COMMUNICATION & BUDGETING

Budget

A numerical plan for allocating resources to specific activities

Budgeting

process of planning forecasting, controlling, and monitoring the financial resources of the organization

Budgeting

process of allocating resources to pay for designated future costs

Budgeting

serves as a financial control by providing managers with quantitative standards

Variable budget

costs that vary with volume

Fixed budget

fixed level of sales or production

Cash budget

forecasts the cash on hand

Revenue budget

forecast future sales

Profit budget

combined revenue and expense budgets

Expense budget

lists primary activities and allocates dollar amount

Incremental Budgeting

Zero-based Budgeting

2 Approaches in Budgeting

Incremental Budgeting

also called as the starting budget

Incremental Budgeting

refers to the process starting with the current budget from which managers decide whether they need additional resources and the justification for requesting it

Incremental Budgeting

approach in budgeting wherein adjustments are based on previous experience of expected higher future costs

Zero-based Budgeting

doesn't have a basis; as long as you have the financial capacity

Zero-based Budgeting

refers to the process starting with an established point of zero rather than using the current budget as the basis for adding, modifying, or subtracting resources

Zero-based Budgeting

approach in budgeting wherein it is considered to be more helpful in scrutinizing the value of different expenditures

Operating Budget

process of planning for the laboratory as an ongoing business concern, accounting for everyday needs and expenditures

Operating Budget

represents the financial parameters of the laboratory's goals for the coming year

Selection of Time Frame

Forecasting

Scheduling

Synthesis of Information

Preparation of Operating Budget

Annual Budget

is considered as the main working guideline for management

Forecasting

determine how much resource is needed to allocate in a particular area

Quantitative forecasting

uses the application of mathematical rules to a series of past data to predict outcomes

Qualitative forecasting

Use of judgement and opinions of knowledgeable individuals to predict outcomes

Scheduling

time allotted for the budget to be drafted, reviewed, negotiated, and revised prior to implementation

6 months

most institutions start the process about how many months ______ before the beginning of the new budget year?

Synthesis of Information

the actual write-up of budget

logically

information must be presented ______________?

review

approval

implementation

Synthesis of Information is followed by _____, ____, and ______

Capital Budget

covers specific equipment acquisitions and building projects that require major financial commitments

Capital Budget

may be composed of long-term planning and/or short-term budgeting component

Capital Goods

referred to as the fixed assets such as land, buildings, machinery, and equipment

Cost Finding

means by which laboratory documents its costs for performing a particular procedure that establishes its charges based on the involved direct & indirect costs

Cost Finding

performed by laboratory personnel in consultation with the fiscal staff of the hospital

Laboratory Staff

analyzes the steps involved in performing procedures

Fiscal Personnel

provides indirect or overhead expense

Fiscal Personnel

assist in preparing the data for submission to the hospital administration, board of trustees, and third-party payers for approval

Direct costs

costs that are clearly associated with the item or service

Direct costs

costs that are test-specific

Direct costs

occur in direct proportion to the number of procedures performed or are directly attributed to the completion of the test

Indirect Costs

costs that are not directly associated with the item or service

Indirect Costs

refer to expenditure that remain after direct costs have been identified & assigned

Communication

transfer and understanding of meaning

Transfer

information must reach the receiver

Understanding

requires successful communication

Interpersonal Communication

Organization Communication

types of communication

Interpersonal Communication

communication between two people

Organizational Communication

all patterns, networks, and systems of communication within an organization

Control

Motivation

Emotional Expression

Information

functions of communication

Control

this function of communication involves casually talking to work groups

Motivation

function of comm. that makes employees feel appreciated & validated

Emotional expression

function of comm. that is used for the fulfillment of social needs

Information

Communication provides the needed information to get things done in the workplace.

Sender

Message

Medium

Receiver

elements of communication process

Sender

origin of the message

Sender

they must have a particular understanding of the meaning, purpose, target, and desired response of the message

Message

element of comm. that may be verbal or nonverbal

Message

element of comm. wherein the presentation is an important variable

Medium

channel through which information is sent or received

Receiver

who receives & interprets the message

Receiver

who provides feedback to the sender

Formal Communication

Informal Communication

types of organizational communication

Formal Communication

also known as vertical communication

Formal Communication

Aligned with the organizational structure and hierarchy

Formal Communication

Takes place within prescribed organizational work arrangements

Informal Communication

Not defined by the organization's structural hierarchy

Informal Communication

it satisfies needs for social interaction

Informal Communication

it improves organization performance by creating alternative, and frequently faster and more efficient, channels of communication

Upward/Downward

Lateral

Diagonal

directions of communication

Lateral

a direction of communication wherein the communication between employees is on the same level of organization

Diagonal

a direction of communication wherein the communication happens across both work areas and organizational levels

Diagonal

have problems in communication as it bypasses the hierarchy; employees are sometimes not informed

Communication Networks

combination of vertical and horizontal flows of organizational communication into a variety of patterns

Chain Network

Communication following the __formal chain of command__

Wheel Network

Communication __between a leader and all the members__ in the team

Chain Network

follows the hierarchy: UNIDRIECTIONAL

All-Channel Network

has a __free-flowing communication__ among all members

All-Channel Network

a network wherein all have direct communication with the higher and lower positions

All-Channel Network

networks considered a the fastest type of communication

All-Channel Network

emergence of leaders does not exist in this network

Lab Requisition Form

the act of formally requiring or calling upon someone to perform an action

Lab Requisition Form

__official request of the physician__ to the laboratory to perform test