7 Directing 2d
7 Directing 2d
7 Directing 2d
Class:12th Commerce
Subject: Business Studies
Elements of
Directing
the elements of directing are activities
broadly grouped into four categories
which are :
1. Supervision
2. Motivation
3. Leadership
4. Communication
1
Supervision
The term “supervision” is derived from two Latin words –
“Super” and “Vision”. Super means over and above and vision
means to see. Thus supervision means “Overseeing the activity”.
In management, supervision means overseeing what is being done
by subordinates and giving instructions to ensure optimum
utilisation of resources and achievement of work targets.
Supervision can be understood as the function to be performed by
supervisor, a managerial position in the organization hierarchy at
the operative level i.e., immediately above the worker.
3
Supervisor maintains day-to-day contact and maintains friendly
relations with workers - A good supervisor acts as a guide,
friend and philosopher to the workers.
7
Motive: A motive is an inner state that energises, activates or
moves and directs behaviour towards goals. Motives arise out
of the needs of individuals. Realisation of a motive causes
restlessness in the Individual which prompts some action to
reduce such restlessness.
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Features of Motivation
Internal feeling - The urge, drives, desires, aspirations, striving or
needs of
human being, which are internal, influence human behaviour.
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Motivation Process: Motivation process is based on human needs. A
simple
model to explain motivation process is presented below.
Unsatisfied Need
Tension
Search Behavior
Satisfied Need
Drives
Reduction of Tension
13
Profile of Abraham Maslow (1908 –
1970)
Abraham H. Maslow was born in Brooklyn, New York, in 1908. He
studied primate behavior and did doctorate in psychology in 1934 at
the University of Wisconsin.
His theory of the hierarchy of needs, which leads to the ‘self
actualized’ individual, was a strong catalyst for the founding of
humanistic psychology.
Maslow successfully bridged motivation and personality in his
theories of
needs, self-actualizing persons, and peak experiences.
Maslow is considered an important figure in contemporary
psychology. He wrote two important books: Toward a Psychology of
Being (1968) and Motivation and Personality (1970). Abraham Maslow
died of a heart attack in 1970.
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Maslow’s Need Hierarchy Theory of
Motivation:
Abraham Maslow, a well-known psychologist in a
classic paper published in 1943, outlined the
elements of an overall theory of motivation. His
theory was based on human needs. He felt that
within every human being, there exists a hierarchy
of five needs.
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Basic Physiological Needs: These needs are most basic in the
hierarchy and corresponds to primary needs. Hunger, thirst, shelter,
sleep and sex are some examples of these needs. In the
organisational context, basic salary helps to satisfy these needs.
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INCENTIV
ES
Incentive means all measures
which are used to motivate
people to improve
performance.
These incentives may be
broadly classified as
financial and non
financial. 18
Financial Incentives:
Financial incentives refer to incentives which are in direct monetary
form or measurable in monetary term and serve to motivate people for
better performance.
These incentives may be provided on individual or group basis.
Non-Financial Incentives
✢ All the needs of individuals are not satisfied by money alone.
Psychological, social and emotional factors also play important role
in providing motivation .
✢ Non-financial incentives mainly focus on these needs. Some times,
monetary aspect may be involved in non-financial incentives as
well.
✢ However, the emphasis is to provide psychological and emotional
satisfaction rather than money driven satisfaction. 19
FINANCIAL INCENTIVES NON-FINANCIAL INCENTIVES
Employee empowerment
20
FINANCIAL INCENTIVES
1. Pay and allowances: For every employee, salary is the basic monetary
incentive. It includes basic pay, dearness allowance and other
allowances. Salary system consists of regular increments in the pay
every year and enhancement of allowances from time-to-time. In some
business organizations, pay hike and increments may be linked to
performance.
2. Productivity linked wage incentives: Several wage incentive plans aims at
linking payment of wages to increase in productivity at individual or
group level.
3. Perquisites: In many companies perquisites and fringe benefits are
offered such as car allowance, housing, medical aid, and education to the
children etc., over and above the salary. These measures help to provide
motivation to the employees/ managers.
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4. Profit Sharing: Profit sharing is meant to provide a share to employees
in the profits of he organization. This serves to motivate the
employees to improve their performance and contribute to increase
in profits.
5. Co-partnership/ Stock option: Under these incentive schemes,
employees are offered company shares at a set price which is lower
than market price. Sometimes, management may allot shares in line
of various incentives payable in cash. The allotment of shares creates a
feeling of ownership
6. Retirement Benefits: Several retirement benefits such as provident fund,
pension, and gratuity provide financial security to employees after
their retirement. This acts as an incentive when they are in service in
the organization.
7. Bonus: Bonus is an incentive offered over and above the wages/salary
to 22
Non-Financial
1. Incentives
Status: status means ranking of positions in the organization. The
authority, responsibility, rewards, recognition, perquisites and prestige of
job indicate the status given to a person holding a managerial position.
Psychological, social and esteem needs of an individual are satisfied by
status given to their job.
2. Organizational Climate: Organizational climate indicates the characteristics
which describe an organization and distinguish one organization from the
other. These characteristics influence the behavior of individuals in the
organization. Some of these characteristics are–individual autonomy,
reward orientation, consideration to employees, risk-tasking etc.
3. Career Advancement Opportunity: Managers should provide
opportunity to employees to improve their skills and be promoted to the
higher level jobs. Appropriate skill development programs, and sound
promotion policy will help employees to achieve promotions.
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4. Job Enrichment: Job enrichment is concerned with designing jobs that
include greater variety of work content, require higher level of knowledge
and skill; give workers more autonomy and responsibility; and provide the
opportunity for personal growth and a meaningful work experience. If jobs
are enriched and made interesting, the job itself becomes a source of
motivation to the individual.
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Leaders
hip
Leadership is the process of
influencing the behavior of people by
making them strive voluntarily towards
achievement of organizational goals.
Leadership indicates the ability of an
individual to maintain good interpersonal
relations with followers and motivate them to
contribute for achieving organizational
objectives.
An individual possessing attributes of
leadership is known as leader.
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Leadership is the activity of influencing people to
strive
willingly for group objectives.
George
Terry
30
Qualities
of a
Good
Leader
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1. Physical features: Physical features like height, weight, health,
appearance determine the physical personality of an
individual. It is believed that good physical features attract
people. Health and endurance help a leader to work hard
which inspires others to work with same tempo.
34
Autocratic or Authoritarian leader
An autocratic leader gives orders and expects his
subordinates to obey those orders.
Communication is only one-way with the subordinate
only acting to the
command given by the manager.
This leader is dogmatic i.e., does not change or
wish to be contradicted.
His following is based on the assumption that
reward or punishment
both can be given depending upon the result.
This leadership style is effective in getting productivity
in many situations like in a factory where the supervisor
is responsible for production on time and ha so ensure
labour productivity.
Quick decision-making is also facilitated.
But there are variations also, they may listen to everyone’s
opinion, consider subordinates ideas and concerns but the
decision will be their own. 35
Democratic or Participative leader
A democratic leader will develop action plans and makes
decisions in consultation with his subordinates. He will
encourage them to participate in decision-making.
This kind of leadership style is more common now-a-days, since
leaders also recognise that people perform best if they have
set their own objectives.
They also need to respect the other’s opinion and support
subordinates
to perform their duties and accomplish organisational
objectives.
They exercise more control by using forces within the group.
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Laissez faire or Free-rein leader
Such a leader does not believe in the use of power
unless it is absolutely essential.
The followers are given a high degree of independence to
formulate their own objectives and ways to achieve them.
The group members work on their own tasks resolving
issues
themselves.
The manager is there only to support them and supply
them the required information to complete the task
assigned.
At the same time, the subordinate assumes
responsibility for the work
to be performed.
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COMMUNICATION
38
Definitions of Communication
39
Elements of Communication
Process
1. Sender
2. Message
3. Media
4. Feedback
5. Receiver
6. Noise
7. Encodin
g
8. Decodin
g
40
1. Sender: person who conveys his thoughts or ideas to the receiver. represents
source
of communication.
2. Message: It is the content of ideas, feelings, suggestions, order etc., intended
to be communicated.
3. Encoding: It is the process of converting the message into communication
symbols such as words, pictures, gestures et
4. Media: It is the path through which encoded message is transmitted to
receiver. The
channel may be in written form, face to face, phone call, Internet
5. Decoding: It is the process of converting encoded symbols of the sender.
6. Receiver: The person who receives communication of the sender.
7. Feedback: It includes all those actions of receiver indicating that he has
received and
understood message of sender. 41
Importance of Communication
Promotes cooperation and industrial peace: Efficient operation is the aim of all
prudent management. The two way communication promotes cooperation
and mutual understanding between the management and workers.
Forma Inform
l al
Formal Communication
Communication through the official chain of command is called formal communication.
Thus, formal communication flows through the scalar chain of authority.
This communication may take place between a superior and subordinate, a
subordinate and superior or among same cadre employees or managers.
The communications may be oral or written but generally recorded and filed in
the office.
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1. Single chain: This network exists between a supervisor and his
subordinates. Since many levels exist in an organisation
structure, communication flows from every superior to his
subordinate through single chain.
2. Wheel: In wheel network, all subordinates under one superior
communicate
through him only as he acts as a hub of the wheel. The
subordinates are not allowed to talk among themselves.
3. Circular: In circular network, the communication moves in a
circle. Each person can communicate with his adjoining two
persons. In this network, communication flow is slow.
4. Free flow: In this network, each person can communicate with
others freely. The flow of communication is fast in this network.
5. Inverted V: In this network, a subordinate is allowed to
communicate with
his immediate superior as well as his superior’s superior.
However, in later case, only prescribed communication takes
place. 47
Informal Communication
Communication that takes place without following the formal lines of
communication is said to be informal communication.
It spreads throughout the organisation with its branches going out in all
directions in utter disregard to the levels of authority. It spreads rapidly
and sometimes gets
distorted.
The informal communication arises out of needs of employees to
exchange their views, which cannot be done through formal channels.
It is very difficult to detect the source of such communication in case of
rumours. People’s behaviour is affected by rumours and informal
discussions and sometimes may hamper work environment.
An intelligent manager should make use of positive aspects of informal
channels and minimize negative aspects of this channel of
Grapevine Network
communication.
The network or pathway of informal communication is called
grapevine. The origin and direction of flow of information
cannot be easily traced. Grapevine is structure less and it
grows towards all direction. 47
Informal Communication Network
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1. Single strand /line – each person communicates to the other
by
keeping a strict sequence.
2. Gossip – each person communicates with all others on non-
selective basis.
3. Probability – individual communicates with other
individual on a random basis.
4. Cluster – here the individual passes information to only
those
persons in whom he has trust.
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Barriers to Communication
These barriers may prevent a communication or filter part of
it or carry incorrect meaning due to which
misunderstandings may be created.
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Semantic barriers:
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1. Badly expressed message: Sometimes intended meaning may not be
conveyed by a manager to his subordinates. These badly expressed
messages may be an account of inadequate vocabulary, usage of
wrong words, omission of needed words etc.
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3. Loss by transmission and poor retention: When
communication passes through various levels, successive
transmissions of the message results in loss of, or
transmission of inaccurate information. This is more so in
case of oral communication. Poor retention is another
problem. Usually people cannot retain the information for a
long time if they are inattentive or not interested.
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Organisational barriers: The factors related to organisation
structure, authority relationships, rules and regulations may,
sometimes, act as barriers to effective communication and are
called organisational barriers.
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3. Status: Status of superior may create psychological distance
between him and his subordinates. A status conscious
manager also may not allow his subordinates to express their
feelings freely.
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Personal barriers: These are personal factors of both sender and receiver
which may exert influence on effective communication.
4. Be aware of languages, tone and content of message: The contents of the message,
tone, language used, manner in which the message is to be communicated are the 60
5. Convey things of help and value to listeners: While conveying message to others, it is
better to know the interests and needs of the people with whom you are
communicating. If the message relates directly or indirectly to such interests and
needs it certainly evokes response from communicatee.