ADDIS ABABA UNIVERSITY

Ethiopian Institute of Architecture Building Construction

and City Development
Construction Management Chair

Fundamentals of General and Human Resource

Management

GETANEH GEZAHEGNE
March 2012
 1. Introduction
Management: Definition
 A means of achieving political, economic,
and social objectives.
 A means of integrating resources (materials,
finance, human resources, information, etc.,)
in order to achieve organizational objectives
efficiently and effectively.
 A means of getting things done through
people in order to achieve objectives.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 2
 1. Introduction

 A process of planning, organizing, directing

and controlling of organizational activities
in order to achieve objectives.
 A process of establishing vision, mission,
values, objectives, goals, and strategies and
communicating these, and guiding and
empowering others to accomplish them.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 3
2. Management Functions

Management is a set of goal-directed,

interrelated and interdependent activities,
aimed at accomplishing organizational goals
in an efficient and effective manner.
Managers are the people looking beyond
themselves and exercising formal authority
over the activities and performance of other
people in pursuit of organizational goals.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 4
 2. Management Functions

Management sets direction

Planning
Selecting goals
and ways
Resources to attain them Performance
•Human
•Attain goals
Controlling Organizing
•Financial Monitor results Assigning responsibility •Products
•Raw Materials and make For task
correction accomplishment •Services
•Technological
•Efficiency
•Information Leading •Effectiveness
Use influence
to motivate people

Outputs
AAU, EiABC, Human Resource
Inputs Management, Lecture notes, March 2012,
Getaneh G. 5
2. Management Functions

 Planning is devising a systematic approach for

attaining the goals of the organization.
 Organizing is determining how activities and
resources are grouped and the composition of
work groups and the way in which work and
activities are to be coordinated.
 Leading is guiding, leading and overseeing of
employees to achieve organizational goals.
 Controlling is establishing performance standards
and comparing results and expectations to make
appropriate changes.
AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 6
3. Levels of Management
 Top Managers
 The relatively small group of executives who
manage the organization’s overall goals, strategy,
and operating policies.
 Middle Managers
 Largest group of managers in organizations who are
primarily responsible for implementing the policies
and plans of top managers. They supervise and
coordinate the activities of lower-level managers.
 First-Line Managers
 Managers who supervise and coordinate the
activities of operating employees.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 7
3. Levels of Management

Levels of Management

Top managers

Middle managers

First-line managers g

ns

n
s
ce

ce
in

er
tio
tio
an
et

ur

th
ra
ra
k

in

O
so

ist
ar

cF

pe

re
M

in
O

an

dm
um

A
Areas of Management
H

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 8
4. Managerial Skills

Make decision about the

overall direction and
Top Level performance of the
organization

Translate the over all direction

Middle Level and performance into specific
objectives and plans

Implement directions
Lower Level and plans through
production and delivery
of services

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 9
4. Managerial Skills
 Conceptual skills are the capacity to think in the
abstract and to see the organization as a complete
unit and to integrate and give direction to its
diverse activities so that objectives are achieved.
 Interpersonal skills are the ability to
communicate with, understand and motivate both
individuals and groups.
 Technical skills are skills necessary to
accomplish or understand the specific kind of
work being done in an organization.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 10
 Conceptual Skills
Intellectual ability to process information and make accurate decision
about the work, group, and the job

Interpersonal Skills
Management Skills
Communication , conflict resolution, leading

Technical Skills
Knowledge and ability to accomplish the specialized
activities of the work group
Top Level Middle Level Lower Level
4. Organizing
 Organization is a structured process in which people
interact and influence each other in order to achieve
objectives
 Organizing refers to the process of designing jobs
and departments and determining authority
relationships.
 Organizing:
 Permits people to work together in order to achieve goals that will
be difficult or impossible for them to achieve in their own
 Helps to achieve synergy
 Avoid duplication of resources
 Establish authority
 And facilitate communication

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 12
4.1. Organizational Structures
 According to Burns and Stalker organizational structures
fall into mechanistic and organic forms.
 Mechanistic organizations are rather rigid in that they
comprise distinctly delineated jobs, clearly defined
hierarchical structure and are driven primarily by top-
down command and control. Mechanistic organizations
are tall structures, consisting of hierarchies with several
layers of management levels.
 On the other hand, the organic structures are is relatively
flexible. They are structurally decentralized, empowering
employees at all levels of the organization to take
personal responsibility for the processes and activities in
which they are engaged.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 13
4.2. Organization Design

 Organizational design is creating an appropriate

organizational structure that will enable the
organization to accomplish its goals.
 The organization can choose from among
functional, divisional or matrix designs,
whichever is appropriate.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 14
4.2. Organization Design
Functional Organization
 In a functional organization, tasks or jobs of
similar nature are grouped together and
structured as a unit. Each unit is staffed by
functional specialists.
 Structuring the organization along the functional
lines facilitates good coordination and makes
supervision of the unit easy for managers as they
only need to be familiar with a narrow set of
skills.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 15
4.2. Organization Design
Divisional Organization
 In a divisional organization, divisional structures
are grouped according to workflow and structures
are made up of independent strategic
organizational units.
 The workflow can be broken into product lines,
geographic regions, etc.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 16
4.2. Organization Design
Matrix organization
 In matrix organization, individuals are made responsible both to their
line manager and the project manager involved.
 The matrix concept facilitates working on concurrent projects by
creating a dual chain of command, the project (program, systems, or
product) manager and the functional manager.
 Matrix structures utilize functional and divisional chains of
command simultaneously in the same part of the organization,
commonly for one-of-a-kind projects

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 17
5. Staffing and Motivation
 Staffing is critical to improve the quality and
performance of employees at all levels of an
organization. Therefore, it should be a
strategic priority for the manager.
 The manager has to not only set the vision
and strategy but also hire the people to
achieve them.
 A staffing system is defined as a model and
a process for those who recruit, screen,
interview, and hire new employees.
AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 18
5. Staffing and Motivation

 When properly designed and implemented,

it leads manager through the hiring process
from start to finish. A well designed staffing
system:
 Helps in hiring the right people.
 Creates consistency in hiring decisions throughout the
organization.
 Supports management development.
 Helps to improve benchmarking throughout the
organization.
 Reduces costs of the hiring process.
 Limits liability.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 19
5. Staffing and Motivation

Staffing Process
 The best staffing option is the one that takes
into consideration, to the greatest extent
possible, both the current and future
business needs of your organization.
 By choosing options that can, in the long
run, save time and resources, you can ensure
the availability of staff for the work that
needs to be done – for now, and for the
future.
AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 20
5. Staffing and Motivation

 The staffing process generally involves at

least four steps. These four steps are:
1. defining the job, involving the development of
a position description;
2. determining the qualifications and
competencies
3. filling the position, which involves screening
applicants and selecting an individual; and
4. training.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 21
5. Staffing and Motivation
Motivation
Motivation is the key to performance
improvement and the job of a manager is not
just to get things done through the employees
but to get things done more efficiently and
quickly because motivated employees are
more productive.
To be effective, managers need to understand
what motivates employees within the context
of the roles they perform.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 22
5. Staffing and Motivation
 Broadly, there are ten strategies to induce
employee motivation and improve their work
performance:
(a) job security,
(b) sympathetic help with personal problems,
(c) personal loyalty to employees,
(d) interesting work,
(e) good working conditions,
(f) tactful discipline,
(g) good wages,
(h) promotions and growth in the organization,
(i) feeling of being in things, and
(j) full appreciation of work done.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 23
5. Staffing and Motivation

 Five important approaches that have led to the

understanding of motivation are;

 Maslow’s Need-Hierarchy Theory,

 Herzberg’s Two-Factor Theory,
 Vroom’s Expectancy Theory,
 Adams’ Equity Theory, and
 Skinner’s Reinforcement Theory.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 24
5. Staffing and Motivation
Maslow’s need of Hierarchy
 According to Maslow,
employees have five
levels of needs:
physiological, safety,
social, ego, and self-
actualizing.
 Maslow reasoned that
lower level needs had to
be satisfied before the
next higher level need
would motivate
employees.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 25
5. Staffing and Motivation
 Physiological needs are biological needs
necessary for basic survival, such as food, water,
sleep and sex.
 Security needs are essential for a safe physical
and emotional environment.
 Belongingness needs are the desire for love and
affection.
 Esteem needs are recognition and respect from
others.
 Self actualization needs are realizing one’s
potential for personal growth and development.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 26
6. Leadership

 Leadership is defined as the process of

influencing the activities of people toward
achievement of specified organizational goals.
 The term “leadership” denotes a particular
approach or style of influencing fellow personnel
in the organization.
 Whatever the style, each leader must have some
basis for exerting influence over others.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 27
6. Leadership
 In general, there are five ways to influence others:
 Coercion: A subordinate perceives or is made to believe that
failure to comply with the instructions of a superior would
lead to punishment.
 Reward: Compliance with the instructions of a superior leads
to positive consequences. These rewards could be monetary or
non-monetary.
 Position: Power evoked by the position of a superior in the
organizational hierarchy. For example, the director of an
agency possesses more legitimate power than a volunteer.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 28
6. Leadership

 Knowledge: Use of expertise, skill, knowledge or

experience as the basis for influence. Possession of one or
more of these attributes gains the respect and compliance
of peers or subordinates.
 Admiration: A subordinate’s identification with a leader.
The leader may be admired because of one or more
personal traits, and the subordinate can be influenced
because of this admiration.
 Leadership is distinct from “managing” which means
directing the activities of others.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 29
6. Leadership
Leadership Theories
 There are several approaches to leadership and
management based on different theories.
 The style that individuals use will be, based on a
combination of their beliefs, values and
preferences, as well as the organizational culture
and norms.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 30
6. Leadership
A. Trait Theory
 The underlying assumption of Trait theory is that
people are born with inherited traits. The emphasis
is on discovering these traits, often by studying
successful leaders.
 The Trait Theorists suppose that if other people
possess the traits that are generally found in
leaders, they too could also become leaders.
 There have been many different studies of
leadership traits and not all of them converge at a
similar conclusion.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 31
 6. Leadership
B. Behavioral Theory
 Put forward by Blake
& Mouton in the early
1960s, the Managerial
Grid underlines the
need for proper balance
between concern for
people and concern for
task. Five leadership
styles are indicated in
the grid.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 32
6. Leadership
C. Participative Leadership
 Rensis Likert identifies four main styles of leadership,
in particular around decision-making and the degree to

which people are involved in the decision.

◦ Exploitive authoritative: In this style, the leader has a
low concern for people and uses such methods as threats
and other fear-based methods to achieve conformance.
Communication is almost entirely downwards and the
psychologically distant concerns of people are ignored.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 33
6. Leadership
C. Participative Leadership
◦ Benevolent authoritative: When the leader adds concern for
people to an authoritative position, a ‘benevolent dictatorship’
is formed. The leader now uses rewards to encourage
appropriate performance and listens more to concerns lower
down the organization.

◦ Consultative: The upward flow of information here is

improved to some degree, although the leader is making
genuine efforts to listen carefully to ideas. Nevertheless, major
decisions are still largely centrally made.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 34
6. Leadership
C. Participative Leadership
◦ Participative: At this level, the leader makes maximum use
of participative methods, engaging people lower down the
organization in decision-making. People across the
organization are psychologically closer together and work well
together at all levels.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 35
6. Leadership
D. Situational leadership
 The path-goal theory postulates that the most successful
leaders are those who increase subordinate motivation by
charting out and clarifying the paths towards high
performance. According to Robert House’s path-goal
theory, effective leaders:
 Motivate their followers to achieve group and
organizational goals.
 Make sure that they have control over outcomes their
subordinates desire
 Reward subordinates for performing at a high level or
achieving their work goals by giving

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 36
6. Leadership
D. Situational leadership
 Raise their subordinates’ beliefs about their
ability to achieve their work goals and Perform
at a high level.
 Take into account their subordinates’
characteristics and the type of work they do.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 37
6. Leadership
D. Path-Goal Theory
 Supportive leadership: Considering the needs of
the follower, showing concern for their welfare
and creating a friendly working environment.
 Directive leadership: Telling followers what

needs to be done and giving appropriate

guidance along the way.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 38
6. Leadership
D. Path-Goal Theory
 Participative leadership: Consulting with followers and
taking their ideas into account when making decisions
and taking particular actions. This approach is best when
the followers are expert and their advice is both needed
and they expect to be able to give it.
 Achievement-oriented leadership: Setting challenging
goals, both in work and in self-improvement (and often
together). High standards are demonstrated and expected.
The leader shows faith in the capabilities of the follower
to succeed. This approach is best when the task is
complex.

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 39
6. Leadership
E. Contingency Theory
 Fiedler identified the Least Preferred Co-Worker
(LPC) scoring for leaders by asking them first to think
of a person with whom they worked and that they
would like least to work with again, and then to score
the person on a range of scales between positive
factors (friendly, helpful, cheerful, etc.) and negative
factors (unfriendly, unhelpful, gloomy, etc.).

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 40
 THANK YOU!

AAU, EiABC, Human Resource Management, Lecture notes, March 2012, Getaneh G. 41