Problems Of Facilities Management In Corporate Organizations

Project and Seminar Material for Estate Management

Problems Of Facilities Management In Corporate Organizations


Abstract


Facilities management in Nigeria is still in an early learning cycle when compared with the situation in Europe, USA etc where the practice has been on since the 1980’s. Some corporate organizations are increasingly embracing the need for efficient facilities management. Like any new venture, facilities management practice in Nigeria is expected to also have its commencement problems. This study examines the role of the facilities manager and highlights the problems that constrain effective facilities management.

The research adopted both survey and case study methods. The survey was used in data collection while the case study was based on an intensive study of six selected drug, beverages and textile manufacturing industries in Lagos. The sampling technique used was simple random sampling. The sample of 240 respondents was drawn from the population parameters through Taro Yamani model. A total number of 200 completed questionnaires representing 83.3% of the distribution made were recovered and used for statistical analysis.

The hypothesis of this study postulates that facilities management problems do not have significant effect on efficient productivity in an organization. The data collected were subjected to an inferential statistical test using chi-square technique. The major problems identified include poor funding and maintenance, bureaucracy and unavailability of skilled/right professionals. The result of the statistical analysis obtained is shown as follows: X2cal = 157.08 and X2tab = 7.82.

This shows that the null hypothesis should be rejected in favour of the alternative hypothesis, based on the decision rule to reject the null hypothesis if the calculated value is greater than the table value. This work concludes that facilities management problems have significant effect on efficient productivity in an organization. Benchmarking, safety and security provision, good communication, continuous training programs, adequate budgetary provisions, value-engineering application among others are recommended.


Chapter One


1.1 Introduction / Background Of Study

A lot of erroneous meanings have been ascribed to facilities management. These misconceptions have arisen because of the dictionary meanings which people have identified the word facility with. Even professionals in real estate, construction industries and professionals in other sectors are likely to think that facilities mean those special infrastructure such as water, electricity, road, telecommunication equipment etc that are important to the use and enjoyment of a property. According to Odiete (1998) the early set of people who came in contact with what is now referred to as facilities and their management have always taken a restricted view of the discipline as relating only to space management as against the other aspects.

Very few people perceive facilities management to be the management of such machines and equipments that provide special services to the building such as power generator, lifts and elevators, water reservoirs, water treatment plant, air conditioning systems etc. All these are correct to the point that they just form a portion of the overall facilities management process. Facilities management involves the entire building as a whole, its structure, fabrics, components, services, space dimension, storey height and its special attachment from substructure to the apex of the super structure. (Nutt, 1999)

Recent development and research into the discipline particularly since the late eighties has however revealed a wider and more embracing scope. International Association of facilities management, the umbrella organization for all facilities managers all over the world has defined facilities management as involving the tasks of design, construction, maintenance and management of the physical environment as it relates to and the work process(Brian and Adrian 2000).

In practice, facilities management can cover a wide range of services including real estate management, financial management, change management, human resources management, health and safety and contract management, in addition to building maintenance, domestic services (such as cleaning and security)and utilities supplies. It has equally been seen to entail the coordination, control and management of the support services necessary to maintain business operation and allow it to achieve its corporate goals.

These widened views have become important as at today, because the operation of business has become highly articulated, sophisticated, more complex and constantly evolving (Hans 1996).Facilities management can therefore be summarized as creating an environment that is conducive to carrying out the organization’s primary operations, taking an integrated view of the services infrastructure, and using this to deliver customer satisfaction and value for money through support for and enhancement of the core business. We can develop this definition to describe facilities management as something that will:

  1. Sweat the assets, that is make them highly cost effective
  2. Enhance the organization’s culture and image
  3. Deliver effective and responsive services
  4. Enable future change in the use of space
  5. Provide competitive advantage to the organization’s core business

Moreover, facilities management has grown beyond the shell of managing the office premises but has found application in several industrial and non-commercial environments while retaining its initial relevance within the commercial world that operates from the office (Gilleard Yiqun, 1999).

The basic principle of facilities management is to know the policies, practice, and procedures guided by an organizations mission and its available resources (Sanni, 1998). Organizations may not be aware of the extent to which value for money in facility management can be improved. This suggests that it is not the outcome that needs to be looked at closely, but the decision making that leads to it. There are common approaches to facilities management, regardless of the size and location of buildings, although these may not necessarily result to common solutions to problems. In some cases, estate- related and facilities services are outsourced (contracted out) and in others retained in house for good reasons in each case. There are also many organizations that operate what might be described as a mixed economy, where some services are outsourced in some measure as well as being retained in house.

In view of the above, this study is to critically examine the problems of facilities management practice in corporate organizations (manufacturing industries) within Lagos state and proffer solutions to them.


1.2 Statement Of Problem

Facilities management in Nigeria is still in an early learning cycle when compared with the situation in Europe, USA etc, where the practice has been on since the 1980’s. Some corporate organizations are increasingly bracing the need for efficient facilities management. Like any new venture, facilities management practice in Nigeria is expected to also have its commencement problems. It is these problems of facilities management that this study intends to find out.


1.3 Aim And Objectives

The aim of this research is to examine the role of the

facilities manager and to highlight the problems that constrain effective facilities management as well as providing solution to the identified problems.

The objectives of the research include the following:

  1. To give a comprehensive insight into the field of facilities management, its functions, scope and relevance.
  2. To establish the professional inputs of facilities management team and its role in corporate organizations.
  3. To determine the problems which militate against efficient and effective facilities management in corporate organizations.

1.4 Scope Of Study

Facilities management is a broad subject hence this study was restricted to facilities management as it pertains to corporate organizations within Lagos state, sampling a selected number of manufacturing industries while proffering solutions to some of the identified problems.


1.5 Method Of Research

Research data was obtained through:

Primary Data:

Information and statistical background wereobtained by means of interviews, questionnaires and field observations. Observations. Interviews were conducted with management personnel and facilities managers within selected corporate organizations (manufacturing industries) in Lagos state.

Secondary Data:

These were obtained through an extensivereview of seminar papers, textbooks, internet materials, journals, magazines and recent works on the subject.


1.6 Statement Of Hypotheses

  1. H0: Facilities management problems do not have significant effect on efficient productivity in an organization.
    H1: Facilities management problems have significant effect on efficient productivity in an organization.
  2. H0: Resources allocated for facilities management are not adequate.
    H1: Resources allocated for facilities management are adequate.

1.7 Significance Of Study

This study will help to articulate the philosophy behind the idea (concept) of facilities management as an emerging field of study and area of specialization. The study will bring to bare unforeseen problems on this emerging field presently and those that are likely to spring up in the near future. It will also prepare the minds of future or prospective facilities managers of the problems inherent in the field.


1.8 Research Questions

  1. How effectively are facilities being managed?
  2. To what extent do the facilities compliment their basic function?
  3. To what extent is the management functional in terms of finance, modern automation etc?
  4. To what extent are the resources allocated for facilities management adequate?
  5. To what extent are the facilities users requirements satisfied?
  6. What are the major problems encountered by facilities managers and how can they be solved?

1.9 Brief History Of The Study Area

Metropolitan Lagos covers an area of about 1,086 square kilometers. It covers Ikeja which is the capital of the state. It is the centre of the nations commercial and industrial activities. It is bounded on the south by the Atlantic Ocean, on the East by part of Lagos Lagoon and on the north – west by the Lagos State boundary with Ogun state.

The growth of metropolitan Lagos in the last fifty (50) years has been tremendous, exerting great pressure on the suburbs and fringes of metropolitan areas. The population rose from 126, 168 in 1931 to about 3.8 million in 1978 and 6.5 million in 1991 (National population commission 1991). Presently, it is estimated to be about 15 million. With this rise in population, greater pressure is exerted on infrastructure and facilities which are disproportionate to the population using them.

Lagos is the most populous city in Nigeria, the largest country in Africa. The metropolitan area, an estimated 300 square kilometers is a group of Islands endowned with creeks and lagoons. Lagos is projected to be one of the world’s five largest cities by 2005.The dominant vegetation of the state is the swamp forest consisting of the fresh water and mangrove swamp forests both of which are influenced by the double rainfall pattern of the state which makes the environment a wet land region. Generally, the state has two climatic seasons: Dry(November-march) and wet (April- october).The drainage system of the state is characterized by amaze of lagoons and water ways which constitutes about 22% of 787sq kms(75,755 hectares) of the state’s total landmass. The major water bodies are the Lagos and Lekki lagoons, Yewa and Ogun Rivers. Others are ologe lagoon, kuuramo waters, Badagry and Omu.


Problems Of Facilities Management In Corporate Organizations


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