BUSINESS STUDIES MASTER

Simplifying Foundations of Business & Management for Class XI & XII

CLASS XII: CHAPTER 7 QUESTION BANK

Directing | 10 Practice Sets (CBSE 2026-27)

📌 General Instructions for All Sets:

  • Maximum Marks: 25 | Time Allowed: 45 Minutes
  • Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
  • Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
  • Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
  • Question 10 is a long answer type carrying 6 marks (100-150 words).
  • Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. Which function of management initiates actual action in the organization?
(a) Planning   (b) Organizing   (c) Directing   (d) Staffing
[Case-Based] A manager encourages his employees to work to the best of their capabilities by offering them a cash bonus.
2. This element of directing is called:
(a) Leadership   (b) Motivation   (c) Communication   (d) Supervision
[Case-Based] An employee joins a firm to earn enough money to buy food, clothing, and shelter.
3. According to Maslow, which need is the employee trying to satisfy?
(a) Safety/Security Needs   (b) Esteem Needs   (c) Physiological Needs   (d) Self-Actualization Needs
4. Assertion (A): Directing is a continuous process.
Reason (R): It takes place throughout the life of the organization irrespective of people occupying managerial positions.
(a) Both A and R are true & R is correct explanation.
(b) Both A and R are true but R is not explanation.
(c) A is true but R is false.
(d) A is false but R is true.
5. Assertion (A): Directing flows from top to bottom.
Reason (R): Every manager can direct his immediate subordinate and takes instructions from his immediate boss.
(a) Both A and R are true & R is correct explanation.
(b) Both A and R are true but R is not explanation.
(c) A is true but R is false.
(d) Both A and R are false.
SECTION B (3 Marks Each)
6. State any three features of Directing.
[Case-Based] 'Alpha Ltd.' is facing a high employee turnover rate. The HR manager suggests offering 'Job Security' and 'Pension Plans' to retain the workers.
7. Identify the specific need under Maslow's Need Hierarchy Theory that the HR manager is trying to fulfill. Explain it briefly.
SECTION C (4 Marks Each)
8. Explain the difference between 'Financial Incentives' and 'Non-Financial Incentives'.
[Case-Based] 'Beta Corp' has a very strict CEO. He makes all decisions by himself and simply orders his subordinates to execute them. He threatens to fire anyone who questions his plans.
9. Identify and explain the leadership style adopted by the CEO. State one of its disadvantages.
SECTION D (6 Marks Each)
[Case-Based] Mr. Rohan joined a company as a junior clerk. Initially, he worked very hard just to earn a stable salary to pay his rent and buy groceries. Once his job was made permanent, he wanted to be accepted by his peers and make friends in the office. After a few years, he worked even harder to earn the 'Employee of the Year' award and gain the respect of the top management. Finally, he reached a stage where he wanted to maximize his potential and become the best financial analyst in the entire industry.
10. Identify and explain the **four** sequential needs of Mr. Rohan as per Abraham Maslow’s Need Hierarchy Theory highlighted in the paragraph.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. The process of influencing people so that they strive willingly and enthusiastically toward the achievement of group goals is called:
(a) Motivation   (b) Leadership   (c) Communication   (d) Staffing
[Case-Based] A manager tells his team, "Let's sit together and decide the new marketing strategy."
2. Which leadership style is he exhibiting?
(a) Autocratic   (b) Democratic   (c) Laissez-faire   (d) Paternalistic
[Case-Based] A word or phrase having different meanings for different people, causing a misunderstanding, is an example of which barrier?
3. (a) Semantic Barrier   (b) Psychological Barrier   (c) Organizational Barrier   (d) Personal Barrier
4. Assertion (A): Motivation is a complex process.
Reason (R): The individuals within an organization are heterogeneous; they have different expectations, perceptions, and reactions.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Assertion (A): Directing helps to initiate action.
Reason (R): Until directing takes place, all other functions (planning, organizing, staffing) are just preparations for doing work.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is false but R is true.   (d) Both A and R are false.
SECTION B (3 Marks Each)
6. State any three points highlighting the importance of Directing.
[Case-Based] A foreign client sends an email to an Indian firm using highly technical jargon and complex vocabulary. The Indian manager completely misunderstands the email and sends the wrong products.
7. Identify the category of communication barrier. Name the specific barrier under this category.
SECTION C (4 Marks Each)
8. Explain the communication process by defining: Sender, Encoding, Media/Channel, and Decoding.
[Case-Based] The management of 'QuickServe' grants its employees the power to make their own decisions regarding customer complaints. The company also offers them shares at a price lower than the market rate to make them feel like co-owners.
9. Identify and explain the one financial and one non-financial incentive highlighted in this case.
SECTION D (6 Marks Each)
[Case-Based] In 'Venus Garments', there are two production managers. Mr. Aakash is very strict; he assigns targets and threatens to deduct wages if targets are not met. His workers are highly fearful and do exactly as told, but they never offer suggestions. On the other hand, Mr. Varun holds a brief meeting every morning. He discusses the daily targets with his workers and asks for their opinions on how to reduce fabric wastage. His workers feel highly respected and often come up with brilliant cost-saving ideas.
10. By quoting lines from the paragraph, identify and explain the **two leadership styles** adopted by Mr. Aakash and Mr. Varun. State one advantage of Mr. Varun's style over Mr. Aakash's style.
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. Converting the message into communication symbols such as words, pictures, or gestures is known as:
(a) Decoding   (b) Encoding   (c) Media   (d) Feedback
[Case-Based] A manager gives complete freedom to his subordinates to establish their own goals and solve their own problems. He only acts as a contact person with outsiders.
2. Which leadership style is this?
(a) Democratic   (b) Autocratic   (c) Laissez-Faire (Free-rein)   (d) Charismatic
[Case-Based] A subordinate does not communicate a brilliant idea to his boss because the boss is known to mock juniors and rarely listens.
3. This is an example of which barrier to communication?
(a) Organizational barrier   (b) Personal barrier   (c) Semantic barrier   (d) Psychological barrier
4. Assertion (A): Motivation is an internal feeling.
Reason (R): Urges, drives, desires, and aspirations of a human being are internal and influence human behavior.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Assertion (A): Grapevine is a formal channel of communication.
Reason (R): It flows through the officially prescribed scalar chain.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
SECTION B (3 Marks Each)
6. State any three characteristics of 'Motivation'.
[Case-Based] During a meeting, the manager was explaining a new project, but an employee was constantly worrying about his sick child at home and couldn't process the instructions.
7. Identify the category and specific type of communication barrier highlighted here.
SECTION C (4 Marks Each)
8. Explain any four 'Non-Financial Incentives' used to motivate employees.
[Case-Based] 'Innovate IT' noticed that their top coders were quitting because their jobs had become highly monotonous. The CEO immediately redesigned their jobs to include a wider variety of tasks, giving them more autonomy and responsibility.
9. Identify and explain the non-financial incentive provided by the CEO. State how it differs from 'Employee Recognition'.
SECTION D (6 Marks Each)
[Case-Based] 'Global Foods Ltd.' wanted to launch a new snack. The top management held a meeting. The Marketing Head said they should launch a spicy flavor, but he used highly technical market research terms that the Production Head could not understand. Meanwhile, the Finance Head was busy scrolling through his phone, completely ignoring the speaker because he had already assumed the project would be too expensive. Due to this poor communication, the project was delayed by six months.
10. By quoting lines from the paragraph, identify and explain the **two different barriers to communication** present in 'Global Foods Ltd.' Suggest any **two measures** to overcome these barriers.
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
1. Which of the following needs in Maslow's theory corresponds to the desire to become what one is capable of becoming?
(a) Esteem needs   (b) Self-actualization needs   (c) Affiliation needs   (d) Safety needs
[Case-Based] An organization has a highly complex, multi-layered structure. By the time a message from the CEO reaches the factory workers, it is completely distorted.
2. This is a consequence of which barrier?
(a) Semantic   (b) Organizational   (c) Personal   (d) Psychological
3. The process of translating the encoded message into understandable language by the receiver is known as:
(a) Encoding   (b) Decoding   (c) Feedback   (d) Transmission
4. Assertion (A): Directing initiates action in the organization.
Reason (R): It integrates employees' efforts in a way that every individual contributes to organizational performance.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Assertion (A): Democratic leadership style always guarantees the fastest decision-making.
Reason (R): Because the leader consults all subordinates, decisions are made almost instantly.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
SECTION B (3 Marks Each)
6. Explain the assumptions of Maslow's Need Hierarchy Theory.
[Case-Based] During a factory tour, the CEO noticed that workers were highly dissatisfied. Upon inquiry, he found that the middle managers were taking all the credit for the good work done by the workers and never acknowledged their efforts.
7. Which non-financial incentive is missing here? Explain it briefly.
SECTION C (4 Marks Each)
8. Explain any four 'Organizational Barriers' to communication.
[Case-Based] Mr. Das is a production manager. He strictly follows the scalar chain for all communications. Consequently, a request for emergency raw materials took 5 days to reach the purchase department. The employees fear him and never express their difficulties.
9. Identify and explain the two barriers to effective communication created by Mr. Das.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Airlines' faced severe turbulence when a new rival entered the market. The CEO, Ms. Divya, called an urgent meeting. Instead of ordering her staff, she presented the crisis to her team of directors and asked, "How should we tackle this?" After a healthy debate, they collectively decided to improve in-flight services. To motivate the cabin crew, the company decided to offer them an extra 2% commission on all duty-free items sold during the flight, along with a 'Best Employee' certificate displayed in the headquarters.
10. By quoting lines from the paragraph, identify and explain:
(a) The **Leadership Style** adopted by Ms. Divya.
(b) **One Financial Incentive** and **One Non-Financial Incentive** provided to the cabin crew.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] Providing car allowance, medical facilities, and rent-free accommodation to managers over and above their regular salary refers to which financial incentive?
1. (a) Profit Sharing   (b) Co-partnership   (c) Perquisites   (d) Bonus
2. The informal network of communication that spreads rumors rapidly across all departments is known as:
(a) Vertical communication   (b) Grapevine   (c) Formal communication   (d) Diagonal communication
[Case-Based] A manager tells his worker, "Bring the goods." The worker assumes he means the 'finished goods', while the manager actually meant the 'raw materials'.
3. This is an example of which semantic barrier?
(a) Badly expressed message   (b) Unclarified assumptions
(c) Technical jargon   (d) Faulty translations
4. Assertion (A): Motivation can be either positive or negative.
Reason (R): Positive motivation uses rewards like increments, while negative motivation uses punishments like demotions to induce desired behavior.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Assertion (A): Directing is the sole responsibility of the HR manager.
Reason (R): Only the HR manager is trained to communicate and motivate employees.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
SECTION B (3 Marks Each)
6. "Directing brings stability and balance in the organization." Explain this statement.
[Case-Based] The boss and his subordinate do not get along. The subordinate feels the boss is always finding faults, so he deliberately hides important production data from him.
7. Identify the category of the communication barrier. Explain the specific barrier highlighted.
SECTION C (4 Marks Each)
8. Explain the following communication networks: (a) Single Chain, (b) Wheel Network.
[Case-Based] 'HealthPlus Ltd.' provides an environment where employees feel emotionally safe. The management recently announced a policy stating that "No employee will be fired without a three-month notice."
9. Identify and explain the specific incentive used here. Which level of Maslow's need hierarchy is it targeting?
SECTION D (6 Marks Each)
[Case-Based] 'Bright Technologies' was facing a communication crisis. Important circulars took days to reach the lower levels, and employees relied heavily on office gossip to know what was happening. To resolve this, the CEO, Mr. Khanna, took three major steps. First, he ensured he used simple, clear language in his emails instead of complex technical terms. Second, before enforcing any new policy, he actively asked the workers for their feedback and listened to them patiently. Third, he set up a direct complaint box where workers could drop their grievances without following the rigid scalar chain.
10. By quoting lines from the paragraph, identify and explain the **three measures to improve communication effectiveness** adopted by Mr. Khanna.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] When an employee's performance exceeds expectations, the company grants him a one-time lump-sum reward over and above his salary.
1. This is known as:
(a) Profit Sharing   (b) Bonus   (c) Co-partnership   (d) Perquisites
2. A receiver nodding his head during a conversation to show understanding is an example of:
(a) Encoding   (b) Decoding   (c) Feedback   (d) Noise
[Case-Based] A highly status-conscious manager refuses to talk to anyone below the rank of a departmental head.
3. This is a barrier related to:
(a) Organizational policy   (b) Personal factors   (c) Semantic factors   (d) Psychological factors
4. Assertion (A): Leadership is the process of forcing people to work against their will.
Reason (R): A leader uses his authority and threats to ensure organizational goals are met.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
5. Assertion (A): Laissez-faire leaders completely delegate the authority to their subordinates.
Reason (R): They believe their team members are highly competent and capable of managing their own tasks without interference.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
SECTION B (3 Marks Each)
6. Differentiate between 'Formal' and 'Informal' communication on any three bases.
[Case-Based] An Indian manager drafted a highly persuasive email to a Japanese client, but used several English idioms like "bite the bullet" and "piece of cake". The Japanese client was utterly confused.
7. Identify the barrier to communication. Suggest one way to overcome it.
SECTION C (4 Marks Each)
8. Explain the following 'Psychological Barriers': (a) Premature Evaluation, (b) Distrust.
[Case-Based] 'Solaris Energy' wanted to motivate its top executives. Instead of just giving them a higher salary, the company offered them 1,000 equity shares of the company at a discounted price, making them partial owners.
9. Identify and explain the financial incentive used. How does it motivate the executives?
SECTION D (6 Marks Each)
[Case-Based] Mr. Kunal, the CEO of an advertising agency, is facing a severe crisis. The creative directors are constantly missing deadlines. Kunal realizes that the problem lies in his own behavior. He always dictates the exact color, font, and text for every advertisement, leaving no creative freedom for the directors. If they suggest changes, he shuts them down. Furthermore, the agency has a strict policy that all communication must be formally written and routed through three layers of management, causing massive delays in client feedback.
10. By quoting lines from the text, identify the **Leadership Style** of Mr. Kunal and explain **one Personal Barrier** and **one Organizational Barrier** causing the crisis in the agency.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] The HR manager gives a plaque and a "Star Performer" badge to an employee in front of the entire office.
1. Which non-financial incentive is this?
(a) Status   (b) Employee Recognition   (c) Job Enrichment   (d) Job Security
2. "Grapevine" is a term commonly associated with:
(a) Formal Communication   (b) Motivation   (c) Informal Communication   (d) Leadership
3. Assertion (A): Motivation is entirely based on financial incentives.
Reason (R): Money is the only factor that can satisfy all human needs according to Maslow.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
4. Assertion (A): Directing is a pervasive function of management.
Reason (R): It takes place at every level of the organization where superior-subordinate relations exist.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. In Maslow's theory, the need for affection, sense of belongingness, and friendship falls under:
(a) Physiological needs   (b) Safety needs   (c) Affiliation/Social needs   (d) Esteem needs
SECTION B (3 Marks Each)
6. Explain the steps involved in the 'Motivation Process'.
[Case-Based] 'Alpha Motors' noticed a rumor spreading rapidly across the factory floor that the company was going bankrupt, causing panic.
7. Which channel of communication caused this? State two ways the management can use this channel positively.
SECTION C (4 Marks Each)
8. Explain any four qualities of a good leader.
[Case-Based] The management strictly forbade employees from gathering near the water cooler because they thought it wasted time. Consequently, the employees felt isolated and highly demotivated.
9. According to Maslow, which specific need of the employees was suppressed? Explain the next higher-level need in Maslow's hierarchy.
SECTION D (6 Marks Each)
[Case-Based] Ms. Neha, the principal of a school, is highly respected. She delegates the entire responsibility of the Annual Day function to her teachers, telling them, "You are experts, I trust you completely to manage the budget and events. Come to me only if you face an unavoidable crisis." To keep her teachers motivated, she links their annual increment directly to the average board result of their respective classes. Furthermore, she ensures that she listens to the personal grievances of her staff without any prejudice or judgment.
10. By quoting lines from the paragraph, identify and explain:
(a) The **Leadership Style** adopted by Ms. Neha.
(b) The **Financial Incentive** used.
(c) One measure to **improve communication** highlighted in her behavior.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. Which network of communication is the most centralized and allows only the central person to communicate with all others?
(a) Single Chain   (b) Wheel Network   (c) Circular   (d) Free Flow
[Case-Based] The Production Manager asks his foreman, "Is the work completed?" The foreman replies, "Yes, sir." The word "Yes, sir" represents:
2. (a) Encoding   (b) Media   (c) Feedback   (d) Noise
3. Assertion (A): Motivation is aimed at achieving organizational goals.
Reason (R): An unsatisfied need creates tension, driving an individual to behave in a way that satisfies the need, which the manager aligns with organizational goals.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
4. Assertion (A): Lack of confidence of superior on his subordinates is an organizational barrier.
Reason (R): If superiors do not trust their subordinates, they will not seek their advice or opinions.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is false but R is true.   (d) Both A and R are false.
5. Which of the following is NOT an assumption of Maslow’s theory?
(a) People's behavior is based on their needs.
(b) A satisfied need can no longer motivate a person.
(c) People move to a lower-level need only when the higher-level need is satisfied.
(d) People's needs are in a hierarchical order.
SECTION B (3 Marks Each)
6. Differentiate between Autocratic and Democratic Leadership styles.
[Case-Based] An employee proposes a brilliant cost-saving idea. The manager ignores it because the company has a strict "No suggestions from juniors" rule.
7. Identify the category of communication barrier. State one more barrier from the same category.
SECTION C (4 Marks Each)
8. Explain any four 'Semantic Barriers' to communication.
9. "Direction is not merely issuing orders and instructions." Explain the four key elements of directing to justify this statement.
SECTION D (6 Marks Each)
[Case-Based] 'MegaBuilders' was suffering from terrible productivity. The workers felt unappreciated. The HR manager, Mr. Singh, decided to revamp the incentive system. First, he announced that 5% of the company's annual profit would be distributed among the workers. Second, he created a system where workers could participate in the management's decision-making committees regarding factory safety. Third, he gave them challenging tasks that required higher skills, breaking the monotony of their daily routine.
10. By quoting lines from the text, identify and explain the **one Financial Incentive** and **two Non-Financial Incentives** introduced by Mr. Singh.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] A manager promises to promote an employee if he completes a difficult project, but after the project is done, the manager refuses to promote him. Next time, the employee refuses to work hard.
1. This lack of motivation is primarily due to a failure in which barrier?
(a) Semantic   (b) Psychological (Distrust)   (c) Personal   (d) Organizational
2. The highest level need in Maslow’s hierarchy is:
(a) Esteem   (b) Self-Actualization   (c) Safety   (d) Affiliation
3. Assertion (A): Informal communication is highly reliable and verifiable.
Reason (R): It flows through the officially prescribed scalar chain.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
4. Assertion (A): A leader must be a good communicator.
Reason (R): Without effective communication, a leader cannot influence the behavior of his followers towards the achievement of goals.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Which non-financial incentive gives an employee a feeling of ownership and higher responsibility?
(a) Job Security   (b) Job Enrichment   (c) Employee Empowerment   (d) Bonus
SECTION B (3 Marks Each)
6. Explain the term 'Noise' in the communication process with an example.
[Case-Based] A software engineer is given a high salary and a luxurious office, fulfilling his esteem needs. However, he resigns because he feels he is not learning anything new and his true potential as an AI developer is being wasted.
7. Which level of Maslow's hierarchy is unsatisfied? Explain it.
SECTION C (4 Marks Each)
8. Explain the following barriers to communication: (a) Faulty Translations, (b) Fear of challenge to authority.
9. Discuss the importance of 'Communication' in an organization. Give four points.
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Pharma' was losing its top scientists to rival companies. The CEO realized that money was not the issue, as they were the highest-paying firm in the industry. He completely changed the work culture. He upgraded the job titles of the scientists from 'Researchers' to 'Principal Innovators' to boost their prestige. He introduced a policy where scientists were involved in board meetings when discussing new drug budgets. Lastly, he started sending the best scientists to international conferences in Europe, heavily investing in their personal career growth and updating their skills.
10. By quoting lines from the paragraph, identify and explain the **three distinct Non-Financial Incentives** utilized by the CEO of 'Zeta Pharma'.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. Which feature of directing states that directing takes place at every level of the organization?
(a) Continuous process   (b) Flows from top to bottom   (c) Pervasive function   (d) Initiates action
[Case-Based] An employee receives a WhatsApp message from a colleague stating that the Diwali bonus has been cancelled, causing panic.
2. This is an example of:
(a) Formal communication   (b) Upward communication   (c) Grapevine   (d) Semantic barrier
3. Assertion (A): Motivation is an external force that can be forcefully injected into an employee.
Reason (R): Threats of firing and salary deductions are the only ways to ensure employees work hard.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) Both A and R are false.
4. Assertion (A): A democratic leader develops action plans in consultation with his subordinates.
Reason (R): This style builds confidence and morale among subordinates, leading to higher job satisfaction.
(a) Both A and R are true & R is explanation.   (b) Both true but R is not explanation.
(c) A is true but R is false.   (d) A is false but R is true.
5. Tying an employee's salary increment directly to the number of units he produces is known as:
(a) Bonus   (b) Productivity linked wage incentives   (c) Profit sharing   (d) Perquisites
SECTION B (3 Marks Each)
6. Differentiate between 'Semantic Barriers' and 'Psychological Barriers'.
[Case-Based] The manager evaluated the annual performance of Mr. X and gave him an outstanding rating. Consequently, Mr. X was moved to a higher position carrying higher responsibilities and status.
7. Identify the non-financial incentive highlighted. Explain its psychological impact on the employee.
SECTION C (4 Marks Each)
8. "A good leader is not necessarily a dictator." Explain the 'Democratic' and 'Laissez-Faire' leadership styles to support this statement.
9. Suggest any four measures an organization can take to overcome the barriers to effective communication.
SECTION D (6 Marks Each)
[Case-Based] Mr. Anil manages a team of 50 data entry operators. To ensure they met their targets, he installed cameras to watch them constantly and threatened to fire anyone who took a break longer than 5 minutes. The workers were terrified. When a major software glitch occurred, the workers were too afraid to tell Mr. Anil, thinking he would blame them. Consequently, the entire system crashed. Realizing his mistake, Mr. Anil changed his approach. He formed small groups and asked them to suggest solutions for the software glitch, actively implementing their best ideas. He also promised that their jobs were permanent and no one would be fired for reporting a genuine error.
10. By quoting lines from the paragraph, identify and explain:
(a) The **Leadership Style** Mr. Anil used initially.
(b) The **Communication Barrier** caused by his initial behavior.
(c) The **Non-Financial Incentive** he later provided to secure their future.
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