The budget is the tool that allows the planning of the future of the organizations and the different units that compose it. Not only does it allow for planning the future, but it also helps in making decisions about the activities and strategies to be carried out.
For the action of each of the units that make up a health organisation to be consistent, operational and useful, the organisation as a whole must have instruments that allow it to do so:
– The coordination and integration of each of the activities carried out internally.
– The analysis and evaluation continues to be aimed at adapting to the environment and its demands.
They must be taken into account when drawing up a budget:
– The objectives followed by the organisation.
– The time horizon to which it is directed and the partial and total goals to be achieved during the process.
– The economic assessment of the activity.
The budget is the tool that manages to help the people who make up the organisation towards the established objectives, since both time and resources are available for this purpose.
Therefore, the budget is useful:
– As a planning tool, insofar as it relates the objectives to the resources and time available to achieve them.
– As a control tool, since it analyses how the activity aimed at achieving the objectives is carried out.
Stages of the planning process
Identification of objectives. The objectives must be quantifiable and evaluable in each of the units of the organization.
Identification of strategies. The strategies must be known by all the members of the organization, as well as each of the plans that make them up.
Evaluation of alternatives. In managing the process, it must be known which alternative strategies are presented to those currently accepted.
Knowledge of the action plans that make up each of the strategies.
Alignment of the plans and their temporal range with the resources established in the budgets.
Control of the results and deviations from the initially established budget.
Analysis of the deviations and establishment or choice of alternatives to the course of action.
Therefore, first of all, programming is carried out, consisting of establishing the objectives of the organization. These must be known to all members of the organisation.
Next, each of the people responsible for the different stages, activities, processes, etc. must be identified. In order to know those responsible for guiding the organisation towards the objectives.
Choose those activities linked to each of the units that are a priority for the health objectives and for the organisation. These should be reflected in the budgets.
Coordination of the budgets of the different units, so that they are balanced overall.
Final approval of the budget by the management teams.
Follow-up and control in the execution of the budget.
The budget process of a health organisation is a continuous process, in the same way that health processes are linked to each other over time.
A number of principles should be considered in the development of budget planning, such as
– The principle of foresight. Oriented to try to make a study and analysis of the situation, trying to predict how the future will be in the framework of the application of the budget.
– Planning principle. Aimed at establishing the objectives and characteristics that budgets should include.
– Organisational principle. Aimed at establishing how the work is structured, the lines of responsibility and authority.
– Management principle. Related to the style of directing the individuals in the organisation towards the different objectives.
– Control principle. Aimed at comparing the objectives with the achievements made.