Assignment 2: Project -Final Project Summary

Running head: INTERVIEW DECISION MAKERS 1

INTERVIEW DECISION MAKERS 3

Interview Decision Makers

Tanyanika McMillian

South University

The main financial management issue in an organization is the impact on the budget due to understaffing of nurses. Understaffing can affect an organization negatively. The hospitals are unable to function in there set and allocated budget because it is understaffed. Poor employee retention also affects the facilities financial plan when it cost an organization money to hire new employees.

The organization is a hospital in the healthcare industry. The hospital provides healthcare services to patients. It has been in existence for the past fifteen years. There are over 100 employees in the hospital. More importantly, the hospital has people who manage it both directly and indirectly. The Board of Directors manage the hospital indirectly through a manager who is in charge of the hospital. The hospital’s objective is to be committed to provide the best treatment services to patients.

The individuals interviewed worked in the finance department of the hospital. A total of two people were interview. This report will only discuss the views of the Chief Financial Officer (CFO) and the Accountant. The CFO ensures that the hospital is still competent in the market. He comes up with strong business strategies and provides in-depth analysis of financial policies that the hospital is found upon. The CFO stated that the problems posed due to understaffing nurses has a negative implication on the hospital’s financial plan and the organization can no longer function on the allocated budget. The Accountant is in-charge of preparing the hospital’s financial statements, as well as collecting data necessary for journal entry every month. Furthermore, the accountant also corrects any accounting errors in the hospital documents and ensures that the hospital books are balanced. The accountant acknowledges that the organization has a major problem because of understaffing also and the hospital is forced to hire nurses on a temporary basis through agencies which is very costly. As a result, the organization uses an increasing amount of money for training the new nurses and due to poor employee retention.

According to the CFO, in the past, the hospital has resolved the issue of understaffing by hiring temporary nurses. But currently, the hospital has been working on a strained budget, most of the times, not operating within the budget. Finally, per the CFO, the hospital has also solved the issue by laying off more nurses so that they can be left with the few that they can afford within the budget.

The hospital is, nevertheless, looking for a permanent solution to the problem. First, the hospital will work towards increasing the resources so that they can afford to pay more nurses and retain the existing nurses. This will be done by encouraging more people to invest in hospitals. Besides, the hospital’s Board of Directors can also partner with other people who share the same goal. Secondly, the hospital will hire more nurses so as to resolve the issue of understaffing. This way, the nurses will offer quality services to patients since they will no longer overworked. Lastly, the hospital will also expand the hospital’s budget to accommodate the new hires and the new influx of cash. The expansion of the budget will ensure that the hospital is operating within its means.

To achieve these steps in future, the organization will go through some challenges. The first will be trying to convince the new hires that they will be around for a long time. The hospital already has a poor employee retention record, as a result, nurses will need some convincing. Secondly, the investors and partners will also need to be convinced that they need to be a part of the organization. Thirdly, the hospital will have to change the way it operates because of the new changes in the organization. Change has never been easy for anyone.