Contoh Soal Integral Partial Dan Pembahasannya Pdf To Word
May 8, 2018 - The Code of Practice for the Building and Construction Industry, revised in 1999. The Guide encourages high ethical standards in the industry in order to achieve. Contracting, partnering, strategic alliances and the like, which are consistent with. Otherwise indicated in the tender documents or contract.By and The Gower Handbook of People in Project Management is a unique and rich compilation of over 60 chapters about project management roles and the people who sponsor, manage, work in or are otherwise important to project success. With Lindsay Scott’s expert knowledge and experience in this field and Dennis Lock’s contributions and meticulous editing, the Handbook is a complete guide to the various human dimensions involved in projects. It covers everyone involved in projects - the stakeholders - including those funding or sponsoring the project and those involved in its delivery; the people-issues that are specific to different sectors of the organization (public, private and third sector); the organization of people, both real and virtual; the different roles associated with projects; the relationship between people and the project environment; the human behaviours and skills associated with working collaboratively; and the HR issues including all aspects of how to manage talent for projects.
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ISBN 978-1-4094-3785-7 © Gower 2018. Moylan Project management discipline must include consideration of ethical considerations in satisfying the needs of all project stakeholders. The policies of leaders are only as good as their actions.Astute project managers serve as role models through their own ethical behaviour and personal involvement with their team members in the processes of planning, execution and control. As role models in setting ethical behaviour, project managers can reinforce the organisation’s values and expectations whilst building leadership, commitment and enthusiasm throughout the organisation. Project-driven organisations must articulate a general strategy for ethical leadership and a series of implementation tactics for the project manager to follow in creating solutions where everyone wins. This chapter considers three principal topics. An understanding of the ethical basis for project-driven organisations.suggested methods for implementing ethics into professional project management.
A model for assessing ethical project leadership. In addition, a review of professional codes of ethics for project leaders and a case study on the application of management ethics in construction projects are included. Self-Interest and Good Ethics The assertion that ‘self-interest and good ethics generally coincide’ has grounding in both various ethical theories and refutation by others. Ethical theories that support this premise include common morality theories, cultural relativism, rights theories, virtue ethics and possibly, Kantian ethics and the feminist theories and ethics of care law. These theories are altruistic in nature.Asserting a selfless concern to put others’ interests over one’s own, and subjugating one’s own needs and interests to those of the group is common morality theory. Cultural relativism and rights theories support the axiom.
Focusing on individual rights in concert with those of the larger group or culture, prudence dictates one’s human dignity and personal rights secured through proper moral behaviour. The virtue ethics theory based on the virtues of one’s personal character supports the positive ethics portion if the individual desires to be virtuous as to trustworthy, loyal and conscientious (ibid.). Ethical theories that refute this axiom of ‘self-interest as good ethics’ include the theories of ethical and psychological egoism and utilitarian theories. The selfishness of egotism, in both ethical conduct and psychological motivations, violates the self-interest in good ethics since the reactions and feelings of others are important. The utilitarian theory premise that considers the consequences of the actions done for the greatest good for the majority confounds the self-interest in ethical actions that may adversely affect a minority faction.Prudence shows the axiom as plausible based on both virtue ethics and common morality theory. Asserting a selfless concern to put others’ interests over one’s own needs and subjugating one’s interests to those of the group is a viable premise. In addition, cultural relativism and rights theories both support this axiom, as it focuses on individual rights in concert with those of the larger group or culture.
Human dignity and personal rights are endurable through the proper mix of moral behaviour and personal character. The positive individual desire to be virtuous as to trustworthiness, loyalty and conscientiousness is a sustainable human imperative. Moreover, a self-imposed obligation (that is: self-interest) to hold one to the highest ethical levels (good ethics) is a flexible standard.Common morality theories hold that strong moral demands may override when circumstances dictate prudent action to the contrary (ibid.).
Infusing Ethics into Professional Project Management Extended enterprises turn to project management as an effective approach to deliver successfully that would otherwise overextend the capabilities and capacities of their functional organisation. In turn, a new set of conflicts, intergroup relations and ethical considerations specific to temporary project teams arise that differ from the stable organisation. Project-performing organisations making a substantial commitment of time and resources in order to achieve the appropriate level of maturity in project management must define the organisational needs for ethical leadership along with the profit and performance criteria. To implement project management successfully the enterprise must treat ethical project management as a priority. This paradigm for ethical project leadership includes infusing ethics into the professional discipline, team building, proper executive sponsorship and stakeholder analysis. Project management as a profession has received considerable recent attention.Management guru Tom identifies ‘projects is life’ as one of the five essential attributes of the new American professional, suggesting that organisations transform everything into scintillating projects. Although Peters sees nirvana in the profession of project management as the career choice of the new millennium, the current research does not totally support this hypothesis.
Project management struggles in developing a true sense of professional community when the critical organisational dynamics that are essential to develop the behaviours and cultural aspects of a true profession are lacking. The profession of project management has established a recognised body of knowledge, standards, and certification and education programmes. However, project management has not established itself as a professional community in which its members share a sense of identity, the bond of a common culture, and an ethical rigour. Many consider project management as an accidental profession, with the common occurrence of the project manager who possesses little formal authority and functions outside the traditional organisation hierarchy.A common occurrence for the novice project manager is finding he or she has inadequate training for the task, since most management development deals with preparing one for the organisation’s functional management and operational staff positions. The professionals who populate the project organisation will influence the organisational behaviour of the particular business unit and the supporting project management office. To gain value from the discipline of project management, the business enterprise must organise itself for projects executed by teams (; and ).
The social group of project professionals built around ‘what one does’, as opposed to the ‘where one sits’ found in the traditional hierarchical-based functional organisation, must include a model for professional ethical behaviour. Building strong project teams with the proper ethical focus is essential for managing projects within an organisation.Ethics in Team Building, one of the gurus of project management, coined the term ‘teamocracy’ to describe the use of teams in organisations. The team (as the building block of the networked enterprise) displaces the traditional bureaucratic hierarchy of successive levels of pyramided authority. In a teamocracy, the teams form the lattice network of cross-functional/cross-organisational projects that integrate the activities of the work groups and reflect their empowerment, dedication, trust, loyalty and commitment. Teams are an effective approach to both meeting the needs of organisation in terms of satisfying operational needs and expectations, whilst successfully completing the project scope per cost budget, performance and on time.Moreover, membership on teams is a prime source of improved personal job satisfaction and morale (ibid.). From an enterprise perspective, teams are effective at eliminating redundant layers of management and gaining productive efficiencies by getting more done with fewer resources in a shorter length of time.
Differences exist in the dynamic/project versus stable/operational environment, geographically dispersed project teams. Their use of new electronic technologies to manage themselves still values trust as the prime rubric for evaluating their leaders. The global competitiveness of international firms, rooted in project teams, requires high trust among all participants, continual and open sharing of information, and clear organisation structures on member roles and responsibilities.It is essential for teams to receive the proper direction and support from their management in order for them to succeed. Unfortunately, a common problem of project teams is the lack of support they receive from their executives (a topic mentioned in ).
The ‘selling’ of project management to them by the responsible project managers is a very big issue in gaining the necessary support for the project teams. Executive Support for Ethical Project Management Gaining cooperation on projects requires both project managers and senior executives to agree on the value of project management.
However, in the ‘selling’ of project management to senior level executives by project managers there is a fundamental difference between the ways project managers promote and think about project management techniques and the executives’ needs and thinking. The project managers tend to focus on the tactical benefits of project management, for example, effective tools and techniques, scheduling and delivery methods and tested methodologies.Further, project managers also consider project management as an essential way of doing their work and a life philosophy.
Conversely, executives generally think more strategically, by considering the value to the organisation and the benefits of a new initiative to their own personal growth. The inevitable disconnect between the executives and the project managers seeking their support is due to their convergent reasoning styles and a misalignment between the ‘buyers and sellers’ concerning the values of the discipline of project management.
Herein lies the dilemma of defining what ethical project management is.A severe crisis in the organisation normally triggers the acquisition of project management as the organisational solution. Overcoming the value credibility gap between the practitioners and their executives as to their understanding of project management is rarely a strategic decision in an organisation. Rather, project managers appear ‘accidentally’, in response to a crisis with no time or resources to consider the ethical basis of their actions. With such lacklustre support from executives, communicating both the urgency and ethical basis of the team’s mission is imperative.Although gaining support for project management is important, the major ethical issues that occur in the workplace and on projects centre on the due process of employee concerns versus the legitimate company expectations of employee due diligence. Such ethical issues include the rights of employees in cases of ‘employment at will’ situations, the rights of personal privacy versus the employer’s right to know, and the duty of loyalty and trust. The privacy issues include the employer’s rights to subject candidates and employees to drug testing, genetic screening, electronic performance monitoring (EPM) and restrictions on fraternisation with other employees. Concerning the duty of the employee to exhibit loyalty and trust to their employer touches on the conflict of performing illegal activities or other work duties, which the employee considers wrong and the possible ‘whistle blowing’ on such activities.The recurring ethical theme that seems to run through these situations of employee rights versus employer responsibilities is the need for respect by both parties of the other.
A ‘David versus Goliath’ scenario exists with the individual contending with the employer for legitimate and proper treatment, including respect, fair remuneration and the rights of communal association. This notion conspires with the corporate desire for a workforce that is dedicated, focused, dutiful and content with being subjugated, and employees willing to be subjected to management’s whims for increased, control and manacle power. As noted by, ‘Despite the codes of ethics, the ethics programs and the special departments – corporations don’t make the ultimate decisions about ethics.Ethical choices are made by individuals’. The challenge is for executives, management and employees to act ethically as individuals, treating each other with respect, dignity and empathy for their respective positions. Ethical Analysis of Stakeholders’ Needs Stakeholder analysis requires understanding of the broader strategic goals of the enterprise, as developed in a project portfolio of all of the enterprise’s programmes.
Project portfolio management requires a highly networked organisation with well-defined decision-making structures and transparent communications channels for partner networking that focus on individual projects as solutions to business opportunities. Moreover, this stakeholder-focused approach requires companies to manage the interaction across boundaries between the portfolio and its projects, between single projects, between different portfolios, and between different corporations in business networks.
To manage properly the project portfolio requires the project management office to address stakeholder needs and expectations, gain a proper understanding with executives on the value of project management, and properly develop and analyse the project portfolio. The complexity of gaining the cooperation of all stakeholders is inherent to managing the project portfolio.The project stakeholders form an interrelated set of obligations and responsibilities to the corporation, which produce a mutual set of tensions, interrelated responsibilities and potential conflicts between each group. By reframing the competing forces, each project stakeholder assumes a duty to each other stakeholder and to themselves to pursue long-term goals, whilst concurrently conducting themselves in an ethical manner that promotes the goodwill of the other participants. Shareholders, desiring maximisation of profits, have a shared stewardship to provide capital or other valued input to the organisation.
In return for a proportioned ownership position in the company, shareholders receive weighted voting rights, the fair distribution of profits and an ease of liquidating their proceeds. Project managers are obligated to conduct project activities appropriately and ethically to ensure the best business decisions abide by pre-established ground rules. The project execution ground rules are set according to the principles of entry and exit, governance, externalities, contracting costs, agency and immorality. The members of the project team require adequate security and remuneration in return for working diligently and showing loyalty.The contract between management and the employees expects sound work ethics and working a full day, doing their best to produce a product or sell a service. Suppliers are obligated to furnish quality raw materials at a price level that allows the corporation to operate profitability in creating quality products. In return, the client firm is loyal to its suppliers and pays fair amounts for the material furnished, whilst considering the cost of materials in a constant flux based on how well the products are selling.Considering a broader context of project stakeholder, the local communities have the ability to impose laws, taxes, penalties or a cooperative withdrawal of support from the corporation that makes business unprofitable or impossible. The corporation is expected to operate in a socially responsible manner and donate money to community charities.
The citizens of the community have an obligation to shop at the corporations that contribute to the good of the community. Customers exchange resources for the firm’s products and product benefits as the firm provides high quality and safe products, friendly to the environment. With all of these considerations, the success of the corporation and the project depends on how well the stakeholder groups work together for the common good. Implementing project management requires infusing professional ethics as an essential part of the corporate and project culture.An of the requisite ethical conscientiousness and social responsibility of the project managers is the result of the model, discussed in the next section. A Model for Ethical Project Leadership The proposed paradigm for ethical project leadership uses the facilitating idealist model of an effective steward leader. This leadership paradigm requires the project manager to perform a ‘technical audit’ of their conformance to the values of their organisation, followed by a stakeholder-based ‘perceptual audit’ on critical decisions.
The model assumes that an effective corporate and professional culture for project management success requires the project manager to take a proactive, preventive approach to improvement, rather than following a reactive, punitive routine to addressing project issues and solving problems. The following sections discuss each topic in detail. Self-Audit of Ethical Conformance After the first task of defining reality, the role of the leader is to lead by example. Since project managers are adept at comparing actual results to requirements, the project manager should assess their own conformance to their organisation’s values and ethics.This project leadership ‘technical audit’ would first review and set the limits of each guiding principle or organisation value.
Using recent decisions as test specimens, the project manager performs a self-assessment of their decisions to determine their level of conforming to the stated values. This self-audit focuses on the circumstances surrounding the decision-making process. The process analyses each decision to determine if it meets the ‘letter of the law’ and ‘satisfying the spirit’ of the value. Besides conformance, the project manager determines if a different decision would have conformed better.An analytical method to assess the relative ethical position of the project manager’s decisions considers their concerns for people and organisations.
The scale covers positions from ‘ethically detrimental’ on one end to ‘ethically virtuous’ on the other with a neutral position in the centre This self-audit of ethical conformance will yield insights on patterns, root causes and processes that should change to ensure future compliance. The next step is to do a stakeholder-based ‘perceptual audit’ on the project manager’s ethical behaviour.Stakeholder Perceptual Audit In the next step of the model assessment, the project manager interviews a cross section of her or his key stakeholders to determine their perception of the project manager’s ethical decision-making capability. This stakeholder-based ‘perceptual audit’ would examine the same critical decisions made by the project manager to determine how others view the project manager’s conformance to the corporate values. Regardless of the project manager’s self-assessment score, the perceptions of others will be most instructive in determining the project manager’s level of ethical behaviour and compliance to the values of the organisation. Analysis of the stakeholder perceptual audit guides the project manager on the necessary improvements to their decision-making and leadership skills.
Since a project manager’s policies are only as good as their actions, leading by ethical example is the most profound manner of implementing ethical project leadership in the organisation.Instead of a heroic style, an engaging management showing concern, involvement and endearment with one’s followers is the appropriate leadership model. A method of appraising the project manager’s engaging style could use a grid of ‘values consistency’ versus ‘stakeholder responsiveness’ as the grading rubric.Professional Codes of Ethics for Project Leaders A normative organisation establishes a set of rules (the ‘norms’) for its members to follow. These norms set the requirements for joining the group (initiation) and for staying a member in good standing (membership).
Breaking the rules will risk reprimand, punishment, banishment or expulsion from the group depending on the severity of the infraction.Toe the line (comply with the norms) and one gets to stay a member (involvement). Examples of normative organisations include professional societies, bowling leagues, the military, university fraternities and high schools run by the Jesuits. These organisations’ membership rules (codes of ethical conduct) might seem arcane and/or absurd to the outsider; the better to adapt the member to the group.Two Ends of the Professional Society Spectrum In the US, professional societies span the gamut from the American Medical Association to the American Management Association. The American Medical Association comprises an esteemed professional society of medical physicians focused on establishing the norms for the highest level of patient care and healing. Doctors of medicine, who have taken the Hippocratic oath as they entered their profession, are held in the highest esteem by society for whom their patients owe their health, well-being and possibly their lives.
Not to say that some physicians may have pursued the profession of medicine for the fortune and fame, society is indebted to them for their ethical conduct and professionalism.On the other hand, members of the American Management Association enjoy discounts on professional development courses and reference books; can attend informative presentations and fun parties; have access to networking opportunities with other members; and feel connected to a bigger group than just the duller individuals they contend with at their boring jobs and daily life routines. Some management professionals may pursue their work with totally altruistic motives to improve society and the betterment of mankind, but business is about making money.Professional Societies for Ethical Project Management Is project management ethics an oxymoron, like jumbo shrimp, airline cuisine, civil servant, or moral majority? Two global professional societies focused on promoting the profession of project management may beg to differ. These professional organisations are the Project Management Institute (PMI) and the International Project Management Association (IPMA). Both of these organisations have deliberated upon the appropriate code of ethics and professional conduct for project management professionals. Further information on the codes of ethics for project managers of PMI and IPMA can be found respectively at the following. The Importance of the Codes of Ethics As already noted, project management struggles in developing a true sense of professional community.
A ‘Code of Ethics and Professional Conduct’ is one of the critical organisational dynamics that is essential to develop the behaviours and cultural aspects of a true profession, which had been lacking.The profession of project management has established a recognised body of knowledge, standards, and certification and education programmes. Although it might be considered restrictive and outmoded, an established code of ethics is essential for project managers to establish their work as professional.Internally within their professional community, the members (project managers) who adhere faithfully to their code of ethics will begin to share a sense of identity and the bond of a common culture. The project manager who complies openly with a code of ethics will help dispel the characterisation of project management as the ‘accidental’ profession. Likewise, the project manager who possesses little formal authority and functions outside the traditional organisation hierarchy will begin to earn rightful professional respect and esteem. Organisations which consider project management as a profession will see it in their self-interest to develop professionally their novice project managers and reward their progression with life-long learning and professional development opportunities. The social group processes of cognition, comparison and motivation as commonly applied within the operational setting will begin to blend with the project team setting. For example, conflict within the project team will be recognised as progress.Ethics in Construction Projects The construction of a facility involves a series of projects, from the initial conception, development of the design to meet the owner’s intentions, procurement of materials and services, all stages of construction, commissioning, handover and then operation and maintenance.
A future phase (project) will be final decommissioning of the facility. This series of integrated projects, which make up the entire construction facility programme, are both ‘brain-based’ (mental effort) and ‘brawn-based’ (physical effort) involving multiple stakeholders over relatively short time periods.
Opportunity for ethical misconduct is endemic throughout the construction process. The construction industry is keen on developing and maintaining a high degree of professional ethics in the variety of business dealings between all the players involved (owners, architects, engineers, constructors and so on).
This includes (but is not limited to) bidding and award scenarios, in meeting contractual obligations and in resolving disputes ( and ) – for which values-based leadership (VBL) concepts would clarify issues for the stakeholders. Comprehensive research studies by and on the applicability of VBL concepts, values and skills on different types of construction projects showed the values to all stakeholders of construction professionals conducting themselves ethically.In addition, this interest in improved professionalism in construction (a VBL concept) extends to developing ethics education in the construction education programmes at the college level ( and ). Looking internationally, a philosophical study by on the European construction market concluded positively the practicality and suitability of a separate, multidisciplinary ethic in the field of construction law.This study considered professional ethics to have an increasingly important role in the execution of the construction process. A proper consideration of ethics in construction serves both the public interest and the professionals involved, and is essential to solving many of the key problems plaguing the construction industry. Industry trade groups in the US, such as the Associated General Contractors (AGC), and professional associations, like the American Institute of Constructors (AIC), actively participate in ethics in construction programmes for their memberships. These construction ethics programmes mirror the tenets of VBL, including stressing the need for shared business and ethical values, integrity in the bidding and contracting processes, common understanding of industry professional practice, partnering, balancing of risks with financial rewards and the building of long-term trusting relationships.
Moreover, an ethical leadership approach melds with the ‘integrity chain’ of that links integrity in the process, trust amongst the members, repeat business based on satisfactory performance and quality, and a profitable relationship for each the parties. Although technical knowledge and management expertise is important, it is essential for construction managers to exhibit the innate ability to interact effectively with people to execute the project. These values-based ethical leadership traits of trust, integrity and people-orientation are critical to success in the construction industry.Ethical missteps on construction projects are most frequent in the bidding cycle. Some Hurdles for Ethics in Construction Bidding Anyone who is familiar with the construction industry’s bidding process knows that ‘Who you know’ is often more important than ‘What you know’ for a bidder, regardless of the estimated proposal costs.Reality is that construction is a highly fractionated industry of speciality companies – people who work on temporary projects and deliver services based on short-term contracts and brief partnerships. Owner, architect, engineer and contractor each represent separate interests with diverse professional values, particularly during the bidding process. Project participants often have goals that are at variance to those of the project stakeholders.
A clear understanding of the motives of project participants is necessary to establish an appropriate business ethic and professional conduct in construction bidding.The following passages reflect the views of two well-known business gurus, Friedman and Freeman. Sole Goal: Stockholders’ Profits or Wider Stakeholders’ Interests?Holds the purist’s view supporting the ‘stockholders as owners’ argument: the primary purpose of a public corporation is to maximise the wealth for the sole rightful owners of the firm – the stockholders. Here, in short, increasing profits for the owner-stockholders is the only social responsibility of business. Anything less than this is ‘unadulterated socialism’ of anarchistic nihilists bent on destroying the free-enterprise system, democracy and western civilisation. Friedman’s extreme argument clashes with the purpose of the corporation from the stakeholders’ viewpoint and from, who believed that the ethical model for a corporation must include not only the needs of the owners as financiers and stockholders, but also the goals of management, company employees, suppliers, customers and the local community.
The inclusion of the wider body of stakeholders in the corporation’s obligations and responsibilities creates more potential conflicts and tensions among project participants. In this tension, or competition between forces, all stakeholders assume a duty to one another and to themselves to pursue long-term goals – not just stockholder profit – whilst at the same time acting in an ethical professional manner that promotes the goodwill of all the participants.
Friedman and Freeman’s economic views are used as a grading rubric in assessing the ethics of construction delivery methods, especially competitive bidding schemes, the effects on the parties involved and ways to improve the long-term results.On the one hand, we have Friedman upholding profit for owner/stockholder as the main objective, by demanding the lowest price and shortest project schedule. After all, it is the stockholders’ capital that finances construction projects. On the other hand (Freedman’s), a competitive bidding and trading arena for construction services ensures the needs of all the corporation’s shareholders whilst maximising the return on investment and long-term goals. A successful contractor is someone who can build a quality facility according to the design within budget and on time; contractors who cannot compete under these terms will fail. Competitive bidding guarantees a fair profit for the risks assumed by the selected general contractor, in comparison to proposals submitted by competing bidders, and the owner is assured of paying a competitive price for the project.To Friedman this process is an excellent example of the capitalist system at work: benefiting all concerned, especially the corporate stockholders. Competitive Bidding: Maximising Return in Shared Profit For Freeman, the bidding process requires a series of specific safeguards to maintain ethical integrity in construction bidding.
Friedman states that, for any request for proposal, the market for construction contracting must be truly competitive: open to all interested and responsible bidders who possess the requisite technical expertise, financial capacity and management skills. Interested bidders must furthermore be responsive to the terms and conditions of the tender, cooperate during all phases of a project with the owner representatives, design architects and engineers.In this way, the owner obtains a quality facility, built on schedule and within budget.
Each project participant has important responsibilities in this project delivery process: owners must commit the necessary time and resources to project definition and actualisation; the engineer/architect must produce an efficient design that meets the owner’s mandate and is constructible using conventional technologies; and the contractor/supplier must be responsible, competent and cooperate fully with the owner representatives. Freeman’s premise is that this harmonious working relationship among facility owner, engineer, architect and contractor further benefits the eventual facility tenants – building occupants who enjoy a suitable environ in bringing goods and services to the marketplace.In this scenario, a well-designed and built facility not only allows the corporation to perform its mission to generate revenue and eventually shared profits with the stockholders, but also benefits the local community. Bid Shopping, Rigging and Reverse-auction Bidding Deemed unethical by both Friedman and Freeman are the practices of bid shopping and rigging, albeit for different reasons.By unfairly sharing information relevant to a contractor’s bid details with unauthorised parties, a bid-shopping scheme essentially destroys the integrity of the competitive bidding system. True competitive bidding requires submittal of a lump sum bid price for a fixed design, with the contractor’s ‘methods and means’ remaining strictly confidential. Sharing of a contractor’s proposal, the contractor’s intellectual property, without just compensation for proposal efforts, is destabilising to the free marketplace and ethical business practice. Bid rigging is also equally repulsive to both Friedman and Freeman.
Friedman claims that bid-shopping practice (wherein the contractor is not fairly compensated for its proposal efforts) adversely affects the bidding company’s owners and stockholders. Non-payment for services rendered is heresy to sound economic theory.At the same time, bid shopping unfairly rewards the owner whilst unjustly compensating one bidder over another – without paying for the development of shared proposal data. Bid sharing undermines professional integrity and breaks the bonds of trust among the various stakeholders in the execution of the work. Likewise, bid-rigging schemes conducted by an unscrupulous group of conspiring contractors redirect funds that should rightly be paid to stockholders as dividends by artificially inflating construction costs.In the Freeman thesis, bid-rigging schemes are unethical practices that unfairly favour the supplier stakeholder and harm the facility owner stakeholder.
Like bid shopping, bid rigging unfairly rewards one segment of the project stakeholder triad, in this case the contractor/supplier (who receives inflated profits for services) and unjustly penalises the owner with unnecessarily high project costs. Again, the integrity of the system is undermined and the bonds of trust between the stakeholders are broken. Reverse-auction bidding is considered very detrimental to the general contractors, speciality-trade contractors, and the competitive bidding arena.
Contractors are forced into this scenario via the Internet; it begins with a target price set by the owner, after which bidding contractors post proposals to a central website. Impelling contractors to perform bidding online without just compensation for direct costs, overhead and profit potential, is condemned as unethical and poor business conduct by Friedman.Freeman describes reverse bidding in more simple terms: the owner benefits at the construction contractor community’s (supplier stakeholder’s) expense. In one instance, an industry group representing mechanical contractors (who were being forced into a reverse-auction bidding situation by a national merchandise retailer) effectively challenged this process. After repeated requests by the mechanical contractors association asking that the owner’s contracting officer cease reverse-auction request for bids, the association petitioned the merchandiser’s corporate board as ‘concerned stockholders’ representing the substantial pension funds of the mechanical tradesmen. The merchandise retailer owner quickly relented.
This situation involved the effective use of both economists’ rationales: establishing stockholders as the legitimate owners of the corporation as well as insisting on a balanced scorecard for all stakeholders involved, including stockholders, management and suppliers. Rewarding Ethical Conduct in the Construction Industry One way to reward ethical conduct in the construction industry is to establish an ‘integrity chain’ as the true path to long-term profitability (.The first link in the chain is a competitive bidding system based on integrity in a fair process respecting the rights of each stakeholder, including the facility owner; engineer; architect; constructors; subcontractors and material suppliers. Project stakeholders cannot resort to ‘robbing Peter to pay Paul’ tactics. The system’s integrity builds a foundation of trust among all project team members and the external community. A sound construction industry for the long term can only be based on trust in business relationships and on ethically executed project management. Trusting, ethical relationships between all project stakeholders reward successful team members for projects built on time, within budget, according to design specifications and guarantees repeat business.Repeat business in the construction industry is the key to legitimate profitability and satisfying the needs of all stakeholders.
Conclusions The ethical base for project-driven organisations rests on the themes of enlightened self-interest and servant-style leadership to satisfy the needs of all stakeholders. Implementing solid project management in an organisation requires infusing ethics into the project manager toolkit of professionalism, team building, executive support and stakeholder needs analysis.The facilitating idealist model of an effective steward leader requires the project manager to perform a ‘technical audit’ of conformance to organisational values, followed by a stakeholder-based ‘perceptual audit’ on critical decisions. The model assumes that an effective corporate and professional culture for project management success requires the project manager to take a proactive, preventive approach to improvement, rather than following a reactive, punitive routine to addressing project issues and solving problems.The ethical project manager values substance and serving the stakeholders over self-serving aggrandisement.The forms below are available to all HBA active members (that is, builders, developers and remodelers) free of charge. Please contact Dan Dressman at with questions.Contract Documents. Warranty Documents. Building Code Documents. .
C onsumer Sales Practices Act & Home Construction Services Suppliers Act Documents. HBA Governing Documents. Realtor/Builder Guidelines The Realtor/Builder Guidelines now apply universally to all builder members who do not explicitly opt-out in writing. To opt-out, e-mail Dan Dressman or write to: Home Builders Association of Greater Cincinnati, 11260 Chester Road, Suite 800, Cincinnati, Ohio 45246.Other Useful Documents.labsrasser.
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