DIRECTING

CHAPTER – 9

DIRECTING
Directing performance is according to standards. The function of
Directing function of management is concerned with directing goes on throughout the lifetime of the
instructing, guiding, inspiring and motivating the employees organisation.
in the organisation so that their efforts result in achievement (iii) Directing takes place at every level: Directing is
of organisational goal. pervasive function as it is performed by all members at
According to Ernest Dale, “Directing is telling people what to all levels of the organisation. However, the time spent
do and seeing that they do it to the best of their ability.” on directing is comparatively more at supervisory level
Characteristics of Directing of management. Directing takes place where superior-
(i) Directing initiates action: Directing is considered to subordinate relation exist.
be most important function of management. A manager (iv) Directing flows from top to bottom: Directing starts
has to perform this function along with planning, from the top level and flows to the bottom level through
organising, staffing and controlling while performing the organisational hierarchy. A manager gets
his duties in the organisation. While other functions instructions from his boss and give instructions to his
prepare a base or setting for action, directing initiate or subordinates.
start action in the organisation. (v) Directing is performance oriented: Directing is
(ii) Directing is a continuous process: Directing is not a performance function. The main aim of directing is
one time activity, it is on ongoing process. A manager bring efficiency in performance. Directing converts
cannot just rest after issuing orders and instructions. plans into performance. Directing converts plans into
He must guide, supervise and motivate his performance. Performance is essence of directing.
subordinates on continuous basis. He must Directing functions directs the performance of
continuously take steps to ensure that the orders and individual towards achievement of organisational goal.
instructions are carried out properly and the
(vi) Directing is human element: Directing involves study and moulding of human behaviour. It improves interpersonal and
intergroup relationship. It motivates employees to work with their best ability.
Importance of Directing guidance the employees readily and happily accept
(i) To initiate action: The employees in the organisation changes.
start working only when they get instructions and Elements of Directing There are four main elements of
directions from superiors. In the directing function, the directing
superior directs the action of employees towards the (i) Supervision
predetermined goals of the organisation. If the (ii) Motivation
directing function is executed successfully then it (iii) Leadership
results in unity of direction and achievement of goals. (iv) Communication
(ii) To integrate employees efforts: In the organisation
number of employees are working at different levels
and in different job positions. The employees may differ
in their levels of authority and the type of job assigned. Supervision
But all are interrelated to each other as they are the part The supervision means instructing, guiding, monitoring
of one organisation. When the employees are working and observing the employees while they are performing
at different levels then their efforts are integrated and jobs in the organisation. The word supervision is a
they co-ordinate only with the help of directing function combination of two words i.e., supervision where super
as while issuing instructions the continuity of the work means over and above means seeing. So, supervision
can be maintained. means seeing the activities of employees from over and
above and giving instructions to ensure optimum
(iii) Means of motivation: Directing function does not
utilisation of resources and achievement of organisation’s
mean giving orders only but through directions and
targets.
instructions the superiors try to motivate the
employees to perform to their best ability. Motivation is Importance of Supervision
a very important element of directing. Directing (i) Supervisor maintains friendly relationships with
function develops the feeling of belongingness and workers.
encourages employees to perform to their best ability. (ii) Connects management plans and ideas to workers
(iv) Bring stability and balance in the organisation: The and represents workers grievances and problems to
directing function tries to create balance in the management.
organisation. Generally, when the employees are (iii) Helps to maintain unity amongst workers.
working at different levels they develop different (iv) By giving instructions and motivating workers helps
attitudes and the balance between their attitudes is in achievement of targets.
made by directing function. For example, the salesman (v) Provides training to the workers and builds them as
may insist on reduction of price to get more orders an efficient and skilled team of workers.
whereas the high officials are against the reduction as it (vi)Helps in bringing out untapped energies of
will bring down or reduce the total revenue. The employees and builds up high morale.
directing function tries to balance both the attitudes by (vii) Suggests ways and means to develop new skills.
instructing and guiding the salesperson to find out
other means and ways of increasing sale. Sometimes Motivation
there can be difference of attitude between the Motivation can be defined as stimulating, inspiring and
employee and the employer. Here also directing inducing the employees to perform to their best capacity.
function creates balance by instructing the employees Motivation is a psychological term which means it can not be
that their interests and organisation's interests are in forced on employees.
same direction. For example, employees want more Few Inter-related Terms
earnings, organisation wants more production. The Motive: A motive is an inner state or desire which energises
employees can earn more by producing more which an individual to move or to behave towards achievement of
will achieve the organisational goal also. goal. Motive arises out of needs of an individual. When a
(v) To facilitate change: Generally the employees hesitate motive emerges in an individual. It causes restlessness as he
in accepting the changes but through directing function wants to fulfill his motive. For example motive to earn
the changes can be implemented more easily as while induces an individual to search for job or work.
giving directions the superiors guide the subordinates Motivation: It is a process of inducing people to perform to
that the changes are better for them also. For example, their best ability to accomplish the goal.
when the company is planning to computerise its Motivators: Motivators are the incentives or techniques
working generally the employees hesitate to accept it as used to motivate the people in an organisation. Common
they are not aware of the technology. But when in the motivators used by the managers are increment, bonus,
directing function the employees are guided that promotion, recognition, respect, etc.
through change they will also be updated as they will
have chance of learning new technology which will Features/Characteristics/Nature of Motivation
increase their value in the market. So through proper (i) Motivation is a psychological phenomenon:
Motivation is an internal feeling which means it cannot
 be forced on employees. The internal feelings such as increment, bonus, respect, recognition, etc. If employee
need, desire, aspirations etc. influence human does not improve his performance with positive
behaviour to behave in a particular manner. For motivators then manager uses negative motivators
example, desire to have a new house, respect and such as warning, issue of memo, demotion, stopping
recognition, etc. increments, etc. Sometimes fear of negative motivators
(ii) Motivation produces goal directed behaviour: also induces person to behave in a desired manner.
Motivation induces people to behave in such a manner (iv) Motivation is a complex process: Motivation is a
so that they can achieve their goal. Motivated person complex and difficult task. In order to motivate people
need no supervision or direction. He will always work a manager must understand various types of human
in desired manner. For example if a person has a motive needs. Human needs are mental feelings which can be
to get salary appraisal so he will work efficiently to get measured accurately. If manager measures them
salary appraisal. accurately then also every person uses different
(iii) Motivators can be positive as well as negative: To approaches to satisfy his need. Some get satisfied with
motivate employees managers use various motivators. monetary incentives, some with non-monetary, some
Some motivators are positive and some are negative with positive and some with negative motivators. So it
few examples of positive motivators are: promotion, is not possible to make generalisation in motivation.

(v) Motivation is Dynamic and Continuous Process: Human beings are everchanging. Human needs are unlimited and go
on change continuously. Satisfaction of one need gives rise to another needs so managers have to continuously perform
the function of management.

Importance of Motivation (i) Unsatisfied need

(i) Improves Performance: Motivation helps to improve (ii) Tension
the performance level of employees. It bridges the gap (iii) Drive
between the ability to work and willingness to work (iv) Search behaviour
resulting in higher level of performance. (v) Satisfaction need
(ii) Builds Positive Attitude: Motivation helps to change (vi) Reduction of tension
negative attitude of employees to positive attitude, so Maslow’s Need Hierarchy Theory of Motivation
as to achieve organisational goals by using various This theory was developed by Abraham H. Maslow, an
incentives. eminent and a famous U.S psychological in 1943. This theory
(iii) Reduces Employee Turnover: Motivation helps to is based on human needs. According to Maslow, a man has
reduce employee turnover and thereby saves the cost innumerable and countless needs. If one need is satisfied,
of new recruitment and training. Thus, it helps to retain another level emerges in that place. Maslow proposed that
talented people in the organisation. human needs can be classified into five categories and can be
(iv) Introduces Changes: Motivation helps the managers arranged in order of their importance or priority.
to introduce changes and motivated employees show
(i) Physiological needs: In this category, those needs are
less resistance in accepting the changes, as they know it
included which are very essential for survival and
is necessary to adapt to changes in order to survive in
maintenance of human life. Physiological needs are
the competitive world.
(v) Reduces Absenteeism: Motivation helps to reduce most basic needs and must be satisfied before all other
absenteeism by providing proper working conditions, needs. The organization satisfies these needs by giving
adequate rewards and good relations with supervisor. basic salary to the employees.
(ii) Safety and security needs: Once physiological needs
Process of Motivation are satisfied, safety or security needs arise. Safety needs
include physical and economic needs. Physical needs
include protection against accidents, illness. Economic
security means having adequate funds to meet the
future physiological needs and to come out of physical
security fear or threat. The organisation satisfies these
needs by providing job security, stability of income,
pension plans etc.
(iii) Social or belonging needs: These needs include
affection, acceptance, friendship, sense of
belongingness, etc. The organization satisfies these
 needs through informal organization and cordial needs include the need for self-respect, recognition,
relations among employees. autonomy, status, etc. The organization satisfies these
(iv) Esteem needs: Esteem needs refer to those needs needs by offering challenging jobs, recognition,
which leads to self confidence and prestige. These providing job titles etc.

(v) Self-actualization needs: These needs are the highest needs in the hierarchy of needs. These needs include growth and
self- fulfillment. Self- Actualisation needs refers to the desire to become what one is capable of becoming. The organisation
satisfies these needs by allowing the employees to take initiative to become what they are capable of becoming.

Assumptions of Maslow’s Need Hierarchy Theory requires payment of minimum 8.33% of annual pay as
(a) Behaviour of people depends upon their need. bonus and it does not any price limit. Thus, the rate of
(b) People’s need are in hierarchical order bonus will be higher if the annual profits are higher.
(c) A satisfied can no longer motivate a person. Bonus can be paid in cash or kind. Some organisations
(d) A person moves to the next higher level need only when have the scheme of offering bonus during the festival
the lower need is satisfied. time like Diwali, New Year etc.
Financial and Non-Financial Incentives (e) Productivity linked with wage incentives: Some
Incentive means all measures which are used to motivate firms have adopted wage incentive plans where the
people to improve performance. These incentives may be amount of incentive is linked of productivity of the
broadly classified worker or the group which he belongs.
(i) Financial Incentives The reward or incentive which can (f) Retirement benefits: Most of the companies offer
be calculated in terms of money is known as monetary retirement benefits such as provident fund, pension,
incentive. gratuity etc. to their employees. These create a sense of
The common monetary incentives are security among employees. Such incentives help in
(a) Pay and allowances: Salary is the basic financial satisfying safety or security needs to employees.
incentive for every employee. It includes basic pay, (g) Perks/Fringe benefits/perquisites: In many
dearness allowance, house rent allowance etc. In some organisation, perquisites benefits such as car
companies, pay hike and allowances are directly linked allowance, education to children etc. are offered to
with the performance of employees. To get increment employees over and above salary. These benefits
and allowances perform to their best ability. motivates the employees for better performance.
(b) Profit sharing: Under this scheme, employees are (ii) Non-Financial Incentives: The incentives which can
given a share in the profits of the enterprise if the not be calculated in terms of money are known as non-
profits exceed the level fixed by the management and financial incentives.
employees jointly. This motivates the employees to The common non-financial incentives are
work with greater enthusiasm and devotion to increase (a) Status: Everybody has a wish for status. Therefore,
the profits of the enterprise so that they get share in employees can be motivated by increasing their rank or
increased profits. position, by providing furnished room etc. The
(c) Co-Partnership/stock option: Under this system, achievement of a higher status fulfil the psychological,
employees are issued company’s shares at a price social end esteem needs.
which is lower than market price. This creates a feeling (b) Organisational climate: It indicates the
of ownership in the employees and encourage them to characteristics which describe an organisation and
contribute for the growth of the company. distinguish one organisation from the other. These
(d) Bonus: Bonus is an incentive offered and above the characteristics include individual autonomy or
wages/salary to the employees. It is customary to freedom, reward orientation, risk taking etc. Such
distribute bonus to employees every year. The law
 characteristics directly influence the behaviour of an (c) It shows interpersonal relationship between leader
individual in the organisation. and followers.
(c) Career advancement opportunity: Every individual (d) It is to achieve common goal.
wants to grow to the higher level in the organisation. (e) It is a continuous process.
Mangers should provide opportunities to employees so Leadership Styles
that they can be promoted to higher level jobs. Leadership styles refers to leader’s behaviour. Behavioural
Appropriate skill development programmes, and sound pattern which the leader the reflects in his role as a leader is
promotion policy will help employees to achieve often described as the style of leadership.
promotions. Promotion is a strong motivator which A leadership style depends on flowing factors:
induces people to perform to their maximum level. (i) The leader’s philosophy, personality, experience and
(d) Job enrichment: Job enrichment is concerned with value system.
designing jobs that includes great variety of work (ii) The type of followers
content, require higher level of knowledge and skill, (iii) The atmosphere prevailing in the organisation.
give workers more autonomy and responsibility, and (iv) Use of authority by a leader
provides opportunity for personal growth. If jobs are Different Styles of Leadership
enriched and made interesting, the job itself becomes a (i) Autocratic or Authoritative Leadership: The
source of motivation to the individual. autocratic leader exercise complete control over the
(e) Employees recognition: Recognition means subordinates. The leader adopts one way
acknowledgement with a show of appreciation. When communication only. Assumption of the leader in this
employees are appreciated for their good performance style is that reward and punishment can be given
of work, they feel motivated. depending upon the results. Leader does not entertain
Some Examples of Employee Recognition are: any suggestion or initiative from subordinates. Leader
(i) Congratulating an employee for good performance. loves power and never delegates authority. The leader
gives orders and the subordinates are expected to follow
(ii)Distributing mementos, T-shirts etc. in recognition them unquestioningly.
of employee’s service.
(f) Job security: Job security is an important non-financial
incentive for most of the employees. Job security means
permanence and stability of job. Employees want their
job to be secure. They want stability about future
income and work so that they do not feel worried on
these aspect and work with greater zeal and (ii) Democrative or Participative Leadership:
enthusiasm. Due to this reason, some people prefer Democratic style of leadership is one in which a leader
government as compare to private jobs. develops action plans and makes decision in
(g) Employee’s participation: Employee participation consultation with his subordinates. This type of leader
means active involvement of employees or their encourages them to participate in decision making and
representatives in the decision making process on always follow the majority opinion. This type of leader
issues concerned with them. When decisions is taken in listens to the suggestions, grievances, and opinions of
consultation with employees then they follow the the employees.
decision more sincerely.
(h) Employee Empowerment: Empowerment means
giving more autonomy and authority to the employees.
It makes employees feel that their jobs are important
and then contribute positively by using skills and
talents in performing the job.
Leadership
It is a process of influencing the behaviour of people at
work towards the achievement of specified goal.
Leadership indicate the ability of an individual to
maintain good inter-personal relations with followers
and motivate them to contribute for achieving
organisational objectives. The ‘leader’ emerges from
leadership. An individual who possess qualities of
leadership is known as leader.
(i) Features of Leadership
(a) It indicates the ability of an individual to influence
others.
(b) It tries to bring change in behaviour.
(iii) Free-rein or Laissez:Faire Leadership- Laissez means to
allow and faire means to do. This style of leadership is
known as laissez faire which means- no interference in the
activities of subordinates. A free-rien leader gives a high
degree of freedom to the subordinates to formulate their
own objectives and ways to achieve them. The group
member work on their own tasks resolving issues
themselves. Under this style, leader avoids power. Such
type of leader does not believe in the use of power unless it
is absolutely essential. The leader is the only to support
them and supply them the required information to
complete the assigned task. The subordinates also assume
responsibility for the work to be performed

S.No. Point of difference Authoritative Style Democratic Style Laissez Faire Style
1. Decision-making Leader only makes Leader makes decision in Subordinates themselves
decision consultation with make decisions
subordinates
2. Communication One way, i.e., downward Two way communication Free flow communication
communication
3. Motivation Technique Fear and punishment Reward and involvement Self-direction and self-
(Negative motivation) (Positive motivation) control
4. Delegation of Authority No Delegation Delegation of authority to Complete delegation of
some extent authority
6. Role of Leader Provides Direction Maintains team work Provides support and
resources
7. Discipline Obedience of order and Interchange of ideas Self-discipline or control
discipline

Importance of Leadership (viii)Decisiveness: A leader must be decisive in the sense

(i) Helps in inspiring and guiding the employees. that once he has taken a decision, he should be form on
(ii) Secures co-operation of the members of organisation. it.
(iii) Creates confidence. (ix) Social Skills: A leader should be sociable and friendly
(iv) Improves productivity. with his colleagues and followers, so that he can
(v) Improves job satisfaction. understand them and their needs.
(vi) Improves team-spirit or group cohesion. Communication
Qualities of a Good Leader It can be defined as transmission or exchange of ideas,
(i) Physical Qualities: A good leader must possess a good views message information or instruction between two
height, weight, health and appearance Health and or more persons by different means. The common
endurance help a leader to work hard and inspire forms or methods of transmission of the subject matter
others also to do so. of communication are–
(ii) Knowledge: A good leader should have required (a) spoken words,
knowledge and competence, so that he can influence (b) written words,
others. (c) Diagrams, pictures and graphs and
(iii) Integrity: A leader should have high level of integrity (d) gestures i.e movement of lips, or the wink of eyes or
and honesty, so that he can be a role model to others. the waving of hand.
(iv) Initiative: A leader should have courage and initiative Communication Process
to do things on his own, rather than waiting for others
to do it first.
(v) 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 counsellor.
(vi) Motivation Skills: A leader should understand the
needs of his employees and motivate them by satisfying
their needs. (i) Sender or Communicator: He is a person who conveys
(vii) Self Confidence: A leader should have a high level of the message to the receiver. Sender may be manager, a
self confidence. speaker.
(ii) Message: It is the content or subject matter of the absence of communication. Thus, communication is
communication to be sent to the receiver. It may essential for effective performance of managerial
involve any idea, order, request, suggestion etc. functions.
(iii) Encoding: In this step, the sender translates the (v) Promotes Cooperation and Industrial Peace:
message into words, symbols, drawings etc. which he Effective operation is only possible when there is
feels will make the receiver understand the message. industrial peace in the factory and mutual cooperation
This is called encoding of message. between workers and managers. Two-way
(iv) Media or Communication Channel: It is the route or communication promotes cooperation and mutual
medium or way through which encoded message is understanding between them.
passed by sender to the receiver. The common ways of (vi) Establishes Effective Leadership: Communication is
transmission are phone call, e-mail, letter, radio, the basis of leadership. A good leader must possess
television, movement of body parts etc. efficient communication skills for influencing the
(v) Receiver: The person who receives the message is behaviour of subordinates.
called the receiver. In other words a receiver is a (vii) Boosts Morale and Provides: Motivation Good and
person for whom the message is sent. The receiver effective communication enables managers to
may be listener, a reader or an observer. motivate, influence and satisfy the employees. It helps
(vi) Decoding: Decoding means translating the encoded employees to adjust in the physical and social aspect of
message into language understandable by receiver. work, which boosts their morale and motivate them to
(vii) Feedback: Feedback is the receiver response to the perform better.
message sent by the sender. It includes all those Form of Organisational Communication
actions of receiver indicating that he has received and (i) Formal Communication: It refers to official
understood the message of sender. It is necessary to communication taking place in the organisation.
ensure that the receiver has received the message and Formal Communication flows upwards from a
understand it in the same sense as the sender subordinate to superior or downwards from a superior
intended. When the feedback information is received to subordinate or horizontally between two
by the communicator only then the process of departments. Formal communication may be oral or
communication is complete. If there is any deviation, written, but generally recorded and filed in the office.
the feedback enable the sender to send the revised Formal communication is time consuming and aim of
message. Thus, feedback is the backbone of effective formal communication is to achieve organisational
communication. goals.
(viii) Noise: Noise means disruption or hindrance or Merits of Formal Communication
interference in the communication process. It can (a) The officially prescribed path of communication is
occur at any stage in the process of communication. It orderly in nature. It can easily be maintained because it
reduces the accuracy of communication. derives support from authority relationships. It
Example provides for close contact between members of the
organisation.
(i) A poor telephone connection (b) It helps in exercising control over subordinates and in
(ii) Ambiguous symbols that lead to faulty fixation of responsibility.
encoding (c) Formal Communication is authentic.
(iii) Gestures and postures which distort the (d) Chances of distortion of information are less.
message Demerits of formal Communication
(iv) Letter being lost in mail. (a) Formal Communication tends to be slow as it has to
(v) An inattentive receiver or listener follow the path laid down by the management.
Importance of Communication (b) It is rigid as deviations are not allowed.
(i) Acts as Basis of Coordination: Communication acts as (c) Organisational distance, screening at various points
basis of coordination. It helps in coordinating the and narrow route are main demerits in flow of formal
activities of various departments and persons in an communication.
organisation. (d) Formal Communication is impersonal.
(ii) Helps in Smooth Working of an Enterprise: According to direction of flow, formal communication can be
Communication ensures smooth functioning of an divided into three types
enterprise. Existence of an organisation depends fully (a) Downward communication: It refer to the flow of
on communication i.e transmitting information. When communication from a superior to subordinate.
communication stops, organised activity cease to exist. Example
(iii) Acts as Basis of Decision-making: Communication
provides needed information for decision-making. In its (i) Sending notice to workers to attend a meeting.
absence, it may not be possible for managers to take (ii) Passing on guidelines framed by top
decisions. Thus, it serves as basis of decision-making management to the subordinates.
(iv) Increases Managerial Efficiency: Various functions of (iii) Giving orders by Marketing manager to sales
managers like providing information, instructions, manager to sales manager and by the sales
allocating jobs and resources would not be possible in manager to salesman.
(b) Upward communication: It refers to flow of not- authentic and generate rumours. To meet personal
communication from a subordinate to superior. or social needs of employees to exchange values or
ideas, which cannot be done through formal channels.
Example
Merits of Informal Communication
(a) Grapevine channels may be useful as they carry
(i) Application for grant of leave information rapidly.
(ii) Submission of progress report (b) It helps in getting quick feedback. Managers can use the
(iii) Work performance grapevine to know the reactions of subordinates.
(c) It can help to clarify official messages by talking them
(iv) Suggestions and Complaints
over with friends.
(d) It helps in developing better human relations in the
(c) Horizontal communication: Horizontal organisation.
Communication means flow of communication (e) It serves to fill possible gaps in the formal
between two divisional /departments or two people of communication due to its flexible and personal mature.
equal rank. The subject matter of horizontal (f) Grapevine helps to satisfy social needs of employees
communication includes information, personal face to and provides an outlet for releasing anxiety, frustration
face contacts, mutual problems, contacts etc. The etc.
purpose of horizontal communication is to coordinate Demerits of Informal Communication
different activities of two or more departments. It also (a) The informal/grapevine communication is not
aims to resolve their interrelated problems. authentic and message may get distorted.
Common Networks of formal communication are (b) Sometimes, informal discussions may hamper work
(a) Wheel pattern: In wheel network, all environment.
communication passes through one superior who (c) It may result in leakage of confidential information.
acts as a central authority. (d) As grapevine has no definite origin, nobody can be held
(b) Single Chain pattern: Under this network, responsible for it.
communication flows from every superior to his (e) It also generates gossips and rumours in the
subordinate through single chain. organisation. It wastes valuable working time and leads
(c) Circular Pattern: In circular pattern each person to feelings of insecurity.
can communicate with his adjoining colleagues. Common networks of informal communication are
(d) Channel or free flow pattern: In this network, (a) Gossip: In this network, one person passes information
there is no restriction on the flow of network. to everyone else on non-selective basis.
(e) Inverted ‘V’: In this network, a subordinate is (b) Clusters: In cluster network, the individual
allowed to communicate with his immediate communicates with only those people whom he trusts.
superior, as well as superior’s superior. (c) Single strand: In this network, information passes
(ii) Informal Communication: Informal communication from one person to another in sequential order.
between different members of organisation who are (d) Probability: In this network, information is passed
not officially attached to each other is known as randomly by one person to whomever he comes in
Informal communication. Informal Communication is contact with.
generally oral, therefore it is fast and time saving. It is
Difference between Formal and Informal Communication
Basis of Formal Communication Informal Communication
difference
Meaning It refers to communication taking place within It refers to communication between
the official chain of command. individuals and group which are not officially
recognised.
Relations It establishes relation between the subordinates, It establishes personal relationship among
superiors and relations are highly impersonal. individuals irrespective of the levels.
Nature It is more rigid in nature and cannot be It is flexible, dynamic and varies from
modified. individual to individual.
Channel It follows formal or established line of It is based on informal relationship and no
command. fixed line of command is followed.
Need It serves the need of organisation. It serves the need of individuals working in
organisation.
Speed The speed of formal communication is generally The speed of informal communication is very
because all information has to pass through an fast as it cuts across all the official channels.
established chain of command.
Fixation of It is easy to fix the responsibility in formal It is not possible to fix the responsibility
Responsibility communication because source of information is because source of information is not known.
known.
Barriers to Effective Communication successive transmissions of the message result in
Communication is a nerve system of the organisation. It is loss of information or inaccurate information. Poor
very essential for the management to maintain efficient flow retention is another problem. Usually, people
of communication in all directions. But in practice, perfect cannot retain the information for long time if they
communication is rarely achieved. Several obstructions, are inattentive or not interested.
hurdles, distortion, delays etc. called barriers of (d) Distrust: For successful communication, it is
communication reduces the effectiveness of communication. necessary that the sender and the receiver must
Some of the barriers to effective communication are given trust each other. When the sender or transmitter
below: and the receiver do not believe each other, the
(i) Semantic Barrier message may not be understood in its original
(a) Badly expressed message: The message to be sense.
communicated must be stated in simple and clear
(iii) Organisational Barrier
words. Sometimes, the intended meaning may not
(a) Organisational policy: Communication hampered
be conveyed by a manager to his/her subordinates
if the organisational policy does not support the
because of use of wrong words, omission of needed
words, inadequate vocabulary etc. free flow of communication. For example, if it is the
(b) Words or Symbols with different meanings: policy of the organisation that all message must be
Word or symbol may have different meanings. Th in writing, then it may cause delay in activities.
receiver is required to understand the meaning of (b) Rules and regulations: Rigid rules and
the word used by the sender in the same sense for cumbersome or complicated procedures act as a
which sender has used it. For eg. If a superior says, barrier in the way of effective communication.
the word ‘Shoot’ may be used with an intention of Communication through the prescribed channels
taking a photograph or film a scene, but the listener may result in delays.
may take it as ‘gun fire’. (c) Status difference: Status of an organisational is
(c) Faulty translation: Sometimes the determined by his position in the organisation.
communication originally drafted in one language Generally, people of higher status do not talk freely
(e.g. English) need to be translated to the with those of lower status. Subordinates at lower
language understandable to workers (e.g Hindi). If levels may hesitate to talk freely to superiors. They
the translator is not proficient with both the pass on only what superiors would like to hear and
languages, communications may misunderstood hold back unpleasant facts.
(d) Unclarified assumption: Some communications (d) Complex organisation structure: When there are
may have certain assumptions which are subject to large number of managerial levels, communication
different assumptions. Sometimes, the gets delayed and distorted due to filtering points.
assumptions of the sender and the receiver may (e) Organisational Facilities: Proper organisational
differ. facilities like complaint box, frequent box,
(e) Technical jargon: Many specialist like doctors, transparency etc. are essential for free flow of
engineers etc, use technical words in their communication. In the absence of these facilities
communication, which may not understood by the people fail to make effective communication.
listeners. It leads to poor communication
(f) Body language: The information can be (iv) Personal Barriers
misinterpreted if the sender’s body movements do (a) Lack of confidence of Superior on Subordinate:
not match with these movements. For eg. A Process of communication is hampered when
communicator may shake his head sideways while superiors do not have faith or competence of his
uttering ‘yes’ and vice versa i.e. he may nod his head subordinates. In such cases, superior may not seek
while saying ‘no’. advice, opinions or suggestions of the
(ii) Psychological Barrier subordinates.
(a) Premature evaluation: It means deriving (b) Lack of incentives: If there is no motivation or
conclusions before completion of message. incentive for communication, the subordinate may
Sometimes receives evaluates the meaning of not take initiative to communicate. For eg. If there
message before the sender completes the message. is no motivation or incentive for communication,
This type of evaluation may lead to failure of the subordinates may not take initiative to
communication. Such premature evaluation may communicate.
occur due to prejudice against the communicator. (c) Fear to challenge the authority: If a superior
(b) Lack of attention: The pre-occupied mind of perceives that a particular message or information
receiver and the resultant non-listening of message may adversely his authority, he may try to withhold
acts as a major psychological barrier. For eg. An or suppress such message or information.
employee explains his problems to the boss who is (d) Unwillingness to Communicate: A subordinate
pre-occupied with an important file. may not be willing to communicate with the
(c) Loss by poor retention: When oral superior if he perceives that it may affect his
communication pass through various levels, interests, e.g fear of punishment or demotion.
Improving Effective Communication Communication is two way process and remain
(i) Clarify the idea before communication: The message incomplete without feedback.
to be communicated must be clear in the mind of (v) Convey Helpful and Valuable Things:
communicator. The message can be conveyed properly Communication is more effective, if message contains
only when it is clear to communicator himself. The something useful for the receiver.
message should be encoded in the clear and simple (vi) Follow-up Communication: There should be properly
language, so that the receiver is able to understand it follow up of the information. This follow up will help to
easily and quickly. remove hurdles in the implementation of instructions.
(ii) Communicate according to needs of receiver: The (vii) Be a Good listener: To make communication effective,
level of understanding of the receiver should be crystal the receiver should listen to the sender’s words
clear to the sender. A sender should adjust his patiently, carefully and attentively. The communicator
communication according to the education and should try to obtain the complete attention of the
intelligence of receiver. receiver. Similarly, the communicator should listen to
(iii) Consult others before communicating: Before the receiver’s words efficiently. A good listener
communicating the message, it is advisable to consult improves the communication process.
other. Effective communication is the responsibility of (viii) Be Aware of Language and Content of Message:
all people in the organisation as all have work towards Language, tone and content of the message to be
a common goal. If plans are developed with communicated are very important aspect of effective
consultation and involvement of employees, they will communication.
implement the plans the plans with full cooperation. (ix) Consistency of Message: The message to be
(iv) Ensure Proper feedback: The sender ensure the communicated should always be consistent with the
success of communication by asking questions about objectives, policies and rules of the organisation. So
the message conveyed. The receiver of the message while designing the message, it is better to know the
should also be encouraged to respond the message. needs and interests of people with whom you are
communicating
 QUESTIONS FOR PRACTICE
Q7. Mr. Shriram, the manager of W Ltd. explains a worker
MCQ about operations to be carried out by him on a hi-tech
machine. Which element of directing is highlighted?
Q1. Ajay Thakur, chairperson of Thakur Enterprises (a) Motivation
misses no opportunity to praise his subordinates for (b) Leadership
their good work. Which element of directing is (c) Communication
highlighted? (d) Supervision
(a) Communication (b) Supervision Q8. Which of the following is a formal communication
(c) Motivation (d) Leadership network in which each person can communicate with
Q2. If a manager wants to introduce new accounting two adjoining colleagues only?
system, then there may be initial resistance from (a) Wheel network
accounting staff. But, if manager explains the purpose, (b) Circular network
provides training and motivates them with incentive, (c) Free flow
the staff may cooperate with manager. Which (d) Cluster network
importance of directing is highlighted here? Q9. ABC company Ltd wants to motivate its employees by
(a) Initiate action (b) Means of motivation providing them bonus on the occasion of Diwali. It can
(c) Facilitates change (d) Provides stability pay the bonus
Q3. The top management of Raheja Ltd. focuses on (a) in cash only
maintaining an effective two-way communication with (b) in kind
their employees. They aim to keep everyone well (c) in cash or in kind
informed and involve employees in company’s (d) transferable coupons
activities and provide opportunities for them to give Q10. The need of affection, sense of belongingness,
their feedback. What will the company achieve by acceptance and friendship is related with
following such a network of communication? Give any (a) safety/security needs
two points. (b) social needs
(a) Smooth functioning of the enterprise (c) esteem needs
(b) Managerial efficiency (d) self-actualisation needs
(c) Both (a) and (b)
Q11. Which of the following is an example of retirement
(d) None of the above
benefits?
Q4. Nitin works as a manager in ‘Manglam Ltd.’ He has (a) Provident fund
been given the ‘Best Employee Award’. The reasons (b) Pension
behind this award is that he has been able to integrate (c) Gratuity
group efforts and get maximum out of his (d) All of these
subordinates by attaining their willing co-operation.
Q12. In a factory, Mr. Suresh is at the position of supervisor
For this, he stimulates and inspires people at work and
and there are twenty subordinates under him. He
provides necessary incentives. He also listens to his
communicates with all the subordinates in a single
employees and handles conflict. His qualities like
line. They are following which type of communication
initiative, self-confidence, etc. has helped him to
network here?
achieve the objectives of the organisation. Which
(a) Single chain
function of management is performed effectively by
(b) Inverted V
Nitin?
(c) Wheel
(a) Planning (b) Organising
(d) Free flow
(c) Directing (d) Controlling
Q13. If a production manager contacts marketing manager
Q5. Ishaan resigned from a company on the ground of ‘lack
to discuss about production schedule, it will be
of recognition’ in organisation towards his work.
regarded as
Which need is not fulfilled here?
(a) upward communication
(a) Physiological need (b) Safety need
(b) horizontal communication
(c) Affiliation need (d) Esteem need
(c) downward communication
Q6. ABC Ltd. offered its employees, shares having market (d) All of the above
price of Rs.150 at Rs.110. What is this monetary Q14. In which of the following networks an individual,
incentive known as? communicates with only those people whom he
(a) Bonus trusts?
(b) Co-partnership (a) Single strand network (b) Gossip network
(c) Retirement benefits (c) Probability network (d) Cluster network
(d) Both (b) and (c)
Q15. XYZ company offers its director certain benefits such same time makes them contribute towards the growth
as car, housing, medical facilities, etc, apart from basic of the organization.
salary. Name the incentive provided here by the (a) Identify the incentive and explain its type, which
company to its director. has been suggested by Mrs. Sita to the CEO of the
(a) Stock option company.
(b) Perquisites (b) Also give two other incentives of the same type.
(c) Bonus Q2. Name the element of directing which refers to the
(d) Job enrichment ability of influencing the behaviour of people towards
Q16. Which of the following statements is not true? the achievement of organizational objectives.
(a) Directing initiates action in the organisation Q3. Himanshu and Shama are working in the same
(b) Directing helps a manager to integrate individual organisation but in different departments one day at
efforts lunch time Shama informs Himanshu that due to
(c) Directing does not help in developing computerisation many people are going to be
commitment on part of subordinates retrenched soon from the organisation. Name, which
(d) None of the above type of communication is this?
Q17. Which of the following is correct about function of Q4. X Ltd. is a bank functioning in India. It is planning to
supervisor? diversify into insurance business. Lately, the
(a) Maintains group unity government of India has allowed private sector to gain
(b) Acts as a link between workers and management entry in the insurance business. Previously, it was the
(c) Maintains contact with workers prerogative of LIC and GIC to do insurance business.
(d) All of the above But now with liberalisation of the economy and to
Questions 18–19 contain two statements–– Assertion (A) make to start insurance business under the regulation
and Reason (R). Each question has FOUR choices (a), (b), (c), of Insurance Regulatory and Development Authority.
(d), only one of which is correct. X Limited plans to recruit high quality employees and
In the light of these statements, choose the most appropriate agents and exercise effective direction to capture a
option: substantial part of life and non-life insurance business.
(a) (A) is incorrect but (R) is correct. (a) Identify how the company can supervise its
(b) (A) is correct but (R) is incorrect. employees and agents effectively.
(c) Both (A) and (R) are correct and (R) is the correct (b) What financial and non-financial incentive can the
explanation of (A) company use for employees and agents separately
(d) Both (A) and (R) are correct but (R) is not the correct to motivate them?
explanation of (A). (c) How can the company ensure that higher order
Q18. Assertion (A): Directing is a continuous process. needs, i.e., the esteem and self actualisation needs
Reason (R): Directing takes place throughout the life of are met?
an organization. (d) Give a model of formal communication system
that the company can follow. Identify the barriers
Q19. Assertion (A): Supervisor acts as a link between in this model. How can they be removed?
workers and management.
Reason (R): Supervisor plays an important role in Q5. Mr. Tilak, a recently appointed production manager of
maintaining unity among the workers. Suntech Ltd. has decided to produce jute bags instead
of plastic bags as these are banned by the government.
Q20. Name the barrier which is related to the personality of He set a target of producing 1000 jute bags a day. It
sender and receiver. was reported that the employees were not able to
(a) Semantic barrier achieve the target. After analysis he found that
(b) Psychological barrier employees were demotivated and not putting in their
(c) Organisational barrier best for achieving the target. Mr. Tilak’s behavior is
(d) Personal barrier good towards the employees. His attitude is always
positive. So he announced various incentive schemes
SUBJECTIVE QUESTIONS for the employees like:
• Installing award or certificate for best
Q1. Mrs. Sita is working as the Human Resource performance.
Consultant in a firm manufacturing cosmetic, which is • Rewarding an employee for giving valuable
facing a problem of high employee turnover. The CEO suggestions.
of the company has invited suggestions from her for • Congratulating the employees for good
retaining the talented employees & reducing the performance.
employee turnover. Mrs. Sita recommends that the (a) Identify the functions of management highlighted
good employees be rewarded in a way that it creates a in the above paragraph.
feeling of ownership among the employees and at the (b) State the’ incentive’ under which the employees
are motivated.
Q6. M/s Gamma Ltd. deals in consumer goods. It employs Q8. Vijay is good orator, but he lacks in good listening
100 workers and 10 operative managers who give skills. Due to it, he does not listen to the instructions
guidance and support to the workers while operating given by supervisor carefully and completely.
the machinery. The company has a policy of granting Therefore, he doesn’t complete the work as per her
leave as per the requirement of the workers. Workers given instructions.
are generally granted leave on festivals and special 1. Identify the concerned communication barriers
occasions. Recently on Puja festival, it received a big 2. State the category of such barriers.
order. Workers are keen to take Puja holidays while 3. How such barriers can be mitigated?
management is pressing hard for overtime. This Q9. Better human relations is one of the advantages of
matter was placed before the Personnel Manager who which type of communication?
called the meeting of operative managers and workers
to inform them about the changes in the incentive plan Q10. ‘Rose Ltd’ is manufacturing––Textiles, Cosmetics and
which states payment of double wages for working Kitchenware items. The company has recruited all
overtime and triple wages for working on holidays. female freshers directly from a Management Institute
Workers without any pressure voluntarily took located in the city. Each product is headed by different
limited holidays and were able to increase their female manager.
earning by working overtime and on holidays. During Ms Pooja is looking after Textile. She believes in
Board of Directors meeting, Personnel Manager was decentralisation and takes decisions regarding
asked to update the management for achieving higher different work by consulting her subordinates.
output, meeting timely supplies without any Ms. Mona, head of Cosmetics, takes little interest in
confrontation with workers. Personnel Manager managerial functions and the subordinates are left on
replied, “I just used a carrot with no sticks approach”. their own.
Ms Anu is heading Kitchenware items. She has kept all
By quoting the lines from above paragraph state any the authority in her own hands and makes employees
two elements of directing. perform the work exactly as per her orders.
Q7. Geeta is the Chief Executive Officer of a reputed 1. Which kind of organisational structure has the
company. She introduced appropriate skill company adopted?
development programmes and a sound promotion 2. State the specific source of recruitment used by
policy for the employees of her company. To motivate the company.
and retain the best talent in the company, she designed 3. Identify the leadership styles practised by the 3
the jobs of the managers to include greater variety of heads.
work content. Identify and explain the two incentives .
introduced by Sadaf to motivate the employees of her
company.
 HOMEWORK QUESTIONS
(d) Belonging Needs
MCQ Q7. Which of the following is not an assumption of
Maslow’s theory?
Q1. Mr. Aditya, a production manager of Gupta Sports Ltd. (a) People’s behaviour is not based on their needs.
is not able to communicate and provide guidance to (b) People’s needs are in a hierarchal order, starting
the of a factory due to overload of the work. So he from basic needs to higher level needs
decided to appoint Mr. Rishabh who will be able to (c) A satisfied need can no longer motivate a person;
spend more time with the workers. Mr. Rishabh also only next higher level need can motivate him.
gave training to the employees in which the employees (d) A person moves to the next higher level of the
were made to work on the equipments, materials, etc. hierarchy only when the lower need is satisfied.
as in real workplace but away from actual place of
Q8. Mr. Ashraf, Production Manager and Mr. Prateek
work. Identify the element of directing that helps Mr.
Marketing Manager of a toy manufacturing company
Aditya to reduce his work load.
are not on talking terms with each other because of
(a) Supervision (b) Motivation
lack of faith. Because of that they do not transfer
(c) Communication (d) Leadership
complete information to each other. Name the element
Q2. Mr. Shenoy, Manager (HR) is really appreciative of of directing which becomes ineffective due to the
fresh ideas given by his subordinates. He frames behaviour of the managers.
policies only after consulting them. Which style of (a) Leadership
leadership is the following? (b) Communication
(a) Autocratic leadership (c) Supervision
(b) Democratic leadership (d) Motivation
(c) Liassez-Faire Leadership
Q9. Girish works as a manager in Tata Ltd. Besides the
(d) Either (a) or (b)
salary, the company offers him benefits such as free
Q3. While other functions prepare a setting for action, housing, medical aid and education to the children, etc.
name the function that initiates action in the Identify the type of incentive being offered to him.
organisation. (a) Perquisites
(a) Planning (b) Organising (b) Job Enrichment
(c) Staffing (d) Directing (c) Co-partnership
Q4. Rahul and Harsh are working in the same organization (d) Pay and allowances
but in different departments. One day at lunch time, Q10. On joining TCS Ltd. as Chief Financial Officer, Neha was
Harsh informed Rahul that due to computerisation, allotted 500 shares of the company. Identify the type
many people are going to be retrenched soon from the of incentive being described.
organization. Name which type of communication is (a) Perquisites
this. (b) Retirement Benefits
(a) Formal communication (c) Co-partnership
(b) Informal communication (d) Pay and allowances
(c) Either (a) or (b)
Q11. Mr. Manav is the Marketing manager of the company
(d) None of these
manufacturing readymade clothes. One day, in the
Q5. Sameer is working as a production manager in an morning while leaving home he had a quarrel with a
organization. His subordinate Ahmad discussed with person in his neighbourhood on some issue. That
him a method of production which will reduce the cost person is criminal who could abuse his family
of production. But due to some domestic problem and members. Mr. Manav, on that day, is very worried and
Sameer’s mind being preoccupied he is not in a angry too on the behaviour of the neighbourhood
position to understand the message. Ahmad got person. On that day, a meeting was held by a team of
disappointed by this.Identify the communication marketing and design experts to ensure that whatever
barrier discussed above. is produced is according to market demand and tastes
(a) Lack of attention and fashion of the customers. But Mr. Manav could not
(b) Badly expressed message pay attention to the discussion between them. Identify
(c) Unclarified assumptions the type of communication barrier referred in the
(d) Premature evaluation above para.
Q6. These needs are most basic in the hierarchy of (a) Semantic barriers
motivation theory and correspond to primary needs. (b) Psychological barriers
(a) Self Actualisation Needs (c) Organisational barriers
(b) Basic Physiological Needs (d) Can’t say
(c) Security Needs
Q12. On joining Satyam Public School as a Physical (b) Leadership
Education teacher, Vikrant realised that he did not (c) Supervision
have any freedom to introduce any changes in the (d) Motivation
sports activities being carried out in the school. Q19. Mr. Yash has a pre-notion that his boss always finds
Identify the incentive which was being ignored by the faults in his presentation. During one of his
school. presentations, his boss wanted to appreciate him for
(a) Organisational climate good performance of work but before he could
(b) Job security complete Mr. Yash closed his presentation and left the
(c) Career advancement opportunities room. Identify the communication barrier discussed
(d) Employee recognition program above.
Q13. On the occasion of the Founders Day of the firm, Ruchi (a) Premature evaluation
was felicitated with the certificate of best performer as (b) Badly expressed message
a Business Development Manager. Identify the type of (c) Loss by transmission
incentive being described in the above lines. (d) Distrust
(a) Career advancement opportunities Q20. Mr. Vaibhav is working as a Production Manager in
(b) Employee recognition program Aryan Ltd. His subordinates are mostly engineers and
(c) Organisational climate qualified technicians. N. As a manager, he is very strict,
(d) Job security does not listen to any suggestions or feedbacks given
Q14. Kishan works as an Accounts Officer in Dabur Limited. by his subordinates. He expects them to follow his
He also feels very proud of the fact that he is the instructions without any questions and does not allow
incharge of recreation committee in his office. Identify them to take any initiatives. Which leadership style is
the type of incentive being offered to Kishan. followed by Mr. Vaibhav?
(a) Career advancement opportunities (a) Autocratic leadership
(b) Employee recognition program (b) Democratic leadership
(c) Organisational climate (c) Liassez-Faire Leadership
(d) Employee participation (d) Can’t say
Q15. As the general manager of an e-commerce company, Q21. As the incharge of a small scale factory manufacturing
Yogesh maintains good interpersonal relations with glassware, Raghunath guides his subordinates and
followers and also motivates them to contribute for clarifies their doubts in performing a task, so that they
achieving organisational goals. Identify the concept are able to achieve the work targets given to them.
being described in the above lines. Identify the function of management being described
(a) Supervision in the above lines.
(b) Communication (a) Planning
(c) Determination (b) Staffing
(d) Leadership (c) Directing
Q16. Which of the following is not a feature of leadership? (d) Organising
(a) It shows ability of an individual to influence others. Q22. Nitika a teacher in a school generally for 3-7 minutes
(b) It leads to achievement of organisational goals. at the beginning and ending of the class , share a time
(c) Leadership is one-time process. with students where empathy is defined, discussed
(d) Tries to bring change behaviour of people. and brought to life. Identify the type of need being
Q17. Identify the correct sequence of steps involved in the satisfied for students.
communication process. (a) Social needs
(a) Sender, Message, Encoding, Media, Decoding, (b) Safety needs
Receiver, Feedback (c) Esteem needs
(b) Sender, Decoding, Receiver, Feedback, Message, (d) Basic physiological needs
Encoding, Media Q23. Vijay told his secretary to inform all department heads
(c) Sender, Message, Encoding, Media, about the meeting today at 10:00 am in the conference
Receiver,Decoding, Feedback room. He informed three department heads about the
(d) Sender, Media, Decoding, Receiver, Message, meeting timings. On his way he met his friend and
Encoding, Feedback started talking to him and forgot to inform other
Q18. Name the element of directing which can be department heads about the meeting. Identify the
understood as the process of guiding the efforts of communication barrier discussed above.
employees and other resources to accomplish the (a) Premature evaluation
desired objectives. (b) Lack of attention
(a) Communication (c) Loss by transmission and poor retention
(d) Distrust
Q24. Teena runs a confectionary in a local market. In order business as a result of sincerity of its employees. In
to make the workers in the Confectionary work order to give due recognition to its employees and
optimally, she on one hand provides them overtime motivate them to continue with the good work, the
wages and on the other hand imposes penalty, if company decided to give a certain percentage of
required, by deducting the wages. Identify the feature profits to them. Identify the type of financial incentive
of motivation being described in the above lines. being adopted by the company.
(a) Motivation is an internal feeling. (a) Perquisites
(b) Motivation produces goal-directed behaviour. (b) Productivity linked wage incentives
(c) Motivation is a complex process. (c) Co-partnership
(d) Motivation can be either positive or negative. (d) Profit sharing
Q25. Nikhil is the sales head of Sargam Electronics. He has a Q29. Jagdish Limited adopts a systematic performance
team of nine people reporting to him. During the appraisal system which provides opportunity to
quarter-end meeting with his managers, he had a clash employees to improve their skills and be promoted to
of opinion with one of the managers over his the higher level jobs. Identify the type of incentive
underperformance which resulted into an aggressive being adopted by the company.
argument. He was so disturbed with his behaviour that (a) Employee recognition programme
he could not focus on matters being discussed by other (b) Organisational climate
managers. He left in the middle of the meeting and (c) Career advancement opportunities
later realised that the reason for the (d) Job security
underperformance of managers was that no targets Q30. Mr. Lakshay Wadhwa after completing his studies in
were set for the managers. There was no set criteria to MBA was appointed in the Production Deparment of
evaluate their performance. He then laid down the Kapoor Ltd. Soon after his appointment, the company
standards expected of each manager and decided to placed a problem before him. The company said that
conduct quarterly evaluation meetings. All the most of its employees did not appear to be happy, and
managers were informed about the targets set for that he should do a research on this problem and give
them. In the next evaluation meeting, each manager his suggestion to them. Mr. Wadhwa interacted with
presented a report on targets achieved along with the hundreds of employees of the company and tried to
reason for underperformance, if any. Identify the find out why were they not happy. In the course of his
category of communication barrier highlighted in the interaction with the people he tried to know their
above case. expectations from the company. About 20% of people
(a) Semantic barriers told him that they were happy with the company. The
(b) Psychological barriers remaining 80% of people stated different reasons for
(c) Organisational barriers their not being happy. About 80% out of them told that
(d) Can’t say they were never consulted regarding any of the
decisions of the company; every decision was imposed
Q26. Nisha was facing the problem of high labour turnover upon them. After doing complete analysis, Mr.
in her firm. On the advice of her friend, she introduced Wadhwa told the company that the people who were
special benefits for the employees, which helped her to working as managers would have to change their
retain talented people in the organisation. Identify the leadership style. Identify the leadership style being
related point of importance of motivation. used by the company in the above case.
(a) Motivation helps to improve performance levels (a) Autocratic leadership
of employees. (b) Democratic leadership
(b) Motivation helps to reduce employee turnover. (c) Liassez-Faire Leadership
(c) Motivation helps to reduce absenteeism in the (d) Can’t say
organisation.
(d) Motivation helps to mould the attitudes of SUBJECTIVE QUESTIONS
employees.
Q27. Jayant and Lokesh work in a garment factory. Jayant Q1. The psychology lecture of MBA students of ‘Right
always earns a higher wage than Lokesh, as he Institute’ was going on. The lecturer discussed that
produces more units of output. Identify the type of some employees have the desire for status or ego of
financial incentive being adopted by the company. self-respect and recognition. Some have the desire to
(a) Perquisites be what they want to be. Some aspire for acceptance
(b) Productivity linked wage incentives and sense of belongingness. Some need defence
(c) Co-partnership against unexpected problems in future.
(d) Pay and allowances 1. Identify the topic of psychology lecture.
2. Identify the desires of employees discussed above
Q28. During the year 2018, Ram Kishan Limited made along with how can a manager fulfil such desires
surplus profits due to growing reputation of the respectively.
Q2. Deepika is working in an MNC. She has been given an Q8. Neeraj, a sales representative of ‘Omega Ltd.’ has
option to buy the shares of the company at an amount changed seven jobs in the last one year. He is a hard
less than the market price because of her performance working person but is not able to finalise deals with
as an incentive. Katrina has been awarded "Employee the customers due to his inadequate vocabulary and
of the month" award. Which forms of incentive is being omission of needed words. Sometimes he uses wrong
referred here? Explain the incentives along with any words because of which intended meaning is not
other three incentives. conveyed. All this created a mis-understanding
Q3. Pramod was a supervisor at ‘Annapurna Atta’ factory. between him and his clients.
The factory was producing 200 quintals of aata every (a) Identify the communication barrier discussed
day. His job was to make sure that the work goes on above.
smoothly and there was no interruption in production. (b) State the category of this communication barrier.
He was a good leader who would give orders only after (c) Explain any other communication barrier of the
consulting his subordinates and work out the policies same category.
with the acceptance of the group. Identify and describe Q9. Hema is working in a company on a permanent basis.
the leadership style being adopted by Pramod. Explain As per the job agreement she had to work for 8 hours
other two types also. a day and was free to work overtime. Huma worked
Q4. Rama is a very strict foreman. She punishes late overtime, due to which she fell ill and had to take leave
comers by reporting negatively in observation reports from her work. No one showed concern and enquired
of workers. Due to which the wages of those workers about her health. She realised that she was fulfilling
who come late, decline considerably. Which kind of only some of her needs while some other needs still
motivation is applied by Rama? remained to be fulfilled.
(i) By quoting the lines from the above para, identify
Q5. Bhavesh was working as a clerk in Hindustan Ltd. the needs of Hema which she is able to fulfil.
since last six months. He was working with full (ii) Also explain two other needs of Hema followed by
diligence. His boss noticed his performance and gave the above needs, which still remained to be
him “Confirmation letter”. Which kind of Bhavesh’s satisfied.
need was satisfied?
Q10. Mr. Karan is the marketing manager of the company
Q6. Safe India Ltd. offers to its employees issue of shares manufacturing designer clothes. One day in the
at a price which is less than the market price. morning while leaving home, he had a quarrel with the
Name the type of incentive offered to the employees. person in the neighbourhood. That person abused his
Q7. PQR Ltd. is not able to achieve its objective on family and threaten to harm the family. Mr. Karan got
analysing, they found that employees were not given very upset and worried. On the same day a meeting
their best, so he decided to announce an incentive was organised in the office to finalise the design
plan, which offers various incentives to employee according to market demand and taste and fashion of
workers at different level for achieving their target. the customers. Mr. Karan could not pay attention to
(i) Which element of directing is used by manager? the discussion as he was thinking about the quarrel
(ii) Suggest incentives suitable for: only.
(a) Employees operating at lower level. (a) Identify the type of barrier to communication
(b) Employees operating at higher level. mentioned in the above para.
(b) State any other two barriers of same category.
 SOLUTION FOR PRACTICE QUESTIONS
(b) Lack of attention
SOLUTION FOR MCQ QUESTIONS (c) Loss by transmission and poor retention
(d) Distrust
3. Organisational barriers
S1. (c) S2. (c) (a) Organisational policy (b) Rules and regulations
S3. (c) S4. (c) (c) Status difference (d) Complex organisation
S5. (d) S6. (b) (e) Organisational facilities
S7. (d) S8. (b) 4. Personal barriers
(a) Lack of confidence of superior in his subordinates
S9. (c) S10. (b) (b) Lack of incentives
S11. (d) S12. (a) (c) Fear of authority
S13. (b) S14. (d) (d) Unwillingness to communicate.
S15. (b) S16. (c) These barriers can be removed by taking following
measures:
S17. (d) S18. (c) (i) Clarify the idea before communication.
S19. (d) S20. (d) (ii) Communicate according to the need of the
receiver.
SUBJECTIVE QUESTIONS (iii) Consult others before communicating.
(iv) Use of proper languages.
S1. (a) Financial incentive. (v) Proper feedback.
Co-Partnership/Stock Option (vi) Communication for present as well as future.
(b) Other financial incentives (vii) Follow up.
• Pay and allowances (viii) Good listener.
• Productivity linked wage incentives (ix) Open mind.
S2. Leadership (x) Completeness of message.
S3. Informal communication. S5. (a) Controlling and directing.
(b) Employee recognition programme (non-monetary
S4. (a) Company can supervise its employees by incentive).
appointing a supervisor as supervisors guide the
efforts of their employees and other resources to S6. Supervision means guiding the efforts of
accomplish the objective of organisation. employees and other resources to achieve desired
(b) Refer page no. 99-100 for financial and non- results.
financial incentives. Supervision ‘it employs 10 operating
(c) Generally, higher order needs are not satisfied with managers................support to the workers.’
money alone. To satisfy these needs, Motivation means stimulating people to action to
psychological, social and emotional factors also accomplish desired goals.
play an important role. Non-financial incentives Motivation ‘to pay double wages for working
mainly focus on these needs and common non- overtime and triple wages for working on
financial incentive which can ensure that higher holidays.’
order needs are satisfied are: S7. The two incentives used by Sadaf to motivate the
[Explain non-financial incentives on page no. 99- employees of her company are:
100]. (i) Career Advancement Opportunity: It means
(d) The most suitable model of formal communication providing an opportunity to employees to
system that the company can follow is free flow. In Improve their skills to be promoted to higher level
this network each person can communicate with of jobs. Appropriate skill development
others freely. The flow of communication is fast in programmes and sound promotion policy provide
this network. career advancement opportunity to the
employees.
The common barriers in this model are:
(ii) Job Enrichment: It is concerned with designing
1. Semantic barriers jobs that include greater variety of work content
(a) Badly expressed message
and provide the opportunity for personal growth
(b) Symbols with different meanings and a meaningful work experience.
(c) Faulty transactions
(d) Unclarified assumptions S8. 1. Lack of Attention 2. Semantic Barrier
(e) Technical jargon 3. Be a good listener
(f) Body language and gesture decoding S9. Informal Communication
2. Psychological barriers S10. 1. Divisional structure 2. Campus recruitment
(a) Premature evaluation 3. Democratic, Free rein, Authoritative
 SOLUTION FOR HOMEWORK QUESTION
S5. Job Security.
SOLUTION FOR MCQ
S6. (i) Financial Incentives- Co-partnership/Stock option
QUESTIONS
S7. (i) Motivation is missing.
(ii) (a) Lower level offer monetary incentives.
1. (a) 2. (b) (b) Higher level offer non-monetary incentive.
3. (d) 4. (b)
5. (a) 6. (b) S8. (a) Badly expressed message.
7. (a) 8. (b) (b) It comes under ‘Semantic barriers’.
9. (a) 10. (c) Semantic barriers are concerned with problems in
11. (b) 12. (a) the process of encoding and decoding of message
13. (b) 14. (d) into communication symbols.
15. (d) 16. (c) (c) Faulty translation, symbols with different
17. (c) 18. (b) meanings.
19. (a) 20. (a) S9. (i) ‘Hema is working in a company on a permanent
21. (d) 22. (a) basis’.
23. (c) 24. (d) According to above line Hema is able to fulfil her
25. (b) 26. (b) following needs:
27. (b) 28. (d) (a) Physiological needs
29. (c) 30. (a) (b) Safety or Security needs
(ii) Needs of Hema which still remained to be satisfied
SUBJECTIVE QUESTIONS are:
(a) Affiliation Need: It refers to the need for
S1. 1. Human needs, Motivations affection, sense to belongingness, acceptance and
2. Esteem needs, Self-actualisation, social needs, friendship.
Safety/Security need (b) Esteem Need: It refers to the need for self-
S2. Non-monetary and Monetary respect, autonomy, status, recognition and
Co-partnership, Job enrichment and Recognition attention.
(Refer to page no. 99-100). S10. (a) Psychological barrier––Lack of attention.
S3. Democratic, Autocratic and Free-rein Leadership (b) (i) Premature evaluation
(Refer to Page no. 100 and 101) (ii) Loss by poor retention.
S4. Negative Motivation.