NCERT Textbook - Directing | Business Studies (BST) Class 12 - Commerce PDF Download

 Page 1


DIRECTING
CHAPTER
7
LEARNING OBJECTIVES
After studying  this chapter, you 
should be able to:
n Explain the concept of directing 
and its importance in business 
organisations;
n Understand the principles guiding 
directing process;
n Explain the meaning of supervision 
and its importance;
n Explain the meaning of motivation 
and its importance in business 
management;
n Understand and explain Maslow’s 
theory of hierarchy of needs and 
its application to motivation of 
employees in an organisation;
n Explain the financial and non-
financial incentives through which 
managers motivate their employees;
n Explain the concept of leadership 
and its importance in management;
n Describe the qualities of a good 
leader;
n Explain about formal and 
informal communications in the 
organisations; and
n Identify various barriers to effective 
communications and measures to 
overcome these barriers in the 
organisations.
Ford has always attracted and nurtured 
capable managers and technicians, but it 
has failed to do the same for change agents 
and leaders. So, as part of the automaker’s 
cultural overhaul, Ford is embarking on a 
sweeping attempt to mass-manufacture 
leaders. It wants to build an army of “warrior-
entrepreneurs” — people who have the 
courage and skills to topple old ideas, and 
who believe in change passionately enough 
to make it happen.
Ford Motor Company announced key 
changes to its senior management team as 
it continues to strengthen its automotive 
business, improve the company’s operational 
fitness, and accelerate a strategic shift to 
capitalize on emerging opportunities. In 
announcing the leadership changes, Ford 
President and CEO Jim Hackett said Form 
is “very fortunate to have an experienced 
and committed executive team in place to 
significantly strengthen their business while 
building towards their vision of becoming 
the world’s most trusted mobility company. 
Their objective is to lead business to new 
levels of operational fitness, product and 
brand excellence and profitability. 
Ford views grassroot leadership as the best 
vehicle for creating a successful business.
Grassroot Leadership - Ford Motor Co.
Source: http://media.ford.com/
content/fordmedia/fna/us/en/news/ 
2018/02/22/company-news.html
Ch_07.indd   169 08-08-2022   10:35:54
Rationalised 2023-24
Page 2


DIRECTING
CHAPTER
7
LEARNING OBJECTIVES
After studying  this chapter, you 
should be able to:
n Explain the concept of directing 
and its importance in business 
organisations;
n Understand the principles guiding 
directing process;
n Explain the meaning of supervision 
and its importance;
n Explain the meaning of motivation 
and its importance in business 
management;
n Understand and explain Maslow’s 
theory of hierarchy of needs and 
its application to motivation of 
employees in an organisation;
n Explain the financial and non-
financial incentives through which 
managers motivate their employees;
n Explain the concept of leadership 
and its importance in management;
n Describe the qualities of a good 
leader;
n Explain about formal and 
informal communications in the 
organisations; and
n Identify various barriers to effective 
communications and measures to 
overcome these barriers in the 
organisations.
Ford has always attracted and nurtured 
capable managers and technicians, but it 
has failed to do the same for change agents 
and leaders. So, as part of the automaker’s 
cultural overhaul, Ford is embarking on a 
sweeping attempt to mass-manufacture 
leaders. It wants to build an army of “warrior-
entrepreneurs” — people who have the 
courage and skills to topple old ideas, and 
who believe in change passionately enough 
to make it happen.
Ford Motor Company announced key 
changes to its senior management team as 
it continues to strengthen its automotive 
business, improve the company’s operational 
fitness, and accelerate a strategic shift to 
capitalize on emerging opportunities. In 
announcing the leadership changes, Ford 
President and CEO Jim Hackett said Form 
is “very fortunate to have an experienced 
and committed executive team in place to 
significantly strengthen their business while 
building towards their vision of becoming 
the world’s most trusted mobility company. 
Their objective is to lead business to new 
levels of operational fitness, product and 
brand excellence and profitability. 
Ford views grassroot leadership as the best 
vehicle for creating a successful business.
Grassroot Leadership - Ford Motor Co.
Source: http://media.ford.com/
content/fordmedia/fna/us/en/news/ 
2018/02/22/company-news.html
Ch_07.indd   169 08-08-2022   10:35:54
Rationalised 2023-24
170 Business Studies
IntroductIon The above case reveals how important 
it is to instill leadership qualities in 
all managers. Business organisations 
have always given due importance 
to its managers who are capable of 
leading others. A manager needs to 
use various ways to lead, motivate 
and inspire the subordinates and to 
communicate with them suitably. 
These ways, discussed in the present 
chapter, are collectively called the 
directing function of management.
MeanIng In the ordinary sense, directing 
means giving instructions and guiding 
people in doing work. In our daily life, 
we come across many situations like 
a hotel owner directing his employees 
to complete certain activities for 
organising a function, a teacher 
directing his student to complete an 
assignment, a film director directing 
the artists about how they should act 
in the film etc. In all these situations, 
we can observe that directing is done to 
achieve some predetermined objective.
In the context of management of 
an organisation, directing refers to 
the process of instructing, guiding, 
counselling, motivating and leading 
people in the organisation to achieve 
its objectives. 
You can observe here that directing 
is not a mere issue of communication 
but encompasses many elements like 
supervision, motivation and leadership. 
It is one of the key managerial functions 
performed by every manager. Directing 
is a managerial process which 
takes place throughout the life of an 
organisation.
The main characteristics of 
directing are discussed below:
 (i) Directing initiates action: Directing 
is a key managerial function. A 
manager has to perform this 
function along with planning, 
organising, staffing and controlling 
while discharging his duties in 
the organisation. While other 
functions prepare a setting for 
action, directing initiates action 
in the organisation.
 (ii) Directing takes place at every level 
of management: Every manager, 
from top executive to supervisor 
performs the function of directing. 
The directing takes place wherever 
superior – subordinate relations 
exist.
 (iii) Directing is a continuous process: 
Directing is a continuous activity. 
It takes place throughout the life 
of the organisation irrespective 
of people occupying managerial 
positions. We can observe that in 
organisations like Infosys, Tata, 
BHEL, HLL and the managers may 
change but the directing process 
continues because without direction 
the organisational activities can  
not continue further.
 (iv) Directing flows from top to bottom: 
Directing is first initiated at top 
level and flows to the bottom 
through organisational hierarchy. 
Ch_07.indd   170 08-08-2022   10:35:54
Rationalised 2023-24
Page 3


DIRECTING
CHAPTER
7
LEARNING OBJECTIVES
After studying  this chapter, you 
should be able to:
n Explain the concept of directing 
and its importance in business 
organisations;
n Understand the principles guiding 
directing process;
n Explain the meaning of supervision 
and its importance;
n Explain the meaning of motivation 
and its importance in business 
management;
n Understand and explain Maslow’s 
theory of hierarchy of needs and 
its application to motivation of 
employees in an organisation;
n Explain the financial and non-
financial incentives through which 
managers motivate their employees;
n Explain the concept of leadership 
and its importance in management;
n Describe the qualities of a good 
leader;
n Explain about formal and 
informal communications in the 
organisations; and
n Identify various barriers to effective 
communications and measures to 
overcome these barriers in the 
organisations.
Ford has always attracted and nurtured 
capable managers and technicians, but it 
has failed to do the same for change agents 
and leaders. So, as part of the automaker’s 
cultural overhaul, Ford is embarking on a 
sweeping attempt to mass-manufacture 
leaders. It wants to build an army of “warrior-
entrepreneurs” — people who have the 
courage and skills to topple old ideas, and 
who believe in change passionately enough 
to make it happen.
Ford Motor Company announced key 
changes to its senior management team as 
it continues to strengthen its automotive 
business, improve the company’s operational 
fitness, and accelerate a strategic shift to 
capitalize on emerging opportunities. In 
announcing the leadership changes, Ford 
President and CEO Jim Hackett said Form 
is “very fortunate to have an experienced 
and committed executive team in place to 
significantly strengthen their business while 
building towards their vision of becoming 
the world’s most trusted mobility company. 
Their objective is to lead business to new 
levels of operational fitness, product and 
brand excellence and profitability. 
Ford views grassroot leadership as the best 
vehicle for creating a successful business.
Grassroot Leadership - Ford Motor Co.
Source: http://media.ford.com/
content/fordmedia/fna/us/en/news/ 
2018/02/22/company-news.html
Ch_07.indd   169 08-08-2022   10:35:54
Rationalised 2023-24
170 Business Studies
IntroductIon The above case reveals how important 
it is to instill leadership qualities in 
all managers. Business organisations 
have always given due importance 
to its managers who are capable of 
leading others. A manager needs to 
use various ways to lead, motivate 
and inspire the subordinates and to 
communicate with them suitably. 
These ways, discussed in the present 
chapter, are collectively called the 
directing function of management.
MeanIng In the ordinary sense, directing 
means giving instructions and guiding 
people in doing work. In our daily life, 
we come across many situations like 
a hotel owner directing his employees 
to complete certain activities for 
organising a function, a teacher 
directing his student to complete an 
assignment, a film director directing 
the artists about how they should act 
in the film etc. In all these situations, 
we can observe that directing is done to 
achieve some predetermined objective.
In the context of management of 
an organisation, directing refers to 
the process of instructing, guiding, 
counselling, motivating and leading 
people in the organisation to achieve 
its objectives. 
You can observe here that directing 
is not a mere issue of communication 
but encompasses many elements like 
supervision, motivation and leadership. 
It is one of the key managerial functions 
performed by every manager. Directing 
is a managerial process which 
takes place throughout the life of an 
organisation.
The main characteristics of 
directing are discussed below:
 (i) Directing initiates action: Directing 
is a key managerial function. A 
manager has to perform this 
function along with planning, 
organising, staffing and controlling 
while discharging his duties in 
the organisation. While other 
functions prepare a setting for 
action, directing initiates action 
in the organisation.
 (ii) Directing takes place at every level 
of management: Every manager, 
from top executive to supervisor 
performs the function of directing. 
The directing takes place wherever 
superior – subordinate relations 
exist.
 (iii) Directing is a continuous process: 
Directing is a continuous activity. 
It takes place throughout the life 
of the organisation irrespective 
of people occupying managerial 
positions. We can observe that in 
organisations like Infosys, Tata, 
BHEL, HLL and the managers may 
change but the directing process 
continues because without direction 
the organisational activities can  
not continue further.
 (iv) Directing flows from top to bottom: 
Directing is first initiated at top 
level and flows to the bottom 
through organisational hierarchy. 
Ch_07.indd   170 08-08-2022   10:35:54
Rationalised 2023-24
Directing 171
It means that every manager can 
direct his immediate subordinate 
and take instructions from his 
immediate boss.
IMportance of d IrectIng The importance of directing can be 
understood by the fact that every 
action in the organisation is initiated 
through directing only. Directing 
guides towards achievement of 
common objectives. Through 
directing, managers not only tell the 
people in the organisation as to what 
they should do, when they should 
do and how they should do but 
also see that their instructions are 
implemented in proper perspective. 
Very often, this becomes an important 
factor in the efficient and effective 
functioning of the organisation. 
The points which emphasise the 
importance of directing are presented 
as follows:
 (i) Directing helps to initiate action by 
people in the organisation towards 
attainment of desired objectives. 
For example, if a supervisor guides 
his subordinates and clarifies 
their doubts in performing a task, 
it will help the worker to achieve 
work targets given to him.
 (ii) Directing integrates employees-
efforts in the organisation in such 
a way that every individual effort 
contributes to the organisational 
performance. Thus, it ensures 
that the individuals work for 
organisational goals. For example, 
a manager with good leadership 
abilities will be in a position to 
convince the employees working 
under him that individual efforts 
and team effort will lead to 
achievement of organisational 
goals.
 (iii) Directing guides employees to 
fully realise their potential and 
capabilities by motivating and 
providing effective leadership. A 
good leader can always identify 
the potential of his employees 
and motivate them to extract 
work up to their full potential.
 (iv) Directing facilitates introduction 
of needed changes in the organi-
sation. Generally, people have 
a tendency to resist changes 
in the organisation. Effective 
directing through motivation, 
communication and leadership 
helps to reduce such resistance 
and develop required cooperation 
in introducing changes in the 
organisation. For example, if 
a manager wants to introduce 
new system of accounting, 
there may be initial resistance 
from accounting staff. But, if 
manager explains the purpose, 
provides training and motivates 
with additional rewards, the 
employees may accept change 
and cooperate with manager.
 (v) Effective directing helps to 
bring stability and balance in 
the organisation since it fosters 
cooperation and commitment 
Ch_07.indd   171 08-08-2022   10:35:54
Rationalised 2023-24
Page 4


DIRECTING
CHAPTER
7
LEARNING OBJECTIVES
After studying  this chapter, you 
should be able to:
n Explain the concept of directing 
and its importance in business 
organisations;
n Understand the principles guiding 
directing process;
n Explain the meaning of supervision 
and its importance;
n Explain the meaning of motivation 
and its importance in business 
management;
n Understand and explain Maslow’s 
theory of hierarchy of needs and 
its application to motivation of 
employees in an organisation;
n Explain the financial and non-
financial incentives through which 
managers motivate their employees;
n Explain the concept of leadership 
and its importance in management;
n Describe the qualities of a good 
leader;
n Explain about formal and 
informal communications in the 
organisations; and
n Identify various barriers to effective 
communications and measures to 
overcome these barriers in the 
organisations.
Ford has always attracted and nurtured 
capable managers and technicians, but it 
has failed to do the same for change agents 
and leaders. So, as part of the automaker’s 
cultural overhaul, Ford is embarking on a 
sweeping attempt to mass-manufacture 
leaders. It wants to build an army of “warrior-
entrepreneurs” — people who have the 
courage and skills to topple old ideas, and 
who believe in change passionately enough 
to make it happen.
Ford Motor Company announced key 
changes to its senior management team as 
it continues to strengthen its automotive 
business, improve the company’s operational 
fitness, and accelerate a strategic shift to 
capitalize on emerging opportunities. In 
announcing the leadership changes, Ford 
President and CEO Jim Hackett said Form 
is “very fortunate to have an experienced 
and committed executive team in place to 
significantly strengthen their business while 
building towards their vision of becoming 
the world’s most trusted mobility company. 
Their objective is to lead business to new 
levels of operational fitness, product and 
brand excellence and profitability. 
Ford views grassroot leadership as the best 
vehicle for creating a successful business.
Grassroot Leadership - Ford Motor Co.
Source: http://media.ford.com/
content/fordmedia/fna/us/en/news/ 
2018/02/22/company-news.html
Ch_07.indd   169 08-08-2022   10:35:54
Rationalised 2023-24
170 Business Studies
IntroductIon The above case reveals how important 
it is to instill leadership qualities in 
all managers. Business organisations 
have always given due importance 
to its managers who are capable of 
leading others. A manager needs to 
use various ways to lead, motivate 
and inspire the subordinates and to 
communicate with them suitably. 
These ways, discussed in the present 
chapter, are collectively called the 
directing function of management.
MeanIng In the ordinary sense, directing 
means giving instructions and guiding 
people in doing work. In our daily life, 
we come across many situations like 
a hotel owner directing his employees 
to complete certain activities for 
organising a function, a teacher 
directing his student to complete an 
assignment, a film director directing 
the artists about how they should act 
in the film etc. In all these situations, 
we can observe that directing is done to 
achieve some predetermined objective.
In the context of management of 
an organisation, directing refers to 
the process of instructing, guiding, 
counselling, motivating and leading 
people in the organisation to achieve 
its objectives. 
You can observe here that directing 
is not a mere issue of communication 
but encompasses many elements like 
supervision, motivation and leadership. 
It is one of the key managerial functions 
performed by every manager. Directing 
is a managerial process which 
takes place throughout the life of an 
organisation.
The main characteristics of 
directing are discussed below:
 (i) Directing initiates action: Directing 
is a key managerial function. A 
manager has to perform this 
function along with planning, 
organising, staffing and controlling 
while discharging his duties in 
the organisation. While other 
functions prepare a setting for 
action, directing initiates action 
in the organisation.
 (ii) Directing takes place at every level 
of management: Every manager, 
from top executive to supervisor 
performs the function of directing. 
The directing takes place wherever 
superior – subordinate relations 
exist.
 (iii) Directing is a continuous process: 
Directing is a continuous activity. 
It takes place throughout the life 
of the organisation irrespective 
of people occupying managerial 
positions. We can observe that in 
organisations like Infosys, Tata, 
BHEL, HLL and the managers may 
change but the directing process 
continues because without direction 
the organisational activities can  
not continue further.
 (iv) Directing flows from top to bottom: 
Directing is first initiated at top 
level and flows to the bottom 
through organisational hierarchy. 
Ch_07.indd   170 08-08-2022   10:35:54
Rationalised 2023-24
Directing 171
It means that every manager can 
direct his immediate subordinate 
and take instructions from his 
immediate boss.
IMportance of d IrectIng The importance of directing can be 
understood by the fact that every 
action in the organisation is initiated 
through directing only. Directing 
guides towards achievement of 
common objectives. Through 
directing, managers not only tell the 
people in the organisation as to what 
they should do, when they should 
do and how they should do but 
also see that their instructions are 
implemented in proper perspective. 
Very often, this becomes an important 
factor in the efficient and effective 
functioning of the organisation. 
The points which emphasise the 
importance of directing are presented 
as follows:
 (i) Directing helps to initiate action by 
people in the organisation towards 
attainment of desired objectives. 
For example, if a supervisor guides 
his subordinates and clarifies 
their doubts in performing a task, 
it will help the worker to achieve 
work targets given to him.
 (ii) Directing integrates employees-
efforts in the organisation in such 
a way that every individual effort 
contributes to the organisational 
performance. Thus, it ensures 
that the individuals work for 
organisational goals. For example, 
a manager with good leadership 
abilities will be in a position to 
convince the employees working 
under him that individual efforts 
and team effort will lead to 
achievement of organisational 
goals.
 (iii) Directing guides employees to 
fully realise their potential and 
capabilities by motivating and 
providing effective leadership. A 
good leader can always identify 
the potential of his employees 
and motivate them to extract 
work up to their full potential.
 (iv) Directing facilitates introduction 
of needed changes in the organi-
sation. Generally, people have 
a tendency to resist changes 
in the organisation. Effective 
directing through motivation, 
communication and leadership 
helps to reduce such resistance 
and develop required cooperation 
in introducing changes in the 
organisation. For example, if 
a manager wants to introduce 
new system of accounting, 
there may be initial resistance 
from accounting staff. But, if 
manager explains the purpose, 
provides training and motivates 
with additional rewards, the 
employees may accept change 
and cooperate with manager.
 (v) Effective directing helps to 
bring stability and balance in 
the organisation since it fosters 
cooperation and commitment 
Ch_07.indd   171 08-08-2022   10:35:54
Rationalised 2023-24
172 Business Studies
among the people and helps to 
achieve balance among various 
groups, activities and the 
departments.
p rIncIples of d IrectIng Providing good and effective directing  
is a challenging task as it involves  
many complexities. A manager has 
to deal with people with diverse 
background, and expectations. This 
comp licates the directing process. 
Certain guiding principles of directing 
may help in directing process. These 
principles are briefly explained below:
 (i) Maximum individual contribution: 
This principle emphasises that 
directing techniques must help 
every individual in the organisation 
to contribute to his maximum 
potential for achievement of 
organisational objectives. It should 
bring out untappted energies of 
employees for the efficiency of 
organisation. For example, a good 
motivation plan with suitable 
monetary and non-monetary 
rewards can motivate an employee 
to contribute his maximum efforts 
for the organisation as he or she 
may feel that their efforts will bring 
them suitable rewards.
 (ii) Harmony of objectives: Very often,  
we find that individual objectives of 
employees and the organisational 
objectives as understood are 
conflicting to each other. For 
example, an employee may expect 
attractive salary and monetary 
benefits to fulfill his personal 
needs. The organisation may 
expect employees to improve 
productivity to achieve expected 
profits. But, good directing should 
provide harmony by convincing 
that employee rewards and work 
efficiency are complimentary to 
each other.
 (iii) Unity of Command: This principle 
insists that a person in the 
organisation should receive 
instructions from one superior 
only. If instructions are received 
from more than one, it creates 
confusion, conflict and disorder 
in the organisation. Adherence 
to this principle ensures effective 
direction.
 (iv) Appropriateness of direction tech­
nique: According to this principle, 
appropriate motivational and 
leadership technique should be 
used while directing the people 
based on subordinate needs, 
capabilities, attitudes and other 
situational variables. For example, 
for some people money can act as 
powerful motivator while for others 
promotion may act as effective 
motivator.
 (v) Managerial communication: Effe-
ctive managerial communication 
across all the levels in the 
organisation makes direction 
effective. Directing should convey 
clear instructions to create total 
understanding to subordinates. 
Through proper feedback, the 
Ch_07.indd   172 08-08-2022   10:35:54
Rationalised 2023-24
Page 5


DIRECTING
CHAPTER
7
LEARNING OBJECTIVES
After studying  this chapter, you 
should be able to:
n Explain the concept of directing 
and its importance in business 
organisations;
n Understand the principles guiding 
directing process;
n Explain the meaning of supervision 
and its importance;
n Explain the meaning of motivation 
and its importance in business 
management;
n Understand and explain Maslow’s 
theory of hierarchy of needs and 
its application to motivation of 
employees in an organisation;
n Explain the financial and non-
financial incentives through which 
managers motivate their employees;
n Explain the concept of leadership 
and its importance in management;
n Describe the qualities of a good 
leader;
n Explain about formal and 
informal communications in the 
organisations; and
n Identify various barriers to effective 
communications and measures to 
overcome these barriers in the 
organisations.
Ford has always attracted and nurtured 
capable managers and technicians, but it 
has failed to do the same for change agents 
and leaders. So, as part of the automaker’s 
cultural overhaul, Ford is embarking on a 
sweeping attempt to mass-manufacture 
leaders. It wants to build an army of “warrior-
entrepreneurs” — people who have the 
courage and skills to topple old ideas, and 
who believe in change passionately enough 
to make it happen.
Ford Motor Company announced key 
changes to its senior management team as 
it continues to strengthen its automotive 
business, improve the company’s operational 
fitness, and accelerate a strategic shift to 
capitalize on emerging opportunities. In 
announcing the leadership changes, Ford 
President and CEO Jim Hackett said Form 
is “very fortunate to have an experienced 
and committed executive team in place to 
significantly strengthen their business while 
building towards their vision of becoming 
the world’s most trusted mobility company. 
Their objective is to lead business to new 
levels of operational fitness, product and 
brand excellence and profitability. 
Ford views grassroot leadership as the best 
vehicle for creating a successful business.
Grassroot Leadership - Ford Motor Co.
Source: http://media.ford.com/
content/fordmedia/fna/us/en/news/ 
2018/02/22/company-news.html
Ch_07.indd   169 08-08-2022   10:35:54
Rationalised 2023-24
170 Business Studies
IntroductIon The above case reveals how important 
it is to instill leadership qualities in 
all managers. Business organisations 
have always given due importance 
to its managers who are capable of 
leading others. A manager needs to 
use various ways to lead, motivate 
and inspire the subordinates and to 
communicate with them suitably. 
These ways, discussed in the present 
chapter, are collectively called the 
directing function of management.
MeanIng In the ordinary sense, directing 
means giving instructions and guiding 
people in doing work. In our daily life, 
we come across many situations like 
a hotel owner directing his employees 
to complete certain activities for 
organising a function, a teacher 
directing his student to complete an 
assignment, a film director directing 
the artists about how they should act 
in the film etc. In all these situations, 
we can observe that directing is done to 
achieve some predetermined objective.
In the context of management of 
an organisation, directing refers to 
the process of instructing, guiding, 
counselling, motivating and leading 
people in the organisation to achieve 
its objectives. 
You can observe here that directing 
is not a mere issue of communication 
but encompasses many elements like 
supervision, motivation and leadership. 
It is one of the key managerial functions 
performed by every manager. Directing 
is a managerial process which 
takes place throughout the life of an 
organisation.
The main characteristics of 
directing are discussed below:
 (i) Directing initiates action: Directing 
is a key managerial function. A 
manager has to perform this 
function along with planning, 
organising, staffing and controlling 
while discharging his duties in 
the organisation. While other 
functions prepare a setting for 
action, directing initiates action 
in the organisation.
 (ii) Directing takes place at every level 
of management: Every manager, 
from top executive to supervisor 
performs the function of directing. 
The directing takes place wherever 
superior – subordinate relations 
exist.
 (iii) Directing is a continuous process: 
Directing is a continuous activity. 
It takes place throughout the life 
of the organisation irrespective 
of people occupying managerial 
positions. We can observe that in 
organisations like Infosys, Tata, 
BHEL, HLL and the managers may 
change but the directing process 
continues because without direction 
the organisational activities can  
not continue further.
 (iv) Directing flows from top to bottom: 
Directing is first initiated at top 
level and flows to the bottom 
through organisational hierarchy. 
Ch_07.indd   170 08-08-2022   10:35:54
Rationalised 2023-24
Directing 171
It means that every manager can 
direct his immediate subordinate 
and take instructions from his 
immediate boss.
IMportance of d IrectIng The importance of directing can be 
understood by the fact that every 
action in the organisation is initiated 
through directing only. Directing 
guides towards achievement of 
common objectives. Through 
directing, managers not only tell the 
people in the organisation as to what 
they should do, when they should 
do and how they should do but 
also see that their instructions are 
implemented in proper perspective. 
Very often, this becomes an important 
factor in the efficient and effective 
functioning of the organisation. 
The points which emphasise the 
importance of directing are presented 
as follows:
 (i) Directing helps to initiate action by 
people in the organisation towards 
attainment of desired objectives. 
For example, if a supervisor guides 
his subordinates and clarifies 
their doubts in performing a task, 
it will help the worker to achieve 
work targets given to him.
 (ii) Directing integrates employees-
efforts in the organisation in such 
a way that every individual effort 
contributes to the organisational 
performance. Thus, it ensures 
that the individuals work for 
organisational goals. For example, 
a manager with good leadership 
abilities will be in a position to 
convince the employees working 
under him that individual efforts 
and team effort will lead to 
achievement of organisational 
goals.
 (iii) Directing guides employees to 
fully realise their potential and 
capabilities by motivating and 
providing effective leadership. A 
good leader can always identify 
the potential of his employees 
and motivate them to extract 
work up to their full potential.
 (iv) Directing facilitates introduction 
of needed changes in the organi-
sation. Generally, people have 
a tendency to resist changes 
in the organisation. Effective 
directing through motivation, 
communication and leadership 
helps to reduce such resistance 
and develop required cooperation 
in introducing changes in the 
organisation. For example, if 
a manager wants to introduce 
new system of accounting, 
there may be initial resistance 
from accounting staff. But, if 
manager explains the purpose, 
provides training and motivates 
with additional rewards, the 
employees may accept change 
and cooperate with manager.
 (v) Effective directing helps to 
bring stability and balance in 
the organisation since it fosters 
cooperation and commitment 
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172 Business Studies
among the people and helps to 
achieve balance among various 
groups, activities and the 
departments.
p rIncIples of d IrectIng Providing good and effective directing  
is a challenging task as it involves  
many complexities. A manager has 
to deal with people with diverse 
background, and expectations. This 
comp licates the directing process. 
Certain guiding principles of directing 
may help in directing process. These 
principles are briefly explained below:
 (i) Maximum individual contribution: 
This principle emphasises that 
directing techniques must help 
every individual in the organisation 
to contribute to his maximum 
potential for achievement of 
organisational objectives. It should 
bring out untappted energies of 
employees for the efficiency of 
organisation. For example, a good 
motivation plan with suitable 
monetary and non-monetary 
rewards can motivate an employee 
to contribute his maximum efforts 
for the organisation as he or she 
may feel that their efforts will bring 
them suitable rewards.
 (ii) Harmony of objectives: Very often,  
we find that individual objectives of 
employees and the organisational 
objectives as understood are 
conflicting to each other. For 
example, an employee may expect 
attractive salary and monetary 
benefits to fulfill his personal 
needs. The organisation may 
expect employees to improve 
productivity to achieve expected 
profits. But, good directing should 
provide harmony by convincing 
that employee rewards and work 
efficiency are complimentary to 
each other.
 (iii) Unity of Command: This principle 
insists that a person in the 
organisation should receive 
instructions from one superior 
only. If instructions are received 
from more than one, it creates 
confusion, conflict and disorder 
in the organisation. Adherence 
to this principle ensures effective 
direction.
 (iv) Appropriateness of direction tech­
nique: According to this principle, 
appropriate motivational and 
leadership technique should be 
used while directing the people 
based on subordinate needs, 
capabilities, attitudes and other 
situational variables. For example, 
for some people money can act as 
powerful motivator while for others 
promotion may act as effective 
motivator.
 (v) Managerial communication: Effe-
ctive managerial communication 
across all the levels in the 
organisation makes direction 
effective. Directing should convey 
clear instructions to create total 
understanding to subordinates. 
Through proper feedback, the 
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Directing 173
managers should ensure that 
subordinate understands his 
instructions clearly.
 (vi) Use of informal organisation: A 
manager should realise that 
informal groups or organisations 
exist within every formal 
organisation. He should spot and 
make use of such organisations 
for effective directing.
 (vii) Leadership: While directing the 
subordinates, managers should 
exercise good leadership as it 
can influence the subordinates 
positively without causing 
dissatisfaction among them.
 (viii)Follow through: Mere giving of  
an order is not sufficient. 
Managers should follow it up by 
reviewing continuously whether 
orders are being implemented 
accordingly or any problems are 
being encountered. If necessary, 
suitable modifications should be 
made in the directions.
e leMents of d IrectIon The process of directing involves 
guiding, coaching, instructing, 
motivating, leading the people in an 
organisation to achieve organisational 
objectives. Consider the following 
examples: (i) A supervisor explains 
a worker about operations to be 
carried by him on a lathe machine, 
(ii) A mining engineer explains about 
safety precautions to be followed 
while working in a coal mine, (iii) A 
Managing Director declares share in 
the profits to the managers for their 
contribution to inhance profits of the 
company, and (iv) A manager inspires 
his/her employees by playing a lead 
role in performing a work.
All these examples and many 
other activities related to directing 
may broadly be grouped into four 
categories which are the elements of 
directing. These are:
 (i) Supervision
 (ii) Motivation
 (iii) Leadership
 (iv) Communication
To know more about directing, these 
elements are discussed in detail.
s upervIsIon The term supervision can be 
understood in two ways. Firstly, it 
can be understood as an element of 
directing and secondly, as a function 
performed by supervisors in the 
organisational hierarchy. 
Supervision being an element of  
directing, every man ager in the 
organisation supervises his/her 
subordinates. In this sense, supervision 
can be understood as the process of 
guiding the efforts of employees and  
other resources to accomplish the desired 
objectives. It means overseeing what  
is being done by subordinates and  
giving instructions to ensure optimum 
utilisation of resources and achievement 
of work targets.
Secondly, supervision can be 
understood as the function to be 
performed by supervisor, a managerial 
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