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khairolden@cidb.gov.my, zuhairi@cidb.gov.my,
syahrulnizam@um.edu.my, zairul@um.edu.my, ihfasuziella@cidb.gov.my
ABSTRACT
Facilities Management or better known as FM is often viewed as a
support services for an organization in running their business. FM is
relatively new in Malaysia, perhaps it still at the infancy stage.
Presently, the adoption and practice FM in Malaysia is predominantly
focused on multinational company (MNCs) and also little bit on the
government side. The issue of efficiency, productivity and
professionalism in the construction industry can be achieved through
the adoption of best practice. Facilities in healthcare especially hard
fm are very important to be considered in fm. It is found that
mechanical and electrical services maintenance had contributed major
percentage to the performance management. Through performance
management, requirement and solution will be presented to the clients
in an easy manner. This study focuses on criteria of performance
management within the meaning and understanding from various
researchers of performance management, and recommends the best
methods for Malaysian healthcare. The purpose of this study was to
identify the criteria of performance management in Malaysian
healthcare based on FM perspective, that underestimated by most
people. The mechanism used to analyze the definition of performance
management. From the analysis of the facility management definition,
criteria of performance management were highlight from various
researchers. Then, the criteria will be used as components to develop
a strategic performance management for hard FM in Malaysian
healthcare. Noted that the performance management in healthcare
are very important and therefore, performance management in
facilities management have to be the main agenda and need to be
managed efficiently.
Keywords: Performance management, criteria, facilities management,
hard FM and healthcare
INTRODUCTION
Facilities Management (FM) has emerged as buzz word in construction
industry today. (Atkin and Brooks, 2009) regarded FM has been
traditionally old-fashioned activities such as cleaning, repairs and
maintenance. Since the beginning of twenty-first century, FM as gradually
be recognized by property fraternity as a cost-centre that can contribute
to the performance of organization which requires effective management
(Lavy and Shohet, 2009). The evolvement of FM the most of the part in
the world is growing fast but in Malaysia still at the infancy stage. It was
started back in 1990 but however, most of the people feel that FM is just
maintenance per se. People especially in the construction business
fraternity still opine that FM is more on maintenance and not thinking of
beyond that boundary. Dealing with facilities needs to ensure the quality,
maintenance and performance has to be taken care of. In order to
maintain the facilities, one should look into the performance of facilities
itself. A good performance system has brought maintenance function into
the limelight (Muchiri et al., 2010). The need for management applies in a
FM context as a subset general management is performance
measurement (Amaratunga and Baldry, 2002). (Egan, 1998) recognized
the need for construction and facility managers to closely work as part of
integrated team to reduce the cost of maintenance. According to Ruslan
(2007) the key issue currently plaguing FM in Malaysia is low service
quality and performance. According to CREAM (2011), it was found that
performance measurement in FM context in Malaysia have been divided
into six components namely fire protection and maintenance, mechanical
services maintenance, electrical services maintenance, asset life cycle
management, management policy and administration and cleaning
services. It is found that mechanical and electrical services maintenance
had contributed major percentage to the performance management.
Through performance management, requirement and solution will be
presented to the clients in an easy manner.
RELATED WORKS
Definition and Scope of Performance Management
Performance management is a strategic tool used in measuring effective
organization. The success of organization is relying solely on clear
performance management process (NovaScotia, 2012). It is also
supported by (Ana-Maria et al., 2009) that performance management
plays pertinent roles in managing team and individual to achieve
organizational objective. Performance management definition made by
(Ana-Maria et al.,2009) is a strategic and integrated approach for
sustainable organization in improving the performance of the team and
individual. (Hay Group, 2008) also define performance management is
about improving team and individual performance through strategy
process that links people and jobs. They also outline performance is a
shared understanding process of what to be achieved, managing people
process and also a process to ensure the most effective ways of people do
the process. (Eckerson, 2009) define performance management is a
discipline that aligns performance with strategy. Performance
management relates with information technology in order to monitor the
execution of business. (Amaratunga and Baldry, 2001) defines
performance measurement is a mechanism to evaluate trends in facilities
from the past. Through the collection, interpretation and analysis of
information will give the key to better planning and design for the future.
Perspectives of Performance Management for FM in Healthcare
Managing performance has become important to support management
and practice within FM organization. Performance has contribute lot to the
FM in organization in many ways including strategy, culture, control of
resources, service delivery, supply chain management and change
management (Amaratunga and Baldry, 2002). According to KPMG (2010),
a performance management framework would consist of interlinked
processes, system, tools used for arranging knowledgeable people to
drive the strategy. The framework will only be succeed when individuals
transforms their decisions in line with strategy. KPMG (2010) through
their research found that a strategy must be agreed upon by all. If agreed
strategy does not exist, an effective balanced scorecard will not be
developed further. In order to translate strategy and corporate mission to
be realized, a coherent set of measurement need to be developed. The
measure is to drive people with skills and capability to align with core
values in organization. To achieve this, the organization should establish
business planning and budgeting as part of the performance process with
good reporting and efficient information system.
Criteria in Performance Management
Tucker and Pitt (2009) in their study have adopted ranking system in
assessing performance customer feedback;
Efficiency of service delivery
Criticality to business operation
Service provision (in-house/outsourced)
a) Performance system
b) Cost system
c) Capability evaluation system
d) Benchmarking system and;
e) Planning system
(Silva and Ferreira, 2010) had found that in their study of public
healthcare services (PHS) in Portugal, the strategic control process is
critical. The level of strategic process shows the significant flaws in terms
of communication between parent institution, Health Sub Region (HSR)
and PHS. This problems if not control would lead to the motivational of
staff, poor information flow mechanisms and low level of accountability.
In the scope of facilities, the cost is always the main criteria need to be
considered. The assessment made is only focus to the competitiveness of
procurement rather than the cost effectiveness. (Williams, 1996) found
that cost effectiveness of facilities can control the process of service
delivery. Three financial control facets are critical in order to achieve costeffective facilities. Three facets are budgetary control; value engineering
and competitiveness procurement are shown in the figure below. He also
stressed the measurement of facilities should relate with three main
components namely physical, functional and financial. Physical
performance relates to the behavior of buildings such as structural
integrity, heating. Functional performance relates to the buildings
occupier such as space, layout and ergonomics while financial
performance will touch on capital expenditures, depreciation and the
efficiency of the money spent.
Muchiri, P., Pintelon, L., Gelders, Ludo. And Martin, H. (2010). Development of
Maintenance Function Performance Measurement Framework and Indicators,
International Journal Production Economics, Elsevier B.V.