Chapter 7 Directing class 12th Commerce

1

Directing is a continuous process:

2

Directing initiates action

3

Directing flows from top to bottom

4

Directing takes place at every level of management:

1

Directing is a continuous process:

Directing is a continuous activity. It takes place throughout the life of the organisation irrespective of people occupying managerial positions.

2

Directing initiates action:

While other functions prepare a setting for action, directing initiates action in the organisation.

3

Directing flows from top to bottom:

Directing is first initiated at top level and flows to the bottom through organisational hierarchy.

4

Directing takes place at every level of management:

Every manager, from top executive to supervisor performs the function of directing. The directing takes place wherever superior – subordinate relations exist.

1

Guides employees

Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership.

  2

Facilitates introduction of needed changes in the organization

Directing facilitates introduction of needed changes in the organisation. Generally, people have a tendency to resist changes in the organisation. Effective directing through motivation, communication and leadership helps to reduce such resistance

3

Stability and balance in the organisation

Effective directing helps to bring stability and balance in the organisation since it fosters cooperation and commitment among the people and helps to achieve balance among various groups.

4

Integrates employees efforts

Directing integrates employees efforts in the organisation in such a way that every individual effort contributes to the organisational performance.

1

Leadership

2

Communication

3

Motivation

4

Supervision

1

Leadership

Leadership is the process of influencing the behavior of the people. Leadership makes people to strive voluntarily for achieving organizational goal.

Leadership induces and indicates the ability of an individual to maintain good interpersonal relationship with followers and motivate them to contribute for achieving organizational objective. Leadership influences follower to strive to work and work enthusiastically for achievement of the group goals.

Dhirubhai Amabain – Ashoka incidents

Case study 2

Rajeev is an HR manager leading a team of 12 people. He knows that the duties and responsibilities of an HR employee are challenging. He knows in order to make his team work with a positive frame of mind, he will have to set a personal example as a role model and influence their behaviour and working style to increase the output of his team.

This is the case of leadership

Concept:

Kavita is a CEO. She has recently replaced Mr. Anuj who was an unsuccessful CEO. The profits of the company fell to a new low during his time. Kavita has a lot of challenges in front of her, major being the lack of enthusiasm in the organisation. In order to set things right she is trying to set a personal example in front of the employees by working with dedication and putting 16 to 17 hours in her job on a daily basis

This is the case of leadership

2

Communication

The word communication has been derived from the Latin word ‘communis’ which means ‘common’ which consequently implies common understanding. Communication is defined in different ways. Generally, it is understood as a process of exchange of (ivf)  ideas, views, facts, feelings, etc.,

Communication plays key role in the success of a manager. How much professional knowledge and intelligence a manager possesses becomes immaterial if he is not able to communicate effectively with his subordinates and create understanding in them. Directing abilities of a manager mainly depend upon his communication skills. That is why organisation always emphasise on improving communication skills of managers as well as employees.

Communication is transfer of information from the sender to the receiver with the information being understood by the receiver.

Harold Koontz and Heniz Weihrich

Case study 1

Priya and Raghav are discussing about an element of directing. They say that without this element no group or people can achieve a common understanding. This element requires effort from both the sides and consumes 90% of the time of a manager.

This is the case of Communication

Case study case 2

Akash works in a telecom company. He is leading a team of more than 100 employees. Daily he drops messages to them, convenes meeting and arranges a suggestion box in his department. He listens to the advices and suggestions of his subordinates very carefully and tries to implement them whereever possible. He is quite clear in his delivery of messages and conveys his thoughts properly.

This is the case of Communication

3

Motivation

Motivation means incitement or inducement to act or move. In the context of an organisation, it means the process of making subordinates to act in a desired manner to achieve certain organisational goals.

. Motivation means a process of stimulating people to act to accomplish desired goals -               William G scout

Case studies: 1.

Arun who is the departmental head of his organisation decides to improve the performance of his department. He decides to give some financial and non financial incentives to his subordinates. He knows these incentives will satisfy their needs. Therefore they will be stimulated to take actions from their side.

This is the case of motivation

4

Supervision

The term supervision can be understood in two ways. It can be noun or verbs.

Noun means position in hierarchy and verb means supervision by seniors to juniors.

Case studies :

Rajesh who works at the shop floor is a lower level manager. He is heading a team of 25 workers. He oversees and guides their efforts on a regular basis and tries to maximize the output of his unit by timely giving them feedback. His team has group unity and works with dedication to complete their targets on time.

1

Ability to influence follower

2

Achieve common goals

3

Relationship building - indicates interpersonal relations

4

Change the behavior of others

5

Continuous process

1

Ability to influence

Leadership indicates ability of an individual to influence others.

2

Achieve common goals

Leadership is exercised to achieve common goals of the organization.

3

Interpersonal relations

Leadership indicates interpersonal relations between leaders and followers.

4

Change in the behavior

Leadership tries to bring change in the behavior of others.

5

Continuous process

Leadership is a continuous process.

1

Autocratic or Authoritarian leader

2

Democratic or Participative leader

3

Laissez faire or Free-rein leader ( khula )

1

Autocratic or Authoritarian leader

STEVE JOBS

An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager is following this style, then communication is only one-way with the subordinate only acting according to the command given by the manager. This leader is dogmatic, i.e., does not change or wish to be contradicted. His following is based on the assumption that reward or punishment both can be given depending upon the result. This leadership style is effective in getting productivity in many situations like in a factory where the supervisor is responsible for production on time and has to ensure labour productivity. Quick decision-making is also facilitated. But there are variations also, they may listen to everyone’s opinion, consider subordinates ideas and concerns but the decision will be their own.

2

Democratic or Participative leader

Naryan Murti

A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decision-making. This kind of leadership style is more common now-a-days, since leaders also recognise that people perform best if they have set their own objectives. They also need to respect the other’s opinion and support subordinates to perform their duties and accomplish organisational objectives. They exercise more control by using forces within the group.

3

Laissez faire or Free-rein leader

P R JINDAL : and Sajjan Jindal

Such a leader does not believe in the use of power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them. The group members work on their own tasks resolving issues themselves. The manager is there only to support them and supply them the required information to complete the task assigned. At the same time, the subordinate assumes responsibility for the work to be performed.

Depending upon the situation a leader may choose to exercise a combination of these styles when required. Even a laissez faire leader would have certain rules to be followed while doing work and a democratic leader may have to take his own decision in an emergency situation.

i

Sender:

Sender means person who conveys his thoughts or ideas to the receiver. The sender represents source of communication.

ii

Message:

It is the content of ideas, feelings, suggestions, order, etc., intended to be communicated.

iii

Encoding:

It is the process of converting the message into communication symbols such as words, pictures, gestures etc.,

iv

Media

It is the path through which encoded message is transmitted to receiver. The channel may be in written form, face to face, phone call, Internet etc.

v

Receiver:

The person who receives communication of the sender.

vi

Decoding:

It is the process of converting encoded symbols of the sender.

vii

Feedback:

It includes all those actions of receiver indicating that he has received and understood message of sender.

Vii

Noise:

Noise means some obstruction or hindrance to communication. This hindrance may be caused to sender, message or receiver. Some examples of noise are:

1.Ambiguous symbols that lead to faulty encoding.

2.A poor telephone connection.

3. An inattentive receiver.

4. Faulty decoding (attaching wrong meanings to message).

5. Gestures and postures that may distort the message.

1

Vertical communication

Vertical communication flows vertically, i.e., upwards or downwards through formal channels.

(i)

Upward communications

Upward communications refer to flow of communication from subordinate to superior whereas downward communication indicates communication from a superior to subordinate. The examples of upward communication are – application for grant of leave, submission of progress report, request for grants, etc.

ii

downward communication

downward communication include – sending notice to employees to attend a meeting, ordering subordinates to complete an assigned work, passing on guidelines framed by top management to the subordinates, etc.

2

Horizontal or lateral communication

It takes place between one division and another. For example, a production manager may contact marketing manager to discuss about schedule of product delivery, product design, quality, etc.

1

Personal Need Of Employee

The informal communication arise out of needs of employees to exchange their views, which cannot be done through formal channels

2

Grapevine-

Informal system of communication is generally referred to as the ‘grapevine’ because it spreads throughout the organization with its branches going out in all directions in utter disregard to the levels of authority.

1

Grapevine helps to travel information fast

Sometimes, grapevine channels may be helpful as they carry information rapidly and, therefore, may be useful to the manager at times.

2

Reaction Judgement

Informal  channels are used by the managers to transmit information so as to know the reactions of his or her subordinates

1

Distortion of message

The grapevine or informal communication spreads rapidly and sometimes gets distorted. It is very difficult to detect the source of such communication.

2

Rumours of Factory

It also leads to generate rumours which are not authentic. People’s behaviour is affected by rumours and informal discussions and sometimes may hamper work environment

1

Psychological

2

Personal barriers

3

Organizational barriers

4

Semantic barriers:

1

Premature evaluation:

Some times people evaluate the meaning of message before the sender completes his message.

Such premature evaluation may be due to pre-conceived notions or prejudices against the communication.

2

Lack of attention:

The pre-occupied mind of receiver and the resultant non-listening of message acts as a major psychological barrier.

For instance, an employee explains about his problems to the boss who is pre-occupied with an important file before him.

3

Loss by transmission and poor retention:

When communication passes through various levels, successive transmissions of the message results in loss of, or transmission of inaccurate information. This is more so in case of oral communication.

Poor retention is another problem. Usually people cannot retain the information for a long time if they are inattentive or not interested.

4

Distrust:

If the parties do not believe each other, they can not understand each others message in its original sense.

1

Fear of challenge to authority:

Yaar agar address punch lia toh pata nahi kaya karega

If a superior perceives that a particular communication may adversely affect his authority, he or she may withhold or suppress such communication.

2

Lack of confidence of superior on his subordinates:

If superiors do not have confidence on the competency of their subordinates, they may not seek their advice or opinions.

3

Unwillingness to communicate:

Sometimes, subordinates may not be prepared to communicate with their superiors, if they perceive that it may adversely affect their interests.

4

Lack of proper incentives:

If there is no motivation or incentive for communication, subordinates may not take initiative to communicate.

1

Organisational policy:

If the organisational policy, explicit or implicit, is not supportive to free flow of communication, it may hamper effectiveness of communications.

2

Rules and regulations:

Rigid rules and cumbersome procedures may be a hurdle to communication.

3

Status:

Status of superior may create psychological distance between him and his subordinates.

4

Complexity in organisation structure:

In an organisation where there are number of managerial levels, communication gets delayed and distorted as number of filtering points are more.

5

Organisational facilities:

If facilities for smooth, clear and timely communications are not provided communications may be hampered.

Facilities like frequent meetings, suggestion box, complaint box, social and cultural gathering, transparency in operations, etc., will encourage free flow of communication

1

Badly expressed message:

Lanka , singhara

Some times intended meaning may not be conveyed by a manager to his subordinates.

These badly expressed messages may be an account of inadequate vocabulary, usage of wrong words, omission of needed words, etc.

2

Symbols with different meanings:

A word may have several meanings. Receiver has to perceive one such meaning for the word used by communicator.

For example, consider these three sentences where the work ‘value’ is used:

(a) What is the value of this ring?

(b) I value our friendship.

(c) What is the value of learning computer skills?

You will find that the ‘value’ gives different meaning in different contexts. Wrong perception leads to communication problems.

3

Faulty translations:

Sometimes the communications originally drafted in one language (e.g., English) need to be translated to the language understandable to workers (e.g., Hindi).

4

Unclarified assumptions:

Some communications may have certain assumptions which are subject to different interpretations.

For example, a boss may instruct his subordinate, “Take care of our guest”. Boss may mean that subordinate should take care of transport, food, accommodation of the guest until he leaves the place.

The subordinate may interpret that guest should be taken to hotel with care. Actually, the guest suffers due to these unclarified assumptions.

5

Technical jargon:

It is usually found that specialists use technical jargon while explaining to persons who are not specialists in the concerned field. Therefore, they may not understand the actual meaning of many such words.

6

Body language and gesture decoding:

HA MEIN BHI NA HAIN

Every movement of body communicates some meaning. The body movement and gestures of communicator matters so much in conveying the message.

1

Be aware of languages, tone and content of message:

2

Be a good listener:

3

Clarify the ideas before communication

4

Communicate for present as well as future

5

Consult others before communicating

6

Listener should be respected - Convey things of help and value to listeners:

7

Ensure proper feedback

8

Communicate  According to the needs of receiver:

9

Regularly Follow up communications:

1

Be aware of languages, tone and content of message:

The contents of the message, tone, language used, manner in which the message is to be communicated

The language used should be understandable to the receiver and should not offend the sentiments of listeners. The message should be stimulating to evoke response from the listeners.

2

Be a good listener:

Patient and attentive listening solves half of the problems. Managers should also give indications of their interest in listening to their subordinates.

3

Clarify the ideas before communication:

The problem to be communicated to subordinates should be clear in all its perspective to the executive himself.

The entire problem should be studied in depth, analysed and stated in such a manner that is clearly conveyed to subordinates.

4

Communicate for present as well as future:

The receiver of communication may also be encouraged to respond to communication.

Generally, communication is needed to meet the existing commitments to maintain consistency, the communication should aim at future goals of the enterprise also.

5

 Consult others before communicating:

Participation and involvement of subordinates may help to gain ready acceptance and willing cooperation of subordinates.

6

Listener should be respected -Convey things of help and value to listeners:

While conveying message to others, it is better to know the interests and needs of the people with whom you are communicating.

If the message relates directly or indirectly to such interests and needs it certainly evokes response from communicatee.

7

Ensure proper feedback:

The communicator may ensure the success of communication by asking questions regarding the message conveyed.

8

Communicate according to the needs of receiver:

Manager should adjust his communication according to the education and understanding levels of subordinates.

9

Follow up communications:

There should be regular follow up and review on the instructions given to subordinates. Such follow up measures help in removing hurdles if any in implementing the instructions.

1

Motive,

2

Motivation

3

Motivators

1

Motive:

A motive is an inner state that energises, activates or moves and directs behaviour towards goals. Motives arise out of the needs of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such restlessness. For example, the need for food causes hunger an account of which a man searches for food. Some such motives are – hunger, thirst, security, affiliation, need for comfort, recognition etc.,

2

Motivation:

Motivation is the process of stimulating people to action to accomplish desired goals. Motivation depends upon satisfying needs of people.

3

Motivators

: Motivator is the technique used to motivate people in an organisation. Managers use diverse motivators like pay, bonus, promotion, recognition, praise, responsibility etc., in the organisation to influence people to contribute their best.

Some of the definitions to explain the concept of motivation are given in the above box.

1

Positive or negative

2

produces goal directed behaviour.

3

Internal feeling

4

Complex process

1

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.

2

produces goal directed behaviour.

Motivation

For example, the promotion in the job may be given to employee with the objective of improving his performance. If the employee is interested in promotion, it helps to produce a behaviour to improve performance.

3

Internal feeling

The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour. For example, people may have the urge or desire for possessing a motorbike, comfortable house, reputation in the society. These urges are internal to an individual.

4

Complex process

Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of motivation may not have uniform effect on all the members.

1

Basic Physiological Needs

2

Safety/Security Needs:

3

Affiliation/Belonging Needs:

4

Esteem Needs:

5

Self Actualisation Needs:

1

Basic Physiological Needs

These needs are most basic in the hierarchy and corresponds to primary needs. Hunger, thirst, shelter, sleep and sex are some examples of these needs. In the organisational context, basic salary helps to satisfy these needs.

2

Safety/Security Needs:

Safety/Security Needs: These needs provide security and protection from physical and emotional harm. Examples: job security, stability of income, Pension plans etc.

3

Affiliation/Belonging Needs:

Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship.

4

Esteem Needs:

Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention

5

Self Actualisation Needs:

Self Actualisation Needs:  It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming. These needs include growth, self-fulfillment and achievement of goals.

1

People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.

2

People’s needs are in hierarchical order, starting from basic needs to other higher level needs.

3

A satisfied need can no longer motivate a person; only next higher level need can motivate him.

4

A person  moves to the next higher level of the hierarchy only when the lower need is satisfied.

1

Financial incentive

2

Non financial incentive

1

Pay and allowances:

2

Productivity linked wage incentives:

3

Profit Sharing:

4

Perquisites:

5

Stock option/ Co-partnership:

6

Retirement Benefits:

7

Bonus:

1

Pay and allowances:

For every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance and other allowances. Salary system consists of regular increments

2

Productivity linked wage incentives:

Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.

3

Profit Sharing:

Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improve their performance and contribute to increase in profits.

4

Perquisites:

In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary.

5

Stock option/ Co-partnership:

Sometimes, management may allot shares in line of various incentives payable in cash.

The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation.

In Infosys the scheme of stock option has been implemented as a part of managerial compensation.

6

Retirement Benefits:

Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement.

7

Bonus:

Bonus is an incentive offered over and above the wages/ salary to the employees

1

Status:

2

Reward and Recognition programmes:

3

Organisational Climate:

4

Opportunity- Career Advancement Opportunity:

5

Job Enrichment:

6

Job security:

7

Employee participation:

8

Employee Empowerment:

1

Status:

In the organisational context, status means ranking of positions in the organisation.

The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position.

5

Reward and Recognition programmes:

Recognition means acknowledgment with a show of appreciation.

Some examples of employee recognition are:

1.Congratulating the employee for good performance

2.Displaying on the notice board or in the company news letter about the achievement of employee.

3. Installing award or certificate for best performance.

2

Organisational Climate:

Organisational climate indicates the characteristics which describe an organisation and distinguish one organisation from the other.

autonomy, reward orientation, consideration to employees, risk-tasking, etc.,

3

Opportunity for Career Advancement

Every individual wants to grow to the higher level in the organisation.

Managers should provide opportunity to employees to improve their skills and be promoted to the higher level jobs.

Appropriate skill development programmes, and sound promotion policy will help employees to achieve promotions.

4

Job Enrichment:

Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience.

6

Job security:

Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal.

In India, this aspect is more important considering the inadequate job opportunities and too many aspirants for these.

7

Employee participation:

It means involving employees in decision making of the issues related to them. In many companies, these programmes are in practice in the form of joint management committees, work committees, canteen committees etc.,

8

Employee Empowerment:

Empowerment means giving more autonomy and powers to subordinates.

This feeling contributes positively to the use of skills and talents in the job performance.