PROPERTY MANAGEMENT ASSIGNMENT

AN ASSIGMENT ON FACILITIES MANAGEMENT

[pic]NAME OF THE STUDENT:

NAME OF THE MODULE:

MODULE CODE:

SUBMITTED TO:

DEPARTMENT:

NAME OF THE UNIVERSITY:

YEAR:

TABLE of CONTENTS

1. INTRODUCTION: 5
2. BODY OF THE CURRENT TOPIC: 6
2.1 The Key Issue of Facilities Management: 6
2.2 Strategic function of Facilities Management: 6
2.3 Role of Facilities Management in Property Management: 7
2.4 Facilities Management in the direction of Financial Resource Trial: 8
2.5 Role of Facility Manager in Property Management: 8
2.6 The Evolving Role of Facility Management: 9
3. CONCLUSION and RECOMMENDATION: 10

LIST OF FIGURES

Figure 1: ROLE OF FACILITY MANAGER IN INTEGRATED INFORMATION SYSTEM. SOURCE: El-Haram and Agapiou, (2002). 10
Figure 2: USE OF CAFM SOFTWARE IN PROPERTY AND FACILITIES MANAGEMENT. SOURCE: http://www.manageengine.com/products/facilities-desk/. 11

ABSTRACT

The current assignment aims to provide relevant information to the readers regarding the concept of facilities management, its role in property and real estate corporations, its strategic functioning and the key issues which are taken care by it. Amongst the key issues, several concepts like safety and security, cost cutting, maintenance is of prime importance in the property handling. Until now people have been more concerned with the property management issues but they haven’t really focussed on the bigger interest which considers maintenance, safety, security and other environmental facts. The facility management is such a discipline which looks into all these facts in a detailed way and includes property management under its purview. So now the concept has become broadened with the introduction of Facilities Management. The function of facilities management also undertakes the measurement and performance of property dealings, property disputes and property disposal. The present paper will try to include some literary evidences as well providing apt definitions and descriptions regarding the concept. Every discipline is governed by some strategic objectives. This remains in the heart of every process and for this reason the strategic objective of facilities management will also be discussed here with the positive and negative sides. A topic remains incomplete if its role is not properly described and hence this paper will try to elucidate the role and responsibilities of a facility manager. Technology change has affected almost every field of operations and the field of facilities management has also embraced the same technique whole heartedly. The preceding sections will highlight also how with the help of CAFM techniques, shortcomings of the old concept of property management has got revived. Facilities management discipline is the fastest growing professional field and it is still undergoing lots of developments. Despite of its rising prevalence, it is still experiencing a sort of distinctiveness predicament. So at this juncture it is essential to understand the concept of facilities management, role of facility manager, and the main building blocks of this regard fully. This focus has been implicated in the explanations given here by taking ideas and sources from various texts. The discipline of facilities management is presumed to have emerged from building safeguarding management, domestic services or a combination of the two. Given that background, it would be effortless to accept property and real estate management as the natural home for facilities management. Without that background, however, the organization may see properties and real estates as a part of the facilities management. Buildings are acquired and disposed as per to the need for space as defined in the facilities management strategy. This would make sense in a market where there are options other than taking a long lease on a building or property. Corporate real estate management (property management) as a discipline and practice has the objective of making a return from real estate without changing the organization’s core business. Thus the whole concept of property making, management is deeply engraved within the basic roots of facilities management and the present paper will discuss all the following principles under various headings and sub-headings.

1. INTRODUCTION:

According to Amartunga, (2001), Facility management is an interdisciplinary field including the concept of property management, chiefly dedicated to the upkeep and maintenance of outsized saleable or official edifice properties, such as inns, resorts, institutes, workplace centres, sporting stadiums, or settlement centres. Responsibilities may comprise of the maintenance of air conditioning, electrical clout, sanitation and light structures; housework; beautification; estates charge and safety. A number of these functions can be supported by computer catalogues. It is the responsibility of the facility management department to co-ordinate and control the safety, security, and environmentally sound operations and preservation of these assets in a price operative custom intended at long-standing conservation of the property asset worth. The term “facility management” is similar to “property management” and but is characteristically functional to generously proportioned industrial properties where the organization and function of the edifices is additionally multifaceted. The concept of facilities management has transformed spectacularly. Definitely from comparatively modest considerations, the work of facilities manager now includes a variety of crucial and demanding responsibilities, often transversely into complete areas.

There are various definitions of facilities management. Amongst them the most prominent ones are given below:

According to the International Facility Management Association “It is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology”. (IFMA, 1993)

The definition provided by the European Committee for Standardization (CEN) and acknowledged by the British Standards is “Facilities management is the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities”. (CEN, 1991)

Barett and Baldry, (2003) has opined that the main operational functions of the facility management include property management. Basically property management is managing facility to maximize profit. There is no downbeat implication to the word profit. In fact several large property management companies could give management lessons to facility managers. In a nutshell the concept of facilities management includes broader perspective than property management but still it is very much similar to property management and generally facilities management pertains to maintain larger properties. A facility Management sector may be accountable for a property, a site, or a provincial spot with manifold locations or grounds which may be a merge of possessed and rented properties. But the facility management is focussed on cost-effective long term utilization and value preservation of the owned assets while a property management is a miniscule part of it with short term focus.

Nutt, (1988) puts forward that at a national level, the strategic objective of facility management is to provide infrastructure and logistic support to business and public properties of all kinds and across all sectors. Managing the facilities functions can be like operating a big business in it; situating and attaining financial plan objectives, cutting expenses and arranging investments have been demanding errands for facilities managers for some time.

2. BODY OF THE CURRENT TOPIC:

This section will mainly focus on the directions of the topic being discussed, its impacts, the key concerns and emerging subject.

2.1 The Key Issue of Facilities Management:

According to Atkins and Brooks, (2009) the key issue in Facilities management related to properties and real estates is the safety and security of people and property which is a major concern for individuals, organizations and governments alike. Security and personal safety are high on the agenda and are possible to stay so. Many constructions and other conveniences were planned and erected for the duration of times when the real threat of an illegal or terrorist act was remote. Today, people’s awareness is heightened and organizations must take very seriously the potential threats in a rapidly changing and increasingly uncertain world. It is also the responsibility of the facilities management to look after any litigation issues regarding the properties. Facilities management is responsible for procuring and managing support services across this range, and for negotiating the specialist professional and consulting skills that may be required from time to time. So a key driver of the facilities management business is to provide and manage these levels of support, maintaining an appropriate balance between long term property issues and short term services supporting day to day operational factors.

2.2 Strategic function of Facilities Management:

According to Chotipanich, (2004) managing the facilities function involves many strategic decisions and the main direction is focussed on the management of workplace properties. Facilities professional are accountable for an extraordinary array of workplace property facilities. The accretion of efficacies, the management of garbage removal, the mounting of incorporated safety measures scheme, the procurement of workplace furnishings and the assessment of maintenance and up keeping utilities are some of the major confrontations which are taken care of by facilities managers.

The strategic loom is therefore directed to the organization of vagueness over time. But how these uncertainties are managed? Alexander, (2003) has pointed out that within the context of facility management, there are two complementary objectives. One objective is negative and the other positive. On one hand, property, facilities and support services can inhibit the goals and work of the organizations, their teams and individuals. On the other hand, they can contribute to productivity, human effectiveness and well being, acting as a catalyst for change and facilitating business success. The first objective focuses on measures to contain, reduce, transfer and avoid risks and constraints, both unknown and unpredictable, that property and facilities can impose on an organization and its employees. The second seeks to uphold and generate opportunities and advantage, both planned and fortuitous, that property and amenities might provide. In facility management the negative part is of supreme significance. It is only when this is securely in place that the positive contributions of facilities management may begin to be realised.

2.3 Role of Facilities Management in Property Management:

Hall, (2000) suggested that corporate real estate management includes a diverse range of concerns and activities which entails the concept of facilities management. The key issue is possibly controlling the planned organization of this resource and the requirement to line up property plan with overall production scheme. This view has been central to the development of corporate real estate management as an activity, in that strategic management of corporate real estate provides considerable opportunity to make important and substantial contributions at the corporate level. Since the 1980s, facilities management has grown alongside corporate real estate management as both a function and a professional activity. There exist extensive literature (Then, 1999; Nourse & Roulac, 1993; Bon, McMahan & Carder, 1994; Gale, 1989) on this topic that covers issues ranging from the very technical to the strategic, and the nature and development of the facilities management role. Definitions and interpretations of the functions of facilities management abound, but the following definition by Alexander, (1993) is typical:

“Facilities management is concerned with the integration of property management, with the management of its utilization and with the full range of services provided to support a business operation. As such it will function at three interconnected stages in any organization-strategic, local and functioning platforms”.

Kincaid, (1994) comments: “facilities management is the integration of property (real estate) management, property maintenance and operations, and office administration”. Alexander, (1994) focusing specifically on strategic issues relating to the development of facilities management as a profession summarises the facilities management movement as:

“A belief in potential to improve processes by which workplaces can be managed to inspire people to give of their best, to support their effectiveness and ultimately to make a positive contribution to economic growth and organizational success”.

2.4 Facilities Management in the direction of Financial Resource Trial:

Nutt, (2000) suggested that the finance trial in facilities management has three pathways. The first directed to the management of property investment decisions, the second to the management of property assets, the third to the management of facility operating costs, all within the context of the property market which tends to be the most illiquid vehicle for investment. Over the last fifteen years the financial resource trial has been dominated by a simple business imperative across most sectors, resulting in downsizing, outsourcing reduced operating budgets, property consolidation, disinvestment and disposal. Das, (1989) pointed out that Facility management has been part of a “cost-cutting” culture for short term business benefit and shareholder value. The finance assessment has been a consumerist trial. But once inefficiencies, under utilization and waste have been squeezed and managed out, what then? Reductionist measures of this kind certainly produce a “balance sheet” improvement but they cannot be continued indefinitely. Further downsizing and cost-cutting will begin to harm the very operations that they set out to support.

2.5 Role of Facility Manager in Property Management:

According to Fitch & Nettina, (1999) Facility managers plan, direct, or coordinate the day to day facility operations of various properties. They manage structures and foundations in addition to people. Their responsibility comprises of preparation of strategies, supervision of day by day manoeuvres, and scheduling the utilization of resources and manpower. El-Haram, (2002) suggested that frequently facility managers bargain agreements for caretaker, safekeeping, proof custody, garbage elimination, and other duties. When agreements are granted in competition, supervisors seek proposals from a number of outworkers and counsel the proprietors on the choice of selection of the appropriate offer. They scrutinize the act of outworkers and examine and handle grievances from inhabitants and occupants when facilities are not correctly endowed. Facility Managers also procure provisions and paraphernalia for the property and construct appointments with professionals for maintenance that cannot be conducted by usual possessions safeguarding workers. The facility manager’s work necessitates incorporating dealing supervision and erstwhile fields.

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Figure 1: ROLE OF FACILITY MANAGER IN INTEGRATED INFORMATION SYSTEM. SOURCE: El-Haram and Agapiou, (2002).

2.6 The Evolving Role of Facility Management:

Tay, (2001) has put forward that Facility Management will become much more strategic (an overused word) in nature. As guardians of integrated corporate information, they will directly link to business units of integrated corporate information; they will directly link to business units for providing feedback regarding chargeback and financial implications of real estate and facility operational decisions. They will become much more proactive and be an essential component of business planning since facility/operational expenses are such a significant part of the corporate budget. Another evolving area is the use of computer aided facility management (CAFM) technologies (Fig. 2). This technology will encompass real estate and property management functions. Corporate real estate staff, currently more senior in the organizational hierarchy, is less computer sophisticated that facility management staff at present and need to tie their data requirements to facilitate systems.

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Figure 2: USE OF CAFM SOFTWARE IN PROPERTY AND FACILITIES MANAGEMENT. SOURCE: http://www.manageengine.com/products/facilities-desk/.

3. CONCLUSION and RECOMMENDATION:

The present paper summarizes in brief the role of facilities management in real estate and properties. It delves deeply into the subject and lucidly describes the various issues which are directional to the topic, one being the case of financial resource trial. The assignment also gives a detailed understanding of the contribution of facilities managing in commercial real estate and how the concept of property management is handled operationally in the facility management program. The main driver of the facilities management is the safety and the security of people and properties since it is operational in these two fields involving living spaces, workplace and other institutional properties. It becomes the ultimate duty of facility management to cater to the needs of various accomplishments and properties starting from up keeping, maintenance, strategy formulation for development and maintenance of the various amenities, cost cutting and also property maintenance. The vital and crucial role of facilities management in property administration has been exemplified through a vivid discussion and in the process, the roles and responsibilities of a facility manager has also been elucidated to make things more clear. Technology advancement plays an important role in facilities management and where the old staffs of property management has not enjoyed this usage, the facilities management has overwhelmingly introduced CAFM and CAD (Computer aided designs) in framing various properties and making them available to various patrons. The future development of facilities management will include more superior I.T infrastructure, non stop support facilities, energy performance in property building directives and more flexible support from the facility managers to their clients. With the help of evolving technologies and integrated networking the facilities management will be able to extend more help and support to property maintenance, and enhanced building support. The increasing impetus on energy efficiency in property business, health and safety issues and maximum productivity are now among the business objectives that facilities management aim to address.

REFERENCES

1. Alexander, K. (2003): "A strategy for facilities management", Facilities. 21(11/12): 269 – 274.

2. Amaratunga, D. & Baldry, D. (2001): "Case study methodology as a means of theory building: performance measurement in facilities management organisations", Work Study. 50(3): 95 – 105.

3. Bon, R., McMahan, J.F., & Carder, P. (1994): "Property Performance Measurement: From Theory to Management Practice", Facilities. 12(12): 18 – 24.

4. Chotipanich, S. (2004: "Positioning facility management", Facilities. 22(13/14): 364 – 372.

5. Chotipanich, S. & Nutt, B. (2008): "Positioning and repositioning FM", Facilities. 26(9/10): 374 – 388.

6. Coenen, C., Felten, D.V., & Schmid, M. (2011): "Managing effectiveness and efficiency through FM blueprinting", Facilities. 29(9/10): 422 – 436.

7. El-Haram, M.A. & Agapiou, A. (2002): "The role of the facility manager in new procurement routes", Journal of Quality in Maintenance Engineering. 8(2): 124 – 134.

8. Das, T.K. & Teng, B.S. (1998): “Resource and Risk Management in the Strategic Alliance Making Process”, Journal of Management. 24(1): 21-42.

9. Fitch, T. P. & Nettina, D.J. (2009): “Facility Manager” in Career Opportunities in Real Estate. NY: Infobase Publishing. pp. 112-127.

10. Gale, J. & Case, F. (2009): “A study of corporate real estate resource management”, Journal of Real Estate Research. 4(3): 23-24.

11. Nourse, H.O. & Roulac, S.E. (1993): “Linking real estate decisions to corporate strategy” Journal of Real Estate Research. 8(4): 475-494.

12. Nutt, B. (2000): "Four competing futures for facility management", Facilities. 18(3/4): 124 – 132.

13. Nutt, B. (1999): "Linking FM practice and research", Facilities. 17 (1, 2): 11 – 17.

14. Nutt, B. & McLennan, P. (2000): “The strategic objectives in facilities management” in Facility Management: Risks and Opportunities. Australia: Blackwell Science Inc. pp. 1-10.

15. Razali, M. N. & Juanil, D.M. (2011): "A study on knowledge management implementation in property management companies in Malaysia", Facilities. 29(9/10): 368 – 390.

16. Tay, L. & Ooi, J.T.L. (2001): "Facilities management: a “Jack of all trades”? Facilities. 19(10): 357 – 363.

17. Then, D.S. (1999): "An integrated resource management view of facilities management", Facilities. 17 (12/13): 462 – 469.

18. Use of CAFM Software in Property Management. [Online]. Available from: http://www.manageengine.com/products/facilities-desk/.[Accessed Online on 27th July, 2011].