Ownership and size as predictors of incentive plans within Swedish real estate firms

2017

Purpose -The aim is to examine how the real estate owner (decisionmaker) can ensure that the preferred tasks are prioritised. In particular, the incentives to ensure motivation to perform in order to accomplish the strategic goals of the decisionmaker are investigated. Design/methodology/approach -This research is based on an interview study of nineteen firm representatives, six decisionmakers and thirteen management representatives, all from the Swedish commercial real estate sector. Findings -The study conclude that the real estate management organisation in the outsourced management setting is govern by the contract, in detail constituting work tasks, and in the in-house management setting there are a freedom with responsibilities instead of regulations. Research limitations/implications -The research in this paper is limited to Swedish commercial real estate sector Practical implications -The insight in the paper regarding how decisionmakers creates incentives for the real estate management organisation in the different organisational settings can provide inspiration to design incentives for effort. Originality/value -It provides an insight regarding how the industry, depending on organisation setting, prioritise different work tasks and how incentives are created to enable effort.

Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Incentives In Real Estate Management Contextmentioning

confidence: 99%

See 1 more Smart Citation

Real estate management: incentives for effort

2017

“…To some extent, this behaviour can be regulated through different incentive schemes or contracts (Williamson, 1981) depending on what the real estate owner (principal) wants the manger (agent) to prioritise. But as Azasu (2011) stated, the real estate manager’s work is multidimensional and consists of both tasks that are measurable and non-measurable yet just as important. This leaves us either with an incomplete contract or incentive scheme.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Outsourced property management: the regulations of the property manager

2018

Purpose-The purpose is to identify factors on property management level for analysing incentives for an effective property management in an outsourced setting. Design/methodology/approach-This research is based on an interview study of a set of three real estate owning companies and their contracted facility management companies property management teams. Findings-The study conclude that the property manager within the facility management company is highly controlled by the contract between the real estate owner and the facility management company. However, this contract do risk the individual property manager to prioritise the wrong work tasks as she has to know exactly what to prioritise in each contract and consider in whose interest she perform each task, the real estate owner, her employer or the tenants. Research limitations/implications-The research in this paper is limited to Swedish commercial real estate sector Practical implications-The insight in the paper regarding how real estate owners creates incentives for the facility management companies property management organisation and how that is perceived by the individual property manager. Originality/value-It provides an insight regarding how the commercial real estate industry prioritise different work tasks and how incentives are created to enable effort.

“…This behaviour can to some extent be regulated through different incentive schemes or contracts (Williamson, 1975) depending on what the real estate owner (principal) wants the manager (agent) to prioritise. But as Azasu (2011 and2009) states, the property manager's work is multidimensional and consist of tasks that are measurable as well as non-measurable but still important. This leaves us either with an incomplete contract or an incentive scheme.…”

Section: Incentives In Property Managementmentioning

confidence: 99%

Incentives in Swedish commercial real estate companies: the property manager function

2017

Purpose The purpose of this paper is to identify factors on the property management level for analysing incentives for an effective property management with a focus on organising it in-house. Design/methodology/approach This research is based on an interview study of 11 firm representatives from the Swedish commercial real estate sector with in-house property management. Findings The study concludes that the property management organisation in the in-house setting is governed in an informal way, with a large portion of “freedom with responsibilities” setup instead of regulations. Research limitations/implications The research in this paper is limited to the Swedish commercial real estate sector. Practical implications The insights into the paper regarding how decision makers create incentives for the property management organisation can provide inspiration to design incentives for effort. Originality/value It provides an insight regarding how the commercial real estate industry prioritises different work tasks and how incentives are created to enable effort.