Please refer to Directing Class 12 Business Studies Important Questions with answers below. These solved questions for Chapter 12 Directing in NCERT Book for Class 12 Business Studies have been prepared based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these solved problems properly as these will help them to get better marks in your class tests and examinations. You will also be able to understand how to write answers properly. Revise these questions and answers regularly. We have provided Notes for Class 12 Business Studies for all chapters in your textbooks.

Important Questions Class 12 Business Studies Chapter 12 Directing

All Directing Class 12 Business Studies Important Questions provided below have been prepared by expert teachers of Standard 12 Business Studies. Please learn them and let us know if you have any questions.

Very Short Answer Type Questions

Question. Briefly explain any two elements of ‘Directing’.
Answer. Two elements of directing
(i) Supervision: It refers to monitoring the progress of work of one’s subordinates and guiding them properly.
(ii) Motivation: It refers to that process which excites people to work for attainment of the desired objective.

Question. How does motivation improve the efficiency of workers in an organisation? Give any two reasons.
Answer. Motivation improves the efficiency of the workers by:
i) Bridging the gap between the ability and the willingness to work.
ii) Stimulating people to action to accomplish desired goals.

Question. What is meant by ‘Need Hierarchy’?
Answer. Hierarchy of needs refers to the systematic arrangement of human needs in the order of their importance. Abraham H. Maslow, an American psychologist, has divided the needs of every human being into five categories- Physiological, safety, Affiliation, Esteem and self-actualisation needs. The needs range from the very basic survival to development of one’s potential.

Question. Why it is said that directing takes place where ever superior subordinate relationship exists?
Answer. In every organisation, directing function is performed by every manager regardless of the level of management from top executive to supervisor. Therefore, it is said that directing takes place wherever superior subordinate relations exist.

Question. Aashita Ltd. Assured their employees that in spite of the recession, no workers will be retrenched from their jobs. Name and explain the type of incentive offered to the employees.
Answer. The type of incentive offered to the employees is job security. It is a non-financial incentive. In order to fulfil their safety needs, the employees want certain stability about future income and work. As a result they feel motivated and give better job performance.

Question. Explain in brief, ‘Directing’ as a function of management.
Answer. Directing as a function of management is concerned with instructing, guiding and inspiring people in the organisation to achieve its objective. It is that part of management process which ensures the efficiency and effectiveness of the employees.

Question. “Directing is not required at all in management of an organisation.” Do you agree? Give two reasons in support of your answer.
Answer. No, I do not agree with this statement, due to the following reasons:
a) Directing initiates action by guiding, leading, harmonising and managing the human elements in an organisation to achieve the desired goals. Without directing, all other managerial functions will become ineffective.
b) It is through directing the management helps people to see how they can satisfy their needs and utilise their capabilities to contribute towards the organisational objectives.

Question. What is meant by financial incentives? Give any two examples of it.
Answer. Financial incentives are those incentives which are evaluated in terms of money.

Question. Define non-financial incentives.
Answer. According to Dubin “Non –financial motivators are in the form of mental reward.” It means that they are not directly related with money. They are helpful to satisfy the top hierarchy needs such as self – actualisation.

Question. Explain any two features of Motivation.
Answer. (i) It is psychological phenomenon. Motivation is a state of desire which governs human behaviour.
(ii) Motivation results in goal directed behaviour. A motivated person works hard towards the achievement of desired goals.

Question. Mihir was a supervisor at ‘Perfect Fit Textile’ company. The company was producing 200 shirts every day. His job was to make sure that the work went on smoothly and there was no interruption in production. He was a good leader who would give order only after consulting his subordinates and work-out the policies with the acceptance of the group. Identify and describe the leadership style being adopted by Mihir.
Answer. As a supervisor of ‘Perfect Textile’ Mihir has adopted the democratic style of leadership.
In this type of leadership style, the members of the group take a more participative role in the decision – making process. Everyone is given the opportunity to participate, ideas are exchanged freely, and discussion is encouraged.

Question. What are incentives?
Answer. Incentives are the rewards or measures which are adopted to stimulate a worker to act in a manner desired by the management

Question. Name and explain any one feature of the process of exchange of information between two or more persons to reach common understanding.
Answer. Communication.
Feature: The first important features of communication is that there must be a minimum number of two persons because no single individual can have an exchange of ideas with himself.

Short Answer Type Questions

Question. How does motivation improve the efficiency of workers in an organisation? Give any three points
Answer. Motivation improves the efficiency of the workers by:
i) Bridging the gap between the ability and the willingness.
ii) Stimulating people to action to accomplish desired goals.
iii) Encouraging people to work better, and thereby increasing the productivity.

Question. Explain briefly any three elements of ‘directing’.
Answer. Supervision, Motivation and leadership (explain briefly).

Question. Samira is working in a Star company on a permanent basis. As per the job agreement she had to work for 8 hours a day and was free to work overtime. Samira worked overtime, due to which she felt ill and had to take leave from her work. No one showed concern and enquired about her health. She realised that she was fulfilling only some of her needs still while some other needs still remained to be fulfilled.
(a) By quoting the lines from the above para, identify the needs of Suhana which she is able to fulfil.
(b) Also explain two other needs of Suhana followed by the above needs, which still remained to be satisfied.
Answer. (i) ‘Samira is working in a company on a permanent basis.’
According to above line Samira is able to fulfil her following needs:
(a) Physiological needs
(b) Safety and Security needs
(ii) Needs of Samira which still remained to be satisfied are:
(a) Affiliation Need: It refers to the need for affection, sence to belongingness, acceptance and friendship.
(b) Esteem Need: It refers to the need for self-respect, autonomy, status, recognition and attention.

Question. “Direction is the least important function of management.” Do you agree with this statement? Give any two reasons in support of your answer.
Answer. No, I do not agree with this statement as directing is the most important function of management. It is also known as management-in-action.
Two reasons; –
i) It initiates Action
ii) It integrates Employees efforts

Question. Suhana is a successful manager at Kapur & sons Enterprises. She has a team of twelve people working under her. She encourages them to set their own objectives and take decisions. She respects their opinions and supports them, so that they can perform their duties and accomplish organizational objectives. To manager and exercise effective control she uses forces within the group. As an intelligent manager, at times, she also makes use of positive aspects of informal communication.
This way, she is able to unify diverse interests and ensure the targets are met.
(a) There are many theories and styles of influencing people’s behaviour. Identify the style used by suhana which is based on the use of authority.
(b) State two positive aspects of the communication discussed above, which Suhana is using as an intelligent manager.
Answer. (a) Democratic Style.
(b) Two positive aspects of communication which Suhana is using as and intelligent manager are-
• It carries information rapidly
• It is helpful to know the reaction of his/her subordinates.

Question. “Every action in the organisation is initiated through directing.” Explain any three points of importance of directing in the light of this statement.
Answer. any three correct points
(i) Initiates action
(ii) Provides balance in the Organisation
(iii) Integrate employees’ efforts

Question. “The performance of an organisation depends upon how a supervisor instructs and guides the subordinates at operative level.” Explain.
Answer. Supervisor is a managerial position in the organisational hierarchy just above the operative level. He guides the activities of the workers. The function and performance of the supervisor are vital to any organisation because he is directly related with workers whereas other managers have no direct touch with them. The efficiency of a supervisor is reflected in the performance of the workers.

Long answer type questions

Question. Aahana has started a designer studio in the basement of her residence after completing her masters in fashion designing. She has appointed ten employees to take care of the various aspects of the work. She interacts regularly with each employee to tell exactly what is expected of him/her and what he/she needs to do to be regarded as a good performer. At the same time, she allows a free work environment where in the employees openly chit chat with each other in order to fulfil their social and emotional needs. Sometimes, these interactions also lead to spreading rumours which are not authentic.
In the context of the above case:
(a) Name and explain the two types of communication being referred to in the above paragraph.
(b) Explain any one advantage and one disadvantage of the types of communication identified above.
Answer. (a) The two types of communication being referred to in the above paragraph are formal communication and informal communication.
(b) Any one advantage and disadvantage of formal and informal communication.

Question. Vivan has set up a small-scale manufacturing unit for making different varieties of low-cost detergents. In order to market his product, he has employed a team of five salesman. Each salesman has been assigned specific areas in the city. He holds a meeting every month for determining the objectives of achieved during the coming month. A sales target is predetermined for each month which is mutually agreed by both Vivan and his sales team. If the salesmen succeed in reaching this target a bonus is paid out to all of them along with the monthly salary.
In context of the above case:
(a) What style of leadership is adopted by Vivan? Explain by quoting lines from the para.
(b) Name the non-financial incentive being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm.
Answer. (a) The democratic style of leadership is adopted by Vivan. A democratic leader encourages his subordinates to participate in the process of decision making. Thereby, the manager is able to motivate his subordinates to perform their best, as they themselves have set the goals.
“A sales target is pre-determined for each month which is mutually agreed by both Vivan and his sales team.”
(b) Employees participation is the type of non-financial incentive that is being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm.

Question. Pranav works as a banquet manager in a hotel. He feels highly motivated at his job because the work that is assigned to him frequently involves variety of challenges. He is given more autonomy and responsibility and provided with ample opportunities for personal growth and a meaningful work experience.
In context of the above case:
(a) Define the term ‘motivation’.
(b) Name the measures used to motivate the employees to improve performance ? Write its types
(c) Identify the type of non-financial incentive being offered to Pranav.
Answer. (a) Motivation refers to the process of stimulating people to action to achieve desired goals.
(b) The measures used to motivate the employees to improve performance are known as incentives. These incentives may be broadly classified as financial and non-financial.
(c) Job enrichment is the type of non-financial incentive being offered to Pranav.

Question. Swara had been working as an assistant manager with Kabir Enterprises for the last ten years. She was very popular amongst her colleagues because of her commitment and dedication towards the work. When the manager senior to her retired, all her colleagues thought that now Swara would be promoted. But to everyone’s surprise the vacant post was filled by an outsider, Mrs. Roma. Swara felt demoralised and her performance started declining. She would abstain herself often and could not meet her targets. Mrs. Roma was a good leader, who would not only instruct her subordinates but would also guide and inspire them. She noticed Swara’s behaviour and felt that her performance could be improved. She started involving Swara in decision making-issues related to the organisation and made her a part of high-level joint-management committee. Swara was now punctual in office and her performance started improving. 
(a) Identify and explain the function of management being performed by Roma.
(b) Name and explain the element of the above function of management which helped Roma to improve Swara’s behaviour.
(c) state any three features of the element identified in (b).
Answer. (a) Directing-correct explanation
(b) Motivation- correct explanation
(c) Features of Motivation- any three features with explanation

Question. Ananya has started his own consultancy firm under the name ‘Lucky’ after working for five years in a company as a wedding planner. Considering the fact that she is into a labour-intensive business and motivation is a complex process, Ananya wants to offer such rewards and benefits that will help to fulfil the various needs of the employees and will inspire them to give their best to the organisation.
In the context of the above case:
(a) Why is motivation considered to be a complex process?
(b) Name the various types of needs that exist in a hierarchy within every human being. Also suggest any
two suitable incentives for each of these that Ananya may offer to his employees.
Answer. (a) Motivation is considered to be a complex process as the individual may differ in their expectations, Perceptions and reactions. Therefore, the same type of motivation may not have uniform effect on all the persons.
(b) The various types of needs that exist in a hierarchy within every human being are stated below:
(i) Basic Phycological Needs
(ii) Safety and security Needs
(iii) Affiliation/Belonging Needs
(iv) Esteem Needs
(v) Self Actualisation Needs Correct explanation of the above needs.