A Managing Director declaring share in the profits to the managers for their contribution in increasing the profits of the company, is an example of which element of Directing function?
A Managing Director declaring share in the profits to the managers for their contribution in increasing the profits of the company, is an example of which element of Directing function?
Solution
✅ Correct Option: 4
Profit sharing is a financial incentive offered to stimulate employees to perform better. Incentives are tools of motivation, the element of directing that energises people to work towards organisational goals. Hence the MD's action exemplifies motivation.
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