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n terms of effectiveness, managers in my organization use the budget process to strategize for the future since the cost of healthcare equipments and services is constantly changing as a result of uncertainties in the global market. Our organization is able to forecast on future costs of these equipments and therefore make financial plans to purchase them before the costs increase. To purchase these equipments, the managers must first understand cash flow within the organization in order to plan or budget on the basis of available funds. This is how my organization employs the concept of budgeting.
I have observed that there is a disconnect between the managers and the employees in relation to budget formulation and implementation. The managers solely formulate the budget and then impart or confer it to the employees. In so doing, employees are not involved in the formulation process and hence they feel that their input is not needed within the organization. Achieving projected results from a budget is dependent on the employees as they are the implementers of action plans (Finkler, Ward and Baker, 2007). In our case, the purchase of new equipments is geared towards improving efficiency in the workplace and in the long run increase performance and patients satisfaction. The fact that employees are not involved in formulating the budget affects their motivation levels and job satisfaction and hence affecting the outcome of care practices. Engaging the employees in the budgeting process in terms of considering their input would greatly improve the process and also improve employees
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