INDIAN SCHOOL MUSCAT

SENIOR SECTION
DEPARTMENT OF COMMERCE AND HUMANITIES
CLASS XII – BST HANDOUT - CHAPTER 7
DIRECTING

Contents to be covered:
• Concept of directing.
• Importance of directing
• Elements of directing
• Concept of motivation.
• Develop an understanding of Maslow’s Hierarchy of needs.
• Discuss the various financial and non-financial incentives.
• Concept of leadership.
• Styles of leadership.
• Concept of communication
• Elements of the communication process.
• Concept of formal and informal communication.
• Barriers to effective communication.
• Suggest measures to overcome barriers to communication.

CONCEPT OF DIRECTING

Directing refers to the process of instructing, guiding, counselling, motivating and leading
people in the organisation to achieve its objectives. Directing means giving instructions and
guiding people in doing work. Directing guides towards achievement of common objectives.

Features of Directing

I It is an initiating action:
A manager has to perform this function along with planning, organising, staffing and controlling
while discharging his duties in the organisation. While other functions prepare a setting for action,
directing initiates action in the organisation.
2. It is a continuous function:
Every manager, from top executive to supervisor performs the function of directing. The directing
takes place wherever superior – subordinate relations exist.
3. It takes place every level of management (pervasive):
It takes place throughout the life of the organisation irrespective of people occupying managerial
positions
4. It flows from top to bottom:
Directing is first initiated at top level and flows to the bottom through organisational hierarchy It
means that every manager can direct his immediate subordinate and take instructions from his
immediate boss.

IMPORTANCE/BENEFITS OF DIRECTING

Notes by Deepa Shiby

(i) Directing helps to INITIATE action by people in the organisation towards attainment of
desired objectives. For example, if a supervisor guides his subordinates and clarifies their doubts
in performing a task, it will help the worker to achieve work targets given to him.

(ii) Directing INTEGRATES employees efforts in the organisation in such a way that every
individual effort contributes to the organizational performance. Thus, it ensures that the
individuals work for organisational goals. For example, a manager with good leadership abilities
will be in a position to convince the employees working under him that individual efforts and
team effort will lead to achievement of organizational goals.

(iii) Directing GUIDES employees to fully realise their potential and capabilities by
motivating and providing effective leadership. A good leader can always identify the potential of
his employees and motivate them to extract work up to their full potential.

(iv) Directing FACILITATEs introduction of needed changes in the organisation. Generally,

people have a tendency to resist changes in the organisation. Effective directing through
motivation, communication and leadership helps to reduce such resistance and develop required
cooperation in introducing changes in the organisation. For example, if a manager wants to
introduce new system of accounting, there may be initial resistance from accounting staff. But, if
manager explains the purpose, provides training and motivates with additional rewards, the
employees may accept change and cooperate with manager.

(v) Effective directing helps to BRING STABILITY and balance in the organisation since it
fosters cooperation and commitment among the people and helps to achieve balance among
various groups, activities and the departments.
ELEMENTS OF DIRECTING

(i) Supervision - process of guiding the efforts of employees and other resources to
accomplish the desired objectives.
(ii) Motivation - process of making subordinates to act in a desired manner to achieve
certain organisational goals
(iii) Leadership - process of influencing the behaviour of people by making them strive
voluntarily towards achievement of organisational goals
(iv) Communication - process of exchange of ideas, views, facts, feelings, etc between or
among people to create common understanding.
CONCEPT OF MOTIVATION

 Motivation is the process of stimulating people to action to accomplish desired goals

 process of making subordinates to act in a desired manner to achieve certain
organisational goals.

Features of Motivation

(i) Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of
human being, which are internal, influence human behaviour.

Notes by Deepa Shiby

(ii) Motivation produces goal directed behaviour. For example, the promotion in the job may
be given to employee with the objective of improving his performance.
(iii) Motivation can be either positive or negative. Positive motivation provides positive
rewards like increase in pay, promotion, recognition etc., Negative motivation uses negative
means like punishment, stopping increments, threatening etc. which also may induce a person to
act in the desired way
(iv) Motivation is a complex process as the individuals are heterogeneous in their
expectations, perceptions and reactions
Maslow’s theory is based on the following ASSUMPTIONS:
(i) People’s behaviour is based on their needs. Satisfaction of such needs influences their
behaviour.
(ii) People’s needs are in hierarchical order, starting from basic needs to other higher level
needs.
(iii) A satisfied need can no longer motivate a person; only next higher-level need can
motivate him.
(iv) A person moves to the next higher level of the hierarchy only when the lower need is
satisfied.
MASLOW’S NEED HIERARCHY THEORY

(i) Basic Physiological Needs: Corresponds to primary needs. Hunger, thirst, shelter, sleep and
sex. In the organisational context, basic salary helps to satisfy these needs.
(ii) Safety/Security Needs: Needs provide security and protection from physical and emotional
harm. Examples: job security, stability of income, Pension plans etc.,
(iii) Affiliation/Belonging Needs: These needs refer to affection, sense of belongingness,
acceptance and friendship.
(iv) Esteem Needs: These include factors such as self-respect, auto nomy status, recognition and
attention.
(v) Self Actualisation Needs: It is the highest level of need in the hierarchy. It refers to the drive
to become what one is capable of becoming. These needs include growth, self-fulfillment and
achievement of goals.

Notes by Deepa Shiby

 FINANCIAL AND NON-FINANCIAL INCENTIVES
Financial Incentives:

Incentives which are in direct monetary form or measurable in monetary term and serve to
motivate people for better performance.
(i) Pay and allowances: For every employee, salary is the basic monetary incentive. It includes
basic pay, dearness allowance and other allowances. Salary system consists of regular
increments in the pay every year and enhancement of allowances from time-to-time. In some
business organisations, pay hike and increments may be linked to performance.

(ii) Productivity linked wage incentives: Several wage incentive plans aims at linking payment
of wages to increase in productivity at individual or group level.

(iii) Bonus: Bonus is an incentive offered over and above the wages/ salary to the employees.

(iv) Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of the
organisation. This serves to motivate the employees to improve their performance and contribute
to increase in profits.

(v) Co-partnership/ Stock option: Under these incentive schemes, employees are offered
company shares at a set price which is lower than market price. Sometimes, management
may allot shares in line of various incentives payable in cash. The allotment of shares creates a
feeling of ownership to the employees and makes them to contribute for the growth of the
organisation. In Infosys the scheme of stock option has been implemented as a part of managerial
compensation.

Notes by Deepa Shiby

(vi) Retirement Benefits: Several retirement benefits such as provident fund, pension, and
gratuity provide financial security to employees after their retirement. This acts as an
incentive when they are in service in the organisation.
(vii) Perquisites: In many companies perquisites and fringe benefits are offered such as car
allowance, education to the children, etc., over and above the salary. These measures help to
provide motivation to the employees/ managers.

Non-Financial Incentives:

(i) Status: In the organizational context, status means ranking of positions in the organisation.
The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate
the status given to a person holding a managerial position. Psychological, social and esteem needs
of an individual are satisfied by status given to their job.
(ii) Organisational Climate: Organisational climate indicates the characteristics which describe
an organisation and distinguish one organisation from the other. These characteristics influence
the behaviour of individuals in the organisation. Some of these characteristics are–individual
autonomy, reward orientation, consideration to employees risk-tasking, etc., If managers take
positive measures regarding these aspects, it helps to develop better organisational climate.
(iii) Career Advancement Opportunity: Every individual wants to grow to the higher level in the
organisation. Managers should provide opportunity to employees to improve their skills and be
promoted to the higher level jobs. Appropriate skill development programmes, and sound
promotion policy will help employees to achieve promotions. Promotion works as a tonic and
encourages employees to exhibit improved performance
(iv) Job Enrichment: Job enrichment is concerned with designing jobs that include greater
variety of work content, require higher level of knowledge and skill; give workers more
autonomy and responsibility; and provide the opportunity for personal growth and a meaningful
work experience. If jobs are enriched and made interesting, the job itself becomes a source of
motivation to the individual.
(v) Employee Recognition programmes: Most people have a need for evaluation of their work
and due recognition. They feel that what they do should be recognised by others concerned.
Recognition means acknowledgment with a show of appreciation. When such appreciation is
given to the work performed by employees, they feel motivated to perform/work at higher level.
Some examples of employee recognition are:
 Congratulating the employee for good performance.
 Displaying on the notice board or in the company news letter about the achievement of
employee.
 Installing award or certificate for best performance.
 Distributing mementos, complimentaries like T -shirts in recognition of employee
services.
 Rewarding an employee for giving valuable suggestions.

(vi) Job security: Employees want their job to be secure. They want certain stability about future
income and work so that they do not feel worried on these aspects and work with greater
zeal. In India, this aspect is more important considering the inadequate job opportunities and
too many aspirants for these. However, there is one negative aspect of job security. When people
feel that they are not likely to lose their jobs, they may become complacent.

Notes by Deepa Shiby

(vii) Employee participation: It means involving employees in decision making of the issues
related to them. In many companies, these programmes are in practice in the form of joint
management committees, work committees, canteen committees etc.,
(viii)Employee Empowerment: Empowerment means giving more autonomy and powers to
subordinates. Empowerment makes people feel that their jobs are important. This feeling
contributes positively to the use of skills and talents in the job performance.
LEADERSHIP

Leadership is the process of influencing the behaviour of people by making them strive
voluntarily towards achievement of organisational goals. Leadership indicates the ability of an
individual to maintain good interpersonal relations with followers and motivate them to contribute
for achieving organisational objectives.
Features of leadership
(i) Leadership indicates ability of an individual to influence others.
(ii) Leadership tries to bring change in the behaviour of others.
(iii) Leadership indicates interpersonal relations between leaders and followers.
(iv) Leadership is exercised to achieve common goals of the organisation.
(v) Leadership is a continuous process.
LEADERSHIP STYLES

The most popular classification of leadership styles is based on the use of authority. Depending
on the use of authority, there are three basic styles of leadership:
(i) Autocratic (ii) Democratic, and (iii) Laissez-faire

(i) Autocratic or Authoritarian leader

An autocratic leader gives orders and expects his subordinates to obey those orders. If a
manager is following this style, then communication is only one-way with the subordinate
only acting according to the command given by the manager. This leader is dogmatic, i.e.,
does not change or wish to be contradicted. His following is based on the assumption that
reward or punishment both can be given depending upon the result. This leadership style is
effective in getting productivity in many situations like in a factory where the supervisor is
responsible for production on time and has to ensure labour productivity. Quick decision-making
is also facilitated. But there are variations also, they may listen to everyone’s opinion, consider
subordinates ideas and concerns but the decision will be their own.

(ii) Democratic or Participative leader

A democratic leader will develop action plans and makes decisions in consultation with his
subordinates. He will encourage them to participate in decision-making. This kind of
leadership style is more common now-a-days, since leaders also recognise that people perform
best if they have set their own objectives. They also need to respect the other’s opinion and
support subordinates to perform their duties and accomplish organisational objectives. They
exercise more control by using forces within the group.

(iii) Laissez faire or Free-rein leader

Notes by Deepa Shiby

Such a leader does not believe in the use of power unless it is absolutely essential. The
followers are given a high degree of independence to formulate their own objectives and ways
to achieve them. The group members work on their own tasks resolving issues themselves. The
manager is there only to support them and supply them the required information to complete the
task assigned. At the same time, the subordinate assumes responsibility for the work to be
performed.
COMMUNICATION
Process of exchange of ideas, views, facts, feelings, etc between or among people to create
common understanding.

Elements of Communication

(i) Sender: Sender means person who conveys his thoughts or ideas to the receiver. The sender
represents source of communication
(ii) Message: It is the content of ideas, feelings, suggestions, order, etc., intended to be
communicated.
(iii) Encoding: It is the process of converting the message into communication symbols such
(iv) Media: It is the path through which encoded message is transmitted to receiver. The channel
may be in written form, face to face, phone call, Internet etc.,
(v) Decoding: It is the process of converting encoded symbols of the sender.
(vi) Receiver: The person who receives communication of the sender.
(vii) Feedback: It includes all those actions of receiver indicating that he has received and
understood message of sender.
(viii) Noise: Noise means some obstruction or hindrance to communication. This hindrance
may be caused to sender, message or receiver. Some examples of noise are:
(a) Ambiguous symbols that lead to faulty encoding.
(b) A poor telephone connection.
(c) An inattentive receiver.
(d) Faulty decoding (attaching wrong meanings to message).
(e) Prejudices obstructing the poor understanding of message.
(f ) Gestures and postures that may distort the message.
FORMAL AND INFORMAL COMMUNICATION
Formal Communication

Formal communication flows through official channels designed in the organisation chart.
This communication may take place between a superior and subordinate, a subordinate and
superior or among same cadre employees or managers. The communications may be oral or
written but generally recorded and filed in the office. Formal communication may be further
classified as – Vertical and Horizontal.

Vertical communication flows vertically, i.e., upwards or downwards through formal channels
Upward communications refer to flow of communication from subordinate to superior whereas
downward communication indicates communication from a superior to subordinate. The
examples of upward communication are – application for grant of leave, submission of progress
report, request for grants, etc. Similarly, the examples of downward communication include –

Notes by Deepa Shiby

sending notice to employees to attend a meeting, ordering subordinates to complete an assigned
work, passing on guidelines framed by top management to the subordinates, etc.

Horizontal or lateral communication takes place between one division and another. For
example, a production manager may contact marketing manager to discuss about schedule of
product delivery, product design, quality, etc.

Informal Communication:

Communication that takes place without following the formal lines of communication.
Informal system of communication is generally referred to as the ‘grapevine’ because it
spreads throughout the organisation with its branches going out in all directions in utter
disregard to the levels of authority. The informal communication arises out of needs of
employees to exchange their views, which cannot be done through formal channels. Worker’s
chit chatting in a canteen about the behaviour of the superior, discussing about rumours that some
employees are likely to be transferred are some examples of informal communications. Informal
channels are used by the managers to transmit information so as to know the reactions of his/her
subordinates. An intelligent manager should make use of positive aspects of informal channels
and minimize negative aspects of this channel of communication.

The grapevine/ informal communication spreads rapidly and sometimes gets distorted. It is
very difficult to detect the source of such communication. It also leads to generate rumours
which are not authentic. People’s behaviour is affected by rumours and informal discussions
and sometimes may hamper work environment.
BARRIERS TO COMMUNICATION
Semantic barriers : barriers are concerned with problems and obstructions in the process of
encoding and decoding of message into words or impressions or barriers result on account of
use of wrong words, faulty translations, different interpretations.

(i) Badly expressed message may be an account of inadequate vocabulary, usage of wrong
words, omission of needed words.
ii) Symbols with different meanings: A word may have several meanings. Receiver has to
perceive one such meaning for the word used by communicator.
(iii) Faulty translations: Sometimes the communications originally drafted in one language
(e.g.,English) need to be translated to the language understandable to workers (e.g., Hindi). If
the translator is not proficient with both the languages, mistakes may creep in causing different
meanings to the communication.
(iv) Unclarified assumptions: Some communications may have certain assumptions which are
subject to different interpretations.
(v) Technical jargon: It is usually found that specialists use technical jargon while explaining
to persons who are not specialists in the concerned field.
(vi) Body language and gesture decoding: Every movement of body communicates some
meaning. The body movement and gestures of communicator matters so much in conveying the
message.

Psychological barriers: Emotional or psychological factors acts as barriers to communicators.

Notes by Deepa Shiby

(i) Premature evaluation: Some times people evaluate the meaning of message before the
sender completes his message. Such premature evaluation may be due to pre-conceived notions
or prejudices against the communication.
(ii) Lack of attention: The pre-occupied mind of receiver and the resultant non-listening of
message acts as a major psychological barrier. Eg an employee explains about his problems to
the boss who is pre-occupied with an important file before him. The boss does not grasp the
message and the employee is disappointed.
(iii) Loss by transmission and poor retention: When communication passes through various
levels, successive transmissions of the message results in loss of, or transmission of inaccurate
information.

Poor retention is another problem. Usually people cannot retain the information for a long time
if they are inattentive or not interested.
(iv) Distrust: Distrust between communicator and communicate acts as a barrier. If the parties
do not believe each other, they cannot understand each other’s message in its original sense.

Organisational barriers: The factors related to organisation structure box, complaint box,
social and cultural gathering, transparency in operations, etc., will encourage free flow of
communication. Lack of these facilities may create communication problems

(i) Organisational policy: If the organisational policy, explicit or implicit, is not supportive to
free flow of communication, it may hamper effectiveness of communications. For example, in
an organisation with highly centralised pattern, people may not be encouraged to have free
communication.
(ii) Rules and regulations: Rigid rules and cumbersome procedures may be a hurdle to
communication. Similarly, communications through prescribed channel may result in delays.
(iii) Status: Status of superior may create psychological distance between him and his
subordinates. A status conscious manager also may not allow his subordinates to express their
feelings freely
(iv) Complexity in organization structure: In an organisation where there are number of
managerial levels, communication gets delayed and distorted as number of filtering points are
more.
(v) Organisational facilities: If facilities for smooth, clear and timely communications are not
provided communications may be hampered. Facilities like frequent meetings, suggestion box,
complaint box, social and cultural gathering, transparency in operations, etc., will encourage
free flow of communication. Lack of these facilities may create communication problems.

Personal barriers: The personal factors of both sender and receiver may exert influence on
effective communication.

(i) Fear of challenge to authority: If a superior perceives that a particular communication may
adversely affect his authority, he or she may withhold or suppress such communication.

(ii) Lack of confidence of superior on his subordinates: If superiors do not have confidence on
the competency of their subordinates, they may not seek their advice or opinions.

Notes by Deepa Shiby

(iii) Unwillingness to communicate: Sometimes, subordinates may not be prepared to
communicate with their superiors, if they perceive that it may adversely affect their interests.

(iv) Lack of proper incentives: If there is no motivation or incentive for communication,

subordinates may not take initiative to communicate. For example, if there is no reward or
appreciation for a good suggestion, the subordinates may not be willing to offer useful
suggestions.

IMPROVING COMMUNICATION EFFECTIVENESS

(i) Clarify the ideas before communication: The problem to be communicated to subordinates
should be clear in all its perspective to the executive himself. The entire problem should be studied
in depth, analysed and stated in such a manner that is clearly conveyed to subordinates.
(ii) Communicate according to the needs of receiver: The level of understanding of receiver
should be crystal clear to the communicator. Manager should adjust his communication according
to the education and understanding levels of subordinates.
(iii) Consult others before communicating: Before actually communicating the message, it is
better to involve others in developing a plan for communication. Participation and involvement
of subordinates may help to gain ready acceptance and willing cooperation of subordinates.
(iv) Be aware of languages, tone and content of message: The contents of the message, tone,
language used, manner in which the message is to be communicated are the important aspects of
effective communication. The language used should be understandable to the receiver and should
not offend the sentiments of listeners. The message should be stimulating to evoke response from
the listeners.
(v) Convey things of help and value to listeners: While conveying message to others, it is better
to know the interests and needs of the people with whom you are communicating. If the message
relates directly or indirectly to such interests and needs it certainly evokes response from
communicatee.
(vi) Ensure proper feedback: The communicator may ensure the success of communication by
asking questions regarding the message conveyed. The receiver of communication may also be
encouraged to respond to communication. The communication process may be improved by the
feedback received to make it more responsive.
(vii) Communicate for present as well as future: Generally, communication is needed to meet
the existing commitments to maintain consistency, the communication should aim at future goals
of the enterprise also.
(viii) Follow up communications: There should be regular follow up and review on the
instructions given to subordinates. Such follow up measures help in removing hurdles if any in
implementing the instructions.
(ix) Be a good listener: Manager should be a good listener. Patient and attentive listening solves
half of the problems. Managers should also give indications of their interest in listening to their
subordinates.

Notes by Deepa Shiby