NCERT Solutions For Class 12 Business Studies Chapter 7 Directing

Directing NCERT Solutions For Class 12 Business Studies

NCERT Books Solutions For Class 12 Business Studies Directing

Takshila Learning’s NCERT Solutions for Business Studies are an advanced and next stage of Class 11 NCERT Solutions in business studies. We provide the basic fundamentals of the subject in Class 11 and then move on to an advanced degree of concepts in Class 12. The business studies topics are related to our practical life and dealt with in an easy way for understanding.


NCERT Solutions For Class 12 Business Studies Chapter 7 Directing
NCERT Solutions For Class 12 Business Studies Chapter 7 Directing


NCERT Solutions For Class 12 Business Studies Chapter 7 Directing provides us with all-inclusive information on all concepts. As students would have to learn the basics about the subject in class 12, this curriculum for class 12 is a comprehensive study material, which explains the concepts in a great way.

Questions Covered In Class 12 Business Studies Chapter 7 Directing

Multiple Choice Questions

  1. Which of the following is not an element of direction?

(a) Motivation

(b) Communication

(c) Delegation

(d) Supervision

Ans: Delegation is not an element of directing, rather, it precedes directing. Directing refers to a process where employees in an organization are instructed, motivated, and guided to achieve certain goals and objectives. Motivation, communication and supervision are the elements of direction.

  1. The motivation theory which classifies the needs in hierarchical order is developed by

(a) Fred Luthans

(b) Scott

(c) Abraham Maslow

(d) Peter F. Drucker

Ans: Abraham Maslow stated the need for a hierarchical theory of motivation. His theory was based on the argument that within each person there are five basic needs that can be placed in hierarchical order. Starting with the most elementary ones, the hierarchy order was stated as physical requirements, security requirements, familiarity needs, respect needs, and realization requirements.

  1. Which of the following is a financial incentive


(b)Stock Incentive

(c)Job Security

(d)Employee Participation

Ans: Stock incentive is a type of financial incentive. It is a direct monetary incentive in which an employee is offered shares of the company at a price below market value. The other three options given in the question, namely, promotion, job security and employee involvement are non-financial incentives that focus on the psychological and social needs of employees.

  1. Which of the following is not an element of communication process?





Ans: Communication is a process in which thoughts, feelings, facts, etc. are exchanged between people. Decoding, channel and receiver are the elements of communication. The channel refers to the path through which the message is transferred from the sender to the receiver as encoded symbols. Before the message is received by the receiver, the encoded symbols must be converted. This process of converting encoded symbols is known as decoding. On the other hand, the receiver refers to the person who actually receives the message.

  1. Grapevine is 

(a) Formal communication

(b) Barrier to communication

(c) Lateral communication

(d) Informal communication 

Ans: Informal communication is known as grapevine. This is because informal communication spreads throughout the organisation in all directions without following the formal path of communication.

  1. Status comes under the following types of barriers

(a)Semantic barrier

(b)Organisational barrier

(c)Non semantic barrier

(d)Psychological barrier 

Ans: The situation comes under organizational constraints. Organizational constraints refer to those barriers in communication that relate to the structure of the organization, hierarchical relationships in the organization, rules and policies. Sometimes a person’s position in the company in terms of profile, authority, etc. creates a sense of superiority (or inferiority) in him. Such psychology acts as a barrier to the free flow of communication in the organization.

  1. The software company promoted by Narayana Murthy is





Ans: Narayana Murthy was the founder of the software company Infosys. He started Infosys in 1981 and was a global IT company in 2002. Narayana Murthy was CEO of Infosys for two decades before retiring from the post in 2002. Under Murthy’s leadership, Infosys reached unimaginable heights and is today one of the largest software exporters in India.

  1. The highest level need in the need Hierarchy of Abraham Maslow:

(a)Safety Need

(b)Belongingness Need

(c)Self Actualisation Need

(d)Prestige Need

Ans: The highest level need in the need Hierarchy of Abraham Maslow is self actualisation need. This need of an individual refers to achieving what one aims or aspires. For an employee in an organisation, such needs relate to growth, work satisfaction, etc.

  1. The process of converting the message into communication symbols is known as:

(a) Media

(b) Encoding

(c) Feedback

(d) Decoding

Ans: The process of converting the message into communication symbols is known as encoding. The communication symbols in the process of encoding can be in the form of pictures, gestures, etc.

  1. The communication network in which all subordinates under a supervisor communicate through supervisor only is:

(a)Single chain

(b)Inverted V


(d)Free flow

Ans: The communication network in which all subordinates under the supervisor communicate only through the supervisor is the wheel communication network. In a wheel network, the observer is at the center of the communication network (wheel). Subordinates cannot communicate among themselves, rather they need to communicate through an observer.

Short Answer Type:

  1. Distinguish between leaders and managers.

Ans: The following points highlight the difference between a manager and a leader.

Basis of Difference Manager Leader
Existence A manager can exists only in a formal organisation. A leader can exists in formal as well as informal organisation.
Objective A manger focuses towards influencing the behaviour of employees towards achievement of the goals of the organisation. A leader focuses towards the satisfaction of the individual and group goals of his followers.
Power and Authority A manager holds formal authority and can exercise power and control to influence the behaviour of the employees. A leader does not command formal authority and can only influence the behaviour of the followers through such means as trust and faith.
Interrelationship A manager can be a leader as well. A leader may not be a manager.
Functional Spread The functions of the manager are widespread and include planning, organising, staffing and directing. Functions of a leader are limited to directing.
  1. Define Motivation.

Ans: Motivation refers to the process of motivating and stimulating a person to act in some way. In the context of an organization, motivation implies encouraging and urging employees to perform to the best of their abilities so that the desired goals of the organization can be achieved. In other words, it refers to driving the person psychologically to motivate his or her desire to work and perform better. Motivation in an organization can take various forms such as promotion, evaluation, recognition etc. depending on the expectations and desires of the employee. For example, an employee may act as a motivating factor to improve evaluation. Likewise, a senior’s praise for another employee may motivate him to further improve performance.

  1. What is informal communication?

Ans: Informal communication refers to communication that flows without following a formal defined path. An informal communication system is also known as grapevine. Under informal communication, a piece of information flows in all directions without making any payment to any level or authority. It breaks out of social contact between employees and then spreads throughout the organization. This can take the form of a rumor or gossip. For example, a talk at lunch about a senior’s attitude is an informal communication. The source of such information is difficult to determine. In addition, the actual interaction may also be distorted and the final piece of information may be very different from the original one.

  1. What are semantic barriers of communication?

Ans: Semantic barriers of communication relate to the use or understanding of language. Sometimes some words, sentences or phrases are misinterpreted or misunderstood. In such cases, effective communication is interrupted. Interruptions in communication that arise from ambiguity or difficulty understanding words and sentences are known as semantic barriers. Following are some of the reasons for Semantic Barrier.i. Sometimes due to poor vocabulary or incorrect use of words, information cannot be expressed clearly. ii. Sometimes a word may have more than one meaning or two or more words may have the same pronunciation (eg passive and idol). In such cases, the correct interpretation of the word remains unclear.iii. In some cases proficiency of a language varies between workers and ordinary people. In such cases, translation of information into language that is understandable to workers is necessary. However, some words or sentences can be misinterpreted in the translation process. For example, in the translation of instruction from English to Hindi, the meanings of some words may change.iv. Many times when instructing, seniors or experts use technical terminology which can be difficult for subordinates to understand.

  1. Who is a supervisor?

Ans: A supervisor refers to a person who directly supervises the activities of workers. He is immediately above the worker in the organizational hierarchy. An observer performs the following tasks.Me. He is in direct contact with the workers and thus guides and supports the activists. He also helps in maintaining harmony and unity among the workers.ii. He acts as a link between the manager and the workers. Through the supervisor, on the one hand, the management communicates ideas and policies to the workers and on the other hand, the workers convey their problems and complaints to the management.iii. The supervisor ensures that workers work efficiently and according to set goals.iv. He imparts the necessary knowledge and skills to the workers.

  1. What are elements of directing?

Ans: Direction refers to the process of directing, motivating, guiding and leading people to achieve certain goals and objectives. Direction consists of the following four elements.i. Supervision: Supervision means to guide and direct subordinates towards achieving desired goals. In other words, it oversees the work of subordinates. Supervision ensures that work is done according to the desired objectives. A good supervision helps improve the efficiency of workers. Apart from this, it also plays an important role in maintaining harmony and unity among the workers.ii. Motivation: Motivation refers to encouraging and motivating employees to perform to the best of their abilities so that the desired goals of the organization can be achieved. Motivation can take various forms such as promotion, evaluation, recognition etc., by meeting the needs of employees, Motivation helps improve their performance. It gives psychological boost to the workers and increases the desire to work. Apart from this, it also helps in reducing turnover and absenteeism in the organization.iii. Leadership: Leadership refers to the behavior of employees in such a way that they voluntarily work towards achieving the objectives of the organization. Leadership plays an important role in the success of an organization. Good leadership brings out the abilities and talents of workers and thus, boosts their confidence. They act as guides for the workers and instill a sense of initiative in them.iv. Communication: Communication means the process of exchange of thoughts, feelings, facts etc. in people. A smooth communication is required for the smooth running of an organization. It promotes coordination between various departments and individuals in the organization. Communication forms the basis of management. Efficient management becomes difficult without a good communication network.

  1. Explain the process of motivation?

Ans: Motivation refers to motivating and stimulating a person to act in a certain way. The following points explain the process of motivation.i. Dissatisfied Want: The motivation process starts with a person’s dissatisfied need.ii. Despair: As dissatisfaction persists, frustration arises in a person’s mind.iii. Drives: Despair drives a person to search for options to meet his need.iv. Behavior: Among the various options he chooses one and starts behaving accordingly.v. Satisfaction: After following a particular option for some time, he assesses whether his need is Decreased despair: Once the need is met, the person’s frustration and stress eventually subside.For example, suppose a person’s desires are fostered. This makes him uneasy and starts looking for options through which he can get promotion. He can think about working hard and improving his performance. After continuously working hard, they can get recognition and promotion which eventually satisfies their desire and reduces their frustration.

  1. Explain the different networks of grapevine communication?

Ans: Grapevine communication or informal communication refers to communication that breaks out of social contact between employees and spreads without following a formal communication path. The following types of grapes are communication networks.i. Single strand network: In this network, information is transmitted from one person to another in a sequence. Namely, one person communicates with another person who communicates with another person. ii. Gossip Network: In Gossip Network, one person shares information with many others.iii. Probability network: Under probability network, a person randomly shares information with other people. That is, the person is indifferent about who he shares the information with.iv. Cluster network: In this network, information is first shared between two people who trust each other. One of them then gives the information to another person who in turn shares it with the other and so this information gets spread.

Long Answer Type:

  1. Explain the principles of directing?

Ans: Directing as a function of management is quite complex. To help with the directing process, some theories have been developed. Following are the principles of direction.(A) Maximum Individual Contribution: According to this principle, a manager must use directing techniques that motivate workers to perform to the best of their abilities. This should encourage workers to work towards the goals of the organization. That is, each person should contribute maximum towards organizational goals. For example, appropriate incentive and motivation techniques may be used by managers to urge employees to perform better.



(b) Reconciliation of objectives: Often a person’s objectives deviate from the overall organizational objectives. For example, a person’s focus may be on earning more income while the organization aims to increase production. In such a case, direction should work towards converting individual goals with the goals of the organization. (c) Unity of command: According to this principle, a person should receive commands and instructions from only one superior. If a worker receives orders from more than one superior, it creates confusion and conflict which delays the work. For example, the worker may be confused whose order to follow. In addition, it may also result in a confrontation between two superiors.(d) Suitability of direction technique: According to this principle, the direction technique used should be chosen appropriately. It should be tailored to the requirement and attitude of the employees. For example, one employee may be motivated by praise while the other needs monetary incentives. Thus, the manager must use appropriate directing techniques based on the requirement. (E) Managerial Communication:Effective communication plays an important role in directing. The instructions and orders given by the superior can be clearly and easily understood by the subordinates. In addition, subordinates must also be able to communicate with superiors in an indiscreet manner. They should be able to express their feedback and suggestions freely. Thus, an effective two-way communication should be between superior and subordinates.(F) Use of informal organization: Mangal should realize the existence and importance of informal organization. He should use them strategically. For example, informal communication can be used to divide truthful and substantive feedback on policy matters.(G) Leadership: Leadership is an important element of direction. A manager needs to be able to bring out the capabilities of employees. He should be able to influence the behavior of employees such as to promote the willingness of employees to work towards organizational goals. In addition, he should be able to work effectively to the satisfaction of the personal goals of employees.(H) Follow through: According to this principle, the role of a manager is not limited to giving instructions only to subordinates, but he should continuously review the implementation of the instructions. Through a proper follow-up, he should ensure that the orders are properly followed and implemented. Appropriate corrective action should also be taken if necessary.

  1. Explain the qualities of a good leader? Do the qualities alone ensure leadership success?

Ans: It is said that to be a successful leader one must possess certain qualities. Some of the qualities of a good leader are as follows.(A) Physical properties: People with good physical characteristics such as height, appearance, health etc. are attractive. A healthy and active person himself can work hard and efficiently and thus, he can be noticed. Thus, he can motivate his subordinates to work and perform better.(b) Integrity: A good leader must maintain a high level of honesty. He should be honest and follow morals and values. He should be a role model for others in terms of honesty, integrity and values.(c) Intelligence: A leader must have a good presence of mind and knowledge. They must be competent enough to effectively investigate and solve problems encountered during the task. He must have the necessary intelligence to make appropriate decisions based on logic and facts. (d) Motivation: A leader should be a source of inspiration and inspiration for others. That is, it should be exemplary in terms of work, performance and values. He should be able to develop a desire among subordinates to act to the best of his abilities.(() Confidence: A leader must be high in self-confidence. He should be able to maintain his confidence even in difficult situations. Only when a leader believes in himself, he can increase the confidence of his subordinates. (F) Responsibility:A leader must assume responsibility for the work and tasks of his group. He should bear the responsibility of being responsible for the mistakes of his subordinates. However, as a mark of encouragement, they should share the credit of success with their subordinates.(G) Effective communication skills: A leader should be able to express his ideas and instructions clearly to subordinates. On the other hand, a leader also makes connections between higher officials and subordinates. He should be able to pass the problems and suggestions of subordinates effectively to the superiors. In addition, he should also be a patient listener and consultant.(H) Decision making ability: A leader should be able to take appropriate decisions based on logic, facts and figures. In addition, he should be confident enough to hold on to his decisions and not be confused.(i) Social behavior: He should maintain friendly and supportive behavior with his subordinates. He should be able to understand people and maintain good social relations with them.(j) Dynamic: A leader must be dynamic and outgoing. He should be able to take new initiatives and break old patterns for the benefit of the organization.Although the above qualities are essential for being a good leader, however, mere presence of these qualities does not ensure leadership success. In fact, no person can possess all the qualities. However, a conscious effort must be made by managers to achieve them.

  1. Discuss Maslow’s Need Hierarchy theory of motivation.

Ans: Maslow’s need hierarchy theory provides an understanding of the complex phenomenon of motivation. According to Maslow, within each person there exists a set of five needs that can be organized into a hierarchy. Knowledge of these needs helps the manager to understand the behavior of employees. With the identification of employees’ needs, they can be provided with appropriate motivation.Assumptions:Maslow’s theory is based on the following assumptions.(i) The need of the people affects their behavior.(ii) The needs of individuals can be arranged in a hierarchical order.(iii) A person can move forward to a higher level of need only when the lower level of need in the hierarchy is satisfied.(iv) Once the need is met, a person can only be motivated through the next higher level of need.


theoryThe following is a hierarchy of requirements given by Maslow.(A) Physical requirements: Such requirements include the necessary requirements for the subsistence of life. They are at the top of the hierarchy. These requirements are necessary for survival. For example, food, clothing, shelter are physical needs. An employee needs a fixed base salary to satisfy these needs. (b) Security requirements: These requirements are related to physical and economic security and welfare. For example, an employee desires job security, income stability etc.(c) Requirements of Faith: Such needs include social needs of the person like affection, acceptance, companionship, etc., such that each person craves for social acceptance and belonging.(D) Esteem Needs: These needs include elements such as respect, dignity, recognition, etc. such that each person wants to give respect and acknowledgment to the peer group.(e) Requirements of Self-Realization: This requirement is to achieve the goal that is one’s purpose or aspiration. It is the highest level requirement in the hierarchy. The requirements for an employee are related to development, work satisfaction, etc. Maslow’s theory is widely appreciated and is used as a basis for motivation by managers. However, sometimes it can happen that a person’s needs do not follow the exact order of the hierarchy. Nevertheless, an understanding of the requirements given by Maslow helps managers practice efficient motivation.

  1. What are the common barriers to effective communication? Suggest measures to overcome them.

Ans: Barriers in Communication: Sometimes the information that reaches the receiver is not the way the sender intended. That is, many times misunderstanding or misunderstanding of the information arises as it is passed from sender to receiver. This impedes the effective flow of communication. Communication barriers can be classified as follows:(A) Semantic barriers: Semantic barriers of communication relate to the use or understanding of language. It sometimes happens that some words, sentences or phrases are unclear or difficult to understand. Which is likely to misinterpret them. Interruptions in communication that arise from ambiguity or difficulty understanding words and sentences are known as semantic barriers. For example, sometimes senior or experts use technical terminology when giving instructions that may be difficult for subordinates to understand. Similarly, many times two or more words have the same pronunciation (such as reach and excess), resulting in confusion about the correct interpretation of the word.


(B) Psychological barriers:Sometimes psychological factors such as frustration, anger, fear can hinder effective communication. For example, out of desperation on a certain matter, a person’s mind may be preoccupied and he may not be able to understand the information given to him carefully. Similarly, due to prior assumptions regarding an interaction, a person may conclude before information is complete. (c) Personal barriers: Sometimes personal factors related to the sender or receiver act as a barrier to communication. For example, often in formal organizations, senior people do not share such information that they fear will damage their authority. Similarly, due to lack of trust in their subordinates, they may not be willing to pay attention to the information given by them. Similarly, subordinates may lack incentives to communicate freely with superiors. Thus, in such cases, effective communication is interrupted due to personal factors related to the sender and receiver.


(D) Organizational barriers: In formal organizational structures, barriers to communication arise due to factors such as authority, rules, rules, relationships, etc. For example, if an organization follows long vertical chains of communication, it may result in delays. Flow of information. Likewise, a highly centralized organizational structure hinders free communication.Measures to overcome obstacles in communication:The following are some measures that can be adopted to overcome various barriers of communication.(i) Communication should be according to the level and capabilities of the receiver’s understanding. That is, it must be ensured that the receiver is able to understand the information clearly.(ii) The language, accent and content of the information must be chosen appropriately. This is easily understood and should not harm anyone’s feelings. (iii) Proper feedback must be taken from the receiver for communication to be effective. That is, he should be encouraged to respond during the conversation.(iv) It should be ensured that the information is complete in all respects and nothing is unclear.(v) The main idea of ​​communication should be clear between sender and receiver. That is, communication should be properly communicated.(vi) The information sender should also be a patient listener. It should also be open for communication from the other end.

  1. Explain different financial and non-financial incentives used to motivate employees of a company?

Ans: Financial incentives: Financial incentives refer to direct monetary incentives given to employees to motivate or reward people for better performance. Following are some of the financial incentives used in organizations.i. Salaries and Allowances: Salaries and allowances given to employees in every organization are the basic form of financial incentives. Regular increase in salary and grant of allowances serve as motivation for the employees.ii. Performance Based Incentives: Often organizations offer monetary rewards for good performance. This motivates workers to improve their efficiency and performance.iii. Bonus: Bonus refers to the over and above the basic salary. It can take cash, gifts, paid holidays etc. For example, some organizations give bonuses during festival times such as Diwali bonuses.iv. Stock option: Under this incentive scheme, the employee is offered shares of the company at a price below market value. It instills a sense of ownership and belonging in the employee and urges him to contribute towards the goals of the organization.


v. Profit sharing: Here, the organization shares a part of the profit with its employees. It encourages workers to actively contribute to the development of the Retirement benefits: Many organizations provide some retirement benefits to their employees like pension, gratuity, provident fund, etc. It provides employees with a sense of security and stability.Non-financial incentives: Non-financial incentives refer to incentives that focus on social and psychological needs such as non-monetary needs of employees. Following are some of the non-financial incentives used in organizations. i. place:An increase in status in terms of power, authority, responsibility gives a psychological boost to employees. For example, a promotion can meet a person’s needs for respect and self-realization.ii. Organizational characteristics: Some features such as employee independence, recognition of performance, incentives and rewards play an important role in influencing the behavior of employees. For example, if employees receive appropriate recognition for their performance, it encourages them to work more efficiently. iii. Work Promotion: Often, a challenging task is endowed with greater responsibility and requires higher knowledge and skills that enhance the employee’s interest. It offers employee possibilities for personal development. Thus, it proves to be a good source of inspiration for him.iv. Career opportunities: If the organization is endowed with appropriate growth and career opportunities for its employees, it strives to perform better and, thus, climb the professional ladder.v. Job security: An employee should have security to a certain extent about his relationship with the organization. The constant fear of losing a job impedes their efficiency. However, a complete protection can also cause loss of interest in Participation: If an organization allows employees to participate in policy and decision-making matters, it creates a sense of belonging in them and motivates them to work towards organizational goals.



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