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