CC106 : Principles of

Management (POM)
 MODULE : 4

DIRECTING
 Scope Directing
 Human Factors
 Creativity and Innovation
 Harmonizing Objectives
 Leadership
 Types of leadership
 Motivation
 Motivation Theories
 Motivation Techniques
 Job Enrichment
 Communication
 Process of communication
 Barriers and Breakdown
 Effective Communication
 Electronic media in communication
 External Exam Questions
(1) Explain briefly the motivation techniques. (7 Marks)
(2) Write a note on Maslow’s hierarchy of needs with
diagram? (7 Marks)
(3) What is leadership? Explain types of leadership.
(7 Marks)
(4) Describe communication. Explain the role of effective
communication in the organization. (7 Marks)
(5) Case Study.(14 Marks)
 Directing
 Directing is the process of telling people what to do
and seeing that they do it to the best of their ability.
 Directing is the process of instructing, guiding,
counseling, motivating and leading the humans to
achieve organizational objectives.
 Directing is the interpersonal aspect of managing by
which subordinates are led to understand and
contribute effectively to the attainment of enterprise
objectives.
 Scope of Directing
It consists of:
(1) Issuing orders and instructions by a superior to his
subordinates. (Communication)
(2) Guiding, advising and helping subordinates in the
proper methods of work. (Leadership)
(3) Motivating them to achieve goals by providing
incentives, good work environment, etc. (Motivation)
(4) Supervising subordinates to ensure compliance with
plans. (Supervision)
 Features of Directing
 Deals with people

 Seeks performance

 Provides a link

 Pervasive

 Dynamic and continuous

 Importance of Directing
 Initiates Action

 Achieves integration

 Motivates people

 Facilitates Changes

 Provide stability and Balance to the organization

 Achieving Organizational Objectives

 Better Human Relations

 Facilitates Order and Discipline among employees

 Techniques/Elements of
Directing
 Issuing orders and instructions

 Follow-up of orders and instructions

 Standard practices and procedures

 Explanations

 Behavioral pattern
 Human Factors in Managing
(1) Multiplicity of Roles

(2) No Average Person

(3) Importance of Personal Dignity

(4) Consideration of the whole person

 Creativity and Innovation
Meaning of Creativity
 Creativity means ability and power to develop new
ideas.
 Creativity is a mental and social process involving the
generation of new ideas or concepts.
 Creativity is the process of seeing problems or gaps in
information, forming ideas or hypotheses, testing and
modifying these hypotheses and communicating the
results.
 Creativity is the application of knowledge and skills in
new ways to achieve a valued goal.
 Creativity and Innovation
Characteristics of Creativity
 Creativity is a process not a product.
 Creativity requires high degree of awareness.
 Creativity is not an isolated activity.
 Creativity is about thinking something new and
whenever this new idea is implemented it brings
change.
 Creativity involves conscious thinking.
 Creativity involves pattern breaking.
 Creativity involves answers to questions.
 Creativity and Innovation
Factors influencing Creativity

(1) Challenging Work

(2) Supportive Supervision

(3) Organizational and Work Group Culture

(4) Workload Pressures

(5) Resource Allocation

 Creativity and Innovation
Creativity Process/Creative Process

(1) Preparation

(2) Incubation

(3) Insight/illumination

(4) Logical Formulation or Verification

 Creativity and Innovation
Techniques of Creativity
(1) Brainstorming
(2) Group Discussion
(1) Brainstorming:
 Developed by Alex F. Osborn
 Father of Brainstorming
 The purpose of this approach is to improve problem
solving by finding new and unusual Solutions.
 In a brainstorming session, 6 to 12 people sit around a
table.
 Creativity and Innovation
 Rules of Brainstorming
(1) No ideas are ever criticized.
(2) The more radical the ideas are, the better.
(3) The quantity of idea production is stressed.
(4) The improvements of ideas by others is encouraged.
 Advantages
 Disadvantages
(2) Group Discussion:
 Creativity and Innovation
Meaning of Innovation
 Innovation means the use of ideas.
 Innovation means a new way of doing something.
Types of Innovation
(1) Technological Innovation
(2) Organizational Innovation
(3) Social Innovation
Sources of Innovation
(4) Research and development firms
(5) Universities and Government funded research
(6) Private Non-profit Organizations
 Harmonizing Objectives
 Harmonizing Objectives means establishing concurrence
between the organizational goals and the personal goals of
the member of the organization.
 Harmonizing Objectives is the essence of directing.
Organizational Features Individual Needs
(1) Logically designed plans (1) Money
(2) Organizational Structure (2) Status
(3) Good Staffing (3) Satisfaction
(4) Efficient Control (4) Security
 Leadership
 Leadership is the process of influencing people so
that they will strive willingly and enthusiastically
toward the achievement of group goals.
 Leadership is a process by which a person influences
others to accomplish an objective and directs the
organization in a way that makes it more cohesive and
coherent.
 Leadership is the ability of a superior to influence the
behavior of his subordinates and persuade them to
follow a particular course of action.
 Leadership is a process of influencing people to direct
their efforts towards the attainment of some particular
goals.
 Function of Leadership
 Determination of goals

 Achieving Coordination

 Representation of Workers

 Providing Guidance

 Inspiration of Employees

 Building employee morale

 Facilitating Change
Types of Leadership/Leadership Styles
Leadership style is the manner and approach of
providing direction, implementing plans, and
motivating people. In a 1939, Kurt Lewin and a group
of researchers identify different styles of leadership.
The three major styles of leadership are:

(1) Autocratic/Authoritarian/Directive Style

(2) Democratic/Participative Style

(3) Free Rein Style

 Autocratic/Authoritarian/Directive
Style
 Autocratic leader is one who takes all decisions
himself without consulting the subordinates.
 Features:

(1) Centralized power and decision making

(2) One way communication

(3) Total dependence of subordinates on superior

(4) Discipline through rewards/punishment

(5) Close supervision and control

Autocratic/Authoritarian/Directive
Style

Autocratic style is used

when leaders tell their
employees what they want
done and how they want
it accomplished, without
getting the advice of their
followers.
(I want both of you to. . . )
 Autocratic/Authoritarian/Directive
Style
Advantages
 Decision can be made quickly.
 Centralized control
 Close supervision
 Offers consistence in goals and procedures
Disadvantages
 Low motivation
 Little scope of creativity
 Total dependency creates problem
 One way communication creates problem
 Democratic/Participative Style
 Democratic leader encourages his subordinates to
participate in the decision making process. He consults
them before taking decisions.
 Features:

(1) People involves in decision making and goal setting

(2) Freedom of thinking and action

(3) Two way & Open communication between members

Democratic/Participative Style

 Democratic style involves

the leader including one
or more employees in the
decision making process.
(Let's work together to
solve this. . . )
 Democratic/Participative Style
Advantages
 Motivates people to do better
 Increases the cooperation between management and
employees.
 Reduction in the number of complaints
 Increases the morale of employees.
Disadvantages
 Time consuming
 Inefficiency on the part of leader
 Free-Rein Style
 A Free-Rein leader does not lead, but leaves the group
entirely to itself. A Free-Rein leader turns an entire
problem or project over to subordinates.
 Features

(1) Group members set goals and decide things on

their owns.

(2) Leader is a passive observer of things.

(3) Leader allows maximum freedom to subordinate.

Free-Rein Style
 In Free-Rein style, the
leader allows the employees
to make the decisions.
However, the leader is still
responsible for the
decisions that are made.

(You two take care of the

problem while I go. . .)
 Free-Rein Style
Advantages
 May encourage suggestions, creativity and innovations
in the group.
 Group is flexible and can adapt quickly to change.
 Open and direct communication.
 May increase the quality of life for some group
members.
Disadvantages
 Lack of coordination
 Lack of control
 Individuals may go their own ways resulting in
confusion.
 Motivation
 Motivation is derived from the word ‘Motive’. Motive
refers to the needs, wants, drives, impulses within
individuals.
 Motivation is the process of stimulating people to
action to accomplish desired goals.
 Motivation means the result of the interaction
between the individual and the situation.
 Motivation
 The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal – specifically, an organizational goal.
 Three key elements:
(1) Intensity – How hard a person tries

(2) Direction – Effort that is channeled toward, and

consistent with, organizational goals

(3) Persistence – How long a person can maintain effort
 Characteristics/Features of
Motivation
 Motivation is an internal feeling.

 Motivation produces goal-oriented behavior.

 Motivation can be either positive or negative.

 Motivation is a psychological phenomenon.

 Motivation is dynamic and situational.

 Motivation is influenced by social and cultural norms.

Motivation Theories
 Motivation Theories
Content/Need Theories Process Theories

 Maslow’s Need Theory  Vroom’s Expectancy Theory

 Herzberg’s Two Factor  Goal Setting Theory

Theory  Equity Theory
 Aldefer’s ERG Theory  Cognitive Evaluation Theory
 McClelland’s Need Theory

 McGregor Theory X and

Theory Y
Content/Need Theories of Motivation
Maslow’s Hierarchy Of Need Theory

There is a hierarchy of five needs—physiological,

safety, social, esteem, and self-actualization; as
each need is substantially satisfied, the next need
becomes dominant.
Maslow’s Hierarchy Of Need Theory
Lower-Order Needs Higher-Order Needs
Needs that are satisfied Needs that are satisfied
internally; social, esteem,
externally; physiological and self-actualization
and safety needs. needs.
Maslow’s Hierarchy Of Need Theory

Self-Actualization

Esteem

Social

Safety

Physiological
Maslow’s Hierarchy Of Need Theory
Assumptions:
Individuals cannot move to the next higher level until all

needs at the current (lower) level are satisfied

Must move in hierarchical order
Drawbacks:
Rigid hierarchy.

Based on intuitive logic.

No empirical substantiation.

Several studies but no support.

Frederick Herzberg Two-Factor Theory
(1) Motivational Factors:

Motivational factors are related to the nature of

work (Job Content) and are intrinsic to the job itself.
These factors have a positive influence in morale,
satisfaction, efficiency and higher productivity. Some
of motivational factors are achievement, recognition,
work itself, responsibility, advancement and possibility
of growth.
Frederick Herzberg Two-Factor Theory
(2) Hygiene/Maintenance Factors:
Hygiene factors do not motivate people. They
simply prevent dissatisfaction and maintain status
quo. They produce no growth but prevent loss. The
absence of these factors leads to job dissatisfaction.
The elimination of dissatisfaction does not mean
satisfaction and these factors simply maintain a “Zero
level of motivation”. Some of hygiene factors are
company policies and administration, relationship
with superior, work conditions, salary, relationship
with peer, personal life, status, job security, etc.
Frederick Herzberg Two-Factor Theory
Comparison of
Satisfiers and
Dissatisfiers
Frederick Herzberg Two-Factor Theory

Traditional View

Dissatisfaction Satisfaction

(Satisfaction and Dissatisfaction are Opposite ends of a

Single Continuum)
Frederick Herzberg Two-Factor Theory
Herzberg’s View
Hygienes

Dissatisfaction No Dissatisfaction

Motivators

No Satisfaction Satisfaction

(Satisfaction and Dissatisfaction are independent

Dimensions, Satisfaction is affected by Motivators and
Dissatisfaction by Hygienes)
Frederick Herzberg Two-Factor Theory
Contrasting Views of Satisfaction and Dissatisfaction
Frederick Herzberg Two-Factor Theory
Drawbacks
 Limited methodology: Credit to internal factors &
blame to external factors.
Low reliability
Part of job liked & part of the job unlinked at last
acceptable.
No empirical research for satisfaction & productivity.
Based on intuitive logic.
 Alderfer’s ERG Theory
A reworking of Maslow to fit empirical research.
 Three groups of core Needs: E

 Existence (Maslow: physiological and safety) R G

 Relatedness (Maslow: social and status)
 Growth (Maslow: esteem and self-actualization)
 Removed the hierarchical assumption

 More than one need can be operative at the same time.

 If a higher-level need cannot be fulfilled, the desire to satisfy

a lower-level need increases.
 Alderfer’s ERG Theory
 There are three groups of core needs: existence,
relatedness, and growth.

 Existence: Provision of basic material requirements.

 Relatedness: Desire for relationships.

 Growth: Desire for personal development.

 Alderfer’s ERG Theory

Drawbacks:
Popular, but not accurate theory

Based on intuitive logic.

Low empirical substantiation.

 McClelland’s Need Theory
 n Pow

 n Ach  n Aff
 McClelland’s Need Theory
(1) Need for Achievement:
The drive to excel, to achieve in relation to a set of
standards, to strive to succeed.(supported by extensive
research.)

(2) Need for Affiliation:

The desire for friendly and close personal relationships.

(3) Need for Power:

The need to make others behave in a way that they would
not have behaved otherwise.
 McClelland’s Need Theory
 People with a high need for achievement are likely to:
 Prefer to undertake activities with a 50/50 chance of
success, avoiding very low- or high-risk situations
 Be motivated in jobs that offer high degree of personal
responsibility, feedback, and moderate risk
 Not necessarily make good managers – too personal a
focus. Most good general managers do NOT have a high
nAch
 Need high level of nPow and low nAff for managerial
success
 McClelland’s Need Theory
Matching High Achievers and Jobs
A person with a high need for achievement has three
distinct Characteristics.
 McClelland’s Need Theory
Drawbacks:
Low practical applicability.

Needs are not easily traced.

Time consuming & expensive.

McGregor Theory X and Theory Y
 Douglas McGregor proposed two distinct views of
human beings: one basically negative, labeled Theory
X and the other basically positive, labeled Theory Y.

 After viewing the way in which managers dealt with

employees, McGregor concluded that a managers view
of the nature of human beings is based on a certain
groupings of assumptions and that he or she tends to
mold his or her behavior toward employees according
to these assumptions.
McGregor Theory X and Theory Y
Assumptions of Theory X:

Assumes that employees dislike work, lack

ambition, avoid responsibility, and must be
directed and coerced to perform.
McGregor Theory X and Theory Y
Assumptions of Theory Y:
Assumes that employees like work, seek
responsibility, are capable of making decisions,
and exercise self-direction and self-control when
committed to a goal.(Relates to high achievement
need , more valid.)
 McGregor Theory X and Theory Y
Theory X
 Autocratic leadership
 External control
 Closer supervision
 Employee dislike work
 Avoid responsibility
 Lack of ambition
 lack of creativity
 Satisfy with physiological
and Safety needs
Theory Y
 Democratic leadership
 Internal control
 General Supervision
 Employee like work
 Accept responsibility
 Proper motivation
 More creativity
 Satisfy with all five
needs
McGregor Theory X and Theory Y
Drawbacks:
Based on intuitive logic.

No empirical substantiation.

 Process Theories of Motivation
Vroom’s Expectancy Theory
 People will be motivated to do things to reach a goal
if they believe in the worth of that goal and if they can
see that what they do will help them in achieving it.
 Three Elements:

(1) Expectancy

(2) Instrumentality

(3) Valence
 Vroom’s Expectancy Theory
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of the outcome to the individual.
Expectancy of Instrumentality Valuation of the
performance of success in reward in
success getting reward employee’s eyes
 Vroom’s Expectancy Theory
Expectancy Theory Relationships
Effort–Performance Relationship:
 The probability that exerting a given amount of effort
will lead to performance.
Performance–Reward Relationship:
 The belief that performing at a particular level will lead
to the attainment of a desired outcome.
Rewards–Personal Goals Relationship:
 The degree to which organizational rewards satisfy an
individual’s goals or needs and the attractiveness of
potential rewards for the individual.
 Vroom’s Expectancy Theory
Drawbacks:
 Not empirical tested
 Difficult to apply
 Overly rational
 Predictive accuracy is doubtful
 Goal-Setting Theory
The theory that specific and difficult goals, with
feedback (self generated), lead to higher performance.
Elements of Goal-Setting Theory

(1) Goal Acceptance

(2) Goal Specificity

(3) Goal Challenge

(4) Performance Feedback

 Goal-Setting Theory
Relationship between goals and performance
depends on:
 Goal commitment (The more public the better!)
 Task characteristics (Simple, Well-learned ,Independent)
 Culture (Best match is in North America :low score on
power distance ,low in uncertainty avoidance ,high in
achievement.)
 Goal-Setting Theory
Implementation: Management by Objectives(MBO)
MBO is a systematic way to utilize goal-setting.
Goals must be:
 Tangible
 Verifiable
 Measurable
Corporate goals are broken down into smaller, more
specific goals at each level of organization.
Four common ingredients to MBO programs:
 Goal specificity
 Participative decision making
 Explicit time period
 Performance feedback
 Equity Theory
 Motivation is influenced by an individuals subjective
judgment about the fairness of the reward he or she
gets, relative to the inputs, compared with the rewards
of others.
 Individuals compare their job inputs and outcomes
with those of others and then respond to eliminate any
inequities.
 Equity Theory
When ratios are equal: state of equity exists – there is
no tension as the situation is considered fair.
When ratios are unequal: tension exists due to
unfairness
Under rewarded states cause anger
Over rewarded states cause guilt

Tension motivates people to act to bring their situation

into equity.
Equity Theory
 Equity Theory
(1) Underpayment Inequity: In this situation, the
person and the other do the same job but other gets
paid more and the person experiences dissonance.
Person's Outcomes Other's Outcomes

Person's Inputs Other's Inputs
(2) Equity: In this situation, both X and Y obtain the
same relative gain for their investments.
Person's Outcomes Other's Outcomes

Person's Inputs Other's Inputs
 Equity Theory
(3) Overpayment Inequity: The person gets more out
of the job relative to what he puts in compared to
another.
Person's Outcomes Other's Outcomes

Person's Inputs Other's Inputs
 Equity Theory
Choices for dealing with Inequity
(How to escape Inequity?)
 Change inputs (slack off)
 Change outcomes (increase output)
 Distort/change perceptions of self
 Distort/change perceptions of others
 Choose a different referent person
 Leave the field (quit the job)
 Equity Theory
Propositions relating to Inequitable pay
 Overrewarded hourly employees produce more
than equitably rewarded employees.
 Overrewarded piece-work employees produce
less, but do higher quality piece work.
 Underrewarded hourly employees produce lower
quality work.
 Underrewarded employees produce larger
quantities of lower-quality piece work than
equitably rewarded employees.
 Cognitive Evaluation Theory
 Providing an extrinsic reward for behavior that had
been previously only intrinsically rewarding tends to
decrease the overall level of motivation.
 Extensively researched
& large no of studies
have been supportive.
 Cognitive Evaluation Theory
Major Implications for work rewards
Intrinsic and extrinsic rewards are not independent.
Extrinsic rewards decrease intrinsic rewards. Loss of
control on his behavior.
Pay should be non contingent on performance.
Verbal rewards increase intrinsic motivation; tangible
rewards reduce it.
 Motivation Techniques
(1) Job Design/Re-design:
- Job Rotation
- Job Enlargement
- Job Enrichment
- Quality of Work life (QWL)
(2) Employee-Involvement Programs:
- Participative Management
- Representative Participation
- Quality Circle
(3) Compensation:
- Monetary Compensation
- Non-monetary Compensation
(4) Goal Setting
(5) Alternative work arrangements
 Job Enrichment
 Job Enrichment means to build into jobs a higher
sense of challenge and achievement.
 Job Enrichment is a motivational technique which
emphasizes the need for challenging and interesting
work.
 Job Enrichment
Advantages
 It makes the work interesting and challenging.
 It decreases the rate of absenteeism and labor
turnover.
 It helps in motivation through opportunities fro
growth and advancement.
 It makes easy task reinforcement and increases the
skills of workers.
 Workers get higher job satisfaction.
 The enterprise gains through improvement of output
both quantitatively and qualitatively and higher
satisfaction of the workers.
 Job Enrichment
Limitations
 Technology may not permit the enrichment of all
jobs. With specialized machinery, it may not be
possible to make jobs very meaningful.
 Job Enrichment has proved to be a costly process in
certain cases as the expenditure involved is higher
than the gains in productivity.

How to make Job Enrichment effective?

 Communication
 Communication is the transfer of information from a
sender to a receiver, with the information being
understood by the receiver.
 Communication is an exchange of ideas, facts,
opinions or emotions by two or more persons.
 Communication is the sum of total of all the things
that a person does, when he wants to create an
understanding in the mind of another.
 Communication is the process of passing information
and understanding from one person to another.
 Nature/Features of
Communication
 Pervasive function

 Two-way traffic

 Continuous process

 Sequential process

 Involves transfer of meaning and understanding

 Short lived process

 Process of Communication
Elements/Components/Ingredients of Communication
(1) Sender (Source)
(2) Encoding
(3) Message
(4) Channel
(5) Decoding
(6) Receiver
(7) Feedback
(8)Noise
 Barriers and Breakdown in
Communication
(A) Semantic Barriers:
(1) Wrong translations (Different language)
(2) Faulty expressed message
(3) Technical Language
(4) Unclear assumptions
(B) Emotional or Psychological Barriers:
(1) Loss during transmission and lack of retention
(2) Distrust of communicator
(3) Failure to communicate
(4) Reliance on the written word
(5) Premature evaluation
 Barriers and Breakdown in
Communication
(C) Physical Barriers:
(1) Noise
(2) Improper Time
(3) Distance
(D) Institutional/Organizational Barriers:
(1) Organizational Policy
(2) Organizational Rules and regulations
(3) Hierarchical relationships
(4) Organization Structure
(5) Facilities within Organization
 Barriers and Breakdown in
Communication
(E) Personal Barriers:
(1) Barriers in Superiors:
- Attitude of superiors
- Fear of challenge to authority
- lack of confidence in subordinates
- Ignoring Juniors
- Insistence on following the proper channel
(2) Barriers in Subordinates:
- Unwillingness to communicate
-Lack of proper incentive
(F) Cultural Barriers:
 Effective Communication
Guidelines for Effective/Improving
Communication
 Clarify the purpose of the message
 Two way communication
 Use intelligible encoding
 Consult others views
 Consider receivers needs
 Use appropriate tone and language
 Get feedback
 Consider receivers emotions and motivations
 Electronic Media in
Communication
 Telecommunication

 Teleconferencing:

Teleconference as a group of people interacting with

each other by means of audio and video media with
moving or still pictures.