YARDISTIC INTERNATIONAL COLLEGE

Masters of Business Administration

EVENING PROGRAM

MANAGEMENT THEORIES AND PRACTIES

Assignment one

By Section B, Group 3 members

SUBMITTED TO: - ASSEFA GARBI (ast. prof)

SECTION B

GROUP MEMBERS

1. OBSINET DEREJE
2. SORAME AMARE
3. GETNET TESEMA
4. HANA MAMO
5. YONATHAN FIKRE
6. SIMRET MEBRAHTU
7. MEKDELAWIT WONDIFRAW
8. BIRUK ALEMAYEHU
Assignment 1

1. Analyze and evaluate organizational design of your company/organiza-

tion in which you work and determine its conveniences for the current
management issues.

Answer:- Organization Design is a process for shaping the way organizations are
structured and run.

It involves many different aspects of life at work, including

 Team formations,
 Shift patterns,
 Lines of reporting,
 Decision-making procedures,
 Communication channels and more.

The Impact of Organization Design

An organization's design must be right for it to operate efficiently and effectively,

and its structures and systems need to be aligned with its core strategies.

There are many potential benefits to having a design that suits the business and its
people, and the environment in which it operates. For example:

 Increased efficiency.
 Faster and more effective decision making.
 Improved quality of goods and services.
 Higher profits.
 Better customer relations.
 Safer working conditions.

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  Organization Design is often divided into two distinct styles: hierarchi-
cal and organic

Hierarchical and Organic Organization Design

Characteristic Hierarchical structure Organic structure

High – with an emphasis on

horizontal separation into Usually lower – less differen-
functions, departments and tiation and functional separa-
Complexity divisions. tion.

High – lots of well-defined Lower – no real hierarchy and

lines of control and respon- less formal division of re-
Formality sibility. sponsibilities.

Low – employees lower
down the organization have Higher – lower-level employ-
little involvement in deci- ees have more influence on
Participation sion making. decision makers.

Lateral, upward and down-

Downward – information ward – information flows
starts at the top and trickles through the organization with
Communication down to employees. fewer barriers.

So in our organization management (Design) structure is a hierarchical structure

especially on functional structure.

Hierarchical organizational structure is a common way to organize a business. It

creates a vertical structure where every person within the organization, except one,
is a subordinate to another single individual or entity. The person with the top rank
appears at the top of the structure, which is often visualized as a pyramid.

There are also two popular types of hierarchical organizational designs Functional
Structures and Divisional Structures.

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In a Functional Structure, functions (accounting, marketing, H.R., and so on) are
separate, each led by a senior executive who reports to the CEO. This can be a very
efficient way of working, allowing for economies of scale as specialists work for
the whole organization. There should be clear lines of communication and account-
ability.

2. Examine different management models and propose how they affect

management practice and recommend management models which you
think are relevant for your organization.

Answer: - What Is Management Model?

A management model is a new way to look at your career. The choices made by a
company’s top executives regarding how they:-

 Define objectives,
 Motivate effort,
 Coordinate activities and
 Allocate resources.

In other words, how they define the work of management Inspired by changes in
the expectations of their employees, new technological capabilities and the offer-
ings of emerging competitors.

1. Kotter’s Change Management Model

Kotter’s change management theory is one of the most popular and adopted
ones in the world. 
This model has eight stages and each of them focuses on employees’ response to
change.
 Increase urgency – Creating a sense of urgency among employees may be the
best way to motivate and engage them during the process.
 Build the team – Determine the right set of skills and personalities for the
team that will be responsible for driving change within the organization. 
 Get the vision correct – Take into account not just the strategy, but also em-
ployees' creativity, emotions and project's objectives.
 Communicate – Be transparent and frequently communicate with people
about the changes being implemented.

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 Get things moving – Get support, remove the roadblocks and collect feedback
in a constructive way.
 Focus on short term goals – Don’t just focus on the end result. Set small
goals and recognize small achievements during the process to boost employee
morale.
 Incorporate change – Reinforce and make change a part of the workplace cul-
ture. Help employees adjust, and reward them for the new behaviors. 
 Don’t give up – Changes don’t happen overnight, and obstacles are unavoid-
able. Be persistent while the process of change management is going on, no
matter how tough things may seem.
Why we like this model
 Kotter’s change management model is pretty easy to follow and incorporate.
Our favorite part of this model is that it focuses on preparing employees for
change rather than change implementation itself.  

2. McKinsey 7-S Change Management Model

McKinsey 7-S framework or model is one of the longest lasting change manage-
ment models out there. 
This model consists of 7 crucial categories that companies should be aware of
when implementing change:
 Strategy – Strategy is the change management plan that should consist of a
step-by-step procedure or future plan.
 Structure – This factor is related to the structure in which the organization is
divided or the structure it follows.
 Systems – This stage focuses on the systems that will be used to complete day-
to-day tasks and activities.
 Shared values – Shared values refer to the core or main values of an organiza-
tion according to which it runs or works.
 Style – The manner in which change is adopted or implemented is known as
‘style’.
 Staff – The staff refers to the workforce or employees and their working capa-
bilities.
 Skills – The competencies as well as other skills possessed by the employees
working in the organization.
Why we like this model
 Unlike most other models, this model focuses on all the important fac-
tors that change may impact.

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3. ADKAR Change Management Model

ADKAR model can be used by Change Managers to find out various gaps in the
process so that effective training can be offered to the employees. 
Even though ADKAR model focuses on the business-oriented goals, it can be very
useful to support employees to more easily go through the process of change.
ADKAR Model stands for:

 Awareness – of the need and requirement for change

 Desire – to bring and be part of change
 Knowledge – of how to drive change
 Ability – to incorporate the change on a regular basis
 Reinforcement – to keep it implemented and reinforced later on as well.
Why we like this model
 This change management model is a great solution for companies that are
trying to look at both the business and people dimensions of change.

4. Kübler-Ross Five Stage Change Management Model

This model is different from the others in a sense that is 100% employee-ori-
ented. The model can also be applied to other life situations such as loss of job,
changes in work and other less serious health conditions. 
This model helps employers understand better their employees and empathize
with them. This model consists of five stages through which your employees may
be going during organizational changes.  
 Denial – In this stage, employees are not willing to or unable to accept change.
This happens because most people show resistance towards change and may
not want to believe what is happening.
 Anger – This model assumes that when the news first get absorbed, anger fol-
lows. Denial converts into anger when employees realize that the change is ac-
tually happening. 
 Bargaining – During the bargaining stage, employees try to get to the best
possible solution out of the situation or circumstance. Bargaining is a way for
people to avoid ending up with the worst case scenario.
 Depression – When employees realize that bargaining is not working, they
may end up getting depressed and may lose faith. Some of the symptoms in-

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 clude low energy, non-commitment, low motivation and lack of any kind of
excitement or happiness.
 Acceptance – When employees realize that there is no point in fighting change
any more, they may finally accept what is happening and may begin to resign
to it. 
Why we like this model
 We love this change management model because of its focus on employees,
their feelings, concerns and needs.

5. Lewin’s Change Management Model

Lewin’s Change Management Model is one of the most popular accepted, and
effective change management models.
It helps companies better understand organizational and structured change. This
model consists of three main stages which are: unfreeze, change and refreeze. 

 Unfreeze: This is the preparation stage where employers must get prepared for
change. The crucial step here is to enhance open employee communication ex-
plaining why change is necessary. The goal is to overcome employees’ resis-
tance to change as much as possible. 
 Change: This is the stage in which change gets implemented. Continuing on
the first stage, good leadership and effective employee communications are
crucial here. 
 Refreeze: This is the stage in which change is accepted and employees go back
to their routine. This stage should be considered as almost ever-going. Leaders
should make sure that changes are adopted and used even after the change
management objectives have been achieved.
Why we like this model
 Lewin’s change management model describes in a very simple way the main
3 stages that every change management process has to go through: pre-
change, during change and post-change. 
 Because of its simplicity, many organizations choose to follow this model
when implementing change.

3. Evaluate a given model of leadership and/or management for its useful-

ness in guiding effective decision making

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Answer:-
Types of leadership models

 Team-oriented leadership
 Authoritarian leadership
 Country club leadership
 Impoverished leadership
 Bureaucratic leadership

Before we examine the framework and the characteristics of bureaucratic leader-

ship with respect to effective decision making, It’s auspicious to delve deeper into
what the word stands for and the findings of the two main leadership studies and
theories that have had an impact on the leadership model.

As the bureaucratic systems began taking over modern societies, many philoso-
phers and thinkers began examining the frameworks influencing bureaucracy. In-
fluential thinkers such as John Stuart Mill and Karl Marx have examined the role
of bureaucracy as part of a functional society. But in terms of leadership theory,
Max Weber and George Ritzer have perhaps been the most dominant in describing
the style.
Bureaucratic leadership is based on structure and it requires a clear framework to
support its functions. Unlike with certain other leadership theories, such as charis-
matic leadership, the framework is rather easing to follow and to set up.
In this section, we’ll examine the core of the bureaucratic leadership framework.
First, we’ll outline the six tenets of the model laid down by Max Weber. After,
we’ll examine a set of four elements that form the basic requirements for a modern
bureaucratic framework.

Weber’s six tenets

In Economy and Society, Weber identified the ideal types of governing and leading
different organizations. As mentioned above, big chunk of the work was dedicated
to the study of bureaucratization of society. He examined the different elements of
bureaucracy and how they are organized, creating a theory of civil society, which
has been used and analyzed ever since.
Furthermore, a big part of the analysis focused on the conditions and elements re-
quired for bureaucratic leadership to work efficiently. He described six tenets that
are crucial for the framework.
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1. Strict and formal hierarchy
Bureaucratic leadership relies on a strict and formal hierarchy, which guarantees
members within the organization are aware of the structure. The authority is orga-
nized in a manner that guarantees a higher level of leadership controls each level of
subordinates. Which in turn is controlled by another layer of leaders.
The formal hierarchy ensures authority is clearly defined and the command struc-
ture works like a well-oiled machine. The strict and formal hierarchy is the basis
for the bureaucratic leadership framework. It guarantees the organization can plan
efficiently and ensures the decision-making is centralized. 

2. Immutable rules, regulations and laws to control the organization

The formal hierarchy can be withheld in place through a set of rules. A bureau-
cratic system requires defined rules that will control the structure and keep it in
place. These two elements are the cornerstone of the model, because they both
complement each other and provide support for each other.
The rules will provide consistency within the framework as well. Since the rules
define the operations from small tasks to bigger decisions. The bureaucratic system
is known for its, sometimes laborious, rules, but it is this that creates the frame-
work for leadership.
It shouldn’t be seen as a burdensome aspect either, as the leader is more able to
manage subordinates in a just manner, as the framework provides consistency in
execution.

3. People are organized according to specialties

Bureaucratic leadership is not always associated with high level of skills, but it em-
phasizes knowledge and expertise in its framework. The system isn’t about know-
ing the right people or being the best at selling yourself to a position. The system
always tries to combine the best talent with the right position.
According to Weber, the function of an efficient bureaucratic system is to focus on
specialists. People are directed to roles that fit their skillset perfectly, as this can
guarantee they are able to excel and help the organization to succeed.
Furthermore, the bureaucratic leadership framework establishes these roles and
units clearly. The job specialization and skillset required to perform them are de-
fined in a manner that makes finding the right person as smooth as possible.

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 4. Two key missions
According to Weber, the bureaucratic organization has to have either of these two
key missions:

 Up-focus mission, which means the organization, is aimed at serving the stock-
holders, the board, or any other such agency that empowers it to operate. The orga-
nization wants to ensure the benefits of labor flow towards the ‘outside’ of the or-
ganization to secure further support from the source.
 In-focus mission, which puts the organization itself as the focus of the operations.
Under this mission the aim is the provide benefits to the organization and the peo-
ple within it, such as creating more profit, improve the market share or enhance
cash stream.

5. Impersonal style
While certain leadership frameworks put the persons in the front, such as servant
leadership or charismatic leadership, the bureaucratic system is purposely imper-
sonal. The personalities and the individual achievements are not at the core of the
system, the main focus should be on the organization and the performance. The in-
dividual takes a lesser role.
The reason behind the thinking is about consistency and equal treatment. Accord-
ing to Weber, this kind of impersonal approach can guarantee the operations and
functions perform rationally and are not affected by emotions or individual differ-
ences.

6. Hiring based on technical proficiency

Just as the subordinates are directed to roles that suit their individual skillsets, the
hiring in a bureaucratic leadership model is based solely on technical proficiency.
What this means is that the person who has the skills required in the specific role
will always get the role. As long as you are able to do the job appropriately, then
you are guaranteed the role.
This also results in the companies moving people from one role to another as the
skills develop and change. The bureaucratic system doesn’t have much movement,

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because it favors in-house knowledge and understanding of the framework in
place.

The six tenets outlined by Weber arises four core characteristics of a bureaucratic
leadership framework. In order for the model to work efficiently, these elements
must be at the core of all decision-making and operational efficiency.
First, the system requires strict and systematic discipline on the subordinates.
This is established by the rules and guidelines and it typically involves every as-
pect of the organization. Bureaucratic leadership models don’t only consider how
the decisions are made within the organization; it also established guidelines on
how the work will be done and how employees must conduct themselves at all
stages. For example, things such as dress code can be strictly imposed on the sub-
ordinates.

4. Explain why the choice of technology is such an important strategic de-

cision for an organization (mention its contribution in increasing pro-
ductivity, efficiency, profitability, quality decision, managing corporate
undertaking, service quality)

Answer:-
 Small and medium sized business (SMB’s) is constantly looking for
new technology to create workforce that is more productive, more ef-
ficient and more innovative.
 In addition the rising trend of remote workers has led to an increase
demand for on demand data. Data that is accessible at any time, from
anywhere.
 Identifying technology solutions that unlock these attributes and en-
able true productivity, all saying under budget, is a goal of all SMBs.
Some ways today’s technologies help increase productivity:

 It enables more effective communication

 It allows teams to streamline and customize workflows
 It increases and enhances collaboration
 It increases employee engagement
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 5. Provide examples demonstrating how ensuring sustainability work
practices contribute to sustainability in business and growth.

Answer:-

There seems to be more and more education on the importance of corporate social
responsibility in support of sustainable business practices. The increasingly popu-
lar green approach to business practices is what sustainability is all about. Sustain-
ability is a term that has grown in popularity and has become a catchphrase for
green business practices that has been incorporated into many corporate strategies.
Here are some examples of sustainable business practices.

1. Be Intentional About Sustainability

Sustainability needs to be incorporated into corporate strategies and reflected in or-

ganizational business goals. This means making this a priority in every aspect of
organizational operations. As with any other business initiative, you need to make
a plan of action and assign accountability.  Hold people accountable and measure
the results.

2. Partner with Employees

Invest the time in training employees on the importance of sustaining the environ-
ment and share what the organization is doing to help conserve resources. Solicit
additional ideas from employees for resource conservation. You might be surprised
at what employees are experiencing and can offer ideas to reduce waste and im-
prove their work environment.

3. Water and Electric Conservation

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 Conserving our water is something we can all participate in by reducing the oppor-
tunities for wasting this valuable resource. For example, converting to energy-effi-
cient faucets, toilets, and lighting can be a great way to save water, energy, and
budget dollars.

4. Supply Chains

Statistics show that customers prefer working with sustainable companies that

are environmentally friendly. Maintain a list of sustainable friendly vendors and
make it a priority to only use organizations that embrace sustainable business prac-
tices. Negotiate contracts with this expectation made clear.

5. Develop a Recycling Program

Develop an in-house program for recyclable products like:

 fluorescent light-bulbs

 electronics

 computers and monitors

 paper products

 supplies

Use your waste management vendor to help create a process for this.

6. Chemical Management

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We are learning more and more about the impact of chemicals on our environment.
Strive to use green cleaning products and non-chemical products for pest control
and weed management. Use your chemical vendors to help train employees on the
proper use and disposal of chemicals. If you outsource your facility cleaning to a
professional cleaning company, insist on the use of green products.

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