Class 12th Business Studies Chapter Explaination
Chpater- Directing
Meaning of Directing:
Directing means instructing, guiding, supervising, motivating, leading and coaching people in the organization to achieve its objectives.
Features of Directing:
- Directing Initiates Action: While other functions prepare a setting for action, directing initiates action in the organisation.
- It takes Place at Every Level of Management: directing takes place wherever superior – subordinate relations exist.
- It is a Continuous Process: It takes place throughout the life of the organisation irrespective of people occupying managerial positions.
- It Flows from top to bottom: it flows from top to bottom; every manager can direct his immediate subordinate.
Importance of Directing:
- Initiates Action: it initiates action, as a supervisor guides his subordinates and clarifies their doubts in performing a task.
- Integrates employee’s efforts: it integrates employeesefforts in the organisation in such a way that every individual effort contributes to the organisational performance.
- Means of Motivation: motivation and good leadership can always identify the potential of his employees and motivate them to extract work up to their full potential.
- Makes dynamic organisation: Effective directing through motivation, communication and leadership helps to reduce resistance towards changes.
- Balance in the Organisation: it fosters cooperation and commitment among the people and helps to achieve balance.
Elements of Directing:
- Supervision: overseeing what is being done by subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets.
- Motivation: the process of making subordinates to act in a desired manner to achieve certain organisational goals.
- Leadership: the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.
- Communication: Communication can be defined as a process of exchange of ideas, facts, feeling etc. between two or more people to create mutual understanding.
Motivation:
Meaning of Motivation:
the process of making subordinates to act in a desired manner to achieve certain organisational goals.
Features of Motivation:
- Internal Feeling: it’s an internal feeling, urge, drives, etc. that encourage the employee.
- Goal Directed Behaviour: different means are used to motivate according to the objective.
- Motivation can be either Positive or Negative: motivation can be both encouraging like, pay, promotion, recognition, etc. or it can be discouraging like, punishment, stopping increment, etc.
- Complex Process: motivation is dependent on the needs of the people which is heterogeneous.
Maslow's Need Hierarchy Theory of Motivation:
This theory was developed by Abraham H. Maslow a psychologist in 1943.
Maslow categorised human needs into five types:
- Basic Physiological Needs: These are the most basic need of human being which are required must of it's survival. For example, Hunger, thirst, shelter, etc.
- Safety or Security Needs: These are the needs of human beings that makes their life easy. For example, Job security, stability of income, etc.
- Social/Belongingness Needs: These are the needs of human beings that makes their life more interesting and livable. For example, Sense of belongingness, cordial relations among employees.
- Esteem Needs: Self-respect, autonomy, status, etc.
- Self-Actualisation Needs: This is the highest form of human needs. For example, Growth, self-fulfilment, achievement of goals.
Assumptions for application of Maslow's Need Hierarchy Theory:
- People's behaviour is based on their needs.
- People's needs are in hierarchical order.
- A satisfied need can no longer motivate a person.
- A person moves to the next higher level need only when the lower need is satisfied.
Financial and non-financial insentives
Financial Insentives:
incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance.
- Pay and Allowances: includes basic pay, dearness allowance and other allowances.
- Productivity-Linked Wage Incentives: pay hike and increments linked to performance.
- Bonus: incentive offered over and above the wages/ salary to the employees.
- Profit Sharing: share to employees in the profits of the organisation.
- Co-partnership/Stock Option: employees are offered company shares at a set price which is lower than market price.
- Retirement Benefits: retirement benefits such as provident fund, pension, and gratuity provide financial security to employees.
- Perquisites: perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary.
Non-Financial Incentives:
- Status: means ranking of positions in the organisation.
- Organisational Climate: These characteristics influence the behaviour of individuals in theorganisation and distinguish one organisation from the other.
- Career Advancement Opportunity: opportunity to employees to improve their skills and be promoted tothe higher-level jobs.
- Job Enrichment: designing jobs that include greater variety of work content, require higher levelof knowledge and skill; give workers more autonomy and responsibility.
- Employee Recognition: Most people have a need for evaluation of their work and due recognition,acknowledgment with a show of appreciation might satisfy.
- Job Security: certain stability about future income and work so that they do not feel worried onthese aspects and work with greater zeal.
- Employee Participation: involving employees in decision making of the issues related to them.
- Employee Empowerment: giving more autonomy and powers to subordinates.
Leadership
Meaning of Leadership:
the process of influencing the behaviour of people by making them strive voluntarily towards achievement oforganisational goals.
Features of Leadership:
- It indicates ability of an individual to influence others.
- Leadership tries to bring change in the behaviour of people.
- It indicates interpersonal relations between leaders and followers.
- Leadership is exercised to achieve common goals of the organisation.
- Leadership is a continuous process.
Leadership Styles:
- Autocratic Leadership: Autocratic style of leadership is one in which a leader gives orders andexpects his/her subordinates to obey those orders.
- Democratic Leadership: Democratic style of leadership is one in which a leader develops actionplans and makes decisions in consultation with his subordinates.
- Laissez-Faire Leadership: A free-rein leader gives a high degree of freedom to the subordinates.The group members work on their own tasks, resolving issues themselves. Such a leader avoids the use ofpower. He serves only as a 'contact with the outside world to bring the required information and resourcesto complete the task assigned.
Communication:
Meaning of Communication:
Communication can be defined as a process of exchange of ideas, facts, feeling etc. between two or more people tocreate mutual understanding.
Elements of Communication Process:
- Sender or Communicator: person who conveys his thoughts or idea.
- Message: the content of ideas, feelings, suggestions, order, etc., intended to be communicated.
- Encoding: converting message into communication symbols.
- Media or Communication Channel: path through which encoded message is transmitted to receiver.
- Receiver: The person who receives communication of the sender.
- Decoding: It is the process of converting encoded symbols of the sender.
- Feedback: actions of receiver indicating that he has received and understood message of sender.
- Noise: obstruction or hindrance to communication.
Type of Communication:
- Formal Communication: It refers to the communication which flows through official channels designedin the organisation chart (i.e., through scalar chain).
- Informal Communication: It refers to the communication which takes place without following formallines of communication (i.e., disregarding the levels of authority)
Barriers to Effective Communication
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Semantic Barriers:
- Badly Expressed Message: intended meaning may not be conveyed by a manager to hissubordinates.
- Words or Symbols with Different meanings: A word may have several meanings. Receiver has toperceive one such meaning for the word used by communicator.
- Faulty Translations: understandable to workers (e.g., Hindi). If the translator is notproficient with both the languages, mistakes may creep in causing different meanings to thecommunication.
- Unclarified Assumptions: Some communications may have certain assumptions which are subjectto different interpretations.
- Technical Jargon: specialists use technical jargon while explaining to persons who are notspecialists in the concerned field. Therefore, they may not understand the actual meaning.
- Body Language and Gesture Decoding: If there is no match between what is said and what isexpressed in body movements, communications may be wrongly perceived.
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Psychological Barriers:
- Premature Evaluation: Sometimes people evaluate the meaning of message before the sendercompletes his message.
- Lack of Attention/Poor Listening: The preoccupied mind of receiver and the resultantnon-listening of message acts as a major psychological barrier.
- Loss by Transmission and Poor Retention: When communication passes through various levels,successive transmissions of the message results in loss of, or transmission of inaccurateinformation.
- Distrust: Distrust between communicator and communicate acts as a barrier.
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Organisational Barriers:
- Organisational Policy: If the organisational policy, explicit or implicit, is notsupportive to free flow of communication.
- Rules and Regulations: rigid rules and cumbersome procedures may be a hurdle tocommunication.
- Status: Difference between status of superior and subordinate might create communicationbarrier.
- Complexity in Organisation Structure: organisation where there are number of manageriallevels, communication gets delayed and distorted.
- Organisational Facilities: If facilities for smooth, clear and timely communications arenot provided communications may be hampered.
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Personal Barriers:
- Fear of Challenge to Authority: If a superior perceives that a particular communication mayadversely affect his authority, he or she may withhold or suppress such communication.
- Lack of Confidence of Superior on his Subordinates: If superiors do not have confidence onthe competency of their subordinates, they may not seek their advice or opinions.
- Unwillingness to Communicate: Unwillingness to communicate: Sometimes, subordinates may not be prepared to communicate with their superiors.
- Lack of Proper Incentives: If there is no motivation or incentive for communication, subordinates may not take initiative to communicate.
Measure to improve communication:
- Clarify the ideas before communication: The problem to be communicated to subordinates should be clear in all its perspective to the executive himself. After properly studying in depth, analysing and stating.
- Communicate according to the needs of receiver: Manager should adjust his communication according to the education and understanding levels of subordinates.
- Consult others before communicating: Before actually communicating the message, it is better to involve others in developing a plan for communication. It might help to gain ready acceptance and willing cooperation of subordinates.
- Be aware of languages, tone and content of message: The language used should be understandable to the receiver and should not offend the sentiments of listeners. The message should be stimulating to evoke response from the listeners.
- Convey things of help and value to listeners: it is better to know the interests and needs of the people with whom you are communicating, because message relating to their interest helps to evoke response from communicatee.
- Ensure proper feedback: The communicator should ensure the success of communication by asking questions regarding the message conveyed & the receiver should also respond. Feedback improves communication process & makes it more responsive.
- Communicate for present as well as future: Generally, communication is needed to meet the existing commitments to maintain consistency, the communication should aim at future goals of the enterprise also.
- Follow up communications: There should be regular follow up and review on the instructions given to subordinates. It helps in removing hurdles if any in implementing the instructions.
- Be a good listener: Manager should be a good listener. Patient and attentive listening solves half of the problems. Managers should also give indications of their interest in listening to their subordinates.