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Advantages and Disadvantages of Bringing in a Private  Management Company

Advantages and Disadvantages of Bringing in a Private  Management Company

The advantage of using a private management company is that they can help provide a range of soft, technical, and administration services. Primarily, these services relate to the overall daily running of the facility. These services include cleaning, security, catering, building management, energy management, pest control, health and safety, administrative and overall property management (unknown, 2016).

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When hiring a private management company, the financial burden of operating the facility is taken away from the local government, reducing the time spent scheduling events that might occur during the year. This can be a great advantage, but it could also take some of the localization away from the community as staff could be burdened with the corporate mentality and have difficulty negotiating salary increases or promotions. Another problem is that the management company could come in and sell tickets above the local market value.

If I were the lead government official, I think it would depend on the size of my city and the current economic factors before deciding which way I would go. I would say no to hiring an outside company to run a facility that has been the city’s staple for years and wouldn’t worry about my financial burden. If the facility had a history of losing money and had an unfavourable perception in the community, I would hire a company to help jump-start it back to a favourable financial situation and increase awareness within the community.

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Reference

Schwarz, E., Hall, S., Shibli, E. (2015). Sport Facility Operations Management: A global perspective. New York, NY: Routledge.

Unknown, (2016). Facilities Management Companies for Sports Venues, including Leisure Facility Man agent, Sports Arena Management and Stadium Management | Sports Venue Construction and Facilities Management. Sportvenueconstruction.com. Retrieved 27 October 2016, from http://www.sportvenueconstruction.com/contractors/facilities-management/

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Question 


in 150-200 words, answer the following question with references

Advantages and Disadvantages of Bringing in a Private Management Company

Advantages and Disadvantages of Bringing in a Private Management Company

Explain the advantages and disadvantages of bringing a private management company such as SMG or Global Spectrum to manage a public sports facility. If you were the lead government official in your municipality, would you hire private management or keep the facility under in-house control? Why?

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