Management Theory and Practice

1
Management Theory and Practice

• Chapter 3

2
Facility Management

• Facility Management focuses on managing equipment
  and structures to make sure they are working
  correctly as well as the intricate task of
  managing people.
• Employees have emotions, feelings, moods,
  desires, and complex personalities that cant be
  overlooked and represents a dynamic challenge to
  managers.

3
Facility Management vs. Personnel Management

• The difference between them is facility
  management involves the use of equipment or
  buildings to help achieve the facilitys mission
  while personnel management focuses on how people
  help reach the facilitys goals.
• Despite the difference, they are integrated.
  Equipment cannot operate without people.

4
Development of Management Theory

• Frederick Taylor Father of scientific
  management
• - time and motion studies
• Elton Mayo Hawthorne Effect
• Abraham Maslow Hierarchy of Needs
• - must meet each need before satisfying higher
  needs.
• Frederick Herzberg Two Factor Theory
• Victor Groom Expectancy Theory of Motivation

5
21st Century Facility Managers

• Facility Managers and staff must know how to use
  computers in order to effectively manage
  facilities and support services within the
  facility.
• Computer Aided Facility Management developed
  into technological platforms that assists a
  facility manager in running a facility.
• Few primary areas include
• Space and asset management focusing on occupancy
  information, space planning, asset management,
  and move management.
• Computer-Aided Drafting used to plan and design
  the floor plan for the facility to optimize flow
  and function.
• Capital planning tracks the conditions of the
  facility and equipment to improve business
  operations, maintenance, and management.

6
Managerial Skills vs. Leadership Skills

• Managerial traits include
• coercive authority
• time management skills
• organizational skills
• seek stability
• focus on managing tasks
• have subordinates
• maintains control
• appeals to the head
• transactional style

• Leadership traits include
• personal charisma
• shows by example
• hires well (spots potential)
• seek change for the better
• focus on leading people
• have followers
• maintains passion
• appeals to the heart
• transformational style

7
Successful Strategies to Run a Facility

• First and foremost, every facility manager must
  act in an ethical manner.
• A reputation is one of the most valuable assets a
  person will ever have.
• Always utilize integrity in difficult situations.
• Focus on the facilities core competencies, while
  outsource specific tasks that will improve
  service quality.

8
Outsourcing

• Facility Management services offered by
  outsourcing include
• Facility analysis and assessment
• Energy usage analysis
• HVAC and energy management
• Construction/Renovation management
• Budget pro forma analysis
• Housekeeping and environmental services

9
Private Managing Companies

• Pros
• Create booking leverage
• Increased corporate support
• Reduced stress, time, and budget implications
• Effective negotiation and renegotiation
  strategies
• Facility staff focuses on core competencies
  leading to professional growth

• Cons
• Expensive
• Relinquish some control
• Turnover of loyalty to PMC
• Loss of responsibility
• Short term cost cutting could lead to long term
  damage
• Excessive turnover of the GM due to increased
  opportunities

10
Global Spectrum

• Because this is what we do everyday, we have a
  great deal of knowledge about this business as a
  result of managing multiple facilities.
• We have access to people who want to make a
  career in this industry and therefore we
  oftentimes have access to better qualified and
  trained individuals who become specialists in
  this field.
• Our focus is on generating revenues most public
  entities focus on controlling expenses.
• Because of our presence in multiple facilities,
  our buying power is greater and therefore brings
  economies to the facility. One key area is in
  risk management insurance. Because of our
  practices and our compliance with insurance
  requirements, we have a low risk to the carrier
  therefore, our purchasing power and low risk
  rating give us good deals which end up saving the
  owner money.
• We have systems and procedures that result in
  greater efficiencies, whether its improving
  revenue or reducing costs.

11
Questions

• Do you think facility management outsourcing is
  beneficial for a health club?
• If you were a facility manager what services do
  you think you would want to outsource and why?