Management 101DIRECTING

Professor:Mrs. Elizabeth

Aragon

Group 2

Aizell Bernal

Paolo Sunga

Christian Cruz

Paula Sunga

OUTLINE

I. Directing• Definition of DirectingII. Importance of DirectingIII. Characteristics of Directing

• Pervasive Function• Continuous Activity• Human Factor• Creative Activity• Executive Function• Delegate Function

IV. Elements of Direction• Communication• Supervision• Motivation• Leadership

V. Maslow’s Theory of Motivation - Hierarchy of Needs• Self-Actualization• Esteem• Social• Safety• Physiological

VI. Power and Influence in Organization• Classification of Power

1. Legitimate Power2. Expert Power3. Referent Power4. Reward Power5. Punishment Power6. Relationship Power

VII. Directing and LeadershipVIII. Case Study

Directing•Directing- is the process through which a manager communicates with and influences other members of the organization in the pursuit of company objectives.

•Directing is said to be the heart of management process.

•Importance of Directing

• It guides and helps the subordinates to complete the given task properly and as per schedule.

• It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do the best.

• It helps in maintaining discipline and rewarding those who do well.

•Directing involves supervision.

•Directing involves leadership that essentially helps in creating appropriate work environment and build up team spirit.

•Different people perform different activities in the organization.

•Characteristics of Directing1. Pervasive Function

2. Continuous Activity

3. Human Factor

4. Creative Activity

5. Executive Function

6. Delegate Function

Elements of Direction

1. Communication

2. Supervision

4. Leadership

3. Motivation

Communication-

is a basic organizational function, which refers to the process by which a person (known as sender) transmits information or messages to another person (known as receiver).

Importance of Communication

Communication helps employees to understand their role clearly and perform effectively

• It helps in achieving co-ordination and mutual understanding which in turn, leads to industrial harmony and increased productivity.

•Communication improves managerial efficiency and ensures cooperation of the staff.

•Effective communication helps in molding attitudes and building up employees’ morale

•Communication is the means through which delegation and decentralization of authority is successfully accomplished in an organization.

Types of Communication

1. Formal and Informal Communication

2. Verbal and Non-verbal Communication

oral written non-verbal communication

gestural communication

•Supervision

After the employees have been instructed regarding what they have to do and how to do, it is the duty of the manager to see that they perform the work as per instructions.

• Clarifies orders and instructions issued to subordinates and ensures that they have understood and follow these fully.

•Ensures that subordinates have the required facilities to perform their jobs.

•Keeps a watch and guides the activities of subordinates in performing their jobs.

Functions of Supervisor

• Broadens the horizon of his subordinates by making them aware of the wider aspects of their day-to-day work

•Coordinates the work of different subordinates under him.

•Detects errors and omissions and ensures their rectification.

•MotivationMotivation is one of the important

elements of directing.

It requires manager to inspire or induce the employees to act and get the expected result.

Importance of Motivation

•With proper motivation there can be maximum utilization of the factors of production like men, money, material etc.;

•If employees are motivated it will reduce employee turnover and absenteeism.

•Motivation helps in reducing the number of complaints and grievances.

•Leadership

-is the ability to persuade and motivate others to work in a desired way for achieving the goal.

-is the process, which influences the people and inspires them to willingly accomplish the organizational objectives.

Importance of Leadership

•Leadership improves the performance of the employees.

•With continuous support and guidance,

•With friendly and cooperative efforts

•Maslow’s Theory of Motivation – Hierarchy of Needs

•Physiological Needs-are those required to sustain

life, such as:

Physiological Needs

Sleep

Food & Water

Air

•Safety Needs

-in order to be free from the threat of physical and emotional harm.

Such needs might be fulfilled by:

•Living in a safe area•Medical insurance•Job security•Financial reserves

•Social Needs

-are those related to interaction with others and may include:

Friendship

Belonging to a

group

Giving and

receiving

love

•Esteem NeedsInternally motivating esteem needs are those such as self-esteem, accomplishment, and self respect.

External esteem needs are those such as reputation and recognition

•Recognition (external motivator) •Attention (external motivator) •Social Status (external motivator) •Accomplishment (internal motivator) •Self-respect (internal motivator)

•Self-Actualization

-It is about the quest of reaching one's full potential as a person.

•Truth

•Justice

•Wisdom

•Meaning

Applying Maslow's Needs Hierarchy - Business Management Implications

•,

•Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials.

•Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.

•Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.

•Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated.

•Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.

Power and Influence in Organization

Power has been defined as the potential to influence the actions of another person in the direction desired by the influencer.

1. Legitimate Power – This power comes by virtue of a person’s occupying a position in an organization

2. Expert Power – This is capacity to influence which arises from expert knowledge that the influencer has.

3. Referent Power – This is power that comes by virtue of some personal characteristic (“Charisma”) of the person which others identify with.

4. Reward Power – This is power that comes by virtue of a person’s ability to give or withhold resources which are valued by others.

5. Punishment Power – this is power which comes from the capacity to deprive a person of something of value.

6. Relationship Power – This is power which comes from a system of informal personal obligations which has been built up between people.

•Directing and Leadership

The discussion of position and non-position based influence in an organization opens the way to a discussion of manager’s leadership function and style.

•Case Study

METRO MANILA UNIVERSITY

On April 2, 1990, Mr. Rene Roces, Vice President for Finance of Metro Manila University (MMU), was reading the Balance Sheet of March 1990. This was the first time that quarterly financial statements were prepared for MMU- a handiwork of Mr. Aragon, recently appointed Vice President for Administration.

While reviewing the financial statements, however, Mr. Roces noticed that the cash balance was about 50 million so he immediately called Mr. Aragon to a meeting. “Why should the University hold such a large amount of cash? Shouldn’t we invest more in Treasury bills that yield at least 5% more than savings accounts, Mr. Roces asked. Mr. Aragon was surprised by this question and being relatively new on the job, requested some time to study the matter

MR. ARAGONRoy Aragon, 32 years old, was a graduate of

MMU. He had been teaching in the College of Engineering for ten years until he was appointed VP for Administration upon the retirement of the previous incumbent in December, 1989.

Being somewhat young to be Vice President at MMU, he took his new duties seriously. Among the innovations he had pushed for was the preparation of quarterly financial statements of MMU. Previously, the financial statements of the university were prepared only at the end of the year.

MEETING WITH CHIEF ACCOUNTANT AND CASHIER

Mr. Aragon decided to hold a meeting with the Chief Accountant and the Cashier concerning the cash problem. The two officers were older than Mr. Aragon and had served MMU longer. During his first months on the job, Mr. Aragon was impressed by his two subordinates whom he found to be independent minded, professional, and very knowledgeable about the financial affairs of MMU.

During the meeting, the Cashier explained that funds were kept in savings accounts and not in higher yielding securities like Treasury Bills because the latter felt that he needed to keep cash for unforeseen payments. According to the Cashier, the academic units are allocated their budgets at the start of the year. “Once they get their budgets, they assume that we have the cash to be spent by them anytime,” the Cashier continued.

The Chief Accountant, however, informed Mr. Aragon that cash disbursements for certain accounts had a more or less regular pattern. “For example, Trust funds for Scholarships and Professorial Chairs should be invested in higher yielding securities because these funds have definite schedules for payment,” the Chief Accountant said.

The Cashier did not argue with the Chief Accountant’s statement, yet the former insisted that cash disbursements are impossible to predict so that funds should not be “locked-in” investments in securities even for 30-day period. “The practice of keeping our funds in a savings account is a long standing practice and Mr. Tirona (Aragon’s predecessor) had never complained about it,” the Cashier said.

Since it was getting late and no agreement appeared in sight, Mr. Aragon decided to adjourn the meeting and continue discussion on the matter at another meeting the following week.

After the Cashier and the Chief Accountant had left the room, Mr. Aragon wondered why the Cashier was objecting to the idea of investing part of the University’s funds in higher yielding securities, an idea which he personally considered to be meritorious.

Mr. Aragon realized that as Vice President for Administration, he had the authority to make changes in the cash management practices of MMU. At the same time, he realized that the Cashier was one of the most senior and highly respected members of management at MMU. He was not sure what he would do if the Cashier continued to object to the proposed change in the coming second meeting.

Solution to the problem:

THANK YOU!