Directing

Definition
• Directing is concerned with instructing, guiding, supervising and inspiring people in the organisation to
achieve its objectives. It is the process of telling people what to do and seeing that they do it in the best

possible manner.

• Definition of Directing :

• According to S.S Chatterjee, “Direction is the sum total of managerial efforts that is applied for guiding
and inspiring the working teams to make better accomplishments in the organisation.”

• • According to Dale Opines, “Direction is telling people what to do and seeing that they do it to the best
of their ability. It includes making assignments, explaining procedures ,seeing that mistakes are corrected,
providing on the job instruction and of course issuing orders.”
 The directing function, involves:

• Telling people what is to be done and explaining to them how to do it.

• Issuing instructions and orders to subordinates to carryout their
assignments as scheduled.

• Supervising their activities.

• Inspiring them to meet the mangers expectation and contribute towards
the achievement of organisational objectives.
 Importance of Directing
• i) It guides and helps the subordinates to complete the given task properly and as per schedule.

• ii) It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do them best.

• iii) It helps in maintaining discipline and rewarding those who do well.

• iv) Directing involves supervision, which is essential to make sure that work is performed according to the orders and
instructions.

• v) Different people perform different activities in the organisation. All the activities are interrelated. In order to co-
ordinate the activities carried out in different parts and to ensure that they are performed well, directing is important.

It thus, helps to integrate the various activities and so also the individual goals with organisational goals.

• vi) Directing involves leadership that essentially helps in creating appropriate work environment and build up team
spirit.
 Components/Elements of Direction
• i) Motivation:

• It is the process of inspiring and encouraging the people to do work. It is a skill of using the
capability of manpower for the organization. It is a mental and physical presence of
employee to do work. Effective motivation helps to raise the effective direction. Therefore,
motivation is important aspect of direction.

• ii) Leadership:

• It is another important aspect of direction. It is defined as the process of influencing people to

perform work effectively. In other words, it influences the behavior of employees or
subordinate. According to time, situation and behaviour of followers, a leader must conduct
his followers. therefore, it is an important aspect of direction.
• iii) Communication:

• Communication means transferring information from one person to another. In other words when
the information is transmitted from one person to another and information receiver easily take the
information, it is known as communication.

• iv) Coordination:

• It is also an important aspect of direction. When the coordination activity is not conducted
effectively. Direction is not effective. Coordination is the process of linking activity of resources and
various departments so that desired goal can be achieved easily. It is inter-related with all
managerial function.

• v) Supervision:

• It is another important aspect of direction. Direction is not only to issue order but also supervising
job of subordinates. It is an important function of every manager. So the manager’s duty is to look
after their work and examine that whether they have done according to the order issued or not and
also help in solving their work problems.
What Is Motivation?
The processes that accounts for an individual’s intensity,
direction, and persistence of effort toward attaining a
organizational goal

• Intensity – the amount of effort put forth to meet the goal

• Direction – efforts are channeled toward organizational
goals
• Persistence – how long the effort is maintained

5-7
Types of motivation theories
• Content theories
• Human needs and how people with different needs may respond to
different work situations.
• Process theories
• How people give meaning to rewards and make decisions on various
work-related behaviors.
• Reinforcement theory
• How people’s behavior is influenced by environmental consequences.

8
Management - Chapter 14
Needs
• Unfulfilled physiological and psychological desires of an individual.
• Explain workplace behavior and attitudes.
• Create tensions that influence attitudes and behavior.
• Good managers and leaders facilitate employee need satisfaction.

9
Management - Chapter 14
Types of content theories:
• Hierarchy of needs theory
• ERG theory
• Two-factor theory
• Acquired needs theory

10
Management - Chapter 14
Maslow’s hierarchy of human needs.

11
Management - Chapter 14
 ERG theory

• Developed by Clayton Alderfer.

• Three need levels:

• Existence needs — desires for physiological and material well-being.

• Relatedness needs — desires for satisfying interpersonal relationships.

• Growth needs — desires for continued psychological growth and development.

12
Management - Chapter 14
 Two-factor theory

• Developed by Frederick Herzberg.

• Hygiene factors:
• Elements of the job context.
• Sources of job dissatisfaction.
• Satisfier factors:
• Elements of the job content.
• Sources of job satisfaction and motivation.
13
Management - Chapter 14
Herzberg’s two-factor theory.

14
Management - Chapter 14
 Acquired needs theory

• Developed by David McClelland.

• People acquire needs through their life experiences.
• Needs that are acquired:
• Need for Achievement (nAch)
• Need for Power (nPower)
• Need for Affiliation (nAff)

15
Management - Chapter 14
Comparison of Maslow’s, Alderfer’s, Herzberg’s, and
McClelland’s motivation theories.

16
Management - Chapter 14
 Process theories of motivation …
• How people make choices to work hard or not.
• Choices are based on:
• Individual preferences.
• Available rewards.
• Possible work outcomes.

 Types of process theories:

• Equity theory.
• Expectancy theory.
• Goal-setting theory.
17
Management - Chapter 14
 Equity theory

• Developed by J. Stacy Adams.

• When people believe that they have been treated unfairly in comparison to
others, they try to eliminate the discomfort and restore a perceived sense of
equity to the situation.

• Perceived inequity.
• Perceived equity.

18
Management - Chapter 14
Equity theory and the role of social comparison.

19
Management - Chapter 14
 Equity theory

• People respond to perceived negative inequity by changing …

• Work inputs.
• Rewards received.
• Comparison points.
• Situation.

20
Management - Chapter 14
 Expectancy theory

• Developed by Victor Vroom.

• Key expectancy theory variables:
• Expectancy — belief that working hard will result in desired level of
performance.

• Instrumentality — belief that successful performance will be followed by

rewards.

• Valence — value a person assigns to rewards and other work related outcomes.
21
Management - Chapter 14
Elements in the expectancy theory of motivation.

22
Management - Chapter 14
 Expectancy theory

• Motivation (M), expectancy (E), instrumentality (I), and valence (V) are
related to one another in a multiplicative fashion:

M=ExIxV

• If either E, I, or V is low, motivation will be low.

23
Management - Chapter 14
Managerial implications of expectancy theory.

24
Management - Chapter 14
 Goal-setting theory

• Developed by Edwin Locke.

• Properly set and well-managed task goals can be highly motivating.
• Motivational effects of task goals:
• Provide direction to people in their work.
• Clarify performance expectations.
• Establish a frame of reference for feedback.
• Provide a foundation for behavioral self-management.
25
Management - Chapter 14
REINFORCEMENT THEORY …
• Reinforcement theory focuses on the impact of external environmental
consequences on behavior.

• Law of effect — impact of type of consequence on future behavior.

• Operant conditioning:
• Developed by B.F. Skinner.
• Applies law of effect to control behavior by manipulating its
consequences.
26
Management - Chapter 14
 Operant conditioning strategies:

• Positive reinforcement

• Increases the frequency of a behavior through the contingent presentation of a pleasant consequence.

• Negative reinforcement

• Increases the frequency of a behavior through the contingent removal of an unpleasant consequence.
• Punishment
• Decreases the frequency of a behavior through the contingent presentation of an unpleasant
consequence.
• Extinction
• Decreases the frequency of a behavior through the contingent removal of an pleasant consequence.

27
Applying reinforcement strategies

28
Motivation: From Concepts to
Applications
The Job Characteristics Model
The Job Characteristics Model
• Five Core Job Dimensions
• Skill Variety: degree to which the job incorporates a number of different skills and talents
• Task Identity: degree to which the job requires the completion of a whole and identifiable piece
of work
• Task Significance: how the job impacts the lives of others
• Autonomy: identifies how much freedom and independence the worker has over the job
• Feedback: how much the job generates direct and clear information about the worker’s
performance
Alternative Work Arrangements
• Flextime
• Flextime allows employees to choose the hours they work within a defined period of time.
• Job Sharing
• Job Sharing allows two or more individuals to split a traditional 40-hour-a-week job.
• Telecommuting
• Telecommuting allows workers to work from home at least 2 days a week on a computer
linked to the employer’s office.
Employee Involvement
A participative process that uses the input of
employees to increase their commitment to
the organization’s success

Two types:
Participative Management
Representative Participation
 Participative Management
• Subordinates share a significant degree of decision-making power with superiors
• Required conditions:
• Issues must be relevant
• Employees must be competent and knowledgeable
• All parties must act in good faith
• Only a modest influence on productivity, motivation, and job satisfaction
Representative Participation
• Workers are represented by a small group of employees who participate in
decisions affecting personnel
• Works Councils
• Board membership
• Desires to redistribute power within an organization
• Does not appear to be very motivational
Using Rewards to Motivate Employees
• Although pay is not the primary factor driving job satisfaction, it is a motivator.
• Establish a pay structure
• Variable-pay programs
 How to Pay
• Variable-Pay Programs
• Piece-Rate Pay
• Merit-Based Pay
• Bonuses
• Skill-Based Pay
• Profit-Sharing Plans
• Gainsharing
• Employee Stock Ownership
Plans
Types of Variable-Pay Programs
• Piece-Rate Pay
• Pays a fixed sum of money for each unit of production completed. For example: Ballpark
workers selling peanuts and soda get $1 for each bag of peanuts and soda sold.

• Merit-Based Pay
• Pays for individual performance based on performance appraisal results. If appraisals are
designed correctly, workers performing at a high level will get more pay.
• Bonuses
• Pay a lump sum at the end of a designated period of time based on individual and/or
organizational performance.
More Types of Variable-Pay Programs
• Skill-Based Pay
• Pays based on the number of skills employees have or the number of jobs they can do.
• Profit-Sharing Plans
• Pays out a portion of the organization’s profitability. It is an organization-wide program and
is based on a predetermined formula.
• Gainsharing
• Pays for improvements in group productivity from one period to another. It is a group
incentive plan.
• Employee Stock Ownership Plans (ESOP)
• Provides each employee with the opportunity to acquire stock as part of their benefit
package.
Employee Recognition Programs
• Employee rewards need to be intrinsic and extrinsic. Employee recognition programs are a good
method of intrinsic rewards.
• The rewards can range from a simple thank-you to more widely publicized formal programs.
• Advantages of recognition programs are that they are inexpensive and effective.
• Some critics say they can be politically
motivated and if they are perceived to be
applied unfairly, they can cause more harm
than good.
Leadership
What is Leadership?
Leadership is the ability to
influence, motivate, and enable
others to contribute toward the
effectiveness of the organizations
of which they are members.
Leadership Competencies
• Perceiving, assimilating,
Emotional
understanding, and regulating
Intelligence
emotions

• Truthfulness
Integrity
• Translates words into deeds

• Inner motivation to pursue goals

Drive
• Need for achievement, quest to learn

Leadership • High need for socialized power to

Motivation accomplish team’s or firm’s goals
 Seven Leadership Competencies (con’t)
• Strong belief in one’s ability to lead
Self-Confidence
others

• Above average cognitive ability

Intelligence
• Can analyze problems/opportunities

Knowledge of • Familiar with business environment

the Business • Aids intuitive decision making
 Leadership Styles

• Autocratic (Authoritarian)
• Bureaucratic
• Democratic
• Transactional
• Transformational
• Laissez-Faire
 Autocratic (Authoritarian)
• Manager retains power (classical approach)

• Manager is decision-making authority

• Manager does not consult employees for input

• Subordinates expected to obey orders without explanations

• Motivation provided through structured rewards and

punishments
 When to use Autocratic
• New, untrained employees
• Employees are motivated
• Employees do not respond to any other leadership style
• High-volume production needs
• Limited time for decision making
• Manager’s power is challenged by an employee
 Bureaucratic
• Manager manages “by the book¨

• Everything must be done according to procedure or policy

• If it isn’t covered by the book, the manager refers to the next

level above him or her

• Police officer more than leader

 When to use Bureaucratic
• Performing routine tasks

• Need for standards/procedures

• Use of dangerous or delicate equipment

• Safety or security training being conducted

• Tasks that require handling cash

 Democratic
• Often referred to as participative style

• Keeps employees informed

• Shares decision making and problem solving responsibilities

• “Coach” who has the final say, but…
• Gathers information from staff members before making decisions
 Democratic Continued
• Help employees evaluate their own performance

• Allows employees to establish goals

• Encourages employees to grow on the job and be promoted

• Recognizes and encourages achievement

• Can produce high quality and high quantity work for long periods of
time
 When to use Democratic
• To keep employees informed

• To encourage employees to share in decision-making and problem-

solving

• To provide opportunities for employees to develop a high sense of

personal growth and job satisfaction

• Complex problems that require a lots of input

• To encourage team building and participation.
 Transactional
• Motivate followers by appealing to their own self-interest
• Motivate by the exchange process.
• EX: business owners exchange status and wages for the work effort of the
employee.

• Focuses on the accomplishment of tasks & good worker

relationships in exchange for desirable rewards.

• Encourage leader to adapt their style and behavior to meet

expectations of followers
 When to use Transactional
• Leader wants to be in control
• When there are approaching deadlines that must be met
• Relationship is short term
 Transformational
Research indicates that transformational leadership is more
strongly correlated with lower turnover rates, higher productivity,
and higher employee satisfaction.

• Charismatic and visionary

• Inspire followers to transcend their self-interest for the organization
• Appeal to followers' ideals and values
• Inspire followers to think about problems in new or different ways

• Common strategies used to influence followers include vision and

framing
 Transformational cont.

• Instils feelings of confidence, admiration and commitment

• Stimulates followers intellectually, arousing them to develop
new ways to think about problems.
• Uses contingent rewards to positively reinforce desirable
performances
• Flexible and innovative.
 When to use Transformational
• When leaders want members to be an active part of the organization
and have ownership to it

• When leaders are building a sense of purpose

• When the organization has a long term plan

• When people need to be motivated

 Laissez-Faire
• Also known as the “hands-off¨ style
• Little or no direction
• Gives followers as much freedom as possible
• All authority or power is given to the followers
• Followers must determine goals, make decisions, and resolve
problems on their own.
 When to use Laissez-Faire
• Employees are highly skilled, experienced, and educated
• Employees have pride in their work and the drive to do it
successfully on their own
• Outside experts, such as staff specialists or consultants are
being used
• Employees are trustworthy and experienced
Power and Influence in
the Workplace
 The Meaning of Power

• Power is the capacity of a person,

team, or organization to influence
others.

• Potential, not actual use

• People have power they don’t use --

may not know they possess

• A perception
 Power and Dependence
Person B’s
countervailing
power over
Person A Person A’s
control of
Person A resource valued
by Person B

Resource
Person B desired by
person B
Person A’s
power over
Person B
 Sources of Power
Legitimate • Agreement that people
in certain roles can
request certain
behaviors of others
• Based on job
descriptions and
mutual agreement
• Legitimate power range
(zone of indifference)
varies across national
and org cultures.
 Sources of Power
Legitimate
• Ability to control the
Reward allocation of rewards
valued by others and to
remove negative
sanctions
• Operates upward as
well as downward
 Sources of Power
Legitimate

Reward
• Ability to apply
Coercive punishment
• Exists upward as well
as downward
• Peer pressure is a form
of coercive power
 Sources of Power
Legitimate

Reward

Coercive
• The capacity to
influence others by
Expert
possessing knowledge
or skills that they value
• More employee expert
power over companies
in knowledge economy
 Sources of Power
Legitimate

Reward

Coercive

Expert • Occurs when others identify

with, like, or otherwise respect
Referent the person
• Associated with charisma