1. Group 2
Aizell Bernal
Christian Jayson Cruz
Julia Paula Sunga
Juan Paulo Sunga
Mrs. Elizabeth Aragon

2. OUTLINE
I. Directing
Definition of directing
II. Importance of Directing
III. Characteristics of Directing
Pervasive Function
Continuous Activity
Human Factor
Creative Activity
Executive Function
Delegate Function
IV. Elements of Direction
Communication
Supervision
Motivation
Leadership
V. Maslow’s Theory of Motivation - Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
VI. Power and Influence in Organization
Classification of Power
1. Legitimate Power
2. Expert Power
3. Referent Power
4. Reward Power
5. Punishment Power
6. Relationship Power
VII. Directing and Leadership
VIII. Case Study

3. Directing
 Directing is the process through which a manager communicates with and
influences other members of the organization in the pursuit of company
objectives.
 Directing is said to be a process in which the managers instruct, guide and
oversee the performance of the workers to achieve predetermined goals.
Directing is said to be the heart of management process. Directing initiates
action and it is from here actual work starts. Direction is said to be
consisting of human factors. In simple words, it can be described as
providing guidance to workers is doing work. In field of management,
direction is said to be all those activities which are designed to encourage
the subordinates to work effectively and efficiently. According to Human,
“Directing consists of process or technique by which instruction can be
issued and operations can be carried out as originally planned” Therefore,
Directing is the function of guiding, inspiring, overseeing and instructing
people towards accomplishment of organizational goals.
 The managerial function of directing is like the activities of a teacher in a
classroom. In order to teach, a teacher has to guide his students, maintain
discipline, inspire them and lead them to the desired goal. It is a very
important function in the management of any enterprise. It helps the
managers in ensuring quality performance of jobs by the employees and
achievement of organizational goals.
Importance of Directing
Plans remain mere plans unless they are put into action. In the absence of
direction, subordinates will have no idea as to what to do. They will probably not
be inspired to complete the job satisfactorily. Implementation of plans is, thus,
largely the concern of directing function. As a function of management, directing
is useful in many ways.
 It guides and helps the subordinates to complete the given task properly
and as per schedule.
 It provides the necessary motivation to subordinates to complete the work
satisfactorily and strive to do the best.
 It helps in maintaining discipline and rewarding those who do well.
 Directing involves supervision, which is essential to make sure that work is
performed according to the orders and instructions.
 Different people perform different activities in the organization. All the
activities are interrelated. In order to co-ordinate the activities carried out
in different parts and to ensure that they are performed well, directing is

4. important. It thus, helps to integrate the various activities and so also the
individual goals with organizational goals.
 Directing involves leadership that essentially helps in creating appropriate
work environment and build up team spirit.
Characteristics of Directing
1. Pervasive Function - Directing is required at all levels of organization.
Every manager provides guidance and inspiration to his subordinates.
2. Continuous Activity - Direction is a continuous activity as it continuous
throughout the life of organization.
3. Human Factor - Directing function is related to subordinates and
therefore it is related to human factor. Since human factor is complex and
behavior is unpredictable, direction function becomes important.
4. Creative Activity - Direction function helps in converting plans into
performance. Without this function, people become inactive and physical
resources are meaningless.
5. Executive Function - Direction function is carried out by all managers
and executives at all levels throughout the working of an enterprise; a
subordinate receives instructions from his superior only.
6. Delegate Function - Direction is supposed to be a function dealing with
human beings. Human behavior is unpredictable by nature and
conditioning the people’s behavior towards the goals of the enterprise is
what the executive does in this function. Therefore, it is termed as having
delicacy in it to tackle human behavior.
Elements of Direction
1. Communication
2. Supervision
3. Motivation
4. Leadership
These are the four essential elements of directing. We shall discuss about
the nature and significance of each of these components.
 Communication
Communication is a basic organizational function, which refers to
the process by which a person (known as sender) transmits information or
messages to another person (known as receiver). The purpose of
communication in organizations is to convey orders, instructions, or
information so as to bring desired changes in the performance and or the
attitude of employees. In an organization, supervisors transmit information

5. to subordinates. Proper communication results in clarity and securing the
cooperation of subordinates. Faulty communication may create problems
due to misunderstanding between the superior and subordinates. The
subordinates must correctly understand the message conveyed to them.
Thus, in communication:
o There are two parties, one is known as the sender and the other is
known as receiver.
o There is a message sent by the sender to the receiver.
o The receiver receives the message and understands it.
Communication does not always flow from supervisor to
subordinate. It can also be from a subordinate to a supervisor. For
example, subordinates can pass information to the supervisor about the
faults/problems at the assembly line. Thus, it is a two way process.
Importance of Communication
Communication in organizations is so important that it is said to be
the lifeblood of the organization. Success of direction largely depends on
how effectively the manager can communicate with his subordinates.
Proper communication in organizations at all levels and between all levels
can improve both the quantity and quality of output. Some of the benefits
of communication are as follows:
 Communication helps employees to understand their role clearly
and perform effectively.
 It helps in achieving co-ordination and mutual understanding which
in turn, leads to industrial harmony and increased productivity.
 Communication improves managerial efficiency and ensures
cooperation of the staff.
 Effective communication helps in molding attitudes and building up
employees’ morale.
 Communication is the means through which delegation and
decentralization of authority is successfully accomplished in an
organization.

6. Types of Communication
In an organization communication can be made from supervisor to
subordinate, from subordinate to supervisor and also between two
supervisors at the same level. Communication can be done orally or in
writing or even through gestures. Communication may be made through
formal or informal channels. Thus, the various types of communication
are as follows:
On the basis of On the basis of On the basis of mode
channel used direction used
1. Formal 1. Upward 1. Verbal
a. Oral
b. Written
2. Informal 2. Downward 2. Non-verbal
a. Gestural
3. Horizontal
4. Diagonal
Formal and Informal Communication
The path through which information flows is called channel of
communication. In every organization we have both formal and informal
channels. The paths of communication which are based on relationship
establish formally by management are the formal channels. For example,
the General Manager communicates a decision to the production manager
who may then issue orders or instructions to the foremen. It may also be
like a worker applying to his supervisor for a loan from the GPF account.
He/she forwards it to the Manager Accounts who finally sends it to the
General Manager (Finance) for approval.
Communication, which takes place on the basis of informal or
social relations among staff, is called informal communication. For
example, any sharing of information between a production supervisor and
an accountant, as the y happen to be friends or so. Mostly informal
channels are used due to friendly interaction of members of an
organization. In fact, it may be purely personal or related to organizational
matters.
Upward, Downward, Horizontal and Diagonal Communication
On the basis of the flow or direction of communication in
organizations, it can be classified as upward, downward, horizontal or

7. diagonal. When employees make any request, appeal, report, suggest or
communicate ideas to the superior, the flow of communication is upward
(from bottom to top). For instance, when a typist drops a suggestion in the
suggestion box, or a foreman reports breakdown of machinery to the
factory manager, the flow of communication is upward. Upward
communication encourages employees to participate actively in the
operations of their department. They get encouraged and their sense of
responsibility increases when they are heard by their supervisors about
problems affecting the jobs.
When communication is made from superiors down the hierarchy it
is called a downward communication. For instance, when superiors issue
orders and instructions to subordinates, it is known as downward
communication. When the General Manager orders supervisors to work
overtime, the flow of communication is downward (from top to bottom).
Similarly, communication of work assignments, notices, requests for
performance, etc. through bulletin boards, memos, reports, speeches,
meetings, etc, are all forms of downward communication.
Communication can also be amongst members at the same level in
the organization. For instance, production manager may communicate the
production plan to the sales manager. This is known as horizontal flow of
communication. Here, the communication is among people of the same
rank and status. Such communication facilitates coordination of activities
that is interdependent.
When communication is made between people who are neither in
the same department nor at the same level of organizational hierarchy, it
is called diagonal communication. For example, cost accountant may
request for reports from sales representatives not the sales manager for
the purpose of distribution cost analysis. This type of communication does
take place under special circumstances.
Verbal and Non-verbal Communication
On the basis of the mode used, communication may be verbal or
non-verbal. While communicating, managers may talk to their
subordinates either face to face or on telephone or they may send letters,
issue notices, or memos. These are all verbal communication. Thus, the
verbal modes of communication may be oral and written. Face to face
communication, as in interviews, meetings and seminars, are examples of

8. oral communication. Issuing orders and instructions on telephone or
through an intercommunication system is also oral communication. The
written modes of communication include letters, circulars, notices and
memos. Sometimes verbal communication is supported by non-verbal
communication such as facial expressions and body gestures. For
example, wave of hand, a smile or a frown etc. This is also termed as the
gestural communication.
 Supervision
After the employees have been instructed regarding what they have
to do and how to do, it is the duty of the manager to see that they perform
the work as per instructions. This is known as supervision. Managers
play the role of supervisors and ensure that the work is done as per the
instructions and the plans. Supervisors clarify all instructions and guide
employees to work as a team in co-operation with others. Supervisors
solve most of the routine job-related problems of subordinates.
Supervisor, thus, performs the following functions:
 Clarifies orders and instructions issued to subordinates and
ensures that they have understood and follow these fully.
 Ensures that subordinates have the required facilities to perform
their jobs.
 Keeps a watch and guides the activities of subordinates in
performing their jobs.
 Broadens the horizon of his subordinates by making them aware of
the wider aspects of their day-to-day work.
 Coordinates the work of different subordinates under him.
 Detects errors and omissions and ensures their rectification.
Though supervision is required at all levels of management, it is of
great importance at the operational level, at the level of first line
supervisor. Managers at this level devote maximum time in supervising
the work of subordinates. Though the top or middle level managers also
supervise the work of their subordinate managers, but it is the first line
supervisors who are in direct and constant touch with operatives, workers
in the factory and clerical staff in the office. Thus, they are directly
responsible for getting the work done through most of the employees in an
organization.

9. Importance of Supervision
From what has been said about supervision, it must be clear to you
that supervision is of great significance in getting the work done as per
plans and as scheduled. On the basis of the influence on the work at
operational level and human approach to the problems of workers, the
supervision can ensure workers cooperation and support in achieving
organizational objectives.
Supervisors are the key people among managers at different levels.
They are the link between the top and middle management and the
workers. Take, for example, the foreman of the factory or the office
superintendent in the office. Both of them are members of the
management team, and are in direct contact with operatives in the
workshop and clerical staff in the office. They are the mouthpiece of
management for communicating its ideas, plans and policies to the
workers and employees. At the same time, they have to play the role of
principal spokesmen of their subordinates to communicate their feelings
and grievances to the management. Thus, it is only the supervisor who, as
a member of the management team, is capable of developing links to
workers. Supervisors are expected to maintain the best and friendly
relations with their seniors as well as with the workers and enjoy the trust
and confidence of both management and operatives.
 Motivation
Motivation is one of the important elements of directing. Issuance of
proper instructions or orders does not necessarily ensure that they will be
properly carried out. It requires manager to inspire or induce the
employees to act and get the expected result. This is called motivation. It
is forces that inspire a person at work to intensify his willingness to use the
best of his capability for achievement of specify objectives. It may be in
the form of incentives like financial (such as bonus, commission etc.) or,
non-financial (such as appreciation, growth etc.), or it could be positive or
negative. Basically, motivation is directed towards goals and prompt
people to act.
Importance of Motivation
While performing a job two things are required. The ability to work
and the willingness to work. Without willingness to work, ability to work
cannot produce results. The importance of motivation lies in converting
this ability to work into willingness to work. Performance depends on

10. ability as well as willingness; and willingness depends on motivation.
Thus, motivation is a key element in directing people to do the job. Some
of the other benefits or importance of motivation are:
 With proper motivation there can be maximum utilization of the
factors of production like men, money, material etc.;
 If employees are motivated it will reduce employee turnover and
absenteeism.
 Motivation fosters a sense of belongingness among the employees
towards the organization and also improves their morale.
 Motivation helps in reducing the number of complaints and
grievances. The wastage and accident rate also come down.
 With proper motivational techniques management can attract
competent and best quality employees.
 Leadership
While motivation is the process through which employees are made
to contribute voluntarily to work, leadership is the ability to persuade and
motivate others to work in a desired way for achieving the goal. Thus, a
person who is able to influence others and make them follow his
instructions is called a leader. For example, in an organization the
management decides to install some new machines to which the workers
are resisting. However, one of the workers takes the initiative, explains the
fellow workers the benefits of working with the new machines and moulds
them to accept the management’s decision. Now he is said to be leader as
he is able to influence a group of workers who followed him. In practice,
the managers have to guide and lead their subordinates towards the
achievement of goals, and so, to be an effective, a manager has to be a
good leader.
Leadership is the process, which influences the people and inspires
them to willingly accomplish the organizational objectives. The main
purpose of managerial leadership is to get willing cooperation of the
workgroup in pursuit of the goals.
Importance of Leadership
The objectives of any organization can only be fulfilled if its
employees are working towards accomplishment of such objectives. To
make people work in the desired manner, proper instructions and
guidance are necessary. And this direction process becomes effective
when the persons who give such direction have leadership qualities.

11. Leadership is essential in functioning of any organization and its
importance and benefits are varied. Some of these importances are:
 Leadership improves the performance of the employees. Leaders
can motivate the followers to work and thereby increase their
performance level.
 With continuous support and guidance, leaders are able to build
confidence among the followers, thereby increasing speed and
accuracy and decreasing wastage.
 With friendly and cooperative efforts the leader is able to build
employees’ morale which in turn contributes to higher productivity.
Maslow’s Theory of Motivation – Hierarchy of Needs
The basis of Maslow's motivation theory is that human beings are motivated by
unsatisfied needs, and that certain lower factors need to be satisfied before higher
needs can be satisfied. According to Maslow, there are general types of needs
(physiological, survival, safety, love, and esteem) that must be satisfied before a person
can act unselfishly. He called these needs "deficiency needs." As long as we are
motivated to satisfy these cravings, we are moving towards growth, toward self-
actualization. Satisfying needs is healthy, while preventing gratification makes us sick or
act evilly.
As a result, for adequate workplace motivation, it is important that leadership
understands the needs active for individual employee motivation. In this manner,
Maslow's model indicates that fundamental, lower-order needs like safety and
physiological requirements have to be satisfied in order to pursue higher-
level motivators along the lines of self-fulfillment. As depicted in the
following hierarchical diagram, sometimes called 'Maslow's Needs Pyramid' or

12. 'Maslow's Needs Triangle', after a need is satisfied, it stops acting as a motivator and
the next need one rank higher starts to motivate as it attain psychological precedence.
 Self-Actualization
Self-actualization is the summit of Maslow's motivation theory. It is
about the quest of reaching one's full potential as a person. Unlike lower
level needs, this need is never fully satisfied; as one grows psychologically
there are always new opportunities to continue to grow. Self-actualized
people tend to have motivators such as:
 Truth
 Justice
 Wisdom
 Meaning
Self-actualized persons have frequent occurrences of peak
experiences, which are energized moments of profound happiness and
harmony. According to Maslow, only a small percentage of the population
reaches the level of self-actualization.
 Esteem Needs
After a person feels that they "belong", the urge to attain a degree
of importance emerges. Esteem needs can be categorized as external
motivators and internal motivators. Internally motivating esteem needs are
those such as self-esteem, accomplishment, and self respect. External
esteem needs are those such as reputation and recognition.
Some examples of esteem needs are:
 Recognition (external motivator)
 Attention (external motivator)
 Social Status (external motivator)
 Accomplishment (internal motivator)
 Self-respect (internal motivator)
Maslow later improved his model to add a layer in between self-
actualization and esteem needs: the need for aesthetics and knowledge.
 Social Needs
Once a person has met the lower level physiological and safety
needs, higher level motivators awaken. The first level of higher level
needs is social needs. Social needs are those related to interaction with
others and may include:
 Friendship
 Belonging to a group
 Giving and receiving love

13.  Safety Needs
Once physiological needs are met, one's attention turns to safety
and security in order to be free from the threat of physical and emotional
harm. Such needs might be fulfilled by:
 Living in a safe area
 Medical insurance
 Job security
 Financial reserves
According to the Maslow hierarchy, if a person feels threatened,
needs further up the pyramid will not receive attention until that need has
been resolved.
 Physiological Needs
Physiological needs are those required to sustain life, such as:
 Air
 Water
 Food
 Sleep
According to this theory, if these fundamental needs are not
satisfied, then one will surely be motivated to satisfy them. Higher needs
such as social needs and esteem are not recognized until one satisfies the
needs basic to existence.
Applying Maslow's Needs Hierarchy - Business Management Implications
If Maslow's theory is true, there are some very important leadership
implications to enhance workplace motivation, and you don't need a masters in
applied psychology, for it to be evident. There are employee motivation
opportunities by motivating each employee through their style of management,
compensation plans, role definition, and company activities.
 Physiological Motivation: Provide ample breaks for lunch
and recuperation and pay salaries that allow workers to buy life's
essentials.
 Safety Needs: Provide a working environment which is safe, relative job
security, and freedom from threats.
 Social Needs: Generate a feeling of acceptance, belonging, and
community by reinforcing team dynamics.
 Esteem Motivators: Recognize achievements, assign important projects,
and provide status to make employees feel valued and appreciated.
 Self-Actualization: Offer challenging and meaningful work assignments
which enable innovation, creativity, and progress according to long-term
goals.

14. Remember, everyone is not motivated by same needs. At various
points in their lives and careers, various employees will be motivated
by completely different needs. It is imperative that you recognize each
employee's needs currently being pursued. In order to motivate their
employees, leadership must be understand the current level of needs at
which the employee finds themselves, and leverage needs for workplace
motivation.
Power and Influence in Organization
The success of a manager in influencing others in the organization is not
determined solely by his skill in communicating, in the technical sense. It is also
much affected by the amount of power he has in the organization. Power has
been defined as the potential to influence the actions of another person in the
direction desired by the influencer. The capacity to influence, or power, that a
person in the organization has is determined by many factors, the formal
authority of his position being only one of these. Below is a classification of
power on the basis of its source:
1. Legitimate Power – This power comes by virtue of a person’s occupying
a position in an organization. As an example, the school teacher is
generally expected to decide what subject matter should be discussed, in
what order, using what teaching method.
2. Expert Power – This is capacity to influence which arises from expert
knowledge that the influencer has. As an example, we generally do what a
doctor tells us to do when we are suffering an ailment, even though the
doctor is not our superior in the organization.
3. Referent Power – This is power that comes by virtue of some personal
characteristic (“Charisma”) of the person which others identify with.
Before the February revolution, Cory Aquino could move hundreds of
thousands Filipinos to boycott certain business establishments even
though she occupied to position in government at that time.
4. Reward Power – This is power that comes by virtue of a person’s ability
to give or withhold resources which are valued by others. Thus, many
politicians in our country have power which results from their ability to
dispense patronage.
5. Punishment Power – Closely related to Reward Power, this is power
which comes from the capacity to deprive a person of something of value.
Thus, a robber with a gun over our head has power over us.
6. Relationship Power – This is power which comes from a system of
informal personal obligations which has been built up between people. In
the Philippines, Utang na Loob and long standing family alliances

15. (especially in the rural areas) are ready examples of this source of
influence.
It will be noted that the three of the above sources of power normally
attach to managerial position in most organizations. Thus, a person occupying a
supervisory position has legitimate power, reward power (ex. Recommendations
for bonuses, promotions, citation, etc.), and punishment power (reprimand,
transfer, demotion, etc.), over his subordinates. The other three sources of power
described above, on the other hand, attach not to the position, but to the person
himself. Thus, the potential for influence of a manager in an organization is
determined both by his position and his personal characteristics.
It is important to understand the non-position based sources of influence
in organizations for several reasons. One is that the continuous exercise of
position based power, especially punishment power, to influence others can
generate resistance over time. People do not generally enjoy being ordered to do
things all the time. Secondly, subordinate actions based on commitment rather
than mere compliance is often necessary, especially if the manager expects the
subordinate to exercise initiative and imagination in implementing his directives.
Thirdly, managers are dependent in varying degrees on other persons in the
organization over whom they exercise no positional power. For example, the
sales manager may need the cooperation of the production manager to make
special accommodations to a client whom he values. In such cases, influence
can still be exercised by a manager based on non-positional power. Thus, the
cultivation of the various sources of power increases a manager’s repertoire of
influence modes and increases his flexibility in exercising his directing function.
Directing and Leadership
The discussion of position and non-position based influence in an
organization opens the way to a discussion of manager’s leadership function and
style. Clearly, the term leadership connotes more than just the ability to influence
others through compulsion. Because of the great difference that a manager’s
leadership style can make in terms of the performance of his subordinates.

16. Case Study
METRO MANILA UNIVERSITY
On April 2, 1990, Mr. Rene Roces, Vice President for Finance of Metro
Manila University (MMU), was reading the Balance Sheet of March 1990. This
was the first time that quarterly financial statements were prepared for MMU- a
handiwork of Mr. Aragon, recently appointed Vice President for Administration.
While reviewing the financial statements, however, Mr. Roces noticed that the
cash balance was about 50 million so he immediately called Mr. Aragon to a
meeting. “Why should the University hold such a large amount of cash?
Shouldn’t we invest more in Treasury bills that yield at least 5% more than
savings accounts, Mr. Roces asked. Mr. Aragon was surprised by this question
and being relatively new on the job, requested some time to study the matter.
MR. ARAGON
Roy Aragon, 32 years old, was a graduate of MMU. He had been teaching
in the College of Engineering for ten years until he was appointed VP for
Administration upon the retirement of the previous incumbent in December,
1989. Being somewhat young to be Vice President at MMU, he took his new
duties seriously. Among the innovations he had pushed for was the preparation
of quarterly financial statements of MMU. Previously, the financial statements of
the university were prepared only at the end of the year.
MEETING WITH CHIEF ACCOUNTANT AND CASHIER
Mr. Aragon decided to hold a meeting with the Chief Accountant and the
Cashier concerning the cash problem. The two officers were older than Mr.
Aragon and had served MMU longer. During his first months on the job, Mr.
Aragon was impressed by his two subordinates whom he found to be
independent minded, professional, and very knowledgeable about the financial
affairs of MMU.
During the meeting, the Cashier explained that funds were kept in savings
accounts and not in higher yielding securities like Treasury Bills because the
latter felt that he needed to keep cash for unforeseen payments. According to the
Cashier, the academic units are allocated their budgets at the start of the year.
“Once they get their budgets, they assume that we have the cash to be spent by
them anytime,” the Cashier continued.
The Chief Accountant, however, informed Mr. Aragon that cash
disbursements for certain accounts had a more or less regular pattern. “For
example, Trust funds for Scholarships and Professorial Chairs should be
invested in higher yielding securities because these funds have definite

17. schedules for payment,” the Chief Accountant said. The Cashier did not argue
with the Chief Accountant’s statement, yet the former insisted that cash
disbursements are impossible to predict so that funds should not be “locked-in”
investments in securities even for 30-day period. “The practice of keeping our
funds in a savings account is a long standing practice and Mr. Tirona (Aragon’s
predecessor) had never complained about it,” the Cashier said.
Since it was getting late and no agreement appeared in sight, Mr. Aragon
decided to adjourn the meeting and continue discussion on the matter at another
meeting the following week.
After the Cashier and the Chief Accountant had left the room, Mr. Aragon
wondered why the Cashier was objecting to the idea of investing part of the
University’s funds in higher yielding securities, an idea which he personally
considered to be meritorious. Mr. Aragon realized that as Vice President for
Administration, he had the authority to make changes in the cash management
practices of MMU. At the same time, he realized that the Cashier was one of the
most senior and highly respected members of management at MMU. He was not
sure what he would do if the Cashier continued to object to the proposed change
in the coming second meeting.

18. Reference
 http://managementstudyguide.com/directing_function.htm
 http://www.nios.ac.in/srsec319new/319EL13.pdf
 http://www.slideshare.net/pragati_jain/directing-as-management-function
 http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html
 Fundamentals of Management
By: Rafael A. Rodriguez and Erlinda S. Echanis