directing and controlling-new

8/8/2019 Directing and Controlling-New

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Directing and Controlling

1

Dr S Natarajan

Professor, Department of ISE

PESIT,Bangalore


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Directing

Meaning

1. Directing means issuance of orders, leadingand motivating

subordinates to execute orders.

2. According to Haimann

Directing consists of the process andtechnique utilised in issuing instructions and

making certain that operations are carriedout as originally planned.


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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 which

are 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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Nature of Directing

1. Harmony

Employees goals must be in harmony with Employers goal

Manager must take advantage of individual motives to gaingroup goals

2. Unity of Command

3. Direct Supervision

Face to face contact with subordinates

Increases morale of subordinates and increases loyalty


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7

Nature of Directing (Contd..)

4. Efficient Communication

Efficient communication is a two way process

How employees feel and How company feels about

employees

Comprehension is important than content (feedback)

5. Follow Through


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Itis 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 asone moves down the line of authority

Nature of Directing

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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 of Directing

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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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Principles of Directing Harmony of objectives

Unity of direction

Direct supervision

Effective communication

Follow through

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LeadershipDefinitions:

1. According to Peter Drucker

Leadership is the lifting of mans vision to higher sights, theraising of mans performance to higher standard, the building ofmans personality beyond its normal limitations.

2. According to Alford and Beatty

The ability to secure desirable actions from a group of followersvoluntarily without the use of coercion(force).

3. According to Keith Davis

Leadership is the ability to persuade others to seek definedobjectives enthusiastically. It is the human factor which binds a

group together and motivates it towards goal.

4. According to G.R. Terry

Leadership is the activity of influencing people to strive willinglyfor mutual objectives.


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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 of a 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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OUR NATIONAL LEADERS15


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Manager LeaderAdministers 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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Visionary: Communicate A Vision, 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

12 QUALITIES 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 in a

Setting

Flexible: Responsive to the Face of Change & Peoples Needs

Culturally Global Perspective

Sensitive:

Continuous Leaders Always Are Seeking New Ways to Grow

Learner:

12 QUALITIES OF A GOOD LEADER

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Leadership and leadership styles

Leadership is a process by which a

person influences others to accomplish

an objective and directs theorganization in a way that makes it

more cohesive and coherent.

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Functions of the leaderTaking initiative

Guide Representation

Encouraging others

Arbitrator and mediator

Planner

Administrator of rewards and punishments

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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.21


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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.22


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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 TEAMWORKMost 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.23


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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 must

provide development opportunities that will ensure the continued

professional and career growth of individuals and add to the

organization's overall knowledge store. I

10. LEADERSHIP VERSATILITYSoftware 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.24


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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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Begentle 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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Decentralize authority. They arise from consultation with followers and participation by them. Leader and group act as a social unit. Wider use of participative practices because they are consistent with

the supportive and collegial models of organisational behavior.

Participative/Democratic Leaders

Free-rein Leaders

Avoid power and responsibility.

Depend largely on members train themselves and provide their

own motivation.

Ignores leaders contribution30


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Democratic: Encourages decision making

from different perspectives leadership may beemphasised throughout the organisation Consultative: process of consultation before

decisions are taken

Persuasive: Leader takes decision and seeks to

persuade others that the decision is correct

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Democratic: May help motivation and involvement Workers feel ownership of the firm

and its ideas Improves the sharing of ideas

and experiences within the business Can delay decision making

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Free rein Leader exercises no control

Provides only information, material andfacilities

Employee centered Disastrous if the leader if the leader does

not know the competence and integrity ofthe subordinates and their ability tohandle the freedom

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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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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 lastis 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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Ohio State University Model

Initiating Structure: Leader structuring jobConsideration: Leader showing trust and friendship


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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

CONCER

NFOR

PEOPLE

Managerial Grid

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

people ---- Country Club Style.

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

task. ---- Produce or Perish Style (1,1) - least concern for people and least concern for task

--- Impoverished Style

(5,5) - equal concern for task and people. --- Middle of the Road Style

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

--- Team Style .

Refer Previous Slide

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ManagerialGrid

44

66

22

11

33

55

88

77

99

0011 44 66 995522 33 8877

Concern for production

HighHigh

LowLow

Low HighHigh

1,9 9,9

1,1 9,1

Team ManagementWork accomplishment is

from committed people;

interdependence through

a common stake in

organization purpose

leads to relationships

of trust and respect.

Middle of the RoadManagementAdequate organization performance is

possible through balancing the necessity

to get out work with maintaining morale

of people at a satisfactory level.

Impoverished ManagementExertion of minimum effort

to get required work done

is appropriate to sustain

organization membership.

Authority-ComplianceEfficiency in operations

results from arranging

conditions of work insuch a way that

human elements

interfere to a

minimum degree.

5,5

Country Club ManagementThoughtful attention to theneeds of people for satisfying

relationships leads to a

comfortable, friendly

organization atmosphere

and work tempo.

Concer

n

forpe

ople

The Leadership Grid is

a method of evaluating

leadership styles. The

Grid is used to train

managers so that they

are simultaneously more

concerned for peopleand for production (9,9

style on the Grid).

Source: The managerial grid was developed by Blake & Mouton; illustration adapted from Griffin, 200243


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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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NEOCHARISMATIC

LEADERSHIPTHEORIES

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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. Leader Participation Model

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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 extraordinaryabilities 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. 57


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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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EMERGING APPROACHES

TO 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 notnaturally 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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Motivation

MotivationThe processes that account for an

individuals intensity, direction, andpersistence of effort toward attaininga goal

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Needs Theories of Motivation

Basic idea: Individuals have needs that, when

unsatisfied, will result in motivation Maslows hierarchy of needs Herzbergs two factor theory (motivation-

hygiene theory)

McClellands theory of needs


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Maslows Hierarchy of Needs

Physiological

Safety Social

Esteem

Self-actualization


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Maslows Hierarchy of Needs


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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 confine with.

4. Esteem - feeling of moving up in world, recognition, few doubts about 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 whatyou want to accomplish. A state of well-being.

8. Self-transcendence - a trans egoic level that emphasizes visionary

intuition, altruism, and unity consciousness.

Maslow's Hierarchy of Needs

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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 for

granted).

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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Herzbergs Two factor Theory

Those that provided motivation whenthey were present (Motivators)

Those Factors that lead to jobdissatisfaction when they did not meetexpectation (Hygiene)


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Motivators that are intrinsic to thejob

Achievement, Recognition, Responsibility,Work, Advancement

Hygiene factors that are extrinsicto the job Company policy, Administration,

Supervision, interpersonal relationships,working conditions, salary, status, security


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Motivators are the primary causeof satisfaction

Hygiene factors are the primarycause of unhappiness in the job


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Hygiene Factors: Physiological, safety, affiliation

Motivators: Esteem, Self fulfillment


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McClellands Theory of Needs

Need for Achievement Desire to excel, accomplishment(self-actualization)

Need for Power

Desire to control resources and people (esteem) Need for Affiliation

Human companionship and acceptance (social)

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Vrooms Expectancy Theory

People are conscious agents who arecontinually sizing up situations in terms of

their perceived needs and then acting inaccordance with these perceptions.

Motivation = E x I x V E represents expectancy (probability of

success) I is instrumentality (correlation) V is valence (value of a particular reward)

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Vrooms Expectancy Theory

Instrumentality an individual subjectiveestimates that doing or not not doing anact could result in a particular outcome.

Expectancy an individual subjectiveestimate of whether he could undertake aparticular act and do it successfully

Valence the importance an individual

attaches to a particular outcome.

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Adamss Equity Theory People have a need for, and therefore value and

seek, fairness in employeremployeerelationships.

If a person perceives an inequity, a tension ordrive will develop in the persons mind, and the

person will be motivated to reduce or eliminatethe tension and the perceived inequity. Employees can do this by reducing what they put into

the job, or by boosting the magnitude of the rewardsthey take out (or both).

It matters less what the reality is than how the person

perceives his or her inputs and outputs as comparedwith the other (referent) persons.

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Skinners Behaviour


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Skinner s BehaviourModification Theory

Also known as Operant conditioning theory As people generally prefer pleasant outcomes to their action,

they would repeat those actions/behaviors that they havelearnt will have pleasant consequences/outcomes

Behavior modification is possible through reinforcement or

punishment. Reinforcement those outcomes that increase the frequency of

a behavior (in work situation, can be positive like praise ormonetary reward or negative like avoidance of a aversivesituation)

Punishment Those outcomes that decrease the frequency of a

behavior (Fine, reprimand)

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J M d l f M ti ti


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Japanese Model of MotivationTheory Z Proposed by William Ouchi

1. Lifetime employment

2. Collective decisionmaking

3. Collectiveresponsibility

4. Non specializedcareer path

5. Slow evaluation &promotion

6. Implicit controlmechanisms

7. Holistic concern andcommitment

8. Equality

9. Participativeleadership

10. Care of workersfamily

11.

Concern for youngworkers

12. Company wide unionswith harmoniousrelations

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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 shoulddeserve 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 Romanemperors 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 one

else 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, 1948A 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 jailed as a result of the protests that he led. Before he returned

to India with his wife and children in 1915, he had radically changed the lives

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THE MAHATMA

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

Warning

Negotiations (win-win approach)

Education

Objectives of Communication

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Sender

Encode Message Channel

Receive

Decode

Meaning

Decode asReceiver

MessageChannel Encode assender

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

99

Barriers of Communication


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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, poorlistening, egotism, emotions.

Semantic Barriers Different languages, Different context for words

and symbols, poor vocabulary. 100


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Oral communication Written communication

Interviews

Meetings

Seminars

Conferences

Group Discussions

Audio-Visual Aids

Public speaking

Formal Reports

Technical proposals

Business 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

102

C t lli


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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

103

Control Process - Closed Loop vs. Open Loop


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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

104

Control Process - Closed Loop vs. Open Loop


105/122

Open Loop

Requires external monitoring or agent to activate

control

Example: Cruise control on an automobile

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Feedback Control (Output)

Measures system output and variance with predetermined

standard

Adjusts system to maintain variance within a specifiedrange

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

107

Ch i i f Eff i C l S


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Effective Efficient

Timely

Flexible

Understandable

Tailored

Highlight deviations

Lead to corrective actions

Characteristics of Effective Control Systems

108

Th T f C t l


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Financial

Human Resource

Social

Three Types of Control

109

Fi i l C t l Th M j St t t


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Income Statement Shows financial performance of a firm over a

period of time

Cash Flow

Shows where cash comes from and what it is usedfor

Balance Sheet

Shows the firms financial position at a particularinstant in time

Assets and liabilities

Financial Control - Three Major Statements

110

R ti A l i


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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

111

B d t


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Financial Budgets: Identify sources of cash and

intended uses

Cash Budgets

Capital Expenditure Budgets

Balance Sheet Budget

Budgets

112

R ibilit C t


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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

113

B d t P ti


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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

114

A dit f Fi i l D t


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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

115

Non financial Controls


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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


117



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Effectiveness of research activities

Systems for release of drawing release

Inventory control

Quality control


118

Summary


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Planning, organizing and staffing activities is converted

into reality through directing and leading

Leadership and Motivation is important for success of any

organization

Communication is the life blood of any organization

Controlling optimizes on utilization of resources and

general discipline of the organizations

Summary

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Gantt chart

120


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PERT Diagram

121


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directing and controlling-new

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