(Notes) Subject Notes - Business Studies (Directing - V. Imp. Chapter)

(Subject Notes) Business Studies


Directing - V. Imp. Chapter


2 and 3 marks which should not exceed (30-40 words)


Define “Direction” as a function of management? – 2 marks (Important)

  • Directing consists of supervision, motivation, leadership & communication (SMCL)

  • It involves issuing orders and instructions by managers to subordinates

  • Guiding and inspiring them

  • Supervising their affairs

  • Leading and motivating them to efficiently achieve the desired goals of the organisation.

Write two elements of directing? – 2 marks

Answer: give definitions of any two elements viz. supervision, motivation and leadership and communication

Enumerate any two FEATURES of directing?


Enumerate any 2 points of IMPORTANCE OF DIRECTING as a function of management.

Direction helps to facilitate changes and motivate subordinates (any two points) - FM

Facilitates changes:

Directing helps to make adjustments in the organisation and cope with the changing conditions through communication and leadership.

Motivates subordinates

Directing helps to motivate subordinates to work efficiently and contribute their maximum efforts towards achieving the goals of the organisation.

Initiates action:

  • All the activities of the organisation are initiated through direction.

  • The aim of direction is to activate employees to work towards achieving the goals

  • Without direction all other managerial functions like (PCOS) planning, coordination, organising and staffing will be ineffective as plans will not be implemented in the desired manner.


Define “Supervision” 2 marks

  • “Supervision” means overseeing the employees at work.

  • It means monitoring, instructing, guiding and observing (MIGO) the subordinates in their task to ensure that both plans and procedures are implemented.

  • “Supervision” normally refers to individuals who supervise the operations. He may be a Foreman, Overseer, Superintendent, Section Officer or Section In-charge. Who is a supervisor?


Explain any 4 points how supervision is an important element of directing – 6 marks


Explain how supervision “facilitates control” “improves communication” and helps in optimum utilisation of resources” – sample papers – 3 marks (Important)

The following points highlight the importance of supervision as an element of directing:

Facilitates control:

Supervision/supervisor facilitates control by

  • monitoring the work in progress against plan schedule,

  • checking the methods being used

  • evaluating actual performance at regular intervals; and

  • taking action, if necessary

Optimum utilisation of resources:

If the work is supervised while the work is in progress –

  • It leads to minimum wastage of time and resources.

  • It ensures time and plan schedules are adhered to; and

  • If there are any deviations, immediate remedial measures can be taken.

This results in efficient utilisation of resources.

Improves communication:

  • Issuing orders and instructions leads to clear communication to subordinates regarding what is to be done.

  • During monitoring, supervisors take feedback on progress of work and conditions in which work is being carried out. This improves communication and leads to better understanding of the needs, aspirations and problems of the individuals at different levels of the organisation.

A supervisor is not at all required in an organisation? Do you agree? Give reasons to support your answer (Answer – importance of supervisor)


The post of supervisor should be abolished in the hierarchy of managers. React – 3 marks

(Hint: Give importance of supervision)


Enumerate any 2-3 FUNCTIONS OF SUPERVISOR (3 points) PIG - V. Imp.

Plans the work:

The supervisor analyses the work of his department and then assign the work to different workers according to their abilities. He also makes arrangements of the tools, equipment, raw material to ensure there is a steady flow of work.

Issues orders & Controls Output

  • The supervisor issues orders and instructions to the workers by telling them what and how to do the work.

  • He controls their output and compares their performance with the prescribed standard

Grievance handling and liaison between management & workers:

The supervisor maintains a close contact with the workers and handles their grievances. He reports the worker’s problems to top management. He also explains the management policies and passes on management instructions to the workers.


Define Leadership? – 2 marks

  • Leadership means influencing the behaviour of the people at work towards realising the specified goals.

  • It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.

Ramesh, a supervisor in a factory always expects that his subordinates should obey him. He is not prepared to listen to any suggestion made by workers. Do you think this quality of Ramesh will help him to become a good leader? Why? – 2 marks

No, this quality of Ramesh will not help him to become a good leader, as it is the duty of the supervisor to listen to any suggestions/grievances of workers and try to understand their problems. He should evaluate the suggestions and implement them to the extent possible by bringing it to the notice of top management.

“All managers are leaders but all leaders are not manager”. Do you agree with this statement? Give any 3 reasons in support of your answer.


Sometimes Managership and Leadership are regarded as synonymous. Is this true?

No, it is not true.

  • A manager may NOT be a leader because:

    • He may NOT be able to win the trust and confidence of his subordinates

    • They may NOT look up to him for guidance, assistance and support (gas)

  • If a manager possesses leadership qualities, he is able to:

    • Influence the behaviour of his subordinates in such a way that they will be willing to cooperate towards achieving the goals of the organisation.

    • He will be able to inspire and motivate them to work with zeal and enthusiasm

  • In this context, it is also possible that a leader may not be a manager. He may not hold a managerial position but still employees look towards him for guidance, assistance and support (gas).

Explain the IMPORTANCE of leadership as a directing function of management? – 3 marks Practice Paper-4 (V. Important) - 3marks


“Leadership is the source of motivation.” Do you agree? Give three reasons in support of your answer. – 3 marks (give 3 reasons)


Leadership is required only for less efficient subordinates. Do you agree? Give 3 reasons in support of your answer? (Answer: No, I do not agree – give importance of leadership

(In short leadership -Guides, inspires, secures cooperation and creates confidence in employees)

  • Guides and inspires employees: Leadership helps in guiding and inspiring employees to perform well and directs the potential abilities of the employees towards achieving the desired goals.

  • Secures cooperation: Leadership secures cooperation of employees by persuading them to cooperate and work enthusiastically, confidently and diligently towards achieving the goals of the organisation.

  • Creates confidence:By his exemplary conduct, a leader creates confidence, provides psychological support and infuses spirit of enthusiasm in the employees.

“Effectiveness of leadership depends on the qualities of the leader”. Explain any four such qualities of a leader.


“Efficiency and productivity depend upon the QUALITY OF LEADERSHIP.” Do you agree with this statement? Give any 3 reasons in support of your answer. (Yes)


What are the QUALITIES required by a good leader (any 3 skills)

Judgement skills:

• A good leader should be able to examine problems in right perspective.
• His judgement and decision making abilities should be superior to others.
• He should be able to form opinions and judge based on facts and not be prejudiced

Communication skills:

A good leader should be able to communicate the goals and procedures of the organisation clearly, precisely and effectively to the subordinates. Only then will it be possible for him to convince, persuade and stimulate subordinates to action.

Listening skills:

People tend to avoid a leader who does not listen. Hence a good leader in one who can listen to other peoples problems. He should be able to create a culture whereby people can be frank with him and give him information and also give him feedback about himself, which can help him to improve himself.

Inspiring skills:

A good leader should be able to inspire people to deal with the “why” question. He should not just command and control but be able to lead the people and get them involved to work together as a team.


Define “motivation” as an element of directing? – 2 marks sample paper V. Imp

  • Motivation is a mental state.

  • Motivation in management means stimulating people to action in order to achieve the desired goals.

  • It arouses the desires in the people to initiate and direct their behaviour in purposeful manner.

How does motivation improve the efficiency of workers in an organisation? Give any 3 points.

  • Motivation infuses willingness in employees to achieve a high level of performance.

  • A motivated employee feels pleasure in performing their duties. This helps to improve productivity, reduce cost of operations and secure overall efficiency.

  • Motivation is essentially goal directed. Therefore, more the subordinates are motivated higher are the chances of achieving the goals of the organisation.

Effectiveness of motivation contributes to the success of an organisation? How? Explain giving any four points.


Why is it important to motivate employees in an organisation? Give any 3 reasons

Motivation is important in the organisation due to the following reasons:

Motivation improves workers’ efficiency

  • Motivation infuses willingness in employees to achieve a high level of performance.

  • A motivated employee feels pleasure in performing their duties. This helps to improve productivity, reduce cost of operations and secure overall efficiency.

  • Motivation is essentially goal directed. Therefore, more the subordinates are motivated higher are the chances of achieving the goals of the organisation.

Reduction in resistance to change

Employees normally resist changes in the organisation. However if employees are motivated they are likely to support the change even if it means more efforts on their part. This is because they identify their own progress with the prosperity of the organisation.

Reduction in employee turnover:

Motivation secures loyalty of the employees and creates confidence in them. As a result employee turnover is reduced. This results in maintaining stability in work force.

Motivation facilitates achievement of organisation goals

By motivating employees through suitable rewards in the form of money, promotion, recognition of efficient work, management can secure the cooperation of subordinates to contribute their best efforts towards fulfilling their assigned tasks and thus achieve the goals of the organisation.

Explain any 4 NEEDS that motivate an employee to work?


State any three types of needs that govern human motivation? – 3 marks


Briefly explain Abraham Maslow’s HIERARCHY OF NEEDS? – PESS

Physiological needs:

It includes basic needs required for survival and maintenance of human life such as food, clothing, shelter, water and other necessities of life.

ESTEEM NEEDS: (Define – v. imp)

It includes a desire for self-image and self respect on one hand and respect, recognition from others. These needs are satisfied by recognising good performance of employees, providing challenging job assignments, good job titles, nice office, extra authority, etc.

Security needs:

People want physical, economical as well as social security. They want security for themselves, their property and a safe environment to live in.

Physical security : includes protection against fire, accidents, disease, crime etc.

Economical security : includes having a permanent job and money to fulfil basic needs on a permanent basis.

Social security : includes need for security in old age, illness, disability, etc.

Social needs:

It includes a desire to give and receive love and affection and the need to be accepted by the peers. These needs are satisfied by friendship, family and community relations outside the workplace.


Define the term “Communication”? – 2 marks

  • Communication means exchange of messages between two or more persons.

  • These messages could mean idea, opinions, facts, information, instructions and anything that conveys a meaning.

  • These messages may be conveyed in words, pictures, and actions or gestures

  • Effective communication takes place only when the receiver is able to interpret the message as desired by the sender and responds to it.

What do you mean by “noise”. How does it interfere in the communication process – 3 marks

When there is a disrupted interference anywhere in the communication process, it is termed as “noise”.

  • Examples:

    • Someone coughing,

    • two people talking close at hand,

    • a truck driving,

    • a letter being lost in the mail,

    • a telephone line going dead or one of the persons being called away before the communication process is completed.

  • Noise may also arise because a manager is not able to express himself well or if the listener is not being attentive or memos are poorly written and therefore hard to read.

  • However if communication is two-way, the communicator can find out if the message was received and if has produced the intended response.

Enumerate any 3 advantages of “informal communication” from the point of view of members of an organization and from the point of view of management – 3 marks

Advantages of informal communication from view of members are:

  • Employees can develop friendly relations and derive social satisfaction through informal exchange of ideas and information

  • Employees can give a free and frank expression of their views, which cannot be done through official channels.

  • It helps employees who are not linked through the official chain of command to communicate.

Advantages of informal communication from view of management are:

  • It helps to communicate those messages, which is not possible through official channel.

  • It can be used for speedy communication in emergency

  • It reduces tensions in employer-employee relations & provides emotional relief to workers.

  • Employee’s reactions and attitudes can be easily ascertained.

Difference between:





It follows established line of command

It arises as a result of personal relations


It is rigid and cannot be modified

It is flexible as it arises as a result of social interaction


It is mostly in written form

It is mostly in oral form


It is easy to fix responsibility in formal communication

As the source cannot be traced, it is difficult to fix responsibility


It serves organizational needs

It serves organizational as well as individual needs


Records are kept for future reference

No records are kept


It is usually slow

It is usually fast

Explain any four factors that are likely to disrupt effective communication? – 3 marks


Enumerate 4 barriers of communication? – 2 or 3 marks (PCS) - Important

The following are the factors that are likely to disrupt effective communication:


Sometimes the person who receives the message may be biased or predisposed i.e. he may ignore the suggestions for change from the subordinate because he thinks the subordinate is always complaining about something.

Poor listening skills:

Some people are poor listeners. When someone is talking to them they are distracted. This problem occurs both with superiors and subordinates.

Complex Organisation structure:

An organisation having a long chain of command also acts as a barrier to effective communication

Selective reception:

Selective reception takes place when people tend to hear only what they want to hear and block out that part of the information that disagrees with what they believe. As a result communication gets distorted.

Status difference:

Effectiveness of communication can be adversely affected when status of communicator is not equal.


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