CHAPTER SIX

THE DIRECTING FUNCTION

Chapter Objectives
After completing this chapter, students will be able to;
•Understand the Directing function of
management.
•Define the term leadership.

•Identify the various theories of leadership.

•Understand the concept of motivation and the

different theories of motivation.
•Explain1 the concept and meaning of
communication.
Introduction
 What does it mean by the function of
directing?

 What behavior of individuals can be

influenced?

 How do managers influence the

behavior of their subordinates?

What is its benefit to the organization?

2

Directing is one of the vital functions
of management, which is related to
influencing people.

Directing is the process of

integrating the people with the
organization so as to obtain their
willing and enthusiastic cooperation
for the achievement of its goals.
3
 CONT’D…..
Directing refers to a process of instructing, guiding, inspiring,
counseling, overseeing and leading people towards the
accomplishment of organizational goals.

4
Directing builds a conducive climate,
provides leadership and arranges the
opportunity for motivation.

The directing function has three

elements: leadership, motivation and
communication.

5
 MEANING AND THE NEED FOR LEADERSHIP
 Leadership is the
activity of influencing
people to strive
willingly for mutual
objectives.

 It is the process of
directing and
influencing the task
related activities of 6
group members.
Leadership involves paying
simultaneous attention to;
The tasks to be accomplished by
groups and individuals, and
The need and expectations of groups

and individuals
Leadership is the ability to secure
desirable actions from a group of
followers voluntarily without the use
of coercion or force. 7
 CONTINUED…….
 Leaders act to help a group achieve
objectives with the maximum application
of its capabilities.
 Leading is establishing direction and influencing
others to follow that
direction.
 Leading is not deriving or pushing from be
hind
; it is
placing oneself before the group and facili
tating progress 8

and inspiring
 NEED FOR LEADERSHIP
Organizations are as good as their leaders.
Organizations will never be successful unless they
have effective and efficient leaders.
Leadership is important because;
It initiates action by giving guidance to
people/employees
It integrates (fits) employees’ effort by
coordinating actions of the members
It attempts to get the maximum out of the
individuals
It facilitates change 9
 GROUP DISCUSSION

What is the difference and similarity between

Management and Leadership?

10
 LEADERSHIP VERSUS MANAGEMENT
An issue often debated among business professionals and
scholars is whether leadership and management are alike.
 Emerging trends in management point out that leading
people is different from managing them.

Management is a broad subject that encompasses

activities such as planning, organizing, staffing,
directing, and controlling.

Leadership, on the other hand, focuses almost

exclusively on the ‘people’ aspects of getting a job
done-inspiring, motivating, directing, and gaining
commitment to organizational activities and goals.11
 Management skills- the skills required to manage resources in
order to deliver a task, product, or service.
 Leadership skill- the skills required to engage with, motivate,
and persuade people to win their commitment to a vision/goal
or objective.

 Leadership means questioning the status quo so that outdated,

unproductive, or socially irresponsible norms can be replaced to
meet new challenges.

 A manager supervises; a leader influences

 A manager gains authority from his/her position; a leader gains
authority by his/her mindset and behavior
 A manager looks at the bottom line; a leader looks the horizon
12

 We manage tasks; we lead people.

 CONTINUED….

Management
Leadership

Promotes stability, Promotes vision,

order/predictability and creativity, and
problem solving within change
existing organizational
structure and systems
M L

Takes care of where you are Takes you to a new place

13
Leadership accompanies and
complements the management functions
(Both are essential for optimal
organizational performance).

 Good management is needed to help the organization

meet current commitments, while good leadership is
needed to move the organization into the future.

Harvard’s John Kotter believes that most

organizations are under led and over 14

managed.
 CONT’D……

Leading is establishing direction and

influencing others to follow that direction.

15
 HOW DO LEADERS INFLUENCE
OTHERS?
One major reason is that leaders have
power.
 Power is the ability of individuals or
groups to induce or influence the beliefs
or actions of other persons or groups.

 Leadersin organizations typically rely

on some or all of the five major types of
power: legitimate, reward, coercive,
expert and referent. 16
 Reward Power- the leader's capacity to
give or withhold rewards for followers.
Rewards include salary increases /pay raises,
bonus, interesting projects, promotion,
recommendations, a better office etc.

 CoercivePower - is the ability to coerce or

punish the followers when they do not
engage in desired behaviors.
 Forms of coercion or punishment include
criticisms, suspensions, warning letters,
terminations
17
 Expert Power- Refers to power that a leader
possesses as a result of his or her knowledge and
expertise regarding the tasks to be performed by
subordinates.

 Referent Power (charismatic power)- is power that

results from being admired, personally identified with
or liked by others.
 Referent power depends on a leader’s personal

characteristics rather than on his or her formal title or

position.
 For example, a Movie Star, a Great Athlete, a Great Football
Player, a famous musician etc.
 Legitimate power/position power - Refers to the
power a leader possesses as a result of occupying18 a
particular position or role in the organization.
 AUTHORITY VERSUS POWER
Authority
It is positional: it will be there as long as
the incumbent is in the position.

Narrower – it is only one source of

power.

It changes with changes in position.

Authority is delegated to an individual19

 CONTINUED…..
Power
It is personal- it exists because of the
person.
Broader
Some types of power do not change
(Expert, Referent) but some change
legitimate, reward, coercive.
Not all power types can be delegated
(Expert and referent). 20
TAKE A FEW MINUTES:
ARE LEADERS BORN OR MADE? WHY?

Leadership Skills

21
 LEADERSHIP THEORIES
1. THE TRAIT THEORY OF LEADERSHIP
Traits are inborn and inherent
personal qualities of individuals.
They are the distinguishing personal
characteristics of a leader, such as;
 Achievement drive - Endurance
 Ambition - Self Confidence
Appearance - Cognitive ability/conceptual
skill
Energy - Honesty and integrity-truthful
22
Persistence - Enthusiasm/passion
 A recent published analysis of leadership traits
identified Six core characteristics that the majority of effective
leaders possess:

 Drive. Leaders are ambitious and take initiative.

 Motivation. Leaders want to lead and are willing to take charge.
 Honesty and integrity. Leaders are truthful and do what they say
they will do.
 Self-confidence. Leaders are assertive and decisive and enjoy taking
risks. They admit mistakes and foster trust and commitment to a vision.
Leaders are emotionally stable rather than recklessly adventurous.
 Cognitive ability. Leaders are intelligent, perceptive, and conceptually
skilled, but are not necessarily geniuses. They show analytical ability,
good judgment, and the capacity to think strategically.
 Business knowledge. Leaders tend to have technical expertise in their
businesses 23
 CONTINUED……
This theory believes that leaders possess certain specific
inborn traits, which are inherited rather than acquired.
The traits distinguish the leaders from non leaders or
successful leaders from the unsuccessful ones.
Assumes that some people are natural leaders, and are endowed with
certain traits not possessed by other individuals.

It has a root from "the great man theory" dating back to the
ancient Greeks & Romans time, that holds leaders are born not
made.
 Great
man approach - early research focused on leaders
who had achieved a level of greatness.
Find out what made them great
Find people with same traits and those people can be
24

successful leaders.
 2. THE BEHAVIORAL THEORY OF
LEADERSHIP
The behavioral theory of leadership focused on
what leaders do rather than their traits (who they
are).

Asserts that any leader could adopt the correct

leadership behavior with appropriate training or
education.

Researchers at the University of Michigan, Ohio-

state University, and the University of Texas
examined the specific behaviors that leaders use
to subordinate satisfaction and performance. 25
 HOME STUDY

Refer Books about the following and compile a note;

 Researches in University of Michigan, Ohio-state

University, and the University of Texas about
leadership and their findings.

26
 Two basic leadership behaviours
identified as important for leadership
are
Task – oriented behaviour – the focus
is on meeting schedules, keeping costs low,
and achieving production efficiency.

People – oriented behaviour –

understanding the needs and concern of
followers, respecting their ideas and feelings,
establishing mutual trust and showing
supportive behavior toward subordinates.
27
MANAGERIAL GRID (R. BLAKE & JASE MUTTON 1975)-TEXAS UNIVERSITY

28
 3. THE CONTINGENCY THEORY OF LEADERSHIP
This theory suggest that leadership effectiveness is a function
of a variety of factors that will vary depending on the
leadership situation.

It asserts that there is no single way of leading that works in

all situations.
The style that works in one environment may not work in
another.

Different situations and different followers may require

different approaches to leadership.

Managers should select a leadership style that best fits the

situation.
29
Suggest that managers need to choose leadership styles
based on leadership situations.
 Contingency approaches include the situational theory of
Hersey and Blanchard, the leadership model developed by
Fiedler and his associates, and the path–goal theory.
 Hersey and Blanchard’s approach focuses a great deal of
attention on the characteristics of followers in
determining appropriate leadership behavior.
 Subordinates vary in readiness level.
 People low in task readiness, because of little ability or training, or
insecurity, need a different leadership style than those who are high in
readiness and have good ability, skills, confidence, and willingness to
work.
 The appropriate leadership style depends on the readiness level of
followers.

30
The contingency theory assumes that
leadership is a function of the leader,
the followers and the situation.
 Followers considerations- expertise,
experience, competence, job knowledge,
quality of relationship between the leader
and followers.
 Task considerations- degree of ambiguity of

the task, the degree to which the task is

structured (degree to which task procedures
and goals are clear)
 Leader- his/her competence, his/her ability to
31
hire and fire.
 LEADERSHIP STYLES
A manager’s leadership style is composed of three
components:
 How the manager chooses to motivate
subordinates: Motivation approach can be
positive (like Recognition, Praise, Security,
Monetary Rewards) or negative (like
Threatening, Coercion, Penalties, Suspensions,
Termination)
 His/her decision-making style: the degree of
decision-making authority the manager grants
to subordinates.
 His/her emphasis (orientation) in the work
32
environment: Task orientation versus employee
orientation.
 AUTHORITARIAN (AUTOCRATIC) LEADERSHIP STYLE
This occurs when leaders concentrate power and
leadership within themselves.

Tasks are assigned, facilities provided, decisions are

made, and direction given without consultation with
the employee carrying out the task.

Leader expects high degree of compliance by

subordinates.

Leader emphasizes task performance, exercise

close supervision, uses coercion, but permits 33no
participation in decision making.
 DEMOCRATIC/PARTICIPATIVE
LEADERSHIP STYLE
Characterized by participation of the
group and utilization of its opinions.

Emphasizes the groups’ interest and

strives to satisfy them.

Permitssubordinates to participate in
making decisions. 34
 LAISSEZ-FAIRE/FREE-REIN LEADERSHIP STYLE
In this leadership style, leaders generally give the
group complete freedom, provide the necessary
materials, participate only to answer questions.
The leader encourages team members to function
independently and work out their problems by
themselves.

The leader uses his/her power very little giving

subordinates full freedom.
Characterized by loose employee control.
It is usually appropriate when the team is highly
motivated and skilled, and has a history of
35
producing excellent work.
Limitations
Group may move aimlessly in the
absence of direction from the leader.
It may make things out of control.

Advantages
It gives freedom for subordinates.
It gives much responsibility and self
guidance for subordinates.
36
 SITUATIONAL LEADERSHIP STYLE

 It is based on the belief that effectiveness of one

or more leadership style depends on the
situation.

 No single best style of leadership.

37
 THEORY X AND THEORY Y
ASSUMPTIONS
 Douglas McGregor, a social psychologist and Management
Professor, identified two contrasting prominent assumptions about
employees
 Douglas asserts that leadership strategies are influenced by a
leader's assumptions about human nature.

Theory X Assumptions
 People inherently dislike work and when possible will
avoid it.
 They have little ambition, tend to shun responsibility and
prefer to be directed.
 It is necessary to use coercion, control, threat or
punishment. 38
 Feels the sole purpose of the employees' interest in the job is
money and security.
Theory Y assumptions
 The average human being doesn’t inherently
dislike work.
 External control and the threat of punishment are
not the only means for bringing about effort
toward organizational objective.
 The average human being seek responsibility.

 Work is a natural phenomenon, and if people are

committed to goals they will exercise self control.
 The essential task of management is to create
conducive environment so that people will
achieve their own goals.
39
Criticism of Both assumptions
 Both suffer from too much
generalization.

 Neither of these theories is

consistently in accord with research
findings.

40
 MOTIVATION
Motivation is an internal force that
energizes behavior, gives direction to
behavior, and underlies the tendency to
persist.
 Motivation is the willingness to exert
high level of effort toward
organizational goals.
Motivating is the act of stimulating
someone or oneself to take a desired course
of action. 41
Whatmotivates Employees? May be
money?

42
 THEORIES OF MOTIVATION
The Carrot and Stick Approach
Is based on the old story about a donkey.

This approach relates to the use of rewards and

penalties in order to induce desired human
behavior.
 The carrot represents rewards (money, bonus,
promotion), while the stick represents penalty,
punishment, fear, demotion etc.
Problem
Money may not always motivate employees

Costly to motivate people using money.

43
The stick is not always the best motivator.
44
 Hierarchy of Needs Theory (Abraham Maslow)
Maslow proposed that motivation is a function of needs.

Human needs are arranged hierarchically ranging from

the most basic physiological needs to the highest needs for
self-actualization.
Human beings will be motivated to fulfill whichever is
most powerful at a given time.
Man is a wanting animal, when one of his needs is
satisfied, another appears in its place.
 A satisfied need is no more a motivator. Needs are
satisfied in sequence.
1. Physiological Needs
 These are the basic needs for sustaining human life, such
as food, water, air, shelter, sleep, etc. In the working
45
environment, management tries to satisfy these needs
primarily through salary.
2. Safety /Security Needs- include freedom from fear and
anxiety, job security, desires for retirement and insurance
programs and so on.
Management attempts to satisfy safety needs primarily
through salary and by eliminating threats to physical
safety.
3. Social/ Love/ Affiliation Needs
Need for belongingness, love, affection, friendship

4. Esteem Needs
Esteem needs include the desire for both self-esteem (self respect)
and public esteem, attention, appreciation, and recognition by others.
5. Self actualization needs- Refers to the need for fulfillment, the desire
to become what one is capable of becoming-to maximize one’s
potential and to accomplish something.
 Can be met in the organization by providing people with
opportunities to grow.
46

Example: breaking a world record for an Athlete.

47
 EQUITY THEORY OF MOTIVATION
 Equity theory says that people will be motivated
at work when they perceive that they are being
treated fairly.
 Equity can be defined as the ratio between the
individual’s job inputs (such as effort or skill) and
job rewards (such as pay or promotion).
 Individuals will be motivated when they
experience satisfaction with what they receive
from an effort in proportion to the effort they
apply.
 People also judge the equity of their rewards by
comparing them with the rewards others are 48
receiving for similar effort.
 MONEY AS A MOTIVATOR
Why people work?
The need to earn a living is the most powerful
single reason why people work.
Money is an urgent means of achieving minimum
standard of living.
Money has been and will continue to be an
important motivator. It satisfies almost all types
of human needs.
Economists and most managers have tended to
place money high on the scale of motivators,
while behavioral scientists tend to place it low.
49
Which view is right?
 HOME STUDY
 Read about the following Motivation theories and
write a note about their managerial implication.

Herzberg’s Two-Factor Theory

ERG Theory

Expectancy Theory

50
Goal-setting theory
 COMMUNICATION IN ORGANIZATIONS
Communication is an exchange of facts, ideas,
opinions, or emotions by two or more people.

It is the process by which information is

transmitted between individuals and organizations
so that an understanding response results.

Involves a sender and a receiver.

Communication is important in creating a mutual
understanding and facilitating the managerial
functions.
51
 ELEMENTS OF THE COMMUNICATION PROCESS
Stimulus/motivation- a person with doubts,
ambition, curiosity stimulates communication
Encoding- is the process, by the sender, of
translating an idea into a message.
Choosing media/channel- medium is the carrier of
the message to be sent such as memorandum,
magazine, radio, telephone etc.
Decoding- the process of making sense out of a
message sent from the sender.
Feedback- is the reaction that the receiver has to a
message sent from a sender. Shows whether the
message has been transmitted accurately and 52

completely.
 Types of Communication in Organizations
Based on direction of flow
i. Downward communication- message flow from
people at higher levels in the organizational
hierarchy down to the subordinates.
Example: Instructions, policies, directives etc.
ii. Upward communication- message travel from
subordinates to superiors and continue up the
organizational hierarchy. Example: Reports,
suggestions etc.
iii. Horizontal/lateral communication- horizontal
flow of information with people in the same
organizational levels. 53
Based on the media of transmission used;
i. Written communication
ii. Oral communication
iii. Non-verbal communication
Based on the channels for communication
iv. Formal communication- flows along
official channels and uses official formats.
v. Informal communication- communication
among people in the informal group that
is not officially recognized by
management. 54
 BARRIERS TO EFFECTIVE COMMUNICATION
 Barriers are obstacles to the free flow of
information. Some of them are;
 Difference in perception- no two people can see
things exactly alike.
 Semantic/language barriers-

 Value judgment/ preconception- assignment of a

meaning to a message prior to receiving the
intended meaning of it.
 Motivation and interest-

 Filtering-

 Pressure of time-
55
 Information overload-
 HOW TO MAKE COMMUNICATION EFFECTIVE
Create an environment of trust and confidence
Be clear about the objective of communication
Be sensitive to communication- the mood of
the receiver, timing etc.
Empathy- the sender should place himself in
the shoes of the receiver.
Listening carefully
Utilize feedback
Simplifying language
Using the grapevine- 56
Thank You!

57