NCERT Solutions for class 12 Business studies Chapter 7 Directing

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NCERT Solutions for class 12 Business studies Chapter 7 Directing

NCERT Textual Question with Answers

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Informal communication is casual, everyday conversation often occurring in social settings without strict rules or structure.

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Democratic leadership.

As Democratic leadership involves collective decision-making, valuing team input, and using power minimally, only when absolutely necessary for guidance.

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Encoding.

Encoding converts the message into words, symbols, gestures, etc., to ensure the receiver understands the sender’s intended meaning.

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Motivation.

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Semantic barriers of communication are obstacles caused by language and word choice, leading to misunderstandings. These arise from differences in meaning, interpretation, or connotation of words, technical language, and jargon. Miscommunication or confusion can result when the sender and receiver have varied interpretations of the same terms. Overcoming these barriers requires clear and concise language, avoiding ambiguous terms, and ensuring both parties understand the terminology used.

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The process of motivation involves several key steps that drive an individual towards achieving their goals:

  1. Need Identification: Recognizing an unmet need or desire.
  2. Tension: Feeling discomfort due to the unmet need.
  3. Goal Setting: Defining a clear goal to satisfy the need.
  4. Behavior: Taking actions to achieve the goal.
  5. Performance: Evaluating the effort and results of the actions.
  6. Feedback: Receiving responses that influence future behavior.
  7. Satisfaction or Dissatisfaction: Assessing whether the need has been met.

Here’s a simple diagram to illustrate the process:

  Need
    ↓
 Tension
    ↓
 Goal Setting
    ↓
  Behavior
    ↓
Performance
    ↓
 Feedback
    ↓
Satisfaction/Dissatisfaction

This cycle repeats as new needs arise, continually motivating individuals to take action.

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The different networks of grapevine communication are:

  1. Single Strand Chain: Information passes sequentially from one person to another.
  2. Gossip Chain: One person shares information with multiple others, who then continue spreading it.
  3. Probability Chain: Information spreads randomly, with individuals passing it on to others at random.
  4. Cluster Chain: Information is shared with a few select individuals, who then each share it with others in their own clusters.

These informal networks can facilitate quick dissemination of information and can influence organizational dynamics.

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Here are three principles of Directing:

  1. Unity of Command: Each employee should receive orders from only one superior to avoid confusion and conflicts.
  2. Motivation: Effective directing involves motivating employees to enhance their productivity and achieve organizational goals.
  3. Effective Communication: Clear and open communication is essential to ensure that instructions are understood and followed correctly.

These principles help create a structured and efficient directing process within an organization.

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The problem in the way authority is being used by the manager is autocratic leadership. This inflexible, top-down approach creates a stressful environment where employees lack initiative and fear expressing their opinions, leading to low morale, reduced creativity, and hindered communication within the team. Encouraging a more participative leadership style could help address these issues and foster a positive work environment.

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The incentive highlighted here is employee welfare. Its category is non-monetary incentives. Two more incentives of the same category are:

  1. Job security: Ensuring stable employment and career growth.
  2. Recognition and awards: Acknowledging and appreciating employees’ contributions and achievements.

These incentives help boost employee morale and satisfaction without directly involving financial rewards.

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Maslow’s Need Hierarchy Theory of motivation is one of the most well-known theories in psychology, proposed by Abraham Maslow in 1943. It is based on the premise that human motivation is driven by the fulfillment of a series of needs that are arranged in a hierarchical order. According to Maslow, these needs must be satisfied sequentially, starting from the most basic to higher levels of needs. The hierarchy consists of five levels:

  1. Physiological Needs: These are the most basic and essential needs for human survival, including food, water, shelter, clothing, and sleep. Without meeting these needs, individuals cannot focus on higher-level needs.
  2. Safety Needs: Once physiological needs are met, individuals seek safety and security. This includes physical safety, financial security, health, and well-being, as well as protection from potential threats and harm.
  3. Social Needs (Love and Belongingness): After ensuring safety, individuals crave social connections. This includes the need for friendships, family relationships, intimacy, and a sense of belonging to groups or communities. These social connections provide emotional support and a sense of acceptance.
  4. Esteem Needs: With social needs fulfilled, individuals seek to achieve a sense of self-worth and recognition from others. Esteem needs can be divided into two categories:
    • Self-esteem: This includes self-respect, confidence, competence, and achievement.
    • Esteem from others: This involves recognition, appreciation, and respect from others.
  5. Self-actualization Needs: At the top of the hierarchy, self-actualization represents the realization of one’s full potential and the pursuit of personal growth, creativity, and self-improvement. This involves achieving personal goals, finding purpose, and experiencing self-fulfillment.

Maslow later added three more needs to his hierarchy, expanding it to eight levels. These are:

  1. Cognitive Needs: The need for knowledge, understanding, exploration, and intellectual development.
  2. Aesthetic Needs: The appreciation of beauty, balance, form, and aesthetics in life.
  3. Transcendence Needs: The need to go beyond the self and help others achieve self-actualization, often involving spiritual experiences.

Maslow’s theory emphasizes that lower-level needs must be at least partially satisfied before individuals can focus on higher-level needs. The theory also suggests that once a need is satisfied, it no longer serves as a primary motivator. Instead, individuals progress to the next level of needs in the hierarchy.

While Maslow’s Need Hierarchy Theory has been influential in understanding human motivation, it is essential to recognize that motivation is complex and dynamic. Different individuals may prioritize needs differently, and cultural and individual differences can influence the hierarchy of needs.

In summary, Maslow’s Need Hierarchy Theory provides a framework for understanding human motivation based on the progressive satisfaction of needs, from basic physiological needs to higher-level self-actualization. The theory highlights the importance of addressing fundamental needs before individuals can pursue personal growth and fulfillment.

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Common barriers to effective communication can significantly hinder the exchange of information, leading to misunderstandings and conflicts. These barriers can be broadly categorized into several types:

  1. Semantic Barriers: These arise from differences in the meanings of words and symbols. Misinterpretations can occur due to varied language use, technical jargon, and ambiguous terms. For example, a word with multiple meanings can lead to different interpretations by the sender and receiver.
  2. Psychological Barriers: Emotional states and attitudes can affect communication. Stress, fear, anger, and prejudice can distort the message and its reception. For instance, a person experiencing anxiety may misinterpret the tone or intent of a message.
  3. Organizational Barriers: These are related to the hierarchical structure and culture within an organization. Rigid chains of command, lack of open channels for feedback, and excessive formality can impede the flow of information. Employees may feel reluctant to share their ideas or concerns.
  4. Physical Barriers: Environmental factors such as noise, poor lighting, and physical distance can obstruct communication. In a noisy setting, verbal messages may not be heard clearly, and visual cues can be missed.
  5. Cultural Barriers: Differences in cultural backgrounds can lead to misunderstandings. Variations in language, customs, beliefs, and practices can cause confusion and misinterpretation. For example, gestures or expressions acceptable in one culture may be offensive in another.
  6. Perceptual Barriers: Perception is influenced by individual biases, experiences, and expectations. People may interpret the same message differently based on their perspectives. For instance, a manager’s constructive criticism might be perceived as harsh criticism by an employee.

Measures to Overcome Barriers to Effective Communication:

  1. Clarity and Conciseness: Ensure messages are clear, concise, and free from ambiguity. Use simple language and avoid jargon unless necessary. Clearly define complex terms to prevent misunderstandings.
  2. Active Listening: Encourage active listening by giving full attention to the speaker, avoiding interruptions, and providing feedback. Paraphrasing and summarizing the message can help ensure mutual understanding.
  3. Feedback Mechanisms: Establish open channels for feedback. Encourage employees to share their thoughts, ask questions, and express concerns. Feedback helps identify and rectify misunderstandings promptly.
  4. Empathy and Emotional Intelligence: Understand and respect the emotions and perspectives of others. Show empathy and patience when communicating, especially in stressful situations. This fosters trust and reduces psychological barriers.
  5. Adaptability: Adapt communication styles to suit the audience. Consider cultural differences and be sensitive to diverse backgrounds. Use appropriate language, gestures, and expressions to ensure the message is well-received.
  6. Training and Development: Provide training on effective communication skills. Workshops and seminars can enhance employees’ abilities to convey and interpret messages accurately. Training on cultural competence can also reduce cultural barriers.
  7. Use of Technology: Leverage technology to facilitate communication. Video conferencing, instant messaging, and collaboration tools can bridge physical distances and ensure real-time communication.
  8. Creating a Supportive Environment: Foster an organizational culture that values open communication. Encourage transparency, inclusivity, and mutual respect. Create an environment where employees feel comfortable sharing their ideas and feedback.

By addressing these common barriers and implementing measures to overcome them, organizations can enhance the effectiveness of their communication, leading to better collaboration, increased productivity, and a positive work environment.

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Motivating employees effectively requires a combination of financial and non-financial incentives. These incentives cater to different aspects of employees’ needs and aspirations, ensuring they remain engaged, productive, and loyal to the organization. Here are the different types of incentives:

Financial Incentives

  1. Salary and Wages: Regular compensation paid to employees for their work. Competitive salaries and timely wage increases based on performance help retain and attract talented employees.
  2. Bonuses: Extra financial rewards given for achieving specific targets or exceptional performance. Bonuses can be annual, quarterly, or project-based, encouraging employees to exceed their goals.
  3. Profit Sharing: A system where employees receive a share of the company’s profits. This aligns employees’ interests with the company’s success, motivating them to work towards common objectives.
  4. Stock Options: Offering employees the option to purchase company shares at a discounted price. Stock options provide a sense of ownership and long-term commitment to the organization.
  5. Commission: A percentage of sales or revenue generated by an employee. Commonly used in sales roles, commissions incentivize employees to increase their sales efforts and performance.
  6. Retirement Benefits: Financial contributions made by the company to employees’ retirement plans, such as provident funds or pensions. These benefits provide financial security for employees’ post-retirement life.
  7. Allowances: Additional payments made to employees for specific purposes, such as travel, housing, medical expenses, and education. Allowances help employees manage their personal expenses and improve their quality of life.

Non-Financial Incentives

  1. Recognition and Awards: Acknowledging employees’ achievements and contributions through public recognition, certificates, trophies, or other forms of appreciation. Recognition boosts employees’ morale and self-esteem.
  2. Career Development Opportunities: Providing opportunities for skill development, training, and career advancement. Employees who see a clear path for growth are more likely to remain motivated and committed to the organization.
  3. Job Security: Ensuring employees have stable employment and are not at risk of sudden layoffs. Job security fosters a sense of loyalty and reduces stress, leading to higher productivity.
  4. Flexible Work Arrangements: Allowing employees to have flexible working hours, remote work options, or compressed workweeks. Flexibility helps employees achieve a better work-life balance and reduces burnout.
  5. Work Environment: Creating a positive and supportive work environment with good facilities, healthy workplace relationships, and a culture of mutual respect. A conducive work environment enhances employee satisfaction and well-being.
  6. Employee Welfare Programs: Offering various programs that support employees’ physical, mental, and emotional well-being. Examples include healthcare plans, counseling services, recreational activities, and fitness programs.
  7. Empowerment and Involvement: Giving employees the autonomy to make decisions related to their work and involving them in organizational planning and decision-making processes. Empowerment leads to a greater sense of responsibility and ownership.
  8. Work-Life Balance Initiatives: Implementing policies and practices that promote a healthy work-life balance, such as parental leave, childcare facilities, and wellness programs. These initiatives help employees manage personal and professional commitments effectively.

By combining financial and non-financial incentives, companies can create a comprehensive motivation strategy that addresses the diverse needs and preferences of their employees. This holistic approach fosters a motivated and engaged workforce, ultimately contributing to the organization’s success.

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To address the inefficiency and loss of secrecy in the organization, the manager should consider adopting a formal communication system. Formal communication establishes clear protocols, channels, and structures for information exchange, ensuring that communication is efficient, secure, and effective. Here are the steps the manager can take to implement a formal communication system:

Steps to Implement a Formal Communication System

  1. Establish Clear Communication Channels:
  • Define specific channels for different types of communication, such as emails for formal announcements, meetings for collaborative discussions, and memos for policy updates.
  • Ensure that each employee knows which channel to use for various queries and issues, reducing unnecessary interruptions and improving efficiency.
  1. Create a Hierarchical Structure:
  • Implement a hierarchical communication structure where employees communicate with their immediate supervisors for routine queries and problems.
  • This structure ensures that information flows through the appropriate levels of authority, maintaining order and clarity in communication.
  1. Develop Communication Protocols:
  • Establish protocols for handling confidential information, including guidelines on who can access sensitive data and how it should be shared.
  • Implement policies for encrypting emails, using secure file-sharing platforms, and conducting confidential meetings to protect sensitive information.
  1. Conduct Regular Training Sessions:
  • Provide training to employees on the formal communication protocols and the importance of maintaining confidentiality.
  • Train employees on effective communication skills, including active listening, clear writing, and proper use of communication channels.
  1. Implement Technology Solutions:
  • Utilize communication tools and software that support formal communication, such as project management tools, secure messaging apps, and video conferencing platforms.
  • Ensure that these tools have features for tracking communication, maintaining records, and providing secure access to information.
  1. Encourage Documentation:
  • Encourage employees to document important communications, such as meeting minutes, email correspondence, and project updates.
  • Proper documentation ensures that there is a clear record of decisions, actions, and information shared, reducing misunderstandings and confusion.
  1. Monitor and Evaluate Communication Practices:
  • Regularly assess the effectiveness of the formal communication system through feedback, surveys, and performance reviews.
  • Identify areas for improvement and make necessary adjustments to the communication protocols and channels.

Benefits of a Formal Communication System

  • Increased Efficiency: A formal communication system reduces unnecessary interruptions and ensures that information flows smoothly through the organization.
  • Enhanced Security: By implementing protocols for handling confidential information, the organization can prevent data breaches and protect sensitive information.
  • Improved Clarity: Clear communication channels and protocols reduce misunderstandings and ensure that employees receive accurate and consistent information.
  • Accountability: Proper documentation and hierarchical communication structures hold employees accountable for their actions and decisions.
  • Consistency: A formal communication system ensures that all employees follow the same guidelines and procedures, promoting uniformity in communication.

By adopting a formal communication system, the manager can address the issues of inefficiency and loss of confidentiality, creating a more organized, secure, and effective communication environment within the organization. This approach will help improve overall productivity, employee satisfaction, and organizational performance.

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Anurag Pathak
Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his Youtube channel for free lectures

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