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CBSE Class 12 Commerce Business Studies Unit 7 Directing  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 7 Directing : CBSE is a renowned educational Board, which comes under the Union Government of India. This eminent board was formed in 1952 and associated with the Board of High School and Intermediate Education, Rajputana. Ajmer, Gwalior, Merwara and Central India were included in the administrative territory of this board along with the other places including Bhopal, Ajmer and Vindhya Pradesh. From 1952 onwards, it has been providing a standard education and robust learning environment to all. The Central Board of Secondary Education or CBSE is a prestigious board of education and it provides affiliation to public and private schools. Apart from this, all Jawahar Navodaya Vidyalayas and kendriya vidyalayas are affiliated to this board.

CBSE Class 12 Commerce Business Studies Unit 7 Directing  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 7 Directing : Here our team members Provides CBSE Class 12 Commerce Business Studies Unit 7 Directing Complete notes in pdf format. CBSE Class 12 Commerce Business Studies Unit 7 Directing Included some topics those are given bellow :

Unit 7: Directing

  • Concept and importance
  • Elements of Directing: – Supervision – concept, functions of a supervisor.; – Motivation – Concept, Maslow’s hierarchy of needs; Financial and non-financial incentives.; – Leadership – concept, styles – authoritative, democratic and laissen faire.; – Communication – concept, formal and informal communication; barriers to effective; communication, how to overcome the barriers.

Download here CBSE Class 12 Commerce Business Studies Unit7 Directing  Complete Notes In PDF Format

CBSE Class 12 Commerce Business Studies Unit 7 Directing  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 7 Directing : Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals.

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CBSE Class 12 Commerce Business Studies Unit 7 Directing : Directing means giving instructions, guiding, counselling, motivating and leading the staff in an organisation in doing work to achieve Organisational goals. Directing is a key managerial function to be performed by the manager along with planning, organising, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior – subordinate relations exist. Directing is a continuous process initiated at top level and flows to the bottom through organisational hierarchy.It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.

Direction has following elements:

• Supervision
• Motivation
• Leadership
• Communication

(i) Supervision– implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

(ii) Motivation– means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

(iii) Leadership– may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

(iv) Communications– is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

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CBSE Class 12 Commerce Business Studies Unit 7 Directing :

Direction has got following characteristics:

1. Pervasive Function – Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates.

2. Continuous Activity – Direction is a continuous activity as it continuous throughout the life of organization.3. Human Factor – Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important.

4. Creative Activity – Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless.

5. Executive Function – Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only.

6. Delegate Function – Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.

CBSE Class 12 Commerce Business Studies Unit 7 Directing :

Nature and Characteristics of Directing

Directing is characterized by the following distinguishing features:

1. Element of management. Directing is one of the important functions of management. It is through direction that management initiates action in the organization.

2. Continuing function. Direction is continuous process and it continues throughout the life of an organization. A manager never ceases to guide, inspire and supervise his subordinates. A manager can not get things done simply by issuing orders and instruction. He must continually provide motivation and leadership to get the orders and instructions executed.

3. Pervasive function. Direction initiates at the top and follows right up to the bottom of an organization. Every manager in the organization gives direction to his subordinates as superior and receives direction as subordinates from his superior. Direction function is performed at every level of management and in every department of the organization.

4. Creative function. Direction makes things happen and converts plans into performance it is the process around which all performance revolves. Without direction, human forces in an organization become inactive and consequently physical factors become useless. It breathes life into organization.

5. Linking function. Planning, organizing and staffing are merely preparation for doing the work and work actually starts when managers perform the directing function. Direction puts plans into an action and provides performance for measurement and control. In this way, directing serves as a connecting link between planning and control.

6. Management of human factor. Direction is the interpersonal aspects of management. It deals with the human aspect of organization. Human behavior is very dynamic and is conditioned by a complex of forces about which not much is known. Therefore, direction is a very difficult and challenging function.

Principles of Directing

Directing is a complex function as it deals with people whose behaviour is unpredictable. Effective direction is an art which a manager can learn and perfect through practice. However, managers can follow the following principles while directing their subordinates.

1. Harmony of objectives. Individuals join the organization to satisfy their physiological and psychological needs. They are expected to work for the achievement of organizational objectives. They will perform their tasks better if they feel that it will satisfy their personal goals. Therefore, mar agreement should reconcile the personal goals of employees with the organizational goals.

2. Maximum individual contribution. Organizational objectives are achieved at the optimum level when every individual in the organization makes maximum contribution towards them. Managers should, therefore, try to elicit maximum possible contribution from each subordinate.

3. Unity of command. A subordinate should get orders and instruction from one superior only. If he is made accountable to two bosses simultaneously, there will be confusion, conflict, disorder and indiscipline in the organization. Therefore, every subordinate should be asked to report to only one manager.

4. Appropriate techniques. The manager should use correct direction techniques to ensure efficiently of direction. The technique used should be suitable to the superior, the subordinates and the situation.

5. Direct supervision. Direction becomes more effective when there is a direct personal contact between the superior and his subordinates. Such contact improves the morale and commitment of the employees. Therefore, whenever possible direct supervision should be used.

6. Managerial communication. A good system of communication between the superior and his subordinates helps to improve mutual understanding. Upwards communication helps a manager to understand the subordinates to express their feeling.

Motivational Concepts

Concept of Motivation:-

Technically, the term motivation can be traced to Latin word Movere, which means ‘to move’. In order to understand the concept of motivation, we have to examine three terms: motive, motivating and motivation and their relationship.


Based on the Latin word Movere, motive (need) has been defined as follows: according to Bernard Berelson and Garry A. Steiner, ” A motive is an inner state that energizes, activates, or moves (hence motivation), and that directs behavior towards goals.”

Motive has also been defined by Fillmore H. Sanford and Larence S. Wrights man as, “A motive is restlessness, a lack, a yen, a force. Once in the grip of a motive an organism does something to reduce restlessness, to remedy the lack, to alleviate the yen, to mitigate the force.”

Here, we can differentiate between needs and wants. While needs are more comprehensive and include desires- both physiological and psychological, wants are expressed in narrow sense and include only those desires for which a person has money and also the desire to spend the money to satisfy the wants. There are many psychological needs, like social needs, recognition needs etc. which does not fall under the category of wants.


Motivating is a term which implies that one person (in the organizational context, a manager) includes another, (say, employee) to engage in action (work behaviour) by ensuring that a channel to satisfy the motive becomes available and accessible to the individual. In addition to channelizing the strong motives in a direction that is satisfying to both organization and employees, the manager can also activate the latent motives in individuals and harness them in a manager that would be funtional for the organization.


While motive is energizer of action, motivating is the channelization and activation of motives, motivation is the work behavior itself. Motivation depends on motives and motivating, therefore, it becomes a complex process. For example, Dublin has defined motivation as follows: “Motivation is the complex force starting and keeping a person at work in an organization. Motivation is something that moves a person to action, and continues him in the course of action already initiated.”

According to McFarland, “Motivation refers to the way in which urges, drives, desires, aspirations, striving, or needs direct, control, or explains the behavior of human beings.”

The Incentive Theory of Motivation

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. Motivation comes from two things: you, and other people. There is extrinsic motivation, which comes from others, and intrinsic motivation, which comes from within you.

Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to the person; for example, praise or money. Intrinsic rewards are internal to the person; for example, satisfaction or a feeling of accomplihment.

Some authors distinguish between two forms of intrinsic motivation: one based on enjoyment, the other on obligation. In this context, obligation refers to motivation based on what an individual thinks ought to be done. For instance, a feeling of responsibility for a mission may lead to helping others beyond what is easily observable, rewarded, or fun.

A reinforcer is different from reward, in that reinforcement is intended to create a measured increase in the rate of a desirable behavior following the addition os something to the environment.

Intrinsic motivation

Intrinsic motivation occurs when people engage in an activity, such as a hobby, without obvious external incentives. This form of motivation has been studied by social and educational psychologists since the early 1970s. Research has found that it is usually associated with high educational achievement and enjoyment by students. Intrinsic motivation has been explained by Fritz Heider’s attribution theory, Bandura’s work on self-efficacy, and Ryan and Deci’s cognitive evaluation theory. Students are likely to be intrinsically motivated if they:

• attribute their educational results to internal factors that they can control (e.g. the amount of effort they put in),

• believe they can be effective agents in reaching desired goals (i.e. the results are not determined by luck),

• are interested in mastering a topic, rather than just rote-learning to achieve good grades.

In knowledge-sharing communites and organizations, people often cite altruistic reasons for their participation, including contributing to a common good, a moral obligation to the group, mentorship or ‘giving back’. In work environments, money may provide a more powerful extrinsic factor than the intrinsic motivation provided by an enjoyable workplace.

In terms of sports, intrinsic motivation is the motivation that comes from inside the performer. That is, the athelete competes for the love of the sport.

Extrinsic motivation

Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations.

In sports, the crowd may cheer the performer on, and this motivates him or her to do well. Trophies are also extrinsic incentives. Competition is often extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity.

Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation.

CBSE Class 12 Commerce Business Studies Unit 7 Directing  Complete Notes

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