RECRUITMENT AND

BUDGETING

Prepared by,
Ms. Ekta S Patel,
I year M.Sc nursing.
 INTRODUCTION
 Recruitment is the first step in the process of
feeling vacancy.
 Recruitment is a process of searching for
prospective employee.
 The purpose of recruitment to provide a pool of
potentially qualified job candidates.
MEANING OF RECRUITMENT:

 The
action of enlisting new people in the
armed force.

 Recruitment is a process of searching for

prospective employees and stimulating them
to apply for the jobs in the organization.
When more persons apply for job then there
will be a scope for recruiting better persons.
 DEFINITIONS OF
RECRUITMENT

 Recruitment involves seeking and attracting a

pool of people from which qualified
candidates for job vacancies can be chosen.
-Byars and Rue
 Recruitment is process of locating, identifying
and attracting capable applicants.
-Taylor and Bergmann

 Recruitment is defined as, “it is the process of

seeking out and attracting individuals from the
labor market who are capable and interesting in
filling the employment vacancies”.
PURPOSE OF RECRUITMENT

 GENERAL PURPOSES:

 Recruitment is to provide a pool of

potentially qualified job candidates.
 SPECIFIC PURPOSE:

 Determine the present and future

recruitments of the organization.
 Increase the pool of job candidates at
minimum cost.
 Help in increase the success rate of the
selection process by reducing the number of
visibility under qualified or over qualified job
application.
 Meet the original legal and social obligation
regarding composition of its workforce.
 Helpreduce the probability that job application
once recruited and select, will leave the
organization only after a short period of time.

 Beginthe identifying and preparing potential job

application how will be appropriate candidates.

 Increaseorganizational and individual effectiveness

in the short term and long term.

 Evaluatethe effectiveness of various recruiting

techniques and sources for all types of job
applicants.
 NEEDS OF RERCUITMENT
 PLANNED NEED: The need arising from changes in
organization and retirement policy.

 ANTICIPATED NEED: Anticipated needs are those

movements in personnel, which an organizational
can predict by studying trends in internal and
external environment.

 UNEXPECTED NEED: unexpected need involves

resignation, death, accident, illness.
RECRUITMENT PROCESS

 Recruitment process involves a systemic

procedure from searching the candidates to
arrange and conducting the interviews and
requires many resources and time. It has
following activities as shown in figure;
 1.Identify
vacancies

2.Preparing
the job
7.Conducting
specification
interviews
and person
specification

6.Arrange 3.Advertising
interviews vacancies

5.Short 4.Managing
listing response
1. IDENTIFY VECNCIES:

 Itbegins with the human resource

department receiving requisition for
recruitment from different departments in
the organization. It includes post to be filled,
number of vacancies, duties to be
performed, and qualification with
experience.
2. PREPARING JOB AND PERSON PSECIFICTAION:

 Itis helpful to think of the job under broad

heading: main characteristics of training,
background of the job, main responsibilities, and
job boundaries, expectation of job holder,
resources and constraints and affecting job.
 It has to be decided what types of candidates are
to be invited and what would be there
characteristics.
 This need is based on job description, hence
it is important to have job analysis, before
put forward the recruitment. Hence it is
important to look at nature of job and its
requirement.

 Whereas personal specification can be

divided into personal recruitment, e.g. work
experience and qualification seen as
essential and desirable and personal
qualities.
I. PHYSICAL SPECIFICATION:

 It includes physical abilities and skills

requires for particular job. There are
physiological variable like vision, age, motor
coordination, etc.
II. MENTAL SPECIFICATION:

 Itincludes IQ, memory, judgment, ability to

plan, estimate to read, to write, etc.
III. EMOTIONAL AND SOCIAL SPECIFICATION:

 Itincludes the personal characteristics,

manner, emotional maturity and stability,
aggressiveness, skills in dealing with other,
social adaptability.
IV. BEHAVIOURAL SPECIFICATION:

 These are not formally listed out but have to

keep in mind during the process of
recruitment. This type of specification mostly
required at higher level of management.
3. ADVERTISING VACANCIES:

 Thisis method by which candidates will be

located it is either through internal or
external sources and also decided the
method of advertising the post.
4. MANAGING RESPONSE:

 This
step is the way adopted to receive
application and scrutinized each application
as per the requirement by the scrutiny
committee.
5. SHORT LISTING AND IDENTIFY THE
PROSPECTIVE CANDIDATES:

 Afterthe scrutiny the eligible candidates are

shortlisted and a list is prepared.
6. ARRANGING THE INTERVIEW
WITH SHORT LISTED EMPLYOEE:

 Interview dates are finalized.

Criteria for merit list are
prepared by the committee and
candidates are informed. The
selection committee is
formulated.
7. CONDUCTING THE INTERVIEW AND
DECISION MAKING:

 Interviewis conducted on the schedule date

by the selection committee; there and then
candidates are selected.
SOURCE OF RECRUITMENT

 Every organization has the option to choose the

candidates for its recruitment process from the two
kinds of sources:

1) Internal sources
2) External sources
1.INTERNAL SOURCES:

 The sources within the organization itself (like

transfer of employees from one department to
other and promotions) to fill a position are known
as internal source of recruitment.
 Internalrecruitment seeks application for
position from those who currently employed.
Internal recruitment include following points;

 Present employees
 Employees referrals

 Former employees

 Previous application
I. TRANSFER:

 Theemployees are transfer from one

department to another department
according to their efficiency and experience.
II. PROMOTION:

 The employees are promoted

from one department to
another department with more
benefits and greater
responsibility based on
efficiency and experience.
III. UPGRADING AND DEMOTION:

 It
is according to performance of present
employee.
IV. RETIRED AND RETRENCHED EMPLOYEES:

 Itmay also require once again in case of

shortage of qualified personnel or increase in
load of work. Recruitment such people save
time and costs of organization as the people
are already aware of organizational culture
and policies and procedure.
MERITS OF INTERNAL
RECRUITMENT

 Employees are motivated to improve their

performance.
 Morale of the employees is increased.

 Industrial peace prevails in the enterprise.

 Filling of jobs internally is cheaper as

compared to getting candidates from
external sources.
 DEMERITS OF INTERNAL
RECRUITMENT

 When vacancies are filled through internal

promotion, the scope for fresh talents is
reduced.
 The employee may become lethargic if they are
sure of the time bound performance.
 The spirit of competition among the employees
may be hampered.
 Frequent transfer may reduce the overall
productivity of the organization.
EXTERNAL SOURCES

 Recruitingcandidates from all the other

sources like (like outsources agency) are
known as external source of recruitment.
 Thefour most popular ways to recruiting
externally are;

 Job centers
 Job advertisement

 Recruitment agency

 Personal recommendation
I. PRESS ADVERTIZEMENT:

 Advertisement of the vacancy in newspaper

and journals are widely used source of
recruitment.
II. EDUCATIONAL INSTITUTION:

 Various management institution, engineering

colleges, medical college etc. are a good
source of recruiting well qualified executive,
engineers, medical staff etc. They provide
facilities for campus interview and
placement. This source is known as campus
recruitment.
III. PLACEMENT AGENCIES:

 Severalprivate consultancy firms perform

recruitment functions on behalf of client
companies by charging a fee. These agencies
are particularly suitable for recruitment of
executives and specialist. It is also known as
RPO (recruitment process outsourcing).
IV. EMPLOYMENT EXCHANGES:

 Government established public employment

exchanges throughout the country. These
exchanges provide job information to job
seekers and help employers to identifying
suitable candidates.
V. LABOUR CONTRATORS:

 Manual workers can be recruited through

contractors who maintain close contact with
the sources of such worker. This source is
used to recruit labor for construction jobs.
VI. UNSOLICITED APPLICATION:

 Many job seekers visit the office of well-

known companies on their own. Such callers
are considered nuisance to the daily work
routine of enterprises. But can help in
creating the talent pool or the database of
the portable candidates for the organization.
VII. RECRUITMENT AT FACTORY GATE:

 Unskilled workers may be recruited at the

factory gate these may be employed
whenever a permanent worker is absent.
More efficient among these may be recruited
to fill permanent vacancies.
 MERITS OF EXTERNAL
RECRUITMENT

 External source direct recruitment winds

the field or recruitment.
 It provides a chance to more people with
broad eye view.
 Directly recruitment are free from
departmental shortcomings therefore they
will work diligently and honestly to keep up
their services.
 Direct recruitment system is democratic
and impartial.
 It is more suitable for technical and
professional employees.
 It attracts young personal on job.
 DEMARITS OF EXTERNAL
RECRUITMENT

 The employees lose enthusiasm because of

decreased opportunities for progress.
 Direct recruitment sometimes makes the
person puppet in hands of their subordinates
because of experience.
 Direct recruitment when based on written
test then it is difficult to decide the efficient
workers based on skills and scores.
 RECENT TRENDS IN RECRUITMENT

The following trends are being seen in

recruitment;

1. OUTSOURCING:
2. POACHING/ RAIDING:
3. E-RECRUITMENT:
1. OUTSOURCING:

 The outsourcing firms help the organization

by the initial screening of the candidates
according to the needs of the organization
and creating a suitable pool of talent for the
final section by the organization.
2. POACHING/ RAIDING:

 Poaching means employing a competent and

experienced person already working with
another reputed company in the same or
different industry; the organization might be
a competitor in the industry. A company can
attract talent from another firm by offering
attractive pay package and other terms and
condition better than the current employer
of the candidate.
3. E-RECRUITMENT:

 Many big organization use internet as a

source of recruitment. E–recruitment is the
use of technology to assist the recruitment
process. They advertize job vacancies
through world web.
BUDGET
 INTRODUCTON OF
BUDGET:

 Every organization has predetermined

goal of objectives which are attained by
with help of proper planning and
execution of plans economically. The
plan are in the form of statements are
called budget.
 Budget expresses the plan of hospital in
the health organization to improve the
optimum care at a reasonable cost in the
financial terms.
 The process of budgeting has been
gained importance in recent years
because of rising health cost and
emphasis on cost containment.
 MEANING OF BUDGET

 Budget word first coined by the British Kings in

early days from the word ‘BOUGETTE’ which
means lather bag or pouch that held the seal of
medieval court Exchequer (Former Government
Department Incharge of National Revenue.)
 Centuries later the statements come to be
popularly known as ‘BUDGET’.
 Nowthe term “budget” refers to financial
papers.

 Budget is numerical description of

expected income and planned
expenditure for an organization for
special period of time. It is concrete,
precise, picture of the total operation of
an enterprise/ organization/ institution in
monetary term.
DEFINITION OF BUDGET:
 Budget is define as, “it is tool for
planning, quantifying the plans and
controlling the cost.”
-Finkler 1984
A budget is a plan that uses numerical
data to predict the activity of organization
over a period of time and it provides a
mechanism for planning each unit’s
needs and contributions.
-Carruth and Noto 2000

 Budget is define as, “it is an instrumental

of management used as an aid in
planning, programming and controlling of
business activity.”
 PURPOSES OF BUDGET
 Budget as tool of financial control.
 Budget is an instrument of organization as
policy. It is device whereby plan and
policies are put into action.
 Budget is tool of administration. When
planning, co-ordination, control, evaluation,
reporting and review are combined in a
budgetary system it becomes effective tool
for administration management.
 It has informative roles as it contains
valuable information for various activities.
 It is also tool of accountability.

 Budget is forecast of income and

expenditure.
 It is tool for decision making.

 Budget is means to monitor business

performance.
 CHARACTERISTICS OF
BUDGET:
 It is a plan or program, framed on the
basis of the past experience.
 Budget is a scheme for action.

 It should estimate revenue and

expenditure as accurately as possible.
 It has comprehensive plan of action.

 There is generally annual plan.

 PRINCIPLES OF BUDGET:
 Budget should provide sound financial
management by focusing on recruitment
of organization.
 It should focus on objectives and policies
of organization.
 It should ensure the most effective use of
scarce financial and non financial
resources.
 Budget should require the program
activity plan in advance.
 Setting budget target requires almost
care to check against and balance
between too high and too low estimates.
 Budget period should be appropriate to
the nature of business or service and
type of budget.
 While developing the budget, provision
must be made for its flexibility.
 FEATURES OF BUDGET:

 It should be flexible.
 It should be produced of joint venture +
co-operation of executives/ department
heads of different level of management.
 It should be synthesis of past, present
and future.
 It should be n a form of the statistical
standard lay down in specific numerical
terms.
 It should have support of top
management throughout the period of its
planning and supplementation.
TERMINOLOGY OF
BUDGET:
UNION BUDGET:
 Union budget is a comprehensive display
of the government’s finances. It is the
most significant economic and financial
event in India. The finance minister puts
down a report that contains government
of India’s revenue and expenditure for
one fiscal year. The fiscal year runs from
April 01st to March 31st.
 Financeminister present the annual
union budget in the parliament on the last
working day of February. The budget
should pass by the Lok Sabha before it
can come into the effect on April.
 REVENUE BUDGET:
 Therevenue budget
consists of the
revenue receipt of the
government (revenue
from tax and other
sources) and the
expenditure made
from these revenues.
 REVENUE RECEIPT:

 Revenue receipts are divided into tax and

non-tax revenue.

Revenue
receipt

Tax Non-tax
revenue revenue
 Tax revenue: Tax revenues are made up
of taxes such as income tax, corporate
tax, excise, customs and other duties
which the government levies.

 Non-tax revenue: It consists of the

interest and dividend on investments
made by government, fees and other
receipt for services rendered by
government.
 REVENUE EXPENDITURE:
 Revenue expenditure is the payment
incurable for the normal day-to-day
running of departments and various
services that it offers to its citizen.
 Thedifference between revenue
expenditure and revenue receipt is
usually negative. This means that the
government spends more than it earns.
This difference is called as the
REVENUE DEFICIT.
 CAPITAL BUDGET:

 Capital budget is consisting of capital receipts and

payments.

capital
Capital receipts
budget
payments
 Capital receipts: The main items of capital
receipts are loans raised by the government
from the public which are called Market
Loan, borrowing by the government from the
reserve bank and other parties through sales
of treasury bills, loans received from foreign
government and bodies and recoveries of
loan granted by Central government to State
and Union Territory Governments and other
parties.
 Capital payments: It consist of the
capital expenditure on acquisition of
assets like land, buildings, machinery,
equipment, as also investments in
shares, etc. and loans and advances
granted by Central Government to State
and Union territory Governments,
Government companies, Corporation and
other parities.
EXPENDITURE:
Expenditure

Plan Non-plan
expenditure expenditure

Non-plan Non-plan
revenue capital
expenditure expenditure
Plan expenditure:
 It is estimated after discussion between
each plan of the ministries concerned
and planning commission. Plan and
expenditures forms a sizeable proportion
of the total expenditure of the central
government.
NON-PLAN EXPENDITURE:
It divided into two;
 Non-plan revenue expenditure: it is
accounted for by the interest, payments,
subsides (mainly on food and
fertilization.), wage and salary payments
to the government employees, pension,
police, economic service in various
sectors, other general services such as
tax collection, social services grants to
foreign government.
 Non-plan capital expenditure: It mainly
includes defense, loans to public
enterprises, loans to state and union
territory and foreign government.
 FISCAL POLICY:
 Itis change in government spending or
taxing designed to influence economic
activity. The changes are designed to
control the level of aggregate demand in
the economy.
 FISCAL DEFICIT:
 Thegap between the government’s total
expenditure and the sum of the revenue
receipt and non-debt capital receipt. It
represents the total amount of
borrowed funds required by the
government to completely meet its
expenditure.
 HOSPITAL BUDGET:
 Itis the statement of future management
policies and plan expenditure in
accounting terms.
 CLASSIFICATION OF
BUDGET
1. MANPOWER BUDGET:
It includes wages and other benefit
provide for regular and temporary
workers.
2. CAPITAL EXPENDITURE BUDGET:
It includes purchases of land, building
and major equipments of considerable
expenses and long life.
3. OPERATING BUDGETING:
It includes cost of supplies, minor
equipments, repairs and overhead
expenses.
 TYPES OF BUDGET:
1. INCREMENTAL BUDGET:
It is one based on estimated changes in
present operation, plus a percentage
increase for inflation, all of which is added to
previous year budget.
2. FLEXIBLE BUDGET:
It consists of several financial plans, each
for different level of program activity. It is
based on the fact that operating
conditions rarely confirm to expectation.
3. ROLLOVER BUDGET:
It is one that forecast program, revenue
and expenses for a period greater than a
year, to accommodate program that are
larger than annual budget cycle.
4. OPEN ENDED BUDGET:
It is a financial plan in which each
operating manager presents a single cost
estimate for what is considered optimal
activity level for each program in the unit,
without indicating how budget should be
scaled down if less funding is available.
5. FIXED-CEILING BUDGET:
It is financial plan in which uppermost
spending limit is set by the top executives
the unit and divisional managers develop
budget proposal for their area of
responsibility.
6. PERFORMANCE BUDGET:
It is based on function which allocated
function, not division e.g. direct nursing
care, in service education, nursing
research.
7. PROGRAM BUDGET:
It is one where costs are computed for
total program i.e. group total cost for
each service program. E.g. MCH, FP.
8. PRODUCTION BUDGET:

It is the budget that aims at securing the

economical manufacture of products and
maximizing utilization of production
facility.
9. CAPITAL EXPENDITURE BUDGET:
It is prepared for assuring planned timely
capital investment in the business to
ensure availability of capital at the right
time over longer period.
10. ZERO BASED BUDGET:
It requires nurse manager to examine
justify each cost of every program both
old and new in every annual budget
preparation.
11. CASH BUDGET:
It is prepared by way of projecting
possible cash receipt and payments over
the budget period.
BUDGETING:
 INTRODUCTION:
 Health economy has gained a lot to
do in the management of health care
agencies and in provision of effective and
economical health care to individual,
families and community and court as a
whole.
 Itis responsibility of every country to look
in to the source of income over
expenditure on various aspects of health
which include education, infrastructure
and organization of health care services.
 MEANING:

 Budgeting is the heart of administrative

management, serves positively as a
powerful tool of coordination and
negatively, an effective device to
eliminating duplication and wastage.
 DEFINITION:

 Budgeting is the formulation of plans

for a given future period in numerical
terms.
-Koontz.

 Budgeting can be defined as

allocation of scarce resource on the basis
of forecast needs, for proposed activities
over a period of time.
PURPOSES OF BUDGETING:
 MAIN PURPOSE:
 To ensure the most effective use of
scarce financial and non-financial
resources.
 SPECIFIC PURPOSES:
 It provides detailed plan to reduce
uncertainty.
 It controls expenses by efficient and
economical manner.
 It provides mechanism for measurement
of work effort on timely basis.
 Enhance budget planning.
 Coordinates effort among organizational
department.
 Establish the frame of reference for
management decision.
 Provides criterion for evaluating managerial
performance.
 Offers useful format for communication.
 It aids in planning and controlling.

 It guides for action and future needs.

 It serves as instrument for economic and social

policies.
 It conserves the resources by regulation.
 PRINCIPLES OF
BUDGETING:

According to Howard SK, the principles of

budgeting are,

 Annularity.

 Comprehensiveness.

 Unity:
it should have both long term and sort
term expenses items.
 Exclusiveness: the budget is concerned
with money, not with issue.
 Specificity: it should be allocated to
identifiable objects.
 Accountability: money should spent as
indicted in the budget plan.
BUDGETARY PROCESS:
 The budget process consists of activity
that encompasses the development,
implementation, and evaluation of plan
for provision of services and capital
assets.
 STEPS IN BUDGETARY
PROCESS:

 Thefollowing steps are followed in

budgetary process;
BUDGET ESTIMATION
PREPARATION

BUDGET APPROVAL

BUDGET ALLOCATION
AND APPROPRIATION

BUDGET MONITORING
1. BUDGET ESTIMATION PREPARATION:

 Usually the finances and budget

preparation is dealt by account section of
the institute/ hospital.
 The record of revenue/ income and
expenditure is usually centralized.
 Each department is also keeping a
record of money received/ sanctioned
and expenses.
2. BUDGET APPROVAL:

I. Intra mural approval system:

 The intra mural approval system i.e.

within the organization approval system.
 It has to go in two steps: firstly by head of
hospital and then by head of institute.
II. Extra mural approval system:
 The approving authority is the same for all
government funded hospitals. I.e. Through
joint secretary, health secretary, and health
minister.
 It is then presented in the parliament and
financial approval is signed by Prime minister
who is chairman of planning commission.
3. BUDGET ALLOCATION AND
APPROPRIATION:
 After the final approval budget is voted
on account of maintenance and then
allocated to organization.
 The finance is sanctioned in installment
based on hospital funding, management
policy, performance, actual expenditure
of last year and future plans.
4. BUDGET MONITORING:

 Itis usually made by budget repots.

 There is budget monitoring committee
comprising of representatives of each
department, financial adviser to review
budget prepared in terms of forecasting,
expenses, cash position and deviation
from budget.
 ADVANTAGES OF
BUDGETING:
 Help to create cost awareness.
 Produce cost saving.

 Provides plan for forecast of what is

expected.
 Help to clarify accountability and
responsibility.
 Provide communication within the
organization.
 DISADVANTAGES OF
BUDGETING:

 Over budgeting leads to over

expenditure.
 Restrict the activity.
 Underestimation
NURSING
BUDGET:
 MEANING:

 Nursing budget is
plan for allocation of
resources based on
preconceived need
for proposal series of
programs to deliver
patent care during
one fiscal year.
A nursing budget is a systematic plan that is
estimate by nurse administrators for revenue
and nursing expenses.

 Nursing budget projects how revenues will

meet expenses and it projects a return on
equity that is profit.
 STEPS OF NURSING
BUDGETING:
 There are eight steps in nursing budget
 • Determine productivity goals. The director of nursing services and nurse manager
1. determine the unit's productivity goal for coming fiscal year.

• Forecast the workload, the number of patient, day expected on each nursing unit for
coming fiscal year is calculated.
2.

• Budget patient care hours the expected number of hours developed to the patient care
3. for forecasted patients days is calculated.

• Budget patient care hours and staffing schedule. The budgeted patient care hours are
4. reflected in recommended staffing schedule by shift and by the day of week.

• Plan non-productive hours and productive hours are budgeted for coming year.
5.
• To aid in planning process, a graph is used to show nurse and level of forecasted
patient days and therefore the staff requirement are expected to increase or decrease
6. during the year, considering educational activity.

• Estimate the cost and supplies and services. The supply and services to be purchased
for the year are budgeted.
7.

• Anticipate capital expenses. The expected capital investment for the coming year is
included in budget.
8.
 Budgeting can be strong support for
developing written objects for the nursing
division and for each of its unit.
 It provides motivation for effective planning
and standard by which to evaluate the
performance of nurse manager.
 Nursing budget plan ensure that client
receive the nursing services from
satisfied nursing staff.
ZERO BASE
BUDGETING:
 INTRODUCTION:
 The use of Zero-Base Budgeting (ZBB)
as a managerial tool has become,
increasingly popular since the early
1970s.
 ZBB has been gaining acceptance in the
business world as a tool in measuring the
managerial functions of planning and
control.
 Initially the former President of America,
Jimmy Carter, has developed this
technique, when he was working as the
Governor of Georgia, for controlling state
expenditure.
 MEANING:

 Zero Base Budgeting is the latest

technique of budgeting.
 An accurate budget can be framed, when
a relationship between the inputs and
outputs can be established.
 Where it is difficult to compare the
resources allocation with the output, ZBB
is more appropriate in controlling.

 The term ‘Zero Base Budgeting’ means

starting from the scratch (form
beginning).
 InZBB, the manager has to justify the
essentiality of the new projects for their
starting and continuation of previous projects,
every year. Equally, the concerned manager
has to justify the amount of spending, thereon,
is reasonable.
 STEPS FOR PREPARATION
OF ZERO BASE
BUDGETING:

 Thefollowing steps are involved in Zero-

Base Budgeting:
 Determining the Objectives

Extent of Coverage

Developing Decision Units

Developing Decision Packages

Preparation of Budgets
PERFORMANCE
BUDGETING
 MEANING:

 Itis a system of presentation of expenditure in

terms of functions, program, performance unit,
reflecting primarily, the output and its cost. It
emphasized accountability, efficiently and
economy by emphasizing outcome and
results instead of activities or outputs.
Thus the manager would budget as needed to
achieve specific outcome and would evaluate
budgetary success accordingly.
 STEPS:
The following steps are being taken;
 Identify and analyze the work of
organization into functions, sub function,
programs, sub program, activities, sub
activities and in results.
 Lay down the target of each scheme,
function and program.
 Set the performance norms or standards
for each activity or task.
 Indentify each indication regarding each
task.
 Specify means of achieving them.
 Design the monitoring and evaluating
system or performance recording and
reporting system.
 Calculate all cost of all inputs,
resources to achieve the target in terms
of benefits.
 TOOL USED IN PERFORMANCE
BUDGETING:

 It involves development and use of more

refined management tools; e.g.
• Work measurement studies to measure
or to identify various works.
• Performance standards and its specific
indications to measure the performance.
• Monitoring methods like PERT.
• Other methods like cost analysis.
PROGRAM PLANNING
BUDGETING SYSTEM
(PPBS):
 INTRODUCTION

 Program planning budgeting system

(PPBS) is system for planning and
control.
 It is launched in 1965. It is process
under which priority among kinds of
services may provide are weighed;
objectives are stated in operational term;
alternative means to accomplish the
given objectives are analyzed.
 MEANING

 Itis systematic method of allocating the

resources of organization in ways that will
most effectively help the organization to
meet its goal and objectives. This is also
known as Program budgeting.
 PURPOSES OF PPBS
 To provide management with the better
analytic basis for making program decision.
 To put decision into operation through
integration of the planning, programming and
budgeting function.
 To unify planning, programming and
budgeting.
 It is concern primarily with major decision
making process: planning, programming and
budgeting.
 PRINCIPALS OF PPBS
 Examine the expenditure from the
system view point analyses the amount
of financial input required to produce a
given volume of output under varying
conditions of through put.
 Plan for single year in advance if
budgetary scope is limited.
 Limit to preferred program rather than
alternative method.
PPBS AS A PROCESS

PLANNING

EVALUATING PROGRAMMING

BUDGETING
 PLANNNIG:
 Planning is an analytic activity carried out to
aid in selection of organizational objectives
and then to examine the courses of action
that could be taken in pursuit of objectives.
 Planning is the administrative instrument that
provides the rational basis for decision
making.
 Plans need to be spelled out by programming.
 PROGRAMMING:

 Programming is the function that

converts plan into specific action
schedule for the organization.
 It consist of developing detailed
resources requirements and action
needed to implement the plan.
 BUDGETING:

 Itis an activity concern with the preparation

and justification of organization’s annual
budget.
 The function of budget is to secure sufficient
funds to put program into operation.
 Budget should prepared by keeping all
activities of program in mind.
 EVALUATION:

 After
implementation of the plans, these
are analyzed for further action.
 ADVANTAGES
 Iteducates manager to follow a particular
source of action that affect managerial
decision.
 Clarifies cost consequences of
expending or contracting service
program.
 DISADVANTAGES
 Ithas tendency toward excessive
centralization of decision making at the top
level while managing and control
responsibilities lies for middle manager or
supervisory group.
 Difficult to define clinical program in term that
administrator and functional experts can
understand.
 Difficulty in identifying the output measures
that can be quantified in financial term.