t e r 6

Chap
T I NG &
DIR E C
L L I NG
O NT R O
C
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 CT IO N
FUN
C TI NG
D IR E
6.

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 At the end of this class you will be able to :
1. Describe the meaning, need, theory and
style of leadership as a management
function.
2. Describe the meaning, and theories of
motivation in leadership.
3. Describe the meaning, and importance of
communication in management.
4. Express the meaning , need, process, and
effect of controlling as a management
function.
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 After studying this chapter you should be able to:
1. Describe the meaning and need for leadership.
2. Differenced management Vs leadership
3. Describe the different theories of leadership : trait,
behavioral, situational and theory of X and y.
4. Explain the leadership styles: autocratic,
democratic , laissez-fair , and situational
leadership styles
5. Define motivation and differentiate the different
theories of motivation:
motivation Carrot and Stick, Maslow
need hierarchy theory, Hertzberg's two factor
theory.
6. Define communication and the role of
communication in leadership.
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 Introduction
We can remember that the major functions of management are:
 Planning
 Organizing
 Staffing
 Directing / Leading and
 Controlling
Directing function has three elements;
 Leadership
 Motivation
 Communication
Definition
 Directing is the process of integrating the people with the organizations so as to obtain
their willing cooperation for the achievement of its goals.
 It is a vital managerial function which influences people so that they contribute to the
attainment of organizational objectives.
 Directing refers to the issuance of directives and the guidance and overseeing
subordinates that they are doing their job to the best of their ability.
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 Importance of directing
 Directing is a function that enables managers to convert their decision in to
effective action.
 There is a dominant feeling that directing is more of an art than it is a
science since a considerable amount of skill is required to understand
and work with people.
The importance of directing are:
 It initiates actions by giving directives and guidance to employees
 It integrates employees effort by coordinating actions of the
members and leading towards the objectives.
 It attempts to get the maximum out of individuals by providing
ways to fully utilize the potentials and capabilities of employees.
 It facilitates changes by adopting environmental and internal
changes into the organization.
 It provides stability by balancing the different parts of the
organization so that it exists for a long period and its parts work in a
harmonious ways.
07/25/21 Dr. Bogale A. 18–6
 6.1. Meaning and need for leadership
Definition of Leadership
 Leadership: is defined as an interpersonal
influence directed toward the achievement of
a goal or goals.
 Three important parts of this definition are the
terms
 Interpersonal: means between persons. Thus, a
leader has more than one person (group) to lead.
 Influence: is the power to affect others.
 Goal: is the end one strives to attain.
Need for leadership
 Leading is needed in an organization to
influence, direct and guide activities of
individuals and groups so as to help the
organization achieve its objectives.
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 Management Vs Leadership { Manager Vs Leader}
Management {manager} Leadership {leader}
 It involves all functions  It involved only one
 In addition to leading
managers deals other function
administrative activities  leadership deals with
like plan, organize, staff the interpersonal
and control aspects of a manager's
job,
 A manager can be a leader
by default; but may not be
 whereas planning,
effective leader (i.e. may not organizing, and
have enough ability to controlling deal with
influence others) the administrative
aspects

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 6.1.1. Leadership Theories
1. Trait Theory
 Focused on identifying the personal
characteristics
 It is based on the assumption that leaders are
born not made.
 That is good leaders are born naturally, not made
 According to this theory leaders must have the
following traits
 Intelligence
 Self confidence
 Integrity and honesty
 Physical traits:
traits such as height, appearances etc.
 Social traits: such as cooperativeness skill etc.
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 Leadership theories (Cont...)

2. The behavioural theory

 Roots in the Ohio State University and
University of Michigan
 This theory tried to identify the behaviours
shown by leaders in the work environment.
 They were generally able to identify two sets of
leaders.
I. Work Centred (Concerned For Task) Leaders
and
II. Employee Centred (People Centred) Leaders

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 Leadership theories (Cont...)
II. Work centred leaders ii. Employee centred leaders
 Task Oriented Leaders Are democratic, considerate,
consultative and participative
 Such a leaders are leaders.
autocratic, production  They tend to share decisions with
subordinates.
oriented.  Basic character
 Basic character  Act warmly to followers

 Plan and define work  Develops social rapport with

followers
 Assign task responsibilities
 Respects and sense the feeling of
 Set clear work standards
followers
 Urges for tasks completion  Shows trust and confidence in
followers.
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 Leadership theories (Cont...)
3. Situational / Contingency Theory
 Situational leadership theory attempts to determine
the appropriate leadership style for various
situations.
 Fiddler’s contingency model suggests that managers
should choose task or employee focus depending on the
interaction of three situation variables:
 Leader- member relation: the degree of confidence,
trust, and respect employees had for their leader.
 Task structure: the degree to which job assignments
were formalized and structured and
 Leader position power: the degree of influence a
leader had over activities such as hiring, firing,
discipline, promotions, etc.
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 6.1.2. Leadership Styles
Based on the degree to which managers share
decision making authority with subordinates
leadership styles can be classified in to four:

1.Autocratic style
2.Democratic style
3.Laissez-faire style and
4.Situational style

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 Leadership Styles ( Cont...)
1. Autocratic leadership style
Characteristics
1. Manager does not share decision-making authority
2. Managers tend to be heavily work – centred,
centred
3. Placing most of their emphasis on task
accomplishment little on the human elements.   
4. Managers’ emphasis on close control
5. Managers’ willingness to delegate a very little
decision-making authority.
6. No flow of information from subordinates
7. Sensitivity of managers about their authority.
8. Leader’s assumption that payment is a just reward
for working

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 Leadership Styles ( Cont...)

2. Democratic leadership
Characteristics
1. Leaders shares decision –making authority with
subordinates.
2. Leaders who have high concern for both people and
work practice it.
3. Leaders are not much sensitive about their
authority
4. Participate employees in decision making
5. Leaders appreciate suggestions from subordinates
6. Leaders exercise broad supervision
7. Leaders motivate subordinates with rewards

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 Leadership Styles ( Cont...)
3. Laissez-faire (free-rein style)
Characteristics
1. It is leadership approach in which a manager develops a
frame work for subordinates in which they can act
and leave decision making authority to the
subordinates and remain for consultation.
2. It is employed by managers who are basically
uninvolved in the operations of the unit.
3. This type of leadership is mostly applied in
organizations with highly skilled and well-trained
professional.

4. Situational leadership style

 It is leadership approach in which managers utilize the
combination of the above style depending on the
situation in external environment.
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 6.2. MOTIVATION
MEANING
1. Motivation- is an inner desire to satisfy an
unsatisfied need.
2. Is the result of the interaction of a person’s
internal needs and external influences that
determine behaviour.
Motivation can be internal or external type.
Intrinsic Motivation:
 Behavior performed for its own sake.
 Motivation comes from performing the work.
Extrinsic Motivation:
 Behavior performed to acquire rewards.
 Motivation source is the consequence of an action.

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 THEORIES OF MOTIVATION
1. Jeremy Bentham’s Carrot and Stick approach:
“ Give carrot for donkey to make go quick and bit with
stick if it refuses to move fast having eaten the
carrot”.
 In an organization, it means that pay adequate
money to your employees to motivate them or to
make them work; if they fail to perform fairly,
punish them to work in front of the worker.

2. Maslow’s Hierarchy of Needs:

Needs
 Abraham Maslow, a psychologist, proposed that
all people seek to satisfy five basic kinds of needs;
needs
physiological needs, safety needs, social needs,
esteem needs and self actualization needs.
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 Abraham Maslow’s level/hierarchy of needs
1. Level -I : Physiological needs;
needs includes basic
needs such as need for food, cloth, shelter, sex
etc.
2. Level- II : Safety needs;- are needs to avoid
financial and physical problems.
3. Level -III : Social needs; - are needs for
friendship, affiliation, attraction etc.
4. Level -IV : Esteem needs;-are
needs needs for self
respect, recognitions etc.
5. Level V : Self-actualization needs;-are
needs needs for
maximizing ones skill, abilities, and other
potentials. It is a need for attaining the maximum
possible development.

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 How managers fulfil needs to the employees?
Types of need Ways of fulfilling the need
• Physiological  Paying adequate wage and salaries so that employee
needs can buy basic necessities.

• Safety Needs  Providing quality work life, making work environment

smart, keep in pension plans, purchasing protection
  clothes (gloves).

• Social Needs  Allowing employees to strengthen informal groups and

to communicate each other at work place.

• Esteem Needs  Increasing responsibilities to workers and appreciating

them on their performances.
 
 
 Training employees whose challenging duties and
• Self making environment smooth for employees.
Actualization

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3. Hertzberg’s two-factor theory
 Describes needs in terms of satisfaction and dissatisfaction.
dissatisfaction
 This theory is also called two-factor or hygiene-motivator
theory.
According to this theory there are two sets of factors:
I. Hygiene factors.
 Where one set of factors lead to job dissatisfaction;
dissatisfaction these are called
hygiene factors.
 Are part of the jobs environment
 Hygiene factors include: salary, job security, working condition,
company policies, quality of interpersonal relationship among
peers, supervisors, subordinates, etc.
II. Motivator factors
 The other set of factors that produce job satisfaction and
motivations;
motivations these are called motivators.
 These are achievement, recognition, advancement, responsibility,
the work itself, growth possibilities

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Cont’d…

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 Leadership theories (Cont...)

4. Theory of - X and Theory of -Y Assumptions

It is based on managers view/ attitude towards employees at work
Theory of X assumptions
1. The average worker is lazy, dislikes job,
job and will
avoid work whenever possible
2. Because most people dislike work,
work they have to be
closely supervised and threatened with
punishment to reach objectives.
3. Above all people want security
4. Average people prefer to be directed, wish to avoid
responsibilities and they have little ambition.

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 Leadership theories (Cont...)

Theory of -Y assumes the following

1. Most people find work as natural as play or rest and
develop an attitude toward work based on their
experience with it.
2. People do not need to be threatened with
punishment; they will work voluntarily toward
organizational objectives to which they are
committed.
3. The average person working under proper condition
not only to accept but also to seek responsibility.
4. Managers should decentralize authority to
employees and make sure employees have the
resources necessary to achieve organizational goals.

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6.3. Communication
People don’t get alone,
Because they fear each other.
People fear each other,
Because they don’t know each other.
People don’t know each other,
Because they have not communicated
with each other.

Martin Luther King

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Cont’d…
Communication is the transfer of information from the
sender to the receiver, with the information being
understood by the receiver.
Communication may be defined as the giving, receiving
or exchanging of information, opinion, or ideas by writing,
speech or visual means-or any combination of the three
so that the material communicated is completely understood
by every one concerned.
Communication is the process by which information is
transmitted between individuals and organizations so that
an understanding response results.
Communication is an exchange of facts, ideas, opinions or
emotions by two or more people.
07/25/21 Dr. Bogale A. 18–26
The role of communication in management
Communication is one of manager’s most important tool.
Communication has four functions in business.

i. Disseminating/distribution of information
ii.Motivating and persuading
iii.Promoting understanding.
iv.Aiding in decision making.

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 Principle of effective communication
 Clarity of thought,
thought What, how, when, where.
 Clarity of expression-simple
expression words, correct expression,
avoid jargons and ambiguity.
 Completeness : completeness of facts is absolutely essential
 Correctness
 Brevity is communicating what you have to say in fewest
possible words.
 Attentiveness-both
Attentiveness in sending and receiving
 Integrity-be
Integrity in conformity with organizational objectives and
policies
 Timeliness-outdated
Timeliness information has no importance
 Objectivity-be
Objectivity factual, avoid emotions and prejudice
 Adaptability-
Adaptability suit it to the audience
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 The communication process
The major variables in the communication process include:
A. Source/ Sender: The person who transmits, spreads, or
communicates a message or operates the electronic device.
B. Message : It is the information ,written or spoken ,which is to be
sent from one person to another .
C. Encoding: Is changing the message (from its mental form)
into symbols.
D.Choosing media/channel: This is the vehicle or medium which
facilitates the sender to convey the massage to the receiver.
E. Receiver : The receiver is the target audience of the message.
F. Decoding: This is the art of translating symbols of the
communication into their ordinary meanings.
G. Feedback: Is the loop that connects the receiver in the
communication process with the sender.
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Cont’d…

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 Types of communication
Communication can be classified based on a number of
dimension such as direction of flow, media of
transmission, and channel used.
Direction of flow
A.Down ward communication
B. Upward communication
C. Horizontal communication
Media of transmission
A.Written communication
B. Oral communication
C. Nonverbal communication
Channels used
A.Formal communication
B. Informal communication
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 Barriers to effective communication
 Perceptions / hasty generalization
Semantic barrier/language
Value judgment (preconception)
Motivation and interest
Source credibility
Filtering
Hidden agenda and etc.

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Cont’d…
Value laden work
Omission
Context
Hoarding
Information overload
Pressure of time
Hierarchical differentiation

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 How to make communication effective
Create an environment of trust and confidence
Be clear about the objective of communication
Be sensitive to communication
Be sensitive to the receiver’s frame of reference
Listen empathetically
Utilize feedback
Introduce redundancy and repeat

07/25/21 Dr. Bogale A. 18–34

 ON T R OL L IN G
7. C
FUN C T I O N

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 After studying this chapter you should be able to:

1. Define the meaning for

controlling.
2. Explain the need for controlling.
3. Describe the controlling process.
process
4. Give details about the effective
controlling.

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Introduction
It is a managerial function that provides answer to the
question of “how managers ensure that an
organization performs up to standards and
actually achieves its intended goals”.

It adds that vital regulatory element, allowing

managers to make use of a variety of methods for
monitoring performance and taking corrective
action when necessary.

07/25/21 Dr. Bogale A. 18–37

 7.1. Meaning and need for controlling
7.1.1 Meaning of controlling
1. Controlling is the process in which management
evaluates performance using predetermined
standards and makes a decision regarding corrective
action.
2. Deals with evaluating how well an
organization is achieving its goals and
taking action to maintain or improve
performances.
3. Involves comparing actual performance
with standard.
7.1.2 Need For Controlling
 To asses the organizations effectiveness and
efficiency

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 7.2 The controlling process

There are four steps in the control

process

1. Establishing standards of
performance.
2.Measuring actual performance
3.Comparing actual performance with
the set (established) standards
4.Taking corrective action
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The control process…cont’d

No

Take corrective
Measuring and Action
Setting standards
evaluating performance

Does performance
yes match the standard

Do nothing

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1. Setting standards
Standard is the criteria against which the actual
performance is compared.
There are three kinds of standards.
1. Historical standards: it is based on an organization’s
experience.
Example sales, costs, profits etc can be used as
standards.
2. Comparative standards: based on standards of
others.
3. Engineering standards: based on technical analysis.

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2. Measuring and evaluation performance
In this step the actual performance is measured and
then compared with standards.
If performance fulfils expectation, no control problem
exists.
If performance exceeds or fails to meet expectations,
further investigation is required to determine the
cause.
Performance exceeds standard means either superior
talent or inappropriate standard is set.
Performance fails to meet expectation may mean
inappropriate set standards, poor talent, or improper
use of resources.

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3. Taking corrective action
When performance falls outside the acceptable range
(upper or lower limit) one of the three actions is
typically appropriate.

 Do nothing
 Correct the deviation
 Revise standards

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7.3 Characteristics of effective control
system
1. Cost effectiveness: the benefits received from control
should exceed the expenses.
2. Acceptability: it should not harm the people
involved in and people must agree that controls
3. Appropriateness: should correspond with the plan.
4. Strategic: it should be on manageable number of
strategic activities.
5. Reliability and validity: control must be dependable
and measure what they are intended to measure.

07/25/21 Dr. Bogale A. 18–44

 End !!!
Thank u!!!
07/25/21 Dr. Bogale A. 45