Business Studies 3 Marks Question

Yes, autocratic style of leadership is appropriate, where the subordinates are uneducated because here the leader gives orders which are to be obeyed.Advantages of autocratic style of leadership are:

1. Autocratic style permits quick decision-making.
2. It provides strong concentrated powers to leader.
3. This style may yield positive results when great speed is required.

Leadership is the process of influencing people to strive willingly for the attainment of objectives. Features of leadership are:

1. It indicates ability of an individual to influence others.
2. It tries to bring change in the behaviour of others.
3. It is a continuous process.

Facilitates Control: Under supervision, supervisor keeps a close eye on his subordinates. Wherever he finds any flaws in the work-in-progress, he rectifies them then and there itself. From time to time deviations are noted by comparing actual work performance and the desired work performance. Corrective measures are taken if the need is felt. In this manner, supervision assures control.

'Noise' is the disruption interference in communication process anywhere along the way. It is also called barrier to effective communications. It can occur at any point in the communication process. Noise can be the sound of someone coughing, a truck driven by, or two people talking close at hand. It can also include disruptions such as a letter being lost in the mail, a telephone line going dead or one of the participants in a conversation being called away before the communication process is completed. This hindrance may be caused to sender, message or receiver.

Difference between Managership and Leadership:

S. No.	Basis of Difference	Managership	Leadership
1.	Basis of Existence	Organised group (or formal organisation).	Unorganised group or informalorganisation.
2.	Focus	Attainment of the objectives of the organisation.	To satisfy the expectations andaspirations of the followers.
3.	Authority	Formal authority.	Informal authority. The followersthemselves allow leader the authority to give orders and to lead them.

1. It is a universal activity performed at all levels of management.
2. It is an important part of the directing function of management.
3. It is a continuous process since supervision is required at all times.

Difference between Monetary and Non-monetary Incentives:

S. No.	Basis of Difference	Monetary Incentives	Non-monetary Incentives
1.	Measurement	These cannot be measured in terms of money.	These can be measured in terms of money.
2.	Suitability	These are effective in case ofmanagers.	These are highly effective in case of workers.
3.	Level of Satisfaction	These help in satisfying lower level needs (food, clothing and shelter).	These help in satisfying higher level needs (esteem, status and selfactualisation).

Advantages of free-rein leadership are:

1. It provides maximum scope for development of subordinates.
2. Full utilisation of the potential of subordinates.

Disadvantages of free-rein leadership are:

1. Subordinates do not get the support of leaders.
2. Subordinates move in different directions as there is lack of guidance.

Yes, I agree with the given statement. Supervision is an important function in an organisation because of the following reasons:

1. A supervisor maintains day-to-day contact and friendly relations with workers.
2. He sorts out the differences among workers and maintains group unity in the organisation.
3. He acts as a link between workers and managers.

Yes, leadership is the most important element of directing as it helps in influencing the behaviour of others for the accomplishment of goals.Importance of leadership can be explained as follows:

1. Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation.
2. A leader maintains personal relations and helps his followers in fulfilling their needs. He provides needed confidence, support and encouragement to subordinates.
3. A leader plays a key role in introducing required changes in the organisation. He persuades and inspires the subordinates to accept changes.

There are two types of employees from the point of view of motivation-laborious and shirkers. Those employees who are laborious in the true sense of the word are encouraged with some awards. This is called positive motivation. On the other hand, those workers who are by nature shirkers are encouraged to work with the threat of demotion, suspension or termination. Such people start working because of the fear factor. This is called negative motivation.

Supervisor is a managerial position in the organization hierarchy at the operative level i.e, immediately above the function of the worker. Supervisor plays a vital role as he is the only person who is directly related to the workers.
Importance of the supervisor:

• Supervisor maintains day-to-day contact and maintains friendly relation with the workers. A good supervisor act as a guide, friend and philosopher to the workers.
• Supervisor acts as a link between workers and management. He conveys management ideas to the workers on one hand and workers problems to the management.
• Supervisor plays a key role in maintaining group unity among workers placed under his control. He sorts out internal differencesand maintains harmony among workers.
• Supervisor provides good on the-job training to the workers and employees. A skilled and knowledgeable supervisor can build efficient team of workers.

Supervision refers to monitoring the progress of work of one’s subordinates and guiding them properly. The word ‘supervision’ is formed by joining two words ‘super’ and ‘vision’. The former means best and the latter means view. Hence, the literal meaning of supervision is best view, i.e., maintaining the best view possible on the work of one’s subordinates. Supervision includes both looking into the work of subordinates as well as guiding them properly.

It is important to distinguish between two almost similar words-‘Managing’ and ‘Directing’. ‘Managing’ is a wide concept and under it, apart from ‘directing’, the functions like planning, organising, staffing, and controlling are included. On the other hand, ‘Directing’ is a limited concept and is only a part of the managing. It is, therefore, clear that if some manager is full of the quality of directing, he can prove to be an effective manager but other managerial functions too shall have to be completed.

In the given situation what is required is providing motivation to the employees. The supervisor must motivate the employees and encourage them to perform to the best of their capabilities. He must identify the needs and requirements of the workers. In other words, the cause for the unwillingness to work must be identified and worked upon. For motivation various financial incentives such as bonus and profit sharing or non-financial incentives such as work enrichment and position can be used.

Autocratic style of leadership is possessed by Rahul.
As per this style of leadership, a leader exercises complete control over his subordinates. He centralises power in himself and takes all decisions without consulting the subordinates. He dominates and drives his group through coercion and command.

S. No.	Basis of Distinction	Upward Communication	Downward Communication
1.	Meaning	It refers to the flow of communication from a subordinate to his superior in the hierarchy.	It refers to the flow of communication from a superior to his subordinates in the hierarchy.
2.	Purpose	Its purposes include to inform management about: (i) The progress of work. (ii) The performance of subordinates. (iii) Problem in relation to work etc.	It purposes include to inform about organisational plans and policies, orders and instructions, roles and procedures etc.
3.	Speed	Very Fast.	Slow.

Noise is the hindrance in the process of communication. It creates hurdle in the way of conversation. It can take place at any step in the communication process. Its main examples are:

1. Use of ambiguous symbols in encoding.
2. Telephone line going dead.
3. An inattentive receiver.
4. Understanding wrong meaning of the message.

Communication between Hema and Reema is informal communication.Advantages of informal communication are:

1. It helps individuals to communicate on matters, which cannot be transmitted through the formal communication.
2. It enables the employees to develop friendly relations and get social satisfaction. It satisfies their urge to know, what is happening in the organisation.

Disadvantages of informal communication are:

1. It tends to be unsystematic, irregular and untimely. It is neither reliable nor predictable.
2. It is not easy to fix responsibility for actions taken on the basis of informal communication. The origin of such communication in not easily traceable.

1. Development of democratic values.
2. Coordination espirit.
3. Efficient and effective leadership.
4. Mental revolution.

It refers to psychological barriers:

1. Premature evaluation: If a person has pre-conceived notions against the communication, then he will evaluate the meaning of message before the sender completes his message.
2. Loss by transmission and poor retention: Successive transmission of the message results in inaccurate information. Usually people cannot retain the information for long time if they are inattentive or not interested.
3. Lack of attention: Non-listening of message due to pre-occupied mind of the receiver acts as a major psychological barrier.

“The cycle company offered him a permanent pensionable job”. According to above line Rahim is able to fulfil his following needs:

1. Physiological Needs.
2. Safety or Security Needs.

This type of communication is Horizontal Communication. In Horizontal communication, two departmental heads communicate with each other. Flow of communication between persons holding position at the same level of the organisation is known as horizontal communication. This type of communication becomes necessary to coordinate different activities or to resolve interrelated problems of two or more departments.

1. Co-partnership (under financial incentive): Under this system, employees share the capital as well as profits. The workers get their usual wages, a share in the profits of the company and a share in the management of the company as well. When co-partnership operates with profit sharing, the employees are allowed to leave their bonus with the company as shares (bonus shares).
2. Profit sharing: It is often discussed that labour, being the live factor in production is entitled to share in the surplus earned by his firm. Employers often use this device to extort their loyalty and reduce the influence of trade unions. This provides group incentive to the workers for higher productivity and greater profitability.

1. Encouragement to rumors.
2. Difficulty in fixing the responsibility.
3. Not possible to obtain objective at time.

1. Upward communication.
2. Downward communication.
3. Horizontal or lateral communication.

1. Supervision: It refers to monitoring the progress of work of one’s subordinates and guiding them properly.
2. Leadership: It refers to influencing others in such a manner to do what the leader wants them to do.
3. Communication: It refers to an art of transferring ideas, facts, feelings, etc. from one person to another and making him understand them.

The importance of direction is highlighted through the following facts:

1. It initiates action: The employees are appointed up to the first three functions of management (planning, organising and staffing). But they cannot commence their job until they are not informed about what to do? and how to do? The manager performs this job through direction. Thus, it is evident that it is direction which initiates action in an organisation.
2. It integrates employees efforts: Many employees work in an organisation. The activities of all are co-related. Success of an organisation is possible only when everybody does their job efficiently. If any one of employees in the employees-chain does not perform up to the mark, it adversely affects the performance of the remaining employees. Thus, it is essential to establish coordination among all the activities. The manager establishes this coordination by supervising, providing good leadership, motivating and exchanging ideas with his subordinates.
3. It is the means of motivation: The objectives of an organisation can only be achieved by motivated employees. Motivated employees work with full dedication and with a feel of belongingness. Now the question is: how can the employees be motivated? The work of motivating employees can be accomplished through the Directing function of management.

1. Noise means some obstructions or hindrance to communication.
2. This hindrance may be caused to sender, message or receiver.

Some examples of noise are:

1. Ambiguous symbols that lead to faulty encoding.
2. A poor telephone connection.
3. An inattentive receiver.
4. Faulty decoding (attaching wrong meanings to message).
5. Prejudices obstructing the poor understanding of message.
6. Gestures and postures that may distort the message.

No, I do not agree with this statement as directing is the most important function of management.It is also known as management-in-action. In support of my answer, I can give the following reasons:

1. It Initiates Action: The employees are appointed up to the first three functions of management (planning, organising and staffing). But they cannot commence their job until they are not informed about what to do and how to do. This job manager performs through direction. Thus, it is evident that it is direction which initiates action in an organisation.
2. It Integrates Employee's Efforts: Many employees work in an organisation. If any one of employees in the employees’-chain does not perform up to the mark, it adversely affects the performance of remaining employees. Thus, it is essential to establish coordination among all the activities. Manager establishes this coordination by supervising, providing good leadership, motivating and exchanging ideas with his subordinates.

The differences between monetary and non-monetary incentives are:

S. No.	Monetary	Non-monetary
1.	These incentives are those in terms of which are provided to money.	These incentives are those which are provided satisfy the social and psychological needs.
2.	These incentives include co-partnership, bonus, profit sharing.	These incentives include job security, status, promotion, recognition, etc.