Maryland International

College

School of Graduate Studies

Management Theories and Practice

Code: MBA-611
Management Theories and Practice Assignment

Name: - Abdurehman Ali Mohammed

Id NO: - FRMBA/002/13

Instructors: Dr. Fanta T. (Asst. Professor) & Submitted Date: April 18/2021
Asst. Professor Goitom
1. Take one organization you closely know or working in and review their
Planning and organizing functions with respect to the planning and
organizing concepts (E.g. How does planning is set; how organizing
function is done…?).

The Question The Function The Result

What is the need? Planning Objectives, policies,

procedures and methods

Where should actions Organizing Work division, work

take place and who assignment, and authority
should do what work? utilization

∴ Here are the ministry of Trade and Industry Planning and Organizing Functions

Planning
The first managerial function involves planning. The function is about creating a detailed plan
towards achieving a specific organizational objective. When you are planning, you are going to
define objectives, develop promises, evaluate alternatives, identify resources, establish the tasks
and determine tracking and evaluating methods which are required to achieve the desired goals,
outlining how the tasks should be performed, and identifying when and by whom they must be
performed. The focus of planning is about achieving the objectives and it does require
knowledge of the organization’s objectives and vision.

Vision:
Becoming a globally competitive trade and manufacturing industry sector by 2022;
Mission:
Explain the process, by making it accessible and competitive, by establishing a fair trade and
providing superior services and support to the local investor and increasing the human and
technological capacity of the sector, ensure the benefit of the producer, consumer and business
community by establishing an effective system.

Objectives
 Serving with participation, transparency and accountability;
 Focus on customer satisfaction;
 Fighting rent-seeking;
 Developing a culture of collaboration;
 Strive for the success of the local investor

Strategic Directions
The trade sector plays a significant role in sustaining economic growth in market-oriented
economic system. In the coming five years priority areas are given to, raising the efficiency and
competitiveness of the sector, strengthening domestic and foreign investment and trade,
eradicating rent seeking behaviors and activities, establishing a favorable environment for
productive investors, promoting a competitive and efficient domestic trade and distribution
system, ensuring consumers' rights, strengthening consumer's cooperatives, and strengthening
the transparency, fairness and accountability of the legal framework of trade activities.

Define objectives
The main objectives for the sector are;
 To ensure modern and fair-trading practices; - As such to enhance transparency and
fairness of the institutional and organizational framework for trade operations.
 Emphasis will also be given to intensifying international trade and improving domestic
marketing systems by strengthening consumers' cooperatives and supporting access to
viable market opportunities
Major Targets
 Introduce fundamental change to improve trade registration and licensing services: At all
levels of trade administration, a uniform and harmonized system of trade registration and
licensing will be established to international standards. The trade registration and licensing
system will ensure fair and transparent transactions of goods and services, easy access to
services and focus on the professional efficiency and competency of services provided to
the business community.
 Support consumers' rights and security by improving the regulatory framework of trade:
 To provide an effective and enabling regulatory framework for trade, appropriate controls
will be put in place that improve the role that the business community plays in ensuring
fair competition and identify solutions to prevent harmful practices.
 Increase the benefits accruing to Ethiopia from international systems governing trade
relations and negotiations: The aim is to better integrate Ethiopia into the ---- multilateral
trading system so as to broaden the benefits from market opportunities and increase
investment flows.
 Strengthen the marketing system for domestic products: -The target aims to increase
production and export diversification; establish an integrated domestic marketing system
and strengthen export development through creation of an integrated marketing system.
Identify resources

Ministry of Trade and Industry has several Trade registration and licensing office around the
country in every region, city and sub-city.

Next, the subordinate office managers must determine the resources needed to implement the
plan. They must examine the resources the organization currently has, what new resources will
be needed, when the resources will be needed, and where they will come from. The resources
could include people with particular skills and experience, equipment and machinery,
technology, or money. This step needs to be done in conjunction with the previous one, because
each alternative requires different resources. Part of the evaluation process is determining the
cost and availability of resources.

Establish tasks

Management will next create a road map that takes the organization from
where it is to its goal. It will define tasks at different levels in the organizations, the
sequence for completing the tasks, and the interdependence of the tasks identified.

Determine tracking and evaluation methods

Ministry of trade and subordinate managers will track the progress of the plan. The
plan should determine which tasks are most critical, which tasks are most likely to
encounter problems, and which could cause bottlenecks that could delay the overall
plan. Ministry of Trade and subordinate Managers can then determine performance
and schedule milestones to track progress. Regular monitoring and adjustment as
the plan are implemented and built into the process to assure things stay on track.
Organizing
The next function of management follows planning and it is about organizing. It’s about
using the plan to bring together the physical, financial and other available resources and use them
to achieve the organizational goal. If your task were to increase sales, you would look at the plan
and determine how to divide the resources you have in order to put your plan in place.

Identifying the Work

The obvious first step in the process of organizing is to identify the work that has to be done by the
organization. This is the ground level from which we will begin. So, the manager needs to identify
the work and the tasks to be done to achieve the goals of the organization.

The Ministry of Trade and Industry shall have the powers and duties to:
A) Formulate policies that ensure sustained development and sustained competitive ness in trade
and industry, and implement same upon approval by the pertinent body;
B) Create an enabling system for increased participation of the private sector; facilitate the
implementation of same;
C) Promote the expansion of domestic trade and take appropriate measures to maintain lawful trade
practices; lead and oversee trade relations between Regional States;
D) Create conducive environment for the expansion and promotion of the country’s export trade;
E) establish system, in coordination with other agencies, for the provision of support to domestic
investors engaged in service, agriculture and industrial sector in exporting them produces to
overseas markets; and implement same;
F) In collaboration with relevant bodies, establish foreign trade relations, sign trade agreements in
accordance with the law, and oversee implementation of same;
G) Control the qualities of export and import goods; prohibit the importation or exportation of
goods that do not conform with the required standards;
H) Establish system to ascertain that export or import goods are traded or bought at appropriate
prices; follow up same in collaboration with concerned agencies;
I) provide simple, cost effective and technology supported commercial registration and business
licensing services;
J) Undertake and submit to the Council of Ministers studies relating to prices of basic commodities
and services that require price control; oversee implementation of same upon approval;
K) Encourage the establishment of chambers of commerce and sectoral associations, consumers’
associations, industry, sectoral and professional associations, and strengthen those which are already
operational;
L) Coordinate the concerned enforcement bodies for the implementation of the legal metrological
system of the country;
M) control the compliance of goods with the requirements of mandatory Ethiopian standards, and
take measure against those found to be below the standards set for them; cause the coordinated
enforcement of standards applied by other enforcement bodies;
N) Design policies, strategies and plans that help in fast-tracking industrial development; implement
same upon approval by the concerned body;
O) Conduct studies and researches to facilitate the realization of plans that enhance export in
industries having strategic importance; and implement same in collaboration with the relevant
agencies;
P) In accordance with investment laws, create conducive environment for the participation of
domestic investors in industrial development and establish system for the provision of appropriate
support; establish systems to enable the institutions accountable to it to support domestic investors;
and implement the same;
Q) Facilitate the selection, adoption and inculcation of technology that accelerates industrial sector
development; expedite the acquisition of best practices, technology transfer and skills development
and general capacity building activities in industrial development;
R) cause the provision of assistance including industrial extension services, technology, inputs,
marketing and manufacturing methods and thereby ensure growth and productivity of the industrial
sector; and monitor the effectiveness thereof;
S) Establish systems of capacity building, research and inculcation to maintain quality standards
and competitiveness of industrial products in international markets; oversee implementation of the
same;
T) Design mechanisms to meet human resources and sustainable input provisions required in the
industrial sector;
U) Work in cooperation with concerned bodies to create conditions necessary for the establishment
of system for industrial input provision linkages, and implement the same;
V) Extend support to substitute import goods having strategic importance with local production;
create necessary conditions for government provision of goods and services which are not supplied
by the market system or are in short provisions;
W) Develop working mechanisms to create linkage between small, medium and large-scale
industries and facilitate effective transformation;
X) Provide support to industries so as to ensure compliance with environmental protection
requirements;
Y) Coordinate the collection, organization and utilization of national trade and industry data;
maintain organized information system; and disseminate same to pertinent bodies;
Grouping of Work
For the sake of a smooth flow of work and smooth functioning of the organization, similar
tasks and activities should be grouped together. Hence, we create departments within the company
and divisions within each department. Such an organization makes the functioning of the company
way more systematic.
Although In every trade and industry subordinate office the similarity works is grouped to fasten
and control the flow of work; it has at least thus groups in the office:
1. Commercial Registration and Business Licensing group
In this group there are tasks and activities
 Commercial registration and Business license service
 System administration
 Cashier
 Registry
2. Inspection and Regulatory group
 Inspection and regulatory
 Audit
 Informal
 Measuring
3. Commercialization
Establish Hierarchy
To establish the reporting relationships for all the individual employees of the organization.
So, a manager establishes the vertical and horizontal relationships of the company.
Delegation of Authority
Authority is basically the right an individual has to act according to his wishes and extract
obedience from the others. So, when a manager is assigned certain duties and responsibilities, he
must also be delegated authority to carry out such duties effectively. Although every individual in
trade and industry office has its own duties and responsibilities as he assigned for that place.
Coordination
The Organization must ensure that all activities carried out by various employees and groups
are well coordinated. Otherwise, it may lead to conflicts between employees, duplication of work
and wastage of time and efforts. He must ensure all the departments are carrying out their
specialized tasks and there is harmony in these activities. The ultimate aim is to ensure that the goal
of the organization is fulfilled. Here is the Organizational structure:
2. Discuss the different leadership styles? Evaluate the advantages and
disadvantages of the leadership styles of your company or any company
you are familiar with.
1. Autocratic leadership
This style is known as authoritative or directive style of leadership. In this style, the entire
authority is focused in the hands of the leader. He decides all policies. He gives direction to
subordinates and demand complete obedience from them. He creates the work situation for the
subordinates and the latter have to execute what they are told. Autocratic leader possesses all the
authority and assumes complete responsibility for the task entrusted.
Here leader is completely responsible for the good or bad result obtained. This type of leadership
is rarely seen in any organization.
There are three types of autocratic leaders:
i. Strict Autocrat:
He is one who influences the actions of the subordinates by frightening, criticizing and imposing
penalties.
ii. Benevolent Autocrat:
Though he possesses, authority and power, he influences the actions of the subordinates by
encouragement, inspiration and guidance.
iii. Incompetent Autocrat:
He is one who hides his incompetence, lack of skill and knowledge by being very harsh
with the subordinates. In other words, he veils his deficiency by virtue of exercising the
authority in an autocratic fashion.
Advantages: Since only leader takes the decision, hence no communication gap. In this type
less time is required to take decision. Any sudden crisis or difficult situation can be handled
more effectively.
i. Faster decision-making
ii. Strong motivation to the leader
iii. Suitability.
Disadvantages: This type of leadership is rarely effective. Since group member are not the part
of decision making, this may lead to decrease in employee morale. Chances of lack of trust
between leader and group can be more.
i. No role in decision-making
ii. Exploitation of employees
iii. No opportunity for creativity
iv. Frustration
v. No development of leadership skill
2. Democratic leadership
In this style of leadership, group member is also considered as the part of decision
making. Ideas are exchanged freely and at last discussion is done to make the final decision.
Whole team member is guided by the leader. This type of leadership can be applied to any
organization. This style of leadership is highly flexible. Leader has the authority to take the final
decision.
Democratic Style of Leadership Involves:
i. Consulting the subordinates.
ii. Decentralizing decision-making to subordinates.
iii. Allowing free flow of communication between the leader and the follower.
iv. Inviting views, opinions, suggestions and ideas from subordinates for making quality
decisions.
Advantages: Different ideas are shared easily among one another. This type of leadership is
highly effective and productive. Interest and morale of the employee towards the work
increases.
i. Favorable inclination towards job
ii. Creative urge
iii. Improved morale
iv. Nurturing leadership skill
Disadvantages: Difficult to maintain the co-ordination among the group. Agree and disagree
on particular topic may leads to communication gap. Chances of getting poor ideas from
unskilled member.
i. Delayed decision-making
ii. Secrecy maintenance difficult
iii. Indiscipline
3. Laissez-Faire leadership
Laissez-Faire is a French term which means “Let them do”. So, in this type of leadership
members are allowed to take their own decisions. This type of leadership increases the employee
morale but sometimes may leads an inappropriate result. This type of leaderships is mostly seen
at homes where children are allowed to take their own decisions. Another example of this kind is
students in Kindergarten school are allowed to do according to their own will.
Advantages: Members of the group feel free to explore themselves. Good co-ordination and
interaction is maintained between the members.
Disadvantages: If the member of the group is not capable, probability of getting inappropriate
result increases.
4. Transactional leadership
Transactional leadership is basically a supervision type. In this leader gives reward to the
motivate and energize towards the target. In this type, leaders always make the target visible by
making employees understand each and every step to follow. They also give orders and
instructions of what to be done next.
Advantages: In this type, leaders make employee more productive. They eliminate each and
every doubts of the employee regarding any task.
Disadvantages: Leaders sometimes become insensitive towards their employees. They focus
more on target rather on employee’s creativity and encouragement.
5. Transformational leadership
It is a type of leadership in which leaders always try to explore their employees in terms
of attitude and social changes. Transformational leader prepares their employees to face sudden
changes in the target, crisis and any kind of difficult situation. This type of leader does not highly
depend previous stats.
Advantages: Leader encourages their group towards the target and makes them interactive
and more communicative.
Disadvantages: Risk taken can leads to bad result. Leaders have to ignore certain protocols of
the organization
6. Bureaucratic leadership
It is very similar to Autocratic leadership. The main difference is that, in this type of
leadership, leaders might consult the group regarding any topic but the whole authority to take
the final decision is in the hands of leader. Sometimes it is highly effective and productive.
Advantages: Duties of every employee is centralized and the jobs are highly secured. Every step
are well structured and organized.
Disadvantages: It is inflexible due to structured pattern. This type of leadership does not offer
creativity to the employee. Organizations following this type of leadership barely adopt any
changes.
7. Strategic leadership
It is a style of leadership in which top executives of organization develops tactics and
vision for the welfare of the organization. They play main role in decision making. This makes
top management more responsible towards the goal.
Advantages: They develops structured and organized pathway for decision making which
makes target more visible and clearer.
Disadvantages: Forecasting may lead to inaccurate result. Flexible is difficult due to structured
plans and strategies.
3. What are the different types of departmentation? Discuss how
departments are organized in the company you are working at with
respect to the different bases of departmentation.
1. The service department.
The service department, typically populated with employees with backgrounds in electronics
and/or engineering, can mitigate equipment failure and troubleshoot related issues. Time is the
most important factor to the service team. When a system is broken, they work to keep the
downtime to a minimum to ensure customer satisfaction.

In any Trade and Industry subgroup, a quick response by the company is needed to keep
processes and customer service up and running. In cases where a system can’t be fixed (e.g.
because it’s too old and there are no spare parts), service engineers contact sales people to help the
customer get a quick replacement or new technology as quickly as possible.

2. The supply chain management department.

The supply chain management department must handle the planning, monitoring, and execution of
supply chain activities.

This department is responsible for customers and also, employees. For customers it controls that if the
supply is reached their demand and the traders give service for the people wisely. For employee the
department deal with their mileages.

3. The production and quality assurance departments.

Quality assurance departments take responsibility for defining the procedures for achieving and
improving consistent product quality. These departments are constantly working to enhance the existing
quality of products by optimizing the existing production processes and by introducing new processes.

This department control and pursue the traders how they give service for the people regard to
production quantity and quality. The company assure that the department is working effectively and
there is no grievance from people.

And also, the department assure that the customers (Traders) renew their Business license and
other quality license (ex. Scales, quality assurance license from other quality assurance service
department like food and medicine department, and so on.)
4. The finance department.
Finance departments focus heavily on planning and organizing the company’s finances and
producing financial statements. For the customer, the finance department helps evaluate and
approve their credit rating (or funding level).

Once a new customer starts ordering new Business registry and license service or to renew the
service that already had from Trade and Industry, the company’s finance team will handle the
invoices and all issues related to money trafficking.

These customer-facing finance activities are often integrated with customer service activities
to keep the customer happy and cared for.

5. The information technology department.

This department provides the tools to ensure every department receives information at the right
time and at the right place. Unfortunately, most employees and customers only acknowledge the
IT department’s presence when a computer crash.

This department works hard every day to update software, upgrade firewalls, manage
voiceover IPs, and in general work to ensure that communication internally and externally never
falters.

As a result, the IT department has to be available to troubleshoot computer and computer

system problems.
4. “Organizations are thought as an open system”. Discuss this concept by
providing real organizational example.
Any organization can be described as a “system.” A system is a group of components (or
parts) that interact with each other and are dependent on each other to serve a common goal.
Organizations and other social systems can be “closed” or “open” systems. Closed systems have
boundaries that cannot be penetrated by new information or ideas. Open systems have permeable
boundaries (or boundaries which allow things to pass through them). Open systems interact with
their environments and constantly let in new information and ideas so that they can continue to
grow.
An open system is a system that regularly exchanges feedback with its external
environment. Open systems are systems, of course, so inputs, processes, outputs, goals, assessment
and evaluation, and learning are all important. Aspects that are critically important to open systems
include the boundaries, external environment critically important to open systems include the
boundaries, external environment and equifinality.
Healthy open systems continuously exchange feedback with their environments, analyze
that feedback, adjust internal systems as needed to achieve the system’s goals, and then transmit
necessary information back out to the environment.
Open system is applied in most of the companies and organizations. Trade and Industry is
one of them. This organization is applied the open system technique to improve and to increase
the scale of the organizations by asking the customers if they are happy or not about the service
and although if they have any doubt about the service in this case the company(organization)
interact with the outside world to grow with every aspects.
 Open system model

Open system view of organization