CHAPTER SEVEN

THE LEADING/DIRECTING FUNCTION

1. Introduction
This unit discusses the concept of leadership. The mining and concept of motivation get more
focus in this unit. It also explains why motivation is so important in management and how
managers in different levels motivate people under their command. Theories of motivation
are discussed and the different styles of leadership in lined with their merit and demerit are
offered as well. The concept and process of communication also introduced.
➢ Elements of Directing/Leading
There are three elements of directing that helps managers to influence people to contribute
willingly for the achievement of organizational goal. These are:
1) Leadership
2) Motivation
3) Communication

1. Meaning and the need for leadership

According to Kooth and Weihrich, Leading is the process of influencing people so that they
will contribute to organization and group goals. It is influencing people so that they will work
willingly and enthusiastically toward the achievement of organizational goals ultimate
objectives. When we say influencing, it does not mean that coercing/forcing, imposing,
suctioning or pushing people behind. It means rather-motivating people so that they
contribute their maximum effort for the achievement of organizational goal.
Leading/Directing is that part of management function which actuates the organization
members to work efficiently and effectively for the attainment of organizational objectives.
Planning, organizing, and staffing are merely preparations for doing the work, and the work
actually starts when managers start performing the directing function.
Directing is a challenging function of management, because it deals with the human element
of the organization, which represents a complex of forces about whom not much is known. A
person's beliefs, hopes, ambitions, behavior, satisfaction, and interaction with other persons
are all involved in the directing process.

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 Theories of Leadership
1. The Trait Theory of Leadership
Traits are inborn and inherent personal qualities of individuals. This theory believes leaders
possess certain specific inborn traits, which are inherited rather than acquired. It has a root
from "the great man theory" dating back to the ancient Greeks and Romans time, holds that
leaders are born not made. The trait theory studies focused on the personal traits of leaders
and attempted to identify a set of individual characteristics that distinguished leaders from
followers' and also successful leaders from unsuccessful ones. In general the trait theory
hasn't been a fruitful approach to explain leadership.
2. The Behavioral Theory of Leadership
The behavioral theory of leadership focused on what leaders do rather than their traits.
Studies showed that one set of traits/leadership style might not be equally appropriate in all
situations. This theory suggested that there were two distinct types of leadership which are
known as task- oriented /production centered/ and employee oriented /people centered/.
3. The situational /contingency/ theory of leadership
According to this theory, leadership is strongly affected by a situation from which a leader
emerges and in which he/she works. It's a function of the leader, the followers and the
situation. It attempts to discover that the one unique set of leadership traits were largely
unsuccessful. Modern management theorists are more prone to the belief that leadership is
more complex; that is it can't be represented by one set of traits or by single set of behavior,
thus effective leadership behavior depends on the environment or the situation.

Concept Leadership Styles

Managers in an organization shall relatively be consistent in the way they try to influence
others behavior. The manager who dominates subordinates in one situation is not likely to use
a high degree of consideration and participation in another. This behavioral pattern of leaders
is known as leadership style. It can be defined as the various patterns of behavior favored by
leaders during the process of directing and influencing workers, which is determined by
leader’s personality, experience and value system, nature of followers and environment.
There are three important leadership styles:
A) Autocratic

B) Democratic /participate/
C) Laissez-faire /free rein

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A. Autocratic Style "I" Approach

It is a leadership approach in which a manager does not share decision making authority with
subordinates. Autocratic managers may ask for subordinates' ideas & feedback about the
decision, but the input does not usually change the decision unless it indicates that something
vital has been overlooked. Under certain conditions, the autocratic style is appropriate.
This leadership style is closely associated with the classical approach to management and it is
characterized by the following behavioral patterns of leaders.
o The leader doesn't seek any opinions from subordinates, holds conflicts and
with less creativity.
o Exercises rigid control and close supervision, relies on punishments.
o Subordinates typically react by doing only what's expected and by
suppressing their frustration.
o The autocratic leader is task-oriented, gives little value on showing
consideration to subordinates.
o Depends on one way communication downward only.
B. Participate (democratic) Style "We" Approach
It is a leadership approach in which a manager shares decision making authority with
subordinates. It involves others and lets them bring their unique viewpoints, talents and
experiences to bear on an issue. Before subordinates are made to participate in the decision
making process:
 Mutual trust and respect must exist between them and managers
 Subordinates must be willing and trained to be competent to solve problems
 Managers should give time and be patient to make subordinates participate.
However, limits on subordinates' participation must be clearly spelled out before hand there
should be no misunderstanding about who holds authority to do what. This leadership style is
characterized by the following behavioral patterns of the leader.
 Allows the group members to participate in decision making process, proposed
actions and encourages participation at all levels.
 The leader will develop two way communications and promote team sphere.
 The democratic leader explains to the group members like reasons for personal
decisions when necessary and objectively communicates criticism and praise to
subordinates.

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C. Free-rein Style "They" Approach
It empowers individuals or groups to function on their own, without direct involvement from
the managers to whom they report. The style relies heavily on delegation of authority, and
works best when the parties have expert power, when participants have and know how to use
the tools and techniques needed for their tasks.
Free-rein leadership works particularly well with managers and experienced professionals in
engineering, design, research and sales. Such people generally resist other kinds of
supervision. In most organizations managers must be able to use the decision making style
that circumstances dictate, because people and circumstance constantly change and because
subordinates must be prepared to the change. The effective manager switches from one
leadership style to another as appropriate.
The following are the behavioral patterns of laissez-faire leader:
 Laissez-faire leaders make a few attempts to increase productivity, to develop their
attempts or to meet subordinates psychological needs.
 Use their power very little, giving subordinates a high degree of independence in
their operation.
 These leaders maintain hands off policy where each subordinate work is clearly
defined.
 Such leaders depend on subordinates to set their own goals and the means of
achieving them, and they see their role as one of aiding the operations of followers by
furnishing them information and acting primarily as a contact with the groups external
environment.
 The laissez-faire leader has little or no self-confidence in his/her leadership ability,
sets and goals for the group and minimizes communication and group interaction.

2. Motivation
Motivation refers to the forces to a person that arouse enthusiasm and persistence to pursue a
certain course of action. It means stimulating people to action through incentives or
inducements. The study of motivation helps managers understand what prompts/stimuli
people to initiate action, what influences their choice of action, and why they persist in that
action over time. People have basic needs such as for food, achievements or monetary gain
that translate into an internal tension that motivates specific behaviors with which to fulfill
the need. To the extent that the behavior is successful, the person is rewarded in the sense
that the need is satisfied. The reward also informs the person that the behavior was

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appropriate and can be used again in the future. There are two types of rewards in motivation:
Intrinsic reward - the satisfaction a person receives in the process of performing a particular
action. The completion of a complex task may bestow a pleasant feeling of accomplishment,
or solving a problem that benefits others may fulfill a personal mission.
Extrinsic rewards - given by another person, typically the manager, and include promotion
and pay increases.
Theories of Motivation
The following are some of the basic theories of motivation:
A. The Carrot and the Stick Approach
The carrot and the stick metaphor relates to the use of rewards and penalties in order to
induce desired behavior. It comes from the old story that to make a donkey move one must
put a carrot in front of him or jab him with a stick from behind. Carrot represents rewards
(money, bonus, salary increase, employment, promotion etc) while stick implies penalty,
punishment, fear of loss of job, demotion etc. Despite many new theories of motivation,
reward and punishment are still considered as strong motivators. For centuries, however, they
were too often thought of as the only forces that motivate people. The problem with this
theory is that it is difficult to motivate white collar people with material incentive and the
stick in the form of penalty is admittedly not the best kind (negative motivator).

B. Hierarchy of Needs Theory (Abraham Maslow)

It proposes that humans are motivated by multiple needs and that these needs exist in
hierarchy order:
1. Physiological needs - the need for food, water, air , shelter…
2. Safety needs - the need for security and safety
3. Belongingness/Social needs - the need for friendship, interaction and love
4. Esteem needs - the need for respect and recognition
5. Self-actualization needs - the ability to reach one's potentials

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 The above theory is based on-
❖ Only an unsatisfied need can influence behavior; a satisfied need is not a motivator.
❖ A person's needs are arranged in a priority order of importance. The hierarchy goes from the
most basic needs to the best complex.
❖ A person will at least minimally satisfy each level of need before feeling the need at the next
level.
❖ If need satisfaction is not maintained at any level, the unsatisfied need will become a priority
once again. For example, for a person who is presently feeling social needs, safety will
become a priority once again if he or she is fired.

C. Alderfer’s ERG Theory

Clay Alderfer agrees with Maslow that individuals have a hierarchy of needs. But instead of the
five categories of needs suggested by Maslow, Alderfer's ERG Theory holds that the individual has
three sets of basic needs: existence, relatedness, and growth.
Alderfer describes them as follows:
▪ Existence needs, or material needs, which are satisfied by food, air, water, pay, fringe benefits, and
working conditions.
▪ Relatedness needs, or needs for establishing and maintaining interpersonal relationships with co-
workers, superiors, subordinates, friends, and family.
▪ Growth needs, or needs that are expressed by an individual's attempt to find opportunities for
unique personal development by making creative or productive contributions at work.
The arrangement of these categories of needs is similar to Maslow's. Existence (E) needs are
similar to Maslow's physiological and safety needs; relatedness (R) needs are similar to
Maslow's affiliation needs; and growth (G) needs are similar to Maslow's esteem and self-
actualization needs.
However, the two theories differ in their views of how way people satisfy the different sets of
needs. Maslow states that unfulfilled needs are motivators and that the next higher level need is
not activated until the preceding lower level need is satisfied. Thus a person progresses up the
needs hierarchy as each set of lower level needs is satisfied. In contrast, ERG theory suggests
that in addition to this fulfillment-progression process, a frustration-regression process is at
work at the same time.

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 D. The Two-Factor Theory (Herzberg 1975)
The findings of the two factor theory suggested that the work characteristics associated with
dissatisfaction are quite different from those pertaining to satisfaction which prompted the
notion that two factors influence work motivation. These factors are hygiene factors and
motivation factors.
Hygiene factors: (salary, job security, working conditions, status; company policies; quality
of technical supervision and quality of interpersonal, relationships among peers, supervisors,
and subordinates) are the primary elements involved in job dissatisfaction. When present in
sufficient quality, they have no effect; when absent, they can lead to job dissatisfaction.
Motivation factors: (achievement, recognition, responsibility, advancement, the work itself,
and possibility of growth –internal/intrinsic factors) are the primary elements involved in job
satisfaction. When present, they can stimulate personal and psychological growth.

E. Theory X and Theory Y (Douglas McGregor 1960)

Theory X is a philosophy of management with negative perception of subordinate’s potential
for work and attitudes toward work. It assumes that subordinates dislike work, are poorly
motivated, and require close supervision. A manager with these beliefs tends to control the
group, use negative motivation, and refuse to delegate decision-making. Theory Y is a
philosophy of management with a positive perception of subordinates' potential for and
attitudes toward work. It assumes that subordinates can be self-directing, will seek

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 responsibility and find work as natural as play or rest. The outcome of this belief is a manager
who encourages people to seek responsibility, involves people in decision making and work
with people to achieve their goals. The important point about theory X and theory Y is that a
management philosophy influences the type of work climate the manager endeavors to create
and ultimately, how the manager treats people. The following are the components of theory X
and theory Y.

3. Communication
Communication is the tool in which we exercise to influence others, bring about changes in
the attitudes and views of our associates, motivate them, establish and maintain relations with
them. Without communication there would be no interaction between persons.
• "Communication is the transfer of information from one person /sender/ to another
person /receiver/ to achieve goals."
• "It's a process consisting of a sender transmitting a message through media to a receiver who
respond"
➢ Importance of Effective Communication
Effective communication is important to managers for three primary reasons:
Communication provides a common thread for the management processes of planning,
organizing, leading, and controlling.
Effective communications skills can enable managers to draw on the vast array of talents
available in the multicultural world of organizations.

The ingredients of Communication

Communication takes place in the relationship between a sender and a receiver. It can
flow in one direction and ends there.

A. Sender: The sender/source of message initiates the communication. In an

organization the sender will be a person with information, needs or desires and
a purpose for communicating them to one or more other people.
B. Receiver: -The person whose senses perceive the sender's message. There may
be a large number of receivers, as when a memo is addressed to all members of
an organization or there may be just one, as when one discusses something
privately with a colleague.
C. Encoding: It takes place when the sender translates the information to be
transmitted into a series of symbols. The way of translating the communicator’s

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 ideas into a systematic set of symbols expressing the communicator’s purpose.
D. Decoding: The process by which, the receiver interprets the message and
translates it into meaningful information.
E. Channel: The formal medium of communication between a sender and a
receiver. It is a path, route or medium through which a message is transmitted.
F. Noise: Any factor that disturbs confuses or interferes with communication.
Noise can arise along what is called the communications channel or method of
transmission.
G. Message: The encoded information sent by the sender to the receiver. The
result of the encoding is the message-either verbal or nonverbal. Message is a
meaningful idea that people want to share with others. It is an encoded idea
with some purpose.
H. Feedback: It's the response of the receiver to the sender, also passes
through the same process.

Types of Communication
Communication can be:
I) Formal Communication
a) Downward communication- Messages from higher authority levels to lower levels.
b) Upward communication- Messages from subordinates to supervisors and to higher levels.
c) Horizontal communication- That flows between persons of equal status in the organization.
d) Vertical communication- May be downward or up word communication.
ii) Informal Communication
People talk about job related or unrelated information. They talk about promotions, salary
increment, demotions, administrative policies and decisions. They also talk about local and
international affairs.
They talk such situations in the form of rumors, gossips, daily friendly chat etc.
This all travel through informal networks that often develop through incidents of spatial
arrangement, similarity of personalities or compatibilities of personal skills. Informal
communication is thus, ones, aspect of organizational communication that is not designed and
recognized by management.
Since every communication cannot be programmed, gossip and rumors is created and exists
out of the will of management. It arises out of the need for social interaction between people

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in the organization. Of course what they share at an informal level will affect their ability to
communicate about their jobs and their attitude towards their work and the organization.

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