Learn CBSE Business Studies Index Terms for Class 12, Chapter 7 Including Definitions and Meanings
1. Directing – Directing is a fundamental capacity of any organisation. Directing assists managers with guaranteeing quality execution and accomplishing the association’s objectives. Ensuring order and discipline is not a part of the characteristics of directing.
In other words, directing refers to that management function that is concerned with guiding, inspiring, counselling, and leading people towards the accomplishment of the organisational goals or objectives.
2. Supervision – Supervision can be defined as overseeing people at work and giving instructions to ensure optimum utilisation of resources. Supervision is characterised as regulating and observing the work-related activities of subordinates. Primarily, directors regulate their subordinates. It is significant at all degrees and levels of management. Supervision is an activity of monitoring that assists with guaranteeing work is being performed by the prerequisite of the job.
3. Motivation – The concept of motivation focuses on the explanation of the causes of behaviour. The term motivation has been derived from the Latin word ‘movere’, which refers to the movement of activity. Everyday behaviour is explained in terms of motives. For instance, earning money is the motive behind going to work. However, there can be other reasons too. Similarly, the motive behind attending school/college is getting a good education or acquiring a degree so that one can get a good job. Motivation also makes predictions about behaviour, and thus it is one of the determinants of behaviour.
4. Incentives – Companies provide financial incentives or monetary benefits to their employees both as a motivation and as a reward. It is an essential role in satisfying social/security and physiological needs. If employees perform well, then the organisation gives them a reward as an appreciation for their efforts. And when the employee needs an added reason to give their best efforts, the company promises extra benefits in case they complete a particular task. Some of the common financial incentives are in the form of bonuses, increments, profit sharing, and periodic hikes in the wages or salaries of employees.
5. Self Actualisation – The need for self-actualisation occurs when a person is motivated to fully develop their potential. It is manifested through awareness, responsiveness, creativity, etc. An instance of the same can be when an individual attempts to learn new things in the middle of their career.
6. Egoistic Needs – Egoistic needs or esteem needs are considered the fourth level of the hierarchy of needs theory. It is related to the need of a person to be recognised in society. It deals with getting recognition and self-respect in society.
The need for recognition and acceptance arises when a person has fulfilled their need for love and belongingness. In addition to recognition from others, there is a need for the person to develop self-esteem and personal worth.
7. Leadership – Leadership in business is the limit of an organisation’s administration to define and accomplish testing objectives, make a quick and unequivocal move when required, beat the opposition, and move others to perform at the most elevated level that they can.
8. Communication – Communication is a process that involves sending and receiving messages through verbal and non-verbal methods. Communication is a two-way means of communicating information in the form of thoughts, opinions, and ideas between two or more individuals with the purpose of building an understanding.
9. Encoding – Communication is a process that starts with the development of thoughts by a sender who conveys the message using various channels to the receiver, who then sends the sender a message as feedback. In encoding, the sender starts the encoding process where they utilise words or non-verbal means to translate the thought into a message.
10. Decoding – Communication is a process that starts with the development of thoughts by a sender who conveys the message using various channels to the receiver, who then sends the sender a message as feedback. In decoding, the receiver translates the sender’s information and tries to perceive it most suitably.
11. Feedback – Communication is a process that starts with the development of thoughts by a sender who conveys the message using various channels to the receiver, who then sends the sender a message as feedback. Feedback is the last step of the communication process that assures the recipient has received the information and understood it correctly as the sender designed it.
12. Informal Communication – Informal communication refers to communication that takes place without following the formal lines of communication in an organisation’s structure. Informal communication is based on interpersonal relationships. The nature of informal communication is unsystematic and irregular. The speed of communication is time-saving as is opted at the last. The subject matter of this kind of communication is usually personal, and the authenticity is unplanned and unofficial.
13. Profit Sharing – As a financial incentive that is provided by an employer to an employee to improve work morale, the profits earned by the company are partly shared with the employees.
14. Copartnership – To enrich and motivate the employee, the employer copartners with an employee so that they can perform better.
15. Quality Circles – Quality circles are referred to a small group of people or employees who have similar roles and the same work area; they meet regularly and voluntarily to recognise, examine, and sort out work-related problems.
This tiny-knit group with all members of the circle taking part to the full carry on the utilising techniques for problem-solving to achieve improvement or control in the work area and also mutual and self development in the process.
16. Employee Stock Option Plans – The Employee Stock option plan or Employee Stock Ownership Plan (ESOP) is an employee benefits scheme that enables employees to own shares in the company. These shares are purchased by employees at a price below market price, or in other words, a discounted price.
The purpose of providing ESOP is to make the employee more committed to the company. In other words, ESOP motivates the employee to be committed to the company for a long term and also take ownership of the company.
17. Verbal Communication – Verbal communication is a method that uses speech in the form of speaking to convey a message or information. It is the most popular and effective mode of communication, usually practised during video conferences, phone calls, presentations, one-on-one conversations, and meetings. It supports both nonverbal and written communication.
18. Non-verbal Communication – Non-verbal communication is basically the practice of gestures, facial expressions, and body language to send information. It can be implemented intentionally and unintentionally when communicating. For instance, a person can smile unintentionally when they hear an interesting piece of information or a pleasant idea.
19. Written Communication – Written communication is all about typing, printing symbols, numbers, letters, and writing to send a piece of information; sometimes used to record information for evidence or reference purposes. In general, the written style of communication is used in books, blogs, pamphlets, memos, and letters to share and spread information. In the workplace, e-mail is a common example of written communication.
20. Visual Communication – Visual communication uses art, photographs, sketches, graphs, charts, and drawings, to pass on the information. It is used especially during presentations to present and give a visual effect and support written or verbal communication.
21. Sender – Communication is a process that starts with the development of thoughts by a sender who conveys the message using various channels to the receiver, who then sends the sender a message as feedback. In the communication process, the sender conceptualises the idea or the conversation that the sender wants to convey to the recipient.
22. Formal Communication – Formal communication is based on superior-and subordinate relationships. The nature of communication is orderly and systematic. The speed of communication is slow and time-consuming. The subject of communication is usually work-related matters, and the authenticity of this type of communication is well-planned and official.
23. Salary – Salary and wages are the compensations paid or payable to representatives for work performed for the benefit of a business or services rendered. Typically, a business is not allowed to keep the wages or any part thereof, besides as allowed or legally necessary.
24. Bonus – A bonus is a money-related payment made to a worker far beyond their standard compensation or remuneration package. Bonuses are one way in which managers reward their workers for a job done the right way. Furthermore, offering standard, huge rewards is a way of holding the organisation’s best employees back from searching somewhere else for a job.
25. Performance-based Incentives – Employees may also get increments based on their performance apart from the yearly hike on basic pay. It can motivate the employee to keep improving their efficiency.
26. Appreciation – Giving due recognition for an employee’s work encourages them to be more diligent and dedicated to their job. It gives a fillip to their self-esteem and motivates them. Companies have employee recognition programs where they declare the best performers from time to time.
27. Promotion – An employee’s current designation reflects their position in the organisational chart. It determines their level of responsibility and authority, salary, bonus, and other benefits. To keep an employee motivated, companies can promote them to improve their standing in the organisation and encourage them to continue their good work.
28. Career Opportunities – Companies can provide career development programmes for their employees to give them a chance to learn new skills. These skills can help them apply for senior positions within the organisation.
29. Job Enrichment – Organisations can design jobs to involve higher knowledge and skill levels, greater responsibility, and autonomy to motivate employees. It will give them a chance to express themselves while also providing more career growth and development opportunities. They can also set up committees comprising employees from different departments and seek their input in enriching job roles.
30. Job Security – Organisations must provide jobs that are relatively secular compared to their competitors. It gives more confidence to the staff in a company to express their creativity. Job security is one of the most essential non-financial incentives that can ensure better performance from personnel within the company.
31. Semantic Barriers to Communication – Semantic barriers are those barriers in communication that are related to using or understanding the language. It can happen that certain words, phrases, or sentences can get misinterpreted at times, or they can be misunderstood. This obstructs effective communication. Such barriers in communication that are created due to difficulty in understanding words and sentences are known as semantic barriers.
We hope that the offered Business Studies Index Terms for Class 12 with respect to Chapter 7: Directing will help you.
Related Links:
- Class 12 Business Studies Index Terms – Chapter 1: Nature and Significance of Management
- Class 12 Business Studies Index Terms – Chapter 2: Principles of Management
- Class 12 Business Studies Index Terms – Chapter 3: Business Environment
- Class 12 Business Studies Index Terms – Chapter 4: Planning
- Class 12 Business Studies Index Terms – Chapter 5: Organising
- Class 12 Business Studies Index Terms – Chapter 6: Staffing
- Class 12 Business Studies Index Terms – Chapter 8: Controlling
- Class 12 Business Studies Index Terms Part II Chapter 1: Financial Management
- Class 12 Business Studies Index Terms Part II Chapter 2: Consumer Protection
