MANAGEMENT CONCEPTS & PRACTICES
Directing (Module-III)
Concept of Directing
Direction is the process of instructing, guiding, and counseling, motivating and leading the
human resources to achieve organizational objectives. It is also labeled as through infrequently
by some. It is also called as a heart of administration.
Direction has a major concern with the, “human element of the organization”. Planning and
organizing are only preparation for doing the work and the work actually starts when the
direction function of management is performed. Direction involves communicating and
providing leadership and motivation to the people to contribute to the best of the capabilities for
the achievement of objectives of the enterprise.
According to Newman and Warren
“Activating deals with the steps a manager takes to get subordinates and others to carry out
plans”.
According to Pearce and Robinson
“Directing is a managerial function that involves the responsibility of managers for
communicating to others what their roles are in achieving the company plan”.
Hersey and Blanchanrd describe 3 important skills that a manager must have to influence the
behavior of others:
1. Diagnose: Managers must know the problem or situation that needs direction.
2. Adapt: Managers adapt themselves to the situation and understand it before directing others to
act.
3. Communicate: Having understood, analyzed and changed their behavior according to the
situation, managers communicate the change in situation to other members so that they
understand and change their behavior accordingly.
Nature of Direction
1. Process of action: Direction is an important managerial function that initiates action that at
top level of the organization and flows down the hierarchy. It follows that subordinates have to
be directed by their superior only.
2. On-going process: Direction is a process of continuously guiding the behavior of others.
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3. Not supported by rules: Since the behavior of the people cannot be predicted through
mathematical or statistical tools, the function of directing is based on application of behavioral
sciences. It is not supported by the rules or regulations.
4. Directing is situational: Managers influence the behavior of employees according to
situation. The directions change from situation to situation. Factors like environment, nature of
workers, group behavior, attitude towards work, etc affects directing.
5. Behavioral science: Since directing deals with human behavior, managers study different
aspects of human psychology to understand how to influence their behavior.
6. Participative in nature: Directions issued by managers initiate action on the part of
employees. To ensure greater participation of workers in carrying out the organizational
activities, they should take part in the meetings to discuss various direction policies.
Elements of Direction
According to Joseph Massie, it consists of 4 elements:
1. Issuing of orders that are clear, complete and within the capabilities of subordinates to
accomplish.
2. Continuous training activity in which subordinates are instructed to carry out the particular
assignment in the existing situation.
3. Motivation of subordinates to try to meet the expectation of the manager.
4. Maintaining discipline and rewarding those who perform properly.
Importance of Direction
Directing means putting plans into action. Well executed direction functions offer the following
importance:
1. Direction initiates Actions: Organization is the sum total of human and non-human
resources. These resources should be handled in certain way to get the desired results. Through
directions management conveys and motivates individuals in the organization to function in the
desired way to get organizational objectives. Without direction, other managerial activities like
planning, organizing and staffing become ineffective.
2. Direction integrates Employees Efforts: For achieving organizational objectives, individual
need not only to be efficient, but effective also. Their actions are interrelated in such a way that
each individual’s performance affects the performance of others in the organization. Thus, the
individuals’ efforts need to be integrated so that organization achieves its objectives in the most
efficient manner and this is possible through direction only.
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3. Direction attempts to get Maximum of Individuals: Every individual in the organization
has some potentially and capability which, in the absence of proper motivation, leadership,
communication—all elements of direction—may not be utilized fully. Direction provides the
way to utilize these capabilities and also it helps in increasing these capabilities.
4. Direction facilitates changes in the Organization: Organization exists in the society and any
change in the society changes organizational process to keep organizational ready to face
environmental changes. Moreover, there are changes in the organizational structure and
individuals. To incorporate and implement these changes, management should motivate
individuals affected by these changes, which is an essential part of direction.
5. Direction provides Stability and Balance in the Organization: Effective leadership,
communication and motivation provide Stability in the Organization and maintain balance in
different parts of the organization. Thus, organization exists for a long period and its parts work
in a harmonious way.
Principles of Directing
Direction is one of the most complexes and unpredictable of management function can be
learned and perfected through long-term experience. These principles can be divided into two
parts:
I Principles relating to the purpose of Direction
The basic purpose of direction is to get organizational objectives fulfilled through the integrated
efforts of the subordinates. In this context, following principles are important.
1. Principle of Maximum Individual Contribution: Organizational objectives are achieved at
maximum level when every individual in the organization contributes maximum toward this end.
Management should adopt direction technique which enables subordinates to contribute
maximum.
2. Principles of Harmony of objectives: Individuals join the organization to achieve certain
objectives, that is, they want to satisfy their psychological and physiological needs while
working in the organization. At the same time, organization has its own objectives, that is,
maximization of profit in a business concern. Management, through appropriate direction
techniques, should try to integrate both organizational and individual objectives. Common
interest must prevails over individual interest, but factors like ambitious, laziness, weaknesses
and others tend to reduce the importance of general interests. The impact of these factors can be
minimized through appropriate direction.
3. Principles of Efficiency of Direction: An effective direction tries to get work accomplished
by subordinates without affecting their need satisfaction adversely. To provide adequate
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satisfaction to subordinates, it is necessary to develop correct direction techniques, effective
communication system, leadership, etc.
Principles relating to Direct Process
Direction process is related with those factors which make a particular direction technique
effective and efficient. Following principles in this case are important:
1. Principle of Unity of Command: According to this principle, a person in the organization
should get orders and instructions from one superior only and he should be responsible to that
superior only. Dual command, that is, getting orders from more than one superior, creates
conflicts, confusion, disorder and instability in the organization. Direction should follow this
principle.
2. Principle of appropriateness of Direction Technique: There are 3 direction techniques—
authoritarian, consultative and free-rein.
Autocratic or authoritarian style
Under the autocratic style, all decision-making powers are centralized in the leader, as with
dictator leaders. They do not entertain any suggestions or initiatives from subordinates.
Participative or consultative style
The consultative style favors decision-making by the group as shown, such as leader gives
instruction after consulting the group. They can win the co-operation of their group and can
motivate them effectively and positively.
Laissez-faire or free rein style
A free-rein leader does not lead, but leaves the group entirely to itself as shown; such a leader
allows maximum freedom to subordinates, i.e., they are given a free hand in deciding their own
policies and methods.
Each technique has its own relative strength. Moreover, each technique can be used in different
cases depending upon the nature of superior and subordinates and the situational variables. Thus,
that particular technique can be used which is the most appropriate at a particular time.
3. Principle of Managerial Communication: In the organization success depends upon
effective communication between superior and his subordinates. A superior, through downward
communication, passes to his subordinate orders, ideas about work, etc. and through upward
communication from his subordinate he knows how his subordinates are working. Thus,
effective communication both ways makes direction effective.
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4. Principle of Comprehension: Direction conveys to subordinates what they have to do, how
to do and when to do. Thus, understanding and comprehending of what has been conveyed by
superior is important for subordinates as correct understanding enables them to get clear situation
and avoid unnecessary queries and explanations from superior.
5. Principle of Use of Informal Organization: Formal organization structure prescribes the
official relationships among individuals. Beside, people working together develop certain
relationships known as informal group or organization. Through this informal group, information
travels very quickly, though sometimes the information may be wrong. Management should try
to understand, spot and make use of such informal organization for making direction most
effective.
6. Principle of Leadership: Leadership is process of influencing individuals in the organization
for goal achievement. When subordinates function efficiently, organizational goals are achieved.
The subordinates are influenced through the exercise of authority and exercise of leadership.
However, the former course of action has a serious limitation of affecting the morale of
subordinates adversely. Thus, managers need to become so that they can influence the activities
of their subordinates without dissatisfying them.
7. Principle of Follow through: Direction is a continuous managerial process. Mere giving an
order is not sufficient but management should find out whether the subordinates are working
accordingly, what difficulties they are facing and in the light of these, if need be, the order can be
modified or replaced.
Leadership
Concept of Leadership
“Leadership is interpersonal influence exercised in a situation and directed through
communication process, towards the attainment of a specified goal or goals”.
In corporate terms, leadership is the process by which an executive imaginatively directs, guides
and influences the work of others in choosing and attaining specified goals, by mediating
between individuals and the organization in such a manner that obtain maximum satisfaction.
Mahatma Gandhi, Bill Gates, J.R.D Tata, Walt Disney, Azim Premji, Narayan Murthy and
Dhirubhai Ambani epitomize success, power to influence and achievement in today’s world. The
common thread of leadership links these personalities in different walks of life together and
differentiates them from non-achievers.
Leadership is defined primarily, by what we do and not by the role we have been assigned. Good
leadership starts ‘in here’ and comprises values, clarity and vision. Leadership is all about
influencing people to act, behave and perform as desired by the leaders.
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"Leadership is ultimately about creating a way for people to contribute to making something
extraordinary happen."
The five leadership traits/leadership qualities are:
1. Honest
2. Forward-Looking
3. Competent
4. Inspiring
5. Intelligent
Nature of Leadership
1. Leadership depends upon personal traits: Everybody cannot be a leader. Managers are
different from leaders. A person can be a good leader if he has characteristics like popularity,
confidence, knowledge, intelligence, social and inter personal skills.
2. Leadership is situational: Leadership varies with the situation. A person with same traits
may adopt autocratic style of leadership in one situation and democratic style in other situation.
Situation plays an important role in determining the style of leadership.
3. Leadership is functional: Leadership is the function of leader, follower and the situation.
Mathematically, L= f (l,f,s)
Where L=Leadership; l=leader; f=follower; s=situation
Leadership is determined by the characteristics of the leader, the team and the situation that
prevail in the organization.
4. Leaders are also followers: Leaders also have someone above them to whom they report. As
they demand subordination from their followers, they must show their subordination to their
leaders.
5. Leadership is a pervasive function: Leadership is not related to business organization only.
Whenever the person influences the behavior of others, he exercises leadership.
6. Leadership aims at goal achievement: Leaders are dynamic persons who set high standards
of performance for themselves and their followers. They also help the followers to achieve the
targets.
7. Role model: Leaders are role model for their followers. Loyalty and subordination cannot be
expected from followers if leaders are not supportive. Leaders should cooperate with their
followers if they want their followers should cooperate with them. The followers tend to behave
as they behaved with.
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Importance of Leadership
In recent years, due to the tremendous change that is happening in the business environment,
leadership has become significantly important for the corporate sector. Leadership has not only
to show the way but also to lead their followers on it. In doing this, the leader has to set an
example for his/her followers. An organization’s performance is a reflection of its leadership.
The unsatisfactory performance of an organization is primarily attributed to its leadership. The
following attributed clearly highlight the importance of leadership in business organizations:
Alignment of the organization with business Environment: Faster technological change,
greater international competitions, deregulation of markets, overcapacity in capital-intensive
industries, unstable oil price--all these factors are leading to a highly volatile business
environment. To be effective in this situation, organizations need visionary leaders who can keep
organizations aligned with the business environment on a regular basis. In today’s world of fast-
paced changes, there is need for visionary leadership to enable business organizations survive,
grow and be profitable.
Introduction of change: Doing what was done yesterday, or doing it five or ten percent better,
can no longer guarantee a success for an organization in the present day business scenario. Major
changes, which demand visionary leadership, are more necessary than ever before to survive,
compete effectively and grow in this new environment.
Source of motivation: Leaders are a source of motivation for their subordinates. They motivate
the subordinates not merely by possessing certain leadership traits but by actually utilizing them
to move towards the desired goals. Motivation is an essential element of dynamic leadership in
the absence of which success is doubtful.
Directing group activities: Leaders give direction to organizational efforts by developing a
challenging and meaningful vision for promoting confidence and sincerity of purpose. George R.
Terry has appropriately summed it up as, ‘A leader shows the way by his example. He is not a
pusher, he pulls rather than pushes. ‘It is likely to be very difficult for a group of people to work
efficiently without leadership because a leader can direct the group and its activities towards a
common goal.
Fulfilling social Responsibilities: A leader ensures that the organization remains relevant to be
context in which it exists and justifies its existence over a period of time by fulfilling its social
responsibilities towards different stakeholders of business: consumers, employees, investors,
government, etc.
Motivating Employee: As discussed earlier, motivation is necessary for work performance.
Higher the motivation better would be the performance. A good leader, by exercising his
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leadership, motivates the employees for his performance. Good leadership in the organisation
itself is a motivating factor for the individuals.
Creating confidence: a good leader may create confidence in his followers by directing them,
giving them advice, and getting through them good results in the organisation. Once an
individual, with the help of a leader, puts his efficiency, he tries to maintain it as he acquires
certain level of confidence towards his capacity. Sometimes, individuals fail to recognize their
qualities and capabilities to work in the absence of good direction.
Building morale: morale is expressed as attitudes of employees towards organisation,
management, and voluntary cooperation to offer their ability to the organisation. High morale
leads to high productivity and organizational stability. Through providing good leadership in the
organisation, employees’ morale can be raised high ensuring high productivity and stability in
the organisation. Thus, good leadership is essential in all the aspects of managerial functions
whether it be motivation, communication or direction. Good leadership ensures success in the
organisation, and unsatisfactory human performance in any organisation can be primarily
attributed to poor leadership.
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Theories of Leadership
1) Trait theory
This theory of leadership is based on the assumptions that there are certain distinguishing
characteristics, qualities or traits that make an individual a leader on the basis of which he can be
distinguished from other persons. A leader is the sum total of the traits. There was a method for
identifying some traits. The method was to ask the successful leader himself to explain followers.
Keith Davis is a researcher, have pooled together the following 4 traits that are shared by most
successful leaders.
a) Intelligence: Leader tends to have somewhat higher intelligence than their followers.
b) Social Maturity: Leader tends to be emotionally matured and have a broad interest range.
They have high tolerance and broad interest range.
c) Inner Motivation and Achievement Drive: Leader want to achieve things when they achieve
one thing seek out another.
d) Human Relation Attitudes: Leaders develop a healthy respect for people and realize that to
accomplish tasks, they consider other also.
Traits are “distinctive internal qualities or characteristics of an individual such as physical
characteristics, personality characteristics, skills and abilities and social factors”.
Physical characteristics are personal appearance, age height, complexion, etc.
Personality characteristics are intelligence, dominance, confidence, etc.
Skills and abilities are the power of a leader to be clever, initiative, creative, persuasive and
tactful.
Social factors are leader’s knowledge about his social environment and interpersonal skills.
Based on these qualities, trait theory identifies and compare the:
1. Traits of leaders with those of non-leaders (followers)
2. Traits of effective leaders with those of ineffective leaders
1. Traits of leaders with those of non-leaders (followers)
A general presumption based on the ‘Great Man Theory’ is that leaders are born, not made. The
traits approach gives rise to questions: whether leaders are born or made science. Even if there
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are certain inborn qualities that make one a good leader, these natural talents need
encouragement and development. A person is not born with self-confidence. Self-confidence is
developed, honesty and integrity are a matter of personal choice, motivation to lead comes from
within the individual, and the knowledge of business can be acquired. While cognitive ability has
its origin partly in genes, it still needs to be developed. None of these ingredients are acquired
overnight.
Many researchers identified personal characteristics of individuals with leadership. It tells that
people who possess certain physical and psychological characteristics can become a good leader.
Though no specific list of traits can be identified with leaders, different theorists offer
perceptions about what traits are possessed by the leaders.
Leaders, most commonly are believed to be those who have good physical appearance, are
brighter than others, extrovert and confident in nature. On the contrary, some people like
Mahatma Gandhi and Napleon were great leaders even they do not have strong physical
characteristics. The trait and leadership qualities were, therefore, not found to have not any
positive correlation between them.
2. Traits of effective leaders with those of ineffective leaders
The studies have not been able to identify any set of traits which can distinguish effective or
successful leaders from ineffective or unsuccessful ones. Robert House identified dominance,
self-confidence, need for influence, etc as traits of effective leaders.
Over 100 studies were conducted to identify the leadership traits. They concluded that only 5%
traits identified by different theorists were common to leadership abilities. These traits were
intelligence, initiative, self assurance, overview, health, physique and social background.
Even on the basis of these traits, one cannot always say that those who possess these traits are
always successful leaders. Different combination of traits is totally dependent on the situation
that leader face.
Strengths/Advantages of Trait Theory
It is naturally pleasing theory.
It is valid as lot of research has validated the foundation and basis of the theory.
It serves as a yardstick against which the leadership traits of an individual can be
assessed.
It gives a detailed knowledge and understanding of the leader element in the leadership
process.
Limitations of the Trait Theory
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There is bound to be some subjective judgment in determining who is regarded as a
‘good’ or ‘successful’ leader
The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These descriptions
are simply generalities.
There is also a disagreement over which traits are the most important for an effective
leader
The model attempts to relate physical traits such as, height and weight, to effective
leadership. Most of these factors relate to situational factors. For example, a minimum
weight and height might be necessary to perform the tasks efficiently in a military
leadership position. In business organizations, these are not the requirements to be an
effective leader.
The theory is very complex
2) Behavioral Theory
This theory emphasizes that strong leadership is the result of effective role behavior. Behavioral
Leadership is the study of the actions or behaviors that define a leadership style. These
concentrate on what leaders actually do rather than on their qualities. Different patterns of
behavior are observed and categorized as 'styles of leadership'. According to this theory, group
needs someone to perform 2 major functions or styles:
i) Task-Oriented Styles (Problem solving function)
It relates to provide solution to the problem faced by the groups in performing jobs and activities.
It aims at getting the work done through employees without emphasizing on growth and
development of employees.
It defines the extent to which a leader engages in one-way communication, telling the group
members what to do, where to do, when to do and how to do. It closely supervises the
employees’ performance. Leader behavior is defined in terms of structure, control and
supervision.
ii) Employee-Oriented Styles (Group Maintenance function)
It relates to action of mediating disputes and ensuring that individuals feel valued by the group.
Aims at completion of the task but leaders show friendly behavior towards the follower and
allow them to participate in decision-making processes. This develops creative skill and prepares
them to grow into potential managers.
It is defined at the extent to which the leader engages in two-way communication, provides
encouragement and support to the team members and facilitates interaction. Leader behavior is
defined in terms of praise, listen and facilitate.
Leadership behavior may be viewed in 2 ways:
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a) Functional Behavior
This behavior influences followers positively includes such function as setting clear goals,
motivating employees for achieving goals, building team spirits and effective two way
communication.
b) Dysfunctional Behavior
This behavior is unfavorable to the followers and denotes ineffective leadership. Such a behavior
may be inability to accept employees ideas, display of emotional immaturity, poor human
relations etc.
Limitations of the Behavior Theory
A particular may be functional at a point of time but it may be dysfunctional at another
point of time. Thus, the time element will be the decider of the effectiveness of the
behavior and not the behavior itself.
Effectiveness of leadership behavior depends on many factors which are not in the leader
but external to him like nature of followers and the situation under which the leader‘s
behavior takes place. To the extent, the theory does not explain leadership phenomenon
fully.
3) Situational Theory
Situational theory advocates that a leader is strongly affected by the situation in which he works.
It is a situation that helps developing leadership and from which leader emerges, while traits or
behavior may be supportive elements. A person may be good leader in a particular situation or
set of circumstances, but he may be quite ineffective in a different situation. This theory further
believes that there exists an interaction between a group of workers and its leader. The people
tend to follow the leader who is capable of fulfilling their aspirations.
The central idea was that effective leadership was dependent on a mix of factors. For example,
Fred E. Fiedler argued that effectiveness depends on two interacting factors: leadership style and
the degree to which the situation gives the leader control and influence. Three things are
important here:
· The relationship between the leaders and followers. If leaders are liked and respected
they are more likely to have the support of others.
· The structure of the task. If the task is clearly spelled out as to goals, methods and
standards of performance then it is more likely that leaders will be able to exert influence.
· Position power. If an organization or group confers powers on the leader for the purpose of
getting the job done, then this may well increase the influence of the leader.
The combination of these two factors affects the leadership effectiveness:
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A) Leader’s Behavior: It is affected by two variables
i) Leader’s Characteristics: Leader is influenced by intelligence, ability and personality
characteristics such as attitudes, interest, motivation and physical characteristics such as age, sex,
height, weight etc. All these factors are internal to the leader.
ii) Leader’s Hierarchical Position: Managers at higher level are more concerned with long run
complex problem which require more participation in decision-making. Managers at lower level
are concerned with short run problems involving the daily operations which may not require high
level of participation. The degree of participation affects the leader’s behavior as different levels
face different kind of problem affect the degree of participation in decision making.
B) Situational Factors: It is affected by four variables
i) Subordinates Characteristics: Various characteristics of subordinates affect leadership
depend upon situation to situation.
ii) Leader’s Situation: There are two main variables which determine the leader’s situation i.e.
a) Leader’s Position power: It helps or hinders in influencing others. Thus, high-position power
simplifies the leader’s task of influencing others while low position power makes the leader’s
task more difficult.
b) Leader-Subordinate Relation: It is based on two-way influence in a social-relationship.
Thus, good followers need to success in their own jobs with the help of the leader while helping
their leaders to succeed, thus, if the leaders have good subordinates and good relation with them
the leader is likely to be more effective.
iii) Group Factors: Various group factors like task-design, group composition, group norms and
peer group relationship affect leadership effectiveness and performance, if these are favorable,
the leader will be effective.
iv) Organizational Factors: If organizational factors like organizational climate and
organizational culture are conducive, the leader will be effective.
Limitations of the Situational Theory
1. Overemphasis on the situational aspect: Situation may affect the decision of a leader in a
particular time but it is not every time.
2. Neglect of traits and behavior: This theory neglects traits and behavior of a leader which
play an important role in the emergence of situational leader.
4) Followers Theory or Acceptance Theory
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This theory asserts that the followers are important in deciding whether an individual is a leader
or not. If they accept a person as their leader, he is a leader irrespective of his traits or behavior.
This theory cannot be applied without a group of followers. It is based on the assumption that
groups have certain basic needs which they want to fulfill through their leader. A person is
assumed to be their leader who is successful in satisfying their basic needs. If he does not
succeed in getting their need satisfied, he may neither be said to be a good leader nor will he be
allowed to function as such.
Followers’ theory ignores the quality aspect of leadership. However modern managers are of the
opinion that it is the follower’s theory that is now playing a significant role in managing the
people today. This theory is playing a dominant role in the business, industrial and political
leadership in India.
5) System Approach or Path-Goal theory:
In this theory the main function of the leader is to clarify and set goals with subordinates, to help
them to find the best way for achieving the goal, and to remove the obstacles to their
performance and need satisfaction.
According to this theory leadership is governed by a person’s act rather than by his traits.
Leadership co-ordinates the efforts of the people and stimulate them towards the achievement of
their goal in a particular situation. This approach is called system approach because it considers
all the variables present at the same time, that is, leader, followers, situation, goals, leadership
traits, environment, role, behavior and his coordinating efforts. This theory is recognized as the
modern theory of leadership.
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