Important Questions for Class 12 Directing Business Studies

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Important Questions for Class 12 Directing Business Studies. myCBSEguide has just released Chapter Wise Question Answers for class 12 Business Studies. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. These test papers with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Business Studies Test Papers from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in CBSE Class 12 Business Studies syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 12.

CBSE Class 12 Business Studies Ch – 7 Test Paper

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Practice Test for Class 12 Chapter 7 Business Studies

Chapter – 7 Directing

  1. The highest level need in the need Hierarchy of Abraham Maslow: (1)

    1. Belongingness need
    2. Safety need
    3. Prestige need
    4. Self actualisation need
  2. Which of the following is not a financial incentive ______________ (1)

    1. Bonus
    2. Profit Sharing
    3. Pension and Gratuity
    4. Recognition
  3. Which one of the following is not an element of direction? (1)

    1. Supervision
    2. Motivation
    3. Delegation
    4. Communication
  4. Under which style of leadership there is no delegation of authority? (1)

    1. Laissez Faire
    2. Autocratic
    3. Democratic
    4. None of these
  5. What is meant by decoding as an element of communication? (1)

  6. 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? (1)

  7. Give any one measure to improve communication. (1)

  8. Define directing as a function of management. (1)

  9. What is meant by financial incentives? State any two financial incentives. (3)

  10. Ayasha Ltd. assured their employees that inspite of recession, no worker will be retrenched from the job.
    1. Name and explain the type of incentive offered to the employees.
    2. Explain one more incentive of the same category. (3)
  11. Define the terms ‘motive’, ‘motivation’ and ‘motivator’. (4)
  12. To satisfy the social and physiological needs which type of incentives are needed? Explain any four types of such incentives. (4)

  13. Explain the principles of Directing. (5)

  14. Describe the concept of Authoritative leadership and state its advantages? (5)

  15. What is meant by communication? Explain how communication is an important function of management. (6)

Chapter – 7 Directing


    1. Self actualisation need
      It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfillment and achi­evement of goals.
    1. Recognition
      Employee Recognition programmes are non financial incentives. Most people have a need for evaluation of their work and due recognition. They feel that what they do should be recognised by others concerned. Recognition means acknowledgement with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at higher level.
    1. Delegation
      Delegation refers to the downward transfer of authority from a superior to a subordinate.
    1. Autocratic
      An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager is following this style, then communication is only one-way with the subordinate only acting according to the command given by the manager.
  1. Decoding is the process of converting code into plain text or any format that is useful for subsequent processes. Decoding is the reverse of encoding. It converts encoded data communication transmissions and files to their original states.
  2. The element of directing indicated here is ‘Motivation’.
  3. #39;Communicate according to the needs of receiver’ is one measure to improve communication.
  4. Directing as a function of management is the process of instructing, inspiring and guiding people in the organisation to achieve its objectives.
  5. Financial incentives refer to incentives which are in direct monetary form and serves to motivate people for better performance.
    Two financial incentives are:

    1. Pay and allowances: Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowance and other allowances.
    2. Productivity linked wage incentives: Many wage incentives are linked with the increase in productivity at individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.
    1. The name of the incentive offered is Job security. Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspect and work with greater zeal.
    2. Employee participation: It means involving employees in decision making if the issues related to them. In many companies, these programmes are in pratice in the form of joint management committees, work committees, canteen committees etc.
    1. Motive: A motive is an inner state that energizes, activates or moves and directs behavior towards goals. Motives arise out of the needs of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such restlessness.
    2. Motivation: Motivation is the process of stimulating people to action to accomplish desired goals.Motivation depends upon satisfying needs of people.
    3. Motivator: Motivator is the technique used to motivate people in an organisation.Managers use diverse motivators like pay, bonus, promotion, recognition, praise, responsibility etc., in the organisation to influence people to contribute their best.
  6. Psychological, cognitive and social factors can play a role in what incentives one finds motivating and to what degree. Incentives can be used to get people to engage in certain behaviors, but they can also be used to get people to stop performing certain actions. Financial incentives are needed to satisfy the social and physiological needs. Four types of such incentives are
    1. Pay and allowances: Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowance and other allowances like House Rent Allowance, Entertainment allowance etc. Under salary system, employees get regular annual increments and enhancement of allowances from time to time.
    2. Profit sharing: Sometimes a company or a business firm may share some part of its profit with the employees. The main purpose of sharing profits with the employees is to improve their performance so that they can contribute more in increasing the productivity and profits of the firm.
    3. Productivity linked wage incentives: Employees can be motivated by giving them productivity linked wage incentives. There are certain wage rate plans which offer higher wage for more efficient worker for example; different piece wage system allows high wages to efficient workers as compared to inefficient workers.
    4. Co-partnership/Stock option: Sometimes companies offer their shares to its employees at a set price which is lower than the market price. The main purpose of allotting shares to the employees is to create a feeling of ownership among them so that they can contribute more for the growth of the organization.
  7. Principles of directing are:
    1. Maximum individual contribution: Directing is helpful in motivating and inspiring every individual in the organization to contribute to his maximum potential for achievement of organizational objectives.
    2. Harmony of objectives: Sometimes individual objectives of employees and the organizational objectives may conflict to each other. Through effective directing these conflicts may be settled.
    3. Unity of Command: An employee should receive orders and instructions only from one superior. If not so, there would be indiscipline and confusion among the subordinates and disorder will ensue. Effective directing ensures that there is unity of command in an organization.
    4. Appropriateness of direction technique: Direction techniques that are used by the managers should be appropriate i.e., it should be suitable to superiors, subordinates and the situation to ensure efficiency of direction. Motivation and proper leadership techniques should be used while directing the people.
    5. Managerial communication: Effective managerial communication at all levels in the organization makes direction effective. Directing ensures that clear instructions are given to the subordinates so that they can perform effectively and efficiently.
    6. Use of Informal organization: In every formal organization there are informal groups or informal organizations exist. A manager should realise and utilize such organizations for effective directing.
    7. Follow through: Manager must ensure that orders are being implemented accordingly or not. A good manager not only gives order but also follow it up by reviewing continuously whether employees are comfortable in implementing the orders or not. If necessary, suitable modifications should be made in the directions.
    8. Leadership: A manager should be a good leader because good leadership will influence the subordinates positively without causing dissatisfaction among them.
  8. Autocratic/Authoritarian leadership Under this style, leader concentrates all authority in himself, instructs subordinates as to what to do, when to do it; how to do it, etc. He also exercises close supervision and control over his subordinates. Subordinates are expected to do what they are told.
    The autocratic leader accomplishes the results through the use of authority, fear of deprivation, punishment and such other negative rewards. As it is negative in character, authoritarian approach will succeed only in the short run.
    Important Questions for Class 12 Directing Business Studies Advantages of Autocratic Leadership:

    1. It provides for quick decision-making because here only one person i.e., the leader takes decisions.
    2. Mostly subordinates like to work under centralized authority and strict supervision.
    3. As there is no consultation with subordinates, confidential matters can be kept secretly.
    4. Leadership gives strong motivation and satisfaction to the leader who dictates terms.
    5. At lower levels, only less competent subordinates are required.
    6. This style may yield positive outcome if great speed is needed.
  9. Communication is a two-way process wherein the message in the form of ideas, thoughts, feelings, opinions is transmitted between two or more persons with the intent of creating a shared understanding.Simply, an act of conveying intended information and understanding from one person to another is called as communication. The term communication is derived from the Latin word “Communis” which means to share. Effective communication is when the message conveyed by the sender is understood by the receiver in exactly the same way as it was intended.
    Importance of communication is explained as follows:

    1. Acts as a basis of coordination: Communication acts as a basis of coordination. It provides coordination among departments, activities and persons in the organisation. Such coordination is provided for explaining about organisational goals, the mode to their achievement and inter relationships between different individuals, etc.
    2. Acts as a basis of decision-making: The decisions made in an organisation depends largely on the amount and quality of information available On the basis of communication of relevant information, one can take the right decisions.
    3. Increases managerial efficiency: The employees must know clearly about their responsibilities and authority, who will report to whom, what part of the total job they are expected to perform and what are their decision-making powers.
    4. Helps in the process of motivation and morale: Motivation and morale of employees largely depend upon the effectiveness of communication. Sharing of information with employees helps management to secure their willing cooperation.
    5. Effective leadership: Communication is the basis of leadership. By developing the skills of communication, a manager can be a real leader of his subordinates. A good system of communication brings them m close contact with each other and removes misunderstandings.

Chapter Wise Important Questions for Class 12 Business Studies

Part -I and Part – II

  1. Nature and Significance of Management
  2. Principles of Management
  3. Business Environment
  4. Planning
  5. Organising
  6. Staffing
  7. Directing
  8. Controlling
  9. Financial Management
  10. Financial Markets
  11. Marketing Management
  12. Consumer Protection

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