Ford Motor Co. Leadership Chapter 7

Directing and Leadership

• Directing is a managerial process that takes place throughout the life of an organization, and it involves instructing, guiding, counseling, motivating, and leading people to achieve organizational objectives.

Characteristics of Directing

• Directing initiates action, and it is a key managerial function that prepares a setting for action.
• Directing takes place at every level of management, from top executives to supervisors.
• Directing is a continuous process that takes place throughout the life of an organization.

Importance of Directing

• Directing helps to initiate action by people in the organization towards attainment of desired objectives.
• Directing integrates employees' efforts in the organization to ensure that individual efforts contribute to organizational performance.
• Directing guides employees to fully realize their potential and capabilities by motivating and providing effective leadership.
• Directing facilitates the introduction of needed changes in the organization by reducing resistance and developing required cooperation.

Principles of Directing

• Maximum individual contribution: directing techniques should help every individual in the organization to contribute to his maximum potential for achievement of organizational objectives.
• Harmony of objectives: individual objectives of employees should be aligned with organizational objectives.
• Unity of command: a person in the organization should receive instructions from one superior only.
• Appropriateness of direction technique: the appropriate motivational and leadership technique should be used based on subordinate needs, capabilities, attitudes, and other situational variables.
• Managerial communication: effective communication is essential for effective direction.

Elements of Directing

• Supervision: guiding the efforts of employees and other resources to accomplish desired objectives.
• Motivation: inspiring employees to work towards achieving organizational objectives.
• Leadership: influencing the behavior of employees to achieve organizational objectives.
• Communication: conveying clear instructions to subordinates to create total understanding.

Supervision

• Supervision can be understood as an element of directing and as a function performed by supervisors in the organizational hierarchy.

• Supervision involves guiding the efforts of employees and other resources to accomplish desired objectives.

• Supervisors act as a link between workers and management, conveying management ideas to workers and workers' problems to management.### Importance of Supervision

• Supervision helps to avoid misunderstandings and conflicts between management and workers.

• A supervisor maintains day-to-day contact and friendly relations with workers.

• A supervisor plays a key role in maintaining group unity among workers.

• A supervisor provides on-the-job training to workers and develops an efficient team.

• A supervisor analyses work and gives feedback to workers, suggesting ways to improve skills.

• A supervisor motivates workers, influencing their behavior, and builds high morale.

Case Study: Rashmi Joshi

• Rashmi Joshi, a district sales manager, was not promoted to a higher-level management position, and her performance deteriorated.
• The new marketing manager had to motivate Rashmi to her former level of performance.

Motivation

• Motivation is the process of stimulating people to action to accomplish desired goals.
• Motivation means incitement or inducement to act or move.
• Motives arise out of the needs of individuals.
• Realization of a motive causes restlessness, prompting action to reduce such restlessness.

Features of Motivation

• Motivation is an internal feeling.
• Motivation is a complex process.
• Motivation can be either positive or negative.

Motivation Process

• Unsatisfied need creates tension.
• Drives generate search behavior to satisfy the need.
• Search behavior leads to satisfying the need, reducing tension.

Importance of Motivation

• Motivation helps to identify and satisfy the needs of human resources in the organization.
• Motivation helps to improve performance levels of employees.
• Motivation helps to reduce employee turnover and save the cost of new recruitment and training.
• Motivation helps to reduce absenteeism in the organization.

Maslow's Need Hierarchy Theory

• Abraham Maslow's theory states that within every human being, there exists a hierarchy of five needs:

  • Basic Physiological Needs
  • Safety/Security Needs
  • Affiliation/Belonging Needs
  • Esteem Needs
  • Self-actualization Needs### Maslow's Hierarchy of Needs

• Maslow's Theory focuses on needs as the basis for motivation

• Assumptions:

  • People's behavior is based on their needs
  • Needs are in a hierarchical order, starting from basic needs
  • A person moves to the next higher level of the hierarchy only when the lower need is satisfied
  • A satisfied need can no longer motivate a person; only the next higher level need can

Maslow's Hierarchy of Needs (continued)

• Physiological Needs:
  • Basic needs like food, water, shelter, and physical safety
• Safety/Security Needs:
  • Stability of income, job security, and healthcare
• Esteem Needs:
  • Self-respect, autonomy, recognition, and attention
• Self-Actualisation Needs:
  • Growth, self-fulfillment, and achievement of goals

Incentives

• Financial Incentives:
  • Monetary form or measurable in monetary terms
  • Examples: Pay and allowances, Productivity linked wage incentives, Bonus, Co-partnership/Stock option, Retirement Benefits
• Non-Financial Incentives:
  • Focus on psychological, social, and emotional satisfaction
  • Examples: Status, Organisational Climate, Career Advancement Opportunity, Job Enrichment, Employee Recognition Programmes, Job Security, Employee Participation, Employee Empowerment

Leadership

• Definition: The process of influencing people to strive willingly for group objectives
• Qualities:
  • Ability to influence others
  • Interpersonal relations with followers
  • Ability to bring change in the behaviour of others
  • Continuous process
• Importance:
  • Key factor in making an organisation successful
  • Difference between success and failure of an organisation

Directing and Leadership

• Directing is a managerial process that takes place throughout the life of an organization, and it involves instructing, guiding, counseling, motivating, and leading people to achieve organizational objectives.

Characteristics of Directing

• Directing initiates action, and it is a key managerial function that prepares a setting for action.
• Directing takes place at every level of management, from top executives to supervisors.
• Directing is a continuous process that takes place throughout the life of an organization.

Importance of Directing

• Directing helps to initiate action by people in the organization towards attainment of desired objectives.
• Directing integrates employees' efforts in the organization to ensure that individual efforts contribute to organizational performance.
• Directing guides employees to fully realize their potential and capabilities by motivating and providing effective leadership.
• Directing facilitates the introduction of needed changes in the organization by reducing resistance and developing required cooperation.

Principles of Directing

• Maximum individual contribution: directing techniques should help every individual in the organization to contribute to his maximum potential for achievement of organizational objectives.
• Harmony of objectives: individual objectives of employees should be aligned with organizational objectives.
• Unity of command: a person in the organization should receive instructions from one superior only.
• Appropriateness of direction technique: the appropriate motivational and leadership technique should be used based on subordinate needs, capabilities, attitudes, and other situational variables.
• Managerial communication: effective communication is essential for effective direction.

Elements of Directing

• Supervision: guiding the efforts of employees and other resources to accomplish desired objectives.
• Motivation: inspiring employees to work towards achieving organizational objectives.
• Leadership: influencing the behavior of employees to achieve organizational objectives.
• Communication: conveying clear instructions to subordinates to create total understanding.

Supervision

• Supervision can be understood as an element of directing and as a function performed by supervisors in the organizational hierarchy.

• Supervision involves guiding the efforts of employees and other resources to accomplish desired objectives.

• Supervisors act as a link between workers and management, conveying management ideas to workers and workers' problems to management.### Importance of Supervision

• Supervision helps to avoid misunderstandings and conflicts between management and workers.

• A supervisor maintains day-to-day contact and friendly relations with workers.

• A supervisor plays a key role in maintaining group unity among workers.

• A supervisor provides on-the-job training to workers and develops an efficient team.

• A supervisor analyses work and gives feedback to workers, suggesting ways to improve skills.

• A supervisor motivates workers, influencing their behavior, and builds high morale.

Case Study: Rashmi Joshi

• Rashmi Joshi, a district sales manager, was not promoted to a higher-level management position, and her performance deteriorated.
• The new marketing manager had to motivate Rashmi to her former level of performance.

Motivation

• Motivation is the process of stimulating people to action to accomplish desired goals.
• Motivation means incitement or inducement to act or move.
• Motives arise out of the needs of individuals.
• Realization of a motive causes restlessness, prompting action to reduce such restlessness.

Features of Motivation

• Motivation is an internal feeling.
• Motivation is a complex process.
• Motivation can be either positive or negative.

Motivation Process

• Unsatisfied need creates tension.
• Drives generate search behavior to satisfy the need.
• Search behavior leads to satisfying the need, reducing tension.

Importance of Motivation

• Motivation helps to identify and satisfy the needs of human resources in the organization.
• Motivation helps to improve performance levels of employees.
• Motivation helps to reduce employee turnover and save the cost of new recruitment and training.
• Motivation helps to reduce absenteeism in the organization.

Maslow's Need Hierarchy Theory

• Abraham Maslow's theory states that within every human being, there exists a hierarchy of five needs:

  • Basic Physiological Needs
  • Safety/Security Needs
  • Affiliation/Belonging Needs
  • Esteem Needs
  • Self-actualization Needs### Maslow's Hierarchy of Needs

• Maslow's Theory focuses on needs as the basis for motivation

• Assumptions:

  • People's behavior is based on their needs
  • Needs are in a hierarchical order, starting from basic needs
  • A person moves to the next higher level of the hierarchy only when the lower need is satisfied
  • A satisfied need can no longer motivate a person; only the next higher level need can

Maslow's Hierarchy of Needs (continued)

• Physiological Needs:
  • Basic needs like food, water, shelter, and physical safety
• Safety/Security Needs:
  • Stability of income, job security, and healthcare
• Esteem Needs:
  • Self-respect, autonomy, recognition, and attention
• Self-Actualisation Needs:
  • Growth, self-fulfillment, and achievement of goals

Incentives

• Financial Incentives:
  • Monetary form or measurable in monetary terms
  • Examples: Pay and allowances, Productivity linked wage incentives, Bonus, Co-partnership/Stock option, Retirement Benefits
• Non-Financial Incentives:
  • Focus on psychological, social, and emotional satisfaction
  • Examples: Status, Organisational Climate, Career Advancement Opportunity, Job Enrichment, Employee Recognition Programmes, Job Security, Employee Participation, Employee Empowerment

Leadership

• Definition: The process of influencing people to strive willingly for group objectives
• Qualities:
  • Ability to influence others
  • Interpersonal relations with followers
  • Ability to bring change in the behaviour of others
  • Continuous process
• Importance:
  • Key factor in making an organisation successful
  • Difference between success and failure of an organisation

This chapter focuses on the leadership and management style of Ford Motor Company, discussing how they attract and nurture capable managers and technicians.