Leadership and Management in Nursing

Leadership and Management in Nursing

Introduction

While the issues of cost containment capture the hearts and minds of the leaders of health care industry, the question of controlling money spent has turned out to be the most important. Managers are trained regarding revenue budgets and salary expenses (Yoder-Wise, 2010). Expenditures which are extremely under or over the budget call for explanations. This field of accountability can have optimistic effect on strengthening the role of a manager. On the other hand, unless it is coordinated by the authorities to make verdict regarding expenditures and revenues it will turn out to be a troublesome liability and burden (Hersey & Duldt, 1998). Moreover, budgeting is the procedure of setting up future operations and organizing the operations. By gauging these differences between expected and actual budget items, organization is much capable of making corrections and changes. Given that the budget of the nursing department can comprise of nearly half of the total expenses of the hospital, there will be a lot of pressure on this department to raise effectiveness as well as efficiency (Hersey & Duldt, 1998). For the nursing department to successfully meet the pressures and the ambiguity and vagueness of the economic environment, manager nurses at each and every level ought to become expert in the process of budgeting.

Discussion

The economic environment for the future of the industry of health care is indecisive and with rising fight for financial resources, funds are turning short in supply. The budget for the department of nursing can make up approximately half of the total hospital expenses; as a result there will be considerable pressure on nursing to add effectiveness and efficiency. The nurse manager has accountability and responsibility as far as the nursing budget is concerned. Devoid of a budget, all departments can function unmindful to what other departments are doing as well as regarding the objectives of the organization. This scarcity of coordination gives rise to increasing expenses and inefficiency. The operating budget turns in to the major action plan for the whole organization, revealing the synchronized and corresponding efforts of each and every level of management (Brooten, 1998). This gives a helping hand to the organization to function efficiently and smoothly in order that the aims and objectives are achieved. The open-minded and progressive nurse manager is well acquainted with the fact that whoever is in command of the budget is in fact in command of the department. Having control over the financial side of nursing by means of an operational budget can apparently form a new approach for the manager nurse.

We can see that this budget is an expense budget. This type of budget finances the routine supplies and equipment required to run a nursing unit. In this regard, expenses are actually the charges of offering services to the patients. These charges are mostly known as overhead charges. They consist of salaries and wages, supplies, fringe benefits, utilities, medical and office supplies and food services. All such expenses are divided into different ...