CHAPTER – 7
DIRECTING
Meaning
Directing as a function of management, refers to the process of instructing, guiding, counselling,
motivating and leading people in the organisation to achieve its objectives. It is the force which
gives the life to the organisational structure.
Directing comprises of:
Issuing orders by a superior to his subordinates.
Supervising the employees when they are performing job.
Motivating them to perform more effectively
Leading them towards the achievement of overall goals of the concern.
Features:
1. Directing initiates action:The other functions of management prepare a set-up base for
action, but directing initiates action in the organisation.
2. Directing takes place at every level of Management (Pervasive): Every manager from
top executive to supervisor performs the function of directing.
3. Directing is a continuous process of supervision, communication, leadership and
motivation. It continues throughout the life of the organisation.
4. Directing flows from top to bottom:It is initiated at the top level and flows to the bottom
through organisational hierarchy.
Importance
1. Initiates Action: It helps to initiate action by the people in the organisation towards
attainment of desired objectives. The employees start working only when they get
instructions and directions from their superiors. It is the directing function which starts
actual work to convert plans into results.
2. Integrates Employee’s Efforts: All the activities of the organisation are interrelated so
it is necessary to coordinate all the activities. It integrates the activities of subordinates
by supervision, guidance and counselling.
3. Means of motivation: It motivates the subordinates to work efficiently and to contribute
their maximum efforts towards the achievement of organisational goals by satisfying their
needs.
4. Facilitates change: Employees often resist changes due to fear of adverse effects on their
employment and promotion. Directing facilitates adjustment in the organisation to cope
with changes in the environment. Directing instills the spirit of cooperation and
commitment among work force.
5. Stability and balance in the organisation: Managers while performing directing
function instruct, guide, supervise and inspire their subordinates in a manner that they are
able to strike a balance between individual and organisational interest
Elements of Direction
1. Supervision: It means observing the subordinates at work to see that they are working in
accordance with plans and to help them in solving their problems. The important thing in
supervision is that it involves face to face contact between superiors and subordinates.
Supervisor’s position is immediately above the worker.
2. Motivation: In the context of an organisation motivation means stimulating employees
of all levels to work with greater enthusiasm and more efficiency for the accomplishment
of the objectives of the enterprises. It involves arousing needs and desires in people so as
to initiate and direct their behaviour in a purposive manner.
3. Leadership: Leadership is the activity of influencing people to strive willingly for
organisational goals. Leadership indicates the ability of an individual to maintain good
interpersonal relations with followers and motivate them to contribute for achieving
organisational objectives. Managers at all levels are expected to be the leaders of their
subordinates.
4. Communication: It is the process of exchange of information between two or more
persons to reach common understanding.
Supervision
Importance of Supervision/Role of a Supervisor /Functions
1. Link between workers and management because the supervisor explains management
policies to workers and brings workers problems to the notice of the management.
2. Ensures issuing Instructions:To make sure that the instructions are communicated to
each and every employee.
3. Facilities Control :Control means match between actual and planned output. It ensures
checking on the methods in use and progress of work according to planned schedule.
4. Maintenance of discipline: The strict supervision and guidance of supervisor encourages
the employees and workers to be more disciplined in the activities.
Under the guidance of superior the workers follow a fixed or strict time table and execute
the plans in right directions.
5. Feedback: The supervisors are directly dealing with the subordinates. As a result,
feedback in the form of suggestions, grievances keep coming to the management. It
improves quality of management decisions and revision of plans & policies.
6. Improved Motivation: A supervisor with good leadership qualities can build up high
morale among workers.
The relationship with the supervisor is a very good incentive to improve the motivation
level of the employees while guiding the employees, the supervisors encourage the
subordinates to perform to their best capacities.
7. Optimum utilisation of resources : All the activities are under the observation of
supervisor so less wastage and optimum utilisation of resources is possible.
Motivation
Meaning: It is the process of stimulating people to act to their best ability to accomplish desired
goals.
Motivation means inspiring the employees to work with greater enthusiasm and more efficiency
for the accomplishment of the objectives of the enterprise. It involves arousing needs and desires
in people so as to initiate and direct their behaviour in a purposive manner.
Bridging the gap between ability to do a certain work and willingness to do a certain work-
Motivation.
Features
1. Motivation is an Internal feeling: Motivation is an internal feeling which means it
cannot be forced on employees. The internal feeling such as need, desire, aspiration etc.
influence human behaviour to behave in a particular manner.
2. Goal Directed Behaviour: It induces people to behave in such a manner so that they can
achieve their goals. A motivated person works towards the achievement of desired goals.
3. Motivation can be either positive or Negative:Positive motivation means inspiring
people to work better and appreciating a work that is well done e.g., pay increase,
promotion, recognition. Negative motivation means forcing people to work by
threatening or punishing them. e.g., issue of memo, demotion, stopping increments etc.
4. Complex Process: It is a complex and difficult process. Individuals differ in their needs
and wants and moreover human needs change from time to time.
Maslow’s Need Hierarchy-Theory of Motivation: Maslow’s Theory focuses on the needs as
the basis for motivation. It classifies human needs into five categories.
It helps managers to realise that need level of employees should be identified to provide
motivation to them. It is based on the following assumptions:
• People’s behaviour is based on their needs.
• People’s needs are in hierarchical order.
• A satisfied need can no longer motivate a person.
• A person moves to the next higher level of hierarchy only when the lower need is satisfied
Organisational examples
Financial and Non-Financial Incentives: Incentive means all measures which are used to
motivate people to improve performance.
Financial Incentives (which can be calculated in terms of money)
1. Pay and allowances: Salary is the basic monetary incentive. It includes basic pay,
dearness allowance and other allowances.
2. Productivity linked wage incentives: Aims at linking payment of wages to increase
in productivity.
3. Bonus: An incentive offered over and above the wages/salary.
4. Profit sharing: It means to provide a share to employees in the profits. It creates a
feeling of ownership to employees.
5. Co-partnership/Stock option: employees are offered company’s share at a price
which is lower than market price.
6. Retirement benefits: Such as provident fund, pension and gratuity etc.
7. Perquisites: Such as car allowance, medical help [Link] measures help to provide
motivation to the employees.
Non-Financial Incentives (which cannot be calculated in terms of money)
1. Status: Status means ranking of positions in the organisation. Psychological, social
and esteem needs of an individual are satisfied by the status given to their job.
2. Organisational climate: Employees can be motivated with favourable atmosphere.
3. Career advancement opportunity: Works as a tonic and encourages employees to
exhibit improved performance.
4. Job enrichment: If jobs are enriched and made interesting, the job itself becomes a
source of motivation to the employees.
5. Employees recognition programmes: Most employees feel that what they should
be recognised by the higher authorities.
6. Job security: Employees want their job to be secured and it is a strong motivator
but on the other hand it makes the employees lazy.
7. Employee participation: It means involving employees in the decision making.
8. Employee empowerment: Means giving more autonomy and powers to
subordinates.
Leadership
Leadership is the activity of influencing people to strive willingly for mutual objectives.
Managers at all levels are expected to be the leaders of their subordinates.
Leadership indicates the ability of an individual to maintain good interpersonal relations with
followers and motivate them to contribute for achieving organisational objectives.
Features of leadership
• Leadership indicates ability of an individual to influence others.
• Leadership tries to bring change in the behaviour of others.
• Leadership indicates interpersonal relations between leaders and followers.
• Leadership is exercised to achieve common goals of the organisation.
• Leadership is a continuous process.
Styles of Leadership.
A leader may use all styles over a period of time but one style tends to predominate as his normal
way of using power.
Different types of leadership style are as follows:
[Link] or Authoritarian Leader
An autocratic leader gives orders and insists that they are obeyed. He determines the policies for
the group without consulting them.
He does not give information about future plans but simply tells the group what immediate steps
they must take.
Under this style, all decision-making power is centralized in the leader. He does not give the
subordinates any freedom to influence his decisions.
It is like “bossing people around.” This style should normally be used on rare occasion.
When should authoritarian leadership be applied?
It is best applied to situations where is little time for group decision making.
Or where the leader is the most knowledgeable member of the group.
Democratic or Participative Leader
Democratic leader gives order only after consulting the group and worksout the policies with the
acceptance of the group.
He never asks people to do things without working out the long term plans on which they are
working. He favours decision making by the group as shown in the diagram. This improves the
attitude of the employees towards their jobs and the organization thereby increasing their morale.
Using this style is of mutual benefit - it
allows them (subordinates) to become
part of the team and helps leaders
(seniors) to make better decisions.
A is the leader (Group Centered-
Leadership)
When should
Participative/democratic leadership be applied?
It works best in situations where group members are skilled and eager to share their knowledge.
It is also important to have plenty of time to allow people to contribute, develop a plan and then
vote on the best course of action.
This style should NOT be used:
In situations where roles are unclear or time is of the essence, democratic leadership can lead to
communication failures and incomplete projects.
Laissez Faire or Free Rein Leader
Free rein leader gives complete freedom to the subordinates. Such a leader avoids use of power.
He depends largely upon the group to establish its own goals and work out its own problems.
Group members work themselves as per their own choice and competence. The leader exists as a
contact man with the outsiders to bring information and the resources which the group requires
for accomplishing the job.
Note: This is also known as laissez faire which means no interference in the affairs of others.
[French laissez means to let/allow fair means to do].
When should laissez faire/free rein leadership be applied This is an effective style to use
when:
Followers are highly skilled, experienced and educated.
Followers have pride in their work and the drive to do it successfully on their own.
Outside experts, such as staff specialists or consultants are being used.
Followers are trustworthy and experienced.
This style should NOT be used when:
Followers feel insecure at the non - availability of a leader.
The leader cannot or will not provide regular feedback to his followers.
Communication
It is the process of exchange of information between two or more persons to reach common
understanding.
Communication plays key role in the success of a manager. Directing abilities of manager mainly
depend upon his communication skills. That is why organization always emphasizes on improving
communication skills of managers as well as employees. Communication is important for the
directing function because all other elements of directing become possible only when there is
adequate communication.
Elements of Communication Process
1. Sender: Who conveys his thoughts or ideas.
2. Message: Ideas, feelings, suggestions, order etc.
3. Encoding: Converting the message into communication symbols such as words/pictures etc.
4. Media: Path/Channel through which encoded message is transmitted to receiver e.g., face to
face, phone call, internet etc.
5. Decoding: Converting encoded symbols of the sender.
6.
7. Receiver:Who receives communication of the sender.
8. Feedback:All those actions of receiver indicating that he has received and understood the
message of the sender.
9. Noise: Some obstruction or hindrance to communication like poor telephone connection,
inattentive receiver.
Communication taking place within an organisation may be broadly classified into two categories.
[Link] Communication :refers to official communication which takes place following the
chain of command. Classification of formal communication-
• Vertical Communication: Flows vertically i.e., upwards or downwards through formal
channels.
[Link] Communication: Higher to lower level like plans, policies, rules etc.
[Link] Communication: Subordinate too superior like suggestions, grievances,
reports etc.
• Horizontal/lateral Communication: between persons holding positions at the same
level of the organisation e.g., production manager may contact marketing manager about
product design, quality etc.
Merits and demerits of formal communication
Merits :
• Orderly flow of information
• Easy knowledge of source of information
• Fixation of responsibility
• Easy in control
Demerits:
• Slow process
• Rigidity
• Lack of personal interest
• Overload of work
Informal Communication: Communication that takes place without following the formal lines
of communication is said to be informal communication. There is no fixed direction or path for
the flow of information. It is based on informal relations and arises out of personal and social
needs of the employees.
Merits and demerits of Informal communication
Merits :
• Fast communication
• Improved relation
• Social satisfaction
• Fill the gaps
Demerits :
• Misrepresentation of messages
• Carry rumours
• Unorganised and irregular
• Leakage of important facts
Difference between Formal & Informal Communication
Formal
Basis Communication Informal Communication
1. Meaning Follows the official chain Between individuals and groups
of command which are not officially
recognised.
2. Channel Through a definite path No definite path.
3. Speed Slow: because all information Very fast - Cuts across all the
has to pass through an official channels.
established scalar chain.
4. Nature More rigid and cannot be Flexible and varies from
modified individual to individual.
[Link] It is mostly expressed in It mostly tends to be oral.
written form.
6. Purpose Achieve organisation Meet personal and social needs
goals.
of employees.
Barriers to Effective Communication [Categories]
Semantic Barriers: Concerned with problems and obstructions in the process of encoding or
decoding of message into words or impressions. Semantic barriers are as follows:
• Badly expressed message: Sometimes intended meaning may not be conveyed.
• Words with different meanings confuses the receiver.
• Faulty translations may transfer wrong messages.
• Unclarified assumption: Different interpretations may result in confusion.
• Technical Jargon: Technical words may not be understood by the workers.
Psychological/Emotional barriers
• Premature evaluation-judgement before listening leads to misunderstanding.
• Lack of attention/poor listening may disappoint the employees.
• Loss by transmission and poor retention: When oral communication passes through
various levels it destroys the structure of the message or leads to transmission of
inaccurate message.
• Distrust: If the parties do not believe each other. They cannot understand each other’s
message in its original sense.
Organisational Barriers
Factors related to organisation structure:
• If organizational policy does not support free flow of information it creates problem.
• Rules and regulations: Rigid rules and regulations may lead to red tapism and delay of
action.
• Status conscious managers may not allow subordinates to express their feelings freely.
• Complexity in organization structure results in delay and distortion.
Personal Barriers: of superiors and subordinates.
• Fear of challenge to authority may withhold or suppress a particular communication.
• Lack of confidence of superior in his subordinates.
• Unwillingness to communicate. e.g., fear of punishment/demotion.
• Lack of proper incentives stops the subordinates to offer useful suggestions.
Improving Communication Effectiveness
• Clarify the ideas before communication.
• Communicate according to the needs of receiver.
• Consult others before communicating.
• Be aware of language, tone and content of message.
• Ensure proper feedback. Feedback provides opportunity for suggestions and criticism.
• Follow up communication helps to remove hurdles, misunderstanding of information
given by managers to subordinates.
• Be a good listener.