MODERN BUSINESS

PRACTICES

Prepared by DEEPALI MITTAL (SDJIC)

 UNIT 4 : DIRECTING,
LEADERSHIP, COORDINATION
 WHAT IS DIRECTING
• Directing refers to the process of guiding and influencing employees
and organizational resources towards achieving specific goals and
objectives. It is one of the key functions of management, along with
planning, organizing, and controlling. The directing function involves
supervising, motivating, leading, and communicating with employees
to ensure that they work effectively and efficiently towards the
organization's goals.
Leadership
According to Koontz & O'Donnell........
"Leadership is influencing people to
follow in the achievement of common
objectives."
 Meaning
• Leader is a person, to whom subordinates/followers wants to follow.
• it happens when person possess the quality i.e. Leadership quality.
• Leadership is an inseparable part of directing. It is a tool which makes direction
successful. Only a leader can guide his subordinates. Without effective leadership,
direction would be useless.
• "Leadership is the ability to shape the attitude & behaviour of others or
subordinates, whether in formal or informal situation."
 Characteristics
• Followers or subordinates:There cannot be a leader without a follower
or a subordinate. There must be followers or subordinates to obey the
orders & instructions of leader.
• Acceptance of leadership: The leader should accept himself as a
superior or a leader to his subordinates by giving orders & instructions.
Only then followers will follow him.
• Common objectives: A leader directs all efforts of his subordinates
towards achievement of a common objective. He clarifies the
objectives, remove obstacles in their path, so that objectives are easily
achieved.
• Working relationship: There is a Working relationship between leader
& subordinate. The leader works with them, shows them how to work
& gets co-operation from them. He is an active participant.
• Harmony of interests: These is a unity of interest between leader &
subordinate to achieve common objectives. If objectives are different,
leadership cannot be effective.
• Continuous process: It is a Continuous process going on in each
company. The leader’s work goes on as long as the company exists. He
has to constantly give instructions, orders, guidance, etc.
• Exemplary conduct (behaviour) :The leader must set an example
before the followers by his conduct. He should have such a personality
that subordinates are influenced by him & desire to be like him.
• Situational: Leadership is different in different situations or
environment. It depends on factors like level of education, training, etc.
 Styles / Types of Leadership /
Leadership Techniques
• The types of leadership style adopted by a particular manager depends
upon his philosophy, his personality, experience, his values, business
situation. The styles of leadership are:

• Autocratic or Directional leadership

• Free reign or Laissez faire leadership
• Democratic / Consultative / Participative leadership
Autocratic Leadership
• This style is also known as directional type of leadership style.
• In this style, there is concentration of authority in the hands of one person or in the
hands of a small group.
• They make the decisions & impose on the subordinates for implementation.
• They believe that only the top level managers can make mature decisions & lack of
faith, trust in subordinates and responsible for the adoption of this style.
• Sometimes the leader uses authority, threats, pressure etc, for getting the result.
He does not welcome the voice & feelings of the subordinate.
• Credit of success is claimed by leader & for failure of targets others are blamed.
 This method is further classified in 3 types:

• A leader using power, pressures, threats & negative motivational tools for goal
achievement is known as COERCIVE AUTOCRAT.

• A leader makes all the decisions himself but for getting the co-operation of the
subordinates he uses tools like appreciation, praise, request & other positive
motivational tools he is known as BENEVOLENT AUTOCRAT.

• There are some leaders who pretend to welcome the voice of subordinates in the
decisions making process but ignore their suggestions & behave in their own way,
this style is known as MANIPULATIVE AUTOCRACY.
Advantages
• Quick decisions can be taken due to autocracy.
• Secrets can be preserved.
• Blessing during emergency when quick decisions are to be taken.
• Chances of success are bright when subordinates do not want to take decisions.
• It can be effectively used when there is a clear chain of command and clear-cut
division of authority.
Disadvantages

• Possibility of misuse of power due to absolute power.

• No investment of subordinates in decision making process so benefits of
specialisation can’t be availed.
• Non co-operation of subordinates in times of emergency.
• Research studies reveal that democratic form is more desirable than autocracy.
• No punishment to autocrat for his mistake.
• Doesn’t develop leadership skill in subordinates.
• Company will be deserted by the ambitious & intellectual employees.
• Uncertainty about autocrat e.g.: death, etc.
Free Reign or Laissez faire Leadership
• Laissez faire is quite opposite to autocracy
• “Minimum control on the subordinates & delegation of authority for
decision making to them is known as free reign or laissez faire
leadership.”
• There is decentralization of authority, Top level management puts faith & trust in
the decision-making abilities of the subordinates & delegates authority to them
for the same.
• Managers do not interfere in the task of the subordinates, unless he is requested
to do so.
• The managers no doubt supervises the subordinates but do not interfere in their
matters.
• When any problem arises, he helps the subordinates in 1.analysing the situation, 2.
discusses problem with them & 3. finds out alternative solutions too but do not
make decisions.
• He prepares the grounds for decision making but does not make the decision.
• This style is most convenient for a business enterprise which is having factories or
branches at different places & decisions are to be made in the context of local
conditions.
• Advantages

• Provides opportunity for self-development of employees.

• Subordinates get training & experience of decision making.
• Most appropriate decisions can be taken.
• Decentralisation of authority reduces the burden of managers.
• Self esteem needs of employees are satisfied
• Employees become conscious of their duties.
• Managers get the co-operation of subordinates.
• It creates environment of freedom.
• It is suitable method where people are educated.
• Disadvantages

• Fear of losing control over subordinates.

• Losing control over subordinates may lead to poor performance or
failure.
• Subordinates become self-centred by satisfying their personal needs.
• Team spirit is likely to break down due to ego conflicts.
• Quick decisions cannot be made in case of emergency.
• Sometimes this method leads to disorder & chaos in organisation.
• Insecurity & frustration develops due to lack of decision making
authority.
Democratic Leadership
• Democratic leadership is a compromised style between autocracy & laissez faire, it
is also known as consultative leadership.
• “A leadership style inviting subordinates in the decision-making process is known as
democratic leadership.”
• Before making the decision the leader,
1. invites suggestions from the subordinates.
2. Welcomes recommendations & constructive criticisms.
3. Discusses the problem with them.
4. Then makes the decision.
• Here knowledge & experience of the employees are used for increasing the
efficiency.
• This style also can assume different forms.
• To invite the suggestions for effective goal achievement & to make the decisions
keeping in mind these suggestions is one form of democratic leadership.
• Making the decision by the leader after consulting & discussing with subordinates is
another form of democracy.
• To make the decision as per majority opinion is the 3rd type of democratic style.
1.Acceptance of human values.
2.To respect the opinion of others.
3.To consider the feelings of the subordinates.
are the basic principles of this type of leadership style.
• Advantages
• Participations in decision making make subordinates committed to the
decision & motivates them which increases productivity.
• Improves quality of decisions by using the knowledge & experience of the
employees.
• Provides an opportunity to subordinates for developing leadership qualities.
• Higher standards of discipline & morale are developed.
• Confidence & an environment of trust can be created.
• Centralization of power can be avoided.
• Disadvantages
• Delay in decision making due to wastage of time in group discussions.
• Confusion by contradictory suggestions.
• The managers make delay in difficult decisions in the name of democracy.
• Managers try to escape from the responsibility in the name of group decision.
• Most managers feel uneasy with this approach due to fear of losing control over
subordinates.
 Rensis Likert’s 4 system
Leadership

• System 1: Autocratic leadership

• System 2: Benevolent autocratic
• System 3: Consultative leadership
• System 4: Participative leadership
• Autocratic leadership
• In the style, there is concentration of authority in the hands of one
person or in the hands of a small group. They make the decisions &
impose on the subordinates for implementation.
• They believe that only the top-level managers can make mature
decisions & lack of faith, trust in subordinates are responsible for the
adoption of this style.
• Subordinates work due to fear of punishment only, so naturally they
are not loyal to organisation.
• The level of quality goes down & production cost rises.
• This method is useful in military only.
• Benevolent autocratic
• Here too leader is autocratic. Here, he puts some trust in his
subordinates, but resorts to punishments & threat at times. The
subordinates do not feel free to discuss all problems with leader.
Sometimes he asks for ideas & opinions of subordinates.
• Benevolent autocratic also develop unfavourable attitude, non-
cooperation & conflict from subordinates.
• Consultative leadership
• Here leader trusts his employees but not fully. He wants to keep control
over the decisions though he may invite suggestions from them. The
subordinates feel free to discuss all problems with leader which
develops loyalty towards organisation.
• Less conflicts arise & an environment of co-operation is developed.
• Participative leadership
• This is truly democratic form of leadership. Before making the decision
the leader invites suggestions from the subordinates, welcomes
recommendations & constructive criticisms, discusses the problem
with them & then makes the decision. The subordinates feel free to
discuss all problems with leader.
• High degree of loyalty & co-operation are developed.
• Participative leadership is most superior style or we can say preferable
style.
CO-ORDINATION
According to Moony and Reiley,
“Co-ordination is the orderly arrangement of group
efforts to provide unity of action in pursuit of
common purpose.

According to Dr. Terry,

“Co-ordination is the orderly synchronization of
efforts to provide the proper amount, timing and
direction of executives resulting in harmonious and
unified action to achieve stated objectives.”
 CHARACTERISTICS

1. Important Function (to completing the other function successfully in

POSDCoRB)
2. Harmony of Functions (harmonizing the efforts of group)
3. Necessary at all levels ( top middle bottom at all level)
4. Mainly Dependent on Communication (communication provides
information)
5. Common Objective (all will go/work for one goal)
6. Proper Arrangement of Group Efforts (organize everyone’s efforts)
 OBJECTIVES OF CO-ORDINATION

1. Unity of Objectives (among all employees working for company)

2. To harmonize the Efforts (synchronization)
3. Maintenance of Order and Time Schedule
4. To maintain Unity of Command
Sr.
Point of difference Co-ordination Co-operation
No.

1 Common- Goal Needed Not Needed

2 Aspect/Percept Positive Negative

permanent & continuous temporary & limited to

3 Permanency
process particular work only

Narrower and it is not

Wider and includes co- necessary that co-
4 Scope/concept
operation also operation includes co-
ordination also.
 Importance /Advantages of Co-ordination

• Unity of Objective and Efforts

• Total Accomplishment
• Balancing of efforts
• Assists other Functions
• Optimum Use of Resources
• Effective Organization
• Retention of good Personnel
• Human Relations
 TYPES OF CO-ORDINATION

• On the basis of level of activity

• Vertical
• Horizontal
• On the basis of where it is to be done
• Internal
• External
Thank You