Chapter 5 Flashcards
3 types of plans
Strategic
Operating
Continuous or rolling plan
A continuous process of assessing and establishing goals and objectives and implementing and evaluating and controlling them.
Planning
Looking into the future and decide in advance
Forecasting
It gives an agency something to strive for.
Vision
It outlines the organizations future role and function
Vision
A preestablish and often self-imposed objectives or purpose
Mission
Statement of belief and values that directs ones practice.
Philosophy
Gives direction towards attainment of a certain goal
Philosophy
Desired aims or condition towards which one is willing to work
Goal
Statement of desired short-term condition or achievement, with measurable end result
Objectives
Kroh’s formula
What- when- where-how-who-why-can
Allocating one’s time through setting goals, assigning priorities
Time management
Principles of time management
Planning for contingencies
List of tasks
Inventory
Sequencing
Setting and keeping deadlines
Delegating
Calendar of activities
List of tasks
Thinking of other options
Planning for contingencies
Looking at the task done and not done
Inventory
A systematic financial translation of a plan
Budgeting
A tool for planning, monitoring and controlling cost and meeting expenses
Budgeting
Income the management expects to generate
Revenue budget
Money for the acquisition or maintenance of fixed assets
Capital budget
Budget based on quantitative workload measurement
Personnel budget
The actual operating budget plan in details
Cash budget
A day to dat budget and represents money coming in and going out
Cash budget
Estimation of cash flows of a business over a specific period of time
Cash budget
Portrays a company’s expenses, expected cost, and estimated income
Operating budget
Money received, cash receipt and disbursement during planning period
Cash budget
Program acquisition, disposal and improvements in the institutions physical capacity
Capital budget
Designed to meet future service expectation for clients, provide patient care at minimum cost.
Hospital budget
Include all employee-related expenses, including salary and bonuses
Personnel budget
It is utilized over a longer period of time, it often depreciates
Supplies and equipment budget
Classified as a long tern asset and usually refers to items that will last and be used longer than a year
Equipment (supplies and equipment budget)
3 uses of budget
Planning
Monitoring and motivating
Communication
Preparation for a budget forces the organization to plan for the future
Planning
Budget stages
Formulation stage
Review & enactment stage
Execution stage
Develop objectives and management plan ( budget stage)
Formulation stage
Revise and combine into organizational budget
Review & enactment stage
Direct and evaluate expenses and receipts
Execution stage
Revise budget if indicated
Execution stage
Production cost that change in proportion to the amount of goods that are produced
Variable costs
Not related to volume
Fixed costs
Remain constant as volume increases or decreases
Fixed costs
Fixed expenses that cannot be recovered even if a program is cancelled
Sunk costs
Providing the product or service
Direct costs
Expenses that cannot be traced back to a single costs object or cost source during manufacturing process
Indirect costs
Legal expenses, administrative salary, housekeeping, office expenses and building maintenance
Indirect costs
Advertising, research and development, hiring employees and training/seminars
Sunk costs
Raw material- labor- production- commission- cards-freight
Variable costs
Rentals, loans and taxes
Fixed costs
Types of expenses or costs
Fixed
Variable
Sunk
Direct
Indirect
Standing plans used repeatedly, or guides
Policies
Are specific guide to action
Procedures
Minimal level of achievement acceptable to meet the set objectives
Standards
It is deciding in advance what to do, how to do a particular task, when to do it and who is to do it.
Planning
