Challenges Facing Nurse Managers In Relation To Budgeting


ChallengesFacing Nurse Managers In Relation To Budgeting


ChallengesFacing Nurse Managers In Relation To Budgeting

Inthe contemporary, globalized markets a nurse manger is not only incharge of supervising employees but most importantly, controlling theorganization’s budget (Kelly,2008). Historically, the nurse manager played an insignificant rolein an organization’s budgeting process since healthcareinstitutions were considered non-incoming generating. Today,healthcare organizations are facing stiff competition as a result ofglobalized markets and have realized the importance of involvingnurse leaders in the budget process. The budgeting process is a bitchallenging, and many nurse managers require adequate training andsupport from the organization as a whole to plan and implement budgeteffectively (Roussel, 2013).

Oneof the greatest challenges that nurse managers face today in thebudgeting process is financial constraints established by seniormanagement. The first step in budgeting is evaluation assessment,whereby the nurse managers with the help of the other staff assesswhat is needed to run the organization. A major challenge experiencedat this step is limited resources and finances. A nurse manager mightidentify various needs but unfortunately, the budget does notaccommodate all of them. Therefore, the nurse manager needs toprioritize the identified needs to fit into the allocated limitedresources and finances (Finkler, Jones, and Kovner, 2012).

Thesecond stage of the budgeting process is planning. At this stage, thenurse manager is expected to review the past budget history to comeup with an average cost for the new budget. The major challenge ofthe planning phase is the need to plan for any changes. Due tochanges in the contemporary markets, a nurse manager needs to planand implement various changes about issues such as hiring newemployees, unexpected expenses, among others. According to Finkler,Jones and Kovner (2012), the major aim for any management in anorganization is to cut down budget as much as possible. Therefore,the nurse manager faces a major challenge in convincing themanagement to inflate the budget to accommodate the new changes suchas hiring new employees and raising the salaries for performingemployees.

Implementationis the third stage in the budgeting process. After planning andreviewing the proposed budget, the nurse manager should implement thebudget. The major challenge that faces a nurse manager at this pointis explaining any changes in the budget such as an increase inpatient population, cutting down on supply utilization and salaryincrement among others. Many employees resist changes that are madewithout their knowledge. Therefore, a nurse manager who has notinvolved the employees at any stage of the budgeting process willface resistance from many employees, especially, when the changes arenot employee-friendly. The final step of the budgeting process is theevaluation. A nurse manager is expected to continually and oftenreview the implemented budget to determine its efficiency. However,many nurse managers fail to evaluate implemented budgets oftenbecause, in the globalized market, the role of a nurse leader is abit challengingand time-consuming(Roussel,2013).

Accordingto Finkler and his colleagues, there is a strong relationshipbetweenbudgeting and leadership. Efficient budget management requiresstrong leadership to ensure changes are implemented, andorganization`s expenses do not overshadow the profit. For a nursemanager to control budget efficiently, he or she should make wisefinancial decisions. The greatest challenge facing the nurse manageris the failure to involve both the seniors and juniors when makingfinancial decisions (Kelly, 2008). Many nurse managers involve thesenior management only and fail to recognize the importance ofemployee’s opinions in making financial decisions. To ensure abudget is implemented successfully, it is important to involve allthe staff in the whole budgeting process to ensure resources are usedwisely and achieve the preferred outcomes.


FinklerS.A., Jones C., &amp Kovner C.T (2012). FinancialManagement for Nurse Managers and Executives.4th ed. St. Louis, MO: Saunders.

Kelly,P. (2008). NursingLeadership and Management.(2nd ed.). Clifton Park, NY: Delmar Learning

Roussel L.A. (2013). Managementand Leadership for Nurse Administrators.6th ed. Burlington, MA: Jones and Bartlett.