Directing Test - 81

Esteem needs encompass confidence, strength, self-belief, personal and social acceptance, and respect from others. These needs are represented as one of the key stages in achieving contentedness or self-actualization. 

Communication is the sum of all things one person does when he wants to create understanding in the mind of another. It involves systematic and continuous process of telling, listening and understanding.

'Grapevine' refers to a term used in relation to informal communication. People also communicate within the organization at a personal level, this is known as an informal communication or grapevine. Informal communication can be defined as communication between the individuals or groups which is not officially recognized. Informal communication is also known as grapevine.

Delegation refers to the downward transfer of authority from a superior to a subordinate.

A letter of credit is opened on behalf of an importer. A letter of credit refers to  a bank agreeing to accept and pay on due date. A letter of credit can be defined as a written commitment to pay the seller if the importer fails to make the payment to seller or exporter on time.

Abraham Maslow, a well-known Psychologist in a classic paper published in 1943, outlined the elements of an overall theory of motivation. His theory was based on human needs. He felt that within every human being, there exists a hierarchy of five needs.

Vroom's motivation can also be expressed in the form of an equation, 

Motivation = valence× expectancy × instrumentality.

• Vroom's expectancy theory of motivation is based on the concept of valence which means the value or strength one places on a particular outcome, expectancy which relates efforts to performance, instrumentality which means the belief that performance is related to rewards.

Supervision being an element of directing, every man­ager in the organi­sation supervises his/her subordinates. In this sense, supervision can be understood as the process of guiding the efforts of employees and other resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure opti­mum utilisation of resources and achievement of work targets.

Function of supervisor includes giving instructions to ensure opti­mum utilisation of resources and achievement of work targets.

An accounting as an information system is a system of collecting, storing and processing financial and accounting data that are used by decision makers. Correct sequence of the activities of accounting information system are as follows:

1. Collection of accounting data

2. Preparation of the table of accounting 

3. Preparation of accounting information report

4. Communication of accounting information