Directing Class 12 Notes Business Studies

Directing is telling people what to do and seeing that they do it to the best of their ability. Here are the directing class 12 notes.

Directing

The directing function of management is concerned with instructing, guiding, inspiring, coaching, leading, and motivating the employees in the organization so that their efforts result in the achievement of organizational goals.

Features of Directing

1) Directing Initiates Action

Other functions prepare a base for the setting of the action, i.e., how the action has to be carried out the directing initiate or start the action.

2) Directing is a Continuous Function

A manager cannot just rest after issuing orders and instructions. He/She has to continuously guide, supervise, and motivate his/her subordinates.

3) Directing takes place at every Level of Management

Directing is a pervasive function as managers perform it at all levels and in all locations.

4) Directing Flows from Top to Bottom

Directing is first initiated at the top level and flows to the bottom through the organizational hierarchy.

5) Directing is Performance Oriented

Directing is a performance-oriented function. The main motive of directing is bringing efficiency in performance.

Importance of Directing Function

1) Directing Initiate Action

The employees in the organization start working only when they get instructions and directions from their superiors.

For example, If a supervisor guides his subordinates and clarifies their doubts while performing a task, it will help the worker to achieve the targets given to him.

2) Directing Integrates Employees’ Efforts

Directing integrates employees’ efforts in the organization in such a way that every individual effort contributes to organizational goals.

For example, A manager with good leadership abilities will be in a position to convince the employees working under him that individual efforts and team efforts will lead to the achievement of organizational goals.

3) Means of Motivation/Guides Employees

Directing function does not mean giving orders only but through directions and instructions the superiors try to motivate the employees to perform to their best ability.

4) Facilitate Change

Directing facilitates the introduction of needed changes in the organization. Generally, people tend to resist changes in an organization.

Effective directing through motivation, communication, and leadership helps to reduce such resistance.

5) Bring Stability and Balance to the Organization

Effective directing helps to bring stability and balance to the organization since it fosters cooperation and commitment among the employees.

It helps to achieve balance among various groups, activities, and departments.

Elements of Directing

There are four elements of directing which are as follows:

• Supervision
• Leadership
• Communication
• Motivation

Supervision

Supervision means instructing, guiding, monitoring, and observing the employees while they are performing jobs in the organization.

It is the process of guiding the efforts of employees and other resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure the optimum utilization of resources and achievement of work targets.

It is a managerial position in the organization hierarchy at the operative level i.e., immediately above the workers.

Communication

Communication can be defined as the transmission or exchange of ideas, views, messages, information, facts, feelings, etc. between two or more persons by different means to create a common understanding.

Communication is a two-way process as it begins with the sender and ends when the feedback comes from the receiver to the sender.

A minimum of two parties are involved in the process of communication, i.e., the sender and the receiver.

Elements of Communication

The communication process begins when the sender thinks of an idea or message to be conveyed to the other person.

The elements involved in the Communication process are:

• Sender: A Sender is a person who conveys the message.
• Message: The content of ideas or message suggestions that the sender wants to share with the receiver is called a message.
• Encoding: The receiver cannot read the mind of the sender. So, the receiver converted the idea into language or other communication symbols such as pictures, gestures, etc. This is called encoding.
• Media: It is the way or means through which an encoded message is transmitted to the receiver. The common ways of transmission are phone, letter, internet, etc.
• Decoding: It refers to converting the encoded message into language and understanding the message.
• Receiver: A receiver is a person who receives the communication and understands the message.
• Feedback: After understanding the message, the receiver sends his response to that idea or message to the sender. That response is called feedback.
• Noise: Noise means some obstruction or hindrance to communication. Some examples of noise are poor telephone connection, an inattentive receiver, faulty decoding, etc.

Forms of Organizational Communication

Formal Communication

Formal communication refers to official communication taking place in the organization.

The exchange of views, messages, or information related to official matters such as the assignment of tasks, fixing of responsibilities, etc. is known as formal communication.

Under formal communication, verbal or oral channels are avoided and communication generally takes place in written form such as the issue of notice, letter, memo, or document.

Advantages and Disadvantages of Formal Communication

Informal Communication

The communication between different members of an organization who are not officially attached is known as informal communication.

There is no fixed direction or path for the flow of information under informal communication. Generally, social interactions, friendly talks, and non-official matters are discussed in informal communication.

The information moves in a very vague, confusing, and zig-zag manner. That is why the network of informal communication is known as Grape Vine.

Advantages and Disadvantages of Informal Organization

Difference between Formal Communication & Informal Communication

Controlling Class 12 Notes Business Studies

Barriers to Effective Communication

Sometimes the message sent by the sender does not reach the receiver in the same manner as expected by the sender.

This filtration and misrepresentation of communication may cause misunderstanding. Therefore, a manager needs to identify these barriers and take measures to overcome them.

The barriers can be grouped into the following categories:

• Semantic Barriers
• Psychological Barriers
• Organizational Barriers
• Personal Barriers

Semantic Barriers

Sometimes the same words and sentences can be understood differently by different people in the organization which means a difference in the understanding levels of employees.

Main Causes for the Semantic Barriers:

1. Badly Expressed Message – Sometimes due to a lack of vocabulary, managers may use the wrong words and omit needed words.
2. Symbols with Different Meanings – Sometimes a word may have different meanings. A receiver may understand a different meaning.
3. Faulty Translations – Sometimes the workers do not understand the language that the manager uses so workers get it translated. If the translator is not efficient, he makes mistakes in translation.
4. Unclarified Assumption – Sometimes the workers may misinterpret the assumptions.
5. Technical Jargon – While explaining to subordinates many specialized experts use technical words that the workers may not understand. Examples, Tariffs, quotas, etc.
6. Body Language and Gesture Decoding – The body movement and gestures of the communicator matter so much in conveying the message.

Organizational Barriers

Organizational barriers are related to organizational structure, authority relationships, rules, regulations, etc.

1. Organizational Policy – If the organizational policy does not support the free flow of information, it may result in barriers.
2. Rules and Regulations – Rigid rules and regulations may also create barriers as following rules may lead to red-tapism, delay of action, and delay in the movement of information.
3. Status Difference – Sometimes the people working at a higher level do not believe in the information supplied by the lower level employees as they feel how would he know about my job and who is he to give me suggestions.
4. Complex Organization – When the information passes through various levels then there can be a screening of the information at different levels.

Psychological Barriers

Emotional and psychological factors also act as barriers to effective communication. The state of mind has great influence over the information and its reflection.

A frightened person may not communicate properly similarly an angry person may not receive the communication effectively.

1. Premature Evaluation – This means deriving conclusions before the completion of a message.
2. Lack of Attention – The preoccupied mind of the receiver and the resultant non-listening messages act as a major psychological barrier.
3. Loss by Transmission and Poor Retention – When communication passes through various levels, this results in filtering or loss of information.
4. Distrust – Distrust between the communicator and receiver also acts as a barrier to effective communication.

Personal Barriers

Personal barriers to communication are related to the personal factors of both sender and receiver.

1. Lack of Confidence of Superior in his Subordinates – If superiors have no confidence and trust in their subordinate then they pay no attention to their advice, opinion, or suggestions.
2. Lack of Incentives – If there is no incentive for communication then subordinates may not take the initiative to give suggestions.
3. Fear of Authority – Sometimes superiors conceal and hide information if they have fear of losing their authority over the subordinates.
4. Willingness to Communicate – Sometimes employees are unwilling to communicate with superiors if they feel it may negatively affect their interests.

Improving Communication Effectiveness

All organizations face barriers to effective communication. By using the following measures, they can overcome such barriers.

• Clarify the idea before communication.
• Communicate according to the needs of the receiver.
• Consult others before communicating.
• Use proper language, tone, and contents of the message.
• Proper feedback
• Communicate for the present as well as for the future
• Follow-up communication
• Be a good listener
• Completeness of Message
• Open mind

Motivation

Motivation can be defined as stimulating, inspiring, and inducing employees to perform to their best capacity.

Motivation is a psychological term that means it cannot be forced on employees. It comes automatically from inside the employees as it is a willingness to do work.

Features of Motivation

• Motivation is a psychological phenomenon
• Motivation produces goal-oriented behavior
• Motivation can be either positive or negative
• Motivation is a complex process
• Motivation is a dynamic and continuous process

Maslow’s Need Hierarchy Theory of Motivation

Abraham Maslow is a well-known psychologist. His theory was based on human needs. He felt that within every human being, there exists a hierarchy of five needs.

Assumptions of Maslow’s Need Hierarchy Theory of Motivation

1. People’s behavior is based on their needs. Satisfaction with such needs influences their behavior.
2. People’s needs are in hierarchical order, starting from basic needs to other higher-level needs.
3. A satisfied need can no longer motivate a person, only the next higher-level need can motivate him.
4. A person moves to the next higher level of the hierarchy only when the lower one is satisfied.

Basic Psychological Needs

These needs include basic requirements for the survival and maintenance of human life. The common physiological needs are food, shelter, and clothing.

Safety and Security Needs

Physiological needs get fulfilled then people start thinking about their future as they want to secure their future by making sure that in the future also continue to satisfy their physiological needs.

Affiliation/Belonging Needs

It means the need for love, affection, companionship, friendship, etc. Once the people satisfy their physiological and safety needs then their social needs become more active.

To fulfill social needs the manager prefers teamwork, and arranging formal and informal get-togethers so that employees can develop social relationships.

Esteem Needs

These needs are related to respect and recognition. When the above three needs are satisfied then people start demanding respect for themselves in a group.

This need is more common in higher-level employees. Esteem needs can be satisfied through non-monetary incentives.

Self-actualization Needs

This need refers to realizing or reaching the aim of your life. Once the employee becomes what he wants to become it means satisfaction with his actualization needs.

These needs include growth, self-fulfillment, and achievement of a goal.

Financial Incentives

Financial incentives refer to incentives that are in direct monetary form or measurable in monetary terms and services to satisfy the basic physiological and safety/security needs of the employees.

Non-Financial Incentives

Money is not the only motivator, the employees who have more esteem and self-actualization need to be active in them and get satisfied with the non-monetary incentives only.

Leadership

Leadership is the art or process of influencing the behavior of people so that they will strive willingly and enthusiastically toward the achievement of group goals.

Features of Leadership

1. Leadership indicates the ability of an individual to influence others.
2. Leadership tries to bring change in the behavior of others.
3. Leadership is exercised to achieve the common goals of the organization.
4. Leadership is a continuous process.
5. Leadership indicates interpersonal relations between leaders and followers.

Leadership Styles

Leadership styles refer to a leader’s behavior. This is the result of the leader’s philosophy, personality, experience, and value system.

The most popular classification of leadership styles is based on the ‘use of authority’ which is as follows:

Autocratic or Authoritarian Leadership Style

An autocratic leader exercises complete control over his subordinates. This type of leader is dogmatic i.e., does not change or wish to be contradicted.

Under this style, communication is only one-way with the subordinate only acting according to the command given by the manager.

His/Her following is based on the assumption that reward or punishment can be given depending upon the result.

The leader gives orders and expects his subordinates to follow them unquestioningly.

Democratic Leadership

Under this style, the leader makes decisions in consultation and participation with employees. He/She delegates and decentralizes the authority.

Leaders follow the opinion of the majority. He/She provides freedom of thinking and expression. The leader listens to the suggestions, grievances, and opinions of the subordinates.

Principles of Management Class 12 Short Notes

Free-rein or Laissez Faire Leadership

These styles involve complete delegation of authority so that subordinates themselves make decisions, set their own goals, and work out their problems.

In this style, the leader avoids power. He/She serves only as a contact to bring information and resources needed by the subordinates. A manager is there only to support them.