Pom 2
Pom 2
Engineers (UNIT-II)
B.Tech(EEE)
VI-Semester
Course Code:MS-302
Planning and Directing
Nature & Purpose of Planning
Nature: Planning is a systematic process of deciding in advance what to do, how to do it, when to do it, and who
should do it. It involves setting objectives and developing an appropriate course of action to achieve these
objectives.
Purpose: The main purpose of planning is to provide direction, reduce uncertainty, improve efficiency, and establish a
basis for control.
Characteristics
Specific: Clearly defined and explicit.
Measurable: Quantifiable or assessable.
Achievable: Realistic and attainable.
Relevant: Aligned with broader goals and purposes.
Time-bound: Having a defined timeframe for achievement.
Setting Objectives
Process
Identification of Goals: Understanding the overarching goals of the organization.
Breaking Down Goals into Specific Objectives: Translating these goals into more specific, actionable objectives.
Ensuring SMART Criteria: Ensuring each objective meets the criteria of being Specific, Measurable, Achievable,
Relevant, and Time-bound.
Aligning with Resources: Aligning objectives with available resources.
Communication and Agreement: Communicating objectives to relevant stakeholders and getting their buy-in.
Regular Review and Adjustment: Monitoring progress and making necessary adjustments.
Reliance Jio's Market Penetration Goal: When Reliance Jio entered the Indian telecom market, its objective was to
acquire a large customer base quickly. The specific objective was to gain 100 million subscribers in the first year.
This objective was SMART as it was specific (100 million subscribers), measurable (number of subscribers can be
counted), achievable (given India’s large population and Jio’s competitive pricing), relevant (critical for establishing a
market presence), and time-bound (one year).
Tata Motors' Electric Vehicle (EV) Initiative: Tata Motors, recognizing the shift towards sustainable transportation,
may set an objective to capture 30% of the EV market in India by 2025. This is a SMART objective: it is specific (30%
market share), measurable (market share percentage), achievable (with investments in technology and
infrastructure), relevant (aligns with global and national shifts towards EVs), and time-bound (by the year 2025).
In the context of Indian businesses, objectives play a critical role in navigating a dynamic and competitive
environment. They provide a clear focus and direction, helping organizations to allocate resources effectively,
motivate employees, and measure progress towards their broader strategic goals. Whether it's entering a new
market, launching a new product, or increasing operational efficiency, setting and pursuing well-defined objectives is
essential for business success.
Managing by Objectives (MBO) is a strategic management model that aims to improve the performance of an
organization by clearly defining objectives that are agreed upon by both management and employees. The MBO
process is meant to align employees' activities with the organization's goals and to ensure that they participate in
setting these goals and have a clear understanding of their roles.
Setting Objectives: The first step is establishing clear, achievable objectives at various levels of the organization.
These objectives should be aligned with the company's overall goals and strategy.
Involving Employees: Managers and employees collaborate to set individual objectives that are in line with broader
organizational goals. This participation ensures that employees are more committed and motivated.
Defining Key Results: Each objective is associated with specific, measurable outcomes, often termed as Key Result
Areas (KRAs).
Monitoring Progress: Regularly reviewing and assessing the progress toward achieving these objectives. This
involves collecting and analyzing performance data.
Performance Evaluation: At the end of a set period (usually annually), performance is evaluated based on the
achievement of the objectives.
Feedback and Rewarding Achievements: Providing feedback to employees on their performance. Rewards and
Prof. ABHISHEK GANDHAR
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recognition are given for objectives met or exceeded, while areas needing improvement are addressed.
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Infosys, a global leader in consulting, technology, and outsourcing services, has effectively
implemented MBO to align its operations with strategic goals and enhance employee
performance.
Objective Setting at Infosys: At the beginning of the fiscal year, Infosys sets organizational objectives based on its
strategic goals. Managers then work with their teams to set individual objectives that contribute to these broader
goals.
KRAs and KPIs: Each employee has specific Key Result Areas (KRAs) linked to the objectives, along with Key
Performance Indicators (KPIs) to measure success. For example, a software developer's KRA might include
delivering a certain number of projects with a specific quality rating.
Regular Reviews and Adjustments: Infosys conducts regular performance reviews where managers and employees
assess progress against objectives. These reviews allow for adjustments to be made in response to changes in the
business environment or other factors.
Annual Appraisals: Employee performance is formally evaluated annually, based on the achievement of their
objectives. This evaluation impacts promotions, bonuses, and other rewards.
Feedback and Development: Along with performance evaluation, employees receive feedback on their strengths and
areas for improvement. This
Prof. ABHISHEK is often linked to training and development opportunities.
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Conclusion
In the context of Indian businesses, MBO helps in bridging the gap between
organizational goals and individual performance. By involving employees in the goal-
setting process and aligning their objectives with the company's strategic goals,
organizations like Infosys can foster a more engaged and productive workforce. This
approach not only drives organizational success but also contributes to employee
satisfaction and professional growth.
Strategies Defined
Key Components
Long-term Vision: Strategies are often crafted with a long-term perspective, spanning several
years.
Goal-Oriented: Aimed at achieving specific organizational goals, which could be expanding
market share, entering new markets, or developing new products.
Resource Allocation: Involves deciding how best to utilize the organization's resources (human,
financial, technological) to achieve the set goals.
Risk Management: Identifying potential risks and incorporating ways to mitigate them.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Strategic Development Process
Policies
Definition
Policies are general guidelines that outline how an organization intends to conduct its
operations. They serve as a roadmap for decision-making and establish the boundaries
within which decisions should be made.
Overall, the right mix of clear policies and well-considered planning premises provides a robust
framework for guiding organizational decision-making and strategic planning. It's a balance of
guiding principles (policies) and realistic assessments of the future (planning premises), allowing
companies like Tata, Reliance, and Infosys to navigate India's dynamic and challenging business
environment effectively.
Monitoring Market Trends: Maruti Suzuki closely monitors trends in the Indian automobile
market, including shifts in consumer preferences, such as the increasing demand for SUVs and
electric vehicles.
Competitor Product Offerings: They regularly analyze the product offerings of competitors like
Hyundai, Tata Motors, and Mahindra to understand their features, pricing strategies, and
customer reception.
Sales and Distribution Strategies: Maruti evaluates the sales and distribution strategies of
competitors, noting their dealership networks, online sales platforms, and customer service
approaches.
Technological Advancements: Keeping tabs on the technological advancements being
incorporated by competitors, such as electric vehicle technology or advanced safety features.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Broader Implications
Strategic Planning: CI helps Maruti Suzuki in strategic planning, ensuring they stay ahead in
innovation, marketing, and customer experience.
Product Development: Insights from CI influence their product development, leading to vehicles
that better meet consumer demands.
Marketing Strategies: Understanding competitors’ marketing strategies aids Maruti in crafting more
effective campaigns.
Conclusion
In India's highly competitive automobile industry, where consumer preferences and technological
advancements are constantly evolving, competitor intelligence is vital for maintaining market
leadership. It allows companies like Maruti Suzuki not just to react to competitors but to anticipate
market changes and align their strategies accordingly. This proactive approach is crucial for
sustaining long-term competitiveness in the dynamic Indian market.
Types of Benchmarking
Internal Benchmarking: Comparing practices and performance within different
departments or divisions of the same organization.
Competitive Benchmarking: Directly comparing with competitors in the same industry.
Functional Benchmarking: Looking at best practices in similar functions in different
industries.
Generic Benchmarking: Comparing operations between unrelated industries.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Steps in the Benchmarking Process
Identifying What to Benchmark: Selecting specific processes or performance metrics that need
improvement.
Choosing Benchmarking Partners: Identifying organizations known for their excellence in these
areas.
Collecting Data: Gathering data on how these benchmarking partners achieve their performance
levels.
Analyzing the Data: Identifying gaps and areas where improvements can be made.
Implementing Changes: Applying the insights gained to improve the organization's processes or
performance metrics.
Review and Continual Improvement: Regularly reviewing the impact of these changes and making
further improvements as needed.
Customer Service: HDFC benchmarks its customer service standards against global leaders in
the banking sector. This might involve comparing their customer response times, service delivery
methods, or satisfaction rates.
Operational Efficiency: The bank examines the operational processes of global and national
banking leaders to identify more efficient ways of conducting business, such as reducing
transaction processing times or improving the digital banking experience.
Technological Innovation: HDFC Bank also benchmarks its technology and digital banking
services against top global banks, adopting best practices to improve user experience and
security.
Broader Implications
Enhanced Competitive Advantage: By continually striving to meet or exceed the highest
standards in the industry, HDFC Bank positions itself favorably in the highly competitive banking
sector.
Informed Strategic Decision-Making: Benchmarking helps HDFC in making data-driven decisions
that align with industry best practices.
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Customer Satisfaction and Loyalty: Improved services and operations, as a result of3/31/2024
BVCOE, New Delhi
benchmarking, enhance customer satisfaction and loyalty.
Conclusion
Forecasting: This process involves using historical data, analysis of current trends, and statistical
techniques to predict future events or trends. It's a fundamental component of decision-making
processes in businesses.
Purpose: The main aim of forecasting is to help businesses prepare for the future. By predicting
changes in the market, consumer behavior, or technology trends, companies can make proactive
decisions to gain competitive advantages.
Types of Forecasting
Qualitative Forecasting: Involves using expert opinions and other non-quantifiable information to
make predictions. This is often used when there is a lack of historical data.
Quantitative Forecasting: Uses statistical methods and historical data to make forecasts. This
includes techniques like time series analysis, regression models, and econometric modeling.
Indian IT giants like TCS (Tata Consultancy Services) and Wipro extensively use forecasting for
various strategic purposes:
Predicting Technology Trends: These companies forecast emerging technology trends to stay
ahead in the market. For instance, forecasting the rise of artificial intelligence, cloud computing,
or blockchain technology allows them to invest in these areas ahead of competitors.
Client Demand Forecasting: Understanding future client needs is critical for project planning and
resource allocation. TCS and Wipro use forecasting to predict which services will be in high
demand, enabling them to train their employees in relevant skills and technologies.
Market Analysis: Forecasting global and local IT market trends helps in making strategic
decisions about geographic expansion, mergers and acquisitions, and entering new market
segments.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Broader Implications
Conclusion
In the dynamic field of information technology, where trends and customer demands change
rapidly, forecasting is an invaluable tool for companies like TCS and Wipro. It allows them to
remain competitive and innovative in a global market. Accurate forecasting is not just about
predicting the future; it's about creating a roadmap for strategic and proactive decision-making
that canProf.
adapt to changing
ABHISHEK GANDHARmarket conditions.
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Decision-making
Process:
Identifying the Decision to Be Made: Recognizing that a decision is needed and defining the
nature of the decision.
Gathering Information: Collecting data and insights relevant to the decision.
Identifying Alternatives: Listing possible options or courses of action.
Weighing Evidence: Analyzing the pros and cons of each alternative.
Choosing Among Alternatives: Selecting the most suitable option based on the analysis.
Taking Action: Implementing the chosen alternative.
Reviewing the Decision: Evaluating the outcome of the decision and learning from the process.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Example from India: Mahindra & Mahindra
Mahindra & Mahindra's foray into the electric vehicle (EV) market illustrates strategic
decision-making:
Environmental Analysis: Mahindra & Mahindra analyzed the global and Indian automotive
markets, noting the growing emphasis on sustainability and the rising demand for eco-friendly
transportation solutions.
Market Potential: Recognizing the potential growth in the EV sector in India, driven by
government incentives and increasing environmental awareness, they identified the electric
vehicle market as a key area for expansion.
Resource Assessment: The company assessed its capabilities, including technological
expertise, manufacturing capacity, and financial resources, to determine the feasibility of
entering this market.
Risk Evaluation: Potential risks, such as technology development challenges, market
acceptance, and competition, were analyzed.
Strategic Decision: The decision to enter the EV market was made considering these factors,
aligning with the company's long-term sustainability goals and market opportunities.
Implementation: This decision led to the development and launch of several electric vehicle
models,Prof.
along with GANDHAR
ABHISHEK investments in related technologies and infrastructure.
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Broader Implications
Strategic Alignment: The decision aligned with Mahindra's broader strategy of innovation and
sustainability.
Market Positioning: This move positioned Mahindra as a pioneer in the EV market in India,
capitalizing on early market opportunities.
Risk and Opportunity Management: The decision involved balancing risks with the potential
for significant growth in a nascent market.
Conclusion
In the Indian business landscape, where market dynamics are rapidly evolving, decision-
making is crucial for corporate success and sustainability. Mahindra & Mahindra's entry into
the electric vehicle market is a prime example of how informed and strategic decision-making
can open new avenues for growth and innovation. This process is fundamental for
businesses to navigate
Prof. ABHISHEK challenges, seize opportunities, and maintain a competitive edge in
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their respective
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The scope of directing in management is broad and encompasses various functions
and roles within an organization.
.
Ensuring Employee Well-being: Good directing also focuses on employee satisfaction and motivation,
recognizing that satisfied employees are more productive and committed.
Implementing Changes: Directing is critical in managing change within an organization, guiding and
supporting employees through transitions.
Conflict Management: Part of directing is managing conflicts and ensuring that they are resolved in a way
that is beneficial for both the organization and its employees.
Conclusion
In today’s fast-paced and competitive business environment, especially in a market as large and
diverse as India, creativity and innovation are not just beneficial but necessary for survival and
growth. Companies like Flipkart that prioritize and embed these concepts into their corporate
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culture are GANDHAR
often more successful in adapting to changes, overcoming challenges, 3/31/2024
and leading
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their industries.
Harmonizing objectives
Conclusion
In a dynamic and diverse business environment like India's, harmonizing objectives is essential for
businesses seeking sustainable growth and employee satisfaction. By aligning organizational goals with
the personal ambitions of employees, companies like Reliance Industries not only boost productivity
and innovation but also cultivate a loyal and dedicated workforce. This strategic approach is beneficial
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in building GANDHAR
strong organizational culture and a competitive edge in the market.
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Leadership is a crucial element in the realm of management and organizational success. It
involves influencing and guiding others towards achieving common goals.
Conclusion
Leadership, as exemplified by Ratan Tata, involves more than just managing people and processes. It's about
inspiring confidence, building a vision for the future, and guiding an organization through growth and change.
Effective leadership is critical in setting the direction for the organization, influencing its culture, and achieving
long-termProf. ABHISHEK GANDHAR
success.
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Leadership can manifest in various styles, each with its unique approach
to decision-making, employee interaction, and organizational control.
Understanding these types is crucial for both leaders and organizations in
choosing the most effective style for their specific context.
Characteristics
Quick decision-making process.
Clear directives and expectations.
Little group input or collaboration.
Application
Often effective in situations requiring rapid decision-making or in organizations where clear, directive leadership is
needed.
2. Democratic Leadership
Definition
Democratic Leadership includes team members in the decision-making process, encouraging participation and input
from group members.
Characteristics
Collaborative decision-making process.
Encourages open communication and employee participation.
Builds consensus and commitment among team members.
Characteristics
High level of trust in employees’ abilities.
Employees have the freedom to innovate and make decisions.
Suitable for teams of experienced and skilled professionals.
Application
Effective in creative industries or with highly skilled teams where innovation and creativity are crucial.
Conclusion
The leadership style adopted by an organization or leader greatly impacts team dynamics, decision-
making processes, and overall organizational culture. Autocratic leaders may excel in crisis situations
where quick decisions are needed, while democratic leaders like Narayana Murthy can foster a more
inclusive and collaborative environment. Laissez-faire leadership works best when employees are self-
motivated and skilled.
In practice, a mix or adaptation of these styles is often seen, depending on the organization's needs,
team composition, and specific situations. Effective leaders are those who can adapt their style to best
meet theProf. ABHISHEK
needs GANDHAR
of their organization and employees.
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Early leadership theories laid the foundation for our understanding of how effective leadership is
characterized and practiced. These theories primarily fall into two categories: Trait Theories and
Behavioral Theories. Each offers a different perspective on what constitutes effective leadership.
1. Trait Theories
Definition
Trait Theories posit that certain inherent personality traits and characteristics make a person a good
leader. These theories suggest that leaders are born, not made.
Definition
Behavioral Theories focus on the behavior of leaders rather than their physical, mental, or emotional
traits. These theories suggest that effective leadership is a result of learned behavior.
Key Aspects
Behavioral theories classify leaders based on their behavior, often into categories such as task-oriented
leaders and people-oriented leaders.
These theories emphasize that leadership capabilities can be developed and are not necessarily
inherent.
Example in Management
Behavioral theories are often applied in leadership training and development programs, focusing on
teaching effective leadership behaviors like communication skills, team building, and conflict resolution.
Conclusion
Early leadership theories, while providing valuable insights, have evolved over time. Modern leadership
theories and practices recognize that effective leadership is a combination of personal traits, learned
behaviors, and situational responses. In the context of Indian leadership, figures like Azim Premji
demonstrate that while certain personal characteristics are influential, the behaviors and actions of a
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leader, shaped GANDHAR
by experience and context, are equally critical in defining effective leadership.3/31/2024
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The Managerial Grid, developed by Robert Blake and Jane Mouton, is a framework that
conceptualizes leadership styles based on two key dimensions: concern for people and
concern for production. This model is instrumental in understanding and evaluating different
leadership approaches.
Impoverished Management (1,1): Low concern for both people and production. Managers with this style often do
the bare minimum to get by.
Country Club Management (1,9): High concern for people but low concern for production. These leaders prioritize
team welfare and happiness, which can sometimes result in lower productivity.
Authority-Compliance (9,1): High concern for production but low concern for people. This style focuses on
efficiency and results, often at the expense of employee satisfaction.
Middle-of-the-Road Management (5,5): Moderate concern for both people and production. Leaders try to balance
between organizational goals and employee needs.
Team Management (9,9): High concern for both people and production. Leaders who adopt this style foster team
environment where employee needs are met, and high production is also achieved.
Conclusion
The Managerial Grid is a useful tool for understanding and developing leadership styles. In
the diverse Indian corporate landscape, effective leadership often involves adapting one's
style to various contexts and needs, balancing concern for people with concern for
production. This adaptability is crucial in a rapidly evolving market like India, where both
employee well-being and organizational success are paramount.
Conclusion
The contingency theories of leadership are particularly relevant in dynamic sectors like IT,
where adaptability and situational awareness are key. In the rapidly evolving business
landscape of India, effective leaders are those who can assess the nuances of each situation
and adapt their leadership style accordingly. This flexibility not only enhances team
performance but also contributes to achieving organizational goals more effectively.
Leader Behavior: Leaders adapt their style to the employee and the situation. The theory identifies four
types of leader behaviors:
Directive Leadership: Offering specific guidance and setting clear standards of performance.
Supportive Leadership: Being approachable and friendly, showing concern for employees’ well-being.
Participative Leadership: Consulting employees and considering their opinions in decision-making.
Achievement-Oriented Leadership: Setting challenging goals and encouraging high performance.
Environmental Factors: The work environment, task structure, team dynamics, and organizational culture
also influence the effectiveness of different leadership styles.
Conclusion
In the context of Indian startups, where agility and adaptability are key, the path-goal theory offers a
valuable framework for leaders. By adjusting their leadership style to the needs of their employees and
the demands of the situation, leaders can effectively motivate their teams, enhance job satisfaction, and
drive the organization towards its goals. This approach acknowledges that leadership is not a one-size-
fits-all solution but rather
Prof. ABHISHEK a dynamic and situational process.
GANDHAR
BVCOE, New Delhi 3/31/2024
Contemporary views of leadership emphasize the dynamic and diverse approaches leaders can
adopt to inspire, influence, and manage their teams and organizations. Among the most
prominent are transformational and transactional leadership styles.
1. Transformational Leadership
Definition
Transformational Leadership: This style involves leaders who inspire and motivate their followers to
achieve exceptional outcomes. They focus on transforming followers' beliefs, values, and capabilities,
thereby impacting the organization's culture and performance.
Key Characteristics
Inspirational Motivation: Providing a clear vision and inspiring followers.
Intellectual Stimulation: Encouraging innovation and creativity.
Individualized Consideration: Offering personal attention and coaching to followers.
Idealized Influence: Acting as role models with high ethical standards.
Definition
Transactional Leadership: This style is based on the concept of transactions or exchanges
between leaders and followers. It involves a series of transactions that lead to mutually
beneficial outcomes.
Key Characteristics
Contingent Reward: Leaders provide rewards or recognition in exchange for followers’
performance.
Management by Exception: Leaders intervene only when standards are not met or when
performance varies significantly from expectations.
Application in Business
Transactional leadership is often effective in structured environments where specific goals,
tasks, and standards are clear. It's commonly seen in large, bureaucratic organizations where
routine and efficiency are prioritized.
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BVCOE, New Delhi 3/31/2024
Example from India
Comparison and Application
Differing Focus: While transformational leadership focuses on motivating and inspiring
change, transactional leadership centers on maintaining the status quo and ensuring
consistent performance.
Situational Effectiveness: The effectiveness of each style can vary depending on the
organization's culture, the nature of the task, and the team's needs. In some cases, a
combination of both styles may be necessary.
Conclusion
In the contemporary business environment, both transformational and transactional
leadership styles are important. Leaders like Anand Mahindra exemplify how transformational
leadership can drive significant change and growth in an organization. At the same time,
transactional elements are essential for maintaining day-to-day operations and ensuring
stability and consistency in performance. Understanding and adapting these leadership
styles to suit
Prof. the organizational
ABHISHEK GANDHAR context and objectives is key to effective leadership.
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Cross-cultural leadership is increasingly important in today’s globalized business
environment, where leaders often interact with and manage teams from diverse cultural
backgrounds. This leadership approach acknowledges and adapts to cultural differences to
effectively lead and manage in a variety of settings.
Cultural Awareness: Understanding the beliefs, values, and practices of different cultures.
Adaptability: Adjusting leadership styles to align with the cultural context of the team or
organization.
Effective Communication: Developing communication strategies that consider language
barriers and cultural nuances.
Inclusivity: Creating an inclusive environment where diverse perspectives are valued and
utilized.
Global Mindset: Having an outlook that transcends cultural boundaries and focuses on global
synergies and collaborations.
Conclusion
Cross-cultural leadership requires a blend of cultural sensitivity, adaptability, and effective
communication. In India, with its rich diversity and global business presence, leaders are often at
the forefront
Prof.of navigating
ABHISHEK and integrating multiple cultural norms and practices. This ability to lead
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to a more
inclusive and dynamic organizational culture.
Leadership training is an essential component of organizational development and
talent management, focusing on cultivating the leadership skills and capabilities of
employees. These programs are designed to prepare individuals to effectively
handle leadership roles and challenges.
Conclusion
In organizations like Infosys and Tata Group, leadership training is a strategic investment.
These programs play a crucial role in shaping competent leaders who can drive innovation,
navigate challenges, and contribute to the organization's growth and success. As
businesses continue to evolve, especially in a dynamic market like India, the need for
effective leadership training becomes increasingly vital.
Prof. ABHISHEK GANDHAR
BVCOE, New Delhi 3/31/2024
Substitutes of leadership refer to factors within an organization that can diminish or replace
the need for traditional leadership roles. These substitutes can effectively guide and
influence employee behavior and performance without the direct intervention of a leader.
Leadership: Providing vision, inspiration, and direction to the team. Leadership in directing is
about influencing and guiding team members towards achieving goals.
Communication: Clear and effective communication between managers and employees is
vital in directing. It ensures everyone understands their roles, responsibilities, and
objectives.
Motivation: Encouraging and stimulating employees to perform their best. This involves
understanding individual drivers and applying different motivational techniques.
Supervision: Overseeing the work being done, providing feedback, and making necessary
adjustments to ensure the completion of tasks efficiently and effectively.
Steps Involved in Directing:
Issuing Instructions: Providing clear and concise instructions regarding what needs to be
done.
Guidance and Support: Offering guidance on how to perform tasks and providing support
where necessary.
Monitoring Progress:
Prof. ABHISHEK Keeping track of the progress and ensuring that tasks are on track.
GANDHAR
FeedbackBVCOE, and Correction:
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Offering constructive feedback and correcting course when
necessary.
Example from India: Directing in Tata Consultancy Services (TCS)