Meaning: Directing refers to instructing, guiding, communicating and inspiring people so that the objectives can be achieved.

Importance: The importance of direction is highlighted through the following facts:

(i) It Initiates Action: The employees are appointed up to the first three functions of management (planning, organising and staffing). But they cannot commence their job until they are not informed about what to do and how to do. This job manager performs through direction. Thus, it is evident that it is direction which initiates action in an organisation.

(ii) It Integrates Employees’ Efforts: Many employees work in an organisation. If any one of employees in the employees’-chain does not perform up to the mark, it adversely affects the performance of remaining employees. Thus, it is essential to establish coordination among all the activities. Manager establishes this coordination by supervising, providing good leadership, motivating and exchanging ideas with his subordinates.

(iii) It is the Means of Motivation: The objectives of an organisation can only be achieved by motivated employees. Motivated employees work with full dedication and with a feel of belongingness. Now the question is how can the employees be motivated? The work of motivating employees can be accomplished through the Directing function of management.

(iv) It Facilitates of Implementation Changes: Oftenly, employees show resistance to change in their organisational structure. But with the changing demand of time, it needs to be implemented/enforced. Managers through the medium of Direction shape the mindset of the employees in a manner that they willfully accept changes.

(v) It Creates Balance in the Organisation: Sometimes there is a clash between individual and organisational objectives. Directing helps to settle down these clashes and creates a balance in the organisation. On the one hand, a person works in an organisation for the fulfilment of his objectives like higher salary, promotion, etc. On the other hand, the objectives of a company can be to earn higher profits, more market share etc. Managers through direction tell employees, how they can fulfil their objectives while achieving organisational objectives.