Final Management Manual Sep 20, 2020

EKT Trade and Investment PLC
Management policy and procedure manual. Jan, 2017 Page 0

Part I: Introduction
EKT Trade and Investment PLC envisages to have a separate policy and
procedure manual governing overall personnel administration of its
management staff, which comprises all members of top and middle
management.
The manual consists of five main parts, namely the introduction, purpose
statements of EKT, organizational structure of EKT, Management Administration
Policies and Procedures and General Policy aspects.
1.1 Definition of Key Words and Phrases

In this manual unless the context requires otherwise,
1.1.1 "Chief Executive Officer (CEO)" means the Chief Executive Officer of EKT
1.1.2 “General Manager (GM)” means the General Manager of EKT.
1.1.3 “Deputy G/Manager (DGM)” means the Deputy General Manager of EKT.
1.1.4 “Top Level Management Committee” means the Management
Committee at Company level composed of the General Manger of the
Company, Deputy General Manager and Department Managers,
reporting to the GM or CEO.
1.1.5 “Management Members / Managers” means those with managerial
responsibilities at top and middle levels, namely:
a) Chief Executive Officer
b) General Manager
c) Deputy General Manager
d) Department Managers
e) Middle Managers
1.1.6 “Top Management” includes all Department Managers or members of EKT
management committee as defined on items 1.1.4 above.
1.1.7 “Middle Managers” includes all Coordinators and/or Division Heads with
equivalent status, who directly report to members of top management as
defined on item 1.1.5 above.
1.1.8 “Manual” means this Management Policy and Procedural Manual.

1.1.9 “HR Policy and Procedure Manual” means the policy and procedural
manual by which all non management staff (employees) of EKT are
governed.
1.2 Purpose of the Manual

1.2.1 To serve as a guideline for all top and middle management members
in matters pertaining to management administration, policies, and
procedures and over all principles that governs organization and
structure of EKT.
1.2.2 To clearly demarcate management administrations from those of the
employee administration as they have different responsibilities and
duties of different degrees.
1.2.3 To serve as source of information for all stakeholders on matters
related to organization and management policies of EKT.
1.2.4 To serve as a standard to evaluate effectiveness of the management
policies and procedures provided in this manual.
1.2.5 To facilitate transparency and accountability in the decision making
process.
1.3 Scope of Application
The management policy and procedure manual shall be applicable to:
 all management members (including acting managers) whose definition
is given under 1.1.5;
 all local and expatriate managers, employed on a contractual basis, shall
be fully or partially governed by provisions of this manual as shall be
clearly stipulated in their respective employment or management
contract.
It is well understood that this manual cannot exhaustively cover all management
policy issues of EKT. However, in circumstances of issues not addressed in this
manual or found to be vague or difficult for implementation/ interpretation of
any article of this manual; an advice and consultation from/with the HR and
Resources Department should be sought and final decision/approval be made
by the CEO.

1.4. Responsibility
All managers governed by this manual have the responsibility to implement this
manual. The Human Resources and Administration Department shall ensure the
proper implementation and maintenance of the same.
Part II: - Vision, Mission, and Core Values of EKT

In light of the changing business environment along with changes and
development of the country’s social, political and economic aspects as well as
the global and technological trends, EKT has clearly stipulated its mission, vision
and core values to be strictly adhered and committed by all its management
and employees.
2.1 Vision of EKT
The vision of EKT is "to be one of the top ten leading companies in trade and
investment in Ethiopia by 2025."
2.2 Mission Statement of EKT
"To boost company’s resources through sound business activities in a socially
responsible manner."
2.3 Core Values of EKT
The following core values to different internal, especially managers, and external
claimants are strictly adhered to:
2.3.1 Integrity: To behave and conduct business in the highest ethical and
disciplinary manner and in compliance with all company rules and
regulations. To show an iron discipline in keeping company secrets and
demonstrate professional ethics.
2.3.2 Diversity: employ and work with diversified range of people without any
regard to gender, race, or religion background.
2.3.3 Team work: work together towards a common objective and create
synergetic effect in realizing those objectives.
2.3.4 Technology oriented: to strive to have creative thinking, to make every
effort to solve problems creatively, to be ready to make decisions and act
on one’s disposal to solve problems at times of scarcity and difficulty.

2.3.5 Transparency and accountability: make every effort to make decisions

and practices transparent in such a way that all concerned are treated
fairly and equally and to giving equal opportunity to all.
2.3.6 Continuous improvement through employees empowerment:
Management and staff of EKT highly value the importance of continuously
improve one’s performance through continuous learning and experience.
This will be realized by trusting & empowering of all managers and
employees at all levels through a team based approach to be mutually
accountable to the company success and to provide opportunities for
growth based on performance and competence.
2.3.7 Environment friendly: to follow policies that inflict reduced, minimal, or no
harm upon ecosystems or the environment. To perform so as to maintain a
balance between the business and the ecosystems.
2.3.8 Socially responsible: an obligation to act for the benefit of society at
large.
2.3.9 Excellent customer service: Producing/providing the highest quality
product/service so as to be rated the best by customers, the community
and the shareholders.
2.3.10 . On time in full delivery (OTIF):- Managers and employees at every level
of hierarchy of EKT should accomplish their day to day task and they will
be supposed to deliver a report on time and in full (complete) manner.
Part III: - Organization of the company

3.1 General
To achieve its mission, vision and strategic objectives, the company needs to be
organized in such a way that all decision-making processes, communication
flows; and relationships and coordination are efficiently carried out. In today’s
turbulent business environment, where quick decisions and immediate responses
are critical, the traditional bureaucratic, rigid and hierarchical model of
structure has major drawbacks, (while having advantages). Therefore, the will
adopt organizational forms that foster flexibility, team working, responsiveness,

quick decision-making through reduced hierarchy and devolved

accountability.
3.2 Staffing Policy

In general the following staffing practices should be observed at all levels:
a) To keep the highly qualified, competent and committed managers/staff
permanently, even in time of crisis. This group is primarily a source of
competitive advantage to the company. To keep the proportion of the
support staff to core as much as possible to the minimum. The number of
clerical, manual and other non-professional staff should be kept at minimum
at all times so as to reduce unnecessary overhead costs.
b) Out sourcing and contracting out of non-core functions can increase
efficiency. Instead of producing/making certain functions that are not in the
business main streams (e.g. cleaning service, security service, vehicle
maintenance service, etc.), it would be advantageous to outsource or
contract out these services to outside firms or individuals. Some
experts/professions, even though in ones’ main business stream can be
contracted out or out sourced to accomplish recurrent projects. In this case
the company can have a cost advantage by acquiring expertise only when
it is needed.
3.3 Organizational Structure of EKT

The current organization structure of EKT is shown in the following diagram, which
is subjected to amendment with the approval of the CEO when required to do
so.

EKT TRADE AND INVESTMENT PLC

ORGANIZATION STRUCTURE
CEO
DGM, Corporate
Planning and Projects
General Manager
Audit EXe.Secretary
IT
Export and
Import and Tender Sales and Marketing Finance and Warehouse HR Business Partnership
Department Business Development Department Department Department
Department
Import Export Sales Finance Administration
Business Marketing General

Tender Development Warehouse
Service
Local Engineering ERP

Purchase

3.4 Delegation of Authority

Duties and responsibilities without adequate authority would be
meaningless. Equally, the authority given without accountability would be
blind bargain.
3.4.1 Importance of Delegation
 Facilitates efficient decision making at all possible levels;
 Helps staff development in that, by exercising power and deciding by
themselves, subordinates can develop their managerial skill; this makes
career advancement possible.
 Fosters subordinates’ and work groups’ motivation and job satisfaction by
adding some variety to their job (adding responsibilities, power etc).
 Helps higher bodies to concentrate on strategic issues.
3.4.2 Principles of Delegation
The following major principles of delegation shall be adhered to and bear in
mind in the process of delegation:
 Delegate anything that some one-else/office/ work group/ can do better
than you. However, be sure that the delegate has the necessary capacity
and competency to carry out the assigned duty.
 Delegate completely gives full authority commensurate with responsibility.
Have faith and trust in your subordinates.
 Delegation does not mean to abdicate power or control. The ultimate
responsibility for the end result of the delegation rests on the delegator.
Hence a delegator should control and evaluate the effectiveness of the
delegate in carrying out his/her delegated authority.
 Delegate in a specific and written manner so as to avoid confusion and to
make the delegate fully understood and informed the delegated
assignment.
 Prepare and motive the delegate, express your faith in his ability and help
him build confidence in him/herself.
 Finally delegated authority can be revoked in the event that a delegate fails
to properly handle or abuse his/her authority.

3.4.3 Delegation of Authority at Higher Levels

Based on the above premises and principles of delegation, all management
members of EKT shall exercise the practices of assigning part of their
responsibilities and delegating authorities to their respective lower management
bodies.
Accordingly a list of delegation areas along with the degree and level of
authority that will be exercised at company level shall be separately approved
(and shall be part of this manual).
Part IV:- Management Administration Policies and

Procedures
4.1 General
The role of a leadership and management is the most determinant factor for the
success or failure of any organization. The degree of responsibility and
accountability vested in managerial staff, therefore, is qualitatively different and
higher than other staff. This fact implies, the need for a different approach in the
administration of employment, placement, salaries and benefits, disciplinary
measures, performance appraisal, training and development, etc of the
management members as distinct from the personnel administration of other
staff who are governed by the prevailing “HR Policy and Procedure Manual”.
However, there are certain benefits and conditions of work already stipulated in
the HR policy and procedure manual that are commonly applicable for both
managerial and non-managerial staff . This part of the manual, with the
exception of some common applications, shall focus on specific personnel
administration issues applicable for management members.
4.2 Recruitment, Selection, Appointment and Placement

4.2.1 General Policies
 In light of a manager’s responsibility, he/she should be well qualified,
experienced and with excellent personal qualities to be eligible for a
managerial position.

 Criteria which a prospective manager must meet should be clearly set

out. Such criteria includes: Job description (duties and responsibilities),
qualification/education and experience), competency, and personal
quality requirements.
 Based on the degree of responsibility and position of the manager to be
appointed/selected, recruitment and selection approaches/ procedures
applied can differ from one managerial level to another. Accordingly,
top management posts can be filled through recommendations and
appointments of authorized bodies, while appointment/selection of
middle managers shall be carried out on competitive basis using
selection criteria. However, any candidate for any level of management
post must be tested through interview and other forms of tests (written
examination, aptitude tests etc, if deemed necessary).
 Before finalizing and entering into employment contract with managers
recruited from external sources, confidential enquiry shall be made with a
view to get full information regarding competences, integrity, past history
etc. of the candidate. Information can be gathered from ex-employers,
references chosen by candidate etc.
 A manager recruited from external sources shall undergo three months
probation period in which his/her performance will be evaluated and, if
he/she does not perform to the satisfaction of the company, shall be
dismissed without prior notice. However, the probation period could be
prolonged to additional three months to give him/her fill gaps and
demonstrate improved performance.
 EKT is an equal opportunity employer and hence doesn’t discriminate
employment of managers and other staff contrary to the law of the
country.
 The company shall consider promotion of competent candidates for a
vacant top or middle management position based on rigorous
evaluation of managerial qualities of potential candidates such as
planning, organizing, leading, decision making and controlling. Hence,
every effort shall be made to assess and ascertain first that there are no
competent candidates, from within, before looking for external sources.

 The maximum age limit for external candidates for a management

vacant post shall be 55. However, a candidate with exceptional
expertise that benefits the company may be considered as a candidate
despite his/her age.
4.2.2 Procedures
a) Appointments/Selection and Placement
 The General Manager shall be appointed by the owners.
 Deputy General Manager shall be appointed by the General Manager
 Management Committee members shall be nominated by the Deputy
General Manager and appointed by the General Manager.
 Middle Management members shall be nominated by Department
Managers and appointed by D/General Manager.
b) Placement of Mangers on Temporary Basis
 A manager at any level can be placed temporarily on acting basis
where the need arises. The authority to place managers on acting
basis shall be on the basis of the delegation of authority and
appointment shall be made in writing.
 A Manager placed temporarily and on acting basis shall not serve in
his/her temporary post maximum for more than 12 months beyond
which he/she shall be placed permanently with full entitlement to the
starting salary and benefits for the post or be made to return back to
his/her former position.
 A Manager shall be entitled to an acting allowance and other
attached benefits during his stay on the post, as per relevant Article in
this Manual.
c) Employment of Local and Expatriate Managers on Contractual Basis
For any job that becomes difficult to fill in from local citizens, recruitment
of expatriate managers shall be carried out on competitive basis among
potential candidates obtained from renowned international news
papers/journals or recommendations. Final selection shall be carried out
using detailed interview or other tests as the case may be. With regard to

the employment of local managers on contractual basis, the same

process of recruitment and selection shall be applied.
d) Promotion
 Internal staff and Junior Managers should be developed and empowered
for future leadership tasks through continuous management succession
plan and program (the guideline for succession planning shall be
prepared separately).
 The management administration committee shall, primarily, use the
following criteria with the corresponding percentage value in selecting
best candidates for top or middle management position from a pool of
competitors from within the company. i.e.,
(a) Relevant education and training 20%
(b) Relevant work experience 30%
(c) Performance appraisal result 30%
(d) Management Committee Evaluation 20%
 After selecting the best candidate based on the above criteria, the
committee recommends its selection for final approval by concerned
authority.
 The name/s of the best candidate/s selected shall be officially
announced through internal notice.
4.2.3 Induction:
Following the final appointment, selection of the newly recruited
manager, an induction program shall be carried out primarily by the
respective HR and Resources Department and the department in which
the new manager is going to be assigned.
4.3 Transfer
Managers can be transferred from one post/place to another post/place
laterally with the same salary and applicable benefits temporarily or
permanently.

Transferring managers from one post/place to another shall be made to serve

the following purposes:
 To achieve a proper fit between competency of the manger to be
transferred and the competency requirement of the job to be filled.
 To fill a vacant post temporarily until filled by a permanent manager
 To address a certain administration problem and facilitate industrial
peace
 To respond to a managers personal problems such as medical and family
cases when believed to be critical.
Before deciding to transfer a manager, he/she shall be consulted and efforts be
made to convince him/her.
4.3.2 Procedures
 The General Manager can have the authority to transfer company
deputy general manager and department managers, temporarily or
permanently.
 A manager transferred temporarily shall not exceed 12 months in his
temporarily assignment and subsequently should be posted permanently
or be back to his/her former assignment.
 A manager transferred to another regional location ( 30 km distance and
above from initial location) temporarily shall be entitled to Displacement
allowance which includes maximum of the first 2-3 months per-diem
allowance plus refund of travel expense for property and family
transportation. After 3 months the manager shall be entitled only to other
benefits (such acting allowance, housing, transport etc) attached and
applicable to the post to which the manger is assigned temporarily.
4.4 Appraising Managerial Performance
4.4.1.1 Generally the objectives of appraising managers’ performance
shall be to help each manager improve his/her current
performance and to identify individual/s with great potential for
higher managerial position as well as to identify weak performers.

4.4.1.2 Specifically appraising managers’ performance has the following

objectives:
 To serve as an important input for conducting management training
 To identify individuals with greatest potential for promotion to higher
position
 To help decide transfer or demote individuals with weak
performance.
 To help decide the provision of incentives, such as salary increments,
bonus, awards etc. for outstanding performers.
4.4.1.3 A manager’s performance is primarily appraised on the basis of
his/her concrete performance results which shall be compared with
an initial objective (plan) that has been prepared jointly and agreed
by the appraise and immediate manager (appraiser). The mutually
established objectives (plan) are essentially the plan (objectives) of
the particular department/division/section/ for which the appraise is
responsible. The objectives shall be, of course, derived from the
overall business plan. The emphasis is on mutual planning and
problem solving, not simply appraising a manager’s performance
subjectively by a senior manager.
4.4.1.4 The appraisal process shall be carried out in an open discussion and
two-way communication between the appraise and appraiser with a
view to evaluate the performance of the former objectively and
constructively.
4.4.2 Procedures
4.4.2.1 An individual manager writes down his/her major performance plan
(objectives) for the coming six months and specific action plans
including target dates for achieving these objectives.
4.4.2.2 The draft Performance Contract prepared by the manager, shall be
reviewed by his/her immediate senior manager and out of the
discussion of the draft plan comes an agreed upon Performance
Contract. If no agreement is reached on the plan, the decision of
the senior manager shall prevail

4.4.2.3 Every effort shall be made by the senior manager to support and
facilitate the successful completion of the targeted performance
contract ,during the six months period.
4.4.2.4 At the end of the six months period, the manger (appraise) and the
senior manager (appraiser) together examine and review the
performance actual results for the last six months as compared to
the original performance Contract. After evaluating (rating) the
performance results and final evaluation points known, both the
appraiser and appraise shall sign on the appraisal form. Finally on
the basis of the performance ratings a manager may be entitled to
financial or material incentives or other administrative measures
(transfer, termination, demotion) if a manger fails to meet
performance objectives.
4.4.2.5 Based on the past six months performance and the future plans of
the manager’s working unit, a new set of objectives shall be
established and new Performance Contract shall be signed for the
next six months. On top of that, individual manager shall prepare his
/ her personal development plan (PDV) for further evaluation
semiannually.
4.4.2.6 In the event the manager disagrees with the final appraisal result
(rating point) he/she shall appeal to the next higher manager
(body) for further consideration of his/her case. The decision of the
next higher body shall be final and binding.
4.5 Management Training and Development Policies
As detailed training policy and guidelines for managerial and non-managerial
staff shall be issued separately, the emphasis in this manual would be on general
policies (principles) of management training and development to be adapted
by EKT.
In order to successfully achieve its objectives, meet the challenges of change
and competition, the company has to have adequately educated, trained and
developed managers. Hence, it is crucial that systematic and continuous

management training and development schemes be developed and acted

upon at all levels. Fresh graduates/Junior staff should be prepared and
developed through career development schemes, mainly employing
management succession plan.
4.5.1.1 Purposes of Training and Development
Training and development function is not an end by itself. The end result of
training and development should be to contribute to support and enhance the
success of EKT in achieving its intended objectives. Training and development of
managers as such shall be considered as an important investment (not a cost)
whose return must be reflected in the organizational effectiveness and
efficiency as a result of trained, skilled competent managers and staff. While
supporting and enhancing organizational strategies and objectives is the
general strategic purpose of training and development, specifically the
following purposes are served by the same:
(a) To improve and upgrade one’s competence so as individual manager
or managers demonstrate functional proficiency on their job and
become productive. In the process managers develop their own skill
and knowledge while serving organizational purposes.
(b) To act as a catalyst for change in such a way that through training and
development mangers can be shaped and energized to adopt and
introduce new and positive culture (quality product, good customer
relation, flexibility, responsiveness etc).
(c) To provide competitive edge: well trained and competent managers
are sources of competitive advantage as quality, efficiency, effectives,
responsiveness to changes etc. are mainly results of capable leadership
and competent workforce.
(d) To instill better job satisfaction and motivation among managers/staff.
4.5.1.2 Basic Training and Development Policies*
Based on the overall purposes of training and development, the following
policies shall be adhered to:

(a) As integral part of the management function, training should get the full
support and involvement of top management. Line managers and
supervisors have a prime responsibility for developing their staff by
providing continual learning opportunities and experience as part of
their everyday activities.
(b) For training to be successful, the trainees/candidates for training should
want to learn and be willing to support a training program. In the
absence of motivation of trainees, training can be useless effort and
frustrating. Hence certain motivating mechanisms should be set in place
such as involving candidate for training in deciding or have say in the
relevance of a certain training to their need, considering possibility of
job change and give them proper recognition etc.
(c) The focus of the design and development of training programs should
not be only on specializing employees on certain skills, but must also
introduce and encourage a multi-skilling approach. In other words all
managers/staff, as much as possible, should be equipped with different
skills so that their skill can easily be deployed to duties where and when
they are needed. This facilitates flexibility in the use of the workforce and
encourages teamwork.
(d) Formalized training activities shall be given both at company level. The
company shall be as much as possible self-sufficient and fully managed
trainings especially in middle and lower level skills. (Organization of
training is dealt in more detail in the Training Policy and Procedure
Manual).
(e) EKT shall primarily develop and depend largely on in-house training
programs, in which professional trainers as well as part-time trainers from
within the company and other institutions will be involved. External
studies (trainings) both local and aboard shall also be encouraged. The
on-going practice of sponsoring employees to develop their career
through attending vocational and academic classes in local institutions
shall continue in a more integrated and planned way.

4.6 Rewards Management

4.6.1.1 Salaries and other benefits (services) shall be in line with and support
the strategies and objectives of the company in that they must be
able to:
 motivate managers for better performance results
 attract new managers and professionals from external sources
 retain capable mangers and reduce turnover of staff
4.6.1.2 Provision of salaries and benefits shall be based on:
 ability of the company to pay
 comparison with other comparable firms/industries payment
(market).
4.6.1.3 Salaries and other benefits provided to different individual managers
with similar status, shall be comparable. However, some salary
differentials may be made depending on skill, seniority or specific type
of job or place of work of individual managers.
4.6.1.4 The company shall reward outstanding performers in terms of salary
increment, bonus or other non-materials awards based on concrete
and measurable outputs.
4.6.1.5 Essentially the rewards package of the company shall include:
 Basic salary
 Fringe benefits: pension, medical services, tuition fee, insurance,
transport services, direct financial assistance in the form of loan,
annual and sick leave with pay.
4.6.1.6 Salary scale and other fringe benefit schemes shall be revised
periodically as deemed necessary to respond to changes in labour
market, changes in the consumer price index and possible
government wage and salary regulations.

4.6.2 Administration
4.6.2.1 Basic Salary
(a) The company shall have salary scale for all staff (managers and
non-managers) that is based on internal job evaluations as well as
the labor market. All managers’ basic salary shall be incorporated
and be part of this scale.
(b) Managers recruited from outside or promoted shall be entitled to
the starting or base rate of the respective grade on the scale.
However, as indicated on the above an individual mangers,
depending on his/her experience or specific nature of the job or
work place, may be paid more than the starting (basic) salary i.e.
one or more steps on the scale can be considered as the starting
(base) salary. However, the starting salary of the newly recruited or
promoted manager should not be more than existing managers on
the same status with the same experience and qualifications.
(c) Annual salary increment and bonus may be provided depending
on the degree of performance achievement and profitability
gained. Each manager shall be entitled to an annual increment
and annual bonus , in accordance with separate Salary Scale
Manual and Bonus Scheme Directive , set for such purpose at
company level.
(d) Salaries are paid monthly and payment is made at the end of
each month.
4.6.2.2 Fringe Benefits
Besides basic pay, managers shall be entitled to the following benefits
with most of them applying evenly to all levels with some benefits linked
to seniority:
(a) Pension Scheme: managers shall be entitled to a contributory
pension scheme whereby the company and the manager shall
contribute and establish pension fund, as per relevant government
legislation declared for employees of private companies/
organizations.

(b) Transport Services:

The CEO, General Manger, Deputy General Manager, and
Department Managers shall be entitled to company car and petrol.
The amount of petrol due in liters shall be:
1) CEO ....................................................220 Liters per month
2) General Manager ............................200 Liters per month
3) D/General Manager ........................180 Liters per month
4) Department Managers ...................160 Liters per month
(c) Medical Services
 All managers including the CEO are entitled to get local
medical services to the extent of Birr 10,000.00 per annum that
will be covered by the company.
 Administration of medical expense shall be in the proportion of
80 to 20 of which 80% whichever is lower or equal to birr
10,000.00 will be covered by the company and 20% will be
covered by the employee.
 The CEO, General Manger and Deputy General Manger shall
be entitled to abroad medical services upon the
recommendation of a Medical Board. The company shall
cover abroad medical services expense up to 10,500 USD for
the CEO and up to 10,000 USD for the rest of the managers,
which includes round trip transportation. (Detail administration
directive shall be developed separately).
(d) Housing Allowance
The CEO, General Manger, Deputy General Manager, and
Department Managers of the company shall be entitled to a housing
allowance as follows.
Housing Allowance Gross Monthly Payment
CEO……………….................................................. Br 5,500
General Manager ……………….......................... Br 5,000
Deputy General Manager ……............................. '' 4,500
Department Mangers............................................. '' 4,000

(e) Annual Leave

All managers who served the company for more than a year shall
be entitled to annual leave as detailed hereunder.
i. Any manager who has served the company for one year shall
get an annual leave of 18 (eighteen) working days and shall
get an additional one working day for each additional year of
service.
ii. However, the annual leave he/she is entitled to in a year shall
not exceed 40 (forty) working days. The annual leave of a
Manager serving for less than a year shall be proportionally
calculated for provision in case of exceptionally demanding
situation.
iii. Any manager in annual leave can be called to duty where
deemed necessary. The manager in question should report on
time and his/her terminated leaves (unused) can be
postponed. The transport and per diem expenses, for coming
back to duty, shall be covered by company. The Manager
shall also be paid in cash the unused annual leave
iv. Any mangers’ annual leave can be postponed for subsequent
years upon the consent of the Manager and decision of the
General Manager. However, annual leaves shall not be
accrued for more than 3 years entitlement.
v. The Manager is entitled to monetary payment, upon
termination of employment , amounting to sum total of unused
annual leaves and accrued as per " item iii" above .
(f) In Service Insurance:
All managers are entitled to 24 hours GPA insurance coverage for
accidents.
(g) Tuition Fee
(a) The Company shall cover 80% tuition fee expenses for top
management members who pursue further academic
education relevant to the business of the company , during

off-the-job (during evening classes) or through

correspondence. The CEO will approve the relevancy of the
education to the business of the company as per a separate
directive set for such purpose.
(h) Interest Free-Loans
A Manager is privileged with the following interest free loans in case
of personal emergency , upon presenting adequate guarantee
and with the approval of the General Manager.
 A Manager could apply for interest free loans of 4/four/
months gross basic salary to be paid in 2/two/ years.
 A Manager who served the company for a minimum of three
months could also apply for housing loan of 12 months gross
salary to be paid in 5/five/ years , for purpose of constructing
own residential house , upon presenting title certificate as
collateral .
4.6.2.3 Other Allowances:
(b) Acting Allowance: as noted earlier, junior managers or staffs
who assume higher managerial responsibility temporarily shall
be entitled to a monthly acting allowance amounting to 50%
of the difference in monthly salary between existing and the
monthly salary of the post to be acted upon. However, to be
entitled to an acting allowance a manager should serve on
the post for more than a month.
(c) Per-diem ,Travel and Hardship Allowances: Per-diem , Travel
and Hardship allowances during local and foreign business
travel shall be paid to managers per a separate directive set
for such purpose.
(d) Position /Responsibility/ Allowance:- The following position/
responsibility allowance shall be provided to Managers on the
basis of the individual Manager’s degree of responsibilities
and nature of work.

Allowance Gross Monthly Payment

CEO……………….................................................. Br 3,500
General Manager ……………….......................... Br 3,000
Deputy General Manager ……............................. '' 2,500
Department Mangers............................................. '' 2,000
Middle Managers............................................ '' 1,000
d) Gymnasium Allowance
All Managers are highly encouraged to adopt the culture of leisure
time sporting activities so as to be maintain healthy and energetic
wellbeing. To this end, the company shall cover cost of gymnasium
to each Manager upon presenting valid receipt amounting to birr
10, 000 per year .
e) Retention Allowance
The company recognizes longer service years of top and middle
management members whereby gross monthly payment of 2000
birr for top management members and 1,000 birr for middle
management members shall be deposited for a period of 4 years.
The retained deposit amount could only be paid to the Manager
after four consecutive service years for the first time and then at the
end of every second year after serving two additional years.
f) Funeral Allowance
A deceased Manager is entitled to funeral allowance of Br 20,000 or
1 month salary whichever is higher , to be provided upon his/her
death to his immediate family as company's contribution to funeral
ceremony.
4.7 Official Working Hours, Rest Days, Public Holidays and Leaves
4.7.1 Normal Hours of Work
Normal working hours shall be 8 hours a day or 48 hours a week; i.e.
 Monday – Saturday: Morning 8:30 a.m. – 12:30 a.m.
 Monday – Saturday: Afternoon 1:30 a.m. – 5:30 p.m.

4.7.2 Overtime
All top and middle management members shall not be entitled to overtime pay
but have the responsibility to update/complete pending assignments and
urgent matters during their spare time, weekend and even public holidays if
circumstances dictate.
4.7.3 Weekly Rest Days and Public Holidays
All managers shall get rest on Sundays and public holidays as defined in the
relevant Government proclamation.
4.7.4 Family Leaves
Without prejudice to sub-section 4.6.2.2 item (e) of this manual, paid leaves of 3
working days for marriage as well as mourning of first and second degree
relatives of the Manager and/or his spouse. He/ She could be granted
permission for leave without pay for a maximum of 30 days in case of highly
exceptional personal emergency.
4.7.4 Sick Leaves
All Managers are entitled to paid sick leaves upon presenting valid medical
certificate given by a medical institution recognized by the government and
endorsed by the company. The period of sick leave shall be granted for a
maximum of six consecutive months as detailed below.
 the first two month with 100% salary pay;
 the next two months with 50% salary pay;
 the next two months sick leave without pay.
4.7.5 Maternity Leave
Female Managers are entitled to paid maternity leave for 30 days before and
60 days after giving birth to a child. Parental leave of 3 days paid leave shall be
given to Male Managers when the spouse of a Manager is giving birth to their
child.

4.8 Conduct and Discipline

4.8.1 Policies on Discipline
4.8.1.1 Overall Purposes
It is the intention of the company to foster, at all times, the high morale that
makes for self-discipline in every manager and group discipline within every work
team. When taking disciplinary measures, the whole effort should be to meet
the following purposes:
(a) to ensure order and industrial peace at all levels
(b) to prevent undisciplined behavior and educate those with such behavior
by imposing proper disciplinary measures,
(c) by doing so to educate and prevent others from exercising the same
undisciplined behavior;
(d) to inform and remind managers about the accepted standards of
conduct.
4.8.1.2 Rules of Conduct and Business Ethics
All managers are expected to play an exemplary role in matters related to code
of conduct and business ethics such as;
 Observe and respect all company policies, directives, rules and procedures.
Even if a manager feels that either a rule or an order is incorrect or unjust,
he/she should still obey it and while obeying he/she can present his/her case
or complain in an orderly and peaceful manner based on the appeal
procedure as provided in this manual.
 Treat company property with utmost care; not abusing resources under one’s
disposal and unauthorized use of resources or property.
 Devote fulltime and attention to one’s assignment and responsibility
 Refrain from unjustifiable absenteeism, tardiness, disappearance from duty,
 Maintain high level of integrity and iron discipline at all times in discharging
one’s responsibility.
 Refrain from accepting favor, gift or remuneration in return for unlawful use or
malpractice of their authority such as favoritism, discrimination or any act that
damages image or interest of the company.

 Execute assigned duty with the least cost and promptness with maximum
quality and quantity to optimize the company interest.
4.8.1.3 Principles of Disciplinary Action
(a)Even though managers are expected to be self-disciplined and reasonably
understand what undisciplined behavior or offence may be, it is important,
that disciplinary standards and rules should clearly and officially be
communicated to all levels of management. This helps uniformity of
definition and consistency in implementing the policies and procedures.
b) Disciplinary actions should always incorporate consideration of just cause
and due process. In other words, before taking disciplinary action against
anybody, facts should be established and opportunities given to alleged
offenders to present and explain their case fully and freely and all
necessary steps considered/taken.
a) Corrective discipline shall be used primarily to reinforce self-discipline within
individuals and in work groups, penalties should only be applied after all
efforts of educational, advice and counseling methods have failed.
b) Having tried all means to educate and correct a manager with
undisciplined behavior, a senior manager shall have the responsibility to
take the proper disciplinary action at the right time i.e. delaying action
cannot ensure effectiveness of the corrective discipline in educating the
offender or others. Delayed action would also mean an act of revenge.
e) During the process of disciplinary acts, concerned managers should, at all
times, keep records of all relevant interviews, actions and decisions.
4.8.2 Procedures
4.8.2.1 Types of Offences and Subsequent Disciplinary Measures
Some major offences and subsequent measures are listed , in the attached
Table 1, to help as a guide to take proper actions. The offences and subsequent
measure are divided into two main parts, offences that result in immediate
dismissal and offences that result in actions that range from verbal warning to
dismissal.

The list of offenses, on the attached Table , shall result in disciplinary actions that
range from informal or verbal warning to dismissal of a Manager. The penalties
are supposed to be applied step by step until the highest penalty if the offender
repeats the same offense continuously. The penalties, as shown on the Table 1,
start with the least type of penalty based on the feature and seriousness of each
type of offense and can reach the highest form of penalty to dismissal. The last
part of the Table stipulates, however, those serious disciplinary offences result in
immediate/direct dismissal as and when proven to be committed by a
Manager .

List Of Offences & Subsequent Penalties
No. Type/Nature of Offense 1st 2nd 3rd 4th

1 Insubordination
1.1 Failure to carry out a reasonable and legitimate Written Warning Last written Dismissal
instruction from immediate manager or higher warning with 10
authority; days penalty
1.2. Failure to observe or obey company Written warning with 5 Last warning with Dismissal
rules/directives. days penalty 10 days penalty
1.3. Failure to notify to or report timely serious incidents Written warning with 5 Last warning with Dismissal
requiring timely decision by concerned Manager. days penalty 10 days penalty
1.4 Failure to observe safety rules Written Warning Written warning Last written Dismissal
with 5 days warning with
penalty 10 days
2 Abuse of Authority/ Disobedience
2.1. Inappropriate decision to favor customers or third Written warning with 5 Last warning with Dismissal
party to sell at very high discount or purchase at days penalty 10 days penalty
very high price, beyond limits of delegation and
without notification to or approval of concerned
Manager , with an intent of favoring third party or
sharing benefits.
2.2.Taking responsibility for providing company Written warning with 5 Last warning with Dismissal
property, money, or document for the use of third days penalty 10 days penalty
party without the approval of concerned
Manager.
2.3.Making biased decision to favor employees of the Written warning with 5 Last warning with Dismissal
company against company interest or another days penalty 10 days penalty
employee.
2.4.Being liable for mishandling company property, Written warning with 5 Last warning with Dismissal
money or document under his custody , causing days penalty 10 days penalty
unexpected damage or loss to the company.

3 Inefficiency/poor performance Written warning Second written Last warning Demotion/

3.1.Failure to discharge repeatedly assigned duties warning with 5 with 10 days Dismissal
and responsibilities below expected quantity, days penalty penalty
acceptable quality and/or within agreed time
schedule.
3.2 Minor negligence towards discharging assigned Written Warning Written warning Last warning Dismissal
duties and responsibilities, resulting in loss , with 5 days with 10 days
damage , or bad image to the company. penalty penalty
3.4. Failure to report and deposit timely tax , duty , or Written warning with 5 Last warning with Dismissal
other obligations levied by the government, unless days penalty 10 days penalty
otherwise decision endorsed by concerned
Manager .
3.5. Failure to cooperate with other work units or fellow Written warning Second written Last warning Dismissal
colleagues for efficient and effective operation., warning with 5 with 10 days
based on rules and regulations of the company. days penalty penalty
4 Unethical work discipline
4.1 Mistreating customers or fellow staff Written warning Second written Last warning Dismissal
warning with 5 with 10 days
days penalty penalty
4.2 Aggression or rude behavior against work Written warning with 5 Last written Dismissal
colleague or subordinate or supervisor in the work days pay warning with 10
place or while on duty during working time. days pay
4.3. Aggression or rude behavior against customer or Last written warning Dismissal
guest of the company while on duty for whatever with 10 days pay
reason or provocation.

5 Absenteeism Written warning with 5 Last written Dismissal

days pay warning with 10
5.1 Absent from work up to two days without permission
days pay
or valid reasons
5.2 Absent from work from 3-5 consecutive days Written warning with Last written Dismissal
without permission or valid reasons 10 days pay warning with 15
days pay
6 Disciplinary Offences resulting in termination without
notice
6.1. Absence from work without good cause and Dismissal
permission for more than five consecutive working
days
6.2. Deceitful or fraudulent conduct while carrying out Dismissal
his duties and causing huge damage or loss to the
company, having regard to the gravity of the case
6.3 Misappropriation or embezzlement of the property Dismissal
or fund of the company, with the intent of
enriching personal benefits or that of third party.
6.4. Demonstrating low level of performance , far Dismissal
below the agreed level of expectations set by the
company.
6.5. Direct involvement in the brawl or quarrel while on Dismissal
duty or at work place , having regard to the
gravity of the case.

6.6. Taking direct responsibility for causing Dismissal

damage or loss to the property of the
company, due to gross negligence or
deliberate act.
6.7 Conviction for legal offence where such Dismissal
conviction will make him incapable of
assuming his current position in the company.
6.8.Absence from work due to a sentence of legal Dismissal
imprisonment passed for more than 30 days,
due to civil or criminal offences.
6.9.Taking direct responsibility for divulging Dismissal
confidential information of the company to
external party or any unauthorized body ,
without due knowledge of concerned
Manager
6.10 Being involved in any severe act of spoiling Dismissal
company image and trust among customers
and general public.
6.11. Any act of stealing from the company or from Dismissal
any employee or from any customer
6.12. Deliberate act of falsifying company Dismissal
documents for one’s advantage
6.13.receiving bribes or any form of gifts from Dismissal
customers, suppliers or even employees or any
other party in return for unlawful dealings,
favoritism or any other act contrary to the

policies and rules of the company.

6.14. Being engaged in a false rumor, sabotage, Dismissal
work slowdown, acts of igniting conflict among
work colleagues, or mass uprising in the
company.
6.15. Using liquor on company premises , showing Dismissal
act of drunkenness during working hours and/or
possession, use and distribution of drugs.
6.16. Taking responsibility for violation of safety and Dismissal
health regulation that causes hazardous
damage of life and property.

4.8.2.2 Suspension of a Manager With or Without Pay

a) Pending further investigation and final decision, a manager with an
alleged offense may be suspended with or without pay.
b) If an alleged offense is serious and facts have been established, then
the alleged offender may be suspended with no pay until a final
decision is given
c) If an alleged offense is yet to be investigated further and facts are not
established, then the alleged offender can be suspended with pay until
thorough investigation and final decision is given.
d) An alleged offender suspended with no pay, shall not be suspended for
more than two months unless he/she is the cause for the delay of final
decision. Unless the alleged offender is the cause for the delay of the
final decision, he/she shall be entitled to his/her pay while on suspension.
e) If an alleged offender, who has been suspended with no pay, is found to
be innocent finally, then his/her lost payment during suspension shall be
paid to him/her. If on the other hand, the alleged offender is found guilty
and if the final decision is dismissal, then the offender shall be dismissed
starting from the date the suspension was effected.
4.8.2.3 The Disciplinary process and authorities to impose penalties
a) Imposing the highest disciplinary measure i.e., discharge of managers,
shall be carried out by the General Manager (in accordance to the
delegation of authority to be provided). All managers are authorized to
impose penalties that range from written warning with pay up to
suspension.
b) Offenses that result in immediate dismissal shall be referred to the top
level management committee for further investigation and
recommendation of proper disciplinary action by the authorized body.
c) Demotion or dismissal penalties as a result of progressive disciplinary
action or series of increasingly severe penalties (written warnings with
pay) shall finally be approved by respective authorities as stipulated in
the delegation of authorities upon the recommendation of the
respective manager who is responsible for the alleged offender.

4.8.2.4 Appeal Procedures

a) Any manager penalized for misconduct or who has grievance related
to working conditions, employment terms etc. can appeal to the next
higher manager of his/her immediate manager. The decision at this
level shall be final and binding.
b) Those authorities, who receive letter of appeal from a manager with
grievance shall notify their final decision at least within 10 working days
after receiving the appeal.
4.9 Exit Management
4.9.1.1 The following conditions shall be grounds for termination of employment
of contract of any manager:
a) Voluntarily resignation of the individual manager.
b) When the manager reaches retirement age.
c) Medical reasons.
d) The death of the manager.
e) When the position of the individual manager is abolished or when
due to restructuring, the manager is redundant or when the
company or specific office is closed.
f) Disciplinary grounds which may result in dismissal of the manager as
stipulated in this manual.
g) Imprisonment or force majeure.
4.9.1.2 The termination of any manager should be handled carefully in such a
way that the parting of the organization with the manger is smooth and
in good terms. Termination payments should be effected promptly in
accordance with the provisions of this manual and appropriate
government laws.
4.9.1.3 With the exception of managers terminating due to disciplinary measure,
the terminations of all managers shall be effected after notifying them
well ahead of time in writing.

4.9.1.4 A manager, terminating his/her employment for whatever reason, shall

clear his/here possible debts or company property.
4.9.2 Procedures
4.9.2.1 Voluntary Resignation
a) A manager wishing to voluntarily resign should give prior notification to
respective management whereby the period of prior notice shall be
3/three/ months for top management members and 1 /one/ month
for middle management members before resignation. However, in
certain circumstances where the resigning manager cannot easily be
replaced or pending assignments have not yet been completed,
management may delay his/her release for a period of one month.
b) Before finalizing termination of a voluntarily resigning manager,
concerned management representative/s shall hold formal discussion
(exit interview), with the former, with the objective of gathering
information on the manager’s reasons for leaving and possibly
convince his/her to change his/her mind. The exit interview can also
help to ensure smooth parting of the organization and the manager
who is leaving.
4.9.2.2 Retirement
a) The retirement age of top management member is set to be 65.
b) Managers to be retired shall be notified in writing one year prior to
their retirement date. The retiring manager and management shall
make efforts to prepare (possibly develop) successor/s who may take
over the managerial responsibility of the former immediately after
he/she is retired.
c) The retirement age of a manager might be extended up to a
maximum of 5 years provided that his/her competency, training and
experience is highly beneficial to the organization and he/she is
medically fit and agrees to extend his/her service.
d) In recognition of long-term service with the company, a retired
manager with 10 years and above service shall be entitled to financial
or material reward which shall be defined in a separate guideline.

4.9.2.3 Termination of Contract on Medical Ground

a) Employment of a manager may be terminated on grounds of medical
cases upon the recommendation of a medical doctor or board of
medical doctors.
b) The manger to be terminated shall be notified one month prior to
his/her final termination date.
4.9.2.4 Redundancies
a) Mangers may be laid off due to down-sizing or restructuring of the
whole company or certain departments. The manager to be laid off
shall be notified one month prior to his final termination date.
b) Before deciding to lay off a manager, every effort shall be made to
redeploy (transfer) affected manager elsewhere in the company
where he/she can fit.
c) Managers to be laid-off should also be convinced as much as possible
of the need for restructuring or closing of an office/or any
organizational change.
4.9.2.5 Dismissal
Managers to be terminated due to misconduct should be terminated
immediately after the decision is passed without prior notice.
4.9.2.6 Imprisonment or Force Majeure
Employment of a manager may be terminated where he/she is absent
from work due to imprisonment or force majeure circumstances and is
unable to resume work within 3 months.
4.9.2.7 Termination Pay
a) The termination pay upon the termination of a manager shall include the
following
 unpaid monthly salary
 accrued annual leaves (according to the provision of this manual)
converted to cash
 severance pay

b) Severance Pay
The payment of severance pay shall be effected as follows:
 With the exception of mangers who are laid-off (retrenched) as a result
of organizational changes, all managers are entitled to a severance
pay.
 Manager who serves for more than five years in the company and
whose and laid-off shall be entitled to a severance pay of 3 months'
salary for the first year of service and one third of his/her monthly salary
for each additional year of service. However, the total amount of
payment should not exceed his/her 12 months' salary.
c) Termination pay due to deceased managers shall be paid to his/her
nominees (with due legal evidence).
d) A manager who left the company without notice (according to the
provision of this manual, sec. 4.10.2 sub sec. 4.10.2.1) shall not be entitled
to a severance pay.
4.9.2.7 Certificate of Service
Certificate of service shall be issued to managers upon termination of
employment after completing clearance formalities and handing over
outstanding assignments.
Part V:- Other General Policies and Procedures

5.1 Office Manners
5.1.1 All managers are expected to be exemplary to other non-managerial
staff in matters such as:
 Personal appearance and hygiene
 Dressing neatly and avoiding any dress that might not be in
accordance with accepted business/office standards.
5.1.2 Use of telephone, e-mail, fax and Internet should be kept to company
related businesses. Personal communications should be kept minimum
and must be used outside working hours (lunch, break etc).

5.2 Smoking Policy

EKT observes and respects internationally accepted smoking rules. Therefore
mangers with smoking habits should play exemplary roles in avoiding smoking in
all offices, workrooms, canteens (lunch and coffee rooms) and conference
rooms. Smoking shall be allowed in coffee breaks.
5.3 Get Together and Social Events
It is customary in many business entities to get together and arrange for social
events with a view to refresh, get acquainted with new people, hold informal
business discussions etc. Such events may include, in the context of EKT, periodic
performance evaluation, ceremonies for meritorious/outstanding performers,
ceremonies for departing mangers (due to retirement, resignation) etc.
Such events, besides refreshing, informal communication etc, are vital in
creating one family of mangers with close relationship, open communication
and a sense of identity. In view of this, social events can be arranged
occasionally on events considered worth spending some amount of money and
time.
5.4 Keeping Records of Personal Data
Personal file for each manager shall be kept at company level with Admin and
General Service Head. The personal file should contain all data and
correspondences relevant and applicable to the manager concerned. Such
data/correspondences include, but not limited to:
 Employment application form/personal data form
 Education, work experience and training testimonials
 Minute of employment/committee proceedings
 Letter of employments
 Job description
 Correspondence, notices, notifications
 Performance appraisal report/form

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EKT Trade and Investment PLC

Management policy and procedure manual. Jan, 2017 Page 0

1.1 Definition of Key Words and Phrases

Management policy and procedure manual. Jan, 2017 Page 1

1.2 Purpose of the Manual

Management policy and procedure manual. Jan, 2017 Page 2

Part II: - Vision, Mission, and Core Values of EKT

Management policy and procedure manual. Jan, 2017 Page 3

2.3.5 Transparency and accountability: make every effort to make decisions

Part III: - Organization of the company

Management policy and procedure manual. Jan, 2017 Page 4

quick decision-making through reduced hierarchy and devolved

3.2 Staffing Policy

3.3 Organizational Structure of EKT

Management policy and procedure manual. Jan, 2017 Page 5

EKT TRADE AND INVESTMENT PLC

Import Export Sales Finance Administration

Business Marketing General

Local Engineering ERP

Management policy and procedure manual. Jan, 2017 Page 6

3.4 Delegation of Authority

Management policy and procedure manual. Jan, 2017 Page 7

3.4.3 Delegation of Authority at Higher Levels

Part IV:- Management Administration Policies and

4.2 Recruitment, Selection, Appointment and Placement

Management policy and procedure manual. Jan, 2017 Page 8

 Criteria which a prospective manager must meet should be clearly set

Management policy and procedure manual. Jan, 2017 Page 9

 The maximum age limit for external candidates for a management

Management policy and procedure manual. Jan, 2017 Page 10

the employment of local managers on contractual basis, the same

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Transferring managers from one post/place to another shall be made to serve

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4.4.1.2 Specifically appraising managers’ performance has the following

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Management policy and procedure manual. Jan, 2017 Page 14

management training and development schemes be developed and acted

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4.6 Rewards Management

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(b) Transport Services:

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(e) Annual Leave

Management policy and procedure manual. Jan, 2017 Page 20

off-the-job (during evening classes) or through

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Allowance Gross Monthly Payment

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4.8 Conduct and Discipline

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Management policy and procedure manual. Jan, 2017 Page 25

Management policy and procedure manual. Jan, 2017 Page 26

List Of Offences & Subsequent Penalties

No. Type/Nature of Offense 1st 2nd 3rd 4th

Management policy and procedure manual. Jan, 2017 Page 27

3 Inefficiency/poor performance Written warning Second written Last warning Demotion/

4 Unethical work discipline

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5 Absenteeism Written warning with 5 Last written Dismissal

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