Chapter 7 – Directing (Class 12 Business Studies)
1. Meaning of Directing
Directing is one of the most important managerial
functions.
It involves guiding, instructing, supervising,
motivating, and leading employees to achieve
organizational goals.
Without directing, plans remain only on paper.
It is also called the “life spark” of management
because it starts the actual action.
👉 In simple words: Directing = telling people what to do +
motivating them to do it in the best way.
2. Definitions of Directing
1. Koontz & O’Donnell – “Directing is the inter-personal
aspect of managing by which subordinates are led to
understand and contribute effectively and efficiently to the
attainment of organizational goals.”
2. Ernest Dale – “Directing is telling people what to do and
seeing that they do it to the best of their ability.”
3. Characteristics of Directing
1. Pervasive – required at all levels of management (top,
middle, lower).
2. Continuous activity – guidance and motivation are
needed regularly.
3. Initiates action – employees start working only after
direction is given.
4. Flows from top to bottom – managers direct their
subordinates.
5. Human element – concerned with human behaviour,
unlike other functions.
6. Goal-oriented – aims at achieving organizational as well
as personal goals.
4. Importance of Directing
1. Initiates action – converts plans into actual performance.
2. Integrates efforts – coordinates activities of individuals
and departments.
3. Motivates employees – inspires people to work with
commitment.
4. Facilitates change – helps employees adapt to new
methods and technology.
5. Ensures stability and growth – motivated workers
reduce turnover and help long-term growth.
6. Improves efficiency – reduces wastage and increases
productivity.
7. Maintains balance – between individual goals and
organizational goals.
5. Elements of Directing
Directing has four main elements:
(i) Supervision
Meaning: Supervision means overseeing employees at
work and guiding them.
The person performing supervision is called a supervisor.
Functions of Supervisor:
1. Guides and directs workers.
2. Maintains discipline in workplace.
3. Provides on-the-job training.
4. Acts as a link between workers and management.
5. Improves morale of employees.
6. Ensures proper use of resources and minimum wastage.
(ii) Motivation
Meaning: Motivation means creating a desire in
people to work willingly and effectively.
It includes both incentives and positive attitude.
Types of Incentives:
1. Financial Incentives: salary, bonus, commission, profit-
sharing, allowances, medical facilities.
2. Non-Financial Incentives: recognition, praise, job
security, status, promotion, participation in decision-
making, employee empowerment.
Maslow’s Need Hierarchy Theory of Motivation
According to Abraham Maslow, human needs are arranged in a
hierarchy:
1. Physiological Needs – basic needs like food, water,
clothing, shelter (salary, wages).
2. Safety Needs – security of job, safe working conditions,
retirement benefits.
3. Social Needs – friendship, belongingness, teamwork.
4. Esteem Needs – recognition, respect, appreciation,
status.
5. Self-actualization Needs – achieving full potential,
creativity, personal growth.
👉 According to Maslow, unless lower-level needs are satisfied,
higher-level needs do not motivate people.
(iii) Leadership
Meaning: Leadership is the ability to influence and
inspire employees to achieve goals.
A leader is not only a manager but also a motivator, guide,
and friend.
Importance of Leadership:
1. Provides direction to subordinates.
2. Creates team spirit.
3. Builds confidence in employees.
4. Improves productivity and efficiency.
5. Handles conflicts and guides during change.
Styles of Leadership
1. Autocratic (Authoritarian)
o Leader takes all decisions.
o Expects strict obedience.
o Communication is one-way.
✅ Useful in emergencies.
❌ Reduces motivation and creativity.
2. Democratic (Participative)
o Leader involves employees in decision-making.
o Communication is two-way.
✅ Increases motivation and job satisfaction.
❌ May delay decision-making.
3. Laissez-faire (Free-rein)
o Leader gives complete freedom to employees.
o Interference is minimal.
✅ Encourages creativity and innovation.
❌ May cause lack of discipline.
(iv) Communication
Meaning: Communication is the process of exchanging
ideas, facts, and opinions between people.
Process of Communication:
1. Sender (initiates message)
2. Message (idea/information)
3. Encoding (converting message into symbols, words,
gestures)
4. Channel (medium – phone, letter, meeting, email)
5. Receiver (person who receives)
6. Decoding (understanding message)
7. Feedback (response)
Types of Communication
1. Formal Communication
o Flows through official channels (upward, downward,
horizontal).
o Example: orders, reports, instructions.
2. Informal Communication (Grapevine)
o Flows through social/personal contacts, not official
structure.
o Example: chats, gossip.
o Fast but may carry rumors.
Barriers to Effective Communication
1. Semantic Barriers – different meanings of words,
technical jargon.
2. Psychological Barriers – emotions, distrust, lack of
attention.
3. Organizational Barriers – rigid rules, complex structure,
status differences.
4. Personal Barriers – attitude of superiors or subordinates,
lack of confidence.
How to Overcome Barriers:
Use simple language
Ensure proper feedback
Maintain trust and openness
Reduce status differences
Encourage two-way communication
6. Difference Tables
(i) Formal vs Informal Communication
Formal Informal
Communication Communication
Official, follows Unofficial, outside
hierarchy hierarchy
Written/oral Mostly oral
Formal Informal
Communication Communication
Reliable and recorded May be rumors
Slow Very fast
(ii) Leadership Styles
Autocratic Democratic Laissez-faire
Decentralized
Centralized authority Complete freedom
authority
One-way Two-way
No interference
communication communication
Participative
Strict supervision Self-supervision
supervision
May cause
Quick decisions Better satisfaction
confusion
(iii) Motivation – Financial vs Non-Financial
Financial Incentives Non-Financial Incentives
Salary, bonus,
Recognition, praise
commission
Profit-sharing Job security
Perquisites (car, house) Promotion, status
Participation in decision-
Allowances
making
7. Summary
Directing = guiding + motivating + supervising + leading
+ communicating.
Importance = initiates action, integrates efforts, builds
teamwork, ensures stability.
Elements = Supervision, Motivation, Leadership,
Communication.
Motivation = financial + non-financial incentives,
Maslow’s hierarchy.
Leadership styles = autocratic, democratic, laissez-faire.
Communication = process, types (formal/informal),
barriers, solutions.