Chapter III Functions of Management

d) Directing

Concept Directing is a process of Instructing Guiding Counseling Motivating and Leading the human resources organizational objectives.

to

achieve

Importance of Directing

It initiates actions It integrates employees efforts It attempts to get maximum out of individual It facilitates changes in the organization It provides stability and balance in the organization

Basic Elements of Directing

Motivating

Leadership

Communications

Leadership
The ability to positively influence people and systems to have a meaningful impact and achieve results

Basic Ingredients of Leadership

The ability to use power effectively and in a responsible manner. The ability to comprehend that human beings have different motivating forces at different times and in different situations. The ability to inspire. The ability to act in a manner that will develop a climate conducive to responding to and arousing motivations.

Are

MANAGERS = LEADERS

???

Distinguishing Leadership From Managing

Managing
Engages in day-to-day caretaker activities: Maintains and allocates resources Exhibits supervisory behaviour: Acts to make others maintain standard job behaviour Administers subsystems within organizations Asks how and when to engage in standard practice

Leadership
Formulates long-term objectives for reforming the system: Plans strategy and tactics Exhibits leading behaviour: Acts to bring about change in others congruent with longterm objectives Innovates for the entire organization Asks what and why to change standard practice

Distinguishing Leadership From Managing

Managing
Uses transactional influence: Induces compliance in manifest behaviour Acts within established culture of the organization using rewards, sanctions, and formal authority Relies on control strategies to get things done by subordinates Status quo supporter and stabilizer

Leadership
Creates vision and meaning for the organization Uses transformational influence: Induces change in values, attitudes, and behaviour using personal examples and expertise Uses empowering strategies to make followers internalize values Status quo challenger and change creator

Managers Versus Leaders a 3rd persons view

Managers
Are appointed to their position. Can influence people only to the extent of the formal authority of their position. Do not necessarily have the skills and capabilities to be leaders.

Leaders
Are appointed or emerge from within a work group. Can influence other people and have managerial authority. Do not necessarily have the skills and capabilities to be managers.

Common Leadership Styles

Dictator: Do what I say Team Builder: Come with me Relater: People come first Democrat: Lets decide together Coach: Try this Analyzer: Lets evaluate all options

Approaches/Styles/Theories/Types of Leadership Trait Approach Behavioral Approach Situational / Contingency Approach Path Goal Approach

Transformational and Transactional Leaders Charismatic Leaders

Trait Approach
Believes that leaders are Borne, not Made. Different researchers have found out many specific traits related to leadership ability, such as
Physical Traits Personality Traits Task related Characteristics Social Characteristics Others Energy, Appearance, Height etc. Adaptability, Aggressiveness, confidence etc. Enthusiasm, Self-

Achievement drive, Persistence, Initiative Cooperativeness, Interpersonal skill, Administrative skill Honesty, Integrity, Ambition, Cognitive ability, Tenacity, Emotional stability, Creativity, Flexibility etc.

Behavioral Approach

Based on the use of Authority/Power Based on Managerial Grid (Styles of Leadership)

Based on the use of Authority/Power

Styles of Leadership Based on Use of Authority

Autocratic

Democratic / Participative

Free- rein / Laissez faire

 Autocratic:
Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively

 Democratic:
 Encourages decision making from different perspectives  Leadership may be emphasised throughout the organisation  Consultative: process of consultation before decisions are taken  Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

 Laissez-Faire:
Let it be are shared by all the leadership responsibilities

Can be very useful where creative ideas are important Can be highly as people have control over their working life

in

businesses

motivational,

Can make coordination and decision time-consuming and lacking in overall direction Relies on good team work Relies on good interpersonal relations

making

 Paternalistic:  Leader acts as a father figure

 Paternalistic leader makes decision but may consult  Believes in the need to support staff

Leadership style Autocratic

Liking for leader Liked less

Group atmosphere Aggressive, dependent, selforiented Friendly, groupcentred, taskoriented Friendly, groupscentered, play-oriented

Productivity

High (leader
present)

Low (leader
absent)

Democratic

Liked more

Relatively high
(unaffected by presence of leader)

Laissez-faire

Liked less

Low (increased in
absence of leader)

Based on Managerial Grid (Styles of Leadership)

Situational / Contingency Approach Fiedlers Contingency Approach to Leadership Based on Three Dimensions of Leadership Situation Two Dimensions of Leadership Styles
Three Dimensions of Leadership Situation 1) Position Power 2) Task Structure 3) Leader-Member Relations Two Dimensions of Leadership Styles 1) Task Oriented 2) Relationship/People Oriented

Position Power: the degree to which the power of a position enables a leader to get group members to comply with directions. Task Structure: the extent to which tasks can be clearly spelled out and people held responsible for them. Leader-Member Relations: the extent to which group members like and trust a leader and are willing to follow that leader.

Task Oriented: leader gaining satisfaction from seeing tasks performed. Relationship/People Oriented: achieving good interpersonal relations and attaining a position of personal prominence.

Path

Goal Approach

The leader clarifies and sets goals with subordinates, helps them find the best path for achieving the goals, and removes obstacles. Leader influences the path between subordinates behavior and goals.

Leader Behavior as per Path-Goal Approach

1 Supportive: gives consideration to the needs of subordinates, creates a pleasant organizational climate. Participative: allows subordinates in decision making. Instrumental (Directive): provides specific guidance and clarifies what is expected from subordinates. Achievement-oriented: involves setting challenging goals, seeking improvements of performance.

2 3

Path

Goal Approach

Transformational and Transactional Leaders

Transformational Leadership: Leaders articulate a vision and inspire and motivate followers and shape the organizational culture. Leaders who are capable of having a profound and extraordinary effect on their followers. Leaders initiate innovation and change.

Transactional Leadership:
Leaders identify what subordinates need to do to achieve objectives, clarify organizational roles and tasks, set up organizational structure. Leaders work hard and try to run organization effectively and efficiently.

Charismatic Leaders
Charismatic Leadership:
An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways. Characteristics of charismatic leaders:
Have a vision. Are able to articulate the vision. Are willing to take risks to achieve the vision. Are sensitive to the environment and follower needs. Exhibit behaviors that are out of the ordinary.