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;
1.

Division of labour -:
efficiency.

2.

Both

specialization.
Authority -:

A higher degree of specialization should result in

managerial

and

technical

works

are

amenable

to

Authority is needed to carry out managerial responsibilities;

the formal authority to command and personnel authority deriving from

intelligence and experience.
3. Discipline -: People in the organization must respect the rules that govern
the organization.
4. Unity of command -:
5.

Each subordinate should report to only one

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

together under the manager.

6. Subordination of individuals to the common goal -: Interest of individuals
should not be placed before the goals of the overall organization.
7. Remuneration -: Compensation should be fair both to employees and to the
8.

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

levels of the organization as much as possible.

9. 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
11.
12.
13.
14.

are in the required place at the required time.

Equity -: Managers should be kind and fair when dealing with subordinates.
Stability -: High turnover of employees should be avoided.
Initiative -: Subordinates should have the freedom to take initiative.
Esprit de corps -: Team work, team spirit and a sense of unity and
togetherness should be fostered and maintained.

APPENDIX 2

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

Time. Cape town
1

MANAGEMENT PRINCIPLES
Motivational theories
The most well-known theories which explain employees motivation include:
(1) Maslows hierarchy of needs;
(2) Theory X and theory Y;
(3) Herzbergs two-factor theory;
(1) Maslows 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
includesgrowth; achieving ones potential, and self-fulfilment.

As each of these needs becomes substantially satisfied, the

employees 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.

The higher order of needs includes social, esteem and selfactualisation. 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.

MANAGEMENT PRINCIPLES
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.

(2) 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;

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:

3

MANAGEMENT PRINCIPLES
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

concept

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

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

feasibility
(3) Herzbergs two-factor theory

design
stage
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

project plan

also associated with job satisfaction and dissatisfaction. Certain characteristics tend
to relate to job satisfaction and others to job dissatisfaction.

specifications
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

tender stage

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.

contract stage

APPENDIX 3
pre-construction
Source-: European Construction
Council, (1996). Total project management. 2nd Ed.
stage
Project proposal

supervison
Technical estimation

projet finsih
4

review

MANAGEMENT PRINCIPLES

Project design

Budget estimation and

scheduling
Consulting

Completion of design

Principle contractor

Developing the schedule

Construction period

Finishing construction

Feed back to all stages

APPENDIX 4
Source -: http://www.maga.lk/