Download - Unit iv Directing & Controlling
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Management & Entrepreneurship
(Course Code:10AL51)
Department of IEM
JSS Academy of Technical Education, Bengaluru-560060
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Principles of Management
CHAPTER 4: Directing and Controlling
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• Introduction – Meaning – nature of Directing.
• Leadership styles, Motivation Theories.
• Communication – Meaning and importance.
• Coordination, meaning and importance.
• Techniques of Coordination.
• Meaning and steps in controlling.
• Essentials of a sound control system – Methods of establishing control.
Course outline
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Definition
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Planning
Organising
StaffingDirecting
Controlling
Management Function – Directing / Leading
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Directing / Leading
Instructing
Guiding
CounselingMotivating
Leading
WHAT IS DIRECTING?
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Definition
DIRECTING is a process, in which the managers instruct, guide and oversee
the performance of the workers to achieve predetermined goals.
Directing the efforts of your people and resources will help the company
accomplish its planned objectives.
Continuous process initiated at top level and flows to the bottom through
organizational hierarchy
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Importance of Directing
Initiates actions
Increase productivity
Supervision, Motivation, Leadership and Communication effective
Achieve organizational goals
Coping up with the changes
Stability and balance
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Making assignments
Assisting workers to carry out
assignments
Interpreting organizational
policies
Informing workers how well they are
WHEN DIRECTING HAPPEN?
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Characteristics
Direction has got following characteristics:
1. Pervasive/Universal Function
2. Continuous Activity
3. Human Factor
4. Creative Activity
5. Executive Function
6. Delegate Function
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Pervasive Function1
• Directing is required at all levels of organization.
• Every manager provides guidance and motivates his subordinates.
Characteristics
Continuous Activity2 • It is continuous throughout the life of organization.
Human factor3 • Related to the subordinates.
Creative Activity4 • Helps converting plans into performance.
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Executive Function5 • Carried out by all managers and executives at all levels.
Characteristics
Delegate Function • Dealing with the behavior of employees in an organization.6
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Supervision Leadership Motivation Communication
ELEMENTS OF DIRECTING FUNCTION
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Leadership
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Definition
"Leadership is a continuous process of influencing behaviour.
A leader is someone who can influence others and who has managerial
authority.
It’s a process of leading a group and influencing that group to achieve its goals
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EXERTS INFLUENCE
INSPIRES
MOTIVATES
DIRECTS
GOALS
Leader
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POWER
LEGITIMATE
REWARD
COERCIVEEXPERT
REFERENT
THE KEY TO LEADERSHIP
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Traits• Early Studies (1930’s) – Focus on Personal Characteristics that
differentiates effective leaders from ineffective leaders
• Effective leaders normally possess several traits (Skills, abilities,
knowledge, expertise)
Behavioral• Leadership Style
• Managerial Grid Theory
• Likert management System
Contingency/Situational
• Fiedler Contingency Model
• Hersey & Blanchard Situational Leadership Theory
• House Path Goal Theory
Leadership Approach
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Leadership Approach
TRAITS AND PERSONAL CHARACTERISTICS
Motivation Dominance
Desire to lead Self-confidence
Integrity & honesty High energy
Knowledge & expertise Tolerance for stress
Intelligence Maturity
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Leadership Approach
Behavioral Approach
This approach emphasized on leadership function and leadership style
LEADERSHIP STYLE
MANAGERIAL GRID THEORY
LIKERT MANAGEMENT
SYSTEM
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Leadership Approach
Leadership Style The way the leaders influence their employees
Authoritarian leadership style
Democratic leadership style
Laissez-Faire leadership style
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Leadership Style
Authoritarian leadership style
• Dictatorship.
• Leaders make decision and acts on decision individually.
• Uses reward and punishment system.
• One way communication.
• Obedience and loyalty to leaders are required.
• Fast decisions.
• Unsatisfied employees.
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Democratic leadership style
• Participative style.
• Top and lower management level make decision together.
• Employees are encouraged to make decision.
• Advantage - Increase in teamwork.
• Disadvantage – Slows down decision making, reduces
accountability.
Leadership Style
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• Free form leadership style.
• Gives freedom and autonomy.
• Leader has less control and influence.
• Employees can use their expertise and knowledge to make
decision.
• Increase career development.
• Disadvantage – creates misunderstanding and lack of unity.
Laissez-Faire leadership style
Leadership Style
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Managerial Grid Theory
Managerial Grid Theory
Study made by Robert Blake and Jane Mouton, to explain leadership
style based on
• Concern for People
• Concern for Production/Result
Concern for People: The degree to which a leader considers team members' needs, interests and areas of personal development when deciding how best to accomplish a task.
Concern for Results: The degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.
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Managerial Grid Theory
Managerial Grid Theory
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Managerial Grid Theory
Managerial Grid Theory
Impoverished Management – Low Results/Low People
Produce-or-Perish Management – High Results/Low People
Middle-of-the-Road Management – Medium Results/Medium People
Country Club Management – High People/Low Results
Team Management – High Production/High People
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Likert Management System
Likert Management System
• Introduced by Rensis Likert (1961)
• Combined the basic management styles
(Job oriented + Employee oriented)
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Likert Management System
Trust Motivation Interaction
System 1 No trust Fear, Threats and Punishment
Little interaction, always distrust
System 2 Master / servant Rewards and punishment
Little interaction, always caution
System 3 Substantial but incomplete trust
Rewards and punishment, some
involvement
Moderate interaction, Some trust
System 4 Complete trustGoals based on participation and improvements
Extensive interaction, Friendly, High trust
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Contingency Approach
Contingency Approach
• There are 2 aspects influence effective leadership:
a) Situation
b) Traits of the leader
• Two models
a) Fiedler Contingency Model
b) Hersey & Blanchard Situational Leadership Theory
c) House Path Goal Theory
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Contingency Approach
Fiedler’s Contingency Model
• The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler,
a scientist who helped advance the study of personality and characteristics of
leaders.
• The model states that, “there is no one best style of leadership. Instead, a
leader's effectiveness is based on the situation”.
• This is the result of two factors – "leadership style" and "situational
favorableness" (later called "situational control").
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Contingency Approach
Fiedler’s Contingency Model
• Identifying leadership style is the first step in using the model.
• Fiedler believed that leadership style is fixed, and it can be measured using a scale he
developed called Least-Preferred Co-Worker (LPC) Scale.
• The scale asks you to think about the person who you've least enjoyed working with.
(This can be a person who you've worked with in your job, or in education or training).
• You then rate each factor based on this person and add up your scores.
• If your total score is high, you're likely to be a relationship-orientated leader.
• If your total score is low, you're more likely to be task-orientated leader.
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Fiedler’s Contingency Model
LEAST-PREFERED CO-WORKER SCALE
Unfriendly 1 2 3 4 5 6 7 8 FriendlyUnpleasant 1 2 3 4 5 6 7 8 PleasantRejecting 1 2 3 4 5 6 7 8 AcceptingTense 1 2 3 4 5 6 7 8 RelaxedCold 1 2 3 4 5 6 7 8 WarmBoring 1 2 3 4 5 6 7 8 InterestingBackbiting 1 2 3 4 5 6 7 8 LoyalUncooperative 1 2 3 4 5 6 7 8 CooperativeHostile 1 2 3 4 5 6 7 8 SupportiveGuarded 1 2 3 4 5 6 7 8 OpenInsincere 1 2 3 4 5 6 7 8 SincereUnkind 1 2 3 4 5 6 7 8 KindInconsiderate 1 2 3 4 5 6 7 8 ConsiderateUntrustworthy 1 2 3 4 5 6 7 8 TrustworthyGloomy 1 2 3 4 5 6 7 8 CheerfulQuarrelsome 1 2 3 4 5 6 7 8 Harmonious
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Fiedler’s Contingency Model
LEAST-PREFERED CO-WORKER SCALE
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Hersey and Blanchard’s Situational Leadership Theory (SLT)
Situational leadership theory (SLT), is a contingency theory that focuses on
followers’ readiness
• The emphasis on the followers in leadership effectiveness reflects the reality
that it is the followers who accept or reject the leader.
• Readiness, refers to the extent to which people have the ability and willingness
to accomplish a specific task.
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Hersey and Blanchard’s Situational Leadership Theory (SLT)
The final component in the model is the four stages of follower readiness
R1: People are both unable and unwilling to take responsibility for doing something.
Followers aren’t competent or confident.
R2: People are unable but willing to do the necessary job tasks. Followers are motivated but
lack the appropriate skills.
R3: People are able but unwilling to do what the leader wants. Followers are competent, but
don’t want to do something.
R4: People are both able and willing to do what is asked of them.
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Robert House’s Path-Goal Model
Path-Goal theory, which states that, the leader’s job is to assist followers in
attaining their goals and to provide direction / support needed to ensure that
their goals are compatible with the goals of the group / organization.
The term path-goal is derived from the belief that effective leaders remove the
roadblocks and pitfalls so that followers have a clearer path to help
achievement of their work goals.
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Robert House’s Path-Goal Model
Directive leader: Lets subordinates know what’s expected of them, schedules work to be done,
and gives specific guidance on how to accomplish tasks.
Supportive leader: Shows concern for the needs of followers and is friendly.
Participative leader: Consults with group members and uses their suggestions before making a
decision.
Achievement oriented leader: Sets challenging goals and expects followers to perform at their
highest level.
House identified four leadership behaviours
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Motivation
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Motivation - Definition
"Motivation is the complex force starting and keeping a person at
work in an organization.
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WHAT MAKES PEOPLE MOTIVATED?
INTRINSIC REWARD is the good feeling you have when you have done a good job
EXTRINSIC REWARD is something given to you by someone else as recognition for good work and include pay increases, praise, and promotions
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WHY MOTIVATION
• Increase quality & productivity
• Highly motivated employee• Better quality of work
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BENEFITS OF MOTIVATION
• Puts human resources into action.
• Improves level of efficiency of employees.
• Leads to achievement of organizational goals.
• Builds friendly relationship.
• Leads to stability of work force.
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Motivation Theories
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Maslow’s Hierarchy Of Needs Theory
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Herzberg’s Two-Factor Theory
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McGregor's Theory of Motivation
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Communication
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Definition of Communication
Communication is the transfer of information from one person to another
person.
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Methods in Communication
• Verbal
• Non Verbal • Facial expression• Gestures• Eye contact• Signs and Symbols
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• Top to bottom (Downward)
• Bottom to top (Upward)
• Horizontal communication
• Cross communication
Forms of Communication
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Top to bottom (Downward)
Forms of Communication
Top to bottom (Downward) Definition: Communication that flows from
upper to lower (such as manager to employer or superior to subordinate).
Types of messages: job instructions, job rationales, procedures and
practices information, feedback, and instruction.
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Forms of Communication
Bottom to top (Upward)
Definition: Transmission of messages from lower to higher levels of the
organization (such as communication initiated by subordinates with
their superiors).
Types of messages: Performance on the job, job related problems, fellow
employees and their problems, subordinates perceptions of organizational
policies and practices, tasks and procedures.
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Horizontal Communication
Definition: Flow of messages across functional areas at a given level of an
organization (this permits people at the same level to communicate directly).
Type of messages: facilitates problem solving, info sharing across different
work groups, task coordination between departments and project teams
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Problems in Communication
Communication Noise
• Environmental Noise: Noise that physically disrupts communication, such
as standing next to loud speakers at a party, or the noise from a construction
site next to a classroom making it difficult to hear the professor.
• Physiological-Impairment Noise: Physical conditions that prevent effective
communication, such as actual deafness or blindness preventing messages
from being received as they were intended.
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Problems in Communication
Communication Noise
• Semantic Noise: Different interpretations of the meanings of certain words. For example, the
word "weed" can be interpreted as an undesirable plant in your yard, or as a euphemism for
marijuana.
• Syntactical Noise: Mistakes in grammar can disrupt communication, such as abrupt changes
in verb tense during a sentence.
• Organizational Noise: Poorly structured communication can prevent the receiver from
accurate interpretation. For example, unclear and badly stated directions can make the
receiver even more lost.
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Problems in Communication
Communication Noise
• Cultural Noise: Stereotypical assumptions can cause misunderstandings, such
as unintentionally offending a non-Christian person by wishing them a "Merry
Christmas".
• Psychological Noise: Certain attitudes can also make communication difficult.
For instance, great anger or sadness may cause someone to lose focus on the
present moment. Disorders such as Autism may also severely hamper effective
communication.
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BARRIERS IN COMMUNICATION
• Individual emotion & perception• Unsuitable channel• Inconsistency of verbal & non verbal
INTERNAL FACTORS
• Different power & status• different goals• Lack of formal channel• Psyhcological and economic
ENVIRONMENT
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EFFECTIVE COMMUNICATION
Clear words / languages
Attractive delivery styles
Sincerity
Concentration
Feedback
Patience & empathy
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Controlling
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What is controlling?
Process of monitoring, comparing, and correcting work performance.
Effective controls ensure that activities are completed in ways that lead to
the attainment of goals.
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Why is control so important?
Planning can be done.
An organizational structure is created to facilitate efficient achievement of
goals
Employees are motivated through effective leadership.
But there’s no assurance that activities are going as planned and that the
goals employees and managers are working toward are being attained.
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Why is control so important?
Control, it’s the only way that managers know whether organizational goals are being met or not.
The value of the control function can be seen in three specific areas:
1. Planning2. Empowering employees, and 3. Protecting the workplace.
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Why is control so important?
1. Planning2. Empowering employees, and 3. Protecting the workplace.
Controlling provides the critical link back to planning.
If managers didn’t control, they’d have no way of knowing whether their goals and
plans were being achieved and what future actions to take.
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Why is control so important?
1. Planning2. Empowering employees, and 3. Protecting the workplace.
Employee empowerment.
• Many managers are reluctant to empower their employees because they fear something
will go wrong for which they would be held responsible.
• An effective control system can provide information and feedback on employee
performance and minimize the chance of potential problems.
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Why is control so important?
1. Planning2. Empowering employees, and 3. Protecting the workplace.
Managers control is to protect the organization and its assets.
Today’s environment brings heightened threats from natural disasters, financial scandals,
workplace violence, supply chain disruptions, security breaches.
Managers must protect organizational assets in the event that any of these things should
happen.
Comprehensive controls and backup plans will help assure minimal work disruptions.
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The Control Process
The control process is a three-step process of measuring actual performance, comparing
actual performance against a standard, and taking managerial action to correct deviations
or to address inadequate standards.
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The Control Process
Step 1. Measuring Actual Performance
To determine what actual performance is, a manager must first get information about it.
Four approaches used by managers to measure and report actual performance are 1. Personal observations, 2. Statistical reports, 3. Oral reports, and 4. Written reports
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The Control ProcessStep 1. Measuring Actual Performance
To determine what actual performance is, a manager must first get information about it.
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The Control Process
Step 2. Comparing Actual Performance Against the Standard
The comparing step determines the variation between actual performance and the standard.
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The Control Process
Step 3. Taking Managerial Action
Managers can choose among three possible courses of action:
1. Do nothing
2. Correct the actual performance
3. Revise the standards
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The Control ProcessStep 3. Taking Managerial Action
Correct the actual
performanceDepending on what the problem is, a manager could take different corrective actions.
For instance, if unsatisfactory work is the reason for performance variations.
The manager could correct it by things such as training programs, disciplinary action, changes
in compensation practices, and so forth.
One decision that a manager must make is whether to take immediate corrective action,
which corrects problems at once to get performance back on track.
Basic corrective action, which looks at how and why performance deviated before
correcting the source of deviation.
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The Control Process
Step 3. Taking Managerial Action
REVISE THE STANDARD
It’s possible that the variance was a result of an unrealistic standard—too low or too high a goal.
In that situation, the standard needs the corrective action, not the performance.
If performance consistently exceeds the goal, then a manager should look at whether the goal is too easy and needs to be raised.
On the other hand, managers must be cautious about revising a standard downward.
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The Control Process
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Types of ControlFeedforward/Concurrent/Feedback Controls
Managers can implement controls before an activity begins, during the time the activity is going on, and after the activity has been completed.
The first type is called feedforward control; the second, concurrent control; and the last, feedback control.
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End of Module