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1. Unit 3
Decision making
• Definition
 Decision making is defined rational choice among alternative
 Decision making is universal
 Decision making is not isolated function of management, a
common core to other function
• Types of Decisions
They are two types of Decisions
I: Program Decisions :are decisions managers make in
response to repetitive and routine problems
Examples :-Admission applicants process and payroll vouchers
II: None program decisions :when the problem has not arisen
in exactly the same manner before .

2. Decision Making Processes
• Define the problem
• Identify the limiting factor
• Develop potential alternatives
• Analyzes(evaluate) the alternatives
• Select the best alternative
• Implement solution
• Establish control and evaluation system

3. Why managers make poor Decision
• Lack of adequate time
• Failure to defend the goals
• Using unreliable sources of information
• Fear consequences
• Focusing on symptoms rather than causes

4. Decision making conditions
• They are two decision making conditions
 Decision making under certainty: Are those which the
external condition are identified and very practical , we
reasonably sure what will happen when we make
decisions
 Decision making under risk :are those in which
probabilities can be assigned to be expected outcome of
each alternative
 Decision making under uncertainty: under this condition
the decision maker does not know what all alternatives
are , what the probabilities of each will occur or what
consequence s will likely to happen.

5. chapter 4
Organizing function
• Definition
• According to Koontz and O Donnel defined organizing
as the grouping of activities necessary to attain
objectives .
Organizing function involves
 Identification of activities required for achievement
 Grouping the activities based on similarities of jobs
 Assignment of jobs to employee Delegation of authority
 Establishing a network of coordinating relationship
• What is organization
Md forland has defined organization as group of people
contributing their effort towards the attainment of goals

6. Types of organization
They are two types of organization Formal and informal
organization.
I: Formal organization:- is the official organization
structure created by management
• Has well defined formal objectives
Characteristics of formal organization
 Properly planned
 Based on delegated authority
 Deliberately impersonal
 Organization charts are usually drawn
 Unity of command is maintained

7. Advantages of formal organization
 Definite boundaries of each workers are clearly fixed
 Overlapping of responsibilities is easily avoided
 A sense of security arises from classification of tasks
 No chance of favoritism in evaluation and placement of
employees
 Make organization on less dependent on one man
Disadvantages of Formal organization
 Lack of flexibility
 Ignores emotions
 Kills creativity
 Creates problem of coordination

8. Cont…
II: Informal organization:-is the network of personal and
social relationship that arise spontaneously as people
associate with one another in work environment .
Characteristics of Informal organization
 More human psychology needs
 Not formed to reach specific goals
 Authority is equal to all members
 More personal than role related
 Arises without external cause
 Rules and traditions of Informal organization are not
written

9. Cont…..
Advantages of informal organization
 Fills up gaps in the formal organization
 Make organization on less dependent on one man
 It is useful channel of communication
Disadvantages of informal organization
 It has nature of upsetting the morality of the worker
 It is act according to mob psychology
 Informal organization indirectly reduces the effort of
management to promote greater productivity
Organization Chart
• Organization chart: is graphic illustration of the
organization`s management hierarchy and departments and
their working relationship

10. Departmentalization
Departmentalization : is grouping of related activities into
unit.
• The major basic departmentalization include: _ Function,
product, customer and territory
 Functional Departmentalization: involves organizing
department around essential input activities
 Product departmentalization :involves organizing
department around product or services or grouping
activities by product line

11. Cont….
customer departmentalization :involves organizing
departments around needs of different types of
customer.
Territory (graphic ) departmentalization : involves
grouping of activities and responsibilities according
to territory or area
Matrix departmentalization : is departmentalization
that combines the functional and product structures

12. Authority
What is Authority ?
Authority:-is legitimate power to make decisions
Types of Authority
 Line authority: Defines the relationship between superior and
subordinates
 Staff authority: is the authority to serve an advisory capacity
 Functional authority : is the authority which permits staff manger
make decisions on specific activities performed by employees
within other departments
What is Responsibilities and Accountability ?
• Responsibilities : is the obligation to do assigned work . Has two
types individual and organization responsibilities.
• Accountability : is state of being responsible or answerable of your
actions

13. Cont….
What is power ?
Power in management can be defined as a manager`s
ability to influence others .
Types of power .
 Expert power :derived from knowledge or skills
 Referent power : a sense of identification others feel
toward you.
 Reward power : power derived from an ability to reward
others
 Coercive power: derived from fear of punishment by
others

14. Unit 5
Staffing
Staffing : is the process of identifying human resources need
,procuring the necessary employees, training ,utilization and
separation of those employees
Major objectives of staffing is enabling the organization to
attract ,maintain and utilize efficient and effective work force.
Staffing processes
 Human resource planning (man power)
 Recruitment
 Selection
 Orientation and induction
 Training and Development
 Performance appraisal

15. 1. Human Resource planning
Human resource planning :is the processes of determining
the need of the right man at the right time to the right
job.
There are four basic steps in human resource planning
 Planning for future needs
 Planning for future balance
 Planning for recruiting and selecting
 Planning for development

16. 2. Recruitment
• Recruitment: is the process of reaching out and
attempting to attract potential candidates who are
capable of filling available position in the organization.
• Sources of recruitments are :agencies and institution
Types of recruitment
 Internal Recruitment: is recruitment within organization
. Example through promotion and demotion
 External Recruitment: involves recruitment outside of
the organization

17. 3. Selection
Selection: can be defined as processes of determining
from among applicants which one fills best for the job
descriptions .
4. Orientation and induction
Is designed to provide a new employee with the
information he/she needs in order to work effectively.
Reasons for training
 .to orient new employees
 To improve performance
 To maintain current performance

18. Training and Development
Training is the processes of designed to maintain or improve
current job performance.
Development: is processes designed to develop skills
necessary for future work activities
Training Methods
 On – the job training
Involves learning methods and techniques by actually doing
a job and increasing the level of skills of employee.
 off- the job training
An education method where employees learn more about
their job or the latest advancement in their field at location
away from their work place .

19. 6.Performance Appraisal
Performance appraisal: is a processes to determine
whether an employee is performing according to what is
designed or intended .
Purposes of performance appraisal
 Increases productivity
 Helps in salary administration
 Play important role in determining an employee for
promotion
 Employee development

20. Unit 6
Directing
• Directing : is the processes integrating the people with
the organization.
• Directing is the management function aimed at setting
the member of the organization move in the direction
that will achieve its objectives .
Elements of Directing function
 Leadership skills
 Motivational skills
 Communication skills

21. Cont…..
Leadership skills
• It involves process of influencing the people
• It is the ability to use different form of power to influence
followers behavior in a number ways .
Leadership theories
 Trait theory : focuses on qualities which leader should
posses .Certain inborn or innate qualities and
characteristics make some one a leader.
 Behavioral approach (the Dimensional theories ):
focuses on the behavior of the leader and what leaders
do and how they act.

22. Cont…..
 Contingency approach :states analyzing leadership
involves not only the individual trait and behavior , but
also situation . is a theory that states Effective
leadership is contingent upon the situation at hand
Leadership Styles : describes the way leader exercise
leadership. They are three autocratic leadership style,
Democratic leadership style and laisez-faire

23. Cont….
Autocratic leadership styles: the leader takes all
decisions himself without consulting subordinates
Democratic leadership styles :the subordinates
are consulted and their feed back is taken before
making decisions .
Laissez Faire leadership style: is leadership style
where the authority is completely decentralized.
leaders let their employees to use their creativity,
resources and experiences to help them meet their
goals .

24. General review questions
1.What are leadership styles? Define each of them .
2.What is departmentalization ?
3.What is performance appraisal? List the steps of
performance appraisal.
4.What are the decision making processes? List the steps.
5.List and define the decision making conditions.
6, Define formal and informal organizations ?
7. List the characteristics of formal and informal
organizations, Advantages and disadvantages of formal
and informal organizations .