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Evaluating Cost Analysis and Capital Planning for a State Budget

Fesseha B. Mulugeta

PUB-7005 v3: Public Administration

Dr. Erin Rae Hoffer

Northcentral University

September19, 2021

The selected government entity is using the three tools for project cost analysis that includes.

1. Reserve analysis

2. Vendor analysis

3. Group decision-making.

The reserve analysis is a technique used to deal with the uncertainty in project costs by allocating funds. It is a technique to mitigate identified and possible risks in the project associated with cost. Business organizations face numerous risks of project costs exceeding the estimated budget; thus, it is important to estimate the project cost using reserve analysis. It is important to keep the reserve budget in order to meet with exceeding parts of the project. The second tool that the organization is using is vendor analysis to estimate the cost of proposed bids. The analysis is used to get an idea of average bid values. One of the most important techniques used by the organization in decision-making is to make project costs analysis and implement the collective decision. By involving all the stakeholder's organizations, they gain more details and recommendations estimated more accurately (Taghadosi & Ajorpaz, 2020).

There are numerous laws, acts, and legal regulations that guide the financial policy of HHS. The government uses the accountability act, the economy act, the financial management improvement act, and numerous other laws to guide its financial decisions and the costs of the services.

Capital Planning

Capital planning and investment control at HHS is an important part of the financial decision-making of the organization to use collective resources to make financial decisions. HHS is getting advice and assistance from CIO or Chief Information Officer to ensure that the organization manages and assists health in a better way and brings productivity and improvement in the country's healthcare system. HHS is structured in units and different business areas, and operating divisions. It is responsible for accomplishing its objectives and goals and delivering quality health care for individuals in business times. HHS relies on a federal model for capital investment and planning in conformance with CPIC policy (HHS, 2016).

Decision Making Approaches

The government entity prioritizes group decision-making and keeps its stakeholders first in all major decision-making activities. Conclusion: there are numerous decision-making approaches used by the healthcare organization that enable the organization to make effective decisions.

1. Participation of all stakeholders

2. Participative decision-making style

3. Research-based decisions in all departments

4. Effective communication of decisions through the organization among the stakeholders to ensure their participation and management of their opinions (Christine, 2019)

Recommendations

1. The decision-making approaches used by the organization are effective in bringing satisfactory outcomes. However, still, I would recommend it to the organization to use advanced techniques and tools to manage productive outcomes. Using advanced techniques and tools means the organization could use the online survey method through collective opinions of all the stakeholders to make decisions and measure the effectiveness of each decision to gain a competitive advantage.

2. The organization must hire audits while making decisions to ensure that their decisions meet competitive market standards.

References

Christine, S. (2019). Top 10 Tools and Techniques to Estimate Project Cost. https://www.tutorialspoint.com/top-10-tools-and-techniques-to-estimate-project-cost.

HHS. (2016). HHS OCIO Policy for Information Technology Capital Planning and Investment Control. https://www.hhs.gov/digitalstrategy/hhs-ocio-cpic-policy-2016.html.

Taghadosi,  . M., & Ajorpaz,  . N. (2020). Clinical decision-making approaches by health caregivers of patients with COVID-19. http://www.bmrat.org/index.php/BMRAT/article/view/641.

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