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BANKING
BANKING
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in
the organisation to achieve its objectives.
Elements of Directing
1. Supervision means instructing, observing, monitoring and guiding the efforts of the subordinates
for the achievement of work targets in the desired manner.
2. Motivation means stimulating people to action to accomplish desired goals.
3. Leadership is the art or process of influencing people so that they strive willingly and
enthusiastically towards the achievement of group goals.
4. Communication is the process of exchange of ideas and information among people to create
common understanding.
Features/Characteristics of Directing
1. Directing initiates action. Directing initiates action by people in the organisation towards
attainment of desired obiective:
2. It takes place at every level of management. Every manager from top executive to the supervisor
performs the directing functior
3. It flows from top to bottom through the organisation hierarchy. Every manager can direct his
immediate subordinates an take instructions from his immediate boss.
4. It is a continuous process as it takes place throughout the life of the organisation irrespective of
the people occupyir managerial positions.
Importance of Directing
1. Directing helps to initiate action by people in the organization towards attainment of desired
objectives.
2. Directing integrates employees' efforts in the organization in such a way that every individual
effort contributes to t organisational performance. Thus, it ensures that the individuals work for
organisational goals.
3. Directing guides employees to fully realise their potential and capabilities by motivating and
providing effective leadersh
4. Directing facilitates introduction of needed changes in the organisation by reducing resistance to
change and developi cooperation.
5. Directing brings stability and balance in the organisation since it fosters cooperation and
commitment among the peo and helps to achieve balance among various groups, activities and the
departments.
Features of Motivation
(i) It is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being,
which are internal, influence human behaviour. (il) It produces goal directed behaviour. For example,
if the employee is interested in promotion, it helps to produce a behaviour to improve performance.
(ill) It can 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 induce a person to act in the desired way. (iv) It is a
complex process because any type of motivation may not have a uniform effect on all the members.
Financial incentives to motivate employees
Financial incentives are measurable in terms of money. To satisfy basic physiological needs of lower
level employees, financial incentives are important.
1. Productivity linked wage incentive involves linking payment of wages of employees to the increase
in their productivity at individual or group level.
2. Bonus involves offering an amount of funds over and above the wages/ salary to the employees.
3. Profit Sharing involves providing a share in the profits of the organization to employees. (This
motivates them to improve their performance and contributes to increase in profits of the
organisation.)
4. Co-partnership/Stock option is an incentive under which the employees are offered company
shares at a set price which is lower than market price. (The allotment of shares at lower price creates
a feeling of ownership to the employees and makes them to contribute for the growth of the
organisation.)
5. Retirement Benefits include benefits such as provident fund, pension and gratuity that provide
financial security to employees after their retirement. (This acts as an incentive when they are in
service in the organisation.)