Directing

Directing is the process of instructing, guiding, communicating and inspiring people in the organisation to achieve its objectives, and it is the function that initiates action. In this chapter you will learn its features: it is pervasive, continuous and flows from top to bottom. You will also study its importance in integrating employees' efforts, motivating them, facilitating change and bringing stability, and its principles, such as maximum individual contribution, harmony of objectives, unity of command, appropriateness of direction technique, managerial communication, use of informal organisation, leadership and follow through. The chapter then explains the four elements of directing. Supervision links management and workers. Motivation is studied through Maslow's need hierarchy (basic physiological, safety, affiliation, esteem and self-actualisation needs) along with financial incentives like bonus and stock options and non-financial incentives like status, job enrichment and employee empowerment. Leadership covers qualities of a good leader and the autocratic, democratic and laissez-faire styles. Communication covers its process, formal and informal channels including the grapevine, barriers to communication and ways to improve it.

Detailed Worksheet: Directing Section A - Definitions (10 marks) 1. Define directing. Why is it said to initiate action? (2 marks) 2. Explain the principle of harmony of objectives and the principle of follow through. (2 marks) 3. Define motivation. Distinguish between a motive and a motivator. (2 marks) 4. What is leadership? Name the three leadership styles based on the use of authority. (2 marks) 5. What is grapevine communication? State one advantage and one limitation. (2 marks) Section B - Calculations and Applications (15 marks) 6. A company shares 10% of its net profit of Rs 2 crore with its 400 employees equally as profit sharing. Calculate each employee's share. Another company offers its employees shares at Rs 80 when the market price is Rs 120 under an employee stock option plan. Calculate the benefit on 500 shares. Classify both incentives. (3 marks) 7. A salesperson earns a fixed salary of Rs 25,000 per month plus a commission of 2% on sales above Rs 5 lakh. In a month he sells goods worth Rs 9 lakh. Calculate his total earnings, and state which level of Maslow's hierarchy such financial incentives mainly satisfy. (3 marks) 8. Identify the level of need in Maslow's hierarchy satisfied in each case: (i) a canteen offering subsidised meals (ii) a permanent job with pension (iii) a team outing (iv) the "Employee of the Month" award (v) an opportunity to lead a new project of one's choice (vi) medical insurance. (3 marks) 9. Identify the barrier to communication in each case: (i) a manager uses technical jargon with new workers (ii) an employee distrusts his superior (iii) a rigid hierarchy delays messages (iv) a superior is too busy to listen (v) a message is badly translated from English to Hindi (vi) premature evaluation of a message. (3 marks) 10. A supervisor oversees 15 workers. In a month, absenteeism fell from 12% to 5% after he introduced a suggestion box and recognised good work. Calculate the reduction in average daily absentees, and identify the elements of directing and the incentives used. (3 marks) Section C - Diagrams (10 marks) 11. Draw Maslow's need hierarchy as a labelled pyramid with five levels and give one organisational example for each level. (4 marks) 12. Draw a labelled diagram of the communication process showing sender, message, encoding, media, decoding, receiver, feedback and noise. (3 marks) 13. Draw diagrams of the communication networks: single chain, wheel, circular, free flow and inverted V. (3 marks) Section D - Analysis and Higher-order Thinking (15 marks) 14. A manager in a software firm makes all decisions himself and expects subordinates to follow orders without question. Employee turnover is high. Identify the leadership style, analyse its suitability for a team of skilled professionals, and recommend a better style with reasons. (5 marks) 15. Explain five non-financial incentives with examples. Analyse why non-financial incentives become more important once employees' basic needs are satisfied, relating your answer to Maslow's theory. (5 marks) 16. In a factory, rumours about plant closure spread rapidly through informal channels, causing panic among workers. Evaluate the role of informal communication in this situation, and suggest how management can use the principle of use of informal organisation and formal communication to handle it. (5 marks) Instructions: Time allowed 2 hours. Attempt all sections. Quote relevant lines from cases while identifying concepts, and show calculations clearly.