7 H - Learning Business Studies

7 H


 CHAPTER-7
Directing

   Concept and Importance of Directing

Ø Characteristics of Directing :

(i)     Initiates action.

(ii)   Takes place at every level of management.

(iii) Continuous process.

(iv) Flows from top to bottom.

Ø Importance of Directing :

(i)     Helps to initiate action.

(ii)   Integrates employees’ efforts.

(iii) Guides employees to fully realise their potential.

(iv) Facilitates changes in the organisation.

(v)     Brings stability and balance in the organisation.
                       
                                                                                                 Elements of Directing


Supervision                  Motivation                   Leadership               Communication

  Motivation

Ø Features of Motivation :

(i)    Internal feeling.

(ii)  Produces goal directed behaviour.
(iii)                     Can be either positive or negative.
(iv)                     Complex process.

(iii)                     Continuous process

(iv)                     Different from job satisfaction

Ø Maslow’s Need Hierarchy Theory of Motivation :

Abraham Maslow categorised human needs into five types :

(i)    Basic physiological needs : Also known as survival needs, e.g., food, shelter, clothing, etc.

(ii)  Safety or security needs : Protection from physical dangers and economic security, e.g., pension plans, job security, etc.

(iii)  Affiliation/Belonging needs : Also known as social needs, e.g., affection, acceptance, etc.

(iv)  Esteem needs : Self-respect, status, etc.

(v)  Self actualisation needs : Desire of becoming what one is capable of becoming, e.g., growth, self-fulfillment, etc.
It helps managers to realise that the unsatisfied needs of employees should be identified so as to provide motivation to them.
Ø Financial Incentive : It refers to the incentives which are measurable in monetary terms such as :

(i)        Pay and allowances.

(ii)      Productivity linked wage incentives.

(iii)    Bonus.

(iv)    Profit sharing.

(v)      Co-partnership/stock option.

(vi)    Retirement benefits.

(vii)  Perquisites.

Non-Financial Incentives : It refers to the incentives which are related to psychological, social and emotional factors :

(i)        Status.

(ii)      Organisational climate.

(iii)    Career advancement opportunity.

(iv)    Job enrichment.

(v)      Employee recognition programmes.

(vi)    Job security.
(vii)  Employee participation.
(viii)  Employee empowerment

  Leadership

Ø Features of leadership

(i)      Process of influencing people.

(ii)    Brings behavioural changes.

(iii)  Inter personal relationship between a leader and the follower.

(iv)  Continuous process.

(v)    Exercised to achieve common goals.

Ø Leadership styles

(i)      Authoritative/Autocratic Leadership : A style in which the leader centralises all decision making powers and exercises complete control over his subordinates.

(ii)    Democratic/Participative Leadership : A style in which the leader consults the subordinates in the decision making process and encourages them to give suggestions.

(iii)  Free Rein/Laissez Faire Leadership : A style in which the leader gives complete freedom to the subordinates in setting the goals and delegates entire authority of decision making to them.

 Communication

Ø Elements of Communication :

(i)       Sender : Conveying his/her message.

(ii)     Message : Subject matter of communication.

(iii)   Encoding : Converting message into symbols.

(iv)   Media : Path or medium to transmit message.

(v)     Decoding : Translating encoded message into language.

(vi)   Receiver : Receiving the message.

(vii) Feedback : Reaction to the sender.

(viii)  Noise : Hindrance in effective communication process.

Ø Channels of Communication

(i)       Formal Communication : Official communication taking place in the organisation through official channels.

(ii)     Informal Communication : Unofficial communication that arises from the social interaction of people.

Ø Barriers to the Communication :

(i) Semantic Barriers : Related to encoding and decoding of message :

(a)   Unclear message.

(b)   Symbols with different meanings.

(c)    Faulty translation.

(d)   Unclarified assumptions.

(e)    Technical Jargon.

(f)     Body language and gesture decoding.

(ii) Psychological Barriers : Related to the state of mind of both the sender and the receiver.

(a)   Premature evaluation.

(b)   Lack of attention.

(c)    Loss by transmission and poor retention.

(d)   Distrust.

(iii) Organisational Barriers : Related to organisation structure.

(a)   Organisational policy.

(b)   Rules and regulations.

(c)    Status.

(d)   Complexity in organisation structure.

(e)    Organisational facilities.

(iv)  Personal Barriers : Related to the personal attitudes of both the sender and the receiver.

(a)   Fear of challenge to the authority.

(b)   Lack of confidence of superior on his subordinates.

(c)    Unwillingness to communicate.

(d)   Lack of proper incentive.

Ø Measures to improve communication effectiveness :

(i)       Clarify the ideas before communication.

(ii)     Communicate according to the need of the receiver.

(iii)   Consult others before communicating.

(iv)   Be aware of the language, tone and content of the message.

(v)   Convey things of help and value to listeners.

(vi)   Ensure proper feedback.
(vii) Communicate for the present as well as for the future.
(viii)  Follow up.
(ix)   Be a good listener.

  Know the Terms

Ø Directing : It is the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve organisational objectives.
Ø Motivation : It is the process of making subordinates to act in a desired manner to achieve certain objectives.
Ø Leadership : It is the process of influencing the behaviour of people by making them strive voluntarily towards the achievement of organisational goals.
Ø Communication : It is the process of exchange of ideas, views, facts, feelings, etc. between two or more persons to reach to a common understanding.
Ø Motive : It is an inner state that energises, activates or directs individual’s behaviour towards the goals.
Ø Motivator : It is a technique used to motivate people.
Ø Grapevine : Informal communication spreads across the organisation in disregarding to the levels of authority

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