NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Budget Utilizing sanitary products to facilitate relaxation and shield nurses from infections while at work. Because of the requirement to renovate and change the infrastructure, the project will last approximately eight months to complete.
We also considered whether or not there was sufficient room for fifty to sixty nurses and whether or not the nurses felt they had the type of supportive environment they needed to be at their best.
The strategy is based on the notion that providing nurses with a cozy environment and fulfilling their needs will increase their level of satisfaction, which will consequently enhance the quality of care they provide to patients.
Justification for the Capital Acquisition
Research indicates that one of the essential elements of high-quality health care and staff retention is motivation among nurses (Kara Ferris et al., 2022). Thus, the nurse leader’s foremost responsibility is to renovate the facility so that nurses feel a sense of belonging there. The staff-focused improvements these renovations will create will make the nurses comfortable and connect with other coworkers in a positive environment.
Based on studies, a good working environment enables workers to be more efficient and work at their best, which enhances the overall outcome rate of the organization (Zhenjing et al., 2022).
This transformation will also make nurses more productive, make them confident enough to take patient care seriously, and enable them to align their practices with the organization’s goals. Therefore, nurses who are confident and composed will be in a better position to listen to patients empathetically, provide patient-centered care, and provide the best possible care. In a study, nurses’ ability to help and care for patients and their families is impaired if their physical, emotional, and psychological needs are not met (Pedrosa et al., 2020). For this purpose, lounge adjustments are a effort to meet the nurses’ requirements. .
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Improved employee motivation enhances productivity and leads to more active and patient-focused care for patients, subsequently benefiting the goal and mission of the organization of delivering patient-focused care.
Improved employee satisfaction also enhances the quality of care. A lounge provides nurses with a location to relax after a long day. In addition, having a spot reserved for employees can give them a feeling of being valued by the firm, fostering an efficient and collaborative work culture. Further, it is hoped that the managers will engage with this budget in a positive way, concentrating on enhancing patient results and satisfaction and reducing the turnover rate. This would assist with employee hiring and retention, but the alternatives would be staff incentives and performance appraisals.
These adjustments, such as providing incentives or performance incentives, only deal with their external motivation.
But nurses have said that the dismal work environment is the primary reason they quit their jobs, so increasing pay alone would only retain employees temporarily. Rather, a total attempt that satisfies intrinsic as well as extrinsic motivations has long-term impacts.
Preparing a Capital Budget
In the next eight months, this budget will be enforced.
The first stage in developing the budget is gathering information and establishing the nurses’ requirements by conducting interviews and questionnaires.
The budget was based on the notion that the budget aims at establishing a positive, encouraging, and less stressful working environment that instills confidence and inspiration in nurses. Table 1 (Appendix 1) provided the total and breakdown of the budget as stated below. The leadership and workload, however, are some of the uncertain areas that could have largely accounted for the high turnover rate. Proper lounge care is another unknown because it may require additional costs if not taken care of well, risking the budgeting process.
Process of Calculating Cost
The CEO and CFO selected the optimal vendor price upon collecting data from vendors and conducting market research to understand and analyze the existing costs of the proposed alterations. The vendors were then requested to provide quotes for all the changes that were ascribed. The payback period (PP) method, which approximates the number of years required to recover the original investment, provided the basis for the cost calculation process (Mollah et al., 2021). The finance department will be responsible for conducting cost calculations. The organization is able to contrast the results depending on how much revenue it has produced as a result of the quickest capital budgeting method. Retention, recruitment, and training savings are able to provide a definite picture of the trends and the amount of years it takes to finish them, so the current estimate calculated that a year would suffice.
Keep in mind, however, that the timeline of one year is subsequent to implementation. Information for the latest yearly budget was collected from outside sources, stakeholders, and cost information sources of the finance department. With assistance from the accounts department, the executives, finance head, and administration reviewed the data, approximated costs, and allocated the years of implementation.
Budget Management Plan
To be effectively managed and executed, interprofessional collaboration is necessary for the budget management plan.
Furthermore, research has shown that successful interprofessional collaboration plays a significant role in how healthcare projects are executed (Schmidt et al., 2021).
For the purpose of obtaining prior trends, sanctioning my budget, and initiating the process, I would like to collaborate with the finance director, head of accounting, and administration director during the present budget-making process. For the construction, I would collaborate with an external vendor selected through a formal procedure. The IT department head will be responsible for offering technological support and bandwidth availability, and the administration director will also oversee the implementation process. In order to provide maintenance services, the maintenance team will collaborate. The basis of budget control is the concept that proper planning, cost monitoring, and deadline scheduling assist in measuring the quality of the work. Cost-saving strategies will be used to manage expenses. These will involve identifying and executing measures to save costs while maintaining the status quo. Budget control involves the identification, analysis, and adjustment of budget variances, like cutting costs and modifying the change strategy.
Impact of Capital Acquisition on Financial Health
The firm would initially feel financially stressed due to the cost of renovation, which is incurred immediately.
In the short run, it can decrease liquidity and impact the cash flow of the firm.
It does have a long-term return on investment impact, though, as it tries to reduce turnover, which in turn reduces the cost of hiring and training new staff.
Another approach to reduce turnover and enhance worker productivity is to utilize this cost to increase wages and provide monetary incentives to workers (Awosoga et al., 2023). It also seeks to enhance the firm’s fiscal soundness so that it can keep up with trends in the market. To recoup the renovation cost, the existing budget anticipates a 50% return on investment by quantifying the advantages of the alterations within the first six to eight months. Depreciation values, however, encompass asset description, replacement or maintenance cost, and tax implementation. Applying an effective financial budget that can help the organization make sound decisions requires analysis.
References
The researchers of the study are Awosoga, O. A., Odole, A. C., Onyeso, O. K., Ojo, J. O., Ekediegwu, E. C., Nwosu, I. B., Nord, C., Steinke, C., Varsanyi, S., & Doan, J. (2023). A qualitative study of professional caregivers’ perceptions of methods to improve retention, well-being, and staff turnover in Alberta’s continuing-care facilities. Quarterly for Home Health Care Services, 42(3), 193–215. https://doi.org/10.1371/journal.pone.0247530
