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CBSE CLASS 12 BUSINESS STUDIES
CHAPTER – 7
DIRECTING
REVISION NOTES

MEANING

Directing refers to giving instructions, guidance and motivation to the staff in an organization to
work efficiently in order to achieve organizational goals
...
Directing is
a continuous process initiated at top level and flows to the bottom through organizational
hierarchy
...
Directing Initiates Action: Directing is required at all stages, a manager has to perform this
function along with planning, organizing, staffing and controlling
...
Directing Takes Place at all Levels of Management: every manager has to perform this
function and thence it takes place at all levels of management
...
Directing is a Continuous Process: Directing takes place at all levels of the organisation so
that all activities are directed towards the achievement of organizational goals
4
...


IMPORTANCE
1
...

2
...
A manger
...

3
...

4
...
Effective directing through motivation, communication and
leadership help employees to cope with changes in the environment
...
Directing helps in Stability and Balance in the organization: Effective directing fosters
cooperation and commitment among employees and helps I striking a balance between various
activities and departments
...
A manager has to deal
with people with diverse background, and expectations
...


The following are the basic principles of effective direction:
1
...

It should bring out untapped energies of employees for the efficiency of organisation
...
Harmony of Objectives:

2

•
•

It is an important function of management to motivate people and direct their efforts
towards the achievement of enterprise objectives and their personal goals
...
The principle
implies harmony of personal interest and common interest
...
Unity of Command:
•
•

This principle states that one person should receive orders from only one superior, in
other words, one person should be accountable to only one boss
...


4
...


5
...

To have effective direction, it is very essential to have an effective communication
which provides for free flow of ideas, information, suggestions, complaints and
grievances
...
Use of Informal Organisation:
A manager must be aware of the informal groups in a organisation and use it for effective
directing
...
Leadership:
Managers should exercise good leadership as it can influence the subordinates positively without
causing dissatisfaction among them
...
Follow through:

3

A manager not only issue orders and instructions, but also follow-up the performance employees
so as to ensure that work is being performed as desired
...


ELEMENTS OF DIRECTING

(i) Supervision: Implies overseeing the work of subordinates by their superiors
...

(ii) Motivation: It means the process of making subordinates to act in a desired manner to
achieve certain organisational goals
...

(iv) Communications: is the process of passing information, experience, opinion etc
...


I: SUPERVISION
•
•
•

•

It is a process of guiding the efforts of employees and other resources to accomplish
desired objectives
...


It is an important function at the lower levels of management therefore the term
'Supervisor’ is used at the operatives level of management

IMPORTANCE OF SUPERVISION
1
...
A good supervisor acts as a guide, friend
and philosopher to the workers
...
Supervisor acts as a link between workers and management as he/ she explains
management policies to workers and brings workers problems to the notice of the management
...
Supervisor plays a key role in maintaining group unity among workers placed under his
control
...
Supervisor ensures performance of workers is according to the set targets
...
Supervisor provides good on the- job training to the workers and employees
...
Supervisory leadership plays a key role in influencing the workers in the organisation
...
A good supervisor analyses the work performed by workers and gives feedback to the
workers
...
Motivation

•
•

Motivation means incitement or inducement to act or move
...


Three key terms = motive, motivation, motivators

Motive : Inner state that energizes, activates and directs behaviour towards goals
...

Motivation : Process of stimulating people to action to accomplish desired goals
...
E
...
= bonus, promotion, recognition etc
...
Motivation is a Psychological Phenomenon:
Motivation is an internal feeling, such as urge, drives and desires which means it cannot be
forced on employees
...
Motivation is a Goal Oriented Behaviour:
It induces people to behave in a particular manner so that they can achieve their goals
...


3
...
g
...

Negative motivation means forcing people to work by threatening or punishing them
...
g
...


5

3
...

4
...
are adequately provided, work
becomes a source of pleasure and workers absenteeism can be reduced
...
Motivation facilitate change:
Motivation helps managers to introduce changes smoothly without much resistance from
workers
...

•Every human being have a wide range of needs like physiological needs, social needs, safety
needs, esteem needs and self actualisation needs which motivate them to work
...

•For the satisfaction of these needs, managers must offer different incentives (monetary and nonmonetary) to employees depending on the level in which the person belongs
...
Basic Physiological Needs: These are the most basic need such as food, shelter, sleep etc
...

2
...
g
...

3
...

3
...

4
...
It refers to the drive
to become what one is capable of becoming
...

I
...

Types of Financial incentives:
1
...

2
...
This is used for increasing productivity
...
Bonus: Bonus is an incentive offered over and above the wages/ salary for the services
provided by the employees
...
Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of
the organisation in order to motivate them
...
Co-partnership/ Stock option: Under these incentive schemes, employees of the
company are given an option to buy the company shares at a set price which is lower than
market price
...
Retirement Benefits: Retirement benefits are the benefits received either at the time of
retirement or afterwards, such as provident fund, pension, and gratuity
...

7
...
, over and above the
salary
...
It provides psychological satisfaction to an employee
...
Status: In the organizational context, status means ranking of positions in an
organisation, in other words status given to a person holding a managerial position
...
Organisational Climate: Organisational climate indicates the characteristics which
describe an organisation and distinguish it from an another one
...
Career Advancement Opportunity: A company must provide employees appropriate
skill development programmes, and a sound promotion policy to achieve promotions
...
It is
transfer of information from the sender to the receiver
...
Sender: the person who conveys his thoughts or ideas to receiver
...
Message: Ideas, feelings, suggestions, order etc
...

3
...

4
...

5
...

6
...

7
...

8
...


12

IMPORTANCE OF COMMUNICATION

1
...

2
...

3
...

4
...

The employee must know clearly whom he/ she has to report and what part of total job they are
expected to perform and what are their decisions
...
Promotes cooperation and Industrial Peace: Efficient and effective communication
promotes cooperation and mutual understanding between the management and workers and
brings peace in the organization
...
Establishes effective leadership: Communication helps to influence subordinates
...
Boosts morale and provides
7
...
There
is a two-way information flow between the superior and subordinates
...


Some of the popular communication networks are:

1
...

2
...

3
...

4
...

5
...


INFORMAL COMMUNICATION

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Communication that takes place without following the formal lines of communication is said to
be informal communication
...


GRAVEVINE COMMUNICATION NETWORK

Single strand network: each person communicates to the other in a sequence
...

Probability network: the individual communicates randomly with others
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BARRIERS TO COMMUNICATION

I
...
Semantic barriers are as follows:

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1
...

2
...

3
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4
...

5
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6
...


II
...


Some of the psychological barriers are:
1
...

2
...

3
...

4
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III
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1
...

3
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5
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Personal Barriers: Personal factors of both superior and subordinate may influence an
effective communication
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Fear of challenge to authority
2
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Unwillingness to communicate
4
...

2
...

4
...

6
...

8
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Clarify the ideas before communication
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Consult others before communicating
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Convey things of help and value to listeners:
Ensure proper feedback
Communicate for present as well as future
Follow up communication: helps to remove hurdles, misunderstanding of
instructions given by managers to subordination
...


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