The purpose of the flight director is to provide the pilot with a representation of how to manuever the airplane in order to accomplish a particular task.
The flight director is a representation that appears on the attitude indicator (or other appropriate instrument/display). If it is working correctly and used correctly, the pilot need only maneuver the airplane such that the little airplane on the attitude indicator fits against or follows the flight director. That's it. If the pilot has selected the heading and altitude functions of the flight director, then all the pilot need do is hold the little airplane against the crossbars, and the airplane will hold altitude and heading.
The flight director has multiple modes that may be selected, depending on what one wants to accomplish. A navigation mode will allow the flight director to follow the chosen mode of navigation. That may be a GPS signal, VOR, or input from multiple sources in a flight management system. The system may offer turn anticipation, in which the flight director anticipates when to begin a turn to roll out on a new course, or to intercept a radial, localizer, etc. The same is true of altitude intercepts and altitude holding.
The flight director is not a substitute for flying the airplane using basic instrument skills, but a valueable tool to assist in orientation and control of the airplane...when used on conjunction with traditional methods of aircraft control. It's value is in presenting a clear pictorial display of exactly what attitude functions a pilot must undertake to make the airplane do what the pilot has told the flight director he wishes it to do.