Business Studies: Class 12 (Part 1) — Chapter 7: Directing

Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives. It is not a mere issue of communication but encompasses key elements like supervision, motivation, and leadership.

• Directing initiates action: While other functions prepare a setting for action, directing initiates action in the organisation.
• Directing takes place at every level of management: Every manager, from top executive to supervisor, performs the function of directing wherever superior-subordinate relations exist.
• Directing is a continuous process: It takes place throughout the life of the organisation, irrespective of changes in managers.
• Directing flows from top to bottom: It is initiated at the top level and flows to the bottom through the organisational hierarchy.

• Initiates Action: Helps individuals start working towards desired objectives when guided by superiors.
• Integrates Employees' Efforts: Ensures that individual efforts contribute to collective organisational performance.
• Guides Employees: Helps employees fully realise their potential and capabilities through motivation and leadership.
• Facilitates Introduction of Changes: Reduces resistance to change by convincing employees of the benefits of transitions.
• Brings Stability and Balance: Fosters cooperation and commitment, helping to balance various groups and departments.

• Maximum individual contribution: Directing techniques should help employees contribute to their maximum potential.
• Harmony of objectives: Directing must resolve conflicts between individual goals and organisational objectives.
• Unity of Command: A subordinate should receive instructions from only one superior to avoid confusion and conflict.
• Appropriateness of direction technique: Appropriate motivational and leadership techniques should be used based on situational variables.
• Managerial communication: Clear instructions and effective feedback systems ensure total understanding.
• Use of informal organisation: Managers should spot and utilize informal groups for effective directing.
• Leadership: Managers must exercise good leadership to influence subordinates positively.
• Follow through: Managers must continuously review whether orders are being implemented properly.

Supervision can be understood as an element of directing (overseeing subordinates' work) and as a managerial position at the operative level (immediately above the workers).

Importance of Supervision:

• Maintains day-to-day contact and friendly relations with workers, acting as a guide, friend, and philosopher.
• Acts as a link between workers and management, conveying ideas upward and decisions downward.
• Maintains group unity and resolves internal differences among workers.
• Ensures performance of work according to set targets.
• Provides on-the-job training to workers.
• Builds high morale among workers through supervisory leadership.
• Analyses work performed and provides constructive feedback.

• It is an internal feeling arising from individual needs and desires.
• It produces goal-directed behaviour.
• It can be either positive (rewards, promotion) or negative (punishment, threats).
• It is a complex process because individuals are heterogeneous with varied expectations.

1. Unsatisfied Need: An individual experiences a deficiency or desire.
2. Tension: The unsatisfied need creates restlessness.
3. Drives: Restlessness stimulates action-oriented urges.
4. Search Behaviour: The individual looks for ways to satisfy the need.
5. Satisfied Need: The need is met.
6. Reduction of Tension: The individual is relieved of restlessness.

Abraham Maslow's theory is based on a hierarchy of five human needs:

1. Basic Physiological Needs: Primary needs like hunger, thirst, and shelter. In organisations, basic salary satisfies these.
2. Safety/Security Needs: Protection from physical and emotional harm (e.g., job security, pension plans).
3. Affiliation/Belonging Needs: Affection, acceptance, and friendship.
4. Esteem Needs: Self-respect, autonomy, status, and recognition.
5. Self-Actualisation Needs: The drive to become what one is capable of becoming (growth, self-fulfillment).

Incentives are measures used to motivate employees to improve performance.

Financial Incentives (Direct monetary benefits):

• Pay and allowances: Basic salary, dearness allowance, and increments.
• Productivity linked wage incentives: Linking payment of wages to increase in productivity.
• Bonus: Incentive offered over and above the regular salary.
• Profit Sharing: Providing a share to employees in the profits of the organisation.
• Co-partnership/Stock option: Offering company shares at a price lower than the market price.
• Retirement Benefits: Provident fund, pension, and gratuity.
• Perquisites: Fringe benefits like car allowance, housing, and medical aid.

Non-Financial Incentives (Psychological and social satisfaction):

• Status: Ranking of positions, authority, and prestige of the job.
• Organisational Climate: Characteristics like individual autonomy and reward orientation.
• Career Advancement Opportunity: Skill development and promotion policies.
• Job Enrichment: Designing jobs with greater variety, autonomy, and responsibility.
• Employee Recognition programmes: Congratulating, displaying achievements, or giving mementos.
• Job security: Stability of future income and employment.
• Employee participation: Involving employees in decision-making.
• Employee Empowerment: Giving more autonomy and powers to subordinates.

• Indicates the ability of an individual to influence others.
• Tries to bring change in the behaviour of others.
• Reflects interpersonal relations between leaders and followers.
• Exercised to achieve common organisational goals.
• It is a continuous process.

• Autocratic or Authoritarian Leader: Gives orders and expects strict obedience. Communication is only one-way. Dogmatic and relies on reward/punishment.
• Democratic or Participative Leader: Develops action plans and makes decisions in consultation with subordinates, encouraging participation.
• Laissez-faire or Free-rein Leader: Gives followers a high degree of independence to formulate objectives and resolve issues, acting only as a support system.

1. Sender: The source who conveys thoughts or ideas.
2. Message: The content of ideas, feelings, or suggestions.
3. Encoding: Converting the message into communication symbols (words, gestures).
4. Media: The path through which the encoded message is transmitted (written, phone, internet).
5. Decoding: Converting encoded symbols back into understandable terms.
6. Receiver: The person who receives the communication.
7. Feedback: Actions of the receiver indicating understanding of the message.
8. Noise: Obstructions or hindrances that distort communication (e.g., poor connection, inattentive receiver).

• Semantic Barriers (Meaning of words): Badly expressed messages, symbols with different meanings, faulty translations, unclarified assumptions, technical jargon, and body language mismatch.
• Psychological Barriers (Emotional state): Premature evaluation, lack of attention, loss by transmission and poor retention, and distrust.
• Organisational Barriers (Structure & Policy): Rigid rules, restrictive policies, status distance, complexity in managerial levels, and lack of communication facilities.
• Personal Barriers (Individual factors): Fear of challenge to authority, lack of confidence in subordinates, unwillingness to communicate, and lack of proper incentives.

• Clarify the ideas before communication.
• Communicate according to the needs of the receiver.
• Consult others before communicating.
• Be aware of languages, tone, and content of the message.
• Convey things of help and value to listeners.
• Ensure proper feedback.
• Communicate for the present as well as the future.
• Follow up communications.
• Be a good listener.