A Dissertation Submitted to Mzumbe University-DSM Campus College in Partial/Fulfilment of the Requirements for the Degree of Master of Human Resources (HRM) of Mzumbe University.ABSTRACT Currently, public organization is increasingly becoming of very much concern on ethical issues; several factors contribute to this very concern. Scandals involving public officials have lead to the decline of faith of society towards public organisations; therefore mechanism to control public office at all level of government is an important aspect of public organization ethics. The general objective of this study was to investigate management of ethical issue in the public organizations specific objectives to measure the current perception of ethical issues in the public organization, to examine challenges facing by management to manage ethics,to identify management style used by authority to manage ethics, to analyse factors that influence management of ethics in the public organizations In addition, the study employed a case study design with questionnaires, interviews, and observations as the main data collection methods. Research approaches of this study were both Qualitative and Quantitative in analyzing the problem. The data collected was analyzed by using computer program statistical package for social sciences (SPSS). The findings revealed Management of ethical issues is necessary in order to guide public officials in servicing the entire society. This will lead to the promotion of a positive image to the Public service and improves performance and quality services delivery to the public. Thus this study recommends that Increase of awareness about the implementation of management of ethical issues. According to the findings, it reveals that most of employees and individual people do not know the existing of management of ethical issues in the particular organizations. This may result that even though organizations encourage ethical conduct, the shop floor fails to understand what is going on. This leads for the employees to face ethical dilemma. The top management can increase ethical awareness through introduction of ethics hotline, brochures and explaining organizational ethics, orientation and training programs for new employees. Establishment of offices or departments which deal with ethics, develop clear vision and communicate with all managerial levels of organizations to improve good ethical conduct.