Chapter Six

Directing Function of Management

• Directing is said to be a process in which the

managers instruct, guide and oversee the
performance of the workers to achieve
predetermined goals.
• Directing is said to be the heart of management
process.
• Planning, organizing, staffing has got no importance
if direction function does not take place.
• Directing initiates action and it is from here actual
work starts.
• Direction is said to be consisting of human factors.
Characteristics of Direction

• Pervasive Function: Directing is required at all levels

of organization. Every manager provides guidance
and inspiration to his subordinates.
• Continuous Activity: Direction is a continuous
activity as it continuous throughout the life of
organization.
• Human Factor: Directing function is related to
subordinates and therefore
• it is related to human factor. Since human factor is
complex and behaviour is unpredictable, direction
function becomes important.
 Importance of Directing Function

• Directing or Direction function is said to be the

heart of management of process and
therefore, is the central point around which
accomplishment of goals take place.
• A few philosophers call Direction as “Life spark
of an enterprise”.
• It is also called as on actuating function of
management because it is through direction
that the operation of an enterprise actually
starts.
Being the central character of enterprise,
it provides many benefits to a concern
which are as follows:
– It Initiates Actions
– It Ingrates Efforts
– Means of Motivation
– It Provides Stability
– Coping up with the changes
– Efficient Utilization of Resources
It Initiates Actions:

• Directing is the function which is the starting

point of the work performance of
subordinates.
• It is from this function the action takes place;
subordinates understand their jobs and do
according to the instructions laid.
• Whatever are plans laid, can be implemented
only once the actual work starts. It is there
that direction becomes beneficial.
It Provides Stability:

• Stability and balance in a firm becomes very important

for long term survival in the market.
• This can be brought upon by the managers with the
help of four tools or elements of direction function -
judicious blend of persuasive leadership, effective
communication, strict supervision and efficient
motivation.
• Stability is very important since that is an index of
growth of an enterprise.
• Therefore, a manager can use of all the four traits in
him so that performance standards can be maintained.
 Directing consists of the following four sub-functions:

1. Communication or issuing of orders and instructions to

subordinates. A manager has to instruct the subordinates
what to do, how to do it and when to do it.
2. Guiding, energising and leading the subordinates to perform
the work systematically and also building up among workers
confidence and zeal in the work to be performed.
3. Inspiring the subordinates to do work with interest and
enthusiasm for the accomplishment of the enterprise’s
objectives.
4. Exercising supervision over the subordinates to ensure that
the work done by them is in conformity with the objectives
that are determined.
 Leadership - what is it?

influencing people so that they will strive willingly towards

the achievement of group goals”

As a leader you can never say thank you enough, but even
more important is the idea of serving the people you are
leading.

“Being a leader can be a very humbling experience.”

 Conceptions of Leadership:
• Exercising power.
• Gaining and exercising the privileges of high
status.
• Being the boss.
• Task orientation.
• Taking care of people.
• Empowerment.
• Providing moral leadership.
• Providing and working toward a vision.
 What is leadership style?
Leaders’ styles encompass how they relate
to others within and outside the
organization, how they view themselves
and their position, and—to a large extent
—whether or not they are successful as
leaders.
How do you determine what is an
appropriate style?
• Good leaders usually have a style that they
consciously use most of the time, but they're
not rigid. They change as necessary to deal
with whatever comes up.
• Be consistent with what people in the
organization expect.
• Your style needs to be consistent with the
goals, mission, and philosophy of your
organization.
Analysis of leadership effectiveness
1. Define and measure some criteria of
organizational effectiveness
2. Assess leadership style of organization’s
leaders
3. Attempt to correlate organizational
performance with leadership styles
 How important is a leader?
• In most cases, people will perform at
about 60% of their potential with no
leadership at all
• Thus, an additional 40% can be
realized if effective leadership is
available
 capability
utilization

Contribution due to leadership 40%

ability of manager

Default contribution due to 60%

need for a job, peer pressure, etc.
 The 2 dimensions of
management
1. Economic or productivity-based
 “concern for production”
2. Employee condition and morale
 “concern for people”
The 2 dimensions of
management
These can also be thought of as:
1. Initiating structure (get it done)
2. Consideration (human condition)
 Styles of leadership

X X

Consideration X

X X

Initiating structure
 Styles of leadership
9

Benevolent Team
Leader Leader


(Y) (Z)

concern for
people

Laissez-faire Autocratic
Leader Leader
(L) (X)

1 concern for production  9

Which style of leadership works
best?
• Team Leader (Z) has proven to be the
most effective in general (9,9)
• Requires a “balancing act” of getting
things done and having a genuine concern
for people
Theory “L”: Laissez-faire leader
• Uninvolved - “leave them alone”
• Sees main role as passer of information
• Lets others make decisions
• Basically abdicates responsibility for
team or unit
Theory “X”: Autocratic leader
• Lacks flexibility
• Controlling and demanding
• “carrot and stick” approach
• Focused solely on productivity
Theory “Y”: Benevolent leader
• Very people oriented; encouraging
• Organizes around people
• Can be paternalistic
• “country club” atmosphere: non-
competitive
Theory “Z”: Team leader
• Balances production and people
issues
• Builds a working team of employees
• Team approach: involves
subordinates
• Organization is a vehicle for carrying
out plans
Results of leadership styles
1. Theory L: “missing management”
 Very low productivity
2. Theory X: “my way or the highway”
 Job stress; low satisfaction; unions form
3. Theory Y: “country club”
 Low achievement; good people leave
4. Theory Z: “good manager”
 High productivity, cooperation, low turnover,
employee commitment
Results of leadership styles
1. Theory L: “missing management”
 Very low productivity
2. Theory X: “my way or the highway”
 Job stress; low satisfaction; unions form
3. Theory Y: “country club”
 Low achievement; good people leave
4. Theory Z: “good manager”
 High productivity, cooperation, low turnover,
employee commitment
Origins of leadership
Are leaders born or made?
– BOTH. Evidence that both inherent personality
and environment are factors

What kind of leader would you be?

Theories of Leadership
Theories of Leadership
1) Trait theories:
• Is there a set of characteristics that
determine a good leader?
– Personality?
– Dominance and personal presence?
– Charisma?
– Self confidence?
– Achievement?
– Ability to formulate a clear vision?
Theories of Leadership
• Trait theories:
– Are such characteristics inherently
gender biased?
– Do such characteristics produce good
leaders?
– Is leadership more than just bringing
about change?
– Does this imply that leaders are born not
bred?
Theories of Leadership
• May depend on:
– Type of staff
– History of the business
– Culture of the business
– Quality of the relationships
– Nature of the changes needed
– Accepted norms within the institution
Theories of Leadership
2) Transformational:
– Widespread changes
to a library or the organisation where library
belongs
• Requires:
– Long term strategic planning
– Clear objectives
– Clear vision
– Leading by example – walk the walk
– Efficiency of systems and processes
Theories of Leadership
3) Invitational Leadership:
– Improving the atmosphere and message sent
out by the organisation
– Focus on reducing negative messages
sent out through the everyday actions of the
business both externally and, crucially,
internally
– Review internal processes to reduce these
– Build relationships and sense of belonging and
identity with the organisation –
that gets communicated to customers, etc.
Factors Affecting Style
• Leadership style may be dependent
on various factors:
– Risk - decision making and change initiatives
based on degree of risk involved
– Type of business – creative business
or supply driven?
– How important change is –
change for change’s sake?
– Organisational culture – may be long embedded
and difficult to change
– Nature of the task – needing cooperation? Direction?
Structure?
Effective communication
• Communication is a process by which
information is exchanged between individuals
through a common system of symbols, signs,
or behavior.
• Effective communication helps us better
understand a person or situation and enables
us to resolve differences and build trust and
respect.
 Why Effective Communication?
1) The ability to effectively communicate with
others is one of the most important tools for
professional and personal success.
2) Effective communication can help you
influence others.
3) Your capacity to communicate is often seen
as an indicator of your ability and
intelligence.
• 80% of workplace issues are communication
related.
Elements of Personal Communication
7%

38%

Words/Verbal Body Language Tone

55%

Dr. Albert Mehrabian

If words disagree with the tone of
voice and nonverbal behavior, people
tend to believe the tonality and
nonverbal behavior.
Dr. Albert Mehrabian
Process of communication
 Motivation
• Any influence that triggers, directs or
maintains behavior
• Research is based upon different variables that
affect motivation
– Individual Differences
– Organizational Contexts
– Manager Behaviors
– Process Theories
 Types of Motivation Theories

• Content theories
explain why people have different needs at
different times

· Process theories
describe the processes through which needs are
translated into behavior
 Content Theories of Motivation
Maslow’s Alderfer’s Herzberg’s McClelland’s
Need Hierarchy ERG Theory Theory Learned Needs

Self- Need for

Actualization Achievement
Growth Motivators
Need for
Esteem
Power

Need for
Belongingness Relatedness
Affiliation

Safety Hygienes
Existence
Physiological
 Maslow’s Hierarchy
• Each individual has needs, or feelings of
deficiency that drive their behavior
• Once a need is satisficed, then it is no
longer motivating
• Needs are in a hierarchy that an
individual moves up as they satisfy levels
of needs
Practical Implications of Content Theories
• People have different needs at different
times
• Offer employees a choice of rewards -- a
flexible reward system
• Do not rely too heavily on financial
rewards
– they mainly address lower level needs
 Maslow’s Hierarchy
• Each individual has needs, or feelings of
deficiency that drive their behavior
• Once a need is satisfied, then it is no longer
motivating
• Needs are in a hierarchy that an individual
moves up as they satisfy levels of needs
Maslow’s Hierarchy

Self-
Actualization

Esteem

Affiliation

Security

Physiological
 Levels of Needs
• Physiological/Survival needs
– Food, Clothing, Shelter, Air
• Security
– Feel safe, absence of pain, threat, or illness
• Affiliation
– friendship, company, love, belonging
– first clear step up from physical needs
 Need levels (cont.)
• Esteem Needs
– self-respect, achievement, recognition, prestige
– cues a persons worth
• Self-Actualization
– personal growth, self-fulfillment, realization of full
potential
– Where are YOU on the hierarchy???
 Alderfer’s ERG
• Consolidates Maslow into 3 categories
• Existence-physiological and security
• Relatedness-affiliation
• Growth-esteem and self-actualization
 ERG Model of Motivation

Frustration-Regression Satisfaction-Progression

Growth Needs

Relatedness Needs

Existence Needs
 Frustration-Regression
• Differs from Maslow
• When unable to satisfy upper level needs, the
individual will revert to satisfying lower level
needs
• Interesting point from research....growth
stimulates growth
 McClelland’s Learned Needs
• Needs are acquired through interaction with
environment
• Not a higherarchy, but degrees of each type of
need or motive
 Types of Needs
• N Ach-motive to meet some standard of
excellence or to compete
• N Aff-motive to develop and maintain close
and meaningful relationships
• N Pow-desire to influence and control others
and the environment
 Herzberg’s Two Factor Theory
• Some variable prevent job dissatisfaction and
some variables produce motivation
• Hygiene factors-basic needs that will prevent
dissatisfaction
– light, temperature, pay, parking
• Motivators
– when present cause high levels of motivation
– interesting work, advancement, growth, etc.
 Herzberg’s Two Factor Theory
High
Motivation

Low Motivation

Low Dissatisfaction

Dissatisfaction
Low High Low High
Hygienes Motivators
Process Theories
• Reinforcement Theory
• Expectancy
• Equity
• Goal Setting
 Types of Reinforcement
• Positive Reinforcement-rewards
• Punishment-Application of a negative
outcome
• Negative Reinforcement-removal of negative
outcomes when behavior is performed
• Extinction-absence of reinforcement (removal
of positive reinforcement)
• Drawbacks
Reinforcement Process
Stimulus
(situation)

Response
(behavior)

Consequences
(rewards and punishments)

Future Behavior
 Types of Rewards
• Extrinsic-external rewards such as money,
fringe benefits, job security
• Intrinsic-internal satisfaction outcomes from
doing work
• Satisfaction-employee’s attitude about work
situations
• Intrinsic motivation and Intrigue??????
 Equity Theory
• Individuals try to find a balance between their
inputs and outputs relative to a referent other
• However, a referent other is not always
present
 Results of Inequity
• Equity-I am being treated fairly
• Under-rewarded-will look to increase rewards,
or decrease inputs to match rewards
• Over-rewarded-will change referent to match
cognitions or increase inputs
• Leaving and distortion
 Reinforcement Theory
• Behaviors are functions of consequences that
they produce
• If a behavior is followed by a pleasant
experience it will be repeated
• In order to change behaviors the
consequences must be changed
Overreward Versus Underreward Inequity
Comparison
You
Other

Overreward Outcomes
Inequity Outcomes

Inputs Inputs

Underreward Outcomes
Inequity
Outcomes

Inputs Inputs
Goal Setting Theory
• Assignment of specific, moderately
difficult, and providing feedback will
provide motivation to work
• Employee participation
• Receive rewards
• Provide competencies for
achievement
Effect of Goal Difficulty on Performance
High
Task Performance

Area of
Optimal
Goal
Difficulty

Low Moderate Challenging Impossible

Goal Difficulty
 Expectancy Theory
• Combines goal setting and reinforcement
theories
• Three questions drive motivation
– With effort can I perform?
– With performance, will I be rewarded?
– Do I value the rewards?
 Terms
• Expectancy-belief that effort will lead to
performance
• Instrumentality-performance leads to rewards
(does performance level matter)
• Valence-value of rewards
Expectancy Theory of Motivation
E-to-P P-to-O Outcomes
Expectancy Expectancy & Valences

Outcome 1
+ or -

Outcome 2
Effort Performance + or -

Outcome 3
+ or -