Directing in Management - A Guide to Unit 7

# Unit 7: Directing ## 1. Directing - Meaning, Importance and Elements of Directing. ### Meaning of Directing - The process of instructing, guiding, counseling, motivating, and leading people in an organization to achieve the organizational goals is known as Directing. - Directing not only includ...

# Unit 7: Directing ## 1. Directing - Meaning, Importance and Elements of Directing. ### Meaning of Directing - The process of instructing, guiding, counseling, motivating, and leading people in an organization to achieve the organizational goals is known as Directing. - Directing not only includes orders and instructions by a superior to the subordinates but also includes guiding and inspiring them. - It encompassed many elements like motivation, leadership, supervision, besides communication. - It is a managerial function which is performed throughout the life of an organization. - After planning, organizing the structure of the organization and arranging the necessary human force, the next important step is directing. - Directing aims to ensure that activities of all the employees are mobilized towards the organizational goals. - It is the connecting link between the functions of management, i.e., planning, organizing, staffing, and controlling. ### Definitions of Directing - "Direction is telling people what to do and seeing that they do it to the best of their ability." - Ernest - "Directing consists of the process and techniques utilized in issuing instructions and making certain that operations are carried on as originally planned.” – Theo Haimann ### Importance of Directing - **Directing Initiates action:** Directing sets an organization into motion, and helps other managerial functions to initiate and activate. It helps the managers to supervise, communicate, lead, guide and motivate the subordinates to achieve the organizational goals. E.g. a Superior guides his subordinates and explains the task, which will help the subordinates to start the work and achieve the goal. - **Directing leads to integrated group activity:** The organizational objectives can be achieved only when individual efforts are integrated. Directing integrates employees' efforts in such a way that every individual effort contributes to organizational performance. E.g. a leader can convince his subordinates that group efforts will help to achieve organizational goals. - **Directing attempts to get maximum out of individuals:** Directing helps superiors to realize the potential and identify the capabilities of individuals by motivating and guiding them. By using the elements of directing, i.e., supervision, motivation, leadership, and communication, the efficiency of employees can be raised. - **Directing helps to implement changes:** Directing helps to introduce changes in an organization. Generally, people in an organization resist changes. Effective communication, supervision, motivation, and guidance help to overcome such resistance at the workplace. E.g. the introduction of a new method of doing a particular task in a factory is resisted by workers, but when managers explain the purpose, guide, and provide them training and rewards, it can be easily accepted by the workers. - **Directing provides stability and balance in the organisation:** Stability and balance are maintained in an organisation with the help of directing because it fosters cooperation and commitment amongst employees, and helps to achieve balance amongst various groups, departments, units, etc. E.g. every individual has personal goals, but the managers integrate the efforts of all the individuals towards the achievement of organisational goals through guidance, motivation, supervision and communication. ### Elements of Directing - **Supervision:** 'Supervision' is made from two words: Super and Vision. Super means over or above, and vision means overseeing employees at work. Instructing, guiding and observing the subordinates at work to ensure that they are working as per the plans and to help them in solving their problem is known as supervision. It serves as a link between workers and management and helps in improving performance. - **Motivation:** The term 'Motivation' is derived from the Latin word 'movere', which means to move. The process of stimulating and inspiring people at work to contribute to the best of their capabilities for the achievement of organisational goals is known as Motivation. Because of Motivation, the efforts of an individual or group are energised. - **Leadership:** The process of influencing the behaviour of people towards the achievement of organisational goals is known as Leadership. The ability to maintain good interpersonal relations with the followers and motivate them to contribute to achieving organisational objectives is leadership. - **Communication:** The term 'Communication' is derived from the Latin word 'communis', which means common, which implies common understanding. The process of exchange of ideas, views, facts, feeling, etc., between two or more persons is known as communication. Communication acts as a basis of coordination and helps in the smooth functioning of an enterprise. ## 2. Motivation - Meaning, Maslow's Need Hierarchy Theory of Motivation, Types of Financial and Non-Financial Incentives. ### Meaning of Motivation - The process of stimulating and inspiring people at work to contribute to the best of their capability for the achievement of organisational objectives is known as Motivation. - Motivation is the inner psychological force that activates and compels a person to behave in a particular manner. - It is a process of inductive individual desire towards a goal. Human beings drive satisfaction when the goal is achieved. - Both financial and non-financial factors motivate employees in the organisation. “Motivation means a process of stimulating people to action to accomplish desired goal" William G. Scout ### Maslow's Hierarchy of Needs theory - Abraham Maslow was an eminent U.S. psychologist, and his Needs theory is considered very significant as it highlights the needs of the people. - Maslow categorised human needs into five types. - **Basic Physiological Needs:** These needs are basic for the survival of humans, and include hunger, thirst, shelter, sleep, sex, etc. These needs form the base of the hierarchy and have the highest strength in terms of motivation. Salary and other monetary incentives are the basic physiological needs in the context of organisational needs. - **Safety or Security Needs:** After satisfying the basic physiological needs, an individual thinks about safety from future uncertainties and other threats. Safety and security needs aim to ensure that the person will be able to meet the physiological needs not only in present but also in future. It includes motivators like benefits of life insurance, pension plans, job security, etc. Safety and security needs are concerned with two kinds of securities: - **Physical Security:** It includes security against death, injury, illness, and other bodily threats. - **Financial Security:** It includes security of job and congenial working conditions. - **Social or Affiliation or Belonging Needs:** When physiological and safety needs are satisfied, social needs are important. These include need for love, friendship, affection and social interaction. The need for belongingness and acceptance plays a very important role in motivating human behaviour. The formation of informal groups in the workplace is an example of social or belonging needs. - **Esteem Needs:** After social needs, satisfaction of esteem needs is important as per Maslow's theory. These needs relate to the desire for recognition and respect from others. Esteem needs include autonomy status, attention, appreciation from others or prestige in society. Generally, employees at a higher level are motivated by such needs. - **Self-Actualisation Needs:** These include needs of becoming what one really wants to become. These needs inspire and motivate a person to develop himself to his maximum potential. Therefore, they are placed at the top of the need hierarchy. These include growth, self-fulfilment, and achievement of goals. Challenging jobs, opportunities for innovation, etc., are motivators, which help to satisfy the self-actualisation needs of an individual. ### Financial Incentives - Financial Incentives are those incentives that can be calculated in terms of money. - Money plays a great role in satisfying the needs of a person to obtain a social position and power. - It not only satisfies lower-level needs but also satisfies the higher-level needs, such as social status, power, etc. - These monetary incentives are provided to motivate people for better performance. - These incentives can be provided to both individuals and groups. Some of the common financial incentives are as follows: - **Pay and allowance:** Salary is the basic monetary incentive for every employee. It includes basic pay, dearness, allowances, house rents, conveyance, etc. In some business organisations, pay hikes and increments may be linked to performance. - **Productivity-linked wage incentives:** Some companies have adopted wage plans according to their performance. The main aim of this incentive is to improve the productivity of the employees by paying higher wages to efficient workers compared to inefficient workers. - **Bonus:** Bonus is a one-time reward offered to the employees for achieving higher performance. It is generally paid during the festival season or after achieving the target. - **Profit Sharing:** Profit sharing means sharing of profit earned by a company with employees. Profit sharing is an arrangement between employees in which they are given a part of the share of profits. - **Stock options:** Under this scheme, employees are given an option to purchase shares at a price less than the market price. The allotment of shares creates a feeling of awareness that he is also a part of the owner of the organisation. - **Retirement benefits:** Some companies offer various retirement benefits, such as pension, provident fund, gratuity, etc., for employees to motivate them towards the achievement of organisations. - **Perks:** Many companies offer additional benefits other than the salary, known as perks. Examples, medical facilities, free education for the children of the employees, free housing facilities, etc. ### Non-Financial Incentives - Non-financial incentives refer to incentives or rewards which cannot be measured in terms of money. - All the needs of individuals are not satisfied by money only. - Psychological, social, and emotional factors also play an important role in providing motivation. Some of the common non-financial incentives are: - **Status:** Status refers to reducing the position and prestige associated with a job in the organisation. Higher status helps to satisfy safety and social need, esteem needs, and self-actualization needs. Management provides status symbol facilities to its employees to motivate them. For example, costly furniture, well-furnished AC cabins, a car, etc. - **Organisational climate:** It refers to the characteristics which describe an organisation and distinguish one organisation from the other. Characteristics include individual autonomy, reward orientation, open communication, etc., which directly influence individual behaviour in a positive direction. Management helps to create an organisational climate and tries to motivate employees in this healthy working organisational climate. - **Career advancement opportunity:** Every individual wants growth and development in his life. When employees are provided opportunities to grow, then they feel more satisfied and become more committed to organisational goals. For example, the opportunity for promotion works as a tonic in encouraging employees to improve their performance. - **Job Enrichment:** It is concerned with designing jobs that include a great variety of work. Varieties of work make the work more challenging and interesting. Instead of doing routine jobs, enriched jobs offer opportunities for recognition and growth. It also improves job satisfaction and motivates employees. - **Employees Recognition Program:** When an employee performs well, then he wants to be praised by his superiors and fellow employees. When such appreciation is given to the employee, then he feels motivated to perform better in the future. Employees are rewarded in the form of congratulations and through the distribution of certificates and mementos, displaying employee's achievements, etc. - **Job Security:** Employees want their job to be secured. They do not want to remain under a constant threat of loss of employment. Job security means the stability of jobs. Security of job improves the performance of employees, due to this reason, some people's government service as compared to private jobs. - **Employee Participation:** Participation has been considered a good technique for motivation. It implies the physical and mental involvement of employees in the decision-making process. Employees feel important when they are asked to suggest their field of activities. It provides psychological satisfaction to the employees. ## 3. Leadership- Meaning and Styles of Leadership (Autocratic, Democratic and Laissez Faire Leadership). ### Meaning of Leadership - The process of influencing the behaviour of people towards achievement of organisational goals is known as Leadership. - It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. - An individual who has the attributes of leadership is known as a leader. - “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 achievement of group goals”. – Koontz and Weihrich - “Leadership is a set of interpersonal behaviour designed to influence employees to cooperate in the achievement of objectives.” – Glueck ### Types of Leadership Styles - **Autocratic Leadership or Authoritative Leadership:** The leadership style under which a leader centralises all decision-making powers and exercises full control over his subordinates is known as Autocratic or Authoritative leadership. The leader here gives orders and makes sure that they are obeyed. - For example, if Sam assigns work and gives orders to complete the work as per his discretion without consulting his subordinates, then Sam is an Autocratic Leader. - Policies and plans are made by the autocratic leader without consulting subordinates. The employees are also not given information about future plans. - Orders are given and tasks are assigned, and subordinates are not given the freedom to influence the decision of the leader. This situation is similar to "bossing people around". - In such a leadership style, there is little or no concern for the welfare of the employees. Subordinates are compelled by the leaders to follow orders under the threat of penalties and punishments. - Because of lack of freedom and threats of penalties and punishments, subordinates suffer from frustration and low morale. Subordinates avoid responsibility, lack initiative and become 'Yes Men'. - This leadership style should be used on rare occasions. - Such leadership styles are used in the Military. - This style is also known as the 'Directive style of leadership.' - **Participative Leadership or Democratic Leadership:** The leadership style under which a leader consults subordinates in the decision-making process and encourages them to give suggestions in setting goals and implementing decisions. In this, the subordinates are allowed to participate in the decision-making process and their suggestions are welcomed by the leader. - For example, if Satyam is discussing the work and taking suggestions to complete the work, then he is a Participative or Democratic Leader. - Under the Participative leadership style, orders are given only after consulting the subordinates, and any plan or policies is carried forwards only after the acceptance of the subordinates. - This style wins greater confidence, cooperation, loyalty and initiative of the group. The morale of the employees is also boosted. - Here, the subordinates are never asked to do things without working out long-term plans. - The subordinates become part of the team and help the leader in making better decisions. Thus, it is a style of mutual benefit. - **Free rein Leadership or Laissez-Faire Leadership:** The leadership style under which a leader gives complete freedom to the subordinates is known as Free rein or Laissez-Faire. - For example, Sitaraman gives the responsibility of setting goals and devising plans to the subordinates, then here Sitaraman is practising free rein leadership. - The leader depends on the group for setting goals and devising plans to achieve such goals. - It can be said that this style is more of a non-leadership style than a leadership style, as the leader acts as an umpire and delegates the entire authority of decision-making to subordinates. - Group members work as per their choice and competence. The leader acts as a contact man with the outsiders and collects information and resources required by the group to achieve the goals. - This style is also known as “laissez-faire”, which means no interference from others. "Laissez-faire” is a French phrase, which means “let them do”. ## 4. Communication- Meaning, Meaning of Formal and Informal Communication, Barriers in the Process of Communication and Improving Communication Effectiveness / How to Overcome Barriers of Communication. ### Meaning of Communication - Communication is an indispensable element in human relationships. - Humans interact with one another through communication. - The term ‘communication' is derived from the Latin word 'communis', which means common. - Therefore, communication is defined as an exchange of facts, ideas, opinions, or emotions to create mutual understanding. - It is the sum of all things one person does in order to create understanding in the minds of others. ### Definitions of Communication - “Communication is an intercourse by words, letters, symbols or messages, and is a way that one organisation member shares meaning and understanding with another.” - Koontz and O' Donnell - “Communication is a process by which people create and share information with one another in order to reach common understanding.” – Rogers ### Meaning of Formal Communication - Official communication taking place in an organisation is known as formal communication. - It is related to the status or position of the sender and receiver. It generally takes place either between employees of different levels, as in the case of superior-subordinate or at the same levels, as in the case of two managers from different departments. - Orderly flow of information is ensured and responsibilities can be fixed easily. - It has some drawbacks, like it is time-consuming and flow of information is interrupted. - Formal communication can be of four types based on direction: - **Downward Communication:** The flow of information from a higher level (superior) to a lower level (subordinate) in an organisation is known as downwards communication. - **Upward Communication:** The flow of information from a lower level (subordinates) to a higher level (superior) of an organisational hierarchy is known as upward communication. - **Horizontal Communication:** The flow of information between people of different departments working at the same level in an organisation is known as Horizontal Communication. - **Diagonal Communication:** The flow of information between persons holding different levels of authority in different departments is known as diagonal Communication. ### Meaning of Informal Communication - Unofficial communication that arises from social interaction of people is known as informal communication. It takes place without following formal lines of communication. - It is also known as grapevine communication, as it often leads to the spread of rumours. - Since formal channels cannot fulfil the need of people to exchange their views, ideas, etc., the need to communicate through Informal communication arises. - Information moves very fast in the case of informal communication, as it does not have to follow any hierarchal order. - It provides social satisfaction and fills the gaps of formal communication. - It is used by managers to spread information rapidly, which is not possible through formal communication, but the information transmitted is not authentic and often leads to rumours. ### Barriers to Effective Communication - The factors which obstruct the effectiveness of communication is known as Communication Barriers. - These barriers cause a mismatch between understanding of the message by the sender and the receiver. These barriers can occur at any stage of the communication process. - **Semantic Barriers:** The branch of science that deals with the meaning of words and sentences is known as Semantic. The problems and obstructions in the process of encoding and decoding message into words or impressions is known as Semantic barriers. This barrier arises because different words mean different things to different people. A breakdown in communication can occur when two individuals attach different meanings to a word. For example, for organisations, ‘Profits’may mean growth and efficiency, but for employees, it may mean excess funds generated by paying inadequate wages and benefits. - **Badly Expressed Message:** When a message lacks clarity and precision, it is said to be a badly expressed message. Communication becomes ineffective when the language of the message is vague, imprecise, or there is the use of wrong words or omission of needed words. - **Symbols with Different Meanings:** The same words may carry different meanings to different people, and can convey different meanings under different situations. For example, words like effect and affect, ideal and idle, advice and advice, bear and bare, etc., sounds similar, but they have different meanings. - **Faulty Translations:** Sometimes, people do not understand the language in which a message is given by the sender. In such cases, it becomes necessary to translate the message into a language, which is understandable by the receiver. The translator should be proficient enough to translate the language, otherwise, this can also be a barrier to communication. - **Unclarified Assumptions:** The receiver may have different assumptions if the sender does not clarify the assumptions about the message. For example, a boss may say, 'Complete the work'. Here, the boss has not mentioned the day and date when the work must be completed. He may mean to complete the work by tomorrow, but subordinates may understand it as a week's target. - **Technical Jargon:** Technical Jargon or terminology are used by many experts and specialists to communicate messages. Such jargon is not understood by the common people, which leads to poor communication. - **Body Language and Gesture Decoding:** Non-verbal or gestural communication is also an effective means of communication. Facial expressions, gestures, body language, etc., should correspond to the language. The receiver may get confused and can misunderstand the message if verbal language does not match the body language. - **Psychological Barriers:** Barriers which arise on the account of emotional and psychological status of the sender and receiver of the message are known as Psychological Barriers. For example, a person who is under stress cannot communicate properly. - **Premature Evaluation:** The tendency of forming a judgement before listening to the entire message is known as premature evaluation. This distorts understanding and acts as a barrier to effective communication. This can also lead to prejudices against communication. - **Lack of Attention:** Communication can be less effective, and the message can be misunderstood if proper attention is not given to it. This inattention may arise due to the preoccupied mind of the receiver. For example, a superior gave instructions to operate a new software, however, the subordinate was preoccupied with other personal issues. Such lack of attention makes the communication process one-way and ineffective. - **Loss by Transmission and Poor Retention:** There is loss of or transmission of inaccurate information when communication passes through various levels or channels in the organisation. It is more common in the case of oral communication. Poor retention also acts as a barrier when people are unable to retain the information for a long time. - **Distrust:** Lack of mutual trust between the sender and the receiver also acts as a barrier to communication. Parties involved in communication cannot understand the message in an original sense when they do not believe each other. - **Organisational Barriers:** In an organisation, communication has to pass through various levels and channels, hence it may not reach the same place as it was sent by the sender. Organisation structure, rules and regulations, authority relationships, etc., act as a barrier to effective communication. Some of the Organisational Barriers are as follows: - **Organisational Policy:** Effectiveness of communication is affected by organisational policy. The communication process is hampered if the policy is not supportive of the free flow of communication. E.g. in a centralised organisation, free communication is not encouraged, and communication must follow through a proper channel only. - **Rules and Regulations:** The process of communication is affected by rigid and cumbersome rules and regulations. The channels and the subject matter are already prescribed through, which the messages are to be communicated. These prescribed rules, regulations, and channels are rigid and can act as barriers. - **Status:** Psychological distance is created between superior and subordinate because of status. Such statuses stand in the way of true and accurate communication. Subordinates are also not allowed to express their feeling freely if the manager is status conscious. - **Complexity in Organisation Structure:** Organisation structure can also act as a barrier to communication. If there are many managerial levels in an organisational structure, then communication gets delayed and distorted. - **Organisational Facilities:** If facilities like frequent meetings, conferences, suggestion boxes, complaint boxes, etc., are absent in an organisation, then effective communication is hampered. - **Personal Barriers:** The effectiveness of communication is influenced by the personal factors of both sender and the receiver. Some of the Personal Barriers are as follows: - **Fear of Challenge to Authority:** If a superior fears that a particular communication can hamper his authority, then he may withhold such communication, as he always wants to maintain a higher position and prestige in the organisation. - **Lack of Confidence of Superior on his Subordinates:** When superiors do not have faith or confidence on the competence of their subordinates, then communication is said to be hampered. When there is a lack of trust and confidence in subordinates, the superior may not take advice or suggestions from the subordinates. - **Unwillingness to Communicate:** Unwillingness to communicate can be another reason for ineffective communication. Many times, subordinates do not communicate with their superiors because they believe that if the information is not correct or appropriate, it will adversely affect them. - **Lack of Proper Incentives:** Subordinates also do not take initiative to communicate, when there is no motivation or incentives for communication. For example, if there is no reward for the suggestion given by the subordinates, then they will not take initiative. ### Measures to improve Communication Effectiveness/Principles of Effective Communication - For the success of an organisation, effective communication is very essential. - So, it becomes very important to overcome the barriers of communication, like semantic barriers, personal barriers, organisational barriers, etc. - If organisations want to develop effective communication system, they should take suitable measures to overcome communication barriers. - **Clarify the ideas before communication:** The message should be clear in the mind of the sender. Messages can be properly conveyed only when it is clear to the communicator himself. Simple and precise language should be used, which can be easily understood by the receiver. - **Communicate according to the needs of the receiver:** Messages should be conveyed according to the needs of the receiver. Messages should contain words, jargon, facts, etc., according to the understanding and education level of the receiver. - **Consult others before communicating:** A plan should be developed involving everyone before communicating a message. The communication process becomes more effective when plans are developed with the participation and involvement of subordinates. - **Be aware of languages, tone, and content of message:** The words, tone, language, or symbols used for conveying the message must be easily understandable to the receiver to achieve mutual understanding. The sender should not offend the sentiments of the receiver with the message. - **Convey things of help and value to listeners:** The sender should know the needs and interests of the receiver, and only such things should be conveyed which is useful and in the interest of the receiver. - **Ensure proper feedback:** As we know that communication is a two-way process, so it is incomplete if the response or reaction of the receiver is not obtained. The effectiveness of communication is indicated through feedback. Feedback enables the communicator to know whether the receiver has properly received the message or not. So, the receiver must be encouraged to respond to communication. - **Communicate for present as well as future:** To achieve effective communication, communication must meet the present and future needs. The communication should also aim to achieve the goals and objectives of the organisation. - **Follow-up communications:** Follow-up of the message should be done to remove any hurdles or misunderstandings of the receiver. This is done to check whether the receiver has understood the message correctly or not. - **Be a good listener:** A receiver should be a good listener to achieve effective communication. He should carefully, patiently, and attentively listen to the message conveyed to him. Superiors also should develop a habit of good and patient listening and should convey the motive behind a particular message. The entire communication process can be improved because of this practice. - **Strategic use of Grapevine:** A manager should strategically use grapevine communication along with formal communication to achieve organisational objectives. He should understand the informal groups and should intelligently make use of such groups. - **Timeliness:** The message should reach the receiver at the right time when it is needed. The message that does not reach the receiver at the right time may turn out to be useless.