Important Questions for CBSE Class 12 Business Studies Chapter 7 - Directing

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CBSE Class 12 Business Studies Important Questions Chapter 7 – Directing

Q1) What is meant by Directing? Explain the importance of directing? (6M)
Ans: Directing is telling people what to do and seeing that they do it to the best of their ability. It includes making assignment, explaining procedures, seeing their mistakes are corrected, providing on the job instructions and issuing orders.
Importance of Directing: –
1. It initiates action. It integrates employees’ efforts
3. It is the means of motivation
4. It facilitates implementing changes.
5. It creates balance in the organization
Q2) Mention the elements of directing? (1M)
 1) supervision 2) motivation 3) leadership 4) communication
Q3) Explain how directing is a pervasive function of management (1M)
 Directing is a pervasive function as every manager from top executive to superior performs it.
Q4).‘Directing is the least important function of management.’ Do you agree with this
statement? Give any two reasons in support of your answer. (4 M)

Ans: No, I don’t agree with this statement.
Importance of direction: Direction may be regarded as the heart of the management process.
It is explained under the following parts:
a).Initiates action: All organizational activates are initiated through direction.
b).Integrates employees’ efforts: At all levels of management the subordinates under the
Managers integrate the work of subordinates.
c).Means of motivation : Directing helps in motivating employees towards organizational
Q5).“The post of supervisor should be abolished in the hierarchy of managers”. Do you agree? Give any three reasons in support of your answer. (6M)
Ans..No, I don’t agree, because a supervisor performs the following functions to achieve
organization goals.
Functions of the supervisor:
a).Planning the work. The supervisor has to determine work schedule for every job.
b).Issuing orders: Supervisor issues orders to the workers for achieving coordination in his
c).Providing guidance and leader ship: The supervisor leads the workers of his department.
d).Explains the policies and programmes of the organization to his sub ordinates and provide
e).Make necessary arrangement for supply of materials and ensure they are efficiently
f). Deviations from the target if any are to be rectified at the earliest.
g). To help the personnel departments in recruitment and selection of workers.
Q6).What is meant by ‘Esteem needs’ and ‘Self-actualization needs’ in relation to
motivation of the employees? (4M)

Ans. i. Esteem Needs: these needs are needs for self esteem and need for other esteem .For
Example: Self-respect, self-confidence etc.
ii. Self-actualization Needs: This is the needs to be what one is capable of becoming and
includes needs for optimal development.
Q7).It is through motivation that managers can inspire their subordinates to give their best to the organisation’. In the light of this statement, explain, in brief, the importance of motivation. (5/6M)
Ans. Importance of motivation:
i. Motivation sets in motion the action of people: Motivation builds the will to work among
employees and puts them into action.
ii. Motivation includes the efficiency of work performance: Performance of employees
dependence not only on individual abilities but also on his willingness.
iii. Motivation ensures achievement of organizational goals: If employees are not motivated,
no purpose can be served by planning organizing and staffing.
iv. Motivation creates friendly relationships: Motivation creates friendly and supportive
relationships between employer and employees.
V .Motivation leads to stability in the employees: Motivation helps in reducing absenteeism
and turnover.
vi. Motivation helps to change negative / indifferent attitudes of an employee
Q8).“All managers are leaders, but all leaders are not managers.” Do you agree with
this statement? Give any three reasons in support of your answer. (3/4 M)

Ans. Yes, I agree with this statement.
Difference between leadership and management :

OriginLeadership originates out of
individual influence
Management originates out
of official power and rights.
Formal RightsA leader has no formal rightsA manager has certain
formal rights
Follower &
A leader has followersA manager has

Q9) Explain the various leadership styles?( 6M)
Ans):Autocratic leadership style: This style is also known as leader centered style. The leader keeps all the authority and employees have to perform the work exactly as per his order. He does not decentralizes his authority. The responsibility of the success or the failure of the management remains with the manager. Democratic leadership: This style is also known as group centered leadership style. Managerial decisions are not taken by the manager in consultation with employees. This leadership style is based on decentralization. Managers respect the suggestions made by his sub ordinates. Laissez-faire leadership style: this style as leadership is also known as free brain leadership or individual centered style. The manger takes little interest in managerial functions and the sub ordinates are left on their own. Manager explain over all objectives; help sub- ordinates in determining their own objectives. They provide resources. They also advise the employees.
Q10) Mention the characteristics of autocratic leadership style.( 3M)
.1.Centralized authority 2.Single man decisions 3.Wrong belief regarding employees 4.Only downward communication.
Q11). Explain three advantages and three disadvantages of autocratic leadership style.
Ans . Advantages: 1.quick and clear decisions 2.Satisfactory work 3.Necessary for less educated employees Disadvantages: 1.lack of motivation 2.Agitation by employees 3.Possibilities of partiality. (6M)
Q12). Explain three advantages and three disadvantages of democratic leadership. (6m)
Ans. Advantages:1.Democratic leadership style advantages,2.Morale,3.Creation of
more efficiency and productivbity,4.Availability of sufficient time for constructive work
2) Disadvantages:1.Requirement of educated sub ordinates 2.Delay in decisions
3.Lack of responsibility and managers
Q13). Mention features of democratic leadership style? (3M)
Ans.1) co operative relations 2).Relief in employees 3).Open communication
Q14). Mention the characteristics of laissez-faire leadership style (3M)
Ans.  Full faith in sub- ordinates
1).Independent decision making system
2).Decentralization of authority
3).Self directed
Q15). Mention three advantages and three disadvantages of laissez-faire( 6M)
Ans. Advantages 1.Development of self confidence in sub ordinates, 2.High level motivation, 3.Help in development of extension and enterprise
Disadvantages: 1.Difficulty in co operation, 2.Lack of importance of managerial post, 3.Suitable only for highly educated employees
Q16). “Managerial functions cannot be carried out without an efficient system of communication.” Do you agree? Give any three reasons in support of your answer.(4M)
Ans. Yes, I agree with this statement.
Communication is important because of the following reasons.
i. Communication facilitates planning in a number of ways
ii. Communication helps management in arriving at vital decisions
iii .Communication is necessary in creating unity of action of action
Q17). Mention one barrier to effective communication. (1M)
Ans. Poor listening skills of people.
Q18). Give any one measure to improve communication. (1M)
Ans. Communicate according to the needs of receiver.
Q19). What do you mean by grapevine? Explain two types of grapevine along with

Ans. Grapevine: The network or pathway of informal communication is known as grade point communication.
Two types of grapevine communication
Gossip                            Single Strand
Q20). Explain any three measures to overcome the barriers to improve
communications effectiveness.[3]

Ans. 1.Clarify the areas before communication: Before communicating to employees a
manager should make an analysis of the subject matter.
2. Consult others before communication: A manager should encourage participation of
subordinates which will ensure their support and cooperation.
3. Communicate according to the needs of receiver: The manager should make adjustments
according to the needs of the receiver.
1).It is concerned with instructing guiding and inspiring people in the organization to achieve its objectives. Name it.( 1M)

Ans. Directing
2) Every manager from top executive to superior performs the function of
directing. Which characteristic of directing is referred here? (1M)

Ans. Directing takes place every level of management.
3) It means overseeing the subordinates at work. Which element of directing is
referred to? [1M]

Ans. Supervision.
4) Supervisor acts as a link between workers and management. How? (1M)
Ans. Supervisor conveys management ideas to the workers on one hand and workers problems to the management on the other.
5) It refers to the way in which urges, drives, desires, aspirations, strivings or needs
direct control and explain the behavior of human beings. Which element of directing is indicated here? [1M]

Ans. Motivation.
6) Motivation can be either positive or negative. Give two examples of negative
motivation. [1M]

Ans. a) Stopping increments b) Treating
7).Which need in the hierarchy theory of motivation refers to affection, acceptance and
friendship? (1M)

Ans. Belonging needs
8) It is an incentive offered over and above the wages/salary to the employees. Name the type of financial incentive referred here. (1M)
9) Name the incentive which refers to ‘give more autonomy and powers to subordinates’ and how are people affected by this incentives? (1M)
Ans. Employee Empowerment : Due to this incentive people start feeling that their jobs are
important and they contribute positively to use their skills and talent in the job performance.
10) It is defined as a process of influencing other people to work willingly for group
objectives. Mention this element of directing. (1M)

Ans. Leadership
11) It is process by which people create and share information with one another in
order to reach common understanding. Which element of directing is referred here?

Ans. Communication.
12) Which element in communication process relates to the process of converting encoded symbols of the sender? (1M)
Ans. Decoding
13) In which kind of communication network, a subordinate is allowed to communicate which his immediate superior as well as his superior’s superior? (1M)
Ans. Inverted V.
14) Amit and Mikki are working in the same organization but different departments.
One day at lunch time Mikki informed Amit that due to computerization many people
are going to be retrenched soon from the organization. (4M)

Ans. It is an example of informal communication.
Limitations of informal communication:
Messages tend to be distorted.
It often carries rumors.
It is unsystematic.
15) There are some barriers in communication which are concerned with the state
of mind of both the sender and the receiver. State any three such barriers. (3/ 4 M)

Ans. It refers to physiological barriers: i. premature evaluation ii. Loss by transmission and
poor retention. Iii .Lack of attention.