Admas University

TMA (Tutorial Marked Assignment) for the course of Introduction to Management

Answer sheet

Part One

1. The Basic Elements of Communication process are:

i. The Sender.
The communication process begins when a person, known as the sender, generates
a message. Messages stem from a person’s need to relate to others, to create
meanings, and to understand various situations.
ii. The Message.
The message is a stimulus produced by a sender and responded to by a receiver.
Messages may be verbal, nonverbal, written materials, and artistic.
iii. The Channel.
The channel is the medium through which a message is transmitted.
iv. The Receiver.
The receiver is the person who intercepts the sender’s message. Receiving is
influenced by complex physiological, psychological, and cognitive processes. The
physiological component involves the process of hearing.
v. Feedback.
Feedback is the information the sender receives about the receiver’s reaction to the
message. The function of feedback is to provide the sender with information about
the receiver’s perception of a situation. Having this information, the sender can then
adjust the delivery of the message to communicate more effectively.
2. Leadership is a trait of influencing the behavior of individuals, in order to fulfill
organizational objectives. A number of leadership theories have been propounded by
various management experts considering behavior, traits, nature, etc. namely,
Authoritarian, Laissez-faire, Transactional, Transformational, Paternalistic and
Democratic.
a. Transactional Leadership
Transactional Leadership also known as management leadership, refers, to a leadership
style which lays emphasis on the transaction between leader and its subordinates.
Transactional leaders are always willing to give you something in return for following

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
them. It can be any number of things including a good performance review, a raise,
a promotion, new responsibilities or a desired change in duties. Transactional
leadership is also known as managerial leadership and focuses on role of supervision,
organization, and group performance. Transactional leaders sometimes display the
traits or behaviors of charismatic leaders and can be quite effective in many
circumstances while creating motivated players. They are adept at making deals that
motivate and this can prove beneficial to an organization. Transactional leaders use
reward and punishments to gain compliance from followers, they accept goals,
structure, and the culture of existing organizations.
b. Transformational Leadership
It is a type of leadership which becomes a reason for the transformation (change) in the
subordinates. In this style, the leader works with the subordinates to ascertain the
desired change in the organization. Transformational leaders seek to change those they
lead. In doing so, they can represent sustainable, self-replicating leadership. Not
content to simply use force of personality (charismatic) or bargaining (transactional)
to persuade followers, transformational leaders use knowledge, expertise and vision
to change those around them in a way that makes them followers with deeply
embedded buy-in that remains even when the leader that created it is no longer on the
scene.
3. Management knowledge exhibits characteristics of both art and science; the two are not
mutually exclusive but supplementary.
Management may be understood as an art on account of the following reasons:
a. The knowledge of Management like other arts has practical application. It is applied to
specific situations for better results. In every situation, manager strives to solve the
problem efficiently or make superior quality decisions to realize the objectives or meet
the target with minimum efforts and resources.
b. Application of management knowledge calls for „creativity and innovativeness‟. On
the basis of fundamentals of managerial knowledge, analytical abilities and
foresightedness, the manager goes on discovering new ideas, relationships and more
efficient ways of doing things

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
c. Theoretical knowledge of management may not be adequate or relevant for solving the
problem. It may be due to complexities or uniqueness involved in the problem. In such
a situation, the manager has to rely more on his past experience, perception, intuition
and judgment.
Management, as a science bears the following characteristics:
a. Management is a systematic body of knowledge consisting of principles of
generalizations, approaches and concepts which are to be applied in practical situations.
This knowledge helps the managers to understand the process of management and the
problems involved in it.
b. The principles, generalizations and concepts of management have been developed and
formulated on the basis of observation, research, analysis and experimentation as is in
the case with the principle of other sciences
c. Management knowledge and its principles are „codified and systematized‟ and can be
transferred form one manager to another and can be taught.
d. Management principles are „universally applicable‟ to all types organizations. They
are generalized in nature, forming general guidelines for the managers to practice.
4. The Difference between Programmed & Programmed Decisions are as follows:
Programmed decisions
a. Programmed decisions made using standard operating procedures.
b. Deals with frequently occurring situations. (Such as requests for leaves of absence by
employees)
c. Much more appropriate for managers to use programmed decision for similar and
frequent situations.
d. In programmed decisions managers make a real decision only once and program itself
specifies procedures to follow when similar circumstances arise.
e. Leads to the formulation of rules, procedures, and policies.

Non-programmed decision

a. Situations for Non-programmed decisions are unique, ill-structured.

b. Non-programmed decisions are one-shot decisions.
c. Handled by techniques such as judgment, intuition, and creativity.

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
d. A logical approach to deal with extraordinary, unexpected, and unique problems.
e. Managers take problem-solving approaches in which logic; common sense and trial
and error are used.
5. Definition and Meaning of Management
a. Management is a system of getting things done through and with people and directing
the efforts of individuals towards a common goal.
b. Management is the process of planning, organizing, directing, and controlling the
activities of the organization in order to accomplish its goals. (Terry)
c. Management is defined by (Kreitner 1995) is a process of working with and through
others to achieve organizational objective in a changing environment. Central to this
process is the effective and efficient use of limited resources. Posit that management is
the process of designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims. The key aspects of
management are getting things done through people in an effective, efficient and
economic manner in order to achieve the organization’s objectives. It is the effective
and efficient use of related resources, human, material, capital for the actualization of
a goal known as the overall Organization’s goal.
6. An effective compensation strategy motivates current employees and is used as a tool to
attract new ones. This includes the cost of health benefits, retirement benefits, tuition
reimbursement, bonuses or any other non-salary benefit that is considered part of a
total compensation package.
A systems of compensation are much more than simple ways to bring market transactions
for labor in a firm. Compensation systems can assist in creating economic exchanges that
are effective i.e. given by the worker for the remuneration of finances offered by the firm
that employs. In addition, a systems of compensation also play essential roles both socially
and symbolically in any firm and by these roles, the systems of payment affect several vital
outcomes like the nature of relationships of work, commitment of employees as well as
performance.
7. Maslow's hierarchy of needs is a motivational theory. Our most basic need is for physical
survival, and this will be the first thing that motivates our behavior. Once that level is

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Admas University
TMA (Tutorial Marked Assignment) for the course of Introduction to Management
fulfilled the next level up is what motivates us, and so on. The first four levels are often
referred to as deficiency needs, and the top level is known as growth or being needs.
The most basic need emerging first is Physiological needs. This is also categorized as
Deficiency needs, arise due to deprivation and is said to motivate people when it is unmet.
Physiological needs are biological requirements for human survival, e.g. air, food, drink,
shelter, clothing, warmth, sex, sleep.
Safety needs is protection from elements, security, order, law, stability, freedom from fear.
Love and belongingness needs is after physiological and safety needs have been fulfilled,
the third level of human needs is social and involves feelings of belongingness. The need
for interpersonal relationships motivates behavior Examples include friendship, intimacy,
trust, and acceptance, receiving and giving affection and love. Affiliating, being part of a
group (family, friends, work).
Esteem needs - which Maslow classified into two categories: esteem for oneself (dignity,
achievement, mastery, and independence) and the desire for reputation or respect from
others (e.g., status, prestige).
Self-actualization needs is the most sophisticated need in which growth needs continue to
be felt, realizing personal potential, self-fulfillment, seeking personal growth and peak
experiences. A desire to become everything one is capable of becoming.
8. The essential steps in planning:
a. Assessing the present situation and gather information to determine the real problem
b. Forecasting the future conditions
c. Setting clear cut organizational objectives
d. Communicating objectives
e. Developing planning premises and constraints
f. Surveying resources
g. Establishing objectives
h. Developing alternative course of actions.
i. Creating producers and rules
j. Establishing timetables
k. Constraint revision and progress checking

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Admas University
TMA (Tutorial Marked Assignment) for the course of Introduction to Management
9. Characteristics and features of successful organizations are:
a. Work specialization/ division of labor
Division of labor is the separation of a work process into a number of tasks, with each
task performed by a separate person or group of persons. It is most often applied to
systems of mass production and is one of the basic organizing principles of the
assembly line.
b. Span of Management(span of control0
Span of control refers to the number of subordinates under the manager’s direct control.
As an example, a manager with five direct reports has a span of control of five.
c. Centralization and decentralization
Centralization is a method of organizing and management where management and
decision-making powers are concentrated in the hands of the top management of
the organization. Centralization may concern all decisions and powers, or may
be centralized only selected managerial functions.
Decentralization is a type of organizational structure in which daily operations and
decision-making responsibilities are delegated by top management to middle and
lower-level managers. This frees up top management to focus more on major decisions.
d. Departmentation
Departmentation is the division of work into smaller units and their re-grouping into
bigger units (departments) on the basis of similarity of features. Each department is
headed by a person known as departmental manager. The activities of the group is on
the basis of Function, Geographic, customer and process.
10. Advantages and Disadvantages of democratic Leadership style
Advantages democratic Leadership styles
a. Encourage followers to participate in decision making activities
b. Allows two way flow of information both upward and down ward.
c. Maintain good human relationships with subordinates. This motivates workers for high
level of performance
d. Permit workers to take their own initiatives and initiative and judgment and exercise
loose supervision.
e. It improves the relevant knowledge of the team.

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Admas University
TMA (Tutorial Marked Assignment) for the course of Introduction to Management
Disadvantages of democratic Leadership styles

a. Democratic leadership styles can stop a leader from making an immediate decision,
even if a choice must be made immediately.
b. Even with multiple levels of feedback and experience offered, the democratic
leadership process doesn’t always come up with a true consensus.
c. Democratic leadership styles tend to frame equality above any other perspective within
the team environment.
d. A democratic leader is looking for options. Although there are more options available
in these styles that is still not a guarantee that the right choice is going to be made.

Part two

1. Planning process of Dashen Brewery SC on Product and Services Planning

1.1.Back Ground of the Company
Dashen Brewery was established its first brewery in 1992 E.C which is located in the
historical town Gondar with an initial annual production capacity of 300,000hl which
is now ramped up to 900,000 hl/ annum.
Dashen Brewery is currently built its second largest brewery which is located in Debre
Berhan. The new Greenfield brewery comprises with state of art technology and the
only Ethiopian brewery adhering to the German purity law which regulates the
ingredients that can be used to produce beer. The new plant has capable of producing
2,000,000 hl/ annum.
The Products are Dashen bottle beer, Balageru bottle beer, Jano bottle beer, Dashen
draught beer and Balageru draught beer.
1.2.Product and Services Planning
The goal in product planning is to create a more appealing product or service mix than
competitors'. Product planning is a function of the marketing, finance and operations
departments. The marketing department is responsible for discovering what targets
customers want and need. The operations department is responsible for providing input
on how best to design and manufacture products or develop services; the accounting
department provides guidance on how to keep costs low and sets the ideal prices.

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
1.2.1. Planning on New product Development
a. Perception of Opportunities
Formulation of plans by providing clue whether opportunities exist for taking up
particular plans. Perception of opportunities includes a preliminary look at possible
opportunities and the ability to see them clearly and completely, a knowledge of
where the organization stands in the light of its strengths and weaknesses, an
understanding of why the organization wants to solve uncertainties, and a vision of
what it expects to gain.
This provides an opportunity to set the objectives in real sense because the
organization tries to relate itself with the environment. In doing so, it takes the
advantages of opportunities and avoids threats. This is a preliminary stage, hence
the analysis of environment is not taken in very elaborate form but analysis relates
to the determination of opportunities at first instance. Once the opportunities are
perceived to be available, the other steps of planning are undertaken.
b. Establishing Objectives
At this stage, an organization, key result areas may be profitability, sales, research
and development, manufacturing, and so on. Once organizational objectives are
identified, objectives of lower units and subunits can be identified in that context.
Organizational objectives give direction to the nature of all major plans, which, by
reflecting these objectives, define the objectives of major departments. These, in
turn, control the objectives of subordinate departments, and soon down the line.
Thus, there will be hierarchy of objectives in the organization.
c. Planning Premises
After determination of organizational goals, the next step is establishing planning
premises, that is, the conditions under which planning activities will be undertaken.
Planning premise is planning assumptions – the expected environmental and
internal conditions. Thus, planning premises are external and internal. External
premises include total factors in task environment like political, social,
technological, competitors’ plans and actions, government policies, etc. Internal
factors include organization’s policies, resources of various types, and the ability

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
of the organization to withstand the environmental pressure. The plans are
formulated in the light of both external and internal factors.
d. Identification of Alternatives
If an organization has set its objective to grow further, it can be achieved in several
ways like expanding in the same field of business or product line, diversifying in
other areas, joining hands with other organizations, or taking over another
organization, and so on. Within each category, there may be several alternatives.
For example, diversification itself may point but the possibility of entering into one
of the several fields.
e. Evaluation of Alternatives
Various alternatives which are considered feasible in terms of preliminary criteria”
may be taken for detailed evaluation. At this stage, an attempt is made to evaluate
how each alternative contributes to the organizational objectives in the light of its
resources and constraints.
f. Choice of Alternative
Alternative course of action is to be undertaken in future, which is not constant. A
course of action chosen keeping in view the various planning premises may not be
the best one if there is change in planning premises.
g. Formulation of Supporting
Plans, after formulating the basic plan, various plans are derived so as to support
the plan. In an organization there can be various derivative plans like planning for
buying equipment’s, buying raw materials, recruiting and training personnel etc.
These derivative plans are formulated out of the main plan and, therefore, they
support it.
h. Establishing Sequence of Activities
After formulating basic and derivative plans, the sequence of activities is
determined so that plans are put into action. Based on plans at various levels, it can
be decided who will do what and at what time. Budgets for various periods can be
prepared to give plan more concrete meaning or implementation.

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Admas University
TMA (Tutorial Marked Assignment) for the course of Introduction to Management
1.3.Recommendation
Dashen Brewery uses all planning process as we have seen above. The organization
strategic plan is defined to meet as some small sub unit under strategic plan were set.
From the strategic plans new product development planning is one subunit to produce
diversified products such as Jano Beer other drafts etc.
2. Grocery managers coordinate all the activities in a grocery. They have a number of
responsibilities that generally involve coordinating and merchandising inventory and
managing employees.
a. Visual Merchandising (Planning and organizing)
Visual merchandising and product displays are an essential part of a grocery store's sales
presentation. As Managers a lead we teams and delegate tasks to employees to set up and
change visual displays on a daily basis. Building new product displays, ensuring that stock
is full and properly presented, and keeping shelves organized and clean are common duties
in this area. Additionally, having clearly displayed pricing labels and accurate price scans
are the responsibilities of a grocery store manager's team.
b. Training and Development (Staffing)
From a supervisory perspective, grocery managers must train and develop employees in all
aspects of the operation. This includes tasks as varied as cleaning the store, stocking and
merchandising, sales and service, cash register operation, record-keeping and department-
specific tasks. The ability to train, develop and motivate staff is generally what separates a
grocery manager from regular front line employees. Hands-on grocery managers usually
do the basic operational tasks, but they also have the ability to develop a successful team.
c. Sales and Service (Directing)
As Grocery manager, we also coach and manage our teams in sales and service tasks.
Grocery managers are often hands-on in these areas, though they need to teach other
employees to perform well in these functions. Approaching customers when they enter the
department, asking questions, and making product or service recommendations are sales
duties. Answering questions and resolving customer complaints are common service
activities.

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TMA (Tutorial Marked Assignment) for the course of Introduction to Management
d. Inventory Management (Controlling)
As Grocery managers we also in charge of inventory in our departments. This duty includes
checking supply and product levels, reordering things when necessary, and taking receipt
and storing items as they come in. As Managers typically we delegate to our employees
the responsibility of refilling products from storage when levels get low on the sales floor.
Having fully stocked shelves and displays is part of the visual merchandising process as
well.

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