DIRECTING

AND
CONTROLLING
 Outline
 Meaning & Nature of Directing
 Leadership Styles
 Motivation Theories
 Meaning & Importance of Communication
 Meaning & Importance of Coordination
 Techniques of Coordination.
 Meaning & Steps in Controlling
 Essentials of a Sound Control System
 Methods of Establishing Control
 Directing
 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 includes issuing orders,
instructing, guiding, helping, motivating,
designing good environment to work,
providing rewards etc..
 Meaning
1. Communication: Issuing orders and instructions
to subordinates.
2. Leadership: guiding, advising and helping sub-
ordinates towards accomplishment of work.
3. Motivation: inspiring sub-ordinates to achieve
goals by providing them incentives as well as
good working environment.
4. Supervision: supervising of sub-ordinates to
ensure that they work according to plan.
 Nature of Directing
 Directing involves human factor: deals
with people. It is involved in the
management of human behaviour. It aims at
creating co-operation and harmony among
the members of a group.
 Directing is a continuous function: it is a
dynamic and continues activity of
managers. It is an ongoing activity wherein
the managers are expected to
direct,guide,teach and lead other sub-
ordinates.
 Directing provides a link:It provides
link between planning and staffing with
coordination and control.It serves as a
connecting and activating link among all
managerial functions.
 Directing concentrates on
performance: It is a creative function
which makes things happen.translates
plan into performance.makes people
result oriented.clears doubt of
employees.
 Directing is all pervasive:It means
that directing exists at all levels of
organization and across all dept.
 Leadership
 The ability to influence people towards
accomplishment of goals
 Importance of leadership
 Leaders Guide & Inspire Subordinate
 Leads by example.
 Leaders keep all ommunication channels open
 Leaders secure cooperation from the group
 Leaders act as change agents
 Leaders are representatives of the followers
 Leaders develop great vision
 Leadership Styles

 Traits Approach
 Behavioural Approach
 Contingency Approach
Traits Approach

 It always dealt with Personal abilities.

 The Traits that associate with Leadership
are identified as: Emotional
stability,Objectivity,Motivation,Communic
ation skills etc.
 Behavioural Approach

 Style Based on the Authority

 Likerts Four Systems of managing
 The managerial grid
 Leadership involving a variety of styles
Style Based on the Authority

 Autocratic/Authoritative Style
 Democratic/Participative Style
 Laissez Faire/ Free Rein Style
Leadership Styles
Leadership Styles
• Autocratic leadership style: In this style of leadership, a leader has
complete command and hold over their employees/team.

• The team cannot put forward their views even if they are best for the
team’s or organizational interests.

• They cannot criticize or question the leader’s way of getting things

done. The leader himself gets the things done.

Autocratic
Leader

Subordinates
• The advantage of this style is that it leads to speedy decision-
making and greater productivity under leader’s supervision.
•
• Drawbacks of this leadership style are that it leads to greater
employee absenteeism and turnover.
•
• This leadership style works only when the leader is the best in
performing or when the job is monotonous, unskilled and routine in
nature or where the project is short-term
Democrative/Participative leadership style:

Democratic or
Participative Leader

Subordinates
Democrative/Participative leadership style:

• The leaders invite and encourage the team members to play an

important role in decision-making process, though the ultimate
decision-making power rests with the leader.
•
• The leader guides the employees on what to perform and how to
perform, while the employees communicate to the leader their
experience and the suggestions if any.
•
• The advantages of this leadership style are that it leads to satisfied,
motivated and more skilled employees.
• It leads to an optimistic work environment and also encourages
creativity.
•
• This leadership style has the only drawback that it is time-consuming.
The Laissez Faire Leadership Style: (Free-rein Style)

Free-Rain Leader

Subordinates
The Laissez Faire Leadership Style: (Free-rein Style)
• Here, the leader totally trusts their employees/team to perform the
job themselves.
•
• He just concentrates on the intellectual/rational aspect of his
work and does not focus on the management aspect of his work.
•
• The team/employees are welcomed to share their views and
provide suggestions which are best for organizational interests.
•
• This leadership style works only when the employees are skilled,
loyal, experienced and intellectual.
 Likerts Four systems of
Management
System 1:This is called “Exploitive Authoritative “

System 2:This is called “Benevolent Authoritative “

System 3:This is called “Consultive Management “

System 4:This is called “Participative Group “

Managerial Grid
 Contingency Approach
 Combines the both Autocratic and
Democratic Leadership.
 MOTIVATION
 Motivation is inspiring the subordinates to
contribute with zeal and enthusiasm
towards organizational goals.
 Performance of an employee
 Performance = (Ability +Knowledge)X Motivation
 Motivation is enhancing the willingness to
work which improves the performance.
Motivation Theories
1)Content Theories
 Maslow’s Need Hierarchy Theory
 Herzberg’s Two Factors Theory
 MCGREGORS Theory X and Theory Y
 McClelland’s Achievement Theory
2) Process Theories
 Adam’s Equity Theory
 Victor Vroom’s Expectancy Theory
3)Reinforcement Theories
 Skinner’s Behavioural Modification
Theory
 Maslow’s Need Hierarchy Theory
 An unsatisfied need is the starting point in the
motivation process.
 A.H. Maslow in 1943
Herzberg’s Two-Factor Theory of Motivation

• In 1959, Frederick Herzberg, a behavioral scientist proposed a two-

factor theory or the motivator-hygiene theory.
• According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent
dissatisfaction.
• According to Herzberg, the opposite of “Satisfaction” is “No
satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.
• Herzberg classified these job factors into two categories-
• Hygiene factors-
– Hygiene factors are those job factors which are essential for existence of
motivation at workplace.
– These do not lead to positive satisfaction for long-term. But if these factors
are absent / if these factors are non-existent at workplace, then they lead to
dissatisfaction.
–
• Hygiene factors include:
– Pay - The pay or salary structure should be appropriate and reasonable.
–
– Company Policies and administrative policies - The company policies should
not be too rigid. They should be fair and clear.
–
– Fringe benefits - The employees should be offered health care plans
(mediclaim), benefits for the family members,
• Physical Working conditions - The working conditions should be
safe, clean and hygienic. The work equipments should be updated
and well-maintained.
•
• Status - The employees’ status within the organization should be
familiar and retained.
•
• Interpersonal relations - The relationship of the employees with
his peers, superior
•
• Job Security - The organization must provide job security to the
employees and subordinates should be appropriate and acceptable.
• Motivational factors-
• According to Herzberg, the hygiene factors cannot be regarded as
motivators.
• The motivational factors yield positive satisfaction. These factors
are inherent to work. These factors motivate the employees for a
superior performance. These factors are called satisfiers. These are
factors involved in performing the job. Employees find these factors
intrinsically rewarding.
• The motivators symbolized the psychological needs that were
perceived as an additional benefit.
Motivational factors include:
– Recognition
– Sense of achievement
– Growth and promotional opportunities
– Responsibility
– Meaningfulness of the work
McGregor’s Theory X and Theory Y

• In 1960, Douglas McGregor formulated Theory X and Theory Y

suggesting two aspects of human behavior at work, or in other
words, two different views of individuals (employees):
•
• One of which is negative, called as Theory X and the other is
positive, so called as Theory Y.
•
• According to McGregor, the perception of managers on the
nature of individuals is based on various assumptions.
Assumptions of Theory X
• An average employee intrinsically does not like work and tries to
escape it whenever possible.
•

• Since the employee does not want to work, he must be persuaded,

compelled, or warned with punishment so as to achieve
organizational goals. A close supervision is required on part of
•
managers. The managers adopt a more dictatorial style.
• Many employees rank job security on top, and they have little or
•
no aspiration/ ambition.
• Employees generally dislike responsibilities.
•

• Employees resist change.

•

• An average employee needs formal direction.

•
 Assumptions of Theory Y
• Employees can perceive their job as relaxing and normal. They exercise
•
their physical and mental efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to
work, but they can use self-direction and self-control if they are dedicated
•
and sincere to achieve the organizational objectives.
• If the job is rewarding and satisfying, then it will result in employees’
•
loyalty and commitment to organization.
• An average employee can learn to admit and recognize the responsibility. In
fact, he can even learn to obtain responsibility.
•

• The employees have skills and capabilities. Their logical capabilities should
be fully utilized. In other words, the creativity, resourcefulness and
innovative potentiality of the employees can be utilized to solve
organizational problems.
•
 McClelland’s three need model
 The need for power: people with high need for power
have a great longing for exercising influence and
control seek for positions of leaderships. He does
most of the things himself rather than getting them
done by others.
 The need for affiliation: need for affiliation reflects a
desire to interact socially with people
 The need for achievement: A person with need for
achievement is concerned with setting moderately
difficult but potentially achievable goals.desire for
success and equally intense fear of failure. They tend
to be restless, work long hours, and like to run their
own shows.
Expectancy Theory of Motivation

• The expectancy theory was proposed by Victor Vroom of Yale

School of Management in 1964.
•
• Vroom stresses and focuses on outcomes, and not on needs unlike
Maslow and Herzberg.
•
• The theory states that the intensity of a tendency to perform in a
particular manner is dependent on the intensity of an expectation
that the performance will be followed by a definite outcome and on
the appeal of the outcome to the individual.
 Victor Vroom’s Expectancy Theory

 People’s motivation towards doing anything will be

determined by the value they place on the outcome of
their effort multiplied by the confidence they have
that their efforts will materially aid in achieving a
goal.
 Force = Valence × Expectancy
- Force is the strength of a person’s motivation
 valance is the strength of an individual performance for an
outcome
 expectancy is the probability that a particular action will lead to a
desired outcome.
• The Expectancy theory states that employee’s motivation is an
outcome of how much an individual wants a reward (Valence), the
assessment that the likelihood that the effort will lead to expected
performance (Expectancy) and the belief that the performance will
lead to reward (Instrumentality).
•
• In short,Valence is the significance associated by an individual
about the expected outcome.
•
• It is an expected and not the actual satisfaction that an employee
expects to receive after achieving the goals
• Expectancy is the faith that better efforts will result in better
performance.
•
• Expectancy is influenced by factors such as possession of
appropriate skills for performing the job, availability of right
resources, availability of crucial information and getting the
required support for completing the job.
•
• Instrumentality is the faith that if you perform well, then a valid
outcome will be there.
• Instrumentality is affected by factors such as believe in the people
who decide who receives what outcome, the simplicity of the
process deciding who gets what outcome, and clarity of relationship
between performance and outcomes.
 Adam’s equity theory
 Major factor in job motivation, performance,
satisfaction is the individual’s evaluation of
the equity of reward he or she is receiving.
 Equity is defined as the ratio of inputs to
job rewards.
 Equity=Job inputs/Job Rewards.
 Skinner’s Behavioural
Modification Theory
-People behave the way they do because, in past
circumstances, they have learn’t certain behaviuors
associated with pleasant outcome and unpleasant outcome.
-When positive reinforcement is being used to increase the
frequency of desired behaviour frequency of reward must be
considered.
-This approach unlike other behavioural approaches avoids
concerns for the inner motivation of the individual.
It doesn’t consider man’s needs, aspirations.
 Drawbacks

It overemphasises the importance of extrinsic

rewards and ignores the fact that people are
better motivated by intrinsic rewards.

This theory is unethical because no manager

has right to control and manipulate
employees behaviour.
 Communication
 The process of exchange of information, ideas
and opinions which bring about integration of
interests aims and efforts among the members
of a group organized for achievement of
predetermined goals.

 Process of passing information and

understanding from one person to another
 Systems of Communication

 According to Organizational structure:

(a)Formal (b)Informal
 According to Direction of Expression:
(a)Downward (b)Upward (c) Horizontal
 According to the way of Expression:
(a)Oral or vertical (b)Written
 Importance of communication

1.Communication is fundamental to accomplish work.

• manager spends most of his time in communicating ie reading, writing,
speaking or listening.
• Through which he informs motivates & leads his employees.

2.Communication facilitates planning.

• Planning requires extensive Communication.

3.Communication helps in decision making.

• Decision depends on information which is gathered through Communication.
4.Communication is the basis of coordination.
• If all dept. & divisions of an org. have to coordinate their efforts to achieve the
common goals Communication is essential.

5.Communication improves relationships.

• Communication builds bridges of relationships between employees.
• It helps exchange of facts,ideas,feelings, sentiments among the employees
apart from work related information.

6.Communication morale and motivation.

• When manager listen to employees grievances & take necessary action , it
improves the morale of workers. Which is possible because of
communication.

7.Communication is key to managerial efficiency.

• The success or growth of a manager depends on his communication skills.
 Coordination
 Coordination deals with the task of blending
efforts in order to ensure successful attainment of
an objective. It is accomplished by means of
planning, organizing directing and controlling.

 Coordination is the orderly arrangement of

group efforts to provide unity of action in
pursuit of a common purpose.
 Importance of coordination
1.Coordination increases efficiency.
• Helps in minimizing wastages, overlapping &
duplication of work.
2.Coordination improves human relations.
• With coordination members begin to work, understand
& adjust, trust with each other.
3.Coordination resolves conflicts.
• This arrives because of differences between
organizational & individual goal that can be avoided
only through coordination
4.Coordination makes all departments focus together.
• Different dept. like production, R&D, finance, marketing etc
have to jointly focus to achieve better result.

5.Coordination helps sharing of resources.

• If there is shortage of resources like manpower , finance etc
coordination is the only way to ensure the best distribution of
resources among all.

6.Coordination retains & attracts talent.

• Good coordination not only improves relationship but also
increases profit so naturally talented youngsters are attracted to
join such an org.
 Controlling
 Control is checking current performance against
predetermined standards contained in the plans,
with the view to ensuring adequate progress and
satisfactory performance.

 Controlling is determining what is being

accomplished, that is, evaluating the performance
and if necessary applying corrective measures so
that the performance takes place according to plans
 Steps in a Controlling
1. Establishment of standards
 Quantitative standards: production level, labour
hour, expense, profit
 Qualitative standards: employee morale, company
image, industrial relations
2. Measuring and comparing actual
performance with standards
-Completion: performance measurement has to be complete
in all respect.
-Objective: performance should be measured without fear
,favour & bias.
-Responsiveness: management of performance should
support effort and performance that lead to
improvement.
 Steps in a Controlling
3. Taking corrective measures
 Change in methods, rules, procedures, etc
 Introduce training program
 Job redesign
 Replacement of personnel
 Re-establishing budgets & standards
 Better compensation packages to employees
 Changing machinery & processes
 Identify recurring bottle necks & avoiding them
Methods of establishing control
 Traditional Control Techniques
1. Budgetary control: written plan/program in
monetary terms.
2. Standard costing: estimating most efficient
cost of manufacturing a product.
 Methods of establishing control
 Modern Control Techniques
1. Break even analysis: Understanding the cost involved
in producing a product & fixing selling price
2. PERT
3. CPM
4. SQC –Statistical Quality Analysis: Techniques to
study deviation in actual performance against
established standards.
5. Quality Circles: solve quality related problem
6. Internal audit: systematic & impartial examination
and analysis of management overall performance.
7. MIS: computer based system but supports effective
managerial decision making.
 Methods of establishing control
 Other Control Techniques
1. Policies & Procedures: these are guidelines for
manages to control behaviour of employees.
2. Standing Rules, Limitation and Order: when
subordinates are given freedom to make decisions it
is necessary to lay down limits for them.
3. Self Control: employees must do what is expected of
him.
4. Group Control :for effective group control effective
and inspirational leadership is necessary.
5.Personal Observation: where manager spends his
time regularly in the work area and interacts
directly with employees.
6.Disciplinary Action: this is the negative approach,
it is necessary when employees to be controlled are
unskilled, rustic,harsh.