Chapter 7: Directing

Directing

Business Studies • Chapter 7 • Exercises

Very Short Answer Type
1. What is informal communication?
Informal communication is the exchange of information that takes place without following the formal lines of communication (scalar chain). It arises out of social interactions among employees and is often referred to as the ‘grapevine’.
2. Which style of leadership does not believe in use of power unless it is absolutely essential?
Laissez-faire (or Free-rein) Leadership Style. In this style, the leader gives complete freedom to subordinates and uses power only when absolutely essential.
3. Which element in the communication process involves converting the message into words, symbols, gestures etc.?
Encoding.
4. Workers unwilling to take new work; Supervisor finding it difficult. State the element of directing needed.
The element is Motivation.
(The supervisor needs to stimulate the workers to act to achieve the desired goals/excess orders by identifying their needs and offering suitable incentives).
Short Answer Type
1. What are semantic barriers of communication?
Semantic barriers are problems and obstructions in the process of encoding and decoding messages into words or impressions. They arise when the same words or symbols mean different things to different people.
Examples: Badly expressed messages, symbols with different meanings, faulty translations, unclarified assumptions.
2. Explain the process of motivation with the help of a diagram.
[Image of motivation process diagram]
Motivation is a process based on human needs.
  1. Unsatisfied Need: The process begins with an unsatisfied need (e.g., hunger).
  2. Tension: This need creates tension in the mind of the individual.
  3. Drive: Tension creates a drive (energy) to act.
  4. Search Behaviour: The individual starts searching for alternatives to satisfy the need.
  5. Need Satisfied: Once the need is met, tension is released.
  6. Reduction of Tension: The process completes, leading to satisfaction.
3. State the different networks of grapevine communications.
  • Single Strand Network: Each person communicates to the next in a sequence.
  • Gossip Network: One person tells everyone else on a non-selective basis.
  • Probability Network: One person communicates randomly with others.
  • Cluster Network: The individual communicates only with those people whom he trusts. (Most common).
4. Explain any three principles of Directing.
  1. Maximum Individual Contribution: Directing techniques must help every individual to contribute their maximum potential for organizational goals.
  2. Harmony of Objectives: Directing should reconcile individual goals (e.g., higher salary) with organizational goals (e.g., higher profits).
  3. Unity of Command: A subordinate should receive orders from only one superior to avoid confusion and conflict.
5. Manager is inflexible, employees under stress, fear to express opinions. What is the problem with authority usage?
The manager is following an Autocratic (Authoritative) Leadership Style excessively.
Problem: By centralizing all decision-making and refusing contradiction, he is stifling initiative and creating a fear-based environment. This leads to low morale and lack of two-way communication.
6. GyanPradan Hostel Case: Medical aid/free education to employees’ children. Identify incentive.
Context: Providing medical aid and free education to employees’ children.
Incentive Highlighted: Perquisites (Perks).

Category: Financial Incentive (These are fringe benefits over and above salary).

Two other incentives of same category (Financial):
  1. Bonus.
  2. Profit Sharing / Stock Option (ESOP).
Long Answer Type
1. Discuss Maslow’s Need Hierarchy theory of motivation.
[Image of Maslow’s hierarchy of needs pyramid]
Abraham Maslow proposed that human needs are arranged in a hierarchy, and motivation comes from satisfying these unmet needs in order:
  1. Basic Physiological Needs: Hunger, thirst, shelter. (Incentive: Basic Salary).
  2. Safety/Security Needs: Physical and economic security. (Incentive: Job security, Pension).
  3. Affiliation/Social Needs: Belongingness, friendship. (Incentive: Friendly work culture).
  4. Esteem Needs: Self-respect, status, recognition. (Incentive: Promotion, Job Title).
  5. Self-Actualisation Needs: Achieving one’s full potential. (Incentive: Challenging jobs, Growth opportunities).
2. What are the common barriers to effective communication? Suggest measures to overcome them.
Common Barriers:
  • Semantic Barriers: Badly expressed message, technical jargon.
  • Psychological Barriers: Premature evaluation, lack of attention, distrust.
  • Organisational Barriers: Rigid rules, status differences, complex structure.
  • Personal Barriers: Fear of challenge to authority, lack of confidence in subordinates.
Measures to Overcome:
  • Clarify ideas before communicating.
  • Communicate according to the needs of the receiver.
  • Be aware of language, tone, and content.
  • Ensure proper feedback.
  • Be a good listener.
3. Explain different financial and non-financial incentives used to motivate employees.
Financial Incentives (Monetary):
  • Pay and Allowances: Basic salary plus DA.
  • Productivity linked wage incentives: Higher pay for higher output.
  • Bonus: Extra payment over salary.
  • Profit Sharing/Co-partnership: Share in profits/ownership (ESOP).
Non-Financial Incentives (Psychological/Social):
  • Status: Rank and authority in the organization.
  • Organisational Climate: Autonomy and reward orientation.
  • Job Enrichment: Designing jobs with greater variety and challenge.
  • Employee Recognition Programmes: Publicly acknowledging good performance.
  • Job Security: Stability of income and employment.
4. Office Case Study: Employees talking freely resulted in inefficiency and leakage of secrets. Suggest a system.
Problem: Excessive informal communication (everyone talking to everyone) leading to inefficiency and loss of secrecy.
Suggestion: The manager should adopt/reinforce a Formal Communication System.

Steps:
  • Establish Scalar Chain: Define clear lines of authority and communication. Employees should report to their immediate superiors for work-related matters.
  • Restrict Informal Channels: While the grapevine cannot be eliminated, it should not replace formal orders for official work.
  • Confidentiality Protocols: Restrict access to sensitive information to authorized personnel only.
  • Official Meetings: Conduct structured meetings for queries rather than allowing random interruptions.
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