As the world moves towards a globalized service dominant economy system with experiencingrnrapid growth, many nations shift from a manufacturing â€“based economy to service economy, thernmajor factor for this change is the invention of computer technology and advancement inrntelecommunication. This research was conducted with the objective of assessing managementrndevelopment practices and problems in Ethio telecom, It is an exploration of the issuesrnconcerning management development practices in terms of how development needs werernassessed, and how the program is evaluated and the strategic position and roles of managementrndevelopment and giving suggestions to improve the effectiveness these activities. The researchrnhas adopted a qualitative and quantities approach. The data were gathered through arncombination of structured interviews with 5 chief officers and the rest 218 a survey questionnairernwere distributed for mangers and officers additionally the company policy and procedure werernused as a secondary source of data. The study reveals that, there were absences of systematicrnmanagement training needs assessment and of effective procedures for evaluation. Regularly therncompany provided training for managers whenever the mangers up graded to fill new position.rnManagement development program faces many problems: lack of long term plan for developingrnmanagers, poor quality management training program, lack of private training centres,rninaccurate development need assessment, difficulty to evaluate training and development outrncomes. Then I recommended that, management development program needs to be a systematicrnfunction, linked and derived from the overall organizational strategies, plans and policies, ratherrnthan being piecemeal, standalone activities, designed to react to the current organizationalrnconditions In terms of management development need assessment, this process needs to bernsystematic; training needs should be assessed based on objective systematic techniques ratherrnthan being subjective to the mangers direct viewpoints and personal aspects and it should be forrnall managerial level by emphasizing the need to be on performance appraisal records and jobrndescriptions. When assessing training needs, the analyses should include individual,rnorganizational and job training needs rather than only individuals' needs.