Group 2

Aizell Bernal

Christian Jayson Cruz

Julia Paula Sunga

Juan Paulo Sunga

Mrs. Elizabeth Aragon

OUTLINE

I. Directing Definition of directing

II. Importance of DirectingIII. Characteristics of Directing

Pervasive Function Continuous Activity Human Factor Creative Activity Executive Function Delegate Function

IV. Elements of Direction Communication Supervision Motivation Leadership

V. Maslow’s Theory of Motivation - Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological

VI. Power and Influence in Organization Classification of Power

1. Legitimate Power2. Expert Power3. Referent Power4. Reward Power5. Punishment Power6. Relationship Power

VII. Directing and LeadershipVIII.Case Study

Directing

Directing is the process through which a manager communicates with and influences other members of the organization in the pursuit of company objectives.

Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals.

The managerial function of directing is like the activities of a teacher in a classroom. In order to teach, a teacher has to guide his students, maintain discipline, inspire them and lead them to the desired goal. It is a very important function in the management of any enterprise. It helps the managers in ensuring quality performance of jobs by the employees and achievement of organizational goals.

Importance of Directing Plans remain mere plans unless they are put into action. In the absence of

direction, subordinates will have no idea as to what to do. They will probably not be inspired to complete the job satisfactorily. Implementation of plans is, thus, largely the concern of directing function. As a function of management, directing is useful in many ways.

It guides and helps the subordinates to complete the given task properly and as per schedule.

It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do the best.

It helps in maintaining discipline and rewarding those who do well. Directing involves supervision, which is essential to make sure that work is

performed according to the orders and instructions. Different people perform different activities in the organization. All the

activities are interrelated. In order to co-ordinate the activities carried out in different parts and to ensure that they are performed well, directing is important. It thus, helps to integrate the various activities and so also the individual goals with organizational goals.

Directing involves leadership that essentially helps in creating appropriate work environment and build up team spirit.

Characteristics of Directing 1. Pervasive Function - Directing is required at all levels of organization.

Every manager provides guidance and inspiration to his subordinates.2. Continuous Activity - Direction is a continuous activity as it continuous

throughout the life of organization.3. Human Factor - Directing function is related to subordinates and

therefore it is related to human factor. Since human factor is complex and behavior is unpredictable, direction function becomes important.

4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless.

5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise; a subordinate receives instructions from his superior only.

6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behavior is unpredictable by nature and conditioning the people’s behavior towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behavior.

Elements of Direction 1. Communication2. Supervision 3. Motivation4. Leadership

These are the four essential elements of directing. We shall discuss about the nature and significance of each of these components.

Communication Communication is a basic organizational function, which refers to

the process by which a person (known as sender) transmits information or messages to another person (known as receiver). The purpose of communication in organizations is to convey orders, instructions, or information so as to bring desired changes in the performance and or the attitude of employees. In an organization, supervisors transmit information to subordinates. Proper communication results in clarity and securing the cooperation of subordinates. Faulty communication may create problems

due to misunderstanding between the superior and subordinates. The subordinates must correctly understand the message conveyed to them.Thus, in communication:

o There are two parties, one is known as the sender and the other is

known as receiver.o There is a message sent by the sender to the receiver.

o The receiver receives the message and understands it.

Communication does not always flow from supervisor to subordinate. It can also be from a subordinate to a supervisor. For example, subordinates can pass information to the supervisor about the faults/problems at the assembly line. Thus, it is a two way process.

Importance of CommunicationCommunication in organizations is so important that it is said to be

the lifeblood of the organization. Success of direction largely depends on how effectively the manager can communicate with his subordinates. Proper communication in organizations at all levels and between all levels can improve both the quantity and quality of output. Some of the benefits of communication are as follows:

Communication helps employees to understand their role clearly and perform effectively.

It helps in achieving co-ordination and mutual understanding which in turn, leads to industrial harmony and increased productivity.

Communication improves managerial efficiency and ensures cooperation of the staff.

Effective communication helps in molding attitudes and building up employees’ morale.

Communication is the means through which delegation and decentralization of authority is successfully accomplished in an organization.

Types of Communication

In an organization communication can be made from supervisor to subordinate, from subordinate to supervisor and also between two supervisors at the same level. Communication can be done orally or in writing or even through gestures. Communication may be made through formal or informal channels. Thus, the various types of communicationare as follows:

On the basis of channel used

On the basis of direction

On the basis of mode used

1. Formal 1. Upward 1. Verbala. Oralb. Written

2. Informal 2. Downward 2. Non-verbala. Gestural

3. Horizontal

4. Diagonal

Formal and Informal CommunicationThe path through which information flows is called channel of

communication. In every organization we have both formal and informal channels. The paths of communication which are based on relationship establish formally by management are the formal channels. For example, the General Manager communicates a decision to the production manager who may then issue orders or instructions to the foremen. It may also be like a worker applying to his supervisor for a loan from the GPF account. He/she forwards it to the Manager Accounts who finally sends it to the General Manager (Finance) for approval.

Communication, which takes place on the basis of informal or social relations among staff, is called informal communication. For example, any sharing of information between a production supervisor and an accountant, as the y happen to be friends or so. Mostly informal channels are used due to friendly interaction of members of an organization. In fact, it may be purely personal or related to organizational matters.

Upward, Downward, Horizontal and Diagonal CommunicationOn the basis of the flow or direction of communication in

organizations, it can be classified as upward, downward, horizontal or

diagonal. When employees make any request, appeal, report, suggest or communicate ideas to the superior, the flow of communication is upward (from bottom to top). For instance, when a typist drops a suggestion in the suggestion box, or a foreman reports breakdown of machinery to the factory manager, the flow of communication is upward. Upward communication encourages employees to participate actively in the operations of their department. They get encouraged and their sense of responsibility increases when they are heard by their supervisors about problems affecting the jobs.

When communication is made from superiors down the hierarchy it is called a downward communication. For instance, when superiors issue orders and instructions to subordinates, it is known as downward communication. When the General Manager orders supervisors to work overtime, the flow of communication is downward (from top to bottom).Similarly, communication of work assignments, notices, requests for performance, etc. through bulletin boards, memos, reports, speeches, meetings, etc, are all forms of downward communication.

Communication can also be amongst members at the same level in the organization. For instance, production manager may communicate the production plan to the sales manager. This is known as horizontal flow of communication. Here, the communication is among people of the same rank and status. Such communication facilitates coordination of activitiesthat is interdependent.

When communication is made between people who are neither in the same department nor at the same level of organizational hierarchy, it is called diagonal communication. For example, cost accountant may request for reports from sales representatives not the sales manager for the purpose of distribution cost analysis. This type of communication does take place under special circumstances.

Verbal and Non-verbal CommunicationOn the basis of the mode used, communication may be verbal or

non-verbal. While communicating, managers may talk to their subordinates either face to face or on telephone or they may send letters, issue notices, or memos. These are all verbal communication. Thus, the verbal modes of communication may be oral and written. Face to face communication, as in interviews, meetings and seminars, are examples of oral communication. Issuing orders and instructions on telephone or

through an intercommunication system is also oral communication. The written modes of communication include letters, circulars, notices and memos. Sometimes verbal communication is supported by non-verbal communication such as facial expressions and body gestures. For example, wave of hand, a smile or a frown etc. This is also termed as the gestural communication.

Supervision After the employees have been instructed regarding what they have

to do and how to do, it is the duty of the manager to see that they perform the work as per instructions. This is known as supervision. Managers play the role of supervisors and ensure that the work is done as per the instructions and the plans. Supervisors clarify all instructions and guide employees to work as a team in co-operation with others. Supervisors solve most of the routine job-related problems of subordinates. Supervisor, thus, performs the following functions:

Clarifies orders and instructions issued to subordinates and ensures that they have understood and follow these fully.

Ensures that subordinates have the required facilities to perform their jobs.

Keeps a watch and guides the activities of subordinates in performing their jobs.

Broadens the horizon of his subordinates by making them aware of the wider aspects of their day-to-day work.

Coordinates the work of different subordinates under him. Detects errors and omissions and ensures their rectification.

Though supervision is required at all levels of management, it is of great importance at the operational level, at the level of first line supervisor. Managers at this level devote maximum time in supervising the work of subordinates. Though the top or middle level managers also supervise the work of their subordinate managers, but it is the first line supervisors who are in direct and constant touch with operatives, workers in the factory and clerical staff in the office. Thus, they are directly responsible for getting the work done through most of the employees in an organization.

Importance of Supervision

From what has been said about supervision, it must be clear to you that supervision is of great significance in getting the work done as per plans and as scheduled. On the basis of the influence on the work at operational level and human approach to the problems of workers, the supervision can ensure workers cooperation and support in achieving organizational objectives.

Supervisors are the key people among managers at different levels. They are the link between the top and middle management and the workers. Take, for example, the foreman of the factory or the office superintendent in the office. Both of them are members of the management team, and are in direct contact with operatives in the workshop and clerical staff in the office. They are the mouthpiece of management for communicating its ideas, plans and policies to the workers and employees. At the same time, they have to play the role of principal spokesmen of their subordinates to communicate their feelings and grievances to the management. Thus, it is only the supervisor who, as a member of the management team, is capable of developing links to workers. Supervisors are expected to maintain the best and friendly relations with their seniors as well as with the workers and enjoy the trust and confidence of both management and operatives.

Motivation Motivation is one of the important elements of directing. Issuance of

proper instructions or orders does not necessarily ensure that they will be properly carried out. It requires manager to inspire or induce the employees to act and get the expected result. This is called motivation. It is forces that inspire a person at work to intensify his willingness to use the best of his capability for achievement of specify objectives. It may be in the form of incentives like financial (such as bonus, commission etc.) or, non-financial (such as appreciation, growth etc.), or it could be positive or negative. Basically, motivation is directed towards goals and prompt people to act.

Importance of MotivationWhile performing a job two things are required. The ability to work

and the willingness to work. Without willingness to work, ability to work cannot produce results. The importance of motivation lies in converting this ability to work into willingness to work. Performance depends on ability as well as willingness; and willingness depends on motivation.

Thus, motivation is a key element in directing people to do the job. Some of the other benefits or importance of motivation are:

With proper motivation there can be maximum utilization of the factors of production like men, money, material etc.;

If employees are motivated it will reduce employee turnover and absenteeism.

Motivation fosters a sense of belongingness among the employees towards the organization and also improves their morale.

Motivation helps in reducing the number of complaints and grievances. The wastage and accident rate also come down.

With proper motivational techniques management can attract competent and best quality employees.

Leadership While motivation is the process through which employees are made

to contribute voluntarily to work, leadership is the ability to persuade and motivate others to work in a desired way for achieving the goal. Thus, a person who is able to influence others and make them follow his instructions is called a leader. For example, in an organization the management decides to install some new machines to which the workers are resisting. However, one of the workers takes the initiative, explains the fellow workers the benefits of working with the new machines and moulds them to accept the management’s decision. Now he is said to be leader as he is able to influence a group of workers who followed him. In practice, the managers have to guide and lead their subordinates towards the achievement of goals, and so, to be an effective, a manager has to be a good leader.

Leadership is the process, which influences the people and inspires them to willingly accomplish the organizational objectives. The main purpose of managerial leadership is to get willing cooperation of the workgroup in pursuit of the goals.

Importance of LeadershipThe objectives of any organization can only be fulfilled if its

employees are working towards accomplishment of such objectives. To make people work in the desired manner, proper instructions and guidance are necessary. And this direction process becomes effective when the persons who give such direction have leadership qualities.

Leadership is essential in functioning of any organization and its importance and benefits are varied. Some of these importances are:

Leadership improves the performance of the employees. Leaders can motivate the followers to work and thereby increase their performance level.

With continuous support and guidance, leaders are able to build confidence among the followers, thereby increasing speed and accuracy and decreasing wastage.

With friendly and cooperative efforts the leader is able to build employees’ morale which in turn contributes to higher productivity.

Maslow’s Theory of Motivation – Hierarchy of Needs

The basis of Maslow's motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs "deficiency needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.

As a result, for adequate workplace motivation, it is important that leadership understands the needs active for individual employee motivation. In this manner, Maslow's model indicates that fundamental, lower-order needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in the following hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or

'Maslow's Needs Triangle', after a need is satisfied, it stops acting as a motivator and the next need one rank higher starts to motivate as it attain psychological precedence.

Self-Actualization Self-actualization is the summit of Maslow's motivation theory. It is

about the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have motivators such as:

Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Esteem Needs After a person feels that they "belong", the urge to attain a degree

of importance emerges. Esteem needs can be categorized as external motivators and internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect.  External esteem needs are those such as reputation and recognition. Some examples of esteem needs are:

Recognition (external motivator)  Attention (external motivator)  Social Status (external motivator)  Accomplishment (internal motivator)  Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs: the need for aesthetics and knowledge.

Social Needs Once a person has met the lower level physiological and safety

needs, higher level motivators awaken. The first level of higher level needs is social needs. Social needs are those related to interaction with others and may include:

Friendship Belonging to a group Giving and receiving love

Safety Needs Once physiological needs are met, one's attention turns to safety

and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:

Living in a safe area Medical insurance Job security Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

Physiological Needs Physiological needs are those required to sustain life, such as:

Air Water Food Sleep

According to this theory, if these fundamental needs are not satisfied, then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

Applying Maslow's Needs Hierarchy - Business Management ImplicationsIf Maslow's theory is true, there are some very important leadership

implications to enhance workplace motivation, and you don't need a masters in applied psychology, for it to be evident. There are employee motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.

Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials.

Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.

Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.

Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.

Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.

Remember, everyone is not motivated by same needs.  At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee's needs currently being pursued. In order to motivate their employees, leadership must be understand the current level of needs at which the employee finds themselves, and leverage needs for workplace motivation.

Power and Influence in Organization The success of a manager in influencing others in the organization is not

determined solely by his skill in communicating, in the technical sense. It is also much affected by the amount of power he has in the organization. Power has been defined as the potential to influence the actions of another person in the direction desired by the influencer. The capacity to influence, or power, that a person in the organization has is determined by many factors, the formal authority of his position being only one of these. Below is a classification of power on the basis of its source:

1. Legitimate Power – This power comes by virtue of a person’s occupying a position in an organization. As an example, the school teacher is generally expected to decide what subject matter should be discussed, in what order, using what teaching method.

2. Expert Power – This is capacity to influence which arises from expert knowledge that the influencer has. As an example, we generally do what a doctor tells us to do when we are suffering an ailment, even though the doctor is not our superior in the organization.

3. Referent Power – This is power that comes by virtue of some personal characteristic (“Charisma”) of the person which others identify with. Before the February revolution, Cory Aquino could move hundreds of thousands Filipinos to boycott certain business establishments even though she occupied to position in government at that time.

4. Reward Power – This is power that comes by virtue of a person’s ability to give or withhold resources which are valued by others. Thus, many politicians in our country have power which results from their ability to dispense patronage.

5. Punishment Power – Closely related to Reward Power, this is power which comes from the capacity to deprive a person of something of value. Thus, a robber with a gun over our head has power over us.

6. Relationship Power – This is power which comes from a system of informal personal obligations which has been built up between people. In the Philippines, Utang na Loob and long standing family alliances (especially in the rural areas) are ready examples of this source of influence.

It will be noted that the three of the above sources of power normally attach to managerial position in most organizations. Thus, a person occupying a supervisory position has legitimate power, reward power (ex. Recommendations for bonuses, promotions, citation, etc.), and punishment power (reprimand, transfer, demotion, etc.), over his subordinates. The other three sources of power described above, on the other hand, attach not to the position, but to the person himself. Thus, the potential for influence of a manager in an organization is determined both by his position and his personal characteristics.

It is important to understand the non-position based sources of influence in organizations for several reasons. One is that the continuous exercise of position based power, especially punishment power, to influence others can generate resistance over time. People do not generally enjoy being ordered to do things all the time. Secondly, subordinate actions based on commitment rather than mere compliance is often necessary, especially if the manager expects the subordinate to exercise initiative and imagination in implementing his directives. Thirdly, managers are dependent in varying degrees on other persons in the organization over whom they exercise no positional power. For example, the sales manager may need the cooperation of the production manager to make special accommodations to a client whom he values. In such cases, influence can still be exercised by a manager based on non-positional power. Thus, the cultivation of the various sources of power increases a manager’s repertoire of influence modes and increases his flexibility in exercising his directing function.

Directing and Leadership The discussion of position and non-position based influence in an

organization opens the way to a discussion of manager’s leadership function and style. Clearly, the term leadership connotes more than just the ability to influence others through compulsion. Because of the great difference that a manager’s leadership style can make in terms of the performance of his subordinates.

Case Study

METRO MANILA UNIVERSITY

On April 2, 1990, Mr. Rene Roces, Vice President for Finance of Metro Manila University (MMU), was reading the Balance Sheet of March 1990. This was the first time that quarterly financial statements were prepared for MMU- a handiwork of Mr. Aragon, recently appointed Vice President for Administration. While reviewing the financial statements, however, Mr. Roces noticed that the cash balance was about 50 million so he immediately called Mr. Aragon to a meeting. “Why should the University hold such a large amount of cash? Shouldn’t we invest more in Treasury bills that yield at least 5% more than savings accounts, Mr. Roces asked. Mr. Aragon was surprised by this question and being relatively new on the job, requested some time to study the matter.

MR. ARAGONRoy Aragon, 32 years old, was a graduate of MMU. He had been teaching

in the College of Engineering for ten years until he was appointed VP for Administration upon the retirement of the previous incumbent in December, 1989. Being somewhat young to be Vice President at MMU, he took his new duties seriously. Among the innovations he had pushed for was the preparation of quarterly financial statements of MMU. Previously, the financial statements of the university were prepared only at the end of the year.

MEETING WITH CHIEF ACCOUNTANT AND CASHIERMr. Aragon decided to hold a meeting with the Chief Accountant and the

Cashier concerning the cash problem. The two officers were older than Mr. Aragon and had served MMU longer. During his first months on the job, Mr. Aragon was impressed by his two subordinates whom he found to be independent minded, professional, and very knowledgeable about the financial affairs of MMU.

During the meeting, the Cashier explained that funds were kept in savings accounts and not in higher yielding securities like Treasury Bills because the latter felt that he needed to keep cash for unforeseen payments. According to the Cashier, the academic units are allocated their budgets at the start of the year. “Once they get their budgets, they assume that we have the cash to be spent by them anytime,” the Cashier continued.

The Chief Accountant, however, informed Mr. Aragon that cash disbursements for certain accounts had a more or less regular pattern. “For example, Trust funds for Scholarships and Professorial Chairs should be invested in higher yielding securities because these funds have definite schedules for payment,” the Chief Accountant said. The Cashier did not argue with the Chief Accountant’s statement, yet the former insisted that cash

disbursements are impossible to predict so that funds should not be “locked-in” investments in securities even for 30-day period. “The practice of keeping our funds in a savings account is a long standing practice and Mr. Tirona (Aragon’s predecessor) had never complained about it,” the Cashier said.

Since it was getting late and no agreement appeared in sight, Mr. Aragon decided to adjourn the meeting and continue discussion on the matter at another meeting the following week.

After the Cashier and the Chief Accountant had left the room, Mr. Aragon wondered why the Cashier was objecting to the idea of investing part of the University’s funds in higher yielding securities, an idea which he personally considered to be meritorious. Mr. Aragon realized that as Vice President for Administration, he had the authority to make changes in the cash management practices of MMU. At the same time, he realized that the Cashier was one of the most senior and highly respected members of management at MMU. He was not sure what he would do if the Cashier continued to object to the proposed change in the coming second meeting.

Reference

http://managementstudyguide.com/directing_function.htm http://www.nios.ac.in/srsec319new/319EL13.pdf http://www.slideshare.net/pragati_jain/directing-as-management-function http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html Fundamentals of Management

By: Rafael A. Rodriguez and Erlinda S. Echanis