Directing: Concept, Importance, and Elements - Business Management Notes PDF

**Directing: Concept, Importance and Elements** **[CONCEPT OF DIRECTING]** Directing means instructing, guiding, counseling, motivating and leading people in the organisation to achieve its objectives. **[FEATURES/CHARACTERISTICS OF DIRECTING (learn points only)]** **1. Directing initiates actio...

**Directing: Concept, Importance and Elements** **[CONCEPT OF DIRECTING]** Directing means instructing, guiding, counseling, motivating and leading people in the organisation to achieve its objectives. **[FEATURES/CHARACTERISTICS OF DIRECTING (learn points only)]** **1. Directing initiates action.** While other functions prepare a setting for action, directing initiates action in the organisation. Thus, directing is an executive function. **2. It takes place at every level of management**, i.e., from top management to supervisory level. That is why it takes place wherever superior subordinate relation exists. **3. It flows from top to bottom.** Every manager gives direction to his immediate subordinate and takes instructions from his immediate boss. **4. It is a continuous process.** It takes place throughout the life of the organisation irrespective of people occupying managerial positions. **[IMPORTANCE OF DIRECTING] PI2CS** **1. Directing helps to initiate action** in the organization towards attainment of desired objectives. *(For example, if a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help the worker to achieve work targets given to him.)* **2. Directing integrates employees' efforts** in the organization 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 realise their potential** and capabilities by motivation and effective leadership. **4. Directing facilitates introduction of needed changes** in the organisation by reducing resistance to change and developing cooperation. **5. Directing brings stability and balance** in the organisation since it fosters cooperation and commitment among the people. **[ELEMENTS OF DIRECTING]** 1. **Supervision** means instructing, observing, monitoring and guiding the efforts of the subordinates for the achievement of work targets in the desired manner. 2. *Supervision can also be understood as the function to be performed by supervisor, a managerial position in the organisation hierarchy at the operative level, i.e. immediately above the worker. The functions and performance of the supervisor are vital to any organisation because he is* *directly related with workers whereas other mangers have no direct touch with bottom level workers.* **Importance of supervision (functions of supervisor )** i. **Supervisor maintains day-to-day contact and maintains friendly relations with workers. A good supervisor acts as a guide, friend and philosopher to the workers.** ii. **Supervisor acts as a link between workers and management. He conveys management ideas to the workers on one hand and workers problems to the management on the other. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees.** iii. **Supervisor plays a key role in maintaining group unity among workers placed under his control. He sorts out internal differences and maintains harmony among workers.** iv. **Supervisor ensures performance of work according to the targets set. He takes responsibility for task achievement and motivates his workers effectively.** v. **Supervisor provides good on-the-job training to the workers and employees. A skilled and knowledgeable supervisor can build efficient team of workers.** vi. **Supervisory leadership plays a key role in influencing the workers in the organisation. A supervisor with good leadership qualities can build up high morale among workers.** vii. **A good supervisor analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills** **2. Motivation** means stimulating people to action to accomplish desired goals. ***Motivation** means inducement to act or move. It means the process of making subordinates [to act in a desired manner] to achieve certain organisational goals.* - *Motivation refers to the way in which urges, drives, desires, aspirations, strivings or needs direct, control and explain the behaviour of human beings.* - *Motivation is a complex force starting with keeping a person at work in an organisation.* - *Motivation is something which moves the person to action and continues in the course of action already initiated.* - *Motivation is a process which begins with a physiological or psychological need or deficiency which triggers behaviour or a drive that is aimed at a goal or incentive.* ***Motive** is an inner state that energises and directs behaviour towards goals. It arises out of the needs of people.* ***Motivators** are the techniques/incentives used to motivate people in an organisation, e.g., bonus, promotion, etc.* ***[Process of motivation]*** *Motivation process is based on human needs. An unsatisfied need of an individual creates tension which stimulates his or her drives. These drives generate a search behaviour to satisfy such need. If such need is satisfied, the individual is relieved of tension.* *(For example, the need for food causes hunger on account of which a person searches for food. After taking a meal, he feels that he has regained energy.)* 1. **UNSATISFIED NEED** 2. **DRIVES TENSION** 3. **SEARCH BEHAVIOUR** 4. **SATISFIED NEED** 5. **REDUCED TENSION** ***Features of motivation:*** [(i) It is an internal feeling]. *(The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour.)* [(ii) It produces goal directed behaviour]. *(For example, if the employee is interested in promotion, it helps to produce a behaviour to improve performance.)* [(iii) It can be positive or negative]. *(Positive motivation provides positive rewards like increase in pay, promotion, recognition etc. Negative motivation uses negative means like punishment, stopping increments, threatening etc. which also may induce a person to act in the desired way.)* [(iv) It is a complex process] because any type of motivation may not have a uniform effect on all the members. *(The individuals are heterogeneous in their* *expectations, perceptions and reactions.)* **3. Leadership** is the [process of influencing people] so that they strive willingly and enthusiastically towards the achievement of group goals. * Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals.* * Leadership is the activity of influencing people to strive willingly for group objectives.* * Leadership is a set of interpersonal behaviours designed to influence employees to cooperate in the achievement of objectives.* * Leadership involves the use of non-coercive influence to direct and coordinate the activities of the members of an organised group towards the accomplishment of group objectives.* ***Features of Leadership:*** \(i) It is a continuous process. \(ii) It indicates ability of an individual to influence others. ( iii\) It tries to bring change in the behaviour of others. \(iv) It is exercised to achieve common goals of the organisation. \(v) It indicates inter-personal relations between leaders and followers. **4. Communication** is the process of exchange of ideas and information among people to create common understanding. * Communication is transfer of information from the sender to the receiver with the information being understood by the receiver.* * Communication is the sum of all things one person does when he wants to create understanding in the mind of another. It involves systematic and continuous process of telling, listening and understanding.* ***Elements in communication process:*** ***(i) Sender--**source of communication.* ***(ii) Message--**information to be communicated.* ***(iii) Encoding--**converting the message into communication symbols such as words, pictures, gestures etc.* ***(iv) Media/channel--**face to face, phone call, internet etc.* ***(v) Decoding--**converting encoded symbols.* ***(vi) Receiver** of the communication.* ***(vii) Feedback--**actions of receiver indicating that he has received and understood message.* ***(viii) Noise--**obstruction or hindrance to communication, e.g. a poor telephone connection, an inattentive receiver, faulty decoding, etc.* **[Maslow's Need Hierarchy Theory of Motivation]** Maslow's theory of motivation was based on human needs. He felt that within every human being, there exists a hierarchy of five needs. These are: **1. Basic Physiological Needs:** Hunger, thirst, shelter and sleep are some examples of these needs. In the organisational context, basic salary helps to satisfy these needs. **2. Safety/Security Needs:** These needs provide security and protection from physical and emotional harm. Examples: job security, stability of income, Pension plans etc., **3. Affiliation/Belonging Needs:** These needs refer to affection, sense of belongingness, cordial relations with colleagues, acceptance and friendship. **4. Esteem Needs:** These include factors such as selfrespect, autonomy status, recognition and attention, job titles, etc. **5. Self Actualization 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. Self actualisation Needs Esteem needs Affiliation/ Belongingness needs Safety/Security needs Basic Physiological needs Self-fulfillment Status Friendship Stability of Income Hunger Achievement of goals Job title Cordial relations with colleagues Pension plan Basic Salary. **Assumptions:** (i) People's behaviour is based on their needs. Satisfaction of such needs influences their behaviour. \(ii) People's needs are in hierarchical order, starting from basic needs to higher level needs. \(iii) A satisfied need no longer can motivate a person; only next higher level need can motivate him. \(iv) A person moves to the next higher level need only when the lower need is satisfied. **Importance:** Maslow's Theory focuses on the needs as the basis for motivation. It helps managers to realise that need level of employee should be identified to provide motivation to them. **[FINANCIAL INCENTIVES TO MOTIVATE EMPLOYEES]** **P4C RB** Financial incentives are measurable in terms of money. To satisfy basic physiological needs of lower level employees, financial incentives are important. **1. Productivity linked wage incentive** involves linking payment of wages of employees to the increase in their productivity at individual or group level. **2. Bonus** involves offering an amount of funds over and above the wages/ salary to the employees. **3. Profit Sharing** involves providing a share in the profits of the organization to employees. *(This motivates them to improve their performance and contributes to increase* *in profits of the organisation.)* **4. Co-partnership/Stock option** is an incentive under which the employees are offered company shares at a set price which is lower than market price. *(The allotment of shares at lower price creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation.)* **5. Retirement Benefits** include benefits such as provident fund, pension and gratuity that provide financial security to employees after their retirement. *(This acts as an incentive when they are in service in the organisation.)* **6. Perquisites** include incentives such as car allowance, housing, medical aid and education to the children etc., which are offered over and above the salary. **7. Pay and allowances** -- salary, dearness allowance, etc. Salary is the basic financial incentive. **[NON-FINANCIAL INCENTIVES TO MOTIVATE EMPLOYEES] J2P - ER** *All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play important role in providing motivation. Nonfinancial incentives mainly focus on these needs. Some times, monetary aspect may be involved in non-financial incentives as well. However, the emphasis is to provide psychological and emotional satisfaction rather than money driven satisfaction.* *For example, if an individual gets promotion in the organisation, it satisfies him psychologically more as he gets a feeling of elevation, increase in status, increase in authority, challenge in the job etc. Though promotion involves payment of extra money, non-monetary aspects over-ride monetary aspects.* **1. Job enrichment** is concerned with designing jobs that include greater variety of work content and provide the opportunity for personal growth and a meaningful work experience. **2. Employee recognition** which means acknowledgement with a show of appreciation. *(e.g., rewarding an employee for giving valuable suggestions,* *congratulating and giving award for good performance, Displaying on the notice board or in the company newsletter about the achievement of employee, distributing mementos, complimentaries like T-shirts in recognition of employee services, etc.)* When such appreciation is given to the work performed by employees, they feel motivated to perform at higher level. **3. Employee participation** which means involving employees in decision making of issues related to them, for example, making them a part of joint management committees, work committees, canteen committees, etc. **4. Employee empowerment** which means giving more autonomy and powers to subordinates. *(It motivates them to use their skills and talents in the job performance.)* **5. Job security** which refers to providing stability to the employees about future income and work so that they do not feel worried on these aspects and work with greater zeal. *(**Negative aspect of job security:** When people feel that they are not likely to lose their jobs, they may become complacent.)* **6. Career advancement opportunity/Promotion** means providing an opportunity to employees to improve their skills to be promoted to higher level of jobs. Appropriate skill development programmes and sound promotion policy provide career advancement opportunity to the employees. **7. Status:** Status given to a manager is indicated by the authority, responsibility, rewards, recognition, etc. given to him. Status given to a job satisfies psychological, social and esteem needs of an individual. **8. Organisational climate:** It indicates the characteristics which influence the behaviour of individuals in the organisation such as individual autonomy, reward orientation, consideration to employees, risk taking, etc. **Leadership Styles** **1. Autocratic or Authoritarian leadership:** Autocratic style of leadership is one in which the leader gives orders and insists that they are obeyed. He does not give the subordinates any freedom to influence his decision. 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. - There is one way communication only. - This leader is dogmatic i.e., does not wish to be contradicted. - His following is based on the assumption that reward or punishment both can be given depending upon the result. - It is like "bossing people around." It is called Boss-Centred Leadership. - Benefits of Autocratic or Authoritarian leader: \(a) This leadership style is effective in getting productivity in many situations. \(b) Quick decision-making is also facilitated by this style of leadership. Leadership Styles in Management \| Business Management **2. Democratic or Participative leadership:** Democratic style of leadership is one in which the leader develops action plans and makes decisions in consultation with his subordinates. A democratic leader favours decision making by the group. **Advantages of Democratic style :-** 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. - The leader respects the other's opinion. - It is called Group-Centred Leadership - He exercises more control by using forces within the group. - He never asks people to do things without working on the long term plans on which they are working. - This style is more common these days since leaders recognise that people perform best if they have set their own objectives.  **3. Laissez Faire or Free --rein leadership:** 'Laissez Faire' style of leadership is one in which the leader gives complete freedom to the subordinates and depends largely upon the group to establish its own goals and work out its own problems. The group members work on their own tasks resolving issues themselves. - Such a leader does not believe in the use of power unless it is absolutely essential. - The leader is there only to support them and supply them the required information to complete the assigned task. - It is called Subordinate-Centred Leadership. - Laissez faire means " no interference in the affairs of others" - Laissez faire is a French word where laissez means "to allow/let" and faire means "to do" **[Formal and Informal Communication]** **Formal Communication** flows through official channels designed in the organisation chart. Formal communication may take place from \(i) a superior to subordinate (***downward communication,*** e.g. ordering subordinates to complete an assigned work), \(ii) a subordinate to superior (***upward communication***, e.g. submission of progress report) or \(iii) among same level of managers or employees (***horizontal communication***, e.g. the production manager of a company contacts the marketing manager to discuss about schedule of product delivery, product design, quality, etc.). *Formal communications may be oral or written but generally recorded and filed in the office.* **Informal Communication** takes place without following the formal lines of communication, e.g. workers chit chating in a canteen about the behaviour of the superior. *The informal communication arises out of needs of employees to exchange their views, which cannot be done through formal channels.* Informal system of communication is generally referred to as the 'grapevine' because it spreads throughout the organisation with its branches going out in all directions in utter disregard to the levels of authority. ***Two positive aspects of informal communication:*** i. It carries information rapidly and therefore may be useful to the manager at times. ii. It is used by the manager to transmit information so as to know the reaction of his/ her subordinates. ***Two negative aspects of informal communication:*** i. The grapevine/informal communication spreads rapidly and sometimes gets distorted. ii. It may lead to generate rumours, or may hamper work environment. **[BARRIERS TO COMMUNICATION]** **A. Semantic Barriers BBS TUF** These are related to process of encoding and decoding of message into words or impressions, use of wrong words, faulty translations, different interpretations, etc. **1. Badly expressed message:** Badly expressed message in which the intended meaning may not be conveyed on account of inadequate vocabulary, usage of wrong words, omission of needed words etc. **2. Symbols with different meanings:** A word may have several meanings. For example, What is the value of this ring? I value our friendship. What is the value of learning computer skills. Wrong perception by the receiver about the word 'value' may lead to communication problems. English) is not properly translated in a language understandable to workers (say, Hindi), communication becomes ineffective. **4. Technical jargon:** Specialists use technical language, e.g., tariff, quotas, etc. Therefore, workers may not understand them. **5. Unclarified assumptions** create confusion and the loss of goodwill, e.g., instruction of a boss to his subordinate "Take care of our foreigner guest" may mean care of transport, accommodation and food of the guest, but the subordinate may interpret that guest should be taken to hotel with care. **6. Body language and gesture decoding** becomes a barrier when there is no match between what is said and what is expressed in body movements. **B. Psychological Barriers DPL2** These are related to the state of mind of both sender and receiver of communication, e.g. a worried sender or an angry receiver. **1. Lack of attention:** Non-listening of message due to the preoccupied mind. *(For example, an employee explains about his problems to the boss who is pre-occupied with an important file before him. The boss does not listen attentively* *and the employee is disappointed.)* **2. Distrust:** The sender and the receiver of communication do not believe each other; they can not understand each others message. **3. Premature evaluation:** Evaluating the meaning of message before the sender completes; due to pre-conceived notions or prejudices against the communication. **4. Loss by transmission and poor retention:** Successive transmissions of oral message results in loss of information, or transmission of inaccurate information. Poor retention of the information if not attentive or interested. **C. Personal Barriers (FULL)** These are related to the personal factors of both sender and receiver of communication. **1.** Because of **fear of challenge to authority**, a superior may withhold or suppress communication. **2.** Because of **lack of confidence of superior on his subordinates**, he may not seek their advice or opinion **3. Unwillingness to communicate** by a subordinate to his superior if it may adversely affect his interests. **4. Lack of incentives**, i.e. no reward or appreciation for a good suggestion; the subordinates may not be willing to offer useful suggestions. **D. Organisational Barriers (CO2RS)** Organisational barrier which arises from organisational structure, authority relationships, rules and regulations etc. **1. Rigid rules and regulations** may be a hurdle to communication; communications through scalar chain may result in delays. **2. Complexity in organisation structure** i.e. large number of levels of management, so communication gets delayed and distorted as number of filtering points are more. **3. Lack of organisational facilities** like frequent meetings, suggestion box, complaint box, social and cultural gathering, transparency in operations etc. will not encourage free flow of communication. **4. Organisational policy** not supportive to free flow of communication; may hamper effectiveness of communications, e.g. highly centralised pattern (i.e., concentration of decision-making authority by the top management). **5. Status** conscious manager may not allow his subordinates to express their feelings freely. **Measures to improve communication effectiveness/Measures to overcome communication barriers** 1**. Clarify the ideas before communication**, i.e. purpose of the message should be clear to the sender himself before conveying to the receivers. 2\. **Communicate according to the needs of the receiver**, education and understanding levels of subordinates, avoiding technical jargon. 3**. Be aware of the language,** tone and content of the message to make it understandable to the receiver. The language should not offend the sentiments of listeners. 4**. Ensure proper feedback** to improve the communication process and make it more responsive. Communication is complete only when the sender gets a feedback. 5**. Follow up communications** and review the instructions given to subordinates. 6\. **Be a good listener**. Manager should be an attentive listener. Patient and attentive listening solves half of the problems.