Key Notes: Directing | Business Studies (BST) Class 12 - Commerce PDF Download

Directing

Directing function of management is concerned with instructing, guiding, inspiring and motivating the employees in the organisation so that their efforts result in achievement of organisational goal.
According to Ernest Dale, “Directing is telling people what to do and seeing that they do it to the best of their ability.”

Characteristics of Directing

(i) It initiates action.
(ii) Continuing function.
(iii) It takes place at every level.
(iv) It flow from top to bottom.
(v) It is performance oriented.
(vi) It is human element.

Importance of Directing

(i) To initiate action
(ii) To integrate employees efforts
(iii) Means of motivation
(iv) Balance in the organisation
(v) To facilitate change

Principles of Directing

(i) Maximum individual contribution
(ii) Harmony of objectives
(iii) Unity of command
(iv) Appropriate technique
(v) Managerial communication
(vi) Strategic use of informal organisation
(vii) Effective leadership (viii) Follow through

Elements of Staffing

There are four main elements of directing
(i) Supervision
(ii) Motivation
(iii) Leadership
(iv) Communication

Supervision 

The supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organisation.
(i) Role of Supervisor
(a) Role of mediator or linking pin
(b) Role of a guide

Motivation 

Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity. Motivation is a psychological term which means it can not be forced on employees.

Interrelated 

Teams of Motivation
(i) Motive
(ii) Motivation
(iii) Motivator

Characteristics of Motivation

(i) Motivation is a psychological phenomenon.
(ii) Motivation produces goal directed behaviour.
(iii) Motivators can be positive as well as negative.
(iv) Motivation is a complex process.
(v) Motivation is a dyanamic and continuous process.

Process of Motivation

(i) Unsatisfied need
(ii) Tension
(iii) Drive
(iv) Search behaviour
(v) Satisfaction need
(vi) Reduction of tension

Importance of Motivation

(i) Motivation helps change negative attitude to positive attitude.
(ii) Motivation improve performance level of employees.
(iii) Helps in achieving the organisational goal.
(iv) Motivation creates supportive work environment.
(v) Motivation help the managers to introduce changes.
(vi) Reduction in employees turnover.

Need Hierachy 

Theory or Maslow’s Need Hierarchy theory Need or the desire is a very important elements in motivation because the employees get motivated only for their needs.
Maslow has given a sequence or hierarchy of needs in the follows way
(i) Physiological needs
(ii) Safety and security needs
(iii) Social or belonging needs
(iv) Esteem needs
(v) Self-actualisation needs

Assumptions of Maslow’s Need Hierarchy Theory 

(i) Behaviour of people depends upon their need. Human behaviour can be changed or motivated by fulfilling their needs.
(ii) Generally the needs follow the hierarchy i.e., starting from physiological need.

Financial and Non-Financial Incentives 

Incentive means all measures which are used to motivate people to improve performance. These incentives may be broadly classified
(i) Financial Incentives The reward or incentive which can be calculated in terms of money is known as monetary incentive.
The common monetary incentives are
(a) Pay and allowances
(b) Profit sharing
(c) Co-Partnership/stock option
(d) Bonus
(e) Commission
(f) Suggestion system
(g) Productivity linked with wage incentives
(h) Retirement benefits
(i) Perks/Fringe benefits/perquisites
(ii) Non-Financial Incentives The incentives which can not be calculated in terms of money are known as non-financial incentives.
The common non-financial incentives are
(a) Status
(b) Organisational climate
(c) Career advancement
(d) Job enrichment
(e) Employees recognition
(f) Job security
(g) Employee’s participation
(h) Autonomy/Employee empowerment

Leadership 

It is a process of influencing the behaviour of people at work towards the achievement of specified goal.
(i) Features of Leadership
(a) It indicates the ability of an individual to influence others.
(b) It tries to bring change in behaviour.
(c) It shows interpersonal relationship between leader and followers.
(d) It is to achieve common goal.
(e) It is a continuous process.

Importance of Leadership

Qualities of a Good Leader

(i) Physical qualities
(ii) Knowledge, intelligence and scholarship
(iii) Integrity and honesty
(iv) Self confidence and sense of responsibility
(v) Initiative
(vi) Communication skill
(vii) Decisiveness
(viii) Social skill

Communication 

It can be defined as transmission or exchange of ideas, views message information or instruction between two or more persons by different means.

Importance of Communication

(i) Act as basis of co-ordination and co-operation
(ii) Act as basis for decision making
(iii) Increase managerial efficiency
(iv) Establish effective leadership
(v) Helps in process of motivation and morale development
(vi) Helps in smooth working of an enterprise
(vii) Promoter co-operation and peace

Form of Organisational Communication

(i) Formal Communication It refers to official communication taking place in the organisation.
According to direction of flow, formal communication can be divided into four types
(a) Downward communication
(b) Upward communication
(c) Horizontal communication
(d) Diagonal communication

Common Networks of formal communication are
(a) Wheel pattern
(b) Chain pattern
(c) Circle pattern
(d) Channel or free flow pattern
(e) Inverted ‘V’

(ii) Informal Communication Informal communication between different members of organisation who are not officially attached to each other is known as Informal communication.
Common networks of informal communication are
(a) Gossip
(b) Clusters
(c) Single strand
(d) probability

Methods of Communication

(i) Oral communication
(ii) Written communication