Expense target reductions
EXPENSE TARGET REDUCTIONS 4
The goal to achieve a 5% reduction in expenses is never an easytask. As a unit nurse manager, there are various strategies that onewould apply to make sure that the objective of expense reduction isachieved. Unknown to many, there are some costs in a hospital settingthat constitute huge expenses. It is the responsibility of the nursemanager to make sure that the steps he or she takes to reduce theexpenses do not compromise on the quality of services offered or onthe welfare of the employees.
Firstly, it is important to examine instances where duties fordifferent employees tend to overlap. This will ensure that thedepartment gets rid of the unnecessary employees and hence reduce thelabor costs significantly. Further, it would be essential to reducesome of the discretionary spending channels or purchases (Vermillionet., 2010). This may include reduction in the purchase of some officeequipments that are not critically essential to the operations of thedepartment. Another area that increases the cost of running thedepartment and that I would reduce is travel and catering. Providingfood and drinks to the employees and paying for their transportsignificantly increases the cost of running the department.
Tracking these cost reduction strategies would require that weeklymeetings are held with the employees of the department to assess theprogress made. It is essential to state that the employees of thedepartment must be involved in the adopted cost reduction strategies.The weekly costs should be compared with similar costs of theprevious year when the strategies to reduce the expenses were not inplace (Yoder-Wise, 2014). Further, it is essential to prepare monthlyfinancial reports that show the progress that has been made.Employees in the different units of the department must preparereports detailing the effects that the strategies have had. In areaswhere the objective have not been met, there is need to applydifferent strategies in order to meet the overall objectives.
In order to successfully reduce the expenses of a department in ahospital setting, it is essential for the manager to involve theemployees within the said department. This is usually called employeebuy-in where the employees are convinced to get committed to themission and the goals of the department or an organization as awhole. This could be achieved through involving the employees in theformulation of the strategies that will be used to reduce theexpenses (Cassidy & Cassidy, 2011). For instance, it is essentialto inform he employees that catering in the workplace will be reducedand get their opinions and views before implementing the strategy.Further, it is essential to seek ideas from the employees regardingthe ways through which the expenses of the department could bereduced. This will ensure that the employees are not only committedto the reduction of the costs, but are also part of the mission.Finally, it is essential to demonstrate to the workers the long termeffects of the measures that the department is taking. Employees mustbe convinced that the long term goals are beneficial.
While concluding, it is not any strategy that can be used to reduceexpenses in an organizational department. The approaches that areused must not affect the employees’ morale or the quality ofservices that are offered to the clients. Further, the employees mustbe involved in the development of the strategies that will beapplied.
Cassidy, A., & Cassidy, D. (2011). A practical guide toreducing IT costs. Ft. Lauderdale, FL: J. Ross Pub.
Vermillion, K., Terry, A., Davis, S. & Owens, K. (2010).Innovations in performance management. Health FinancialManagement.
Yoder-Wise, P. S. (2014). Leading and managing in nursing.St. Louis, Mo: Elsevier Mosby.
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