Question

how do healthcare managers utilize budgets for planning, communication and control. Use specific scenarios or examples from the text or other resources.

Answer 1

Healthcare managers are professionals who work in the healthcare sectors. The following part of the answer focus on how budget is being utlized by healthcare managers for planning, communicating and controlling several activities within the organisation.

a) Each and every healthcare organisation have a goal or mission. The healthcare manager utlize the budget in such a way that the objectives of the organisation is meet without any hassle. For example, profit-based strategy of budget which are formulated by the management team is being utlized to achieve the profit objectives in the organisation.

b) Healthcare managers also utlize budget for communicating with employees and other staffs within the organisation. Employees are one of the most important asset within the organisation. It is the responsibility of the manager to motivate all the employees in order to meet organisational objectives. Appraisal in terms of money is one of the efficient mode of motivation. Thus, healthcare managers focus on utlizing the budget while providing appraisal to the employees.

c) While healthcare managers formulate budget, it also takes in to consideration the estimated cost and estimated profit. Thus, the budget is utlized by the healthcare manager to control the costs which are incurred during several activities within the organisation. For example, the management team can reduce the operating expenses within the organisation which has no significant consequences.