Class 12 Class 12 Business Studies Notes

Class 12 Business Studies Notes Directing

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Directing is part of Class 12 Business Studies Notes for Quick Revision. Here we have given NCERT Class 12 Business Studies Notes – Directing.



1. Directing

The directing function of management is concerned with instructing, guiding, inspiring and motivating the employees in the organisation so that their efforts result in the achievement of organisational goal.
According to Ernest Dale, “Directing is telling people what to do and seeing that they do it to the best of their ability.”

2. Characteristics of Directing

  1. It initiates action.
  2. Continuing function.
  3. It takes place at every level.
  4. It flows from top to bottom.
  5. It is performance oriented.
  6. It is the human element.

3. Importance of Directing

  1. To initiate action
  2. To integrate employees efforts
  3. Means of motivation
  4. Balance in the organisation
  5. To facilitate change

4. Principles of Directing

  1. Maximum individual contribution
  2. Harmony of objectives
  3. Unity of command
  4. Appropriate technique
  5. Managerial communication
  6. Strategic use of informal organisation(vii) Effective leadership
  7. Follow through

5. Elements of Staffing

There are four main elements of directing

  1. Supervision
  2. Motivation
  3. Leadership
  4. Communication

6. Supervision 

The supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organisation.
(i) Role of Supervisor
(a) Role of mediator or linking pin
(b) Role of a guide

7. Importance of a Supervision

  1. Facilitate Control
  2. Feedback
  3. Improve Motivation
  4. Discipline
  5. Optimum Utilisation of Resources
  6. Ensure Issuing Instructions
  7. Improve Communication

8. Motivation 

Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity. Motivation is a psychological term which means it can not be forced on employees.

9. Interrelated Teams of Motivation

  1. Motive
  2. Motivation
  3. Motivator

10. Characteristics of Motivation

  1. Motivation is a psychological phenomenon.
  2. Motivation produces goal-directed behaviour.
  3. Motivators can be positive as well as negative.
  4. Motivation is a complex process.
  5. Motivation is a dynamic and continuous process.

11. Process of Motivation

  1. Unsatisfied need
  2. Tension
  3. Drive
  4. Search Behaviour
  5. Satisfaction need
  6. Reduction of tension

12. Importance of Motivation

  1. Motivation helps change the negative attitude to positive attitude.
  2. Motivation improves the performance level of employees.
  3. Helps in achieving the organisational goal.
  4. Motivation creates a supportive work environment.
  5. Motivation helps the managers to introduce changes.
  6. Reduction in employees turnover.

13. Need Hierarchy

Theory or Maslow’s Need Hierarchy theory Need or the desire is a very important element in motivation because the employees get motivated only for their needs.
Maslow has given a sequence or hierarchy of needs in the follows way
(i) Physiological needs
(ii) Safety and security needs
(iii) Social or belonging needs
(iv) Esteem needs
(v) Self-actualisation needs

14. Assumptions of Maslow’s Need Hierarchy Theory

(i) Behaviour of people depends upon their need. Human behaviour can be changed or motivated by fulfilling their needs.
(ii) Generally, the needs follow the hierarchy i.e ., starting from physiological need.

15. Financial and Non-Financial Incentives 

Incentive means all measures which are used to motivate people to improve performance. These incentives may be broadly classified
(i) Financial Incentives The reward or incentive which can be calculated in terms of money is known as the monetary incentive.
The common monetary incentives are
(a) Pay and allowances
(b) Profit sharing
(c) Co-Partnership/stock option
(d) Bonus
(e) Commission
(f) Suggestion system
(g) Productivity linked to wage incentives
(b) Retirement benefits
(i) Perks/Fringe benefits/perquisites
(ii) Non-Financial Incentives The incentives which cannot be calculated in terms of money are known as non-financial incentives.
The common non-financial incentives are
(a) Status
(b) Organisational climate
(c) Career advancement
(d) Job enrichment
(e) Employees recognition
(f) Job security
(g) Employee’s participation
(h) Autonomy/Employee empowerment

16. Leadership 

It is a process of influencing the behaviour of people at work towards the achievement of the specified goal.
(i) Features of Leadership
(a) It indicates the ability of an individual to influence others.
(b) It tries to bring change in behaviour.
(c) It shows the interpersonal relationship between leader and followers.
(d) It is to achieve the common goal.
(e) It is a continuous process.17. Different Styles of Leadership
(i) Autocratic or Authoritative Leadership

17. Different Styles of Leadership

(i) Autocratic or Authoritative Leadership
(ii) Democratic or Participative Leadership
(iii) Free-rein or Laissez-Faire Leadership

18. Importance of Leadership

(i) Helps in inspiring and guiding the employees.
(ii) Secures co-operation of the members of the organisation.
(iii) Creates confidence.
(iv) Improves productivity.
(v) Improves job satisfaction.
(vi) Improves team-spirit group cohesion.

19. Qualities of a Good Leader

(i) Physical qualities
(ii) Knowledge, intelligence and scholarship
(iii) Integrity and honesty
(iv) Self-confidence and a sense of responsibility
(v) Initiative
(vi) Communication skill
(vii) Decisiveness
(viii) Social skill

20. Communication 

It can be defined as transmission or exchange of ideas, views message information or instruction between two or more persons by different means.

21. Communication Process


22. Importance of Communication

  1. Act as the basis of co-ordination and co-operation
  2. Act as the basis for decision making
  3. Increase managerial efficiency
  4. Establish effective leadership
  5. Helps in process of motivation and moral development
  6. Helps in the smooth working of an enterprise
  7. Promoter co-operation and peace

23. The form of Organisational Communication

(i) Formal Communication It refers to official communication taking place in the organisation. According to the direction of flow, formal communication can be divided into four types
(a) Downward communication
(b) Upward communication
(c) Horizontal communication
(d) Diagonal communication
Common Networks of formal communication are
(a) Wheel pattern
(b) Chain pattern
(c) Circle pattern
(d) Channel or free flow pattern
(e) Inverted’V
(ii) Informal Communication Informal communication between different members of the organisation who are not officially attached to each other is known as Informal communication.
Common networks of informal communication are
(a) Gossip
(b) Clusters
(c) Single strand
(d) probability

24. Methods of Communication

  1. Oral communication
  2. Written communication

25. Barriers to Effective Communication

(i) Semantic Barrier
(a) Badly expressed message
(b) Symbols with different meanings
(c) Faulty translation
(d) Unclarified assumption
(e) Technical jargon
(f) Body language

(ii) Psychological Barrier
(a) Premature evaluation
(b) Lack of attention
(c) A loss by poor retention
(d) Distrust

(iii) Organisational Barrier
(a) Organisational policy
(b) Rules and regulations
(c) Status difference
(d) Complex organisation

(iv) Personal Barriers
(a) Lack of confidence
(b) Lack of incentives
(c) Fear of authority

26. Improving Effective Communication

  1. Clarify the idea
  2. Consult others
  3. Use of proper language
  4. Proper feedback
  5. Communication for the present as well as for future
  6. Follow up
  7. Good listener
  8. Open mind
  9. Completeness of message

We hope the given CBSE Class 12 Business Studies Notes Directing will help you. If you have any query regarding NCERT Class 12 Business Studies Notes Directing , drop a comment below and we will get back to you at the earliest.

Class 12 Business Studies Notes

Nature and Significance of Management

Principles of Management

Business Environment






Financial Management

Financial Market


Consumer Protection

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