, which are briefly mentioned below.

  • Creating Work Schedules: Setting the timing for various activities to begin and end is a part of scheduling. Every employee in his unit or division has a work schedule that is set by the supervisor. To guarantee a constant flow of work, this is done.
  • Enhancing Communication: Effective communication results from the supervisor’s continued direct contact with the staff. The employees in his department benefit from his leadership as well. He establishes production goals for them and gives them the direction they require to complete the tasks given to them.
  • Best resource utilisation: The workers receive directives and instructions from the supervisor on how to coordinate within the section. He instructs them on what to do and how to accomplish it so that they use tools, resources, resources, and procedures more efficiently.
  • Providing Inspiration: The boss encourages his staff members with both monetary and non-monetary rewards. He motivates people to work more effectively and efficiently.
  • Control of Results: The manager keeps an eye on the employees’ performance by comparing it to the standards. He takes the required steps to guarantee that goods are manufactured in accordance with the established criteria. He also critiques the performance of his subordinates and offers them advice on how to do better.
  • Reporting: The supervisor keeps track of each employee’s output and other relevant information. He sends performance reports and other necessary information to his superior based on records.
  • Relationship between workers and management: An essential link between management and employees is the supervisor. He conveys management directives and explains management rules to the employees. He keeps in regular contact with the employees and makes an effort to comprehend their issues. He alerts upper management to issues facing employees.
  • Human relation: In his team, a supervisor typically fosters positive interpersonal relationships. He can mingle with the staff and share their happiness and grief. He also resolves disputes involving individuals or groups of individuals.
  • Grievance Resolution: A supervisor can efficiently manage employee complaints since he has regular contact with them. When a complaint is made, he considers the worker’s perspective and works to fix the problem. However, if he is unable to resolve the issue, he should bring it to the attention of higher-up management.
  1. P.P Energy Ltd. was a consulting firm that promoted energy efficiency. The team leader and his group used to go to several states to make presentations to potential clients in order to win their business. The group leader used to fly, and his group used the road or train, as per corporate policy. In addition to taking up time, it occasionally required the ladies in the group to go alone.

As a result, employees did not behave as they should have in order to accomplish corporate objectives.

It was revealed to the CEO. He spoke with the team leader over the phone, explained the situation to him, and modified the company’s travel policy. It was determined that moving forward, all team members, including the leader, would travel together and take advantage of the time to consult with colleagues about client presentations. This had a positive effect, and everyone on the team began acting in the way that the team leader wanted.

Describe the characteristics of the management function element that the CEO uses.

Ans. The CEO uses “Motivation” as a management function.

The company’s previous travel policy wasn’t acceptable because it caused the women’s group to travel alone and forced the leader and members to take a different mode of transportation. This deters potential employees from working for the organisation.

However, a modification in the travel policy had a beneficial effect on the staff, and they began performing in a way that the leader wanted them to, which is only achievable with motivation.

These are some key features of motivation:

  • The psychological phenomenon of motivation: Employees cannot be made to feel motivated; it is an inherent sensation, such as urges, drives, and desires.
  • Motivation is goal-oriented conduct: It is beneficial for people to arrange things in a specific way in order to accomplish their objectives. A motivated individual makes efforts to accomplish the goals they have in mind.
  • Positive or negative motivation can be possible: Positive motivation entails encouraging employees to do better at their jobs and showing appreciation for work well done, such as through pay increases and promotion recognition. Threats and sanctions are the fundamental components of negative motivation.
  • The Process of Motivation is Complex: Due to the human element, the procedure is complicated and challenging. People have different needs and want, and human needs occasionally vary.
  1. Describe the importance and nature of motivation.

Ans. The success of an organisation depends a lot on how motivated its employees are, which is why motivation is so important. In order to attain both organisational and personal goals, managers can get the maximum performance out of their staff by inspiring them. For the reasons listed below, motivation is the foundation of management.

  1. Higher Effectiveness:

Employee aptitude and work ethic determine their level of performance inside an organisation. Between having the capacity to work and having the desire to work, motivation fills the gap. It encourages workers to put forth their best efforts in order to perform at a greater level. Therefore, motivation aids in boosting output and lowering operating expenses.

  1. Best possible resource use:

Resources include material, financial, and human assets in every firm. Competent and motivated individuals are necessary for the efficient use of material and financial resources. Employees who are motivated are likely to be willing to work. It enables administrators to use all resources as efficiently as possible.

  1. Organisational Goals Achieved:

Without employees who are driven to work hard and give their best effort in order to complete the duties allocated to them, an organization’s goals cannot be achieved. By meeting their demands through suitable rewards, management may ensure the willing participation of subordinates in the achievement of organisational goals. Motivated workers give management their full cooperation in order to achieve the desired outcomes.

  1. Workforce Stability:

Employees get confident when they are motivated. It enhances their dedication to the organisation and increases their loyalty. The rates of worker turnover and absenteeism are consequently decreased. The preservation of a stable workforce results from this. Employee expertise, knowledge, and experience are still at the organization’s disposal.

  1. Cordial relations

Employee happiness is increased through motivation and both monetary and non-monetary benefits. Consequently, it results in a cordial and helpful interaction between the employer and the workforce. Employee morale is raised, and there are fewer workplace issues.

  1. Encourages change

Effective motivation aids management in overcoming employees’ aversion to change and supports all organizationally beneficial changes. This is due to the fact that people associate their own development with the success of the business.

  1. Corporate lineage:

An organisation advances quickly and gains a better reputation when its personnel are engaged and satisfied. Thus, motivation contributes to improving the company’s reputation. As a result, the business can draw in smart, capable individuals.

FAQs (Frequently Asked Questions)

1. Name some characteristics of Laissez-faire leadership.

Here are some characteristics of Laissez-faire leadership.

  • It offers a system of independent decision-making.
  • It provides decentralisation of authority. 
  • It is self-directed.

2. Name some elements of directing.

Given below are four  elements of directing:

  • Motivation
  • Supervision
  • Communication
  • Leadership

3. Why is directing a pervasive function of management?

Directing is known to be a pervasive function because it is performed by every manager, whether it is a top executive or a superior.

4. Name some characteristics of autocratic leadership?

Some characteristics of autocratic leadership are as follows:

  • Decisions made by a single person
  • The existence of wrong beliefs related to employees
  • Centralised authority 
  • The communication is only downward.

5. Name some advantages and disadvantages of autocratic leadership.

Here are some advantages of autocratic leadership

  • It is necessary for employees who are less educated.
  • It offers fast and clear decisions.
  • It promotes satisfactory work.


Here are some disadvantages of autocratic leadership

  • There might be some possibility of partiality.
  • There is a lack of motivation.
  • More chances of agitation among employees.

6. What is the act of motivating, instructing, and guiding people working within an organisation to achieve its goals called?

This act is known as direct.