Chapter Seven

Directing Function
Definitions
Supervision
 Function of Supervisor
Ensures group unity among the workers as with unity their efficiency
and discipline improves.
Gives on-the-job training to the workers as and when required.
Checks the performance of workers and corrects them by giving
feedback.
A leader to the workers. He should act as a role-model in order to
influence their behaviour in the right direction.
A lower level manager, since he is a part of the management he acts as a
link between the management and the workers.
Stays in touch with the workers as he remains in day to day contact with
them.
 Definitions
• Leadership is the process of influencing
others toward the achievement of
organizational objectives.
• Leadership is the art or process of
influencing people so that they will
strive willingly and enthusiastically
toward the achievement of
organizational or group goals.
 Cont’d
• It is behavioral in nature and involves personal
interaction.
• Leading is not deriving or pushing from behind; it is
placing oneself before the group and facilitating
progress and inspires followers to accomplish
organizational (group) objectives.
Source of power
 Cont’d
Two sources of power which in turn divided into five categories:
1. Organizational sources of power (Legitimate, reward and coercive)
2. Personal sources of power (expertise and referent)
Legitimate Power
• The authority that a manager has by virtue of his or her position in the
organization.
Reward Power
• The ability of a manager to give or withhold tangible and intangible
rewards.
 Cont’d
Coercive Power
• The ability of a manager to punish others.
Expert Power
• Power that is based on special knowledge, skills, and
expertise that the leader possesses.
• Tends to be used in a guiding or coaching manner
Referent Power
• Power that comes from subordinates’ and coworkers’
respect , admiration, and loyalty
• Possessed by managers who are likable and whom
subordinates wish to use as a role model
 Leadership versus Management

• Management is a broad • Leadership, on the other hand,

focuses almost exclusively on
subject that encompasses the ‘people’ aspects of getting a
activities such as job done-inspiring, motivating,
planning, organizing, directing, and gaining
staffing, directing, and commitment to organizational
activities and goals.
controlling
 Leadership versus Management
Management
1. Reduces uncertainty
2. Stabilizes
organizations
3. Planning and
budgeting
4. Organizing and
staffing
5. Controlling and
problem solving
 Distinguishing personal
characteristics of leader and manager
 Leadership Theories
1.Trait Theories
Traits are distinctive internal/personal qualities
or characteristics of an individual, such as
physical (height, weight, appearance, health, etc),
personal(selfconfidence,dominance,adap
table,extroversion/sociability, originality
etc) and
mental (intelligence, creativity,
knowledge, technical competence etc).
• A leader trait is a physical or personality
characteristic that can be used to
differentiate leaders from followers.
• Its based on the old approach that
identifying the personal traits that
differentiated leaders from followers.
• Trait theory originated from an ancient theory
called “Great Man” theory that assumes that
“leaders are born not made”
 2.Behavioral
Theories
When it became evident that effective leaders did not seem
to have any distinguishing traits or characteristics, researchers
tried to isolate the behaviors that made leaders effective.
In other words, rather than try to figure out what effective
leaders were, researchers tried to determine what effective
leaders did, how they delegated tasks, how they
communicated with and tried to motivate their subordinates,
how they carried out their tasks, and so no.
• This tries to answer the questions “What do
effective leaders do? What ineffective leaders
don't do? How do subordinate react emotionally
and behaviorally (performance) to what the
leader does?"
 Cont’d
• Two major dimensions of leader
behavior emerged from this body of
research;
 how leaders get the job done
how leaders treat and interact with
their subordinates.
 The University of Michigan
Studies
• Identified two distinct styles of
leadership, referred to as job-centered
and employee - centered.
The job-centered leader practices
close supervision on the
subordinates’ performance.
This leader relies on coercion,
reward, and legitimate power to
influence the behavior and
 Cont’d
• The employee-centered leader believes in
delegating authority and supporting followers in
satisfying their needs by creating a supportive
work environment.
• The employee centered leader is concerned with
followers', their personal advancement, growth
and achievement.
 The Ohio State Studies
• These studies isolated two leadership factors, referred to as
initiating structure and consideration.
Initiating structure involves behavior in which the leader organizes and defines
the relationship in the group, tends to establish well-defined patterns and
channels of communication, and spells out ways of getting the job done.
Consideration involves behavior indicating sensitiveness to subordinates,
respect their ideas and feelings, and establishes mutual trust and friendship
between the leader and the followers.

• In short, the behavioral theory attempted

to identify effective leader behaviors that
would work in every situation.
 The Contingency /Situational Leadership Theory
Grows out of an attempt to explain the inconsistent findings
about traits and /behaviors.
Situational theory proposes that the effectiveness of a
particular style of leader behavior depends on the situation.
As situations change, different styles become appropriate.
This directly changes the idea of one best style of leadership.
 In other words, the contingency/situational theory holds that
appropriate leader traits or behaviors are contingent or
dependent on relevant situational characteristics.
 Cont’d
More specifically, the contingency leadership theory states
that, leadership is the result of the interaction of:
Leaders: behavior and competence
Followers: behavior and competence
Situations: situational variables such as job characteristics,
organizational policies, leaders member relations (the extent
to which a leader has the support of group members),
position power (the amount of power that the organization
gives the leader to accomplish necessary tasks).
 Theory X and Theory Y
Douglas McGregor has hypothesized two sets of
assumptions about people that serve as a philosophical base
for leadership action.
 Theory X
The average human being has an inherent dislike of
work, will avoid responsibility and workers are lazy.
Because of this dislike, most people must be coerced,
controlled, directed, and threatened with punishment to
get them to put forth adequate effort toward the
achievement of organizational objectives.
 Theory Y
Adopts a developmental approach/ modern positive set of
assumptions
A manager with Theory Y assumption will prepare him/herself to
work with people as individuals, to involve people in the process
of decision-making, to openly encourage people to seek
responsibility and to work with people achieve their goals.
 Cont’d
 The average human being does not inherently dislike work; the
physical and mental effort involved is as natural as play or rest.
 A person will exercise self-direction and self control in the
service of objectives to which s/he is committed.
 People generally become committed to organizational objectives
if they are rewarded for doing so.
 The average human being learns, under proper conditions, not
only to accept, but also they seek responsibility.
 Many people have a relatively high degree of imagination,
ingenuity, and creativity in the solution of organizational
problems.
 The average person’s intellectual potential is only partially
utilized under the conditions of modern industrial life.
 Leadership Style
Its based on relationship between leaders’ action and the reaction of
subordinates emotionally and behaviorally.
A manager’s leadership style is composed of three parts:
i. How the manager chooses to motivate subordinates: it could be positive such as
responsibility ,recognition ,praise ,security and monetary rewards or negative
such as threats, Coercion,Fines,Suspensions and Termination.
ii. His/her decision-making style
iii. His/her areas of emphasis (orientation) in the work environment: Task
orientation, employee orientation
 Authoritarian/Autocratic Leadership Style

It is closely associated with the classical approach to

management. The manager who follows this style is
dogmatic and leads by the ability to withhold or give rewards
and punishment, i.e. motivation is through incentives and fear.
In this style, decision-making is solely by the manager,
in other words, the leader retains all authority and
responsibility.
The autocratic leader is task-oriented and places little
value on showing consideration to subordinations as a
leadership technique.
 Cont’d
Its applicable
When there is a need to influence subordinates in
favor of organizational objectives which has an effect
on individuals.
When subordinates are new, they need to be directed.
When the situation calls for unilateral decision-
making – perhaps there is no enough time for quality
input from subordinates or the subordinates may lack
information.
 Democratic/Participative Leadership Style
In this leadership style, the manager involves subordinates in
making organizational decisions, shares problems with them and
shares authority to reach a decision.
The leader delegates a great deal of authority while retaining
ultimate responsibility. Active two-way communication (upward and
downward) exists.
It uses Theory Y assumption as his/her philosophical base for
leadership.
 Laissez-Faire/Free-Rein Leadership Style

Leaders generally give the group complete freedom, provide the

necessary materials, participate only to answer questions, and
avoid decision-making whenever possible.
The leader either sets limits and the followers work out their own
problems, or the individuals set their own goals.
Leaders depend largely on subordinates to set
their own goals and the means of achieving them.
 Cont’d
• They see their role as one of aiding the operations of followers
by furnishing them information and acting primarily as a contact with
the groups external environment, i.e. the leader’s role is to serve as a
logistics specialist or representative of the group to outside groups.
• The leader denies responsibility and abdicates authority to the group.
• The application of Laissez-Faire style can be found with individuals or groups that the
manager views as being knowledgeable, independent, or motivated.
• Additionally, if the work group is composed of high achievers,
or is highly research oriented, this style has potential benefits.
• Primarily horizontal communication among peers exists.
 Situational Leadership style

• The situational leadership style states that for a manager to be

democrat, autocratic or laissez-faire, situations force him/her.
Motivation
 Definition and Nature of Motivation
Motivation - the process of arousing and sustaining goal-directed
behavior
Motivation is accomplishing things through the efforts of
others. If you cannot do this, you will fail as a manager.
Its an internal force that energizes behavior, gives direction
to behavior, and underlies the tendency to persist.
Motivated individuals work hard, persist and are goal
oriented.
 Motivator
• Motivators are things, which induce an individual to
perform. While motivation reflects wants, motivators
are the identified rewards, or incentives that sharpen
the derive to satisfy these wants. They are also the
means by which conflicting needs may be reconciled
or one need heightened so that it will be given
priority over another. A motivator is something that
influences an individual’s behavior. It makes a
difference in what a person will do.
 The Motivation Cycle

• The starting point in this cycle is a need or a deficiency or a state of

felt deprivation an individual experiences at a particular time. This
deficiency causes tension (physiological or psychological in balance),
which will be modified by one’s culture and personality to cause
certain wants leading /motivating the individual to some kind of goal
directed behavior. This leads to satisfaction and one cycle of
motivation will be completed.
 Need
 A need is a deficiency or lack of something of value that an individual
experiences at a particular point in time
 Needs are energizers or triggers of behavioral responses
 The implication is that when needs (deficiencies) are present:
 the individual will seek to fulfill those needs and
 may be more susceptible to managers’ motivational efforts.
 Goal
 In any discussion of motivation, the importance of goals is
apparent.
 The motivational process is goal directed.
 The goals, or outcomes, an employee seeks are viewed as
forces that attract the person.
 Accomplishing desired goals can result in a significant
reduction in need deficiencies.
• The need for food for example will result in
hunger and hunger will drive or motivate the
individual to take action (eating food), which will
achieve the goal. This goal attainment will restore
the physiological or psychological balance and
reduce or cutoff the drive for food.
 Motivation Vs Satisfaction
Motivation refers to the drive and effort to satisfy a
want or a goal.
Satisfaction refers to the contentment experienced
when a want is satisfied. In other words, motivation
implies a drive toward an outcome, and satisfaction is
the outcome already experienced.
 Motivation and Performance
 Even though its assumed to be motivation and Performance are the same they are different.
 The following formula for performance helps put motivation into proper perspective:
 Performance = Ability x Motivation x Environmental conditions
 Thus, we see motivation is a necessary but insufficient contributor to job performance. The
multiplication sign is used to emphasize how a weakness in one factor can negate the other.
 The above relationship between performance and motivation clearly shows us that managers
should hire individuals who have the ability to do what is required.
After that, the management challenge is providing environmental conditions that
nurture and support individual motivation to work toward organizational goals.
 Keeping other variables constant, motivation and performance have neither positive nor negative
relationship. As motivation increases, job performance increases, reaches its maximum and the
decreases
Optimal/maximum
-------
* After the optimal point
Further motivation brings
About anxiety, tenseness,
Performance
Fretfulness, and the
Anxiety eventually
Decreases performance.

Motivation
 Theories of Motivation
A. Carrot and Stick Approach
 This metaphor relates the use of rewards and penalties in order to induce desired
human behavior.
 It comes from the old story that to make a donkey move one must put a carrot in
front of it and if it does not move beat it with stick from behind.
 Reward and punishment are still recognized/considered by strong motivators.
For centuries, however, they were too often thought of as the only forces that
could motivate people.
 Carrot - money in the form of pay or bonuses.
 Stick -fear such as fear of loss of job, loss of income, reduction of bonuses,
demotion or some other penalty.
 Cont’d
B. Money as a Motivator
Even if under the carrot and stick approach money as a sole motivator has been
criticized, it is used as a motivator (motivating factor) but not the only one.
Money can be used as a motivator under the following conditions.
For people who have low-level standards of living and who badly need it for
their life.
When the amount is so significant that the organization uses it for competitive
purposes.
When the payment is so differentiated that even at equal position discriminatory
payment is made for people with different levels of performance
 C. Maslow’s Hierarchy of Needs
As each need is substantially satisfied, the next need
becomes dominant.
Unsatisfied need is a potential motivator of behavior
Satisfied need is no longer a motivator
Individuals cannot move to the next higher level until
all needs at the current (lower) level are satisfied
 Must move in hierarchical order
 Applying Maslow’s Theory to Management
1. Physiological
 workers are motivated by basic needs, such as the needs for wages or salary
 also include the physical conditions in which a person works, such as heating,
lighting, and noise.
2. Safety or security needs
 Some of these needs can be met by providing employees with insurance,
retirement benefits, and job security.
 Employees need to know that in the workplace, they are safe from physical,
psychological, or financial harm.
 Applying Maslow’s Theory Cont’d
3. social needs
Can be meet by providing work environments in which colleagues interact
4. Status needs
can be met by providing employees with signs of recognition that are visible to
others, such as job titles, awards, designated parking spaces, and promotions.
5. Self-fulfillment
by providing them with opportunities to be creative at work or allow them to
become involved in decision making.
 D. Herzberg’s Two-Factor Theory
developed the two-factor content theory of motivation.
The two factors are the dissatisfies-satisfiers, the hygiene-motivators, or the
extrinsic–intrinsic factors.
 Satisfaction and dissatisfaction are not opposites but separate constructs
 Cont’d
1. Hygiene Factors:
 Determinants of Job Dissatisfaction / dissatisfiers
 Job Environment/context Factors
 Their absence leads to high levels of employee dissatisfaction
 Improve the dissatisfiers and reduce dissatisfaction
Includes:
 pay
 Organization policies
 Working conditions
 Quality of supervision
 Interpersonal relations
 Cont’d
2. Motivator Factors:
 Job content factors
 Determinants of Job Satisfaction
 Could lead to high levels of employee satisfaction
 Their absence, or a person's failure to experience them, would not produce
dissatisfaction
Includes:
 Work itself
 Achievement
 Responsibility
 Recognition
 Advancement
COMMUNICATIO
N
 Definition
Communication - The process by which information transferred and
understood between two or more people, usually with the intent to motivate or
influence behavior.
It assists organizational member to accomplish both individual and organizational
goals, implement and respond to organizational change, coordinate organizational
activities, and engage in virtually all organizational relevant behaviors.
 Functions of Communication
 Control
 Formal and informal communications act to control individuals’
behaviors in organizations.
 Motivation
 Communications clarify for employees what to do, how well they
have done it, and what can be done to improve performance.
 Emotional Expression
 Social interaction in the form of work group communications
provides a way for employees to express themselves.
Information
 Individuals and work groups need information to make decisions
or to do their work.
Communication Process Model

62
 Types of communication

1. Interpersonal communication
2. Organizational communication
 Interpersonal communication
 Communications that flow between individuals in face-to-face and
group situations.
 the primary means of managerial communication; on a typical day,
over three-fourths of a manager’s communications occur in face-to-
face interactions.
 Methods of Interpersonal Communication
1. Non-Verbal communication – transmitted without words.
 Body language includes gestures, facial expressions, and other body
movements that convey meaning
1. Verbal communication
 Oral communication – when communication was done by means of talks,
verbal discussions, speeches, orders, conferences, interviews, etc.
 written communication- communications by means of written symbols
(either hand written or printed)
 Organizational communication
 All the patterns, network, and systems of communications within an
organization
 Organizational communication focuses on:
 getting work done and meeting organizational goals
 change and adaptation
 social aspects and motivation of individuals
 Classification of organizational communication
1. Formal- communication takes place within prescribed organizational work
arrangements
 on the basis of direction formal communication divided into:
 Upward
 Downward
 lateral
 diagonal
2. Informal/Grapevine- communication not defined by the organization’s structural
hierarchy
 Downward Communication

 Flows from individuals in higher levels of the hierarchy to those in lower levels.
 used to inform, direct, coordinate, and evaluate employees
 The most common forms of downward communication are :
job instructions,
official memos,
policy statements,
procedures,
manuals
 Upward Communication

 Communication flowing from lower to higher levels in an organization

 it keeps managers aware of how employees feel about their jobs, their
coworkers, and the organization in general
 Some of the most common upward communication devices are:
 problems and exceptions
suggestion for improvements
 performance reports
 financial and accounting reports, and
 appeal or grievance procedures
 Lateral/Horizontal communication

 Communication that flows across functions

in an organization
 necessary for coordinating and integrating diverse organizational
functions.
 Peer-to-peer communication is often necessary for coordination and
can also provide social need satisfaction.
 Diagonal communication

 Communication that cuts across functions and levels in an

organization
 important when members cannot communicate through upward,
downward, or horizontal channels
 The Grapevine: An Informal Communication Channel

 A powerful means of communication that cuts across formal

channels of communication.
 Convey information that normally does not travel through the
organization’s formal channels.
 Managers must recognize that a grapevine that serves as a constant
source of rumors can be troublesome.
 Rumors are an everyday part of business and management
 Grapevine Cont’d
 The best that managers can hope for is that they can manage rumors
—keeping them from disrupting organizational activities—rather
than eliminate them.
 A rumor is an unverified belief that is in general circulation:
inside the organization (an internal rumor) or
in the organization’s external environment (an external rumor).
 Some grapevine rumors are true; some are not.
 Grapevine Cont’d
 Grapevine/Rumor can be both positive and negative
 Information passes quickly
 Can clarify message from formal channels
 Provides for employees’ social needs
 Messages can be distorted, abbreviated, exaggerated, or completely
inaccurate
 Often, individuals will attribute a rumor to a prestigious or
authoritative source to give the rumor more credibility
 Activity
• Subhash is a lower level manager. He stays at the shop floor. He oversees and guides the
workers, instructs them whenever required and ensures optimum utilisation of resources so
that the goals at the shop floor could be achieved. He is very hard working. He tries to stay
in touch with the workers on a regular basis. He has made a weekly advice taking
programme. This programme in which suggestions from workers are taken is very important
for creating a feeling of common group. He himself was a worker for 15 years before he
became a lower level manager. This is the reason why he knows everything about the
machines and situations on the shop floor. He gives guidance to the workers as they do their
job, tells them how to tackle the machines and continuously improve their output. Workers
are very friendly with him. He ensures that the workers do their work properly and gives his
approval or disapproval about their work on a continuous basis. The workers respect him.
He is acting as a role model to them and has motivated them to work more and more by
setting his own example. The middle level management is thinking of giving Subhash a
bigger role in future. Which element of directing is displayed by Subhash in
the above case?
Thank You!