Directing is essential for effective and efficient functioning of the organisation due to the following reasons:
(i) Directing helps to initiate action by people in the organisation towards attainment of desired objectives.
(ii) Directing integrates employees' efforts in the organisation in such a way that every individual effort contributes to the organisational performance. Thus, it ensures that the individuals work for organisational goals.
(iii) Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership.
(iv) Directing facilitates introduction of needed changes in the organisation. Effective directing through motivation, communication and leadership helps to reduce such resistance and develop required cooperation in introducing changes in the organisation.
(v) Effective directing helps to bring stability and balance in the organisation since it fosters cooperation and commitment.