SS INSTITUTE OF COMMERCE

SCO 82, 1ST FLOOR, SECTOR 46-C, CHANDIGARH

H.NO 1434, SECTOR-15, PANCHKULA,
MOBILE: 9872398046,email: [email protected]
DIRECTING

MEANING- directing refers to process of instructing, guiding, inspiring, and influencing

people in the organisation to achieve its objectives.
Directing is one of the key managerial functions performed by every manager.

CHARACTERISTICS OF DIRECTING-
1. DIRECTING INITIATE’S ACTION: a manager must perform this function along with
planning, organising, staffing, and controlling while discharging his duties in the
organisation. While other functions prepare a setting for action, directing initiates
action in the organisation.
2. 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 relationship exist.
3. DIRECTING IS A CONTINUOUS PROCESS- it takes place throughout the life of the
organisation irrespective of people occupying managerial positions.
4. DIRECTING FLOWS FROM TOP TO BOTTOM: directing is first initiated at top level and
flows to the bottom through organisational hierarchy.

IMPORTANCE OF DIRECTING.
1. Directing helps to initiate action- by guiding subordinates and by clarifying the doubts
of subordinates, it will help in improving their performance and achieving work targets.
2. Directing integrates employee’s efforts- in such a way that every individual effort
contributes to the organisational performance. For example, good leadership abilities
will be in position to convince the employees working under him.
3. 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
potentials.
4. Directing facilitates introduction of needed changes in the organisation- generally,
people tend to resist changes in the organisation. Effective directing through
motivation, communication and leadership helps to reduce such resistance and
developed required cooperation in introducing changes in the organisation.
 5. Effective directing helps to bring stability and balance to the organisation- it helps in
bringing cooperation and commitment among the people and helps to achieve balance
among various groups, activities, and the departments.
Elements of Directing
1. Supervision
2. Motivation
3. Leadership
4. Communication
SUPERVISION
Supervision as the process refers to guiding the efforts of employees and other
resources to accomplish the desired objectives. It means overseeing what is being done
by subordinates and giving instructions to ensure optimum utilisation of resources and
achievement of work targets.

MOTIVATION
Motivation is a process of stimulating people to action to accomplish desired goals.
Motivation depends upon satisfying needs of people.
MOTIVE:
A motive is an inner state that energises, activate, or moves and direct behaviour
towards goal.
MOTIVATOR:
Motivator is the technique used to motivate people in the organisation. Managers use
diverse motivators like pay, bonus, promotion, recognition, responsibility in the
organisation to influence people to contribute their best.

FEATURES OF MOTIVATION
1. MOTIVATION IS AN INTERNAL FEELING. The urge, drives, desires, aspirations, striving
or needs of human behaviour.
2. MOTIVATION PRODUCES GOAL DIRECTED BEHAVIOUR. For example, the promotion in
the job may be given to employees with the objective of improving his performance. If
the employee is interested in promotion, it helps to produce a behaviour to improve
performance.
3. MOTIVATION CAN EITHER BE POSITIVE OR NEGATIVE. Positive motivation provides
positive rewards like increase in pay, promotion, recognition Etc. Negative motivation
uses negative means like punishment, stopping increments, threatening etc. which also
may introduce a person to act in the desired way.
 4. MOTIVATION IS A COMPLEX PROCESS as individuals are heterogeneous in their
expectations, perception, and reactions. Any type of motivation may not have uniform
effect on all the members.

MOTIVATION PROCESS: Motivation process is based on human needs. A simple model to

explain motivation process is.
Unsatisfied need

Tension

Drive

Search behaviour

Satisfied need

an unsatisfied need of an individual creates tension which stimulates his or her drives.
These drives generate a search behaviour to satisfy such needs if such needs are satisfied,
the individual is relieved of tension.
IMPORTANCE OF MOTIVATION:
1. Motivation helps to improve performance level of employs as well as the organisation.
Since proper motivation satisfies the need of employees, they in turn devote all their
energies for optimum performance in their work. A satisfied employee can always turn
out expected performance. Good motivation in the organisation helps to achieve
higher level of performance as motivated employees contribute their maximum efforts
for organisational goals.
2. Motivation helps to change negative or indifferent attitude of employees to positive
attitude to achieve organisational goals.
3. 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. If manager identify motivational meet of employees and provide suitable
incentives, employees need not think of leaving the organisation.
4. Motivation helps to reduce absenteeism in the organisation. Some important reasons
for absenteeism or bad working conditions, in adequate rewards, and lack of
recognition, poor relations with supervisors and colleagues etc.
5. motivation reduces resistance to change by employees. Motivation helps managers to
introduce changes smoothly without much resistance from people.
MASLOW’S NEED HIERARCHY THEORY
Maslow’s need hierarchy theory is considered fundamental to understanding of
motivation. Abraham Maslow, a well-known psychologist in a classic paper published in
1943 outlined the agreement of an overall theory of motivation. His theory was based on
Human needs. He felt that within every human being, there exist a hierarchy of five needs.
These Are

1. Basic physiological needs: these needs are most basic in the hierarchy and corresponds
to primary needs.
2. Safety and security needs: these needs provide security, protection from physical and
emotional harm.
3. Affiliation and belongingness needs: these needs refer to affection, sense of
belongingness, acceptance, and friendship.
4. Esteem needs: these includes factors such as self-respect, autonomy status,
recognition, and attention.
5. Self-actualisation needs it refers to drive to become what one is capable of becoming.
These needs include growth, self-fulfilment, and achievement of goals.

Maslow’s theory is based on the following assumptions:

1. People’s behaviour is based on their needs. Satisfaction of such needs influences
their behaviour,
2. People’s needs are in hierarchical order, starting from basic needs to other higher-
level needs.
 A satisfied need can no longer motivate a person; only next higher-level need can
3.
motivate them.
4. A person moves to the next higher level of the hierarchy only when the lower need
is satisfied.
• Criticism- Questioned on his classification of needs.
Hierarchy of needs
But, despite such criticism, the theory is still relevant because needs, no matter how they are
classified, are important to understand the behaviour.
FINANCIAL AND NON-FINANCIAL INCENTIVES
1. …………….. means all measures which are used to motivate people to improve
performance.
2. Financial incentives can be provided on individual or group basis. (true/false) non-
financial needs focus on ……………. , ……………. And ……………. Need.

FINANCIAL INCENTIVE:
1. Pay and allowances: it includes basic pay, dearness allowance and other allowances.
Salary system consists of regular increments in pay every year and enhancement of
allowances from time to time.
2. Productivity linked wage incentives: wage incentive plans aim at linking payment of
wages to increase in productivity at individual or group level.
3. Bonus: bonus is an incentive offered over and above the wages/salary to the
employees.
4. Profit sharing: profit sharing is meant to provide a share to employees in the profits of
the organisation.
5. Co-partnership/stock option: Under these incentives’ 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.
6. Retirement Benefits: it includes 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.
7. Perquisites: it includes fringe benefits are offered such as car allowance, housing,
medical aid, and education to the children etc. over and above the salary.
NON-FINANCIAL INCENTIVES:
1. STATUS: status means ranking of positions in the organisation. The authority,
responsibility, rewards, recognition, perquisite, and prestige of job indicate the status
 given to a person holding a managerial position. Psychological social and esteem needs
of an individual or satisfied by status.
2. Organisational climate: organisational climate indicates the characteristics which
describe an organisation and distinguish one organisation from the other. These
characteristics influence the behaviour of individuals in the organisation. Some of these
characteristics are individual autonomy, reward orientation, consideration to him
ploys, risk-taking.
3. Career advancement opportunity: every individual wants to grow to the higher level
in the organisation. Manager should provide opportunity to employees to improve the
skills and be promoted for the higher level jobs. Appropriate skill development
program and sound promotion policy will help employees to achieve promotions.
4. Job enrichment: Job engagement is concerned with designing jobs that include greater
variety of work content, require high level of knowledge and skill, give workers more
autonomy and responsibility and provide the opportunity for personal growth and a
meaningful work experience. If jobs are enriched and made interesting, the job itself
becomes a source of motivation to the individual .
5. Employee recognition programmes: most people have a need for evaluation of their
work and due recognition. They feel that what they do should be recognised by others
concerned.
Recognition means acknowledgement with the show of appreciation. When such
appreciation is given to the work performed by employees, they feel motivated. Some
examples are: a) congratulating the employee for good performance
b) Displaying on the noticeboard or in the company newsletter about the achievement
of employee
c) Installing award or certificate for best performance
d) Distributing mementos, complimentary like T-shirts in recognition of employee
services
e) Regarding an employee for giving valuable suggestions.
6. Job security: employees want their job to be secured. They want certain stability about
future income and work so that they do not feel worried on these aspects and work
with greater zeal. However, there is one negative aspect of job security. When people
feel that they are not liking to lose their jobs, they may become complacent.
7. Employee participation: it means involving employees in decision making of the issues
related to them. In many companies, these programs are in practice in the form of joint
management committees, work committees, Canteen committees etc.
8. Employee empowerment: empowerment means giving more freedom and power to
subordinate. 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 is the process of influencing the behaviour of subordinates and indicates ability
of an individual to maintain good interpersonal relations with followers and motivate them
to contribute for achieving organisational objectives.

FEATURES OF LEADERSHIP
1. It indicates an ability of an individual to influence others.
2. Leadership tries to bring change in the behaviour of others.
3. Leadership indicates interpersonal relations between leaders and followers.
4. Leadership is a continuous process.
5. Leadership is exercised to achieve common goals of the organisation.

LEADERSHIP STYLES
1. Autocratic or authoritarian leader:

an autocratic leader gives orders and expects his subordinates to obey those orders.
He believes in only one way communication with the subordinates.
This leader is dogmatic i.e. does not change or wish to be contradicted.
He believes in giving reward or punishment both can be given depending upon the
result. This leadership style is effective in getting productivity in many situations like in
a factory where supervisor is responsible for production on time and has to ensure
labour productivity. Quick decision making is also facilitated.
But there are variations also, they may listen to everyone’s opinion, considered
subordinates ideas and concerns but the decision will be there own.
2. Democratic leader or participative leader

A democratic leader will develop action plans and make decisions in consultation with
his subordinates.
 He will encourage them to participate in decision making. He believed that people
perform best if they have set their own objectives.
They also need to respect the others opinion and support subordinates to perform
their duties and accomplish organisational objectives.
The exercise more control by using forces within the group. This
kind of leadership style is more common now a days.
3. Laissez faire or free-rein 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 way to achieve them.
The group members work on their own task resolving issues themselves.
The manager is there only to support them and help them the required information to
complete the task assigned.
The subordinate assumes responsibility for the work to be performed.

Which style leader is best?

Depending upon the situation a leader may choose to exercise a combination of these styles
when required. Even laissez faire leaders 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.
IMPORTANCE OF LEADERSHIP
1. Leader influences the behaviour of people and makes them to positively contribute their
energies for the benefit of the organisation.
2. A leader maintains personal relations and helps followers in fulfilling their needs by
providing needed confidence, support and encouragement.
3. Leader plays a key role in introducing required changes in the organisation. He persuades,
clarifies, and inspire people to accept changes wholeheartedly.
4. A leader handles conflicts effectively and does not allow adverse effects resulting from
the conflicts. A good leader always allows his followers to share their feelings and
disagreements.
5. Leader provides training to their subordinates.
 COMMUNICATION
MEANING-
Communication is derived from the Latin word ‘communis’ which means common.
Communication implies common understanding. It is a process of exchange of ideas, facts,
feelings etc.
Communication is a process of exchange of information between two or more persons to
reach common understanding.
ELEMENTS OF COMMUNICATION PROCESS-
THE ELEMENTS INVOLVED IN COMMUNICATION PROCESS ARE-

1) Sender- Sender means a person who conveys thoughts or ideas to the receiver.
2) Message- it is the content of ideas, feelings, suggestions, order etc. intended to be
communicated.
3) Encoding- process of converting the message into communication symbols such as
words, pictures, gestures etc.
4) Media- it is the path through which encoded message is transmitted to the receiver.
5) Decoding- it is the process of converting encoded symbols of the sender.
6) Receiver- the person who receives communication of the sender.
7) Feedback- it includes all those actions of receiver indicating that he has received and
understood the message of sender.
8) Noise- means some obstruction or hindrance to communication. Some examples are.
• Ambiguous symbols that lead to faulty decoding.
• A poor telephone connection.
• An inattentive receiver.
• Faulty decoding
• Gestures and postures that may distort the message.

IMPORTANCE OF COMMUNICATION

1. Acts as basis of coordination-

The job of a manager is to coordinate the human and physical elements of an
organisation into an efficient and active working that achieves common objectives.
2. It is only communication which makes smooth working of an enterprise possible.
Communication is basic to an organisation right from its birth through its continuing
life.
3. Acts as basis of decision making-communication provides needed information which
help managers to take any meaningful decision.
4. Increases managerial efficiency-
 Communication brings efficiency by timely conveying the goals, targets, and issues
instructions, allocate jobs and responsibilities and look after the performance of
subordinates. 5. Promotes cooperation and industrial peace-
It brings industrial peace and mutual understanding between management and
workers. It promotes cooperation.
6. Establishes effective leadership- effective communication helps to influence
subordinates.
While influencing people, leader should possess good communication skills.
7. Boost morale and provides motivation-
It is the basis of participative and democratic pattern of management. Communication
helps to boost the morale of employees and managers.

Barriers to communication-
1. Semantic barrier-
a) Badly expressed message: due to inadequate vocabulary, usage of wrong words,
omission of needed words etc.
b) Symbols with different meanings- a word may have several meanings. for example,
the word ‘value’ can be used.
• What is the value of this ring?
• I value our friendship.
• What is the value of learning computer skills?
Wrong perception leads to communication barriers.
c) Faulty translations: Sometimes communications originally drafted in one language
(e.g., English) need to be translated to the language understandable to workers
(e.g., Hindi). If the translator is not proficient with both the languages, mistakes may
creep in causing different meanings to the communication.
d) Unclarified assumptions: Some communications may have certain assumptions
which are subject to different interpretations.
e) Technical jargons- usually found specialist using technical jargons while explaining
to the persons who specialists in the concerned field are not.
f) Body language and gestures decoding: if there is no match between what is said
and what is expressed in body movements, communication may be wrongly
perceived.
2. Psychological barriers
a) Premature evaluation- before the sender completes his message. Such
premature evaluation may be due to pre-conceived notions.
b) Lack of attention- the pre- occupied mind of receiver and the resultant non –
listening of message acts as major psychological barrier.
 c) Loss by transmission and poor retention: when communication passes through
various levels, successive transmissions of the message results in loss of, or
transmission of inaccurate information. This is more in case of oral
communication. Poor retention is another problem. usually, people cannot
retain the information for long time if they are inattentive or not interested.
d) Distrust- if the parties do not believe each other, they cannot understand each
other’s message in its original sense.
3. Organisational Barriers- the facts related to organisation structure and authority
relationship.
a) Organisational policy- if the organisational policy, explicit or implicit, is not
supportive to free flow of communication, it may hamper effectiveness of
communication.
b) Rules and Regulations-rigid rules and cumbersome procedures may be a
hurdle to communication. for example, prescribed communication channel.
c) Status- a status conscious manager also may not allow his subordinates to
express their feelings freely.
d) Complexity in organisation structure- in an organisation where there are
number of managerial levels, communication gets delayed and distorted as
number of filtering points are more.
e) Organisational facilities- facilities like frequent meetings, suggestion box,
complaint box, social and cultural gathering, transparency in operations etc.,
will encourage free flow of communication. Lack of these facilities may create
communication problem.
4. PERSONAL BARRIERS:
a) FEAR OF CHALLENGE TO AUTHORITY-
If a superior perceives that a particular communication may adversely affect
his authority, he/ she may withhold such communication.
b) Lack of confidence of superior on subordinates- if superior do not have
confidence on the competency of their subordinates, they may not seek
advice.
c) Unwillingness to communicate- subordinate may not be prepared to
communicate with their superiors if they perceive that it may adversely
affect their interest.
d) Lack of proper incentives: -
If there is no motivation or incentive for communication, subordinates
may not take initiative to communicate.
 FORMAL COMMUNICATION:

Formal communication flows through official channels designed in the organization chart. The
communication may be oral or written but generally recorded and filed in the office. Formal
communication may be classified as vertical and horizontal.

Vertical communication flows vertically i.e. upwards or downwards through formal channels.
Upward communications refer to flow of communications refer to flow of communication
from subordinates to superior whereas downward communication indicates communication
from a superior to subordinate. The example of upward communications 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 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.

Some of the popular communication networks are presented and discussed in given figure

Chain wheel circular free

flow communication

Inverted V

1. Single chain:- this network exists between a superior and his subordinates.
Communication flows from every superior to his subordinates through single chain.
2. 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.
3. 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.
4. Free flow: in this network, each person can communicate with others freely. The
flow of communication is fast in this network.
5. 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:
Informal communication/ grapevine spreads rapidly and sometimes gets distorted.
It is very difficult to detect the source of such communication. It also leads to
generate rumours which are not authentic.
Sometimes grapevine channels may be helpful as they carry information rapidly
and, therefore may be useful to the manager at times. Informal channels are used
by the managers to transmit information so as to know the reactions of his/her
subordinates.
Grapevine Network
Grapevine communication may follow different types of network.

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

2. Gossip Network In gossip network, each person communicates with all on non-
selective basis.
3. Probability Network In probability network, the individual communicates
randomly with other individual.
4. 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.