MANAGEMENT PROCESS

PLANNING
*
Setup organizational
structure, identify
groupings, roles,
relationships
*establish policies and
procedure, definite course
of action and methods
* Prepare budget/ allocate
resources
Develop and schedule
programs, define activities
needed & set time frame
* Thinking ahead * Set objectives / determine
*making future results desired
planning * Forcecast / estimate
* Projection future.
 Leads to
achievement
of goals &
Necessary for objectives. Gives
effective meaning to
control. work

Provides
effective use
Provides basis
of available
for control.
resources and
Importance facilities.
of planning

Leads to the
Helps in
realization of
coping with
the need for
crisis.
change.

Based on
past and Cost-
future effective
activities.
 Mental
activity
Essential in
Goal-
decision
oriented
making

NATURE
Forward-
Flexible of looking
Planning

Pervades all
Based on
managerial
facts
activity
Primary
function
A well developed plan
should: Precise

Pervade the Guided by

whole policies
organization /procedures

Characteristics
Include of a Good plan
practical
methods for
Indicates
achieving each priorities
objective

Develop Develop
logical actions that
sequence are flexible
of activities and realistic
Limitations

Costly process

Rigidity

Limited scope

Influence of
external factors
Non-
availability
of data
People’s
resistance
 Setting the Vision,
Establishing nursing Mission, Philosophy,
standards, Policies Goals and Objectives
and Procedures

Developing and
Scheduling
Programs
Forecasting
•The planning formula
•Time Management

Preparing the Budget

•foundation upon which every successful business is
built.
•help you know what to include in your business as well
as what is not to.
•a unifying glue that binds each team member to one
another.
• Outline the organization’s future role and
function.
• It gives the agency something to strive for.
• Example:

Vision:
The Medical Center envisions itself to become a
Center of Excellence providing holistic approach to
health care services. As a Center of Wellness, the
services provided shall enable the people to improve
their health and increase control over it.
 MISSION PHILOSOPHY

 Outlines the reason  Describes the vision.

for existing, who the  A sense of purpose
target clients are, of the organization
and what service will and
be provided  The reason behinds
its structure goals
 GOALS OBJECTIVES

 General  Specific
 Broad area  Concrete
 Example 1. “To establish an organize
“To provide the best possible governing body so
health care services to its functioning that has overall
clients in a high quality setting responsibility for the conduct
conducive to attaining its of the hospital in the manner
vision as a center of wellness consonant with its
and a standard medical philosophy, mission and
center.” objectives”
2. “To provide the best quality,
accessible and cost-effective
health services to all clients.”
Strategic Operational
Planning Planning

“how does one do things right”

“what are the right things to
do”
deals with day to day maintenance
Usually extends from 1 year to activities.
more than 20 years

All levels of nrsg management

Involve top nurse managers and
representatives

Numerous operational objectives

Foster better goals, better corporate values, better support one strategic objective
communication, lead to changes in management &
organization leading to better management
Increased participation leads to
greater group cohesiveness=
increased morale, increased
motivation, and increased
achievement and productivity.
 The mission Data collection Assesses strength
and the creed and analysis and weaknesses

Goals and
Timetable Strategies
objectives

Operational and
Implementation
functional plans

evaluation
 Choosing among alternatives, systematic
process and implementing it.
 Normative / Prescriptive
 Structured problem, predictable
 Used when info is objective and routine
 Descriptive / Behavior
 Non Routine / Unpredictable option
 Decision Tree
 Visualize alternatives, possible action.
 Satisfying
 solution that minimally meets objectives
 Optimizing
 select the most ideal solution
 Power to apprehend the possibilities inherent
in a situation
 Develop through “Brain Storming”
 Educate People
 Establish Decision Making checking
 Keep Progress
 Statistical Analysis
 Openness to new ideas
 Consensus building
 Deal in Order
 Solve easy problem
 Solve crisis problem
 Pitfalls stem from individual then from
computers because individuals are still
resistant to change.
 Controlling Decision making and omitting
from the process those involved
 Inadequate fact-finding
 Time Constraint
 Poor Communication
 Establish goals and objectives
 Identifying and Prioritization of problems
 Develop possible solution
 Select among solution, the most promising
one and implement it
 Implement the solution
 Evaluate
 Process of identifying course of action,
alternatives to alleviate a problem
 purposeful thinking, outcome directed, aims
to make judgment based on scientific
evidence.
 Assess / Analyze
 Plan – evaluate effectively, feasibility
 Choosing best solution
 Implementation
 Evaluation
 Organize, Prioritize and Schedule

 Includes tools techniques for planning and

scheduling time

 Aim to increase the effectiveness and

efficiency of personal and corporate use
 Decide what you really want in life
 Set Concrete goals
 Analyze your current time use
 Plan your day
 Follow your everyday cycle
 Keep a To do list
 Beware of Big 5
 Indecision
 Guilt
 Worry
 Perfectionism
 Procrastination
 Get Organized
 Set Goals
 Plan Strategies
 Plan Schedule
 Say No
 Use transition times
 Improve memory
 Use telephone call
 Use meetings effectively
 Delegation
 Spend too much or little time to analyze
possible solution
 Difficulty in communicating in time of stress
 Have trouble setting priorities
 Delegate too little / not often enough
 Lead as a martyr / skipping meals break
 Pareto Analysis – 80% Done 20% Time
 PERT – Program evaluation and review
techniques
 An ongoing activity in which revenues and
expenses are managed to maintain fiscal
responsibility and fiscal health.
 An annual plan intended to guide effective
use of human and material resources product
or services and managing the environment to
improve productivity.
 A plan or schedule adjusting expenses during
a certain period to the estimated fixed
income for that period.
 Budgetary Planning ensures that the best
methods are used to achieve financial
objectives.
 A good budget is based on objectives, is simple,
flexible, balanced, has standards and uses
available resources first to avoid increasing cost.
 Each budget system is designed for the situation
at hand, bearing in mind the character of the
company, the company’s position and the nature
of the plans involved.
 A systematic plans that is an informed best
estimate by nurse administrators of revenues
and nursing expenses.
 Plan the objectives, programs and activities of
nursing services and the fiscal resources needed
to accomplish them.
 Motivate nursing workers through analysis of
actual experiences
 Serve as a standard to evaluate the performance
of nurse administrators and managers and
increase awareness of cost
 The relationship of budget and objectives
identifying objective is the chief planning
activity and each of the nursing units develop
a management plan with a budget for each
objective. The source of the nursing budget is
the objectives.
 Revenue – income from sale of products and
services.
 Expenses – cost of providing services
 Expense Budgeting – process of forecasting,
recording monitoring of manpower, materials
and supplies and monetary needs of an
organization in such a manner that the
operation of the various components of the
organization can be controlled.
 Patient Days – units of service used to compute
for staffing
 Fiscal Year (FY) – the budgetary or financial year, it,
may be a calendar year (January to December).
 Year to Date (YTD) – is the accumulated units of
service of a particular point in the fiscal year.
 Average daily census – the census for a number of
days and divided by the number of days.
 Cost center – a given area of assigned accountability
for both the indirect and direct expenditures. It is an
internal department dealing with distribution of
services and products.
 Cost – money spent for all resources.
 Fixed Cost – remain constant even when volume
increase or decreases ex. Depreciation of equipment
and building.
 Sunk Cost – fixed expenses that cannot be recovered
even if the program is cancelled ex. Advertising
 Variable Cost – relate to volume and census (patient
days)
 Direct Costs – cost of providing the product or service
such as those directly related to patient care.
 Indirect Costs – those incurred in supporting the
provision of the product services and not directly
related to patient care.
 A planning technique that answer the
following questions.
 What are the cost of pursuing a goal, an
objective, a program or a specific nursing
intervention
 How do cost compare with the benefits?
 Is the project worthwhile
 Zero-Base Budgeting – a method of budgeting used
to control costs. The budget starts from zero and
everything must be justified by each new budget
cycle. Each function must stand in its own merit.

 Program Budgeting – is a part of budget planning

which specifies the cost to carry out programs.

 Personnel Budgeting – planning for the cost of people

who provide services based on quantitative workload
measurement.
 Supplies and Equipment budget – a part of
operating and cash budget which includes all
supplies and equipment used in provision of
services, except capital equipment and
supplies charged directly to patients.

 Capital Budget – projects the planned costs

of major purchases. It deals with
maintenance, renovations, remodeling,
improvements, expansion, land acquisition
and new buildings.
 Performance Budgeting – focuses on the
activities of a cost center such as indirect
care, direct care and quality monitoring.

 Operating or Cash Budget – day to day

budget and represents the money that comes
in and out (revenue and expenses). It includes
cash reserves which is cash budgets paying
for bills.
 Formulation Stage
 Develop objectives and management plans
 Gather all financial, historical and statistical data
and distribute to cost center managers
 Analyze data
 Review and Enactment Stage
 Prepare unit budget
 Present unit budget for approval
 Revise and combine into organizational budget
 Present to budget council
 Revise and present to governing board
 Revise and distribute to cost center
 Execution Stage
 Direct and evaluate expenses and receipts
 Revise budget if indicated
 The budget should establish financial
standard through the division’s cost center

 Daily, Weekly, Monthly and Quarterly

feedback supplies information to compare
managerial performance with the established
standard

 The results are used to make adjustment

 Decentralizing
 Monitoring
 Cutting the Budget
 Legitimate budget activities (details demand
for nursing services and equipment, direct
and indirect expenses, working capital and
requirements, profit requirements deduction
from patient revenues.
 Process of bringing together physical,
financial and human resources.
 Process involves:
 Identification of activities
 Classification of activities
 Assignment of duties
 Delegation of authority and responsibility
 Coordinating authority and responsibility.
 It involves leading and the use of motivation
and power so as to affect an individual’s
behavior towards the attainment of the
organizational goal.
 What’s our goal? What’s the problem? What
are our options? What’s our plan?
 How should we proceed?
 When does it need to be done by>
 Who should do it?
 Why are we doing this?
 Select the right person to whom the job is to be
delegated.
 Delegate both interesting and uninteresting
tasks.
 Provide subordinates with enough time to learn.
 Delegate gradually.
 Delegate in advance.
 Consult before delegating.
 Avoid gaps and overlaps.
 Overall responsibility, authority and
accountability for satisfactory completion of all
activities in the unit.
 Authority to sign one’s name is never delegated.
 Evaluating the staff and or taking necessary
corrective or disciplinary action.
 Jobs that are too technical and those that
involve trust and confidence.
 Task
 Person
 Communication
 Feedback