University of Phoenix
Allocation of Finite Resources within the Typical Not-for-Profit Health Care Organization
The general philosophy, structure, and approach of the not-for-profit health care organization, as well as its future aspirations are contained in the values, mission, and vision statements of the organization. Once the typical not-for-profit health care organization has defined its mission, vision, culture, stakeholders, services, structure, and goals, it must then develop organizational objectives to help achieve its stated goals. While organizational goals are qualitative in nature, organizational objectives are primarily quantitative financial performance goals, and specify such things as target market share, target return on equity (ROE), and target economic value added (EVA) (Gapenski, 2012). These elements drive financial results, and dictate how finite resources are allocated within the not-for-profit health care organization.
In this paper we will explore the processes involved in allocating financial and human resources in the not-for-profit health care organization. We will look at operational planning in general, and specifically at the financial planning process, including the ethical considerations that must be addressed. In allocating human resources we will detail the roles recruitment and retention play in the process, and how senior leadership can partner with the human resources arm of the organization to identify and retain the best and brightest talents in the industry.
The finance department of the organization has the responsibility for all functional areas related to the financial management of the not-for-profit health care organization. These areas include long range planning, accounting and financial reporting, capital finance, cost control, and financial performance (Kreidler, 2008).
The strategic plan
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