NCERT Solutions for Class 12 Business Studies Chapter 7

What is informal communication?
It refers to communication that flows without following the formally defined path. It generally refers to the ‘grapevine’ because its spreads throughout the organization with its branches going out in all directions in utter disregard to the levels of authority. For example a talk over lunch regarding the attitude of a senior is an informal communication. It is difficult to determine the source of such information. Moreover, the actual talk may even get distorted and the final piece of information may come out to be much different from the original one.

Which style of leadership does not believe in use of power unless it is absolutely essential?
It is because, in laissez fairre leadership complete decentralization of the authority were given to the subordinates. Subordinates encourage taking decisions independently by providing maximum freedom.

Which element in the communication process involves converting the message into words, symbols, gestures etc.?
Encoding, involves converting the message into words, symbols, gestures. It is the process of converting the message to be sent into symbols that are generally used in communication. This involves developing words, gestures, pictures, etc., that form the message.

Workers always try to show their inability when any new work is given to them. They are always unwilling to take up any kind of work. Due to sudden rise in demand a firm wants to meet excess orders. The supervisor is finding it difficult to cope up with the situation. State the element of directing that can help the supervisor in handling the problem.
In the above case, to overcome the mentioned problem the workers need to be trained to handle the new machines. And for this, vestibule training method would be the most appropriate.
Vestibule training means to learn their jobs of the equipment they will be using but the training is conducted away from the work floor.

What are semantic barriers of communication?
It concerned with problems in the process of encoding and decoding of message into words and impressions. Normally such barriers result in account of use of wrong words, faulty translations, different interpretations etc.

Explain the process of motivation with the help of a diagram.
Motivation implies inducing and stimulating an individual to act in certain manner. The following diagram explains the process of motivation.

This network arises out of social interaction among employees and spreads without following the formal communication path. Following are the types:

• Single Stand Network: Persons communicate to each other in sequence.
• Gossip Network: Person communicates with all on non- selective basis.
• Probability Network: Individual communicates randomly with other individual.
• Cluster Network: Individuals communicate with only those people whom he trusts.

Three principles of directing are:

1. Unity of Command: A person in organization should receive instructions from superior only. In case instructions are received from more than one person it creates confusion, conflicts and disorder in the organization.
2. Leadership: While directing the subordinates, managers should exercise good leadership as it can influence the subordinates positively without causing dissatisfaction among them.
3. Follow Through: Managers should follow it by reviewing continuously whether orders are being implemented accordingly or any problems are being encountered.

In an organization, one of the departmental manager is inflexible and once he takes a decision, he does not like to be contradicted. As a result, employees always feel they are under stress and they take least initiative and fear to express their opinions and problems before the manager. What is the problem in the way authority is being used by the manager?
In this there is an absence of free flow of communication. The manger must involve his subordinates in the decision making process and encourage them to actively give their feedback and suggestions. This will provide the employees to have an outlet of their feelings.

A reputed hostel, Gyan Pradhan provides medical aid and free education to children of its employees. Which incentives being highlighted here? State its category and name any two more incentives of the same category.
Gyan Pradhan is offering a financial incentive of fringe benefits. It includes housing, medical aid, education to the children over and above the salary.
Two incentives are:

• Co partnership: The employees are offered companies share at a price lower than the market price. The management may also allot a share in line of various incentive payable in cash. This would create a feeling of ownership in the employee and make them contribute to the organization’s growth.
• Retirement Benefits: It includes pension, gratuity fund, and retirement provident fund. It provides security for retirement as well as serves as incentives for the time they have spent working in organization.

Explain the qualities of a good leader. Do the qualities alone ensure leadership success?
Some qualities of a good leader are:

• Physical Feature: It means weight, height, health determine the physical personality of an individual. Healthy person can do hard work rather than unhealthy.
• Knowledge: A good leader should have required knowledge and competence.
• Initiative: A leader should have courage. He should not wait for opportunities to come rather he should grab and use it.
• Self-confidence: A leader should have high level of confidence. He should not lose his confidence in difficult time also.
• Decisiveness: leader should be decisive in managing the work.
• Social skills: A leader should be social and friendly with his followers. He should understand people and maintain good human relations with them.
• Dynamic: A leader should be able to take up new initiatives and break the old paradigms foe the benefit of organization.

Though the above mentioned qualities are necessary for being a good leader, however the presence of these qualities does not ensure leadership success. In fact no single individual can possess all the qualities. However, a conscious effort must be made by the managers to acquire them.

It provides an understanding of complex phenomenon of motivation. Each individual exists a set of five needs that can be arranged in a hierarchy. Knowledge of these needs helps the manager in understanding the behavior of employees. With identification of the needs of the employees, appropriate motivation can be provided to them. Following are the needs given by Maslow:

1. Physiological Needs: These needs are most basic in the hierarchy and correspond to primary needs. Hunger, thirst, shelter, sleep are some examples of these needs. Basic salary helps to satisfy these needs.
2. Security Needs: It provides security from physical and emotional harm. Example, stability of income, pension plans.
3. Belonging Needs: It refers to affection sense of belongingness, acceptance and friendship.
4. Esteem Needs: These include factors such as self- respect, autonomy, status, recognition and attention.
5. Self- Actualization Needs: It refers to drive to become what one is capable of becoming. It includes growth, self- fulfillment and achievement of goals.

In an organization all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone taking to each other and thus resulting in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out. What system do you think the manager should adopt to improve communication?
The manger should adopt a formal communication system in the organization. It refers to the communication taking place through official channels in an organization. Though such communication may be oral or written, it is recorded and filed in the office. Such communication is usually delayed as it passes through many levels managed but does not create remours or cause miscommunication. However, the source of such communication can be easily be detected.