[AHSEC Class 12, Business Studies Notes, Revised Syllabus, 2022 Exam, Directing]
Class 12 Business Studies Notes
Unit – 7:
Directing
OBJECTIVE QUESTIONS (1 mark)
1. Define the term ‘Directing’.
Ans: Directing is telling the people what to do and seeing that
they do it in best of their ability. This function of management is concerned
with guiding the employees in the organisation to achieve organisational goal.
2. State the elements of Directing. 2009, 2012, 2015, 2018
Ans: Supervision – Motivation – Leadership and communication.
(Details are given below)
3. State features of Directing.
Ans: a) It initiates action
b) It is a continuous function c) It flows from top to bottom d) It is
performance oriented e) It is a universal/pervasive function.
4. What is a motive?
Ans: Motive is an inner state or desire which energizes an
individual to move or behave towards achievement of goal.
5. Give two examples of ‘financial
incentives’.
Examples for financial Incentives — Pay, allowances productivity
linked wage incentives, Bonus, Retirement benefits, Co partnership, commission.
6. “Grapevine is associated with which
form of communication?
Ans: The network of informal communication is called grapevine.
7. Supervisors are part of which level
of management?
Ans: Lower level of management
8. What is grapevine? 2008, 2014
Ans: The network of informal communication is called grapevine.
9. Who Proposed the “Need theory of
Motivation”? 2008, 2014
Ans: Abraham Maslow
10. Give two examples of ‘non-financial
incentives’.
Ans: Examples of Non Financial Incentives - Status, organizational
climate, career advancement opportunity, job security etc.
12.
What is the highest level of need in Maslow’s need hierarchy theory’?
Ans: Self Actualisation
13. To which factor of production
directing is related?
Ans: Labour
14. Name the need which is satisfied
first of all.
Ans: physiological needs
15.
State the form of communication where official talks take
place.
Ans: Formal
communication.
16.
What is Downward Communication?
Ans: It is the flow of information from higher
authority to lower authority.
17. What is upward
communication?
Ans: Here the flow of information goes to higher
authority from subordinates.
18. What is a motive?
Ans: Motive is an inner state or desire which energizes an
individual to move or behave towards achievement of goal.
19. State two features of Leadership.
Ans: a) Leadership indicates the ability of an individual to
influence others. b) Leadership tries to bring a change in the behaviour.
20. What are the qualities of a good
leader?
Ans: Judgement skill, Initiative
21. What is autocratic leadership
style?
Ans: Autocratic or Authoritative leadership: An autocratic leader
exercises complete control over the subordinate. He centralises power in
himself and takes all decision without consulting the subordinates.
22. In which type of formal
communication are ‘orders’ included?
Ans: They are included in the downward communication.
23. Give two examples of positive and negative
motivation.
Ans: Positive motivation makes people willing to do their in the
best way they can and improve their performance. For example: Rewards and
incentives, promotion.
Negative motivation means the act of forcing employees to work by
means of threats and punishment. For example: demotion, dismissal,
transfer, penalties.
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ALSO READ (AHSEC ASSAM BOARD CLASS 12)
1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES
2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)
3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)
4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS
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LONG ANSWER QUESTIONS (3/5/8 Marks)
Q.1. What is directing? Discuss the
various Principles of Directing. 2015,
2018
Ans: Directing is telling the people what to do and seeing that
they do it in best of their ability. This function of management is concerned
with guiding the employees in the organisation to achieve organisational goal.
In the words of Koontz and O’Donnell,”Directing
is a complex function that includes all those activities which are designed to
encourage subordinates to work effectively and efficiently.”
Principles of Directing are given below:
a) Maximum Individual contribution: According to this principle,
directing must help every individual employee to contribute his Best towards
the achievement of organizational goal.
b) Harmony of objectives: Directing must ensure that the individual
goals of employees and that of organization do not conflict with each other.
Directing must aim at bringing harmony among them.
c) Unity of direction: There should be one head and one plan for a
group of activities having the same objective to have effective direction.
d) Unity of Command: According to this principle an employee should
receive orders from one boss only to avoid confusion. If there are more bosses
it can create problem amongst superiors.
e) Effective leadership: A manager must possess the qualities of a
good leader. He must guide his subordinates not only on work problems but also
on their personal problems.
f) Effective communication: To
have effective direction, it is very essential to have an effective
communication system which provides for free flow of ideas, information,
suggestions, complaints and grievances.
g) Follow through: Managers must continuously review whether the
instructions are being understood and followed by the employees or not.
Q.2. Mention the features and importance
of directing. 2011
Ans: Features
and Characteristics of directing
1) Directing
Initiates Action: Directing initiates organised and planned action and ensures
effective performance by subordinates. Other functions prepare a base or
setting of action i.e., how action has to be carried on the directing
initiates or starts action.
2) Dynamic
and Continuing Function: Directing is a dynamic and continuous process. A
manager cannot just rest after issuing orders and instructions. He has to
continuously guide, supervise and motivate his subordinates.
3) Universal
function: Directing is a pervasive function as it is performed by managers at
all levels and in all locations. All managers have to guide, motivate, lead,
supervise and communicate with their subordinates.
4) Directing
flow From Top to Bottom: Directions are given by managers to their
subordinates.
5) Human
elements: The directing function of management deals with relationships between
people working in an organisation. It creates co-operation and harmony among
the members of the group.
Importance
of Directing
1) To
Initiate Action: The employees in the organisation start working only when they
get instructions and directions from their superiors. In the directing function
the superiors direct the actions of employees toward the predetermined goals of
the organisation.
2) To
Integrate Employees’ Efforts: In the organisation numbers of employees are
working at different levels and in different job positions. The employees may
differ in their levels of authority and the type of job assigned.
3) Means
of Motivation: Directing function does not mean giving orders only but through
directions and instructions the superiors try to motivate the employees to
perform to their best ability.
4) Balance
in the Organisation: The directing function tries to create balance in the
organisation. Generally when the employees are working at different levels they
develop different attitudes and the balance between their attitudes is made by
directing function.
5) To
Facilitate Change: Generally the employees hesitate in accepting the changes
but through directing function the changes can be implemented more easily as
while giving directing the superiors guide the subordinates that the changes
are better for them also
Q.3. What is Supervision? Discuss in
brief the functions of a Supervisor (Importance of supervision). 08, 10, 11, 16, 2020
Ans: The word supervision is the combination of two words i.e.,
super+vision where super means over and above and vision means seeing. Thus,
supervision means overseeing the subordinates at work. supervision refers to
the direct and immediate guidance and control of subordinates in performance of
their task.
In the words of Davis,”Supervision is the
function of assuring that the work is being done in accordance with the plans
and instructions.”
Characteristics
of Supervision: The main characteristics of supervision can be
summed up as follows:
a) It is concerned with initiating action and
checking work while it is performed.
b) It aims at maximum utilisation of
resources.
c) It is a universal activity performed at all
levels of management.
d) It is a continuous process.
e) It is direct and immediate and involves
face to face contact between the supervisor and the subordinates.
Supervisor
performs the following important functions which help the organisation to
achieve objectives function of the supervisor:
a) Planning the work: The supervisor has to
determine work schedule for even and steady flow of work. If work is not
properly arranged and assigned among subordinates, it may cause frustration
among the subordinates.
b) Issuing orders: The supervisor issues
orders and instructions to the workers for achieving coordination. In the
absence of supervision, the subordinate may not understand his duties properly.
c) Providing guidance and leadership: The
supervisors lead the workers of his department. He fixes production targets for
them & provides them the necessary guidance for doing the work assigned to
them.
d) Motivation: The supervisor motivates his
subordinates by providing financial and non financial incentives. In the
absence of suitable incentives, the workers may lose interest in their work
which in turn reduces their inefficiency.
e) Controlling output: The supervisor controls
the performance of the workers by comparing their performance with the
standards. He also takes necessary action to ensure that production is done
according to the predetermined standards.
Q.4. What is Motivation? Explain its feature
and importance. 2012,
2013, 2014
Ans: Motivation is a process of stimulating people to action to
achieve desired goal. It is psychological term. It comes automatically from
inside the employees as it is the willingness to do the work.
In the words of Dubin,”Motivation is the
complex of force starting and keeping a person at work in an organisation.”
Features
of Motivation:
a) It is a psychological phenomenon which
generates within an individual.
b) Motivation can be positive or negative.
Positive motivation is done giving incentives, rewards or promotions. Negative
motivations are based on force or fear.
c) Motivation produces goal directed
behaviour.
d) Motivation is dynamic and continuous process.
e) Motivation is mainly based on needs.
Importance
of motivation within organisation is given below:
a) Motivation sets in motion the action of people: Motivation bridges
the gap between the ability to work and willingness to work. It enables the management
to secure the best utilization of physical and financial resources.
b) Motivation improves the efficiency of work performance: As
motivation builds the willingness to work among the employees, the persons work
with imitativeness thereby increasing their work performance.
c) Motivation leads to stability in the employees: Motivation helps
in reducing the labor turnover and absenteeism. It creates confidence among the
employees and secures their loyalty to the organization.
d) Helps in achieving the organisational goals: The motivated
employees always try to achieve the organisational goal and contribute their
best efforts for the realisation of organisational goals.
e) Motivation held the managers to introduce changes: Motivated
employees are always supportive and co-operative in accepting changes in the
organisation.
Q.5. State various types of needs that
govern human motivation according to Maslow. 2013,
2016
Ans: Understanding and influencing the human behaviour requires
understanding their needs. Need or the desire is a very important element in
motivation because the employees get motivated only for their needs and if the
needs are fulfilled completely then it is not possible to motivate the
employees. According to Abraham Maslow, need can be classified in the following
categories:
a) Physiological
needs: these needs include basic requirements for survival and maintenance of
human life. The common physiological needs are food, shelter and clothing.
b) Security
needs: Once the present day physiological needs are fulfilled then the people
start thinking about their future as they want to secure their future by making
sure that in future also they continue to satisfy their physiological needs.
Under safety and security there are two categories:
Ø Physical
security which means safety from illness, accident, fire etc.
Ø Economic
security which means having sufficient funds to meet the future physiological
needs and to come out of physical security threat.
c) Social
needs: It means the need for love, affection, companionship, friendship etc.
Once the people satisfy their physiological and safety needs then the social
need becomes more active and to fulfill the social needs.
d) Esteem
needs: These needs are related to the respect and recognition. When the above
three needs are satisfied then people start demanding respect for themselves in
a group. This need is more common in higher level employees.
e) Self
actualization: This need refers to realizing or reaching to the aim of your
life. Once the employee becomes what he wants to become it means satisfaction
of his actualization need. For example, need to grow, sense of fulfillment.
Assumptions
of Maslow’s Need Hierarchy Theory
a) Behaviour of people depends upon
their need. Human behaviour can be changed or motivated by fulfilling their
needs.
b) Generally the needs follow the
hierarchy i.e., starting from physiological need. As soon as needs on lower
levels are fulfilled, those on the next level will emerge and demand
satisfaction.
c) The whole organisation can be
motivated at a time.
d) People in different cultures are
motivated by the same basic needs.
e) Motivation is complex and unconscious
motives often underlie behaviour.
Q.6. State financial and non-financial
incentives. 2013, 2017
Ans: Financial or monetary Incentives: Incentives which are
directly or indirectly associated with monetary benefits are called financial
incentives. Examples for financial Incentives — Pay, allowances productivity
linked wage incentives, Bonus, Retirement benefits, Co partnership, commission.
Non Financial or non monetary Incentives:
Incentives which are not measurable in terms of money are called non-financial
incentives. Examples of Non Financial Incentives - Status, organizational
climate, career advancement opportunity, job security etc.
Q.7. Discuss five monetary/financial
Incentives.
Ans: The incentives that have a monetary and financial benefit are
called financial incentives. They are:
a) Profit sharing: It has been accepted that the profit earned by the
firm is also due to the effort put by the workers. So they have a full right to
receive a share in it. It is an effective incentive which satisfies the
workers.
b) Co-partnership: Under this system, employees share the capital as
well as the profits. It motivates them as they share the profits too.
c) Suggestion system: Valuable suggestions are accepted and the most
valuable ones are also rewarded with cash money.
d) Retirement benefits: Every employee wants his future to be
secured. The firm provides retirement benefits, pension, provident fund,
gratuity etc.
e) Perks: various perks such as housing, car allowance foreign trips
etc can be given to the managers to boost up his morale.
Q.8. State five non monetary
incentives.
Ans: (a) Job Enrichment:
It is a method of motivating employee by making the task to be performed
by him more interesting and challenging. The job in itself serves as a source
of motivation to the employee and brings out the best in him.
(b) Suggestion
System: It is a system where suggestions regarding the work procedure,
environments are solicited from employees. This increase their participation
& importance in the working of the enterprise and hence motivates them.
(c) Job security: Job Security refers to making the employee feel safe in his job
positions. He is not threatened by transfers or removal from service and hence
performs to the best of his abilities.
(d) Career advancement: Managers must provide
promotional opportunities to employees. Whenever there are promotional
opportunities employees improve their skill and efficiency with the hope that
they will be promoted to higher level.
(e) Status: By offering higher status or rank
in the organisation managers can motivate employees having self-actualization
need in them.
Q.9. Define Leadership. Mention its
importance? What are the essential qualities of a Leader? 2010, 2012, 2013,
2016
Ans: Leadership means influencing the behaviour of the people at
work towards realising the specified goals.
It is the ability to use non-coercive (no force) influence on the
motivation, activities and goals of others in order to achieve the objectives
of the organisation.
In the words of Koontz and O’Donnell,”Leadership
is the ability of a manager to induce subordinates to work with confidence and
zeal.”
Importance of Leadership:
a) Guides and inspires employees: Leadership helps in guiding and inspiring employees to perform
well and directs the potential abilities of the employees towards achieving the
desired goals.
b) Secures cooperation: Leadership
secures cooperation of employees by persuading them to cooperate and work
enthusiastically, confidently and diligently towards achieving the goals of the
organisation.
c) Creates confidence: By his exemplary conduct, a leader creates confidence, provides
psychological support and infuses spirit of enthusiasm in the employees.
d) Improves job satisfaction: Good working condition and support from managers in stressful
situation brings job satisfaction to the employee. Managers are considered good
only when they are able to motivate employees and provide them psychological
support.
e) Improves team spirit: The leadership helps in creating team-spirit by encouraging the
employee to share common goal and work collectively.
Qualities of a Leader:
a)
Physical Qualities: Good physical
features like height, weight, health and look of person attract an individual.
Healthy and smart leader can work hard and also induce his subordinates to work
hard.
b)
Judgement skills: A good leader should be able to examine problems in right perspective.
His judgement and decision making abilities should be superior to others.
c)
Communication skills: A good leader should be able to communicate the goals and procedures
of the organisation clearly, precisely and effectively to the subordinates.
d)
Integrity
and honesty: A leader must possess high level of integrity and honesty. He must
follow ethics and values then only he can expect his subordinate to be ethical
and honest.
e)
Listening skills: People tend to avoid a leader who does not listen. Hence a good leader
in one who can listen to other people’s problems.
f)
Initiative: A
leader must take initiative to grab the opportunities. He must have courage and
initiative to take bold decisions. He must take risk for the advantages of
organisation.
Q.10. Discuss various types of
leadership styles.
Ans: Types of Leadership styles:
a) Autocratic or Authoritative leadership: An autocratic leader
exercises complete control over the subordinate. He centralises power in
himself and takes all decision without consulting the subordinates.
b) Democratic or Participative leadership: Under this style leader
takes decisions in consultation and participation with employees. He delegates
and decentralizes the authority.
c)
Free-rein or laissez faire: This
style involves complete delegation of authority so that subordinates themselves
take decision.
d)
Paternalistic Style leader: This
style of leadership is based upon sentiments and emotions of people. A
paternalistic leader is like a father to these subordinates. He looks after the
subordinates like a father looks after his family.
Q.11. “All managers are leaders but
all leaders are not managers.” Considering this statement, distinguish between
Leadership and Management.
Ans: “Leadership and managership are two synonymous terms” is an
incorrect statement. Leadership doesn’t require any managerial position to act
as a leader. On the other hand, a manager can be a true manager only if he has
got the traits of leader in him. By virtue of his position, manager has to
provide leadership to his group. A manager has to perform all five functions to
achieve goals, i.e., Planning, Organizing, Staffing, Directing,
and Controlling. Leadership is a part of these functions. Leadership as a
general term is not related to managership. A person can be a leader by virtue
of qualities in him. For example: leader of a club, class, welfare association,
social organization, etc. Therefore, it is true to say that, “All managers are
leaders, but all leaders are not managers.”
Difference
between Leadership and Management
Basis |
Leadership |
Management |
Origin |
Leadership originates out of individuals
influence. |
Management originates out of official powers
and rights. |
Functions |
A leader is to motivate and guide his
followers. |
A manager has to plan, organize, direct and
control his employees. |
Necessity |
Leadership is not a necessity for an
organisation. |
Management is necessary for any organisation. |
Mutual relationship |
All the leaders are not the managers. |
All the Managers are leaders because he has
to influence the behaviour of subordinates working under him. |
Existence |
A leader exists in formal as well as
informal organisation. |
A manger exists only in formal organisation. |
Authority |
Leaders have informal authority arises due
to faith and trust of the group members. |
Managers have formal authority to influence
the behaviour of the employees. |
Followers/ Subordinates |
A leader has followers. |
A manager has subordinates. |
Q.12. Define Communication. Explain
its process and purpose.
Ans: Communication means exchange of messages between two or more
persons. These messages could mean idea, opinions, facts, information,
instructions and anything that conveys a meaning. These may be conveyed in
words, pictures, and actions or gestures.
In the words of Newman, Summer & Warren, “communication is an exchange of facts,
ideas, and opinions by two or more persons.”
According to Keith Davis, “Communication is the process of passing information and understanding
from one person to another.”
Process
of Communication
The process of communication is the inter
relationship between several independent components. It consists of a chain of
related actions and reaction which together result in exchange of information.
In order to understand the process of communication, it is necessary to
describe each of these components. A model of communication process is as
follows:-
1. SENDER
2. IDEATION
3. MESSAGE
4. INCODING
5. TRANSMISSION
6. RECEIVER
7. DECODING
8. BEHAV IOUR OF RECIEVER
9. FEEDBACK
1.
Sender: The sender is the first component
of the process of c communication. The sender may be a speaker, a writer or any
other person. He is the one who has a message and wants it to share it for some
purpose.
2.
Ideation: Ideation is the preliminary step in
communication where sender creates an idea to communicate. This idea is the
content and basis of the message to be communicated. Several ideas may generate
in the sender’s mind. The sender must identify, analyze and arrange the ideas
sequentially before transmitting them to the receiver.
3.
Message: Message is the heart of
communication. It is what the sender wants to convey to the receiver. It may be
verbal i.e. written or spoken or non verbal i.e. body language, space language,
etc.
4.
Encoding: To encode is to put an idea into
words. In this step the communicator organizes his ideas into a series of
symbols or words which will be communicated to the intended receiver. Thus the
ideas are converted into words or symbols. The words and the symbols should be
selected carefully, it should be understandable and most of all it should be
suitable for transmission and reception.
5.
Transmission: Next in the process of
communication is transmission of the message as encoded messages are
transmitted through various media and channels of communication connects the
sender and the receiver. The channel and media should be selected keeping in
mind the requirement of the receiver, the communication to be effective and
efficient the channel should be appropriate.
6.
Receiver: Receiver is the person or group
for whom the message is meant. He may be a listener, a reader or a viewer. Any
neglect on the part of the receiver may make the communication ineffective.
Receiver is thus the ultimate destination of the message. It the message does
not reach the receiver the communication is said to be incomplete.
7.
Decoding: Decoding means translation of
symbols encoded by the sender into ideas for understanding. Understanding the
message by receiver is the key to the decoding process. The message should be
accurately reproduced in the receiver’s mind. If the receiver is unable to
understand the message correctly the communication is ineffective.
8.
Behaviour of the receiver: It refers to
the response by the receiver of the communication received from the sender. He
may like to ignore the message or to store the information received or to
perform the task assigned by the sender. Thus communication is complete as soon
as the receiver responses.
9.
Feedback: Feedback indicates the result of communication.
It is the key element in the communication and is the only way of judging the
effectiveness of communication. It enables the sender to know whether his
message has been properly interpreted or not. Systematic use of feedback helps
to improve future message. Feedback, like the message could be oral, written or
non verbal. It has to be collected from the receiver.
Objectives/Purpose
of Communication: The main purposes of communication are stated
below:
a) To keep employees informed.
b) To provide employees with orders and
instructions in connection with their duties.
c) To express management’s interest in its
personnel.
d) To reduce or prevent labour turnover.
e) To make each employee interested in his
respective job and in the work of the company.
Q.13. Discuss the Importance of
Communication. 2012
Ans: Communication is a process of understanding between the
persons through exchange of ideas, messages, suggestions etc. It is important
due to the following reasons:
a) It facilitates Planning: Participation of
all the executives in planning is a pre requisite for getting the task done.
This participation is possible only when the managers and employees interact
with each other.
b) It helps in decision making. Most of the
decisions are taken up by the top level management. But for decision making,
right type of information is required from different persons. It is through
communication that managers can identify the problems which help in taking the
decisions effectively.
c) It helps in the process of motivation:
Sharing of the information with the subordinate gains their confidence and
willing cooperation. It increases their morale of doing work.
d) It is a basis of effective leadership: A
good communicator is a good leader. Through good communication skill, the
manager comes closer to his subordinates and removes the misunderstanding. Thus
it is the basis of leadership.
e) Helps in smooth working of an enterprise:
Smooth working of an enterprise is possible only when there is no communication
gap. Through communication managers give directions for smooth functioning of
organisation.
Q.14. Mention the barriers to
effective communication. State the measures that can be taken to reduce the
barriers to effective communication. 2013,
2015, 2017
Ans: Types of Barriers: The barriers to communication in an
organization may be broadly categorized into following groups:
a. Physical Barriers: There are the environmental factors that also reduce the sending
and receiving of communication, such as physical distance, noises and other
interferences difficulty arises in communicating a message.
b. Socio-psychological or personal
Barriers: There are certain socio
psychological factors which restrict the free flow of communication. They are
the attitude and opinions, status consciousness, ones relations with fellow
workers, seniors, and junior’s etc. family background.
c. Organizational Barriers: Organisational barriers arise due to defects in the organization
structure and the communication system of an organization. Such barriers
include hierarchical distance,
diversion, status barriers, goal conflicts etc.
d. Semantic Barriers: Semantic means the relationships of signs of their reference.
Semantic barrier arises from the disadvantages of the symbolic system. Symbols
have got number of meaning and one has to choose any one of them according to
the requirement of communication.
e. Mechanical Barriers: Mechanical barriers include inadequate arrangement for transmission
of news, facts and figures. Example poor office layout and defective procedure
and the use of wrong media led to poor communication.
The
barriers to an effective communication can be reduced by following measures:
a) Clarify the Idea: Clarify in the thoughts of the sender is must
for effective ‘communication’.
b) Use of proper people language: Sender should try to make the
message meaningful and understandable by using appropriate words.
c) Message should be precise: Lengthy and unwarranted elaboration
makes message less meaningful this should be avoided.
d) Ensure proper feedback: The sender of the message should take the
feedback from the receiver. Feedback of the conveyed message is an essential
tool to the check that the message is duly understood. Facilities like
suggestion box complaint box secret box helps in making the communication
effective.
e) Good Listener: The sender must listen to receiver’s words
carefully on the other hand receiver must also listen with due attention.
Attentive listening solves many problems.
Q.15. What is formal and informal
communication? State three advantages and two limitations of Formal and
Informal communication. 2007,
2014
Ans: Formal Communication: A formal channel of communication is
the officially prescribed route for the flow of communication. It is that route
of communication which is institutionally determined and is associated with
status or position of the receiver and sender.
Informal Communication (Grapevine): The
informal channel of communication is that channel of communication which is not
officially prescribed. It is that route which is used by workmen in an
organization to maintain social (informal) relationship amongst themselves.
Advantages of formal communication:
a) It is systematic and ensures orderly flow of information.
b) The source of communication can be known and so the responsibility
can be fixed.
c) Formal channel cover all sub system of an organization.
Limitations of formal communication
a) It is a slow moving process.
b) It is conveyed in an impersonal manner.
c) Formal channel are expensive as the messages are generally
conveyed in writing.
Advantages of Informal communication
a) It is free from formal lines of authority.
b) Communication is faster and quicker as the message has not to pass
through prescribed route.
c) There is no channel of command and it spreads to all directions.
Disadvantages of Informal communication
a) Grapevine often carries half truth and distorted information with
an alarming rate of speed.
b) The people in an organization are likely to be misinformed and
mislead
c) Since there is no chain of command it is difficult to fix
responsibilities on a particular individual.
Q.16. Distinguish between Formal
communication and Informal communication. 2015
Basis |
Formal
Communication |
Informal
communication |
Channel |
It follows formal or established line of
command. |
It is a based on informal relationship and
arises as a result of personal social or group relations between People. |
Nature |
It is Rigid in nature. |
It is Flexible in nature. |
Speed |
The speed of communication is usually slow. |
It transmits information swiftly. |
Need |
It serves organizational need. |
It serves organizational as well as
individual needs to socialize with others. |
Records |
Its record is kept for future reference. |
No record can be kept. |
Q.17. Explain various forms of
business communication.
Ans: Forms of
Communication: Communication is the transfer of ideas and information from one person to another
person. It is a bridge of meaning among people so that they can share what they
fell and know. By using this bridge, a person can safely cross the river of
misunderstanding that sometimes separates people. To make successful communication there are different methods/ ways:
(A) On the basis of location
of the receiver: Depending on the
location of the receiver there are two types
of communication:
1. Internal Communication
2. External Communication
1. Internal Communication: Communication among the members of an organization is
known as internal communication.
That is when executives and employee of an organization communicate each other
within the organization then it will be labeled as internal communication.
2. External Communication:
When executives and employees of an organization communicates or exchanges
information with outsiders of the organization then it is called external
communication.
Both internal and external
communication can be subdivided into two types:
i. Formal Communication
ii. Informal Communication
i. Formal Communication: When information exchanged through formal organization
channels by following fixed rules then it is knows as formal communication.
ii. Informal Communication: Fixed rules and system cannot prevent people from
talking with each other. Thus the communication that takes place within and outside of an organization
through unofficial lines can labeled as informal communication.
(B) On the basis of media of
presentation: From this point of view communication can be of
three types:
(1) Written communication
(2) Oral / Verbal
Communication
(3) Non-Verbal Communication
(1) Written Communication:
When information, ideas, or feelings exchange in written form that is known as
written communication. Written communication has its own importance and for
some particular purposes it has no other alternatives.
(2) Oral / Verbal
Communication: It is a process of communication through words. Verbal
communication consists of words arranged in meaningful patterns. Oral
communication normally takes place in a face to face situation. It may be
formal or informal.
(3) Non-Verbal Communication: Communication without using words or writings known as
non-verbal communication. In other words, non-verbal communication means
communication through physical movements and facial expressions. Gestures,
posture, eye movements, etc. are examples of non-verbal communication.
(C) On the Basis of
Information flow: Depending on
the flow of information there are different types of communication:
(1) Vertical Communication
(2) Horizontal Communication
(3) Cross / Diagonal
Communication
(1) Vertical Communication: When communication takes place between superior and
subordinates than it is known as vertical communication. Here flow of
information can be of two types:
(i) Downward
(ii) Upward
(i) Downward: it is the flow of information from higher authority to
lower authority.
(ii) Upward: Here the flow of information goes to higher authority
from subordinates.
(2) Horizontal Communication: This type of communication flows between employees of
equal level.
(3) Cross / Diagonal
Communication: Communication across the formal chain of command is known as cross
or diagonal communication. In this case executives and employees of different
departments and of different levels communicate each other without maintaining
the official channels.
(D) Other forms of
Communication: Besides
the above types of communication there can be some other forms of communication like
mass communication.
Mass Communication: When communication takes place among large group of
people then it can be termed as mass
communication. There is no formal
system for mass communication, it is situational. For different social and
political purposes mass communication can takes place.
Q.18. Distinguish between oral and
written communication.
Ans: The difference between oral and written communication can be
enumerated as under:
1. Ratio: According to a rough estimate, about
75% of total communication is oral whereas the rest is written.
2. Data Safety: Data and
information are safe in written communication while most of information is
forgotten in oral communication.
3. Nature of message: Written
communication is used when the message is complex and oral communication is
used for simple message.
4. Legal Aspect: From legal
point of view, oral communication is least reliable and written communication
is much more reliable. For example, an oral promise may not be challenged in a
court in general but a written promise can be challenged.
5. Flow of information: Information
can be transferred within a short period of time in oral communication but it
takes more time in written communication.
6. Non verbal facilities: Oral
communication can be supported by non verbal facilities like gestures, postures
etc. but such a support is impossible in written communication.
7. Grammar & Accent: Oral communication required consideration for accent and pronunciation whereas written communication needs correct grammar and spelling.