Meaning

 Directing-

In the context of management of an organisation, directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.  Directing is not a mere issue of communication but encompasses many elements like supervision, motivation and leadership. It is one of the key managerial functions performed by every manager.

Directing is a managerial process which takes place throughout the life of an organisation.

The main characteristics of directing are discussed below:

(i) Directing initiates action:

Directing is a key managerial function. While other functions prepare a setting for action, directing initiates action in the organisation.

(ii) Directing takes place at every level of management:

Every manager, from top executive to supervisor performs the function of directing. The directing takes place wherever superior – subordinate relations exist.

(iii) Directing is a continuous process:

 Directing is a continuous activity. It takes place throughout the life of the organisation irrespective of people occupying managerial positions.

In Multinational organizations like Infosys, Tata, BHEL, HLL and the managers may change but the directing process continues because without direction the organisational activities can not continue further.

(iv) Directing flows from top to bottom:

 It means that every manager can direct his immediate subordinate and take instructions from his immediate boss.

Importance of Directing

The importance of directing can be understood by the fact that every action in the organisation is initiated through directing only. Directing guides towards achievement of common objectives. Very often, this becomes an important factor in the efficient and effective functioning of the organisation. The points which emphasise the importance of directing are presented as follows:

(i) Directing helps to initiate action -

Directing helps to initiate action by people in the organisation towards attainment of desired objectives.

 (ii) Directing integrates employees efforts -

Directing integrates employees efforts in the organisation in such a way that every individual effort contributes to the organisational performance. Thus, it ensures that the individuals work for organisational goals.

 (iii) Directing involves motivation & leadership –

Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work up to their full potential.

 (iv) Directing helps in making a dynamic organization -

Directing facilitates introduction of needed changes in the organisation. Generally, people have a tendency to resist changes in the organisation. Effective directing through motivation, communication and leadership helps to reduce such resistance and develop required cooperation in introducing changes in the organisation.

 For example, if a manager wants to introduce e- portal of working for better processing then he would ensure that the resistance from staff is properly handled and thus, a smooth functioning is possible.

 (v) Stability in the organization

Effective directing helps to bring stability and balance in the organisation since it fosters cooperation and commitment among the people and helps to achieve balance among various groups, activities and the departments.

Elements of Direction

The process of directing involves guiding, coaching, instructing, motivating, leading the people in an organisation to achieve organisational objectives.

Consider the following examples:

 (i) A supervisor explains a worker about operations to be carried by him on a lathe machine,

 (ii) A mining engineer explains about safety precautions to be followed while working in a coal mine,

 (iii) A Managing Director declares share in the profits to the managers for their contribution to inhance profits of the company, and

 (iv) A manager inspires his/her employees by playing a lead role in performing a work.

All these examples and many other activities related to directing may broadly be grouped into four categories which are the elements of directing.

                               

These are:

 (i) Supervision

 (ii) Motivation

(iii) Leadership

(iv) Communication

  Supervision

The term supervision can be understood in two ways.

a) It can be understood as an element of directing

It means overseeing what is being done by subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets.

b)  As a function performed by supervisors in the organisational hierarchy.

supervision can 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.

Importance of Supervision

The importance of supervision can be understood from multiple roles performed by a supervisor. These are explained below:

 (i) Acts as a guide, friend and philosopher to the workers -

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) Linking pin between workers and management-

Supervisor 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) Maintains group unity among workers -

 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)Ensures efficiency & effectiveness-

 Supervisor ensures performance of work according to the targets set. He takes responsibility for task achievement and motivates his workers effectively.

(v) Provides good on-the-job training -

Supervisor provides good on-the-job training to the workers and employees. A skilled and knowledgeable supervisor can build efficient team of workers.

 (vi) Influences the workers in the organisation -

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) Analyses the work performed and gives feedback -

A good supervisor analyses the work performed and gives feedback to the workers. He suggests ways and means of developing work skills.

Motivation

Motivation means incitement or inducement to act or move.

 In the context of an organisation, it means the process of making subordinates to act in a desired manner to achieve certain organisational goals. Terms related to motivation

(i) Motive:

 A motive is an inner state that energises, activates or moves and directs behaviour towards goals. Motives arise out of the needs of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such restlessness. For example, the need for food causes hunger an account of which a man searches for food. Some such motives are – hunger, thirst, security, affiliation, need for comfort, recognition etc.,

 (ii) Motivation:

 Motivation is the process of stimulating people to action to accomplish desired goals. Motivation depends upon satisfying needs of people.

 (iii) Motivators:

Motivator is the technique used to motivate people in an organisation. Managers use diverse motivators like pay, bonus, promotion, recognition, praise, responsibility etc., in the organisation to influence people to contribute their best.

Features of Motivation:

The analysis of various definitions and viewpoints on motivation reveals the following features of motivation:

(i) Motivation is an internal feeling.

The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour. For example, people may have the urge or desire for possessing a motorbike, comfortable house, reputation in the society. These urges are internal to an individual.

(ii) Motivation produces goal directed behaviour.

 For example, the promotion in the job may be given to employee with the objective of improving his performance. If the employee is interested in promotion, it helps to produce a behaviour to improve performance.

(iii) Motivation can be either positive or negative.

a)  Positive motivation

Positive motivation provides positive rewards like increase in pay, promotion, recognition etc.,

b) Negative motivation

 Negative motivation uses negative means like punishment, stopping increments, threatening etc. which also may induce a person to act in the desired way.

 (iv) Motivation is a complex process

Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of motivation may not have uniform effect on all the members.

Motivation Process –

There are four phases involved in the process of motivated behaviour:

1. A need is aroused in the organism (thirst).

2. Behaviour directed towards satisfying the need is set in motion (reaching for water and drinking it).

3. The need is satisfied.

4. The organism relaxes.

INTRINSIC AND EXTRINSIC MOTIVATION

Types of motivation-

Intrinsic Motivation

Congnitivists hold the view that curiosity, interest, or a sense of accomplishment are sources of motivation which are intrinsic (internal) rather than responding to external forces. An intrinsically motivated activity will always be rewarded due to the direct relationship between the activity and the goal. This secures a continuous motivation to do the activity.

Extrinsic Motivation

When an activity is performed to accomplish the goal of an external reward, the person is said to be extrinsically motivated. The Behaviourists' approach to motivation mainly focuses on the external rewards of reinforcement and punishment. Selecting a job because of the salary one gets, and not because one likes the job is an example of extrinsic motivation.

Importance of Motivation:

Motivation is considered important because it helps to identify and satisfy the needs of human resources in the organisation and thereby helps in improving their performance. It is the reason why every major organisation develops various kinds of motivational programmes and spends crores of rupees on these programmes.

 The importance of motivation can be pointed out by the following benefits:

 (i) Helps to achieve higher levels of performance-

 Good motivation in the organisation helps to achieve higher levels of performance as motivated employees contribute their maximum efforts for organisational goals.

(ii) Helps to change negative or indifferent attitudes of employee

 Motivation helps to change negative or indifferent attitudes of employee to positive attitudes so as to achieve organisational goals. If suitable rewards are given and supervisor gives positive encouragement and praise for the good work done, the worker may slowly develop positive attitude towards the work.

(iii) Helps to reduce employee turnover

Motivation helps to reduce employee turnover and thereby saves the cost of new recruitment and training. The main reason for high rate of employee turnover is lack of motivation With adequate motivation the employees would stay with the organization thus the recruitment, selection and training cost for new employees won’t be there.

 (iv) Helps to reduce absenteeism in the organisation.

Some important reasons for absenteeism are–. Through sound motivational system, all the deficiencies like bad working conditions, inadequate rewards, lack of recognition, poor relations with supervisors and colleagues etc can be covered. If motivation is adequately provided, work becomes a source of pleasure and workers attend to the work regularly.

 (v) Helps to adapt changes without much resistance-

Motivation helps managers to introduce changes smoothly without much resistance from people. If manager can convince employees that proposed changes will bring additional rewards to employees, they may readily accept the change.

Maslow's Theory

 Maslow's Hierarchical concept of human needs is based on the view of prepotency of needs. He arranges human needs on a hierarchy. The most preponent are those at the lowest end. The scale depicts the hierarchy of needs in terms of their strength. The needs on the scale from the lowest to the highest order include physiological, safety, social, esteem and the need for self-actualisation. Once the lowest physiological need for food and water, sleep, health, body needs, exercise, rest and sex are satiated, they cease to be the motivators of human behaviour. The individual then tends to satisfy his/her successive higher levels of needs, which are arranged in order of prepotency.

1. Physiological Needs:

These are the basic needs for sustaining human life it self, such as food, water, warmth, shelter and sleep. Maslow took the position that until these needs are satisfied to the degree necessary to maintain life, other needs will not motivate people.

2. Security or Safety Needs:

 These are the needs to be free of physical danger and the fear of loss of job, property, food, or shelter.

3. Affiliation or Acceptance Needs:

 Since we are social beings we need to belong and be accepted by others.

4. Esteem Needs:

According to Maslow, once people are able to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige, status and self confidence.

5. Need for Self Actualisation:

Maslow regards this as the highest need in his hierarchy. It is the desire to become what one is capable of becoming to maximize one's potential and to accomplish something.

Maslow’s theory is based on the following 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 other higher level needs.

 (iii) A satisfied need can no longer motivate a person; only next higher level need can motivate him.

 (iv) A person moves to the next higher level of the hierarchy only when the lower need is satisfied

Criticism-

Maslow’s theory of need hierarchy was criticised mainly on grounds of sophistication and validity of his research data and the order of hierarchy of needs.

Porter, in his study, also finds that needs do not follow a hierarchy, especially after lower-level needs are satisfied.

Hall and Nougaim likewise, in their study of Maslow’s theory involving a group of managers over a period of five years, do not find strong evidence of a hierarchy

The concept of self-actualisation and its characteristics as described by Maslow have been subjected to criticism also. He does not elaborate the methodology adopted by him to select the cases for study.

Financial and Non-Financial Incentives

 Incentive means all measures which are used to motivate people to improve performance. These incentives may be broadly classified as financial and non financial.

 Financial Incentives:

Money is the life blood of the business as well as the economy. Since, money has the purchasing power, it becomes a very important incentive for every individual.

The financial incentives generally used in organisations are listed below:

 (i) Pay and allowances:

For every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance and other allowances. Salary system consists of regular increments in the pay every year and enhancement of allowances from time-to-time. In some business organisations, pay hike and increments may be linked to performance.

 (ii) Productivity linked wage incentives:

Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.

(iii) Bonus:

Bonus is an incentive offered over and above the wages/ salary to the employees.

 (iv) Profit Sharing:

 Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improve their performance and contribute to increase in profits.

(v) Co-partnership/ Stock option:

Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation. These shares are given in the form of ESOP’s – Employee stock Option Plans.

 In Infosys,WIPRO, IBM etc. the scheme of stock option has been implemented as a part of managerial compensation.

(vi) Retirement Benefits:

Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement. This acts as an incentive when they are in service in the organisation.

 (vii) Perquisites:

In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children etc., over and above the salary. These measures help to provide motivation to the employees/ managers.

Non-Financial Incentives:

All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play important role in providing motivation. Non-financial incentives mainly focus on these needs. Some times, monetary aspect may be involved in non-financial incentives as well. 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. Some of the important non-financial incentives are discussed below:

(i) Status:

 In the organisational context, status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position. Promotions is one of the motivators as it brings more autonomy in the entity.

 (ii) Organisational Climate:

 Organisational climate indicates the characteristics like - individual autonomy, reward orientation, consideration to employees, risk-tasking etc.,.

 which describe an organisation and distinguish one organisation from the other. These characteristics influence the behaviour of individuals in the organisation.

(iii) Career Advancement Opportunity:

Every individual wants to grow to the higher level in the organisation. Promotion works as a tonic and encourages employees to exhibit improved performance.

(iv) Job Enrichment:

 Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience.

(v) Employee Recognition programmes:

Recognition means acknowledgment with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at higher level. Some examples of employee recognition are recognizing the best performing employees, putting their names on notice board etc

 (vi) Job security:

In India, the aspect of job security is more important considering the inadequate job opportunities and too many aspirants for these. However, there is one negative aspect of job security. When people feel that they are not likely to lose their jobs, they may become complacent.

 (vii) Employee participation:

 It means involving employees in decision making of the issues related to them. In many companies, these programmes are in practice in the form of joint management committees, work committees, canteen committees etc.,

 (viii)Employee Empowerment:

 Empowerment means giving more autonomy and powers to subordinates. Empowerment makes people feel that their jobs are important. This feeling contributes positively to the use of skills and talents in the job performance.

Leadership

Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute for achieving organisational objectives.

Leadership is both a process and property. The process of leadership is the use of noncoercive influence to direct and coordinate the activities of the members of an organised group towards the accomplishment of group objectivities. As a property, leadership is the set of qualities or characteristics attributed to those who are perceived to successfully employ such influence.

Gay and Strake

Features of leadership

An examination of the above definition reveals the following important features of leadership:

 (i) Leadership indicates ability of an individual to influence others.

 (ii) Leadership tries to bring change in the behaviour of others.

(iii)Leadership indicates interpersonal relations between leaders and followers.

(iv) Leadership is exercised to achieve common goals of the organisation.

(v) Leadership is a continuous process.

Importance of Leadership:

The importance of leadership can be discussed from the following benefits to the organisation:

 (i) Good leaders produce good followers-

Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation.  A lion can lead a pack of dogs to victory but a dog will lead a pride of lions to defeat. A team of high performers led by a B grade leader is destined for poor results and frustrating work life.

 (ii) Maintains personal relations and helps followers

 A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment.

(iii) Leader makes entity suitable to work in dynamic environment-

 Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. Thus, he overcomes the problem of resistance to change and introduces it with minimum discontentment.

 (iv) Handles conflicts effectively

 A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts. A good leader always allows his followers to ventilate their feelings and disagreement but persuades them by giving suitable clarifications.

 (v)Provides training to employees

 Leader provides training to their subordinates. A good leader always builds up his successor and helps in smooth succession process.

Qualities of a Good Leader

Leadership Style

(i) Autocratic (ii) Democratic, and (iii) Laissez-faire

(i) Autocratic or Authoritarian leader

 An autocratic leader gives orders and expects his subordinates to obey those orders

This leader is dogmatic i.e., does not change or wish to be contradicted.

Suitability-

a) This leadership style is effective in getting productivity in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity.

b) Quick decision-making is also facilitated.

(ii) Democratic or Participative leader

A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision-making.

(iii) Laissez faire or Free-rein leader

Such a leader does not believe in the use of power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them.

Even a laissez faire leader would have certain rules to be followed while doing work and a democratic leader may have to take his own decision in an emergency situation.

Communication

The word communication has been derived from the Latin word ‘communis’ which means ‘common’ which consequently implies common understanding. Communication is defined in different ways. Generally, it is understood as a process of exchange of ideas, views, facts, feelings etc.,

Elements of Communication Process

Communication has been defined as a process. This process involves elements like source, encoding, media/channel, receiver, decoding, noise and feedback.

(i) Sender:

The sender represents source of communication who conveys his thoughts or ideas to the receiver.

 (ii) Message:

It is the content of ideas, feelings, suggestions, order etc., intended to be communicated.

 (iii) Encoding:

 It is the process of converting the message into communication symbols such as words, pictures, gestures etc.,

 (iv) Media:

It is the path through which encoded message is transmitted to receiver. The channel may be in written form, face to face, phone call, Internet etc.,

(v) Decoding:

 It is the process of converting encoded symbols of the sender.

 (vi) Receiver:

The person who receives communication of the sender.

(vii) Feedback:

 It includes all those actions of receiver indicating that he has received and understood message of sender.

(viii)Noise:

 Noise means some obstruction or hindrance to communication. This hindrance may be caused to sender, message or receiver. Some examples of noise are:

(a) Ambiguous symbols that lead to faulty encoding.

 (b) A poor telephone connection.

 (c) An inattentive receiver.

 (d) Faulty decoding (attaching wrong meanings to message).

 (e) Prejudices obstructing the poor understanding of message.

(f ) Gestures and postures that may distort the message.

Importance of Communication

Communication serves as the lubricant fostering for the smooth operations of the management process. The importance of communication in management can be judged from the following:

 (i) Acts as basis of coordination:

Communication acts as basis of coordination. It provides coordination among departments, activities and persons in the organisation.

 (ii) Helps in smooth working of an enterprise:

It is only communication which makes smooth working of an enterprise possible. Communication is basic to an organisation’s existence right from its birth through its continuing life. When communication stops, organised activity ceases to exist.

 (iii) Acts as basis of decision making:

Communication provides needed information for decision making. In its absence, it may not be possible for the managers to take any meaningful decision. Only on the basis of communication of relevant information one can take right decision.

 (iv) Increases managerial efficiency:

The management conveys the goals and targets, issues instructions, allocates jobs and responsibilities and looks after the performance of subordinates. Communication is involved in all these aspects. Thus, communication lubricates the entire organisation and keeps the organisation at work with efficiency.

 (v) Promotes cooperation and industrial peace:

 Efficient operation is the aim of all prudent management. It may be possible only when there is industrial peace in the factory and mutual cooperation between management and workers

 (vi) Establishes effective leadership:

Communication is the basis of leadership. Effective communication helps to influence subordinates. While influencing people, leader should possess good communication skills.

 (vii) Boosts morale and provides motivation:

Communication is the basis of participative and democratic pattern of management. Communication helps to boost morale of employees and managers.

Formal and Informal Communciation

Communication taking place within an organisation may be broadly classified as formal and informal communication.

Formal Communication

Formal communication flows through official channels designed in the organisation chart. This communication may take place between a superior and subordinate, a subordinate and superior or among same cadre employees or managers.

The communications may be oral or written but generally recorded and filed in the office.

 Formal communication may be further classified as – Vertical , Horizontal and Diagonal Communication.

Vertical Communication-

Vertical communication flows vertically i.e., upwards or downwards through formal channels.

 Upward communications refer to flow of communication from subordinate to superior whereas downward communication indicates communication from a superior to subordinate.

The examples of upward communication are – application for grant of leave, submission of progress report, request for grants etc. Similarly, the examples of downward communication include – sending notice to employees to attend a meeting, ordering subordinates to complete an assigned work, passing on guidelines framed by top management to the subordinates etc.

Horizontal Communication-

Horizontal or lateral communication takes place between one division and another.

For example, a production manager may contact marketing manager to discuss about schedule of product delivery, product design, quality etc. The pattern through which communication flows within the organisation is generally indicated through communication network.

Lateral Communication-

As the name suggests, here the conversation takes place between two employees working at different levels in different departments. For example, a website developer discussing a project with a sales manager can be categorized as crosswise or diagonal communication.

Different types of communication networks may operate in formal organisation. Some of the popular communication networks are presented and discussed in given figure

Formal Organization

 (i) Single chain:

This network exists between a supervisor and his subordinates. Since many levels exist in an organisation structure, communication flows from every superior to his subordinate through single chain.

(ii) Wheel:

In wheel network, all subordinates under one superior communicate through him only as he acts as a hub of the wheel. The subordinates are not allowed to talk among themselves.

(iii) Circular:

 In circular network, the communication moves in a circle. Each person can communicate with his adjoining two persons. In this network, communication flow is slow.

 (iv) Free flow:

 In this network, each person can communicate with others freely. The flow of communication is fast in this network.

 (v) Inverted V:

 In this network, a subordinate is allowed to communicate with his immediate superior as well as his superiors superior. However, in later case, only prescribed communication takes place.

Informal Communication

 Communication that takes place without following the formal lines of communication is said to be informal communication. 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.

The informal communication arises out of needs of employees to exchange their views, which cannot be done through formal channels. Workers chit chating in a canteen about the behaviour of the superior, discussing about rumours that some employees are likely to be transferred are some examples of informal communications. Informal channels are used by the managers to transmit information so as to know the reactions of his/her subordinates. An intelligent manager should make use of positive aspects of informal channels and minimise negative aspects of this channel of communication.

Grapevine Network

 Grapevine communication may follow different types of network.

i) Single Strand –

 In single strand network, each person communicates to the other in sequence.

ii) Gossip Network

In gossip network, each person communicates with all on non-selective basis.

iii) Probability network

 In probability network, the individual communicates randomly with other individual.

iv) Cluster network-

In cluster, the individual communicates with only those people whom he trusts.

Of these four types of networks, cluster is the most popular in organisations.