UNIT 4

Directing and Controlling

Presentation
By
Dr.V.S.Krushnasamy M.Tech.,Ph.D
Associate Professor
Department of EIE
DSCE

Motivation
Topics going to
be discuss
Directing
Meaning and nature of directing
Principles of directing /
Requirements of effective
direction
Importance of directing
Leadership
Importance of leadership
Are leaders made or born justify
Basic styles of
leadership(autocratic,participativ
e and free-rein)
Qualities of good leader
Communication
Meaning and importance
Purpose of communication
Barriers of success
communication

Theories
Characteristics of motivation
Maslows and heryburg
theories
Mcgregors theory X and theory
Y
Herzberg theory
Features of motivation
Coordination versus
cooperation
Any two types of coordination
tech
Controlling
Meaning and steps in
Essentials of a sound control
system
Methods of establishing
control

Directing

Meaning and nature of directing

Directingis said to be a process in which the
managers
instruct,
guide
and
oversee
the
performance of the workers to achieve predetermined
goals.
Directingis said to be the heart of management
process. Planning, organizing, staffing have got no
importance if direction function does not take place.
Directinginitiates action and it is from here actual
work starts. Direction is said to be consisting of human
factors. In simple words, it can be described as
providing guidance to workers is doing work.
In field of management, direction is said to be all
those activities which are designed to encourage the
subordinates to work effectively and efficiently.

Directing
Directingconsists of process or technique by which
instruction can be issued and operations can be carried
out as originally planned- Human
Directingis the function of guiding, inspiring, overseeing
and instructing people towards accomplishment of
organizational goals.
Directingmeans giving instructions, guiding, counselling,
motivating and leading the staff in an organisation in
doing work to achieve Organisational goals.
Directing is the interpersonal aspect of managing by
which subordinates are led to understand and contribute
effectively and efficiently to the attainment of enterprises
objectives. Koontz and ODonnel

Directing

Direction has following elements:

Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of
subordinates by their superiors. It is the act of watching
& directing work & workers.
Motivationmeans
inspiring,
stimulating
or
encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives
may be used for this purpose.
Leadership- may be defined as a process by which
manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing
information, experience, opinion etc from one person to
another. It is a bridge of understanding.

Importance of directing

It Initiates Action:
The employees are appointed up to the first three functions of
management (planning, organizing and staffing).
But they cannot commence their job until they are not
informed about what to do and how to do the manager
performs this job through direction.
Thus, it is evident that it is direction which initiates action in
an organization.
It Integrates Employees Efforts:
Success of an organization is possible only when everybody
does their job efficiently. If any one of employees in the
employees- chain does not perform up to the mark, it
adversely affects the performance of the remaining
employees.
Thus, it is essential to establish coordination among all the
activities. The manager establishes this coordination by
supervising, providing good leadership, motivating and
exchanging ideas with his subordinates.

Importance of directing
It is the Means of Motivation:
The objectives of an organization can only be achieved
by motivated employees. Motivated employees work
with full dedication and with a feel of belongingness.
It Facilitates Implementing Changes:
Often, the employees show resistance to change in
their organizational structure. But with the changing
demand of time, it needs to be implemented / enforced.
Managers through the medium of Direction shapes the
mindset of the employees in a manner that they
willfully accept changes.
It Creates Balance in the Organization:
Sometimes there is a clash between individual and
organizational objective. Directing helps to settle down
these clashes and creates a balance in the

Characteristics of Direction
Pervasive Function- Directing is required at all levels
of organization. Every manager provides guidance and
inspiration to his subordinates.
Continuous Activity- Direction is a continuous
activity as it continuous throughout the life of
organization.
Creative Activity- Direction function helps in
converting plans into performance. Without this
function, people become inactive and physical
resources are meaningless.
Management initiates action through direction.
Subordinates do the things as per the original plan.
Executive Function- Direction function is carried out
by all managers and executives at all levels throughout
the working of an enterprise, a subordinate receives

Principles or Requirements of Directing/Direction

Principle
Principle
Principle
Principle
Principle
Principle
Principle
Principle

of
of
of
of
of
of
of
of

harmony of objectives
scalar chain
unity of command
unity of direction
effective communication
direct supervision
effective leadership
follow-up

Principles Direction
For
effective
implementation
of
any
administrative decision,planning,organizing and
staffing are not enough.
The manager must stimulate action by giving
direction to his subordinates through orders and
also supervise their work to ensure that the
plans and policies achieve the desired action &
results.
It is the direction which stimulates the
organization and its staff to execute the plans.
Hence it is also called management in action.
Direction means issuance of orders and leading
and motivating subordinates as they go about
executing orders.

Principles Direction
Principle of harmony of objectives
The goals of the members must be in complete harmony
with the goals of an organization.
The manager must direct the subordinates in such a way
that they perceive their goals to be in harmony with
enterprise objectives.
Principle of unity of command
The subordinate must receive orders and instructions from
one supervisor only.
The violation of which may lead to conflicting orders, divided
loyalties and decreased responsibility for results.
Principle of direct supervision
Every supervisor must maintain face to face direct contact
with his subordinates.
Direct supervision boosts the morale of employees,increase
their loyalty and provides them with feedback on how well
they are doing.

Principles Direction
Principle of effective communication
An instrument of direction through which the supervisor
gives orders, allocates jobs, explains duties and ensures
performance .
It is a two way process which enables the superior to
know how his subordinates feel about the company and
how the company feels on a number of issues concerning
them.
In communication comprehension is more important than
the content.
Principle of follow-up
Direction is not only telling subordinates what they
should do, but also seeing that they do it the right way.
The manager should therefore follow the whole
performance of his subordinates, not merely to check
their activities ,help them in their act and point out
deficiencies if any and revise their direction if required.

Principles Direction

Principle of scalar chain

Scalar chain means that chain of subordinates and superiors ranging
from top to the lowest ranks. This chain clearly establishes superiorsubordinate relationships and scope of authority is clearly defined.
For carrying the function of direction successfully a clear scalar
chain is immensely helpful.
Principle of unity of direction
For ensuring effective direction, there should be one head and one
plan for a group of activities having the same objectives.
This principle clearly lays down that the efforts of all the members
should be directed by a single head for the accomplishment of the
objectives of the organization.
Principle of effective leadership
Effective leadership is the essence of the function of direction. The
superior must possess the qualities of a good leader, if he is to get
the work done from the subordinates.
Effective leadership is also helpful in winning the confidence of the
subordinates.

Leadership
Leadership is defined as influence, the art or process
of influencing people so that they will strive willingly
and enthusiastically towards the achievement of
group goals.
A person who is able to influence others and make
them follow his instructions is called a leader.
Importance of Leadership
Leadership
improves the performance of the
employees. Leaders can motivate the followers to
work and thereby increase their performance level.
With continuous support and guidance, leaders are
able to build confidence among the followers,
thereby increasing speed and accuracy and
decreasing wastage.
With friendly and cooperative efforts the leader is

Concept of Leadership
Managers are people who do things right, while
leaders are people who do the right thing.
'Leadership is all about courage to dream big.
Leadership is a complex process by which a
person influences others to accomplish a mission,
task, or objective and directs the organization in a
way that makes it more cohesive and coherent.
Leadership makes people want to achieve high
goals and objectives, while, on the other hand,
bosses tell people to accomplish a task or
objective.
Leadership can be used for good or ill
Leadership skills can be perverted to pursue bad
ends

Concept of Leadership
Characteristics of Leadership
Leadership implies the existence of followers
Leadership involves a community of interest between the
leader and his followers.
Leadership involves an unequal distribution of authority
among leaders and group members.
Leadership implies that leaders can influence their
followers or subordinates in addition to being able to give
their followers or subordinates legitimate directions.
Functions of a Leader
Setting and Achieving Organizational Goals Goal, Setter,
Planner, Executive.
Planning Operations of the Organization- Expert,
Controller, Administrator, Mediator.
Symbolic Figure for the Group Exemplar, Symbol of the
Group, Ideologist

Managers Versus Leaders

Leader

Manager

A person emerges as a leader A manager always put into his

on a
number of situational position by appointment.
factors.,
A leader always has some
personal power that enables
him to lead. He may or may not
have positional power

The manager
always
has
some positional power. He
may or may not have personal
power.

There
is
mutuality
of There is clash of objectives
objectives between leader and between manager
and his
his followers,
subordinates.
Leaders believe in doing right Managers
believe
in
doing
things. Leaders create change. things right
Managers react to change.
Leaders
powerwithpeople.

develop Managers
poweroverpeople.

exercise

Are leaders made or born justify

Leadership traits such as a towering personality, powerful

looks, tone, velour, intelligence, character, dedication etc
(many) will come by birth genetically and they get
enhanced/diminished in practice. We have limited scope to
meddle with such traits.
As far as the skills are concerned, like, organizing, managing,
foreseeing,
decision-making,
controlling,
relationship
management, leading etc can be mostly imparted through
knowledge sharing and training.
Even though the modern thinkers are of the view that all
leadership skills can be acquired through, in reality we don't
find every leader thus trained as an effective leader. They
remain to be ' manufactured' leaders.
We have several great leaders (good/bad not imp) like Jesus, Allah,
Rama, and Bush, Clinton, Sonia Gandhi, Dalai Lama etc (Negative
leaders like Ravenna, Hitler, Saturn, etc) and several spiritual
leaders throughout the globe. Most of them were born-leaders.

Are leaders made or born

justify
I was born and then worked harder than anyone
else.
That's the reality of being able to lead--you first
have to know what honesty is, then pick a
destination and know how to get there from here.
Genuine leaders do that. I can do that.
The other sort get the word "boss" painted on
their door and think they can skip all the steps
that would give them scientific mastery of a
subject and then the ability to draw up
meaningful strategy, direct operations, set
tactics, communicate, monitor, reform, repair,
improvise, improve etc., etc.,etc.leaders are
born--then they make themselves.

Are leaders made or born

justify

I think they are made and I'll tell you why. Everyone has it in
them to become something greater than what they are. I
think it has a lot to do with your upbringing as well as taking
responsibility
for
your
actions
as
an
adult.
If every adult would ask themselves, "where do I want to be
in 5 years, what do I want to accomplish?" then maybe they
would realize that our present circumstances are a result of
our past actions/behaviors/ideas.
Leaders see who they can become and the impact they can
make on society and look toward that future. I don't believe
they are just born. Whatever circumstances they have faced
have MADE them stronger.
It's not always easy (never is) but they forgo temporary
discomfort because they know what lies ahead and that
keeps them going.

Good leaders aremadenot born.

if you have the desire and
willpower, you can become an
effective leader.
Good leaders develop through a
never ending process of selfstudy, education, training, and
experience.

Leadership Styles
TRAIT
THEORY
BEHAVIRAL
THEORY
CONTINGENC
Y THEORY

TRAIT THEORY

Trait is basically a character and deals with personal

abilities and assumed to be gods gift abilities are
identified mental and physical energy ,emotional
stability, knowledge of human relations ,empathy,
objectivity, personal motivation, communication
skills, teaching ability, social skills, technical
competence, friendliness and affection, integrity
and faith, intelligence etc..
Keith Davis has summarized four of the major traits
which might have an impact on successful organizational
leadership. They are:
Intelligence
Social maturity and breath
Inner motivation and achievement drives
Human relations attitude

TRAIT THEORY
Intelligence: Research has shown that generally a
leader has higher intelligence that the average
intelligence of the followers.
However the leader
cannot be exceedingly much more intelligent than his
followers
Social maturity and breath: Leaders tend to be
emotionally stable and mature and to have broad
interests and activities.
They have an assured,
respectful self concept.
Inner motivation and achievement drives:
Leaders have relatively intense motivational drives of
the achievement type. The strive for intrinsic than
extrinsic rewards.
Human relations attitude: Successful leaders
recognize the worth and dignity of their followers and
are able to emphasize with them.
According to
research studies leaders possess consideration and are
employee centered rather than production centered.

TRAIT THEORY
Limitations:
No universal traits found that predict leadership in
all situations.
Unclear evidence of the cause and effect of
relationship of leadership and traits.

BEHAVIOURAL THEORY

This theory focuses on how leaders behave(i.e communicate

,give direction,motivate,delegate,plan,conduct meetings,).
Do they dictate what needs to be done and expect
cooperation or do they involve the team in decisions to
encourage acceptance and support.
Behavioral theories of leadership do not seek inborn traits or
capabilities. Rather they look at what leaders actually do.
According to this theory, people canlearnto become leaders
through teaching and observation.
Leadership frame work based The behavior approach says
that anyone who adopts the appropriate behavior can be a
good leader.
Assumptions
Successful leadership is based in definable, learnable
behavior.
Leaders can be made rather than are born.

BEHAVIOURAL THEORY
Theories based on leadership behavior and
styles
Leadership based on the use of authority
Likert's four systems of managing
The managerial grid
Leadership involving variety of styles and level of
use of power and influence.
Leadership based on the use of authority
Autocratic
Democratic or Participative
Free-rein

Autocratic Leadership

The leader alone determines policies and makes

plans. He tells others what to do and how to do it.
This
considered
appropriate
when
decisions
genuinely need to be taken quickly, when there is no
need for input and team agreement is not necessary
for a successful outcome.
Leader demands strict obedience and relies on
power.
An autocratic leader may sometimes be paternalistic
or benevolent (employee remains under constant
fear & remains under constant gratitude).
In both cases leader is the key person. The whole
operation of the organization depends upon him .

Autocratic Leadership

Advantages of Autocratic Leadership

This leadership style can increase efficiency, save time and quick
results, especially in a crisis or an emergency situation.
Quick decision is possible. The reason is that the leader himself
takes decision for the whole group. Less talented followers can
perform their job effectively.
Chain of command and division of work are clear and fully
understood by all.
Drawbacks of Autocratic Leadership
Since one way communication, without feedback typically leads to
misunderstandings, communication breakdowns and costly errors.
The autocratic leader is alone in his decision making. This is generally
dangerous in today's environment of technological and organizational
complexity.
Frustration, low morale and conflict develop easily under autocratic
leadership

Democratic or Participative or Person-Oriented

Leadership
A leader who involves employees in decision making,
delegates authority, encourages participation in
deciding work methods and goals, and uses feedback
to coach employees.
Advantages
The participative leader has the critical factor of inbuilt
in personal motivation working for him.
The leader consistently receives the benefit of the best
information, ideas ,suggestions, talent and operating
experience of his people.
It permits and encourages people to develop, grow and
rise in the organization.
Disadvantages
Taking decision and implementation requires more time
leads to complete loss of leaders control.
A way of avoiding responsibility.

Free Rein or Laissez Faire Leadership

A free rein leader will leave the group entirely to itself
such as a leader allows maximum freedom to
subordinates.
Advantages
The superior subordinate relationship is found to be very
good.
Highly efficient subordinates, can make use of the
freedom given to them to excel.
Disadvantages
Control may become difficult As the leader does not
involve himself at all in the activities.
The subordinates are deprived of the expert advice and
moral support of their leader.

Likerts Four Systems of

Management
System 1 (Exploitative Autocratic) Manager has
no trust or confidence in subordinates and
subordinates do not feel free with their superior.
System 2 (Benevolent Autocratic) - Manager has
condescending
trust
and
confidence
but
subordinates do not feel very free with their
superior.
System 3 (Participative) - Manager has
substantial but not complete trust and confidence
and subordinates rather feel free with their
superior.
System 4 (Democratic) - Manager has complete
trust and confidence in subordinates in all

Managerial grid
It describes the relationship between the leader's concern
for task and concern for people, but this theory differs in its
perspective. The managerial grid Considers leadership
style based on their focus on task and people.
The Managerial Grid is based on two behavioural dimensions:
Concern for People This is the degree to which a leader
considers the needs of team members, their interests, and
areas of personal development when deciding how best to
accomplish a task.
Concern for Production This is the degree to which a
leader emphasizes concrete objectives, organizational
efficiency and high productivity when deciding how best to
accomplish a task.

The
Managerial
Grid
(Blake and Mouton)

Managerial grid

Managerial grid
Country
Club
Leadership(1,9)

High
People/Low Production
Produce or Perish Leadership(9,1) High
Production/Low People
Impoverished
Leadership(1,1)

Low
Production/Low People
Middle-of-the-Road Leadership (5,5) Medium
Production/Medium People
Team Leadership(9,9) High Production/High
People

Leadership involving variety of

styles
This concept is also called continuum.
Instead of suggesting a choice between two
extreme styles of leadership autocratic and
democratic, this approach offers a range of styles
with no suggestion of what is right and what is
wrong.
This theory recognizes that which type of
leadership is appropriate depends on leader, the
subordinates and the situation .

Contingency Theory
Incontingency theory of leadership, the success of the
leaderis a function of variouscontingenciesin the form of
subordinate, task, and/or group variables.
The effectiveness of a given pattern ofleaderbehavior is
contingent upon the demands imposed by the situation.
These theories stress using different styles of leadership
appropriate
to
the
needs
created
by
different
organizational situations.
Some important contingencies for companies are listed
below:
Technology
Suppliers and distributors
Consumer interest groups
Customers and competitors
Government
Unions

Qualities of a good leader

A goodleaderhas an exemplarycharacter. It is of utmost
importance that a leader is trustworthy to lead others.
A good leader is enthusiastic about their work or cause
and also about their role as leader.
Agood leaderisconfident. In order to lead and set
direction aleaderneeds to appearconfidentas a person
and in theleadershiprole.
Good leadersare tolerant ofambiguityand remain calm,
composed and steadfast to the main purpose.
Agood leaderas well as keeping the main goal in focus is
able to think analytically.
Agood leaderis committed to excellence. Second best
does not lead to success.
Aleaderalso needs to function in an orderly and
purposeful manner in situations of uncertainty.
Vision courage Integrity Humility - Strategic planning
Focus - Cooperation

Motivation
Motivation is the process of channeling a persons
inner drives so that he wants to accomplish the
goals of the organization.
Motivation is an important factor which
encourages
persons
to
give
their
best
performance and help in reaching enterprise
goals.
of under:
The motivational Interpretation
process is as
Needs(Motives)

goals/ incentives
according to ones
perception

Accomplishment of
goals and need
reduction

Goal directed
Behavior

Six Cs of Motivation..
Challenges

Control

Consequences

Choices

collaboration

Constructing meaning

Basic model of motivation

Needs or
expectations

Result in

Drive force
(Behavior or
Action)

To Achieve

Desired Goals
Feedback
fulfillments

Which Provides

Nature and Characteristics or

Features of Motivation
Motivation is a psychological concept
The whole individual is motivated not part of him
Motivation is an unending process
Individual differ in their motives
Sometimes the individual himself is unaware of his
motive.
Motives change
Motives are expressed differently
Motives are complex
Goal are motivators
Multiple motives make the choice of goals difficult for
an individual.

Importance of Motivation
Puts human resources into action
Improves level of efficiency of employees
Leads to achievement of organizational goals
Builds friendly relationship
Leads to stability of work force
Helps to Change Negative or Indifferent Attitudes
of Employees
Reduction in Resistance to Change

Motivation
Types of motivation theories
Content theories
Human needs and how people with different
needs may respond to different work
situations.
Process theories
How people give meaning to rewards and
make decisions on various work-related
behaviors.
Reinforcement theory
How peoples behavior is influenced by
environmental consequences.

Douglas McGregor's
Theory X And Theory Y
Theory X and Theory Y are two sets of assumptions
about human nature. They describe two contrasting
models of workforce motivation.
Theory X and Theory Y have to do with the perceptions
managers hold on their employees, not the way they
generally behave
The style adopted by a manager in managing his
subordinates is basically dependent upon his
assumption about human behavior.
Douglas McGregor has classified the basic assumption
regarding human nature into two parts and has
designated them as 'theory X and 'theory Y'.
Theory X: This is the traditional theory of human
behavior.
Theory Y: This is the modern theory of human

Theory X
Assumptions of Theory X
The average human being is inherently lazy by
nature and desiresto workas little as possible.
He avoids accepting responsibility and prefers
to be led or directed by some other.
He is self-centered and indifferent to
organizational needs.
He has little ambition, dislikes responsibility,
prefers to be led but wants security.
He is not very intelligent and lacks creativity in
solving organizational problems.
He is, by nature ,resistant to change of any
type.

Theory Y

Assumptions of Theory Y
An average man is not really against doing work.
People can be self-directed and creative at work
if they are motivated properly.
External control and threats of punishment alone
do not bring out efforts towards organizational
objectives.
People have capacity toexerciseimagination
and creativity.
People are not by nature passive or resistant to
organizational needs.
An average human being learns under proper
conditions. He is also willing to accept
responsibility.

Motivation
Types of content theories:
Hierarchy of needs theory( Maslows )
ERG theory( Alderfer )
Two-factor theory( Herzberg)
Acquired needs theory(McClelland)

Hierarchy of needs theory( Maslow's )

Developed by Abraham Maslow.

Maslow's theory is based on theHierarchy of Human
Needs.
According to Maslow,human behavioris related to his
needs.
It is adjusted as per the nature of needs to be
satisfied.
Lower-order and higher-order needs affect workplace
behavior and attitudes.
In hierarchy of needs theory, Maslow identified five
types / sets of human need arranged in a hierarchy of
their importance and priority :
1.
2.
3.
4.
5.

Physiological Needs
Security / Safety Needs
Social Needs
Esteem Needs
Self-actualization Needs

Hierarchy of needs theory( Maslow's

)

Hierarchy of needs theory( Maslow's

)
Individual must satisfy lower-level needs before they
can satisfy higher order needs.
Satisfied needs will no longer motivate.
Motivating a person depends on knowing at what
level that a person is on the hierarchy.
Maslows hierarchy makes sense but little evidence
supports its strict hierarchy. Research
has
challenged the order imposed by Maslows pyramid.
As an example, in some cultures, social needs are
regarded higher than any others.
Little evidence suggests that people satisfy
exclusively one motivating need at a time.

ERG theory( Alderfer )

This theory ,like Maslows theory, describes needs
as a hierarchy. Maslows Five needs have been
condensed into Three needs:
Existence needs-These include need for basic
material necessities. In short, it includes an
individuals physiological and physical safety
needs.
Relatedness needs :Maslows social needs and
external component of esteem needs fall under this
class of need.
Growth needs :Maslows self-actualization needs
and intrinsic component of esteem needs fall under
this category of need.

ALDERFERS THREE NEEDS

Two-factor theory( Herzberg)

It is also known as Herzberg's motivationhygiene theoryandDual-Factor Theory

The Theory states that there are certain factors in

theworkplacethat causejob satisfaction, while a
separate set of factors cause dissatisfaction. In
other words, factors that cause job dissatisfaction
are different from the factors that lead to job
satisfaction.
Hygiene factors- Extrinsic ( Environmental ) factors
that create job dissatisfaction.
Motivation Factors- Intrinsic ( Psychological ) factors
that create job satisfaction.
Attempted to explain why job satisfaction does not
result in increased performance
The opposite of satisfaction is not dissatisfaction
but rather no satisfaction.

Two-factor theory( Herzberg)

Motivati
ng
factors

Hygiene
factors

DAVID MCCLELLANDS
ACQUIRED NEEDS THEORY
McClelland classified three basic motivating needs:
Need for achievement (nACH): The n-ach
person is 'achievement motivated' and therefore
seeks achievement, attainment of realistic but
challenging goals, and advancement in the job
Need for Power (nPWR): The n-pow person is
'authority motivated'. This driver produces a need
to be influential, effective and to make an impact.
There is a strong need to lead and for their ideas
to prevail.
Need for Affiliation (nAFF): The n-affil person
is 'affiliation motivated', and has a need for
friendly relationships and is motivated towards
interaction with other people.

WORK PREFERENCES OF PERSONS HIGH IN

NEED FOR ACHIEVEMENT, AFFILIATION, AND
INDIVIDUAL NEED
WORKPOWER
PREFERENCES
JOB EXAMPLE
High need for
achievement

High need for

affiliation

High need for

power

- Individual
responsibility
- Challenging but
achievable goals
- Feedback on
-performance
Interpersonal
relationships
- Opportunities to
communicate
- Control over other
persons
- Attention
- Recognition

Field sales person

with challenging
quota and
opportunity to
earn individual
bonus
Customer service
representative;
member of work
unit subject to
group wage bonus
plan
Formal position
of supervisory
responsibility;
appointment as
head of special
task force or
committee

Comparison of Maslows, Alderfers, Herzbergs, and

McClellands motivation theories.

Process Theories of
Motivation

Process theories of motivation

How people make choices to work hard or not.
Choices are based on
Individual preferences.
Available rewards.
Possible work outcomes.
Types of process theories
Expectancy theory.
Equity theory.

Expectancy theory
instead of focusing on individual needs, expectancy theories
suggest that people will be motivated when they expect their
efforts will result in desirable outcomes.

This theory states that an individual tends to act

in a certain way based on
the expectation that the act will be followed
by a given outcome and
the attractiveness of that outcome to the
individual.
Key to the theory is understanding employee
goals and the linkages (relationships) between
effort, performance and rewards.

Expectancy Theory
Involves 3 cognitions/perceptions:
1. Expectancy (effort-performance linkage)
The perceived probability that effort will
lead to task performance. (E link)
2. Instrumentality (performance-reward linkage)
The perceived probability that
performance will lead to rewards. ( I link)
3. Valence or Attractiveness of reward
The anticipated value of a particular
outcome to an individual.
Whether employees are motivated or not depends
on their particular goals and their perception of the
level of performance needed to attain those goals.

Simplified Expectancy
Model

Motivation= Expectancy X
Instrumentality X Valence

Managerial implications of expectancy

theory

Equity Theory
First developed in 1963 by John Stacey Adams, a
workplace and behavioral psychologist, the equity
theory is based on the human instinct of comparison
with others.
Equity theory states that employees seek to maintain
equity between the inputs that they bring to a job and
the outcomes that they receive from it against the
perceived inputs and outcomes of others.
While evaluating fairness, employee compares the job
input (in terms of contribution) to outcome (in terms of
compensation) and also compares the same with that
of another peer of equal cadre/category. O/I ratio
(output-input ratio) is used to make such a comparison.

Equity Theory
The persons, system or selves against which
individuals compare themselves are known as
Referents.
Referents can be classified as:
1. Persons
2. Systems
3. Self
Managerial implications of equity theory
Underpaid people experience anger.
Overpaid people experience guilt.
Perceptions of rewards determine motivational
outcomes.
Negative consequences of equity comparisons
should be minimized, if not eliminated.
Do not underestimate the impact of pay as a source
of equity controversies in the workplace.

B.F. SKINNERS
REINFORCEMENT THEORY
According to this theory, past actions and their
outcomes influence a persons present and future
actions.
Past behaviors associated with positive outcomes
are repeated in future and behaviors associated
with negative outcomes are not repeated.
Therefore, the behavior of a person is not
influenced by his inner needs and desires but by
the external environment.

KINDS OF REINFORCEMENTS
1.Positive Reinforcement such as a pay raise
or promotion, is provided as a reward for
positive behavior with the intention of
increasing the probability that the desired
behavior will be repeated.
2.Negative Reinforcement is an attempt to
show an employee what the consequences of
improper behavior will be. If an employee does
not engage in improper behavior, he or she
will not experience the consequence.
3.Punishment such as suspensions, threats
,etc, is an attempt to decrease the likelihood
of a behavior recurring by applying negative
consequences.
4.Extinction Behavior is basically ignoring the
behavior of a subordinate and not providing
either positive or negative reinforcement.

Communication
the

process of exchange of information, ideas and

opinions which bring about integration of interests
aims and efforts among the members of a group
organized for achievement of predetermined goals.
Elements of Communication
Sender
Message
The subject matter of communication
Encoding act of translating message in to words,
pictures, symbols
Channel Media used
Receiver
Decoding - Converts symbols ,words, pictures in to
meaning
Feedback

Communication Process

Communication
Importance

Communicationpromotesmotivationby informing and clarifying the

employees about the task to be done, the manner they are performing the
task, and how to improve their performance if it is not up to the mark.
Communication is asource of informationto the organizational members
for decision-making process as it helps identifying and assessing alternative
course of actions.
Communication also plays a crucial role inaltering individuals attitudes,
i.e., a well informed individual will have better attitude than a less-informed
individual. Organizational magazines, journals, meetings and various other
forms of oral and written communication help in moulding employees
attitudes.
Communication alsohelps in socializing. In todays life the only presence
of another individual fosters communication. It is also said that one cannot
survive without communication.
Communication also assists incontrolling process. It helps controlling
organizational members behavior in various ways. There are various levels
of hierarchy and certain principles and guidelines that employees must
follow in an organization. They must comply with organizational policies,
perform their job role efficiently and communicate any work problem and
grievance to their superiors. Thus, communication helps in controlling
function of management.

Purpose of Communication

Purpose of Communication
Communication is needed in the recruitment process to
persuade potential employees of the merits of working for
the enterprise.
Communication needed in the area of orientation to make
people acquainted with peers, superiors and with company
rules and regulations.
Communication is needed to enable employees to perform
functions effectively.
Evaluate the contribution of subordinates in the enterprise
activity.
Communication is needed to teach employees about
personal safety on the job.
Communication is of vital importance in projecting the image
of an enterprise in the society.
Communication helps
the manager
in decision
making,coordination,cooperation process.
Communication increases managerial efficiency.

Communication(Formal and Informal)

Definition formal
The communication in which the flow of information is
already defined is termed as Formal Communication.
The communication follows ahierarchical chain of command
which is established by the organization itself.
Example:Requests, commands, orders, reports etc
Definition Informal
The communication which does not follow any pre-defined
channel for the transmission of information is known as
informal communication.
This type of communication moves freely in all directions, and
thus, it is very quick and rapid.
Example:Sharing of feelings, casual discussion, gossips, etc.

Types of Communication(Formal)
Downward communication
Downward communication flows from people at higher level to
those at the lower levels in the organizational hierarchy.
The purpose of downward communication is to communicate
policies, procedures, programs and objectives and to issue
orders and instructions to subordinates.
Upward communication
Upward communication travels from subordinates to superiors.
Upward communication is generally nondirective.
Typical means of upward communications are suggestion
systems, appeal and grievance procedures, complaint systems
etc.
Horizontal communication
It refers to transmission of information among positions of the
same level.
Horizontal communication helps to coordinate the activities of
different departments

Types of
Communication(Informal)
Single Strand Chain
The communication in which one person tell something to another,
who again says something to some other person and theprocess
goes on.
Cluster Chain
The communication in which one person tells something to some of
its most trusted people, and then they tells them to their
trustworthyfriends and the communication continues.
Probability Chain
The communication happens when a person randomly chooses some
persons to pass on the information which is of little interest but not
important.
Gossip Chain
The communication starts when a person tells something to a group
of people, and then they pass on the information to some
morepeople and in this way the information is passed on to
everyone.

BASIS FOR
COMPARISON
Meaning

Another Name
Reliability
Speed
Evidence

Time Consuming
Advantage

Disadvantage
Secrecy

FORMAL
COMMUNICATION
A type of verbal
communication in which
the interchange of
information is done
through the pre-defined
channels is known as
formal communication.
Official Communication
More
Slow
As the communication is
generally written,
documentary evidence is
present.
Yes
Effective due to timely
and systematic flow of
information.

Distortion due to long

chain of communication.
Full secrecy is
maintained.

INFORMAL
COMMUNICATION
A type of verbal
communication in which
the interchange of
information does not
follow any channels i.e.
the communication
stretches in all directions.
Grapevine communication
Comparatively less
Very Fast
No documentary
evidence.

No
Efficient because
employees can discuss
work related problems,
this saves time and cost
of the organization.
Spread of rumors
It is difficult to maintain
the secrecy.

Forms of communication
Oral communication
In oral or verbal communication, information is given
directly, either face to face or through a telephone or
intercom system.
Generally in meeting, lecturers, interviews, conferences
etc., the communication is oral.
Written communication
Written communication is always in black and white and
may be in the form of a report, statement, circular, manual,
handbook, letter or memo.
Non-verbal communication
Non-verbal communication is expressed through the body
the facial expression, posture, gestures etc.

Barriers to Communication
Barrirs

Identified Problems

Semantic Barriers

Badly Expressed Message

Symbols or Words with Different
Meanings
Faulty Translation
Unclarified Assumptions
Technical Jargon
Body Language and Gesture
Decoding

Psychological or Emotional
Barriers

Premature Evaluation
Lack of Attention
Loss by Transmission and Poor
Retention
Distrust

Organizational Barriers

Organizational Policies, Rules and

Regulations
Status, Complexity in
Organizational Structure

Principles of effective communication

Clarity of Purpose - The message to be delivered must be clear in
the mind of sender.
Completeness- The message delivered should not be incomplete.
It should be supported by facts and observations.
Conciseness - The message should be concise. It should not
include any unnecessary details.
Feedback - Whether the message sent by the sender is understood
in same terms by the receiver or not can be judged by the
feedback received.
Empathy - Empathy with the listeners is essential for effective
verbal communication.
Modify the message according to the audience- The information
requirement by different people in the organization differs
according to their needs.
Multiple Channels of communication - For effective
communication multiple channels should be used as it increases
the chances of clarity of message.
Make effective use of Grapevine - The employees and managers
should not always discourage grapevine.

Coordination & Cooperation

Coordination deals with the task of blending efforts in
order to ensure successful attainment of an objective. It is
accomplished by means of planning, organizing directing
and controlling.
It is the orderly synchronization or fitting together of the
independent efforts of individuals to attain a common goal.
Coordination is an orderly arrangement of group efforts to provide
unity of action in the pursuit of common objectives.
It is a process of deliberately bringing together the efforts of
various components of an enterprise in order to give them unity of
purpose.

Cooperation denotes the collective efforts by the persons

working in the enterprise voluntarily for accomplishing a
particular purpose. It is the willingness of the individuals to
help each other.

Basis

Co-ordination

Co-operation

Meaning

It is an orderly arrangement of
group efforts in pursuit of common
goals.

It means mutual help

willingly.

Scope

It is broader than co-operation

which includes as well because it
harmonizes the group efforts.

It is termed as a part of coordination.

Process

The function of co-ordination is

performed by top management.

The functions of cooperation are prepared by

persons at any level.

Requirement Co-ordination is required by

s
employees and departments at
work irrespective of their work.

Co-operation is emotional
in nature because it
depends on the willingness
of people working together.

Relationship It establishes formal and informal

relationships.

It establishes informal
relationship.

Freedom

It is planned and entrusted by the

central authority & it is essential.

It depends upon the sweet

will of the individuals and
therefore it is not
necessary.

Support

It seeks wholehearted support from Co-operation without covarious people working at various
ordination is fruitless &
levels.
therefore it may lead to
unbalanced developments.

Features or Characteristics of
Coordination
Not a separate function of management
Managerial responsibility
Unity of action
Coordination is part of all levels of organization
It is relevant to group efforts
Continuous and dynamic process
System concept

Need and Importance of

coordination
Unity in diversity
Team work
Functional differentiation
Specializations
Reconciliation of goals
Large number of employees
Empire building
Communication
Interdependency

Techniques of coordination
Clearly defined objectives
Each and every organization has its own objectives. These
objectives would be clearly defined. Then the employees of all
the organization should understand the objectives of the
organization well.
Effective chain of command
There is a line of authority in every enterprise which indicates
as to who is accountable to whom.
Clear cut authority relationship help in reducing conflicts
among different positions, particularly line and staff which is
essential for sound coordination.
Coordination through committees
Committee or participative group decision making is another
common coordinating device.
This helps in reducing the rigidity of hierarchical structure

Techniques of coordination
Harmonious rules, policies and procedures
Laying down well defined programmes and policies is
another measure for achieving effective coordination.
This brings uniformity of actions because everybody
understands the programmes and policies in the same
sense.
Effective communication
It is necessary for proper coordination.
The individual and departmental problems can be solved
with the help of coordination.
The efforts of the staff are effectively utilized to achieve
the objectives of the organization.
Sound organizational structure
It integrates the activities of
different units of the
organization resulting better coordination.

Techniques of coordination
Coordination through a liaison officer
A person who acts as a link between two persons is called a
liaison officer.
The external coordination is obtained through him.
Many large organizations depend on this officer to maintain
cordial relations with government and outsiders.
In some cases, where there is a large volume of contact
between two departments, a liaison department evolves to
handle the transactions.
Incentives
Incentives may be in the form of increments in the scale of pay,
bonus, profit sharing etc.
These schemes of incentives promote better team spirit which
subsequently ensures better coordination.
In particular, profit sharing promotes team spirit and better
cooperation between superiors and subordinates, between
employees and employers.

Principles or Essentials or Requisites

of effective Coordination
Early start
Direct contact
Continuity
Dynamism
Simplified organization
Self coordination
Clear cut objectives
Clear definition of authority and responsibility
Effective supervision & leadership
Effective communication

Types of coordination
Scope on the basis of scope or coverage, co-ordination can be.
Internal refers to co-ordination between the different units of an
organization within and is achieved by integrating the goals and activities
of different departments of the enterprise.
External refers to co-ordination between an organization and its external
environment comprising government, community, customers, investors,
suppliers, competitors, research institutions, etc.
It requires proper match between policies and activities of the enterprise
and the outside world.

Flow on the basis of flow, co-ordination can classified into:

Vertical implies co-ordination between different levels of the organization
and has to ensure that all the levels in the organization act in harmony and
in accordance with the goals and policies of the organization. Vertical coordination is assured by top management through delegation of authority.
Horizontal or lateral refers to co-ordination between different
departments and other units at the same level of the management
hierarchy.
For instance, co-ordination between production department and marketing
department is horizontal or lateral co-ordination.

Controlling
A process of monitoring performance and taking action
to ensure desired results.
It sees to it that the right things happen, in the right
ways, and at the right time.
Done well, it ensures that the overall directions of
individuals and groups are consistent with short and
long range plans.
It helps ensure that objectives and accomplishments are
consistent with one another throughout an organization.
It
helps
maintain
compliance
with
essential
organizational rules and policies.
Control consists in verifying whether everything occurs in
conformity with the plan adopted, the instructions issued
and the principles established. Its object is to find out the
weakness and errors in order to rectify them and prevent
recurrence. It operates on everything, i.e., things, people
and actions .

Controlling
Control is checking current performance against
predetermined standards contained in the plans, with
the view to ensuring adequate progress and
satisfactory performance.
, Controlling is determining what is being
accomplished, that is, evaluating the performance
and if necessary applying corrective measures so
that the performance takes place according to plans.
Steps Controlling
Establish objectives and standards.
Measure actual performance.
Compare results with objectives and standards.
Take necessary action.

Establishment of standards
The first step in control process is the setting up of
standards of performance.
A standard acts as a reference line or a basis of actual
performance.
Standards should be set precisely and in quantitative
terms.
Standards are used as the criteria or benchmarks by which
performance is measured in the control process.
planning is the basis of control.
Different types of standards used are:
Physical standards such as units of production per hour.
Cost standards, such as direct and indirect cost per unit.
Revenue standards such as sales per customer.
Capital standards such as rate of return of capital invested.
Intangible standards such as competency of managers and
employees.

Measuring and comparing actual performance

with standards
The second step in the control process is measuring the
actual performance of individuals, group or units and
comparing it with the standards.
The quantitative measurement should be done in cases
where standards have been set in numerical terms
This will make evaluation easy and simple.
In all other cases, the performance should be measured in
terms of qualitative factors as in the case of performance of
industrial relations manager.
In general, measurement of performance can be done by
personal observation as in the case of the subordinates being
observed while they are engaged in work or by a study of
various summaries of figures, reports, charts and statements.
The measurement and comparison are to be made at various
stages in the total process and not at the end.

Take necessary action

The final step in the control process is taking corrective
action so that deviations may not occur again and the
objectives of the organization are achieved.
This will involve taking certain decisions by the
management like re-planning or redrawing of goals or
standards, reassignment or classification of duties.
It may also necessitate reforming the process of
selection and training of workers.
This control function may require change in all other
managerial functions.
If the standards are found to be defective, they will be
set up again in the light of observations.

Essentials of sound control

system

Suitable: The control system should be

appropriate to the nature and needs of the activity.
Timely and forward looking: The control system
should be directed towards future. It should report
all the deviations from the standards quickly in
order to safeguard the future.
Objective and comprehensible: The control
system
should
be
both
objective
and
understandable. Objective controls specify the
expected results in clear and definite terms and
leave little room for the argument by the
employees.
Flexible: Control system should be flexible so that it
can be adjusted to suit the needs of any change in the
environment.

Essentials of sound control

system

Economical: Another requirement of a good control system is

economy. The benefits derived from the control system should be
more than the cost involved in implementing it.
Motivation: A good control system should be employee centered.
The control system is designed to secure positive reactions from
employees.
If large deviations are found, the employees will be properly
directed and guided instead of being punished. The very purpose
of a control is prevention and not punishing.
Control by exceptions This is also known as management by
exception according to this principle, only significant deviations
from standards, whether positive or negative requirement
management as they constitute exceptions.
An attempt to go through all deviations tends to increase
unnecessary work and decrease attention on important problems.

Essentials of sound control

system
Prescriptive and operational:
A control system in order to be effective and
adequate, must not only detect deviations, but
should also provide solutions to the problems that
cause deviations.
Acceptable to organization members:
The system should be acceptable to organization
members.
When standards are set unilaterally by upper
level managers, there is a danger that employees
will regard those standards of unreasonable or
unrealistic.
They may then refuse to meet them.

Features or Characteristics of Controlling Function

Controlling is an end function-A function which comes

once the performances are made in conformities with
plans.
Controlling is a pervasive function-which means it is
performed by managers at all levels and in all type of
concerns.
Controlling is forward looking-because effective control
is not possible without past being controlled. Controlling
always look to future so that follow-up can be made
whenever required.
Controlling is a dynamic process-since controlling
requires taking reviewable methods, changes have to
be made wherever possible.
Controlling is related with planning-Planning and
Controlling
are
two
inseparable
functions
of

Methods / Techniques of Control

Past oriented control and future oriented control
techniques.
Market oriented control, Bureaucratic control,
clean control techniques.
Old control and New control techniques

Past oriented control techniques

Past-oriented control measure results after the
process.
These are also known as post action controls.
They examine what has happened in the past for
a particular period.
Examples of past-oriented controls are
accounting records, school grade reports etc.
These controls are used to plan future behavior in
the light of post errors or successes.
They can also be used for rewarding, disciplining,
training or promoting individuals.

Future oriented control techniques

These are also known as feed-forward controls or
steering controls.
These controls are designed to measure results
during the process, so that action can be taken
before the job is done or the period is over.
Feed-forward control serve as warning-posts
principally to direct attention rather than to
evaluate examples of such controls are cash flow
and funds flow analysis, network planning etc
which help managers to see that they will have
problems in such areas of cash or on time delivery
unless they take prior action.

Market oriented control, Bureaucratic control, clean

control techniques.
Market oriented control: establish control by drawing
comparison of prices and profits of previous years or of
other organization.
Example: profit organizations operating in a competitive
environment
Bureaucratic control: such as rules, policies , hierarchy
of authority , operating budgets and periodical reports
,establish control by requiring employees to comply with
them.
Example: Non profit organizations where prices and
competitive markets do not exists.
clean control
:establish control by generating trust,
tradition, commitment, and shared belief.
Example: small family owned organizations.

Traditional techniques
1.
2.
3.
4.
5.
6.
7.
8.

Personal observation
Budgeting
Break-even analysis
Financial statement
Statistical data & report
Setting examples
Standard costing
Written instructions

PERSONAL OBSERVATION
This is the most traditional method of
control.
It helps managers to collect first hand
information.
It also creates a psychological pressure on
the employees to perform well as they are
aware that they are being observed
personally on their job.
How ever it is very time consuming , & not
suitable for all kinds of jobs.

BUDGETING
Meaning A budget
is a statement which
reflects
future
incomes
,expenditures & profits of the firm.
Benefit of budgeting1. Standards of performance
2. Planning
3. Predicting the future
4. Financial planning

BREAK EVEN ANALYSIS

It deals with the study of the relationship
between costs, volume, & profit.
It determines the probable profit and
losses at different levels of activity.
The sales volume at which there is no
profit, no loss is known as breakeven
point.
It can be calculated as ,
Breakeven point=fixed cost/selling price
per unit variable cost per unit

FINANCIAL STATEMENT
Financial statements shows financial position of
a firm over a period of time, generally one year.
These are prepared along with last year
statements, so that firm can compare its
present
performance
with
last
years
performance & improve its future performance.
It offers information on ,
1. Liquidity
2. Financial strength
3. profitability

STATISTICAL DATA &

REPORT
Statistical analysis in the form of
averages, percentages, ratios,..etc.
Data can be used for diagrammatic
representations like histograms, pie
chart, bar graphs..etc.

A report

is a statement that
represents data in the form of
information for carrying out the
controlling function.

SETTING EXAMPLES
It is old saying that example is
better than precepts
Some managers follow this and put
good examples of performance
before subordinates and expect the
same from them.
Behavior and actions of subordinates
can be controlled through exemplary
behavior of the manager.

STANDARD COSTING
It is a technique of cost control.
Under this technique ,standard costs of
material, labor, overheads etc. are
determined.
Actual cost are recorded and compared
with the standard costs and variances
are found out.
Then measures are taken to prevent
variances in future.

WRITTEN INSTRUCTIONS
These instructions are issued time to
time to the organization members.
These provide latest information and
instructions in the light of changing
rules and conditions.
These are supplementary control
technique.

MODERN TECHNIQUES
1. Return on investment.
2. Management audit.
3. Management information system
(MIS).
4. PERT/CPM.

RETURN ON INVESTMENT
Investment consists of fixed asset
andworkingcapital used in business.
Profit on the investment is a reward for
risk taking.
If the ROI is high then the financial
performance of a business is good and
vice-versa.
It also shows the areas where
corrective actions are needed.

MANAGEMENT AUDIT
Management Audit is an evaluation of the
management as a whole. It critically
examines the fullmanagement process.
It finds out the efficiency of the
management.
Management auditingis conducted by a
team of experts.
The data is analyzed and conclusions are
drawn about managerial performance and
efficiency.

MANAGEMENT INFORMATION
SYSTEM
In order to control the organization properly
the
management
needs
accurate
information.
Information is collected continuously to
identify problems and find out solutions.
They
need
information
about
the
internalworkingof the organization and
also about the external environment.
MIS collects data, processes it and provides
it to the managers.

PERT/CPM
Programme Evaluation and Review Technique
(PERT) and Critical Path Method (CPM)
techniques were developed in USA in the late
50's.
Any programme consists of various activities
and sub-activities.
Importance is given to identifying the critical
activities.
by controlling the time of the critical activities,
the total time and cost of thejobare minimized.

BASIS
FOR
COMPARIS
ON

PERT

CPM

Meaning

PERT is a project
management technique,
used to manage uncertain
activities of a project.

CPM is a statistical
technique of project
management that
manages well
defined activities of
a project.

What is it?

A technique of planning
and control of time.

A method to control
cost and time.

Focus on

Event

Activity

Management
of

Unpredictable
(Probabilistic model)

Predictable
activities
(Deterministic
concept )

Suitable for

Research and Development Non-research

Project
projects like civil
construction, ship
building etc.

VTU Questions
1) Define directing and list out the principles of direction 4M Jul- Dec -08
2) What is directing? Explain the importance of directing 5M Jul-09
3) Define direction and brief about the main five requirements of effective direction 5M
Jul-12
4) What are the features of motivation?5M Jul- 14
5) What is motivation? Explain the characteristics Show motivation by means of
diagram10M .Jul- 12Dec-08
6) Explain McGregor theory X and theory Y.5M Jul-14 ,10 Dec7) Explain Maslow's and Herzberg theories of human motivation.10M Jul-15,12,10 Dec
15,14,13,12,11,09
8) Define leadership. What are the basic styles of leadership? Explain each in brief.
10M Jul-14
9) What are the qualities of a good leader? Jul- 09 Dec-13
10)Compare autocratic,democratic,free-rein leadership styles5M Jul-13,10,09
11)Are Leaders made or born Justify 10M Jul- Dec- 09
12)Explain the importance of leadership in organization 7M Jul-11
13)Discuss all the steps involved in a control process .10M Jul-16,12,10 Dec 12,11
14)Explain various methods of establishing control 10M Jul-13,10
15)Briefly explain the essentials of sound control system .5,10M Jul- 15, 11 Dec
15,13,08
16)What are the purposes of communication in an organization ? 10 M July 16,15
17)Explain the importance of communication 5M Jul-09,Dec-11
18)What are the barriers of successful communication?5M Jul-11