Unit 3: Directing & Controlling

DIRECTING & CONTROLLING 

Directing is the process of guiding, supervising, motivating, and leading employees to achieve organizational goals.

Directing means instructing, guiding, and motivating people in the organization to work efficiently.

Simple meaning: Directing = guiding people to do their work properly.

Principles of Directing

1. Harmony of objectives – employee and company goals should match
2. Unity of command – one boss for one employee
3. Direct supervision – regular monitoring
4. Effective communication – clear messages
5. Motivation – incentives, rewards
6. Leadership – influence and guidance
7. Follow-through – continuous supervision
8. Use of informal organization – build relationships

MOTIVATION

Motivation means encouraging people to work willingly with high energy and commitment.

Simple meaning: Motivation = “why a person behaves in a particular way.”

Need and Importance of Motivation

1. Improves performance
2. Increases productivity
3. Encourages employees to work willingly
4. Reduces absenteeism and turnover
5. Builds positive attitude
6. Improves teamwork
7. Helps in achieving organizational goals
8. Boosts job satisfaction

Theories of Motivation

1. Maslow’s Need Hierarchy Theory

Maslow proposed five levels of human needs:

1. Physiological – food, water, shelter
2. Safety – job security, health
3. Social/Belongingness – friendship, support
4. Esteem – recognition, status
5. Self-actualization – achieving full potential

Employees move step by step from lower to higher needs.

2. Herzberg’s Two-Factor Theory

Two factors affect motivation:

A. Hygiene Factors (prevent dissatisfaction)

• Salary
• Company policy
• Working conditions
• Job security

B. Motivators (create satisfaction)

• Achievement
• Recognition
• Responsibility
• Growth opportunities

3. McGregor’s Theory X and Theory Y

Theory X (negative view)

• Employees dislike work
• Need strict supervision

Theory Y (positive view)

• Employees enjoy work
• Are self-motivated
• Want responsibility

McClelland’s Needs Theory

Three major needs:

1. Need for Achievement (nAch)
2. Need for Power (nPow)
3. Need for Affiliation (nAff)

LEADERSHIP

Leadership is the ability to influence and guide others toward achieving goals.

Simple meaning: Leadership = leading people with influence.

Need and Importance of Leadership

1. Provides direction
2. Improves coordination
3. Builds confidence among employees
4. Motivates employees
5. Brings change smoothly
6. Improves productivity
7. Creates teamwork

Leadership Styles

1. Autocratic (Authoritarian)

• Leader makes decisions alone
• Strict control
• Suitable for emergencies

2. Democratic (Participative)

• Employees participate in decisions
• Good for teamwork

3. Laissez-Faire (Free Rein)

• Complete freedom to employees
• Leader acts as a guide only

4. Transformational

• Inspires and motivates employees
• Visionary leader

5. Transactional

• Uses rewards & punishments
• Focus on task performance

Qualities of an Effective Leader

1. Good communication skill
2. Integrity & honesty
3. Confidence
4. Decision-making ability
5. Empathy
6. Vision & foresight
7. Technical knowledge
8. Motivational ability
9. Positive attitude
10. Team-building skill

Controlling

Controlling is the process of monitoring performance, comparing it with planned goals, and taking corrective action.

Simple meaning: Controlling = checking whether work is done correctly.

Importance of Controlling

1. Ensures achievement of goals
2. Improves efficiency
3. Helps identify deviations
4. Facilitates better planning
5. Ensures optimum use of resources
6. Improves decision-making
7. Maintains discipline

Basic Control Process (Steps of Controlling)

1. Setting standards (measurable targets)
2. Measuring actual performance
3. Comparing actual performance with standards
4. Finding deviation
5. Analyzing the reasons for deviation
6. Taking corrective action

Different Control Techniques

A. Traditional Control Techniques

1. Budgetary Control

• Planning income and expenses
• Helps control financial performance

2. Standard Costing

• Pre-determined costs used for comparison

3. Financial Statements

• Balance sheet
• Income statement

4. Internal Audit

• Checking internal processes regularly

5. Statistical Reports

• Charts, graphs, averages

B. Modern Control Techniques

1. Management by Objectives (MBO)

• Goals set jointly by employee & manager
• Performance measured against goals

2. MIS (Management Information System)

• Computer-based information for decision-making

3. PERT & CPM

• Project control techniques
• Time & cost management

4. Zero-Based Budgeting

• Justify every expense from zero level

5. Benchmarking

• Comparing performance with best industry standards

6. TQM (Total Quality Management)

• Continuous improvement in quality

Quick Revision (For Exams)

Motivation

• Meaning: why people work
• Theories: Maslow, Herzberg, McGregor, McClelland

Leadership

• Meaning: influencing people
• Styles: Autocratic, Democratic, Laissez-faire, Transformational, Transactional

Directing

• Principles: unity of command, motivation, supervision, communication

Controlling

• Steps: standards → measure → compare → deviation → corrective action
• Techniques: Budgeting, MIS, MBO, PERT/CPM, Benchmarking