Part 4 - Leading & Directing

8/10/2019 Part 4 - Leading & Directing

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S O U R C E : M A N A G E M E N T - A G L O B A LP E R S P E C T I V E

B Y W E I H R I C H A N D K O O N T Z 1 1 T H E D I T I O N

Directing/Leading


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Leadership and Management

Management is about coping with complexity, tobring a degree of order and consistency to keydimensions such as quality and profitability of

products.

Leadershipis about coping with change, since thebusiness world has become more competitive and

more volatile. Such changes include fastertechnological change, greater internationalcompetition, the deregulation of markets, changingdemographics of the work force, etc.


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Leading is defined as the process of influencingpeople so that they will contribute toorganizational and group goals.

Managingrequires the creation andmaintenance of an environment in whichindividuals work together in groups toward theaccomplishment of common objectives.

The managers job is not to manipulate people but,rather, to recognize what motivates people.

Leadership and Management


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The Art of Leadership

Human Factors in Managing

Multiplicity of RolesNo Average Person

The Importance of Personal Dignity

Consideration of the Whole Person


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Human Factors in Managing

Through the function of leading, managershelp people see that they can satisfy theirown needs and utilize potential while

contributing to the aims of the enterprise.

Managers should thus have an

understanding of the roles assumed bypeople and the individuality andpersonalities of people.


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Multiplicity of Roles

Individuals are much more than a productivefactor in managements plans. They are membersof social systems of many organizations; they areconsumers of goods and services, schools,

churches, trade associations, and political parties.

In these different roles, they establish laws thatgovern managers, ethics that guide behavior, and atradition of human dignity that is a majorcharacteristic of our society.


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No Average Person

People act in different roles, but they are alsodifferent themselves.

There is no average person.

It is equally important to acknowledge that

individuals are uniquethey have different needs,different ambitions, different attitudes, differentdesires for responsibility, different levels ofknowledge and skills, and different potentials.


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The Importance of Personal Dignity

The concept of individual dignitymeans that people must be treated withrespect, no matter what their position isin the organization.


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Consideration of the Whole Person

We cannot talk about the nature of peopleunless we consider the whole person, not justseparate and distinct characteristics such asknowledge, attitude, skills, or personality traits.A person has them all to different degrees. The

human being is a total person affected byexternal factors. People cannot divestthemselves of the impact of these forces when

they come to work.Managers must recognize these facts and be

prepared to deal with them.
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Motivation

A general termapplying to the entireclass of drives,desires, needs,

wishes, and similarforces.
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Motivation Models/Theories

1. Douglas McGregors Theory X and Theory Y

Two sets of assumptions about the nature ofpeople.

Theory X is pessimistic, static, and rigid.Control is primarily external, imposed on thesubordinate by the superior.

In contrast, Theory Yis optimistic, dynamic,

and flexible, with an emphasis on self-directionand the integration of individual needs withorganizational demands.


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Under the assumptions of theory X:

Employees inherently do not like work and wheneverpossible, will attempt to avoid it.

Because employees dislike work, they have to be forced,coerced or threatened with punishment to achieve goals.

Employees avoid responsibilities and do not work untilformal directions are issued.

Most workers place a greater importance on security overall other factors and display little ambition.


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In contrast under the assumptions of theory Y:

Physical and mental effort at work is as natural as rest orplay.

People do exercise self-control and self-direction and if theyare committed to those goals.

Average human beings are willing to take responsibility andexercise imagination, ingenuity and creativity in solving theproblems of the organization.

That the way the things are organized, the average humanbeings brainpower is only partly used.


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2. MaslowsHierarchy ofNeeds Theory

When one set ofneeds is satisfied,this kind of needceases to be a

motivator. Physiological Needs

Security or Safety Needs

Affiliation or Acceptance Needs

Esteem Needs

Need

For

Self-Actualization

Maslows hierarchy of

needs


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3. Clayton Alderfers ERG Theory

People are motivated by existence needs,relatedness needs, and growth.

Existence - concerned mainly with providing basicmaterial existence.

Relatedness - individuals need to maintaininterpersonal relationship with other members in the

group. Growth - the intrinsic desire to grow and develop

personally.


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4. FrederickHerzbergs Motivation-HygieneTheory

Satisfiersare motivators and are related to job contentwhile dissatisfiers, also called maintenance,

hygiene, or job-context factors, are not motivators. He states that presence of certain factors in the

organization is natural and the presence of the samedoes not lead to motivation. However, their nonpresence

leads to demotivation. In similar manner there are certain factors, the absence

of which causes no dissatisfaction, but their presencehas motivational impact.


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Self-actualization

Esteem or status

Affiliation or

acceptance

Security or safety

Physiological needs

Motivators

Maintenancefactors

Challenging work

Achievement

Growth in the job

ResponsibilityAdvancement

Recognition

Status

Interpersonal relations

Quality of supervision

Company policy and administration

Job security

Salary

Maslows

Needs Hierarchy

Herzbergs

Two-factor theory

Comparison of Maslowsand Herzbergs theories of

motivation


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5. Vrooms Expectancy Theory

People will be motivatedto do things to reacha goal if they believe in the worth of the goal

and if they can see that what they dowill helpthem in achievingit.

An employee can be motivated to perform betterwhen there is a belief that the better performance

will lead to good performance appraisal and thatthis shall result into realization of personal goal inform of some reward


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Vrooms Expectancy Theory

Motivation = Valence x Expectancy


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6. The Porter and Lawler Model Suggests that levels of motivation are based more on

the value that individuals place on the reward.

The components that effect motivation then, are called

valence(what's important to you) and expectancy(canyou do it).

Porter and Lawler suggest that perceived inequality inthis model plays a pivotal role in job

satisfaction. Motivation or effort leads toperformance. This performance is followed by intrinsicand extrinsic rewards. The perceived equity of thoserewards leads to satisfaction.


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Value of

rewards

Perceived

Equitable

rewards

Extrinsic

rewards

Intrinsic

rewardsSatisfaction

Performance

accomplishment

Perception of

task required

Effort

Ability to do a

specified task

Perceived effort

and reward

probability

Adapted from L. W. Porter and E. E. Lawler, Managerial Attitudes and Performance (Homewood, IL: Richard D. Irwin, Inc.,

1968), p. 165.

Porter and Lawlersmotivation model


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7. Equity Theory

Motivation is influenced by an individualssubjective judgment about thefairness of thereward he or she gets, relative to the inputs,compared with the rewards of others.

Balance orimbalance

of rewards

More thanEquitable

reward

Equitablereward

Inequitable

reward

Dissatisfaction

Reduced

output

Departure from

organization

Harder workReward

discounted

Continuationat same level

of output


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Equity Theory


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8. Goal SettingTheory of EdwinLocke

States that when thegoals to be achieved areset at a higher standard,employees are motivated

to perform better andput in maximum effort.

Setting

objectives

Controland

Appraisal

Planning

Actions

Implementation

Objective setting for

motivation


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9. Skinners Reinforcement Theory

Individuals can be motivated byproperdesign of their work environment and

bypraise for their performance, whilepunishmentforpoor performanceproduces negative results.

Hence, the only way to motivate is to keep onmaking positive changes in the externalenvironment of the organization.


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10.David McClellands Needs Theory

a theory on three types of motivating needs

which areo Need for Power

o Need for Affiliation

o Need for Achievement


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People with high needforpowerare inclinedtowards influence andcontrol, like to be at the

center and are goodorators, demanding innature, forceful inmanners and ambitiousin life.

They can be motivated toperform if they are givenkey positions or powerpositions.
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People who are socialinnature try to affiliatethemselves with individualsand groups, are driven by

love and faith, and like tobuild a friendlyenvironment aroundthemselves.

Social recognition andaffiliation with othersprovides them motivation.
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People with the need ofachievementare driven by thechallenge of success and thefear of failure.

They set for themselvesmoderately difficult tasks, areanalytical in nature and takecalculated risks.

Such people are motivated toperform when they see atleastsome chances of success.


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Special Motivational Techniques

1. Intrinsic Motivation

Refers to motivation that is driven by aninterest or enjoyment in the task itself, andexists within the individual rather than relyingon any external pressure

It may include a feeling of accomplishmentand self-actualization.


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Special Motivational Techniques

2. Extrinsic Motivation

Comes from outside of the individual. Commonextrinsic motivations are rewards like money and

grades, coercion (the practice of forcing anotherparty to behave in an involuntary manner by useof threats, or rewards intimidation, or someother form of pressure or force), and threat ofpunishment.

Include benefits, recognition, status symbols, andmoney. Competition is in general extrinsicbecause it encourages the performer to win andbeat others, not to enjoy the intrinsic rewards ofthe activity.


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Leadership

Leadership is the art or process ofinfluencingpeople so that they will strivewillingly andenthusiasticallytoward theachievement of

group goals.


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Leadership

Good leaders are madenot born. If you have the

desire and willpower, you can become an effectiveleader. Good leaders develop through a neverending process of self-study, education, training,and experience.

- Jago, 1982


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Ingredients of Leadership

1. Power

2. A fundamental understanding of people

3. The ability to inspire followers to apply their fullcapabilities

4. The leaders style

5. The development of a conducive organizationalclimate


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Approaches to Leadership

(1) Trait Approach(2) Transformational and Transactional

Leadership

(3) Charismatic Leadership(4) Fiedlers Contingency Approach(5) Path-Goal Approach


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(1) Trait Approaches to Leadership

Ralph M. Stogdill found that various researchers hadidentified specific traits related to leadershipability such as:

5 physical traits (such as energy, appearance, and

height)4 intelligence and ability traits16 personality traits (such as adaptability,

aggressiveness, enthusiasm, and self-confidence),

6 task-related characteristics (such as achievementdrive, persistence, and initiative)9 social characteristics (such as cooperativeness,

interpersonal skills, and administrative ability)

( ) T f ti l d T ti l


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(2) Transformational and TransactionalLeadership Approaches

The transformational leadership style occurwhen one or more persons engage in such a way

that leaders and followers raise one another tohigher levels of motivation and morality. This isalmost like a synergy that might exist, wherebyeveryone gets raised to a higher level of

performance.



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Mahatma Gandhi (1869-1948) is a great example of atransformational leader

because he satisfied the needsof his followers. Instead ofriding those needs to power,he remained sensitive to ahigher purpose.

His vision of leadership went beyond himself. He believedin satisfying the needs of all that followed him.



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The transactional leadership theory,developed by Weber and Bass, is based on thehypothesis that followers are motivated through asystem of rewards and punishment.

The transactional leader's view of the leader -follower relationship is one of quid pro quo - or

this for that. If the follower does something good,then they will be rewarded. If the follower doessomething wrong, then they will be punished.


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(3) Charismatic Leadership Approach

Charismatic leadership is based on the leader's abilityto communicate and behave in ways that reach followers ona basic, emotional way, to inspire and motivate.

According to Robert J. House, charismatic leadersmay

have certain characteristics, such as: being self-confident

having strong convictions

articulating a vision

being able to initiate change

communicating high expectations having a need to influence followers and supporting them

demonstrating enthusiasm and excitement

being in touch with reality

(4) Fiedlers Contingency Approach to


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(4) Fiedler s Contingency Approach toLeadership

People become leaders not only because of theirpersonality attributes but also because of varioussituational factors and the interactions between

leaders and group members.

Based on leadership style --- task-motivated andrelationship-motivatedand situation --- leader-

member relations, task structure, and positionpower.


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(5 ) Path-goal Approach to Leadership

This was developed to describe the way that leadersencourage and support their followers in achievingthe goals they have been set by making the path that

they should take clear and easy.

In particular, leaders:

Clarify the path so subordinates know which way to go.

Remove roadblocks that are stopping them going there.

Increasing the rewards along the route.


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(5 ) Path-goal Approach to Leadership


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Leadership Styles Based on Use of Authority

1. Autocratic Leader He commands and expects compliance, is

dogmatic and positive, and leads by the abilityto withhold or give rewards and punishment.

2. Democratic or Participative Leader

He consultswith subordinates and encouragestheir participation.

3. Free-rein Leader He uses power very little, if at all, giving

subordinates a high degree of independence.


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Leadership Styles Based on Use of Authority

Autocratic

Leader

Follower Follower Follower

Democratic or

Participative

Leader


Free-rein

Leader


The flow of influence with three leadership

styles

Ways Women Lead


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Ways Women Lead(Results of the IWF Survey of Men and Women Leaders)

Both married men and womenexperience moderate levels ofconflict between work and familydomains. When there are childrenat home, women experience only

slightly higher levels of conflictthan men, even though theyshoulder a much greaterproportion of the child care ---61% of the care versus 25% for themen.

The women earn the same amount ofmoney as their male counterparts.

The mens household income (their

own and their spouses) is much lowerthan that of women (only 39% of themen have full-time employed spouses,as opposed to 71% of the women)

Women are more likely than men to use transformationalleadership --- motivating others by transforming their self-interest into the goals of the organization.

Ways Women Lead


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Ways Women Lead(Results of the IWF Survey of Men and Women Leaders)

Women are much more likely thanmen to use power based oncharisma, work record, and

contacts (personal power) asopposed to power based onorganizational position, title, andthe ability to reward and punish(structural power).

Most men and women describethemselves as having an equal mixof traits that are consideredfeminine (being excitable, gentle,

emotional, submissive, sentimental,understanding, compassionate,sensitive, dependent), masculine(dominant, aggressive, tough,assertive, autocratic, analytical,competitive, independent), and

gender-neutral (adaptive, tactful,sincere, conscientious,conventional, reliable, predictable,systematic, efficient).

Women who describe themselves aspredominantly feminine or gender-neutral report a higher level offollowership among their femalesubordinates than women who

describe themselves as masculine.


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The Managerial Grid

A well-known approach to defining leadershipstyles is the managerial grid, developed decadesago by Robert Blake and Jane Mouton.

The managerial grid has two dimensions: concernfor people and concern for production.

Blake and Mouton recognizes five style: 1.1 style,9.9 style, 5.5 style, 1.9 style, and 9.1 style.


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The Managerial Grid


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The Managerial Grid

The five resulting leadership styles are as follows:

Impoverished Management (1, 1)

Managers with this approach are low on both dimensionsand exercise minimum effort to get the work done fromsubordinates.

The leader has low concern for employee satisfaction andwork deadlines and as a result, disharmony anddisorganization prevail within the organization.

The leaders are termed ineffective wherein their action ismerely aimed at preserving job and seniority.


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The Managerial Grid

Task management (9, 1) Leaders are more concerned about production and have less

concern for people.

The style is based on theory X of McGregor. The employees

needs are not taken care of and they are simply a means toan end.

The leader believes that efficiency can result only throughproper organization of work systems and through

elimination of people wherever possible. Such a style candefinitely increase the output of organization in short run

but due to the strict policies and procedures, high laborturnover is inevitable.


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The Managerial Grid

Middle-of-the-Road (5, 5)

Basically a compromising style wherein the leader tries to

maintain a balance between goals of company and the needsof people.

The leader does not push the boundaries of achievementresulting in average performance for organization.

Here neither employee nor production needs are fully met.


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The Managerial Grid

Country Club (1, 9)

This is a collegial style characterized by low task and highpeople orientation where the leader gives thoughtful

attention to the needs of people thus providing them with afriendly and comfortable environment.

The leader feels that such a treatment with employees willlead to self-motivation and will find people working hard ontheir own.

However, a low focus on tasks can hamper production andlead to questionable results.


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The Managerial Grid

Team Management (9, 9)

Characterized by high people and task focus, the style isbased on the theory Y of McGregor and has been termed asmost effective style according to Blake and Mouton.

The leader feels that empowerment, commitment, trust,and respect are the key elements in creating a teamatmosphere which will automatically result in high

employee satisfaction and production.


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Communication

The transfer of information from a

sender to a receiver, with theinformation being understoodby thereceiver.


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The Communication Process

Feedback

EncodingThought Transmission

of message Decoding

Understanding

Reception

ReceiverSender

A Communication Process Model

Noise


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The Purpose of Communication

1. To establish and disseminate the goals of anenterprise.

2. To develop plans for their achievement.

3. To organize human and other resources in themost effective and efficient way.4. To select, develop, and appraise members of an

organization.

5. To lead, direct, motivate, and create a climatein which people want to contribute.6. To control performance.


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The Communication Process

External environment: Customers Suppliers Stockholders

Governments Community Others

Communications

Planning Organizing Staffing Leading Controlling

The Management Process

The Purpose and Function of Communication


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Directions of Communication in an Organization

1. Downward Communication It flow from people at higher levels to those at lower

levelsin the organizational hierarchy.

2. Upward Communication Travelsfrom subordinates to superiors and continues

up the organizational hierarchy.

3. Crosswise Communication

It includes the horizontal flow of information (amongpeople on the same or similar organizational levels)and the diagonal flow of information (among peopleat different levelswho have no direct reportingrelationships with one another).


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Communication in an Organization

Horizontal

Upward

DownwardDiagonal

Information Flow in anOrganization


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Forms of Communication

1. Written Communication

Communication in written form Includes pictograms or visuals, letters,

memorandums, reports, text messages,electronic messages (e-mail).


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2. Oral or verbal Communication

Primarily refers to spoken verbalcommunication

Includes discussion, speeches, presentations,interpersonal communication and manyother varieties.

The body language and voice tonality plays

a significant role and may have a greaterimpact on the listener than the intendedcontent of the spoken words.


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3. Nonverbal Communication Describes the process of conveying meaning in

the form of non-word messages through e.g.gestures, body language, or posture; facial

expression and eye contact, objectcommunication such as clothing, hairstyles,architectures, symbols, and infographics, as wellas through an aggregate of the above.

Non-verbal communication is also called silentlanguage and plays a key role in human day today life.

C i i M h d


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Communication Methods

Primitive or conventional method regular mail (snail mail), morse code

Use of information technologywired and wireless telephone, fax machine, voice

mail, internet (for e-mail, chatting, etc),

teleconference , and videoconference

Tips for Improving Written


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p p gCommunication

Use simple words and phrases.

Use short and familiar words.

Use personal pronouns (such as you) whenever appropriate.

Give illustrations and examples; use charts.

Use short sentences and paragraphs.

Use active verbs, such as The managerplans

Avoid unnecessary words.


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Tips for Improving Oral Communication

Communicate with a large audience as you would do in a one-to-oneconversation.

Tell a story, an anecdote, and give examples.

Pausedo not rush. In a discussion, a pause shows that you arelistening.

Use visual aids such as diagrams, charts, overhead slides, andcomputer graphic presentations.

Communicate confidence and create trust. This can be done by strongand clear voice, good posture, and a smile.

Use a colorful, specific language and show through your bodylanguage that you are confident and are in command of the situation.

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Part 4 - Leading & Directing