Mrs. Elizabeth Aragon
• Definition of Directing
II. Importance of Directing
III. Characteristics of Directing
IV. Elements of Direction
V. Maslow’s Theory of Motivation - Hierarchy of Needs
VI. 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 Power
VII. Directing and Leadership
VIII. Case Study
•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 the heart of
•Importance of Directing
•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.
•Different people perform different
activities in the organization.
•Directing involves leadership that
essentially helps in creating appropriate
work environment and build up team spirit.
Communicationis 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).
Importance of Communication
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.
Types of Communication
1. Formal and Informal Communication
2. Verbal and Non-verbal Communication
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
Functions of Supervisor
•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
subordinates under him.
•Detects errors and omissions and ensures
Motivation is one of the important
elements of directing.
It requires manager to inspire or induce
the employees to act and get the expected
Importance of Motivation
•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 helps in reducing the number
of complaints and grievances.
-is the ability to persuade and motivate
others to work in a desired way for achieving
-is the process, which influences the people
and inspires them to willingly accomplish
the organizational objectives.
Importance of Leadership
•Leadership improves the performance of the
•With continuous support and guidance,
•With friendly and cooperative efforts
•Maslow’s Theory of Motivation –
Hierarchy of Needs
-It is about the quest of reaching one's full
potential as a person.
Internally motivating esteem needs are
those such as self-esteem, accomplishment,
and self respect.
External esteem needs are those such as
reputation and recognition
•Recognition (external motivator)
•Attention (external motivator)
•Social Status (external motivator)
•Accomplishment (internal motivator)
•Self-respect (internal motivator)
-are those related to
interaction with others and may
-in order to be free from the threat of
physical and emotional harm.
Such needs might be fulfilled by:
•Living in a safe area
-are those required to sustain
life, such as:
Applying Maslow's Needs Hierarchy Business Management Implications
•Physiological Motivation: Provide ample breaks
for lunch and recuperation and pay salaries that
allow workers to buy life's essentials.
environment which is safe, relative job security,
and freedom from threats.
•Social Needs: Generate a feeling of acceptance,
belonging, and community by reinforcing team
•Esteem Motivators: Recognize achievements,
assign important projects, and provide status to make
employees feel valued and appreciated.
meaningful work assignments which enable
innovation, creativity, and progress according to
Power and Influence in Organization
Power has been defined as the potential to influence the
actions of another person in the direction desired by the
1. Legitimate Power – This power comes by virtue
of a person’s occupying a position in an organization
2. Expert Power – This is capacity to influence which
arises from expert knowledge that the influencer has.
3. Referent Power – This is power that comes by
virtue of some personal characteristic (“Charisma”)
of the person which others identify with.
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.
5. Punishment Power – this is power which
comes from the capacity to deprive a person of
something of value.
6. Relationship Power – This is power which
comes from a system of informal personal
obligations which has been built up between
•Directing and Leadership
The discussion of position and non-position
based influence in an organization opens
the way to a discussion of manager’s
leadership function and style.
On April 2, 1990, Mr. Rene Roces, Vice President for
Finance of Metro Manila University (MMU), was
reading the Balance Sheet of March 1990. This was
the first time that quarterly financial statements were
prepared for MMU- a handiwork of Mr. Aragon,
recently appointed Vice President for Administration.
While reviewing the financial statements, however,
Mr. Roces noticed that the cash balance was about
50 million so he immediately called Mr. Aragon to a
meeting. “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 than
savings accounts, Mr. Roces asked. Mr. Aragon
was surprised by this question and being relatively
new on the job, requested some time to study the
Roy Aragon, 32 years old, was a graduate of
MMU. He had been teaching in the College of
Engineering for ten years until he was appointed
VP for Administration upon the retirement of the
previous incumbent in December, 1989.
Being somewhat young to be Vice President at
MMU, he took his new duties seriously. Among the
innovations he had pushed for was the preparation
of quarterly financial statements of MMU.
Previously, the financial statements of the
university were prepared only at the end of the
MEETING WITH CHIEF ACCOUNTANT AND
Mr. Aragon decided to hold a meeting with
the Chief Accountant and the Cashier 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 be independent minded, professional,
and very knowledgeable about the financial affairs
During the meeting, the Cashier explained that
funds were kept in savings accounts and not in
higher yielding securities like Treasury Bills
because the latter felt that he needed to keep
cash for unforeseen payments. According to the
Cashier, 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 by them anytime,” the Cashier
The Chief Accountant, however, informed Mr.
Aragon that cash disbursements for certain
accounts had a more or less regular pattern. “For
example, Trust funds for Scholarships and
Professorial Chairs should be invested in higher
yielding securities because these funds have
definite schedules for payment,” the Chief
The Cashier did not argue with the Chief
Accountant’s statement, yet the former insisted
that cash disbursements are impossible to predict
so that funds should not be “locked-in”
investments in securities even for 30-day period.
“The practice of keeping our funds in a savings
account is a long standing practice and Mr. Tirona
(Aragon’s predecessor) had never complained
about it,” the Cashier said.
Since it was getting late and no agreement
appeared in sight, Mr. Aragon decided to adjourn
the meeting and continue discussion on the matter
at another meeting the following week.
After the Cashier and the Chief Accountant had left
the room, Mr. Aragon wondered why the Cashier
was objecting to the idea of investing part of the
University’s funds in higher yielding securities, an
idea which he personally considered to be
Mr. Aragon realized that as Vice President for
Administration, he had the authority to make
changes in the cash management practices of
MMU. At the same time, he realized that the
Cashier was one of the most senior and highly
respected members of management at MMU. He
was not sure what he would do if the Cashier
continued to object to the proposed change in the
coming second meeting.