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Class 12 Directing: cheat sheet
CBSE Business Studies. Directing people at work: supervision, motivation, leadership and communication, Maslow’s need hierarchy, incentives, leadership styles, and communication networks and barriers.
Key ideas
- Directing is instructing, guiding, communicating and inspiring people; it starts action, happens at every level, is continuous and flows from top to bottom.
- Its four elements are supervision, motivation, leadership and communication.
- Maslow’s needs, lowest first: physiological, safety, affiliation, esteem, self-actualisation; a satisfied need no longer motivates.
- Financial incentives: pay and allowances, productivity linked wage incentives, bonus, profit sharing, co-partnership or stock option, retirement benefits, perquisites.
- Non-financial incentives: status, organisational climate, career advancement, job enrichment, recognition, job security, participation and empowerment.
- Leadership styles: autocratic (the leader decides alone), democratic (decides with subordinates) and laissez faire (subordinates decide for themselves).
- Formal communication follows the chain of command (single chain, wheel, circular, free flow, inverted V); informal communication is the grapevine.
- Barriers are semantic, psychological, organisational and personal; clear ideas, suitable language, feedback and good listening overcome them.
Remember
| Productivity linked incentive | (units made − target) × rate per extra unit; nothing if the target is not passed |
| Profit share per employee | share% of profit ÷ number of employees |
| Motive vs motivator | an inner urge vs the technique used, such as pay or recognition |
| Semantic barrier | badly expressed message, wrong translation, technical jargon |
| Psychological barrier | premature evaluation, lack of attention, distrust |
| Employee stock option | shares offered to employees below the market price |
Watch out
- Paying the incentive on every unit instead of only the units above the target.
- Listing recognition or job enrichment as a financial incentive.
- Putting esteem below safety in Maslow’s order.
Worked example
Under a productivity linked wage incentive, a worker gets ₹5 for every unit above a target of 270 units a week. This week he made 305 units. How much incentive does he earn?
Working: (305 − 270) × 5
Answer: ₹175
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