Chapter 4_Directing and Controlling

8/9/2019 Chapter 4_Directing and Controlling

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Leading and Controlling

Chapter 4


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1. Directing

2. Leadership

3.

Communication4. Controlling

Presentation Outline


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Directing


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Directing is also called management in action.

Concerned with the influencing , guiding, supervising and

inspiring subordinates in planned manner.

Directing


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According to Urwick and Beach," Directing is the

guidance, the inspiration, the leadership of those men

and women that constitutes the real core of theresponsibility of management

According to Koontz and ODonnell, Directing is a

complex function that includes all those activities whichare designed to encourage subordinates to work

effectively and efficiently in both the short and long

run.

Directing


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Process of directing involves the following elements

- Issuing orders and instructions to subordinates

- Guiding, counseling and educating the subordinates- Supervising the work being performed

- Maintaining discipline and rewarding those who perform

efficiently- Motivating and inspiring the subordinates

Directing


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It is an initiating function

It is a continuous process

Directing function is performed by all managers at

every level of organization

Time and effort spent for directing tend to increase as

one moves down the line of authority

Nature ofDirecting


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Directing is a result or action oriented process.

It connects planning, organizing and staffing with

controlling process.

It involves giving an order

Nature ofDirecting


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Directing helps in achieving coordination

It is means of motivation

Directing supplements other managerial functions

Directing helps in coping with changing environment

Directing facilitates order and discipline among

employees

Need and importance of directing


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Leadership


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OUR NATIONAL LEADERS


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Manager Leader

Administers InnovatesA copy An originalMaintains Develops

Focuses on systems & structure Focuses on peopleRelies on control Inspires trust

Short-range view Long-range perspective

Asks how & when Asks what & why

Eye on the bottom line Eye on the horizonImitates OriginatesAccepts the status quo Challenges the status quo

Classic good soldier Own person

Does things right Does the right thing

Characteristics ofManagers Versus Leader


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Leadership is an influence, the art or process ofinfluencing people so that they will strive willingly &

enthusiastically toward the achievement of group goals.

Leadership


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Leadership is not magnetic personalitythat can just as well be a glib

tongue. It is not "making friends and influencing people"that is

flattery. Leadership is lifting a person's vision to higher sights, the

raising of a person's performance to a higher standard, the building ofa personality beyond its normal limitations. .. Peter F. Drucker

Good leaders make people feel that they're at the very heart of things,

not at the periphery. Everyone feels that he or she makes a difference

to the success of the organization. When that happens people feel

centered and that gives their work meaning. Warren Bennis

Leadership and learning are indispensable to each other.

John F. Kennedy

QUOTES ON LEADERSHIP


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Visionary: Communicate AVision, Purposes, Values & Aspirations

Creative: Leadership Required Imagination And Creativity

Passionate: Must Be Problem Solvers And Integrators

Trustworthy: Establishing Trusting Relationship In A Team

Competent: Technical Expertise And Knowledge

Knowledgeable: Must Be Systems Oriented

12QUALITIES OF A GOOD LEADER


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Teacher: Leaders Create Space for Others to Lead

Inclusive: Leaders are Open to New Ideas and Opinions

Collaborative: Establish Collaborative Decision Making Processes ina Setting

Flexible: Responsive to the Face of Change & Peoples Needs

Culturally Global Perspective

Sensitive:

Continuous Leaders Always Are Seeking New Ways to Grow

Learner:

12QUALITIES OF A GOOD LEADER


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Leadership Qualities Needed for Technical

Domains

1. BUSINESS LITERACY

Software operations leaders who are now technology-oriented must

increasingly see themselves as business leaders i.e., To be business

literate

2. TECHNOLOGY VISION

To help their companies compete, leaders of software operations must

establish a compelling, long-range vision for technology investments.

Visionary leaders .

3. CROSS-FUNCTIONAL ORIENTATION

The world of rigid, functional "silos" in most organizations is gone forever.

Software operations leaders must become adept at working with people

performing various functions across the enterprise, including those in

marketing, customer support sales, and so on.


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Domains

4. STRATEGIC PARTNERSHIP MANAGEMENT

The need for organizations to establish partnerships and alliances for

sharing technologies and developing new products will continue to

increase. Managers of software operations will be required to develop

partnership strategies and manage them for success.

5. CUSTOMER RELATIONS

With the move to a competitive, profit-oriented business model in

software, leaders must increasingly interact directly and at higher

executive levels with both prospective and existing customers.

6. TOTAL QUALITY DISCIPLINE

Two factors have increased the urgency of quality improvement at all

levels in the software industry: rapidly growing financial investment in

software systems and products, and the institution of international

software quality standards.


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Domains

7. MARKET DECISIVENESS

Although time-to-market has always been a critical success factor for any

high-technology business, it has become a matter of survival for software

enterprises. In an increasingly competitive market, this "need for speed"

is placing increasing pressure on leaders to accelerate the development

and delivery of new products and services.

8. TECHNICAL TEAMWORK

Most high-technology organizations are moving toward flatter, team-

based work structures. This makes team communication, problem solving,

and decisiveness critical; software leaders must both model and reinforce

these behaviors.


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Domains

9. KNOWLEDGE DEVELOPMENT

Because software is almost exclusively a "knowledge business," software

operations are competitive to the extent that they can attract, retain,

and develop the best technical and marketing talent. Thus, leaders mustprovide development opportunities that will ensure the continued

professional and career growth of individuals and add to the

organization's overall knowledge store. I

10. LE

ADERSHI

P VERS

ATILITY

Software development is getting more diverse and complex on many levels-

business, organizational, cultural, and technological. Managers must

become versatile to lead effectively across different business models and

work settings.


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Leadership: is not ordering other people to follow.

Leadership: is not ignoring the views of other people.

Leadership: is not just a charismatic effect on other people.

Leadership: is not making more profit than the other guy.

Leadership: is situational, and requires the study of alternates.

Leadership: makes happen what other people miss,ideas.

Leadership: needs practice & learning.

Leadership: requires great listening and facilitation.

Leadership


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1) TECHNICAL SKILL:( INVOLVES THINGS)

Refers to persons knowledge of and ability in any type of

process or technique.

2) HUMAN SKILL (CONCERNS PEOPLE)

It is the ability to work effectively with people and to build

team work.

3) CONCEPTUAL SKILL(DEALS WITH IDEAS)

It is the ability to think in terms of modules, frameworks and

broad relationships such as long-range plans.

Types of Skills used by Leaders


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Be gentle and you can be bold; be frugal and you can be liberal; avoid

putting yourself before others and you can become a leader among

men.

- Lao Tzu

1. Positive and Negative Leaders

2. Autocratic, participative and Free-rein Leaders

Behavioral Approaches to Leadership Style


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Depends on the ways leaders approach people to motivate them.

When emphasis is placed on rewards-economic or otherwise-

Positive leadership.

- Positive leadership generally results in higher job satisfaction and

performance.

When emphasis is placed on penalties - Negative leadership.

- It may get acceptable peformance but has high human costs.

1)Positive and Negative Leaders:


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AUTOCRATIC LEADERS

Centralize power and decision making in themselves.

Leaders take full authority and assume full responsibility.

It is negative based on threat and punishments.Advantages:

It is satisfying for leaders.

permits quick decisions .

allows the use of less competent subordinates and provide security and

structure for employees.

Disadvantages:

Employees dislike it as it may create fear and frustration.

Generate strong organizational commitment among employees that

leads to low turnover and absenteeism rates.

2) Autocratic, Participative and Free-rein

Leaders:


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The only test of leadership is that somebody follows.- Robert K. Greenleaf

THE FLOW OF INFLUENCE WITH THREE

LEADERSHIP STYLES


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AUTOCRATIC LEADER

FOLLOWER

FOLLOWER

FOLLOWER


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DEMOCRATIC ORPARTICIPATIVE LEADER

FOLLOWER FOLLOWER FOLLOWER


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FREE-REIN LEADER

FOLLOWER FOLLOWER FOLLOWER


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Style is related to ones model of organizational behavior.

Autocratic model -> tends to produce a negative style.

Custodial model -> somewhat positive.

Supportive and collegial models -> clearly positive.


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1.Ohio State Studies.

2.University of Michigan Studies.

3.Managerial Grid.4.Scandivian.

The first responsibility of a leader is to define reality. The last

is to say thank you.

- Max DePree (The Art of Leadership)

Behavioral theories of Leadership


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A) Initiating structure:-The extent to which a leader is likely to

define and structure his or her role and roles of subordinates in

the search of goal attainment.

B) Consideration:-The extent to which a leader is likely to have job

relationships characterized by mutual trust,respect for

subordinates ideas and regard for their feelings.

1.OHIO State Studies


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A) Employee oriented :- One who emphasizes interpersonal

relations.

B) Production oriented leader :- One who emphasizes technical ortask aspects of the job.

2.University of Michigan Studies


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Tool used by managers for identifying their style.

Highlights multiple dimensions of leadership with respect to

concern for people and concern for production.

The grid clarifies,on two 9-point scales,how the two dimensions

are related.

3. Managerial Grid


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1,9 9,9

5,5

1,1 9,1

CONCERN FOR TASK

CONCE

RN

FOR

PEOPLE

Managerial Grid


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(1,9) - least concern for task and utmost concern for

people.

(9,1) - least concern for people and utmost concern fortask.

(1,1) - least concern for people and least concern for task.

(5,5) - equal concern for task and people.

(9,9) - highest concern for both people and task .

ReferPrevious Slide


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DEVELOPMENT-ORIENTED LEADER

One who values experimentation,seeking new ideas, and

generating and implementing change.

4. Scandinavian


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(i) Consideration (employee orientation)

considerate leaders are concerned about the human needs

of their employees.

try to build teamwork,provide psychological support, and help

employees with their problems.

(ii) Structure (task orientation)

believe in getting results by keeping people constantlybusy,ignoring personal issues and emotion and urging them to

produce.

Use of Consideration and Structure by

Leaders


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CONTINGENCY APPROACHES TO

LEADERSHP STYLE


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The theory that effective groups depend upon a proper match

between a leaders style of interacting with subordinates and the

degree to which the situation gives control and influence to the

leader.

1. Fielder Model


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Leader-member relations:

The degree of confidence,trust,and respect subordinates have in

their leader.

Task structure:

The degree to which job assignments are procedurized.

Leader position power:

Describes the organizational power that goes with the position the

leader occupies.

Leaders Effectiveness


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Focuses on Followers Readiness.

Followers in Leadership effectiveness reflects the

reality that it is the followers who accept or reject the

leader.

Readiness refers to the extent to which people have

the ability an willingness to accomplish a specific task.

2. Hersey and Blanchards Situational

Theory


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Leaders create in-groups and out-groups .

And subordinates with in-groups status will have

higher-performance ratings,less runover.

And greater satisfaction with their superior.

3. Leader Member Exchange Theory


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Personal CompatibilitySubordinate

Competence, and/orExtroverted personality

LEADER

IN-GROUPS OUT-GROUPS

SUB-A SUB-B SUB-C SUB-D

TRUSTHIGHINTERACTIONS

FORMALRELATIONS

Leader Member Exchange Theory


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The theory that a leaders behaviour is acceptable to

subordinates insofar as they view it as a source of

either immediate or future satisfaction.

4.Path Goal Theory


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Environmental contingency

factors

Task structure

Formal authority system

Work group

Leader behaviour

Directive

Achievement oriented

Participative

supportive

Subordinate contingency factors

Locus of control

Experience

Perceived ability

Outcomes

Performance

Satisfaction

Path goal theory


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A Leadership theory that provides a set of rules to

determine the form and amount of participative

decision making in different situation.

5. LeaderParticipation Model


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NEOCHARISMATIC

LEADERSHIPTHEORIES


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Leadership theories that emphasizes symbolism

emotional appeal,and extraordinary follower commitment.

It includes the following :

1. CHARISMATIC LEADERSHIP.

2. TRANSFORMATIONAL LEADERSHIP.

3. VISIONARY LEADERSHIP.

Neocharismatic Theories


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Followers make attributions of heroic or extraordinary

abilities when they observe certain behaviors.

1. Charismatic Leadership

Leaders who provide individualized consideration and

intellectual stimulation and who possess charisma.

2. Transformational Leadership

3. Visionary Leadership The ability to create and articulate a realistic, credible,

attractive vision of the future for an organization ororganizational unit that grows out of and improves upon thepresent.


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EMOTIONAL LEADERSHIP.

TEAM LEADERSHIP.

MORAL LEADERSHIP.

CROSS CULTURAL LEADERSHIP.

Contemporary Issues in Leadership


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Self awareness : self-confidence ,realistic self-assessment,

self-deprecating sense of humour.

Self-management :trust worthiness & integrity, comfort

with ambiguity and openness to change.

Self-motivation : a strong to drive to achieve, optimism, and

high organizational commitment.

Empathy : expertise in building & retaining talent, cross

cultural sensitivity and service to client and customers.

Social skills: the ability to lead change efforts,

persuasiveness and expertise in building and leading teams.

1. Emotional Intelligence and Leadership


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Skills such as the patience to share information, to trust

others,to give up authority,and understanding when to

intervene.

Mastered the difficult balancing act of knowing when to

leave their teams alone and when to intercede.

Roles :

1.Team leaders are liasions with external constituencies.2. Team leaders are troubleshooters.

3. Team leaders are conflict managers.

4. Team leaders are coaches.

2. Team Leadership


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Ethical implications in leadership.

Ethical leaders are considered to use their charisma in a

socially constructive way to serve others.

3. Moral Leadership


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National culture is an important situational factor

determining which leadership style will be most effective.

National culture affects leadership style by way of thefollower . Leaders cannot choose their styles at will. They

are constrained by the cultural conditions that their

followers have come to expect.

4. Cross-cultural Leadership


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EMERGIN

G APP

ROACHESTO LEADERSHIP


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Substitute for leadership are factors that make leadership

role unnecessary through replacing with other sources.

Enhancers for leadership elements that amplify a leaders

impact on the employees.

Substitutes and Enhancers for Leadership


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Self leadership has two thrusts :

a) Leading oneself to perform naturally motivating tasks.

b) Managing oneself to do work that is required but not

naturally rewarding.

Super leadership begins with a set of positive beliefs about

workers.It requires practicing self leadership oneself and

modeling it for others to see.

Self-leadership and Super leadership


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Coaching means that the leader prepares, guides, and directs the

team, but does not play the game.

These leaders recognise that they are on the side lines not on the

plane field.

Their role is to select the right players to teach and develop

subordinates ,to be available for problem oriented consultation, to

review resource needs and to listen to inputs from employees.

Coaching


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Good leaders develop through a never-ending process of self-

study, education, training, and experience.

-Manual on military leadership

HOW TO BE A GOOD

LEADER ?


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Leadership: the art of getting someone else to do something

you want done because he wants to do it.

-Dwight D. Eisenhower

Human Behavior


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Introduction : Human nature is the common qualities of all

human beings. People behave according to certain principles of

human nature. These principles govern our behavior.

Human Behaviour


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1. Physiological - food, water, shelter, sex.

2. Safety - feel free from immediate danger.

3. Belongingness and love - belong to a group, close friends to confinewith.

4. Esteem - feeling of moving up in world, recognition, few doubtsabout self.

5. Cognitive - learning for learning alone, contribute knowledge.

6. Aesthetic - at peace, more curious about inner workings of all

7. Self-actualization know exactly who you are, where you are going,and what you want to accomplish. A state of well-being.

8. Self-transcendence - a trans egoic level that emphasizes visionaryintuition, altruism, and unity consciousness.

Maslow's Hierarchy ofNeeds


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Have better perceptions of reality and are comfortable with it.

Accept themselves and their own natures.

Their lack artificiality.

They focus on problems outside themselves and are concerned with

basic issues and eternal questions. They like privacy and tend to be detached.

Rely on their own development and continued growth.

Appreciate the basic pleasures of life (do not take blessings forgranted).

Have a deep feeling of kinship with others. Are deeply democratic and are not really aware of differences.

Have strong ethical and moral standards.

Are original and inventive, less constricted and fresher than others

Characteristics of self-actualizing people


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Leadership consists not in degrees of technique but in traits of

character; it requires moral rather than athletic or intellectual

effort, and it imposes on both leader and follower alike the

burdens of self restraint.

- Lewis H. Lapham

Key Traits of Successful Leaders


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Emotional stability.

Dominance.

Enthusiasm.

Conscientiousness.

Social boldness.

Tough-mindedness.

Self-assurance.

Key Traits of Successful Leaders

Compulsiveness.

High energy.

Intuitiveness.

Maturity.

Team orientation.

Empathy.

Charisma.


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THE LEADERSOF ALL TIMES


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ALEXANDER THE GREAT

Why Alexander should deserve to be called "the Great"?

Leadership

Alexander was surely not the first person in history who got this title. The

Persian King Cyrus the Great and the Egyptian Pharaoh Ramses the Great

went before him. But it is recorded that even in Antiquity the Roman

emperors already knew Alexander as "the Great".

The first clue is Alexander's leadership. Military experts still consider him

one of the most outstanding commanders ever. Arguably, there is no oneelse in history who could inspire and motivate his men like Alexander did.

Many explanations have been suggested: he suffered the same wounds as

his soldiers, he payed attention to every single man in the army and he

always led the attack in person. (Actually, he was the last great commander

in history to take this personal risk.)


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ALEXANDER THE GREAT

But apart from all that there must have been a deciding factor that we can

only marvel about: charisma. Alexander was the only individual whose

personal authority could hold his huge empire together. After his death it

almost immediately fell apart into competing kingdoms. In 332 BC, in Egypt,

the famous oracle of Siwa allegedly confirmed that Alexander had divine

origins and that the god Zeus (Ammon) was his true father. We do not

know how Alexander himself thought about his divinity, but it surely helped

him to boost the myth around his person.


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THE MAHATMA

Oct 2, 1869 to Jan 30, 1948

A Brief History of Mohandas K. Gandhi by Richard Attenborough

Mohandas K. Gandhi was born in 1869 to Hindu parents in the state of

Gujarat in Western India. He entered an arranged marriage with KasturbaiMakanji when both were 13 years old. His family later sent him to London to

study law, and in 1891 he was admitted to the Inner Temple, and called to

the bar. In Southern Africa he worked ceaselessly to improve the rights of

the immigrant Indians. It was there that he developed his creed of passive

resistance against injustice, satyagraha, meaning truth force, and was

frequently jailedasa result of theproteststhat he led. Before he returned

to India with hiswifeandchildren in 1915, he had radically changedthe lives

ofIndians living in Southern Africa.


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THE MAHATMA

Back in India, it was not long before he was taking the lead in the long

struggle for independence from Britain. He never wavered in his unshakable

belief in nonviolent protest and religious tolerance. When Muslim and Hindu

compatriots committed acts of violence, whether against the British who

ruled India, or against each other, he fasted until the fighting ceased.Independence, when it came in 1947, was not a military victory, but a triumph

of human will. To Gandhi's despair, however, the country was partitioned into

Hindu India and Muslim Pakistan. The last two months of his life were spent

trying to end the appalling violence which ensued, leading him to fast to the

brink of death, an act which finally quelled the riots. In January 1948, at theage of 79, he was killed by an assassin as he walked through a crowed garden

in New Delhi to take evening prayers. end of Attenborough's summary


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Communication


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Communication is defined as the process of passing information

and understanding from one person to another. It is essentially a

bridge of meaning between the people. By using the bridge a person

can safely cross the river of misunderstanding.

Communication


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Information

External

Internal

Advice (flows horizontally)

Suggestion (flows upwardly)

Order Written orders

Oral orders

Objectives of Communication


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Motivation

Persuasion

Warning

Negotiations (win-win approach)

Education

Objectives of Communication


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Sender

Encode Message Channel

Receive

Decode

Meaning

Decode asReceiver

MessageChannelEncode as

sender

Receiver

Communication Process


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Efficient working of the business

Communication failures are costly

Basis of managerial functions

Building human relations

Total Quality management

Zero-defect marketing and quality services

Job satisfaction and enrichment

Maintaining relations with external parties

Strategic management

Importance of Communication


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(1) One way communication and two way communication

(2) Verbal communication and Non-verbal communication

(3) Formal communication (Downward/upward/lateral) and

Informal communication

(4) Inter personal communication and Intra personal

communication

Forms of Communication

B i f C i ti


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Physical Barriers Noise, improper time, Distance inadequate or

overloaded information.

Organizational Barriers Organizational rules regulations, Hierarchical

Relationship, Non conducting of staff meeting,wrong choice of channel.

Psychological Barriers Selective perceptions, premature evaluation,

Different comprehension of reality, Attitude of

superiors, Attitude of sub-ordinates, poor

listening, egotism, emotions.

Semantic Barriers Different languages, Different context for words

and symbols, poor vocabulary.

Barriers of Communication


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Oral communication Written communication

Interviews

Meetings

Seminars

Conferences

Group Discussions

Audio-Visual Aids

Public speaking

Formal Reports

Technical proposalsBusiness correspondence

Notices, Agenda & Minutes

Hand books and manuals

Research papers and articles

Advertising and job description

Graphic aids

Utility of Communication


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Controlling


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Compelling Events to Conform to Plans

Controlling

Establish Performance Standards Planning

Measure Actual Performance

Compare Performance with Standards Measurementof Variance Feedback and Analysis

Corrective Action

Control Process


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Closed Loop

Automatic or cybernetic

Monitors or manages process by internal, self-regulating system

Essential feature is strong feedback system

Example: Home thermostat system

Control Process - Closed Loop vs. Open

Loop


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Feedback Control (Output)

Measures system output and variance with

predetermined standard

Adjusts system to maintain variance within a

specified range

Screening Control (Concurrent) Control applied concurrently with effort being

controlled

Timing of Control


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Feed Forward Control (Steering or Preliminary)

Attempts to predict the impact of current

actions/events

Current decisions are refined to facilitate goalattainment

Timing of Control


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Effective

Efficient

Timely

Flexible

Understandable

Tailored

Highlight deviations

Lead to corrective actions

Characteristics of Effective Control Systems


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Financial

Human Resource

Social

Three Types of Control


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Income Statement

Shows financial performance of a firm over aperiod of time

Cash Flow Shows where cash comes from and what it is used

for

Balance Sheet

Shows the firms financial position at a particularinstant in time

Assets and liabilities

Financial Control - Three Major Statements


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Ratios of two financial numbers taken from financialstatements and compared to industry averages

Four Types

Liquidity: Measures ability to meet short term

obligations Leverage: Measures the level of debt in a firms

financial structure

Activity: Measures how effectively a firm uses its

resources Profitability: Measures profit producing

performance of firm

Ratio Analysis


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Financial Budgets: Identify sources of cash and

intended uses

Cash Budgets

Capital Expenditure Budgets

Balance Sheet Budget

Budgets


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Cost Centers

Managers primary concern is control of costs

Revenue Center

Managers primary concern is attaining revenue

target

Profit Center

Manager has more freedom to manipulate costs to

increase profit

Responsibility Centers


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Top Management

Estimates of future sales and production

Priorities used to meet new objectives

Middle Management

Prepares proposed revenue and expense budgets

designed to attain estimated sales/production

levels

Budget Preparation


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Verify accuracy of firms financial data

May be internal or external

Internal audits also evaluate organizational efficiency

Audits of Financial Data


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Management Audits

Evaluate efficiency

Human Resources Accounting

Quantifies the value of human resources

investment

Costs of recruiting

Costs of training

Costs of process improvement

Non-financial Controls


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Social Controls

Standards

Comparison with outcomes

Corrective action



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Effectiveness of research activities

Systems for release of drawing release

Inventory control

Quality control



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Planning, organizing and staffing activities is

converted into reality through directing and leading

Leadership and Motivation is important for success

ofany organization

Communication is the

life b

lood o

fany org

aniz

ation

Controlling optimizes on utilization of resources and

general discipline of the organizations

Summary


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Documents

Chapter 4_Directing and Controlling