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MANAGEMENT PRINCIPLES APPENDIX 1 SOURCE-: FAYOL, H. (1994) General and industrial management, revised edition, copyright ©: Lake publishing company Henry Fayol -: He summarized his opinions on practise of management using 14 unique principles, they are; 01. Division of labour -: A higher degree of specialization should result in efficiency. Both managerial and technical works are amenable to specialization. 02. Authority -: Authority is needed to carry out managerial responsibilities; the formal authority to command and personnel authority deriving from intelligence and experience. 03. Discipline -: People in the organization must respect the rules that govern the organization. 04. Unity of command -: Each subordinate should report to only one supervisor. 05. Unity of direction -: Similar activities in an organization should be grouped together under the manager. 06. Subordination of individuals to the common goal -: Interest of individuals should not be placed before the goals of the overall organization. 07. Remuneration -: Compensation should be fair both to employees and to the organization. i

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Page 1: appendix.docx

MANAGEMENT PRINCIPLES

APPENDIX 1

SOURCE-: FAYOL, H. (1994) General and industrial management, revised edition,

copyright ©: Lake publishing company

Henry Fayol -: He summarized his opinions on practise of management using 14

unique principles, they are;

01. Division of labour -: A higher degree of specialization should result in

efficiency. Both managerial and technical works are amenable to

specialization.

02. Authority -: Authority is needed to carry out managerial responsibilities;

the formal authority to command and personnel authority deriving from

intelligence and experience.

03.Discipline -: People in the organization must respect the rules that govern

the organization.

04. Unity of command -: Each subordinate should report to only one

supervisor.

05. Unity of direction -: Similar activities in an organization should be grouped

together under the manager.

06. Subordination of individuals to the common goal -: Interest of individuals

should not be placed before the goals of the overall organization.

07. Remuneration -: Compensation should be fair both to employees and to the

organization.

08. Centralization -: Power and authority should be concentrated at the upper

levels of the organization as much as possible.

09. Scalar chain -: A chain of authority should extend from the top to the bottom

of the organization and should be followed at all times.

10. Order -: Human and material resources should be coordinated so that they

are in the required place at the required time.

11. Equity -: Managers should be kind and fair when dealing with subordinates.

12. Stability -: High turnover of employees should be avoided.

13. Initiative -: Subordinates should have the freedom to take initiative.

14. Esprit de corps -: Team work, team spirit and a sense of unity and

togetherness should be fostered and maintained.

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MANAGEMENT PRINCIPLES

APPENDIX 2 Source-: AYODEJI, A. (2010) Influences on Construction Project Delivery

Time. Cape town

Motivational theories

The most well-known theories which explain employees‟ motivation include:

(01) Maslow’s hierarchy of needs;

(02) Theory X and theory Y;

(03) Herzberg’s two-factor theory;

(01) Maslow’s hierarchy of needs theory

According to Robbins (2001), Maslow hypothesised that within every human being

there exists a hierarchy of five needs. These needs are:

Physiological : Hunger; thirst; shelter; sexual, and other bodily needs;

Safety : Security and protection from physical and emotional harm;

Social: Affection, sense of belonging, acceptance and friendship;

Esteem: Internal esteem factors such as self-respect, autonomy and

achievement, and external esteem factors such as status, recognition and

attention, and

Self-actualisation: The drive to become what one is capable of becoming. It

includes–growth; achieving one’s potential, and self-fulfilment.

As each of these needs becomes substantially satisfied, the

employee’s concentration on his / her job becomes high and positively affects

productivity. The hierarchy of needs theory assumes that physiological needs are the

basic need every human being needs to satisfy. According to Maslow, there are

lower and higher orders of need. The lower order of needs includes physiological

and safety needs and are satisfied within a person.

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MANAGEMENT PRINCIPLES

The higher order of needs includes social, esteem and self-

actualisation. These are satisfied externally, such as pay, union contract and tenure.

As each need is satisfied, the next need in the hierarchy becomes dominant. The

view on motivation is that although no need is ever fully satisfied or gratified, a

substantially satisfied need no longer motivates.

Therefore, when motivating someone, According to Maslow,

you need to understand what level of the hierarchy that person is currently on and

focus on satisfying those needs at or above that level.

(02) Theory X and Theory Y

Theory X and Theory Y is another important motivational theory managers should

familiarise themselves with. Douglas McGregor proposed two distinct views of

human beings: one basically negative, labelled Theory X, and the other basically

positive, labelled Theory Y. There are four assumptions made of employees‟ attitude

under the Theory X cited by Robbins (2001). They include the following:

Employees inherently dislike work and whenever possible, will attempt to

avoid it;

Since employees dislike work, they must be coerced, controlled, or threatened

with punishment to achieve goals;

Employees will avoid responsibilities and seek formal direction whenever

possible, and

Most workers place security above all other factors associated with work and

will display little ambition.

Contrary to these four negative employees‟ assumptions to work, McGregor

hypothesise four other positive assumptions called Theory Y of human beings cited

by Robbins (2001). They are:

Employees can view work as being as natural as rest or play;

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People will exercise self-direction and self-control if they are committed to the

objectives;

The average person can learn to accept, or even seek responsibility, and

The ability to make innovative decisions is not only confined to management

positions, but widely dispersed throughout the population.

The motivational implications of these theories are:

Theory X assumes that lower order needs dominate individuals,

and Theory Y assumes that higher order needs dominate individuals. McGregor

suggests that in order to motivate individuals who are driven by higher order needs,

managers should allow them to participate in decision-making, give them responsible

and challenging jobs and good group relations would maximize employees‟ job

motivation.

Additionally, he argued that if employees are treated as if they

cannot be trusted and that they need to be threatened and coerced, then they may

react in an untrustworthy way. However, when employees‟ expectations are positive,

their employers are more likely to respond in a positive way.

(03) Herzberg’s two-factor theory

Frederick Herzberg proposed the two-factor theory, also called the

Motivation Hygiene theory. This theory relates to views on job satisfaction and

dissatisfaction. Huczynski and Buchanan (2007) found separate clusters of factors

also associated with job satisfaction and dissatisfaction. Certain characteristics tend

to relate to job satisfaction and others to job dissatisfaction.

Intrinsic factors such as advancement, recognition, responsibility

and achievement relate to job satisfaction. On the other hand, extrinsic factors such

as supervision, pay, company policies and working conditions tend to lead to job

dissatisfaction. Conditions surrounding the job, such as quality of the job,

supervision, pay, company policies, physical working conditions, relations with others

and job security were characterised by Herzberg as hygiene factors.

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concept

feasibility

design stage

project plan

specifications

tender stage

contract stage

pre-construction stage

supervison

projet finsih

review

MANAGEMENT PRINCIPLES

APPENDIX 3

Source-: European Construction Council, (1996). Total project management. 2nd Ed.

Project proposal

Technical estimation

Project design

Budget estimation and

scheduling

Consulting

Completion of design

Principle contractor

Developing the schedule

Construction period

Finishing construction

Feed back to all stages

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APPENDIX 4

Source -: http://www.maga.lk/

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