CHAPTER SIX LEADING/ DIRECTING FUNCTION Learning Objectives:  To understand the meaning and nature of direction.  Present leadership theories and styles.  Present motivation theories.  Discuss the meaning and importance of communication.  Understand the types and forms of communication.  Understand the meaning, importance and techniques of coordination 5.1. INTRODUCTION People are the most important resource in an organization. To achieve organizational objectives HR should be directed towards the accomplishment of goals. Hence, the successful achievement of organizational objectives is greatly the manifestation of the managers’ ability to lead employees. 5.2. MEANING AND NATURE OF DIRECTION Direction is a vital managerial function, performed by every manager. Whenever decision is taken, it must be converted into action by proper implementation. Otherwise, it is of no use. Effective implementation of a decision is made possible by directions. Planning, organizing and staffing are concerned only with the preparation for work performance and it is the direction which stimulates the organization and its staff to execute the plans. Hence, it is also called ‘management-in-action’. Every manager gives direction to his subordinates as superior and receives directions as subordinate from his superior. Different authors define leading in different ways, but the general ideas of each definition give the same messages. Therefore, directing is simply defined as;  The process of influencing people so that they will contribute to the organization & group goals or actuating organizational members to work efficiently & effectively for the attainment of organizational goals /objectives. Influencing means motivating people to contribute their maximum efforts for the achievement of organizational goals; but it does not to mean coercing/ forcing, imposing sanctions or pushing people at the behind.  A function of management which is related with instructing, guiding and inspiring human factor in the organization to achieve organizational mission and objectives.  According to Koontz and O’Donnel, “Direction is a complex function that includes all those activities which are designed to encourage subordinates to work effectively and efficiently in both the short and long term”.  Directing is the process of integrating the people with the organization, so as to obtain their willingness and enthusiastic co-operation for the achievement of its goals. It requires the integration of organizational & individual goals. It is the heart of managerial functions because it involves initiating actions. 5.3. ELEMENTS OF DIRECTING Employees as individual or group members, contribute their efforts & abilities to achieve organizational goals which can result in advancement towards their own individual or group goals. Managers to direct individuals require three basic elements. They are 1. Leadership 2. Motivation & 3. Communication

1. Chapter Six
Leading/Directing
1

2. Meaning and nature of direction
• Planning, organizing and staffing are concerned only
with the preparation for work performance.
• Different authors define leading in different ways, but
the general ideas of each definition give the same
messages. Therefore, directing is simply defined as:
• The process of influencing people so that they will
contribute to the organization & group goals; but it
does not to mean coercing/ forcing, imposing
sanctions or pushing people at the behind.
2

3. • Leading is instructing, guiding and inspiring human
factor in the organization to achieve objectives.
• Directing is the process of integrating the people with
the organization, to obtain their willingness and
enthusiastic co-operation for the achievement of its
goals.
• It is the heart of managerial functions because it is
involves with initiating actions.
3

4. Elements of directing
• Managers to direct individuals require three basic
elements. They are:
1. Leadership
2. Motivation
3. Communication
4

5. Leadership
• Some define leadership as an integral part of the
group process.
• Others define it primarily as an influence
process.
• Still others see leadership as the initiation of
structure and the instrument of goal
achievement.
• Several even consider leaders to be servants of
their followers.
• Despite the differences, the various definitions
of leadership share three common elements:
5

6. • First, leadership is a group phenomenon; there can be
no leaders without followers.
• Second, leadership is goal directed
• Third, the presence of leaders assumes some form of
hierarchy within a group –formal and informal.
• A leader is any person who influences individuals and
groups within an organization
• Leadership is a process whereby an individual
influences a group of individuals to achieve a
common goal.
6

7. Leadership at-Individual level involves mentoring,
coaching, inspiring and motivating.
At group level, leaders build team, create
cohesion/unity and resolve conflict.
At organizational level, leaders build culture, and
create change.
• According to Hersey and Blanchard, leadership is a
function of the leader, followers and situation which
can be depicted as:
L= f (L, F, S)
• Where L denotes leadership f- the function of, L-
leader, F-followers and S -the situation
7

8. Leadership Styles
• is the typical pattern of behavior a leader uses to
influence employees to achieve organizational goals.
• implies the ways in which the leaders exercise
leadership and the functions of leadership are carried
out.
Basic leadership styles
• Leadership styles are also broadly classified based on
three points of view: Motivation, Authority and
supervision.
• On the basis of motivation leadership style can be
positive or negative style.
• In positive style a leader motivates his followers to
work hard by offering them rewards.
8

9. • In negative styles, a leader forces his followers to
work hard and punishes them for lower productivity.
On the basis of Authority, leadership styles are
divided as follows
1. Autocratic (authoritarian) leadership style
Autocratic leader Look, I’m the boss around here.
I will make the decisions and I will tell you what I
want you to do.
You had better do your job because I’ll be watching
your every move.
Autocratic leadership is the classical approach and
also known as "I "approach.
9

10. • A Leader having this style does not consult staff, nor
allowed to give any input.
• Communication tends to be primarily in one direction
from manager to follower.
• Some autocratic leaders are seen as “benevolent
autocrat.”
• Benevolent autocrat even though they listen
considerably to their followers’ opinion before
making any decision, the decision remains to be their
own.
10

11. Advantage
• It is suitable when subordinates are basically lazy and
avoiding duties.
• Inefficient and dishonest workers can easily be
identified and removed from service.
• It can increase efficiency, save time, and get quick
results under emergency conditions, chain of
command and division of work are clear.
11

12. Disadvantage
• Subordinates normally show resistance because it
limits their freedom to act.
• It kills initiative to work and results in frustration.
• It often gives scope for conflicts between the leader
and his followers.
• The subordinates may stop obeying the orders of the
leader and start showing their protest.
• People are treated as machine
• There is one way communication without feedback.
12

13. 2. Bureaucratic leadership style
• It is also known as manages “by the book”. Everything
done according to procedure or policy. if things not
covered by the book, referred to the next level above.
Most effective when:
• Staff performing routine tasks over and over
• Staff needs to understand certain standards or procedures.
• Safety or security training conducted
• Staff performing tasks that require handling cash
Ineffective when:
• Work habits form those are hard to break, especially if
they are no longer useful
• Staff loses their interest in their jobs and in their co-
workers
• Staff do only what is expected of them and no more
13

14. 3. Democratic leadership style
• This style of leadership is also known as
participative leadership.
• The leader shows greater concern for his
people’s interest, is friendly and helpful to them.
• He/she is always ready to defend their
subordinates individually and collectively.
• It encourages subordinates to make decisions,
and boosts the morale of employees.
• The demerits of this type of leadership are (1)
Some leaders may use this style as a way of
avoiding responsibility, (2) Can take enormous
amount of time for making decisions.
14

15. Merits:
• As the followers are able to participate in the
decision-making process, they feel motivated.
• The decision finally made is mutually acceptable.
The followers, therefore, work for its
implementation wholeheartedly.
• There is no resistance from the subordinates.
• It improves the job attitudes of the subordinate
staff.
• As the subordinates do not have ill-feelings of
any kind, the labor-management relationship is
bound to improve.
15

16. Demerits:
• There may be delay in arriving at a decision, as
consensus among the individuals is necessary.
• Democratic leadership is suitable only if the
subordinates are all capable of making
worthwhile suggestions.
• It may, sometimes, be very difficult to evolve a
solution that is acceptable to everyone.
• Some leaders may use this style as a way of
avoiding responsibility.
• Can take enormous amount of time for making
decisions.
16

17. • 4. Laissez-faire/free-rein leadership style In this type of
leadership, the leaders exercise absolutely no control.
• He/she only provides information, materials and facilities
to his subordinates.
• This type of leadership is employee centered and the
subordinates are free to establish their own goals and
chart out the course of action.
Merits
• the subordinates have full freedom to act. It is motivation
• Those subordinates, who are highly efficient.
• The superior-subordinate relationship is bound to be very
good.
17

18. Demerits
• The laissez faire leadership style will produce good
results only if the subordinates are all highly efficient
and capable of doing their work independently.
• As the leader does not involve himself at all in the
activities of his subordinates, control may become
difficult.
• The leader does not exercise his formal authority.
• The subordinates are deprived of the expert advice
and moral support of their leader.
• This type of leadership can be disaster if the leader
does not know well the competence and integrity of
his people.
18

19. 5. Situational leadership style
 Effectiveness of leadership depends on the situation.
 The styles a manager chooses may depend on the following
situations.
Forces in the manager i.e. his value system & confidence in
subordination.
Forces in subordinate e.g. subordinates expectation.
Forcer in the situation e.g. types of the organization, the
nature of the problem, the pressure of time, etc.
 Three factors that influence which leadership style to use.
 The manager’s and subordinate’s personal background: What
personality, knowledge, values, ethics, and experiences does
the manager and staffs have.
19

20. • The organization: The traditions, values, philosophy,
and concerns of the organization influence how a
manager acts.
• Leaders tasks should be more relationship (people)
oriented
• Leaders have a dominant style, that one consider
wide variety of situations.
• No one best style - leaders must adjust their
leadership style to the situation as well as to the
people being led.
• Many different aspects consider to being a great
leader
20

21. Leadership Theories
There are many theories on leadership as there are
philosophers, researchers and professors that have
studied and ultimately published their leadership
theory.
Every leader is different, and no single theory works
for all leaders.
The most widespread one's are:
1. Great man theory
2. Trait theory
3. Behavioral theories
4. Contingency theories
21

22. 1. Great man theory (Thomas Carlyle, 1847)
The Great Man theory assumes that the traits of
leadership are intrinsic, great leaders are born with
innate qualities –not made, leaders are exceptional
people lead.
Gender issues were not on the table when the 'Great
Man' theory was proposed.
Most leaders were male and the thought of a Great
Woman was generally in areas other than leadership.
Most researchers were also male, and This led to the
next school of Trait Theory.
22

23. 2. Trait theory :Late 1800s to mid-1940s
• This theory is similar to the Great Man theory. In
the 1920's and 1930's, leadership research focused
on trying to identify the traits that differentiated
leaders from non-leaders.
• The trait approach to understanding leadership
assumes that certain physical, social, personal and
task –oriented characteristics are inherent in
leaders.
• Physical traits include being young to middle-aged,
energetic, tall, and handsome.
• Social background traits include being educated at
the "right" schools and being socially prominent or
upwardly mobile.
23

24. • Social characteristics include being charismatic,
charming/polite, tactful, popular, cooperative, and
diplomatic.
• Personality traits include being self-confident,
adaptable, assertive, and emotionally stable.
• Task-related characteristics include being driven to
excel, accepting of responsibility, having initiative,
and being results-oriented.
• Stogdill (1974) identified the following traits and
skills as critical to leaders.
24

25. Trait skill
Adaptable to situations
Alert to social environment
Achievement orientated
Assertive
Cooperative
Decisive
Dependable /loyal/responsive
Dominant (desire to influence
others)
Energetic (high activity level)
Persistent
Self-confident
Clever (intelligent)
Conceptually skilled
Creative
Diplomatic and tactful
Fluent in speaking
Knowledgeable about
group task
Organized
(administrative ability)
Persuasive
Socially skilled
25

26. • McCall and Lombardo (1983) researched both
success and failure identified four primary traits:
Emotional stability and composure: Calm,
confident and predictable, particularly when
under stress.
Admitting error: Owning up to mistakes,
rather than putting energy into covering up.
Good interpersonal skills: Able to
communicate and persuade others without
resort to negative or coercive tactics.
Intellectual breadth: Able to understand a
wide range of areas, rather than having a narrow
(and narrow-minded) area of expertise.
26

27. Limitations / Short coming of Trait theory
• All the leaders may not possess all the traits & many
of non-leaders may possess most or all of them.
• The trait approach gives no guidance as to how much
of any trait a person should have.
• It doesn’t indicate the best style of leadership.
• It ignores situational factors.
3. Behavioral leadership theory: Mid 1940s to 1970s
• McGregor was a teacher, researcher, & consultant
and he influenced all the behavioral theories, which
emphasize focusing on human relationships, along
with output and performance.
27

28. • Behavioral leadership theory is a big leap from trait
theory, in that it assumes that leadership capability
can be learned, rather than being inherent.
• Training people to perform effective leadership
behaviors, not focus on personality traits.
4. Contingency (situational) theory: 1960s to present
• They also propose that leaders choose the best course
of action based upon situational variable.
• Leaders are products of a given situation; what is
effective in one situation may not be effective in
other situation.
28

29. • Effective leadership is really a function of the
interaction of several variables, including:
Superior - subordinate relationships
The power distribution between superior and
subordinate
The degree to which the job is structured
expectations and behavior of superiors
Subordinate characteristics, anticipation and
behavior
Organizational culture and policies
Situational theory attempts to discover that no
one unique set of leadership traits were largely
successful
29

30. A. Fiedler's Contingency Model
Theory postulates that there is no single best way for
managers to lead.
Situations will create different leadership style
requirements for a manager.
For example, in a highly routine (mechanistic)
environment relatively directive leadership style may
result best performance, however, in a dynamic
environment a more flexible, participative style may be
required.
• He identified 3 situational dimensions that influence the
leader’s effectiveness.
1. Leader - member relations: refers to the degree of
confidence, trust & respect the followers have in their
leader.
30

31. 2. Task structure: The job of subordinates are structured
or unstructured. If tasks are clear/ structure the quality
of performance easily controllable & employees are
responsible for their performance.
3. Position power: the degree of leaders power to living,
promoting, firing, salary increase etc.
It refers to the power inherent in the leadership position
to reward or punish.
• These 3 factors together determine how favorable the
situation is for the leader.
• Good member - leader relations, high task structure &
strong position power indicates the most favorable
situation.
31

32. B. Path-goal theory
Effective leaders increase motivation and satisfaction
and help subordinates to see the goal.
Role of the leader is:
 To clarify the path to help followers get to their goals
 To make the journey easily by reducing roadblocks
and pitfalls.
Leader’s behavior is acceptable to subordinates, they
view the leader as an immediate source of future
source of satisfaction.
32

33. Leader’s behavior is motivational if it:
Makes the subordinate’s satisfaction contingent on
performance.
Provides the coaching guidance, support, and rewards
necessary for effective performance.
• In contrast to Fielder’s contingency model, path-goal theory
assumes that managers can alter their leadership style as needed.
Qualities of leadership
The important qualities of leadership are:
Physical appearance and strength: A leader has to put hard
work physically. He should have a capacity to work for long
hours than others.
Mental vigor: a leader has to be strong mentally.
Emotional stability: a leader should not be moved by emotion
or sentiment.
33

34. Sense of judgment: a leader should know human
psychology.
Goodwill: a leader should understand the feeling of others
and then he will win the goodwill of his followers.
Motivation: a leader should know the motivation
techniques and how to use them.
Communication skill: a leader should communicate
information to the workers, and also be effective speaker &
writer.
Guiding ability: a leader should act as a teacher for new
workers
Sociability: leader can easily mingle (mix) with the
workers The leader should meet workers frequently.
Technical knowledge: a leader should posses a thorough
knowledge of theory and practice of his job.
Be honest, sincere and fair: a leader should also be honest,
sincere and fair by doing that their leadership is accepted by
one or all.
34

35. The difference between leaders and managers
• Leaders essence is change
• Leaders are lead people
• leaders have followers
• Leader seeks vision
• Leader facilitate for decisions
• Leader is proactive
• Leader take risk
• Leader uses conflict
• Leader shows new road
• Leader gives credit
• Leader doing right thing
• Leaders strive
• Managers essence is stability
• Managers are managing work
• Managers have subordinate
• Manager seeks objectives
• Manager make decisions
• Managers are reactive
• Manager minimize risk
• Manager avoids conflict
• Manager shows existing road
• Manager takes credit
• Manager doing things right
• Managers strive to copy/imitate
35

36. Motivation
• The term motivation is derived from the Latin word
“Mover”, meaning “to move.”
Definitions of Motivation
The following are some of the important definitions
of motivation given by eminent/well-known
management thinkers:
• Motivation is defined as “inner burning passion
caused by need, wants and desire.
• Performance can be expressed as under;
Performance= Ability × Motivation
• Scot defined motivation as “a process of stimulating
people to action or accomplish desired goals”.
36

37. • Something that moves the person to action and continues
him in the course of action already initiated– Robert
Dubin.
• Motivation is the process of attempting to influence
others to do your will through the possibility of gain or
reward. – Edwin B. Flippo.
• The Encyclopedia of Management: Motivation refers to
degree of readiness.
• Memoria: “A willingness to expand energy to achieve a
goal or reward.
37

38. Characteristics of motivation
 Motivation is a psychological phenomenon. It is the inner desire of an
individual to accomplish something more.
 Motivation is a continuous process. Since need is a continuous phenomenon
if one need is satisfied the other need emerges.
 Motivation is caused due to anticipated perceived value from an action.
Perceived value is the probability or the expectancy. Therefore motivation=
valance (value) × expectancy.
 There are unsatisfied needs. A person remains disturbed till they are satisfied.
This disturbance or tension causes disequilibria in human behavior. The more
the motivation level, the higher effort will give
 Individual is motivated by positive motivation. It refers to incentives offered
by the organization to achieve efficiency.
Monetary incentive like increase in pay, allowances, and bonus.
Non-monetary incentive like issuing of certificates for excellence, awards,
recognition, status, job enrichment, competitions, and the like.
38

39. Importance of motivation
1. High level of performance
2. Low employee turnover and absenteeism
3. Acceptance of organization change
4. Organizational image
Types of motivation
On the basis of approach
Positive Motivation
• Positive motivation is creation of an environment &
necessary facilities for workers to satisfy their needs and
aspirations.
• rewards and incentives are offered to inspire employees.
• Positive motivation removes the psychological barrier
and develops a sense of affiliation.
39

40. Negative Motivation
• Negative motivation involves creating a sense of fear
or unhelpful environment.
• Workers who do not perform well are penalized like
Demotion, layoffs etc.
• Negative motivation creates detachment between
the individuals and the organization
• Negative motivation is based on pessimistic view
which holds that only fear of punishment will force
employees to improve their performance.
On the basis of the type of incentives
Financial Motivation
• Financial motivation implies use of monetary
benefits to inspire employees. wages and salaries,
bonus, fringe benefits, retirement benefits, etc.,
40

41. Non-financial Motivation
• Non-financial motivators are not associated with monetary rewards. These
include recognition of work done, greater involvement in decision-making,
responsibility, challenging job, Praise etc.
On the basis of the nature of reward
 Extrinsic Motivation
• Extrinsic motivators do not occur on the job but around the job.
• These factors include pay allowances, bonus, and fringe benefits.
• Extrinsic reward may be direct which are linked with performance and
indirect compensation like free housing, conveyance /transport, medical
facilities, etc. generally direct compensation is more effective motivator.
 Intrinsic Motivation
• Intrinsic motivation occurs on the job and provides satisfaction while the job
is being performed.
• Intrinsic or internal motivators include status, authority, participation,
challenging task etc.
41

42. Theories of motivation
Many experts have developed different theories on the concept
of motivation. Popular ones are given below:
1. Maslow’s theory of need hierarchy
2. ERG theory
3. Two factor theory
4. Theory ''X'' and theory ''Y''
Maslow’s theory of need hierarchy
 Maslow suggested that every individual has complex set of
needs at any particular moment and his behavior is
determined by the existence of strongest need.
 Needs are hierarchal in nature and only one need dominates
at any one point of time.
 Once the strongest need is satisfied then the second need
emerges.
42

43. • Maslow further started that there is only one need satisfying
process is underway at any one time.
• They do not disappear once they are satisfied but their
intensity is reduced (relegated) below the subsequent need.
• He stated that human beings have five types of needs. Such as:
Self-actualization
Self-esteem
Social need
Security need
Physiological need
43

44. 1. Physiological Needs
 It is strongest need as compared to the other needs; like hunger;
thirst, shelter, clothing and sex.
 These needs keep dominating unless they are reasonably
satisfied. Human being is therefore motivated to work in that
direction.
2. Safety Needs or Security Needs - Once the physiological need
of an individual is satisfied, the safety need /security need arises
and is dominant at that point of time. This need is related to:
 Workers want to be free from physical danger and job must
secured.
 There should be certainty in the job and non existence of arbitrary
action.
 Administration policy must cover various safeties like pay,
pension, insurance, and gratuity/extra pay.
 Given adequate security against being fired, laid off or demotion.
44

45. 3. Social Needs
Once the safety need is satisfied, third need i.e. social
need arises.
People want to belong to some social group where their
emotional need of love, affection, warmth and friendship
are satisfied.
Being member of sports club, social organizations or
being the company of friends and relatives, needs can
satisfy social.
4. Esteem Need or Ego Need
 Individual wants self-recognition, appreciation for the
work done.
 It is related to self-respect, self-confidence, praise, power
and control. It these needs are satisfied it gives an
individual a sense self-worth and ego satisfaction.
45

46. 5. Self-actualization Need
• People set high goals, achieve them and set a higher
goals again and to achieve the same by utilizing
fullest potential.
• An individual seeking to satisfy self-actualization
need is challenging in nature.
• Mahatma Gandhi wanted to achieve freedom for
India by unique weapons of peace and non-violence.
• He strived hard, faced various challenges but
ultimately achieved his goal with his innovative
freedom.
46

47. • In essence Maslow’s Motivational Theory covers:
There are five levels of human needs.
These needs are hierarchical in nature.
A satisfied need is no longer a need. Once that need is
satisfied, the next level need becomes stronger.
Needs do not diminish. It is the gravity that changes.
Critics of Maslow’s Hierarchy of Needs Theory
• Maslow has laid down that individual has a particular pattern
and hierarchy of needs which may not be true.
• There are craftsmen, poets, sculptures, painters who have
devoted their entire life towards fulfillment of self-
actualization need without having satisfied other needs.
• To some people esteem need may be more important than
social need.
47

48. • A person feeling thirsty may not always drink water but he
may switch over to cold drinks soda or even a glass of beer to
squint thirst.
• worker who is a sole income earner for the whole family may
feel job security as his most dominant need.
• For instance, social needs tend to dominate in more collectivist
societies, such as Mexico and Pakistan.
• Level of need satisfaction generally differs from person to
person hence the theory cannot be universally applied.
Herzberg’s two factor theory
• Herzberg study conclude that there are two types of needs,
independent of each other. These are:
1. Motivational factor
2. Hygiene/maintenance factor
48

49. 1. Motivational factor
• Primarily it builds strong motivation and job satisfaction.
• They are intrinsic in nature and help increase one’s output.
• These factors have positive effect on morale, productivity, and
job satisfaction and overall efficiency of the organization.
• It links with the content of the job
• Example - achievement, advancement, possibility of growth,
recognition, and work itself
2. Hygiene factor
• These operate primarily to dissatisfy employees when these
conditions are absent.
• But the present of factors not strongly motivate
• These factors are called dissatisfiers/dismotivator
• It links with the context of the job
49

50. These factors are:
• Company Policy and administration.
• Technical supervision.
• Interpersonal relationship with superiors, subordinate and peers
• Salary, job security, working condition and status.
3. McGregor’s theory X and theory Y
Theory X Theory Y
 Work is inherently
unpleasant to most people
 Work is as natural as play.
 Most people are not
ambitious, have little
desire for responsibility
and prefer to be directed
 People display extreme
degree of self control
which is necessary for
achieving goals.
50

51.  Most people have little capacity
for creativity in solving
organizational problems
 The capacity of creativity in
solving organizational problems
high
 Motivation occurs only at the
physiological and security need
levels
 Motivation occurs at social,
esteem and Self-actualization
need levels.
 Most people must be closely
controlled and often force to
achieve organizational
objectives.
 People can be self-directed and
creative at work.
Because most people dislike
work, they have to be closely
supervised and punish
People do not need to be
threatened with punishment, they
will work voluntarily
51

52. ERG theory of motivation
• Clayton Alderfer carried out further studies on Maslow’s theory
of need hierarchy.
• He identified three basic needs of human being against five
needs of Maslow.
• These are as under:
1. E-Existence need - There are related to basic material
requirement of human being and are related to Maslow’s
Physiological and safety needs.
2. R-Relatedness - This need is related to desire of an individual
to maintain sound interpersonal relationship. It is related to
Maslow’s, Social needs and external component of esteem
needs i.e., status, recognition and attention.
3. G-Growth - Growth is an intrinsic desire for personal
development. It is related to intrinsic component of esteem
need like advancement, self respect, autonomy, achievement
and self-actualization need.
52

53. • ERG Theory contains a frustration — regression
dimensions (when there is a frustration in higher level
need, lower level needs may get more activated).
• Alderfer recommends satisfaction - progression
pattern of need i.e. when one level need is satisfied
then higher level need arises (satisfaction-
progression).
Expectancy theory-Vroom
• Vroom has propagated Expectancy Theory based on
employee expectancy.
• He believes that employee is motivated to exert high
level of efforts that efforts will lead to good
performance and therefore organizational rewards
that will satisfy achievement of personal goals.
53

54. • The focus of the theory has three elements.
▫ Efforts - Performance relationship. It is related to
the probability perceived by individual that
exerting a given amount of efforts will lead to
performance (Expectancy).
▫ Performance - Reward Relationship. The degree
to which the individual believes that performing a
particular level will lead to attainment of desired
outcome (Instrumentality).
▫ Reward-personal goal relationship. The degree to
which an organizational reward will satisfy
individual needs and its attractiveness for the
individual (Valence).
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55. Principles of directing
▫ Harmony of objectives: Individuals and organization have their
own objectives. The management should coordinate the
individual objectives with the organizational objectives.
Directions can integrate their objectives with organizational
objectives.
▫ Unity of direction or command: An employee should receive
orders and instructions only from one superior. If not so, there
may be indiscipline and confusion among subordinates and
disorder will ensue.
▫ Direct supervision: Managers should have direct relationship
with their subordinates. Face to face communication and personal
touch with the subordinates will ensure successful direction.
▫ Effective communication: The superior must ensure that plans,
policies, responsibilities and orders are fully understood by the
subordinates in the right direction.
▫ Follow through: Direction is a continuous process. Mere issuing
orders or instructions are not an end itself.
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