Importance & Components of Direction

Importance of Direction

The direction is the heart of management process. Without having effective and efficient direction, corporate goal cannot be achieved. As we know that direction relates with management in action, it plays a vital role in organization’s life. The importance of direction can be understood by the fact that all the actions, activities, works or functions are initiated by it. Corporate objectives can be achieved if the corporate decisions are implemented; and this regard planning, organizing, and staffing . It is only the direction which helps the organization to implement the decision. Under the concept of directing, a manager stimulates action by giving direction to the subordinates. The importance of direction can be discussed below:

  • Initiates action:
    According to the ability of subordinates through the effective and efficient direction, a manager initiates the job/ task assigned to them to the best of their ability. Of course, a good plan, a sound organization and a set of high-quality personnel may not work well and put the organization in success unless it is directed in the right perspective.

  • Improves efficiency:
    The human factor, working staff member of an organization are very important for the organizational success. So, the work efficiency of the staff members should be enhanced. The manager, while directing, considers the subordinates having some potential and capability and he utilizes this in organization’s work through supervision, motivation and so on. If subordinates are encouraged, their abilities are appreciated and more guidance are provided, the efficiency can be intensified, improved and enhanced.

  • Integrates efforts:
    It is only through the direction that a manager can create a sense of coordination and cooperation among the subordinates. A manager, while directing , uses different techniques to integrate the efforts of subordinates. So, a successful manager establishes a harmonious coordination among the staff.

  • Facilitates changes:
    There exists dynamism in external as well as an internal environment of a business unit. The components of the environment are frequently being changed, and it may either create an opportunity or it may pose threats. In both cases manager has to work very carefully. He is required to make an adjustment with the working staff. In such situation, the staff members may oppose the newly enforced environment adjustment, however, a manager has to convince the staff and help them personally in their way of performance.

  • Stability and growth:
    If the direction is efficient and effective, it may help the organization to prove its existence and develop in the due course of time. If a direction is given truly, honestly and responsibly, the organization can be developed, its operations can be expanded and it could achieve stability. Thus, it aims at stability and growth.

  • Achieves the mission and objectives:
    Direction helps the organization to achieve the objectives and fulfill the mission. It is through the effective direction that a business firm gets its mission because direction utilizes the resources properly with the help of inspired subordinates under the team spirit. So, it has become essential for the attainment of business goals.

  • Means of motivation:
    There are five elements of direction and one of them is motivation. When a manager directs the people for any action, he motivates them to work also. It is the directing role of manager, that he, while directing the work, motivates the staff to contribute their maximum efforts towards the accomplishment of the objectives.

Components of Direction

We learned that direction is one of the important managerial functions. This function of management is quite different than that of planning, organizing and staffing because these all are concerned with preparation for doing the works for the organization, but this direction is directly related to the human factor of an organization. We know that direction function starts with action and culminates in action.The components of direction can be shown below:

  • Motivation:
    Under the process of directing, a manager has to motivate the subordinates in such a way that they could come forward with a willingness to work and ready to cooperate for the achievement of corporate goals. One should clearly understand that motivation is the psychological process through which a manager motivates, encourages or inspires the people to work in connection with satisfying their needs and wants.

  • Leadership:
    Another important component of direction is leadership. To put the organization in success, effective leadership is desirable without which direction function may not be completed. This leadership denotes a quality of manager to guide and influence the work of his subordinates. It is rightly said that the success of a business firm is dependent upon the quality of its leadership.

  • Supervision:
    Under this concept, the manager or the concerned senior comes in action in connection with seeing the works at progress, guiding the subordinates, giving more advises and controlling the wrongs by correcting them in time. It means effective supervision helps the organization to observe whether the works are performed as per the plan, policy, programs, etc. So, supervision is a regular and continuing function of direction.

  • Communication:
    Communication means transfer of information or a process of passing information and understanding from one person to another. It relates to the flow of information, in the case of an organization, from the top level to the low level of management units and from a low level to top level of management. Thus, a manager should work very carefully while communicating the information to keep the organization successful.

  • Coordination:
    Without coordination, a manager cannot think about the accomplishment of the job. Modern management is based on the principle of specialization in which the concept of division of labor is basically applied. The work is divided into many parts and each part of the work is assigned to a particular person or group of persons. To accomplish the whole work, coordination among the persons and groups becomes necessary.


Sharma, P., Shrestha, A., Pant, H., Gautam, I., Thapa, R. B., & Upadhyay, P. (2011). Buddha Publication.

Poudyal, Santosh Raj, Business Studies-XII, Asmita Book Publication, Kathmandu

Bhandari, Kedar Prasad, Business Studies-XII, Bundipuran Prakashan, Kathmandu

The importance of direction are:

  • -Initiates action
  • -Improves efficiency
  • -Integrates efforts
  • -Facilitates changes


Components of direction are:

  • - Motivation
  • - Leadership
  • -Supervision 
  • - Communication

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