ADDIS ABABA UNIVERSITY

College of Business and Economics

School of Commerce

Introduction to Management
Group Assignment I

Group Members Name…………………ID No.

Bikila Ketema…………………. ………UGR/8950/13
Bayesa Yenew…………………………..UGR/2234/13
Ashenafi Degefe………………………...UGR/8994/13
Beamlak Girma………………………....UGR/1862/13

Submitted to: Ms. Hatsede

Submission Date: April 8, 2022

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 Acknowledgement
Firstly we would like to thank our Instructor Ms. Hatsede who gave us this
Assignment and make us do this outstanding work. Secondly we thank an Employee
of Awach SACCO, Jerusalem Tesfaye for providing us the information we need and
for helping us complete these Assignment Easily.

The Group Members!

NB: The word count of our Assignment is 733 which makes it fulfill the word
limit you set for us without the Cover page and Acknowledgement and at all it is
857. Thank you!

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Awach saving and credit Cooperative society
Limited!

1. Description of the Firm and why it needs Management and

Managers.
Awach SACCO Is a saving and credit cooperative established on 13/07/1999
E.C. in Arada Sub-city by Mr. Zerihun Sheleme, founder and general manager
with 41 initial members. Eventhough it wasn’t that much big Business when it
established first, today Awach is a big Cooperative which has many branch
offices and much more capital. So that to manage all this offices and capital and
to keep the daily operation of the cooperative smooth there must be Managers
and Management team in the Cooperative.

2. The Importance of Planning function for Awach SACCO

All organizations, large and small, have limited resources. The planning process
provides the information top management needs to make effective allocation of
the resources in a way that will enable the organization to reach its objectives.
When everything is planned Productivity is maximized and resources are not
wasted on projects with little chance of success . The same is true for Awach
SACCO. Since it is for profit organization Awach SACCO needs to use their
resources efficiently in a way that can make them profitable. So that to achieve
this aim they need to function by plan. For example Awach SACCO has a vision
to be a World-Class Saving and Credit Cooperative Society in 2030. In order to
achieve this Vision the Cooperative needs to function by plan. The Cooperative
has prepared many Short range, Middle range and Long range plans to achieve
this vision and working hard to achieve it. Because of all this Awach SACCO
needs planning function.

3. Organization chart of Awach SACCO and Informal

Organizations in the Cooperative

3.1 Organization chart

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 The organization chart of Awach SACCO is as shown above. There is the CEO at
the head and under the CEO there are CEO-Operation and CEO-Resource. Those
both have other Teams under them. The CEO-Operation has four teams namely:
Manager Administration Department, Member relation and Branch Management
department, Manger legal and loan recovery department and Manager Internal
Audit and Risk management department. Under the CEO-Resource there are 5
teams namely: Banking and software team, internal audit team, General
Accountant’s team, Credit office manager and Credit Analysis team. Thisis the
organization chart of Awach SACCO.

3.2 Informal Organizations in the Cooperative

There are many Informal Organizations in Awach SACCO. To mention some of
them, there is an organization of employees based on their religion in the
cooperative. There are also an Ethiopian traditional informal helping saving
institutions like Equb and Iddir in the organization. These are the Informal
organizations in Awach SACCO.

4. The difference between management and leadership and Type of

Leadership in Awach SACCO.
4.1 The difference between management and leadership
People often mistakenly equate leadership with management, but there are
fundamental differences between the two; they are separate and distinct skill sets.
Management involves a focus on executing functions, whereas leadership is
about motivating people. In fact, there is no need to have the title of manager or
have direct reports to be a leader.  Someone can demonstrate leadership skills in
any role.

4.2 Type of Leadership in Awach SACCO.

The type of leadership implemented in Awach SACCO is Democratic. The
Employees have a freedom to give an idea on any situation and also they have an
opportunity to provide a solution to a problem which will be presented to the
leaders at last and then they will decide on it. The kind of leadership the
Cooperative is using has helped the Cooperative to be profitable using an idea
and solutions that came from different employees at different level.

5. The control Mechanisms used in Awach SACCO

We have not observed control mechanisms in Awach SACCO during our
observation. But for the profitability of the Cooperative we think that the
management should implement control mechanisms in some areas of the
cooperative. To mention some of them the cooperative needs to actively control
the credit giving and collection process of the company. We have seen that there
is lack of control on the area of collection and provision of credits, which can
cause the company to suffer great loss. So that in order to prevent this problem
the company should implement Preventive control which can help the
cooperative to save itself from suffering loss because of lack of control on the
area of Credit provision and collection.