SAINT MICHAEL’S COLLEGE OF LAGUNA

OLD NATIONAL ROAD, PLATERO, CITY OF BINAN, LAGUNA

Lesson 6: The Leading Function

Objectives:

At the end of the lesson, the students are able to

1. Analyze motivation, leadership, and communication work in an organization

Definition
Leading according to Kooth and Weihrich, is the process of influencing people so that they
will contribute to organization and group goals. It is influencing people so that they will work
willingly and enthusiastically toward the achievement of organizational goals ultimate objectives.
When we say influencing, it does not mean that coercing/forcing, imposing, suctioning, or pushing
people behind. It means rather-motivating people so that they contribute their maximum effort for
the achievement of organizational goal.
Leading/Directing is that part of management function which actuates the organization
members to work efficiently and effectively for the attainment of organizational objectives.
Planning, organizing, and staffing are merely preparations for doing the work, and the work starts
when managers start performing the directing function. Directing is the interpersonal aspect of
management, which deals directly with influencing, guiding, supervising, and motivating the
subordinates for the accomplishment of the per determined objectives.
Directing is a challenging function of management because it deals with the human
element of the organization, which represents a complex of forces about whom not much is
known. A person's beliefs, hopes, ambitions, behavior, satisfaction, and interaction with other
persons are all involved in the directing process.

Direction focused on:

o To ensures that sub-ordinates do their work.

o The subordinates do it well not only according to plan but also as per the expectation of
management in order to achieve the goals.
o To develop interpersonal relations in a group.

Nature of Direction

Directing is the heart & soul of management. Without directing management may come to
stand still.

1. Important function of management: - Any amount of planning, organizing & staffing can
be done with proper direction. Responsibility for attaining the objectives must be guided
and directed for truthful result.
2. Performed by all levels of management: - Direction function is performed by top level,
middle level or low level. Every superior is expected to provide guidance and direction to
those who lose to him for such direction.
3. Continuous process: - It is an unending process. It goes with work. As long as work is their
direction is there.
4. Result oriented: - (a) To get the work done and (b) To see the management work more
responsibly. The manager’s job is not only to see that the work is completed according to
him and proper direction is provided but he has to ensure that the problems faced by men
are solved without delay.
 5. Provides link between different management functions: - It provides effective link in
planning, organizing, staffing in the organization with proper control.
6. Involvement of human relationship: - Directing creates co-operation & harmony among the
members of the group

Importance of Direction

Direction is described as the heart of the management process. It is the life spark of an
organization which sets the organizational machine into motion. Thus, direction is an important
function of management on account of following reasons.

1. Direction initiate’s action: Management through direction conveys and motivates

individuals in the organization to function in the desired way to achieve organizational
objectives in the absence of direction.
2. Direction integrates an effort of employees in order to achieve organizational objectives
interrelated activities of all the employees need to by systematically integrated which is
done through direction.
3. Direction attempts to get maximum from individuals: Individuals in the organization have
enough potentialities and capabilities, which can be used through proper motivation
leadership and communication which are the elements of direction.
4. Direction facilities changes in the organization: Organization is described as a subsystem
of a social system, hence any change in the social system, has to be accommodated by
the organization by changing itself. In order to accept and implement these changes
management has to motivate the employees affected by these changes, which is the
essential part of direction.
5. Direction provides stability and balance in the organization: Direction through effective
motivation communication and leadership provides stability in the organization and helps
in maintaining balances between different departments in the organization. Hence the
organization can function efficiently and effectively over a long period of time.

Thus, direction stands out as an important function of management. It has also been
observed that there is a high correlation between direction and work performance.

Elements of Direction

1. Motivation: - Employees come forward to work in any organization to satisfy their needs.
Motivation relates to continuous attempt made by executives to influence on the behavior
without any force.
2. Leadership: - Leadership is essential aspect of directing. Inspiring leadership act as a
spark plug for lightening the efforts and a desire to work in sub-ordinates. The success
depends upon good quality leaders.
3. Communication: - It creates mutual understanding between management & other
members of the organization. The manager should explain in simple and clear terms what
to do, how to do & whom to do to the workers. Modern management needs effective
communication as well as active participation by all the members.
4. Co-ordination: - It is the essence of management. It is the duty of manager to co-ordinate
all the activities within the organization. Co-ordination will lead to unity of direction.
5. Supervision: - The supervision means a job of sub-ordinate is supervised by the superior.
It is essential part in directing. It is to be done at all levels of management from top to
bottom. He gives instructions and guide to the people for attaining the objectives. The
supervisory management supervises the workers for solving their problems.
Definition of Leadership

There are many different ways to define leadership as a hallmark management function.
Some of the most popular definitions given by prominent leadership authors and specialists are
given below:
o John C. Maxwell- “Leadership is not about titles, positions, or flowcharts. It is about one
life influencings another.”
o John Baker- “Leadership is accomplishing things that reach beyond solitary abilities by
acting- and getting others to act- with a maturity that surpasses self-interest.”
o Tom Kennedy- “Leadership is getting people to want to follow. That requires engaging
them passionately, from the heart, and requires persuading people to change.”
o Koontz and O’Donnell- “Leadership is the ability to exert interpersonal influence by means
of communication, towards the achievement of a goal.”
o R.T. Livingston- Leadership is the ability to awaken in others the desire to follow a common
objective.”
o Peter Drucker- “Leadership is the lifting of man’s vision to higher sights, the raising of
man’s performance to higher standards, the building of man’s personality beyond its
normal limitations.”
o Louis A. Allen- A leader is one who guides and directs others people. He gives his
followers direction and purpose by influencing their behavior.”

Nature of Leadership

1. Leadership implies followership. In every organization, a leader is usually also a follower.

For example, an employee’s supervisor also has an immediate supervisor. Therefore, to
be an effective leader, one has to learn also to become an effective follower to relate well
with both the downward and upward hierarchy of the organization.
2. Leadership involves mutual and collective interest. The objectives of the leader and his
followers should be one and the same. If the leader’s self-interest is different from that of
the followers, then there is no leadership.
3. Leadership involves influence. Effective leadership implies being able to exert influence
over subordinates or followers aside from giving them usual instructions or directions. It
also involves a degree of mutual respect between the leader and the followers.
4. Leadership is a function of motivation and encouragement. Leaders should be able to
encourage and motivate people to perform willingly and strive to achieve company goals
and objectives.
5. Leaders must be exemplary. A leader must be able to set an example before his followers.
He must become a model of behavior so that his followers will be motivated to work hard.
To influence followers, he must show the way by his own example.

Effective Leadership Skills

1. Technical skills. This refers to a specialized knowledge or expertise related to performance

of a job function.
2. Human skills. This includes the ability of a leader to interact with people both inside and
outside of the company and get along with them, motivate them, and inspire them.
3. Conceptual skills. These refer to the ability to understand information, how interrelated
parts fit together as whole, and analyze and interpret information to make decisions.
4. Personal skills. These involve possessing certain personal attributes to get the best out of
others, such as intelligence, emotional maturity, personal motivation, integrity, and
flexibility.
5. Political skills. These refer to the ability to wield power and influence over others in a
positive way and use it to relate the hierarchical structure in an organization.
Function of a Leader

Leaders are important in organizations because they drive and motivate people to work
for the mutual benefit of both the employees and the company. Specifically, leaders also perform
a variety of functions such as the following:

1. Leaders take initiative.

2. Leaders identify group goals and motivate followers to achieve.
3. Leaders represent their organizations.
4. Leaders act as figureheads or organizations they represent.
5. Leaders act as arbitrators and resolve issues among subordinates in the workplace.
6. Leaders guide and direct subordinates.
7. Leaders interpret information and relay it to employees.
8. Leaders encourage teamwork.

Leadership Styles

1. Autocratic (Authoritarian)

o Manager retains power (classical approach)

o Manager is decision-making authority
o Manager does not consult employees for input
o Subordinates expected to obey orders without explanations
o Motivation provided through structured rewards and punishments
2. Bureaucratic

o Manager manages “by the book¨

o Everything must be done according to procedure or policy
o If it isn’t covered by the book, the manager refers to the next level above him or her
o Police officer more than leader
3. Democratic

o Often referred to as participative style

o Keeps employees informed
o Shares decision making and problem-solving responsibilities
o “Coach” who has the final say, but…
o Gathers information from staff members before making decisions
o Help employees evaluate their own performance
o Allows employees to establish goals
o Encourages employees to grow on the job and be promoted
o Recognizes and encourages achievement
o Gan produce high quality and high quantity work for long periods “of time

4. Coercive

o Power from a person’s authority to punish

o Most obvious types of power a leader has.
o Good leaders use coercive power only as a last resort:
o In today’s sophisticated and complex workplace, excessive use of coercive
power unleashes unpredictable and destabilizing forces which can ultimately
undermine the leader using it.
5. Transactional

o Motivate followers by appealing to their own self-interest

o Motivate by the exchange process.
o EX: business owners exchange status and wages for the work effort of the
employee.
o Focuses on the accomplishment of tasks & good worker relationships in exchange for
desirable rewards.
o Encourage leader to adapt their style and behavior to meet expectations of followers
 6. Transformational

o Charismatic and visionary

o Inspire followers to transcend their self-interest for the organization
o Appeal to followers' ideals and values
o Inspire followers to think about problems in new or different ways
o Common strategies used to influence followers include vision and framing
o Instils feelings of confidence, admiration, and commitment
o Stimulates followers intellectually, arousing them to develop new ways to think about
problems.
o Uses contingent rewards to positively reinforce desirable performances
o Flexible and innovative.
7. Laissez-Faire

o Also known as the “hands-off¨ style

o Little or no direction
o Gives followers as much freedom as possible
o All authority or power is given to the followers
o Followers must determine goals, make decisions, and resolve problems on their own.

Motivation

It comes from Latin word “movere” w/c means to move and is concerned with what
activates human behavior and what directs this behavior towards a particular goal. 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. It helps in reducing the number of complaints and grievances and
concerned with how this behavior is sustained.

A motive is a stimulus w/c leads to an action that satisfies the need. In other words, motive
produces action.

Nature of Motivation

1. Motivation is an internal feeling. It is a psychological phenomenon that is generated in the

mind of an individual and also generates the feeling that he or she lacks or needs certain
things, thus forcing or driving or her to behave a certain way to achieve it.
2. Motivation is related to needs. A need is a physiological or psychological deficiency a
person feels compelled to fulfill. A person feels motivated when he or she feels that there
are needs (or in some cases, wants) that have to be satisfied.
3. Motivation produces action or goal-directed behavior. When a person is motivated, his or
her behavior is directed toward achieving a specific goal.
4. Motivation can either be positive or negative. Motivation can be based on rewards or it
can also be based on force or fear.

Factors of Motivation

Certain factors that enable a person or worker to perform well on a job are as follows:
 1. Willingness to do the job. When a person is motivated to do a certain job, he or she
likes and enjoys what he or she is doing and will likely produce the expected output.
2. Self-confidence to carry out specific tasks. When workers feel that they are equipped
with the necessary skills and training to perform a certain task, they feel more
motivated.
3. Need satisfaction. People will perform tasks well if they that their needs will be satisfied
by doing so.

Types of Motivation

1. Positive motivation. This is the process of encouraging others to do as instructed because

of the possibility of gaining a reward. Positive motivation may include the following:
• Praise
• Credit for work done
• Salaries and wages
• Appreciation
• Sincere interest in subordinates or individuals
• Delegation of authority and responsibility
2. Negative motivation. This type of motivation is based on force, fear, and punishment. A
person may act as instructed because of fear of the consequences of not doing it or
because of punishment entailed in not doing it. The use of fear or punishment, however,
may frequently result in frustration among workers which may lead to maladaptive
behavior, hostile state of mind, or unfavorable attitude on the job.

Theories of Motivation

1. Traditional Theory of Motivation

o Evolved from the work of Frederick W. Taylor
o Employee should be compensated according to individual production
o Money is the primary motivator w/c means financial rewards are directly related to
performance in the belief that if the reward is great enough, employees will produce
more.

2. The Need Hierarchy Theory

o postulated by industrial psychologist Abraham W. Maslow.
• The Physiological Needs- basically the needs of the human body that must be
satisfied in order to sustain life. It includes food, sleep, water, shelter, exercise,
clothing, etc.
• Safety Needs- are concerned w/ protection against danger, threat or
deprivation. Favoritism, discrimination & uninformed administration of
organizational policies are all actions which arouse uncertainty & therefore
affect the safety needs.
• Social Needs- categorized as the needs for love, affection, belonging that are
all concerned w/ establishing one’s position relative to others. This need is
satisfied by the development of meaningful personal relations & by acceptance
into groups of individuals.
• Esteem Needs- influence the development of various kinds of relationship
based on adequacy, independence, & the giving & receiving of indications of
self-esteem & acceptance.
• Self-Actualization / Self-fulfillment- the need of people to reach their full potential
in applying their abilities & interest to functioning in their environment. This need
is concerned w/ the will to operate at the optimum & thus receive the rewards
that are the result of that attainment. Rewards may not only be in terms of
 economic & social remuneration, but also in terms of psychological
remuneration.

3. Achievement-Power-Affiliation Theory
o Developed by David McClelland.
o This theory holds that all people have 3 needs:
• A need to achieve – a desire to do something better or more efficiently than it
has been done before.
• The need to power - is basically a concern for influencing people – to be strong
& influential.
• The need for affiliation - is a need to be liked – to establish or maintain friendly
relations w/ others
o McClelland maintains that most people have a degree of each of these needs
that the level of intensity varies.

4. Motivation-Maintenance Theory
o It contends that motivation comes from the individual, not from the manager.
o Workers can be motivated best by satisfying the needs of the individuals for the
satisfiers.

5. McGregor's Theory X & Y

o Theory X views human beings as naturally lazy & hence must be motivated by
force.
o The individual must be threatened w/ punishment in order to make him increase
his productivity.
o The direction & control comes from outside the individual to motivate him.
o Theory Y views that external force or punishment is not the best way of
motivating individuals because they are capable of exercising self-direction &
self-control

6. Achievement Theory
o An individual’s ambition to do things better or achieve something is due to a
very specific motive or need.
o This need is not something “inborn” but it can be required through training &
teaching the trainees to think & behave in terms of achievement.

Communication

The word communication is derived from the Latin word “Communis” which means
common i.e., sharing of information. Communication is transferring some information and
understanding of that information from one person to another. Communication is the sum of all
things one person does when he wants to create understanding in the mind of others. The main
purpose of communication is to convey ideas, thoughts, and opinions from one person to others.

It helps employees to understand their role clearly and perform effectively and 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 authorities
successfully accomplished in an organization.

Elements of Communication
 1. Sender: The person who speaks out or sends a written message or ideas to another
person.
2. Receiver: The receiver is the person to whom the message is communicated.
3. Message of communication: The information order, instruction i.e., to be communicated
that exists in the mind of communicator.
4. Encoding: It is the actual content of communication. The communicator organizes his
ideas into a series of symbols such as words, signs, actions, pictures, etc. which will be
communicated to receiver.
5. Decoding: The receiver converts the symbols received from the sender to give him the
meaning of the message.
6. Ideas: It refers to the subject of communication which may include opinion suggestion,
ideas, orders, etc. Channel: These symbols are transmitted to the receiver through certain
media, for e.g.TV, telephone, radio, etc.
7. Feedback: Feedback refers to the reply or response of the receiver. It is always directed
towards sender

Importance of Communication
o Communication must be for every business. A good business can be done with effective
communication only.
o For maintaining proper co-ordinance in various department of business, up to date
communication system must be established.
o Effective communication reduces the gap between management and employees.
o Communication plays an important role in negotiation.
o Acquiring excellent communication skill is an important qualification.
o It is a tool of collecting information.
o Communication helps in exchanging ideas and information.

Types of Communication

A. Based on Expressions:
1. Oral Communication- This is the important category of communication. Oral
communication helps to build up human relationship. Words are the symbols that
express our thoughts about what we see or think about.
2. Written communication- When information is conveyed by writing, typing, painting or
any other mechanical means it is called as written communication. Speech comes to
us naturally and spontaneously but writing comes after practice and careful
organization of thoughts

B. Based on Organizational Structure:

 1. Formal Communication- It is mostly in writing. These are generally associated with the
position of the receiver in that structure. For e.g., when the general manager instructs
his subordinates as a superior authority it is a formal communication
2. Informal Communication- These communications are free from all the formalities they
are based on informal relationships between the parties. It may be conveyed by simple
smile, glance, or silence.

C. Based on Direction:
1. Upward communication- Communication is termed as upward if it flows from
subordinates to their superior levels such communication includes reaction and
suggestions from employees- This type of communication is considered as a main
source of motivation for employer
2. Downward communication- Communication is termed as downward if it flows from the
uppermost level of management towards the operating level. It includes rules, order,
regulations, installations, etc. They are directive in nature.
3. Horizontal communication- It takes place between two subordinates working at the
same level i.e., between two or more persons who are on equal level. All these
communications may be verbal or written.

Ways of Communicate
o Informal talk or grapevine o Reports
communication o Conferences/ Conventions
o memoranda o Meetings
o Telephone calls o Bulletin Board Notes
o Interoffice News o Exhibits & Displays
o Letters o Visual Aids

Barriers to Communication

1. Distance- physical distance between the supervisor & his subordinates results in less face-
to – face communication. Less face-to-face communication may lead to misunderstanding
or lack of understanding of the message being communicated.
2. Distortion- this occurs when an individual fails to distinguish actual data from his own
views, feelings, emotions.
3. Semantics- this deals w/ the language aspect of communication words with multiple
meanings in a message may lead to misinterpretation of the message.
4. Lack of Leveling- refers to various differences in the levels of supervisors & subordinates.
If a supervisor communicates w/ the subordinates on his own level of knowledge & ignore
the level of the subordinates, then communication breaks down.
5. Lack of Trust- it has to do w/ the previous experiences of subordinates’ dealing w/
supervisor.
6. Inaccessibility- In some organization, we find supervisors who are often out, or keep
themselves busy and therefore are not available to subordinates for consultation,
discussion or guidance. Such inaccessibility results in communication breakdown.
7. Lack of Clear Responsibilities- Lack of clarity in duties & responsibilities result in status &
role uncertainty. The position & the role w/c are occupied & played by the subordinates
are unclear to him.
8. Personal Incompatibility- Often the personality of the supervisor & the subordinates clash
& thus creates communication blocks.
9. Refusal to Listen- refusal to listen may be due to a superiority complex feeling of “I know
everything” or an inferiority complex feeling or “I am no good.”
10. Failure to Use Proper Media- the effectiveness of communication depends on how a
supervisor chooses the proper media for this own situation.
 11. Communication Gap- refers to the defects or loopholes in the formal network of
communication. As the organization grows & expands, the networks tend to become large
and complex.
12. Lack of Direction- the manifest meaning of the message is made so attractive that the real
meaning is lost.

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Iñigo, C. (2014). Management for Filipinos (Principles & Application).

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Ng, MF. (2019). Organization and Management.

Mandaluyong City: Anvil Publishing, Inc.