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CHAPTER 4 – DIRECTING AND LEADERSHIP [23 Marks]

1 Concept of Directing

Directing means giving instruction to people to do a work. But the scope of directing is
not confined only to the giving instruction. In addition to instruction, it is concerned with
guiding, supervising and motivating the employees.
" According to Koontz and O'Donnell "Directing is a complex function that includes all those
activities which are designed to encourage subordinates to work effectly and efficiently.

2. Features of Directing

The salient features of directing are

(i) Basis of starting work: Directing is the basis of starting work; because actual work begins
only when the subordinates get directions from their superiors.

(ii) Managerial function: Directing is an important function of management. Managers guide

and encourage their subordinates to work effectively and efficiently through this function.

(iii) All Pervasive function: Directing is an all-pervasive function of management; because,

the managers at all levels have to perform this function to guide their subordinates.
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(iv) Continuous function: Every manager has to guide, supervise and motivate his
subordinates continuously for achieving the organisational goals. So, directing is a
continuous function of the managers.

(v) Downward Flow: Directing flows from top to bottom. This means that every manager
can direct his immediate subordinate only.

(vi) Human factor: The purpose of directing is to influence human behaviour so that the
employees are motivated to work with their best effort. So, it is concerned with human
factor in the organisation.

3. Importance of Directing

In the context of importance of directing, we can present the following points-

(i) Basis of starting work: Directing is the basis of starting work; because the subordinates
start work only after getting direction from the superior.

(ii) Integration of Human efforts: If the efforts of different employees of an organisation are
different, it is not possible to achieve the organisational goals. Directing integrates the
efforts of all the employees of the organisation.

(iii) Means of motivation: Directing does not mean giving order only. Through directions,
superiors motivate the employees to contribute their maximum efforts towards the
achievement of organisational goals.

(iv) Balance in the organisation: The attitudes of employees working at different levels in an
organisation are different.Directing dissolves such difference in attitudes of the employees
and helps to maintain balance in the organisation.
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(v) Adjustment of changes: Every oganisation has to face several continuous changes such
as social, political, environmental and technological. Through directing, workers are
motivated to adjust such changes in the interest of the organisation.

vi) Optimum utilisation of non-human element: Directing helps in optimum utilisation of

the non-human elements through proper management of the human element.

(vii) Increase in work efficiency: Directing defines the duties of the employees. As a result of
it, they become free from hesitation regarding performance of duties and they can pay
attention with single-minded devotion in the performance of works. It increases their work
efficiency.

4. Elements of Directing

Supervision, motivation, financial and non-financial incentives, leadership and

communication are the essential elements of Directing. These are discussed below:

1. Supervision: Supervision refers to 'overseeing the work of the subordinates by their

superiors. Every manager has to supervise the works of his subordinates in order to verify
whether the subordinates are performing works according to the direction or not. Top level
managers supervise the works of middle level managers, middle level managers supervise
the works of lower level managers and lower level managers supervise the works of the
workers

II. Motivation: Motivation is the process of stimulating people to action to accomplish

desired goals. The aim of motivation is to influence the behaviour of subordinates for better
performance and achieving the desired results.

III. Financial and Non-financial Incentives: Incentive refers to monetary and non-monetary
rewards which motivate the employees to improve their performance. These incentives can
be classified into two groups; such as (a) Financial Incentives and (b) Non-financial
Incentives. These are discussed below:
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(a) Financial Incentives: The incentives which are offered in the form of money are called
Financial Incentives. For example Pay and Allowance, Bonus, Commission, Profit- sharing,
Retirement benefits (i.c., Pension, Gratuity etc.), Perquisites etc. are the examples of
Financial Incentives.

(b) Non-Financial Incentives: The incentives which are not measurable in terms of money
are called Non-financial Incentives. Status, Job security, Job enrichment, opportunity for
career advancement, recognition etc. are the examples of non-financial incentives.

IV. Leadership: Leadership is a process of influencing the behaviour of people to work

towards the achievement of organisational objectives. It plays an important role in
directing; because, the subordinates obey the direction of a manager properly only when
the manager has the capacity to provide a good leadership. So, leadership is an important
element of the directing function of management.

V. Communication: In order to achieve the desired goals, a manager has to give direction
continuously to his subordinates about what to do, how to do and when to do various
things. Thus it can be said that an effective communication is necessary between the
management and the subordinates in order to make the directing function effective.

Leadership

Leadership is the personal quality or ability by which a person can guide the others, influence their
behaviours and control their activities. Two parties are concerned with leadership, such as-Leader
and followers. The person who influences and guides the efforts and work of a group of persons, is
called a Leader. On the other hand, the persons who are guided and influenced by a leader are
called Followers.

According to Koontz and O'Donnell "Leadership is the ability of a manager to induce subordinates to
work with confidence and zeal."

In brief, we can say that Leadership is such a process by which a leader influences the behaviours
of his subordinates, guides them and controls their activities for the achievement of organisational
goals.
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Features of leadership

The salient features of leadership are-

I. Leadership is an influencing process by which a leader directs his followers towards the
achievement of pre-determined objectives..

II. Leadership is highly situational. So, every leader has to modify his approach and style of
functioning as per the demand of the situation.

III. Leadership is an authority-based process. This means that a leader should have adequate power
in order to influence the behaviour of his followers.

IV. It indicates inter-personal relationship between a leader and his followers.

V. It is a continuous process; because, an organisation comes to an end because of absence of

leader.

VI. It aims at bringing changes of behaviour of people.

VII. It is exercised to achieve the common goal of the organisation.

VIII. It is a mental process by which a leader directs his followers towards a particular goal.

Importance of Leadership

The importance of leadership are as follows

I. Source of motivation: A good leader can easily motivate his subordinates to achieve the
organisational goals. So, leadership is a source of motivation.

ii. Determination of goals and policies: A leader sets goals and policies of the organisation and
explains them to his subordinates. So, the subordinates can perform their tasks properly.

III. Directing group activities: A good leader directs the group activities in such a way so that he can
effectively get the work done by each subordinate. For this purpose, he acts as a friend, philosopher
and guide to his subordinates. So, he can easily induce the subordinates to follow his direction.

IV. Better utilisation of manpower: Effective leadership ensures better utilisation of manpower
through making proper plans, policies and programmes, because, if they are properly set, the
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subordinates can perform their duties in a systematic way which prevents idle labour in the
organisation.

V. Building Morale: High morale of the employees ensures high productivity and organisational
stability. Effective leadership develops high morale among the employees through developing good
human relations and co-operative attitudes among them. So, good leadership is indispensable to
high employee morale.

VI. Developing good human relation: Human relations represent the relation between the leader
and his subordinates. An efficient leader develops the talents of his subordinates, promotes self-
confidence in them, motivate them to work, provides an opportunity to demonstrate their ability
and he remain always in touch with them to guide them properly. In this way he creates an
environment of good human relationship which helps to increase the productivity of the
organisation.

VII. Achieving co-ordination: In order to achieve the desired goal of an organisation, a smooth co-
ordination is necessary among all the activities of the organisation. Effective leadership facilitates co-
ordination of group activities through sharing information with the group members.

VIII. Providing guidance: The role of leadership is very important for providing guidance to the
subordinates. A good leader guides his subordinates towards the achievement of organisational
goals and provides guidance to them when they face any problem.

. IX. Flexibility for changes: In order to survive in the everchanging environment, every organisation
has to welcome the changes in environment and adapt the organisational goals with that very
changes. Leadership is the only way to inform the subordinates about the need for changes.

X. Maintaining discipline: Discipline is such a source which compels the individuals to observe rules,
regulations and procedures. A good leader always maintains discipline among his subordinates. So,
all the activities of the organisation are performed systematically.

XI. Securing co-operation of the employees: Leadership creates team spirit and persuades the group
members to work unitedly and enthusiastically for the achievement organisational goals. In this way,
it develops for co-operative attitudes among the members.

Qualities of a Good Leader

(1) Physical qualities: Physical features such as height, weight, health, physical fitness etc. of a
person attract people. So, a good leader should have attractive figure.
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(ii) Intelligence: A leader should be intelligent enough to examine every problems in the right
perspective.

(iii) Knowledge: A good leader should have complete knowledge and competence about the work
performed by his group members; other than ill will not be possible for him to handle the members
properly.

(iv) Integrity: A leader should possess high level of integrity and honesty for being a role model to
others regarding the ethics and values.

(v) Communication skills: A leader should have good communication skills to make the people
understand clearly and precisely what he wants to convey.

(vi) Motivational skills: A leader should know the techniques to motivate his followers for the
achievement of the desired goals.

(vii) Self confidence: Self confidence is essential to motivate the followers and boost up their

morale. A leader can provide leadership successfully only when he has confidence on hisown
abilities. So, a good leader should have adequate self-confidence.

(vili) Sense of Responsibility: A leader should be responsible so that the followers can depended on
him.

(ix) Emotional Stability: A good leader should have a cool temperament and emotional balance; he
should not be unduly moved by emotions and sentiments.

(x) Decisiveness: A leader should have sound ability to take right decisions at the right time. Once
the decision is taken, he should stick to it than to change it frequently.

leadership styles

1. Democratic Leadership (Also called: Participative or Facilitative Leadership) This is as clear as its
name. In democratic leadership, the leaders make or break decisions democratically, based on their
team's opinion and feedback. Although it is the leader who makes the final call, every opinion
counts. This is easily one of the most effective leadership styles since it allows employees to have a
voice. The leader takes the decision in consultation with the subordinates is Democratic style of
leadership. In this leadership style, the leader makes decisions taking into account the input of all
team members, regardless of their seniority or expertise.

2. Autocratic Leadership (Authoritarian, Coercive or Commanding Leadership)

Under the autocratic leadership styles, all decision-making powers are centralized in the leader as
shown such leaders are dictators. Autocratic leadership style is known as leader centred. Autocratic
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leadership is the inverse of democratic leadership. In this leadership style, the leader makes
decisions without taking input from anyone who reports to them. In autocratic style of leadership
there is no delegation of authority.

The authority of the leader is the highest, followers obey the orders of the leader, and leader is the
central authority to take decisions are some of the characteristics of Autocratic leadership.

3. Laissez-Faire Leadership (Delegative or Hands-off Leadership Or free-rein)

The French term "laissez-faire" literally translates to "let them do." Leaders who embrace it give
nearly all authority to their employees. Decentralization of the power, authority and decision making
is the feature of Free-rein Leadership.The laissez-Faire leadersłup style is often found in younger
start-ups. In this leadership style, leaders put nearly all the decision making power in the hands of
their employees For example, a leader might not set official policies around project deadlines or
working hours for their employees.

4. Bureaucratic Leadership

This kind of leadership style goes by the books. Although leaders with this approach do listen to
employees and their opinions, they may negate or reject it, in case they go against the company's
ethos or policy.

Unlike autocratic leadership, this style might consider the input of team members. However, if that
input conflicts with existing policy the leader will likely reject it. This style of leadership is commonly
found in larger and older organizations who have successful.

Bureaucratic leadership is quick to shut down innovation and discourages new ways of thinking and
achieving ambitious goals.

Continuum leadership theory of Tannenbaum and Schmidt

The Tannenbaum and Schmidt Continuum Leadership Theory proposes a spectrum of leadership
styles based on the degree of authority and control exercised by leaders versus the amount of
freedom and decision-making given to subordinates. Here's an explanation of the theory:

1. Autocratic Leadership (Tell): At one end of the continuum is the autocratic style, where leaders
make decisions independently and impose them on subordinates with little or no input. This style is
characterized by high control and low subordinate freedom.

2. Consultative Leadership (Sell): Moving along the continuum, leaders adopt a consultative
approach where they present decisions to subordinates for feedback but ultimately retain the
authority to make final decisions. While subordinates may feel more involved, the ultimate power
still rests with the leader.
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3. Participative Leadership (Consult and Join):Further along the continuum, leaders involve
subordinates more actively in the decision-making process. Subordinates are encouraged to
contribute ideas and suggestions, and the leader integrates these inputs into the final decision-
making process. This style increases subordinate freedom and empowerment.

4. Democratic Leadership (Delegate):Near the other end of the continuum is the democratic style,
where leaders delegate decision-making authority to subordinates. Subordinates have a high degree
of freedom to make decisions within their areas of responsibility, and leaders provide support and
guidance as needed.

5. Laissez-Faire Leadership: At the extreme end of the continuum is the laissez-faire style, where
leaders provide minimal guidance or direction, giving subordinates complete freedom to make
decisions and manage tasks independently. Leaders in this style are largely hands-off, providing
resources and support but little direct involvement in decision-making.

Blake and Mounton’s Leadership Theory

Blake and Mouton's Leadership Grid, also known as the Managerial Grid, is a leadership theory
developed by Robert Blake and Jane Mouton in the 1960s. It evaluates leadership styles based on
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two behavioral dimensions: concern for people and concern for production. Here's a brief discussion
of the theory:

1. Concern for People: This dimension assesses a leader's focus on the well-being, satisfaction, and
personal development of their team members. Leaders who score high on this dimension prioritize
building relationships, fostering a supportive environment, and addressing the needs of their
followers.

2. Concern for Production: This dimension evaluates a leader's emphasis on achieving goals, tasks,
and outcomes. Leaders who score high on this dimension prioritize efficiency, productivity, and
performance. They focus on meeting deadlines, maximizing output, and delivering results.

The Leadership Grid plots these two dimensions on a 9x9 grid, creating various leadership styles:

- **Impoverished (1,1)**: Leaders with low concern for both people and production. They typically
exert minimum effort in their roles and avoid making decisions.
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- **Country Club (1,9)**: Leaders with high concern for people but low concern for production. They
prioritize creating a friendly and comfortable work environment, often at the expense of
productivity.

Produce or Perish (9,1) Leaders with high concern for production but low concern for people. They
focus solely on achieving tasks and meeting deadlines, sometimes neglecting the needs and well-
being of their team members.

Team (9,9): The ideal leadership style according to Blake and Mouton. Leaders scoring high on both
dimensions prioritize both the needs of their team members and the achievement of goals. They
strive to create a collaborative and high-performing work environment.

Middle-of-the-Road (5,5): Leaders with moderate concern for both people and production. They aim
to maintain a balance between achieving goals and maintaining satisfactory relationships with their
team.

Blake and Mouton argued that the Team leadership style is the most effective in achieving
organizational goals while fostering employee satisfaction and motivation. However, they also
acknowledged that leadership style effectiveness can vary depending on situational factors.

Likert’s System Theory

The Likert System Four Theory, also known as Rensis Likert's four systems of management, is a
conceptual framework developed by psychologist Rensis Likert in the 1960s. Likert was interested in
understanding organizational behaviour and leadership styles, particularly in the context of
management practices.

The Likert System Four Theory categorizes management styles into four main systems:

1.Exploitative-Authoritative: In this system, management relies heavily on power and coercion to

control employees. Decision-making is centralized, and communication typically flows from the top
down. There's little trust or collaboration between management and employees, leading to a
hierarchical and often fear-based work environment.

2. Benevolent-Authoritative: This system also features centralized decision-making, but

management adopts a more paternalistic approach. While employees may feel more supported
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compared to the exploitative-authoritative system, there's still a significant power imbalance.

Management may offer rewards or incentives to encourage compliance, but ultimately, authority
remains concentrated at the top.

3. Consultative: In the consultative system, management seeks input from employees on certain
decisions, but ultimate authority still rests with management. Communication flows more freely
compared to the previous two systems, and there's a moderate level of trust between management
and employees. However, employees may still feel somewhat constrained by the hierarchical
structure.

4. Participative Group: The participative group system represents the most democratic and
employee-centered approach to management. Decision-making is decentralized, with management
actively involving employees in setting goals, making decisions, and solving problems.
Communication is open and transparent, fostering a high level of trust and collaboration. Employees
feel empowered and motivated to contribute to the organization's success.

The Likert System Four Theory suggests that the effectiveness of an organization's management
style depends on the degree of employee involvement in decision-making and the level of trust and
collaboration between management and employees. Likert argued that organizations adopting a
participative group system tend to be more successful in achieving their goals and maintaining
employee satisfaction.

Trait Theory of Leadership

Trait theory of leadership suggests that certain inherent qualities or traits predispose individuals to
become effective leaders. It focuses on identifying specific characteristics such as intelligence,
confidence, decisiveness, and charisma that are believed to be common among successful leaders.
However, it oversimplifies leadership by neglecting situational factors and the importance of learned
behaviors and skills in effective leadership.

Fred Fielder’s situational leadership

Fred Fiedler's Contingency Theory of Leadership, often associated with Situational Leadership,
proposes that effective leadership depends on the interaction between the leader's style and the
situational favourableness. Fiedler categorized leadership styles as either task-oriented or
relationship-oriented, and he argued that the effectiveness of each style depends on three
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situational factors: leader-member relations, task structure, and position power. Situational
Leadership, on the other hand, is more closely associated with Paul Hersey and Kenneth Blanchard's
model, which emphasizes adapting leadership style based on the readiness or maturity level of
followers. This model suggests that leaders should adjust their directive and supportive behaviours
according to the readiness of their followers to perform a specific task. Both theories highlight the
importance of considering the context in which leadership occurs and adapting one's approach
accordingly for optimal effectiveness.