DIRECTING AND CONTROLLING DIRECTING MEANING OF DIRECTING According to Ernest Dale, Directing is about telling people what to do and seeing hat they do it to the best of their ability. It is through directing that managers get the work Jone through people. Direction consists of the following four main activities, 1, Communication : Issuing orders and instructions to sub-ordinates. 2. Leadership: Guiding, advising and helping sub-ordinates towards accomplishment of work. 3. Motivation Inspiring sub-ordinates to achieve goals by providing them incentives as well as good working environment etc. 4, Supervision B Supervising of sub-ordinates to ensure that they work according to plan. Directing is nothing but management-in-action. Directing includes all those activities vhich a manager undertakes to influence the action of his sub-ordinates to achieve goals. tis a process around which all performance revolves. It is the essence of operations, In an organization, a manager never ceases to direct, communicate, motivate, teach, guide, watch, observe and supervise his sub-ordinates. Without proper direction and supervision, employees become inactive, dull and inefficient. NATURE OR FEATURES OF DIRECTING The nature or features of directing can be explained as under. 1. Directing involves human factor Direction basically deals with people. It is involved in the management of human behaviour. Directing aims at creating co-operation and harmony among the members of a group so as to work towards achieving goals. However in reality is not easy to achieve the same. People are always interested in achieving their own objectivesDirecting and Controtting 107 over companies objectives. It therefore becomes a challenge for the management to deal with people having their own goals and very divergent ones! . Directing is a continuous function Directing is a dynamic and continuous activity of managers. It is an on-going activity wherein the managers are expected to direct, guide, teach, motivate and lead their sub-ordinates on a continuous basis, especially when business conditions change v from time to time. 3. Directing, provides a link . Directing provides the key link between planning and staffing on one side with co- ordination and control, on the other side. It serves as a connecting and activating link among all the managerial functions. Without direction, the individual goals and organizational goals can never be synthesized, recting concentrates on performance Directing is a creative function which makes things happen. It translates plans into performance. It makes people result-oriented. Directing clears the doubts of employees and gives them conviction to move forward. Without proper direction, an organization can hardly perform in the present world, Directing is all pervasive Itmeans that directing as an activity exists at all levels of an organization and across all departments. For example in an engineering college, the management directs the Principal with respect to the objectives and policies of the institute; the Principal in tum will convince the HOD’s to translate them into departmental activities; the HOD’s then will instruct the staff (both teaching and non-teaching) to keep in mind all the objectives and policies while discharging their duties. The supervising activity, on the other hand, will go backward in direction. LEADERSHIP In earlier days, leaders were considered as those people who had either hypnotic influence or supernatural powers so that they could make the audience to obey them unconditionally. Leaders were also those people who could use their economic or social or muscle power hierachy to compel people into submission. However, in recent times, leadership is viewed as a characteristic of the individual and a social-influence process. According to George R. Terry, /eadership is the act of inspiring people to strive willingly for group objectives. It is the process of influencing group activities towards the ”— 108 Management & Entrepreneurship accomplishment of goals, ina given situation. Leadership is the ability of a manager to induce subordinates to work with zeal and confidence. Leaders are capable of doing so wving to their personal skills and abilities. According to Terry, the distinct characteristics that make a leader are: | He inspires the employees. He leads by example. He could do the job of anyone. po . He keeps all communication. channels open. we He monitors every development. He gives attention to details. S He empowers managers, but supervises them. | He shares his dreams with his employees. 5. 6. 7, He assumes obligations and takes responsibilities. 8. He manages his time very well. 9. | His always focused on the ultimate objective. LEADERSHIP STYLES ‘The dominant behaviour pattern of aleader-manager in an organization in relation to his subordinates is known as leadership style. There are three basic styles of leadership as follows: 1. Autocratic or Authoritative Style 2, Democratic or Partcipative Style and 3. Laissez-faire or Free-rein Style. Autocratic or Authoritative Style comple eee sate assumes all power and decision-making in himself and exercises eae er the subordinates. In this style, subordinates are compelled to follow ve sof the por under threat of penalties. They have no opportunity to take pat crane sa se on a or make suggesions. They are subject to close supervision aaa ee y to aviod responsibility. The autocratic manager has little concem g of employees, who suffer from frustration and low morale. They dono! have any sense of belongi ging to the organisati . 7 Limitations rganisation and try to work as little as possible. It should be clear from the abov Jyleof lee ‘ove that there are several limitations of the autocrati¢eee eee ecting and| Controlling 109 () Itresults in low morale due to inhuman treatment of employees, (ii) Efficiency of production goes down in the long run, (iii) It does not encourage development of future managers among capable subordinates, i Despite the above limitations, autocratic leadership can be successfully applied in the following situations : () When subordinates are incompetent and inexperienced. (i) When the leader prefers to be active and dominant in decision - making. (iii) When the company endorses fear and punishment as disciplinary techniques. (iv) When there is a little room for error in final accomplishment (v) Under conditions of stress when great speed and efficiency are requierd, Since the leader-manager takes all decisions in autocratic style, there is uniformity and consistency in decision-making. pative Style Democratic or Parti The democratic style is also known as participative style, In this style, decisions are taken by the leader in consultation with the subordinates and with their participation in the decision-making process. The participative leader encourages subordinates to make suggestions and take intiative in setting goals and implementing decisions. This enables subordinates to satisfy their social and ego needs, which in turn, lead to their commitment to the organisation goals and higher productivity. Frequent interaction between the manager and subordinates helps to build up mutual faith and confidence. Several benifits can be derived from the participative style of leadership as listed below: () It helps subordinates to develop their potetial abilities and assume greater responsibilities. (ii) It provides job satisfaction and improves the morale of employee. (ii) The group performance can be sustained at a high level due to the satisfied and cohesive nature of the group. However, the democratic style cannot be regarded as the best style under all Citeumstances,1410 Management & Entreprenewrerrr Its limitations are as follows = () Decision taken through consultation may cause delay and require compromises to meet different viewpoints. (i) A few vocal individuals may dominate the decision-making process. (iii) No one individual may take the responsibility for implementing the decision taken by the group as a whole. Despite the above limitations, democratic style is suitable in the following situations: (®) When subordinates are competent and experienced. (if) The leader prefers participative decision-making process. (iii) Rewards and involvement are used as the primary means of ‘motivation and control. (iv) The leader wishes to develop analytical and self-sontrol abilities in his subordinates. (v) The organisation has clearly communicated its goals and the objectives to the subordinates. Laissez-Faire or Free-Rein Leadership Style Laissez-faire literally means ‘allowing to do” in french. This leadership style is just the opposite of autocratic style. A manager, who adopts this style, completely gives up his leadership role. The subordnates group is allowed to make decisions and itis left to the members of the group to do as they like. The role of any leader is absent. The group members enjoy full freedom as regards goal-setting and acting on it. Hence, there is chaos and mismanagement of group goals. However, laissez faire leadership is found to be quite suitable where the subordinates are well-trained, competent and the leader-manager is able to fully delegate the powers of decision-making and action to the subordinates. Laissez faire style is suitable in the following situations : () when leader is interested delegating decision-making fully. (ii) subordinates are well trained and highly knowledgeable. (iii) organisation goals have been communicated well. Despite a few suitabilities this style should be adopted rarely because it may lead © chaos and mismanagement.Directing and Controlling 411 oO oO (o} oO ° ° No “iy N\ of { *o of t No 0 O° Autocratic Style Democratic Style Laissez-Faire Style Fig. 4.1 : Diagrammatic Representation of Leadership Style MOTIVATION The success or failure of a business organization depends on the performance of people working for it. Generally, performance is determined by three factors - ability, Jnowledge and motivation which are all related by a widely acknowledged formula : Performance = (Ability + Knowledge) * Motivation ‘Among the three factors which affect performance, we can see the multiplying effect motivation has on ability and knowledge in determining performance. Therefore motivation is a very important factor because it deals with human behaviour. Motivation is nothing but the task of making some one to act in the desired manner. . ions of motivation Some defi (i) ‘Motivation is a general term applying to the entire class of drives, desires, needs, wishes and similar forces that induces an individual or a group of ‘people to work’, - Koontz and O’Donnell (ii) Motivation is the process of attempting to influence others to do your work through the possibility of gain or reward’. - Edwin B, Flippo (iii) “Motivation means a process of stimulating people to action to accomplish desired goals’ = Scott Characteristics of Motivation The above definitions convey the following characteristics of motivation : (1) Motivationisan Internal Feeling : Motivation refers to a feeling within individuals that directs them to act in certain ways. 2) Motivation can be Positive or Negative : Positive motivation provides something to an employee in the form of additional pay, bonus, promotion etc., forone Slanagement & Entrepreneurs rip better performance. Negative motivation means penalties in the form of demotion, cutin salary etc., @) Motivation is a continuous process : Human needs are infinite. The feeling of needs is a continuous and unending process. So, motivation cannot bea. one-time event. It is a continuous process of satisfying the never-ending needs of employees, (4) Motivation demands knowledge of human needs : Since motivation is based on satisfaction of human needs, a good knowledge of human needs and ‘wants ig essential. Complication in the study of Motivation Following are some of the problems encountered in studies on ‘Motivation’ of human beings. ()_ Differentindividuals having the same type of need may produce different behaviours, (ii) Needs keep on changing absolutely and their intensity changes from time to time, (ii) Peoplemay not be able to express their needs in terms of regular factors, (iv) Inany situation more than one need may be operating. (¥) ‘One's man food may be another man’s poison’ - Satisfying one man’s need may lead to the dissatisfaction of another. THEORIES OF HUMAN MOTIVATION ‘There are several theories of motivation based on different structures of human needs and expectations. Some of them are 1. Maslow’s Hierarchy of Needs Theory 2. Herzberg’s Motivation - Hygiene Theory 3. McGregor’s Theory X and Theory Y 4. McClelland’s Three Need Model 5. Vroom’s Valence- Expectancy Theory 6. ‘Porterand Lawler - Model of ‘Motivation. 1, MASLOW’S HIERARCHY OF NEEDS THEORY Abraham Maslow’s Need-Hierarchy theory, published in 1943, is one of the most popular theories of motivation. According to him, the behaviour of an individual is determined by his strongest need at a particular moment. Needs that are not satisfied influence his behaviour. But the needs once satisfied do not serve as a motivator. According to Maslow, all human needs can be arranged in an order of priority. In other words, humanea Directing and Controlling 113 have an hierarchy and they have to be satisfied from the lowest level moving in the we ending order. Figure4.2 Shows Maslow’s hierarchy of needs as five. ascending levels. ) Physiological Needs : Includes food, shelter, clothing, water, sleep, sex and other bodily needs. The physiological needs are the basic needs in life. These are essential for everybody to remain alive. These needs motivate the person to work and earn sufficient amount of money to fulfill them. Social Needs Safety Needs Physiological Needs : Masiow’s Hierarchy of Needs Theory Fig 4. @) Safety Needs : Includes security and protection from physical, emotional and economical harm, Once the physiological needs are satisfied, the safety needs or security needs become predominant. Physical safety may be protection from fire and accidents. Economical security may be in terms of job security, health and insurance programme, retirement plan etc., Emotional needs may be the necessity to be happy and be free from mental disturbances114 Management & Entrepreneursm? (3) Social Needs : netudes affection, belongingness, acceptance and friendship. Social needs com! Since man is a social respect in society. He accepted: show affection and be his work enjoyable. (4) Esteem Needs : Includes self-respect, auton achievement, prestige, etc., responsibility, attention, Esteem needs represent an jndividual’s concern. for feeling important and be respected by others. ‘These needs are primarily satisfied by the individuals themselves. However, the management may create 2 proper climate to help individuals to fulfill these needs. : Includes Self-advancement, self-fulfillment, cture when the primary needs are taken care of, ‘animal, he has to interact with the society, and live with desires to love and be loved; accept others and be shown affection an so on. Social needs make ¢ into the pi jomy, status, recognition, 6) Self-Actualization Needs self-development, self-realization etc., Self-actualization is the highest level need in Maslow’s hierarchy. It is the desire is the desire to realize one’s to become what is one is capable of becoming. It i own potential. In an organization, a person attempting to satisfy these needs seeks challenging work and looks for opportunities for personal growth. According to Maslow, if a lower level need is satisfied, a higher level need emerges. This goes on till the highest level ne -ds are satisfied. This theory of human motivation by Maslow has been a landmar! the field of Management. However, it has been also criticized on the following grounds: (i) Needs of every person may not follow Maslow’s hierarchy. (ii) Most of the human needs are recurring and are never satisfied fully indeed. (iii) Most of the needs co-exist and there is no such hierarchy whatsoever (iv) Boundaries between different levels of needs may be hazy and overlappite ( : (v) Although behaviour dey : pends on need, or th hat it i be ful dependent. the lack of it, it may no (vi) The concept of self-actualization is theoretical and academic. No pes® & ever know his maximum or best potentials._—. Soo —§ Directing and Controtting 115 2 HERZBERG’S MOTIVATION-HYGIENE THEORY OR THE TWO-FACTOR THEORY The Motivation-Hygiene theory or the Two-Factor theory was proposed by Frederick Herzberg in the year 1959. He carried out a survey on the experiences and feelings of a group of 200 engineers and accountants working in a few industries in pittsburgh, USA. He concluded that people had two categéries of needs which are independent of each other and affect behaviour in different ways. He said that satisfaction or dissatisfaction in work arise from these two different sets of factors. They were () Hygiene factors (i) Motivators. (i) Hygiene-Factors: He found that certain factors did not motivate the employee when present on the job but their absence caused dissatisfaction. These factors were called Hygiene factors because they primarily prevented dissatisfaction just like hygiene conditions prevent sickness. These factors are : (1) Company policy and administration (2) Supervision (3) Working conditions (4) Salary and status (5) Security in job and personal life (6) Interpersonal relationship with superiors, peers and sub-ordinates. Herzberg said that the opposite of satisfaction was not dissatisfaction but ‘No satisfaction’ and like wise the opposite of dissatisfaction was not Satisfaction butit was ‘No dissatisfaction’. Hygiene factors are also known as maintenance factors or Dissatisfiers and are necessary to sustain a reasonable level of ‘No dissatisfaction’ among employees. (ii) Motivators : According to Herzberg, Motivational factors are essential to provide job satisfaction and to maintain high job performance. Motivators act as stimuli to make people work hard voluntarily and be happy in the organization. Motivators or ‘Satisfiers’ include the following factors : (1) Challenging work (2) Responsibility116 Management a entrepreneur @ Recognition @ Promotion oppornites ‘Achievement ction. However 4 3) 6) _Jobcontent- - . sors helped in ironing job sa on. Hi f tion’ andnot dissatisfaction. aid that these fat u : these factors WOU ead to ‘No satisfac ; ally help attaining hi gher output by e employees. inanutshell can be: Herzberg S decreasein Motivators gene! Herzberg’s Theory’ (Hygiene Factors: ‘When absent - increase dissatisfaction. ‘When present ~ prevent dissatisfaction. (i Motivators : ‘When absent - ‘When present - prevent: satisfaction. increases satisfaction. g's theory ein reporting their satisfying or dissatis! (i) A factor that causes dissatisfaction is one person may bring satisfaction credit themselves for successful events while blaming Criticisms of Herzber fying experiences. () Peoplemay not be accurat to another. i) Peoplearebiased: and they tendto outside events for their failures Gv) Thetheory doesnot measure the Ievels of satisfaction and dissatisfaction. (W) Oversimplification of relationship between motivation and satisfaction. Comparison of Theories of Maslow and Herzberg Bot i scien tn on concen on the factors which motivate employee’s behaviour to enzotgat a 4 ie aa formulated the theory in terms of needs, Herzberg two groups but without hierar ro i hierarchy ree ere divided them int Herzberg said only higher order ne nn is as said that all needs are motivators levels of needs according to Maslow es aeeaennee a nd to the Hygiene factors of Herzberg and the last two high igher levels of ne (fig 43) eeds of Maslow correspond to Motivators as per Herzberg——— Directing and Controlling 117 Motivators or satisfiers Social Needs Hygiene factors or Safety Needs Dissatisfiers Physiological Needs Fig 4.3 : Comparison of Maslow’s and Herzberg’s theories 3, McCGREGOR’S THEORY X AND THEORY Y Douglas McGregor suggested his Theory X and Theory Y in 1960 writing in his book ‘The Human Side of Enterprise’. He proposed two distinct views of human beings; one basically negative called Theory X and the other basically positive labelled Theory Y. McGregor concluded that Managers treated their sub-ordinates based on these two groups of assumptions regarding workers’ nature of behaviour. Theory X Theory X is a traditional approach to Management which is based on old time- honored assumptions about human behaviour. This theory suggests that management must coerce or threaten its employees to accomplish work. Further, decision-making is the exclusive domain of the management and the workers have to just follow the decisions made for them, Theory X prevails in labour-intensive organizations where workers are mainly illiterate and ill-informed. Theory X is also present to a certain extent in Government Offices, public-sector undertakings and other state-run organizations especially where there ate no merit-based promotions and ‘no incentives’. Theory Y Theory Y is a modem approach to Management. This theory [Link] that Management need not coerce or threaten its employees to accomplish work. It assumes that people are literate, well-informed, intelligent and competent to participate in ‘Management with zeal and enthnsias‘a to satisfy their higher level needs. The management ‘ctually attempts to help their emptoyees to develop and mature by giving them more118 Management & Entrepreneursinp responsibility and freedom. This theory encouraging growth and providing gui dance for higher output. Theory Y generally prevails in almost all modem-day private business establishments, Theory Y is stro1 mn. This theory aims at creating opportunities, removing obstacles, ngly present in software companies, media and entertainment industries, certain manufacturing sectors and so on, Theory Y is also increasingly present among the modern-day student fraternity. Theory Y is largely prevalent is developed countries like problems and where only non-financial incentives are the important motivators. COMPARISON OF ASSUMPTIONS OF THEORY X AND THEORY Y SL. NO. THEORYX . | U.S.A, Japan, France, Germany, Switzerland where people do not have burning economic | " THEORYY (1) People dislike work and avoid it ifthey can. (2) Peopleare lazy (3) People do no accept responsibilities. (4) People are not achievement oriented (5) People must be controlled and threatened with punishment (6) Motivation occurs for only lower order needs. (7) Peopleare self-centered (8) People prefer security in job above all and display little ambition (9) People prefer ‘status quo’ offering large resistance to change (10) People are likely to bemisled HAWTHORNE People do not dislike work. Work is as natural as playing or resting. People are active People are ready to accept responsibilities without fear. People are achievement oriented. People can be self-directed and creative at work if properly motivated. Motivation occurs at higher order needs as. well as at lower order needs. People are social. People like challenging work and are highly ambitious, People like changes in life and are ready to experiment, People are alert and know the ways of the because they are simplistic world EXPERIMENTS The Hawthome experiments were conducted by Dr. Elton Mayo and his associates at the Hawthome plant of Western Electric Company near Chicago, USA between 1927 to 1932. The results of these experiments considerably altered the management's approae®_ Directing and Controlling 119 and refuted several carlier theories including that of FW Taylor. The findings toits workers considered to be a landmark in the studies of organizational of Dr. Elton Mayo are and human approach to work. Itall started when Industrial engineers at the Western Electric Company wanted to lationship between different illumination levels in the shop floor to the ction. They selected two groups of employees - the Control group he Control group, the illumination remained unchanged throughout the experiment. while in the Test group, illumination was increased in intensity. As was e production in Test group went up. But as was not expected, the production although to a small extent. This puzzled the investigators and so they reduced the illumination for the Test group. But instead of a fall, there was an increase in the output! The engineers thought that there were other factors influencing the ourput rather than only the fluctuating intensities of light. That is when Dr. Elton Mayo and his associates from the Harvard Business School were requested to continue the experiments. Subsequently Mayo and his associates established that a complex chain of attitudes were responsible for the raise in production. Because they had been singled out for special attention, the Test and the Control groups had developed a special pride that motivated them to improve work performance. cted experiments on a group of six girls who wages were increased, rest behaviour establish the rel: worker's rate of produ and the Test group. In th expected th in Control group also went up Mayo and his associates also condui assembled telephone relays. He altered several variables periods were reduced and increased, work-day and work-week were shortened, group was allowed to chose their own rest periods, group was invited to suggest changes, and so on, Based on the above and other experiments which laste the Hawthome studies can be summarized as under : assumption that workeris an isolated machine fficiency depends only on wages, working .d several years, the results of (1) Hawthorne experiments exploded the working only forself-interest and whose ef condition and his personal health. Q) Hawthorne experiments concluded that “the most important single factor in determining output is not wages nor the physical condition, but it is the attitude of the worker towards his work, towards his fellow worker a 4 towards management’. (3) Hawthornestudies pr are satisfied and contented in their jobs ‘oved that the organization can gain only when its employeeseee eee ree 120 Management & Entrepreneurship (4) Hawthorne studies pointed out that any changes to be made in the organization should be explained and it’s importance should be made clear to the employees. It also pointed out that its not enough for the change to be just logical, because the employees may not appreciate the logic. ; : (5) Hawthorne studies suggested that thereis a possibility that workers who receive special attention will perform better simply because they received that attention. (6) Hawthorne studies revealed the importance of. employee attitudes such as understanding, involvement, voluntary co-operation and dedication in achieving organizational goals. Hawthome studies concluded that behaviour and sentiments were closely related, that group’s influence significantly affected individual behaviour and that group standards established individual worker output. @ Thus the Hawthome studies by Dr. Elton Mayo and his associates have really provided immense knowledge and a basis for the management's approach to the workers behaviour, As a result of these studies, employer-employee relationship were revolutionized and re-oriented in many organizations subsequently towards better resnts. 4. McCLELLAND’S THREE NEED MODEL David C-McClelland proposed his Three-Needs Model of Motivation by identifying three types of needs or drives in people. The three needs are power, affiliation and achievement which are explained below. Need for power : People with high need for power have a great longing for exercising influence and control. In other words need for power is to make others behave in a way that they would not have behaved otherwise. People who have need for power seek positions of leadership; they are good at conversation although they argue a lot; they are forceful, outspoken, hard headed and demanding; and they enjoy teaching (!) and public speaking. __ Need for Affiliation : People with a high need for affiliation detive pleasure from being loved and avoid the pain of being rejected. As individuals they desire to maintain pleasant social relationships, to enjoy a sense of intimacy and understanding, to be ready to console and help others in trouble, and to enjoy friendly interaction with others. _ Need for Achievement : People with a high need for achievement have an intense desire for success and an equally intense fear of failure, They want to be challenged and they set difficult goals for themselves. They take risks but are not likely to be valet S. They prefer to analyze and assess problems, assume perso nal responsibility for getting @ job done and seek feedback on how they are doing, They tend to be —— ne to work——.STo oo _ Directing ana Controlling 121 Jong hours, do not worry unduly about failure if it does occur, and like to run their own shows. 5. VROOM’S VALENCE- EXPECTANCY THEORY Victor [Link]’s Valence-Expectancy theory is a widely accepted explanation of motivation. Vroom’s theory is of the opinion that people will be motivated to work in anticipation of an outcome and the attractiveness of that outcome, to the individual, In other words Vroom’s theory is that people’s motivation towards doing work will be determined by the value that they place on the outcome of their effort (whether positive or negative), multiplied by the confidence they have that their efforts will materialize. Vroom makes the point that motivation is a product of the anticipated worth that an individual places ona goal and the chances that the individual expects of achieving that goal. In his own terms, Vroom’s theory can be stated as, Force= Valence x Expectancy Where Force = [Link] of a person’s motivation Valence = The strength of an individual’s ; reference for an outcome. Expectancy = The probability that a particular action will lead to a desired outcome. When a person is indifferent about achieving a certain goal, a valence of zero occurs; when a person would rather not achieve a goal, a negative valence occurs. In either case, the result of course is that there can be no motivation. Therefore, a person would have no motivation to achieve a goal if the expectancy were zero or negative. On the other hand, the force of motivation to do work goes on increasing with increase in desire for a Particular outcome and the probability of the realization of that outcome. In short, Vroom’s theory can be summed up through what Martin Luther said, ‘Every thing that is done in ‘he world is done with hope’ It is also true that the motivation required to accomplish some action might be determined by a desire to accomplish something else. For example a manager might be Willing to work hard to achieve targets in production for the sake of his own promotion incentives; a student may be participating in debates and quizzes now in order to Petform well later in interviews and group discussion while applying for a job! and so on. The greatest attraction of Vroom theory is that it recognizes the importance of Various i individual needs and motivation. It is closer to being realistic and also avoids some122 Management & Entrepreneurship — ‘berg theories of motivation. This theory isti tures of Maslow and Herzl z } Thi ae a aerag anties have personal zoals different from the organization goals, thus providing a harmony of objectives. Furthermore, Vroom’s theory is completely consistent with the Philosophy of MBO. 6. PORTER & LAWLER - MODEL OF MOTIVATION. The Porter and Lawler-Model of motivation was an improvement over Vroom’s Valence-Expectancy theory. This model was basically applied to study the behaviour of managers. It was concluded that there exists a complex relationship between attitudes ang performance of employees. Value of “ Rewards Justifiable rewards for the efforts Ability to doa specified task Y Intrinsic rewards — Accomplishment f\ Satisfaction of performance Extrinsic : Rewards Expected probability| - of efforts yielding Reward Expected level of efforts required to do aspecified job Fig. 4.4 : Porter & Lawler - Model of Motivation Fig 4.4 shows the Porter and Lawlet-Model. We all know performance. According to the model, the amount of efforts exerted of the rewards and an idea of the efforts r efforts required is actually a feed back fro individual, however, are al that efforts lead to depends on the value equired to do the job. The idea of the expected m the past actual performance. The efforts of at Iso affected by his ability (knowledge and skills) to do the job and his expectation of the Probability of convertin, ig his efforts into rewards Accomplishment of performance, in tur, leads to intrinsic and extrinsic rewards, Intrinsi¢ re and are experienced directly by an individual such sense of achievement, self-actualization etc., Extrinsic rewards are those which at——__.?-T_!_J—___ Directing and Controlling 123 extended by others such as status, working condition, salary etc., These rewards are tempered by the feelings of justification for the efforts made and the rewards obtained, to give the final satisfaction. Likewise the actual value of rewards will be influenced by satisfaction. Although the Porter and Lawler Model of Motivation Is more complex than other theories. it certainly is a more adequate portrayal of the system of motivation. To the practicing manager, this model means that motivation is nota simple cause and effect matter but a complex relationship between job attitudes and job performance. It also means that managers should carefully build their reward structures through careful planning, practice of MBO. clear definitions of duties and responsibilities. This is in order to see that the effort-performance-reward-satisfaction system is successfully integrated into the organization. COMMUNICATION MEANING ‘The greatest problem of communication is the illusion that it has been acconiplished’ said G. B. Shaw. Very often we see that what we intended to say was not exactly what the other person has understood. Communication is an important function of management and a good system is a must for the effective working of any business organization. Bad communication can lead to misunderstanding, confusion, quarrels, repetition and a general loss of efficiency. Broadly defined, communication is a process by which instructions, ideas, thoughts or information are transmitted, received and understood by people working in an organization, In other words it involves an exchange of ideas, facts, opinions or emotions by two °F more individuals. According to Allen, “Communication is the sum of all the things 4 person does when he wants to create understanding in the mind of another” Communication is not just about speaking, its also about listening, reading, writing ete, IMPORTANCE OF COMMUNICATION The importance of communication can be elaborated as under: 1. Communication is fundamental to accomplish work In any organization, a manager spends most of his time communicating i.e., reading, Writing, speaking or listening. Communication is the means by which he persuades,124 2. 3. 4. 6. Management & Entrepreneurship —————————————_ informs, motivates and leads his employees towards organizational goals. It ig through communication that there is a transmission of information among employees, Without communication no work can get accomplished. ies planning Communication faci Planning, the most important function of management, requires extensive communication a among the rank and file of the organization. Planning is done only after inputs from key executives and other personnel. Communication helps in decision-making Managers rely heavily on the quality and quantity of information that is available in order to take decisions. It is communications which provides the right type of information to a manager and enables him to consider the pros and cons thoroughly before taking a decision. Communication is the basis of co-ordination If all the departments and divisions of an organization have to co-ordinate their efforts to achieve the common goals, communication is highly essential. A good communication system is the basis of all inter-dependent activities. It is the foundation of all group activity. It is only through communication that people can attain a common view point and therefore co-operate with each other to achieve organizational objectives. According to Hick, “When communication stops, organized action comes to an end.” Communication improves relationships Communication builds bridges of relationships between employees. It binds individuals to a common purpose. A good communication system helps exchange of facts, ideas, feelings and sentiments among employees, apart from work-related information. This results in a better understanding among employees which is what an organization exactly wants! Communication improves morale and motivation When manager listen carefully to employee grievances and take necessary action, it improves the morale of the workers, Without communication, it is impossible? understand others and make them understand. Good communication helps addressing worker problems and therefore keep their morale and motivation high:—_— directing ana Controlling 125 7. Communication is key to managerial-efficiency Good communication skills is a must for modern-day managers, The success or the growth of a manager largely depends on his communication skills, [Note: Apart from technical skills, engineering students should also : develop good communication skills which only can take them to the top. Good results in the exams would help getting the first job, and thereafter it is only his personal skills which come into the picture. Therefore the student should try to equip himself to what would help him in all his life, rather than just concentrating on how to get the first job. This they have to do during their student days). CO-ORDINATION MEANING Some definitions of the term ‘co-ordination’ would be: “Co-ordination refers to the orderly arrangement of individual and group efforts to ensure unity of action in the realization of common goals.” - Mooney and Reiley “To co-ordinate means, to unite and correlate all activities.” - Henry Fayol “Co-ordination means balancing and keeping the team together by ensuring a suitable allocation of working activities to the various members, and seeing that these are performed with due harmony among the members themselves” - [Link]. Brech “Co-ordination in an organization by a manager is similar to directing an Orchestra by the conductor. Just like a conductor directs his musicians to produce harmony and melody in music, a manager co-ordinates the activities of a group to achieve harmonious and united actions” -IGNOU Manual All the above definitions give a combined good meaning co-ordination. On the basis Of these definitions, we can state the basic features of co-ordination, which are as under: 1. Co-ordination implies deliberate actions on the part of managers to bring about harmony and unity of actions, 2. Co-ordination applies to group offorts, and not to individual effort, It involves the orderly arrangement of group efforts. 3. Co-ordination does not result in a one-shot action. It is continuous action.126 4, Co- Management & Entrepreneurship Co-ordination is all-pervasive. It has to happen along all verticals and horizontals of an organization, Co-ordination is necessary not only within the organization but also of the organization with the outside environment. IMPORTANCE OF CO-ORDINATION The importance of co-ordination can be understood though the following points: . Co-ordination increases efficiency Co-ordiantion helps minimizing wastages, overlapping and duplication of work, misuse of resources etc., and the thus increases efficiency and economy in the organization. Co-ordination enables an organization to use all its resources in a optimum way. +» Co-ordination improves human relations Co-ordination improves and maintains harmonious relationship between individuals between individuals and the organization. With co-ordination, members begin to work, understand and adjust with eacher, develop mutual trust and co-operation and probably move closer to each other. All these help improve human relations. - Co-ordination resolves conflicts Conflicts in organizations arise usually because of differences between organizational goals and individual goals. An individuals perception of an organizational goal could be different to that of an another, which again leads to conflicts, Co-ordination is the only means by which such conflicts can be avoided, Co-ordination makes all departments focus together Different departments in an org: ‘nizations such as production, R & D, finance, marketing, accounts etc,, have to i jointly focus in order to achieve but results. Without co-ordination, each department tends to look only at its needs and necessities, without caring for other departments. Co- ordination is the only way of making them look for common cause. Ordination helps sharing of resources In any organization, there is always a sh hortage of resources such as manpower, finance, space, transportation etc. Co- ordination is the only way to ensure the best distribution of resources among all individuals and departments of the organizationee ee 6 Co-ordination retains and attracts talent - Good all-around co-ordination improves not only harmonious relationships but also increases profit to an organization and to its employees. Naturally talented youngsters are attracted to join such organizations. There are lists of best employers in every country where people would love to work, and this does not necessarily depend on pay packets alone. Co-ordination plays a great role if a company comes to be known as a good employer. TECHNIQUES OF CO-ORDINATION A variety of techniques are used by managers to achieve co-ordination. The important ones are: 1, Co-ordination by plans and procedures If plans and procedures are highly structured and in place, co-ordination becomes somewhat automatic. Apart from these, if the other types of plans such as schedules, tules, budgets, policies etc., are stated in Precise terms so as to avoid confusion, it results in better co-ordination. N . Co-ordination by sound and simple organization If the structure of an organization is sound and simple, it leads to better co- ordination. If the authority, responsibility and accountability are established in a clear- Cut manner, it improves co-ordination. w Co-ordination by chain of command If itis very clear as to who should report to whom in an organization, it helps co- ordination. Establishing a clear chain of command or a superior-subordinate Telationship goes a long way in ensuring co-ordiantion. 4. Co-ordination by effective communication Effective communication plays.a vital role in achieving co-ordination, Communication facilitates Proper understanding between individuals and groups among whom co- ordination is to be achieved - Co-ordination by committees Formation of committees to co-ordinate is a sound management technique. Committees are made up of knowledgeable, experienced and responsible persons Snttusted with discharging some functions collectively as a group, Creation of teams, ask forces and interdepartmental committees are some of the ways of achieving co- ordination, Ee.128 Management & Entrepreneurship 6. Co-ordination by conference In large business organizations ssosooaaeiaes are organized at regular intervals to provide a platform for discussion to the various units which could be geographi cally widespread. In such conferences top management ~ executives at lower levels exchange views, identify problems and resolve it through discussion, Some companies have ‘Open forums’ where any question raised by any employee should be answered by the appropriate man-in-charge. Such discussion forums and platforms pave the way for better co-ordination throughout the organization, 7. Co-ordination by special co-ordinators Ifa manager in an organization has very less time to address issues of. co-ordination, he may hire an assistant or a ‘Special co-ordinator’ to do the job for him. This man’s jobis to collect information regarding problems, analyze them, list various alternatives available, and suggests steps to be taken to the manager. 8. Co-ordination through sound leadership Sound leadership of top management is the surest means of achieving co-ordination, Good leaders may persuade and convince their subordinates to place company interests above their personal interests, They may even inspire self-coordination within a group, CONTROLLING Meaning Some definitions of the term ‘Control’ with Tespect to an organization are: “Control is checking current pel "formance against pre-determined standards contained in the plans, » inorder to ensure adequate progress and satisfactory performance”. - EFL. Brech “Control consists in verifying whether everything occurs in conformity with the plans, instructions and principles established” - Henry Fayol “Control is the process of regulating organizational activities so that actual erformance conforms to expected organizational standards and goi als.” - NewMan From the above definitions, we can follow that controlling functions involves- ()) developing appropriate standards (ii) compare on-going performance against those standards,eee eS Directing and Controlling 129 (iii) take steps to ensure that corrective actions are taken when necessary Jt shoul okeep things from going wrong, and not just to correct them afterwards. It is more about sprevention is better than cure” than about “Crying over spilt milk”! Its about prevent) e maintenance ‘rather than ‘breakdown maintenance’. Id also to be noted here that a good controlling system is actually designed The general features of controlling functions are: 1, Controlling is a positive force. >, Controlling is a dynamic and continuous process. 3, Controlling is goal-oriented. |. Control is forward-looking » _ Control process is universal Control is based on planning . Delegation is key to control. STEPS IN CONTROLLING The various steps that are involved in the process of controlling are as follows: ~ Step 1: Setting of standards The first step in the control process is to establish standards. Stan targets against which actual performance will be compared. Standards are nothing but criteria of performance. They serve as benchmarks as they specify acceptable levels of performance, Control standards are broadly divided into two types. (i) Quantitative standards: These are standards which can be quantified. dards are the Eg: Production level, rejection level, labour-hours, speed of service, sales volume, profit, expenses etc (i) Qualitative standards: These are standards which cannot be quantified ie., they are qualitative in nature. Eg: Employee morale, brand image, company image, goodwill, industrial relations etc. Step 2: Measurement of actual performance ing _The second step in the control process is to measure actual performances of various ivi " . 5 ‘duals, teams and departments in the background of established standards. Wherever’ment & Entrepreneurship tative measurement is applicable, it is easy to measure, while qualitative standards arg juantitative : mm wy . " Gail to measure. Tests, surveys, employee appraisals, exit interviews, media reports, open forums etc., are some of the ways employed to measure qualitative standards, To make any measurement process effective, the following three aspects have tg 130 Manage kept in mind: @ Completion ‘The actual performance measurement has to be complete in all respects. In other words, all aspects of the job should be measured and not just the ones that are more evident, Performances at work should be measured in an objective manner without fear, favour or bias. Only then measurement can be effective. @) Objective (ii) Responsiveness: The management of any performance should support the belief that effort and performance lead to improvement, both from the personal and organizational point of view, Step 3: Comparison of actual performance with standards The third step in the control process is to compare the actual performances with established standards and ascertaining the causes of deviation, The causes of deviation may be machine-dependent, process-dependent, plan-dependent, manpower-dependent etc. Whatever may the reason, deviation are thoroughly analyzed and properly presented. Statistical methods are usual ly adopted to look at deviation from a broader perspective. Step 4: Taking corrective measures __ The final step in the control proces. consists of taking remedial actions so that deviation may not occur again in future. Corrective steps are initiated so that any defects in the actual performance may be rectified, Corrective actions may include the following activities, 1. Change in methods, Tules, procedures strategies etc. 2. Introduce taining programs 3. Job redesign 4, Replacement of personnel 5. Re-establishing budgets and standardsCee ___- Directing and Controlling 131 6. Better compensation packages to employees 7, Changing machinery and processes g, Identifying recurring bottle necks and avoiding them 9, Trying to understand the competition better. 10, Looking at raw material resources and suppliers. Step | Step Il - ‘ p ATL Step IV — Setting Measurement Comparison - ca of actual of actual dking . 2 iv standards performance performance Peas with standards I 1 Feedback Fig. 4.5 : The Control Process ESSENTIALS OF A SOUND CONTROL PROCESS Following are the essential characteristics or pre-requisites for a sound control system: 1. Clear definition of objectives and standards Before planning a control system. itis essential to clearly define the objectives of the organization apart from realistic establishment of standards If these do not happen, subsequent stages would not be efficient 2. Selecting efficient control techniques jent whe! action at an early stag Control techniques are said to be effici n they detect ee i h standards and make possible corrective e wit damage so Suitability of contro! system to the needs of any given dept. For example The control Id be suitabl i ol system should be Suiabhs ent will be different from that used in the control system used in production marketing department.