Budgeting refers to the process of quantifying the plans of a business so as to enable it attain its objectives in the defined period. The outcome of the process is budgets, which are used for performance evaluation, cost control and future decision making. Budgetary Planning and Control is short term quantification and monitoring of long term strategic plans of the organizations. Strategic planning encompasses preparation of strategic plans, which define the objectives to be pursued within the context of corporate policy. It is by budgeting that a long term business plan is put into action. Individuals prepare budgets for coordinating the combined intelligence of the entire organization into a plan of action. It is prepared for distinct functional areas, departments, financial and resource items. Budgets are prepared for planning, motivation, control, coordination, communication, and clarification of responsibility and authority.
Maxim Staffing Solutions Budgeting
Maxim Staffing Solutions are devoted to staffing qualified nurses to fill a range of facility shifts, comprising contract assignments, per diem and temp-to-perm. They realize the challenge of employing and holding top nursing talent. They provide their clients with the opportunity to choose some of the most sought after nurses from many of the leading facilities across the country. People may choose Maxim Staffing solutions for nurse staff because of cost effective strategies, around-the-clock accessibility, popularity, motivated employees, dependability and thorough screening process. Maxim Healthcare strengths include recruiting and maintaining an abundance of healthcare staff which enable them to fill a large volume of staffing requests in a time efficient manner.
The organization values are innovativeness, inclusiveness, sustainability, and differentiation. All the activities of the healthcare should be undertaken in a sustainable manner. Innovativeness denotes the introduction of new or significantly improved solutions regarding a product, service, a process, marketing and organization. It can be process innovation, organizational innovation, marketing innovation and product innovation. The value of inclusiveness postulates that the budget plan is the product of an inclusive, consultative approach, directed by the top management and responsive to employee’s engagement. Sustainability comprise of financial, environmental, cultural and social sustainability (Wiseman 2010, p.45). Differentiation refers to identifying, understanding and supporting the uniqueopportunities that offers a competitive advantage in the organization dominion. These organization opportunities provide growth potential in several areas and contribute significantly to both wealth and job creation. Differentiation when used as a competitive strategy allows the healthcare to successfully develop and maintain an exceptional value proposition for individuals and businesses considering investing in the same business field. It will offer opportunities that do not exist in other staffing solutions (Meyers 1994, p.33).
The vision of the organization is to balance and promote vibrant employment and economic opportunities, diverse, health and safety services and honoring the environment and valuing its cultural heritage. The organization goals are the following: Attracting and maintaining a permanent or seasonal population that contributes to a skilled and adaptable labor force; building a sustainable economy; addressing health and housing by promoting wellness, providing accessible and quality healthcare and by meeting the infrastructure continuum of housing need; and respecting the organization culture and heritage, promoting an emerging diverse healthcare staffing solutions (Fozzard & Foster 2001, p. 28).
The challenges of Maxim Healthcare budgeting include the following: Too much reliance causing resistance or inflexibility to change, antagonism where budgets exert undue pressure, difficulty in setting levels of attainment which result into too tight budgets that cause loss of morale. The budgeting control is a terminate exercise hence any report from investigation of variances may be of little use to their current operations (Fozzard & Foster 2001, p. 28).
The organization cash budget records cash inflows and outflows that are anticipated to occur in respect of each functional budget. It may be prepared for duration of one week, month or quarter of the budget period. The benefits of the organization cash budget include revealing the availability of excess cash so that short term investments may be considered; ensuring that sufficient cash is available when required; showing whether capital expenditure projects can be financed internally; indicating the availability of cash for taking advantage of discounts; serving as a foundation for evaluating the actual cash management performance of responsible managers; indicating the cash required for current operating activities; indicating the effect the position of each seasonal requirements, large stocks, unusual receipts and laxity in collecting account receivable (Meyers 1994, p.33).
The absent of structural change in major programs in the healthcare services and budgetary flexibility continue to decline and eventually disappear. The demands for new federal resources to address the emerging challenges is pressing and compelling. The organization fiscal budget escalates rapidly beyond its projection period. Therefore, they need to create mechanisms and metrics to better highlight proposed new fiscal commitments and long term implications of existing programs (Foster & Fozzard 2001, p. 31).
Maxim Healthcare should carry out SWOT analysis in order to evaluate and use its strengths, minimize weaknesses, maximize opportunity and guard against its threats (SWOT analysis, 2008). This will assist the organization to maximize profits and enhance shareholders wealth creation.
The SWOT Matrix
The organization experiences some problems with their budgeting. There are distinct glitches associated with budgetary control activities. There is difficulty in dealing with variable expenses for example; the bills which may vary every month are difficult to estimate when budgeting and may require an individual to approximate the expense until he/she knows how much it will be. It is difficult to allocate funds to category of activities for example, entertainment, groceries, and restaurant meals. Budgets should be broken down into particular categories within an organization. It helps in determining the amount spent on an activity. The organization budgetary committee has problems of keeping track of expenses that they incur on daily, monthly, and yearly periods (Meyers 1994, p.38).
The organization should apply performance budgeting since its effect on the organization’s finances could be substantial and speed offers competitive edge. Furnished with these reasons many organizations will be tempted to stake everything on performance improvement.
The organization should adopt performance based budgeting since it will help in improving the organization capability to evaluate competing claims in the budget by equipping budgetary decision makers with better information on the outcomes of both individual programs as well as entire portfolios of programs and apparatuses addressing common performance results. It further adjusts and notifies the agenda of questions by shifting the focus of discussions from inputs to outcomes and results. The budgeters should work according to structural strategies which seek to create the institutional schedules that best suit their interests. Thus, the outcome of institutional reforms is determined by the political process in much the same way as results of the budget process itself.
Fozzard, A., & Foster, M. (2001). Approaches of change to public expenditure management in low income aid dependent countries. Helsinki: University of United Nations, the World Institute for Development Economics Research.
Meyers, R. T. (1994). Strategic budgeting. Ann Arbor: University of Michigan Press.
SWOT analysis: a tool for making better business decisions. (2008). Washington, D.C.: U.S. Department of Risk Management Agency and Agriculture.
Wiseman, B. (2010). Budgeting. New York, NY: Weigl Publishers.