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Introduction, Meaning, Importance and Principles of Directing Directing is the heart of management function. All other functions of management such as planning, organizing, and staffing have no importance without directing. Leadership, motivation, supervision, communication are various aspects of directing. Let us study the importance and principles of directing. Directing Directing refers to a process or technique of instructing, guiding, inspiring, counselling, overseeing and leading people towards the accomplishment of organizational goals. It is a continuous managerial process that goes on throughout the life of the organization. Main characteristics of Directing are as follows: 1. Initiates Action A directing function is performed by the managers along with planning, staffing, organizing and controlling in order to discharge

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Page 1: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

Introduction, Meaning, Importance and Principles of Directing

Directing is the heart of management function. All other functions of

management such as planning, organizing, and staffing have no

importance without directing. Leadership, motivation, supervision,

communication are various aspects of directing. Let us study the

importance and principles of directing.

Directing

Directing refers to a process or technique of instructing, guiding,

inspiring, counselling, overseeing and leading people towards the

accomplishment of organizational goals. It is a continuous managerial

process that goes on throughout the life of the organization. Main

characteristics of Directing are as follows:

1. Initiates Action

A directing function is performed by the managers along with

planning, staffing, organizing and controlling in order to discharge

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their duties in the organization. While other functions prepare a

platform for action, directing initiates action.

Browse more Topics under Directing

● Elements of Direction

● Incentives

● Leadership

● Communications

2. Pervasive Function

Directing takes place at every level of the organization. Wherever

there is a superior-subordinate relationship, directing exists as every

manager provides guidance and inspiration to his subordinates.

4. Continuous Activity

It is a continuous function as it continues throughout the life of

organization irrespective of the changes in the managers or

employees.

5. Descending Order of Hierarchy

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Directing flows from a top level of management to the bottom level.

Every manager exercises this function on his immediate subordinate.

6. Human Factor

Since all employees are different and behave differently in different

situations, it becomes important for the managers to tackle the

situations appropriately. Thus, directing is a significant function that

gets the work done by the employees and increases the growth of the

organization.

(Source: qsstudy)

Explore more about Directing

Directing

● Leadership

● Incentives

Page 4: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

● Communication

● Elements of Directing

1. Initiates Action

Each and every action in an organization is initiated only through

directing. The managers direct the subordinates about what to do, how

to do when to do and also see to it that their instructions are properly

followed.

2. Ingrates Efforts

Directing integrates the efforts of all the employees and departments

through persuasive leadership and effective communication towards

the accomplishment of organizational goals.

3. Motivates Employees

A manager identifies the potential and abilities of its subordinates and

helps them to give their best. He also motivates them by offering them

financial and non-financial incentives to improve their performance.

4. Provides Stability

Stability is significant in the growth of any organization. Effective

directing develops co-operation and commitment among the

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employees and creates a balance among various departments and

groups.

5. Coping up with the Changes

Employees have a tendency to resist any kind of change in the

organization. But, adapting the environmental changes is necessary for

the growth of the organization. A manager through motivation, proper

communication and leadership can make the employees understand

the nature and contents of change and also the positive aftermaths of

the change. This will help in a smooth adaptation of the changes

without any friction between the management and employees.

6. Effective Utilization of Resources

It involves defining the duties and responsibilities of every

subordinate clearly thereby avoiding wastages, duplication of efforts,

etc. and utilizing the resources of men, machine, materials, and money

in the maximum possible way. It helps in reducing costs and

increasing profits.

Read the Elements of Directing here.

Principles of Directing

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1. Maximum Individual Contribution

One of the main principles of directing is the contribution of

individuals. Management should adopt such directing policies that

motivate the employees to contribute their maximum potential for the

attainment of organizational goals.

2. Harmony of Objectives

Sometimes there is a conflict between the organizational objectives

and individual objectives. For example, the organization wants profits

to increase and to retain its major share, whereas, the employees may

perceive that they should get a major share as a bonus as they have

worked really hard for it.

Here, directing has an important role to play in establishing harmony

and coordination between the objectives of both the parties.

3. Unity of Command

This principle states that a subordinate should receive instructions

from only one superior at a time. If he receives instructions from more

than one superiors at the same time, it will create confusion, conflict,

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and disorder in the organization and also he will not be able to

prioritize his work.

4. Appropriate Direction Technique

Among the principles of directing, this one states that appropriate

direction techniques should be used to supervise, lead, communicate

and motivate the employees based on their needs, capabilities,

attitudes and other situational variables.

5. Managerial Communication

According to this principle, it should be seen that the instructions are

clearly conveyed to the employees and it should be ensured that they

have understood the same meaning as was intended to be

communicated.

6. Use of Informal Organization

Within every formal organization, there exists an informal group or

organization. The manager should identify those groups and use them

to communicate information. There should be a free flow of

information among the seniors and the subordinates as an effective

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exchange of information are really important for the growth of an

organization.

7. Leadership

Managers should possess a good leadership quality to influence the

subordinates and make them work according to their wish. It is one of

the important principles of directing.

8. Follow Through

As per this principle, managers are required to monitor the extent to

which the policies, procedures, and instructions are followed by the

subordinates. If there is any problem in implementation, then the

suitable modifications can be made.

Solved Question for You

Q: Direction takes place at all levels of management. True or False?

Ans: The statement is true. Every manager of the organisation

performs some function of directing. From top executives to low-level

managers all give direction to their subordinates.

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Elements of Directing

Directing is one of the most important functions of management.

Without the direction provided to the employees, the workforce would

be clueless about which path to follow. Let us understand the concept

of direction and the elements of directing.

Meaning of Direction

Directing can be defined as that function of management, which helps

in guiding and leading people to work in such a manner so as to

perform efficiently and effectively for the attainment of organizational

objectives. Directing is the managerial function, which initiates

organized action.

It is one of the most important fundamental functions of management

and is a part of every managerial action taken because the direction is

primarily concerned towards various other function of management

like leadership, motivation, and communication.

Page 10: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

According to Koontz and O ‘Donnel; “directing is a complex function

that includes all those activities which are designed to encourage

subordinate to work effectively and efficiently in both the short and

long-run.”

Therefore the direction involves such methods which include

communicating and providing leadership to the subordinates and

motivating them to contribute to the best of their capability for the

achievement of organizational objectives.

Browse more Topics under Directing

● Introduction, Meaning, Importance & Principles of Directing

● Incentives

● Leadership

● Communications

Elements or Techniques of Direction

Page 11: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

(Source: qsstudy)

There are various elements involved in direction are as follows-

1] Issuing Orders and Instructions to Subordinates

The first and foremost element of direction is to issue orders and

instructions which are considered an essential step in the process of

directing subordinates. An order is a fundamental tool for getting

things done. Therefore, the orders and instructions reflect managerial

decisions and initiate action on the part of subordinates. Orders may

be general or specific, formal or informal, written or oral.

Thus an order should serve the following characteristics:

● The order should be clear and complete.

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● It should be reasonable and attainable.

● The order must be in tune with the various other objectives of

the organization and also for the interests of the subordinates.

● All order should follow the chain of command.

● Face-to-face suggestions are preferable to long distance orders.

2] Supervision in an overall manner

It refers to monitor the progress of routine work of one’s subordinates

and guiding them properly. Supervision is an important element of the

directing function of management. Supervision has an important

feature which includes face-to-face interaction between the supervisor

and his subordinates.

It involves direct personal contact with subordinates. Supervision

converts plans into action. Thus supervision is considered as an

essential step in the process of directing.

3] Motivating Subordinates

The term motivation can be referred to as that process which excites

people to work for the attainment of the desired objective. Among the

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various factors of production, it is only the human factor which is

dynamic and provides mobility to other physical resources.

Thus, in an overall sense, it becomes essential so as to motivate the

human resources so as to keep the employees dynamic, aware and

eager to perform their duty. Both the monetary and non-monetary

incentives are given to the employees for motivation. Thus through

motivation, the employees will perform better. Hence, it will help to

achieve the organizational goals and objectives.

4] Providing Leadership

The term Leadership defines as to influence others in such a manner

as to guide them to do what the leader wants them to do. Leadership

plays an important role in directing. Only through this leadership skill,

a manager can develop trust and zeal among his subordinates.

Therefore it leads to guide and provide overall counselling to

subordinates in the best way for achieving their objectives and also for

the organization.

5] Communicating with Subordinates

It refers to an act of transferring facts, ideas, feeling, etc. from one

person to another and making him understand them. A manager has to

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continuously t guides and also at the same time, monitors his

subordinates about what to do, how to do, and when to do various

things.

Also, it is very essential to know their reactions. To do all this it

becomes essential to develop effective telecommunication facilities.

Therefore, the essential feature is to communicate with itself can be

called by developing mutual understanding inculcates a sense of

cooperation which builds an environment of coordination in the

organization.

6] Maintaining discipline and Rewarding Effective People

By maintaining an atmosphere of discipline and trust in the

organization, the manager can easily give directions. So that the work

done by his employees is in most efficient and effective manner.

In return, the employees will get a reward in the form of bonus,

incentives and other perks so as to get themselves associated with the

organization on a long-term basis. Therefore, this element of direction

also plays a very important role in achieving overall objectives of an

organization.

Page 15: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

Solved Questions for You

Q1. What the major elements involved in direction.

Ans. The elements mainly concerned with the directing function in an

organization are as follows-

1. Issuing orders and instructions

2. Supervision

3. Motivation

4. Leadership

5. Communication

6. Maintaining discipline approach

Q2. How can be communication prove to be an important element of

directing function in an organization?

Ans. As we can define communication to be an art of transferring

facts, ideas, feeling, etc. from one person to another and making him

understand them. Therefore the manager has to continuously guide

and also at the same time, monitors his subordinates about what to do,

how to do, and when to do various things.

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Also, it is very essential to know their reactions. To do all this it

becomes important to develop effective telecommunication facilities.

Therefore, the essential feature is to communicate with itself can be

called by developing mutual understanding inculcates a sense of

cooperation which builds an environment of coordination in the

organization.

Incentives

The incentive is a positive motivational influence on a person that

helps improve his performance. Thus, it can be said that all the

measures taken by the management to improve the performance of its

employees are incentives. The incentives can be broadly classified as

financial incentives and non-financial incentives.

Financial Incentives

In today’s socio-economic condition money has become a very

important part of our lives. We need money to satisfy almost all our

needs as it has purchasing power. Thus, financial incentives refer to

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those incentives which are in direct monetary form i.e. money or can

be measured in monetary terms.

Financial incentives can be provided on an individual or group basis

and satisfy the monetary and future security needs of individuals. The

most commonly used financial incentives are:

(a) Pay and Allowances

Salary is the basic incentive for every employee to work efficiently for

an organization. Salary includes basic pay, dearness allowance, house

rent allowance, and similar other allowances. Under the salary system,

employees are given increments in basic pay every year and also an

increase in their allowances from time-to-time. Sometimes these

increments are based on the performance of the employee during the

year.

Browse more Topics under Directing

● Introduction, Meaning, Importance & Principles of Directing

● Elements of Direction

● Leadership

● Communications

Page 18: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

(b) Bonus

It is a sum of money offered to an employee over and above the salary

or wages as a reward for his good performance.

(c) Productivity linked Wage Incentives

Many wage incentives are linked with the increase in productivity at

individual or group level. For example, a worker is paid 50 rupees per

piece if he produces 50 pieces a day but if he produces more than 50

pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st

piece, he will be paid 55 rupees.

(d) Profit-Sharing

Sometimes the employees are given a share in the profits of the

organization. This motivates them to perform efficiently and give their

best to increase the profits of the organization.

(e) Retirement Benefits

Retirement benefits like gratuity, pension, provident fund, leave

encashment, etc. provide financial security to the employees post their

retirement. Thus, they work properly when they are in service.

(f) Stock Options or Co-partnership

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Under the Employees Stock Option Plan, the employee is offered the

ordinary shares of the company at a price lower than its market price

for a specified period of time. These are non-standardized offers and

shares are issued as a private contract between the employer and

employee. These are generally offered to management as a part of

their managerial compensation package.

Allotment of shares induces a feeling of ownership in the employees

and they give their best to the company. Infosys, GoDaddy and The

Cheesecake Factory are some of the companies that have implemented

the scheme of the stock option.

(g) Commission

Some organizations offer a commission in addition to the salary to

employees for fulfilling the targets extremely well. This incentive

encourages the employees to increase the client base of the

organization.

(h) Perquisites

Several organizations offer perquisites and fringe benefits such as

accommodation, car allowance, medical facilities, education facilities,

recreational facilities, etc. in addition to the salary and allowances to

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its employees. These incentives also motivate the employees to work

efficiently.

What is Communication?

Non-Financial Incentives

Apart from the monetary and future security needs, an individual also

has psychological, social and emotional needs. Satisfying these needs

also plays an important role in their motivation. Non-financial

incentives focus mainly on the fulfillment of these needs and thus

cannot be measured in terms of money.

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However, there are chances that a particular non-financial incentive

may also involve the financial incentive as well. For example, when a

person is promoted his psychological needs are fulfilled as he gets

more authority, his status increases but at the same time, he has

benefitted monetarily also as he gets a rise in salary. The most

common non-financial incentives are:

(a) Status

With reference to an organization, status refers to the position in the

hierarchy of the organizational chart. The level of authority,

responsibility, recognition, salary, perks, etc. determine the status of

an employee in the organization.

A person at the top level management has more authority,

responsibility, recognition and salary and vice-versa. Status satisfies

the self-esteem and psychological needs of an individual and in turn,

motivates him to work hard.

(b) Organizational Climate

Organizational climate refers to the environmental characteristics of

an organization that are perceived by its employees about the

organization and have a major influence on their behavior. Each

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organization has a different organizational climate that distinguishes it

from other organizations.

Some of the factors that influence the organizational climate of an

enterprise are organizational structure, individual responsibility,

rewards, risk and risk-taking, warmth and support and tolerance and

conflict. When the organizational climate is positive employees tend

to be more motivated.

(c) Career Advancement Opportunity

It is very important for an organization to have an appropriate skill

development program and a sound promotion policy for its employees

which works as a booster for them to perform well and get promoted.

Every employee desires growth in an organization and when he gets

promotion as an appreciation of his work he is motivated to work

better.

(d) Job Enrichment

It refers to the designing of jobs in such a way that it involves a higher

level of knowledge and skill, a variety of work content, more

autonomy and responsibility of employees, meaningful work

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experience and more opportunities of growth. When the job is

interesting, it itself serves as a source of motivation.

(e) Job Security

Job security provides future stability and a sense of security among the

employees. The employees are not worried about the future and thus

work with more enthusiasm. Owing to the unemployment problem in

our country, job security works as a great incentive for the employees.

However, there is also a negative aspect of this incentive that

employees tend to take their job for granted and not work efficiently.

(f) Employee Recognition Programmes

Recognition means acknowledgment and appreciation of work done

by employees. Recognition in the organization boosts their self-esteem

and they feel motivated. For example, declaring the best performer of

the week or month, displaying their names on the notice board and

giving them rewards, fall under the Employee recognition program.

(g) Employee Participation

Involving the employees in decision making regarding the issues

related to them such as canteen committees, work committees, etc.

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also helps in motivating them and inducing a sense of belongingness

in them.

(h) Employee Empowerment

Giving more autonomy and powers to subordinates also make them

feel that they are important to the organization and in turn they serve

the organization better.

Solved Questions for You

Q: Which among the following allowances is paid to employees in

order to enable them to face the increasing price of essential

commodities?

a. Bonus

b. Commission

c. Increment

d. Dearness Allowance

Ans: The correct answer is D. Dearness Allowance is a cost of living

allowance paid to employees, to help accommodate the constantly

increasing cost of living.

Page 25: Introduction, Meaning, Importance and Principles of Directing · 2020-07-03 · Principles of Directing Directing is the heart of management function. All other functions of management

Leadership

Leaders and their leadership skills play an important role in the growth

of any organization. Leadership refers to the process of influencing the

behaviour of people in a manner that they strive willingly and

enthusiastically towards the achievement of group objectives.

A leader should have the ability to maintain good interpersonal

relations with the followers or subordinates and motivate them to help

in achieving the organizational objectives.

Features of Leadership

● Influence the behaviour of others: Leadership is an ability of an

individual to influence the behaviour of other employees in the

organization to achieve a common purpose or goal so that they

are willingly co-operating with each other for the fulfillment of

the same.

● Inter-personal process: It is an interpersonal process between

the leader and the followers. The relationship between the

leader and the followers decides how efficiently and effectively

the targets of the organization would be met.

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● Attainment of common organizational goals: The purpose of

leadership is to guide the people in an organization to work

towards the attainment of common organizational goals. The

leader brings the people and their efforts together to achieve

common goals.

● Continuous process: Leadership is a continuous process. A

leader has to guide his employees every time and also monitor

them in order to make sure that their efforts are going in the

same direction and that they are not deviating from their goals.

● Group process: It is a group process that involves two or more

people together interacting with each other. A leader cannot

lead without the followers.

● Dependent on the situation: It is situation bound as it all

depends upon tackling the situations present. Thus, there is no

single best style of leadership.

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Importance of Leadership:

● Initiating Action: Leadership starts from the very beginning,

even before the work actually starts. A leader is a person who

communicates the policies and plans to the subordinates to start

the work.

● Providing Motivation: A leader motivates the employees by

giving them financial and non-financial incentives and gets the

work done efficiently. Motivation is the driving force in an

individual’s life.

● Providing guidance: A leader not only supervises the

employees but also guides them in their work. He instructs the

subordinates on how to perform their work effectively so that

their efforts don’t get wasted.

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● Creating confidence: A leader acknowledges the efforts of the

employees, explains to them their role clearly and guides them

to achieve their goals. He also resolves the complaints and

problems of the employees, thereby building confidence in

them regarding the organization.

● Building work environment: A good leader should maintain

personal contacts with the employees and should hear their

problems and solve them. He always listens to the point of

view of the employees and in case of disagreement persuades

them to agree with him by giving suitable clarifications. In case

of conflicts, he handles them carefully and does not allow it to

adversely affect the entity. A positive and efficient work

environment helps in stable growth of the organization.

● Co-ordination: A leader reconciles the personal interests of the

employees with the organizational goals and achieves

co-ordination in the entity.

● Creating Successors: A leader trains his subordinates in such a

manner that they can succeed him in future easily in his

absence. He creates more leaders.

● Induces change: A leader persuades, clarifies and inspires

employees to accept any change in the organization without

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much resistance and discontentment. He makes sure that

employees don’t feel insecure about the changes.

Often, the success of an organization is attributed to its leaders. But,

one must not forget that it’s the followers who make a leader

successful by accepting his leadership. Thus, leaders and followers

collectively play a key role to make leadership successful.

Browse more Topics Under Directing

● Introduction, Meaning, Importance & Principles of Directing

● Elements of Direction

● Incentives

● Leadership

● Communications

Qualities of a Leader

● Personality: A pleasing personality always attracts people. A

leader should also friendly and yet authoritative so that he

inspires people to work hard like him.

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● Knowledge: A subordinate looks up to his leader for any

suggestion that he needs. A good leader should thus possess

adequate knowledge and competence in order to influence the

subordinates.

● Integrity: A leader needs to possess a high level of integrity

and honesty. He should have a fair outlook and should base his

judgment on the facts and logic. He should be objective and not

biased.

● Initiative: A good leader takes initiative to grab the

opportunities and not wait for them and use them to the

advantage of the organization.

● Communication skills: A leader needs to be a good

communicator so that he can explain his ideas, policies, and

procedures clearly to the people. He not only needs to be a

good speaker but also a good listener, counsellor, and

persuader.

● Motivation skills: A leader needs to be an effective motivator

who understands the needs of the people and motivates them by

satisfying those needs.

● Self-confidence and Will Power: A leader needs to have a high

level of self-confidence and immense will-power and should

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not lose it even in the worst situations, else employees will not

believe in him.

● Intelligence: A leader needs to be intelligent enough to analyze

the pros and cons of a situation and take a decision accordingly.

He also needs to have a vision and fore-sightedness so that he

can predict the future impact of the decisions taken by him.

● Decisiveness: A leader has to be decisive in managing his work

and should be firm on the decisions are taken by him.

● Social skills: A leader should possess empathy towards others.

He should also be a humanist who also helps the people with

their personal problems. He also needs to possess a sense of

responsibility and accountability because with great authority

comes great responsibility.

Leadership Styles

● Autocratic leadership style: It refers to a leadership style where

the leader takes all the decisions by himself.

● Democratic leadership style: It refers to a style where the leader

consults its subordinates before taking the final decision.

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● Laissez-faire or Free-rein leadership style: It refers to a style

where the leader gives his subordinates complete freedom to

take the decisions.

Solved Question for You

Q: All decision power is centralized in a ________.

a. Democratic Leadership

b. Laissez Faire leadership

c. Autocratic Leadership

d. All of the above

Ans: The correct answer is C. An autocratic leader does not delegate

any authority or responsibility to anyone. They just make decisions on

their own and communicate them expecting implementation.

Communication

Communications is fundamental to the existence and survival of

humans as well as to an organization. It is a process of creating and

sharing ideas, information, views, facts, feelings, etc. among the

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people to reach a common understanding. Communication is the key

to the Directing function of management.

A manager may be highly qualified and skilled but if he does not

possess good communication skills, all his ability becomes irrelevant.

A manager must communicate his directions effectively to the

subordinates to get the work done from them properly.

Communications Process

Communications is a continuous process which mainly involves three

elements viz. sender, message, and receiver. The elements involved in

the communication process are explained below in detail:

1. Sender

The sender or the communicator generates the message and conveys it

to the receiver. He is the source and the one who starts the

communication

2. Message

It is the idea, information, view, fact, feeling, etc. that is generated by

the sender and is then intended to be communicated further.

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Browse more Topics under Directing

● Introduction, Meaning, Importance & Principles of Directing

● Elements of Direction

● Incentives

● Leadership

3. Encoding

The message generated by the sender is encoded symbolically such as

in the form of words, pictures, gestures, etc. before it is being

conveyed.

4. Media

It is the manner in which the encoded message is transmitted. The

message may be transmitted orally or in writing. The medium of

communication includes telephone, internet, post, fax, e-mail, etc. The

choice of medium is decided by the sender.

Learn more about Types of Communication here in detail.

5. Decoding

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It is the process of converting the symbols encoded by the sender.

After decoding the message is received by the receiver.

6. Receiver

He is the person who is last in the chain and for whom the message

was sent by the sender. Once the receiver receives the message and

understands it in proper perspective and acts according to the message,

only then the purpose of communication is successful.

7. Feedback

Once the receiver confirms to the sender that he has received the

message and understood it, the process of communication is complete.

8. Noise

It refers to any obstruction that is caused by the sender, message or

receiver during the process of communication. For example, bad

telephone connection, faulty encoding, faulty decoding, inattentive

receiver, poor understanding of message due to prejudice or

inappropriate gestures, etc.

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(Source: businessjargons)

Importance of Communication

1. The Basis of Co-ordination

The manager explains to the employees the organizational goals,

modes of their achievement and also the interpersonal relationships

amongst them. This provides coordination between various employees

and also departments. Thus, communications act as a basis for

coordination in the organization.

2. Fluent Working

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A manager coordinates the human and physical elements of an

organization to run it smoothly and efficiently. This coordination is

not possible without proper communication.

3. The Basis of Decision Making

Proper communication provides information to the manager that is

useful for decision making. No decisions could be taken in the

absence of information. Thus, communication is the basis for taking

the right decisions.

Learn more about Barriers of Communication here in detail.

4. Increases Managerial Efficiency

The manager conveys the targets and issues instructions and allocates

jobs to the subordinates. All of these aspects involve communication.

Thus, communication is essential for the quick and effective

performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace

The two-way communication process promotes co-operation and

mutual understanding amongst the workers and also between them and

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the management. This leads to less friction and thus leads to industrial

peace in the factory and efficient operations.

6. Boosts Morale of the Employees

Good communication helps the workers to adjust to the physical and

social aspect of work. It also improves good human relations in the

industry. An efficient system of communication enables the

management to motivate, influence and satisfy the subordinates which

in turn boosts their morale and keeps them motivated.

Types of Communication

1. Formal Communication

Formal communications are the one which flows through the official

channels designed in the organizational chart. It may take place

between a superior and a subordinate, a subordinate and a superior or

among the same cadre employees or managers. These communications

can be oral or in writing and are generally recorded and filed in the

office.

Formal communication may be further classified as Vertical

communication and Horizontal communication.

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Vertical Communication

Vertical Communications as the name suggests flows vertically

upwards or downwards through formal channels. Upward

communication refers to the flow of communication from a

subordinate to a superior whereas downward communication flows

from a superior to a subordinate.

Application for grant of leave, submission of a progress report, request

for loans etc. are some of the examples of upward communication.

Sending notice to employees to attend a meeting, delegating work to

the subordinates, informing them about the company policies, etc. are

some examples of downward communication.

Horizontal Communication

Horizontal or lateral communication takes place between one division

and another. For example, a production manager may contact the

finance manager to discuss the delivery of raw material or its

purchase.

Types of communication networks in formal communication:

● Single chain: In this type of network communications flows

from every superior to his subordinate through a single chain.

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● Wheel: In this network, all subordinates under one superior

communicate through him only. They are not allowed to talk

among themselves.

● Circular: In this type of network, the communication moves in

a circle. Each person is able to communicate with his adjoining

two persons only.

● Free flow: In this network, each person can communicate with

any other person freely. There is no restriction.

● Inverted V: In this type of network, a subordinate is allowed to

communicate with his immediate superior as well as his

superior’s superior also. However, in the latter case, only

ordained communication takes place.

2. Informal Communication

Any communication that takes place without following the formal

channels of communication is said to be informal communication. The

Informal communication is often referred to as the ‘grapevine’ as it

spreads throughout the organization and in all directions without any

regard to the levels of authority.

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The informal communication spreads rapidly, often gets distorted and

it is very difficult to detect the source of such communication. It also

leads to rumors which are not true. People’s behavior is often affected

by the rumors and informal discussions which sometimes may hamper

the work environment.

However, sometimes these channels may be helpful as they carry

information rapidly and, therefore, may be useful to the manager at

times. Informal channels are also used by the managers to transmit

information in order to know the reactions of his/her subordinates.

Learn more about 7 C’s of Communication here in detail.

Types of Grapevine network:

● Single strand: In this network, each person communicates with

the other in a sequence.

● Gossip network: In this type of network, each person

communicates with all other persons on a non-selective basis.

● Probability network: In this network, the individual

communicates randomly with other individuals.

● Cluster Network: In this network, the individual communicates

with only those people whom he trusts. Out of these four types

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of networks, the Cluster network is the most popular in

organizations.

Barriers to Communication

The communication barriers may prevent communication or carry

incorrect meaning due to which misunderstandings may be created.

Therefore, it is essential for a manager to identify such barriers and

take appropriate measures to overcome them. The barriers to

communication in organizations can be broadly grouped as follows:

1. Semantic Barriers

These are concerned with the problems and obstructions in the process

of encoding and decoding of a message into words or impressions.

Normally, such barriers result due to use of wrong words, faulty

translations, different interpretations, etc.

For example, a manager has to communicate with workers who have

no knowledge of the English language and on the other side, he is not

well conversant with the Hindi language. Here, language is a barrier to

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communication as the manager may not be able to communicate

properly with the workers.

2. Psychological Barriers

Emotional or psychological factors also act as barriers to

communication. The state of mind of both sender and receiver of

communication reflects in effective communication. A worried person

cannot communicate properly and an angry recipient cannot

understand the message properly.

Thus, at the time of communication, both the sender and the receiver

need to be psychologically sound. Also, they should trust each other.

If they do not believe each other, they cannot understand each other’s

message in its original sense.

3. Organizational Barriers

The factors related to organizational structure, rules and regulations

authority relationships, etc. may sometimes act as barriers to effective

communication. In an organization with a highly centralized pattern,

people may not be encouraged to have free communication. Also,

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rigid rules and regulations and cumbersome procedures may also

become a hurdle to communication.

4. Personal Barriers

The personal factors of both sender and receiver may act as a barrier

to effective communication. If a superior thinks that a particular

communication may adversely affect his authority, he may suppress

such communication.

Also, if the superiors do not have confidence in the competency of

their subordinates, they may not ask for their advice. The subordinates

may not be willing to offer useful suggestions in the absence of any

reward or appreciation for a good suggestion.

Solved Question for You

Q: List the measures to improve communication effectiveness?

Answer: Measures to improve communication effectiveness are as

follows

1. Communication of Clarification of the idea.

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2. Communication should be according to the needs of the

receiver.

3. Consulting others before communication.

4. Awareness about the language, tone and body postures and

gestures.

5. Convey information useful to the receiver.

6. Ensure proper feedback.

7. Follow up communications.

8. Be a good listener.