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

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.