DIRECTING

BUSINESS STUDIES
TERM 2
Sunil panda Commerce classes
Sunil Panda
 Meaning

Directing is telling people what to do

and seeing that they do not it to the SPCC
best of their ability

Sunil Panda
 Features / Characteristics of Directing
i) Initiates action
ii) Continuous activity
iii) Pervasive
iv) Flow from Top to Bottom
v) Performance oriented
vi) Human element

Sunil Panda
 Importance of Directing
i) Helps to initiate action

ii) To integrate employees efforts

iii) Means of motivation

iv) Helps to adopt changes

v) Brining stability and balance in the organisation

Sunil Panda
Elements of Directing

Sunil Panda
 Supervision
It Means Instructing, Guiding, Monitoring and Observing the
employees while They are Performing Jobs in the Organisation.
Super Means Over and Above
Vision Means Seeing, So Supervision Means Seeing the Activities
of employees from Over and Above

Sunil Panda
Motivation
It Can be Defined as stimulating, Inspiring and Inducing the
employees to Perform their best Ability.
It can not be forced

Sunil Panda
Features of Motivation
i) It is Goal Oriented
ii) Motivation is an Internal Feeling
iii) Motivation Can be Positive or Negative
iv) It is a Complex process
v) Continuous Process
vi) It changes according to the need of employees.

Sunil Panda
Maslow’s Need Hierarchy Theory of Motivation

Sunil Panda
 Financial Incentives/ Monetary Incentives
i) Pay and allowances : Salary is the basic incentive for every employee to
work efficiently for an organization. Salary includes basic pay, dearness
allowance, house rent allowance, and similar other allowances. Under
the salary system, employees are given increments in basic pay every
year and also an increase in their allowances from time-to-time.
Sometimes these increments are based on the performance of the
employee during the year.
ii) Profit sharing
iii) Bonus
iv) Co-partnership/ Stock option

Sunil Panda
v) Commission
vi) Productivity linked wage incentives
vii) Retirement benefits

viii) Perquisities : Several organizations offer perquisites and fringe

benefits such as accommodation, car allowance, medical facilities,
education facilities, recreational facilities, etc. in addition to the salary
and allowances to its employees. These incentives also motivate the
employees to work efficiently.

Sunil Panda
 Non-Financial/ Non monetary Incentives
a) Status : It refers to Rank, The level of authority, responsibility,
recognition, salary, perks, etc. determine the status of an employee in
the organization.
b) Career advancement opportunity
c) Employee recognition : Recognition means acknowledgment and
appreciation of work done by employees. Recognition in the
organization boosts their self-esteem and they feel motivated. For
example, declaring the best performer of the week or month,
displaying their names on the notice board and giving them rewards,
Awards, Certificates, Congratulating, Distribution of T shirts, etc.

Sunil Panda
d) Job security

e) Employee participation

f) Organisational climate

g) Job enrichment/job autonomy

Sunil Panda
Leadership
Leadership It is the process of influencing the Behaviour of
other people so that they work willingly for the attainment of
goals in a given situation. ... Leadership is a psychological
process of influencing followers or subordinates and providing
guidance to them

Sunil Panda
Styles of Leadership

Autocratic or authoritative leadership.

Participative or democratic leadership;
And Free rein or laissez-faire leadership.

Sunil Panda
 1. Autocratic or Authoritative leadership
Boss centered Leadership

Sunil Panda
 Advantage of Autocratic leadership
• Quick decision making

• Provides strong motivation and satisfaction to the leader who

dictates terms

• Less competent subordinates are needed at lower level

• May bring positive result when great speed is required

Sunil Panda
 Disadvantage of Autocratic leadership
• Lead to frustration and low moral among subordinates

• Initiative level of subordinates goes down

• Potential and creativity of subordinates are not utilized

• No development of subordinates takes place

Sunil Panda
2. Democratic or Participative leadership

Sunil Panda
 Advantage of Democratic leadership
• Improves the job satisfaction and moral of the employees

• Improves decision making ability of subordinates

• Develop positive attitude

• Reduce turnover

• Quality of decision improves

Sunil Panda
 Disadvantage of Democratic leadership

• Time consuming
• Result in delay

• It may not yield positive result when subordinates prefer

minimum interaction with the leader

• Leader may pass the work to subordinates and abdicate

responsibility
Sunil Panda
 3.Free rein or Laissez faire leadership
Subordinate centered Leadership

Sunil Panda
 Advantage of Free rein or Laissez faire leadership
• Positive effect on the job satisfaction and morale of
subordinates

• Maximum scope for development of subordinates

• Full utilization of potential and capacity of employee

Sunil Panda
 Disadvantage of Free rein or Laissez faire leadership
• Subordinates do not get the guidance and support of the
leader

• It ignores the contribution of leader

• Subordinates may work in different direction and result in

chaos

Sunil Panda
Communication
It can be defined as Transmission of exchange of ideas,
Messages, information between Two or more persons By the
Help of
Spoken Words
Written Words
Diagrams, Pictures and Graphs
And Gestures

Sunil Panda
Communication Process

Sunil Panda
 Communication are of two types
Formal communication : It Refers to the official communication
Between the people who are officially Related to each other
It pass through Impersonal Manner, Follow Scalar Chain generally in
written form
They talk about Fixing Responsibility, Task, Authority, work load, etc.
Informal Communication : It Refers to the communication Between
the people who are not officially Related to each other
It pass through Zig Zag Manner, Spread Rumours, psychological
Satisfaction, Fast Flow of Information, etc.
The Network of Informal Communication is Called Grape Vine
Sunil Panda
 Vertical communication

It May
Upward
And
Downward

Sunil Panda
 Horizontal communication
Horizontal Communication

Sunil Panda
 Diagonal communication
Diagonal Communication

Sunil Panda
Difference between formal and informal communication

Sunil Panda
Basis of Formal communication
Difference
Meaning It refers to communication
taking place withing the
official chain of command
Nature It more rigid in nature and
cannot be modified
Channel It follows formal or
established line of command
Informal communication
It refers to
communication between
individual and groups
which are not officially
recognized
It is flexible, dynamic in
nature
It is based on informal
relationship and no fixed
line of command is
followed
Basis of Formal communication Informal communication
Difference
Speed The speed of formal is slow The speed of informal is
fast
Record The record are maintain for No record are maintain
future reference

Need It serves the need of It serves the need of

organization individual working in
organization
Expression It is mostly expressed in It mostly tends to be oral
written form
Sunil Panda
 Thank You
Sunil panda commerce classes

Sunil Panda