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directing class 12


Today we are going to discuss the new chapter of business studies CBSE class 12 that is Directing. With videos, Notes, Case Studies, and more.

Also, we are going to give you study notes, video lectures, and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.

Directing Class 12

In this chapter we will cover following topics:

  1. What is Directing?
  2. Features/Characteristics
  3. Importance of Directing
  4. Elements of directing
  5. Marshmallow hierarchy theory
  6. Financial incentive
  8. Barriers to effective communication
  9. Improving communication effectiveness
  10. Leadership
  11. Features of leadership
  12. Styles of leadership

What is Directing?

Directing is the process of supervising, motivating, communicating and guiding (leadership) employees to achieve organisational goals.

Performance is the essence of directing.


1. Directing initiates actions: Therefore we start implementation of the planned actions in real world.

2. Continuous Process: Its a never ending process.

3. Directing takes place at every level: Hence it’s a pervasive function.

4. Directing flows from top to bottom: It means superior directs their subordinates.

5. Directing is performance oriented: It means whatever we plan , we implement it in real world.

6. Directing is a human element: It says it works only on human.

Importance of Directing

1. It initiates actions: It means whatever we think, we implement that in real life.

2. Integrates employees efforts: Every single individual effort is directed towards the achievements of organisational goals.

3. It’s a means of motivation: It says directing motivates employees which helps them in doing work more effectively and efficiently for the organisation.

4. Bring stability and balance in the organisation: It means it eradicates the difference between employees and management.

Hence it establishes a balance among them which helps in achieving organisational goals.

5. Facilitates changes: Sometimes employees resists changes then through directing subordinates are make them understand that directing is good for them only.

Elements of directing

1. Supervision:

Company keeps a supervisor whose work is to observe, monitor and guide employees while they are performing the job.

Importance of supervision

(a) It ensures issuing of instructions.

(b) It facilitates central control.

(c) It ensures optimum utilization of resources.

(d) It ensures day to day contact with the workers which leads to discipline.

(e) Supervisor maintains group unity. Hence it eradicates disputes between them which leads to harmony.

(f) It takes feedback from the employees and hence solves their problems.

(g)Supervisor improves motivation. Therefore they work effectively and efficiently for the oprganisation.

(h) They provide on the job training to the employees.

2. Motivation

It is the process of stimulating, inspiring, inducing, and encouraging employees to accomplish the goal for performance improvement.

Importance/features of motivation

(a) Motivaton is an internal feelings: It cannot be forced on employees.

(b) Motivation produces goal directed behaviour: Motivated person need no direction works in desired manner.

(c) Motivation can be positive as well as negative.

(d0 It is a complex process. Therefore it’s difficult to judge the motivation level of employees and what will actually motivate someone.

(e) Motivation is a dynamic and continuous process.

3. Communication:

It means sharing of information between two or more individual so that both understand it in same sense.

It is the life blood of the organisation.

Process of communication

(a) Sender: Person who sends messages by speaking, writing, diagram or pictures and gestures with the help of media are known as sender.

(b) Encoding: Converting ideas white the help of media which sender wants to send are called encoding.

(c) Media: It is the medium through which encoded messages has been transmitted to the receiver.

(d) Decoding: It is the process of converting encoded messages into readable language.

(e) Feedback: It is the response of message to the sender.

(f) Noise: Obstacles in the communication process is called noise.

Types of communication

There’s two types of communication.

(a) Formal communication: Communication which follows unity of command are known as formal communication.

It’s of 4 types:

  • Upward: It is when a subordinate talk to the superior.
  • Downward: when a superior talks to the subordinate.
  • Horizontal: When people with the same rank talk to each other then its horizontal communication.
  • Diagonal: When a worker talks to the production manager then its diagonal communication.

Networks of formal communication

(I) Wheel pattern: In this pattern, all subordinates are under one superior. Hence superior works as a hub of the wheel and there’s no link between subordinates and other members.

(ii) Chain pattern: Here there’s a network between superior-subordinate where subordinate can communicate with his immediate superior only.

(iii) Circle pattern: In this pattern, person communicate with two adjoining person.

(iv) Free flow pattern: Here each person can communicate with others easily.

(v) Inverted V: In this pattern, subordinates can communicate with superior as well as superior’s superior.

(b) Informal communication: Communication which doesn’t follow unity of commands are called informal communication.

It’s of 4 types:

  • Gossip: when a person tells something to many then its called gossip.
  • Cluster: When two person who trust each other talks.
  • Single trend: When an individual communicates with others in a sequence then its called a single trend.
  • Probability: When people communicate with others randomly is called probability.

4. Leadership:

It is the process of influencing and leading behaviour of people.

Marshmallow hierarchy theory

(a) Basic requirement: Food, clothes and shelter, etc. Organisation provides salary, wages, etc to the employees to fullfil their basic needs.

(b) Safety for future: Theft, fire, sickness, etc. Organisation provides job security, insurance, etc to the employees to fulfil it.

(c) Friendship relation: Love, affection, etc. Organisation solves this problem with peer recognition.

(d) Esteem needs About name and fame in the society. Organisation solves this problem by giving promotion to the employees.

(e) Self actualisation need: and at last they will want to achieve their goals


1. Behaviour of people depends upon their needs.

2. Generally needs follow hierarchy.

3. A satisfied need can no longer motivate a person, only next higher level can motivate him.

4. A person moves to next higher level when lower need is satisfied.

Finanancial incentive

It means rewards which can be calculated in terms of money is known as financial incentives.

1. Pay and allowance: It says when employees will complete their task then he will be paid accordingly.

2. Profit sharing: Company fix their profit margin and when they gain extra profit then they distribute them among the employees.

3. Co-partnership/ stock option: Those employees who work good are made co-partners and sometimes give them shares of the company in low prices.

4. Bonus: Company give extra money to the employees for their good work.

5. Commission: Company give extra money i.e. Commission to the salesman for the extra sales.

6. Productivity linked wages incentives: Company pays more to the efficient workers and less to the inefficient workers.

7. Retirement benefits: Company provides pension to the employees after the retirement.

8. Perks/Fringe/Perquisites: Company provides loans without interest to the employees.


Awards which cannot be calculated in terms of money are known as non-financial incentives.

1. Status: Company offers status such as ranks, fame, etc to the employees which motivate them to work better.

2. Career advancement opportunity: Here the company provides promotion to the employees which encourage them.

3. Job enrichment: Company provides a variety of option to the employees.

4. Employees recognition programme: Here the company appreciate the efficient employees in front of others.

5. Job security: Company provides stability of personnel which makes employees feel stress-free about the job security and helps in them work efficiently.

6. Employee participation: Company invites employees in the white colour meetings which help in peer recognition.

7. Employees empowerment: Company provides power to the employees which makes them feel empowered.

Barriers to effective communication

1.Semantic barriers: It is depended on encoding and decoding .

(a) Badly expressed words: It includes lack of vocabulary, use of wrong words or omission of words.

(b) Symbols with different meanings: It means different meaning of words like principle and principal.

(c) Technical jargons: It means using technical words.

(d) Faulty translation: It means wrong translation of translator.

2.Psychological Barriers: It depends on mind.

(a) Premature evaluation: It means deriving conclusion before completion.

(b) Lack of attention: It means receivers don’t pay attention.

(c) Loss by transmission: When communication passes via various levels, this results in loss or filtration of information.

(d) Distrust:Receivers don’t give importance.

3.Organization Barriers: It depends on organization working.

(a) Organizational policy: It includes not free flow of communications which leads to barrier in communication.

(b) Rules and regulation: Some rigid rules leads to delay in communication.

(c) Status: Top or lower doesn’t believe in information.

(d) Complex in organizational structure: It leads to barrier in communication.

4. Personal barriers: It depends on superior-subordinate relation.

(a)Lack of confidence in superiors and subordinates: It means there’s no confidence and trust.

(b) Lack of proper incentives: It means no incentives for communications, so no subordinate will give suggestions.

(c) Fear of authority: Free flow of communication doesn’t happen.

Improving communication effectiveness

1.Clarify ideas before communication: It says first clear our doubts what we want to say.

2. Communication according to the needs of receivers: It means we should select words according to the education level of receivers.

3. Be aware of language, tone and content of messages: Words, symbols, tones must be respectful and and should not affect the sentiments of receivers. Be respectful.

4. Consult after before communication: Advisible to consult others before communication.

5. Ensure proper feedback: It means we should response to sender.

6. Communication for the present as well as future: We should think about both present as well as future.

7. Follow up communication: To avoid hurdles and misunderstanding.

8. Be a good listener: We should pay attention to the words of senders.


It is the process of influencing and leading behaviours of people.

Features of leadership

1.It is continuous process.

2. It motivates to achieve common goals.

3. It has the ability to influence people.

It leads to the change in behaviour of people.

Styles of leadership

 MEANING Leaders themselves take all decisions. Hence they believe in their own idea. Leaders after taking suggestions from subordinate comes to the final decision. Leader allows subordinates to take decisions. Hence subordinate can take decisions at some extent decided by leader.
 Suitability Control- High
Error- No error
Workers (Employees)- Unexperienced
 Control- Flexible
Complex decisions
Workers (employees)- Experienced
 Control- low
Routine job
 Principles They follow harmony not discort.
Hence they don’t follow co-operation not individualism.
They follow every principle.They don’t follow any principle.
 ConceptCentralization of authority  Delegation of authorityDelegation and decentralization of authority.
 CommunicationOne way-downward communication
 Two way- upward and downward communication. Free flow
 Delegation of authority No delegation Positve motivation
e.g,- reward, etc.
 Self direction and self control
Motivation techniquesNegative motivation
e.g,- Fear, punish, etc
Delegation to same contentComplete delegation

So, Guys, we have finally over with this chapter.

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Business Vidya

Hello, my name is KUNAL LONHARE. I am an entrepreneur based in india. This is a blog and I am the founder of it, where I post how can a person acquire Good marks In academics without wasting any money for tuition fees.

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