Directing Question Answers: NCERT Class 12 Business Studies

Informal communication refers to the communication which takes place without following the formal lines of communication in an organisation structure.

Free-rein or laissez Faire style of leadership does not believe in use of power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them.

The element in the communication process involves converting the message into words, symbols, gestures etc is called encoding.

Motivation is the element that helps the supervisor to cope up with the situation.

Motivation means incitement or inducement to act or move. It inspires the employees to work hard to achieve the desired goals of the organisation.

Semantic barriers of communication are the barriers, which are concerned with problems and obstructions in the process of encoding and decoding of messages into words or impressions are called semantic barriers. Such barriers result in faculty translations, different interpretations, etc. types of semantic barriers are:

1. Badly expressed message: Use of wrong words omission of necessary words and inadequate vocabulary result in badly expressed messages. The intended meaning is not conveyed.
2. Symbols with different meanings: The same word or symbol may carry different meanings to different people. The wrong meaning perceived by the receiver leads to communication problems.
3. Faculty translations: When the translator is not proficient in both the languages involved in translation, the meaning of the message may get distorted.

The process of Motivation are:

1. An unsatisfied need of an individual creates tension, which stimulates his drives.
2. These drives generate a search behaviour to satisfy such needs.
3. When the need is satisfied, the individual is relieved of tension.

Diagram:

Different network of grapevine communication are:

1. Single strand network: In this network, each person communicates with another in a sequence. As depicted in the diagram, A will communicate to B, B to C, C to D and finally D will talk to E in a sequential manner.

2. Gossip network: In this network, one person communicates with all at the same time. As depicted in the diagram, A could talk to B, then E and likewise with all on a non selective basis.

                       
3. Probability network: In this network, any person can communicate with anyone else randomly. As depicted in the diagram, A can randomly talk with C,B,D,E but he does not communicate with F.

                 
4. Cluster network: In this network, an individual communicates with only those people whom he trusts. In the figure, A communicates only to B,C and D, because he trusts them.

The three principle of directing are:

1. Maximum individual contribution: This principle emphasizes that directing techniques must help every individual in the organisation to contribute to his maximum potential for achievement of organisational objectives. It should bring untapped energies of employee for the efficiency of organisation.

2. Unity of command: This principle insists that a person in the organisation should receive instructions from one superior only. If instructions are received from more than one, it creates confusion, conflicts and disorder in the organisation.

3. Managerial communication: A good system of communication between the superior and his subordinates helps to improve mutual understanding. Upward communication enables a manager to understand the subordinates and gives an opportunity to the subordinates to get proper feedback.

In the above situation the problem is that the manager is using Authoritarian or Autocratic style of leadership. Under this style of leadership the leader gives orders and expects his subordinates to follow them. It follows one way communication, as the subordinate acts only according to the command given by the manager.

And to overcome this problem the leader should adopt two way communications that is Democratic or Participative leadership under this style of leadership the leader takes decisions after consultation and encourages the participation of subordinates. This improves the attitude of the employees towards their jobs and the organisation, thereby increasing their morale.

Financial incentive category is being used in the above case as Gyan Pradhan provides medical aid and free education to children of its employees and this is known as Perquisites. Perquisites means apart from basic salary, some companies offer fringe benefits to employees like rent free accommodation, education of children, medical allowance, car allowance, etc.

The other two incentives of this category are:

1.  Bonus: It is a one time reward for high performance. Bonus may be paid in cash or kind over and above the salary. For example, performance bonus, 100% attendance bonus, festive bonus etc.

2. Retirement Benefits: Several retirement benefits such as provident fund, pension, and gratuity are provided to the employees as a financial security after retirement.

It is said that certain qualities or traits possessed by individuals help them to become successful leaders. These qualities are:

1. Physical qualities: A good leader must possess a good height, weight, health and appearance. Health and endurance help a leader to work hard and inspire others also to do so.

2. Knowledge: A good leader should have required knowledge and competence, so that he can influence others.

3. Integrity: A leader should possess a high level of integrity and honesty, so that he can be a role model to others.

4. Initiative: A leader should have courage and initiative to do things on their own, rather than waiting for others to do it first.

5. Communication skills: A leader should be a good communicator. He should be able to clearly explain his views to others. He should not only be a good speaker, but a good listener, teacher and counselor.

6. Motivation skills: A leader should understand the needs of his employees and motivate them by satisfying their needs.

7. Self-confidence: A leader should have a high level of confidence. He should not lose confidence even in the most difficult times.

8. Decisiveness: A leader must be decisive in the sense that once he has taken a decision, he should be firm on it.

9. Social skills: A leader should be sociable and friendly with his colleagues and followers, so that he can understand them and their needs.

Though the above qualities are required for being a good leader but by having only these qualities don’t ensure successful leadership. And also all these qualities cannot be present in a single person. So, a conscious effort should be made by the managers to acquire them.

Maslow’s need hierarchy theory of motivation was given by Abraham Maslow. It is based on human need.

The main assumptions of Maslow’s need hierarchy theory are:

1. People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.
2. People’s needs are hierarchical in order. They start from basic physiological needs and reach high level needs.
3. A satisfied need can no longer motivate a person, only the next higher level need can motivate a person.
4. A person moves to the next higher level need, only when the lower level need is satisfied.

Maslow has explained his theory as a hierarchy of five needs that are explained below:

1. Basic physiological needs: These are the basic needs, which a person is required to satisfy in order to survive. Hunger, thirst, shelter, sleep are some of the examples of these needs. In an organisation, basic salary helps to satisfy these needs.

2. Safety/security needs: These needs are concerned with physical, economical and social security, in the form of job security, stability of income, etc.

3. Affiliation/belongingness/social needs: These needs are concerned with affection, sense of belongingness, acceptance and friendship. It is fulfilled when employees have cordial relations with colleagues.

4. Esteem needs: These needs include factors such as self-respect, status and recognition. When these needs are fulfilled through a job title, it enhances self-confidence and prestige of employees.

5. Self-actualisation needs: It is the highest level of need in the hierarchy. It arises after the satisfaction of all previously discussed needs. These needs include growth, self-fulfillment and achievement of goals.

The common barriers to effective communication are:

1. Premature evaluation: Communication is likely to fail if the receiver evaluates the meaning of the message before the sender completes the message.
2. Badly expressed message: Use of wrong words or omission of necessary words results in badly expressed messages.
3. Lack of attention: When the receiver’s mind is preoccupied, he fails to understand what is being said.
4. Organisational facilities: Such as meetings, suggestion boxes, etc. are absent in the organisation.

The remedies to overcome these barriers are:

1. Clarify the idea before communicating: The message to be conveyed should be clear in all aspects.
2. Be aware of language, tone and content: The language tone and content used must be understandable to the receiver.
3. Be a good listener: Attentive and patient listening, helps in understanding and retaining the message.
4. Organisational facilities: Such as meetings, suggestion box, complaint box, etc. should be made an integral part of the working in the organisation.

Financial incentives, which are in direct monetary from or measurable in monetary incentive. It includes basic pay, dearness allowance, house rent allowance, etc. some organisations provide pay hikes and increments for better performance.

The different financial incentive plans to motivate employees are:

1. Pay and allowance: For every employee, salary is the monetary incentive. It includes basic pay, dearness allowance, house rent allowance, etc. some organisations provide pay hikes and increments for better performance.

2. Productivity linked wage incentives: In this incentive, rewards are given to employees as a percentage of sales achieved. Its advantage is that reward is directly related to performance.

3. Bonus: It is a one time reward for high performance. Bonus may be paid in cash or kind over and above the salary. E.g. performance bonus, 100% attendance bonus, festive bonus etc.

4. Retirement benefits: Several retirement benefits such as provident fund, pension, and gratuity are provided to the employees as a financial security after retirement.

5. Perquisites: Apart from basic salary, some companies offer fringe benefits and perquisites to employees, e.g. perks like rent free accommodation, education of children, medical allowance, car allowance, etc to motivate their staff.

Non-financial incentives: All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play an important role in motivating employees. The incentives which are provided to satisfy these needs are termed as non-financial incentives. Some of the important non-financial incentives are listed below:

1. Status: In business terms, status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of a job indicate the status given to a person holding a managerial position. It satisfies the psychological and social needs of an individual.

2. Job enrichment: It is concerned with designing of jobs that include a greater variety of work content, requiring a higher level of knowledge and skill. This provides opportunity for growth and development of an employee on one hand and more autonomy and responsibility on the other, which becomes a source of motivation to the individual.

3. Job security: It ensures stability of income and work, which motivates an individual to work with great zeal. However, it has one negative aspect that is it makes individuals feel that they are not likely to lose their job and hence may become complacent and careless.

4. Employee participation: It means involving employees in decision making regarding the issue related to them. E.g. encourage participation in joint management committees, etc.

5. Employee empowerment: It means giving more autonomy and power to subordinates. It makes people feel that their jobs are important, as a result of which, they contribute positively to the use of skills and talents in the job performance.

In the above case an informal system of communication is being used in the organisation. And to overcome the problems that occur due to informal communication systems of communication the manager should adopt a formal system of communication.

Formal communication refers to the communication taking place through official channels in an organisation. Such type of communication takes place between managers and workers, or managers working at the same cadre, or employees working at the same cadre. Though such communication may be oral or written, but it is recorded and filed in the office.

There are two types of formal communication that are:

1. Vertical communication: Communication taking place between two levels in the organisation is called vertical communication.

2. Horizontal or Lateral communication: Communication that takes place between individuals working at the same level, is called horizontal communication. E.g. a production manager may contact the marketing manager to discuss the production schedule.