Principles of management

1. UNIT 4
DIRECTING

2. DIRECTING
• Directing is defined as the process of instructing, guiding and inspiring
human factors in the organization to achieve organization objectives.
It is not only issuing orders and instructions by a superior his
subordinates but also including the process of guiding and aspiring
them to work effectively.
• Directing includes the following elements:
• (i) Leadership
• (ii) Motivation
• (iii) Communication

3. NATURE OF DIRECTING
• Activity initiation function
• Pervasive function
• Continuous activity
• Dual objective
• Flow from top to bottom level
• Delegate human function
• Creative activity
• Facilitates coordination

4. SCOPE OF DIRECTING
• Directing conveys management perspective of the organisation to the
individuals and motivates them to function in the desired way to
meet the organizational objective
• Directing integrates the employee's individual efforts to make it
effective to achieve the organisation objectives,
• Without having proper motivation, leadership and a communication,
individual's capability and potential may not be fully utilized.
• Directing with its elements provides the stability in the organisation
and maintains the balances in the different parts of the organisation.

5. MOTIVATION
• Management is the art of getting workdone by the subordinates in order to
attain the common goals of the organisation. Getting workdone is a
difficult task. For this purpose, the management should inspire and
motivate the people for the accomplishment of organisational.
• The word 'motivation' is derived from 'motive' which is an active form of a
desire or need which must be satisfied.
• Meaning:According to Koontz and O'Donnell, "Motivation is a general term
applying to the entire class of drives, desires, needs, wishes and similar
forces induce an individual or a group of people to work".

6. Nature of Motivation
• Motivation is an unending process because human needs are unlimited.
• Motivation is a psychological concept which generates within an individual.
It is an inducement of inner feeling of individual and it cannot be forced
upon from outside.
• Motivation is a behavioural concept that directs the human behaviour
towards certain goals.
• A person cannot be partially motivated because he is a self centered and
inseparable unit.
• Frustrated man who fails in satisfying his basic needs cannot be further
motivated until his basic needs are fulfilled.
• Motivation can be either positive or negative. Positive motivation implies
use of incentives, rewards etc. to satisfy human needs while the negative
motivation emphasize penalties, threatening etc

7. Motivation process
• Analysis of situation
• Preparing selecting and aping a set of appropriate motivating tools
• Follow-up
• Types of motivation
• Positive motivation
• Negative motivation
• Extrinsic motivation
• Intrinsic motivation or power motive

8. Motivational theories
Carrot and stick approaches of motivation
• The carrot and stick approaches are based on the old belief that the best way get work a person is
to put a reward (carrot) in front of him or to hold out the threat of punishment (stick) from
behind.
• Under this approach, employees who perform the task well are given rewards in the form of
bonus, pay raise, promotion etc.
• While employees avoid work, punishment such as demotion, termination from work transfer to
an unpleasant job, etc. are given.
• The following are some of the measures to make Carrot and Stick to be approached more
effective:
• Reward is a more effective motivator when it is directly linked wit performance.
• Punishment is more effective when the undesirable behaviour actually occurs
• Punishment should be used to modify the behaviour and to force the person to adapt the
desirable behaviour.
• The mix of reward and punishment should be there.

9. Mc-Gregor's Theory X and Theory Y
• Prof Douglas McGregor has developed a set of theories on the basis of hypotheses
relating to human behaviour. These theories are commonly known as –Theory X" and
"Theory Y
• 1. Theory –X
According to McGregor, theory X is based on the following assumptions of human nature
and behavior:
The average human dislikes to work. He will avoid work if it is possible
 Therefore, people must be controlled, directed and threatened with punishment to
make them work.
The average human being prefers to be directed. He avoids the responsibility. He has no
ambition in life. He wants only the job security.
An average man is inherently self-centered and indifferent to organisationa lgoals.
He is resistance to change by nature

10. Theory 'Y‘
Work is as natural as play or rest. The average human being has the
tendency to work.
External control and threat of punishment are not only the means of
reaching the objectives of organisation. Man will have self-direction
and control. By this, organisational objectives can be achieved.
 People will be committed to the objectives: if they are properly
rewarded.
Under proper conditions, the average human being accepts the
responsibility
 Large numbers of people are capable of solving organisational
problems in an organisation with high degree of imagination,
ingenuity and creativity.

11. Ouchi's Theory
• William Ouchi developed Theory Z after making a comparative study
of Japanese and American management practices. Theory Z has been
called a sociological description of the humanistic organisations.
• Japanese consensus management style based on the following
assumptions:
• (a) Employees want to build cooperative relationships with their
employers, peers, and other employees in the firms;
• (b) For this they require high degree of support in the form of secure
employment and facilities for development of multiple skills through
training and job rotation,
• (c) They value family life, culture and traditions, and social institutions
as much as material success,

12. Features of theory Z
• Mutual trust
• Strong bond between organization and employees
• Employee involvement
• Integrated organization
• Coordination
• Informal control system
• Human resource development

13. Dual model theory (Miles Theory)
• According to Raymond E. Miles, the managerial task is to integrate organisational
variable (goals, technology and structure) with human variables (capabilities,
attitudes, values, needs and demographic characteristics) into an effective and
efficient system.
• Traditional model: Its emphasis is on controlling and directing According to this
model, the members of the enterprise will meet specific goals if tasks and
procedures are specified and members are properly selected, trained and paid.
• Human relations model: This model gives an attention to social and egoistic
needs. fair treatment and pay are not only enough. There should be a sufficient
control and preventive steps are also taken to obtain the desired contributions of
enterprise members.
Human resource model: It is different that of above two. Under this model, the
manager is seen as a developer, well-wisher and facilitator who helps the
subordinates achieve performance aims. In this model, self-direction and self-
control are important.

14. Maslow's Hierarchy of Needs Theory
• Dr.Maslow was the pioneer in the proper classification of human
needs. Some of the salient features of this theory are follows:
• (1) Human likings are innumerable and never ending if one liking is
satisfied and another liking emerges in that place.
• (ii) Adult motives are complex. No single motive determines the
behavior rather a number of motives operate at the same time.
• (iii) Human needs form a hierarchy. Lower level needs must atleast
partly be satisfied before the higher level needs emerge.
• (iv) Satisfied needs do not motivate the workers. Only unsatisfied
needs induct the man to work hard.

16. • Physiological needs: Physiological needs are the biological needs
required to preserve the human life. These needs include needs for
food, clothing and shelter. These needs must be met at least partly
before the higher level needs emerge. These needs are the most
powerful motivating force than others.
• Safety needs: Once the physiological needs are satisfied, the safety
or security needs become predominant. They include:
• (i) Protection from physiological dangers (fire, accident,
• (ii) Economic security ( health, insurance),
• (iii) Desire for an oderly, predictable environment, and
• (iv) The desire to know the limits of acceptable behaviour.
•
• It also involves in a sense of protection against danger and threats.

17. • Social needs
• After the needs of the body and security are satisfied, then a sense of belonging and
acceptance becomes predominant in motivating behaviour. These needs are for love,
friendship, exchange of feelings and grievances, recognition, conversation,
belongingness, companionship etc.
• Esteem needs
• There are two types of esteem needs such as self-esteem and esteem of others. Self-
esteem needs include those for self-confidence, achievement, competence, self respect,
knowledge and for independence and freedom. The second group of esteem needs is
those which related to one's reputation needs for status, recognition, appreciation and
deserved respect of one fellow.
• Self-actualisation needs
• These needs are also called as self-realisation needs. Self-actualisation refers the desire
to become everything that one is capable of becoming For example, a doctor thinks that
he is capable of saving the life of a patient. Self-actualisation is a 'growth need.
• In above mentioned five needs, the first three needs (i.e. physiological needs, safety
needs and social needs) are regarded by Maslow as lower level needs. The remaining
two needs (i.e. Esteem and Self-actualisation needs) are regarded as higher level needs.

18. Herzberg’s theory- hygiene approach to
motivation

19. • According to Herzberg, maintenance or hygiene factors are necessary
to maintain a reasonable level of satisfaction among employees.
These factors do not provide satisfaction to the employees but their
absence will dissatisfy them. Therefore, these factors are called
dissatisfiers.
• On the other hand, motivational factors create the satisfaction to the
workers at the time of presence but their absence does not cause
dissatisfaction.

20. Vroom’s Expectation theory
• Developed by victor vroom
• It is atheory based on self interest wherin each individual seeks to
maximize his expected satisfaction
• Three elements
• 1. valance:
• People have preferences(valances) for various outcomes or incentives that
are potentially available to them. Valance refers the importance or
personal value that an individual places on the rewards which can be
achieved on the job.
• 2. Expectancy :
• It im

21. Needs of McClelland's Theory
• David C. McClelland and his associates of Harvard University proposed that the organisation offers an
opportunity to satisfy at least three needs,
• 1. Need for power (n PWR)
• It is the need to dominate, influence or control people. Power speaks about the ability to control the
activities of others to suit one's own purposes. People with a high need for power look for position of
leadership. They like to set goals, make decisions and direct activities. In a way, the n PWR helps in
understanding managers.
• 2. Need for Affiliation (n Aff)
• The need for affiliation is a social need, for companionship and support, and for developing meaningful
relationships with people. Persons who have a high need for affiliation view the organisation as a chance to
form new and satisfying relationships. They are motivated by jobs that it demands frequent interaction with
co-workers. Such people are not likely to succeed well at tasks that force them to work in isolation.
• 3. Need for achievement (n Ach)
• It is the need for challenge, personnel accomplishment and success in competitive situations. McClelland has
identified the four basic characteristics of high achievers.
 Take responsibility of finding solutions
 They like to take calculated risks and set morale goals
 They want concrete feedback on their performance
 Not motivated by money

22. Leadership
• Leadership is an integral part of management and plays a vital role in
managerial operation. Leadership exists in any type of organisation. If
there is any single factor that differentiates between successful and
unsuccessful organisations, it could be considered as dynamic and
effective leadership.
• Meaning and Definition of Leadership
• Koontz and O'Donnel have defined, "Leadership is the art of process
of influencing people so that they will strive willingly towards the
achievement of group goals".
• George R. Terry has defined, "Leadership is the activity of influencing
people to strive willingly for group objectives“

23. Importance of leadership
• Motivating employees
• Leader develops team work
• Better utilization of manpower
• Creating confidence to followers
• Directing group activities
• Building morale
• Maintaining discipline

24. Leadership qualities
• Honesty
• Confidence
• Patience
• Focus
• Dedication
• Consistency
• Motivate others
• Effective communication
• Multiplicity of roles
• Individuality
• Personal dignity

25. Leadership styles
• Autocratic or dictatorial leadership
• In this type of leadership, the leader takes all decisions without consulting subordinates. Full
authority is held himself alone. He loves power and never delegate authority. The subordinates
have to follow his directions without any question.
• (a) Strict autocrat: The leader follows autocratic styles in a strict sense. He follows the negative
motivation for getting work from subordinates.
• (b) Benevolent Autocrat: This leader also takes decisions himself but motivation styles is positive.
• (c) Incompetent Autocrat: Sometimes, leader adapts autocratic leadership style just to hide their
inabilities i.e., incompetence. But it cannot be used for a long time.

26. Participative or Democratic Leadership
• In this type of leadership, the subordinates are consulted and their
feedback is taken into decision making process. Decisions are taken
after group discussions. Therefore, the authority is decentralized.
The participative leader attaches high importance to both work and
people. He provides freedom of thinking and expression.
Participative leadership is best suited where the leadership truly
desires to hear the ideas of his employees before making decisions.
 organisation has communicated its goals and the objectives to the
subordinates and the subordinates have accepted them.
workers are reasonably knowledge and experienced.

28. Laissez-faire or free rein leadership
• A complete freedom is given to the subordinates so that they plan,
motivate, control and otherwise be responsible for their own actions.
Leader does not take part in decision making process. The authority is
completely decentralized.

29. COMMUNICATION
• Communication is the process of passing of information from one person
to another person. It should always be clear and understood by the person
who receives information.
• In our life, we are talking for nearly 27 years. This period is covering 10,000
books of 400 pages each. Usually, we spent up to 90% of working hours for
communicating information to others. Among this, 60% is for both talking
and listening, and remaining 20% to 30% for reading and writing.
• Communication Function in Organisations
• Communication is the number one tool in the organisation. It is the most
powerful tool and significant characteristic of man-kind.
• Success of any management depends more on their ability to communicate
with labour. Communication is the process of interchanging facts, view
points and ideas between persons placed in different positions by effective
communication

30. Importance of Communication
• For ensuring good coordination, communication is must. Most of problems for
human occur due to lack or insufficient communication. Communication is the
process of initiating, ransmitting and receiving information. Among these three
stages, if any one lacks, definitely it will lead to misunderstanding of concept.
• Purpose of Communication
• Communication is necessary to integrate the managerial functions internally.
• Need for communication:
• 1. To establish and spread goals of an enterprise widely.
• 2. To develop plans for further achievement.
• 3. To organize human and other resources in the most effective and efficient way.
• 4. To select, develop and apprise the members of the organisation.
• 5. To lead, direct, motivate and create a good working environment.
• 6. To control and maintain the uniform performance

32. Process of Communication
Sender
Communication channels
Symbols
Receiver
Noise and feedback in communication

34. • Schematic diagram of a communicating model is shown in above
Figure.
• The sender formats the message what he things before transmitting it
to the receiver.
• The formatted message is encoded in their own technical language so
that other people those who are not involved cannot understand it.
• The encoded message is transmitted to the receiver where it is
decoded for understanding purposes.
• The response from the receiver to the sender is an important
feedback since it indicates to the sender whether the message has
been correctly received and understood.

35. Communication Flow in the Organisation
• Normally, communication flows in three directions.
• 1. Downward communication
• 2. Upward communication
• 3. Horizontal or Lateral communication
• Downward communication
• In this type, the information is sent from the higher level to the lower level
i.e. from superior to subordinates. The communication may be oral or
written type. Oral communications are instructions, speeches, meetings,
telephone, loudspeakers and written communications are memoranda,
letter, handbooks, pamphlets, policy statements, procedures and electronic
news displays.

37. Upward communication
• upward communication flows from subordinates to supervisor as per
organisational hierarchy.
• The top level management can know about the production performance,
marketing information and financial data and so on..
• This is applicable for participative and democratic organization.

38. Horizontal or lateral communication
• The information is passed between same levels of organisation. This type of
communication is mainly implemented in speed-flow information.
• It helps to better understanding of information and to coordinate towards the
management goal.
• The information's are mutual consultants, routine information's, discussions etc.
Here, the chain of command is not followed by information.

39. Communication Network
• A network is a structured fabric of the organisation made up of
system lines or channels are interconnected. These channels or lines
are used to pass information serially from one person to another.
• The communicating networks are as follows:

40. • 1. Simple chain network
• It exists between a superior and his subordinate. communication flows downward of
upward through each successive level. As it flows orderly through the chain, the control
will be easier. But, it is time consuming.
• 2.Wheel network
• Four persons (subordinates) can communicate with only a central person of Subordinates
are not allowed to communicate themselves. Coordination of subordinates is very much
difficult superior.
• 3. Circular network
• Here, communication moves in a circle. So atleast, each person can communicate with
his nearest neighbours of two only. But, communication flow is slow.
• 4. Free flow
• In the above mentioned network types, there are restrictions for communications and
delay in decision making. But in free flow network, everybody is allowed to talk freely
with others. Communication flow is fast but coordination problem will exist. It is allowed
in free-form or task force organisations.
• 5. Inverted V
• A subordinate is allowed to communicate with his immediate superior as well as his
superior's superior. In such a network, communication flow is faster when compared to
other methods.

41. Methods of Communication
• Generally, communication can be broadly classified into two types as follows
• (1) Formal communication
• (2) Informal communication
• 1. Formal communication
• Formal communication flows through a proper channel. It refers the way in which the information
is sent and it has a recognized position in organisational structure. It is also named as "Through
proper channel". It regulates the flow of communication and it ensures smooth, accurate and
timely passing of information.
• This type of communication can be done in two methods.(1) Written communication(ii) Oral
communication.
• (1) Written communication: The passing of information in writing is done from one person to
another i.e. circulars, leaflets, posters etc.
• Advantages:
• It provides a permanent record for further reference.
• It is very suitable for lengthy messages.
• It is tangible and verifiable.
• It is the one only method for sending messages to far-off places.

42. • Oral communication:
• In this method, the information is passed on orally from one person to another person. It
can be done by face to face in meetings or by telephone, MMS, Video conferencing etc.
• Advantages:
• 1. Doubts are clarified immediately.
• 2. Feedback is immediately known.
• 3. It provides a team spirit.
• 4. Personality of the sender influences the process of communication.
• 5. It is the quick and effective method.
• Disadvantages:
• 1. There is no permanent record of the communication.
• 2. It is more likely to be forgotten or distorted.
• 3. It is likely to be misunderstood and noisy.
• 4. It is not suitable for lengthy messages.
•

43. Informal communication
• People who know each other in the organisation talk together informally. Whenever they meet each other,
they normally talk about the happenings in the organisation known as grapevine.
• The two types of informal communication are carried out as follows:
• 1. Work related
• 2. People related
• This informal communication exists outside the official network but continually interacts with the formal
communication. It is structureless and information passes through it in all directions.
• Characteristics of informal communication are givenbelow:
• 1. It is mostly oral.
• 2. It reaches people faster.
• 3. Mostly, it is found to be accurate.
• 4. It helps the management to know the reactions of employees while making critical decisions.
• Advantages:
• 1. It is more flexible and much faster when compared to formal communication.
• 2. It is much freer to lead less distortion.
• 3. It carries ready conviction and acceptance.

44. Barriers to Effective Communication
• The message sent by the sender to the receiver which may not be
effectively understood by the receiver in the same sense. It is due to
several reasons. Some problems may arise in its encoding and
decoding or communication channel. So, the barriers to effective
communications in an organization may be broadly classified into
following groups:
• 1. Physical barriers
• 2. Socio-psychological or personal barriers
• 3. Organisational barriers
• 4. Semantic barriers
• 5. Mechanical barriers.

45. Rules for Effective Communication
• 1. The information should be simple and clear.
• 2. The information should be in known language to the receiver.
• 3. The sender should use correct communicating channel. For recording
purpose, it should be in written and oral method for fast communication.
• 4. In written communication, principle of line authority should be followed.
• 5. The information should contain adequate information.
• 6. Communication should be sent and reached timely.
• 7. Communication should be checked through feedback.
• 8. Informal communication should be sent judiciously.

46. Communication and IT
• Various electronic devices slowly improve communication. This electronic
equipment includes mainframe computers, mini-computers, personal computers,
tablet PCs, laptops, electronic mail systems and electronic type writers, mobile
phones
• Telecommunication is an emerging technique. Most of the company has
implemented this technique.
• Examples:
• (1) A large bank supplies hardware and software to its customers.
• (2) Several banks now make bank-by-phone (Mobile banking) services available
even to individuals.
• (3) E-mail service making easy delivery of documents.
• (4) Computerized airline reservation system facilitates making travel
arrangement.

47. • Teleconferencing is an audio in combination with still video. This method is very much
useful in showing charts or illustrations during discussion.
• Another recent system is video conferencing which uses high speed internet services to
deliver seamless delivery of audio and video for both the end of communication.
• Smart phone is yet another recent development which made communication extremely
easy by utilizing social media such as MMS, Skype, Facebook, Whatsapp, Twitter etc.
• Advantages:
• (1) It saves travel expenses and travel time.
• (2) There is no need to make travel plans long in advance.
• Disadvantages
• 1) The equipment is subject to breakdown.
• (2) It is a poor substitute for meeting with other persons

48. JOB SATISFACTION
• The term 'job satisfaction' refers to an employee's general happiness with his or her job. Locke
described job satisfaction is "a pleasurable or positive emotional state resulting from the
appraisal of one's job or job experiences".
• Therefore, job satisfaction is the amount of overall positive effect or feelings that individuals have
towards their job. Caldur and Schurr in 1981 suggested that there are three different approaches
to evaluating job satisfaction.
• The first approach is that work attitudes such as job satisfaction, job performance are
dispositional in nature, i.e., they are stable, positive of negative disposition learned through
experiences.
• The second approach is the social information processing model, whichsuggests that job
satisfaction and other work place attitudes are developedor constructed out of experiences and
information provided by others at thework place.
• The third approach is the 'information processing model', which is based on the accumulation of
cognitive information about the work place and one's job. In a sense, this is the most obvious
approach, as it argues that a person's job satisfaction is influenced directly by the characteristics
of their job.

49. Various elements of job satisfaction

50. • Importance of Job Satisfaction
• Obviously, job satisfaction significantly contributes to employee
productivity and morale. An organization can be substantially
benefited if it develops general attitudes of its employees that can
effectively contribute to job satisfaction. If employees are satisfied,
turnover and absenteeism will be less and productivity will be more,
• Factors relating to job satisfaction
• Personal factors
• Job factors
• Organizational factors

51. Measures to increase job satisfaction
• Job rotation
• Job enrichment
• Job enlargement
• Working conditions
• Wages
• Grievance handling
• Satisfactory hours of work
• Adequate rest pausing
• Freedom of work
• Creative suggestion
• Proper delegation of work

52. Job Enrichment
• Job enrichment is a non-financial technique of motivation. It has been derived from
Herzberg's two factor theory of motivation. It is therefore based on the assumptions that
in order to motivate personnel, the job itself must provide opportunities for
achievement, recognition, responsibility, advancement and growth
• The job is designed in such a manner to become more interesting and challenging to the
job performer. According to Robert N. Ford, job enrichment is concerned with designing
jobs which include a variety of work content require a higher level of knowledge and skill,
give the worker more autonomy and responsibility for planning, directing and controlling
his own performance and providing the opportunity for personal growth and meaningful
work
• In job enrichments, a job may be enriched by variety of the following steps:
• 1. Giving workers more freedom in deciding about such things as work, sequence and
pace or the acceptance or rejection of materials.
• 2. Giving workers feeling of personal responsibility for their tasks.

53. • 3. Encouraging participation of subordinates and interaction between workers
• 4.Taking steps to make sure that workers can see how their tasks contribute to a
finished product and the welfare of an enterprise..
• 5 Giving people feedback on their job performance, preferably before their
superiors get it.
• 6. Involving workers in the analysis and change of physical aspects of the work
environment such as layout of plant, temperature, lighting and cleanliness.
• Advantages of job enrichment
• Increases the productivityReduces the absenteeism and turnover
• Improves worker's morale
• Improves decision making ability> Reduces work load of superiors