1. Define the term management?

Different scholars form different disciplines view and interpret management from their own angles.

The following are some of management definition:

● Management is the process of coordinating all resources through the 5 functions of planning,
organizing, staffing, directing (leading) and controlling to achieve organizational goals/desired
objectives.

● Management is the art of getting things done through other people by making the atmosphere
conductive for others.

● Management is the utilization of scientifically derived principles to examine and improve

collective efforts /production.

● It is the process of setting and achieving organizational goals by using the five basic managerial
functions by acquiring utilizing human, financial and other resources.

● It is the process attaining organizational goals in an effective and efficient manner through the five
basic managerial functions such as planning, organizing, staffing, leading and controlling.

2. Describe managerial functions? Give an example or each?

Panning: is the first function that managers engage in because it lays the ground work for other
functions. Is the process that managers use to identify and select appropriate goals and alternative
ways to attaining them.

Organizing: is the process of delegating and coordination tasks and resources to achieve objectives.
Include grouping of similar tasks to create departments.

Staffing: is initially the process of recruiting potential candidates for the job, reviewing the
applicant’s documents and trying to much the job demand with candidate’s ability. Involves
acquiring, developing and maintaining humane resource which is needed to attain objective set in
planning.

Directing/Leading: involve influencing and motivating employees in one or other ways to make them
implement their job assignments willingly. Aims at getting the employees of the organization to move
in the road that will achieve its goals.

Controlling: involve - In setting of standard against which work progress is measured.

- Comparing actual performance against the standard.

- Identifying and initially examining causes of deviation between the standard
and the actual performance.
- Taking corrective actions to eliminate causes of unfavorable deviations.
3. List level of managers and discuss main functions performed by each level?

Top Level Management

Beside the board of directors other functionaries are included

- Managing directors

- General manager/chief executive

The mine functions of Top Level Management are:

● To make a corporal plan for the entire organization covering all areas of operations.

● To decide upon the matters which are vital for the survival, profitability and growth of the organization

Such as introduction for new product, shifting to new technology and opening new plant.

4. Discuss the relationship between the levels of managers and managerial skills?

The relationship of the managerial levels is like a chain with the flow from top to middle and from middle
to lower. In some cases the flow can be vise verse. For example the function of each managerial levelis
related; when we see the corporate plan which is planned by the top level management is passed to the
middle level management and based on the corporate plan they make another more detailed plan
covering the areas of their each department. Then the departmental plan is passed to lower level
management. The lower management again makes another even more detailed and specific plan to their
day to day use based on the departmental plan which is again planned based on the corporate plan.

Managerial skills

Skill is to do something expertly and well. Managerial skills are acquired through education and
experience. There are 3 principal skills:

1. Conceptual skill

● Involves the ability to view the organization as a whole and recognize its relationships to large
environment or business world.

● Are ability (or mental capacity) to conceive and manipulate ideas and abstract relation-ships.

2. Human skill

● Human skill include the ability to understand, alter, lead, and control the behavior of other individuals
or/and groups. Human skills focus on working with people.

3. Technical skills

Involves the ability to apply specific skills of manager on manufacturing, accounting and marketing are
best examples of technical skills.

All managers need the three managerial skills. However, the need for these skills varies with the levels of
management.

● Conceptual skills are more needed by top-level manager

● Human skills are needed at all level

●technical skills are needed greatly by first line managers.

5. Is management a science or an art? How? Explain.

Management is both science and art:

Management as a Science

Science by its nature seeks to answer the questions like how? Or why? In this regard management is a
field of knowledge that seeks to systematically understand why and how men work together to
accomplish objectives and to make this cooperative systems more useful to making.

Management as an Art

Art is the process via which the desired result are realized through the application of skills. Management
is an Art in the sense that management principles are not developed for the sake of knowledge but for
their application to specific situation.

6. In classical or traditional management approach how do you characterize the:

(A) Scientific management (B) Administrative management (C) Bureaucratic management

(A) Scientific management

Scientific management is concerned about the mental change of both workers and management. The
positive change in the attitude of worked and management is called Mental Revolution.

Mental Revolution has tree implications:

● Effort to increase in production

● Creation of mutual trust and confidence and

● Developing scientific attitude toward problems

Scientific management try to create congenial environment for optimum efficiency. And think congenial
environment should be created through the cooperation of workers and management.

Scientific management has the following principles:

● Scientific task planning: Scientific planning suggests series of separate operations and functions which
are already determine by the management.

● Functional foremanship: In the system eight persons direct the activities of the workers, out of them
four persons are related with planning functions and the remaining four are concerned with operating
level.

Functional foremanship involves the duties of:

* Route clerk

* Instruction and clerk

* Time and cost clerk

* Disciplinarian

* Speed boss

* Inspector

* Maintenance foreman

* Gang boss

● Job Analysis: Frederick Winslow Taylor advocated the analysis of work job with reference to:

(a) Time study: it involves the determination of time a movement takes to complete.

(b) Motion study: it involves the study of movement of both workers and machines so as to identify
wasteful movement and performing necessary movements.

(c) Fatigue study: it shows the time and frequency of rest. On the basis of this, management should
provide appropriate rest at appropriate intervals to increase the efficiency of workers.

● Differential piece rate system: it dropped on workers

(a) Low rate for those who have failed to achieve the standard output.

(b) Higher rate for those achieving or exceeding the standard output.

● Standardization: helps to simplify work, it ensures uniformity of operations and to facilitate

companions of efficiency.

● Scientific selection and training: workers should be selected on scientific basis, and their education,
experience; aptitude, strength, etc.

● Cooperation between management and workers: scientific management succeeds through the
cooperation of management and workers. There must be mental change to cooperate with each other
and to find a way out of problem through scientific method. Taylor called this cooperation as a Mental
Revolution.

(B) Administrative management

Administrative management sees management as a process consisting five elements.

1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling

Administrative management has the following principles:

● Division of labor

● Authority and responsibility

● Discipline

● Unity of command: means that employees should receive orders from one superior only.

● Unity of direction: means groups with same objectives must have one head and one plane.

● Subordination of individual to general interest

● Remuneration: employees should be paid fairly and reasonably in accordance with their contribution.

● Centralization

● Scalar chain: it’s a line of authority from the top level to the lowest level.

● Order: human as well as material resources should be in their prescribed place and order.

● Equity: employees should be treated on the basis of equality, fairness and impartiality.

● Stability of Tenure: stability should be provided to employees accustomed to new work and
succeeding in doing it will.

● Initiative

● Esprit-de-corps: it implies to build team sprit mutual understanding as to make their respective
contribution for achieving goals.

(C) Bureaucratic management

Bureaucratic management try to bring rationality and predictability of behavior in the organization. It
aims high degree of precision, efficiency, objectivity and rationality in the in the organization to make it
more efficient. The model of bureaucracy is based on the following features.

A. Division of work

B. Hierarchy of authority

C. Rigidity in rule and regulation

D. Impersonality

E. Technical competence

By the features of bureaucratic management the organization gains the following advantages.

a. Rationally efficient form of organization

b. Reduces subjecting judgment

c. Specialization

d. Effective decision making

e. Consistency of actions

f. Allocation of task according to competency

g. Maintaining discipline in the organization

7. Discuss the main futures or elements of

A. system approach B. contingency approach

Main elements of system approach:

 An organization is a unified and integrative system consisting of several interrelated and

interdependent parts. It gives a manager a way looking at the organization as a whole.
 A system is considered as open system because it interacts with environment .all organizations
interact with the environment.it gets various resource from the environment and transform
them into outputs desired by the environment.
 The parts that make-up the whole of a system are called sub-system. And each system in turn
may be sub-system of still large whole. All sub-systems are functionally interacting and
interdependent.
 Each system has a boundary that separates it from its environment. The boundaries are more
fixable in an open environment. It maintains the clear and proper relationship between the
system and its environment. The boundary in closed system is rigid.
 Management as a system is dynamic. The survival arid growth in a dynamic changing demands
as adaptive system which can continuously adjust to changing environment. Management tends
to bring changes in the sub-system of the organization to cope up with the environmental
challenges.
 System approach follows the law of synergy. Synergy means that the whole is greater than the
sum of its parts.
 Feedback is the key to system controls. As operation of the system proceeds, information is
feedback to the appropriate people perhaps to a computer so that the work can be assessed
and, if necessary, corrected.

Main element of contingency approach

 In this approach management is situational. The effectiveness of leadership style vary from
situation to situation.
 It’s action-oriented as it is directed towards the application of systems concepts and the
knowledge gained from other approaches. The contingency approach builds upon this
perspective by following in detail on the nature of relationships existing between these parts.
 The theory attempts to determine the predictable relationships between situations, actions and
outcomes.
 Management should match or ‘fit’ its approach to the requirement of the particular situation.
 The approach provides significant contribution in organizational design. It suggests that no
organizational design can be suitable for all situations, rather, the suitable design is one
determined, keeping in view the requirement of environment, technology, risk and people.

8. types of plan can be classified on based on repetitiveness, discuss both single use plan and standing
plan and list plan that are included under each category.

Single use plan

Single use plans are plans that have little or no use after the plans accomplished their objectives. They
include:

Programs – is set of goals, policies, procedures, rules, job assignments, resources to be employed, and
other elements necessary to carry out a given course of action.

Project – is specific action plan formulated to complete various aspects of a program which can be
distinctly identified as a clear-cut grouping of activities with definite objectives and completion time

Budget – is a statement of expected results expressed in numerical terms. Sometimes budget is often
thought as control technique, it is also a plan since it sets forth objective to attain. Sometimes it is call as
“numerical plan” as they are quantitatively in nature.

Standing Plans

They are plans which can be used again and again .they remain useful for long time in dealing with
respective situation.

The includes:

Policies – are guideline to decision making. They establish abroad framework within which managers at
different level make decisions.

Policies are important for an organization as they are:

 Provide guidance to decision making

 Channels all decisions toward the attainment of objectives.
 Ensure consistency and uniformity in decision making.

Procedures – are sequences in decision making it aims at laying down a mechanism for orderly
performance and coordination of various organizational activities so as to avoid random actions and
operations. it provide consistency of organizational activities by providing steps.

Rules – are on-going specific plans influencing human behavior or conducts at work place.

 Are fixed plans and defined what should and should not be done.
 Rules don’t allow interruption or decision. Decision are needed only in making the rules.

9. Describe steps in planning process?

Step 1. Environmental analysis and forecasting

To start planning first we should know the environment internally and externally. Organization should
assess the environments own weakness and strength internally and to be aware of opportunities and
threats in the external environment. Based on this different environmental factors such as economics,
technological, political etc. can be made to assist real planning.

Step 2. Establishing objectives

It’s made for enterprise and then for each subordinate work unit.

Step 3. Determining alternative course of action

When a manager developing alternative he should try to create as many roads to each objectives as
possible. And to decide on the best ones it requires evaluation.

Step 4. Evaluating the alternatives

In evaluating the manager should assess cost and benefits of all alternatives.

Step 5. Select the best alternatives

The manager selects that remain better than the others. It may be the one with less disadvantage and
most advantage.

Step 6. Implementing the plan

After selecting the alternative, it is important to develop an action plan to execute the plan.

Step 7. Controlling and evaluating the results

Manger should monitor the progress being made, evaluate reports made based on the results, and
make any necessary modification.

10. Explain plans bade on:

a. Scope/Breadth Dimension

b. Time Dimension

A. Plans based on Scope/Breadth

They are classified in to three:

Strategic plans

- performed by top level management

- Mostly long range in its time frame

- Expressed in relatively general terms

- Type of planning that provides general future based direction to organization.

Tactical plans

Is the process of developing action plans through which strategies are executed.

Tactical plans – performed by middle level managers

- have short time frame

- Guide submits of an organization

Operational plans

Is the process of setting short-range objectives and determining in advance how they will be
accomplished.
Operational plans – are first line managers’ tools exciting daily, weekly, and monthly activities.

- performed by operational level managers

- Are specific and more detail than others.

B. Plan based on time dimension

Are classified in three:

Long range plan

Have longer time horizon; are concerned with distant future. The time may ranges 5 to 10 years.

Intermediate plan

Are those with time horizon between one and five years.

Short range plan

Are those plans which is not possible to have a right time horizon guise line.

11. What are the characteristics of effective objectives in a plan?

They are:

a. Specific- objectives should state the exact level of performance expected specifically.
b. Measurable- as possible objectives should be expressed quantitatively.
c. Appropriate- objectives should be prepared in suitable, acceptable and achievable manner.
d. Realistic and challenging- objectives should be attainable. It is also better to have challenging
objectives if they could motivate workers if attained.
e. Time bound- objectives should be set with in specific time limits or target dates for their
attainment.

12. Compare and contrast programmed and non-programmed decisions?

Programmed Decisions Non-Programmed Decisions

Are repetitive in nature Are non-repetitive in nature
Are taken with in the broad policy structure The problems are unique so they are not taken
from the broad policy structure
Are used for usual problems Are used for unusual or exceptional problems
Are quick to make Are handled by general problem solving process

13. Describe steps in decision making process?

They are: -Identify the problem

 - Diagnose the problem

- Search for alternative

- Evaluate alternative

- Implementation and follow-up

14. What are the main activities in the organizing function?

The activities are:

● Identifications of key activities necessary to achieve objectives

● Grouping of these activities in manageable manner

● Assignment of each group of activities to a manager who has the authority and responsibility to
mange

● Delegation of authority to managers so as to accomplish their duties efficiently

● Coordination of different group of activities horizontally or vertically

15. Describe and discus type organization?

Based on legal authority delegated and responsibility assigned organizations are classified in to formal
and informal.

Formal organization

It is the intentional structure of roles in a formally and legally organized enterprise. It is flexible enough
in structure as to furnish an environment in which an individual performance contributes most
effectively to group goal; it allows for description, for taking advantage of creative talents and for
recognition of individual likes and capacities in the most formal organization.

Organizational structure is the framework of jobs and departments that directs the behavior of
individuals and groups toward achieving the objective of the organization.

a. Characteristics of formal organization

 It is properly planned
 It is based on delegated authority
 It is deliberately impersonal
 The responsibility and accountability at all levels of organization are clearly defined
 Unity of command is normally maintained
 It provide for division of labor
b. Advantages of formal organization
 The definite boundaries of each workers are clearly fixed and it avoids conflict among the
workers
 Overlapping of responsibility is easily avoided
 Shifting responsibility is very difficult
 A sense of security arises from classification of task
  There is no chance favoritism in evaluation and placement of the employee
 It makes the organization less dependent on one man
c. Disadvantages of formal organization
 In certain cases, the formal organization may reduce the initiatives of employees
 Sometimes authority is used for the sake of convenience of the employee without considering
the need for using authority
 It does not consider the sentiments and values of the employees in the social organizations
 It may reduce the speed of information communication

Informal organization

The informal organization is the network, unrelated to the firm’s formal authority structure, of social
interactions among its employees. The supervisor must realize that the informal organization affects the
formal organization. The informal organization can make the formal organization more effective by
providing support to management, stability to the environment, and useful communication channels.

16. Discuss steps in man power planning process?

It consists the following steps:

A. Forecasting manpower requirement: is to anticipate the requirement of manpower for a

particular future period of time in terms of the number, type and quality of people.
Three steps are involved in projecting manpower needs.
1. Determine replacement of lost manpower: based on past experience the manager should
calculate the rate of loss of manpower.
2. Determine the need for new manpower: based on the workload analysis the manager
should determine the need for new manpower.
3. Determine the abilities/skills required for the efficient performance: job description is an
organized, written and factual statement of job content in the form of duties and
responsibilities of a particular job. Job specification is a formal statement of minimum
acceptable human qualities required for the successful of the job. This two are prepared to
determine job requirements and the quality of needed personal.
B. Preparing man power inventory/manpower audit: is the analysis and assessment of the current
human resource in terms of size and quality of personal available.
C. Identifying manpower gaps: in order to know the gap, the existing number of personnel and
their skills are compared with the forecasted manpower requirement.
D. Formulate manpower plans: it involves developing appropriate policies, programs and
strategies for recruitment, selection, training, promotion, retirement and replacement.

17. Discuss sources of recruitment?

Recruitment

Is the process of searching potential employees with the necessary characteristic and proper quantity
for the organization.

The sources of recruitment includes:

a. Internal source
 It includes of transfers and promotions of present employees. Transfer is a horizontal shifting
while promotion is a vertical shifting.
Advantages
 Improve employees’ motivation, loyalty, security and morale.
 Less expensive
 Simplifies the process of selection and placement
 Lower level employees are encouraged to look forward to higher ranks.
 Develops better employee-employer relationship
Disadvantage
 Involves danger of in breeding by stopping infusion of new blood in to the organization
 Reduce the area of choice
 Limit the pool of talent
 Does not provide an equal opportunity to all people to compete for jobs
 Encourage favoritism and nepotism
 Encourage complacency
b. External source
Is when the organization fill its recruitment from externally, and its major limitations are that its
expensive and time consuming.
The various external sources of recruitments are:
 Advertisement
 Employment agencies
 Educational institutions
 Recommendations by other people
 Causal callers
 Direct recruitment

18. What the difference training and development?

Training – is to enable the employees to get acquainted with their present/prospective jobs and also to
increase their knowledge and skills and to modify their attitude.

Development – is the growth of an individual in all respect physically, intellectually, and socially. Training
is cause whereas development is the consequence.

19. How do you differentiate formal and informal organization?

Formal organization Informal organization

Is the intentional structure of roles in a formally Is the network, unrelated to the firm’s formal
and legally organized enterprises authority structure, of social interactions among
its employees

20. Define leadership and leadership theories?

Leadership is the process of influencing employees to work toward the achievement of the
organizational objectives.

Theories of Leadership

1. Trait theory

The theory focused on identifying the personal characteristics that are responsible for effective
leadership. Is based on the assumption of that leader is born not made.

According to this theory effective leaders must have the following traits:

 Intelligence-helps managers understand complex issues and solve problem.

 Self-confidence contributes to managers effectively influencing subordinates and persisting
when faced with difficulties.
 Integrity and honesty helps managers behave ethically and earn their subordinates trust and
confidence.
 Physical trait such as height, appearance etc.
 Social traits such as cooperativeness skill etc.

But some effective leaders don’t have all this traits and leaders with all the above traits aren’t all
effective.

2. The Behavioral theory

This theory tried to identify the behaviors shown by the leaders at the work environment and they
were general able to identify two set of leaders.

a. Work centered (concerned for task) leaders

This approach is referred to initiating structure, job centeredness and task orientation. This consider
leaders who are authoritarian, autocratic, production oriented and activity focused.

A leader with such behavior mostly tends to:

 Plan and define work

 Assign task responsibilities
 Set clear work standards
 Urges for task completion
 Monitors performance results persistently, etc...

b. Employee centered (people centered) leaders

Such leaders are known as democratic, considerate, consultative, participative leader. They tend to
share decision with subordinates, encourage participation and support the team work needed for
high levels of task accomplishment.

This kind of leaders are tends to:

  Act warmly and supportive to followers
 Develops social rapport with followers
 Respect the feeling of the followers
 Is highly sensitive to the needs of followers
 Shows trust and confidence in followers

3. Situational theory

The theory attempts to determine the appropriate leadership style for various situations. Leaders
should choose task or employee focus depending on the interaction of three situation variables.

a. Leader-member relations

The extent to which followers like, trust and are loyal to their leader is determinant to how favorable a
situation for leading. If leader-member relations are good then situation to lead is good if not the
manager should resort to negotiation or to promising favors to get performance.

b. Task structure

the extent to which the work to be performed is clear-cut. When task structure is high, situations are
favorable for leading if not its unfavorable for leading.

Theory X and Theory Y assumption

Are assumption about human nature developed by Douglas Mc Gregor. He developed the assumption
based on the attitude that managers have about work.

Theory X assumes the following

 The average workers are lazy, dislikes job, and will avoid work whenever possible
 Because most people dislike work, they have to be closely supervised and threatened with
punishment to reach objectives.
 Above all peoples want security
 Average peoples prefers to be directed, wish to avoid responsibilities and they have little
ambition

Theory Y assumes the following

 Most people find work as play or rest and develop an attitude toward work based on their
experience with it.
 People do not need to be threatened with punishment; they will work voluntary toward
organizational objectives to which they are committed.
 The average person working under proper condition not only to accept but also seek
responsibility.
 Managers should decentralize authority to employees and make sure employees have the
resources necessary to achieve organizational goals.

21. In which leadership style that managers don’t share decision making authority with subordinate and
what is its characteristics?
 Autocratic style – is a leadership style in which a manager doesn’t share decision-making authority
with subordinates.

Autocratic leadership style is characterized by:

 Managers emphasis on close control

 Managers’ willingness to delegate a very little decision-making authority
 No flow of information from subordinates (leader-subordinate relationship is characterized by
order giving on the leader’s part)
 Sensitivity of managers about their authority
 Leader’s assumption that payment is a just reward for working

22. What are the steps in controlling process indicate in brief description?

Control process

The process is a continuous flow between measuring, comparing and action. There are four steps in the
process:

Step1. Establish performance standard

A Standard is any guideline established as the basis for measurement. It usually expressed numerically
and is set for quantity, quality and time. Tolerance is permissible deviation from the standard.

Time control relate to deadlines and time constraints. Material control relate to inventory and material-
yield control. Equipment control are built in to the machinery, imposed on the operator to protect the
equipment or the process. Cost control help insure cost standards are met. Employee performance
controls focuses on actions and behaviors of individuals and groups of employees. Budget control cost
or expense related standards.

Financial controls facilitate achieving the organization’s profit motive. One method of financial controls
is budgets. Budgets allocate resources to important activities and provide supervisors with quantitative
standards against which to compare resource consumption.

Operation control methods assess how efficiently and effectively an organization’s transformation
processes create goods and services. The methods include Total Quality Management (TQM) statically
process control and the inventory management control. Statistical process control is the use of
statistical methods and procedures to determine whether production operations are being performed
correctly, to detect deviations, and to find and eliminate their causes.

Inventory is a large cost for many organizations. The economic order quantity model (EOQ) is a
mathematical model for deriving the optimal purchase quantity. The EOQ model minimize total carrying
and ordering costs by balancing purchase costs, ordering costs, carrying costs and stock out costs.

The just-in-time (JIT) system is the delivery of finished goods just in time to be sold, subassemblies just
in time to be assembled into finished goods, part just in time to go into subassemblies, and purchased
materials just in time to be transformed into parts.

Step 2. Measure Actual Performance

Supervisors collect data to measure actual performance to determine variation form the standard.
Written data may include time cards, production tallies, inspection reports, sales tickets. Personal
observations, statistical reports, oral reports and written reports can be used to measure performance.

Management by walking around, or observation of employees working, providing unfiltered

information, extensive coverage, and the ability to read between lines. While providing insight, this
method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive
feedback. Computers give supervisors direct access to real time, unaltered data, and information.
Database programs allow supervisors to query, spend less time gathering facts, and be less dependent
on other people.

Step 3. Compere Measured Performance Against Establish Standards.

Compering results with standards determine variation. Some variation can be expected in all activities
and the range of variation – the acceptable variation – has to be established. Management by
exception lets operations continue as long as they fall within the prescribed control limits.

Step 4. Take Corrective Actions.

The supervisor must find the cause of deviation from standard. If the source of variation in work
performance is from a deficit in activity, then the supervisor can take immediate corrective action and
get performance back on track.

23. Discus the type of control methods?

The types of control methods are:

Feed forward controls focus on operations before they begin. Their goal is to prevent anticipated
problems.

Concurrent control apply to processes as they are happening. It enacted while work is being performed
include any type of steering or guiding mechanism such as direct supervision, automated systems (such
as computer programmed to inform the user when they have issued the wrong command), and
organizational quality programs.

Feedback controls focuses on the results of operations. They guide future planning, inputs, and process
designs.
BEKA COLLAGE
Introduction
To
Management
(BNgt-231)
Name: Mekedem Abebaw
ID NO:
Department:
Region (Zone): Oromia
Center: