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ADVANTAGES:-
i) The work load of a Ward can be equally divided among all the staffs.
ii) Good interpersonal relationship is developed between the Nurse and the patient.
iii) The Nurse can be identify the problems of the patient properly as she is taking
total care of the patient.
iv) The nurses can develop their knowledge more by studying about the case,
related to the patient.
DISADVANTAGES:-
ADVANTAGES:-
DISADVANTAGES:-
i) No one is bothered much about patient’s problem as everyone is busy with their
own function.
iii)Nurses can’t increase their skill, as they are doing same duty daily.
ADVNTAGES:-
DISADVANTAGES:-
PRIMARY NURSING: In this method nurse is responsible for a patient from his
admission to till discharge or till the end of his treatment. The nurse should work in
a 24 hours basis for her patient.
ADVANTAGES:-
i) As the nurse is taking total care of the patient from the beginning so, she is more
knowledgeable about the patient’s problem.
ii) Any patient can rely on a nurse as she/he is looking her/him daily.
DISADVANTAGES:-
iii) Need more expert or efficient nurses to handle the total treatment process of a
patient.
(4)
GOALS:-To identify the goals of nursing service department, we must find out:-
b) To find out the needs for the client, whether he/she is totally dependent or
partially dependent to nursing care.
c) To look after, whether the physician’s orders are strictly followed or not.
d) To encourage staffs for in service education classes for their own update.
f) To provide job- description to all the nursing staffs, so that they can feel their
self actualization and job satisfactions.
PRINCIPLES:-
i)The basic principles of nursing service department is to provide care to all the
clients irrespective of it’s age, sex, socio- economic condition, Nationality etc.
ii) The nursing department must have to maintain good interpersonal relationship
with any other department in the hospital. To maintain a good standard of the
hospital. It is very important to maintain good nursing intervention.
iii) There are some particular code of ethics. Every nursing department must follow
the ethics while treating patients.
iv) Not only in hospital setup but also in community area the nursing services
should be increased.
v) The nurses should be empathetic to the patients but not to be sympathetic, while
giving care.
3) Nursing is the act of utilizing the environment of the patient to assist him in his
recovery. Nursing is all about management and art.
iii) UNITY OF COMMAND:- While working in any department the nursing staffs
should follow a particular command from any of their subordinates. If there is
various commands, then everybody become confused. It is the responsibility of the
nursing department to make a single decision and that must be followed.
iv) UNITY OF DIRECTION:- It is also same like the previous principal, that
nurses should follow. The nursing department should take decision about which
direction supposed to be followed and only then instruct the staffs.
v)a) SELF MANAGEMENT:- Every nurses should know the self management.
They must be empathetic for their patient but not be sympathetic. They must
respect the various patient’s religious beliefs, values and Nationality.
In our country there are three levels of health care delivery:- Primary,
Secondary, Tertiary .
(7)
SECONDARY HEALTH CARE DELIVERY:- It is the first referral unit for the
primary health care system. Secondary health care delivery provides, care for the
antenatal mothers, normal vaginal delivery, medical aseptic dressing etc. These are
done by Sub-Divisional Hospital, District hospital etc.
TERITARY HEALTH CARE DELIVERY:- All the critical patients from both
primary and secondary health care delivery can be referred to here. The services,
that are provided here are lower uterine caesarean section, any surgical procedure,
medical emergencies etc. mainly any medical College and Hospital are
responsible for providing these services.
ii) Later in the 20th century, there was some specialization for courses like
Pediatrician, Psychiatrist , Medical, surgical etc.
iii) Last in the 20th century there was no boundaries in patient care. For any
treatment, patient can avail hospital (24x7)
v) Attitude of the peoples are also changing day by day. They prefer any accredit
or standard hospital for their relative’s treatment. Money is not a bar now-a-days
for treatment.
organizations or hospitals are providing best possible health care to us. Their
principle is to do the optimum level of cost but without compromising the quality.
Of the 61 studies that met the inclusion criteria, higher cost was
associated with better quality of carein34% indicating a positive or mixed positive
association between the two. In 18 studies(30%) the association was negative or
mixed negative (lower cost was associated with higher quality) and in 22 studies
( 36%) the association was non existents, mixed, imprecise or indeterminate.
(11)
Still more data are needed for clinicians and policy makers to make
effective decisions that effect the clinical and fiscal health of the Nation. Payers
should reconsider the extent to which they shift financial risk onto provider
organizations and incentives for quality targets should be offered to promote
process of care that are well supported by evidence or conversely to discourage
care shown to be inappropriate or of poor value.
iv) Financing.
BEHAVIOR OF PROFESSIONALS:-
(12)
Diagnostic Procedure.
PARTICIPATION OF PEOPLE:-
Utilization of services
Varies from Country to Country Indian system is more cost effective if health
workers are skilled and effectively supervised.
Name : Sukannya Auddy
Ans. Planning:- Planning can be defined as the process of identifying any particular
problem or situation, look after the premises, where the situation or problem is actually exists,
selecting goal or objective to solve the situation and prioritize them and then ultimately
monitoring and evaluation to solve it. Before taking any decision , whether it is official or not
proper planning is very important. Planning helps us to do any work in a systematic and
organized manner. It reduces the uncertainty of future. By doing planning we can get an
approximate estimation and accordingly we can do our job.
For doing planning properly at first we have to select objectives then accordingly the
process will be forwarded.
Steps of planning:- By doing proper planning, we can reduce the uncertainty of future.
But proper planning requires various steps to be followed:-
i) Selecting objective:-Before doing planning firstly we have to know for what we are going
to do planning. For that reason selecting objective is very important. By knowing the objective,
we can chalk out about what we are going to do and approximately how much time is required.
Values of organization play a vital role in it. After selecting the objectives, prioritizing them is a
difficult task. People must know what to do first and what to do next. Wrong prioritization will
hamper the total planning process.
ii) Selecting planning premises:- After selecting the object, we must identify the
premise in which the planning can be implemented. It may be inside of the Organization or
outside of the organization.
iii) Tangible & intangible premises :- Tangible premises means it is quantitative in
nature. It can be measurable. Growth of the population can be tangible.
But when the planning premise can’t be controlled by any one, then it is named as
uncontrollable planning process. For example:- Any type of natural calamities.
v) Selecting planning time period:- When we are doing planning then we must know the
given time period to implement the planning. It may be short
term planning or long term planning, where period may be extended up to 5 to 10 years. The
factors influencing the planning period areas under:-
a) Lead time :-In Developing and Commercial Launching of a Product. For example:-
Pharmaceutical Company develops a drug for some disease. Everything is finalized, tests are
carried out, suitable permissions are obtained, the Company may go in for commercial
production. The intervening period is the lead time.
b) Pay back period- Time requirement to recover capital investment machinery, equipment
etc. For example:- A machine costing Rs. 10,00,000/-, generates cash flow of Rs. 2,00,000/- per
year. Then the length of planning period should be at least 5 years.
vi) Selecting alternative course of action- Planning is nothing but choosing from
alternatives. After selecting the planning premises or time period, if it is not suited for the
organization or it is not good for all- then we must think an alternative planning. Planning must
be done in such a way, so that it must fulfill everybody’s need as well as fulfill organizational
objective.
vii) Evaluation:- After thinking for alternative course of action, the planner must evaluate the
planning. He/she must look after every steps of it. Once the planning is implemented, it can’t be
changed.
viii)Implementation of planning:- Once the course of action is finalized, plans are drawn/
formulated to derive it. Now, it lies the main action, operations and process. Usually it is done
by middle and lower level of management.
ix) Measuring and controlling:- This is the process of monitoring. Any midway
corrections if necessary are carried out to ensure the success of planning.
Ans. Henry Fayol was known as father of Administrative/ operational management. Based upon
his studies, he established principles of management. According to his principle, management is
not rigid but it is flexible. The principles are as follows:-
i) Division of works:- In any organization there are multiple goals to be achieved. It is not
possible for a person to achieve all the goals efficiently at a time. So, it is the principle of
management to divide all the responsibilities among all the employees, so that the organizational
goals must be fulfilled. For example:- in hospital the nursing department has the objective to
provide the optimum possible care to patients. For that reason the nursing Director or nursing
Superintendent is responsible for recruiting efficient and knowledgeable nurses. Nursing
supervisor or in-charge are responsible for doing communication with other departments, related
to patient care, look after for available resources and indent them as per need. Nursing staffs are
responsible directly for patient care and his/her regular activities. All the works can’t be possible
for a single individual. So, division of work is very important.
ii) Authority and responsibility:- Management is dividing work among all the employees.
Then every employee must have the authority or power for their job. They should responsible
enough for doing their own job. For example:- Every nursing staff must have the power or
authority to take prompt decision in emergency situation. If she has to wait for the supervision of
higher authority then it is impossible to handle critical situation. At the same time they all must
be responsible to their own job. They should handle patients with full of responsibilities. While
in the off duty they must handed over the full responsibilities to other on duty staffs to handle it
carefully.
should follow particular rules and regulations to work together. For example: in hospital every
nurses should wear uniform while doing their duty. They should come to their duty on time.
Without prior information they can’t take leave. These are the disciplines.
iv) Unity of command:- In every organization there are various departments and
departmental heads. Bur before passing any information or command to the subordinates the
superiors must discuss with each other’s and the subordinate should receive information or
command from only the superior. If they receive different in formations from different superiors,
then there will be chaos and confusion. For example:- When any policy or protocol is changed in
hospital then the nurses or other employees should be conveyed by one supervisor only. Every
employees should know whose advice to be followed.
v) Unity of direction:- It is same like the previous principle. All the employees should
receive directions from one supervisor only. Supervisors should decide who will direct the
employees and how will be directed. By providing various direction to the subordinates will
increase chaos and confusion.
vi) Subordination of individual interest to general interest:- In any organization,
interest or need of the organization will have more priority than the need or interest of any
employee. Everybody in concern about the goals of the organization to be fulfilled. For
example:- if any employee needs 2 days leave on any particular date due to some personal issue.
At the same time the hospital has some audit programme on the particular date. So the
management will not sanction any leave for the employee and he/she must participate in the
organization. So the organization is always the priority.
vi) Scalar chain:- It means maintaining proper channel. Every communication or passing of
any information must be done through proper channel only. For Example:- If any nursing staff
need any leave then firstly she should contact with her Sister-in-charge. If she agrees then only
she can go to nursing supervisor for sanctioning the leave. At the same time the while passing
any information from the higher authority , the department must pass it to their direct subordinate
and from them the information must be passed to other subordinates in a proper and orderly
manner.
vii) Order:- The principle of management is to do any job or duty in any arranged and
organized manner. If there is no organized or ordered way to do the functions then chaos or
confusion will arise. For example:- While checking the store or available resources in the ward
or department the nursing- in-charge must note down what are in crisis and what are needed
extremely in daily basis, then she can do the indent. Without checking the store the indent will
be of no use. So, everybody should do their duties in orderly manner.
x) Stability of tenure:-Employees can have much interest in their job if they have stability in
their work or job security. So management must provide job security to their employees to fulfill
organizational goal.
xi) Centralization:- It is the principle of management to take decision or do any process
centrally. For example:- In hospital when any policy is implemented hen the decision of the
superior or supervisors is final. The decision of subordinates is not applicable.
xiii) Initiative:- Employees should give freedom to conceive and carry out their ideas and
plans, even if there are mistakes in their work. This will encourage them to innovate and take
decisions.
xiv) Esperit de corps:- Promoting team spirit will give the organization a sense of unity and
unity in strength. Fayol says that even small factors should help to develop team spirit. He
suggested use of verbal communication to develop team spirit.
Thus Fayol for the first time systemized the managerial behavior. He focused on total
organizational management. Fayol advocated that management can be taught and need not be
inborn.
ii) Clash of interests:- Individuals join an organization to fulfill their personal goals
(Physiological or psychological). Often individuals fail to appreciate how the
achievement organizational goal will satisfy their own goals.
They tend to work at cross-purposes. Co-ordination helps to avoid conflict
between individual and organizational goal. It brings about harmony between the two
types of goals by making individuals see how their jobs contribute to the common goals
of the organization.
iii) Conflict:-In an organization, conflict may arise between line managers and staff
specialists or between management and workers. Human nature is such that a person
emphasizes his own area of interest and does not want to get involved in the activities of
the others. Co-ordination avoids potential sources of conflict.
iv) Different outlooks:- Every individual in the organization has his own way of
working and approach towards problems, capacity, talent and sped of people differs
widely. It becomes imperative to reconcile differences in approach, timing and effort of
different departments to secure unity of action. Cooperation serves as the binding force in
an organization in the face of narrow and sectional outlook. Coordination becomes
difficult due to differences in the attitudes and working styles of personnel.
c) resistance to change.
Quality circle working is used as a main process to achieve it’s objectives. Member’s
creativity is tapped to solve their day to day work related problems. It is through this process
they become cohesive team and their organizational owner ship get developed. Hence it is
necessary that the group member should understand this process very early.
Disadvantages-
i) Risk of running out of stock:- By not carrying much stock, it is imperative. We
have the correct procedures in place to ensure stock can become readily available and
quickly. To do this we need to have a god relationship with the supplier. imperative that
companies understand their sales trends and variances in close detail. Therefore one need
a factor that in to planning for inventory levels, ensuring supplies are able to meet
different volume requirements at different times.
If run properly JIT inventory management is seen as one of the best ways of
managing inventory. While it is not without risks, it has significant rewards and is ideal
for those who are able to plan carefully in advance and build strong relationship with
suppliers.
JIT means that one become extremely reliant on the consistency of supply chain.
ii) Lack of control over frame:- Having to rely on the timeliness of suppliers for
each order puts one at risk of delaying the customer’s receipt of goods. If anyone don’t
meet customer’s expectations, they could take their business elsewhere, which would
have a huge impact on business.
iii) More planning is needed:- With JIT inventory management, it’s imperative
that companies understand their sales trends and variances their close detail. Therefore
one need a factor that into planning for inventory levels, ensuring supplies are able to
meet different volume requirements at different times.
Ans. Managerial skill :- In the process of management, the basic quality of all the
managers must be skill. A skillful manager can take prompt decision in any situation and handle
the situation to overcome from it.
Skill can be defined as the process of utilizing one’s knowledge in to action. In any
organization, skill full person is very necessary. Bookish knowledge is sufficient for completion
of any study. When we are implementing that knowledge into action, then that is our
achievement or key to success.
ii) Human skill:- It means the ability to communicate with peoples. Communication
should be done with all the levels. By a successful communication we can get to know other’s
feelings towards us and obviously our management and organization. If there is any criticism in
the management process that can be identified only by communication with others. So the
managers in any organization must adopt the human skill. For example:- In any hospital, nursing
department is the key to maintain successor standard of organization. If the nursing services are
good, then the quality of the hospital automatically be good. So, it is the responsibility of the
nurse managers to do communication with the clients to short out the limitations of their
services. Nurse managers must have the communication skill to communicate
interdepartmentally to improve the quality of services.
iii) Conceptual skill:- It means the ability to know the concept of the job. This skill is
necessary mainly for the top level of the managers. It is the ability to take broad and futuristic
view, to analyze various forces and ability to assess environment and deciding about the changes
to be implemented. It is the creative and innovative ability and having a vision. These skills
enable them to set for themselves the organizations and the people.
All these skills are necessary for all the managers, their relative importance depends
mainly upon the rank of the manager in the organization.
S- Strength
W- Weakness
O- Opportunities
T- Threats
Before doing a large business deal or before launching a new product in market, one
should look after the SWOT for success and his achievement.
i) If you can’t find any strength for your organization or your business product then write down
the characteristics of it. Definitely one can find strength from it.
ii) Look at your competitor and the strength of his/her product. It will help to find out own
strength.
iv) What is the USP ( Unique selling proposition) of your Organization? When looking at your
strength, think about them in relation to your competitors. For example:- if all of your
competitors provide high quality products, then a high quality production process is not a
strength in your organization market, its necessity.
It’s best to be realistic now, and face any unpleasant truths as soon as possible.
Useful opportunities can come from such things as:- Changes in technology and markets
on both abroad and narrow scale.
Changes in Govt. policy related to your field.
Changes in social patterns, population profiles, life style changes and so on.
Local events
Threats:-i) What obstacles do you face?
ii) What your competitors are doing?
iii) Are quality standards or specifications for your job, products or services changing?
iv) Do you have bad debt or cash-flow problems?
v) Could any weakness seriously threatening your business?
SWOT analysis is a simple but useful framework for analyzing organization’s
strength and weakness and the opportunities and threats that
can be faced. It will help to focus on the strengths, minimize weakness and threats and
help for greatest possible advantage of opportunities.
When carrying out this analysis, one should be realistic and vigorous. It should be
applied at the right level and supplement it with other option generation tools where
appropriate.
Name:- Sukannya Auddy
Roll no. :_18900001
Module no. 3 (Financial Management)
i)Balance sheet:- Balance sheet is a statement, that is prepared by the organization at the
end of the particular financial time period, which shows the total investment to the organization
during that financial period, how the investment is applied in which area and how much profit or
loss is occurred from the total investment.
Objective of preparing balance sheet:- To find out how much investment is
done.
To notify detail informations that how much money is spent in which area.
To get information about profit and loss statement.
To take further decision accordingly.
Types:- Balance sheet is of two types:- Horizontal balance Sheet & Vertical Balance sheet.
Horizontal balance sheet:-
Source From where money is collected Amount
Total:
Total:
Total: Total:
Here also the total of both the column must be same.
Now various terminologies are used in balance sheet. Let us concentrate on that:-
* Borrowed capital:- When the owner is borrowing the money from others, then it is
known as Borrowed Capital.
b) Reserves:- The profit that is done from the total investment of the money, that is
added up with the capital amount, it is known as reserves.
c) Assets:- Assets mean the property of the Organization/ business. It may be tangible
or intangible. These assets will help the organization to make further income. Assets may be of
various types:-
* Fixed assets:- By doing large amount of investment, organization can have assets,
which is of long term use or permanent. These are called fixed assets. Like:- any land, building
etc.
* Current assets :- These are some major components, like cash, inventories, loans
etc.
d) Liabilities:- Liabilities means the payable amount, by which the properties or assets
can be gained. It is the claim of getting the properties for the organization These can be further
divided in to:-
* Secured loans:- Borrowing of the firm against which collateral is provided are
referred to as secured loans.
* Unsecured loans:- Borrowings of the firm against which no specific security has
been provided are referred to as unsecured loans.
Current liabilities:- These are short term liabilities, that needed to pay against the
goods purchased on bank credit or a bank draft.
ii) Profit and loss statement:- In a business deal or in an organization, if the
investment is more than the income, that means they are having loss. But if the income is more
than the investment that means they are having profit. Various profit and loss statements are:
a) Revenue:- The income that is gaining from the organization/ business is known as
revenue.
* Capital Expenditure:- When the money is used for any long term purpose, then it
is known as Capital Expenditure. For Example:- buying a land buying a machinery etc.
* Revenue expenditure:- When the money is used for any short term investment by
the organization or for any regular purpose then it is known as revenue expenditure. For
example:- paying electric bills etc.
f) Profit after tax:- The difference between income and expenditure is the profit after
Tax.
g) Provision for taxes:- This represents the estimated income Tax liability for the
period.
2) a) Write short note on depreciation.
Ans. Depreciation:- Whenever money is spent ,it is spent due to any long term or short
term investment. When money is spent due to any long term investment, then it is known as
Capital expenditure. For example:- If an organization buy a land or buy a machinery then it is
obviously for long
term use. When an organization spent money for their regular use or any short term
investment, then it is known as revenue expenditure. For Example:- Paying electricity
bills, buying any new materials etc.
Now let us concentrate on the concept of Depreciation.
Depreciation means gradual, continuous and permanent decline of the value of any
asset. In any organization depreciation is charged in the fixed assets. The amount of
depreciation is then taken as an expense. So, it reduces the profits in the profit & loss
account.
Objectives of depreciation:-
1.
For the replacement of assets: The fund equal to the amount of the
depreciation is created which will remain in the firm. After the expiry of the life of
asset, the same fund can be utilized to replace the new asset.
2. For the determination of true profit or loss: Depreciation is also an expense like
repair and maintenance which must be included in profit and loss account to ascertain
the correct profit or loss of a business for the year.
Causes of depreciation:-
Internal causes:- Wear & tear maintenance, change in production, restriction of
production, reduced demand. Any asset will gradually break down over a certain usage
period , as parts wear out and need to be replaced . Eventually the asset can no longer be
repaired and must be disposed of .
Perishability. Some assets have an extremely short life span. This
condition is most applicable to inventory , rather than fixed assets.
External causes:- Obsolescence and effluxion of time. Some equipment will be
rendered obsolete by more efficient equipment , which reduces the usability of the
original equipment.
When there is damage to or impairment of an asset , it can be
considered a cause of depreciation , since either event changes the amount of depreciation
remaining to be recognized.
For the purpose of keeping books of account, the choice of amount of depreciation is with the
management. For companies, the minimum amount of depreciation is suggested by schedule 14
of the Companies Act, 1956. This is the minimum to be charged. A business could change
different rates for different assets, based on life, use and other factors.
Ans. The determinants of working capital are not uniform in all enterprises and therefore
factors responsible for a particular size of working capital in one company are different than in
other enterprise. Therefore a set pattern of factors determining the optimum size of working
capital is difficult to suggest. Some of more important working capital are:-
Public utilities and railway Companies with huge fixed investment usually the lowest
needs for current assets, partly because of cash, nature of their business and partly due to their
selling a service instead of a commodity.
iv) The proportion of the cost of raw materials to total cost:- Where the
cost of raw materials to be used in manufacturing of a product is very large in proportion to the
total cost and its final value, working capital required will also be more.
That is why, in a cotton textile mill or in a sugar mill, huge funds are required for
this purpose.
vi) Terms of credit:-A company purchasing all raw materials in cash and selling on
credit will be requiring more amount of working capital. The essence of this is that the period
which elapses between the purchase of materials and sell of finished goods and receipt of sale
proceeds, will determine the requirements of working capital.
Ans. A financial manager is one, who is responsible for looking the financial activities of an
organization, selecting budget for their next financial year, checking the assets and liabilities and
also profit and loss of the organization.
The financial manager must have to follow various activities. These are:-
look at:-
iv) Profit allocation:- If the income from the organization/business is more than
the investment, then it is known as profit. Now, it is the duty of the financial manager to
make the appropriate utilization of the profit. He should select that how much amount
should be distribute among the employees and how much should retain for further use.
v) Risk management:- In all the functions and analysis, there is always going to
be risk involved, which cannot be ignored. The aim to be to balance the risk taken and to
ensure that the returns are in tune with the risk.
Thus the financial management is an important function for the success of any
business. It has to be given adequate if not equal importance as other fields as in this
competitive scenario.
vii) Choice of sources of funds :-Before the actual procurement of funds ,the
financial manager has to decide the sources from which the funds are to be raised. The
management can raise finance from various sources like equity shareholders , preference
shareholders , public deposits , financial institutions etc.
viii) Financial control:- Evaluation of financial performance is also an
important function of financial manager. The overall measure of evaluation is Return on
Investment (ROI). The other techniques of financial control and evaluation include
budgetary control , cost control , internal audit. The financial manager must lay emphasis
on financial planning as well.
Ans.) Budget is the written financial plan of any organization, aiming at controlling and
allocating resources.
In any of the described approaches to budgeting, the key point is that the
budget is a management tool to assess the business on track or adjustments are required.
Budgets should take account of market conditions, such as margin pressure,
macroeconomic factors, such as changing tax legislations as well as internal factors such
as resource allocation.
There are generally two approaches of budgeting. These are:-
i) Top down approach
ii) Bottom up budgeting.
i) Top down approach:- It is called top-down approach because the budgets are
made by the top executed and then the money is passed down the line to various
departments. This approach is applied in affordable method percentage of sales,
competitive parity method of budgeting (ROI)
ABC Limited prepares their budget through Top- down Approach. The management,
to increase the overall profitability of the organization sets a target for sales team to
sell 12000 units at a lower price for the year. However the production unit does not
have the capacity to produce 12000 units in a year and this may leads to a day to
day clash between sales and production. If the management would have taken inputs
from the production unit too this situation would not have been arise. On the other
hand sales team has if achieved the target, they will expect a raise or incentive for
their order book even though the same was not delivered due to lower production. The
management may have to bear this cost without any addition in the top line.
Do have a look at this course on Financial Modeling where you learn all about
projecting Income Statement, Balance sheets and Cash flows along with its key
business, revenue and cost drivers.
ii) Bottom up budgeting:- In this method promotion adjectives are set for the tasks to be
performed. All the necessary activities to achieve the objectives are planned. The cost of these
activities are ascertained and budgeted. The total promotion budget is then approved by top
management. This is also known as the buildup approach of budgeting.
Bottom up budgeting
1. Budget may not be at par with the overall objective of the organization as it
was been prepared by the managers on the business unit level.
2. Budget preparation will be slow and dispute between inter department may
arise.
3. Management may lose the control over the organization’s forecasting.
4. Managers may set targets which are easy to achieve to reduce pressure from
them.
At a lower price sales team budgeted sale of 20000 units, and the same units
budgeted by production too with the additional incentive to all the workers @ $1.
Eventually the sales team achieved the target at a lower price and production team
too, but the overall profitability of the organization will take a hit as incentive given to
production as well as sales team will sit into the cost. So the overall objective of the
organization to maximize the profit will not suffice even if increase in sales and
production.
Apart from the above there is some sub – approaches towards the budgets are also
there. They are as below;
#1 – INCREMENTAL
BUDGETING
It is also called traditional method of budgeting whereby the budget is prepared by
taking the current period’s budget as a benchmark, with incremental amounts then
being added for the new budget period.
In Incremental Budgeting the figures of each expenditures and income starts with
previous years actual numbers and adjusted for inflation, overall market growth and
other factors management deems fit. For example in an organization total salary paid
to employees in a particular year is $500,000. When the budget is prepared for the
next year the management thing that they need five more new employees who will be
paid $30,000 each and also an increment of 10 % to existing employees shall be given.
Therefore, in incremental budgeting the budget for salary would be Rs. $700,000
($500,000 + 10% raise to existing employees + ($30,000*5 new employees).
#2 – ZERO BASED
BUDGETING (ZBB)
In ZBB, all the numbers reset to zero and given a fresh thought over all the items of
budget. The new numbers of every item shall be justified with proper reasoning and
shall not be ad hoc figures.
This kind of budgeting helps the management to avoid traditional expenditures which
are no longer required. As the base is zero, management can actually give a new
thought to each and every item of expense and reassess the requirement or possible
cost saving.
It’s been generally prepared in companies running into cash crunch. To cut costs the
management may just prepare a budget for the survival and any expenditure over and
above shall be cut off. For example – rent, electricity and basic staff are essential to
run the company but training, picnic and celebration expenditures are not required for
survival of the company.
Money is the main source of working in all organization. So, budget should be in
accordance with the objectives and the chosen media. The other approaches include :-
a) Competitive parity method:- Many firms base their advertising expenditure to compete
with their rivals or their competitions. The information regarding this is found in business
magazines, journals and annual reports of the company. They not only try to have the same
expenditure but also try to choose media accordingly. They also choose the media vehicle and
the frequency of advertisement to match with that of the competitors. The effect of expenditure is
know after the advertisement has been re-based and one does not know the next move of the
competitor for expenses on the advertisement and promotion.
b) Affordable method:- This simply means what the firm can afford after meeting all their
expenses. The firm allocates the amounts to be spent on production and after that allocation is
done for advertising and promotions. The
tasks to be performed by advertising is not considered. In this method there can be chances of
overspending or understanding.
c) Objective and task method :- In this method objectives are defined and the specific
strategies are formulated to achieve them. The cost of implementing these strategies is estimated.
The strategies may include advertising in various media and other elements of promotion mix.
Then the cost of various media chosen is estimated. It is also necessary to monitor the expenses
and evaluate the results.
d) Method of percentage of unit cost:- It is accost of a unit of Rs. 1000/-. If 1000 units
are sold, revenue generated is 10,00,000 If the %decided is 10%, 1,00,000 advertising budget
1,00,000.
The percentage of expenditure allocated differs from one company to another. Some
companies go for a higher percentage and others for lower, depending upon their needs and
situations faced by them. This method is simple to calculate and is safe.
Privileging means granting the authority of a health care personnel to perform his/her
responsible duties in the specific organization.
Process of Credentialing and privileging:- In the process of ‘C’ & ‘P’, the
first step is collection of information. It means the organization collects all the necessary
documents from the health care practitioner for verification of it’s reliability.
i) Primary sources verification:- It means the verification of the documents from it’s
original sources. The organization can verify internet verification, telephonic verification from
the previous organization, where he/she was working, verification from the organization, where
formal training was done for the verification of the registration etc.
The process of credentialing and privileging is started from the advertisement of the
recruitment of the organization.
Step-1:- Determining the identity:- In this step the details of the applicant is
checked like name, age, sex, address, institution of formal education etc.
Step-2:- Form filling step:- It is the step in which a form is given to the applicant
from the organization to give the details of his/her formal training, internship, experience
etc. If it is found reliable by the HR department, then it is forwarded furtherly for next
procedure.
The head of the medical practitioner assessed all the details of the documents and if
found reliable after his verification, then call the applicant for interview.
The organization arrange a structural interview for the applicant in a particular date.
If he/she performs well in the interview then the organizations grant the authority of the
applicant to perform his/her schedule duty.
It is the responsibility of the organization to check, if there is any medico legal case or
not against the staff.
Ans. Within many health care systems worldwide, increased attention is being focused
on human resources management. Specifically human resources are one of three principle
health system inputs, with the other two major inputs being physical capital and
consumables.
Ans. Inventory control and it’s maintenance is generally occurred in hospitals care
sectors. In every hospital there is a store or stock where all the necessary equipment, articles,
drugs, consumable items,
disposable items can be stored in sufficient amount. This is called inventory. Inventory must be
stored in sufficient amounts, so that it can be used as and when required. Excessive stock should
be avoided, otherwise it will be cost effective and there must be a chance of stock out.
In every organization, there is some particular rules and regulations for ordering items. It
is known as procurement.
i ) To preserve various equipment, articles and drugs in sufficient amount for using as and when
required.
Various cost for inventory control :- There are 4 types of costs, that every
organization must maintain for inventory control. These are:- Purchase cost, carrying cost,
ordering cost.
i) Purchase cost :- For buying every items, some particular amount of cost must be paid by
the organization to the supplier. This is called the Purchase cost.
ii) Carrying cost:- It means the cost of interest of any product like insurance cost, Staff
involved in buying the product etc.
iii) Stock out cost :- It means end of the stock. If any emergency situation arises at the time
of stock out ,then it is much costlier to arrange the drug or product as early as possible than to
preserve it as stock earlier.
i) ABC analysis:- Here all the necessary drug items are stored. A items are 20% of all the
drugs but it costs 70% of the total costs of drugs. So, it should be handled by top level of the
management very carefully.
B items are 20% of all the drugs and costs 20% of the total costs of drugs. It can be managed by
middle level managers.
C items are the 70% of all the drugs and it costs only 20% of the costs of drugs. So, it can be
handled by lower level of management.
V items includes various equipment and articles, dressing materials, life saving drugs etc.
without which the hospital can’t run a single moment.
E items includes some essential antibiotics and others without which a hospital can run 2-3 days.
But as early as possible these items should be arranged.
D items includes some consumable or non consumable products. Without which a hospital can
maintain it’s regular duty, but replacement is needed.
By compiling these two classifications of inventory control, there are three categories of
items. These are:-
Category- I:- These are the most important articles and drugs needed in a hospital like life
saving drugs, equipment and others. These are to be kept in double safety method under top level
management control system.
Category-II:- These are important items but not more than category –I. These are the medium
cost items and without these items hospital can continue it’s duty for 1-2 days.
Category_III:- These are least important items and can be controlled by lower level of
management system. Other classifications of inventory control are:-
i) FSN Classification:- These are fast moving, slow moving and non-moving items.
ii) HML Classification :- High, medium and low based unit price.
procurement, a particular time is needed. This is called as lead time. Inventory should supply
necessary items in this lead time.
ii) Some items should be stored in reverse stock for safety. This is called as safety stock.
iii) If there is any improper procurement system, then safety stock should be increased for
emergency need.
Fixed interval method:- In this method the organization order items in a gap of
fixed interval every time. The amount of order doesn’t matter here, but the interval
should the same.
Fixed order method:- In this method of inventory control, every time the amount of
ordering items should be same.
Economic order quantity:- This idea was proposed by Harris in 1915. Here EOQ=
2AD
H
A= Fixed cost of ordering ( Rupees/order)
D=Average annual demand ( Unit/year)
H- Holding cost (Unit/year)
ii) Job oriented:- To perform a specific job, every individual should know the
details of that job. Without having any depth concept, no one will able to perform his job or
duties. For example:- If someone is performing the job of a computer operator, then he must
know languages of computer, Microsoft and other details. He should handle all the parameters
skillfully. These are the competencies
iii) Personal:- Every individual must have some self competencies to improve
his/her self position. He/ she must develop skill and positive attitude. This is known as personal
competency. For example:- In a hospital both nurse ‘A’ and nurse ‘B’ doing the same duty, like
inserting an IV canula. While nurse ‘A’ is inserting then she is doing it with a single prick and
patient doesn’t feel that much
of pain. But when nurse ‘B’ is inserting, patient is feeling pain and she is doing it in her second/
third prick. So, automatically, while doing performance appraisal nurse ‘A’ will get more grade.
This is possible only due to her personal competence.
Some other competencies are there. These are:-
b) Technical:- This is a specific competence that is essential for performing any job
in the organization with a defined technical or functional area of work. For example:- Human
resources management , investment management etc.
c) Generic:- These are competencies that are considered essential for all staff
members regardless of their function like communication, processing tools etc.
Ans. After the infrastructure development of an organization the main objective is to run the
organization and fulfills it’s objective. For that reason, adequate numbers of employees are
needed to work. This process of recruiting employees for the organization to fulfill it’s objective
is known as staffing. In the process of nursing , also the matter of staffing is same. Here, the
hospital is the organization and nurses are responsible to provide optimum health care to the
patients and maintain the patient’s satisfaction. Staffing in nursing does not only depend on the
manage of the number of nurses but also from the process of recruitment, document verification,
interview etc. All are related with staffing in nursing. The 2012 ANA Principle of nurse staffing
identify the major elements needed to achieve optimal staffing , which enhances the delivery of
safe , quality care. These principles apply to all types of nurses staffing at every practice level
and in any health care or practice setting. Appropriate nurse staffing is a match of registered
nurse expertise with the needs of the recipients of the nursing care services in the context of the
practice setting and situation. The provision of appropriate nurse staffing is necessary to reach
safe , quality outcomes.
STAFF RELATED
The specific needs of various patient populations should determine the appropriate clinical
competencies required of the nurse practicing in that area.
Registered nurses must have nursing management support and representation at both the
operational level and the executive level.
Clinical support from experienced RNs should be readily available to those RNs with less
proficiency.
INSTITUTION/ORGANIZATION RELATED
Organizational policy should reflect an organizational climate that values registered nurses
and other employees as strategic assets and exhibit a true commitment to filling budgeted
positions in a timely manner.
All institutions should have documented competencies for nursing staff, including agency or
supplemental and traveling RNs, for those activities that they have been authorized to
perform.
Organizational policies should recognize the myriad needs of both patients and nursing
staff. DISCUSSION OF PRINCIPLES
“average” patients but must also include the “outliers.” The following critical factors must be
considered in the determination of appropriate staffing (see Table 1):
Number of patients,
Levels of intensity of the patients for whom care is being provided,
Contextual issues including architecture and geography of the environment and available
technology, and
Appropriate staffing levels for a patient care unit reflect analysis of individual and
aggregate patient needs. The following specific patient physical and psychosocial
considerations should be taken into account:
Unit functions necessary to support delivery of quality patient care must also be
considered in determining staffing levels:
Unit governance,
Involvement in quality measurement activities,
Development of critical pathways, and
Evaluation of practice outcomes.
Staff Related
The specific needs of various patient populations should determine the clinical
competencies required of the nurse. Role responsibilities and competencies of each
nursing staff member
should be well articulated, well defined, and documented at the operational level (Aiken, Smith,
and Lake 1994). Registered nurses must have nursing management support and representation
(first-line manager) at both the operational level and the executive level (nurse executive)
(Aiken, Smith, and Lake 1994). Clinical support from experienced RNs should be readily
available to RNs with less proficiency (McHugh et al. 1996). The following nurse characteristics
should be taken into account when determining patient care unit staffing:
knowledge;
The number and competencies of clinical and nonclinical support staff the RN must
Organizational policy should reflect an organizational climate that values RNs and other
employees as strategic assets and exhibits a true commitment to filling budgeted positions
in a timely manner. In addition, personnel policies should reflect the agency’s concern for
employees’ needs and interests (McClure et al. 1983).
All institutions should have documented competencies for nursing staff, including agency
or supplemental and traveling RNs, for those activities that they have been authorized to
perform (Joint Commission on the Accreditation of Healthcare Organizations 1998).
When floating between units occurs, there should be a systematic plan in place for cross-
training of staff to ensure competency (Joint Commission on the Accreditation of
Healthcare Organizations 1998). Adequate preparation, resources, and information
should be provided for those involved at all levels of decision making. Opportunities
must be provided for individuals to be involved to the maximum amount possible in
making the decisions that affect them (Williams and Howe 1994). Finally, any use of
disincentives for reporting near misses and errors should be eliminated to foster
continuous quality improvement (Leape 1994).
In addition, the organizational policies should recognize the myriad needs of both
patients and nursing staff and provide the following:
Sufficient orientation and preparation including nurse preceptors and nurse experts to
ensure RN competency;
Preparation specific to technology used in providing patient care;
Necessary time to collaborate with and supervise other staff;
Support in ethical decision making;
Sufficient opportunity for care coordination and arranging for continuity of care and
patient
consequence; and
So, while doing the staffing, the nurse administrator must follow various
principles;-
i) Every staff should have adequate knowledge, skill and positive attitude.
ii) The nurse manager must know that if the nurses are more experienced and skillful then they
can handle various emergency situations.
iii) Nurse administrator should strive to meet the technical and humanistic care of the critically
ill patient.
iv) Nurse administrator should maintain the principle of knowledge of the nurses, to meet the
health teaching and rehabilitation of chronically ill patients.
v) Nurse administrators ensures that patient assessment, work qualification and jobs analysis are
used to determine the number of personnel in each category to be assigned to the care of patients
of each type ( such as coronary care, renal failure etc.
vi) Nurse administrators ensures that there is a master staffing plan and policies to be
implemented in all units and this is to be developed centrally by the nursing head of the hospital.
vii) Nurse administrators must ensure that the staffing plan details such as shift time, the number
of staff members assigned on holidays and the member of employees assigned to each shift can
be modified to accommodate the unit’s work load and work flow.
(57)
MODULE-5
1)Nursing service is the heart of the health care services. The customer’s
satisfaction depends largely upon the nursing services and care towards the
patients. Nursing department is the only department in any health care organization
that must maintain interpersonal relations among all the departments in the
organization.
(59)
i) Assess the patient:- Start with the patient- a clinical problem or question arises
from the care of the patient.
ii) ASK THE QUESTION:- Construct a well built clinical question derived from
the case.
iv) APPRAISE THE EVIDENCE:- Appraise that evidence for it’s validity
(Closeness to the truth) and applicability(usefulness in clinical practice)
v) APPLY:-Return to the patient integrate that evidence with clinical expertise,
patient performances’ and apply it to practice.
(60)
ii) LOWER COST OF CARE:- Roughly one in four Americans are living with
multiple chronic illnesses and the cost of caring for these patients can often be
substantial. Using EBN’s patient centered approach may help eliminate
unnecessary costs linked to treating chronically ill patients as well as reduce
expenses for healthier patients too.
(61)
Nurses are heart of the health care system. In any health care
organization, staff nurses are the main health care workers for providing care to
the patients. So, the staff nurses should follow responsibilities in many aspects.
These are:-
a) Providing care for daily day to day activities for the patient.
b) Administration of medication.
g) Write the reports of patients accurately and handing over to the next shift.
h) Inform the patient about his/her treatment progress and take consent before any
invasive procedure.
(62)
k) Maintain good interpersonal relationship with patient and make proper nursing
diagnosis.
a) Check inventory periodically and inform the stock out to the supervisor.
e) Check the available medicines and equipments of assigned patients and write to
superior for further indent to the supervisor.
g) Talk politely with all the clients to maintain the silence of the unit.
(63)
f) Avoid rigging.
Nurses must take as many precautions as they can during their daily shifts.
Recording, documenting and reporting daily routines and decisions is one of the
most common ways to make sure on track with patience and in the right.
i) It provides a frame work for establishing which nursing actions in the care of
client are legal.
(64)
Public Laws are designed to protect the public. When these Laws are
broken, a nurse can be punished by paying a fine, losing her license or being
incarcerated .
Civil laws deal with problems occurring between a nurse and a client. For
example:- If a nurse catheterizing a client perforates the bladder, the client sustain
injury. No Law affecting the populations as a whole has been broken, but the client
may bring a Civil Suit against the nurse. The client may receive compensations for
injuries, but the nurse receives no jail time.
(65)
Implied consent exists when the clients non-verbal behavior indicates agreement
such as in positioning their bodies for an injection or when their vital signs are
recorded.
ii) The consent must be given by a client, who is capable and competent to
understand.
iii) The client must be given enough information to be the ultimate decision-
manner.
The nurse is not responsible for explaining the medical or surgical procedure
but for witnessing the client’s signature on the consent form. The nurse’s signature
means:-
(67)
FACTORS AFFECTING DECISION MAKING IN ORGANIZATION:-
Whenever we are involved in making decisions a number of factors can
affect the process we follow and ultimately the decision we make.
They can be organized in to three major groups:-
Perception issues
Organizational issues
Environmental issues.
(68)
Many organization have formalized policies and procedures which
have been developed to resolve common problems and to guide managers
when making decisions. For example:-
Many organizations have documented disciplinary procedures which
guide managers through a process of resolving issues with staff members.
Organizational hierarchy refers to the management structure of the
organization. Most organizations have different levels of management which
carry with them different degrees of authority. The degree of authority
directly impacts on the nature of the decisions an individual can make.
Organizational politics refers to behaviors displayed by individuals
and groups which is designed to influence others. Individuals and team will
often use politics to:- Advance their careers, advance their interests and
ideas, increase their rewards. Organizations are made up of individuals with
different believes, values and interests. These differences are often driving
forces behind organizational politics.
ENVIRONMENTAL ISSUES:- These are the external factors that affect the
organization. The types of external factors that can have an affect on decision
making include:- The market in which the organizations operates
The Economy
Government legislation
Customer’s reaction to the organization’s products and services.
Other factors include personal factors ( like age, gender, stages in life- cycle,
education, occupation, economic position etc.) Personal psychographics
includes(life style, attitudes, self concept, concern about status, value system,
(69)
beliefs etc.) Cultural factors(Culture combined resulted of factors like
Religion, traditions, taboos , languages, education, upbringing, established pattern
of social behavior, values etc.) Influence of reference group (e-g family, friends,
peer groups, close colleagues, close knit, organizations) psychological
factors(Motivation, perception, learning process, memory process).