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Mgnt 101 hardcopy

  1. 1. Group 2 Aizell BernalChristian Jayson Cruz Julia Paula Sunga Juan Paulo SungaMrs. Elizabeth Aragon
  2. 2. OUTLINEI. Directing Definition of directingII. Importance of DirectingIII. Characteristics of Directing Pervasive Function Continuous Activity Human Factor Creative Activity Executive Function Delegate FunctionIV. Elements of Direction Communication Supervision Motivation LeadershipV. Maslow’s Theory of Motivation - Hierarchy of Needs Self-Actualization Esteem Social Safety PhysiologicalVI. Power and Influence in Organization Classification of Power 1. Legitimate Power 2. Expert Power 3. Referent Power 4. Reward Power 5. Punishment Power 6. Relationship PowerVII. Directing and LeadershipVIII. Case Study
  3. 3. Directing  Directing is the process through which a manager communicates with and influences other members of the organization in the pursuit of company objectives.  Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals.  The managerial function of directing is like the activities of a teacher in a classroom. In order to teach, a teacher has to guide his students, maintain discipline, inspire them and lead them to the desired goal. It is a very important function in the management of any enterprise. It helps the managers in ensuring quality performance of jobs by the employees and achievement of organizational goals.Importance of Directing Plans remain mere plans unless they are put into action. In the absence ofdirection, subordinates will have no idea as to what to do. They will probably notbe inspired to complete the job satisfactorily. Implementation of plans is, thus,largely the concern of directing function. As a function of management, directingis useful in many ways.  It guides and helps the subordinates to complete the given task properly and as per schedule.  It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do the best.  It helps in maintaining discipline and rewarding those who do well.  Directing involves supervision, which is essential to make sure that work is performed according to the orders and instructions.  Different people perform different activities in the organization. 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
  4. 4. important. It thus, helps to integrate the various activities and so also the individual goals with organizational goals.  Directing involves leadership that essentially helps in creating appropriate work environment and build up team spirit.Characteristics of Directing 1. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates. 2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. 3. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behavior is unpredictable, direction function becomes important. 4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless. 5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise; a subordinate receives instructions from his superior only. 6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behavior is unpredictable by nature and conditioning the people’s behavior towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behavior.Elements of Direction 1. Communication 2. Supervision 3. Motivation 4. Leadership These are the four essential elements of directing. We shall discuss about the nature and significance of each of these components.  Communication Communication is a basic organizational function, which refers to the process by which a person (known as sender) transmits information or messages to another person (known as receiver). The purpose of communication in organizations is to convey orders, instructions, or information so as to bring desired changes in the performance and or the attitude of employees. In an organization, supervisors transmit information
  5. 5. to subordinates. Proper communication results in clarity and securing thecooperation of subordinates. Faulty communication may create problemsdue to misunderstanding between the superior and subordinates. Thesubordinates must correctly understand the message conveyed to them.Thus, in communication: o There are two parties, one is known as the sender and the other is known as receiver. o There is a message sent by the sender to the receiver. o The receiver receives the message and understands it. Communication does not always flow from supervisor tosubordinate. It can also be from a subordinate to a supervisor. Forexample, subordinates can pass information to the supervisor about thefaults/problems at the assembly line. Thus, it is a two way process.Importance of Communication Communication in organizations is so important that it is said to bethe lifeblood of the organization. Success of direction largely depends onhow effectively the manager can communicate with his subordinates.Proper communication in organizations at all levels and between all levelscan improve both the quantity and quality of output. Some of the benefitsof communication are as follows:  Communication helps employees to understand their role clearly and perform effectively.  It helps in achieving co-ordination and mutual understanding which in turn, leads to industrial harmony and increased productivity.  Communication improves managerial efficiency and ensures cooperation of the staff.  Effective communication helps in molding attitudes and building up employees’ morale.  Communication is the means through which delegation and decentralization of authority is successfully accomplished in an organization.
  6. 6. Types of Communication In an organization communication can be made from supervisor tosubordinate, from subordinate to supervisor and also between twosupervisors at the same level. Communication can be done orally or inwriting or even through gestures. Communication may be made throughformal or informal channels. Thus, the various types of communicationare as follows: On the basis of On the basis of On the basis of mode channel used direction used 1. Formal 1. Upward 1. Verbal a. Oral b. Written 2. Informal 2. Downward 2. Non-verbal a. Gestural 3. Horizontal 4. DiagonalFormal and Informal Communication The path through which information flows is called channel ofcommunication. In every organization we have both formal and informalchannels. The paths of communication which are based on relationshipestablish formally by management are the formal channels. For example,the General Manager communicates a decision to the production managerwho may then issue orders or instructions to the foremen. It may also belike a worker applying to his supervisor for a loan from the GPF account.He/she forwards it to the Manager Accounts who finally sends it to theGeneral Manager (Finance) for approval. Communication, which takes place on the basis of informal orsocial relations among staff, is called informal communication. Forexample, any sharing of information between a production supervisor andan accountant, as the y happen to be friends or so. Mostly informalchannels are used due to friendly interaction of members of anorganization. In fact, it may be purely personal or related to organizationalmatters.Upward, Downward, Horizontal and Diagonal Communication On the basis of the flow or direction of communication inorganizations, it can be classified as upward, downward, horizontal or
  7. 7. diagonal. When employees make any request, appeal, report, suggest orcommunicate ideas to the superior, the flow of communication is upward(from bottom to top). For instance, when a typist drops a suggestion in thesuggestion box, or a foreman reports breakdown of machinery to thefactory manager, the flow of communication is upward. Upwardcommunication encourages employees to participate actively in theoperations of their department. They get encouraged and their sense ofresponsibility increases when they are heard by their supervisors aboutproblems affecting the jobs. When communication is made from superiors down the hierarchy itis called a downward communication. For instance, when superiors issueorders and instructions to subordinates, it is known as downwardcommunication. When the General Manager orders supervisors to workovertime, the flow of communication is downward (from top to bottom).Similarly, communication of work assignments, notices, requests forperformance, etc. through bulletin boards, memos, reports, speeches,meetings, etc, are all forms of downward communication. Communication can also be amongst members at the same level inthe organization. For instance, production manager may communicate theproduction plan to the sales manager. This is known as horizontal flow ofcommunication. Here, the communication is among people of the samerank and status. Such communication facilitates coordination of activitiesthat is interdependent. When communication is made between people who are neither inthe same department nor at the same level of organizational hierarchy, itis called diagonal communication. For example, cost accountant mayrequest for reports from sales representatives not the sales manager forthe purpose of distribution cost analysis. This type of communication doestake place under special circumstances.Verbal and Non-verbal Communication On the basis of the mode used, communication may be verbal ornon-verbal. While communicating, managers may talk to theirsubordinates either face to face or on telephone or they may send letters,issue notices, or memos. These are all verbal communication. Thus, theverbal modes of communication may be oral and written. Face to facecommunication, as in interviews, meetings and seminars, are examples of
  8. 8. 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. Sometimes verbal communication is supported by non-verbal communication such as facial expressions and body gestures. For example, wave of hand, a smile or a frown etc. This is also termed as the gestural communication. Supervision After the employees have been instructed regarding what they have to do and how to do, it is the duty of the manager to see that they perform the work as per instructions. This is known as supervision. Managers play the role of supervisors and ensure that the work is done as per the instructions and the plans. 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 have understood and follow these fully.  Ensures that subordinates have the required facilities to perform their jobs.  Keeps a watch and guides the activities of subordinates in performing their jobs.  Broadens the horizon of his subordinates by making them aware of the wider aspects of their day-to-day work.  Coordinates the work of different subordinates under him.  Detects errors and omissions and ensures their rectification. Though supervision is required at all levels of management, it is of great importance at the operational level, at the level of first line supervisor. Managers at this level devote maximum time in supervising the work of subordinates. Though the top or middle level managers also supervise the work of their subordinate managers, but it is the first line supervisors who are in direct and constant touch with operatives, workers in the factory and clerical staff in the office. Thus, they are directly responsible for getting the work done through most of the employees in an organization.
  9. 9. Importance of Supervision From what has been said about supervision, it must be clear to you that supervision is of great significance in getting the work done as per plans and as scheduled. On the basis of the influence on the work at operational level and human approach to the problems of workers, the supervision can ensure workers cooperation and support in achieving organizational objectives. Supervisors are the key people among managers at different levels. They are the link between the top and middle management and the workers. Take, for example, the foreman of the factory or the office superintendent in the office. Both of them are members of the management team, and are in direct contact with operatives in the workshop and clerical staff in the office. They are the mouthpiece of management for communicating its ideas, plans and policies to the workers and employees. At the same time, they have to play the role of principal spokesmen of their subordinates to communicate their feelings and grievances to the management. Thus, it is only the supervisor who, as a member of the management team, is capable of developing links to workers. Supervisors are expected to maintain the best and friendly relations with their seniors as well as with the workers and enjoy the trust and confidence of both management and operatives. Motivation 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 is forces that inspire a person at work to intensify his willingness to use the best of his capability for achievement of specify objectives. It may be in the form of incentives like financial (such as bonus, commission etc.) or, non-financial (such as appreciation, growth etc.), or it could be positive or negative. Basically, motivation is directed towards goals and prompt people to act. Importance of Motivation While performing a job two things are required. The ability to work and the willingness to work. Without willingness to work, ability to work cannot produce results. The importance of motivation lies in converting this ability to work into willingness to work. Performance depends on
  10. 10. ability as well as willingness; and willingness depends on motivation. Thus, motivation is a key element in directing people to do the job. Some of the other benefits or importance of motivation are:  With proper motivation there can be maximum utilization of the factors of production like men, money, material etc.;  If employees are motivated it will reduce employee turnover and absenteeism.  Motivation fosters a sense of belongingness among the employees towards the organization and also improves their morale.  Motivation helps in reducing the number of complaints and grievances. The wastage and accident rate also come down.  With proper motivational techniques management can attract competent and best quality employees. 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 organization 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. Now he is said to be leader as he is able to influence a group of workers who followed him. In practice, the managers have to guide and lead their subordinates towards the achievement of goals, and so, to be an effective, a manager has to be a good leader. Leadership is the process, which influences the people and inspires them to willingly accomplish the organizational objectives. The main purpose of managerial leadership is to get willing cooperation of the workgroup in pursuit of the goals. Importance of Leadership The objectives of any organization can only be fulfilled if its employees are working towards accomplishment of such objectives. To make people work in the desired manner, proper instructions and guidance are necessary. And this direction process becomes effective when the persons who give such direction have leadership qualities.
  11. 11. Leadership is essential in functioning of any organization and its importance and benefits are varied. Some of these importances are:  Leadership improves the performance of the employees. Leaders can motivate the followers to work and thereby increase their performance level.  With continuous support and guidance, leaders are able to build confidence among the followers, thereby increasing speed and accuracy and decreasing wastage.  With friendly and cooperative efforts the leader is able to build employees’ morale which in turn contributes to higher productivity. Maslow’s Theory of Motivation – Hierarchy of Needs The basis of Maslows motivation theory is that human beings are motivated byunsatisfied needs, and that certain lower factors need to be satisfied before higherneeds can be satisfied. According to Maslow, there are general types of needs(physiological, survival, safety, love, and esteem) that must be satisfied before a personcan act unselfishly. He called these needs "deficiency needs." As long as we aremotivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick oract evilly. As a result, for adequate workplace motivation, it is important that leadershipunderstands the needs active for individual employee motivation. In this manner,Maslows model indicates that fundamental, lower-order needs like safety andphysiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in thefollowing hierarchical diagram, sometimes called Maslows Needs Pyramid or
  12. 12. Maslows Needs Triangle, after a need is satisfied, it stops acting as a motivator andthe next need one rank higher starts to motivate as it attain psychological precedence.  Self-Actualization Self-actualization is the summit of Maslows motivation theory. It is about the quest of reaching ones full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have motivators such as:  Truth  Justice  Wisdom  Meaning Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.  Esteem Needs After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are those such as reputation and recognition. Some examples of esteem needs are:  Recognition (external motivator)  Attention (external motivator)  Social Status (external motivator)  Accomplishment (internal motivator)  Self-respect (internal motivator) Maslow later improved his model to add a layer in between self- actualization and esteem needs: the need for aesthetics and knowledge.  Social Needs Once a person has met the lower level physiological and safety needs, higher level motivators awaken. The first level of higher level needs is social needs. Social needs are those related to interaction with others and may include:  Friendship  Belonging to a group  Giving and receiving love
  13. 13.  Safety Needs Once physiological needs are met, ones attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:  Living in a safe area  Medical insurance  Job security  Financial reserves According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.  Physiological Needs Physiological needs are those required to sustain life, such as:  Air  Water  Food  Sleep According to this theory, if these fundamental needs are not satisfied, then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.Applying Maslows Needs Hierarchy - Business Management Implications If Maslows theory is true, there are some very important leadershipimplications to enhance workplace motivation, and you dont need a masters inapplied psychology, for it to be evident. There are employee motivationopportunities by motivating each employee through their style of management,compensation plans, role definition, and company activities.  Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy lifes essentials.  Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.  Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.  Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.  Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.
  14. 14. Remember, everyone is not motivated by same needs. At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employees needs currently being pursued. In order to motivate their employees, leadership must be understand the current level of needs at which the employee finds themselves, and leverage needs for workplace motivation.Power and Influence in Organization The success of a manager in influencing others in the organization is notdetermined solely by his skill in communicating, in the technical sense. It is alsomuch affected by the amount of power he has in the organization. Power hasbeen defined as the potential to influence the actions of another person in thedirection desired by the influencer. The capacity to influence, or power, that aperson in the organization has is determined by many factors, the formalauthority of his position being only one of these. Below is a classification ofpower on the basis of its source: 1. Legitimate Power – This power comes by virtue of a person’s occupying a position in an organization. As an example, the school teacher is generally expected to decide what subject matter should be discussed, in what order, using what teaching method. 2. Expert Power – This is capacity to influence which arises from expert knowledge that the influencer has. As an example, we generally do what a doctor tells us to do when we are suffering an ailment, even though the doctor is not our superior in the organization. 3. Referent Power – This is power that comes by virtue of some personal characteristic (“Charisma”) of the person which others identify with. Before the February revolution, Cory Aquino could move hundreds of thousands Filipinos to boycott certain business establishments even though she occupied to position in government at that time. 4. Reward Power – This is power that comes by virtue of a person’s ability to give or withhold resources which are valued by others. Thus, many politicians in our country have power which results from their ability to dispense patronage. 5. Punishment Power – Closely related to Reward Power, this is power which comes from the capacity to deprive a person of something of value. Thus, a robber with a gun over our head has power over us. 6. Relationship Power – This is power which comes from a system of informal personal obligations which has been built up between people. In the Philippines, Utang na Loob and long standing family alliances
  15. 15. (especially in the rural areas) are ready examples of this source of influence. It will be noted that the three of the above sources of power normallyattach to managerial position in most organizations. Thus, a person occupying asupervisory position has legitimate power, reward power (ex. Recommendationsfor bonuses, promotions, citation, etc.), and punishment power (reprimand,transfer, demotion, etc.), over his subordinates. The other three sources of powerdescribed above, on the other hand, attach not to the position, but to the personhimself. Thus, the potential for influence of a manager in an organization isdetermined both by his position and his personal characteristics. It is important to understand the non-position based sources of influencein organizations for several reasons. One is that the continuous exercise ofposition based power, especially punishment power, to influence others cangenerate resistance over time. People do not generally enjoy being ordered to dothings all the time. Secondly, subordinate actions based on commitment ratherthan mere compliance is often necessary, especially if the manager expects thesubordinate to exercise initiative and imagination in implementing his directives.Thirdly, managers are dependent in varying degrees on other persons in theorganization over whom they exercise no positional power. For example, thesales manager may need the cooperation of the production manager to makespecial accommodations to a client whom he values. In such cases, influencecan still be exercised by a manager based on non-positional power. Thus, thecultivation of the various sources of power increases a manager’s repertoire ofinfluence modes and increases his flexibility in exercising his directing function.Directing and Leadership The discussion of position and non-position based influence in anorganization opens the way to a discussion of manager’s leadership function andstyle. Clearly, the term leadership connotes more than just the ability to influenceothers through compulsion. Because of the great difference that a manager’sleadership style can make in terms of the performance of his subordinates.
  16. 16. Case Study METRO MANILA UNIVERSITY On April 2, 1990, Mr. Rene Roces, Vice President for Finance of MetroManila University (MMU), was reading the Balance Sheet of March 1990. Thiswas the first time that quarterly financial statements were prepared for MMU- ahandiwork of Mr. Aragon, recently appointed Vice President for Administration.While reviewing the financial statements, however, Mr. Roces noticed that thecash balance was about 50 million so he immediately called Mr. Aragon to ameeting. “Why should the University hold such a large amount of cash?Shouldn’t we invest more in Treasury bills that yield at least 5% more thansavings accounts, Mr. Roces asked. Mr. Aragon was surprised by this questionand being relatively new on the job, requested some time to study the matter.MR. ARAGON Roy Aragon, 32 years old, was a graduate of MMU. He had been teachingin the College of Engineering for ten years until he was appointed VP forAdministration upon the retirement of the previous incumbent in December,1989. Being somewhat young to be Vice President at MMU, he took his newduties seriously. Among the innovations he had pushed for was the preparationof quarterly financial statements of MMU. Previously, the financial statements ofthe university were prepared only at the end of the year.MEETING WITH CHIEF ACCOUNTANT AND CASHIER Mr. Aragon decided to hold a meeting with the Chief Accountant and theCashier concerning the cash problem. The two officers were older than Mr.Aragon and had served MMU longer. During his first months on the job, Mr.Aragon was impressed by his two subordinates whom he found to beindependent minded, professional, and very knowledgeable about the financialaffairs of MMU. During the meeting, the Cashier explained that funds were kept in savingsaccounts and not in higher yielding securities like Treasury Bills because thelatter felt that he needed to keep cash for unforeseen payments. According to theCashier, the academic units are allocated their budgets at the start of the year.“Once they get their budgets, they assume that we have the cash to be spent bythem anytime,” the Cashier continued. The Chief Accountant, however, informed Mr. Aragon that cashdisbursements for certain accounts had a more or less regular pattern. “Forexample, Trust funds for Scholarships and Professorial Chairs should beinvested in higher yielding securities because these funds have definite
  17. 17. schedules for payment,” the Chief Accountant said. The Cashier did not arguewith the Chief Accountant’s statement, yet the former insisted that cashdisbursements are impossible to predict so that funds should not be “locked-in”investments in securities even for 30-day period. “The practice of keeping ourfunds in a savings account is a long standing practice and Mr. Tirona (Aragon’spredecessor) had never complained about it,” the Cashier said. Since it was getting late and no agreement appeared in sight, Mr. Aragondecided to adjourn the meeting and continue discussion on the matter at anothermeeting the following week. After the Cashier and the Chief Accountant had left the room, Mr. Aragonwondered why the Cashier was objecting to the idea of investing part of theUniversity’s funds in higher yielding securities, an idea which he personallyconsidered to be meritorious. Mr. Aragon realized that as Vice President forAdministration, he had the authority to make changes in the cash managementpractices of MMU. At the same time, he realized that the Cashier was one of themost senior and highly respected members of management at MMU. He was notsure what he would do if the Cashier continued to object to the proposed changein the coming second meeting.
  18. 18. Reference Fundamentals of Management By: Rafael A. Rodriguez and Erlinda S. Echanis