FUNDAMENTAL OF MANAGEMENT #UNIT-IV

DIRECTING

"Activating deals with the steps a manager takes to get sub-ordinates and others to carry out
plans" - Newman and Warren.

Directing concerns the total manner in which a manager influences the actions of subordinates. It is the
final action of a manager in getting others to act after all preparations have been completed.

Characteristics

• Elements of Management

• Continuing Function

• Pervasive Function

• Creative Function

• Linking function

• Management of Human Factor

Scope of Directing

• Initiates action

• Ensures coordination

• Improves efficiency

• Facilitates change

• Assists stability and growth

Elements of Directing

The three elements of directing are

• Motivation

• Leadership

• Communication

Motivation- According to George R. Terry, "Motivation is the desire within an individual that stimulates
him or her to action."

In the words of Robert Dubin, it is "the complex of forces starting and keeping a person at work in an
organization". Viteles defines motivation as "an unsatisfied need which creates a state of tension or

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disequilibrium, causing the individual to move in a goal directed pattern towards restoring a state of
equilibrium, by satisfying the need."

FEATURES OF MOTIVATION

The following are the features of motivation:

 It is an internal feeling and forces a person to action.

 It is a continuous activity.

 It varies from person to person and from time to time.

 It may be positive or negative.

IMPORTANCE OF MOTIVATION

 Motivated employees make optimum use of available resources for achieving objectives.

 Motivation is directly related to the level of efficiency of employees.

 Motivated employees make full use of their energy and other abilities to raise the existing level of
efficiency.

 Motivated employees make goal-directed efforts. They are more committed and cooperative for
achieving organizational objectives.

 Motivated employees are more loyal and sincere to an organization. These factors help reduce
absenteeism and labor turnover.

 Motivation is considered as a backbone of good industrial relations.

Theories of Motivation-

Theory of Hierarchy of Needs

It is recognized by psychologist that needs usually have a hierarchical arrangement among themselves.
Maslow has presented a need priority of five levels. These are:.

1. Basic physiological needs : It includes all needs that have to be satisfied for the well being of the
individual. It is inborn motives. These include hunger, thirst, sex, shelter, etc.

2. Safety and security: Safety needs include a desire for security, stability, freedom from fear and
anxiety protection, dependency and a need for structure, law and order. These include protection
and security from physical and emotional problems. It is acquired motive.

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3. Belonging and social needs : It include the need for belongingness, love, friendship, affection and
acceptance. In the work place, this need may be satisfied by an ability to interact with one’s
coworkers and perhaps to be able to work collaboratively with these colleagues. In Maslow’s
opinion these are social motives.

4. Esteem and status : This include all needs that give the individual a better self worth. It include the
desire for self-respect, self-esteem, recognition, attention, achievement, autonomy and the
esteem of others. It is called individual motive.

5. Self-actualisation and fulfillment : The highest need in Maslow’s hierarchy is that of self
actualization; the need for self-realization, continuous self-development, and the process of
becoming all that a person is capable of becoming. That is unconscious motive.

Maslow implies that, usually, the needs have a definite sequence of domination. Need number 2 does not
dominate until need number 1 is reasonably satisfied. Need number 3 does not dominate until need
number 1 and 2 have been reasonably achieved and so on. Broadly, it means that until the basic
physiological needs are met, the secondary, social and psychological needs do not come to operate.

Criticism of Maslow’s Theory -Maslow’s model has been criticized on various facts as follows:

1. Maslow’s proposition that one need is satisfied at one time not correct.

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2. There is no evidence that once a need has been fulfilled, its strength diminishes. It is difficult to
interpret and operationalise its concepts. e.g., what is the time span for the unfolding of hierarchy
etc. What does dominance of a given need mean?

3. The model is based more on wishes of what man should be rather than what he actually is. It is not
correct to put needs into neat water-right compartments.

4. It is also doubtful whether gratifacations of one automatically activates the next need in the hierarchy.
Also the need hierarchy may not follow the sequence fixed by Maslow.

Herzberg’s Hygiene Theory of Motivation - Fredericks Herzberg provided an interesting extension of

Maslow’s Need Hierarchy Theory and developed the Two Factory Theory. It was also known as
motivational-Hygiene Theory.

Herzberg and his associates conducted extensive interviews with professional persons in the
study and asked them what they liked or disliked about their work. The results indicated that when people
talked about feeling good or satisfied, they mentioned features intrinsic to the job and when people talked
about feeling dissatisfied with the job they talked, about factors extrinsic to the job. Herzberg called these
‘motivation’ and ‘maintenance’ factors respectively.

When motivational factors are not present they prevented satisfaction and motivation. When
these factors are present they increased satisfaction and motivation.

It appeared from the research, that the thing making people happy on the job and those making
them unhappy had two separate themes.

1. Motivation Factors (Satisfaction)

2. Hygienic Factors (Dissatisfaction)

1. Motivation Factors : Motivation Factors are real motivators that are associated with the positive
feelings of employees about the job. If managers wish to increase motivation and performance above the
average level, they must enrich the work and increase a person’s freedom on the job. Their high morale is
evidenced by lack of absenteeism, commitment to goals and late hours working. These factors have a
positive influence on morale satisfaction, efficiency and productivity. Some factors stood out as strong
determiners of job satisfaction:

(i) Achievement

(ii) Recognition

(iii) Advancement

(iv) Work itself

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(v) Responsibility

(vi) Possibility of growth

2. Hygiene Factors : Hygiene factors do not help the growth in performance but they prevent
deterioration of performance caused by work restriction. Herzberg believed that hygiene created
little positive motivation but its absence created negative motivation.

All the hygiene factors are environment related factors that must be viewed as preventive
measures that remove job dissatisfaction from the environment. The determinants of job dissatisfaction
were found to be:

(i) Company policy and administration

(ii) Technical Supervision

(iii) Interpersonal relations with peers, supervisor and subordinates

(iv) Status

(v) Working environment

(vi) Salary

(vii) Security

According to Herzberg, the results concluded that replies people gave when they felt bad. Certain
characteristics tend to be consistently related to job satisfaction and others to job dissatisfaction.

'X' AND ‘Y' THEORIES OF MOTIVATION

Douglas McGregor observed two diametrically opposing viewpoints of managers 'about their employees;
one is negative called "Theory of X" and another is positive called "Theory of Y".

Theory of X

Following are the assumptions of managers who believe in the "Theory of X" regarding their employees.

 Employees dislike work.

 Employees must be coerced, controlled or threatened to do the work.

 Employees avoid responsibilities and seek formal direction.

 Most employees consider security of job, most important of all other factors in the job and have
very little ambition.

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Theory of Y

Following are the assumptions of managers who believe in the "Theory of Y" regarding their employees.

 Employees love work as play or rest.

 Employees are self-directed and self-controlled and committed to the organizational objectives.

 Employees accept and seek responsibilities.

 Innovative spirit is not confined to managers alone, some employees also possess it.

MC-CLELLAND's NEED THEORY OF MOTIVATION

David C. McClelland and his associate Atkinson have contributed to an understanding of motivation by
identifying three types of basic motivating needs. These needs have been classified as:

1. Need for Power

2. Need for Affiliation

3. Need for Achievement : :

Need for Power- According to this theory the need for power, which might be defined as the desire to be
influential in a group and to control one's environment is an important motivation factor. Research
suggests that people with a strong need for power, are likely to be superior performers and occupy
supervisory positions. Such types of individuals generally look for positions of leadership, they act
effectively, are outspoken, have a stubborn character and exert authority.

Need for Affiliation- The need for affiliation means the desire for human companionship and acceptance.
Those with a high need for affiliation often behave the way they think other people want them to, in an
effort to maintain friendship. They prefer a job that entails a good deal of social interaction and offers
opportunities to make friends. The principal characteristics of such peoples' traits are as follows:

 Desire to like and be liked.

 Enjoy company and friendship.

 Prefer cooperative situation.

 Excel in group task.

 Star attraction in gathering.

 Leadership qualities.

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Need for Achievement

People with a high need for achievement, always feel ambitious to be successful; are ever prepared to
face challenging situations and set arduous goals .for themselves. They are prone to take calculated
risks; and possess a high sense of personal responsibility in getting jobs done. These people are
concerned with their progress, and feel inclined to put in longer hours of work" Failures never dishearten
them and they are always ready to put in their best efforts for excellent performance.

LEADERSHIP

DEFINITION- Leadership is the art of influencing and inspiring subordinates to perform their duties
willingly, competently and enthusiastically for achievement of groups objectives.

According to Wendell French, "Leadership is the process of influencing the behavior of others in
the direction of a goal or set of goals or, more broadly, toward a vision of the future”,

According to Keith Davis, “Leadership is the process of encouraging and helping others to work
enthusiastically towards objectives”.

FEATURES OF LEADERSHIP- The features of leadership are as follows:

 Leadership is the process of influencing behavior of individuals of an organization.

 Leadership uses non-coercive methods to direct and coordinate the activities of the
individuals of an organization.

 Leadership directs the individuals to attain the tasks assigned to them by following the
instructions of their leaders.

 A leader possesses qualities to influence others.

 Leadership gives the individuals, a vision for future.

 Leadership is a group activity. Leader influences his followers and followers also exercise
influence over his leader.

 Leadership is meant for a given situation, given group for a pre-determined period of lime.

 Leadership is continuous process of influencing behavior. It encourages liveliness in the group.

Importance of Leadership- The following points can judge the importance of leadership:

 A leader should act as a friend of the people whom he is leading.

 A leader must have the capacity to recognize the potentials of the individuals and transform them
into realities.

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 A leader should have the confidence of the individuals of the organization.

 A leader must be able to unite the people as a team and build up team spirit.

 A leader should be able to maintain discipline among his group and develop a sense of
responsibility.

Leadership Styles- The style of leadership is based on the kind of control the leader exercises on a
group and their behaviour.

1. Autocratic or Authoritative Style: It is also known as leader centered style. Under this style of
leadership there is complete centralisation of authority in the leader i.e., authority is centered in the leader
himself He has all the powers to take decisions. He designs the work-load of his employees and exercise
tight control over them. The subordinates are bound to follow his order and directions.

Advantages:

(i) Autocratic leadership style permits quick decision-making.

(ii) It provides strong motivation and satisfaction to the leaders who dictate terms.

(iii) This style may yield better results when great speed is required.

Disadvantages:

(i) It leads to frustration, low moral and conflict among subordinates,

(ii) Subordinates tend to shirk responsibility and initiative.

2. Democratic Style: Under this style, a leader decentralises and delegates high authority to his
subordinates. He makes a final decision only after consultation with the subordinates. Two way
communication channel is used. While delegating a lot of authorities to subordinates, he defines the limits
within which people can function. Democratic leaders have a high concern for both people and work.

Advantages:

(i) Exchange of ideas among subordinates and leader improves job satisfaction and morale of the
subordinates.

(ii) Human values get their due recognition which develops positive attitude and reduces resistance to
change.

(iii) Labour absenteeism and labour turnover are reduced.

(iv) The quality of decision is improved.

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Disadvantages:

(i) Democratic style of leadership is time consuming and may result in delays in decision-making.

(ii) It is less effective if participation from the subordinates is for name sake.

(iii) Consulting others while making decisions go against the capability of the leader to take decisions.

3. Free Rein or Laissez Fair style: Under this style, a manager gives complete freedom to his
subordinates. The entire decision-making authority is entrusted to them. There is least intervention by the
leader and so the group operates entirely on its own. There is free flow of communication. In this style
manager does not use power but maintains contact with them. Subordinates have to exercise self control.
This style helps subordinates to develop independent personality.

Advantages:

(i) Positive effect on job satisfaction and moral of subordinates.

(ii) It gives chance to take initiative to the subordinates.

(iii) Maximum possible scope for development of subordinates.

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Disadvantages:

(i) Under this style of leadership, there is no leadership at all.

(ii) Subordinates do not get the guidance and support of the leader.

(iii) Subordinates may move in different directions and may work at cross purpose which may create
problem for the organisation.

Functions of a Leader

1. To take the initiative: A leader initiates all the measures that are necessary for the purpose of
ensuring the health and progress of the organisation in a competitive economy. He should not expect
others to guide or direct him. He should lay down the aims and objectives, commence their
implementation and see that the goals are achieved according to the predetermined targets.

2. He identifies group goals: A leader must always help the group identify and attain their goals. Thus, a
leader is a goal setter.

4. He acts as an arbitrator: When groups experience internal difference, whether based on emotional or
intellectual clashes, a leader can often resolve the differences. He acts as an arbitrator to prevent serious
differences from cropping up within the group.

5. To assign reasons for his action: It is the delicate task of a leader to assign reasons to his every
command. He has to instruct things in such a way that they are intelligible to all concerned and their co-
operation is readily forthcoming.

6. To interpret: He interprets the objectives of the organisation and the means to be followed to achieve
them; he apprises his followers, convinces them, and creates confidence among them.

7. To guide and direct: It is the primary function of the leader to guide and direct the organisation. He
should issue the necessary instructions and see that they are properly communicated.

Theories of Leadership-

The Blake Mouton Managerial Grid is based on two behavioral dimensions:

Concern for People: this is the degree to which a leader considers team members' needs, interests and
areas of personal development when deciding how best to accomplish a task.

Concern for Results: this is the degree to which a leader emphasizes concrete objectives,
organizational efficiency and high productivity when deciding how best to accomplish a task.

Blake and Mouton defined five leadership styles based on these, as illustrated in the diagram below.

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The Indifferent or Impoverished (1,1)- These leaders have minimal concern for people and production.
Their priority is to fly under the radar while they content to seek solutions that won't bring any negative
focus to themselves or their department. Preserving their employment, position as well as their seniority is
what drives their elusive and evading behaviors. In short, the indifferent leaders are ineffective and are
sorely lacking in any of the traits that can be attributed to successful and effective leaders.

Impact on employees:

 Employees have a high degree of dissatisfaction

 No harmony within the group

 High turn over

Impact on organization:

 Inefficient operation

The Country Club or Accommodating (1, 9)

These leaders will go above and beyond to ensure that the needs and desires of his employees are met.
These leaders are making the assumption that their staff will yield maximum results as they are likely to
be self-motivated when they are lead in such environment. These leaders will have behaviours that will
yield and comply with the needs of their staff. The productivity of the group however, can suffer from the
lack of attention on tasks.

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Impact on employees:

 Employees are Happy

 Good team harmony

Impact on organization:

 Low productivity

The Status Quo or Middle-of-the-Road (5, 5)

These leaders balance out the needs of their staff with those of the organization, while not adequately
achieving either. These leaders will balance and compromise their decisions, often endorsing the most
popular one. They dedicate minimal efforts towards facilitating the achievements of their staff or the
production results in average or below average levels.

Impact on employees:

 Employees are not really discontent nor are they happy

 Good harmony within the group

Impact on organization:

 Average performance

The Dictatorial or Produce, Perish or Control (9, 1) 

These leaders focus all of their attention to production-related matters and very little towards the needs of
their employees. These leaders will direct and dominate while holding the belief that efficiency gains can
only be achieved through rigid disciplines especially those that don't require human interaction.
Employees are considered expendable resources. Productivity is usually short lived as high employee
attrition is unavoidable. The dictatorial style is inspired by the McGregor X theory.

Impact on employees:

 Employees experience a high level of dissatisfaction

 High level of conflict within the group

Impact on organization:

 High employee turnover

 Peak performance is short lived

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The Sound or Team (9, 9)

According to Dr. Robert R. Blake and Dr. Jane Srygley Mouton (and I agree), the sound leader is the
most effective leadership style. These leaders will contribute and are committed, can motivate and are
motivated while holding the belief that trust, respect, commitment and employee empowerment are
essential for fostering a team environment where team members are motivated, thus resulting in
maximum employee satisfaction as well as the most efficient productivity. This sound leadership style is
also inspired by the McGregor Y theory.

Impact on employees:

 Employees are forming a highly cohesive team

 Employees are satisfied

 Employees are motivated and work as a team

Impact on organization:

 Low employee turnover

 Attracts highly skills employees

 Efficient organization

Situational Theory (Contingency Theory) : Situational leadership approach was applied in 1920 in the
armed forces of Germany to get good generals under different situations. The main attention in
situation theory of leadership (also known as contingency theory) is given to the situation in which
leadership is exercised. The various factors affecting leadership are classified into two major
categories; situational factors and leader’s behaviours.

(i) Situational Factors : Leadership effectiveness is affected by following situational factors:

(a) Leader follower relations

(b) Group situation

(c) Leader’s situation

(d) Organizational factors

(ii) Leader Behavior : It is affected by the following behavioural factors;

(a) Leader’s position

(b) Leader’s characteristics

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