Open Access Peer-reviewed Case Study

Managerial discretion and structures in organizations: The case of Addis Ababa, Ethiopia

Main Article Content

Belay Getachew Girma corresponding author


Due to the turbulent of business environment, complexity of managing human resource and volatility of customer needs, it is a formidable managerial task to design structures which will be suitable to meet such requirements and free to exercise course of action for managerial discretion. However, in most of the case the structure type that can be designed and implemented in many organizations are to the interest of stakeholders and owners. Research also shows that the latitudinal action of management staffs and autonomous decisions are a theme of discussion in managerial discretion. The researcher used a conceptual study of both a qualitative and quantitative approach coupled with case study for this study.  Based on the study, the research findings show that organizations that have managed by owner-manager has less experienced managerial discretion, and thereby came to conclude that managers who are free to choose course of action have led to company success than those company which managed by owner-manager.

managerial discretion, structure, organization, course of action, contemporary, latitude

Article Details

How to Cite
Girma, B. (2020). Managerial discretion and structures in organizations: The case of Addis Ababa, Ethiopia. Frontiers in Management and Business, 1(2), 45-50.


  1. Tadesse N. Major Problems Associated with Private Limited Companies in Ethiopia: the law and practice. LLM Disser-tation. Addis Ababa University. 2009.
  2. Robbins SP and Judge TA. Organizational Behavior (17th ed.), Pearson Education, Inc, USA. 2017.
  3. Finkelstein S and Boyd BK. How much does the CEO matter? The role of managerial discretion in the setting of CEO compensation. Academy of Management Journal, 1998, (41): 179-199.
  4. Cho NE. The Influence of Organizational Form on Managerial Discretion. Phd Dissertation. The University of Michigan. 2013.
  5. Phillips RA, Berman S, Cramer MJ, et al. Strategy, Stakeholders and Managerial Discretion. Sage publication, 2010, 8(2): 176-183.
  6. Hambrick DC and Mason PA. Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 1984, 9(2): 193-206.
  7. Wangrow D and Hilary S. Managerial Discretion. Oxford Bibliographies in Management. (Unpublished). 2019.
  8. Theodore W, Kasali R, Balqiah T, et al. The Role of Perceived Managerial Discretion on Strategy Implementation and Its Implications on Organizational Performance:A Conceptual Model. Advances in Economics, Business and Management Research, Atlantis Press, 2017, (36): 358-368.
  9. Hambrick DC and Finkelstein S. Managerial Discretion: A Bridge Between Polar Views of Organizations. Research in Organizational Behavior, 1987, 9: 369-406.
  10. Buchanan DA and Huczynski AA. Organizational Behavior. (9th ed.). Pearson Education Limited. Edinburgh. 2017.
  11. Redate A. Planning and Design Processes and Organizational structures in Mass Housing: The case of Addis Ababa Integrated Housing Development Program. Msc dissertation (unpublished). Addis Ababa University. 2016.
  12. Ahmady GA, Mehrpourb M and Nikooravesh A. New Challenges in Management and Organization: Organization and Leadership. 3rd International Conference. Procedia - Social and Behavioral Sciences, 2016, (230): 455-462.
  13. Murugan S. Management Principles and Practices. (2nd ed.). New Age International (P) Ltd. New Delhi. 2005.
  14. Butler B and Surace K. Call for Organizational Agility in the Emergent Sector of the Service Industry. Journal of Business Management No.10 ISSN 1691-5348.
  15. Stake RE. The art of case study research. Thousand Oaks: Sage. 1995.