DIRECTING

PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
Official
Syllabus
 DIRECTING
Directing is telling people what to do and seeing that they do it to the
best of their ability.
 Feature/ Characteristic of Directing

01 Initiates action
02 Continuous activity
03 Human element
04 Flow from top to bottom
05 Performance oriented
06 Pervasive
 Feature/ Characteristic of Directing
Continuous Performance Human Flow from top
Initiates action Pervasive
activity oriented element to bottom

It is the function Directing is a Directing is The main motive It involves study

of management of directing is Directions are
continuous required at every and moulding of
where as actual brining given by
activity manager level of the human
efficiency in manager to
works starts by has continuously organization behaviour it
performance. their
giving direction guide, supervise every manager improves
Directing helps subordinates.
manager get the and motivate his provides communication
to improve Directing starts
work started in also and it
subordinates. guidance and performance of from top level
the organization. motivate
inspiration to his employees and flows to
employees to
subordinates. lower level.
perform their
best ability.
 Importance of Directing

Helps to initiate To integrate Means of Helps to adopt Bring stability

action employee motivation changes and balance in
efforts the organizati
on
Helps to initiate action:

The employees in the organization

start working only when they get
instruction and directions from their
superiors. Directing function provide
direction to the employees to achieve
organizational goal.
To integrate employee efforts

In the organization number of

employees are working at different
levels and in different job positions.
They may have different level of
authority and responsibility. But all
are the part of one organization and
all are interrelated to each other. So
directing function helps to integrated
their efforts
Means of motivation

Directing function does not mean

giving orders only but through
directions and instruction the
superiors try to motivate the
employee to perform to their best
ability.
Helps to adopt changes

Generally the employees hesitate

in accepting the changes but
through directing function
changes can be implemented
more easily as while giving
direction the superiors guide the
subordinates that the changes
Bring stability and balance in the organization

Directing functions tries to create

balance in the organization.
Generally when the employees
are working at different level they
develop different attitudes and
directing functions tries to make
the balance and stability in the
organization
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DIRECTING
PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
 Elements of Directing

01 Supervision

02 Motivation

03 Communication

04 Leadership
MOTIVATION
Motivation can be define as stimulating,
inspiring and inducing the employees to
perform their best ability motivation is a
psychological term which means it
cannot be forced on employee. It comes
automatically from inside the employees
as it willingness to do work.

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 Features of Motivation
# It is goal oriented process
# It is a complex process

# Motivation is an internal # Continuous process

feeling
# It changes
# Motivation can be according to the
positive or negative
need of employees
 Meaning

Need or Desire is a very important element in motivation because the employees

get motivated only for their needs and if the needs are full filed completely then
it is not possible to motivate the employees.

Maslow’s
NEED HIERARCHY THEORY
Physiological needs

These needs include basis

requirement for survival and
maintenance of human life. These
needs include basic requirements
for survival and maintenance of
human life. These are food,
shelter, and clothing physiological
need must be satisfied through
monetary incentives.
Safety and Security needs

Once the present day physiological

needs are fulfilled then the people
start thinking about their future as
they want to secure their future
by making sure that in future also
they continue to satisfy their
physiological needs. (physical and
economic security) the
organization satisfies these needs
by providing job security stability
of income, pension plans, etc.
Social needs/ belonging need

it means the need for love,

affection, friendship,
companionship etc. to fulfill the
social needs the manager prefer
team work prefer informal
organization through this
employees can develop social
relationship.
Esteem needs

These needs are related to the

respect and recognition when the
above three needs are satisfied
then people start demanding
respect for themselves in a group.
It can be satisfied through non-
monetary incentives.
Self Actualisation needs

This need refers to realizing or

reaching to the aim of your life.
Once the employees become what
he wants to became it means
satisfaction of his actualization
need. E.g. when a solider faces
bravely the bullet of enemy he
seems to realise the self
actualization need.
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DIRECTING
PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
 FINANCIAL INCENTIVES
(MONETARY)
Incentives which are measured
in form of money and paid to
employees these are more
powerful for lower employees.
 Common type of financial incentives are
01 Pay and allowances:- it refers regular increments in salary every year
and grant of allowances according to the employees.

02 Profit and Sharing:- In this the companies fix a percentage of profit and
it the profit exceeds that percentage then the surplus profit is
distributed among the employees. It encourage the employees to
perform better.

03 Bonus:- it is a one time extra payment offered to employees of any

occasion or annual day of the organization. It encourage employees to
performing with their best ability.

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 Co-partnership/ stock option:- under those incentives schemes,
04
employees are offered company shares at a price lower than the market
price. Sharing the profit does not give ownership right to the
employees. This creates a feeling of ownership to the employees.
Commission:- Employees are working under sales department are given
05
commission according to the sales volume. It encourage sales executive
to increase the amount of sales.

06 Productivity linked with wage incentives:- more wages offered for more
productivity. It encourage employees to produces more for earning
higher wages.

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 Retirement benefits:- several retirement benefit such as provident fund,
07
pension fund and gratuity provide financial security to employees after
their retirement. This acts as in incentives.
Perquisites:- These are some special benefit such as Car allowances,
08
Housing , Children education, Leave travel, medical, etc. these
measures helps to provide motivation to the employees

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NON FINANCIAL INCENTIVES
(NON MONETARY)
These incentives cannot be
calculated in terms of money
but provide psychological and EMPLOYEE
emotional satisfaction to the OF THE
employees. These are more
MONTH
required to top level managers
 Common type of Non financial incentives are

Status:- it refers to rank, authority, responsibilities & Prestige related job

01
by offering higher status or rank in the organization manager can
motivate employees
Career advancement opportunity:- manager should provide opportunity
02
to employees to improves their skills and be promoted to the higher
level jobs. It improves the morale of employees.

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03 Employee recognition:- it mean giving special regard or respect which
satisfy the ego of subordinates when employee are appreciated for
their good performance they feel motivated. Which influence other
employees also employee recognition programme include.
a) Congratulations the employee for good performance.
b) Installing award or certificate for the best performance.
c) Rewarding an employees for giving valuable suggestions.
d) Displaying on the notice board.
e) Distribution of T-shirts, etc.
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04 Job security:- Employees want their to be secure job security ensures
stability of future income which motivates people to work with their
best ability. However, there is one negative aspect of job security when
people feel they are not likely to lose their job they may not work with
their best ability e.g. govt. employees.

05 Employee participation:- It means involving employees in decision

making. Welcome their suggestion, ask them before assigning job to
them this will create a felling of belonginess.

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06 Organizational climate:- it refers to a healthy relations between
superior and subordinates. A positive approach adopted by manager
create better organization climate whereas negative approach may
spoil the climate employees are always motivated in the healthy
organization climate.

Job enrichment / job autonomy:- job enrichment is concerned with

07
designing jobs. Employees get bored by performing routine job. By
offering challenging jobs, autonomy to perform job, interesting jobs,
employees get satisfied and they are motivated.

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 Thank you
NEED YOUR LOVE & SUPPORT
DIRECTING
PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
LEADERSHIP

Leadership refers to the

process of influencing the
behaviour of people in a
manner that they strive
willingly and enthusiastically
towards the achievement of
group objectives. He take care
of his followers
 STYLES OF LEADERSHIP
Autocratic or Authoritative leadership
(Boss centered leadership)

An Autocratic leader exercise complete

control over the subordinates. He
centralizes power in himself and takes
all decisions without consulting the
subordinates he does not delegate
power. The leader gives order and
expects the subordinates to follow
them unquestioningly. He gives reward
and puts penalty to direct the
subordinates.
 Advantages and Disadvantages of Autocratic style of Leadership
Advantages
i) Quick decision making
ii) May bring positive result when great
speed is required
iii) Provide strong motivation and
satisfaction to leader
Disadvantages
i) Leads to frustration and low moral
among subordinates
ii) Initiative level of subordinates goes
down
iii) Potential and creativity of subordinates
are not utilised
iv) No development of subordinates takes
place
It is suitable when subordinates are
uneducated, unskilled, lack of knowledge
e.g. Adolf Hitler
 STYLES OF LEADERSHIP
Democratic or Participative leadership
(Group centered leadership)

Under this style leader takes decisions

in consultation and participation with
employees. He delegates and
decentralizes the authority. Leader
follow the opinion of majority. He
provide freedom of thinking. He listens
to the suggestion, grievance and
opinion of the subordinates.
 Advantages and Disadvantages of Democratic style of Leadership

Advantages Disadvantages
i) Improves the job satisfaction and morale i) Time consuming and result delay in action
of employees ii) Burden of responsibility
ii) Improves decision making ability of
subordinates This types of leadership is suitable when
iii) Develop positive attitude and reduce goal of company is to increase job
labour turnover satisfaction and independence of employees
e.g. Narayan Murthy
 STYLES OF LEADERSHIP
Free-rein or Laissez fair leadership

This style involves complete

delegation of authority so that
subordinates themselves takes
decision in this style, leader avoids
power. He serves only as a contact
to bring information and
resources needed by the
subordinates.
 Advantages and Disadvantages of Free- rein style of Leadership

Advantages Disadvantages
i) Positive effect on job satisfaction and i) Subordinates do not get the guidance
morale of subordinates and support of the leader
ii) Maximum scope for development of ii) It ignores the contribution of leader
subordinates iii) Subordinates may work in different
direction and result chaos
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 Thank you
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DIRECTING
PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
COMMUNICATION PROCESS (NCERT)
 Types of Communication
Formal communication
It refers to official communication
between the people are officially
related to each other e.g. ideas or
message related to official matter
such as task, fixing of
responsibilities, granting
authority or setting up of target,
objective, etc Communication are
generally in written form.
Informal communication
Informal communication between
different members of organisation who
are not officially attached to each
other. Social interaction, friendly talks,
gossips, and other than official matters
which gives satisfaction to them
informal communication information
mover zig-zag manner. That is why the
network of informal communication is
known as grape vine
Informal system of communication is generally referred to as the ‘grapevine’ because
it spreads throughout the organisation with its branches going out in all directions in
utter disregard to the levels of authority.
 TYPES OF FORMAL COMMUNICATION
Vertical communication
DOWNWARD UPWARD

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 Horizontal communication
Horizontal Communication

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 Diagonal communication
Diagonal Communication

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 Difference between formal and informal communication
Basis of Formal communication
Meaning Communication between two or
more who are officially attached
Nature It is rigid in nature and cannot be
modified
Form These may be oral or written but
generally prefer written
Sclar chain Here scalar chain follow
Need It server need of organisation
Purpose To achieve organisational objectives
Fixation It is easy to fix the responsibilities in
responsibiliti formal communication because
es source of information is known
Informal communication
Communication between two or more
who are not officially attached
It is flexible, dynamic and varies from
individual to individual
Informal communication and generally
oral
It does not follow scalar chain
It serve need of individual working in
organisations
For getting relief and psychological
satisfaction
It is not possible to fix the responsibility
because sources of information no is
known
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DIRECTING
PART- 1
XII BUSINESS STUDIES
2022-2023
SUNIL PANDA COMMERCE CLASSES
 BARRIERS
TO EFFECTIVE COMMUNICATION

A communication barrier is anything that comes in the way of receiving and

understanding messages that one sends to another to convey his ideas, thoughts,
or any other kind of information.

BARRIERS
TO EFFECTIVE COMMUNICATION
 Types of communication Barrier

Semantic Barrier

Psychological Barrier

Organisational Barrier

Personal Barrier
1. Semantic Barrier:- Sometimes the same words and sentences can be
understood differently by different people which means difference in the
understanding levels of employees
Main cause for semantic problem can be

Main cause for semantic problem can be

i) Badly expressed message:- Sometimes due to lack of vocabulary manager
may use wrong word, omission of needs words.
ii) Symbols with different meaning :- Sometimes a word may have different
meaning receiver may understand the other meaning. Price, Prize, Principle,
Principal, Right, write, etc.
iii) Faulty translation:- Sometimes the workers do not understand the language
which is used by manger
iv) Technical jargon:- sometimes technical words used by communicator may not
understand by the workers
v) Body language and gesture decoding:- Body language must match with your
verbal communication otherwise workers may get confused.
vi) Unclarified assumption:- Sometimes the workers may predetermined
assumptions
2. Psychological barrier:- Here the state of mind has great influence over the
information and its reflection these barriers are

i) Premature evaluation:- Its mean deriving conclusion before completion of

message
ii) Lack of attention:- It means when receiver does not pay complete attention
to the message communication becomes ineffective.
3. Organisation Barrier:- Factors related to organisational structure authority
relationship, rules, regulations, may act as barriers to effective communication
these are
i) Organisational policy:- If organisational policy does not support free flow of
information it may result in barriers
ii) Rule and Regulations:- Rigid rules, regulations may also create barriers as
following rules may lead to delay in action
iii) Status difference:- Sometimes the people working at higher level do not
believe in information supplied by the lower level employees
iv) Complex organisation:- When the information passes through various levels
then the can be screening or filtering of information at different levels.
4. Personal Barrier:- Certain personal factors of senders and receiver may
influence the free flow of information some of the personal barriers ae
i) Lack of confidence of superior in his subordinates:- If superiors have no
confidence and trust in their subordinates they pay no attention to their
advice, opinion or suggestions.
ii) Lack of incentives:- If there is no incentives for communication then
subordinates may not like initiatives to give suggestions. e.g. if there is no
reward given for given for giving some good suggestions then employees
will take no initiatives to give suggestion .
iii) Fear of authority:- Sometimes superiors conceal and hide information if they
have fear of losing their authority over the subordinates
 Improving communication effectiveness
i) Clarify the idea before communication:- In the first place we must be
clear about what we want to communicate. The message can be
conveyed properly only if it is clearly formulated in the mind of
communication
ii) Communication according to the need of the receiver:- Whenever we
communicate we must keep in mind the needs of the receiver of the
message
iii) Consult others before communicating:- Before communicating the
message it is advisable to consult others. Effective communication is
the responsibility of all persons in the organisation as all have to work
towards common goal.

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iv) Use Proper language, tone and contents of message:- For an effective
communication the words, tone and symbol used in message must be
selected very carefully. The symbols used in message must be known to the
listner
v) Proper feedback:- Feedback help to know the effect or success of
communication given by sender. Only the communication is completed
vi) Communication for the present as well as for future:- Communication
must meet the need of present organisation as well as future organisation
vii) Good listner:- The sender must listen to receiver words alternatively on
the other hand receiver must also listen with due attention
viii) Open mind:- The parties to communication must have open mind

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