UNIVERSITY OF NAIROBI

SCHOOL OF THE BUILT ENVIRONMENT

DEPARTMENT OF REAL ESTATE AND CONSTRUCTION
MANAGEMENT

THE IMPACT OF ORGANIZATION STRATEGY ON FACILITIES

MANAGEMENT

A Case Study of Postal Corporation of Kenya

BY:
MUSYIMI ROSE KAVINYA

B92/75430/2014

A PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

MASTERS DEGREE IN VALUATION AND PROPERTY MANAGEMENT

7TH NOVEMBER, 2019

 DECLARATION

I, MUSYIMI ROSE KAVINYA hereby declare that this research is my original work and has
not been presented for a degree in any other university.

Signature……………………………. Date…………………………………………..

MUSYIMI ROSE KAVINYA

B92/75430/2014

SUPERVISOR’S DECLARATION

This research has been submitted for examination with my approval as the University of Nairobi
Supervisor in the Department of Real Estate and Construction Management.

Signature……………………………………. Date……………………………………

DR. WILBERFORCE OJIAMBO OUNDO, PhD

(Supervisor)

ii
 DEDICATION

I dedicate this work to my loving children Samuel Musyimi, Grace Mwathi and Junior Kilonzo
who have patiently endured and cheered me all through during the long period it has taken me to
complete this project. I have no words to express my feelings for them for the sacrifice they have
made but this token gesture is the least I can do. May God bless them and help them to grow to
achieve all their desires and goals in life.

iii
 ACKNOWLEDGEMENT
I give all the glory, honor and majesty to the Almighty God for having given me the opportunity
to study at the University of Nairobi and pursue my Master’s Degree in Valuation and Property
Management. I also wish to thank God for giving me the strength, power, knowledge and wisdom
to carry out this research project as an advancement to my career and education.

I express my deepest gratitude to my supervisor, Dr. Wilberforce Ojiambo Oundo, for his
guidance, critique, encouragement and assistance while conducting this research project. His
dedication, timely and critical review of this report played a significance role in its completion.
May God bless Him abundantly. May he not lack in all his endeavors.

I would also like to thank all my lecturers at the Department of Real Estate and Construction
Management who through their lectures provided me with a wealth of information that I applied
during the development, implementation and reporting of this research project. My appreciation
goes to all my classmates and staff at the department for their academic contributions.

Special appreciation goes to all my friends who have supported me physically, socially, spiritually,
morally and financially.

I owe great debt to my Dear husband and children who have supported me all through and enabled
me to succeed in all my endeavors. Their support, wisdom and encouragement enabled me to
succeed not only academically, but also in all other aspects of life, and I thank God for them.

My deepest gratitude also goes to the staff at Postal Corporation of Kenya who sacrificed their
time to avail the relevant information that made this project a success.

Special thanks go to all those who have provided me with information, access to study areas,
reference books, profiles, journals and guidance during the preparation of this project.

To all those who in one way or the other contributed to this project’s success, I sincerely say
“THANK YOU”.

MAY THE ALMIGHTY GOD BLESS YOU ALL!

iv
 ABSTRACT
The main drive of most if not all organizations or companies is to ensure viable comparative
advantage among its competitors besides being considered effective amid the various demands
and needs of the shareholders and that of the staff. Strategic planning has gained more relevance
in most organizations today as a result of the influence it has had on the organization’s economic
growth as well as success of both the organization and the staff. Strategic Management in an
organization, fully depends on the strategic planning which acts as its pillar as the process is key
in the conduct of strategic management. Wagner (2006), views strategic planning in an
organization as a very significant process because it links strategic planning and goals to budgets,
provides strategic formulation and scans the environment for the success of the organization. The
aim of this study was to establish the impact of organization’s strategy on Facilities Management
with a case study of Postal Corporation of Kenya, (PCK).

The objectives of the study were to establish the extent at which Facilities Management function
has been incorporated in the Strategic Plan of PCK, to establish the extent of the level of
implementation of the Corporate Strategic policies and action plans on Facilities Management for
PCK and to evaluate the impact of strategic planning on the role of Facilities Management and its
contribution to the general performance of PCK.
It was established that the strategic plan of PCK revolved around customers’ service, revenue
generation, enhanced human resource capitals and extension of service to a wider base. The study
further established that the role of the Facilities Management Department was in line with the
implementation of the Corporation’s Strategic Plan at PCK and that the Facilities Management
Department had contributed towards attaining the goals of the Corporation’s Strategic Plan. The
main Facilities Management objectives were also in line with the Corporate Strategic Plan and this
had support of the respondents who, unanimously considered that Facilities Management
contributed towards attainment of the goals of the Corporate Strategic Plan.

From the study, the following recommendations were made: First and foremost, PCK Facilities
Management department require allocation of more resources to facilitate its activities. The
recruitment process during employment of staff need to be made competitive in order to employ
competent and qualified staff equipped with all the relevant skills and knowledge required in
executing the functions of the department. Constant training will help equip staff with the current
skills and techniques hence improving work relationships and performance. Further, staff in the

v
department need to be empowered with decision making and reporting mechanism channels. In
terms of technology, there is need for the department to automate its systems and adapt modern
advanced technology and soft wares for ease of service delivery. Lastly, staff control, supervision
and motivation were key recommendations made towards the success of the Corporation. On the
issue of PCK tenants and customers, the study recommended for improved cleanliness, routine
repair and maintenance as well as installation of firefighting equipment and mechanisms in all the
PCK buildings. Further, the rents charged for all the leased spaces need to be revised to prevailing
market rates. Health, safety and security measures need to be enhanced in all the PCK buildings.
Tenants and customers were to be enticement through discounts, gift vouchers, advertisement and
promotions of PCK products and services geared towards boosting the revenue income of the
Corporation. Automation of PCK systems and services was also to be considered for the overall
success of the business. Finally, it was recommended that customers be sensitized on PCK
products and services as a way of promoting sales and increasing revenue.

vi
 LIST OF ABBREVIATIONS AND ACRONYMS

FM Facility Management
CSP Corporate Strategic Plan

I.FM.A International Facility Management Association

M.D.A’s Ministries Department and Agencies

E.R.S Economic Recovery Strategy

G.O.K Government of Kenya

P.I Profitability Index

P.I.R Profit Investment Ratio

V.I.R Value Investment Ratio

P.C.K Postal Corporation of Kenya

C.B.D Central Business District

H.D.U High Dependency Unit

LCCA Life Cycle Cost Analysis

L.C.C Life Cycle Costing

I.R.R Internal Rate of Return

N.P.V Net Present Value

R.O.I Return on Investment

T.C.O Total Cost of ownership

I. C .T Information Communication Technology

U.P.U Universal Postal Union

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 TABLE OF CONTENTS
DECLARATION........................................................................................................................... ii
ACKNOWLEDGEMENT ........................................................................................................... iv
ABSTRACT ................................................................................................................................... v
LIST OF ABBREVIATIONS AND ACRONYMS .................................................................. vii
TABLE OF CONTENTS .......................................................................................................... viii
LIST OF TABLES ....................................................................................................................... xi
LIST OF FIGURES ..................................................................................................................... xi
LIST OF DIAGRAMS ............................................................................................................... xiii
LIST OF CHARTS .................................................................................................................... xiii
LIST OF MAPS.......................................................................................................................... xiii
CHAPTER ONE ........................................................................................................................... 1
1.0 INTRODUCTION................................................................................................................... 1
1.1 Background of the study ....................................................................................................... 1
1.1.1 Strategy .......................................................................................................................... 1
1.1.2 Strategic Management ................................................................................................... 2
1.1.3 Operational Management ............................................................................................... 3
1.1.4 Facilities Management ................................................................................................... 4
1.1.5 Performance management and measurement................................................................. 5
1.2 Problem Statement ................................................................................................................ 6
1.3 Study Objectives ................................................................................................................... 9
1.3.1 Core Objective ............................................................................................................... 9
1.3.2 The specific objectives ................................................................................................... 9
1.4 Research Questions ............................................................................................................... 9
1.5 Justification and Significance of the Study........................................................................... 9
1.6 Study area and scope ........................................................................................................... 10
1.7 Organization of the Study ................................................................................................... 10
1.8 Definition of key terms ....................................................................................................... 11
CHAPTER TWO ........................................................................................................................ 14
2.0 LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK ................................. 14
2.1 Introduction ......................................................................................................................... 14
2.2 Overview of Management Functions .................................................................................. 15
2.3 Planning .............................................................................................................................. 16
2.4 Strategic Planning ............................................................................................................... 24
2.4.1 Government Performance Contracting ........................................................................ 25
2.4.2 Corporate Performance Contracting ............................................................................ 26
2.4.3 The Role of Strategic Planning .................................................................................... 28
2.4.4 Advantages and Disadvantages of Strategic Planning ................................................. 31
2.5 Facilities Management ........................................................................................................ 32
2.5.1 Facilities Management Functions ............................................................................... 36
2.5.2 Outsourcing in Facilities Management ........................................................................ 37
2.5.3 In-House Provision of Facilities Management Functions ............................................ 42

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 2.5.4 Challenges and trends in Facilities Management......................................................... 43
2.5.5 Trends and Emerging Issues in Facilities Management .............................................. 46
2.5.6 Critical Role of Performance Measurement Systems for Facility Management ......... 47
2.5.7 Conclusion on Facilities Management ......................................................................... 48
2.6 Conceptual Framework ....................................................................................................... 48
CHAPTER THREE .................................................................................................................... 51
3.0 CASE STUDY AREA AND RESEARCH METHODOLOGY ................................... 51
3.1 Introduction ......................................................................................................................... 51
3.2 Rational for Case Study ...................................................................................................... 51
3.2.1 Area of Study ............................................................................................................... 51
3.3 Research Methodology ....................................................................................................... 52
3.3.1 Research Design........................................................................................................... 54
3.3.2 Population .................................................................................................................... 55
3.3.3 Sampling Technique and Procedure ............................................................................ 55
3.3.4 Sample Frame and Size................................................................................................ 56
3.3.5 Variables of the study .................................................................................................. 59
3.4 Data Collection Instruments ............................................................................................... 60
3.4.1 Secondary Data ............................................................................................................ 60
3.4.2 Primary Data ................................................................................................................ 60
3.5 Data Analysis and Presentation .......................................................................................... 61
CHAPTER FOUR ....................................................................................................................... 63
4.0 DATA PRESENTATION AND ANALYSIS ...................................................................... 63
4.1 Introduction ......................................................................................................................... 63
4.2 Response Rate of questionnaires administered and interviews .......................................... 63
4.2.1 Characteristics of the sample ....................................................................................... 63
4.2.2 Response Rate .............................................................................................................. 64
4.3 Section 1: PCK Staff’s Perspective..................................................................................... 65
4.3.1 Does Postal Corporation of Kenya (PCK) have a Corporate Strategic Plan? .............. 65
4.3.2 What does the PCK’s Corporate Strategic Plan entail? ............................................... 66
4.3.3 Does the period of three years outlined in the Corporate Strategic Plan of PCK affect
the overall implementation of the objectives of the Corporation? ........................................ 66
4.3.4 How can you rate the implementation of the Corporate Strategic Plan in the
Corporation? ......................................................................................................................... 67
4.3.5 How can you rate the following roles of Facilities Management department in the
Corporation in line with the implementation of the Corporate Strategic Plan?.................... 68
4.3.6 How can you rate the implementation of the objectives of the Facilities Management in
line with the Corporate Strategic Plan? ................................................................................ 69
4.3.7 Do you consider Facilities Management department to have been contributing towards
the attainment of the Corporation’s goals? ........................................................................... 69
4.3.8 How can you rate the following performance management and measurement tools used
at PCK to measure the implementation of the overall body Corporate’s goals? .................. 70
4.3.9 What are the Facilities Management department’s main objectives in line with the
Corporate Strategic Plan ....................................................................................................... 71
4.3.10 What are the functions of the Facilities Management department in the Corporation
............................................................................................................................................... 72

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 4.3.11 Are there enough resources allocated to Facilities Management department to facilitate
implementation of the objectives of the Corporate Strategic Plan ....................................... 72
4.3.12 What are the other PCK avenues that contribute to the growth of revenue in Facilities
Management department ....................................................................................................... 73
4.3.13 Do the roles in Facilities Management departmental override with the overall
Corporate Strategy’s functions? ............................................................................................ 74
4.3.14 What are the challenges faced in Facilities Management department during
implementation of the objectives .......................................................................................... 74
4.3.15 What are the possible improvements that can be employed to streamline the challenges
being experienced in Facilities Management department ..................................................... 75
4.3.16 (a) Establishing the Strategic Foundation .................................................................. 76
4.3.17 (b) Managing strategic plan implementation ............................................................. 77
4.4 Section 2: PCK Tenants’ Perspective: ................................................................................ 79
4.4.1 Are the health and safety issues of the building occupants adhered to by the Facilities
Management department? ..................................................................................................... 79
4.4.2 Is the physical environment of PCK well managed and conducive to work in? ......... 79
4.4.3 Is the working area cleaned adequately and frequently enough to the expected
standards? .............................................................................................................................. 80
4.4.4 Are the maintenance and repair issues undertaken as and when required? ................. 81
4.4.5 Is the staff in the Facilities Management department competent enough with the required
skills to undertake the roles of the department?.................................................................... 81
4.4.6 Timely provision of various Facilities Management parameters at PCK .................... 82
4.4.8 Recommendations on how to improve the general state of Postal Corporation of Kenya
buildings ................................................................................................................................ 83
4.5 Section 3: PCK Customers’ Perspective ............................................................................. 84
4.5.1 Gender of respondents ................................................................................................. 84
4.5.2 Quality of service ......................................................................................................... 84
4.5.3 Process of problem solving .......................................................................................... 85
4.5.4 Quality of customer service ......................................................................................... 86
4.5.5 Time taken by customer service representative to solve a customer’s issue ............... 86
4.5.6 Knowledge of customer service representative ........................................................... 87
4.5.7 Wait time for a customer to be attended to .................................................................. 87
4.5.8 Overall satisfaction with security status while receiving service from PCK ............... 88
4.5.9 Overall satisfaction with general conditions of the premise while receiving the service
............................................................................................................................................... 88
4.5.10 What were the possible ways you would recommend to improve the general state of
business at PCK?................................................................................................................... 89
4.6 Key Data Findings .............................................................................................................. 89
CHAPTER FIVE ........................................................................................................................ 91
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ........... 91
5.1 Introduction ......................................................................................................................... 91
5.2 Summary of Findings .......................................................................................................... 91
5.3 Findings on Facilities Management .................................................................................... 92
5.4 Conclusions of the Study .................................................................................................... 92
5.5 Recommendations of the Study .......................................................................................... 94
BIBLIOGRAPHY ....................................................................................................................... 97

x
APPENDIXES ........................................................................................................................... 107
Appendix 1: Questionnaire for Postal Corporation of Kenya (PCK) Staff ......................... 107
Appendix 2: Questionnaire for Postal Corporation of Kenya (PCK) Tenants ................... 112
Appendix 3: Customers’ Interview Evaluation Form ........................................................... 114

LIST OF TABLES
Table 4.1: Target Population......................................................................................................... 64
Table 4.2: Response Rate Analysis of Questionnaires administered ............................................ 64
Table 4.3: Response Rate .............................................................................................................. 65

LIST OF FIGURES
Figure 4.1: Does Postal Corporation of Kenya (PCK) has a Corporate Strategic Plan? .............. 65
Figure 4.2: What does the PCK’s Corporate Strategic Plan entail? ............................................. 66
Figure 4.3: Does the period of three years outlined in the Corporate Strategic Plan of PCK affect
the overall implementation of the objectives of the Corporation? ................................................ 67
Figure 4.4: How can you rate the implementation of the Corporate Strategic Plan in the
Corporation? ................................................................................................................................. 67
Figure 4.5: How can you rate the following roles of Facilities Management department in the
Corporation in line with the implementation of the Corporate Strategic Plan? ............................ 68
Figure 4.6: How can you rate the implementation of the objectives of the Facilities Management
in line with the Corporate Strategic Plan? .................................................................................... 69
Figure 4.7: Do you consider Facilities Management department to have been contributing towards
the attainment of the Corporation’s goals? ................................................................................... 70
Figure 4.8: How can you rate the following performance management and measurement tools used
at PCK to measure the implementation of the overall body Corporate’s goals? .......................... 70
Figure 4.9: Facilities Management department’s main objectives in line with the Corporate
Strategic Plan ................................................................................................................................ 71
Figure 4.10: Functions of the Facilities Management department in the Corporation ................. 72
Figure 4.11: Are there enough resources allocated to Facilities Management department to
facilitate implementation of the objectives of the Corporate Strategic Plan ................................ 73
Figure 4.12: Other PCK avenues that contribute to the growth of revenue in Facilities Management
department..................................................................................................................................... 73

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Figure 4.13: Do the roles in Facilities Management departmental override with the overall
Corporate Strategy’s functions? .................................................................................................... 74
Figure 4.14: Challenges faced in Facilities Management department during implementation of the
objectives ...................................................................................................................................... 75
Figure 4.15: Possible improvements that can be employed to streamline the challenges being
experienced in Facilities Management department....................................................................... 76
Figure 4.16: Establishing the Strategic Foundation ...................................................................... 77
Figure 4.17: Managing strategic plan implementation ................................................................. 78
Figure 4.18: Adherence of health and safety issues of the building by Facilities Management ... 79
Figure 4.19: Is the physical environment of PCK well managed and conducive to work in? ...... 80
Figure 4.20: Is the working area cleaned adequately and frequently enough to the expected
standards? ...................................................................................................................................... 80
Figure 4.21: Are the maintenance and repair issues undertaken as and when required?.............. 81
Figure 4.22: Is the staff in the facilities management department competent enough with the
required skills to undertake the roles of the department? ............................................................. 81
Figure 4.23: Timely provision of various parameters of PCK...................................................... 82
Figure 4.24: Rating of the level of functionality and effectiveness of facilities management
department..................................................................................................................................... 83
Figure 4.25: Recommendations to improve the general state of PCK .......................................... 83
Figure 4.26: Gender of respondents .............................................................................................. 84
Figure 4.27: Quality of service ..................................................................................................... 85
Figure 4.28: Process of problem solving ...................................................................................... 85
Figure 4.29: Quality of customer service ...................................................................................... 86
Figure 4.30: Time taken by customer service representative to solve a customer’s issue............ 86
Figure 4.31: Knowledge of customer service representative ........................................................ 87
Figure 4.32: Wait time for a customer to be attended to .............................................................. 87
Figure 4.33: Overall satisfaction with security status while receiving service from PCK ........... 88
Figure 4.34: Overall satisfaction with general conditions of the premise while receiving the service
....................................................................................................................................................... 88
Figure 4.35: Recommendations on improving general state of business at PCK ......................... 89

xii
 LIST OF DIAGRAMS
Diagram 2.1: The following are the six functions of a Facility Manager ..................................... 16

LIST OF CHARTS
Chart 2.1: Conceptual framework for Facilities Management...................................................... 50

LIST OF MAPS
Map 3.1: View of Postal Corporation of Kenya Buildings in Nairobi and Lower Eastern Regions
....................................................................................................................................................... 52

xiii
 CHAPTER ONE

1.0 INTRODUCTION
1.1 Background of the study
Most if not all organizations’ or companies’ drive is to ensure viable comparative advantage among
its competitors besides being considered effective amid the various demands and needs of the
shareholders and that of the staff. Strategic planning has gained more relevance in most organizations
today as a result of the influence it has had on the organization’s economic growth as well as success
of both the organization and the staff. Strategic Management in an organization, fully depends on the
strategic planning which acts as its pillar as the process is key in strategic management. Wagner
(2006), views strategic planning in an organization as a very significant process because it links
strategic planning and goals to budgets, provides strategic formulation and scans the environment for
the success of the organization. The aim of this study was to establish the impact of organization’s
strategy on Facilities Management with a case study of Postal Corporation of Kenya, (PCK).

1.1.1 Strategy
As the business world changes and grows rapidly in complexity and uncertainty, strategy has become
a critical focus for many public and corporate institutions. The term strategy, has its main uses in the
military and business fields. In the former, it means “the discipline and skill of the military combat
as applicable in the general preparation and execution of combat operations in large scale. In business
terms, it means the establishment of long-term goals and objectives of an organization’s as well as
the implementation of actions and allocation of resources necessary for achieving the goals (Chandler,
1962). According to Cotts et al., (2010), strategy is an integrated, all-inclusive and cohesive action
plan deliberately intended to guarantee that the basic objectives of an organization are realized.

Porter & Clark, (2000), define organization strategy as a set of objectives set by an organization, the
manner in which such goals will be attained and an evaluation model to review the performance of
the success of such a plan. It comprehensively states all about an organization’s mission and vision.
It is the framework integrating what an organization ought to achieve and the stream of actions to be
implemented within a stipulated time frame. Strategizing entails goal setting, coming up with an
action plan as well as resource mobilization to place the company in a position to compete
aggressively in its industry. The role of strategic planning is bestowed to the senior management. As
the organization strives to adjust to its environment, strategy can either be planned or viewed as a

1
pattern of activity (Powell, 1992). Generally, strategy includes procedures revolving around
formulation and enactment. Strategy, moreover, can be defined as the enterprise’s response to the
environment over certain duration. Strategy tries to relate to both human and non-human resource of
the organization as well as the threats and challenges brought about by the external environment
(Albert et. al., 2009).

1.1.2 Strategic Management

Strategic Management formulates the strategy, usually for a period not less than five years. The
strategy is also documented in the strategic plan in order to ensure that the personnel understand the
organization’s goals, the activities required for the attainment of these goals as well as understand all
other crucial essentials required during the planning processes (Hambrick, 1990). The strategic plan
serves as a point of reference for most organization during assessment and making of sound judgment
from the time period covered by the company’s strategy as it covers all departments within the
organization and at all levels. According to Charles W. L. Hill, Gareth R. Jones (2009), planning is
usually implemented by strategic management. Planning is charged with the responsibility of
conclusively including the various progressing events and procedures that the enterprise uses.
Analytically, planning organizes the resources and actions in line with the organizations’ mission,
vision and strategy. Implementation of strategic management activities provides a feedback
mechanism on which the static plan can be used in making decisions in the organization. This means
that, there will be growth and evolution of plans due to changes in the circumstances and
requirements. For an organization to have systematic execution and implementation of a strategy, it
is necessary to have strategic management in place (Hesterly and Barney, 2010).

The basic elements of strategic management include Strategic Planning and Control. Formulation and
implementation of strategies during the strategic planning process forms the basis on which the
overall plans are devised. Planning process consists of activities which involves inputs with
outcomes.

The planning processes, just as any other processes, have its own challenges. This can either be
official or unofficial and generally sequential with a mechanism that gives feedback in each stage of
the processes. The process can either be incessant while others can be independently executed and
have a separate commencement time for a specific duration after which it expires or comes to an end.
Strategic planning offers alternatives necessary for critical assessment and acts as a benchmark for

2
the actual strategic formation. At the end, the main aim is to ensure that the organization’s strategy
captures the guidance policy the organization proposes to implement, with an aim of achieving its
goals and objectives. It also includes the crucial action plans, initiatives necessary to achieve this
guidance policy, as well as include an analysis of both the internal and external environment
(Kaufman et.al, 2003).

According to Michael Porter (2008), the formulation of competitive strategy considers four key
elements throughout the strategic planning process which are outlined as Company’s strengths and
weaknesses, Industry opportunities and threats, Personal values of the key elements and broader
expectations of the society. The industry opportunities, threats and broader expectations of the society
relate to the external environment as well as the company, whereas the company’s strengths,
weaknesses and personal values of the key implementers, relate to the internal environment to the
company. Through strategic control, it ensures that the recommended plan is implemented as
expected to produce the desired results. Basically, there are three types of planning and controls which
are categorized as strategic planning and control, technical planning and control and management
planning and control, (Robert, 2012).

1.1.3 Operational Management

Operational Management is the administration of business practices to create the highest level of
efficiency possible within an organization. Basically, it deals with the conversion of materials and
labour into finished goods produced at the minimal costs and services as efficiently as possible, so as
to maximize all the required profits of an organization (Kerean, 2012). It also involves the
responsibility of meeting customers’ requirements by utilizing the least resources for business
operations. Its main managerial element deals with the general management of both the physical and
technical functions of an organization (Aunatovic, 1991). This program basically includes principle
instructions of the general management and maintenance of equipment, manufacturing and
production systems, cost control, materials planning, among others. Operational Management picks
set strategies from the senior management and factionalize them into action plans (Hambrick, 2004).
Operational Management deals with the daily management of operations within the facilities. The
activities involved are concerned with achieving efficiency, quality and innovation. According to the
functional model of Hill and Jones’ (1995), activities will be stipulated by individual lease agreements
but usually, involve maintenance of the facilities on a daily basis. It includes general maintenance,

3
cleaning, minor repair work, and security of facilities for effective and smooth running of the core
business.

1.1.4 Facilities Management

Facilities Management is deemed to be a professional management discipline that focuses on the
efficient and effective delivery of support services in an organization. It tends to bring together the
integration of different people, places, systems, processes, and technology in order to achieve its goal.
It has several functions such as maintenance and repair work, health and safety of occupants, catering,
and provision of security, cleaning, fire safety, tendering and invitation of contractors (Nutt, 1999).

Facilities Management need to be dynamic, with continuous innovation on how they handle
organization’s assets and facilities, with an aim of reducing costs and increasing value to any
organization. These can be achieved through tactical Facilities Management planning process which
entails visualizing the future of the organization. This involves connecting the overall plans of the
organization to its purpose while developing its goals, action plans and objectives, towards attaining
the future it envisages (Alexander, 1996). The International Facility Management Association
(IFMA) emphasizes that tactical Facilities Management planning ought to be long term, for a period
of two to five years. This period should encompass a whole range of portfolio either owned or leased
spaces with an aim of establishing the plans and goals of Facilities management, in line with the
company‘s plans. This would mean that, short-term tactical plans should be influenced and decided
by the plans and goals of FM including decisions on funding and prioritization of annual related
activities. The International Facilities Management Association (IFMA), went ahead and identified
nine major elements of FM to be emergency preparedness, communication, general business
continuity, sustainable environmental stewardship, funding of business, skilled and unskilled labour,
strategic leadership, operations and maintenance, project management, quality; real estate and
property management, and technology (IFMA, 2009). Facilities Management plays a crucial role in
business activities for competitiveness, implementation and achievement of set objectives of an
organization. Facilities managers have thus developed robust strategic Facilities Management
mechanisms and frameworks. These strategies are dependent on the organizations’ culture and
opportunities in the industry (Gagendran, 2000).

However, some organizations use specialists for the services they provide in Facilities Management.
According to Chotipanich (2004), in cases such as these, specialists may work for a firm that offers
specific Facilities Management functions. Some of the typical tasks provided may include,

4
Preparation of tender documents for contractors, general project management, supervision of
contractors’ works on site, identification of spaces for leasing. All these are geared towards achieving
maximum value for money. Other tasks may include planning for future development in accordance
with the set strategic business objectives. Further, other tasks include minimum disruption of core
activities through managing and leading change, directing, organizing and formation of essential
central services such as response, sanctuary, preservation, mail, archiving, cleaning, waste disposal
and reprocessing. All these are geared towards ensuring that the building meets the required health
and safety standards. Facilities Management ensures that the amenities comply with required
legislation, keep staff safe, strategize for best allocation and spaces utilization and assets for new
buildings, or re-strategizing current premises. Others ensure agreements on service level agreement
are achieved (Collings, 2007).

1.1.5 Performance management and measurement

For an organization to achieve its objectives, there is need for appreciation and encouragement of
staff and this process can be attained through performance management. By agreeing on what needs
to be done and how achievements will be measured, performance management and measurement
creates shared understanding on how performance should be improved, (Armstrong, 2006).
Kennerley and Neely (2002), disputes that good performance management system focuses on
outcomes and not outputs. In government ministries and parastatals, performance management is seen
as a form of political communication (Lin & Lee, 2011). Further, it is also taken as a tool that aims
at aligning the goals of the organization in a manner that creates a shared vision for a common goal.

According to Armstrong and Barron (1998), performance measurement is discussed as a process that
establishes achievements and associated gaps in order to provide feedback. Brackertz and Kenley
(2002), argues that in the public sector, performance measurement lead to data that feeds in to public
policy and what is supposed to be measured should be measured by a quality performance
measurement. Performance indicators are meant to measure performance based on the performance
contracts. Letsoalo (2007) argues that individual and organization performance is enhanced by
performance measurement. Mackie (2008), states that if there is ownership at all levels, performance
will certainly succeed. According to Kariuki (2012), positive consequences do not always lead to
performance measurement. The commonly applied performance measures are Government
performance contracting, corporate performance contracting, Profitability Index analysis, customer

5
satisfaction baseline survey, staff satisfaction baseline survey, among other key performance
indicators.

1.2 Problem Statement

An organization strategy is found and formulated with reference to the organization’s mission and
vision. Many organizations have Facilities Management sections or departments, categorized as
auxiliary divisions besides their core business. Such departments are considered to be providing
support services hence allocated less attention with either less or no budget allocation compared to
the core departments that are said to be of essence to the organization. This is brought about by the
fact that most organizations are inclined towards growth of revenues and profits realization. In
developing such corporate strategies, less or no consideration is given to Facilities Management
forcing the entire department in - charge of physical facilities to lag behind as well as lack basic
resources needed to facilitate management of the facilities. This result in under achievement of the
organization’s set objectives (Dell, 2008).

Further, the time period covered in the Corporate Strategic Plan of three to five years is often too long
considering the dynamic nature surrounding Facilities Management. This wanton mismatch has been
created by various factors which can be outlined as inadequate planning techniques, inadequate
management skills, lack of Life Cycle Costing Techniques, inadequate use of building maintenance
information system, and imperfect integration between company strategies and Facilities
Management needs and timing. In addition, in a bid to attain the underlying objective of the
organization strategy to grow revenue, most corporations have opted to diversify in other income
generating sources and adopt technology in order to enhance efficiency. One such Corporation has
been Postal Corporation of Kenya (PCK). Initiatives to increase the Corporation's revenues include
payment of services, courier and parcels, mails services, asset management income, Posta Rangers
Sponsorship, and new business initiatives such as commuter buses. However, all these revenues are
cut down by the inevitable baggage of outgoings through payments made for utilities such as water
and electricity. Before the Corporation let out space to individual companies, institutions, as well as
to Huduma Kenya, payment of utilities bills in all the Post Office premises within the country was
approximately Kenya Shillings sixty four (64) million per annum. This has since increased to Kenya
Shillings One hundred and twenty three (123) million per annum. This has seen a doubling of the
outgoings spend on utilities which include water and electricity alone.

6
At PCK, the letting process has compromised Facilities Management services in several aspects. For
instance, it has led to diversion of the Corporation from its core business and instead facilitated an
avenue for PCK to become a landlord to various tenants. This has compromised staff and customer
satisfaction, leading to inconveniences to other users of the building. Letting of such space to clients
such as Huduma Kenya countrywide has also raised security concerns within the buildings,
prompting the organization to incur extra costs to install security alert systems, hire the services of
extra security guards and facilitate additional employee training to enable them handle the additional
installed security detecting gadgets and human management. The increased population within the
building due to letting has caused a stretch of the amenities such as the need for extra lighting, water,
washrooms, walk ways and air conditioning, hence greater utility bills.

The letting process has also impacted on Facilities Management leading to the establishment of a
whole department altogether, calling for recruitment of employees to handle technical matters
requiring the services of facilities managers, valuers, estate agents, plumbers, electricians, masons,
mechanical engineers and estate agents, among others. Training of existing staff is required so as to
equip them with the required relevant skills, thus incurring additional costs to the Corporation.
Initially, the facilities management department was outsourcing the aforementioned services and thus
minimizing the costs as compared to the currently employed staff on permanent and pensionable
terms.

The letting process has shown negative implications on Facilities Management, as tenants who default
in paying rent tend to seek refuge and protection from the Business Premises Rent Tribunals
established under Section 11 of the Landlord and Tenants (Shops, Hotels and Catering
Establishment) Act, Cap 301 of the Laws of Kenya. This is a process that denies the Corporation
revenue as well as subjecting it to court cases, necessitating for additional expenses in hiring of
external lawyers to handle the cases. Introduction of new additional tenants into a building has led to
exceeded carrying capacity of the building. This was from approximately twelve square meter per
person to four square meter per person for before and after entry of tenants respectively, hence
violation of the Building by – laws in the Building Code of 1968 which advocates for an average of
approximately ten square meter per person in an office premise. This has led to interference with the
health and safety requirements and poor working environment. This has further compromised the
frequency of repairs, maintenance and replacement of the facilities, as attention shall be required
more frequently than had been planned by the department. Further, the then existing information

7
system within the Corporation was rendered inoperative from the entry time of tenants in the year
2013, leading to a lapse not only in the Facilities Management department, but also in the entire
Corporation. For instance, if Huduma Kenya was to pay rent to the Corporation using the prevailing
market rates, the Corporation would be getting revenue of close to Kenya shillings two hundred and
twenty million per annum.

Maintenance and repair works include masonry, plumbing, carpentry, welding, electrical and
mechanical works for physical aspects of a building. With more occupants within a building, the
frequency of the repair and replacement works are deemed to increase. For instance, there will be
more repairs in the kitchens, toilets and washrooms plumbing system due to the increased usage of
the facilities by the tenants. At PCK, repair works spilled beyond the approved budgeted amounts of
Kenya Shillings one hundred and twenty Million, annually, to an increased budget of Kenya shilling
two hundred million, annually for the Corporate’s Strategic Plan budget for year 2013/2016. This led
to great conflicts between the Facilities Management and Finance departments. This can be
demonstrated by the increased budgets set aside for repair and maintenance works by the Corporation
countrywide. For instance, there has been an increase by over 66% in the budgets set aside for repair
and maintenance works in the successive years since the Corporation let out its space to the individual
companies, Institutions and Huduma Kenya in October 2013. Lack of adequate funds to facilitate
timely attendance to the defective works has steered to weakening in the value and functionality of
facilities, hence poor management of the entire building. This is because the strategic plans for the
Corporation had not foreseen the dynamics of the budget allocations and thus leading to poor
performance measures in the performance contracts, which lead to failure to achieve the annual
performance targets signed between Postal Corporation of Kenya and the Government of Kenya.

Lastly, health and safety concerns of a building as required in the building by – laws are bestowed to
the Facilities Manager. An increase in population will require an increased level of lighting facilities,
ventilation measures, escape routes, fire extinguishers, accessible corridors, entrances and exits,
among others, within the building. All these additional facilities attract an increase in cost as expense,
hence reduction in profits and accrued revenue. During budget discussions, the management might
cut down the proposed budgets for maintaining facilities in the Corporation, which will in turn affect
the smooth running and functions of the facilities. At various PCK buildings, there has been evident
crowding along corridors and stairways, necessitating the need for additional ventilation, lighting,
entrances and exit routes. The increased staff population has necessitated the need for open plan office

8
implementation in order to maximize the available sitting space arrangement, as they cannot be
accommodated in offices. This has affected staff morale and satisfaction hence low performance
output. Most of the tenants who have leased space from PCK for their operations have constructed
extensions or additional structures within the organization’s premise. These have caused obstruction
that could lead to various accidents within the building. Further, the premises have no adequate
facilities resulting to poor working environment, rendering the premises a health hazard. Leasing of
these premises has facilitated hiving off of the leased space or plots, and eventually grabbing and
forgery of ownership documents, rendering the Corporation vulnerable.

1.3 Study Objectives

1.3.1 Core Objective

The core objective of this study is to establish the impact of an organization’s strategy on the
performance of Facilities Management.

1.3.2 The specific objectives

1. To find out the degree at which Facilities Management function has been incorporated in the
strategic plan of PCK.
2. To investigate the extent of the level of implementation of the corporate strategic policies and
action plans on Facilities Management for PCK.
3. To evaluate the impact of Facilities Management in the achievement of strategic goals or
objectives of PCK.
1.4 Research Questions
1. To what extent does the strategic plan incorporate Facilities Management at PCK?

2. What is the level of implementation of the Corporate Strategic Policies and Plans for PCK?

3. What is the impact of the strategic plan on the starring role of Facilities Management and its
impact to the general presentation of PCK?

1.5 Justification and Significance of the Study

Strategic planning and its implementation is part and parcel of how a company will perform in the
market and in delivering products to the customers ensuring that their satisfaction is attained. Such a
study will be of great importance to management of PCK and Facilities Management team’s
objectives as it shall help determine how the two can be intertwined to ensure that the corporate goals,
Vision and Mission are attained simultaneously. The study will focus on how management decision

9
making system and policy formulation framework will impact in the proper functionality of the
Facilities Management. The research analysis will help other corporations and parastatal
organizations make informed decisions during policy and strategy formulation on how facilities
within the company can be managed for enhanced creation of revenue as well as realization of their
goals. For instance, In PCK, planning techniques, management, Life Cycle Costing techniques and
building maintenance information system are the key troubles which manifest themselves into
undesirable situations in management of office building facilities at the Corporation.

The study will look into various models of Facilities Management for various users, investigate the
challenges faced within each spectrum and recommend appropriate management practices in office
buildings by capitalizing on the weaknesses unveiled in the research. Further, office buildings at PCK
tend to deteriorate in physical outward look hence affecting the overall performance of the building.
Other buildings are issued with various statutory notices while in others tenants tend to vacate due to
unbearable tenable situation. This information will be useful in setting out an information system for
building maintenance and repairs for PCK and other body corporates and incorporate more weight
towards Facility Management in their corporate planning.

1.6 Study area and scope

The study shall focus on company strategies that have the relevant effect on Facilities Management
and factors suitable for enhanced Facilities Management practices in office buildings at Postal
Corporation of Kenya in Nairobi County.

In the study, Postal Corporation of Kenya (PCK) buildings in Nairobi and Lower Eastern regions
were taken to represent Kenya as a whole. These buildings were categorized into nine areas that
include: Teleposta Nairobi (GPO), Ronald Ngala, Machakos, City Square, Tom Mboya, Kitui,
Kibera, Makueni and Kiambu (Thika).

1.7 Organization of the Study

This study is organized into five main chapters outlined as follows: -

Chapter One:

The chapter consists of study background, statement of the problem, objectives of the study,
hypothesis, scope, justification and significance of the study, methodology intended to carry out the
research as well as definition of key terms.

10
Chapter Two:

This chapter reviews the literature concerned with the historical review from previous studies
undertaken by different scholars identifying the relevant factors suitable for enhanced Facilities
Management practices in office buildings.

Chapter Three:
The chapter involves the research methodology. It shall rationalize methodology relevance employed
in conducting the study. It shall also comprise of the research design, target population, samples, data
requirements, collection tools, criteria for measurements and their variables, procedures for data
analysis and employed methods.
Chapter Four:

The chapter consists of data analysis, descriptions, presentations and discussion on findings. It shall
also consist of structured questions generating measureable data while amorphous questions
generating qualitative data. It shall also comprise the quantitative data that shall be evaluated through
use of descriptive statistics and presented tabulation form, bar charts and pie charts. Through the use
of content analysis qualitative data shall be attained. It provides outcomes of the data analysis,
information provision that forms basis for discussion, conclusion, and interpretations of the findings
and recommendations of the study.

Chapter Five:

This chapter covers elaborate discussions, conclusions and endorsements based on the study
outcomes. These chapters also suggest areas for further research. This shall then be followed by the
Reference section and appendices.

1.8 Definition of key terms

Strategic Facility Plan: this is a period of two to six-year facility plan, incorporating an entire
portfolio of owned and /or leased space that sets strategic facility goals based on the organization’s
strategic business objectives. The strategic facility goals, in turn, determine short-term tactical plans,
including prioritization of and funding for annual facility related projects.

Strategic Facility Planning: The process by which a facility management organization envisions its
future by linking its purpose to the strategy of the overall organization and then developing goals,

11
objectives and action plans to achieve that future. The result of the strategic facility planning process
is the strategic facility plan.

Strategy: A plan of action or policy designed to achieve a major or overall aim or method or plan,
chosen to bring about a desired future, such as achievement of a goal or solution to a problem.

Technique: Effective tools for planning, scheduling and controlling a facility management.

Facility Management: A profession that encompasses multiple disciplines to ensure functionality of

the built environment by integrating people, place, process and technology.

Life Cycle Costing: The total cost of ownership over the life of an asset.

Life Cycle Cost Analysis (LCCA): Is a tool to determine the most cost – effective option among
different competing alternatives to purchase, own operate, maintain and finally dispose of an object
or process when it is equally appropriate to be implemented on technical grounds.

Analytical Tools: Any process used to evaluate some aspect of an item. Each tool is used for a
specific purpose. Several tools are outlined in this research project.

Balanced Scorecard: A business performance measurement system, developed by Robert S. Kaplan

and David P. Norton that provides a method to align business activities to its strategy, and monitor
performance of strategic goals over time. The balanced scorecard is a top down method of translating
an organization’s mission and strategy into tangible linkages, interrelationships, specific activities,
and measures necessary for success. A good balanced scorecard may take into consideration
employee satisfaction, cost metrics, productivity metrics, etc.

Building Condition Assessment: A complete review of the current state of a building, to determine
their current condition and estimated cost to correct any deficiencies. It is provided in a report format,
often including photographs and diagrams outlining problem areas, needed updates or improvements
and problems.

Capital Improvement: A structure or major piece of equipment that is built or installed to

permanently add value and capacity to a particular property.

Gap Analysis: Technique for determining the steps to be taken in moving from a current state to a
desired future state.

LCC – Life Cycle Costing: The process of determining the cost of a building over its lifetime, in
present value terms, which includes all costs associated with the planning, design, construction,

12
operations, maintenance and capital improvements over time, less any residual value and ultimately
the cost of disposing of it.

IRR – Internal Rate of Return: The discount or interest rate at which the net present value of an
investment is equal to zero.

NPV – Net Present Value: An analytical tool used to evaluate the returns on a project or investment
using projected cost of money (interest or hurdle rate) over time.

ROI – Return on Investment: The ratio of money gained or lost on an investment relative to the
amount of money invested. ROI does not indicate how long an investment is held.

Payback Period Analysis: An analysis tool used to calculate the period of time required for the
return on an investment to repay the sum of the original investment.

TCO – Total Cost of Ownership: A financial estimate designed to help facility managers assess the
total cost of planning, designing, constructing, operating and maintaining a building.

Scenario Planning: The testing of business strategies against a series of alternative futures

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 CHAPTER TWO

2.0 LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

2.1 Introduction
It is without any doubt that most of the research has proven that strategy resonates well with most
organizations, which leaves an impact on virtually every aspect of it and on how they conduct their
businesses, from how they identify and choose their suppliers and what they supply, to how they
provide support and resources to their customers (Chandler, 1962).

Kvint (2009), describes strategy as a system and roadmap of trying to find, formulate as well as
develope a document that will aid in implementing long-term plans if administered in the required
manner. This means that, during uncertain times in an organization, it is easier to turn to strategy to
seek for direction on where the organization should be headed without necessarily overlooking its
past position and the current situation. Strategy can, therefore, be equated to clairvoyance of the
business, where all essential aspects of the organization can concentrate and rally on.

Strategic planning and strategic management have been confusing and the two have been used
interchangeably. However, the distinction between the two results from the focus one exerts on a
specific component or procedure of a process or on where a process comes to a halt the other begins.
Strategic management and strategic planning, therefore, may differ in definition, but the two go hand
in hand and are distinct from each other. Strategic planning focuses on formulating a direction for an
organization while strategic management aims at achieving these directions formulated at strategic
planning stage (Bozeman and Straussman, 1990).

Strategic management is the process that involves implementation and development of plans and
supports the objectives and goals of an organization. It is a process that is endless, dynamic and
inversely proportional to chances in the objectives and goals of an organization. By engaging in
strategic management, it ensures that organizations remain relevant with the current trends and
globalization changes. Strategic management encompasses numerous significant models relevant in
the improvement of the goals of an organization (Wicks, 2014).

Organizations’ growth requires guidance from formulating efficient plans and an appreciation of the
organization’s goals and objectives (Root, 2014), whereas, Taylor et. al (2005), believed that analysis,
decisions, and actions are the components in strategic management necessary to achieving these
plans. Strategic management, therefore, aims at analyzing both the inner and outer environment of
the organization alongside strategic objective, missions and visions of the business. It is paramount

14
that an organization establishes a sustainable competitive advantage over its peers if it is to survive,
and this can be attained through prudent actions, analysis and decision making. This can also be
achieved through strategic management which would entail rational and strategic marketing policy,
development of new products, strategic financials and legal policy, smart human resource, strategic
supply chain and strategic Information Communication Technology. It is a general focus on the
outside and competitive environment of the organization which tries to answer questions prone to
arise.

Whittington et. al. (2008), believe that strategic management involves comprehending the strategic
positioning of any organization, taking strategic actions and choices keeping in mind the future of
that organization. According to McLaughlin et. al (2012), strategic management is a practice that
involves analysis of the organization’s environment both internal and external with an aim of
establishing strategies and distribution of limited resources in an efficient and effective way that will
enable the organization not only being competitive, but also, enable it achieve its goals. Whereas
according to Blatstein (2012), it would not be true to say that strategic management is about predicting
what will happen in future but it is all about preparation of the organization’s future and taking the
necessary steps needed for the implementation of the strategic plan in a competitive way, pitching
the organization at an advantageous position from its competitors.

2.2 Overview of Management Functions

Management can be distinguished as a societal practice which includes economical responsibility and
planning effectively as well as entrepreneurial operational regulations with an aim of attaining certain
obligations. It consists of several fundamentals and undertakings that are usually dynamic in nature.
The undertakings differ from the normal day to day operations such as financials, general marketing,
and purchases among others. Irrespective of the management function, these activities are common
and important in the achievement of any goals in an organization.

According to Henri Fayol (2008), management functions include commanding, coordinating,

planning, organizing and controlling. Whereas, Luther Gulick (1998) defines it as staffing, directing
planning, organizing, coordinating, budgeting and reporting. Warren Haynes and Joseph Massie
(1975) categorizes management functions into organizing, staffing, decision-making, planning,
controlling, directing and communicating. Koontz and O'Donnell classify these functions into
staffing, directing, planning, organizing and controlling. In line with the study, the researcher shall

15
major on the following six as the functions of a Facility Manager which are; staffing, directing,
planning, organizing, controlling and coordinating.

Diagram 2.1: The following are the six functions of a Facility Manager

CONTROLLING PLANNING

DIRECTING STAFFING

ORGANISING

Source: Author, 2018

2.3 Planning
Planning is considered as a key function of management. According to Koontz (2004), Planning is
concerned with 'how’, 'what' and 'when' of performance. It is the present decision about the future
goals and the courses of action for the achievement of the pre-determined objectives. It bridges the
gap from the current status to the future. Planning is the prospective course of actions which exercises
problem solving and decision making. It determines the desired course of action towards achieving
the desired goals.

Planning, therefore, is a methodical rational way of how to accomplish the pre-determined goals. To
ensure that there is appropriate use of human and non-human assets of the organization, planning is
usually necessary. This is pervasive; as an intelligent way of conducting things in a manner that
increases clarity and certainties, while reducing the probabilities of wastage.

16
This, therefore, means the Formulation of short-span and long-span objectives, development of
strategic course of action for adherence during implementation in an organization in order to attain
its objectives; and, Devising techniques, guidelines and policies necessary in the realization of the
plans and strategies.

Organizing is a process that aims at achieving the organization’s goals by combining physical, human
and financial resources, while establishing a prolific correlation amid them. Henry Fayol believes that
business organization entails provision of entirely some of the most valuable for its functionality such
as raw material, equipment, finances and an able workforce. Business organization involves
evaluation and alignment of both human and non-human resources with an aim of achieving the
organization’s mission and vision.

In an organization, identification of actions is required for the attainment of the enterprise plans and
objectives such as classifying the undertakings into employments, assigning of these jobs and
undertakings into departments, while assigning responsibilities and position of leadership for
performance as well as delivering both horizontal and vertical coordination of activities.

Organizing is a process that involves activities identification for required objectives achievement and
plans implementation; grouping of classified activities to create employment; allocating duties to
employees; allocation of authority and creation of responsibility which enables job performance and
to facilitate availability of the necessary resources required in achieving their duties; while promoting
coordinated authority and relationship accountability.

Staffing is the function of an organization structure, manning and keeping it manned is known as
staffing. Due to technological advancement, there has been increase in business size and human
behavior complexity, as a result of staffing in the recent years. Staffing aims at ensuring that labor
correlates to a specific skill. Staffing’s managerial function involves proper and effective selection of
organization structure, through manning, personnel appraisal and training of workforce for
assignment and relocation to a specific department under the structure, (Kootz and O’Donell).
Staffing involves the following:-

(i) Determination of staff population and their capabilities

(ii) Employing adequate number of potential employees on a need basis
(iii) Staff competency during recruitment.
(iv) Induction, orientation and placement.
(v) Training the required skills as per the organization’s policy.

17
 (vi) Performance appraisal
(vii) Transfers, promotions, termination and layoff.
(viii) Remunerations
Directing is a managerial duty with the aim of ensuring that the enterprise methodology works
effectively and efficiently in order to attain its purposes. It is deemed as a stimulus in an organization
aimed at ensuring that the acts of the staff are in line with the planning, organizing and staffing
regulations. It is an inert - personnel feature of management which bluntly deals with guiding,
supervising, influencing, motivating junior employees with an aim of attaining the enterprise goals.
Employees of any organization need direction, and this can be achieved through clarification and
explanation of their expectations in terms of the deliverables. There is need of motivation as well so
as to achieve maximum productivity with enthusiasm and passion. Direction has the following
elements; Communications entails passing raw and processed data vertically or horizontally in an
organizations structure. It bridges understanding among staff; motivating and inspiration, promoting
and inspiring the staff to work with passion. Constructive/progressive, regressive, monetary, non-
monetary incentives can be applicable in such a scenario; supervision as well becomes easy with
communication. It entails surveilling and directing work and staff. Finally, leadership can be viewed
as the practice where a manager offers guidance while encouraging staff to work in a desirable
direction.

Coordination entails establishment of relationships amidst the various aspects of the organization
with an aim of ensuring that they all unite and work towards achieving the organizational objectives.
Further, coordination is the process of tying together organizational decisions, operations, activities
and efforts to achieve unity of action for the accomplishment of organizational objectives.
Follet (2009), highlights the importance of the coordinating process. Organization processes should
be coordinated in a manner that achieves moving together in a systematic way by the manager. It
involves adjusting activities, interlocking and interrelation, linking them in a way that they may work
as a part, and not a congeries of isolated parts, but to function as a whole or as an integrative unit.
Coordination managements function, involves sub-functions such as authority-responsibility
relationships definition, command unit, effective communication, direction unity and leadership
effectiveness.

18
Controlling is considered to be measurement of the achievements versus the standards and correction
of any deviation in order to guarantee realization of the enterprise goals. It ensures that all the
activities are implemented in conformity with the required standards. Control efficient system helps
predict deviations before they actually occur. The process of checking whether or not proper progress
is being made towards the objectives and goals and acting if necessary, to correct any deviation is
known as controlling (Theo Haimann). According to Koontz and O’Donell, controlling measures and
corrects performance activities of subordinates in order to ensure that the desired objectives and plans
of the enterprise are attained.

Controlling is therefore, a function that warrants individual performances; divisional, departmental

and sectional be consistent with the predestined targets. The set target deviations have to be identified,
investigated and mitigated upon. This will help ensure that abnormalities are detected early enough
and measures taken by the management to ensure that everything goes as per the plans and objectives
of the organization.

Controlling, as a management function entails the following; standard performance establishment,

Actual performance measurements against predetermined goals and standards while establishing any
deviations and inconsistencies, and taking corrective action to rectify deviations and inconsistencies
respectively.

Planning entails selection of goals with an aim of determining how to achieve the organization’s
objectives (Taylor, 1989). For effective performance of individuals working together in the
organization, there has to be an enabling environment so as to attain the main purposes, objectives
and goals of the organization. It is, therefore, the manager’s responsibility to ensure that they are well
communicated and understood (Francis, 1992). For effective group effort, staff need to accomplish
their set expectations in accordance to the principle of planning (Gordin et.al, 2013).

Deciding on the organizational position to preparation can, therefore, be seen as the process of
planning. This is a blueprint or basis on which organizations intend to ride on towards accomplishing
there goals. The process of establishing which path amid numerous other paths, the organization
wishes to follow is defined as planning (McDonalds, 1989).There is numerous ways in which goals
can be advanced. It is through planning where one can establish the best way of attaining a particular
goal in an organization.

The purpose of all derivative plans is to aid an organization to accomplish its purposes and objectives.
The activities in an organization are directed by planning. Without planning, staff in an organization

19
would not know what is to be expected of them. Planning facilitates control, acts as a standard
measure and evaluation for performance. Most of the weaknesses in an organization are as a result of
deviations from plans .

For accomplishment of any enterprise objectives, it is logical that planning should precede execution
of all other management functions that are designed to support managerial operations. Further, other
management functions would be impossible without planning.

The other type of plan is the tactical plan which moderates the scope within a specified time frame.
It concentrates on how the existing strategic plans can be implemented, especially the developed ones
dealing with specified resources and time restraints. The main focus is on persons and actions.
Tactical planning is mostly connected with internal supervision in an organization.

The plan with a narrowest focus and shortest time frame is operational plans. It focuses on
achievement of objectives that have short-term activities corresponding to the annual work plan.
These plans can be categorized into; standing plans involves developed strategies to manage regular
and relatively monotonous situations. Policies are also included due to the fact that they are usually
an important guide towards the governance of comparatively important commitments within an
organization. It also includes the standard operating measures as specific guide for managing a series
of regular activities. They eventually form instructions and regulations which entails statements of
how particular actions should be conducted.

The other type of operational plans is single use plans. They are strategically suitable in dealing with
occurrences that happen only once and can be classified as a program or project. A program is a single
use plan for a large set of activities whereas a project usually has narrow latitude than a program.

Given the importance of planning as a function of management, it would be absurd not to factor in
the element of time setting irrespective of the class of plan. Strategies are either categorized as short-
range, intermediate or long range strategies. The long-range planning should cover long period of
time starting from about five years and beyond. In most organizations, top managers are usually
charged with the responsibility of long range planning. The intermediate planning, is the planning
that range in time from one year to five years. Intermediate plans are the primary concern of most
organizations, due to the uncertainties associated with the long range plans. As a result, they are
developed by both top and middle level management. Short range planning forms the basis on which
long range plans are developed. Short range plan is concerned with planning that is for a short period
of time, usually not more than a year. They emphasis on daily events while providing actual

20
assessment based on the progress towards intermediate and long - range plans realization (Gordin,
1989).

In an organization, plans are arranged in a hierarchy that corresponds to the organizations structure.
At each level of implementation, plans have two purposes which include providing the means for
achieving the set objectives in the plans of the next higher level and provide the objectives to be met
by the plans in the next lower level. Planning is a rational approach to accomplishing objectives and
should be considered as a flexible process which takes into account the various changes taking place
in an organization. In an organization environment, objectives must be set in the light of the social,
cultural, political, economic, legal, technological and ethical elements of the organization’s
environment.

For plans to be efficient and effective, their interaction with every element of the environment should
be made complex. However, in an organization several steps have to be followed for achievement of
a successful planning process. The steps in the planning process according to Joseph & Walter (1995),
point out that strategy cannot be random but rather follow certain procedural steps. The steps differ
depending on the kind of strategy; that is, whether the plan is major or minor and the period supposed
to be covered by the plan. They identified eight steps in the planning process as discussed below.

The first step involves identification of opportunities. This step initially involved identification or
predictions of future possible niche with a possible decision on what should be considered as a
weakness or strength in an organization. The manager has a duty of providing a procedure of carefully
probing the competitors, the external environment and customers.

The second step entails objectives establishment. At this step, the management ought to give an
indication of where the organization need to be after a specified period of time. The entire
organization must formulate its main objectives before dissemination of the same to the other
departments.

The third step involves considering the planning premises. The environment at which the plans will
operate need to be conducive. Some of the factors to be put into consideration should range from
what nature of markets exists, what the expected sales are, what will be the charges, at what wage
rates, at this stage, tax rate and policies are deeply put into consideration. In considering planning
premises, the manager establishes and disseminates critical planning premises and obtains utilization
agreements which are data projected for implementation.

21
The fourth step is about determining alternative courses. Once the alternative courses are determined,
implementation of the objectives can follow thereafter.

On the other hand, step five entails evaluating the alternative courses. The prevailing risks, strengths
and weaknesses are examined in detail in line with the set objectives.

The sixth stage involves selection of the main course of action. At this stage, decisions are made to
determine progression of action out of the unconventional courses of action to be selected for
adoption.

The seventh step is on formulation of derivative plans. This will require the support of the major plans
and it entails hiring of staff and formulation of other smaller plans.

The last step involves categorizing the plans by budgeting. This step ensures that the plans are
allocated reasonable budgets to aid in implementation. Budgets which are well formulated result to
significant principles for measurement of organization growth.

The barriers to effective planning can be categorized as environmental barriers, resistance to change,
poor goal setting, time, expense and other constraints. In arrears where environmental barriers have
been identified. In most organizations, the environmental barriers affecting implementation of plans
include; technology, politics and economic conditions. These barriers make it difficult to develop
effective plans as plans may become obsolete even before they are executed.

When unrealistic goals are set, it becomes difficult to implement them. In such a situation, it hinders
effective planning majorly, due to poor goal settings by those tasked with the responsibility.

Planning can be limited by lack of financial resources or time. Thus it takes and the managers face a
lot of pressures that may cause them to resist planning. Expenses on the other hand may be high,
especially, the initial expenses in planning and because an organization’s main aim is profit
maximization, managers tend to shy away from such activities hence hindering the whole process.

Other constraints and the various situational constraints including; government regulations, labour
contracts, natural factors, scarce resources and disasters may all affect planning adversely. These may
be contributed by the fact that it may involve legal issues which organizations tend to limit as much
as possible. At the end, it hampers the main motive behind planning.

Having viewed some of the possible barriers, avoiding the barriers would be a wise move by any
management of any organization. The challenges facing planning can be eradicated once managers
follow certain guidelines.

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Planning should commence from the top whereby, top management should set objectives and policies
that will be followed by others. For any plan to be actualized and be realized, the top management
should be committed by ensuring that the plan they prepare is not only communicated to those under
their authority but they should also own it. Planners should recognize the limits and potential of their
planning. In other words, they need to appreciate the limitations associated with planning.

Communication is vital and managers may be required to have vertical communication with the
employees within an organization’s hierarchy in planning facilitation. Staff should be left to know
their set expectations at all times, schedules, duties, responsibilities and expectations from each one
of them should be well communicated.

Participation in the planning process should not be left to those charged with the responsibility of
formulating policies, but should involve all parties for efficiency and effectiveness of the process.

Integration of the various plans in an organization is of essence as it facilitates implementation of the

long term, intermediate and short-range plans as much as possible. The earlier they are integrated,
the better and more effective the organization’s overall planning system will become.

Managers should develop alternative actions that an organization might follow if conditions change
through contingency planning. McDonald (1986) established that managers need to provide a
conducive environment in which subordinates must plan through a set of guidelines as well as remove
obstacles to planning: - Planning should commence from the highest, be clear, organized and certain.
Strategies, policies and principles must be precise. Planning should include awareness and acceptance
of change.

According to Maslow’s principles of planning theory, nine principles were identified which include;
the principle of contribution to goals of the organization, implying that the plans objective should be
to help the organization achieve its goals. Additionally, the primacy of planning principle requires
that managerial function s be preceded by planning since all other management functions cannot be
performed in the absence of plans.

Efficiency of plans principle requires that efficiency in planning can be achieved if its contribution
towards achieving the goals of the organization is measured visa vise its costs. The canon of
organization principles advocates for healthier considerate of the organization principles for better
coordination of the plans in an organization more carefully.

The basis of policy structure and the strategy principle requires that planners charged with the task of
planning need to be conversant with the strategies and policies for effective planning. The principle

23
of commitment implies that rational planning should factor in the element of time, especially in
future, necessary for overseeing the execution of the plans set initially.

Flexibility principle suggests that, when plans are more flexible, the probability of having losses
continue to become lesser especially if there are many risks involved. Further, the principal of limiting
factor suggests that, choices from the limited options should be made only from those critical factors
in the realization of the set goals. The last principle is that of navigational change which requires that,
as managers continuously plan for the future, they should on a regularly basis gauging the
environment the organization operates in versus the plans set for the future while adjusting them
accordingly with an aim of sustaining relevance.

In respect to other administration roles, universally, the most important component in most
organizations is planning. It revolves majorly around objective setting, policy determination and
decision making. Planning usually requires high intellectual input, innovativeness, premonition and
one with the highest level of shrewdness. Organization is a mental process that requires the use of
logical faculties, imagination, prudence and rigorous judgment. It is only through planning that
managers are able to minimize uncertainty, while improving the organizations sight focus on its goals.

2.4 Strategic Planning

According to Colonel (2013), planning begins by having a strategic plan. Further, the desire to study
planning can be categorized into three main reasons mainly: Strategic planning has increasingly
become a driving force in an organization’s life. In an organization, managers are being evaluated by
the achievements attained through the use and implementation of the strategic plan. Lack of a strategic
plan is starting point for failure in the performance of a manager. In any organization, the first thing
to think about is the presence of a strategic plan and what it entails. It is believed that, Strategic
planning tends to provide the basic framework within which all other forms of planning adopt as a
bench mark. The understanding of a strategic plan and its activities in an organization helps in the
implementation of all the other forms of planning that may be deemed necessary.

The most important component of strategic planning in any organization is the implementation of the
organizational goals. It forms the backbone of strategic planning without which an organization is
not able to achieve its set goals and objectives. Organizational goals give a clear indication on how
the planned activities for the specified period of time are supposed to be implemented. The
organizational objectives, mission and purpose are mostly used interchangeably to mean the set goals
and targets. (Maslow, 1967).

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An organizations’ primary’s role is its purpose as shall be dictated by the prevailing environment.
This not only pertains to a specific institution or organization, but rather organizations of a similar
nature (Siachanoo, 2009).

An organization’s mission should aim at setting it apart from the rest of the other organizations. It is
through the mission statement that an organization specifies its aim as shall be categorized into four
factors namely; the customers, their needs, the products and services they use as well as the values
that tend to satisfy the customers, (Mwirigi, 2014).

If an organization is to achieve its goals, then its targeted objective must be reached. Objectives
involves interpretation of the mission into a more precise and concrete terminology from which
performance can be judged or gauged. Further, strategy provides a comprehensive approach for the
attainment of the organization’s objectives as well as implementing their mission. Managers play a
major role through the use of Programs that aid in formulating the organizations strategy.

In order for an organization to respond well to the environment, strategy if well formulated acts as a
road map through which all the organizational objevtives are implemented and achieved over a
specified duration of time. To achieve the core business of the organization, it is prudent that the
management have a strategy on how to achieve its goals in an efficient and effective way.

Strategy is originally defined as the (long term) plans as well as the actions taken in an effort help an
organization achieve its intended purpose. . In this study, the researcher also includes the concept of
emergent strategy and strategic planning in facility management of the organization, which can be a
prototype that is recurrent over a given duration, keeping in mind that, there might be differences
between the strategy of those that are expected to take the strategic decisions and those that in practice
also has an influence on the strategic decisions. Therefore, the researcher understands the strategic
facility management organization as an organization characterized as a loosely coupled organization
or even better as a network of decision makers, with various roles and relations (Mintzberg, 1994).

2.4.1 Government Performance Contracting

In the Kenyan context, a Government performance contract is a written agreement, between the
Government and a state agency (local authority), State Corporation or central Government Ministry)
delivering services to the public. Quantifiable targets are explicitly specified for a period of one
financial year from July to June and performance measured against agreed targets. The Government
of Kenya introduced performance contracting in the public service on 1st October, 2004 as one of the

25
tools to improve service delivery. It is now being implemented in a majority of the Ministries,
Departments and Agencies (MDA’s) as a result of the benefits that were beginning to be manifested
in participating institutions through improved administrative and financial performance as well as
improved service delivery. Ministries have an obligation to work towards set targets, draw out service
charters with their clients and compare their performance with the best in the world (GOK, 2010).
The Government reiterates in the Economic Recovery Strategy (ERS) as some of the factors that
adversely affect the performance of the public sector. These include excessive principles and controls,
political interference, poor organization, complete negligence and distended staff establishment. The
government has continued to undertake a number of reform measures to improve performance.
However, these measures have not provided a framework for guiding behavior towards attainment of
results or ensured accountability in use of public resources and efficiency in service delivery. The
initiatives lack the performance information system, comprehensive performance evaluation system
and performance incentives system (GOK, 2005).

2.4.2 Corporate Performance Contracting

In accordance with the Kenyan Public Service scene, a Performance Contract is a free negotiation
performance agreement between Government and individuals on one hand and the organization itself
(Kenya, Sensitization Training manual, 2004). Smith (1999) argues that it is a tool for organization’s
executives and policy makers to define responsibilities and expectations between the contracting
parties to achieve common mutually agreed goals as aided by the performance contracting tool.
According to (Greiling, 2006) in precise, performance contracting is seen as a tool for enlightening
public budgeting, promoting a better reporting system and developing an organization’s management
while enhancing efficiency in resource use and effectiveness in service delivery. In conclusion,
(CAPAM, 2005) performance contract is a binding agreement between two or more parties for
executing or refraining them from performing some specified act over a stipulated time . It is a turnoff
of management that controls systems which provide information that is intended for managers in
performing their jobs and to assist organizations in developing and maintaining viable patterns of
behavior.
2.4.2.1 Customer satisfaction baseline survey
These are the surveys undertaken in order to obtain the perception from the customers on the general
conduct of the organization as well as the services and products being provided in the market by the
organization. The baseline survey is geared towards improving the service delivery of the

26
organization and their products. It also helps in solving any emergent complains raised by the
customers as well as identifying solutions on the best way forward (Posta Profile, 2015).

2.4.2.2 Staff satisfaction baseline survey

These are the surveys that are awarded to staff in an organization periodically in accordance to the
work environment, health and safety issues. In order to maintain the required standards, ISO
Certification has been adopted by most firms (Posta Profile, 2015).

2.4.2.3 Performance Appraisal

Performance appraisal, also known as performance review is a structured formal procedure of
interaction between an officer or employee and supervisor. It generally takes the form of a periodic
interview carried out quarterly, semi - annually or annually, in which the employees’ work is
examined and discussed, with an understanding of identifying weaknesses and strengths,
opportunities and resources needed for improvement and skills development (Dulewicz, 1989).

While performance appraisal is an important part of performance management, in itself it is not

performance management but a tool that can be used to manage performance. Performance
Management is a holistic process bringing together many activities that collectively contribute to the
effective people management and organizational performance. The process is considered strategic in
that, it is about broader issues and long-term goals and integrated as it links various aspects of the
business, people management, individuals and teams (Lawrie, 1990).

2.4.2.4 Profitability Index

Profitability Index (PI), also known as the profit investment ratio (PIR) and value investment ratio
(VIR) is a finance tool used by an organization to inform whether an investment should be accepted
or rejected. Profitability index is a useful tool for ranking projects since it allows an organization to
quantify the amount of value created per unit of investment. It also helps an organization in decision
making about whether or not to make a particular investment. The tool uses the time value for money.
This ratio is calculated as:

Profitability Index = Present Value (PV) of future cash flows

Initial Investment

The accept- reject decision is made as follows: A PI which is greater than one is taken to indicate that
present value of future cash flows from the invested amount is more than the initially investment
amount, meaning that, it will earn profit, hence this is accepted. A PI which is less than one is taken

27
to mean a loss from the investment hence rejected. A PI equal to one means that there are no profits
hence the decision on the investment may be accepted or rejected.

2.4.3 The Role of Strategic Planning

According to Stoner (1997), Strategic Planning is solemnly an extensive-range, strategic process used
for defining and achieving the organization’s goals. It entails the formulation of an organizational
goals, mission, analyzing the situation on the inner and exterior organization’s environments,
selection of goals and objectives of the organization, determination of necessary policy and strategic
programs for the achievement of the organizations goals and objectives, establishment of necessary
methods to assure implementation of set strategic programs, policies as well as matching the selected
strategies identified with strengths and risks posed by factors affecting the external environment.

Adam Maslow (1967), outlined six salient characteristics of a strategic plan and identified them as
those that should deal with the axioms of the basic glitches through provision of solutions to queries
on the type of business, what it entails, and who its potential customers should be. It should also
provide a basis for comprehensive planning for daily administrative decision making.

In most cases, individuals may confuse strategic planning and operational planning. In operation
management, the Operational Plan is prepared at the implementation level with its main focus geared
towards efficiency and the actual implementation. However, the Strategic Plan is designed by to
management of an organization and is meant to cover a long term (Colonel, 2013). He further
summarized the main differences between the Operational Plan and Strategic Plan as follows: -

(i) Strategic plan focuses on long term survival and development, whereas, operational plan
mainly focuses on operation problems only.
(ii) Strategic Plan is concerned with future resources environmental constraints while,
Operational plan faces present resources environmental constraints.
(iii) Strategic planning deals with information relating to future opportunities whereas, operational
planning deals with information relating to present business.
(iv) In Strategic planning, rewards are mainly development for future potential, while, in
operational planning, rewards are mainly for current efficiency and stability.
(v) Organization in Strategic planning is mainly flexible and entrepreneurial, while operational
planning is traditionally bureaucratic.
(vi) Leadership for Strategic planning is sensitive to radical change, but for operational planning
is traditionally conservative.

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(vii) In Strategic planning problem solving is flexible and always trying to anticipate new
approaches while, operational planning, problem solving is mainly reactive, relying on past
experience and situation analysis while with. Generally, Operational planning is low risk
while Strategic planning is high risk.
(viii) Strategic planning's objectives advocates on future profits while operational planning's
objective is geared towards present profits.

Bryson (2004), believed that formal planning process normally begins after the mission of the
organization has been established. He identified the said processes as goal formulation which involves
the general setting of the organizational goals. In strategic planning, setting of the organizational goal
is considered to be the most essential activity as it determines the formulation of the objectives as
well as the mission statement. It also helps in translating the mission statement in readiness for
implementation. Managers in this organizations are tasked with the responsibility of identifying all
the objects and align them with the defined mission as formulated.

In an organization, factors affecting the environment aim at establishing the ultimate bearing hence
affecting the level of implementation of its objectives. Other environmental factors influencing
implementation include, social – cultural, economical, political, legal and the ever changing
technology. These are the most vital elements that should be paid attention to by the managers as they
forestall the reaction from the consumers, contractors, competitors and government agencies towards
a new strategy in this level.

Resource analysis after environmental analysis should help pinpoint the organizations competitive
advantage and shortcomings, that is, its strength and limitations. At this stage, management should
be able to answer questions on the strengths, weaknesses and the availability of the required resources
for implementation. It is also at this step that the organizational profiles and associated resources are
developed. Further, the requirement that determine key successes as well as major strengths are also
identified, forming the basis of the strategy. Finally, a comparison between the strengths and
weaknesses as obtained from major competitors can also be deduced for performance improvement
purposes.

The fifth step involves the determination and identification of strategic opportunities and threats
available to the organization. This stage is followed by another that is involved with the determining
of the degree at which the extent of the strategic change is required, with an aim of weighing options
on whether to change or maintain the existing strategy of the organization depending on the prevailing

29
resources and environmental factors. Performance gaps should be identified as a disparity between
ascertained objectives required in the formulation of the goals and the possible outcomes likely to be
attained in the prevailing strategy. Changes in strategy are required if gaps exist and the degree of
change is proportional to the extent of gaps.

Strategic decision making should be the seventh step which entails the actual identification,
evaluation and selection of various strategic approaches. During identification of the alternatives,
there is need for one to view the existing alternatives on how to bridge the performance gap.
Evaluating the various choices normally involve a match making process between existing potential
substitutes and goals, resources and the predicted organizations’ outcome. Best strategy that should
be selected is that which fits best with the organization resources, objectives, goals and conditions.

In an organization, strategy implementation on the other hand, incorporates the selected strategy into
the day to day operations as required. Finally, the last stage of implementation involves the Control
and measurement of implementation progress with an aim of monitoring to ensure that the planned
implementation is undertaken to the required standard, for achievement of the expected results.

Goals are statements of where an organization envisages itself to be after a specified duration of time,
and therefore, acts as targets for an organization to strive and attain. Setting goal targets, provides
organization’s activities with a sense of direction and a clear purpose and hence, short of which would
be chaotic (McKelvie, 1986). An organization without direction would be subjected to the
environmental whims. Planning is impractical without goals. An organization's goal statement is to
some extent described to resemble the constitution as it provides guidance for peoples’ behavior
within the organization. Evidently, the results that an organization strives to achieve can be viewed
as the organizational goals.

According to Mindtool (2012), goal setting in an organization plays a major role in many
organizations. This includes: - provision of organizational direction and targets to employees with an
aim of pooling most of the members resources and efforts towards achieving a specified goal,
motivate those in the management to utilize their resources in an effective and efficient way, hence,
providing an avenue for attaining organizational co-ordination as well as provision of evaluation
standards on which organizational performance can be measured.

According to Locke and Latham (2002), setting goals as an activity in an organization is never
randomly done, but follows a distinct process. The steps identified include monitoring and evaluation
to determine the achievements or failures of the organization to the environment. Others include the

30
establishment of organizational potentials and its possible weaknesses, identifying the goals of the
organizational, setting up of departmental and sectional goals and progress monitoring toward
attainment of goals in every levels of an organization.

Organizations have numerous goals which can be categorized in different levels. Top level being the
organization’s mission and purpose. On the other hand, goals set by the middle management should
essentially follow the strategic goals from top management in a logical manner. Line managers are
required to aid in setting goals in line with the objectives and uniquely suited for their line of work
and jurisdiction. Goals may also be classified depending on the aim it intends to achieve and can be
for purposes of driving the personnel, marketing, productions, operations, financial and personnel
departments. Goals can be customized to suite different agendas in an organization based on their
timeframe and assist in developing the short-term, mid-term and long-term goals (Martin, 2010).

The manager must try to use their knowledge in balancing any existing competitive goal interest in
an organization and harmonize those with similar aim into a set. This process can be termed as goal
optimization, balancing between different goals with an aim of achieving organizational
effectiveness. An organization is allowed to pursue a unified vision through optimization which
facilitates consistent actions by the managers, (Gergen and Vanourek, 2009).

According to Drucker (1990), some of the notable barriers that hinder the successful achievement of
goals include the use of goals that are not appropriate in that they do not meet the requirements, aim,
missions and objectives of that particular organization. Setting unattainable goals that are impossible
to achieve is a major drawback to managers whose judgment maybe clouded by great desire to meet
certain levels especially in organizations where their reward is performance based. Goals will stop
being an effective incentive if they are unattainable.

2.4.4 Advantages and Disadvantages of Strategic Planning

Every organization has a different process of planning that differs from one organization to another
and may be handled with distinct levels of dedication, intricacy and scrupulousness. Due to resource
limitations, it would mean that, some organization may feel the need to bypass the vital steps
necessary for formulating plans and hence, may lead to lack of managerial dedication for
implementing a strategic plan. However, irrespective of these limitations, it should be an
encouragement and motivation to reward those managers who apply models of strategy development
differently with no regard to proper applying of the laid down processes (Grattan, 2011).

31
The advantages of strategic planning offer reliable guidance to organizations activities. It helps the
management in planning for unlikely occurrence of events and provides remedies for them before
they escalate. By doing so, decisions are made through prudent analysis accorded through strategic
planning, which accords managers vital details on how to handle challenges and in decision making.
Chances of making mistakes are minimized and unpredicted negative occurrence reduced because
the aims, purposes and policies are exposed to careful examination and scrutiny (Vel et al., Creed and
Narayan, 2012).

The disadvantages of strategic planning include, significant time investment, cash and personnel
before one start seeing or enjoying its fruits. It requires quite a substantial amount for start-up,
recruiting of personnel, training them, surveying, market analysis and exclusive analysis of data
(Maryan, 2012).

Organization tend to be restricted by strategic planning which normally are bent towards a less risky
venture and requires decisions made to be the most rational due to the fact that managers are either
drilled or forced to only stick to the formal processes laid down by their predecessors hampering their
creativity and opportunities for an organization with greater potential. This means that, better
opportunities with higher risk prevalence are likely to be overlooked (Al-Majali & Sunna’a, 2013).

2.5 Facilities Management

Different definitions have been used to describe the term Facilities Management and its services. This
might also mean that, some of the definitions might be misleading. It is for this fact that McDougall
(1999), resolved that, facilities management may vary in definition from one institution, business,
department or organization, to the other, and the range of scope could as well be unique to each unique
organization.

On the other hand, one may argue that Facilities Management should be all about integration of the
various dependent disciplines, whose aim is to achieve the core business of the organization. It should
also aim at, attaining individuals well-being, provide an enabling environment for the achievement
of the organizations’ core business in an effective and efficient manner, allow for future change of
users especially for the spaces, aim at improving the image and values of the organization and in the
process, boost its competitive advantage over its peers (Atkin and Brooks, 2000).

Just as Hamer (1988, p.23) puts it, Facilities Management is an ever-changing field that is dynamic
in nature and keeps on evolving each and every day, and can be manifested through the variance in
its definitions. It is difficult to come up with a universal definition that will capture the true scope and

32
essence of Facilities Management and its goals and objectives. Different definitions of Facilities
Management reveal that it is an ever-evolving field whose nature is still in a fluid state as argued by
(Holistic definition formulation is inadequate, which captures Facilities Management functions’ true
essence and scope). The above reviews have provided some holistic insights into what Facilities
Management services entail and to a wide spectrum, this forms the basis upon which this research
and findings have been anchored. These definitions, however, give a general view and insight on
the wider continuum of facility management and its services which in turn forms the basis on which
research can be based upon.

The main agenda of Facilities Management is to offer the best and most enabling environment to both
the customers and staff of an organization enabling them to offer the best results that the organization
can project and achieve the core business of the organization through offering an all-inclusive
approach towards maintenance, improvement and adaptation of buildings and other infrastructure of
that organization, (Barret and Baldry, 2003 and SFMS, 2006)

Facilities Management is a profession that has diverse field that aim at ensuring functionality of the
built environment through the integration of persons, space, procedures and technology (International
Facilities Management Association (IFMA), 2006). It is further emphasized by Alexander (1996),
who cited Facilities Management as a tool in which organizations utilize in ensuring that the existing
set ups, structures and amenities work towards the attainment of the core business of the organization
and the strategic objectives in the dynamic situations. Moreover, Facilities Management is a process
which entails delivery of sustainable eminent work environment within an organization, as well as
excellent service support system that meets the organization’s objectives and strategies with the least
cost as possible (Centre for Facilities Management, 1992 a, b).

It is through the Facilities Management that an organization can be able to strategically manage their
built assets with an aim of enhancing their competitiveness businesswise, rather than managing them
cost effectively (Hinks, 1998). Further, it optimizes the costs of running a building with its facilities
by effectively managing the spaces and other related facilities with the aim of attaining the core
business of the organization, its goals and missions with the least possible resources, as well as
enhancing a good working environment for its workers and customers (Spedding and Holmes, 1994).

Facilities Management, from a strategic management point of view, is the engine towards supporting
sustainable operational strategy of an organization which can be achieved through managing the
infrastructural resources and services of the business effectively and efficiently (Nutt, 2004).

33
According to Chotipanich (2004), Facilities Management is basically crucial for the long- and short-
term management of facilities and in the attainment and support of a conducive working environment
as well as in the achievement of the core functions and other key services of the business. Scope wise,
it covers a wide range of services ranging from management of building spaces, support services,
health and safety issues, financial management, change management, human resources management,
contract management, controlling business environment, while setting up suitable control and
monitoring centers within the organization (Alexander, 1996). According to Barret and Baldry,
(2003), apart from these, it also involves provision of utilities supplies, building maintenance and
domestic services. The scope can further widen to provision of air-conditioning, building and
plumbing trades, grounds or landscaping, cleaning heating, concierge, tenant liaison, parking of
vehicles, energy management, ventilation, call - centre, electrical and waste management, sustainable
management mail-room and pest control (Collings, 2007).

Baldry and Sarshar, (2000), view Facilities Management as a bunch of building and useful
functionalities harmonized for the good of an organization and its entire workforce. Having a vibrant
Facility Management policy, encourages generation of effective corporate principles that could
results in rapid responses towards issues raised concerning allocation of spaces, environmental
protection and control, charging of spaces, all in regards to ensuring a conducive environment is
achieved. It also has an impact on employee’s management and contracts. According to Tay and Ooi
(2001), Facilities Management bears a greatest bearing in the establishment of the values that will
guide the organization‘s facility usage by clients, employees and the general public.

Facilities management can also be seen as a management process of integrating and coordinating the
architectural design, the behavioral and engineering services, the principles of business
administration with the physical workplace and people with the aim of attaining the core business of
the organization (American Library of Congress, 1989). According to McGregorand Arnold (1999),
Facilities Management is all about provision of an enabling working environment conducive enough
to ensure that the objectives and goals of an organization are achieved and that the operational space
fosters human resources and business operations. According to Bernard Williams Associates (1996),
facilities management is about fostering value addition to both the organization and its stakeholders
through constant management of the built environment and provision of quality sustainable services
that promotes the goals and objectives of the business. Tay and Ooi (2001), believe that Facilities

34
Management is an all-inclusive managerial process aimed at providing a conducive work
environment with an aim of boosting or accomplishing the organization’s performance.

In an asset managerial point of view, Facilities Management revolves around strategically

constituting, structuring and managing leased building spaces together with their building systems,
equipment and furniture in such a way that it would improve its competitiveness in the dynamic
prevailing market conditions. Thus, enhancing its effectiveness and in the process create an enabling
environment for executing the core mandate of the organization which in turn will provide
satisfactory services to its clients (Becker, 1990).

Facilities Management can be categorized into three main classes namely; Operational Facilities
Management, Strategic Facilities Management and Tactical Facilities Management. For these
categories to be successful, it requires one to balance between their professional knowledge,
managerial skills and business acumen in making informed decisions. This is important in ensuring
the organization has a competitive advantage (Then and Akhlaghi, 1992),

Strategic Facilities Management aim at ensuring that the facilities are responsive to the organizations
challenges as well as ensures that they are in congruent with the organizations’ goals and objectives.
When Facilities Management is handled at the top level of management, it will have a greater impact
especially on decision making processes in regards to its field, which in turn will aid in achieving the
set objectives and goals of the organization successfully.

Alexander (1996), argues that the Tactical Facilities Management duties entails, facilities policy
formulation and communication, quality service planning and design for continuous improvement,
identification of business needs, and the individual’s needs, negotiating agreements on service level,
effective purchasing and contract strategies establishment service partnerships creation and organized
service evaluation, value, significance and risk. Procedurally, tactical facility management can be
implemented at the organization’s administrative processes. In order to ensure that the operations are
well performed in accordance with the organization’s requirements or standards as well as
implementing the policy, strategy and plan, it would entail directing, screening and managing the
Operational Facilities Management. Operational Facilities Management scope revolves around the
day to day service delivery at the workstation. It is also aims at ensuring that the organization services
are effectively delivered and that things remain functional (Barrel and Baldry, 2003).

35
This refers to the approaches which Facilities Management within an organization would undertake
to ensure its proper functionality. Depending on the needs of an organization, the Facilities Manager
has options from several models (Alexander, 1996).

2.5.1 Facilities Management Functions

The main purpose of Facilities Management is geared towards achievement of the organization’s
mandate and business with an aim of improving its competitiveness. Facilities Management sector is
bestowed with the responsibility to ensure that the organization’s facilities and assets serve to
optimize productivity through constantly improving the quality, minimization of running, repair and
maintenance costs and provision for value for money. According to Alexander (1996), efficiency
and effectiveness in Facilities Management would focus on ensuring delivery of services that would
ensure there is value in money as well as ensure that there is a conducive working environment for
the staff so that they are able to provide the best services to the best of their abilities with the aim of
achieving the organization’s goals.

Facility Management’s objective is to enhance the operations efficiency through improving the
facilities and in the process sharpen the organization’s image. This can be attained through ensuring
quality communication at all levels, establishment of procedures, scheduling of programs, doing
benchmarks and getting feedbacks, leading and being pre-emptive, identification and provision of
essential services to the business, while partnering or out-sourcing provision of other services and to
capitalize on the existent proficiency and have the ability to entrust and designate duties to their stuff
(Hamilton, 2004).

Facilities Management should also establish facility guidelines that articulates the organization’s
principles, that empowers the facility departments with the ability to make final decisions that
improves superiority in service delivery, creation of facilities that match up-to the standards of the
organization, appreciation of the need to have facilities and the value addition it has to the
organization. It should also be strategically set and business oriented with the vision of the
organization’s future, should be value exploration while securing competitive advantage, implement
a computer based management systems that are efficient and sustainable, ensure timely and accurate
capturing of data so as to assist in making of a well informed decision, administration of outsourced
and partnership contracts, management and care of the environments, energy and identification of
customer’s niche, and how to meet their needs (Alexander, 1996).

36
Facilities Management has three distinctive characteristics as identified by Kincaid (1996), which are
as follows: within an organization Facilities Management should play the role of a pillar, or an
organization support service. In addition, facilities management should be a pillar to the core activities
and other activities within the organization in a tactical, operational and strategic manner. Finally it
is prudent that managers of Facilities Management department have professional skills required to
handle and carry out their duties and rolls.

For an organization to remain competitive both locally and internationally, it is necessary for it to
create business opportunities and stay proactive in this challenging and competitive Facilities
Management industry. This can only be achieved if the Facilities Management applications and
technics are properly administered in order to attain the most conducive working environment at the
most cost-effective manner with an aim of attaining the best value in terms of quality of service while
sustaining the value of the property. In summary, Facilities Management should not only aim at
optimizing building running costs, but efficiently and effectively, manage organization’s resources
and spaces for the processes and individuals within its premises, in order to achieve the goals and
objectives of the organization (Spedding and Holmes, 1994).

2.5.2 Outsourcing in Facilities Management

According to Barrett and Baldry (2003), outsourcing entails commissioning of services from a third
party to offer services within its terms and conditions set forth by a contractual agreement between
the mother company and the third party. There might be various types of the contracts with various
suppliers in operation, parallel to this.

In this scenario, outsourcing involves commissioning a separate entity to overlook over its assets and
personnel, brought about by a contract to undertake duties that were previously held internally. It is
further validated by Arkin (2003), who views Facilities Management services under outsourcing
scheme as that which entails handing over services vital to a third-party company to manage and
handle on its behalf.

Lankford and Parsa (1999), describe subcontracting as procuring of services or products from a
different entity. According to Collings (2007), it involves delegation of activities and duties that are
not so sensitive yet vital to the organization to a third party to undertake and deliver the services that
match the standards of the organization.

37
According to Winkleman et. al. (1993); Moran and Taylor (1998); Huff (1991), outsourcing has been
in existence and would not be a new idea. According to Moran and Taylor (1998), specialization is
described in an organization as the decision to either purchase or produce goods and services so as to
ensure constant supply for a successful operation. Price and Akhlaghi (1999); Jones (2000); Roberts
(2001); El-Haram and Agapiou (2002), have established that over the years, there has been a positive
increase in the provision of services through outsourcing, both in the private and public institutions
especially those dealing with real estate and other facilities.

HRO Today (2003) defines outsourcing as contracting a single or more than one facility management
business companies to conduct facility management with an aim of reducing the operational costs
while focusing on the core business of the organization which in turn increases the shareholders
profits and value. Bernard Williams Associates (1999) established that the core advantage of any
organization is in reducing operational costs while improving or maintaining quality, being flexible
and having the requisite skills that are motivated and flexible. He established that these could easily
be achieved through outsourcing services.

Rothery and Robertson (1995), view outsourcing in a cost perspective way, but in a strategic
dimensional way in which an organization tries to use in order to fit into the new environment. Fill
and Visser (2000) believe that even though cost efficiency still remains the core pillar for outsourcing,
it is advisable that the management not only considers cost alone, but also, the technical expertise,
technological issues as well as strategy while making decisions on outsourcing services (Welch &
Nayak, 1992).

According to Harkins (1996), outsourcing can either be objective or subjective and is usually driven
by purpose, vision and economics while considering if the services provided guarantees better quality,
at the shortest time possible while the cost of delivery that services is cheaper and reasonable.

According to McCarthy (1996), an organization would settle for outsourcing services due to the
following reasons, when they want to reduces cost of operations and redirect it towards attaining the
core business of the organization while re-focusing on their beneficial plans. Its long-term benefit
includes improving plan benefits, efficiencies and timely service provision while providing
employees with consistent information.

There have been several reasons behind outsourcing, but Winkleman et al. (1993), identified two
fundamental determinants as those that strategically alter the manner in which organizations manage
their business and the reduction in costs. Beulen et al. (1994), further pinpoints five key determinants

38
for one to outsource as cooperation, finances, quality assurance, core business and costs. On the other
hand, Hiemstra and Van Tilburg (1993) classified the fundamental motives for outsourcing into four
categories, availability of both skilled and non-skilled personnel, knowhow, finances and expenses.

Practical Facilities Management (2006), acknowledges that there has been an increase in advantages
and success stories related with Facilities Management over the years and as a result, it has led to
companies and government have increasingly opted to seek for their services. This has also been
contributed to the fact that they have limited resources to handle most of those services in-house.
Greaver (2007), observed that outsourcing had been necessitated by the need to have some of the
most important elements that have a great impact in shaping business performance. He classified
them as those that constantly shift technology, increase competitiveness and pressure on worldwide
economy, increases business opportunities which can change the industry overnight, increases
demand for institutional investors while demanding for reduces taxes and improved services from the
government. With the rapid growth in outsourcing as a transformative tool, there has been a reduction
in risk with increased benefits. This practice has also increased in most parts of the European, United
States and Asian countries (Outsourcing Institute, 2005).

2.5.2.1 Principles Underlying the Choice of either Outsourcing or In-House Facilities

Management Approach
Facilities Management is dynamic and covers a broad range of services such as management of the
already built environment, financials, employees, change management, health and safety of building
users and its environs and basic services. A good example can elaborate on the following services;
security and cleaning, building maintenance, management of utility supply and contracts, (Barret &
Baldry, 2003).

This lends credence to the views expressed by Tranfield and Akhlagi (1995) that in the context of the
whole organization, the role of Facilities Management has gradually evolved from merely helping
the organization to survive, to acting and to enhance its potential to prosper in a volatile commercial
climate. It then follows that the challenge for Facilities Managers is indeed the same challenge facing
the organization. Atkin and Brooks (2005), depending on the priority of the activities or services of
an organization, extensive Facilities Management functions may be successfully performed or
provided either by in-house or subcontracting approach. Two possible options exist in the decision to
subcontract or not to subcontract and those reasons were are, the organization decision to retain or
subcontract the services on the whole basis or the organization subcontracts part of the services and

39
retain certain services in-house, particularly if the Facilities Management function is part of the
organizational strategic management process.

Atkin and Brooks (2000), argue that some organizations operate as a mixed economy retaining some
services in-house whilst contracting out others. Barrett (1995), re-reverberated by stating that some
organizations use a combination of both favor a totally in-house option, while others literally contract
out every service possible. Having regard to the path that leads to long term best value for the
organization, a decision should be made as well as taking full account of the implications, especially
the true cost of all options as this is achieved.

Barrett (1995), further says there will be advantages or disadvantages to providing services either in-
house or through subcontracting. What should be kept in-house and what should be contracted out
have no rules. Consequently Atkin’s (2003) argues that, there is need to define the thinking, practice
and procedures that will lead to the organization’s best value; hence, there is no general rule in this
regard.

2.5.2.2 Subcontracting advantages

When products or services are produced more effectively and efficiently by outside suppliers
outsourcing creates competitive advantage. This lends credibility to the observations of Gilley and
Rasheed (2000), that organizations are increasingly turning to subcontracting in an attempt to enhance
their competitiveness. Firms relying on internal production do not outsource hence may not achieve
long run advantages. Additionally, Lankford and Parsa (1999), subcontracting advantages can be
operational, strategic or both. Operational advantages usually provide short-term trouble avoidance
is as a result of operational advantages, whereas maximizing opportunities are due to strategic
advantages. Quinn’s (1992, p.15), remarks that “virtually all staff and value chain activities are
activities that an outside entity, by concentrating specialists and technologies in the area, can perform
better than all but a few companies for whom that activity is only one of many”. Specialized
knowledge provided by contractor is a better reason (Davies, 1995).

Subcontracting benefit gain is cutting costs. Bettis et al. (1992), coincide that subcontracting firms
often achieve cost advantages relative to vertically integrated firms. Industrial costs decline and
investment in plant and equipment can be reduced through subcontracting. Therefore, this has leads
to investments declination as industrial capacity lowers fixed costs and shortens break-even point.
Subcontract enables administrations achieve costs reduction, expand services and expertise, improve
employee productivity and morale, as well as achieve greater potential towards sharpening corporate

40
image (Fill & Visser, 2000). While accepting only slightly lower earnings during favorable economic
periods, subcontracting allows companies to better weather market downturns. The short-run cost
improvement swiftly reinforces the subcontracting decision (Bettis et al., 1992).

Further, Gilley and Rasheed (2000), firms focusing on subcontracting can switch suppliers as new,
more cost-effective technologies become available. In-house production increases organizational
commitment to specific type of technology and may constrain flexibility in the long run (Harrigan,
1985). Indeed, companies ameliorate competitive pressures that squeeze profit margins and eliminate
investments in fixed infrastructure, which allowed for improved quality and effectiveness by
subcontracting; functional expertise increased access; and creating strategic business alliances
potential offer and internal administrative fewer problems (Fill and Visser, 2000). For quick response
to changes in environment, it is allowed by subcontracting (Dess et. al., 1995) hence increased costs
associated with bureaucracy are not amplified (D’Aveni & Ravenscraft, 1994).

An organization’s core competencies increased focus is a crucial benefit associated with (Dess et al.,
1995; Kotabe& Murray, 1990; Quinn, 1992; Venkatraman, 1989). Firm are allowed to increase
managerial attention and resource allocation to those tasks that it does best and to rely on management
teams in other organizations to oversee tasks at which the outsourcing firm is at a relative advantage
through non-core subcontracting activities (Gilley and Rasheed, 2000).

Subcontracting has some non-financial benefits. Kotabe & Murray (1990), competition among
outside suppliers is promoted, availability of higher quality goods and services in the future is
ensured. Dess et.al, (1995) and Quinn (1992), non-financial advantages of subcontracting:
outsourcers may realize quality improvements and choose best worlds’ suppliers whose products or
services are good. Subcontracting also spreads risk, an outsourcer is able to take advantage of
emerging technology without investing significant amounts of capital in that technology by using
outside suppliers for product or service. When market conditions demand an outsourcer is able to
switch the supplier.

Blumberg (1998), a fresh perspective to the potential benefits gained from subcontracting: costs
reduction effective means by contracting with a third party who can provide better high-quality
service at a lesser cost, operating efficiency improvement, assets return increase and improve
profitability.

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2.5.2.3 Disadvantages of Outsourcing
Collings (2007), outsourcing experienced problems include the following: - Subcontracting vendors
cannot deal with capacity of activities especially when the capacity of work unexpectedly rise due to
unexpected change of event e.g. unplanned event, discrepancy in work ethic between institute and
subcontracting vendors are a major challenge, outsourcing vendors fail to perform task in specified
time and cannot produce prescribed outcomes, insufficient agreement performance measures and
consequences are experienced, when associating with subcontracting vendor, there is capacity lack
when dealing with time management, elasticity lack and cost cutting issues contract focus rather than
exemplary service provision.

2.5.3 In-House Provision of Facilities Management Functions

“Service that is provided by a dedicated resource directly employed by the client organization, where
monitoring and control of performance is normally conducted under the terms of conventional
employer/employee relationship, although internal service-level agreements may be employed as
regulating mechanisms” is known as in-house approach (Barret and Baldry, 2003, p.17). Dealing
internally with product or services that require skill and knowledge in order to serve customers better
an in-house approach is required.

2.5.3.1 Advantages of In-House Provision of Facilities Management Functions

Benefits of in-house provision of FM functions are as follows: In-house people own their work.
Better performance by in-house employees is provided than outsourced employees who make
decisions based on how they will affect their own employers and not the people they are working for
by proxy.

Rather than outsourcing option, results of long-term financial analysis usually support in-house.
Rather than outsourcing it, USA-based Abrazo Health Care saved $2 million by providing its
information system data centre in-house. Improve of employee as well as customer satisfaction at the
same time is as a result of in-house option.

Companies get opportunity for people’s growth instead of hiring from outside, and provide career
prospects that reduce staff turnover through in-house offer. Picking the best service provider in terms
of experience, quality, speed and efficiency in an organization could enable outsourcing. However,
these quick fixes may not be are in the long run.

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2.5.3.2 In-House Provision disadvantages in Facilities Management Roles
In-house provision, several draw backs have been identified in previous research. Atkin and Brooks
(2005), notes this demerit ‘the states related and Facilities Management services retention might be
considered of less interest, level of lower importance, as a topic when compared to outsourcing.
Author argues that it may be considered that in-house provision it has lower economic worth, in a
sector that has sustainable and compatible outsourcing practices.

Atkin and Brooks (2000), insight more on the shortcomings of in-house endowment of Facilities
Management roles and identified them to include: - poor defined scope which leads, to problems in
service management with higher supervision costs and lowering of customer satisfaction. All
stakeholder consultations are essential. Measuring the performance of in-house personnel without
description of roles and responsibilities can be difficult organization’s management may be searching
for the market for external service provision, hence making the in-house team to operate in a way that
it can compete fairly if the need arises. Most of the organizations managing to do this also have
maintaining a consistent level over time as a weakness.

Complacency is one of the biggest threats to the in-house team’s success, which is easily noticed by
customers. Many in-house set-ups may be uncompetitive in financial and performance terms Bernard
Williams Associates (1999). The following practical reasons; rate, value, enthusiasm, elasticity and
availability of skills availability are why outsourcing may work better for the core business advantage
of the organization than ‘in sourcing’.

(Connors, 2003) The rate at which accumulated experience gets out of date once they are removed
from the competitive cross-company contracting environment, which is so essential to the ability of
any individual to retain his market-edge in knowledge and pragmatism, is a major problem for the in-
house team. According to Connors, he noted more shortcomings of in-house establishment of FM
purposes and outlined them to include: outdated concepts to the organization’s changing requirements
increasingly prolonged application, frequently run up costs of facilities way above outsourced norm
simply by over-providing quality of service are well managed in – house departments, lack of in-
house teams authority to take on temporary relief staff as easily as their external counterparts.

2.5.4 Challenges and trends in Facilities Management

As with any profession, there are certain issues and pet peeves that get under the skin of most
practitioners in the industry. Facilities Management is no different, the biggest recurring problems
that FMs and consultants face in their activities. Koon (2014), points to some of the challenges as;

43
(a) Vendor Management

Out - sourcing - companies trying to figure out their strategy for the amount of work they self-perform
versus the amount they man- age through vendors is a previous surveys major trend. While this topic
has not gone away, it is not the driver behind operational change. In according with the Director of
Facilities at one restaurant chain, "Outsourcing work is a given - we know we're always going to do
it to some degree. It's dealing with the changing amount of work and the churn in our pool of vendors
that's the challenge." (Standard newspaper, 2015).

Vendor performance evaluation is a major management challenge that has repeatedly been raised.
The most pressing need is tracking vendor performance and enforcing pricing agreements as a
multiple survey respondent. Vendor management logistics are an issue of concern, particularly with
respect to Certificates of Insurance information tracking. For those responsible for multi-site facilities
across broad geographies, this issue is the most challenging. Searchable data that is up-to-date on
your vendors that allows you to demonstrate regulatory compliance and that limits your liability can
save a great deal of time and money.

(b) Operational Visibility

According to a survey on carried out by the institute for building efficiency about 30% of the
respondents have considered reliable data capturing in their organization as one of the pressing needs.
For one reason or the other, this has proved to be the case for both larger and smaller companies. It
is very important to capture relevant historical data across all facilities for effective decision making
and reporting purposes.

(c) Building inefficiency and Occupant Inconveniences

Landlords and Facilities Managers may adopt all the best energy-efficient technology and follow all
the expected benchmarking standards, but without full automation of systems in a building, all that
planning is still at the mercy of a careless employee who will leave the lights on in an unoccupied
room (Knight Frank, 2015). So many things go into making a building more efficient, eco-friendlier,
and more cost-effective. Technology is one piece of that puzzle, but so is organizational management.

According to Johnson (2012), a study on the employee and occupant engagement found out that most
organizations which have emerged successful have registered strong leadership and tangible
commitment with their employees. The organizations tend to respond and develop a more sustainable
workplace than the others. However, this is not the case leading to high costs in the Facilities
Management department and budget deficits. For facilities managers and building owners, then,

44
automating those sustainable choices can help circumvent occupant inconvenience. This includes
smart controls that can anticipate building occupancy and utilities demand.

(d) Unforeseen

For the facilities manager at any kind of health care facility, particularly one that could be selected to
handle patients during any kind of outbreak, staying abreast of shifting realities becomes a big focus
(Bowen, 2015). To have such pandemics competently taken care of any corporate will need a well
experienced team in the Facilities Management pandemics however, may be new for instance the
outbreak of a disease that never existed and the information system in place may have no methods to
handle the same It’s a matter of being vigilant and staying on top of all the updated information that
comes out very quickly and ensuring that data mining procedures are up to date. (Koon, 2014).

(e) Handover

To some engineers and architects, “soft landing involves little more than handing the keys of a new
building over to its owner and its Facilities Management team just as their phase of the project nears
completion” (Collins, 2010). Gardiner & Theobald (2014), wrote that soft landings need to be a pillar
of a building’s lifecycle and not an afterthought especially with the publicity around Soft Landings
lately. Despite this, FM professionals still maintain that FM is all too often an afterthought and
considered far too late in the development of a new facility to be able to deliver any meaningful
impact on operational outcomes. “If only 3% of a facility’s whole life cost is associated with design
& construction (97% is associated with operations), it is easy to understand the potential magnitude
of the problem.” (Gardiner & Theobald, 2014).

(f) Lack of Personnel, Equipment and Training

Despite the fact that more and more facilities management jobs become available every year, few
students pursue courses at the university or career track that would lead them into the industry.
Additionally, the International Facility Management Association (IFMA) reports that the average age
of facility managers is fourty nine. However, this is the age when many employees are beginning to
plan for retirement.” (IFMA, 2013). The backdrop of this information is all the more concerning:
Worldwide, there is an increase in interest in buildings, built environments and real estate in general.
As smart buildings and smart cities and smart roads come online, the demand for knowledgeable FM
professionals is set to grow rapidly.

45
Companies are unwilling to invest in equipment that enable the proper administration of FM functions
arguably due non- core business such corporates and it will only lead to increased operational costs.
Furthermore, there is little or total lack of employee training to catch up with the emerging trends in
the built environment.

2.5.5 Trends and Emerging Issues in Facilities Management

“Facility Management Forecast exploring the current trends and future Outlook for Facility
Management.” Is a report released by International Facilities Management Association (IFMA).
Facility management profession continues to mature and evolve globally. Company’s core business
and contribution to the bottom-line not only by reducing facility costs, but also by improving the
productivity, revenue generating capacity, and image of their organizations should be understood by
the managers. Moreover, studying the trends will enhance facility management departments plan a
course for future alignment of facility management with corporate strategy. The trends fall under
three categories: externally, internally, and organizationally driven (IFMA, 2011).

2.5.8.1 Driven Externally Trends

Societal and other factors dictate driven external trends. Organizations have begun to incorporate it
into business goals and culture, and within the profession, it has moved from an emphasis primarily
for new construction to influencing existing building operations. Complex building systems and
controls increasingly offer opportunities and challenges for the profession. The industry can leverage
new technologies to manage facilities better, but it also needs to ensure adequate training is in place
to educate practitioners on new systems (IFMA, 2011).

Facility management faces problems stemming from the aging building stock professionals’
managers have to difficulties compounded by the global recession. As facilities and mechanical
systems reach and exceed their expected operating lives, significant issues of “repair or replace” must
be addressed. Facility managers play a critical role in business continuity after a disrupting event, not
only by crafting and implementing the prepared response plan, but also by serving as role models for
the organization in emergency preparedness and business continuity planning (Johnson, 2012).

2.5.8.2 Internally Driven Trends

Internally driven tools are derived from professions working within the organization. Facility
managers tend to increase quantity and complexity of data available, through new reporting protocols,
which in return poses challenges and opportunities to the profession. The ability to convert raw data
into usable and meaningful information that fosters informed decision making has been added by

46
more facility department (IFMA, 2011). However, Facilities Management is gaining greater
importance in finding top talents within an organization. The profession will need to increase its
branding and outreach recognizing that facility management is often not the first choice of today’s
new graduates. To improve the recognition and perceived value of the profession within the corporate
hierarchy, there is a growing desire to elevate facility management to greater heights. For Facilities
Managers to succeed in performing their roles, it is necessary to carefully align all their activities in
line with the organization’s mission as well as emphasize on the utilization of the facility
professionals, (David, 1999).

2.5.8.3 Organizationally Driven Trends

The corporations and organizations housing facilities are from organizational driven trends.
Increasingly, organizations expand their expectations expectation to include both technical and
business acumen, which initiates evolving skills, set need for those in the profession (Colman, 2012).
Well understanding of technical aspects, increase focus on business acumen which requires facility
professionals to think and act strategically and to communicate their positions in the language of the
C-suite (VFA, 2014). Facility management is a growing recognition that contributes to the well-being
and building occupants’ wellbeing, benefiting efficiency, efficiency, and effectiveness which are the
organization’s bottom line key pillars (IFMA, 2011).

Occupant behavior and the vacancy rate of buildings is affected by changing work styles significantly
which affects how buildings operation. Facility management increasingly faces challenges facility
management faces are; open work plan arrangements, clashing operation hours, and variable
occupancy rates and densities which power use and other considerations (Rachael, 2012). These
trends bear strong interconnections as they do not stand alone as solitary influence on the profession.
Facility professionals, successfully proactively meet posed challenges by these trends hence
organizations and the profession lead the way as a whole.

2.5.6 Critical Role of Performance Measurement Systems for Facility Management

Effective implementation of facilities management strategy will require performance measurement
as one of the three essential issues attributed to the increase in complexity of the Facilities
Management function, Alexander (1996). In an organization, Facilities Managers are answerable to
the top management of an organization and are in charge of ensuring that the daily activities add value
to the business well – being and for the organization’s economic growth. A well-organized facility
will render the top management at the business a good indication of how the facilities are

47
performing. In addition, the contribution of the Facilities Management department is expected to be
assessed by the stakeholders of that organization or external auditors. To satisfy, justify, and meet
targets of stakeholders and organization, pressure will be piled on managers to advance on
performance.

In an organization facility manager, can play a major role in terms of facility management by
providing periodic feedback on the achievement of the aims and purposes which in turn will guide
management towards formulating new future directions towards enhancing Facilities Management
within the organization (Baldry, 2003).

In terms of cost, there are a lot of performance indices and researchers decided to review some of the
performance measurements that has been in existence in the industry. In respect of performance
measurement in Facilities Management, more positive and preferable stance is needed and the
measurement of Facilities Management performance of individual services as well as aggregating
this information into indices and integrated performance measurement ‘universes’, evaluation process
should stand up to scrutiny and be allowed. Facilities Management performance covering various
perspectives of Facilities Management together with Facilities Management’s relationship to the core
organization should be assessed; the key problems have been availability of performance measure
techniques. Within other industries from whom, Facilities Management can learn lessons form, will
lead to exploration of similar applications Amartunga and Baldry (2000). In this context,
the researcher only highlights the most common and most economical Facilities Management
performance measurement technique in use although there is need to do further research on the most
suitable approach which will factor in all the core aspects of the organization.

2.5.7 Conclusion on Facilities Management

Facilities Management has continued to grow across the world as a business model sector and
discipline that is thriving. Organizations function at their most efficient and effective level with well-
managed sites and buildings, to offering an added value to the organization’s core business as well
for collaboration achievement. The role of Facilities Management in the organization’s strategic
operations is necessitated by the service providers and acknowledgement by their customers.

2.6 Conceptual Framework

According to Mugenda and Mugenda (2003), a conceptual framework is described as a concise
description of a phenomenon that is subjected under a specified study, accompanied by a graphical
or visual depiction of the major variables of the study at a given period of time. Further, Reichel and

48
Ramey (1987) continues to give a different description of a conceptual framework as a set of broad
ideas and principles taken from relevant fields of inquiry. The broad ideas and principles are then
used in the structure of subsequent presentation at a specified period of time. A conceptual framework
is an essential research tool intended to assist a study to develop an understanding as well as
awareness of the situation under strict scrutiny and to communicate in detail about the issue under
the study.

Figure 2.2 below highlights the various variables or parameters that are used to measure the impact
of organization strategy on facilities management. These parameters are based on two perspectives
that is, from a Strategic Management's Perspective and a Facilities Management's Perspective. The
independent variables for strategic management include extent of implementation of strategic plans
as well as the level of achievement of strategic goals or objectives. On the part of Facilities
Management, the independent variables include both the degree of incorporation and the impact of
facilities management in strategic plans.

49
 Chart 2.1: Conceptual framework for Facilities Management Advantages

Provides feedback mechanism.

1. Extent of Gives organizations a bearing and

STRATEGIC
implementation of aim.
MANAGEMENT
strategic plans Provides set standards
2. Level of achievement Provides mitigation measures to
of strategic goals/ unlikely occurrence of events.
objectives

Disadvantages

Time investment.

Cash and personality

ORGANISATION Increased challenges with

technological changes.

Growing complexity of external

environment.

Advantages

1. Degree of Efficiency

incorporation of F.M in Expertise

FACILITIES
strategic plans Knowledge
MANAGEMENT
2. Impact of F.M in
Simplified process
strategic plans
Reduced costs

Disadvantages

Loss of management control.

Threat to security and
confidentiality
Hidden costs.

Quality assurance standards.

Tied to the financial wheel being

of another company.
Source: Author, 2019

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 CHAPTER THREE

3.0 CASE STUDY AREA AND RESEARCH METHODOLOGY

3.1 Introduction
This chapter discusses in detail the study area and the procedures used or followed in conducting the
research. The study adopts a case study design approach that combines both quantitative and
qualitative approach in the collection and analysis of data. It is now necessary that some
characteristics of the study area and methodology of the study are highlighted so as to acquaint the
reader to the study area, prior to data analysis in Chapter Four and recommendations in Chapter Five
of the research study.

3.2 Rational for Case Study

A case study is normally associated with a location like an organization or a community. The case
study method, therefore, entails a detailed and intensive analysis of that given location (Bryman,
2004). According to Karimi (2014), the purpose of a case study is to probe an extensive and deep
analysis of the phenomenon under investigation of the unit with an aim of establishing a generalized
view of the population to which that particular unit belongs.

3.2.1 Area of Study

In the case of this study, Postal Corporation of Kenya (PCK) buildings in Nairobi and Lower Eastern
regions were taken to represent Kenya as a whole. The study appreciates the fact that Facilities
Management is a sensitive and key area for management to achieve its set goals and objectives. In
the light of this, the study was bound to cover the end users of PCK services, tenants and employees
in the selected buildings within the Nairobi and Lower Eastern regions. These buildings were
categorized into nine areas that include: Teleposta Nairobi (GPO), Ronald Ngala, Machakos, City
Square, Tom Mboya, Kitui, Kibera, Makueni and Kiambu (Thika).

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Map 3.1: View of Postal Corporation of Kenya Buildings in Nairobi and Lower Eastern Regions

Source: Google Earth, 2019

3.3 Research Methodology

Kothari (2004) describes research methodology as a scientific as well as systematic search for
information and knowledge on a given topic. Mugenda & Mugenda (1999) also define research as
the process of undertaking a diligent or critical inquiry or examination of a given phenomenon. This
implies that research is an exhaustive study or investigation that follows a certain logical sequence.
This logical sequence is what is referred to as the research process.

Research process can be defined as the overall format of activities that scientists engage in so as to
produce knowledge. It consists of seven defined stages. First, there is the definition of the research
problem. Next there is the formulation or construction of the hypothesis. Thirdly, there is clear
outlining of the research design which is then followed by measurement. Collection of the data as
well as facts which provide answers to the stated research questions is the next step. Sixth, there is
data analysis and finally, there is generalization, which involves reaching certain conclusion from the
interpretation of the data analyzed (Frankfort - Nachmias & Nachmias, 1996).

52
On the other hand, research methodology refers to a science that relates to the studying of how a
given research is to be done scientifically. It has to do with the systematic way of solving a given
research problem. It encompasses the proposed research design that was used in this study, the
population as well as the sample, the data collection methods that were used and the data analysis
techniques. It basically outlines the various steps that were adopted by the researcher in regard to the
study of the research problems.

Mugenda and Mugenda (1999) further define research methodology as a description of the procedures
used or followed in conducting the study. It helps other researchers in understanding one’s study
particularly where application may be desired. This section describes the procedures and
methodology that were followed in conducting the study. It discusses data collection, sampling
methods and procedures, statistical parameters and data analysis.

The independent variables for Strategic Management are extent of implementation of strategic plans
and the level of achievement of strategic goals or objectives. The dependent variables include
feedback mechanism, set standards, mitigative mechanisms, time investments, cash and personality,
technological changes and complexity of external environment. The following issues, objectives and
strategies were identified as priority areas for implementation during the plan period if PCK was to
successfully achieve its vision. The PCK strategic issues were as follows: revenue, legal framework,
marketing, service delivery, human resources, innovation, Information Communication Technology
(ICT), corporate culture and risk management. On the other hand, in order to address the strategic
issues identified above, PCK set six performance objectives which were to be achieved through
employment of strategies as follows: -

a) To grow revenue by 27.32% annually

This was to be achieved through employment of strategies such as grow existing products and
services, identify and develop new products and services, review prices of products and services,
ensure the Corporation operates under a legal and regulatory environment and diversify in other
sources of income.

b) To design and implement Profit Centre Models

The strategies employed were to restructure all functions to be Profit Centres, develop and negotiate
allocation criteria of common costs and ensure model effectiveness and efficiency.

53
 c) To enhance customer service and build a strong Corporate image
For this objective, the following strategies were employed: strengthen marketing programs,
streamline processes, improve and sustain Customer Relationship Management (CRM), create
physical infrastructure for improved service delivery, improve Corporate’s image and carry out
business development research and intelligence.

d) To mainstream and leverage on use of Information Communication Technology (ICT)

The strategies adopted in order to achieve this objective were as follows: improve and expand ICT
infrastructure and applications, implement and integrate a postal management information system
and prioritize ICT projects budgeting.

e) To enhance human resources capacity and positively transform and institutionalize Corporate
culture
This was to be achieved through optimization of staff capacity, build human resource capacity,
develop and implement a competitive compensation and reward system and positively transform and
institutionalize Corporate culture.

f) To institutionalize Enterprise Risk Management (ERM)

For this objective, the strategies employed included; developing an Enterprise Risk Management
(ERM) framework and developing and implementing Business Continuity Plan (BCP).

3.3.1 Research Design

Research design refers to a plan that guides the researcher in the process of collecting, analyzing as
well as interpreting the collected data. It is basically a logical model that allows the researcher to
draw inferences when it comes to the casual relations that exist among the variables that are being
investigated (Yin, 2002).

Frankfort - Nachmias & Nachmias (1996) describe research design as the blueprint that not only
enables a given researcher to come up with solutions to the outlined problem, but also, provides the
required guidance in the research stages.

In the case of this research, the researcher used both descriptive and quantitative research design in
the solicitation of data from the respondents. Descriptive research is said to be the type of research
that describes the various characteristics of a given existing phenomenon as well as describing the
variables of interest with the aim of providing insights into the identified research problem. Kombo

54
& Tromp (2006) brings out the fact that this design provides an accurate and useful data that helps in
answering questions with regards to who, when, what and how. In this research, this design was used
to describe the current status of the Corporation with regards to analyzing the impact of an
organization’s strategy on the performance of Facilities Management. This research also answered
the question of what the status of the buildings were, as well as the kind of services offered to
customers and tenants with regards to satisfaction derived from the services.

3.3.2 Population
Kothari (2004) defines population as the total number of items whose information is required.
Mugenda & Mugenda (1999) also define population as an entire group of objects or individuals that
have a common characteristic that is observable. It is important that the researcher identifies both the
target population and the accessible population. It is normally from the accessible population that the
researcher selects his or her sample. This is because the members of the target population under
investigation can be scattered in a large geographical area.

The population comprised of PCK customers who are the end users of PCK services, PCK tenants
and PCK staff. PCK staff comprised of the facilities management staff and general staff who are
commonly known as officers. The population was from the selected Postal Corporation of Kenya
buildings within Nairobi and Lower Eastern regions. These buildings were situated in the following
areas: Teleposta Nairobi (GPO), Machakos, City Square, Tom Mboya, Ronald Ngala, Kitui, Kibera,
Makueni and Kiambu (Thika). The study area had a population of 2,885 number PCK staff and 64
number PCK tenants. In addition, an average of 1500 number of customers per month was the
population for PCK customers as per the database of PCK for the period 2013/ 2014 – 2015/2016
Corporate Strategic Plan. These populations were targeted from which the sample populations were
derived.

3.3.3 Sampling Technique and Procedure

Population encompasses a large number of individuals or items. Thus, reaching all the members of
that particular population required adequate funding, time as well as personnel. The researcher may
have had a constraint of these resources hence necessitating the need to employ the sampling
technique method. Sampling can be defined as the process of selecting some individuals from a large
group for a given study in such a way that, the chosen individuals fully represent the larger group
from which they were chosen.

55
There are several procedures that can be used to select the individuals to be included in the sample.
These procedures are divided into two categories, probability sampling and non-probability sampling
(Mugenda & Mugenda, 1999). During selection of PCK staff, the researcher adopted purposive
sampling. This was because this procedure allowed the researcher to pick PCK staff at random from
various departments, preferably, those who were informative on the issues being researched on.
Further, the researcher used simple random sampling to select PCK tenants who were to be included
in the sample. The selected procedure was chosen because it assigns each unit of the population an
equal probability of being selected to be part of the sample (Bryman, 2004). On the selection of PCK
customers from the selected PCK buildings, the researcher used a non-probability sampling procedure
to identify the customers to be chosen to fill the questionnaires (Mugenda & Mugenda, 1999).

3.3.4 Sample Frame and Size

Considering the time, personnel and financial constraints, the researcher had to use the sampling
technique(s) to determine a smaller number of the individuals from the population to use in the study.
This small number is referred to as a sample. A sample can thus be defined as a smaller number that
is obtained from the accessible population. Each member in the sample is referred to as a subject
(Mugenda & Mugenda, 1999). A sample can also be defined as any subset of sampling units that are
selected from the population.
The representative sample number for the PCK Staff respondents in the study area was determined
by use of the following formula:

ss = Z2*(p)*(1-p)

C2

(American Marketing Association, 2016)

Where;

ss = sample size

Z = 1.96, the standard normal deviate at the required confidence level of 95%

p = 0.05, percentage picking a choice, (expressed as a decimal)

c = 0.07, confidence interval (0.07= + 2)

56
Therefore,

ss = 1.962 x 0.05 x (1- 0.05)

0.072

ss = 39.1488 Respondents and thus 40 PCK Staff respondents was adopted.

The total population size of PCK tenants in various premises as stated was also determined. A
representative sample number for the tenant respondents in the study area was determined by use of
the following formula:

ss = Z2*(p)*(1-p)

C2

(American Marketing Association, 2016)

Where;

ss = sample size

Z = 1.96, the standard normal deviate at the required confidence level of 95%

p = 0.5, percentage picking a choice, (expressed as a decimal)

c = 0.1, confidence interval (0.1= + 2)

Therefore,

ss = 1.962 x 0.5 x (1- 0.5)

0.12

ss = 19.2476 Respondents and thus 20 PCK tenants’ respondents was adopted.

A population of 1,500 PCK customers was adopted for this study. From this population of valuers,
the representative sample was derived using the formula below.

57
 n= Z2pqN

e2 (N-1) + Z2pq

(Nachimias and Nachimias, 1996)

Where n = sample size, N = population size, p = sample population that has the characteristics being
measured. Assuming a 95% confidence level of the target population, q = 1- p, e = acceptance error
(e = 0.05, since the estimate should be 5% of the true value) and Z = the standard normal deviate at
the required confidence level = 1.96.

Therefore;

n= 1.962 x 0.5 x (1 – 0.5) x 1500

0.052 x (1500-1) + 1.962 x 0.5 x (1- 0.5)

n =360.3752

n = 360 PCK Customers

Alreck and Settle (1995) notes that, having a sample of less than 30 respondents is not practical since
the level of certainty is low. It would also not be necessary to have a large sample, for instance, more
than 10% of the population provided that the resulting sample falls within the range of a maximum
of 1000 and minimum of 30 units. For the PCK customers, 10% of 360 equals to 36 which is more
than the minimum of 30. For this reason, a sample of 36 respondents for PCK customers was
considered sufficient during this study, instead of the 360 PCK customers obtained from the
computation.

Non - probability sampling was used purposely to select PCK customers in order to avoid cost and
time implications. This sampling was used to pick out specific respondents in each building, to be
issued with questionnaires. The sampling unit was categorized in terms of products consumed and
employees within working area with respect to Facilities Management functions. This was adopted
in order to determine how Facilities Management functions are interrupted or enhanced during
implementation of the PCK strategic plans.

The researcher, however, was more interested in PCK staff interacting with major facilities as was
noted during the reconnaissance and subsequent visits to the study area. Systematic random sampling

58
and simple sampling was used in selecting the respondents that participated in this study. The top
management which comprised of PCK Managers was involved in policy making and formulation of
strategies. They were therefore approached to provide information on what strategies affect Facilities
Management as well as, give their opinion on the outcome interaction of both the policy making and
formulation strategies.

3.3.5 Variables of the study

A variable can be defined as an attribute or property that can be identified clearly in a research and
measured in some given way (Frankfort - Nachmias & Nachmias, 1996). In the case of this research,
the main variables that were investigated included the extent of implementation of strategic plans and
the level of achievement of strategic goals or objectives. The independent variables included; degree
of incorporation of facilities management in strategic plans and the impact of facilities management
in strategic plans. The extend of implementation was to be measured through the evaluation of PCK’s
strategic plan, which was described by planning of the Corporation's goals or objectives which may
be either short or long term. In addition, the Corporation has measures that control the annual budgets
and its associated expenditures with an aim of avoiding theft, corruption, mismanagement of funds,
careless spending and spill - over due to lack of proper planning.

The extent of implementation of the Corporate’s Strategic Plan was achieved through administration
of questionnaires. These questionnaires were administered to PCK staff, PCK tenants and PCK
customers. For instance, the questionnaire administered to PCK staff sought to establish the following
key issues; availability of a Corporate Strategic Plan and what it entails, whether the three-year period
set for execution of the Corporate Strategic Plan affected the overall implementation of the
Corporation’s objectives and how the implementation was rated. Further, the researcher aimed at
rating various roles of facilities management department and implementation of its objectives in the
Corporation in line with the implementation of the Strategic Plan. The researcher sought to establish
the following; the main objectives and functions of the facilities management department and whether
the department was allocated with enough resources by the Corporation. Finally, the questionnaire
was aimed at establishing the challenges faced by facilities management department during
implementation of its objectives and the possible recommendations geared towards streamlining the
aforementioned challenges.

The questionnaire administered to the PCK tenants sought to establish whether the following key
issues were catered for in the facilities management department; whether health and safety concerns

59
of occupants were being addressed, whether the Corporation provided a conducive environment to
work from and, whether the common areas within the Corporation’s premises were adequately and
frequently cleaned to the expected standards. Moreover, the researcher probed to establish whether
maintenance and repairs of the premises were undertaken promptly as and when required and as
required by the law. They were also requested to comment on whether the PCK facilities management
staff was competent enough to undertake their mandated tasks. Lastly, the tenants were required to
recommend on various ways of improving the general state of PCK premises.

Finally, the PCK customers were probed to rate PCK in terms of the following parameters; quality of
services, process of problem solving, quality of customer service, wait time for customer to be
attended to, knowledge of customer service, time taken by customer service representative to solve
issues, satisfaction of security status and satisfaction of the general conditions of the premises. In
addition, they were required to recommend on possible ways of improving the general state of
business at PCK.

3.4 Data Collection Instruments

In this study, there were two types of data that were collected, the primary data and secondary data.
Secondary data, either published or unpublished, was collected from books, journals, daily
newspapers, professional magazines, conference papers, policy documents, Acts of Parliament,
research projects and papers.

3.4.1 Secondary Data

Literature review was conducted through review of journal, scholarly articles, periodicals, textbooks,
past research papers, and other published and unpublished works. Literature materials were sourced
from the University of Nairobi Library, among others. All necessary and relevant information to this
study was thoroughly analyzed and presented in the literature review section.

3.4.2 Primary Data

There were various techniques that were used to collect primary data. These included questionnaires,
interviews and observation. Primary data in this research was collected using various techniques.
Primary data was obtained through the following means: -

3.4.2.1 Visual Inspections and Observation

A reconnaissance visit was conducted before the study began in an effort to scan and familiarize with
PCK offices. This enabled the researcher to get a general overview of the study area and assess the

60
potentiality to contribute to the problem statement chosen. The units of observation included
analyzing the functions of Facilities Management, the roles they have played and how effective they
have been. This captured the real situation on the ground, which the respondents were reluctant to
share willingly.

3.4.2.2 Oral Interviews

Face to face interviews with key informers was undertaken. This method is usually very effective due
to its flexibility in allowing for clarifications by asking questions on unclear issues. The key informers
included the General Manager in - charge of Operations and Facilities Management Department,
general PCK staff, PCK staff from Facilities Management Department, PCK tenants, PCK customers,
among others.

3.4.2.3 Questionnaires
The questionnaires had both structured and unstructured questions. They were also self-administered.
They were hand delivered to the respondents who were requested to complete them on their own. The
structured questionnaire (Appendix 2) were pre – tested with the assistance of the Manager in charge
of Facilities Management to eliminate questions that might have been vague or ambiguous. This was
also aimed at ascertaining the validity and reliability of data to be collected using the instrument. The
target groups in this study were PCK staff at Facilities Management Department, PCK general staff,
PCK tenants and PCK customers. The advantages of using the questionnaires as data collection
instrument included prompt feedback from the respondents as well as being relatively a quick method
of collecting data (Mitchell and Jolley, 2004). It also reduced the interviewers’ biasness as the
respondents were left on their own to complete the questionnaires. Further, information could also be
collected from large groups of people at one given time. However, questionnaires had their
limitations: open-ended questions could generate large amounts of data that could take a long time to
process and analyze. One way of limiting this was by reducing the number of open-ended questions.
The research structure demanded qualitative aspects of the stakeholders’ concerns to be captured and
this could only be achieved through administration of questionnaires.

3.5 Data Analysis and Presentation

Data analysis is defined by Lewis – Beck (1995) as the process of gathering, modeling and
transforming data into useful information that can be used for suggestions, conclusion and decision
making. Data obtained from the study was screened for completeness and accuracy. Data from the
structured questionnaires was categorized into themes based on the objectives of the study. According

61
to Miles and Huberman (1994), data deduction is a form of analysis that sharpens, sorts, focuses,
discards, and reorganizes data in such a way that final conclusions can be drawn and verified. The
data that was collected was analyzed on the basis of the research objectives. The data analysis and
presentation were done using quantitative method. The quantitative analysis and presentation of data
was done using statistical tools such as frequency distribution tables, pie-charts, graphs and
percentages.

62
 CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1 Introduction
This chapter presents and discusses the analysis of data collected from various respondents who filled
the questionnaires. The structured questions were used to generate quantitative data while the
unstructured questions were used to generate qualitative data. The quantitative data was analyzed
using descriptive statistics and presented in the form of tables, bar charts and pie charts.

The qualitative data was used in content analysis. Results of the data analysis provided information
that formed the basis for discussion, conclusion, and interpretation of the findings and the
recommendation of the study. The section sought information from the findings of the field survey
that were obtained in fulfillment of the study objectives. The results presented are with respect to
each of the following objectives: -

Core Objective

The core objective of this study is to analyze the impact of an organization’s strategy on the
performance of Facilities Management.

The specific objectives

1. To find out the degree at which Facilities Management function has been incorporated in the
strategic plan of PCK.
2. To investigate the extent of the level of implementation of the corporate strategic policies and
action plans on Facilities Management for PCK.
3. To evaluate the impact of Facilities Management in the achievement of strategic goals or
objectives of PCK.

4.2 Response Rate of questionnaires administered and interviews

The study administered ninety-six (96) questionnaires randomly to selected respondents who
comprised of PCK staff (managers, general staff and Facilities Management staff), tenants and
customers of Postal Corporation of Kenya.

4.2.1 Characteristics of the sample

The population of interest in this study consisted of top-level Management, Facilities Management
departmental staff, general staff, tenants and customers of Postal Corporation of Kenya.

63
Table 4.1: Target Population

Categories Sampled Population

PCK Managers 10

PCK Facility Management Staff 10

PCK General Staff 20

PCK Tenants 20

PCK Customers 36

TOTAL 96

Source: Field Survey, 2019

The targeted population was selected randomly and formed the basis under which the questionnaires
were allocated.

4.2.2 Response Rate

Mugenda and Mugenda (2008) explains that a response rate of 50% is adequate for data analysis and
reporting. A response rated at 60% is good and a response rated at 70% is very good.

Table 4.2: Response Rate Analysis of Questionnaires administered

Sample Categories Response Non- Percentage Percentage

Response Response Non-Response

PCK Managers 8 2 80.0 20.0

PCK Facilities Management Staff 7 3 70.0 30.0

PCK General Staff 16 4 80.0 20.0

PCK Tenants 13 7 65.0 35.0

PCK Customers 29 7 80.6 19.4

TOTAL 73 23 76.04 23.96

Source: Field Survey, 2019

64
Table 4.3: Response Rate

Sample Category Respondents Percentage Response

Response 73 76.04

No-response 23 23.96

No. Issued 96 100 .00

Source: Field Survey, 2019

Table 4.3 shows that the response rate was 76.04% while 23.96% of the respondents did not respond.
The response rate of 76.04 percent was way above the 70% rating of very good. This response rate
can be termed as excellent and provide enough information for this study.

4.3 Section 1: PCK Staff’s Perspective

This section brings out opinions, views and perceptions of PCK staff including PCK Managers, PCK
Facility Management Staff and PCK General Staff with regards to the impact of an organization’s
strategy on the performance of Facilities Management.

4.3.1 Does Postal Corporation of Kenya (PCK) have a Corporate Strategic Plan?
Figure 4.1: Does Postal Corporation of Kenya (PCK) has a Corporate Strategic Plan?

No
0%

Yes
100%

Source: Field Survey, 2019

According to Figure 4.1, Postal Corporation of Kenya (PCK) has a Corporate Strategic Plan as
indicated by the 100 percent response confirmation by the respondents.

65
4.3.2 What does the PCK’s Corporate Strategic Plan entail?
Figure 4.2 indicates that, the PCK’s Corporate Strategic Plan entails the following:

Returning PCK to profitability which was rated at 94%, improving on service delivery at 87%,
enhancing human resource capacity at 61% and institutionalizing risk management at 35%, among
others which were rated at 55%.

Figure 4.2: What does the PCK’s Corporate Strategic Plan entail?

Others 55%

Institutionalizing risk management 35%

Enhancing Human Resource Capacity 61%

Improving on service delivery 87%

Returning PCK to profitability 94%

Source: Field Survey, 2019

4.3.3 Does the period of three years outlined in the Corporate Strategic Plan of PCK affect the
overall implementation of the objectives of the Corporation?
From the research findings, PCK has a Corporate Strategic Plan that covers a period of three years.
The researcher questioned whether this strategic plan’s period of three years affected the overall
implementation of the objectives of the Corporation. As shown in Figure 4.3, 94% of the respondents
agreed that this period actually affected the overall implementation of the objectives of the
Corporation while 6% were of contrary opinion.

66
Figure 4.3: Does the period of three years outlined in the Corporate Strategic Plan of PCK affect the
overall implementation of the objectives of the Corporation?

No
6%

Yes
94%

Source: Field Survey, 2019

4.3.4 How can you rate the implementation of the Corporate Strategic Plan in the Corporation?
Figure 4.4: How can you rate the implementation of the Corporate Strategic Plan in the Corporation?

52%

23%

13% 13%

Not effective Less effective Effective Very effective

Source: Field Survey, 2019

The Corporation’s Strategic Plan implementation was rated at 52% effective, 23% less effective, 13%
very effective and 13% not effective as presented in Figure 4.4.

67
4.3.5 How can you rate the following roles of Facilities Management department in the
Corporation in line with the implementation of the Corporate Strategic Plan?
The roles of facilities management department in the Corporation in line with the implementation of
the Corporate’s Strategic Plan were rated as follows: Firstly, resource management obtained a rate of
55%, 26% and 19% for low, medium and high, respectively. Secondly, time management obtained a
rate of 32%, 39% and 29% for high, medium and low, respectively. Thirdly, customer relationship
management was rated as 16% high, 55% medium and 29% low. Contract management was rated as
13% high, 26% medium and 61% low. Fifthly, project management was rated at 19% high, 65%
medium and 16% low. In addition, budget management was rated as 10% high, 42% medium and
48% low. Seventhly, health and safety management was rated as 23% high, 42% medium and 35%
low. Lastly, the respondents rated human resource management at 32% high, 55% medium and 13%
low, as per Figure 4.5 below.

Figure 4.5: How can you rate the following roles of Facilities Management department in the
Corporation in line with the implementation of the Corporate Strategic Plan?

High Medium Low

Resource Management 19%

26%
55%
Time Management 32%
39%
29%
Customer Relationship Management 16%
55%
29%
Contract Management 13%
26%
61%
Project Management 19%
65%
16%
Budget Management 10%
42%
48%
Health and Safety Management 23%
42%
35%
Human Resource Management 32%
55%
13%

Source: Field Survey, 2019

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4.3.6 How can you rate the implementation of the objectives of the Facilities Management in
line with the Corporate Strategic Plan?
The respondents rated implementation of the objectives of the Facilities Management in line with the
Corporate’s Strategic Plan, at 55% effective, 23% not effective, 16% less effective and 6% very
effective, as demonstrated in Figure 4.6 below.

Figure 4.6: How can you rate the implementation of the objectives of the Facilities Management in
line with the Corporate Strategic Plan?

Not effective Less effective Effective Very effective

6%
23%

16%
55%

Source: Field Survey, 2019

4.3.7 Do you consider Facilities Management department to have been contributing towards
the attainment of the Corporation’s goals?
From the data gathered, 81% of the respondents considered Facilities Management to have been
contributing positively towards the attainment of the Corporation’s goal while 19% were of the
contrary opinion as presented in Figure 4.7.

69
Figure 4.7: Do you consider Facilities Management department to have been contributing towards
the attainment of the Corporation’s goals?

Yes No

19%

81%

Source: Field Survey, 2019

4.3.8 How can you rate the following performance management and measurement tools used at
PCK to measure the implementation of the overall body Corporate’s goals?
Figure 4.8: How can you rate the following performance management and measurement tools used
at PCK to measure the implementation of the overall body Corporate’s goals?

High Medium Low

74%
Profitability Index 16%
10%
94%
Performance Appraisal 3%
3%
23%
Customer Satisfaction Baseline Survey 58%
19%
13%
Staff Satisfaction Baseline Survey 26%
61%
68%
Corporate Performance Contracting 26%
6%
84%
Government Performance Contracting 13%
3%

Source: Field Survey, 2019

70
The performance management and measurement tools used at PCK to measure the implementation
of the overall body Corporate’s goals were rated as follows as shown in Figure 4.8 above: To begin
with, the profitability index was rated as 74% high, 16% medium and 10% low. Secondly,
performance appraisal attained a rating of 94% high, and 3% for both medium and low. Thirdly,
customer satisfaction baseline survey scored a rating of 23% high, 58% medium and 19% low.
Fourthly, staff satisfaction baseline survey was rated at 13% high, 26% medium and 61% low. Fifthly,
corporate performance contracting was rated at 68% high, 26% medium and 6% low. Lastly,
Government performance contracting was rated at 84% high, 13% medium and 3% low.

4.3.9 What are the Facilities Management department’s main objectives in line with the
Corporate Strategic Plan
Figure 4.9: Facilities Management department’s main objectives in line with the Corporate Strategic
Plan

Others 61%
Improving efficiency of processes 52%
Customer satisfaction 65%
Maximizing revenue 87%
Service innovation and delivery 74%
Asset Management 81%
Capacity Utilization 87%
Construction/ Project Management 61%

Source: Field Survey, 2019

The main objectives of Facilities Management department in line with the Corporate’s Strategic Plan
were outlined below as presented in Figure 4.9. They included capacity utilization which was rated
at 87%, maximizing revenue at 87%, asset management at 81%, service innovation and delivery at
74%, customer satisfaction at 65%, construction/ project management at 61%, improving efficiency
of processes at 52%, whereas 61% represented other objectives.

71
4.3.10 What are the functions of the Facilities Management department in the Corporation
From the research findings, the functions of Facilities Management in the Corporation were
elaborated as shown in Figure 4.10 below: Land survey works was rated at 55%, valuation at 94%,
installation of private boxes at 84%, asset disposal at 32%, repair/ refurbishment works at 77%,
property management at 48%, construction/ project works at 61% and leasing and letting of excess
idle space at 94% . However, other various functions mentioned attained a rate of 58%.

Figure 4.10: Functions of the Facilities Management department in the Corporation

Others 58%
Land survey works 55%
Valuation 94%
Installation of private letter boxes 84%
Asset disposal 32%
Repair/ refurbishment works 77%
Property management 48%
Construction/ Project works 61%
Leasing and letting of excess space 94%

Source: Field Survey, 2019

4.3.11 Are there enough resources allocated to Facilities Management department to facilitate
implementation of the objectives of the Corporate Strategic Plan
With regards as to whether the resources allocated to Facilities Management department were enough
to implement the objectives of the Corporate’s Strategic Plan, the results were outlined as shown in
Figure 4.11 below. 61% of the respondents agreed that tools as a resource to facilitate implementation
were enough while 39% were of the contrary view. For training, 84% of the respondents reported that
the resource were not enough, while16% said they were enough. 71% of the respondents disagreed
that human resources were enough while 29% agreed that they were adequate. Finally, for financial
resources, 32% of the respondents agreed that the finances were enough and adequately available
while 68% were on the contrary.

72
Figure 4.11: Are there enough resources allocated to Facilities Management department to facilitate
implementation of the objectives of the Corporate Strategic Plan

No. Yes.

39%
Tools
61%

84%
Training
16%

71%
Human Resources
29%

32%
Financial
68%

Source: Field Survey, 2019

4.3.12 What are the other PCK avenues that contribute to the growth of revenue in Facilities
Management department
Figure 4.12: Other PCK avenues that contribute to the growth of revenue in Facilities Management
department

Others 10%

Sale of installed private letter boxes 87%

Asset disposal 48%

Sale of property 35%

Leasing/ letting of excess space 97%

Source: Field Survey, 2019

73
Other avenues that contributed to growth of revenues in facilities management department included;
leasing/ letting of space which was rated at 97%, sale of installed private letter boxes at 87%, asset
disposal at 48% and sale of property at 35%. On the other hand, other avenues amounted to a rating
of 10% as shown in Figure 4.12 above.

4.3.13 Do the roles in Facilities Management departmental override with the overall Corporate
Strategy’s functions?
According to Figure 4.13 below, 71% of the respondents disagreed that the roles in Facilities
Management department override with the Corporate’s Strategy functions whereas 29% agreed that
the roles override.

Figure 4.13: Do the roles in Facilities Management departmental override with the overall Corporate
Strategy’s functions?

Yes No

29%

71%

Source: Field Survey, 2019

4.3.14 What are the challenges faced in Facilities Management department during
implementation of the objectives
As indicated in Figure 4.14, the challenges faced in Facilities Management department during
implementation of the objectives included; poor working environment which was rated at 39%,
delayed payment to contractors at 90%, lack of property management software at 100%, inadequate
supervision of projects at 87%, lack of innovation at 52%, incompetent contractors at 84%, corruption

74
at 100%, lack of expertise at 97% and inadequate funds at 87%. In addition, other challenges
amounted to a rating of 26%.

Figure 4.14: Challenges faced in Facilities Management department during implementation of the
objectives

Others 26%
Poor working environment 39%
Delayed payment to contractors 90%
Lack of property management softwares 100%
Inadequate supervision of projects 87%
Lack of innovation 52%
Incompetent contactors 84%
Corruption 100%
Lack of expertise 97%
Inadequate funds 87%

Source: Field Survey, 2019

4.3.15 What are the possible improvements that can be employed to streamline the challenges
being experienced in Facilities Management department
From the survey conducted, Figure 4.15 below shows the possible improvements that could be
employed to streamline the challenges experienced in Facilities Management department which
included the following ratings; Enhance good working conditions at 55%, innovation at 65%,
introduction of property management soft wares at 100%, prompt payment to contractors at 90%,
streamline procurement processes at 77%, due diligence of contractors at 84%, transparency and
accountability at 97%, enhancing professionalism or skilled labour at 97% and adequate funding at
97%. Other improvements accrued a rating of 23%.

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Figure 4.15: Possible improvements that can be employed to streamline the challenges being
experienced in Facilities Management department

Others 23%
Enhance good working environment 55%
Innovation 65%
Introduction of property management… 100%
Prompt payment to contractors 90%
Streamline procurement processes 77%
Due diligence of contractors 84%
Transparency and accountability 97%
Enhancing professionalism/ skilled labour 97%
Adequate funding 97%

Source: Field Survey, 2019

4.3.16 (a) Establishing the Strategic Foundation

From the data gathered as shown in Figure 4.16, the following factors were employed to establish the
strategic foundation namely; for participation by management and general staff in setting goals, 74%
of the respondents agreed while 26% disagreed. Secondly, on whether the Corporation measured
actual performance versus goals, 87% of the respondents agreed whereas 13% were on the contrary.
Thirdly, on whether the goals set appear realistic yet challenging, 55% of the correspondents agreed
while 45% were on the contrary. Fourthly, on whether the goals accommodate quality, time frame
and cost targets and whether they were observable or measurable, 90% of the respondents were of
the opinion whereas 10% were on the contrary. Fifthly, on whether goals specify targets by volume
and quantity, financial and time, 81% of the respondents were of the opinion while 19% disagreed.
Sixthly, on whether the short- and long-term goals had measurable targets, 87% of the respondents
agreed on that opinion whereas 13% disagreed. Seventhly, on whether the Corporation had written
short term and long-term goals, 61% of the respondents agreed whereas 39% disagreed. Eighthly, on
whether the management and general staff were aware of the strategic plan and understood the
mission statement, 71% of the respondents agreed whereas 29% disagreed. Lastly, on whether the

76
Corporation had a written mission statement, 97% of the respondents agreed whereas 3% were on the
contrary.

Figure 4.16: Establishing the Strategic Foundation

No Yes

Do Management and General Staff whose

26%
responsibilities are affected, participate in
74%
setting goals?
Does the Corporation systematically measure 13%
actual performance vs. goals? 87%

From your experience, do the goals appear 45%

realistic yet challenging? 55%
When appropriate, do the goals accommodate
10%
quality, time frame, and cost targets? Are they
90%
observable or measurable?
If appropriate, do the goals specify targets by 19%
volume or quantity, financial and time? 81%
Do the short and long term goals have
13%
measurable targets e.g. volume, market share,
87%
growth rate and profitability?
Does the Corporation have written long-term 39%
(3-5 years) and short-term (1-year) goals? 61%

Are all management and general staff aware of 29%

the Mission Statement? Do they understand it? 71%

Does the Corporation have a written Mission 3%

Statement? 97%

Source: Field Survey, 2019

4.3.17 (b) Managing strategic plan implementation

From the data collected, as shown in Figure 4.17, the following factors were employed in managing
strategic plan implementation which included; Firstly, on whether the individuals responsible for
strategic planning and implementation were rewarded for successful performance, 68% of the
respondents were in an agreement whereas 32% were not. Secondly, on whether the Corporation

77
reviewed and monitored data regularly and revised strategic decisions appropriately, 100% of the
respondents were in agreement. Thirdly, on whether the Corporation had developed an organised
system for monitoring how well the performance standards are met, 87% of the respondents were in
total agreement whereas 13% did not. Fourthly, on whether the Corporation had clearly set defined
and measurable performance standards for each plan element, 55% of the respondents were in
agreement whereas 45% were not. Fifthly, on whether there were sufficient resources allocated for
the implementation of strategic plan, 61% of the respondents were in agreement whereas 39% were
not. Sixthly, on whether the Corporation had clearly assigned lead responsibility for action plan
implementation to a person or a team, 97% of the respondents agreed whereas 3% were on the
contrary. Lastly, on whether the Corporation made strategic decisions based upon the strategic plan,
94% of the respondents agreed whereas 6% were on the contrary.

Figure 4.17: Managing strategic plan implementation

No Yes

Are individuals responsible for strategic

32%
planning and implementation rewarded for
68%
successful performance?
Does the organization review monitoring data
0%
regularly, and revise strategic decisions
100%
appropriately?
Does the Corporation develop an organized
13%
system for monitoring how well the
87%
performance standards are met?
Does the Corporation set clearly defined and
45%
measurable performance standards for each
55%
plan element?
Are sufficient resources allocated for 39%
implementation of the Strategic Plan? 61%
Does the Corporation clearly assign lead
3%
responsibility for action plan implementation
97%
to a person or team?
Does the Corporation make strategic decisions
6%
(implementation action plans) based upon the
94%
strategic plan?

Source: Field Survey, 2019

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4.4 Section 2: PCK Tenants’ Perspective:
This section brings out the opinions, views and perceptions of PCK Tenants with regards to the impact
of an organization’s strategy on the performance of Facilities Management as guided by the
questionnaire attached on the appendices.

4.4.1 Are the health and safety issues of the building occupants adhered to by the Facilities
Management department?
The study sought to know whether there was adherence of health and safety issues of the building by
Facilities Management department. From Figure 4.18 below, 69% of the respondents agreed that
there was adherence by the Corporation whereas 31% were in disagreement.

Figure 4.18: Adherence of health and safety issues of the building by Facilities Management

31%

69%

Yes No

Source: Field Survey, 2019

4.4.2 Is the physical environment of PCK well managed and conducive to work in?
From the data findings, it was established that 54% of the respondents agreed that the physical
environment of PCK was well managed and conducive to work in whereas 46% were in disagreement
as shown in Figure 4.19.

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Figure 4.19: Is the physical environment of PCK well managed and conducive to work in?

54%

46%

Yes No

Source: Field Survey, 2019

4.4.3 Is the working area cleaned adequately and frequently enough to the expected standards?
According to Figure 4.20 below, 85% of the respondents were in disagreement that the working area
at PCK was cleaned adequately and frequently enough to the expected standards whereas only 15%
were in agreement.

Figure 4.20: Is the working area cleaned adequately and frequently enough to the expected standards?

85%

15%

Yes No

Source: Field Survey, 2019

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4.4.4 Are the maintenance and repair issues undertaken as and when required?
Figure 4.21: Are the maintenance and repair issues undertaken as and when required?

Yes No

31%

69%

Source: Field Survey, 2019

On whether the maintenance and repair issues were undertaken as and when required, 69% of the
respondents were in agreement while 31% were on the contrary as shown in Figure 4.21 above.

4.4.5 Is the staff in the Facilities Management department competent enough with the required
skills to undertake the roles of the department?
Figure 4.22: Is the staff in the facilities management department competent enough with the required
skills to undertake the roles of the department?

77%

23%

Yes No

Source: Field Survey, 2019

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The study sought to know whether the staff in Facilities Management department were competent
enough with the required skills to undertake the roles of the department. According to Figure 4.22
above, only 23% of the respondents were in agreement whereas 77% were in disagreement.

4.4.6 Timely provision of various Facilities Management parameters at PCK

The study sought to know whether there was timely provision of various Facilities Management
parameters at PCK. According to Figure 4.23 below, 54% of the respondents agreed that there was
timely provision of receipts upon payment, whereas 46% disagreed. Secondly, 38% of the
respondents agreed that there was timely provision of invoices while the other 62% disagreed.
Thirdly, 46% of the respondents concurred that there was timely provision of leases, whereas 54%
did not. Lastly, only 23% of the respondents concurred that there was timely provision of letters of
offer upon leasing of idle or excess spaces, whereas 77% disagreed.

Figure 4.23: Timely provision of various parameters of PCK

No Yes

46%
Timely provision of receipts
54%

62%
Timely provision of invoices
38%

54%
Timely provision of leases
46%

77%
Timely provision of letter of offer
23%

Source: Field Survey, 2019

4.4.7 Rating of the level of functionality and effectiveness of Facilities Management department

As indicated in Figure 4.24 below, the level of functionality and effectiveness of Facilities
Management department was rated as follows: 15% not effective, 69% less effective and 15%
effective respectively.

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Figure 4.24: Rating of the level of functionality and effectiveness of facilities management
department

69%

15% 15%

0%

Not effective Less effective Effective Very effective

Source: Field Survey, 2019

4.4.8 Recommendations on how to improve the general state of Postal Corporation of Kenya
buildings
Figure 4.25: Recommendations to improve the general state of PCK

Others 31%
Improving on general cleanliness of
77%
buildings
Employment of fire mitigation measures 92%

Harmonisations of rents 54%

Routine maintenance of the buildings 69%

Improving security in the buildings 100%

Enhancing health and safety measures in
85%
the buildings

Source: Field Survey, 2019

The recommendations made on how to improve the general state of PCK buildings as indicated by
the respondents were outlined as shown in Figure 4.25 above. They were tabulated as follows;
improving on general cleanliness of buildings at 77%, employment of fire mitigation measures at

83
92%, harmonisations of rents at 54%, routine maintenance of the buildings at 69%, improving
security in the buildings at 100% and enhancing health and safety measures in the buildings at 85%.
Other recommendations made amounted to a rating of 31%.

4.5 Section 3: PCK Customers’ Perspective

This section brings out opinions, views and perceptions of PCK Customers with regards to the impact
of an organization’s strategy on the performance of Facilities Management as guided by a
questionnaire attached in the appendices

4.5.1 Gender of respondents

More men were interviewed, as compared to their women counterparts, with the percentages of the
male being 66 percent while female at 34 percent. Figure 4.26 clearly shows the gender disparity.

Figure 4.26: Gender of respondents

34% Male
66% Female

Source: Field Survey, 2019

4.5.2 Quality of service

The study sought to establish the quality of services offered by PCK to the customers. From the data
gathered, results were tabled as per Figure 4.27 as shown below as follows; Poor had a rating of 10%,
Fair at 7%, Very good at 10%, Excellent at 14% and Good at 59%.

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Figure 4.27: Quality of service

Poor
14% 10%
7% Fair
10%
Good
Very Good
59% Excellent

Source: Field Survey, 2019

4.5.3 Process of problem solving

In the verge of seeking on how problem solving was rated, the study found the following as shown
in Figure 4.28 below; Poor 3%, Fair 14%, Good 66%, Very good 7% and Excellent 10%.

Figure 4.28: Process of problem solving

70%
60% 66%
50%
40%
30%
20%
10% 14%
3% 7% 10%
0%
Poor Fair Good Very Good Excellent

Source: Field Survey, 2019

85
4.5.4 Quality of customer service
Figure 4.29: Quality of customer service

45%

21%
14%
10% 10%

Poor Fair Good Very Good Excellent

Source: Field Survey, 2019

In rating the quality of customer service provided by PCK to its customers, the study found out the
following as reflected on Figure 4.29 above; A rating of Poor at 10%, Fair at 14%, Good at 45%,
Very good at 21% and Excellent at 10%.

4.5.5 Time taken by customer service representative to solve a customer’s issue

The study sought to establish the time taken by customer service representative to solve a customer’s
issue. According to Figure 4.30 below, the results were shown as follows; Excellent was rated at 10%,
Fair at 24%, Very good at 14% and Good at 52%.

Figure 4.30: Time taken by customer service representative to solve a customer’s issue

10%0%
24%
14%

52%

Poor Fair Good Very Good Excellent

Source: Field Survey, 2019

86
4.5.6 Knowledge of customer service representative
In addition, the study sought to know whether the customers were aware of the level of knowledge
of the customer service representative while providing the service to the customer. The results of the
ratings were as shown in Figure 4.31 below and as follows; Poor at 3%, Fair at 10%, Good at 31%,
Very good at 31% and Excellent at 24%.

Figure 4.31: Knowledge of customer service representative

31% 31%

24%

10%
3%

Poor Fair Good Very Good Excellent

Source: Field Survey, 2019

4.5.7 Wait time for a customer to be attended to

From the data findings, the study sought to know the wait time the customer could take to be attended
to. From Figure 4.32 below, the outcome of the ratings was as follows; Fair at 38%, Good at 28%,
Poor at 24, Very good at 7% and Excellent at 3%.

Figure 4.32: Wait time for a customer to be attended to

Poor Fair Good Very Good Excellent

7% 3%

24%
28%
38%

Source: Field Survey, 2019

87
4.5.8 Overall satisfaction with security status while receiving service from PCK
The overall satisfaction with the security status while receiving the service by PCK customers was
one of the key areas undertaken by the study. From the data obtained and tabled in Figure 4.33 below,
the ratings of the results were outlined as follows; Poor at 7%, Fair at 3%, Good at 28%, Very good
at 45% and Excellent at 17%.

Figure 4.33: Overall satisfaction with security status while receiving service from PCK

45%
28%
17%
7% 3%
Poor Fair Good Very Good Excellent

Source: Field Survey, 2019

4.5.9 Overall satisfaction with general conditions of the premise while receiving the service
On the overall satisfaction with general conditions of the premise while receiving the service by PCK
customers, the following was reported. From the study findings as shown on Figure 4.34 below, the
results were as follows; Poor was rated at 3%, Fair at 48%, Good at 28%, Very good at 17% and
Excellent at 3%.

Figure 4.34: Overall satisfaction with general conditions of the premise while receiving the service

Excellent 3%
Very Good 17%
Good 28%
Fair 48%
Poor 3%

Source: Field Survey, 2019

88
4.5.10 What were the possible ways you would recommend to improve the general state of
business at PCK?
From the data findings, the recommendations on possible ways to improve the general state of
business at PCK by its customers were as shown in Figure 4.35 below. They include; enticement of
customers through commissions and rewards for services offered at 24%, improving security through
screening and use of CCTV cameras at 41%, advertisement and promotion of PCK products and
services at 66%, sensitization of customers on PCK products and services at 59%, enhanced staff
supervision at 90%, training staff on customer care at 86% and automation of services at 79%. Other
recommendations made attributed to a rate of 45%.

Figure 4.35: Recommendations on improving general state of business at PCK

Others 45%
Enticement of customers through
24%
commissions and rewards
Improving security through screening and use
41%
of CCTV camera
Advertisement and promotion of PCK
66%
products and services
Sensitization of customers on PCK products
59%
and services
Enhance staff supervision 90%

Training staff on customer care 86%

Automation of services 79%

Source: Field Survey, 2019

4.6 Key Data Findings

From the survey conducted, the study established that the PCK’s Corporate Strategic Plan was
anchored on four thematic areas focusing on; 10% revenue growth cumulatively, improving on
customer relationship, business process improvement for operational efficiency and human capital
improvement and alignment in both skills and competency. Further, the three-year period for
implementation of the Corporate Strategic Plan was said to affect the objectives of the Corporation
as it entailed various critical action plans that ought to have been implemented within the specified

89
period. In addition, the Strategic Plan also entailed the organisational structure, human capacity and
project coordination.

The facilities management department was found to have been contributing towards the attainment
of the Corporation’s goals through; facilitating service delivery to development and management of
infrastructure, sourcing revenue from tenants and management of the premises thus creating a
conducive environment to work from. In summary, this department was considered to have promoted
PCK’s brand visibility. The department’s main objectives included; revenue growth through leasing
of excess and idle spaces, surrender of unutilized premises and disposal of assets. Other objectives
included improving service delivery, postal network optimization and carrying out scheduled
maintenance and repairs. The main functions of the department included, general management and
running of the buildings and properties belonging to PCK and ensuring that health and safety rules
were adhered to.

The study established that, the challenges faced by facilities management department included;
resource constraints as a result of lack of adequate funds to implement scheduled activities hence
affecting completion of the tasks, lack of project management skills especially on matters leasing and
tenancy issues, improper asset register, corruption and lack of innovation. Additional challenges
included; inadequate supervision skills, lack of property management soft – wares, delayed payments
to customers, poor working environment, among others. The recommendations geared towards
streamlining the mentioned challenges included; allocation of enough funds, automation of asset
register, adoption of modern property management techniques, capital injection to develop idle land,
recruitment of competent staff, frequent trainings to advance knowledge, among others.

PCK tenants and customers recommended on following in the verge of improving the general state
of the Corporation; automation of services, training on customer care services, improving on the
customer relationships, maximum utilization of resources, proper management of finances, purchase
of new fleet, improving on the security measures, sensitizing staff on all the PCK products and
services, and increasing their efficiency and reliability.

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 CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
From the analysis in the previous Chapter, key findings of the study have been identified which
informs the conclusions and the recommendations of the study. The study on “The impact of
Organization Strategy on facilities management” set out to:

a) To find out the degree at which Facilities Management function has been incorporated in the
strategic plan of PCK.
b) To investigate the extent of the level of implementation of the corporate strategic policies and
action plans on Facilities Management for PCK.
c) To evaluate the impact of Facilities Management in the achievement of strategic goals or
objectives of PCK.

5.2 Summary of Findings

The study found that Facilities Management can be one of the solutions to the challenges hampering
the achievements of the Corporate’s objectives, missions, visions and goals, if well implemented. It
is clear from the analysis that the level of functionality and effectiveness of FM in PCK is rated
highest because it supports the objectives of the organization which are in line with the Corporate
Strategic Plan for the set period. It was also established that Facilities Management was responsible
for ensuring a conducive and comfortable working environment, property management and facility
management of the Corporation’s assets. It also acts as a support unit for all the business units in the
Corporation in terms of provision of either, maintenance of the facilities, installation of all the
necessary facilities or in provision and management of relevant utilities such as water, power, among
others.

The study established that the PCK’s Corporate Strategic Plan’s mission aimed at facilitating delivery
of superior communication, distribution and financial solutions to customers and created value to its
stakeholders. The study further established that the roles of FM do not override the overall Corporate
Strategy functions but only shaped the departmental plans due to the fact that other departments also
contribute towards the overall strategic plan rather than override them. This is because the roles
played by different departments were unique to each other hence, at any given time, no department
can be found to be superior to the other in the Corporation.

91
5.3 Findings on Facilities Management
The study found out that Facilities Management department has contributed towards attaining goals
of the Corporation’s Strategic Plan whereby, the respondents unanimously responding at 100%. This
was attributed to the fact that, since the department was formed, there had been improvements
especially towards provision of essential services such as water, power, maintenance of premises and
conducive, healthy and safe working environment.

The study also came up with possible improvements in Facilities Management in order to achieve the
set goals in the Corporate Strategic Plan. The Corporation included allocation of adequate funds
towards FM department to execute relevant works, recruiting competent professionals to conduct
various facilities management functions, provision of necessary training of FM personnel and general
PCK staff, sensitization on customer care and service delivery, proper project management plans and
independence of the department from the executive management.

5.4 Conclusions of the Study

The study established the extent to which Facilities Management function has been incorporated in
the strategic plan of PCK. Further, it was established that the strategic plan of PCK revolved around
customer’s service, revenue generation, enhanced human resource capitals and extension of service
to wider base. The study further established that the role of the Facilities Management department
was in line with the implementation of the Corporate Strategic Plan at PCK and that the Facilities
Management department had contributed towards attainment of the Corporation’s Strategic Plan
goals. Its main FM objectives were also in line with the Corporate Strategic Plan and this had support
of the respondents who unanimously at 100 % response, considered that FM contributed towards
attainment of the goals of Corporate Strategic Plan. This was achieved by ensuring functionality of
the environment by integrating people, place, processes and technology. The FM has other several
functions such as maintenance and repair work, health and safety of occupants, and provision of
security, cleaning, fire safety and tendering and invitation of contractors for tendering for provision
of services. From the study, it was also ascertained that since inception of the department, there has
been a drastic improvement towards achieving the functions of FM as stated above and, in the process,
uplifting standards of the organization. This was backed by 70 % of the respondents who were on the
opinion that there has been a positive impact after the establishment of Facility Management
department at PCK.

92
The study established the extent of the level of implementation of the Corporate strategic policies and
action plans on Facilities Management for PCK as well. It was established that the rate of
implementation of the Corporate Strategic Plan in PCK was effective with a 52 % backing from the
respondents. It was also clear that the Corporation had a three-year duration plan for the
implementation of the Corporation’s objectives. The study established that the department of FM was
supported by the top management in achieving the CSP and this was evident from the respondents
who believed that since its inception, there have been drastic changes experienced in the Corporation.
It was attributed to the increased revenue, establishment of conducive working environment,
improved customer service delivery, installation and maintenance of facilities among numerous
improvements experienced after incorporation of both the FM and the CSP. However, it was noted
that the department was hampered by lack of sufficient resources especially those allocated towards
the FM department, poor staffing levels, incompetent staff and lack of independence of the
department from the executive powers who keep on influencing the day to day decision making of
the department.

The study also evaluated the impact of strategic plan on the role of Facilities Management and its
contribution to the general performance of PCK. It was established that the strategic management
formulates the strategy and documents in the strategic plan in order to communicate with the
personnel on the organization’s goals, the actions needed to achieve those goals and all other critical
elements developed during the planning exercise. Strategic management activities transform the
strategic plan into a system that provides strategic performance feedback to decision making
mechanisms. This enables the plan to evolve and grow, as requirements and other circumstances
change. The basic elements of strategic management include; Strategic Planning and Strategic
Control. Strategic planning consists of formulating strategies from which overall plans for
implementing the strategy are devised. Strategic planning is a process that has inputs, activities and
outcomes. From the study, majority of the respondents thought that it only shapes the departmental
plans while others believed that other departments contributed to the overall strategic plan rather than
override them. It was, however, clear that the impact was immense and that strategic planning had a
major role to play in the successes experienced in the Corporation, especially after implementation
and incorporation of the FM department. This is evident from the fact that there has been a major
improvement in line with the main objectives of PCK as started earlier.

93
5.5 Recommendations of the Study
The study established that the implementation of the strategic plan in the Facility Management
department in PCK had greater impact in attaining its objectives, vision, mission and goals. The study,
therefore, proposes the following as the general recommendations: -

(a) PCK Facilities Management Department

i. Facilities Management department require allocation of more resources in terms of finances,
human resource and equipment. This will enable the department run their day to day activities
and in the process, attain the objectives as set in the Corporate Strategic Plan.
ii. Constant training of staff working at the Facilities Management department. This will ensure
that the staff are well equipped and versed with the dynamic nature of their work hence not
rendering the Corporation outdated in terms of project management, service provision and
delivery.
iii. Competitive recruitment of qualified and competent professionals into the Facilities
Management department. This will ensure a smooth work flow and effective service delivery,
since the department will be able to move towards a stream - lined direction of
professionalism.
iv. Empowerment of the department in terms of decision making and reporting channels. This
will insulate the department from interference from the executive powers as well as from all
unnecessary reporting channels. It will also enhance cost effectiveness and timelessness
between decision making stage and implementation processes.
v. Based on the enhanced technology that is ever changing, the department need to automate
their systems and adapt modern advanced technology that will enhance efficient and effective
service delivery and project management during implementation.
vi. Enhancing staff control and supervision through employment of biometric equipment placed
at strategic locations, physical checks, maintenance of staff registers, effective reporting lines,
keeping proper and updated records, periodic submission of reports, frequent meetings,
documented staff manuals and disciplinary measures.
vii. Motivation of staff through incentives such as; commissions, rewards, promotions,
sponsorship for external trips and trainings. This will boost staff morale and enable them
perform their duties and responsibilities diligently with minimal supervision.

94
 (b) PCK Tenants and Customers
i. Improvement of the general cleanliness of the buildings. This can be achieved through
scheduled cleaning, change of sanitary bins and garbage collection. It can also be achieved
through routine supervision and strategic positioning of bins and instruction signs.
ii. Employment of firefighting mitigation measures. This can be achieved through installation of
fire-fighting equipment at strategic locations, fire alarms, fire / emergency assembly points,
escape routes and training of various staff as fire marshals.
iii. Harmonization of rents for leased spaces to the prevailing market rates.
iv. Routine repair and maintenance of the buildings.
v. Improving security measures in the buildings through installations of CCTV cameras and
screening machines at entrances and exits routes.
vi. Enhancing health and safety measures in the buildings.
vii. Enticement of customers through discounts and gifts vouchers. At Postal Corporation of
Kenya, this can be achieved through the sale of private letter boxes. During the sale
promotions, the first 100 customers to purchase the private letter boxes may be given a
discount of Kenya shillings one thousand. This will eventually increase revenue to the
Corporation.
viii. Automation of services at all service delivery points. The Corporation need to embrace the
ever changing technology in all their systems to aid in service delivery. This will reduce the
use of paper work and manual works as staff will be expected to
ix. Advertisement and promotion of PCK products and services through road shows, newspapers,
PCK magazines and journals, advertisement screens at various banking halls, TV and radio
stations.
x. Sensitization of customers on PCK products and services. This can be achieved through,
trainings, business talks to institutions, sponsorship of KECOSO sports in various counties as
and when they occur and sponsorship of Posta Rangers football club. Other sponsorships can
be for golf tournaments, darts tournaments and letter writing competition which is funded by
Universal Postal Union (UPU).

95
5.6 Areas of Further Study
The following are the proposed areas of further research;

1. The most preferred Performance Measurement Concept and its importance in an

organization.

2. Facility Management Forecast exploring the current trends and future outlook for
Facilities Management.

3. Impacts of Organizational Structure on Facilities Management in an organization.

96
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APPENDIXES

Appendix 1: Questionnaire for Postal Corporation of Kenya (PCK) Staff

A. SECTION ONE: PCK STAFF

Overall Management at Postal Corporation of Kenya (PCK)

1. Does Postal Corporation of Kenya (PCK) have a Corporate Strategic Plan?

Yes. No.

2. What does the PCK’s Corporate Strategic Plan entail? Explain.

....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................................
3. Does the period of three years outlined in the Corporate Strategic Plan of PCK affect the
overall implementation of the objectives of the Corporation? Explain
Yes. No
……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………

4. How can you rate the implementation of the Corporate Strategic Plan in the Corporation?
Not effective Less effective Effective Very effective
1 2 3 4

5. How can you rate the following roles of Facilities Management department in the
Corporation in line with the implementation of the Corporate Strategic Plan?
Low Medium High
Measures 1 2 3
Human Resource Management

Health and Safety Management

Budget Management

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Project Management

Contract Management

Customer Relationship
Management

Time Management

Resource Management

6. How can you rate the implementation of the objectives of the Facilities Management in line
with the Corporate Strategic Plan?
Not effective Less effective Effective Very effective

1 2 3 4

7. Do you consider Facilities Management department to have been contributing towards the
attainment of the Corporation’s goals?
Yes. No.

Explain:
....................................................................................................................................................
............................................................................................................................................

8. How can you rate the following performance management and measurement tools used at
PCK to measure the implementation of the overall body Corporate’s goals?

Low Medium High

Measures 1 2 3
Government Performance Contracting

Corporate Performance Contracting

Staff Satisfaction Baseline Survey

Customer Satisfaction Baseline Survey

Performance Appraisal

Profitability Index

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9. What are the Facilities Management department’s main objectives in line with the Corporate
Strategic Plan?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………………………
10. What are the functions of the Facilities Management department in the Corporation?
....................................................................................................................................................
....................................................................................................................................................
........................................................................................................................................
11. Are there enough resources allocated to Facilities Management department to facilitate
implementation of the objectives of the Corporate Strategic Plan in terms of:-

i. Financial Yes. No.

ii. Human Resources Yes. No.
iii. Training Yes. No.
iv. Tools Yes. No.

12. What are the other PCK avenues that contribute to the growth of revenue in Facilities
Management department?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………
13. Do the roles in Facilities Management departmental override with the overall Corporate
Strategy’s functions? If yes, explain.
Yes. No.

....................................................................................................................................................
............................................................................................................................................

14. What are the challenges faced in Facilities Management department during implementation
of the objectives as outlined in the Corporate Strategic Plan?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………

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 15. What are the possible improvements that can be employed to streamline the challenges
being experienced in Facilities Management department in order to achieve the overall body
Corporate’s goals?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………
16. Please tick and comment where applicable to evaluate the Postal Corporation of Kenya
(PCK) Strategic Plan’s foundation establishment and its implementation in the tables
provided below:-

a) Establishing the Strategic Foundation

No. Question Response Remarks

Yes No
1. Does the Corporation have a written Mission
Statement?
2. Are all management and general staff aware of the
Mission Statement? Do they understand it?
3. Does the Corporation have written long-term (3-5
years) and short-term (1-year) goals?
4. Do the short- and long-term goals have
measurable targets e.g. volume, market share,
growth rate and profitability?

No. Question Response Remarks

Yes No
5. If appropriate, do the goals specify targets by
volume or quantity, financial and time?
6. When appropriate, do the goals accommodate
quality, time frame, and cost targets? Are they
observable or measurable?
7. From your experience, do the goals appear
realistic yet challenging?
8. Does the Corporation systematically measure
actual performance vs. goals?
9. Do Management and General Staff whose
responsibilities are affected, participate in setting
goals?

110
b) Managing strategic plan implementation

No. Question Response Remarks

Yes No
1. Does the Corporation make strategic decisions
(implementation action plans) based upon the strategic plan?
2. Does the Corporation clearly assign lead responsibility for
action plan implementation to a person or team?
3. Are sufficient resources allocated for implementation of the
Strategic Plan?
4. Does the Corporation set clearly defined and measurable
performance standards for each plan element?
5. Does the Corporation develop an organized system for
monitoring how well the performance standards are met?
6. Does the organization review monitoring data regularly, and
revise strategic decisions appropriately?
7. Are individuals responsible for strategic planning and
implementation rewarded for successful performance?

THANK YOU FOR YOUR RESPONSE

111
 Appendix 2: Questionnaire for Postal Corporation of Kenya (PCK) Tenants

B. SECTION TWO: PCK TENANTS

1. Are the health and safety issues of the building occupants adhered to by the Facilities
Management department?
Yes. No.

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………

2. Is the physical environment of PCK well managed and conducive to work in?
Yes. No.
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………
3. Is the working area cleaned adequately and frequently enough to the expected standards?
Yes. No.
……………………………………………………………………………………………........
....................................................................................................................................................
....................................................................................................................................................
....................................................................................................................................
4. Are the maintenance and repair issues undertaken as and when required? Explain.
Yes. No.
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………
5. Is the staff in the Facilities Management department competent enough with the required
skills to undertake the roles of the department? Explain
Yes. No.
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………

112
 6. Please tick and comment where applicable to evaluate the Postal Corporation of Kenya
(PCK) Facilities Management’s parameters in the table provided below:-
No. Parameter Timely provision of What does it entail?
parameter
Yes No
1. Provision of letter of offer
2. Provision of leases
3. Provision of invoices
4. Provision of receipts

7. How would you rate the level of functionality and effectiveness of the Facilities
Management department?
Not effective Less effective Effective Very effective
1 2 3 4

8. What are the various ways you would recommend to improve the general state of Postal
Corporation of Kenya? Explain.
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………………………………………………………

THANK YOU FOR YOUR RESPONSE

113
 Appendix 3: Customers’ Interview Evaluation Form

Customer’s Name: Customer’s Gender: Male Female

Service sought by Customer: Date/Time/Year of Interview:

How satisfied were you with the service quality at Postal Corporation of Kenya on the basis of the parameters mentioned below?

No. Parameters Response (Please tick appropriately) Remarks

Poor Fair Good Very Excellent
1 2 3 Good 5
4
1. Quality of service
2. Process of problem solving
3. Quality of customer service
4. Time taken by customer service representative to solve my issue
5. Knowledge of customer service representative
6. Wait time for customer to be attended to
No. Parameters Response (Please tick appropriately) Remarks
Poor Fair Good Very Excellent
1 2 3 Good 5
4
7. Overall satisfaction with security status while receiving the service
8. Overall satisfaction with general conditions of the premise while
receiving the service
9. What are the possible ways you would recommend to improve the
general state of business at PCK?

THANK YOU FOR YOUR RESPONSE

114