Principles of Management unit 4 Directing

Principles of Management
Unit 4: Directing
Prepared and presented by,
Ganesha Pandian . N

Content
1. Managing people
2. Communication
3. Hurdles to effective communication
4. Organizational culture
5. Elements and types of culture
6. Managing cultural diversity
MSM-MBA Odd Semester 2

• The process of influencing people so that they
will contribute to organizational and group goals
• Managing requires the creation and maintenance
of environment in which individuals work
together toward the accomplishment of common
objectives
Leading

1. Multiplicity of role
2. No average person
3. The importance of personal dignity
4. Consideration of whole person
Human factors in Managing

• Human motives – based on needs
(basic/psychological needs) – water, air, food,
sleep
• Motivation – a general term applying to the
entire class of drives, desires, needs, wishes
and similar forces
Motivation

I. Mc Gregor's theory X and theory Y
Two sets of assumptions about the nature of people
Neutral terminology without any connotation of
being “good” or “bad”
Models of motivation
Contd…

• Dislike of work, people must be coerced,
controlled, directed and threatened with
punishment
• People need to be directed, wish to avoid
responsibility, little ambition and so on.
Theory X Assumptions
Contd…

• People will exercise self-direction and
self-control
• Degree of commitment to objectives
• Size of rewards associated with their
achievements
Theory Y Assumptions

1. Physiological needs
2. Security/safety needs
3. Affiliation or Acceptance needs
4. Self-Esteem needs
5. Self- actualization needs
II. Maslow’s hierarchy of need theory

• People are motivated by existence
needs, relatedness needs and growth
needs.
• By Clayton Alderfer – existence of three
categories of needs
III. Alderfer’s ERG theory

• Dissatisfiers, also called maintenance, hygiene
or job control factors are not motivators
• While satisfiers are motivators and are related
to job content
Two hygiene factor theory: Maintenance
factors and motivators
IV. Herzberg’s motivation-hygiene theory

• People will be motivated to do things to reach a
goal if they believe in the worth of that goal
and of they can see that why they do will help
them in achieving it
• Force = Valence * Expectancy
V. Vroom’s Expectancy theory

• Lyman W. Porter and Edward E. Lawler derived a
substantially more complete model of motivation
• The amount of effort depends on the value of a
reward plus the amount of energy a person believes
is required and the probability of receiving the
reward
VI. Porter and Lawler motivation theory

• Motivation is influenced by an individual’s subjective
judgment about the fairness of the reward he or she gets,
relative to the inputs, compared with the reward of
others
• J. Stacy Adams formulated the motivation model as:
Outcomes by a person = Outcomes by another person
Input by a person Input by another person
VII. Equity theory
Contd…

Balance or
Imbalance of
rewards
Inequitable
reward
Equitable
reward
More than
equitable reward
Dissatisfaction
Hard work
Reward
discontinued
Continuation of
same work

• For objectives to be meaningful, they
must be clear, attainable and verifiable
• To gain commitment of achieving the
goals, true participation in setting them is
essential
VIII. Goal setting theory of motivation

• The psychologist B.F. skinner – developed interesting
and controversial theory of motivation
• Positive reinforcement or Behavior modification –
individuals can be modified by proper design of their
work environment and by praise for their
performance, while punishment for poor
performance produces negative results
IX. Skinner’s reinforcement theory

• David Mc Clelland has contributed to the
understanding of motivation by identifying
three types of basic motivating needs
• The basic motivating needs are the need for
power, need for affiliation and need for
achievement
X. Mc clelland’ needs theory of motivation

• Leadership and motivation are closely
interconnected
Definition : Leadership – The art or process of
influencing people. So that they will strive
willingly and enthusiastically toward the
achievement of group goals
Leadership

• Power; a fundamental understanding of
people; the ability to inspire followers to
apply their full capabilities; the leader’s
style and the development of a
conducive organizational climate
Ingredients of leadership

• Since people tend to follow those who offer them
a means of satisfying their personal goals, the
more mangers understand what motivates their
sub ordinates and the more they reflect this
understanding in their actions, the more effective
they are likely to be as leaders
Principle of leadership

Trait Approaches to leadership:
Many traits related studies have been made.
Ralph M. Stogdill found that various
researchers had identified specific traits
related to leadership ability
Various approaches of leadership
Contd…

• 5 Physical traits: such as energy, appearance, height and
so on. Four intelligence and ability traits
• 16 personality traits: adaptability, aggressiveness,
enthusiasm, and self confidence and so on
• 6 task related characteristics: achievement drive,
persistence, and initiative
• 9 Social characteristics: cooperativeness, Interpersonal
skills and administrative ability

• Studies done by Robert J. House – charismatic leaders may
have certain characteristics viz;
1. Self confidence
2. Having strong convictions
3. Articulating a vision
4. Being able to initiate change
5. Communicating high expectations and so on.
Charismatic leadership Approach

1. Leadership based on the use
of authority
2. The managerial grid
Leadership Behavior and styles

1. Autocratic leader – commands and expects compliance,
is dogmatic and positive and leads by the ability to
withhold or give rewards and punishment
2. Democratic or participative leader – consults with sub
ordinates and encourages their participation
3. Free Rein leader – uses power very little if at all, giving
subordinates a high degree of independence
Styles based on use of Authority

• A well known approach to define leadership
styles is the managerial grid – developed by
Robert Blake and Jane Mouton
• Has been used throughout the world as a
means of training managers and of identifying
various combinations of leadership styles
The Managerial Grid

The Grid dimensions
9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9
7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9
2 dimensions – concern for people and concern for production
Concern
for
people
Concern for production

 (1.1) Management Exertion of minimum effort is required to get
work done and sustain organization morale
 (9.1) Management efficiency results from arranging work in such a
way that elements have little effects
 (5.5) Management adequate performance through balance of work
requirements and maintaining satisfactory morale
 (9.9) Management work accomplished is from committed people
with interdependence through a common stake in organization
purpose and with trust and respect
Four Extreme styles

• Leadership involves a variety of style, ranging
from one that is highly boss centered to one
that is highly sub-ordinate centered
• The continuum theory recognizes that the
appropriate style of leadership depends on
the leader, the followers and the situation
Leadership as a continuum

• Fred E. Fiedler and his associates at the
university of Illinois – Contingency theory of
leadership
• Theory states that people become leaders not
only because of their personality attributes but
also because of various situational factors and
the interactions between leaders and group
members
Contingency theory of leadership

1. Position power
2. Task structure
3. Leader – members relations
Based on the dimensions, the
leadership measured on situation
Critical Dimensions of the leadership situation

• Path goal theory – the main feature of
the leader is to clarify and set goals with
sub-ordinates, help them find the best
path for achieving the goals, and move
obstacles.
The path goal approach to leadership
effectiveness
Contd…

Illustration of Path-goal approach
Functions
of leader
Characteristic of
Sub ordinates
Leader
Behavior
Work
Environment
Motivated
Sub ordinates
Effective
Organization
Contd…

• This theory categorizes leader behavior into four groups:
1. Supportive leadership behavior: gives consideration to the
needs of subordinates
2. Participative leadership: allows subordinates to influence
the decision of superiors
3. Instrumental leadership: gives sub ordinates rather specific
guidance and clarifies what is expected of them
4. Achievement oriented leadership: involves setting
challenging goals, seeking improvement of performance

1. Transactional leadership – Identify what needs to be
done to achieve goals, including clarifying roles and
tasks, rewarding performance and providing for
social needs of followers
2. Transformational leadership – articulate a vision,
inspire and motivate followers and create a climate
favorable for organizational change
Transactional and Transformational leadership

• Definition: The transfer of
information from a sender to the
receiver, with the information being
understood by the receiver.
Communication

1. To establish and disseminate the goals of an enterprise
2. To develop plans for their achievement
3. To Organize human and other resources in the most effective
and efficient way
4. To Select, develop and appraise members of the organization
5. To lead, direct, motivate and create a climate in which
people want to contribute
6. To control performance
Purpose of Communication

The Communication Process
Sender of the
message
Use of channel
to transmit the
message
Receiver of
message

Illustration of communication process
Thoughts
Encoding
Noise
Feedback
Transmitti
ng of
message
Reception Decoding
Understani
ng
Sender

• Noise – any thing – whether in the
sender, the transmission, or receiver
that hinders communication
Noise Hindering communication

• Feedback – effective check in communication
• - to make sure whether or not a message has
been effectively encoded, transmitted, decoded
and understood until it is confirmed by feedback
Feedback in communication
Contd…

• The communication process is affected by
many situational and organizational factors
• The communication model provides an
overview of the communication process,
identifies the critical variables and shows their
relationship

• Communication flows in various direction: downward, upward
and crosswise
1. Downward communication: flows from people at higher
levels to those at lower levels in the organization hierarchy
2. Upward Communication: travels from subordinates to
superiors and continues up the organizational hierarchy
Ombudsman – A person assigned to investigate employee
concerns, thus providing a valuable upward communication
link
Communication Flow in organization
Contd…

• Crosswise communication: Includes 1. Horizontal
flow and 2. Diagonal flow
1. Horizontal flow: Information is among people on the
same or similar organizational levels
2. Diagonal flow: Information is among persons at
different levels who have no direct reporting
relationships with one another

Illustration of Information flow in organization
Upward
Down ward
Horizontal
Diagonal

• Written communication – formal
• Advantages – providing records, references and legal
defenses
• Also promote uniformity in policy and procedure and
can reduce cost in some cases
• Disadvantage – ineffective writing and feedback is
not immediate
Written Communication

• Can occur in a face to face meeting or to a large audience
(presentation) – formal or informal
• Advantages – Immediate feedback – speedy interchange
– effect can be noted.
• Disadvantages – does not always save time – costly in
terms of time and money
• Non verbal communication – includes facial expressions
and body gestures
Oral Communication

• Good communication will not happen
by chance
1. Lack of planning
2. Un clarified Assumptions
3. Semantic distortion
4. Poorly expressed messages
5. Communication barriers in
international environment
6. Loss of transmission and poor
retention
7. Poor listening and premature
evaluation
8. Impersonal communication
9. Distrust, fear and Ill treat
10. Insufficient period for adjustment to
change
11. Information overload
Barriers and Breakdowns in Communication

1. Clarify the purpose of the message
2. Use intelligent encoding
3. Consult others’ views
4. Consider receiver’s needs
5. Use appropriate tone and language
6. Ensure creditability
7. Get feedback
8. Consider receivers’ emotions and motivations
9. Listen
Guidelines for Improving Communication

• Listening is a skill that can be
developed
John W. Newstorm and Keith Davis –
proposes 10 techniques
1. Stop talking
2. Put the talker at ease
3. Show the talker that you want to
listen
4. Remove distraction
5. Empathize with the talker
6. Be patient
7. Hold your temper
8. Go easy on arguments and
criticism
9. Ask questions
10. Stop talking !
Tips for improving listening skills

1. Use simple words and phrases
2. Use short and familiar words
3. Use personal pronouns – whenever appropriate
4. Give Illustrations and examples; use charts
5. Use short sentences and paragraphs
6. Use active verbs
7. Avoid unnecessary words
Tips for improving Written communication

1. Use technology – communicating large audiences
2. Tell a story, an anecdote and give examples
3. Pause while you speak (articulate words)
4. Use visual aids, such as diagrams, charts, overheads,
slides and power point presentations
5. Communicate confidence and create trust
6. Body language shows your attitude
7. Take command of any situation – Assertive to handle
Tips for improving Oral communication

1. Telecommunication - transfer of data or information to the
distance place. By using technology, information can be
transmitted within seconds or minutes
2. Teleconferencing: A group of people interacting with each
other by means of audio and video media with moving or
still pictures
3. Instant messaging: shows whether a friend or colleagues is
connected to the internet. If connected, message can be
exchanged instantly
Electronic media

• Culture – a complex while which includes
knowledge, belief, arts, morals, law, customer and
habits acquired by human society
• Organizational culture – defines as the philosophies,
ideologies, value, assumptions, beliefs, expectations,
attitudes and norms that keep an organization
together and are shared by employees
Culture

Levels of culture
National culture
Business Culture
Organizational
/occupational culture
Management

1. National Culture : dominant culture with in the political boundaries
of the nation-state
2. Business culture : represents norms, values and beliefs that pertain
to all aspects of doing business in a culture
3. Occupational culture : norms, values, beliefs, and expected ways of
behaving of people in the same occupational group, regardless of
which organization they work (e.g.) Doctors, Lawyers and
Accountants
4. Organizational Culture: represents beliefs, attitudes and norms
club together and are shared by its employees

1. Mechanical Vs Organic Culture:
Mechanical: exhibits the values of bureaucracy and feudalism
Organic: great deal of emphasis on task accomplished, team
work and formal/informal free flow of communication
2. Authoritative Vs Participative Culture:
Authoritative: Power is concentrated on the leader and
obedience to orders and disciplines are stressed. Any
disobedience is strictly punished
Organizational culture –classification/types
Contd...

• Participative: premised on the nation that people are committed to
the decisions that are participatory made, rather imposed on them.
3. Dominant and subcultures: Many big companies have a dominant
culture and several cells of sub cultures, Which are attached to
different roles, functions and levels.
4. Strong, Weak and Unhealthy cultures:
i) A Strong culture will have a significant influence on employee
behavior manifesting in reduced turnover, lower absenteeism,
increased cohesiveness and positive attitude
Contd…

II. Weak culture: A weal culture is characterized by the presence
of several sub-culture, sharing of few values and behavioral
norms by employees and existence of few sacred traditions
III. Unhealthy culture: Unhealthy culture is politicized internal
environment that allows influential managers to operate
autonomous and resist needed change

• Organizational culture is formed in response to two major
challenges are 1. External adaption and survival 2. Internal
Integration
1. External adaption and survival:
1. Mission and strategy 2. Goals 3. Means 4. Measurement
2. Internal Integration:
1. Language and concepts 2. Group and team boundaries 3.
Power and statuses 4. Reward and Punishment
How is culture created?

1. Culture formation around critical incident – norms and
beliefs arise around the way members respond to
critical incidents
2. Identification with leaders – Leader figures – permit
group members to identify with them and internalize
their values and assumptions
3. Property rights – the right the organization gives to
receive and use organizational resources
Organizational Culture is created from:
Contd..

4. Organization structure – is the formal system of tasks and
authority relationships that an organization establishes to
control its activities
5. Organizational Ethics – are the moral values, beliefs, and rules
that establish the appropriate way for organizational
stakeholders to deal with one another and within the
organizational environment
6. Characteristics of people within the organization – People who
make up the organization

1. Selecting and Socializing Employees
2. Actions of leaders and founders
3. Culturally consistent rewards
4. Managing the cultural network
5. Maintaining a stable workforce
Sustaining the culture

1. Effective control
2. Promotion of Innovation
3. Strategy formulation and Innovation
4. Strong commitment from employees
Performance and satisfaction
5. Performance and satisfaction
Effects of culture

3 approaches in Organizational cultural change
1. Behavioral approach (Pattern of behavior)
2. Competing Values approach (resolving the values
dilemma)
3. Deep assumptions approach (deepest levels of
organization culture)
Changing Organizational culture

• Diversity – dealing with a collective
mixture of differences and similarities
• Includes age, background, education,
function and personality
Managing Diversity

1. Access to a changing market place
2. Large scale business transformation
3. Superior customer service
4. Workforce improvement
5. Total quality
6. Alliances with suppliers and customers
7. Continuous learning
Diversity in work place

1. Prejudice: unjustified negative attitude towards a person
2. Ethnocentrism: a tendency to regard one’s own group, culture or nation
as superior to others
3. Stereotypes: set of beliefs about a group applied to all members of the
group
4. Discrimination: Barring an individual from membership of an
organization
5. Harassment: Verbally or physically abusing an individual
6. Back lash: negative reaction to gaining of power and influence by
members of a under represented power
Barriers in accepting Diversity

• It involves
1. Increasing awareness
2. Increasing diversity skills
3. Cultural Diversity
4. Gender diversity
5. Committing top management to diversity
How to Manage Diversity effectively

• Awareness demands appreciation of diversity as a fact
of organizational life
• Diversity awareness program – strive to increase
awareness of managers and workers
1. Their own attitudes, bias and stereotypes
2. Different perspectives of diverse managers,
subordinates and coworkers
Increasing awareness

• Efforts to increase diversity skills focus
on improving the way the managers and
subordinates interact with each other
Increasing Diversity skills

• Cultural diversity in the workplace
is growing because of globalization
Cultural Diversity

• The feminization of the workforce has
increased substantially – their participation
is increasing
Gender Diversity

• Top Management in organization should also
commit to the diversity of workplace
Committing top management to diversity

Principles of Management unit 4 Directing

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