Abstract
This study investigates the impact of different organizational models for the management of non-core processes in the facility management (FM) industry and seeks to suggest which is the best in terms of strategic and operative advantages and disadvantages. A literature analysis of the empirical evidence as to business process outsourcing and, in particular, as to the practices of the FM business sector has been carried out. The analysis has allowed us to identify a total of 11 organizational models that are a consequence of five different strategic approaches. A comprehensive classification framework of the strategies and organizational models on the basis of two dimensions is proposed: the organizational role of a non-core processes manager (called a ‘facility manager’) and the typology of non-core process/service providers. The framework enables the identification and the explanation of the main advantages and disadvantages of each strategy and to highlight how a company should coherently choose an organizational model on the basis of (a) the specialization/complexity of the non-core processes, (b) the focus on core processes, (c) its inclination towards know-how outsourcing, and (d) the desired level of autonomy in the management of non-core processes.
Highlights
In the past, organizations managed the majority ‐ or even the totality ‐ of internal non‐core processes using their own personnel and resources
They were identified through an analysis of the literature on service management, business process outsourcing and, in particular, the practices adopted in the facility management (FM) business sector
The non‐core service management strategy related to the two organizational models is the management by a contractor strategy, since the role played by the facility manager within these models was defined as contract manager [2]
Summary
Organizations managed the majority ‐ or even the totality ‐ of internal non‐core processes using their own personnel and resources. According to the outsourcing paradigm, many innovative organizations decide to outsource part of R&D [4], manufacturing, logistics and non‐ core activities, and non‐core support processes. No substantial theoretical frameworks are available for identifying the organizational models and strategies to be adopted for non‐core service management. The first part of the paper deals with the different strategies adopted by companies in non‐core process management highlighted in an analysis of the empirical evidence within the literature. The organizational models are classified in a framework which allows the linking of them with non‐core service management strategies. The main advantages and disadvantages of each organizational model are explained with the aim of suggesting how to identify the more coherent with companies’ strategies
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