MANAGEMENT PROCESS

A. Planning

Definition

: a management function, concerned with defining goals for future organizational performance & deciding on the tasks & resources to be used in order to attain those goals

: deciding in advance what to do, how to perform a particular task, when to perform it, & who is to do it Importance

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Planning leads to achievement of goals and objectives. Planning gives meaning to work Planning provides for effective use of available resources and facilities. Planning helps in coping with crises. Planning is cost effective. Planning is based on past and future activities. Planning leads to the realization of the need for change. Planning is necessary for effective control and futuristic insights.

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Nature of Planning
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Both strategic (a top-down approach concerned with the long-term mission and objectives of an organization, the resources used in achieving those objectives) and tactical (that aspect of organizational planning which covers the immediate future, that is, up to about one year from

the present incorporated. 2. 3.

time);

planning

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Plans are primary mechanisms for guiding organizational efforts. Planning is a continual process that moves from setting the mission to setting operational objectives. Values and expectations often determine what mission and strategies to adopt. Reviewing and evaluating plans support control. Good planning ensures that clients will receive quality nursing care.

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Characteristics of a Good Plan A well developed plan should: 1. have clearly worded objectives, including desired results and methods for evaluation, 2. 3. be guided by policies and/or procedures affecting the planned action, indicate priorities,

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develop actions that are flexible and realistic in terms of available personnel, equipment, facilities and time, develop a logical sequence of activities; and include the most practical methods for achieving each objective.

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Some Indicators of Poor Planning (McLarney, 1964):

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Delivery dates are not met Machines are idle Material is wasted

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Some nurses are overworked, others are underworked Skilled nurses doing unskilled work Nurses are fumbling on jobs for which they have not been trained There is quarreling, bickering, buck-passing, & confusion

Failing to plan is planning to fail.

Should establish a clear, coherent and realistic view of what the organization wants to achieve and a 3 5 year overview of how it will set about achieving its objectives Preparing a strategic plan needs to involve board members, managers and staff, and often other stakeholders as

well, to ensure that everyone owns the plan and uses it to inform decisions and monitor progress Strategic plans should set out: The organizations mission Specific strategic objectives to be achieved within a stated time period The overall strategies for achieving the objectives The funding required from different sources to implement the strategies The criteria for measuring the achievement of objectives An overall implementation timetable The process for monitoring performance and reviewing the plan. A situational analysis is commonly suggested before making strategic plans and a tool (WOTS Analysis) can be utilized Strengths and weaknesses are Internal factors. For example, a strength could be your specialist marketing expertise. A weakness could be the lack of a new product.

Opportunities and threats are external factors. For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. It is worth pointing out that SWOT analysis can be very subjective - two people rarely come-up with the same version of a SWOT analysis even when given the same information about the same business and its environment. Accordingly, SWOT analysis is best used as a guide and not a prescription. Adding and weighting criteria to each factor increases the validity of the analysis. Areas to Consider Some of the key areas to consider when identifying and evaluating Strengths, Weaknesses, Opportunities and Threats are listed in the example SWOT analysis below:

In summary; Strengths need to be maintained, built upon or leveraged. Weaknesses need to be remedied or stopped. Opportunities need to be prioritized and optimized.

 Threats need to be countered or minimized. 2. Operational Planning should establish the activities and budgets for each part of the organization for the next 1 3 years

they link the strategic plan with the activities the organization will deliver and the resources required to deliver them

should be prepared by the people who will be involved in implementation. (There is often a need for significant cross-departmental dialogue as plans created by one part of the organization inevitably have implications for other parts.)

usually involve middle & lower level managers

* How does one do things right?

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Continuous or Rolling Plans

involves mapping out the day-to-day activities

Operational plans should contain:

clear objectives activities to be delivered quality standards desired outcomes staffing and resource requirements implementation timetables a process for monitoring progress.

Elements/Scope of Planning 1. Forecasting - predicting current and future market trends using existing data and facts

2. Setting the vision-mission, philosophy, goals and objectives Goals: broad statements of intent derived from the purposes of the organization Objectives: specific behavior or tasks set for the accomplishment of a goal

3. Developing and scheduling programs; Set the time frame for completion Strategy: the techniques, methods, or procedure by which the overall plan of the higher management achieve desired objectives Programs: activities put together to facilitate attainment of some desired goals, such as staff development programs Time Management

* Finding the most efficient way to do it

Principles of Time Management 1. Planning for contingencies; think of other options or alternatives if t he desired option is not possible 2. Listing of tasks; calendar all activities 3. Inventory; looking at task done & not done 4. Sequencing; prioritizing activities 5. Setting & keeping deadlines; do not procrastinate or else nothing is done 6. Deciding on How Time will be Spent; indicate time allotted for each activity, set time targets 7. Delegate 4. Preparing the budget

Nursing budget: allocates resources & nursing programs to deliver patient care during a fiscal year Hospital budget: designed to meet future service expectations, to provide quality care at minimum cost Budget plan: a plan for future activities Classification of Budgeting 1. Centralized Budget: developed by the administrator with little or no consultation with lower level managers 2. Decentralized Budget: the middle manager involved in the planning & budgeting process Benefits of the Budgeting Process 1. Planning 2. Coordination 3. Comprehensive Control

Factors in Budget Planning 1. Patient nature of the patients needs (condition of the patient, the length of stay in the hospital & the acuteness of the illness)

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Hospital or Health Care Facility available facilities & resources with which to address the needs of the patient (size of the hospital, physical layout, the size of wards/units, the Nurses Station, the treatment rooms, etc.)

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Personnel personnel policies, i.e. salary policies, leave benefits, staff development programs

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Standard of Nursing Care & Supervision the cost of training & maintaining personnel & acquiring equipment that will be needed by the health care facility based on the volume of patients & the nature of their needs

Purposes of Budgeting

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ensure the most effective use of scarce financial and non-financial resources coordinate efforts among organizational departments establish a frame of reference for managerial decisions provide a criterion for evaluating managerial performance

Types of Budget 1. 2. 3. Manpower Budget - includes wages, salaries, and compensations paid to permanent employees Capital Expenditure Budget - includes purchases of land, equipment, buildings or expansion of existing building or plant Operating Budget - includes purchase of minor equipment, repairs, and supplies

Budgeting Process Phase 1 1. 2. 3. 4. 5. 6. - Planning Set short and long term goals Form a budget committee Prioritize objectives Analyze past performance Predict future costs and revenues Develop budget guidelines

Phase 2 - Preparation 1. Translate objectives into projected costs and revenues 2. Write justification for all requested expenses 3. Eliminate lowest priority objectives as necessary 4. Present proposed budget Phase 3 - Modification and Approval 1. Prepare preliminary master budget from all department requests 2. Compare projected costs with estimated revenues 3. Eliminate lowest priority items until budget is balanced 4. Approve final master budget 5. Communicate final budget to all departments Phase 4 - Monitoring 1. Prepare monthly summaries of departmental expenses and revenues 2. Compare expenses with budgeted expenses 3. Investigate any variance above 5% 4. Readjust budget and/or improve performance as necessary 5. Continue to monitor on monthly basis 5. Establishing nursing standards, policies and nursing procedures

Policies: standing plans used repeatedly, or guides or basic rules that govern action at all levels in the organization Examples: Personnel Policy, Nursing Services Policies Procedures: a more specific guide to action than policy Standards: the minimal level of achievement acceptable to meet the set objectives Problem Solving

Decision making: a complex, cognitive process often defined as choosing a particular course of action from among several possible choices

It is choosing options that are directed towards the resolution of organizational problems and the achievement of organizational goals. Attributes of a Decision Maker 1. 2. The freedom to make the decision in question The capacity and ability to make a wise decision. (Doing so requires sound judgment, deliberation, objectivity, and experience). The will, motivation and commitment to choose. (This attribute requires volition, a

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conscious activity of the will to make a decision.) Kinds of Decisions 1. Whether Decisions: refer to the decision made before the selection of one of several alternatives, where selection is made after weighing pros & cons Example: before figuring out the alternatives of what car to buy, the decision has to be made whether or not to buy a car 2. Which Decisions: the process of choosing from among several alternatives, which are measured based on a set of predefined criteria

3. Contingent Decisions: decisions that have been made but put on hold until some conditions are met like time, energy, price, availability,

opportunity & encouragement Example: I have decided to buy that car if I can get it for the right price. Decision Making Strategies
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Analyze and identify the problem clarify first the situation the manager is trying to resolve before making a decision, take into consideration the circumstances find out what is wrong and why it is wrong before one can proceed Gather data to analyze the causes and consequences of the problem > acquiring information always involves people, and no tool or mechanism is infallible to human error Develop and compare alternatives or solutions then rate the risk > review the possible advantages and disadvantages as well as the possible effects in the organization. Select the best alternatives/solutions logically and utilizing critical thinking

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Critical Thinking sometimes referred to as reflective thinking

People think illogically primarily in three ways: A. Overgeneralizing When one believes that because A has a particular characteristics, every other also has the same characteristics. Affirming the consequences Arguing from analogy A good nurse manager does not necessarily possess all the same skills as a good nurse clinician.

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Evaluate the results