Directing/Leadership

Introduction
Directing is the fifth function of management. It is the heart of management process. Directing
refers to instructing, guiding and overseeing the performance of the workers to achieve the
predetermined goals. Directing helps to create an appropriate work environment that facilitates
efficient discharge of duties. It is Directing that initiates action. Other functions create
preconditions only. Directing is related to dealing with human elements and is concerned with
directing human efforts towards achieving organizational goals. The quality of direction
determines the Satisfactory or non-satisfactory performance of the organization.

Directing Process
1. Component Of Management: One of the crucial managerial tasks is directing. Management
starts things moving in the organization in the direction.

2. Ongoing activity: The process of direction is ongoing and lasts the duration of an organization.
A manager never stops directing, motivating, and watching over his employees. A manager cannot
complete tasks by giving orders and instructions alone. For the orders and directives to be carried
out, he must constantly inspire and lead.

3. Creative process: Direction is the process that turns plans into action and is the engine that
drives all performance. An organization’s people resources become dormant without direction,
which renders its physical assets ineffective. It gives the organization new vitality.

4. Linking process: The job begins when managers fulfill the guiding function; planning,
organization, and staffing are essentially pre-work activities. Plans are put into action by direction,
which also produces performance for monitoring and managing. In this sense, directing acts as a
bridge between planning and execution.

5. Pervasive function: In an organisation, direction starts from the top and continues all the way
down. Every management in the company gives guidance to his subordinates in the capacity of a
superior and receives direction from his superior in the capacity of the subordinate. Every level of
management and every division of the company performs the direction role.

6. Management of the human factor: Interpersonal components of management are direction. It

addresses the organisational human element. Human behaviour is extremely dynamic and is
influenced by a variety of unknown variables. As a result, guidance is a highly demanding and
difficult task.

Importance of Directing
Directing is regarded as the heart of the management process. Other functions like planning,
organising and staffing cannot function properly without proper direction. Directing is a high level
management function that is concerned with providing direction to the goals of the organisation,
from there it moves on to the lower levels in form of actions. Direction exists as a management
function as long as there is existence of the business. It is a continuous process.

Following are some of the points that show the importance of directing in the organisation:

1. Initiates Action: Directing is the starting point of action. It initiates action based on planning,
organising and staffing. Action is initiated when the managers provide direction to their
subordinates for carrying out the task. Therefore, the directing function provides a set of guidelines
to the employees on how to start working towards achieving the goals of the organisation.

2. Integrates efforts of employees: The activities and works of the employees across an
organisation are integrated towards achieving the objectives set by management. As all the
activities of the organisation are integrated by directing, it leads to efficiency and effectiveness in
the organisation.

3. Provide motivation: Directing acts as a source of motivation for the employees. It helps in
motivating the employees in contributing their efforts for the realization of organisational
objectives.

4. Accommodates changes: Directing helps in steering the organization towards success by

accommodating the various changes in the business environment that can be brought about by
changes in competitors, changing market conditions.

5. Maintaining balance: Directing brings about stability and balance in the organization which is
essential for long term survival of the business. Balance and stability can be achieved by following
a persuading leadership style coupled with effective communication, motivating employees and
strictly supervising the work of employees and suggesting improvements.

6. Efficient use of resources: Directing provides individual roles to each employee. Therefore,
the resources are utilised efficiently that leads to less wastage of resources, reduces duplication of
efforts by maintaining a clear set of work for each employee.

It leads to best possible utilisation of resources of the organisation, which translates into growth
of the organisation.
Principles of Directing
1. Maximum Individual Contribution
One of the main principles of directing is the contribution of individuals. Management should adopt
such directing policies that motivate the employees to contribute their maximum potential for the
attainment of organizational goals.

For example – A good motivation plan with suitable monetary and non-monetary rewards can
motivate an employee to contribute his minimum efforts for the organisation as he or she may
feel that their efforts will bring them suitable rewards.

2. Harmony of Objectives
Sometimes there is a conflict between the organizational objectives and individual objectives. For
example, the organization wants profits to increase and to retain its major share, whereas, the
employees may perceive that they should get a major share as a bonus as they have worked really
hard for it. Here, directing has an important role to play in establishing harmony and coordination
between the objectives of both the parties.

For example – An employee may expect attractive salary and monetary benefits to fulfill his
personal needs. The organisation may expect employees to improve productivity to achieve
expected profits. But good directing should provide harmony by convincing that employee
rewards and work efficiency are complementary to each other.

3. Unity of Command
This principle states that a subordinate should receive instructions from only one superior at a time.
If he receives instructions from more than one superiors at the same time, it will create confusion,
conflict, and disorder in the organization and also he will not be able to prioritize his work.

4. Appropriate Direction Technique

Among the principles of directing, this one states that appropriate direction techniques should be used
to supervise, lead, communicate and motivate the employees based on their needs, capabilities,
attitudes and other situational variables.

5. Managerial Communication
According to this principle, it should be seen that the instructions are clearly conveyed to the
employees and it should be ensured that they have understood the same meaning as was intended to
be communicated.
6. Use of Informal Organization
Within every formal organization, there exists an informal group or organization. The manager should
identify those groups and use them to communicate information. There should be a free flow of
information among the seniors and the subordinates as an effective exchange of information are really
important for the growth of an organization.

7. Leadership
Managers should possess a good leadership quality to influence the subordinates and make them work
according to their wish. It is one of the important principles of directing.

8. Follow Through
As per this principle, managers are required to monitor the extent to which the policies, procedures,
and instructions are followed by the subordinates. If there is any problem in implementation, then the
suitable modifications can be made.

Approaches/ models/ spectrums of Leadership

Transformational Leadership

Transformational leadership theory is a recent addition to the literature, but more research has been
conducted on this theory than all the contingency theories combined. The theory distinguishes
between transformational and transactional leaders. Transformational leaders lead employees by
aligning employee goals with the leader’s goals. Thus, employees working for transformational
leaders start focusing on the company’s well-being rather than on what is best for them as
individual employees. However, transactional leaders ensure that employees demonstrate the right
behaviors because the leader provides resources in exchange.

Leader-Member Exchange Theory

Leader-member exchange (LMX) theory proposes that the type of relationship leaders have with
their followers (members of the organization) is the key to understanding how leaders influence
employees. Leaders form different types of relationships with their employees. In high-quality
LMX relationships, the leader forms a trust-based relationship with the member. The leader and
member like each other, help each other when needed, and respect one another. In these
relationships, the leader and the member are both ready to go above and beyond their job
descriptions to promote the other’s ability to succeed. In contrast, in low-quality LMX
relationships, the leader and the member have lower levels of trust, liking, and respect toward each
other. These relationships do not have to involve actively disliking each other, but the leader and
member do not go beyond their formal job descriptions in their exchanges. In other words, the
member does his or her job, the leader provides rewards and punishments, and the relationship
does not involve high levels of loyalty or obligation toward each other.

Servant Leadership

Servant leadership approach defines the leader’s role as serving the needs of others. According to
this approach, the primary mission of the leader is to develop employees and help them reach their
goals. Servant leaders put their employees first, understand their personal needs and desires,
empower them, and help them develop in their careers. Unlike mainstream management
approaches, the overriding objective in servant leadership is not necessarily getting employees to
contribute to organizational goals. Instead, servant leaders feel an obligation to their employees,
customers, and the external community. Employee happiness is seen as an end in itself, and servant
leaders sometimes sacrifice their own well-being to help employees succeed.

Authentic Leadership

Leaders have to be a lot of things to a lot of people. They operate within different structures, work
with different types of people, and they have to be adaptable. At times, it may seem that a leader’s
smartest strategy would be to act as a social chameleon, changing his or her style whenever doing
so seems advantageous. But this would lose sight of the fact that effective leaders have to stay true
to themselves. The authentic leadership approach embraces this value: its key advice is “be
yourself.” Think about it: We all have different backgrounds, different life experiences, and
different role models. These trigger events over the course of our lifetime that shape our values,
preferences, and priorities. Instead of trying to fit into societal expectations about what a leader
should be like, act like, or look like, authentic leaders derive their strength from their own past
experiences. Thus, one key characteristic of authentic leaders is that they are self-aware. They are
introspective, understand where they are coming from, and have a thorough understanding of their
own values and priorities. Second, they are not afraid to act the way they are. In other words, they
have high levels of personal integrity. They say what they think. They behave in a way consistent
with their values—they practice what they preach. Instead of trying to imitate other great leaders,
they find their style in their own personality and life experiences.

Transactional leadership

Transactional leadership is a straightforward rewards-based model. It works off the concept that
an employee’s personal interests (as opposed to company interests) are the principal factors
motivating them to complete an assigned task or reach a performance level. If you’re a
transactional leader, you will set performance goals for staff, promise a reward, and provide that
reward upon their successful completion of the goal—or impose a consequence if staff don’t meet
their goals. This method of leadership can be very effective for getting work done, but it fails to
allow space for building relationships at work and inspiring staff to contribute new ideas.
Autocratic leadership

Autocratic leaders do not consult with or consider the opinions of others when making decisions.
You determine a course of action and relay your ideas with full expectation that staff will complete
your assigned actions without question. This method of leadership works well in situations
requiring quick decision making. The ability for doctors, nurses, and other high-level healthcare
professionals to make snap decisions in times of emergency is critical to saving lives. But the
autocratic leader should also be mindful that employees and patients may be left feeling invisible,
neglected, and potentially even abused if they are treated in ways that disregard their needs.

Bureaucratic leadership

Following the rules is the secret to bureaucratic leadership success. In this most formulaic of
leadership models, you have a defined job title, a set of responsibilities, and a pre-existing method
for responding to urgent needs. Requiring such strict adherence to established rules and protocols
can create a rigid and tense workplace for employees.

Democratic leadership

The opposite of autocratic leadership is democratic leadership, also known as “participative

leadership.” As a democratic leader, you will seek out the input and perspectives of your staff,
although the final decision belongs to you. Your use of collaboration and discussion can spark an
increase in creativity and innovation.

Coaching leadership

Much like a sports coach, a coaching leader works with individual staff members to develop their
strengths in an effort to improve the overall success of the organization. If you’re a coaching leader,
you are goal oriented rather than focused on tasks. You look at the big picture and don’t get lost
in the details.

Laissez-Faire Leadership
Laissez-faire leadership is a hands-off approach, where leaders grant significant autonomy to their
team members. They provide guidance when necessary but otherwise trust their team to manage
their work independently.
Key Features:
- Gives team members autonomy and freedom.
- Limited direct involvement in decision-making.
- Suitable for self-motivated and capable individuals.
When to Use:
- With highly skilled and experienced team members.
- In research and creative environments.
- When micromanagement would hinder productivity.

21st century Leadership

21st-century leadership is how managers and leaders adopt a modern mindset so that they’re
equipped to deal with the unique challenges of the 21st century. This theory draws upon
leadership behavior, skills, and qualities that can only be garnered and adopted through careful
study and training. These skills will allow leaders and managers to adopt a leadership style that is
necessary when facing the leadership challenges of today. In effect, 21st-century leadership is
different from anything that managers have faced before.

21st-century leadership is therefore rooted in the ability to:

 Relate: Leaders need to make a shift from production-based management to people-centric

management, relating with teams to better drive performance.
 Create: Leaders need to create new ways of working and introduce new processes that
redefine standards and generate strategies that work today.
 Instigate Change: Leaders need to be at the forefront of change, actively introducing and
using new processes and motivating teams to accept change.

A good example of a company that was eliminated from the marketplace due to its leadership’s
inability to effectively manage disruption and change was Kodak. Kodak was at one time the
world’s biggest film company. However, its leadership team failed to fully embrace the
revolutionary transition from film to digital as it was afraid that digital may cannibalize its film
business, which was its core business. Kodak was eventually put out of business and had to exit
the market in many of its product streams due to the dramatic drop in demand for film printing
during and after the digital revolution. Blockbuster, Pets.com and Nokia are other examples whose
demise were linked to their inability to understand the misalignment of their products with how
the markets were evolving.

21st century leadership skills

1. Leaders Serve. In the Information Age, everyone, everywhere is potentially in a relationship
with you (whether you choose it or not). A service mentality is not just an ethical plus—it’s
required.

2. Cultivate Courage. Courage and sacrifice remain the foundation of leadership, service. The
higher levels of service—and sacrifice—are the binding elements of effective leadership in all
times and places.

3. Think in Terms of Relationships. Gaining advantage in isolated transactions cannot be the

basis of a sustainable business model. Now every business is a relationship business.
4. Create Value. Value is not based on how long or hard you work, or on your commendable
motivations, or what you think you deserve. It’s based solely on your customers’ judgment. Today,
those you serve are empowered to seek out, compare, and measure value as never before.

5. Vision Remains the Foundation of Leadership. From the Bible to this very day, casting a
vision remains an indispensable element of leadership.

6. Make Management a Vital Part of Your Leadership. Management is part of leadership.

Effective leaders are effective managers. Effective managers are effective leaders.

7. Be Relentlessly Adaptable. The value of your service is determined by your capacity to evolve
in the rapidly unfolding circumstances of the early 21st century. Nonetheless, don’t flatter yourself
that your challenges of change are the greatest in history. Thus far, they’re not comparable to those
of the generations born at the dawn of the 20th century, for example.

8. Learn from Public Failures and Mistakes. You’re less likely to have your falls hidden behind
the walls of large institutions. Are you able to get off the mat, get back into the ring? Many of your
missteps or misfortunes will be captured for eternity in all their digital glory. Get over it.

9. Learn from Other Cultures. A world of customers and competitors and prospects and
resources is just a mouse click away. Communicate and collaborate where they are–not where you
are.

10. Recognize that Communication is Part of Everything You Do. Communication skills
cannot be delegated or outsourced. You are your message. From new media to traditional
meetings, effective 21st century leaders must master an ever-evolving range of communications
expectations.

11. Master the Arts and Science of Influence. Internal and external stakeholders have greater
leverage than ever before. The age of the boss is over. “The power to persuade” is now as necessary
a skillset for corporate CEOs as politicians.

12. Break Boundaries, Silos Wherever They Appear. Don’t let others’ limitations of
imagination or experience or customs or organizational culture limit your capacity to serve.

Challenges faced by 21st century leadership teams

Geopolitical volatility: Geopolitical factors can cause sudden but destructive damage to
organizations. Unstable geopolitical environments can chase away capital investments and drain
financial assets. Geopolitical risks have increasingly become a significant challenge for leadership
teams as most of the components remain outside their control.
Technological disruptions: The 21st century has been characterised by technological disruption,
with futurologists and trend experts saying, “disruption is a norm today”. Technological disruption
has impacted organizations in all industries and sectors, starting from healthcare to manufacturing
to computing. Linked to these technological disruptions is the emergence of entrepreneurship and
startups.

Economic and political uncertainty: When organizations filter down geopolitical risks at an
individual country level, they have to deal with economic and political uncertainty. In the 21st
century, managing economic and political uncertainty has become a critical leadership challenge.
As organizations increasingly look at expanding quicker and startups look at scaling up faster,
economic and political uncertainty needs to be accounted for in any form of growth strategy.

Shifting demographics: There have been major demographic changes occurring on a global scale,
which include changing family structures (increase of dual-income and single-parent families),
ageing population (requiring more health and welfare services) and increase in labour diversity.
These shift in demographic makeups mean that the demand for a company’s products and services
is subjected to continuous fluctuations. It also means that there is a constant pressure on a
company’s portfolio of products to remain relevant. For leadership teams, this is a challenge in
terms of creating forecasts for growth or for mapping out a sustainable growth strategy.

Managerial grid model for leadership

The managerial grid model (The Blake and Mouton Managerial Grid model)is a self-assessment
tool by which individuals and organizations can identify a manager's or leader's style. The grid
was originally developed by Robert R. Blake and Jane S. Mouton in the 1960s and has evolved in
subsequent decades. The Blake and Mouton Managerial Grid model -- also known simply as the
Blake Mouton Grid -- shows the degree to which a manager or leader focuses on production,
people or both. Depending on where the person falls on the grid, their behavioral or managerial
style can be determined.

The Blake Mouton Grid is created using a horizontal axis and a vertical axis that meet at a right
angle and are rated on a nine-point scale:
 Horizontal axis -- concern for production. A one, or low concern for production, is placed
to the far left of the horizontal axis, close to the right angle; a nine, or high concern
for production, is located on the far right of the horizontal line. A high concern for production
indicates that the leader prioritizes objectives, results and productivity when determining how
a task should be accomplished.

 Vertical axis -- concern for people. A one, or low concern, falls at the bottom of the vertical
line, close to the base near the right angle, while a nine, or high concern for people, is placed
at the top of this vertical axis. A high concern for people indicates that the leader prioritizes
the needs and interests of people when determining how a task should be accomplished.

Leadership styles according to the Blake Mouton Grid

The Blake Mouton Grid shows whether an organization's leader is more people centric or
production centric. On the basis of these focus areas, Blake and Mouton identified five leadership
or management styles:

Impoverished management

This is represented by a manager who rates a 1/1 and falls on the grid's lower left quadrant. They
have a low concern for both production and people. This is known as the impoverished
management style, according to Blake and Mouton. The impoverished management style is mostly
ineffective both at meeting people's needs and at generating positive results for the organization.
If anything, this style frequently leads to a disharmonious work environment and fails to resolve
conflicts among team members.

Produce-or-perish management

A manager rated 9/1 will be positioned in the grid's lower right quadrant. This person has a high
concern for production and results but low concern for people. They have a produce-or-perish
management style. Another term for a produce-or-perish manager is authoritarian or authority-
compliance manager. This person can drive impressive results using strict rules and punitive
measures. However, their unstinting focus on results over people adversely affects team morale
and motivation, which then leads to an eventual decline in the quality and timeliness of desired
results.

Middle-of-the-road management

A rating of 5/5 means that the leader falls in the center of the grid and is said to have a middle-of-
the-road management style that suggests that the manager is equally concerned about both
production and people. They try to balance both. However, the style can be ineffective because
they are unable to prioritize either aspect.

Country club management

A manager with a 1/9 rating will be positioned in the top left quadrant. This person has a low
concern for production but high concern for people and is said to have a country club management
style. Managers with a country club style of management try to make their people happy and
satisfied at work. They believe that happy people will work hard and generate good results for the
company. However, they trust people to manage themselves, so they may not provide adequate
direction and coaching. As a result, they frequently find that productivity suffers and results are
not what they expected or wanted.

Team management

A 9/9 rating would place the manager in the grid's upper right quadrant, indicating a team
management leadership style. This person is highly committed to both production and people.
These managers harness this commitment to creating a positive work environment where people
feel respected, seen and heard. This environment motivates and inspires people to give their best
effort to the organization. In doing so, productivity goes up, and the leader can generate desirable
results for the organization. By increasing employee satisfaction, they can also reduce absenteeism
and turnover.