Business Studies 2004 CBSE [ Delhi ] Set II

Directing consists of supervision, motivation, leadership & communication (SMCL). It involves issuing orders and instructions by managers to subordinates. It also guides and inspires them. Leading and motivating them to efficiently achieve the desired goals of the organisation is also an important part of directing.

The product concept of marketing implies that consumers favour those products that offer the best quality, performance and features. Managers also believe that consumers appreciate quality features and shall be willing to pay ‘higher’ price for ‘extra’ quality in the product or service made available to them. Those companies which believe in product concept, concentrate on product and its improvement.

The societal concept of marketing means that companies should perform marketing to enhance societal well being. Societal concept emphasises social welfare along with the interests of the firm and its customers. This concept includes social implications in the decision making.

The term 'motivation' is an element of directing depicts
1. Motivation is a mental state.
2. Motivation in management means stimulating people to action in order to achieve the desired goals.
3. It arouses the desires in the people to initiate and direct their behaviour in purposeful manner.

Management as a GROUP refers to the Board of Directors or Executive Directors who are responsible for effectively managing the affairs of the business by guiding and controlling the work of other managers such as production, sales, finance, personnel, quality control managers, etc. This approach focuses on a team rather than individuals.This is because it is believed that management as a team can contribute more effectively and efficiently than an individual

Management principles are needed for the following reasons:
Effective use of resources:
The management is a principle of "science, not rule of the thumb” suggests that every task should be done with minimum effort and energy and additional work can be done with saved energy. By saving time, efforts and energy, activities can be made economical and will enhance the productivity of the resources.
Change in technology:
The management principle of “division of labour” helps management in identifying in which activity technology has changed. If there is no division of labour then confusion may prevail about what and how much to change and the firm might find it difficult to face competition and might, in extreme case, run out of business.
Effective Administration:
The principle of ‘scalar chain’ helps the enterprise to communicate with people at different levels.
‘Unity of direction’ removes confusion from the minds of employees; and
‘Unity of command’ avoids dual subordination.

Thus these principles help management in managing their organisations effectively.

Following are the common barriers to effective communication:
1.      Poor listening skills
2.      Semantic problems
3.      Creditability of sources
4.      Complex organisational structure
5.      Pre-disposition
6.      Difference in status

Following are the three features of personal selling:

•   Personal in nature: Personal selling is a direct method of selling the product. It is a personal form of presenting information regarding a product or a service. Personal selling is addressed to an individual buyer and not to a group of people.
•   Company sponsored: Personal selling is mainly controlled and sponsored by the company itself.
•  Recurring Nature: Personal selling relies on oral messages only. Hence it is of recurring nature. Personal selling is frequently repeated to create a memorising value.

The principle violated here is Unity Of Command. This principle implies that an employee should receive orders from only one superior. If he gets orders from more than one superior at a time, then he will be confused as to which superior’s order should be carried out first.

Following are the important features of Advertising:
1)    Non-Personal: Advertising is a non-personal form of presenting information regarding a product, service or idea. There is no face to face contact.
2)    Identified Sponsor: Advertising is done by an identified sponsor i.e. seller or the manufacturer.
3)  Mass Communication: The advertisement is directed to a large number of persons simultaneously.