- Transfer to less desirable unit or situation - Suspension from work
- Demotion of rank - Deferment of promotion - Dismissal
- Retirement
ITQ
What does controlling in management entails?
Feedback
Controlling in management involves comparing actual performance with planned performance and taking corrective action when and where necessary to ensure that the objectives of the organization are accomplished. The primary purpose of controlling is to ensure that everything occurs in line with the set standards.
our personal spending than the spending of our organizations. Our organizations are subject to many variables that influence both revenue and expenses. Just think for a minute about the many events that increase labor costs. Sick calls, leave of absence, and an increase in census or acuity are just a few of the incidents that increase the dollars budgeted for staff.
Objectives of budget process
■ To provide a written expression, in quantitative terms, of the plans of the organization.
■ To provide a basis to evaluate financial performance in relation to the plans of the organization.
■ To provide a tool to measure fiscal and outcome compliance with the stated plan.
■ To create a sensitivity and heightened awareness of costs relative to resources used.
Creating a budget
Nurses have been expertly educated to use the nursing process. The same type of process is the most widely used approach to preparing a budget:
- Assessment - Planning - Implementation - Evaluation Types of budgets
■ Accrual: An accounting method that records expenses as they happen and revenue as it is earned. In nursing, vacation time is accrued as the employee earns it. This is usually recorded directly on an employee’s pay stub in the pay period or month earned.
■ Bottom line: An expression that discusses the income of an organization that is the result of revenue (money earned) minus expenses:
revenue - expenses _ income (bottom line)
■ Direct cost: Items that can be directly attributed to a cost center and related to the service delivered. For example, salaries of personnel and clerical supplies for a particular patient care unit are direct costs.
■ Expense: This is the amount of money an organization spends to produce its services or products. For example, wages are an expense to produce patient care.
■ Fiscal year: A business accounting period. It is usually 12 months and is used to report fiscal activity of an organization. This accounting period can start at any month of the year and end 12 months later. For example, it may begin November 1 and end the following October 31, 20XX (the next year).
■ For-profit: An organization established with the intention of making a profit to share with owners or stockholders.
■ Full-time equivalent (FTE): An FTE is the equivalent of the cost of one full-time employee working for 1 year. In general practice, this is calculated as 40 hours per week for 52 weeks per year, or a total of 2080 paid hours per year. The 2080 hours include productive (actually worked) and nonproductive time (vacation, sick, holiday, education). More than one employee may work to reach 2080 hours to make up the FTE.
■ Indirect costs: These costs may not be directly related to the cost center but are for the good of the organization as a whole. For example, costs for an advertisement for nursing positions and for housekeeping of public areas are indirect costs.
■ Nonproductive: Time not worked but for which the employee receives remuneration, e.g., pay for vacation and sick days.
■ Not-for-profit: An organization that does not have shareholders and reinvests its profits into the business.
■ Position control: A monitoring tool to compare actual numbers of FTE employees with the number of FTEs budgeted for the cost center.
■ Productive: Time actually worked by an employee.
■ Revenue: The amount of money the organization receives for its services or product.
ITQ
What are the phases of the budgeting process?
Feedback
The phases of the budgeting process include assessment, planning, implementation, and evaluation.
Rules of budgeting
■ Manager accountable for budget, must prepare budget
■ Expenses charged to cost center that spent the money
■ Expenses under control of manager
■ Unspent budgeted funds do not carry over to next fiscal year
■ Funds do not transfer between salary, supplies, or capital equipment money
■ Variance explanation also requires a corrective plan of action
ITQ
What is peculiar about the preparation of the budget?
Feedback
The Managing Nurse must be aware that preparation of the budget is not a delegated duty under any circumstance. Therefore, the managing nurse must always prepare the budget.
Study Session Summary
Summary
In this Study Session, we defined the term communication and examined the organizational communication. We also listed and explained the types of communication and discussed the problems of communication in the nursing practice setting and/or the impact of poor communication.
We concluded by exploring through the concept of controlling as well as financial management
Assessment
Assessment
SAQ 7.1 (tests Learning Outcome 7.1) Define communication
SAQ 7.2 (tests Learning Outcome 7.3) Describe the term financial management
Bibliography
Reading
https://en.wikipedia.org/wiki/Communications_management
Study Session 8
Application of Management to Nursing Practice
Introduction
In this study session, we will consider the roles of a nurse manager in the