Understand the structure of business organisations

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 structure of business organisations

Business organisations can be set up in a variety of ways and the chosen structure has a direct impact on risk, liability, shareholder value and the ability to raise finance. A sole trader is the simplest form, where one individual owns and controls the business. While this gives full decision-making power, it also carries unlimited personal liability, meaning the owner is personally responsible for debts. Partnerships share ownership and responsibility between two or more people, which can be useful for pooling skills and resources, yet they still face joint liability. In contrast, private limited companies offer limited liability, so shareholders are protected from personal financial risk. They can also raise money by selling shares, though usually within a smaller circle. Public limited companies are larger, with shares traded on the stock market, which allows them to access greater funding but also exposes them to stronger regulatory requirements and pressure from shareholders. Not-for-profit organisations, such as charities, are designed around social purpose rather than financial gain, and therefore rely on grants, donations or government funding rather than commercial investment.

The structure of the organisation has clear implications for facilities management. Smaller businesses like sole traders or partnerships may only need basic property maintenance and often outsource facilities services. In larger companies, such as limited or public limited companies, facilities management becomes much more strategic, covering health and safety, compliance, sustainability and efficiency across multiple sites. In the not-for-profit sector, facilities managers are expected to make the most of limited budgets, balancing high standards of safety and accessibility with financial restrictions. For example, a public limited company with international offices would depend on strong facilities management to coordinate workplace standards consistently, whereas a local charity might only require support with maintaining community buildings.

Understanding the importance of corporate culture

Corporate culture reflects the shared values, beliefs and behaviours that shape how people work within an organisation. A useful example is a retail business that places customer service at the centre of its culture. In this environment, staff are encouraged to work as a team, share ideas and actively engage with customers. This collective attitude not only strengthens the brand but also improves staff morale and productivity.

The physical work environment strongly influences culture. An open-plan office layout can encourage communication, collaboration and transparency, but it may also create distractions and reduce privacy. Breakout areas support creativity by giving employees informal spaces to exchange ideas, while cellular offices provide privacy and concentration but can restrict interaction. The way an organisation designs its workspace sends a clear message about how it values collaboration, independence, or innovation.

Facilities management plays a crucial role in shaping and supporting this culture. By providing clean, safe and well-designed spaces, facilities managers help employees feel valued and motivated. Choices about lighting, temperature, accessibility, and even office décor all contribute to creating an environment that reflects the organisation’s values. For instance, a company that wants to encourage sustainability can embed this into its facilities strategy through energy-efficient buildings, recycling programmes and green spaces. In this way, facilities managers act as key contributors to embedding culture in the physical and operational structure of an organisation.

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