EXTERNAL RESOURCE MANAGEMENT

External Resource Management



External Resource Management

Task 1

Analysis of Dr. Spiller Interruption in Normal Purchasing Procedures

Dr. Spiller circumvention in normal purchasing procedures cannot be justified in any condition. It represents an unethical and beyond the responsibilities involvement in the standard purchasing process structure of the hospital.

The Purchasing Department is responsible for supplier negotiations and monitoring the entire purchase process. This involves managing the commodity requisitions, purchase orders, business conditions and payment arrangements (Alan, 2001). Under legal terms, contracts and purchase agreements of any nature can only be signed by personnel authorized by the Purchasing Department and to be determined in the established processes. The Purchasing Department is responsible for determining the quantity, quality or type of materials requested, except to advise the user (David, 2004). Each department is responsible for the control of their allocated budget (account balance). It is the responsibility of the Purchasing Department to document all purchasing operations to meet the tax and audit structure of the hospital.

All departments can be authorized to use the portfolio of suppliers by recommending it to the purchasing and procurement department. However, any member of the hospital irrespective of position in the hospital cannot execute any order on behalf of hospital that involves creating financial burden on the hospital and requires critical thinking prior to reaching a decision that would be in interest of the hospital (James, 2007). Allocation of buyers by address, each address and / or division has assigned a buyer who may request a response to purchase requisitions. It is not acceptable that head of radiology department himself approve a purchasing decision based on his past experience (Ward, 2008). However, Dr. Earl Spiller could have recommended his propositions to the purchasing department and buying decision making unit by assisting them with the possible advantages of purchasing the specific model of radiology equipment.

Reaching a particular purchasing decision in the hospital or any organization is the responsibility of deciding for best alternative of the suppliers in the portfolio. Any alternative suggested by the doctor should be evaluated with two months in advance. Once the contribution is made by the doctor in favour of the hospital, it should be examined for budget constraints. The Purchasing Department is solely responsible for making all requisitions for payment for purchase requisitions (Weele, 2009). Any payments processed outside of this process should automatically be rejected. The purchase requisition that does not have enough budget or incorrect accounts is not supposed to be processed under the domain head responsibility of other person. All such recommendations and purchase orders should be cancelled and shall be notified in writing via email to the applicant and indicate the reason (Weele, 2009).

As for the given case, procurement strategy specifies in general terms how services, goods, or equipments for the hospital will be purchased. This also includes the determination to enter into contracts on a competitive or not competitive basis, relevant details to support the transaction and benefits that can be derived by the hospital in terms of cost savings, or ...