Which of the following is not an element of directing?

The correct answer is Option (3) → A Managing Director declares share in profits to shareholders' contributions, aiming to enhance company's profitability.

Directing means instructing, guiding, motivating and leading the people who work in the organisation. Its four elements are supervision, communication, motivation and leadership.

• Option (1) A Supervisor explains a worker who will perform them on a lathe machine. — An element of directing (Incorrect). The supervisor tells a worker how to do his job on the machine. This is supervision and communication.

• Option (2) A Mining Engineer explains safety precautions to follow while working in a coal mine. — An element of directing (Incorrect). Giving instructions to workers is communication, a part of directing.

• Option (3) A Managing Director declares share in profits to shareholders' contributions, aiming to enhance company's profitability. — Not an element of directing (Correct). Directing deals with the people who work in the organisation. Shareholders are its owners, not its employees, and a share of profit paid to them is a dividend, which is a financial decision. In the example in the book, the Managing Director shares profits with the managers for their contribution. That is a financial incentive which motivates them, and so it is directing. With shareholders in place of managers, the example is no longer directing.

• Option (4) A Manager inspires employees by leading by example and participating in work. — An element of directing (Incorrect). Inspiring people by doing the work alongside them is leadership.