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 can’t 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 facility’s mission while personnel management focuses on how people help reach the facility’s 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 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 show’s by example hire’s well (spots potential) seek change for the better focus on leading people have followers maintains passion appeals to the heart transformational style Managerial Skills vs. Leadership Skills

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. 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 Private Managing Companies

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 it’s 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?