Facilities Management: Strategy and Practice - Coursework Example

 FACILITIES MANAGEMENT: STRATEGY AND PRACTICE Introduction Developing successful organizational strategies requires a candid and comprehensive analysis that fundamentally seeks to compare its present state to the management’s anticipative or required state and defining the differences. Conducting such an analysis for FCA (Facilitated Corporate Activities) will help in uncovering what needs to be done for the favorite change to take place. This report presents an analysis of FCA’s current situation in an effort to recommend the best strategies that can help it regain its lost glory. Careful management of personnel, finances, and physical property is in the heart of the revitalization. Analysis of FCA’s situation and an integration of pertinent literature and management models and appropriate recommendations As an established provider of residential adventure learning in the United Kingdom, FCA is committed to providing engaging, memorable, and powerful training programmes that help learners to improve performance. As an experiential organization, FCA still experiences a financial crisis due to a reduced enrollment partly attributable to the restrictions placed by UKBA on students’ visas and the prolonged global economic recession. The number of oversees students enrolling it FCA’s programmes has halved. To contain these adversarial happenings, FCA needs to reconsider its past strategies. According to Susan and Jane (2007), the short-term efficiency and long-term persistence of any business is determined by the actions that the management takes in response to the changes in its external environment. Similarly, the efficiency and capability of the organization’s decision-makers to learn the external environment and implement responses significantly determines the organization’s ability to handle the circumstances (Susan & Jane, 2007). As UKBA has constrained the international students’ ability to acquire visas, FCA should potentially have managed the new unprecedented occurrence by diversifying its local market. Similarly, lobbying with the UKBA and the UK government to acquire better trading terms would potentially have helped the organization. Apparently, FCA should lobby with respective groups to ensure that the decisions of the government do not negatively affect the obtainability of its objectives. This coupled with an incessant diversification of the local market will help the organization to reestablish itself. Apparently, there is an established link between organizational actions and individual cognitions. Consequently, Susan and Jane (2007) assert that top decision-makers are continuously barraged by a stream of ill-defined trends and events. Considering the rapidly changing corporate environment, it is requisite to train the managerial team as most events and trends often present strategic issues (Susan & Jane, 2007). Considering this, and the ostensible fact that change is irresistible, FCA’s decision to concentrate on training of its internal management team can be perceived to been adept and a step towards the resolution of its predicament. Having a highly experienced and updated training team is fundamental to an organization’s success. Such a team aids the organization to attain its objectives as their ability to handle challenges and obstacles in the managerial sector is often enhanced (Poynter, 2000). Such a move will be a plus in helping FCA to contain the regulated industry in which it operates in. Additionally, FCA’s current 4 sites, 3 educational sites owned by the organization and an extra leased site used for administrative purposes, apparently, lack curb appeal. According to Encon and Albert (2004), curb appeal is an important element that investors look for in a property. In this case, site A is a modern building, but apparently lacks curb appeal as it is overly cramped with a floor area of 750m2 and accommodates 80 PCs. The lack of a parking lot coupled with the noise generated by the railway station further makes site A very uncomplimentary for students. It also lacks space for expansion. Hence, FCA’s decision to buy site A and use it for educative purposes was one of its misdoings. Transferring site A to a more apposite, serene location which can allow expansion of the rooms needs to be considered. Encon and Albert (2004) also asserts that public open space (POS) proliferate value, amenity, and aesthetic appeal of an area. FCA needs to relocate site A to acquire POS that will allow students to relax and engage in other leisurely activities. The current location lacks POS, a strong reason why students might be avoiding FCA. While site B is located in a serene environment, 3 miles from the town centre, and close to a shopping centre, its structure is a 1920’s construction with slate roof. While it complies with the security requirements, the building has severally been repaired and partitioned to accommodate FCA’s changing needs for space. Apparently, this must have affected the layout of the facility and overhauled the architectural design of the building. As many spaces are underutilized, FCA should consider restructuring the old building in site B to comply with current designs. The rapidly changing technological environment which saw the introduction of computer aided designs requires that the structural design is reviewed and constant improvements made to appeal to the customers (students) (Encon & Albert, 2004). This will also attract more specialized employees thus improving quality of services, internal customer gratification, and work procedures (Stahl & Björkman, 2006). What’s more, the extensive parking lot in site B is underutilized as a result of constant wrangles between the house staff controlling the site and fly-parkers. Superficially, the constant wrangles in the parking lot and the underutilization of the building in site B is largely attributable to poor management. The house staff is incapable of fully controlling the site hence a more responsible and authoritative facility manager is required in site B. According to Guido et al. (N.d), “The Facility Manager is not the manager of support services, but it is the central hub for information, decision-making and organizational activities between primary and support activities” (p. 424). Moreover, the FM must be technically competent and possess the ability to effectively communicate with all parties. Having a FM in site B will help in resolving the house staff and fly-parkers. The fly-parkers must be informed about the private nature of the property and guidelines and procedures guarding and guiding the use of the parking lot must be formulated and implemented, an aspect not achievable in the absence of a performing facility manager (Kurdi et al., 2011). A facility manager is also helpful in carrying out a needs assessment to determine FCA’s business needs and decide if its urge to provide quality services to learners can be attained with the present facilities or whether another facility is necessary. It will be upon the facility manager to determine the fitting scale, components, scope, and timing of the facilities in accordance with FCA’s needs and the changing business environment. Hence, the typicality, assimilation and business support required for FCA’s reinstatement can possibly be attained by having an authoritative facility manager with the capacity to effectively control the learning sites. The implication of this is further illuminated in the appendix. Facility management can ordinarily be considered to be a cycle. The facilities manager, recommended above, will be at the heart of the cycle ensuring (Kurdi et al., 2011). Having the facility manager will ensure that space, environment, informational technology, support services, and infrastructure will be appropriately catered for as illustrated below; (Kurdi et al. 2011, p. 449) This illustration justifies the recommendation of having a facilities manager at the site. Potentially, FCA should consider improving the functionality and maintenance of site B by outsourcing. According to Kurdi et al. (2011), “Outsourcing in facilities management involves turning over the complete management and decision-making authority to somebody outside the organization” (p.1). Outsourcing site B will enable FCA to maximize ROI (returns on investment) as well as inaugurating an enduring competitive advantage. The decision to partition the building in site B was seemingly motivated by the need to save costs in the short-run. However, this was oblivious of the effect that such a move will have in the long-run. Kurdi et al. (2011) further assert that outsourcing the maintenance of a site usually leads to mushrooming of a contrast between the client’s (FCA) longstanding maintenance tactics and the supplier’s spur to deliver reputational services. Outsourcing, therefore, will enable FCA to access high quality, professional, and quality services while at the same time allowing the house staff to concentrate on FCA’s core business or service processes. While outsourcing presents a cost to FCA, its long-term benefits outweigh the cost incurred as productivity and efficiency in not so essential business processes will increase (Kurdi et al., 2011). In our case, the conflicts between house staff and fly-parkers will be reduced and instances of employees being attacked will ultimately be eradicated. However, care must be exercised in outsourcing as it can potentially threaten confidentiality and security. The outsourced manager of the site will have access to FCA’s confidential information. This is predominantly necessary to ensure that they perform maximally (Kurdi et al., 2011). Nevertheless, it threatens FCA’s existence as ethical standards might be violated and such information leaked to third parties including competitors. Only competent and reputational agents should be allowed to maintain the facility. Since many students and staff currently prefer site A due to its computer access, better lighting, insulation, heating, and double glazing, FCA’s management should consider availing the same facilities at site B. The switching off of lights at site B makes the buildings unnecessarily cold. Since the management is striving to minimize energy consumption in a bid to curb operational expenses, it should consider alternative sources of energy such as cogeneration and solar panels. These are less costly energy sources that are more sustainable and can provide the heating required in site B during winters and also help in regulating temperatures during summers by operating cooling devices. Carpets, ceilings, and wall coverings should as well be maintained to create an attractive look of the old site. It would have be adept to transfer most students to the attractive site A, but again the site is overcrowded hence the whole decision is idealistic. Upgrading of site B remains the most appropriate solution for FCA. Convenience to accommodation and mass transit is an equally important requirement in locating a facility. Site C, apparently, meets these requirements. It is served by college mini-buses and only 6 miles away from the town. It is adjacent to a motorway and a modern motel type which has 120 rooms to accommodate students who enroll for team building, field courses, and outward bound activities of the institution. The ample parking space acts as an additional advantage. However, a slight improvement is required for this site. The timber framed buildings were built in the 1960s. They are quite antique and may not accommodate or offer modern facilities required in resting sheds or training grounds. The sheds must be upgraded to a modern state. Luckily, since the site is spacious, upgrading of the buildings will be attainable without necessarily having to incur huge expenses. Adding another motel near the site will also increase the number of students who can access accommodation next to the site thus reducing transportation expenses. As a security measure, efficient fire alarms must be installed in various locations at the site to guarantee students of their safety (Poynter, 2000). As FCA prepares to construct modern concrete structures, in the meantime, the leaking roofs should be replaced. If this upgrading is effected, with time, site C will be attractive to students and staff thus reducing the congestion currently experienced at site A. Considering the attractive location of the administrative centre, FCA should continue leasing the facility at least for the next few years as it strategizes on how to purchase it. A leasing agreement entails continual rent reviews and considering the current demand for real estates in the UK, the landlord might increase the rent thus causing an additional expense to FCA. While, the administrative centre is located in an area with supportive services such as banks and insurance companies which are FCA’s business partners, the space is currently not enough and the college should consider leasing an extra room. According to Stahl and Björkman (2006), employees are motivated to perform better in an environment where the working standards good. Partitioning of the building to ensure that each staff has an appropriate level of privacy will enable them to concentrate more on their work (Poynter, 2000). While this will impede sharing of important office machines such as printers and computers, enclosed offices will be attractive to employees and the organization will have a miscellaneous pool to choose from, an aspect that will eventually increase performance FCA’s overall productivity. Disparagingly, all FCA’s buildings do not comply with pertinent disability regulations. In 1995, the UK government implemented the DDA (Disability Discrimination Act) to bring to an end the discrimination faced by disabled people in school and at the workplace. Under ADA, all institutions, government facilities, and public buildings must conform to accessibility and convenience requirements for the disabled. FCA lacks important low tables that are accessible to wheelchair users and the ramp or elevators should as well allow a 360 degrees turn for wheelchair users. Additionally, there should be special parking for persons with disabilities. There should also be washrooms, lavatories, and changing rooms specially designed to cater for the needs of disabled employees and students (Poynter, 2000). Failing to include such facilities potentially keeps off disabled students with the urge to learn in FCA thus leading to reduction in the number of students enrolled in its various programs. The leaser should repair the leasehold property at the £35, 000. Since the interest rates are currently very low and expected to remain so, FCA will comfortably be able to repay that amount plus interest at the end of 5 years since the present value of £35, 000 in 5 years time will be substantially low compared to the value that FCA can derive by using the amount to improve its sites A, B, and C. The accumulated liability will be flimsy as upgrading of sites A, B, and C will increase student enrollment and FCA financial problems will be sorted. Moreover, considering the fact that we are living in a technology oriented world, internet connectivity is necessarily for effective functioning of an organization. FCA’s sites lack functional network connection (Poynter, 2000). The computers should be connected to a WAN (wider area network) that will operate with the help of servers. This will facilitate information flow between the 3 sites and the college’s administrative center. Similarly, use of the broadband facilities available in The Peak District will reduce networking cost and will also be supporting the surrounding community hence FCA’s reputation will improve. Gaining a good reputation in the surrounding community will help the organization to be advertised by people through word-of-mouth and more people will find themselves enrolling for its programmes. Moreover, FCA’s management team is currently incomplete since the head is mysteriously missing and the HR manager has retired leaving the management of catering, maintenance, reception, and other house staff under the financial director. According to Poynter, (2000), HR management requires experienced people since employees form the core of the organization and failure to effectively lead them leads to an organization’s failure. The financial director is inexperienced in HR issues hence FCA ought to first strive to complete its management team by hiring a competent and skilled HR manager (Poynter, 2000). Considering that the UK ratio of HR positions to staff numbers is presently 1:50 for many organizations, a single HR manager will be appropriate in managing FCA’s staff issues. Since FCA’s previous head is presumably dead, another head should be appointed to provide directions in the organization. Borrowing from Rosch’s categorization theory, FCA’s staff is currently not performing as employees are looking at competing organizations and realizing that the organizations have heads who provide direction while FCA does not (Susan & Jane, 2007; Poynter, 2000). Appointing a head from within the organization will ensure that the head candidly and extensively understands FCA’s current situation and will be in a better position to bring changes. Similarly, another head of outward bound and activity should be hired to help the college deliver on its promise. After all this is accomplished, I recommend that FCA formulates a clear employee plan indicating who reports to whom, the duties and responsibilities of each employee to avert conflicts of interests that often make some employees feel belittled and disadvantaged at the workplace as such actions deprive the organization of competent employees and unnecessarily increases the turnover rate (Stahl & Björkman, 2006). Separation of powers and unity of command must also be reflected in the plan. FCA must also change its way of employing. Most employees, including drivers and teaching staff, are currently working on a contractual, non-permanent basis. While this is less costly to the organization as it can easily terminate the contract of a non-performing employee, in FCA’s case the sick driver’s contract should immediately be terminated, the employees lack job security and consequently underperform (Stahl & Björkman, 2006). The non-permanent employees are responsible for paying their own taxes and are not covered by workers compensation. Coupled with the fact that such employees are not entitled to retrenchment benefits, they will always underperform as they try to minimize chances of getting injuries and ill-health. After hiring on a permanent basis, the organization should introduce the ‘carrot-stick’ approach where remuneration is tied to performance. This will motivate employees to performance and always turn up in the workplace as they will be aware that the amount of remuneration will fundamentally be determined by the level of performance. Assumptions made 1. FCA’s management can only alter the number of students and staff at sites A, B, and C by providing facilities that will attract them and not through force or coercion (Poynter, 2000). 2. The drivers and department heads hired on a contractual basis are not entitled to any benefits whatsoever from FCA. 3. Connecting organizational actions and individual cognitions shoulders that the interpretive and perceptual processes of the team making decisions in FCA are consequential in determination of level and nature of FCA’s organizational action (Susan & Jane, 2007). 4. The 50% reduction in participation in FCA’s courses is moderately stemming the competitors’ ability to provide courses, which are similar to those provided by FCA, at a reduced price, and glamorous locations well-served with transport facilities, securities, banks, and other auxiliary services. 5. FCA is free to lease the administrative site once again after the expiry of the current lease term. 6. UKBA will eliminate the restrictions placed on students’ visas upon being approached by key industry players such as FCA. Conclusion From the above elucidations, this report concludes that FCA’s deteriorating performance can be reversed if the organization implements the recommended strategies. Firstly, sites A, B, and C should be restructured and equipped with modern facilities that support learning. For instance, networked computers, lighting, cooling and heating facilities should be availed. The railways and mini-buses currently being used for transportation around the college sites should be replaced with airlines. Students should be given freedom to use the means of transport that they find appropriate to their specific needs and suites their financial capabilities. The buildings should also be equipped with special facilities for people with disabilities, security facilities such as fire alarms and carbonated fire extinguishers. The 145m2 floor space in the college administrative center should be increased by leasing an extra room to minimize congestion of staff members in the administration offices and each staff member probably assigned an enclosed office. Moreover, the organization must formulate and implement a clear recruitment and selection policy, fostering employment of qualified staff on permanent basis. However, that might not be practical if the current vacant positions are not filled. The head is essential in providing directions and motivation in an organization hence the organization should immediately consider hiring another head for rapid recovery. Reference List Encon, Y.Y., Hui and Albert H.C. Tsang. 2004. Sourcing strategies of facilities management. Journal of Quality in Maintenance Engineering, Vol. 10, Number 2-2004.pp 85-92. Guido, G., Daniela, M. and Riccardo, D. C. Facility Management: a literature review. Journal of Advances in Computer Science. Retrieved from http://www.wseas.us/e-library/conferences/2012/Prague/ECC/ECC-64.pdf Jane, E.D and Susan, E.J. 2007. Categorizing Strategic Issues: Links to Organizational Action. Academy of management Review. Retrieved from http://webuser.bus.umich.edu/janedut/issue%20selling/catagorizingstrategicissues.pdf Kurdi, M.K., Abdul-Tharim, N., Jaffar, M.S., Azli, M.N., Shuib and Abwahid, A.M. 2011. Outsourcing in Facilities Management- A Literature Review. Elsevier Ltd. Retrieved from http://ac.els-cdn.com/S1877705811029961/1-s2.0-S1877705811029961-main.pdf?_tid=8d862118-f77f-11e4-be69-00000aab0f27&acdnat=1431308973_ebe518541a0c721242fb066173773004 Poynter, G. 2000. Restructuring in the service industries: Management reform and workplace relations in the UK service sector. London: Mansell. Stahl, G. K., & Björkman, I. 2006. Handbook of research in international human resource management. Cheltenham, UK: E. Elgar. APPENDIX Read More