Meaning:

Directing means giving instructions, guiding, counseling, motivating and leading the
staff in an organization in doing work to achieve Organizational goals. Directing is a
key managerial function to be performed by the manager along with planning,
organizing, staffing and controlling. From top executive to supervisor performs the
function of directing and it takes place accordingly wherever superior – subordinate
relations exist.Directing is a continuous process initiated at top level and flows to the
bottom through organizational hierarchy.

Direction has got following characteristics:

1. Pervasive Function- Directing is required at all levels of organization. Every manager

provides guidance and inspiration to his subordinates.

2. Continuous Activity- Direction is a continuous activity as it continuous throughout

the life of organization.

3. Human Factor- Directing function is related to subordinates and therefore it is related

to human factor. Since human factor is complex and behaviour is unpredictable,
direction function becomes important.

4. Creative Activity- Direction function helps in converting plans into performance.

Without this function, people become inactive and physical resources are meaningless.

5. Executive Function- Direction function is carried out by all managers and executives
at all levels throughout the working of an enterprise, a subordinate receives instructions
from his superior only.

6. Delegate Function- Direction is supposed to be a function dealing with human

beings. Human behaviour is unpredictable by nature and conditioning the people’s
behaviour towards the goals of the enterprise is what the executive does in this
function. Therefore, it is termed as having delicacy in it to tackle human behaviour.

Importance

1. Initiates Action: It helps to initiate action by the people in the organization 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 organization are interrelated so
it is necessary to coordinate all the activities. It integrates the activities of subordinates
by supervision, guidance and counseling.

3. Means of motivation: It motivates the subordinates to work efficiently and to

contribute their maximum efforts towards the achievement of organizational goals.

4. Facilitates change: Employees often resist changes due to fear of adverse effects on
their employment and promotion. Directing facilitates adjustment in the organization to
cope with changes in the environment.

5. Stability and balance in the organization: Managers while performing a directing

function instruct, guide, supervise and inspire their subordinates in a manner that they
are able to strike a balance between individual and organizational interests.

Elements of Directing:

1. Supervision
2. Motivation
3. Leadership
4. communication

(i) Supervision- implies overseeing the work of subordinates by their superiors. It is the
act of watching & directing work & workers.

(ii) Motivation- means inspiring, stimulating or encouraging the subordinates with zeal
to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

(iii) Leadership- may be defined as a process by which a manager guides and

influences the work of subordinates in desired direction.

(iv) Communications- is the process of passing information, experience, opinion etc

from one person to another. It is a bridge of understanding.

Motivation

Meaning:

i. Incitement or inducement to act/move.

ii. Process of stimulating people to action to accomplish desired goals.

• Three key terms = motive, motivation, motivators

Motive :inner state that energizes, activates and directs behaviour towards goals.

Arises out of unsatisfied needs = causes restlessness.

Motivation : Process of stimulating people to action + Depend on satisfying needs of

people.

Motivators: Technique used to motivate people.Egs. = pay, bonus, promotion,

recognition etc.

Features

1. Psychological Phenomenon: Motivation is an internal feeling which means it cannot

be forced on employees. The internal feelings such as need, desire, aspiration etc.
influence human behavior to behave in a particular manner.

2. Goal Directed Behavior: 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 increases
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.

5. Continuous Process: Human needs are unlimited and so they keep on changing
continuously, satisfaction of one need gives rise to another. As soon as one need is
satisfied another need arises. So managers have to continuously perform the function of
motivation.

Maslow‟s Hierarchy Of Needs:

Maslow‘s need hierarchy is considered to be fundamental to the understanding of

motivation and plays an important role in motivation.
• People have a wide range of needs like physiological needs, social needs, safety
needs, esteem needs and self actualisation needs which motivate them to work.

• The manager must understand the needs and wants of people in order to motivate
them and improve their performance levels.

• For the satisfaction of these needs, managers must offer different incentives (monetary
and non-monetary).

NEED
1. Basic Physiological Needs
Most basic in the hierarchy and corresponds to primary needs. Hunger, thirst, shelter,
sleep.
Offer monetary incentives e.g. Good salary/wages and comfortable working conditions
2. Safety/Security Needs
Security and protection from physical and emotional harm, stability of Income etc.
Offer job security, pension, insurance etc
3. Affiliation/Belonging Needs
Refer to affection, sense of belongingness, acceptance and friendship
The firm can encourage team building and permit the workers to opportunity to
interact socially and so develop cordial relations with colleagues

4. Esteem Needs
Include factors such as self-respect, autonomy status, recognition and attention
Recognize good performance, provide opportunity for employees to feel a sense of
accomplishment, provide important job titles etc
5. Self Actualisation Needs
The drive to become what one is capable of becoming. These needs include growth,
self-fulfillment and achievement of goals.
Offer the freedom to take decisions, providing them with opportunity to learn things,
encouraging creativity, leading to achievement of goals etc.

Financial and Non-financial incentives—

Financial incentives. The incentives which can be measured in monetary terms. These
are:

1. Pay and allowances. Basic salary, dearness allowance, house allowance, etc.
 come under pay and allowances. This is the basic requirement of any
employee.
2. Productivity linked wage incentives. Higher productivity of a worker is
recognised through a higher rate of wages.
3. Retirement benefits. Pension, Provident Fund, Gratuity are the retirement
benefits which provide financial security at the time of old age.
4. Bonus. Bonus is given over and above salary or wages. It is generally paid
on an annual basis.
5. Co-Partnership/Stock option. Shares of the company (in which the
employees work) are offered to the employees at a price lower than the
market price as an incentive.
6. Profit sharing. Employees are given a share in the profit of the company in
recognition to their efforts in increasing the profit of the company.
7. Perquisites. Perquisites are the fringe benefits like medical aid, education,
house, etc. which are given over and above salary. They are generally given
to high ranked employees.

Non-financial incentives= main emphasis is to provide psychological and emotional

satisfaction. Not measurable in monetary terms.
1. Status. Status indicates the rank of a person in the organization’s hierarchy. It has
authority, fame, psychological satisfaction, etc. associated with it.
2. Organizational climate. Characteristics which differentiate one organization
from another are included in it. The psychology and behavior of employees is
connected with it. Examples of these characteristics are degree of autonomy,
incentive system, etc.
3. Career advancement opportunity. Some companies provide timely promotions
to their employees. These career advancement opportunities motivate the
employees to improve their performance.
4. Job enrichment. Companies design their work environment in such a manner
that jobs become interesting and value-adding for the employees. This can be
done by giving more freedom, making the workplace more user friendly and
knowledge generating.
5. Employee recognition. This can be done by shaking hands with the
subordinates, making mementos of their names, writing their names on notice
boards, awards, etc.
6. Job security. Employees work with more zeal and sense of involvement when
they get job security for a minimum fixed tenure.
7. Employee participation. Employees feel good when they are made to feel
important by involving them in decision making. They can be made members of
committees like work committee, canteen committee, etc.
 8. Employee empowerment. When employees are empowered, they feel important.
They can be given more autonomy in their field of work.
III. 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 organizational objectives. It is a
process of interaction between the leader and his followers. It helps in persuading
employees to work cooperatively and enthusiastically towards common goals.

Importance of Leadership:

1. Makes people contribute positively:

• Influences behavior and makes people contribute positively and produce good
results.

2. Creates congenial work environment:

• Maintains personal relations, helps followers fulfill their needs, provides confidence,
support and encouragement.

3. Introduces change:

• Persuades, clarifies and inspires people to accept changes.

• So overcomes resistance to change with minimum discontent..

4. Handles conflict

• Does not allow adverse effects .

• Allows followers to express their feelings and disagreements and gives suitable
clarifications.

5. Trains subordinates:

• Builds up successors and helps in a smooth succession process.

Qualities Of A Good Leader:

1. Physical features – appearance, personality, health and endurance inspires followers
to work with the same tempo.

2. Knowledge – knowledge and competence to instruct and influence subordinates.

3. Integrity – the leader should be a role model regarding ethics, values, integrity and
honesty.

4. Initiative – grab opportunities instead of waiting for them.

5. Communication – capacity to explain his ideas and also be a good listener, teacher,
counselor and persuader.

6. Motivation skills – understand followers needs and devise suitable means to satisfy
them.

7. Self-confidence – so that he can provide confidence to followers

8. Decisiveness – should be firm and not change opinions frequently
9. Social skills – sociable, friendly and maintain good relations with followers.

Styles of Leadership

Leadership styles refer to a leader’s behavior. Behavioral pattern which the leader
reflects in his role as a leader is often described as the style of leadership.

A Leadership style is the result of the leader’s philosophy, personality, experience and
value system. It also depends upon the type of followers and the atmosphere revealing
in the organization.

Different types of leadership style are:

1. Autocratic leadership

2. Participative leadership/Democratic

3. Free rein leadership/Laissez Faire

A leader may use all styles over a period of time but one style tends to predominate as
his normal way of using power

l. Autocratic 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
occasions.

It is best applied to situations where there is little time for group decision making or
where the leader is the most knowledgeable member of the group.

2. Democratic or Participative Leader

A democratic leader gives order only after consulting the group and works out 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 favors 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.

3. Laissez Faire or Free Rein Leader

A 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].

Communication

It is the transfer of information from the sender to the receiver with the information
being understood by the receiver. Communication plays a key role in the success of a
manager. Directing abilities mainly depend upon his communication skills. That is why
organizations always emphasize 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. Receiver: Who receives communication from the sender.

7. Feedback: All those actions of the receiver indicating that he has received and
understood the message of the sender.

8. Noise: Some obstruction or hindrance to communication like poor telephone

connection, inattentive receiver.

Importance of Communication

1. Facilitates Coordination: between interrelated departments and sections thus creating

a unity of purpose and action.

2. Provides data necessary for decision making: When information is effectively and
efficiently communicated to management.

3. Increases managerial efficiency: Every individual in the organization is assigned a job

or task. The employee must know clearly who has to report to whom, what part of the
total job they are expected to perform and what are their decisions. The clarity comes
only with smooth flow of communication which keeps the organization at work with
efficiency.

4. Promotes cooperation and Industrial Peace: The two-way communication promotes

cooperation and mutual understanding between the management and workers and
brings peace in the organization.

5. Establishes effective leadership: Effective communication helps to influence

subordinates. while influencing, a leader should possess good communication skills.

If there is two-way information flow between the superior and subordinates then there
will be a positive reaction of employees.

Communication taking place within an organization may be broadly classified into two
categories.
Formal communication Informal Communication:

1.Official communication following the chain of 1.Takes place outside the official
command channels –

2.Is concerned with official matters 2. May be work related or other

matters –

3. May be written/oral but generally recorded

and filed. 3.Arises out of social interactions –

4.Directions = 4.Grapevine:

● Vertical: ● Origin and direction

1. Downward-superior to of flow is not easily
subordinates –sending notices, located
passing guidelines, asking them to ● Cuts across scalar
complete assigned work. chain
2. upward- subordinates to superior ● Spread of rumors is
– application for leave, submission possible as it is not
of reports. easy to fix
● Horizontal- between departments responsibilities –
– about schedule of product
delivery, product design etc.

5.Types =

5.Popular communication networks are:

● single strand,
● gossip,
● Single chain, Wheel, Circular, Free ● probability network,
flow and Inverted V ● clusters
Difference between Formal and Informal Communication

Basis Formal Communication Informal communication

1. Follows the official chain of command. Individuals and groups are not
Meaning officially recognized.

2. Through a definite path. No definite path.

Channel

3. Speed Slow: because all information has to Very fast-Cuts across all the
pass through an established scalar official channels.
chain.

4. Nature More rigid and cannot be modified. Flexible and varies from
individual to individual.

5. It is mostly expressed in the written It mostly tends to be oral.

Expressio form.
n

Barriers to Effective Communication

Semantic Barriers: Concerned with problems and obstructions in the process of

encoding or decoding of messages into words or impressions. Semantic barriers are as
follows:

1. Badly expressed message: Sometimes intended meaning may not be conveyed.

2. Words with different meanings confuses the receiver.

3. Faulty translations may transfer wrong messages.

4. Unclarified assumption: Different interpretations may result in confusion.

5. Technical Jargon: Technical words may not be understood by the workers.

Psychological/Emotional barriers

1. Premature evaluation- judgment before listening leads to misunderstanding.

2. Lack of attention/poor listening may disappoint the employees.

3. 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 messages.

4. Distrust: If the parties do not believe each other. They cannot understand each other’s
message in its original sense.

Organizational Barriers

Factors related to organization structure:

1. If organizational policy does not support free flow of information it creates problem.

2. Rules and regulations: Rigid rules and regulations may lead to red tapism and delay
of action.

3. Status conscious managers may not allow subordinates to express their feelings freely.

4. Complexity in organization structure results in delay and distortion.

Personal Barriers: of superiors and subordinates.

1. Fear of challenge to authority may withhold or suppress a particular communication.

2. Lack of confidence of superior in his subordinates.

3. Unwillingness to communicate. e.g., fear of punishment/demotion.

4. Lack of proper incentives stops the subordinates from offering useful suggestions.

Improving Communication Effectiveness

1. Clarify the ideas before communication.

2. Communicate according to the needs of the receiver.

3. Consult others before communicating.

4. Be aware of the language, tone and content of the message.

5. Ensure proper feedback. Feedback provides opportunity for suggestions and

criticism.

6. Follow up communication helps to remove hurdles, misunderstanding of information

given by managers to subordination.

7. Be a good listener.