Understanding the business organisation and its impact on facilities management

Assignment Brief

Unit FM4.08: Understanding the business organisation and its impact on facilities management

Learning outcomes

1. Understand the structure of business organisations

• 1.1 Compare and contrast the different business structures (relating different structures to matters such as risk/liability, shareholder value, business operation, funding)
• 1.2 Compare and contrast the ways in which the different business structures have an impact on the way facilities management is delivered (relating different business environments, demands and accountabilities to different options for facilities management)

2. Understand the importance of corporate culture

• 2.1 Describe the company culture of an organisation (using an example drawn from the learner’s own experience and/or a case study)
• 2.2 Explain how the work environment can enable or restrict cultural change within an organisation (supporting the explanation with examples such as open plan versus cellular accommodation, decorative schemes, breakout areas)
• 2.3 Explain how Facilities Managers can influence the company culture to make a positive contribution to change (supporting the explanation with examples such as developing relationships with building users to facilitate ideas that support the business strategy, and benchmarking service delivery and costs )

3. Understand how business organisations develop operational plans

• 3.1 Develop an operational plan (see below)
• 3.2 Produce monitoring and controls for the plan so that it achieves its overall objectives (see below, and including SLA`s, KPI`s, use of performance data, user feedback, comparing performance against objectives and communication to relevant stakeholders)
• 3.3 Describe the issues which the monitoring and control of the plan may identify (see below) (Achievement of all of these criteria should be evidenced using example/s from the learner’s own experience and/or case studies)

4. Understand the decisionmaking processes within organisations

• 4.1 Describe the decision-making processes which a Facilities Manager can influence (supporting the description with examples, such as FM strategy, preventative maintenance planning, legal and regulatory compliance, space planning, environmental management issues)
• 4.2 Explain how external decisions can affect facilities management (supporting the description with examples, such as reducing facilities budgets, office relocation, opening or closing sites, implementing legislation, outsourcing all or part of the facilities function, organisational restructuring)

5. Understand change management

• 5.1 Explain the need for organisational change in response to changes in the business environment (supporting the explanation with examples such as reduced business turnover, change in longer term business objectives, change in leadership of organisation, cost reduction)
• 5.2 Identify changes in circumstances and adjust plans and activities accordingly (using example/s from the learner’s own experience and/or case studies)
• 5.3 Explain how to develop new work processes, procedures, systems, structures and roles to achieve the vision behind the change (using the same example/s as for the previous assessment criterion, and including analysing the impact of change and communicating findings before obtaining agreement on adjustments and monitoring their implementation)
• 5.4.Identify potential barriers to change (using the same example/s as for the previous assessment criterion, and including barriers such as employee attitudes, available resource and its capability, legal and regulatory requirements, available space, cost, contractual obligations)

Sample Answer

Understanding the Business Organisation and Its Impact on Facilities Management

Understanding the Structure of Business Organisations

Business organisations adopt different structures depending on their objectives, scale, and operational contexts. These structures include sole proprietorships, partnerships, limited liability companies (LLCs), and public limited companies (PLCs). Sole proprietorships and partnerships have high personal risk due to unlimited liability, while LLCs and PLCs protect shareholders through limited liability. PLCs are more likely to attract investment owing to their ability to raise capital through public share offerings, enhancing shareholder value. Operationally, smaller structures offer more flexibility but lack the resources and formalisation of larger entities.

In terms of facilities management (FM), organisational structure influences how FM is delivered. In small businesses, FM may be informal or outsourced entirely. Larger organisations often establish dedicated FM departments or strategic partnerships. For instance, a PLC with extensive infrastructure might implement integrated FM services, ensuring alignment with corporate objectives, regulatory compliance, and shareholder expectations. Conversely, an SME might prefer cost-effective, outsourced FM solutions due to limited resources and simpler operational needs.

Importance of Corporate Culture

Corporate culture encompasses values, beliefs, and behaviours within an organisation. For example, a technology start-up might emphasise innovation and agility, fostering a collaborative, open-plan environment with flexible workspaces and creative breakout areas. Such settings encourage informal communication, idea-sharing, and adaptability.

The work environment directly impacts cultural change. Open-plan offices support transparency and collaboration, whereas cellular offices may reinforce hierarchy and privacy. Decorative schemes, such as branding, colour themes, and artwork, can reinforce company values. Facilities Managers play a pivotal role in shaping culture by aligning physical spaces with strategic goals. For instance, by consulting with users and gathering feedback, FMs can implement workspace designs that enhance productivity and support organisational change. Benchmarking FM service delivery and engaging with stakeholders ensures cultural alignment and cost efficiency.

Developing Operational Plans

Operational plans translate strategic goals into actionable steps. A Facilities Manager might develop a plan to improve energy efficiency. The plan outlines objectives (e.g., 10% reduction in energy use), resources, timelines, responsibilities, and performance metrics.

Monitoring and controls are crucial. Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) ensure accountability. Performance data, such as energy consumption statistics, are analysed and compared against targets. User feedback helps assess satisfaction and identify areas for improvement. Stakeholders are kept informed through regular reporting and meetings.

Monitoring may reveal issues like underperformance, resource shortages, or stakeholder dissatisfaction. For example, if energy savings fall short, the FM may adjust the strategy, introduce staff training, or upgrade equipment to meet targets.

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