Business Studies M.C.Q (1 Marks)

Abraham Maslow gave the need hierarchy theory of motivation. His theory was based on the argument that within each individual there lies five basic needs that can be put in hierarchical order. Starting from the most primary ones, the order of hierarchy was stated as physiological needs, security needs, belongingness needs, esteem needs and actualisation needs.

The highest level need in the need Hierarchy of Abraham Maslow is self actualization need. This need of an individual refers to achieving what one aims or aspires. For an employee in an organisation, such needs relate to growth, work satisfaction, etc.

The communication network in which all subordinates under a supervisor communicate through supervisor only is wheel communication network. In a wheel network, the supervisor is at the centre of the communication network (wheel). The subordinates cannot communicate among themselves, rather they need to communicate through the supervisor.

The communication that takes place between individuals working at the same level is called horizontal communication.

Status comes under organisational barriers. Organisational barriers refer to those barriers in the communication that are related to structure of the organisation, hierarchical relationships in the organisation, rules and policies. Sometimes status of an individual in the company in terms of profile, authority, etc. instills a feeling of superiority (or inferiority) in him. Such a psychology acts a barrier in free flow of communication in the organisation.

The process of converting the message into communication symbols is known as encoding. The communication symbols in the process of encoding can be in the form of pictures, gestures, etc.

Single chain network is a formal communication channel in which superior communicates with every subordinate in a single line.

Financial incentives are in direct monetary form and used to motivate employees for better performance. In stock option, employees are offered shares of the company at a price lower than the market price. This gives a feeling of ownership to the employees, which motivates them.

Communication is a process wherein ideas, feelings, facts, etc. are exchanged among people. Decoding, channel and receiver are elements of communications. Channel refers to the path through which the message in the form of encoded symbols from the sender is transferred to the receiver. Before the message is received by the receiver, the encoded symbols must be converted. This process of converting the encoded symbols is known as decoding. On the other hand, receiver refers to the person who actually receives the message.

Integrity means the quality of being honest and having strong moral principles, values and ethics. A leader should possess high level of integrity and honesty, so that he can be a role model to others.

Informal communication is known as grapevine. This is because informal communication spreads throughout the organisation in all directions without following the formal path of communication.

Stock incentive is a kind of financial incentive. It is a direct monetary incentive wherein the employee is offered the shares of the company at a price lower than the market price. The other three options as given in the question, that is, promotion, job security and employee participation are non-financial incentives that focus on psychological and social needs of the employees.

Narayana Murthy was the founder of the software company 'Infosys'. He started Infosys in the year 1981 and in 2002 it was a global IT company. Narayana Murthy was the CEO of Infosys for two decades before he retired from the post in 2002. Under the leadership of Murthy, Infosys reached unimaginable heights and is today among the biggest exporters of software from India.

Through effective directing, managers bring changes in the organisation, it is the workers who in fact restricts changes.

Apart from basic salary, some companies offer fringe benefits and perquisites to employees, e.g. perk like rent free accommodation, education of children, car, medical allowance, etc to motivate their staff.

Directing.

Supervisor is the person who is in touch with the workers directly. He acts as a link between management and workers.

Delegation is not an element of directing, rather, it precedes directing. Direction refers to a process where employees of an organisation are instructed, motivated and guided to achieve certain goals and objectives. Motivation, communication and supervision are elements of direction.