DIRECTING

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 to 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.
DEFINITION:
According to Haimann: “Directing consists of the process and techniques utilized in
issuing instructions and making certain that operations are carried on as originally
planned.”
According to Koontz and O’Donnel: “Direction is the interpersonal aspect of
managing by which subordinates are led to understand and contribute effectively to the
attainment of enterprise objectives”
According to Urwick and Brech: “Directing is the guidance, inspection and the
leadership of those men and women that constitute the real course of responsibility of
management.”
According to G. R. Terry “Directing means moving to action and supplying simulative
power to a group of persons”.
According to Dale,“Direction is telling people what to do and seeing that they do it to
the best of their ability”.
According to Marshall, “Directing involves determining the course, giving orders and
instructions and providing dynamic leadership”.
Direction: Ensures that sub-ordinates do their work. well as per the expectation of
management in order to achieve the goals. It also develops interpersonal relations in a
group.
NATURE OF DIRECTING
1. Pervasive Function: – Directing is required at every level in an organization. every
manager provides guidance and inspiration to his subordinates. It is to be performed
from top level to lower level in the organization.
2. Executive Function: Directing is an executive function. The guidance and
instructions are given by all managers and executive at all levels throughout the
working of an organization. A subordinate always gets instructions from his superior
only.
3. Human Factor: – Directing function is related with human beings. It relates to
guiding and inspiring subordinates. And since human behaviour is complex and
unpredictable, Direction function becomes all the more important.
4. Continuous Activity: – Directing is a continuous activity as it continues throughout
the life of an organization. The mangers have to give direction to his subordinates, guide
and motivate them continuously so that the desired goals can be achieved.
5. Creative Activity: – Directing function helps in converting plans into performance.
A manager needs to have a creative and innovative thinking so that he can guide and
motivate his subordinates in such a way, that it leads to realization of organization
objectives. Without directing, employees become inactive
6. Flow from Top to Bottom Level: – Directing functions includes providing
instructions to the subordinates. Directing flows from top to bottom. It starts with top
level management and ends with subordinates at the lower level.
7. Facilitates Co-ordination: – Directing brings harmony among employees and
balance between all the activities of an organization. A good system of communication
between the superior and his subordinates helps to improve coordination. Upwards
communication helps a manager to understand the subordinates’ feelings.
8. Dual Objective: – Direction helps to achieve dual objectives of an organization. On
the one hand it aims at getting things done by the subordinates and on the other hand,
it provides an opportunity to the managers to prove their leadership qualities.
9. Psychological Factor: –Directing function is directly related to an individual
working in the organization. Directing function deals with human behaviour which
varies from individual to individual and is unpredictable. Leader has to take care of
feelings, emotions, etc. while giving direction to the subordinates. The manager has to
take care that the feelings and emotions of any employee do not get hurt.

IMPORTANCE OF DIRECTING
Direction is described as the heart of the management process. It is the life spark of an
organization which sets the organizational machine into motion. Direction function is
important because of the following reasons:
1) Direction initiate’s action: Management through direction motivates individuals in
the organization to function in the desired way to achieve organizational objectives. In
the absence of direction no one can understand what he is supposed to do and whether
he is doing it in the right way or not.
2) Integration of objectives: Direction helps in integration of personal goals with the
organizational goals. Employees are made to know as how the achievement of
organizational goals will help in fulfilling their personal goals as well. Thus, Employees
feel motivated to achieve their personal goals through achieving organizational goals.
3) Direction facilities change in the organization: Changes in the work system are
disliked by the employees and they always resist it. Any changes in the business
environment may necessitate changes in the organization as well. Resistance to change
can be avoided through proper direction. In order to accept and implement these
changes management has to motivate the employees affected by these changes, which
is the essential part of direction. For example, a company wants to introduce
computerization, employees will hesitate to accept it as they may lose their jobs since
they don’t know how to handle the computers. Here leadership plays an important role.
Leaders can communicate employees that they will be given training to use computers
and also there will be no loss of jobs.
4) Direction provides stability and balance to the organization: Direction through
effective motivation communication and leadership provides stability to the
organization and helps in maintaining balance between different departments in the
organization. Hence the organization can function efficiently and effectively over a long
period of time. For example, a sales Manager is of the opinion that the price of a product
be reduced so that more orders can be generated whereas, General Manager does not
hold the same opinion. In such a situation, directing function may try to balance both
the opinions by instructing and guiding say, the Sales Manager to find out other ways
of increasing sales.
Thus, direction stands out as an important function of management. It has also been
observed that there is a high correlation between direction and work performance.

PRINCIPLES OF DIRECTION
The principles of direction have been shown in fig 1 below. Principles of direction serve
as a guide as to what is to be observed while directing. These principles are:
1. Principle of Harmony of objectives: Direction should bring harmony between the
individual and organizational objectives. Directing is regarded as essential in
personnel management as it helps all the members to satisfy their personal goals
through organizational goals.
2. Principle of efficiency: Direction should bring efficiency to the operations. Leaders
should try to motivate sub-ordinates to increase performance & attain objectives at
minimum cost by avoiding wastages.
3. Principle of unity of command: Command must come from only one executive or
one superior. Workers must come to know from only one executive as to what to
achieve & how to achieve. If there is no unity of command there will be duplication
of work leading to confusion and chaos.
4. Principle of direct supervision: The superior should directly supervise his
subordinates. It boosts the morale of the subordinates. This also makes the
atmosphere trustworthy in the organization.
5. Principle of communication: A good system of communication between
executives & sub-ordinates ensures success. Effective communication serves as an
instrument of direction, supervision & advice. Leader should maintain an effective
system of communication within the organization. It also helps clear
misunderstandings.
6. Principle of leadership: Good leadership ensures cooperation, co-ordination &
confidence in the work force. Direction should provide leadership for guiding
employees in their work and also timely solution to the problems faced by them.

ELEMENTS OF DIRECTING
Communication, Supervision, Motivation and Leadership are the four essential
elements of directing.
Communication: – The word communication is derived from the Latin word
“Communis” which means common i.e. sharing of information. Communication refers
to the process of sharing knowledge, information and understanding from one person
to another. Communication is the sum of all things one person does when he wants to
create understanding in the mind of others. Not only the human beings but also animals
and plants communicate. The main purpose of communication is to convey ideas,
thoughts, and opinions by one person to other.
Definition:
According to Keith Devis: “Communication is the process of passing information and
understanding from one person to other. It is essentially a bridge of meaning between
people by using this bridge of meaning a person can safely cross the ruin of
misunderstanding that separates all people.”
According to Leland Brown: “Communication is the transmission and interchange of
facts, ideas, feelings or course of action”.
According to George Terry: “Communication is a continuous and thinking process
dealing with the transmission and interchange with understanding of ideas, facts and
course of action.”
Thus, communication has the following features:

• Communication is a two-way process.

• There are two parties, one is known as the sender and the other is known as
receiver.
• There is a message sent by the sender to the receiver.
• The receiver receives the message and understands it.
• Communication is not complete until the other person perceives it in the same way
as intended by the receiver.
Communication does not always flow from supervisor to subordinate. It can also be
from a subordinate to a supervisor. For example, subordinates can pass information to
the supervisor about the problems at work.
PROCESS OF COMMUNICATION
Process of communication: – Communication is a two-way process. The process of
communication has been shown in the fig

1. Sender: When an idea or information is generated in the sender’s mind the

communication cycle begins. The sender should have some idea which he wants to
convey to the receiver.
2. Encoding: Sender cannot convey his idea until he gives some form to that idea. The
process of converting thoughts into any form of message which may be verbal or
non-verbal is called encoding. In simple words, giving shape to the idea is called
encoding. When the sender wants to sends the information, the choice of the form
 should be made carefully so that receiver can properly understand it and is suitable
for the receiver. The most common form of encoding is using verbal encoding i.e.
encoding in words, either written or oral.
3. Dispatch and reception: A message is the actual physical product from encoding.
When we speak, speech is the message and when we write, writing is the message.
For sending the message some medium has to be used. It may be oral or written
communication for e.g. face to face communication. The encoded message is
dispatched to its destination using the appropriate medium. There may be some time
interval between dispatch and reception. Face to face communication reach
immediately. Today medium of communication have become too fast. The message
gets transmitted at the click of a button.
4. Decoding: Receiver receives the message and tries to understand the meaning of it.
The receiver’s understanding of the message that was sent to him, is called decoding
or the process of retranslation is called as decoding. The message should be
understood by the receiver in same sense as intended by the sender.
5. Feedback: Feedback is the response which is communicated back to the sender.
Feedback again includes the process of encoding, dispatch, reception and decoding.
So, the receiver of the message becomes sender and original sender becomes the
receiver. Feedback can be given by using same signals or different signals. One cycle
of the communication is completed by decoding of feedback. In face-to-face
communication both the sender and receiver continuously give feedback. The
responses likely to be as rewards are called as positive feedback and the responses
likely to be as punishment are called as negative feedback. Communication becomes
complete if message is understood by the receiver in same sense as intended by the
sender.
TYPES OF COMMUNICATION
Communication may be categorised based on:
a) Expressions
b) Organisational structure
c) Direction

Verbal and Non-verbal Communication: On the basis of the expressions,

communication may be verbal or non-verbal. Verbal communication may be oral or
written. Face to face communication, as in interviews, meetings and seminars, are
examples of oral communication. Issuing orders and instructions on telephone or
through an intercommunication system is also oral communication. The written
modes of communication include letters, circulars, notices and memos.
Communication which is based on gestures like facial expressions is called non-
verbal communication or gestural communication. It also supports verbal
communication and make it more effective. Examples of non-verbal communication
are: wave of hand, a smile or a frown etc. This is also termed as the gestural
communication
Formal and Informal Communication: In every organisation we have both formal
and informal channels. The communication which flows through the well-defined
path as established by the management is called formal communication. When a
General Manager communicates a decision to the production manager who may then
issue orders or instructions to the foremen is an example of formal communication.
Communication, which takes place on the basis of informal or social relations
among staff, is called informal communication. For example, any sharing of
information between a production supervisor and an accountant, as they happen to
be friends or so. Mostly informal channels are based on friendly interaction of
members of an organisation. In fact, it may be purely personal or related to
organisational matters.
Upward, Downward, Horizontal and Diagonal Communication: On the basis of
the flow or direction of communication in organisations, it can be classified as
upward, downward, horizontal or diagonal. When communication flows from lower
level to upper level, it is called upward communication. For instance, when a
foreman reports breakdown of machinery to the factory manager, the flow of
communication is upward. Upward communication encourages employees to
participate actively in the operations of their department.
The communication which flows down the hierarchy is called a downward
communication. For instance, when superiors issue orders and instructions to
subordinates, it is known as downward communication. When the General Manager
orders supervisors to work overtime, the flow of communication is downward i.e.,
from top to bottom.
When Communication is amongst members at the same level in the organisation, it
is called horizontal communication. For instance, production manager may
communicate the production plan to the sales manager. This is known as horizontal
flow of communication. Such communication facilitates coordination of activities
that are interdependent.
When communication is made between people who are neither in the same
department nor at the same level of organisational hierarchy, it’s called diagonal
communication. For example, cost accountant may request for reports from sales
representatives, not the sales manager for the purpose of distribution cost analysis.
This type of communication does take place under special circumstances.
SUPERVISION
The process of ensuring that employees have performed the work as per instructions
given to them is known as supervision. Supervisors clarify all instructions and guide
employees to work as a team in co-operation with others. Supervisors solve most of
the routine job-related problems of subordinates. Supervisor, thus, performs the
following functions:
• Clarifies orders and instructions issued to subordinates and ensures that they
understand and follow them.
• Ensures that subordinates have the required facilities to perform their jobs
• Keeps a watch and guides the activities of subordinates in performing their
jobs
 • Coordinates the work of different subordinates
• Detects errors and omissions and ensures their rectification.

MOTIVATION

Motivation refers to inspiring a person to use the best of his ability for achievement of
specified objectives. Motivation is one of the important elements of directing. Issuance
of proper instructions or orders does not necessarily ensure that they will be properly
carried out. It requires manager to inspire or induce the employees to act and get the
expected result. This is called motivation. It may be in the form of financial incentives
like such as bonus, commission etc. or, non-financial incentives such as appreciation,
growth etc. It may also be positive or negative motivation. Motivation is directed
towards goals and prompt people to act.

LEADERSHIP

While motivation is the process through which employees are made to contribute
voluntarily to work, leadership is the ability to persuade and motivate others to work in
a desired way for achieving the goal. Thus, a person who is able to influence others and
make them follow his instructions is called a leader. For example, in an organisation the
management decides to install some new machines to which the workers are resisting.
However, one of the workers takes the initiative, explains the fellow workers the
benefits of working with the new machines and moulds them to accept the
management’s decision, he is said to be leader as he is able to influence a group of
workers.

In practice, the managers have to guide and lead their subordinates towards the
achievement of goals, so, an effective manager should have leadership qualities as well.
An effective leader is able to integrate the individual goals with the organisational goals.
The main purpose of managerial leadership is to get willing cooperation of the
workgroup to attain the goals.
 COORDINATION
Coordination is one of the fundamental functions of management, ensuring that the
efforts of individuals, teams, and departments are synchronized to achieve the common
goals of the organization. It involves establishing a harmonious working relationship
across various units, helping to avoid conflicts, enhance efficiency, and promote unity
in the organization.

Coordination is the process of organizing and aligning the activities of different

individuals and groups within an organization to ensure that their efforts contribute
effectively to the achievement of organizational goals. It integrates the efforts of all
departments and individuals, ensuring that activities are not duplicated, resources are
utilized optimally, and the organization functions as a unified whole.

In essence, coordination ensures that each part of the organization works in concert with
others, leading to increased productivity and smoother operations.

TYPES OF COORDINATION

1. Internal Coordination

Internal coordination refers to the alignment and synchronization of activities,

resources, and processes within the various departments or units of an organization. It
ensures that all internal functions—such as marketing, production, human resources,
finance, and operations—work cohesively to achieve the organization’s goals
efficiently and effectively.

Areas of Internal Coordination

Horizontal Coordination: Synchronization between different departments or units at

the same hierarchical level, such as marketing and production. Example: In a retail
company, the marketing department must coordinate with the inventory team to ensure
enough stock for a promotional campaign.
Vertical Coordination: Alignment between different hierarchical levels, such as top
management, middle management, and operational staff. Example: In a software
company, senior management sets the strategic direction, while middle management
ensures teams are working on projects that align with the company’s vision.

Inter-Departmental Coordination: Collaboration between distinct departments with

complementary roles. Example: In a pharmaceutical company, R&D teams work with
production to ensure a new drug is manufactured according to approved formulations,
and with marketing to develop effective product launch strategies.

Examples of Internal Coordination:

Manufacturing Industry: In a car manufacturing company like Toyota, internal

coordination ensures the production team works with the supply chain team to receive
parts on time. The quality control team ensures standards are met, while the marketing
team uses this information to position the product in the market.

2. External Coordination

External coordination refers to the process of aligning and synchronizing an

organization’s activities and goals with external stakeholders, including suppliers,
customers, government bodies, industry partners, competitors, and regulatory
authorities. It ensures that the organization operates smoothly in its external
environment, meets external demands, and remains compliant with applicable
regulations.

Areas of External Coordination:

Coordination with Suppliers: Synchronizing activities with suppliers to ensure the

availability of raw materials, components, and other inputs at the right time and quality.
Example: Nestlé collaborates with farmers and ingredient suppliers globally to secure
high-quality inputs for its food and beverage products, ensuring sustainable and ethical
sourcing practices.
Coordination with Customers: Understanding and responding to customer
preferences, feedback, and demands. Example: Amazon interacts with its customers
through reviews and feedback mechanisms to improve products and services,
ensuring customer satisfaction.

Coordination with Distributors and Partners: Aligning goals with distributors,

franchisees, or joint venture partners to streamline product availability and delivery.
Example: Coca-Cola coordinates with global distributors to ensure its beverages are
available in local markets, even in remote regions.

Coordination with Regulatory Bodies: Ensuring compliance with laws,

regulations, and standards applicable to the organization’s operations. Example:
Tesla works closely with government agencies worldwide to comply with
environmental regulations and safety standards for electric vehicles.

Coordination with Industry and Competitors: Collaborating with other

organizations in the same industry for joint initiatives, standards development, or
lobbying efforts. Example: Pharmaceutical companies often collaborate to develop
shared safety protocols or conduct joint research on vaccines, as seen during the
COVID-19 pandemic.

Coordination with the Community and NGOs: Partnering with local

communities and non-governmental organizations to address social and
environmental issues. Example: Unilever partners with NGOs to promote
sustainability in its supply chain and reduce its environmental footprint.

Examples of External Coordination:

Supply Chain Coordination: In the automobile industry, companies like Ford

maintain external coordination with global suppliers to source parts, ensuring
production schedules are met and final products are delivered on time.
 IMPORTANCE OF COORDINATION

1. Prevents Conflicts and Overlaps: Coordination helps reduce conflicts and

confusion that may arise when different teams or individuals pursue divergent
goals. By ensuring everyone is aligned with common objectives, coordination
fosters a cooperative work environment. Example: In a company like IBM,
cross-functional teams (e.g., research and development, marketing, and finance)
need to work together harmoniously to develop and launch new products.
Without proper coordination, conflicts and overlaps in responsibilities could
arise, delaying product launches.

2. Ensures Efficient Resource Utilization: Coordination helps prevent the

duplication of efforts, ensuring that resources—whether human, financial, or
technological—are optimally used. This leads to increased efficiency and cost-
effectiveness. Example: At Amazon, coordination between warehouse staff,
logistics, and IT systems ensures that the right products are stored, packed, and
shipped to customers on time, optimizing inventory management and reducing
excess costs.

3. Achieves Organizational Goals: By aligning individual, team, and

departmental efforts, coordination contributes to achieving broader
organizational goals. When everyone is working towards the same objectives,
the overall performance of the organization improves. Example: Tata
Consultancy Services (TCS) ensures that their IT project management teams,
software developers, and client servicing teams are well-coordinated to deliver
client solutions on time, enhancing customer satisfaction and organizational
growth.

4. Promotes Smooth Workflow: Coordination enables a smoother workflow by

establishing clear communication channels and ensuring that tasks are completed
in sequence and on schedule. Example: Flipkart coordinates between its
 technology team and customer service team to ensure that any issues related to
product deliveries are handled promptly, maintaining customer satisfaction.

5. Enhances Adaptability: Proper coordination helps the organization be more

adaptable to changes in the business environment, allowing departments to work
together to address new challenges or opportunities quickly. Example: During
the COVID-19 pandemic, many companies, including Zomato, coordinated with
their delivery teams, restaurants, and customers to ensure that food deliveries
continued, adapting to health and safety regulations.

COORDINATION IN DIFFERENT LEVELS OF MANAGEMENT

1. Top-Level Management Coordination: At the strategic level, coordination is

crucial for aligning the organization’s vision, mission, and objectives. Top
management must ensure that all divisions and departments work towards a
unified direction. Example: Reliance Industries coordinates its expansion
strategies across its energy, retail, and telecommunications sectors to maintain a
unified corporate vision.

2. Middle-Level Management Coordination: Middle managers play a vital role

in ensuring that the policies and strategies set by top management are
implemented effectively at the operational level. They coordinate between
different departments, resolving issues, and ensuring that resources are allocated
appropriately. Example: HDFC Bank’s regional managers coordinate between
various branches and head office to ensure uniformity in banking services and
achieve financial goals.

3. Lower-Level Management Coordination: Lower-level managers are

responsible for coordinating the day-to-day activities of employees. They ensure
that operational tasks are completed effectively and on time. Example: In a
manufacturing facility, Maruti Suzuki’s supervisors coordinate assembly line
workers, ensuring smooth workflow and minimizing delays in production.
 METHODS OF COORDINATION

1. Direct Supervision: Direct supervision involves managers overseeing and

guiding the work of subordinates to ensure that tasks are aligned with the
organizational objectives. This method ensures tight control over operations.
Example: A restaurant manager directly supervises the kitchen staff and waiters
to ensure timely and quality service for customers.

2. Standardization:
Standardization involves setting specific procedures, rules, and processes to
ensure uniformity in operations. It helps align efforts across various teams or
departments. Example: In McDonald’s, standardized processes for food
preparation, customer service, and hygiene ensure consistency across all outlets
worldwide.

3. Mutual Adjustment: This involves individuals or departments adjusting their

activities based on ongoing communication and feedback. It is less formal and
allows for flexibility in problem-solving. Example: At Wipro, project managers
may adjust their team’s activities based on client feedback and changing
requirements, allowing teams to adapt quickly.

CHALLENGES IN COORDINATION

1. Communication Breakdowns: Poor communication can lead to

misunderstandings, delays, and conflicts, making coordination difficult.
Example: If there is a lack of clear communication between a marketing team
and the production team at Hindustan Unilever, the wrong products might be
manufactured or promoted, causing inefficiencies.

2. Cultural Differences: In multinational organizations, cultural differences

between teams in different regions can pose coordination challenges. Example:
 Cognizant must ensure proper coordination between teams in India and the U.S.,
addressing cultural differences and time zone challenges.

3. Resistance to Change: Employees or departments resistant to change may not

cooperate effectively during organizational transitions, hindering coordination
efforts. Example: During Infosys’ adoption of new technology, some employees
may resist coordination efforts to integrate new tools into their work processes,
affecting overall productivity.