unit iv directing & controlling

Management & Entrepreneurship

(Course Code:10AL51)

Department of IEM

JSS Academy of Technical Education, Bengaluru-560060

Principles of Management

CHAPTER 4: Directing and Controlling

• 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

Definition

Planning

Organising

StaffingDirecting

Controlling

Management Function – Directing / Leading

Directing / Leading

Instructing

Guiding

CounselingMotivating

Leading

WHAT IS DIRECTING?

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

Importance of Directing

Initiates actions

Increase productivity

Supervision, Motivation, Leadership and Communication effective

Achieve organizational goals

Coping up with the changes

Stability and balance

Making assignments

Assisting workers to carry out

assignments

Interpreting organizational

policies

Informing workers how well they are

WHEN DIRECTING HAPPEN?

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

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.

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

Supervision Leadership Motivation Communication

ELEMENTS OF DIRECTING FUNCTION

Leadership

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

EXERTS INFLUENCE

INSPIRES

MOTIVATES

DIRECTS

GOALS

Leader

POWER

LEGITIMATE

REWARD

COERCIVEEXPERT

REFERENT

THE KEY TO LEADERSHIP

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

Leadership Approach

TRAITS AND PERSONAL CHARACTERISTICS

Motivation Dominance

Desire to lead Self-confidence

Integrity & honesty High energy

Knowledge & expertise Tolerance for stress

Intelligence Maturity

Leadership Approach

Behavioral Approach

This approach emphasized on leadership function and leadership style

LEADERSHIP STYLE

MANAGERIAL GRID THEORY

LIKERT MANAGEMENT

SYSTEM

Leadership Approach

Leadership Style The way the leaders influence their employees

Authoritarian leadership style

Democratic leadership style

Laissez-Faire leadership style

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.

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

• 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

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.



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

Likert Management System


• Introduced by Rensis Likert (1961)

• Combined the basic management styles

(Job oriented + Employee oriented)


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

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


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").



• 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.


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


LEAST-PREFERED CO-WORKER SCALE

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.

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.

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.

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

Motivation

Motivation - Definition

"Motivation is the complex force starting and keeping a person at

work in an organization.

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

WHY MOTIVATION

• Increase quality & productivity

• Highly motivated employee• Better quality of work

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.

Motivation Theories

Maslow’s Hierarchy Of Needs Theory

Herzberg’s Two-Factor Theory

McGregor's Theory of Motivation

Communication

Definition of Communication

Communication is the transfer of information from one person to another

person.

Methods in Communication

• Verbal

• Non Verbal • Facial expression• Gestures• Eye contact• Signs and Symbols

• Top to bottom (Downward)

• Bottom to top (Upward)

• Horizontal communication

• Cross communication

Forms of Communication

Top to bottom (Downward)


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.


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.

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

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.


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.


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.

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

EFFECTIVE COMMUNICATION

Clear words / languages

Attractive delivery styles

Sincerity

Concentration

Feedback

Patience & empathy

Controlling

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.

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.


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.



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.



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.



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.

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.

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

The Control ProcessStep 1. Measuring Actual Performance

To determine what actual performance is, a manager must first get information about it.

The Control Process

Step 2. Comparing Actual Performance Against the Standard

The comparing step determines the variation between actual performance and the standard.

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

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.

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.

The Control Process

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.

End of Module