Directing/Leading

• Directing or Direction
▫ Function of management performed by top
level in order to achieve organizational goals
▫ Very important and necessary function of
management
• Management has to undertake various
activities like:
▫ Guided people
▫ Inspired and lead them in order as well as
supervision of their activity is required in
order to achieve desired results
• Direction consists of the process and
techniques utilized in issuing
instructions and making certain that
operations are carried as originally
planned.

• “Directing involve determining the

course, giving order and instruction
and providing dynamic leader” -
Marshall
• Directing Involves:
▫ Telling people what is to be done and
explaining how to do it
▫ Issuing instructions and orders to
subordinates
▫ Inspiring them to contribute towards the
achievement of objectives
▫ Supervising their objectives
▫ Providing leadership and motivation
•Elements
▫ COMMUNICATION
▫ SUPERVISION
▫ LEADERSHIP
▫ MOTIVATION
Communication
• "Communication is the transfer of information
from one person to another person. It is a way of
reaching others by transmitting ideas, facts,
thoughts, feeling sand values."
- Newstrom and Davis
▫ Communication is regarded as basic to the
functioning of the organization, in its absence, the
organization would cease to exist. It is the process
through which two or more persons come to
exchange ideas and understanding among
themselves.
Supervision
• "Guiding and directing efforts of employees and
other resources to accomplish stated work
outputs"
- Terry and Franklin
▫ Supervision is an element of direction.
• "Day-to-day relationship between an executive and
his immediate assistant and covers training,
direction, motivation, coordination, maintenance
of discipline etc"
- Newman and Warren
▫ Supervision denotes the functions performed by the
supervisors.
Leadership
• "Leadership is essentially a continuous process of
influencing behavior A leader breathes life into the
group and motivates it towards goals. The lukewarm
desires for achievement are transformed into
burning passion for accomplishment".
- George R. Terry.
▫ Leadership is the process of influencing the behavior
of others to work willingly and enthusiastically for
achieving predetermined goals. It is an essential
ingredient for successful organization. The successful
organization has one major attribute that sets it apart
from unsuccessful organization that is dynamic and
effective leadership.
• MOTIVATION
▫ One of the important element of directing
▫ Insurance of proper instructions or orders does
not necessarily ensure that they will be properly
carried out. It requires manager to inspire or
induce the employees to act and get expected
results. This is called motivation.
▫ It is a force that inspire a person at work to
intensify his willingness to use the best of his
capabilities for achievement of specific objectives.
▫ It may be in the form of incentive likes like
financial (such as bonus, commission and etc.) or,
non-financial (such as appreciation, growth etc.),
or could it be positive or negative.
▫ Basically, motivations is directed towards goals
and prompt people to act.
Motivation Theories/Models

• McGregor’s Theory X and Y

• Maslow’s Hierarchy
• Alderfer’s ERG Theory
McGregors Theory X and 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:
Theory X
• Employees inherently dislike
work and will attempt to avoid it,
whenever possible.
• Employees must be coerced,
controlled, or threatened with
punishment to achieve desired
goals.
• Employees will shirk
responsibilities and seek formal
direction whenever possible.
• Most workers place security
above all other factors associated
with work and will display little
ambition
Theory Y
• Employees view as being as
natural as rest or play
• Employees will exercise self-
control if they are committed
to the objectives.
• The average person can learn
to accept and even seek
responsibility.
• The ability to make good
decisions is widely dispersed
through the population and
isn’t necessarily the sole
ability of managers.
• Thus, we can say that Theory X presents a
pessimistic view of employees’ nature and behavior
at work, while Theory Y presents an optimistic view
of the employees’ nature and behavior at work. If
correlate it with Maslow’s theory, we can say that
Theory X is based on the assumption that the
employees emphasize on the physiological needs
and the safety needs; while Theory X is based on the
assumption that the social needs, esteem needs and
the self-actualization needs dominate the
employees.

• McGregor views Theory Y to be more valid and

reasonable than Theory X. Thus, he encouraged
cordial team relations, responsible and stimulating
jobs, and participation of all in decision-making
process.
Implications of Theory X and Theory Y
Theory X
• Encourages use of tight control
and supervision
• It implies that employees are
reluctant to organizational
changes. Thus, it does not
encourage innovation.
• Quite organizations using this
technique
Theory Y
• Implies that the managers
should create and encourage a
work environment which
provides opportunities to
employees to take initiative
and self-direction
• Many Organizations using this
technique
Maslow’s Hierarchy
• Abraham Maslow is well renowned for
proposing the Hierarchy of Needs Theory in
1943. This theory is a classical depiction of
human motivation. This theory is based on the
assumption that there is a hierarchy of five
needs within each individual. The urgency of
these needs varies. These five needs are as follow
• Physiological needs
▫ These are the basic needs of air, water, food,
clothing and shelter. In other words,
physiological needs are the needs for basic
amenities of life.

• Safety needs
▫ Safety needs include physical, environmental
and emotional safety and protection. For
instance- Job security, financial security,
protection from animals, family security,
health security, etc.
• Social needs
▫ Social needs include the need for love,
affection, care, belongingness, and friendship.

• Esteem needs
▫ Esteem needs are of two types:
 internal esteem needs (self- respect,
confidence, competence, achievement and
freedom)
 external esteem needs (recognition, power,
status, attention and admiration).
• Self-actualization need
▫ This include the urge to become what you are
capable of becoming or what you have the
potential to become. It includes the need for
growth and self-contentment. It also includes
desire for gaining more knowledge, social-
service, creativity and being aesthetic. The self-
actualization needs are never fully satiable. As
an individual grows psychologically,
opportunities keep cropping up to continue
growing.
• According to Maslow, individuals are motivated by
unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next
need to emerge. Maslow grouped the five needs into
two categories :
▫ Higher-order needs
▫ Lower-order needs
• The physiological and the safety needs constituted
the lower-order needs. These lower-order needs are
mainly satisfied externally. The social, esteem, and
self-actualization needs constituted the higher-order
needs. These higher-order needs are generally
satisfied internally, i.e., within an individual. Thus,
we can conclude that during boom period, the
employees lower-order needs are significantly met.
Alderfer’s ERG Theory
• Clayton P. Alderfer's ERG theory from
1969 condenses Maslow's five human
needs into three categories:
▫ Existence
▫ Relatedness
▫ Growth.
• Existence Needs
▫ Include all material and physiological desires (e.g.,
food, water, air, clothing, safety, physical love and
affection). Maslow's first two levels.

• Relatedness Needs
▫ Encompass social and external esteem;
relationships with significant others like family,
friends, co-workers and employers . This also
means to be recognized and feel secure as part of a
group or family. Maslow's third and fourth levels.
• Growth Needs
▫ Internal esteem and self actualization; these impel
a person to make creative or productive effects on
himself and the environment (e.g., to progress
toward one's ideal self). Maslow's fourth and fifth
levels. This includes desires to be creative and
productive, and to complete meaningful tasks.
• Even though the priority of these needs differ
from person to person, Alderfer's ERG theory
prioritizes in terms of the categories'
concreteness.
• Existence needs are the most concrete, and
easiest to verify.
• Relatedness needs are less concrete than
existence needs, which depend on a relationship
between two or more people.
• Finally, growth needs are the least concrete in
that their specific objectives depend on the
uniqueness of each person.
Suggestions for Motivating
• Recognize individual differences
• Match people to jobs
• Use goals
• Ensure that goals are perceived as attainable
• Individualize rewards
• Link rewards to performance
• Check the system for equity
END
Quiz
• 1. A force that inspire a person at work to
intensify his willingness to use the best of his
capabilities for achievement of specific
objectives
• 2. Motivation Theory that represents a
pessimistic view of employees’ nature and
behavior at work
• 3-4. Maslow grouped the five needs into two
categories , what are those?
• 5. It is a function of management performed by top
level in order to achieve organizational goals
Quiz
• 6-8:
▫ Alderfer compresses Maslow’s hierarchy of needs
from five to three, write the three categories of
Alderfer’s ERG Theory and Maslow’s hierarchy of
needs where it belongs.
• 9-10: Give at least 2 Elements of Directing
Answers
• 1. Motivation
• 2. McGregor’s Theory X
• 3-4. Higher-order needs
Lower-order needs
• 5. Directing
• 6-8.
▫ Existence Needs: Physiological Needs and Safety
Needs
▫ Relatedness Needs: Social Needs and Esteem Needs
▫ Growth Needs: Self- actualization Need
• 9-10: Supervision, Leadership, Communication,
Motivation