‘others are designe to help in the growth of individuals in all respects.” Identify the two concep. ‘Ans. Training: ‘Some learning opportunites are designed and delivered to improve sks and ables of employees.” Development: ‘Some othors aro designed {© help in the ‘gronth of Indlvidvals nal rospocts.” 412. What kind of tests wil primariy be used while selecting ‘these people in an organisation? () An terior decorator (i) A computer operator (i) A public dealing officer (v) A schoolteacher ‘Ans. () Interest test (i) Trade test (Ii) Personality test (iv) Intelligence test 313. A public transport corporation has hireé 2000 buses for the diferent routes for the passengers of metropolitan city. In orcer to fil vacancies, t adversed in the newspaper ard umber of applicants applied for the same. The company has tonow undertake the process of selection to identify and select ‘the best, Explain the frst six steps involved inthe process. ‘ns. (Explain the first six steps involved in the selection process of employees) 114. Name the metnods of recruitment inthe following cases: (i) A company gets applications on and off even without eclaring any vacancy. However, 2s and wen the vacancy arises, the company makes use of such applications (i Casual vacancies of unslld or semi-stlle jobs when there |S 2 ush of order or when some permanent workers are absent. (il) Recruitment by which most ofthe senior postions of the Industry as well as commerce are fled ‘ns. () Casual callers (i) Direct recruitment (i) Advertisement 415. Name te methods of traning: (1) The trainee learns under the guidance of a master worker. (i) Trainees learn on the equipment they wil be using, but {raining is conducted away from the actual work floor Ai) Trainees work in some factory or office to acquire practical knowledge and skls along with regular studies, Ans. () Apprenticeship training (i) Vestibule training (i) internship training. Unit 7 Directing MDZ Concept of Directing Directing means instructing, guiding, counseling, motivating and leading people in the organisation to achieve its objectives, Features/ Characteristics of Directing 1, Directing initiates action. While other functions prepare a setting for action, directing initiates action in the organisation. Thus, directing is an executive function. 2. Ittakes place at every level of management, ic, from top management to supervisory level. That is why it takes place wherever superior subordinate relation exists 3. It flows from top to bottom. Every manager Gives direction to his immediate subordinate and takes: instructions from his immediate boss. 4. Tt is a continuous process. It takes place throughout the life of the organisation irrespective of People occupying managerial positions. Importance of Directing 1. Directing helps to initiate action in the organization towards attainment of desired objectives. (or exemple, fa supervisor guides his subordinates Claris thelr doubts in porforming a task, it wl he the wor {o achiove work targets given to him.) 2, Directing integrates employees’ efforts in the organization in such @ way that every individual effort contributes to the organisational performance. (Thus, ‘ensures thatthe iniviuals wark for organisational goals) 3, Directing guides employees to realise their potential and capablities by motivation and effective leadership, eeu ecu ee 4, Directing facilitates introduction of needed changes in the organisation by reducing resistance to change and developing cooperation. 5. Directing brings stability and balance in the organisation since it fosters cooperation and ‘commitment among the people, Elements of Directing 4. Supervision means instructing, observing, ‘monitoring and guiding the efforts of the subordinates for the achievement of work targets in the desired manne. ‘Superson can also be understood as the function to >be performed ty supervisor, @ managerial postion in the ‘organisation hierarchy atthe operative love. immediatly ‘above the worker, The funclions and performance of the ‘Supervisor are vital © any organisation because e Is irecty rolatod with workers whoroas other mangers have no dirt touch with baton lovel workers. 2. Motivation means stimulating people to action to accomplish desired goals. “Motivation moans inducement to actor move. moans the process of making subordinates fo actin a desired manner fo achieve certain organisational goals. ‘Motivation refers tothe way in which urges, drives, desires, aspirations svings or needs divect, contol and explain the ‘behaviour of human beings. ‘Motivation i @ complex force starting with Keoping a person at ork in an organisation. Motivation is something which ‘moves the person to action and continues inthe course of {ction already inated. Exam Handbook in Business Studies XII by Subhash Dey‘Motivation is a process which begins witha physiological or psychological need or deficiency which tiggers behaviour or 2 dhive thats aimod at a goal or incontvo. ‘Motive isan inner stato that enorgises and directs behaviour towards goals. If arises ut of the needs of people. ‘Motivators sre the techniquesiincentives lsed fo motvate peopl in an organisation, eg. bonus, promotion, ee ‘Motivation process is based on human needs. An unsaisied need of ‘an individual creates. tension wich ‘Simulates his or her dives, These drives generate a search behaviour fo satity uch need. If such need ie saisfed, the individual is releved of tension For example, the need for food causes hnunger on account of which a person ‘searches forfod. After taking a meal, he feals that he has regained enorgy. * Leadership is the art or process of infuencng people so that they wil strive wilngyy and endusistoaly towards the achievement of group goals Leadership is tho actuty of Iisenciny poople © ‘tive willy for group objctvos. * Leadership is 8 set of interpersonal behaviours designed fo Intuence emoloyeesto cooperate nite achievement ofobectves. * Leadership ios tho Uso of non-cooreke fence fo droct land coordnao the aclios of the members ofan organised sroup foward the accomplishment of group abectves. Features of Leadership: (i) Itis a continuous process: (i) It indicates ability of an individual to influence others. (i) Tt tres to bring change in the behaviour of others, (iv) Itis exercised to achieve common goals of the organisation. (v) It indicates inter-personal relations. between leaders and followers, 4. Communication is the process of exchange of ideas and information among people to create common Understanding, Features of motivation: () It is an internal feeling. (The urge, drives, desires, aspirations, stewing or needs of human ‘being, which are internal, infuence human behaviour) (i) Te produces goal directed behaviour (For example, it the employee is interested in promotion, i helps fo produce @ ‘behaviour to improve performance) (ii) Tt can be positive or negative. (Positive motivation provides postive rewards like increase in pay, promotion, Focogniton ete. Negative motvaion uses negative means Ike punishment. sloping increments, threatening te. which also ‘may induce person fo act the desired way) (iv) It is a complex process because any type of motivation may not have a uniform effect on all the members. (The individuals are heterogeneous in their ‘expeclations, perceptions and reactions) 3, Leadership is the process of influencing people so that they strive willingly end enthusiastically towards the achievement of aroup goals | 7.2 | Supervision, Moti Importance of Supervision/Functions of a Supervisor 11. Supervisor maintains day-to-day contact and maintains friendly relations with workers. (A good supervisor acts as a guide, tiond and plilosopher 10 tho workers) 2, Supervisor acts as a link between management and workers. He conveys management policies and ideas to the workers and brings workers’ problems to the notice of management. (This ole played by supervisor helps to avoid misunderstandings and conficts Betwoon ‘management and workers/ employees.) 33. Supervisor maintains Group U by resolving their conflicts, 4. Supervisor ensures performance of work according to the targets set. 5, Supervisor provides on-the-job training to the ‘Workers and employees. (A skiled and knowledgeable ‘supervisor can build efficient team of workars) 6. Supervisor analyses the work performed and gives feedback to the workers. (Ho suggests ways and means of developing work skis.) /among workers ~ Communisston is transfer af information from the sender {o tho reconer wih the information boing understood by the receiver » Communication 1s the sum ofa things one person does when he wants to create understanding in {he mind of another It involves systematic and continuous rocess of toling, stoning and understanding. [Elements in communication process: (i) Sender~source of communication. {fi) Message~iformaton o be communicated. il) Encoding-convortng the mossage ino communication [symbols such as words, pictures, gostures et. [v) Mediarchannet-face to face. phone cal, internet et. Wv} Decoding-canvortin encoded symbols (v) Recolver of the coramunicaton ei) Feedback-actons of receiver indcating that he has received and understood message. (vill Nolse-obsiricton or hindrance to communication, 9 [2 poor telephone connection, an inattentive receiver, faut secoaing, et. Te eu eeu aero 7. Supervisor builds high morale amongst the worker Maslow’s Need Hierarchy Theory of Motivation vy Eneeny Masiow’s theory of motivation was based on human needs. He felt that within every human being, there txits 2 hierarchy of five needs. These are 1. Basic Physiological Needs: Hunger thirst, shelter and sleep are some examples of these needs. In the Srganisatonal context, basic salary helps to saisty these needs 2, ‘Safety/Security Needs: These needs provide Sséourty and protection from physical and emotional harm. "Examples: job secur, stablity of Income, Pension plans et, 3. Affiliation/Belonging Needs: These needs refer io affecon, sense of belongingness, cordial relations with colleagues, acceptance and fieneship. 4: Esteem Needs: These include factors suchas se respect, autonomy status, recognition and attention, job vies, ete 30 Exam Handbook in Business Studies XII — by Subhash Dey5. Self Actualization Needs: Its the highest evel of ‘eed in the hierarchy. It refers to the drive to become ‘what one is capable of becoming. These needs include growth, sel-fulfllment and achievement of goals. oe 1 _ red ; LIGEAT Assumptions: () Peopds behaviour is based on their needs, Satisfaction of such needs influences their behaviour. (i) People’s needs are in hierarchical order, starting from basic needs to higher level needs. (ii) A satisfied need no longer can motivate 2 person; only next higher level need can motivate him. (iv) A person moves to the next higher level need only when the lower need is satisfied, Importance: Masiow’s Theory focuses on the needs: as the basis for motivation. It helps managers to realise that need level of employee should be identified to provide motivation to them. Financial incentives to motivate employees Financial incentives are measurable in terms of money. To satisfy basic pliysiological needs of lower level employees, financial incentives are important. 1. Productivity linked wage incentive involves linking payment of wages of employees to the increase in their productivity at individual or group level. 2. Bonus involves offering an amount of funds over and above the wages/ salary to the employees, 3. Profit Sharing involves providing a share in the profits of the organization to employees. (This matvatos thom to improve their performance and contrbutos 1 crease in profs ofthe organisation) 4. Co-partnership/Stock option is an incentive tunder which the employees are offered company shares at a set price which is lower than market price. (he allotment of shares at lower price creates @ feeling of ‘nership to the employees and makes them 0 conte for the gronth ofthe organisation.) 5, Retirement Benefits include benefits such as provident fund, pension and gratuity that provide financial security to employees after their retirement. (his acts as an incentve when they are in service in tho ‘organisation ) 6. Perquisites include incentives such as car allowance, housing, medical aid and education to the children etc, Which ate offered over and above the salary. 7, Pay and allowances ~ salary, dearness allowance, etc. Salary is the basic financial incentive, Non-financial Incentives to Motivate Employees EEE ‘AI the needs of individuals are not salsied by money ‘alone. Psychological, social and emotional factors also lay important role. in providing motivation. Nonfinancial Incentives mainly focus on these needs. Some times, -meonetary aspect may be involved i non financial incentives 5 woll However, the emphasis isto provide psychological ‘and emotional ‘satisfaction rather than money. afven Satisfaction. For example, fan individual gets promotion Inthe organisation, t sotisfes him psychologealy moro a hho gots 3 fooling of elevation, incroase in status, incre in authorty, challenge in the job etc. Though promotion Involves payment of extra maney, non-monetary aspects verve menetary aspects 1. Job enrichment is concemed with designing Jobs that include greater variety of work content and provide the opportunity for personal growth and a meaningful work experience. 2. Employee recognition which __means Acknowledgement with a. show of appreciation. (og. rawarting an employee for giving valuable. suggostons, Congratulating and giving award for good performance, Displaying on the notice board or in the company newsletter about the achievement of employee, disibuting mementos, omplentaries. ike shits. in recognition af employes services, ete) When such appreciation is given to the work performed by employees, they feel motivated to ‘employees in decision making of issues related to them, for example, making them a part of joint management ‘committees, work committees, canteen committees, etc 4. Employee empowerment which means giving ‘more autonomy and powers to subordinates. (tmotvates them fo use their skis ad lalens in the job performance.) 5, 0b security which refers to providing stability to the ‘employees about future income and work so that they do not feel worried on these aspects and work with greater zeal. (Negative aspect of job security: When people fel that they arenctitelytolosetherjobs, they may become complacent) 6. Career advancement opportunity/Promotion ‘means providing an opportunity to employees. to improve their skils to be promoted to higher level of Jobs. Appropriate skill development programmes and sound promotion policy provide career advancement ‘opportunity to the employees, 7. Status: Status given to a manager is indicated by the authority, responstbilty, rewards, recognition, etc, given to him. Status given to a job ‘satisfies psychological, social and esteem needs of an individual 8. Organisational climate: It indicates the characteristics which influence the behaviour of individuals in the organisation such as. individual autonomy, reward orientation, consideration to employees, risk taking, etc Leadership Styles 1. Autocratic or Authoritarian leadership: AAutocratic style of leadership is one in which the leader gives orders and insists that they are obeyed. He does. ‘not give the subordinates any freedom to influence Exam Handbook in Business Studies XII — by Subhash Dey Enthis decision. He determines the policies for the group without consulting them. He does not give information about future plans but simply tells the group what immediate steps they must take. « There Is one way communication only « This leader is dogmatic .e,, does ot wish to be contradicted, « His following is based on the assumption that reward or punishment both can be given depending upon the result. » It is tke “bossing people around." Itis called Boss-Centred Leadership. Benefts of Autocratic or Authoritarian leader: (a) This leadership style is effectve in getting productivity in many situatons. (b) Quick decision-making is also facilitated by this style of leadership, 2. Democratic or Participative leaders! Democratic style of leadership is one in which U leader develops action plans and makes decisions in consultation with his subordinates. A democratic leader favours decision making by the group. This improves the attitude of the employees towards their jobs and the organization thereby increasing thelr morale. Using this style is of mutual benefit -itallows them (subordinates) to become part of the tea and helps leeders (seniors) to make better decsions. + The leader respects the ‘thers opinion, « It is called Group-Centred Leadership 3, Laissez Faire or Free ~rein leadership: ‘Laissez Faire’ style of leadership is one in which the leader gives complete freedom to the subordinates and depends largely upon the group to establish its own goals and ‘work out its own problems. « The group members ‘work on their own tasks resolving issues themselves. * Such a leader does not believe In the use of power Unless it is absolutely essential. « The leader is there only to support them and supply them the required information to complete the assigned task. » Itis called Subordinate-Centred Leadership. Formal and Informal Communication Formal Communication flows through official channels designed in the organisation chart, Formal ‘communication may take place from (0) a superior to subordinate (downward communication, eg. ordering suborcinates to complete an assigned work), (i) 2 subordinate. to superior (upward communieation, e.g. submission of progress report) or (li) among same’ level of managers or employees (horizontal communication, e.g. the production manager of a company contacts the marketing manager to discuss about schedule of product delivery, product design, quality, etc.) Formal'communications may be oral or writen but generally recorded and fed inthe office Informal Communication takes place without following the formal lines of communication, — e.g. ‘workers chit chating in a canteen about the behaviour Of the superior. » The informal communication arses out of ‘needs of employees fo exchange thelr views, which cannot bbe done through formal channels. « Informal system of ‘communication is generally referred to asthe ‘grapevine’ bbecause it spreads throughout the organisation with its branches going out in all directions in-utter disregard to the levels of authority Two positive aspects of informal communication: (i) Tt carries information rapidly and therefore may be useful to the manager at times. (i) Itis used by the manager to transmit information so as to know the reaction of hisy her subordinates, Two negative aspects of informal communieation: I) The ‘grapevine/informal communication spreads rapidly and Sometimes gets distorted. (i) It may lead to generate rumours, or may hamper work environment. Barriers to Communication A. Semantic Barriers These are related to process of encoding and decoding of message into words or impressions, use of wrong words, faulty translations, different interpretations, etc. 1. Badly expressed message: Badly expressed ‘message in which the intended meaning may not be ‘conveyed on account of inadequate vocabulary, usage (of wrong words, omission of needed words etc 2. Symbols with different meanings: A word may have several meanings. For example, ‘What is the value of this ring? I value our friendship. What isthe value of learning computer skis? Wrong perception by the receiver about the word "value" ‘may lead to communication problems. 3, Faulty translations: If the communication drafted in one language (say, English) is not properly translated in a language understandable to workers (say, Hindi), ‘communication becomes ineffective, 4. Technical jargon: Specialists use technical language, e.g, tariff, quotas, etc. Therefore, workers ‘may not understand them. 5. Unclarified assumptions create confusion and the loss of goodwill, e.g. instruction of a boss to his, subordinate “Take care of our foreigner quest” may ‘mean care of transport, accommodation and food of the guest, but the subordinate may interpret that quest should be taken to hotel with care 6. Body language and gesture decoding becomes a barrier when there is no match between What is said {and what is expressed in body movernents. B. Psychological Barriers These are related to the state of mind of both sender and receiver of communication, e.g. a worried sender or an angry receiver. 1. Lack of attention: Non-lstening of message due to the preoccupied mind. (Far example, an employee explains ‘about his probloms to tho boss who is pro-occupiod with an impodant fe before him. The boss does not listen attentively ‘2nd the amployeo is alsappointed ) 2.Distrust: The sender and the recelver_ of ‘Communication do not believe each other; they can not understand each others message. 3, Premature evaluation: Evaluating the meaning ‘of message before the sender completes; due to re-conceived notions or prejudices against the ‘communication, 4.Loss by transmission and poor retention: Successive transmissions of oral message results in loss 32 Exam Handbook in Business Studies X11 — by Subhash Deyof information, or transmission af inaccurate information. Poor retention of the information if not attentive or interested, C. Personal Barriers ‘These are related to the personal factors of both sender and receiver of communication 1. Because of fear of challenge to authority, 2 Superior may withhold or suppress communication. 2. Because of lack of confidence of superior on hhis subordinates, he may not seek their advice or opinions 3, Unwillingness to communicate by a subordinate to his superior if it may adversely affect his. interests. 4. Lack of incentives, |e. no reward or appreciation for a good suggestion;” the subordinates may not be willing to offer useful suggestions. D. Organisational Barriers Organisational barrier which arises from organisational structure, authortyrelationships,rulesandregulationsete. 1. Rigid rules and regulations may be a hurdle to ‘communication; communications through scalar chain may result in delays. 2. Complexity in organisation structure i.e. large ‘number of levels of management, so communication gets delayed and distorted as number of fitering points are more. 3. Lack of organisational facilities ike frequent ‘meetings, suggestion box, complaint box, social and eee 1. Is directing required at planning stage? Give reason to Siipoort your answer, ‘Ans. No, directing is not required at planning stage ince itis an executive function. It iiiates action in the ‘organisation, 21 Teentiy the elements of directing mentioned below: (i) MecPramed Aggarwal, a manager explains a worker about operations to be caried Gut by rim on a hi-tech machine. (i) Me Rajinder Tyaq), @ mining engineer explains about safety precaution tobe followed while working in acoel min. (ii) Me Anil Sarra, a, managing cirector declares share in the profits to the managers for thei contribution to enhance Profits ofthe company. (lv) Mu Rajiv Asopa, @ manager inspires his employees by playing a lead role in performing a work ‘Ans. ()) Supervision (il) Communication (i) Motivation (0) Leadership. 83. Mjs Beta Lid, deals in consumer goods, It employs 100 workers and 10 operative managers who give guidance and Suppor fo the workers while operating the machinery. The company has @ poy of granting leave as per the requirement of the workers. Workers are generally granted leave on festivals and specal occasions. Recently on Puja festival, t received 2 big order. Workers are keen to take Puja holidays while management is pressing haré for overtime. This matter vwas placed before the Personne! Manager who called the resting of operative manage's ard workers to Inform them about the changes inthe incentive plan which states payment OF double wages for working overtime and triple wages for working on holidays. Workers without any pressure valun- tarlly took limites holidays and were able’ to increase their eatning by Working overtime and on holidays. During Board of Directors’ meeting, Personnel Manager was asked to update the management for achieving higher output, meeting timely mens cultural gathering, transparency in operations etc. will ‘not encourage free flow of communication. 4. Organisational policy not supportive to free flow of communication; may hamper effectiveness of communications, e.g. highly centralised pattern (i.e, Concentration of decision-making authority by the top management). 5. Status conscious manager may not allow his Subordinates to express their feelings freely. Measures to improve communication effectiveness/Measures to overcome communication barriers Tarfy the ideas before communication, i.e. purpose of the message should be clear to the sender himself before conveying to the receivers. 2. Communicate according to the needs of the receiver, education and understanding levels of subordinates, ahojding technica jargon, ‘message to make it understandable to the recelver. The language should not offend the sentiments of listeners, 4. Ensureproper feedback toimprovethe communication process and make it more responsive. Communication 's complete only when the sender gets a feedback 5. Follow up communications and review the instructions dgiven to subordinates, 6. Be a ood listener. Manager should be an attentive Istener Patient and attentive listening solves half of the problems. Fenen ke supplies without any confrontation with workers. Personnel Manager replied “just used a carot with no sticks approach’ ‘By quoting the fines from above paraaraph identty any two clements of drecing (CBSE SOP 2 ‘ars. Supervision it employs 10 operating managers ‘suppor fo tho workers." ‘Motivation to pay double wages for working overtime and tiple wages for working on holidays, 4. Name the concept of management which stimulates people to take up work voluntary, ns. Motivation 5. Name the element of erecting function under which (the superiors oversee the activities of ther subordinates. (i) the superiors assure tne subordinates that their needs will be taken care of i) the superior attempts to influence the behaviour of people ‘at work towards the realisation of specined goals, (iv) the superiors share information with the subordinates in border to reach common understanding Irs. (9) Supervision (i) Motivation (v) Communteation {6.Name the element of directing which can be understood 23s the process of guiding the efforts of employees and other Fesources to accomplish te desired objectives. ’ns. Supervision 7. Name the element of directing in wbich a manager maintains {goed inter-personal relations with his subordinates and motivate them to contribute to achieve organisational objectives, ns, Leadership 8. State the element of directing which helps in implementing the principe of ‘scaler chal ‘ans, Communication 9. At which level of management directing takes place? ‘ns. Directing takes place af every level of management, ‘Le, from top management to supervisory favl. (i) Leadership Exam Handbook in Business Studies XII — by Subhash Dey 33