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DIRECTING - Principles of management
DIRECTING - Principles of management
DIRECTING - Principles of management
UNIT-4
PART-A
1 -Define Authority?
Authority is the official right of a person to do and
make things happen in organization. Authority gives the
allocate resources.
2- Define power?
Power is the capacity of person to act and influence
others. A person get power by virtue of his intelligence
Knowledge skill and other personal traits.
3- What is influence?
* Influencing is an essential skill and management
function of guiding the activities of employees in the
direction of organizational goal achievement.
* It deals with controlling people and their behavior
To guarantee that the organizational goals are attained.
4-What is responsibility?
It is individual who has been given the authority to carry
out a specific to make decisions.
5-What is delegation?
Delegation is the process of assigning work to
subordinates and giving them the authority to carry out
the same. Authority is the official right of a person to act.
It can be delegated. The manager who has authority to do
Things transfers some of his rights to his subordinates to
his subordinates to enable them to perform the work
entrusted.
6-What is decentralization?
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Decentralization refers to a specific form of
organizational structure where the top management
delegates decision making responsibilities and daily
Operations to middle and lower subordinates.
7- What is centralization?
Concentration of decision making authority in the
hands of a few at the top level is known as centralization.
8-What is direction?
Directing is telling people what to do and seeing that
they do it to the best of their ability.
PART-B
9-What is theories of Authority?
There are different views on the source of authority. There
are three different theories on the source of authority.
*Formal Authority theory
*Acceptance Theory and
*competence theory.
FORMAL AUTHORITY THEORY:
This organizational though the process of delegation. It is joint stock
company for example to the board of directors. The board in turn the
delegates the authority to the managing director who delegates it to
the departmental managers. Every individual derives his authority by
the reason of his formal position in the organization. Such authority
is known as formal authority.
ACCEPTANCE THEORY:
The acceptance theory was developed by a management expert
called chester barnard. According to this theory the formal authority
has significance only if it is accepted by the subordinates.
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In the other words the effectiveness of formal authority depends on
the willingness of the subordinates to accept it. A subordinate will
accept the exercise of authority if the advantages accruing to him
from accepting it exceed the advantages accruing from not
accepting.
A subordinate will accept an order if its consistent with the
organizational interest as well as his personal interest and he is able
to comply with it both physically and mentally.
C0MPETENCE THEORY:
This theory states that a person derives authority out his personal
qualification formal authority accrues to a person by virtue of his
official position in the organization. Person authority on the other
hand, is derived by a person by reason of his experience and etc.it is
not uncommon to find a superior officer evolving an important
decision and consulting an experience and competence subordinate
of his.
10.
The process of delegation does not always follow a set structure,
however, some aspects which are typically involved are:
1.Allocation of duties:
The delegator communicates to their subordinate the task which is
to be performed. Resources are provided and a time limit is
informed.
2.Delegation of authority:
In order for the subordinate to perform the task, authority is
required. The required authority is granted to the employee when
the task is delegated.
3.Assignment of responsibilities:
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When authority is delegated, the subordinate is assigned with the
responsibility of this task. When someone is given the rights to
complete a task, they are assigned with the corresponding obligation
to perform. Responsibility itself cannot be entirely delegated; a
manager must still operate under equal responsibility to the
delegated authority.
4.Creation of accountability:
At the completion of the delegation process, it is essential that the
manager creates accountability, meaning that subordinates must be
answerable for the tasks which they have been authorized to carry
out.
11.Merits and Demerits of Delegation?
Merits of Delegation;
1.It can save time for everyone:
As a leader of a growing business, you properly know you’re
spinning too many plates. Effective sharing of responsibilities will
take off the pressure and allow you to focus on achieving your
personal and company visions.
2.Growing team and business:
By sharing the load of responsibilities, you’re not only investing
in your team’s careers, but it also means you won't waste time,
leading to increased productivity and business output. This can lead
to increased profit margins, better recruitment.
Question No. 16
Factors determining the degree of decentralisation:
1. Attitude of the top management – If the top management wants all the
decision-making authority to be confined to itself and to a few key executives, it
may prefer centralisation. On the other hand, if the management wants to have
only overall control over the organisation and prefers decision-making authority
to be dispersed at different levels of the organisation, it may prefer the idea of
decentralisation.
2. Size of the enterprise/Scale of operation – If the size of the concern or the
scale of its operations is small, centralisation can prove to be effective. On the
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other hand, if there are a number of operations to be performed through many
departments or divisions, decentralisation can be ideal.
3. Nature of functions – In a manufacturing concern, production and
marketing are the basic functions. Such basic function, may be decentralised for
better results. Functions such as personnel and finance, meant to facilitate the
performance of the basic functions, may be centralised to derive greater
efficiency.
4. Extent of diversification – If the business enterprise is producing and
marketing different types of products, e.g., Godrej, decentralisation will be more
beneficial.
5. Availability of capable managers – The decision on decentralisation is very
much influence be the availability of efficient managers. In fact, decentralisation
will be successful only if the top management is able to find capable managers
to effectively manage the different departments or divisions of the enterprise.
17.
MERITS/ADVANTAGES OF DECENTRALIZATION:
1.Motivation of Subordinates :
Talking about the advantages and disadvantages of decentralization, counting
the motivation among the team members and the stakeholders is important.
When you give them the power to be part of decision-making, it will encourage
them and make them feel they are an important part of the institution. In fact,
by the time decentralization reaches every corner of the planet, we will have
replaced hierarchies that are abundant in our centralized societies with a fairer
framework. One where networks and protocols are run by their communities
every step of the way.
2. Growth and Diversification:
Distributing executive powers among every organization member makes them
accountable and motivated for growth. They will understand various aspects of
decision-making. Moreover, decentralization makes way for diversified
decision-making for a diverse and vibrant society.
3. Efficient Communication :
Since the powers are distributed amongst various organizational levels, it leads
to effective and efficient communication among the members. It helps with
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developing better relationships among colleagues. In the financial world,
decentralization also improves communication between the recipient and
payee.
4. Ease of Expansion :
Since any organization aims to expand to various places, giving authoritative
powers to team members in different places can lead to effective expansion.
You can get area-specific requirements from the team members and grow
according to those needs.
5. Better Supervision and Control :
Team members can have better supervision amongst themselves as they have
the authority to recommend new work styles when needed to improve
efficiency. As members of an organization or project who are equally responsible
for its affairs, they will be motivated to take a more active role in fixing burning
issues.
6. Satisfaction of Human Needs:
Every person wants to have a sense of freedom while working or even making
financial transactions. Decentralization helps in feeling the sense of power and
freedom that everyone requires. If you and others are satisfied workers in the
organization, then the organization must be working towards growth.
7. Key Personnel are no more than Consultants:
VP, CTO, and HR are key personnel, especially during the initial stages of a new
project. The community can always consult them for guidance in the future. At
the end of the day, the community, including these people, will collectively make
the decisions rather than just a few people at the top.
DEMERITS/DISADVANTAGES OF DECENTRALIZATION:
1. Difficult to Coordinate/Delayed Decision-Making:
In discussing the advantages and disadvantages of decentralization, it is
necessary to understand that one of the biggest cons is reaching a consensus.
Since there are many members to consult, the decision-making can be a difficult
task to complete. It means that sometimes the lack of coordination may stretch
the decision-making.
2. External Factors :
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A lot of times, external factors like trade unions, market movement, the
government, and others, make it hard to achieve a decision through discussion
and consensus. They may look to manipulate/corrupt the majority through
protocol loopholes resulting in unfair decisions made.
3. Narrow Product Lines :
For decentralization, the product lines in an organization need to be
subsequently broad. This is important to ensure that decentralization helps in
decision-making. Smaller organizations with narrow product lines and a lack of
managerial-level people at lower levels may find it challenging to gain from
decentralization.
18.WHAT IS DIRECTION?
1.According to Dale ,“Direction is telling people what to do and seeing that they
do it to the best of their ability”.
2.Direction Ensures that sub-ordinates do their work. well as per the expectation
of management in order to achieve the goals. It also develops interpersonal
relations in a group.
3.In the absence of direction no one can understand what he is supposed to do
and whether he is doing it in the right way or not.
4.Direction through effective motivation communication and leadership
provides stability to the organization and helps in maintaining balance between
different departments in the organization.
5.Direction should bring efficiency to the operations. Leaders should try to
motivate sub-ordinates to increase performance & attain objectives at minimum
cost by avoiding wastages.
6.Thus direction stands out as an important function of management. It has also
been observed that there is a high correlation between direction and work
performance.
19. Direction in management serves several crucial purposes:
1. Alignment of Goals: It ensures that all members of the organization
understand the goals, objectives, and priorities, thereby aligning their efforts
toward common targets.
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2. Clarity and Focus: Direction provides clarity regarding roles, responsibilities,
and expectations, enabling employees to focus on tasks that contribute to
organizational success.
3.Coordination and Integration: It facilitates the coordination of activities across
different departments or teams, ensuring smooth integration of efforts toward
achieving organizational objectives.
4.Motivation and Engagement: Direction provides a sense of purpose and
direction to employees, motivating them to work towards shared goals and
fostering higher levels of engagement.
5. Optimization of Resources: By providing clear direction, management helps in
optimizing the allocation of resources, including time, money, and manpower,
towards activities that generate the most value for the organization.
6.Risk Mitigation: Effective direction can help identify potential risks and
challenges early on, allowing management to take proactive measures to
mitigate them and steer the organization in the right direction.
20. Importance of directing in the organisation:
1. Initiates Action: Directing is the starting point of action. It initiates action
based on planning, organising and staffing. Action is initiated when the
managers provide direction to their subordinates for carrying out the task.
Therefore, the directing function provides a set of guidelines to the employees
on how to start working towards achieving the goals of the organisation.
2. Integrates efforts of employees: The activities and works of the employees
across an organisation are integrated towards achieving the objectives set by
management. As all the activities of the organisation are integrated by directing,
it leads to efficiency and effectiveness in the organisation.
3. Provide motivation: Directing acts as a source of motivation for the
employees. It helps in motivating the employees in contributing their efforts for
the realization of organisational objectives.
4. Accommodates changes: Directing helps in steering the organization towards
success by accommodating the various changes in the business environment
that can be brought about by changes in competitors, changing market
conditions.
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5. Maintaining balance: Directing brings about stability and balance in the
organization which is essential for long term survival of the business. Balance
and stability can be achieved by following a persuading leadership style coupled
with effective communication, motivating employees and strictly supervising
the work of employees and suggesting improvements.
6. Efficient use of resources: Directing provides individual roles to each
employee. Therefore, the resources are utilised efficiently that leads to less
wastage of resources, reduces duplication of efforts by maintaining a clear set
of work for each employee. It leads to best possible utilisation of resources of
the organisation, which translates into growth of the organisation.
21.Techniques of direction:
Direction techniques are fundamental tools employed by leaders to guide
individuals or groups towards a common goal. Effective communication stands
out as a key technique, involving clear and concise messages that foster
understanding among team members. Leaders often utilize active listening to
gather insights, ensuring a collaborative and inclusive decision-making process.
Additionally, providing constructive feedback promotes growth and encourages
team members to enhance their performance.
Another crucial aspect of direction involves setting realistic and achievable
goals. Leaders need to define objectives that align with the organization's vision,
breaking them down into manageable tasks. Delegation emerges as a powerful
technique, allowing leaders to distribute responsibilities according to team
members' strengths, fostering a sense of ownership and accountability.
Furthermore, adaptability plays a vital role in effective direction, as leaders must
navigate changing circumstances and adjust strategies accordingly.
Key Points:
1 .Communication Clarity
2. Active Listening
3. Constructive Feedback
4. Goal Setting
5. Strategic Delegation.