MODULE 4

DIRECTING
 Definition
• According to Theo Haimann,” Directing consists of the
process and techniques utilized in issuing instructions
and making certain that operations are carried on as
originally planned.”

• It is the process of integrating the people within the

organisation so as to obtain their willing co-operation
towards meeting the predetermined goals.

• In the context of management of an organisation,

directing refers to the process of instructing, guiding,
counselling, motivating and leading people in the
organisation to achieve its objectives.
Characteristics
(i) Directing initiate action

(ii) Directing takes place at every level of management

(iii) Directing is a continuous process

(iv) Directing flows from top to bottom

Importance of Directing
1. Directing helps to initiate action by people in the organisation towards attainment of
desired objectives.

2. Directing integrates employees’ efforts in the organisation in such a way that every
individual effort contributes to the organisational performance. Thus, it ensures that the
individuals work for organisational goals.

3. Directing guides employees to fully realise their potential and capabilities by

motivating and providing effective leadership. A good leader can always identify the
potential of his employees and motivate them to extract work up to their full potential.
4. Directing facilitates introduction of needed changes in the organisation. Generally, people

have a tendency to resist changes in the organisation. Effective directing through

motivation, communication and leadership helps to reduce such resistance and develop

required cooperation in introducing changes in the organsation.

5. Effective directing helps to bring stability and balance in the organisation since it fosters

cooperation and commitment among the people and helps to achieve balance among various

groups, activities and the departments.

Principles of directing
• Maximum individual contribution:
This principle emphasises that directing techniques must help every individual in the
organisation to contribute to his maximum potential for achievement of organisational
objectives. It should bring out untapped energies of employees for the efficiency of
organisation.
• Harmony of objectives:
Very often, we find that individual objectives of employees and the organisational objectives
as understood are conflicting to each other. A good directing should provide harmony by
convincing that employee rewards and work efficiency are complimentary to each other.
• Unity of Command:

This principle insists that a person in the organisation should receive instructions
from one superior only. If instructions are received from more than one, it
creates confusion, conflict and disorder in the organisation. Adherence to this
principle ensures effective direction.

• Appropriateness of direction technique:

According to this principle, appropriate motivational and leadership technique

should be used while directing the people based on subordinate needs,
capabilities, attitudes and other situational variables.
• Managerial communication:

Effective managerial communication across all levels in the organisation makes

direction effective. Directing should convey clear instructions to create total

understanding to subordinates. Through proper feedback, the managers should ensure

that subordinate understands his instructions clearly.

• Use of informal organisation:

A manager should realise that informal groups or organisations exist within every

formal organisation. He should spot and make use of such organisations for effective

directing.
• Leadership:

While directing the subordinates, managers should exercise good leadership as it can
influence the subordinates positively without causing dissatisfaction among them.

• Follow through:

Mere giving of an order is not sufficient. Managers should follow it up by reviewing

continuously whether orders are being implemented accordingly or any problems are
being encountered. If necessary, suitable modifications should be made in the directions.
Techniques of Direction
1. Consultative direction:
Under this method, the supervisor has consultation with his subordinates before issuing a
direction. The consultation is made to find out the feasibility, enforceability and nature of
problem.

2. Free rein direction:

Under these techniques, the subordinate is encouraged to solve the problem
independently. The subordinate should take initiative to solve the problem.

3. Autocratic direction:
It is opposite to free rein direction. The supervisor commands his subordinates and has
close supervision over them.
Elements of Direction

(i) Supervision

(ii) Motivation

(iii) Leadership

(iv) Communication
SUPERVISION
• 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.
MOTIVATION
Motivation is the process of stimulating people to action to accomplish desired goals.

It depends upon satisfying needs of people.

Features of Motivation:

1. Motivation is an internal feeling.

2. Motivation produces goal directed behaviour.

3. (iii) Motivation can be either positive or negative.

4. (iv) Motivation is a complex process

Motivation Process
Unsatisfied Need

Tension

Drives

Search Behaviour

Satisfied Need

Reduction of Tension
THEORIES OF MOTIVATION

1. Maslow’s Need Hierarchy Theory

Abraham Harold Maslow, an eminent US psychologist, gave a general theory of
motivation known as the Need Hierarchy Theory in 1943.

According to him, there seems to be a hierarchy into which human needs are arranged.

Maslow argued that as one’s need is met, then the individual moves on to the next
need.
a) Physiological Needs:
These needs are most basic in the hierarchy and corresponds to primary needs.
Hunger, thirst, shelter, sleep and sex are some examples of these needs. In the
organisational context, basic salary helps to satisfy these needs

b) Safety/Security Needs:
These needs provide security and protection from physical and emotional harm.
Examples: job security, stability of income, Pension plans etc.
(iii) Social Needs( Affiliation/Belonging Needs):

These needs refer to affection, sense of belongingness, acceptance and friendship.

(iv) Esteem Needs(Ego needs) :

These include factors such as self-respect, autonomy status, recognition and

attention.

(v) Self-Actualisation Needs:

It is the highest level of need in the hierarchy. It refers to the drive to become
what one is capable of becoming. These needs include growth, self-fulfillment
and achievement of goals.
 2. McGregor’s Theory X and Theory Y:

• Prof. Douglas McGregor has presented two opposite sets of assumptions

about employees. These have been represented by Theory X and Theory Y.

• Theory X represents standard bureaucratic and authoritarian attitude

towards employees and is based on certain assumptions such as:

(i) the average person dislikes work and, whenever possible, will avoid it;

(ii) most people are not ambitious, have little desire for responsibility and
prefer to be directed;
(iii) to get people to work, it is necessary to use strict control, threats,
constant pressure, coercion, persuasion, and even punishment;

(iv) most people have little capacity for creativity in solving

organisational problems; and

(v) people actually like to be directed and supervised very closely.

Theory Y assumes that people are not by nature lazy and unreliable. They enjoy work,
show initiative and imagination in self-direction and self-control.

Some assumptions of Theory Y are:

(i) Work is a natural activity, like playing and rest, if the conditions are favourable.

(ii) Close supervision and threats of punishment are not the only ways to get people to do
things.

(iii) Motivation occurs at the social esteem and self-actualisation levels, as well as at the
physiological and security levels.

(iv) People can be self-directed and be creative at work if properly motivated.

3. Herzberg’s Two Factor Theory (Motivation – Hygiene
Theory)

• The motivation – hygiene theory was proposed by Fredrick Herzberg, a well

known psychologist, in 1959.

• According to Herzberg, there are two separate factors that influence motivation.

• They are

(i) hygiene or maintenance factors and

(ii) motivational factors.

• Hygiene Factors –

They are also called as dissatisfiers. The presence of these factors will not motivate
people in an organization. Otherwise, dissatisfaction will arise. Herzberg called these
factors as maintenance factors because they are necessary to maintain a reasonable
level of satisfaction in the employees. Any increase beyond this level will not provide
any satisfaction to the employees; however, any cut below this level will dissatisfy
them. They are known as hygiene factors because they support employees’ mental
health.

Eg: company policies and administration, supervision, inter-personal relations,

working conditions, pay, job security, personal life, status.
• Motivation Factors –
These factors are satisfiers. These are a set of job conditions which
operate primarily to build strong motivational factors.

According to Herzberg, the six motivational factors motivate the

employees are achievement, recognition, advancement, challenging
work, possibilities for growth and responsibility.
4. McClelland’s Achievement or Need Theory

David C McClelland, a Harvard psychologist, has proposed that there are three
major relevant motives, most needs in work place situations. According to him, the
motives are

1. The Need for Achievement i.e., strives to succeed.

2. The Need for Affiliation i.e., warm relationship with others.

3. The Need for Power i.e., controls other people.

• McClelland's theory proposes that every person has three main motivating drivers,
and the dominant one depends on their life experiences and culture.

• Unlike Maslow, who said needs are hierarchical, McClelland argued that these
needs are learned and can be used to understand what motivates people at work.

The Three Learned Needs:

1. Need for Achievement

What it is:

A drive to excel, succeed, and achieve goals.

What they are like:

• They set challenging but realistic goals for themselves.

• They take calculated risks (not wild gambles).

• They love getting concrete, task-related feedback on their performance.

• They prefer to work alone or with other high achievers.

• They are highly focused on completing tasks and are often restless and innovative.

They are motivated by:

Challenging projects, personal responsibility, and recognition for their

accomplishments.
2. Need for Power
What it is:
A drive to influence, control, and have an impact on others.
What they are like:
• They enjoy competition and winning.
• They like being in charge and having status and authority.

They are motivated by:

Leadership roles, the ability to influence decisions, competitive situations, and

recognition of their authority.
3. Need for Affiliation

What it is: A drive for friendly and close interpersonal relationships.

What they are like:

• They want to be liked and accepted by others.

• They prioritize harmony and collaboration over conflict.

• They enjoy social activities and being part of a group.

• They may have difficulty making tough decisions that could upset others.

They are motivated by:

Collaborative work environments, supportive relationships, social acceptance, and the

opportunity to build strong personal connections at work.
Vroom’s Expectancy Theory:

• According to this theory, an employee’s motivation is a force driving him to

achieve some level of job performance. The force or effort depends upon the
perception of the probability or likelihood of certain outcomes resulting from the
efforts, as related to the value one places on these outcomes.

• For example, if an employee believes that if one performs at a high level, will be
paid a higher income which is of value to him, then produce more.
• In achieving a high level of performance, one has the satisfaction which, in turn,
influences future effort.

• The essence of this theory is that an employee performs a kind of cost-benefit

analysis. If the estimated benefit is enough to justify the cost of greater effort one
is likely to put in greater effort
• Vroom’s Expectancy Theory explains why people choose to work hard or not.
According to this theory, motivation depends on expected results.

• People are motivated when they believe:

1
• 1️⃣ Effort → Performance
If I work hard, I can perform well.

• 2️⃣ Performance → Reward

If I perform well, I will receive a reward.

• 3️⃣ Reward → Satisfaction (Value)

The reward is valuable and important to me.
Therefore, motivation =
Will my effort lead to success?

Will success give me rewards?

Do I value those rewards?

If all three are strong, motivation is high.

LEADERSHIP
• Leadership is the activity of influencing
people to strive willingly for group
objectives.
- George Terry

• Leadership is the art or process of

influencing people so that they will strive
willingly and enthusiastically towards the
achievement of group goals.

-Harold Koontz and Heinz Weihrich

Definition

• Leadership is the process of influencing the behaviour of people by

making them strive voluntarily towards achievement of 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.
Features of leadership
(i) Leadership indicates ability of an individual to influence others.

(ii) Leadership tries to bring change in the behaviour of others.

(iii) Leadership indicates interpersonal relations between leaders and followers.

(iv) Leadership is exercised to achieve common goals of the organisation.

(v) Leadership is a continuous process.

Leadership Styles

Depending on the use of authority, there are three basic styles of

leadership:

(i) Autocratic

(ii) Democratic, and

(iii) Laissez-faire
(i) Autocratic or Authoritarian leader

• An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager

is following this style, then communication is only one-way, with the subordinate only acting
according to the command given by the manager.

• This leader is dogmatic, i.e., does not change or wish to be contradicted. His following is based

on the assumption that reward or punishment both can be given depending upon the result.

• This leadership style is effective in getting productivity in many situations like in a factory where

the supervisor is responsible for production on time and has to ensure labour productivity.

• Quick decision-making is also facilitated. But there are variations also, they may listen to

everyone’s opinion, consider subordinates ideas and concerns but the decision will be their own.
(ii) Democratic or Participative leader

• A democratic leader will develop action plans and makes decisions in

consultation with his subordinates. He will encourage them to participate in
decision-making.

• This kind of leadership style is more common now-a-days, since leaders also
recognise that people perform best if they have set their own objectives.

• They also need to respect the other’s opinion and support subordinates to
perform their duties and accomplish organisational objectives. They exercise
more control by using forces within the group.
(iii) Laissez faire or Free-rein leader

• Such a leader does not believe in the use of power unless it is absolutely
essential. The followers are given a high degree of independence to
formulate their own objectives and ways to achieve them.

• The group members work on their own tasks resolving issues

themselves. The manager is there only to support them and supply them
the required information to complete the task assigned. At the same time,
the subordinate assumes responsibility for the work to be performed.
Leadership Theories

• Great Man Theory/Trait Theory of Leadership

• Behavioural Theories

(1) Ohio State Studies

(2) University of Michigan Studies

(3) The Managerial Grid

• Contingency/Situational Theories

• Transactional Theory of Leadership

• Transformational Theory of Leadership

Great Man Theory/Trait Theory of Leadership

The assumption behind trait theory was that “leaders are born and not made”.
This concept was popularly known as the „Great Man Theory‟ of leadership.

The theory also assumes that a leader cannot be a normal person and they are
different from the average person in terms of personality traits such as intelligence,
perseverance and ambition.

The trait theory assumes that leaders are born with inherited traits and good leaders
have the right combination of traits.
 In 1974, stogdill identified certain traits and skills that are essential for a leader, which are
as follows:
TRIATS SKILLS

• Adaptable to situations • Clever (Intelligent)

• Alert to social environment • Conceptually skilled
• Ambitious and achievement oriented • Creative
• Assertive • Diplomatic and tactful
• Cooperative • Fluent in speaking
• Decisive • Knowledgeable about group task
• Dependable • Organised (administrative ability)
• Dominant (desire to influence others) • Persuasive
• Energetic (high activity level) • Socially-skilled
• Persistent
• Self-confident
• Tolerant to stress  Willing to assume
responsibility
 Behavioural Theories
While the assumption behind traits theory is that „leaders are born, rather than
made‟, behavioural theories assume that specific behavioural patterns of leaders can
be acquired through learning and experience. While the trait theory concentrates on
“what the leaders are”, the behavioural theories concentrate on “what the leaders
do”.

Four different behavioural pattern of leadership has been dealt with, which are as
follows:
1) Ohio State Studies

One of the foremost studies that emanated on behavioural theories was the study made by
Ohio State University in 1945 by E.A. Fleishman, E.F. Harris and H.E. Burtt. The study
narrowed the leadership behaviours into two categories, viz. initiating structure and
consideration, under which the various leadership behaviours were clubbed.

(i) Initiating Structure:

Initiating structure refers to the extent to which a leader is likely to define and structure his
or her role and those of employees in the search for goal attainment. It includes behaviour
that attempts to organise work, work relationships, and goals. A leader with initiating
structure is generally task oriented, with focus on performance of employees and meeting
of deadlines.
ii) Consideration:

As per “consideration” category, a leader pays more attention to the employee of

the organization rather than the task and shows concern for the well-being, comfort
and satisfaction of employees.

That is, a leader focuses on the relationships that are characterised by mutual trust,
respect for employees‟ ideas, and regard for their feelings.
(2) University of Michigan Studies
Similar to the Ohio State University studies, research on leadership studies was also
carried out by the University of Michigan’s Research centres, in 1946 by Rensis
Likert and his associates. The study made an analysis of the relationship between
leadership behaviours and organizational performances. Michigan Studies also
identified a two factor component, viz. “employee-oriented leader” and
“production-oriented leader.”
(i) Employee-Oriented Leader:

The concern of the employee-oriented leaders were more on the interpersonal

relations with the employees and such leaders paid more attention on the needs of
the employees and accepted the individual differences among members.

(ii) Production-Oriented Leader:

The production oriented-leaders paid attention to the technical aspects of the job or
the tasks assigned to the employees, rather than on employees. Such leaders gave
least importance to the group members, and regarded the employees as only a
means to achieve the ends, that is, the goals of an organization.
(3) The Managerial Grid
Like the Ohio State studies and Michigan studies, the Managerial Grid theory of
leadership was also based on the styles of “concern for people” and “concern for
production.”

The Managerial Grid theory of leadership was proposed by Robert Blake and Jane
Mouton in 1964. This theory which is depicted in a graphical form is also known as the
“Leadership Grid Theory”.

The grid is a nine-by-nine matrix which outlines 81 different styles of leadership. The
grid has 9 possible positions along each axis creating 81 different positions in which the
leader‟s style may fall.
Through the Managerial Grid, 5 kinds of Leadership Style was identified, which
include the following:

Impoverished Management (1,1)

This style is characterized by a low concern for both people and production. Leaders
with this style exert minimal effort to get the job done and provide little to no support
or guidance to their team [Link] approach often leads to poor performance, low
morale, and a lack of direction. It is generally considered the least effective leadership
style.
Country Club Management (1,9)
This leadership style prioritizes employee well-being over productivity. Leaders aim
to foster a pleasant and welcoming workplace, sometimes sacrificing the
organization's objectives.

While this approach can result in high employee satisfaction and morale, it may also
lead to inefficiency and a lack of focus on productivity.
Produce Or Perish Management (9,1)

"Produce-or-perish" leadership, also known as the "authoritarian" or "task-oriented"

style, is a concept from the Managerial Grid Model. Leaders who adopt this style
focus intensely on task completion and productivity, often at the expense of
employee morale and satisfaction.

They prioritize efficiency and results over relationships, using strict control and
directives to ensure goals are met. This can lead to high output in the short term but
may cause employee burnout and high turnover due to the lack of consideration for
workers' needs and well-being.
Middle-of-the-Road Management (5,5)
This style represents a balanced approach, with moderate concern for both people
and production. Leaders with this style aim to find a compromise between achieving
organizational goals and maintaining employee satisfaction.

While this approach can result in reasonable performance and moderate morale, it
may lack the drive for excellence and the deep engagement of more focused
leadership styles.
Team Management (9,9)
This style is characterized by a high concern for both people and production.
Leaders with this approach strive to achieve organizational goals while also
fostering a supportive and collaborative work environment.

This style is generally considered the most effective, as it promotes high

productivity, strong team cohesion, and high employee satisfaction.
Communication
• Communication is a process of transferring information and ideas among people in an
organization. It includes the clear, concise, and effective transfer of instructions, feedback,
and information. This ensures that employees know what is expected of them and are
informed about developments within the organization.

• Communication is the backbone of directing because it gives an employee a feeling of

belonging and keeps them well-informed. Proper communication prevents
misunderstandings and enhances coordination.

• It also plays a significant role in feedback mechanisms where employees can express their
complaints and managers respond effectively.
CO-ORDINATION
“Co-ordination is the orderly arrangement of group efforts to

provide unity of action in the pursuit of common goals.”

It simply means integrating the activities of different
departments and individuals to achieve the common
organizational goals effectively.
Need / Importance of Co-ordination
Unity of Direction
• All departments must work towards the same organizational goal.
• Co-ordination ensures that everyone’s efforts are directed towards that
common purpose.
Teamwork
• Promotes collaboration and team spirit among employees.
• Helps different individuals with diverse skills to work together
smoothly.
Integration of Efforts
• Combines the work of different departments so that all efforts complement each
other.

• Prevents overlapping or duplication of work.

Efficiency and Economy

• Proper co-ordination minimizes wastage of time, money, and resources.

• Ensures maximum output with minimum input.

Adaptability to Change

• Business environments keep changing — new technologies, policies, or customer

preferences.

• Co-ordination helps departments adjust their work quickly and effectively.

Achievement of Organizational Goals

• Co-ordination aligns all activities and resources towards achieving the overall business
objectives.

• It ensures that every individual’s effort contributes to the organization’s success.

• Without co-ordination, even the best plans may fail due to conflicting actions.
 CONTROLLING
• Controlling means ensuring that activities in an organisation are performed as per the plans.

Controlling also ensures that an organisation’s resources are being used effectively and efficiently
for the achievement of predetermined goals. Controlling is, thus, a goal-oriented function.

• The controlling function finds out how far actual performance deviates from standards, analyses

the causes of such deviations and attempts to take corrective actions based on the same.

• This process helps in formulation of future plans in the light of the problems that were identified

and, thus, helps in better planning in the future periods.

• Thus, controlling only completes one cycle of management process and improves planning in the

next cycle.
IMPORTANCE OF CONTROLING

• Accomplishing organisational goals

• Judging accuracy of standards

• Improving employee motivation:

• Ensuring order and discipline

• Facilitating coordination in action

Process of Controlling

1. Setting performance standards

2. Measurement of actual performance

3. Comparison of actual performance with standards

4. Analysing deviations

5. Taking corrective action

1. Setting Performance Standards:

The first step in the controlling process is setting up of performance standards.

Standards are the criteria against which actual performance would be measured.
Thus, standards serve as benchmarks towards which an organisation strives to work.

Standards can be set in both quantitative as well as qualitative terms. For

instance, standards set in terms of cost to be incurred, revenue to be earned, product
units to be produced and sold, time to be spent in performing a task, all represents
quantitative standards. Sometimes standards may also be set in qualitative terms.
Improving goodwill and motivation level of employees are examples of qualitative
standards.
2. Measurement of Actual Performance:

Once performance standards are set, the next step is measurement of actual
performance. Performance should be measured in an objective and reliable manner.
There are several techniques for measurement of performance. These include
personal observation, sample checking, performance reports, etc.

Performance should be measured in the same units in which standards are set as this
would make their comparison easier.

Measurement of performance of an employee may require preparation of

performance report by his superior.
3. Comparing Actual Performance with Standards:
This step involves comparison of actual performance with the standard. Such
comparison will reveal the deviation between actual and desired results.
Comparison becomes easier when standards are set in quantitative terms.

For instance, performance of a worker in terms of units produced in a week can be

easily measured against the standard output for the week.
4. Analysing Deviations:

Some deviation in performance can be expected in all activities. It is, therefore, important to
determine the acceptable range of deviations. Also, deviations in key areas of business need
to be attended more urgently as compared to deviations in certain insignificant areas. Critical
point control and management by exception should be used by a manager in this regard.

After identifying the deviations that demand managerial attention, these deviations need to be
analysed for their causes. Deviations may have multiple causes for their origin. These include
unrealistic standards, defective process, inadequacy of resources, structural drawbacks,
organisational constraints and environmental factors beyond the control of the organisation.
It is necessary to identify the exact cause(s) of deviations, failing which, an
appropriate corrective action might not be possible. The deviations and their causes
are then reported and corrective action taken at appropriate level.

5. Taking Corrective Action:

The final step in the controlling process is taking corrective action. No corrective
action is required when the deviations are within acceptable limits. However, when
the deviations go beyond the acceptable range, especially in the important areas, it
demands immediate managerial attention so that deviations do not occur again and
standards are accomplished.
THANK YOU