CBSE Important Questions Class 12 Business Studies Chapter 7 Directing

Directing is the management function of instructing, guiding, counselling, motivating and leading people towards organisational goals.
CBSE Important Questions Class 12 Business Studies Chapter 7 help students practise Directing through objective, short-answer and case-based questions.

CBSE Important Questions Class 12 Business Studies Chapter 7 are useful because Directing connects plans with actual employee action. This chapter explains how managers guide workers, motivate teams, lead people and communicate instructions clearly. In the 2026-27 CBSE exam, Directing can appear through MCQs on Maslow’s needs, case questions on leadership styles, short answers on supervision and long answers on communication barriers. Students should revise the four elements of directing carefully because supervision, motivation, leadership and communication are often tested through real workplace situations. These section-wise questions help students practise both definitions and application-based answers.

Key Takeaways

• Directing: Directing initiates action after planning, organising and staffing.
• Elements: Supervision, motivation, leadership and communication are the four elements of directing.
• Motivation: Maslow’s theory arranges needs from physiological needs to self-actualisation needs.
• Communication: Barriers may be semantic, psychological, organisational or personal.

CBSE Important Questions Class 12 Business Studies Chapter 7 Structure 2026-27

Section A: Objective Type Questions from CBSE Important Questions Class 12 Business Studies Chapter 7

Section A carries 20 marks through 1-mark questions. Directing MCQs usually test elements, principles, supervision, motivation, leadership styles, communication process and barriers.

Q1. Directing refers to the process of:

1. Preparing financial statements
   b. Instructing, guiding, motivating and leading people
   c. Dividing work into departments
   d. Comparing actual results with standards

Answer: b. Instructing, guiding, motivating and leading people

Directing helps people work towards organisational objectives.

Q2. Directing initiates:

1. Planning
   b. Action
   c. Budgeting
   d. Recruitment

Answer: b. Action

Other functions prepare the setting, while directing starts work in the organisation.

Q3. Which of the following is not an element of directing?

1. Supervision
   b. Motivation
   c. Leadership
   d. Staffing

Answer: d. Staffing

The elements of directing class 12 are supervision, motivation, leadership and communication.

Q4. Directing flows from:

1. Bottom to top
   b. Top to bottom
   c. Outside to inside
   d. Workers to customers

Answer: b. Top to bottom

Directing flows through the organisational hierarchy.

Q5. Which principle of directing says every employee should receive orders from one superior only?

1. Harmony of objectives
   b. Unity of command
   c. Follow through
   d. Leadership

Answer: b. Unity of command

Unity of command avoids confusion and conflict.

Q6. Which principle says directing should help every employee give maximum effort?

1. Maximum individual contribution
   b. Use of informal organisation
   c. Managerial communication
   d. Follow through

Answer: a. Maximum individual contribution

This principle focuses on using employees’ full potential.

Q7. Supervision means:

1. Preparing budgets
   b. Guiding and overseeing employees’ work
   c. Selecting employees
   d. Fixing prices

Answer: b. Guiding and overseeing employees’ work

Supervision ensures work targets and resource use are properly managed.

Q8. Motivation means:

1. Stimulating people to action
   b. Sending written orders only
   c. Preparing procedures
   d. Hiring workers

Answer: a. Stimulating people to action

Motivation makes employees act in a desired manner.

Q9. A motive arises out of:

1. Needs
   b. Rules
   c. Budgets
   d. Reports

Answer: a. Needs

A motive is an inner state that directs behaviour towards goals.

Q10. Maslow’s lowest-level needs are:

1. Esteem needs
   b. Self-actualisation needs
   c. Basic physiological needs
   d. Affiliation needs

Answer: c. Basic physiological needs

Hunger, thirst, shelter and sleep are examples of physiological needs.

Q11. Job security and pension plans satisfy:

1. Safety needs
   b. Esteem needs
   c. Self-actualisation needs
   d. Affiliation needs

Answer: a. Safety needs

Safety needs provide protection from physical and emotional harm.

Q12. Bonus is an example of:

1. Non-financial incentive
   b. Financial incentive
   c. Communication barrier
   d. Leadership style

Answer: b. Financial incentive

Bonus is paid over and above salary or wages.

Q13. Job enrichment is a:

1. Financial incentive
   b. Non-financial incentive
   c. Semantic barrier
   d. Grapevine network

Answer: b. Non-financial incentive

Job enrichment gives variety, responsibility and personal growth.

Q14. A democratic leader makes decisions:

1. Without consulting anyone
   b. In consultation with subordinates
   c. Only through punishment
   d. Without using communication

Answer: b. In consultation with subordinates

A democratic leader encourages participation in decision-making.

Q15. A laissez-faire leader gives followers:

1. No independence
   b. High degree of independence
   c. Only written orders
   d. Only financial incentives

Answer: b. High degree of independence

A free-rein leader allows subordinates to set objectives and methods.

Q16. Encoding means:

1. Converting message into symbols
   b. Receiving the message
   c. Giving feedback
   d. Creating noise

Answer: a. Converting message into symbols

Encoding converts ideas into words, gestures or pictures.

Q17. Communication through official channels is called:

1. Informal communication
   b. Formal communication
   c. Grapevine communication
   d. Noise

Answer: b. Formal communication

Formal communication follows the organisational chart.

Q18. Assertion: Directing is a continuous process.

Reason: Directing takes place throughout the life of an organisation.

1. Both Assertion and Reason are true, and Reason explains Assertion
   b. Both are true, but Reason does not explain Assertion
   c. Assertion is true, but Reason is false
   d. Assertion is false, but Reason is true

Answer: a. Both Assertion and Reason are true, and Reason explains Assertion

Managers may change, but directing continues.

Q19. Fill in the blank: Informal communication is also called ________.

Answer: grapevine communication

Grapevine spreads quickly through informal relationships.

Q20. Fill in the blank: The obstruction or hindrance in communication is called ________.

Answer: noise

Noise may occur at sender, message or receiver level.

Section B: Very Short Answer Questions from Directing Class 12 Important Questions

Section B carries 2-mark questions with answers of 30-50 words. Directing Class 12 Important Questions in this section usually test definitions and direct concept identification.

Q21. What is directing?

Directing is the process of instructing, guiding, counselling, motivating and leading people to achieve organisational objectives. It starts action in the organisation and continues throughout its life.

Q22. What is informal communication?

Informal communication takes place without following official channels. It is also called grapevine communication. It spreads quickly through personal relationships and may sometimes become distorted.

Q23. Which leadership style does not believe in using power unless essential?

The style is laissez-faire leadership or free-rein leadership. In this style, followers get a high degree of independence. The leader mainly supports and provides information.

Q24. Which element of communication converts a message into words or symbols?

The element is encoding. Encoding converts ideas, feelings or instructions into words, pictures, gestures or symbols before transmission to the receiver.

Q25. State the element of directing that helps unwilling workers take up work.

The element is motivation. Motivation stimulates people to act in a desired manner. It helps change negative or indifferent attitudes into positive work behaviour.

Q26. What is supervision?

Supervision is the process of guiding, overseeing and instructing employees to achieve work targets. It ensures optimum use of resources and proper performance by workers.

Section C: Short Answer Questions from Class 12 Business Studies Chapter 7 Directing

Section C carries 3-mark questions with answers of 50-80 words. Class 12 Business Studies Directing Questions here usually ask for three-point explanations.

Q27. Explain any three features of directing.

Directing has four major features.

1. Initiates action: It starts work after planning, organising and staffing.
2. Takes place at every level: Every manager directs immediate subordinates.
3. Continuous process: Directing continues throughout organisational life.
4. Flows top to bottom: Instructions move through the hierarchy.

Directing connects managerial plans with employee action.

Q28. Explain any three points on importance of directing class 12.

The importance of directing class 12 lies in action, coordination and change.

1. Initiates action: It helps employees start work towards objectives.
2. Integrates efforts: It aligns individual efforts with organisational goals.
3. Realises employee potential: It motivates workers to perform better.
4. Facilitates change: It reduces resistance through communication and leadership.

Directing improves organisational performance.

Q29. Explain any three principles of directing class 12.

The principles of directing class 12 guide managers in handling employees.

1. Maximum individual contribution: Direction should help each employee give full effort.
2. Harmony of objectives: It should align personal goals with organisational goals.
3. Unity of command: Each subordinate should receive orders from one superior only.
4. Follow through: Managers must review whether instructions are implemented.

These principles make direction effective.

Q30. Explain the process of motivation.

Motivation begins with an unsatisfied need.

The need creates tension in the individual. This tension produces drives, which lead to search behaviour. The person takes action to satisfy the need. Once the need is satisfied, tension reduces.

Example: Hunger creates tension and makes a person search for food.

Q31. Explain any three importance points of supervision.

Supervision is important because supervisors directly guide workers.

1. Maintains contact: A supervisor keeps day-to-day contact with workers.
2. Acts as a link: The supervisor connects workers with management.
3. Maintains unity: The supervisor resolves differences among workers.
4. Provides training: A good supervisor gives on-the-job training.

Supervision improves worker performance.

Q32. State different networks of grapevine communication.

Grapevine communication may follow four networks.

1. Single strand network: Information passes from one person to another.
2. Gossip network: One person tells many people.
3. Probability network: Information spreads randomly.
4. Cluster network: A person tells only trusted people.

Cluster network is common in organisations.

Q33. Explain any three semantic barriers of communication.

Semantic barriers arise due to problems in word meaning and interpretation.

1. Badly expressed message: Poor words or missing details create confusion.
2. Symbols with different meanings: One word may have different meanings.
3. Faulty translations: Poor translation changes the meaning.
4. Technical jargon: Special terms may confuse non-specialists.

These barriers affect decoding.

Section D: Long Answer I Questions from CBSE Class 12 Business Studies Directing

Section D carries 4-mark questions with answers of 80-120 words. CBSE Class 12 Business Studies Directing questions here usually test explanation, comparison and case-based application.

Q34. Explain any four elements of directing class 12.

The elements of directing class 12 are supervision, motivation, leadership and communication.

1. Supervision: It means guiding and overseeing employees’ work.
2. Motivation: It stimulates employees to act towards organisational goals.
3. Leadership: It influences people to work willingly for common objectives.
4. Communication: It transfers ideas, facts and instructions to create understanding.

These elements work together. A manager supervises work, motivates employees, leads the team and communicates instructions.

Q35. Explain any four financial incentives class 12.

Financial incentives are monetary incentives used to motivate employees.

1. Pay and allowances: Salary, dearness allowance and increments motivate employees.
2. Bonus: Bonus is paid over and above wages or salary.
3. Profit sharing: Employees receive a share in organisational profits.
4. Co-partnership or stock option: Employees receive shares at a set price.
5. Retirement benefits: Provident fund, pension and gratuity provide security.
6. Perquisites: Car, housing and medical aid add to motivation.

These incentives satisfy economic needs.

Q36. Explain any four non-financial incentives class 12.

Non-financial incentives satisfy psychological, social and emotional needs.

1. Status: Higher position gives prestige and recognition.
2. Career advancement: Promotion opportunities encourage better performance.
3. Job enrichment: Meaningful and challenging work motivates employees.
4. Employee recognition: Appreciation, awards and certificates motivate workers.
5. Job security: Stable employment reduces fear.
6. Employee participation: Involving employees in decisions builds ownership.

These incentives support long-term motivation.

Q37. Distinguish between formal and informal communication class 12.

Formal communication follows official channels, while informal communication grows through personal relations.

Both exist in organisations.

Q38. A departmental manager is inflexible and does not like contradiction. Employees feel stressed and avoid expressing opinions. Identify the leadership style and explain the problem.

The leadership style is autocratic leadership.

An autocratic leader gives orders and expects subordinates to obey. Communication is mostly one-way. The leader takes decisions alone and may not accept disagreement.

The problem is excessive use of authority. Employees feel stressed because they have little freedom. They avoid initiative and hesitate to share problems.

This style may help in quick decisions, but it can reduce morale and participation.

Section E and F: Long Answer II and Case-Study Based Questions

Section E and F carry 5 or 6-mark questions that need detailed answers of 150+ words. Directing questions here often cover Maslow, incentives, communication barriers and case-based leadership or motivation.

Q39. Discuss Maslow need hierarchy theory class 12.

Maslow need hierarchy theory class 12 explains motivation through five levels of human needs.

1. Basic physiological needs: These are primary needs like food, water, shelter and sleep. Basic salary helps satisfy them.
2. Safety or security needs: These include job security, stable income and protection from harm. Pension plans satisfy these needs.
3. Affiliation or belongingness needs: These include friendship, acceptance and sense of belonging.
4. Esteem needs: These include self-respect, recognition, status and attention.
5. Self-actualisation needs: These are the highest needs. They refer to growth, achievement and becoming what one can become.

Maslow assumed that people move to higher needs only after lower needs are satisfied. A satisfied need no longer motivates a person. Managers should identify employees’ need level before choosing incentives.

Q40. Explain different financial and non-financial incentives used to motivate employees.

Financial and non-financial incentives class 12 are used to improve employee motivation.

Financial incentives:

1. Pay and allowances: Regular salary and increments satisfy economic needs.
2. Bonus: Extra payment encourages better performance.
3. Profit sharing: Employees receive a share in profits.
4. Stock options: Employees get shares at a lower set price.
5. Retirement benefits: Provident fund, pension and gratuity provide security.
6. Perquisites: Housing, medical aid and car allowance support employees.

Non-financial incentives:

1. Status: Higher rank satisfies esteem needs.
2. Career advancement: Promotion opportunities motivate employees.
3. Job enrichment: More challenging work makes the job meaningful.
4. Recognition: Awards and appreciation improve morale.
5. Participation: Employees feel valued when involved in decisions.
6. Empowerment: More authority increases responsibility and confidence.

Both types of incentives are needed because employees have economic and psychological needs.

Q41. What are the common communication barriers class 12? Suggest measures to overcome them.

Communication barriers class 12 can block or distort messages in organisations.

Common barriers:

1. Semantic barriers: These arise from wrong words, faulty translation, jargon and unclear assumptions.
2. Psychological barriers: These include premature evaluation, lack of attention, distrust and poor retention.
3. Organisational barriers: These arise from rigid rules, status differences, complex structure and poor facilities.
4. Personal barriers: These include fear of challenge, lack of confidence and unwillingness to communicate.

Measures to overcome barriers:

1. Clarify ideas before communication.
2. Communicate according to the receiver’s needs.
3. Consult others before communicating.
4. Use simple language and suitable tone.
5. Convey useful information to listeners.
6. Ensure proper feedback.
7. Follow up communication.
8. Be a good listener.

Effective communication improves coordination, leadership and morale.

Q42. Explain the importance of leadership class 12 in management.

Leadership class 12 business studies explains how managers influence people to work willingly for organisational goals.

Leadership is important for several reasons:

1. Influences behaviour: A good leader directs employee energy towards organisational goals.
2. Builds confidence: A leader supports and encourages followers.
3. Introduces change: Leaders persuade employees to accept changes with less resistance.
4. Handles conflicts: A leader allows employees to express disagreement and resolves issues.
5. Provides training: A leader develops subordinates and prepares successors.
6. Improves morale: Good leadership creates a positive work environment.

Leadership is a continuous process. It depends on relations between leader and followers.

Q43. A reputed hostel provides medical aid and free education to children of its employees. Identify the incentive, its category and two more incentives of the same category.

The incentive highlighted is perquisites.

Perquisites are extra benefits given over and above salary. Medical aid and free education for employees’ children are examples of perquisites.

The category is financial incentives because these benefits are measurable in monetary terms.

Two more incentives of the same category are:

1. Bonus: Extra payment above wages or salary.
2. Profit sharing: Share in company profits given to employees.
3. Retirement benefits: Provident fund, pension and gratuity.

Financial incentives help satisfy economic and security needs. They also improve motivation and loyalty.

Q44. In an organisation, employees approach anyone for minor queries. Everyone keeps talking to each other. This causes inefficiency and loss of secrecy. What communication system should the manager adopt?

The manager should adopt a formal communication system.

In the given case, employees are using informal communication freely. This has caused inefficiency, unnecessary discussion and leakage of confidential information.

Formal communication flows through official channels. It may be downward, upward or horizontal. It is usually recorded and follows the organisational structure.

Formal communication can improve the situation because:

1. It fixes clear reporting relationships.
2. It reduces unnecessary communication.
3. It protects confidential information.
4. It gives accountability for messages.
5. It helps managers maintain control.

The manager should still monitor informal communication. Informal channels can be useful when managed properly.

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