UNIT FIVE- DIRECTING FUNCTION

UNIT 5 - Directing function

5.1. Meaning and the need for leadership

Leading is the process of influencing people so that they will contribute to organization and
group goals. It is influencing people so that they will work willingly and enthusiastically toward
the achievement of organizational goals ultimate objectives.
When we say influencing, it does not mean that coerce/forcing, imposing, suctioning or pushing
people behind. It means rather-motivating people so that they contribute their maximum effort
for the achievement of organizational goal.
Planning, organizing, and staffing are merely preparations for doing the work, and the work
actually starts when managers start performing the directing function.
Directing is a challenging function of management, because it deals with the human element of
the organization, which represents a complex of forces about whom not much is known. A
person's beliefs, hopes, ambitions, behavior, satisfaction, and interaction with other persons are
all involved in the directing process.
5.2. Elements of Directing or Leading
There are three elements of directing that helps managers to influence people to contribute
willingly for the achievement of organizational goal. These are:
A. Leadership
B. Motivation
C. Communication

A. Leadership
Definition
a) "The art or process of influencing people so that they will strive willingly and
enthusiastically towards the achievement of group goals."
b) "Leadership is the ability to secure desirable actions from a group of followers voluntarily
without the use of coercion."
c) "The process of directing & inspiring workers to perform the task related activities of the
group."
5.3. Leadership Styles
It can be defined as the various patterns of behavior favored by leaders during the process of
directing and influencing workers, which is determined by leader’s personality, experience and
value system, nature of followers and environment.

There are three important leadership styles

a) Autocratic

b) Democratic /participate/

c) Laissez-faire /free rein/

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Autocratic style - "I" approach: - Is a leadership approach in which a manager does not share
decision making authority with subordinates. Autocratic managers may ask for subordinates'
ideas & feedback about the decision, but the input does not usually change the decision unless it
indicates that something vital has been overlooked.
Under certain conditions, the autocratic style is appropriate. eg. During crisis & when
subordinates are trainees and when there is act of insubordination.
It is also effective when managers face issues that they are best equipped to solve, create
solutions, whose implementation does not depend on others & desire to communicate through
orders & instructions
This leadership style is closely associated with the classical approach to management and it is
characterized by the following behavioral patterns of leaders.
 The leader doesn't seek any opinions from subordinates, holds conflicts and with less
creativity.
 Exercises rigid control and close supervision, relies on punishments.
 Subordinates typically react by doing only what's expected and by suppressing their
frustration.
 The autocratic leader is task-oriented, gives little value on showing consideration to
subordinates.
 Depends on one way communication downward only.
Participate (democratic) style - "We" approach:- It is a leadership approach in which a
manager shares decision making authority with subordinates. It involves others and lets them
bring their unique viewpoints, talents & experiences to bear on an issue.
This leadership style is characterized by the following behavioral patterns of the leader.
 Allows the group members to participate in decision making process, proposed actions and
encourages participation at all levels.
 The leader will develop two way communications and promote team sphere.
 The democratic leader explains to the group members like reasons for personal decisions
when necessary and objectively communicates criticism and praise to subordinates.

Free-rein style( Laissez-faire) -"They" approach: - Quite contrary to autocratic leadership

style, in this leadership style the leader depends entirely on his subordinates to establish their
own goals and to make their own decisions.
It empowers individuals or groups to function on their own, without direct involvement from the
managers to whom they report.
The style relies heavily on delegation of authority, and works best when the parties have expert
power, when participants have and know how to use the tools & techniques needed for their
tasks.

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Free-rein leadership works particularly well with managers & experienced professionals in
engineering, design, research & sales. Such people generally resist other kinds of supervision.
The following are the behavioral patterns of laissez-faire leader.
 Laissez-faire leaders make a few attempts to increase productivity, to develop their attempts
or to meet subordinates psychological needs.
 Use their power very little; giving subordinates a high degree of independence in their
operation.
 Such leaders depend on subordinates to set their own goals and the means of achieving them,
and they see their role as one of aiding the operations of followers by furnishing them
information and acting primarily as a contact with the group’s external environment.
 The laissez-faire leader has little or no self-confidence in his/her leadership ability, sets and
goals for the group and minimizes communication and group interaction.

5.4. Approaches to the Study of Leadership Styles

The trait theory of leadership:-
Traits are inborn and inherent personal qualities of individuals. This theory believes leaders
possess certain specific inborn traits, which are inherited rather than acquired. It has a root from
"the great man theory" dating back to the ancient Greeks & Romans time, holds that leaders are
born not made.
The trait theory studies focused on the personal traits of leaders and attempted to identify a set of
individual characteristics that distinguished leases from followers' also successful leaders from
unsuccessful ones. In general the trait theory hasn't been a fruitful approach to explain
leadership.

The behavioral theory of leadership:-

The behavioral theory of leadership focused on what leaders do rather than their traits. Studies
showed that one set of traits/leadership style might not be equally appropriate in all situations.
This theory suggested that there were two distinct types of leadership which are known as task-
oriented /production centered/ and employee oriented /people centered/.
The situational /contingency/ theory of leadership:
According to this theory, leadership is strongly affected by a situation from which a leader
emerges and in which he/she works.
Effective leadership depends on of the leader, the followers and the situation.
It attempts to discover that the one unique set of leadership traits were largely unsuccessful.
Modern management theorists are more prone to the belief that leadership is more complex; that
is it can't be represented by one set of traits or by single set of behavior, thus effective leadership
behavior depends on the environment or the situation.

B. Motivation

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The word motivation is derived from motive, which is defined as an active form of a desire,
craving or need, which must be satisfied.
All motives are directed towards goals and the needs and desires affect or change your behavior,
which becomes goal oriented. For example, if you ordinarily do not want to work overtime, it is
quite likely that at a particular time, you may need more money (desire) so you may change your
behavior, work overtime (goal oriented behavior) and satisfy your needs.
Motivation refers to the forces to a person that arouse enthusiasm and persistence to pursue a
certain course of action. It means stimulating people to action through incentives or inducement
5.5.1. Sources of motivation
Intrinsic motivation - Intrinsic motivation stems from feelings of achievement and
accomplishment and is concerned with the state of self actualization in which the satisfaction of
accomplishing something worthwhile motivates the employee further so that this motivation is
self generated and is independent of financial rewards. Some of the intrinsic motivators are
Praise, recognition, responsibility, esteem, power, status, challenges and decision-making
responsibility.
Extrinsic motivation - given by another person, typically the manager. This type of motivation is
induced by external factors, which are primarily financial in nature. Money is probably the most
important incentive for positive behavior since money can be used for a number of Other
resources and include promotion.
5.5.2. Theories of motivation

The following are some of the basic theories of motivation:

1. Hierarchy of Needs Theory (Abraham Maslow)
It proposes that humans are motivated by multiple needs and that these needs exist in hierarchy
order:
1. Physiological needs - the need for food, water air & sex
2. Safety needs - the need for security & safety
3. Belongingness/Social needs - the need for friendship, interaction and love
4. Esteem needs - the need for respect & recognition
5. Self-actualization needs - the ability to reach one's potentials.

Self actualization
Need
Esteem need
Social Need
Security Need
This theory is based on Physiological

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Security Need

Physiological
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1. Only an unsatisfied need can influence behavior; a satisfied need is not a motivator.
2. A person's needs are arranged in a priority order of importance. The hierarchy goes
from the most basic needs to the best complex.
3. A person will at least minimally satisfy each level of need before feeling the need at
the next level.
4. If need satisfaction is not maintained at any level, the unsatisfied need will become a
priority once again. For example, for a person who is presently feeling social needs,
safety will become a priority once again if he or she is fired.

2. ERG THEORY
The ERG need theory, developed by Clayton Alerter is a refinement of Maslow's needs
hierarchy. Instead of Maslow's five needs, ERG theory condenses these five needs into three
needs. These three needs are those of Existence, Relatedness and- Growth. The E, Rand G is the
initials for these needs.
Existence needs: These needs are roughly comparable to the physiological and safety needs of
Maslow's model and are satisfied primarily by material incentives. They include all physiological
needs of Maslow’s model and such safety needs. These include the needs for sustenance, shelter
and physical and psychological safety from threats to people's existence and well being.
2. Relatedness needs: Relatedness needs roughly correspond to social and esteem needs in
Maslow's hierarchy. These needs are satisfied by personal relationships and social interaction
with others. It involves open communication and honest exchange-of thoughts and feelings with
other organizational members.
3. Growth needs: These are the needs to develop and grow and reach the full potential that a
person is capable of reaching. They are similar to Maslow's self-actualization needs. These needs
are fulfilled by strong personal involvement in the organizational environment and by accepting
new opportunities and challenges.
3. The Two-Factor Theory (Herzberg 1975)
The findings of the two factor theory suggested that the work characteristics associated with
dissatisfaction are quite different from those pertaining to satisfaction which prompted the notion
that two factors influence work motivation. These factors are hygiene factors and motivation
factors.
Hygiene factors (salary, job security, working conditions, status; Company policies; quality of
technical supervision and quality of interpersonal, relationships among peers, supervisors, and
subordinates) are the primary elements involved in job dissatisfaction. When present in
sufficient quality, they have no effect; when absent, they can lead to job dissatisfaction.
Motivation factors (achievement, recognition, responsibility, advancement, the work itself, and
possibility of growth) are the primary elements involved in job satisfaction. When present, they
can stimulate personal and psychological growth.
4. Theory X and Theory Y (Douglas McGregor 1950)

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Theory X is a philosophy of management with negative perception of subordinates’ potential for

work and attitudes toward work. It assumes that subordinates dislike work, are poorly
motivated, and require close supervision. A manager with these beliefs tends to control the
group, use negative motivation, and refuse to delegate decision-making.
Theory Y is a philosophy of management with a positive perception of subordinates' potential for
and attitudes toward work. It assumes that subordinates can be self-directing, will seek
responsibility and find work as natural as play or rest. The outcome of this belief is a manager
who encourages people to seek responsibility, involves people in decision making and work with
people to achieve their goals.
The important point about theory X and theory Y is that a management philosophy influences the
type of work climate the manager endeavors to create and ultimately, how the manager treats
people.
The following are the components of theory X and theory Y.
o People basically dislike work and avoid it Most people find work as natural as play or rest
whenever, possible and develop an attitude toward work based on
their experience with it.

Because most people dislike work, they People do not need to be threatened with
have to be closely supervised and threatened punishment; they will work voluntarily toward
organizational objectives to which they are
with punishment to reach objectives
committed.
The average person working in an environment
Most people preferred to be told what to do, will good human relations will accept and seek
have little ambition, want to avoid responsibility.
responsibility, and want security above all
else.

Most people have little creativity. They are Most people possess a high degree of
not capable of solving problems. Rather, imagination, ingenuity, and creativity with
which to solve organizational problems.
they must be directed.

Most people have limited intellectual Although people have intellectual potential,
potential. Contributions above basic job modern industrial life utilizes only part of it.
performance should not be expected.

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C. COMMUNICATION: - is the tool in which we exercise to influence others, bring about

changes in the attitudes and views of our associates, motivate them, establish and maintain
relations with them. Without communication there would be no interaction between persons.

 "Communication is the transfer of information from one person /sender/ to another person
/receiver/ to achieve goals."
 "It's a process consisting of a sender transmitting a message through media to a receiver who
respond"

The Communication Process

Communication takes place in the relationship between a sender and a receiver. It can flow in
one direction and ends there.
A model of the communication process:

Sender: The sender/source of message initiates the communication. In an organization the sender
will be a person with information, needs or desires and a purpose for communicating them to one
or more other people.
Encoding: It takes place when the sender translates the information to be transmitted into a series
of symbols.
Message: The encoded information sent by the sender to the receiver.
Channel: The formal medium of communication between a sender and a receiver.
Noise: Any factor that disturbs confuses or interferes with communication. Noise can arise along
what is called the communications channel or method of transmission.
Decoding: The process by which, the receiver interprets the message and translates it into
meaningful information. It's a two-step process.
Receiver: The person whose senses perceive the sender's message.
Feedback: It's the response of the receiver to the sender, also passes through the same process.
TYPES OF COMMUNICATION

Based on the Environment in which the communication process takes place, organizations can
have internal and external communication.
Internal Communication is the conversation that businesses have with their staff and those
staff has with each other.

External communication is any communicative effort specifically for people and organizations
operating outside of the business. External communications focus on spreading news and
information about the corporation to the public, customers, and company stakeholders.

Formal and Informal communication

Communication in organizations takes two forms: “formal” and Informal”.
1. Formal communication is the official patterns of communication that are designed,
approved, and recognized by the management of the organization. It is an integral part of the

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organization structure. Organizational chart can be regarded as anatomical drawing of the official
channels (paths) through which official messages travel. Formal communication is thus the
official chains that determine the flow and direction of official messages among individuals or
divisions in an organization.

A. Downward Communication
Messages flowing upper from organizational levels to lower organizational levels constitute
downward communication.
It is a convenient channel to explain policies and organizational procedures/to appraise the
subordinates for their performance.
B. Upward Communication
Upward Communication starts from bottom level to top level. Upward communication provides
necessary feedback and reports. Upward communication is also important for workers'
suggestions for the welfare of an organization.
C. Horizontal Communication
Horizontal communication refers to the flow of communication among the people at the same
level of authority. The main objective of horizontal communication is developing team work and
promoting group coordination within an organization Horizontal Communication is less formal .
Sometimes it results into “Gossip” about management.
D. Diagonal (or Crosswise) Communication
Communication between departments or employees in the same organization without any
hierarchy is called diagonal communication. Workers communicate with other workers, clerks
sharing information with one another, managers discusses some organizational problems are all
engaged in diagonal communication.
2. Informal Communication
Informal channels transmit official news through unofficial and informal communicative
interactions known as the „grapevine.
‟This informal communication network includes teatime gossip, lunch-time meeting and so on.
An informal channel of communication in an organization is called Grapevine. For example
people working together take interest in one another and talk about appointments, promotions,
demotions or even domestic and romantic affairs of another.
Importance of Effective communication
Effective communication is important to managers for three primary reasons.

 Communication provides a common thread for the management processes of planning,

organizing, leading, and controlling.

 Effective communications skills can enable managers to draw on the vast array of talents
available in the multicultural world of organizations.
 Managers spend a great deal of time by communicating face-to face, electronic or telephone
communication with employees, supervisors, suppliers or customers.