CBSE Class 12 Business Studies Chapter 7: Directing – Lecture, Revision, Notes, Explanation

Directing

In this video series, I am covering the Business Studies subject from the CBSE Class XII syllabus. We will be following the standard NCERT textbook for the topics that we will discuss. This is the seventh video of the series, and we will cover the seventh chapter—Directing.

Introduction

In the first part of this series, we discussed the various functions of management:

1. Planning: Deciding what is to be done, how it is to be done, and when it is to be done. Setting goals and strategies for the organization.
2. Organising: Allocating resources (like time, money, people), deciding team structures, and assigning duties to different roles or positions.
3. Staffing: Finding the right people internally or externally for the roles or positions you have created and training them to do the jobs.
4. Directing: Giving instructions and leading the teams to make use of the resources to work as per the plans to achieve the objectives of the organization.

After the staffing stage, you have the plan, the resources, and the people. Now it is time to execute. In the Directing stage, you ensure that the various tasks or activities assigned to the people in the organization are being completed by them.

Meaning of Directing

Suppose you are a king in an ancient kingdom, and you decide to build a temple:

• Planning: Decide what kind of temple you will build, where, etc.
• Organising: Organize the money required, procure the land, identify the source of the stones you will use, decide how many people are required to work on your temple and how the work-teams will be structured.
• Staffing: Hire the people—the sculptors, architects, and workmen required for your project.
• Directing: Start giving instructions and guiding the people you have hired to start work and complete the activities or tasks assigned to them.

The process of directing can be observed in everyday situations like managing employees, teaching students, or directing actors in films. The primary goal of directing is to achieve predetermined objectives by working as per the plans.

Key Characteristics of Directing

• Directing Initiates Action: Action starts when managers start directing the staff, similar to how a movie director initiates action.
• Occurs at Every Management Level: All managers, from top executives to supervisors, engage in directing as part of their daily activities.
• Continuous Process: Directing persists throughout the life of the organization, regardless of managerial changes.
• Flows from Top to Bottom: Directing starts at the top level and cascades down through the organizational hierarchy.

Importance of Directing

Directing plays a crucial role in the functioning of an organization. The importance of directing can be highlighted through the following points:

1. Initiates Action: Guides employees towards achieving desired objectives. For example, supervisors help subordinates understand assigned tasks and how to achieve work targets.
2. Integrates Efforts: Ensures that individual efforts align with organizational goals, promoting teamwork and overall performance.
3. Realizes Potential: Helps employees realize their potential through motivation and effective leadership.
4. Facilitates Change: Manages changes within the organization by reducing resistance through motivation, communication, and leadership.
5. Brings Stability and Balance: Fosters cooperation and commitment among employees, ensuring stability within the organization.

Principles of Directing

The principles of directing provide guidelines for managers to effectively direct their teams:

1. Maximum Individual Contribution: Techniques should help individuals contribute to their maximum potential.
2. Harmony of Objectives: Align individual employee objectives with organizational goals.
3. Unity of Command: Every person should have only one boss to avoid confusion and conflict.
4. Appropriateness of Direction Technique: Tailor the directing approach to the needs and attitudes of subordinates.
5. Managerial Communication: Ensure effective two-way communication for clear instructions and understanding.
6. Use of Informal Organization: Recognize and leverage informal groups within the organization.
7. Leadership: Exercise strong leadership to positively influence subordinates.
8. Follow Through: Continuously monitor the implementation of directives and make necessary adjustments.

Elements of Directing

Directing consists of four main elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication

1. Supervision

Supervision involves guiding the efforts of employees to achieve objectives. It is performed by individuals directly above the workers in the hierarchy, acting as a bridge between management and the workforce.

Importance of Supervision

• Day-to-Day Interactions: Maintains regular contact and friendly relations with workers.
• Communication Link: Serves as a bridge between workers and management, conveying ideas both ways.
• Group Unity: Maintains harmony among workers by resolving conflicts.
• Performance Management: Ensures tasks are completed according to set targets.
• Training: Provides effective on-the-job training and enhances team efficiency.
• Leadership Influence: Inspires high morale among workers.
• Feedback and Skill Development: Offers constructive feedback and suggests ways to improve skills.

2. Motivation

Motivation is the process of stimulating people to action to accomplish desired goals. It involves understanding the internal drives that influence behavior.

Definitions of Motivation

• William G. Scott: “Motivation means a process of stimulating people to action to accomplish desired goals.”
• McFarland: “Motivation refers to the way in which urges, drives, desires, aspirations, strivings or needs direct, control and explain the behavior of human beings.”
• Robert Dubin: “Motivation is a complex force starting with keeping a person at work in an organization. Motivation is something which moves the person to action and continues him in the course of action already initiated.”
• Fred Luthans: “Motivation is a process which begins with a physiological or psychological need or deficiency which triggers behavior or a drive that is aimed at a goal or incentive.”

Process of Motivation

1. Unsatisfied Need: A need arises (e.g., hunger, thirst).
2. Tension: The unsatisfied need creates tension.
3. Drive: The tension leads to a drive to satisfy the need.
4. Search Behavior: The individual searches for ways to satisfy the need.
5. Need Satisfied: The need is satisfied, reducing tension.

Role of Motivation in the Workplace

• Voluntary Work: Motivation is key to getting people to work voluntarily.
• Understanding Behavior: Managers need insights into the causes of employee behavior to motivate them.
• Improved Performance: Motivated employees perform better and contribute positively to organizational goals.

Features of Motivation

• Internal Feeling: Stems from internal desires or needs.
• Goal-Directed Behavior: Leads to behavior aimed at achieving specific goals.
• Positive or Negative: Can be driven by rewards or fear of punishment.
• Complex Process: Individuals have different expectations and reactions.

Importance of Motivation

1. Improves Performance: Leads to satisfied employees who contribute optimally.
2. Changes Attitudes: Transforms negative attitudes into positive ones.
3. Reduces Employee Turnover: Retains employees, reducing recruitment costs.
4. Reduces Absenteeism: Motivated employees attend work regularly.
5. Facilitates Change: Helps managers introduce changes smoothly.

Maslow’s Need Hierarchy Theory of Motivation

Abraham Maslow’s theory suggests that human needs are arranged in a hierarchy, and individuals are motivated to fulfill these needs in order:

1. Physiological Needs: Basic needs like hunger, thirst, shelter, sleep.
2. Safety and Security Needs: Physical and emotional security.
3. Affiliation/Belongingness Needs: Desire for family, friendship, and acceptance.
4. Esteem Needs: Self-respect, recognition, attention, and status.
5. Self-Actualization Needs: Self-fulfillment, spiritual attainment, and self-satisfaction.

Application in Organizational Context

• Physiological Needs: Fair salary and basic amenities.
• Safety Needs: Job security, retirement benefits, workplace safety.
• Affiliation Needs: Teamwork, corporate culture, acceptance.
• Esteem Needs: Promotions, recognition, higher responsibilities.
• Self-Actualization Needs: Opportunities for personal growth and fulfillment.

Financial and Non-Financial Incentives

Financial Incentives

• Pay and Allowances: Basic salary and performance-based increments.
• Productivity-Linked Wage Incentives: Linking wages to increased productivity.
• Bonus: Additional payment over basic wages.
• Profit Sharing: Providing employees with a share of profits.
• Stock Options: Offering company shares at a lower price.
• Retirement Benefits: Financial security through provident fund, pension, and gratuity.
• Perquisites: Additional benefits like car allowance, housing, medical aid.

Non-Financial Incentives

• Status: Higher designation or rank.
• Organizational Climate: Autonomy, reward orientation, risk-taking environment.
• Career Advancement: Opportunities for skill development and promotion.
• Job Enrichment: Jobs with more variety, autonomy, and responsibility.
• Employee Recognition Programs: Acknowledging and appreciating employees’ work.
• Job Security: Providing stability in future income and work.
• Employee Participation: Involving employees in decision-making.
• Employee Empowerment: Giving employees more autonomy and power.

3. Leadership

Leadership is the activity of influencing people to strive willingly for group objectives.

Definitions of Leadership

• Leadership is the activity of influencing people to strive willingly for group objectives.
• Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals.
• Leadership is a set of interpersonal behaviors designed to influence employees to cooperate in the achievement of objectives.

Features of Leadership

• Influence: Ability to influence others.
• Behavioral Change: Aims to bring about changes in behavior.
• Interpersonal Relations: Relationship between leaders and followers.
• Goal-Oriented: Exercised to achieve common goals.
• Continuous Process: Ongoing and required as long as the organization operates.

Leader-Follower Relationship

• A leader possesses the attributes of leadership.
• Success depends on both the leader and followers.
• Followers contribute through skills, knowledge, commitment, and team spirit.
• Acceptance and support of followers make leadership effective.

Importance of Leadership

1. Influences Behavior: Positively influences people to contribute to organizational goals.
2. Maintains Personal Relationships: Fulfills needs by providing confidence, support, and encouragement.
3. Facilitates Change: Persuades and inspires people to accept changes.
4. Handles Conflicts: Resolves issues through persuasion and clarification.
5. Provides Training: Builds successors and ensures smooth succession.

Leadership Styles

Leadership styles can be classified based on the use of authority:

1. Autocratic or Authoritarian Leadership
2. Democratic or Participative Leadership
3. Laissez-Faire or Free-Rein Leadership

1. Autocratic or Authoritarian Leadership

• Gives orders and expects obedience without questioning.
• One-way communication from leader to subordinates.
• Resistant to change or contradiction.
• Uses reward and punishment to ensure compliance.
• Effective in situations requiring quick decision-making and high productivity.

2. Democratic or Participative Leadership

• Involves subordinates in decision-making and action planning.
• Encourages participation and values opinions.
• Believes people perform best when they set their own objectives.
• Fosters a supportive environment.

3. Laissez-Faire or Free-Rein Leadership

• Uses power minimally, allowing followers a high degree of independence.
• Subordinates set their own objectives and resolve issues.
• Leader provides support but does not interfere.
• Suitable for self-motivated and capable groups.

Flexibility in Leadership Styles

Leaders may adopt a combination of styles depending on the situation. Even laissez-faire leaders may impose certain rules, and democratic leaders may take independent decisions in emergencies.

Advantages and Disadvantages

4. Communication

Communication is the process of exchanging ideas, views, facts, and feelings between or among people to achieve mutual understanding.

Definitions of Communication

• Communication is the sum of all things one person does when he wants to create understanding in the mind of another.
• Communication is transfer of information from the sender to the receiver with the information being understood by the receiver.
• Communication is a process by which people create and share information with one another in order to reach common understanding.

Importance of Communication

• Key to Success: Effective communication is crucial for a manager’s success.
• Influence on Directing Abilities: A manager’s ability to direct relies heavily on communication skills.
• Organizational Priority: Organizations prioritize improving communication skills among managers and employees.

Elements of Communication

1. Sender: The person who initiates the communication.
2. Message: The content intended to be communicated.
3. Encoding: Converting the message into symbols like words or gestures.
4. Media/Channel: The medium through which the message is transmitted.
5. Decoding: The process by which the receiver interprets the message.
6. Receiver: The person who receives the communication.
7. Feedback: The response indicating whether the message was understood.
8. Noise: Any obstruction that distorts or disrupts the communication process.

Importance of Communication in an Organization

1. Basis of Coordination: Essential for coordinating activities and individuals.
2. Smooth Working: Vital for uninterrupted functioning.
3. Basis of Decision Making: Provides necessary information for decisions.
4. Increases Managerial Efficiency: Involved in all aspects of managerial functions.
5. Promotes Cooperation: Fosters mutual understanding between management and workers.
6. Establishes Effective Leadership: Foundation of leadership.
7. Boosts Morale and Motivation: Enables management to motivate subordinates.

Types of Communication

Communication can be classified into:

1. Formal Communication
   • Vertical Communication:
     • Downward: From superiors to subordinates.
     • Upward: From subordinates to superiors.
   • Horizontal Communication: Between employees or managers of the same level.
2. Informal Communication (Grapevine): Occurs outside formal channels.

Communication Networks

Formal Communication Networks:

• Single Chain: Communication flows in a linear sequence from one level to the next.
• Wheel: All communication flows through a central figure.
• Circular: Communication moves in a circular manner.
• Free Flow: Everyone communicates with everyone else freely.
• Inverted V: A subordinate communicates with their immediate superior and their superior’s superior.

Informal Communication Networks:

• Single Strand: Communication flows sequentially from one person to the next.
• Gossip: Each person communicates with everyone else non-selectively.
• Probability: Communication occurs randomly.
• Cluster: Communication happens selectively with trusted individuals.

Barriers to Communication

Barriers can distort, block, or alter the intended message, leading to misunderstandings. They are categorized into:

1. Semantic Barriers: Issues in encoding and decoding messages due to language problems.
2. Psychological Barriers: Emotional and psychological states interfering with communication.
3. Organizational Barriers: Related to organizational structure and processes.
4. Personal Barriers: Arising from personal attitudes and characteristics.

Improving Communication Effectiveness

• Clarify Ideas: Ensure the message is clear before communicating.
• Understand Receiver’s Needs: Tailor communication to the receiver’s level of understanding.
• Consult Others: Involve others in the communication planning process.
• Be Mindful of Language and Tone: Use appropriate language and tone.
• Convey Valuable Information: Focus on the interests and needs of the audience.
• Ensure Feedback: Encourage feedback to confirm understanding.
• Communicate for Present and Future: Address current needs and future goals.
• Follow-Up Communications: Regularly follow up on instructions.
• Be a Good Listener: Practice active and attentive listening.

Conclusion

With that, we have completed this chapter. If you have any questions or feedback, post a comment below. I will see you again very soon in the next chapter.