Directing and leadership

Directing involves not only instructing people what to do but also

ensuring that they know what is expected of them.

Directing involves 3 sub functions

☐ Communicating
☐ Leading
☐ Motivating
Importance of Directions

1. Helps to achieve objectives

2. Facilitates clarification
3. Facilitates Innovation
4. Corporate Image
5. Team work
6. Optimum use of resources
7. Motivation
8. Higher efficiency
Principles of Directing

1. Principle of Directing Objectives

2. Principle of Leadership
3. Principle of Communication
4. Principle of Harmony of objectives
5. Principle of Unity of Direction
6. Principle of Direct Supervision
7. Principle of participation
8. Principle of Follow up
COMMUNICATION

Communication is an exchange of facts, ideas, opinions, or emotions

by two or more persons.

Need and Importance of Communication

1. Information
2. Management - Labour Relations
3. Team work
4. Motivation
5. Higher efficiency
6. Training and development
7. Clarification
8. Better performance
COMMUNICATION AS A TOOL FOR DIRECTION

1. Orders and Instructions

2. Supervision
3. Motivation
4. Leadership
COMMUNICATION AS A TOOL FOR LEADERSHIP

1. Communication and goal setting

2. Communication and motivation
3. Communication about resources
4. Communication and Innovation
5. Communication and Coaching
6. Communication and Directing
TWO WAY COMMUNICATION PROCESS
STEPS :

1. Develop an Idea
2. Encode ( coverts idea into series of word, symbols )
3. Transmit
4. Receive
5. Decode ( interprets the msg and translates into meaningful
information)
6. Accept
7. Use
8. Feedback
Barriers to Communication
Ÿ Physical or Environmental barriers
Ÿ Semantic or Language B.
Ÿ Personal or Socio- Psychological B.
Ÿ Cross - Culture B.
Ÿ Organisational B.
Physical and environmental barriers

1. Noise
2. Defects in communication system
3. Time and Distance
4. Wrong selection of Medium
5. Temperature and Humidity
Semantic or Language Barriers

1. Misinterpretation of Words
2. Difference in language
3. Use of Jargon
4. By - passed Instructions
Personal or Socio-Psychological barriers

1. Different Perceptions
2. Poor retention
3. The Halo and Horn effect ( Halo effect is a positive
impression that leads to treating someone more favorably. The horn
effect is the negative impression that leads us to treat someone less
favorably.)
4. Emotions
5. Filtering ( manipulating information)
6. Wrong assumptions
Cross Cultural Barriers

1. colours
2. Body language
3. Proxemics ( refers to space between people)
4. Time
5. Other cultural barriers
Organisational Barriers

1. Status barriers
2. Information overload
3. Lack of planning
4. Goal conflicts - ( b/w diff. Departments )
5. Offensive Style of Communication
Measures to overcome barriers to Communication

1. Direct and Simple Message

2. Feedback
3. Effective listening
4. Creation of proper Atmosphere
5. Strong Communication Network
6. Appropriate Language
7. Participative Approach
8. Effective Communication Channel
Ethical issues in using Social Media

Ÿ Employees engage in SM. for personal use

Ÿ Breach of confidentiality
Ÿ Conflict of intrest
Ÿ Misuse of company resources
LEADERSHIP
Leadership is the ability to secure desired actions from a group of
followers voluntarily, without the use of coercion

ROLE OF LEADER

1. Goal setting
2. Developing morale
3. Securing willing participation
4. Motivates subordinates
5. Organises Resources
6. Encourage initiative
7. Developing team spirits
8. Representation
LEADER
is a person who takes charge of or guides a performance or activity

Qualities of a good Leader

1. Good personality
2. Intelligence
3. Initiative
4. Innovative
5. Self confidence
6. Communication skills
7. Coach and guide
8. Proper judgement
STYLES OF LEADERSHIP
Leadership style is a pattern of behaviour designed to integrate
organisational and personal interest in pursuit of some objective.

1. Autocratic Style - takes all decision by himself

2. Bureaucratic Style - strictly follows- scalar chain principle , rules
3. Consultative Style - consults the subordinates before making
decisions
4. Participative style -allow them to take part in decision making
5. Laissez- faire Style -share the problem with group
6. Paternalistic style - aims at creating family atmosphere
7. Sociocratic Style - runs like a social club , interest of org. may
be secondary
8. Neurocratic style - highly task oriented, highly sensitive leader
9. Situational Style - leadership style varies depending on
situation
CONTINGENCY APPROACH TO LEADERSHIP STYLE

Ÿ Fielders C.Model
Ÿ Hersey and Blanchard's Model
Ÿ Path Goal model of leadership
Ÿ Vroom's Decision making Model
Ÿ Leadership Continuum by Tannenbaum and Schmidt

1. Fielder's Contingency Model -

- three dimensions that can determine which style of leadership is
most effective
Ÿ Leader - member relations
Ÿ Position power
Ÿ Task structure
Two major styles of leadership
Ÿ task oriented
Ÿ Relations oriented
2. Hersey and Blanchard's Model -
Uses combination of -- Task Behaviour
Relationship Behaviour
Ÿ Four major styles -
1) Telling
2) Selling ( Coaching )
3) Participating ( supporting )
4) Delegating

Development level is the task - specific combination of:

Ÿ Employees task competence
Ÿ Motivation to perform
3. Path Goal Model of leadership
Ÿ The leader should use organisational structure,
Ÿ support and reward employees &
Ÿ create conducive work environment so as to
Ÿ enable employees to attain organisational and personal goals
Four alternative leadership styles
1. Directive Leadership
2. Supportive leadership
3. Achievement oriented leadership
4. Participative leadership
Two major factors must be analysed /
Its effectiveness depends on :

1) Characteristics of subordinates
Ÿ Locus of control ( internal , external )
Ÿ Willingness to accept the influence of others
Ÿ Self perceived task ability

2) Work environment
4. Vroom's Decision making Model
Problem Attributes. ( type of problem is determined )
Ÿ Decision quality dimensions
Ÿ Employee - acceptance dimensions

Leadership options
1. Autocratic I
2. Autocratic II
3. Consultative I
4. Consultative II
5. Group II
5. Leadership Continuum by Tannenbaum and Schmidt
7 different leadership styles
1. Tells
2. Sells
3. Suggests
4. Consults
5. Joins ( collaborative decision making )
6. Delegates
7. Abdicates ( team members take decision, leader is responsible)
TRANSACTIONAL THEORY OF LEADERSHIP

Ÿ also know as managerial leadership

Ÿ uses reward and punishment to gain compliance from their
followers
Ÿ concerned with following existing rules
Ÿ establish the criteria for rewarding followers &
Ÿ maintaing status quo
Ÿ Based on give and take relationship

Leaders focus on contingent reward or on contingent penalization

Maslow'sc Hierarchy of needs focus on lower needs

Contingent penalization - within management by exception, there are
-
Ÿ active management by exception ( monitors subordinates )
Ÿ passive management by exception ( intervene only when
standards are not met )
TRANSFORMATIONAL LEADERSHIP

Transformational Leadership - can be defined based on the impact

that it has on followers
4 main Elements

1. Individualized consideration
2. Intellectual stimulation
3. Inspirational motivation
4. Idealized Influence

Focus on higher level needs of followers

TRANSACTIONAL. v/ s. TRANSFORMATIONAL

1) Reactive in nature Proactive nature

2) Works within organisational. Works to change the

Culture organisational culture

3) employees achieve objectives. achieve objectives with

with an aim to get rewards &. a sense of commitment
avoid punishment and dedication
4) motivate followers by motivate followers by
encouraging their own encouraging them to put
self - interest efforts in the interest of
the Group or team

5) Maintain status quo. Encourage innovation &

Creativity

6) Passive management. Active management by

by exception exception

7) adopt Laissez- faire style. Participative leadership.

style

8) short time horizon. Long time horizon (goals)

COORDINATION
Coordination is the orderly synchronising of efforts of the
subordinates to provide the proper amount, timing and quality of
execution so that their unified efforts lead to the stated objective,
namely the common purpose of the organisation

Need and Importance of coordination

1. Integration of group efforts

2. Facilitates mutual dependence
3. Helps to resolve conflicts
4. Development of team spirits
5. Motivates subordinates
6. Better relations
7. Optimum use of resources
8. Higher efficiency
Coordination - The essence of Management

1. Planning and coordination

2. Organising & C
3. Staffing & C
4. Communicating & C
5. Leading & C
6. Motivating & C
7. Controlling & C
8. Coordination & Decision making
MOTIVATION
Motivation is the act of stimulating someone or oneself to get a
desired course of action, to push the right button to get a desired
reaction

Need and Importance of Motivation

1. Higher efficiency - relation b/w return & cost

2. Reduces Absenteeism
3. Reduces Employee turnover
4. Improves Corporate image
5. Good relations
6. Improved morale - state of mind or willingness to work
7. Reduced wastage, and Breakages
8. Reduced accidents
Motivation Factors
Monetary factors. Non monetary factors
1. Salaries or wages 1. Status or Job title
2. Bonus 2. Appreciation and
3. Incentives Recognition
4. Special individual incentive 3. Delegation of
Authority
4. Working condition
5. Job Security
6. Job enrichment
7. Workers
Participation
8. Other factors
Maslow's Need Hierarchy Theory
Theory of human motivation

5 sets of Human needs

1. Physiological Needs
2. Safety and Security Needs
Ÿ Job safety
Ÿ Job security
3. Social Needs ( belong to a group or community)
4. Esteem Needs - respect & recognition from others
5. Self actualisation Needs - accomplish something special

Importance of Need Hierarchy Theory

1. Motivate employees
2. Frame proper wages policies
3. Job security and health & safety measures
4. Adopts participative systems
5. Promotion of employees
6. Provides challenging jobs
McGregor's Theory X and Theory Y
Assumptions :
Theory X. Theory Y

1.Not Creative Creative

2.Irresponsible Responsible

3.Lazy. Active & Alert

4.Prefer routine work Challenging Tasks

5.Followers. Independent
6.Orthodox in nature. Ready to accept new ideas

7.Work for personal interest. Work in the interest of org.n

8.Autocratic leadership style. Situational leadership style

Conclusion: The manager can Follow both theories depending on the

situation

Fredrick Herzberg's Two factor theory

Employees have 2 sets of needs :

1. Job Dissatisfying Factors

Ÿ certain factors must be satisfied otherwise people will be
dissatisfied with job , such factors are called as Hygiene factors
Ÿ Salaries, Bonus etc
Ÿ affects an individual's willingness
2. Job Motivation Factors
Ÿ such factors are called 'Motivators '
Ÿ challenging tasks , Appreciation etc
Ÿ affects an individual's efficiency or ability
CONTROLLING
Controlling is the process of monitoring actual performance, and
taking corrective measures, if required.

STEPS in Controlling

1. Setting Targets
2. Implementation of Targets
3. Measurement of Performance
4. Comparing performance with plans
5. Finding the cause of deviations
6. Listing out corrective measures
7. Selecting and Implementing corrective measures
8. Review or Follow up
Strategic Control
Strategic Control is the process, which takes into account the
changing assumptions of both internal and external factors affecting
the organisation, on which it is based,
Ÿ continuously evaluating the strategy as it is being implemented,
Ÿ and taking corrective measures to adjust strategy according to
the changing situation.
Operational Control
- is the process of ensuring that specific tasks are carried out
effectively and efficiently.
Ÿ aims at evaluating the performance of the organisation, and
that is why it is used so extensively in organisation
Main features of Operational Controls

Ÿ Self regulatory in nature

Ÿ Impersonal in nature
Ÿ No question of deviation
Ÿ Assume external environment is stable
Techniques for Strategic Control

1. Strategic Momentum Control

Ÿ stable environment
3 techniques
Ÿ Responsibilty control system - revenue, expense,profit,invest
Ÿ Critical Success factors -
Ÿ Generic strategies - compare strategies with others
2. Strategic Leap Control
Ÿ followed when environment is unstable
4 techniques
Ÿ Strategic issue management
Ÿ Strategic fied analysis - ( examining synergies )
Ÿ System's modelling - ( decision making technique )
Ÿ Scenarios - ( perception about likely environment )
Techniques for Operational Controls

1. Internal Analysis - deals with strength and weakness of firm

Ÿ Value chain analysis
Ÿ Quantitative analysis
Ÿ Qualitative analysis - based on views, judgement, opinion

2. Comparative analysis
Ÿ Historical analysis
Ÿ Industry norms
Ÿ Benchmarking - compared with best practices

3. Comprehensive Analysis - analysis total approach of firm

Ÿ Key factor rating
Ÿ Balanced scoreboard
Ÿ Network techniques - PERT , CPM
Ÿ Management by Objectives ( MBO )
Control Techniques

1. Budgetary Control - anticipated results

2. Management Audit
3. PERT & CPM
4. Managed by Objectives ( MBO )
5. Direct Supervision and Observation
6. Self Control ( freedom to set targets , etc )
7. Break even analysis
8. Management Information System ( MIS ) - Data Bank is
maintained
Dimensions or Directions of Internal Communication

1. Downward Communication
Essentials
Ÿ Brevity - short chain of communication
Ÿ Accuracy
Ÿ Chain of command
Ÿ Feedback
Ÿ Positive Attitude.
Ÿ Communication skills

2. Upward Communication
Methods of Upward Communication

Ÿ Open door policy

Ÿ Social gathering.
Ÿ Suggestion schemes.
Ÿ Complaints box
Ÿ Direct correspondence.
Ÿ Reports.
Ÿ Counselling
Ÿ Reviews and Opinion Survey

3. Horizontal / Lateral Communication

4. Diagonal / Crosswise Communication

STEPS to Design MIS

1. Identify and define information needs

2. Evaluate the cost of collecting & processing information.
3. Identify the source of information.
4. Data bank
5. Data processing.
6. Information Bank.
Enterprise Resource Planning ( ERP )
- a business management software - usually a suite of integrated
applications that a company can use to collect, manage, and interpret
data from several business activities

Purpose of ERP
- to facilitate the flow of information among all the functional areas
Goal of ERP
- to provide one central repository for all information that is shared
by all the various ERP facets in order to ensure smooth flow of data
across the organisation

Functional areas/ Scope of ERP

Ÿ Financial accounting.
Ÿ Management accounting
Ÿ Human Resources Management
Ÿ Manufacturing
Ÿ Marketing
Ÿ Order processing.
Ÿ Supply chain management.
Ÿ Project Management
ERP Vendors

Ÿ Large enterprise
Ÿ Mid market enterprise
Ÿ Small business