Preparing and Managing a Capital Budget
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The Villa Health Hospital has a capacity of 35 beds, with a current working staff of 20 individuals. The nursing staff turnover was recently high, and the hospital faced issues regarding managing the workload of staff, as they were performing extra shift duties to cope with the patient’s needs. This assessment will propose a capital budget to renovate and remodel the hospital to enhance the aesthetics and ambiance of the current setting. The aesthetics and surroundings significantly play a key role in improving the comfort level and performance of the employees. The adoption and implementation of innovative technologies always play a key role in the healthcare setting, and thus the hospital decided to bring an innovative change in the work environment by improving the aesthetics in the hospital setting.
Capital Acquisition
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Capital acquisition generally refers to how an organization acquires an asset for the business purpose including; building, expanding, and purchasing a business. The assets in the capital acquisition primarily include inventory, equipment, etc. The aim of acquiring capital is to expand the business, meanwhile focusing on generating overall profits. Capital acquisition is essential for the business to achieve success and growth.
Aim of Capital Acquisition
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The organization will be acquiring the capital for renovation and remodeling purposes. As it was observed by the management team, the décor and ambiance of the hospital need to be enhanced, as it plays a significant role in boosting the mood of both the patients’ and the workers. The study suggested that a comfortable environment has a positive impact on the employee’s productivity and performance (Ramli, 2019). The main area of renovation and remodeling was the reception and the waiting lounge area, as these areas are the most noticeable ones, so the aim was to make them more comfortable and attractive for the patients. The period required for the completion of this project will be between 3-4 months. The renovation and remodeling plan is accurate and complete, as it will fulfill the purpose of the organization for which the capital was acquired.
Advantages and Disadvantages of Capital Acquisition:
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The advantages of capital acquisition are;
- It helps in attaining capital gain.
- It increases market power.
- It increases revenue.
- It helps in generating new ideas.
- It helps in gaining market share.
The disadvantages of capital acquisition are:
- It can cause cultural conflict among the organizations.
- Capital acquisition can cause conflict regarding the aims and objectives of the organizations.
- Lack of employee productivity
- The brand value of the organization can get affected.
- The productivity of the company can get affected if the capital is not acquired from a reliable organization.
Underlying Assumptions
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The organization is expected to acquire capital acquisition for renovation purposes in the hospital. The organization aims to bring change in the ambiance of the hospital’s lounge area, and make it a comfortable place for the staff. The organization is expecting to promote motivation among the employees to enhance their productivity of the employees and deliver quality services.
Justification for the Capital Acquisition
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The renovation of the reception and lounge area will have a positive impact on the nursing staff, as it will provide them with a comfortable area to interact with their fellow staff in their leisure time. The ambiance does have an impact in lifting the moods of the individuals, and that is the sole purpose of this renovation to make the areas a comfortable place for the nursing staff to relax and conduct discussions in their leisure time. The peaceful ambiance and environment will keep the working staff motivated (Emezie, 2022), and hence their performance will be enhanced, and they will be satisfied. Also, it will benefit the patients by providing them with a comfortable and peaceful ambiance, while they will be waiting for their turn in the lounge area.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The organization aims to deliver the best quality services to cater to the patient’s needs, and this project will promote a sense of motivation among the working staff by creating a peaceful ambiance and environment for them, and hence will reduce the nursing turnover rate. A comfortable work environment enhances employee satisfaction and reduces staff turnover (Taheri et al., 2020). As per the benefits which will be drawn from this project, the executive leaders will positively react toward the project budget.
Pros and Cons of the Proposed Improvements
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The pros of this project are that; it will promote a sense of motivation among the employees, which will improve their productivity and delivery of quality care. The change in the aesthetics and ambiance will reduce employee turnover as well. The negative consequences will be, if the project is not implemented properly, it will not provide the desired outcomes.
Capital Budget Preparation
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The renovation budget will be prepared and planned six months before the implementation phase. The renovation plan will be based on the nursing staff’s needs and desires so that it fulfills the demands of the nursing workforce. The renovation budget will be as follows:
| Particulars | Quantity | Cost ($) |
| Lounge couches and chairs | 4 | 30,000 |
| Coffee table | 2 | 20,000 |
| Lounge shelves | 2 | 10,000 |
| Lounge floor renovation | 10-20 per square feet | 40,000 |
| LED | 2 | 200,000 |
| Wall paintings, décor and others | As per the requirement | 200,000 |
| Air Conditioner | 4 | 400,000 |
| Vending machine | 1 | 100,000 |
| Total cost ($) | 1000,000 |
Areas of Uncertainties or Knowledge Gaps
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
It was planned initially to hire a specific staff, who will be responsible to manage the renovated area, but there were uncertainties associated with this decision, as the organization was not sure, if the decision of hiring the new staff will align with the budget plan and budget cost.
Cost Calculation
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The renovation budget will be following the job costing technique, as it determines the cost which are the reliable ones and which will be successful for this project, also it will determine their respective cost. The total renovation cost of the project is $1000,000, and it mainly covers the most reliable required expenses including; lounge floors, air conditioners, vending machines, etc.
Cost Calculation Methods
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
- Preparing the project budget efficiently and monitoring its expenses.
- Focusing on time management, to ensure that the project is going as per the required time frames. Keeping and monitoring the track of the earned value.
- Using the top-down and bottom-up estimation methods for estimating the project cost calculation.
Also, this budget management plan will include the 3-point estimation method to get a realistic estimate of the project calculation.
Budget Management Plan
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The budget will involve the collaboration of the finance and accounting team to administer the cost computation along with the support of qualified team members, who will be experts in the cost management domain. These qualified experts will be approached at the time of consultancy to determine the cost control. The organization will be opting for collaboration with the management teams to ensure that all the processes are going as per the budget’s requirement, as it is essential to focus on time management to achieve the desired outcomes. It is essential to perform budget variance analysis on regular basis to ensure that everything is going on track and as per the budget’s requirement.
Underlying Assumption
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The underlying assumption of the project’s plan is that the budget does not cover the cost of uncertainties. A plan for tackling such uncertainties might help the organization attain the desired outcomes of the project.
Effect of Capital Acquisition on the Organization’s Financial Health
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The renovation of the reception and the lounge area will have a significant positive effect on the organization’s staff, and it will benefit them in the long run. This change will increase employee morale and productivity, as the new change in the ambiance helps the staff to deliver quality services to the patients (Mujan et al., 2019). Due to the delivery of quality care services, the organization’s profitability will be increased, as it will attract more patients to visit the hospital which will generate the hospital’s revenue as well. It will take around 2-3 years to recover from the cost of the renovation. The project’s depreciation aspects will be from the project’s equipment, supplies, and machinery which will be used over time. The Return on Investment (ROI ), is also expected to increase after the completion of the project.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
\This project will reduce the staff turnover rate, as the staff members will feel motivated and productive while working in a comfortable ambiance, and they will be delivering quality care services to the patients in return as well. Motivated employees tend to stay loyal to their organization (Petrova et al., 2020). Delivery of quality care services tends to attract patients to the organization and hence results in the organization’s benefits (Manzoor et al., 2019). A motivated employee tends to enhance employee satisfaction and productivity (Mugira, 2022). Motivated employees will help attain the organization’s outcomes through their quality services.
Knowledge Gaps
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The project aims to improve the aesthetics and ambiance of the hospital lounge area by doing a renovation, however, there are a few uncertainties associated with this project, as the organization is expecting that the employees will feel motivated and productive after bringing this new change in the environment of the hospital, but the outcome might be different, as the organization is not assured that the employee’s productivity will be enhanced after the completion of this project.
Conclusion
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
The revenue projects consider the depreciation aspects of machinery, furniture, and other equipment in the lounge
Capital acquisition generally refers to how an organization acquires an asset for the business purpose including; building, expanding, and purchasing a business. The assets in the capital acquisition primarily include inventory, equipment, etc. The aim of acquiring capital is to expand the business, meanwhile focusing on generating overall profits. The capital acquisition is essential for the business to achieve success and growth. This project will reduce the staff turnover rate, as the staff members will feel motivated and productive while working in a comfortable ambiance, and they will be delivering quality care services to the patients in return as well. Motivated employees will help attain the organization’s outcomes through their quality services.
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
References
Emezie, S. (2022). The impact of employee motivation on organizational productivity and efficiency. Www.theseus.fi.
https://www.theseus.fi/handle/10024/786010
Mugira, A. (2022). Leadership perspective employee satisfaction analysis. AKADEMIK: Jurnal Mahasiswa Humanis, 2(3), 127–135.
https://ojs.pseb.or.id/index.php/jmh/article/view/477
Manzoor, F., Wei, L., Hussain, A., Asif, M., & Shah, S. I. A. (2019). Patient satisfaction with health care services; An application of physician’s behavior as a moderator. International Journal of Environmental Research and Public Health, 16(18).
https://doi.org/10.3390/ijerph16183318
NURS FPX 6216 Assessment 4 Preparing and Managing a Capital Budget
Mujan, I., Anđelković, A. S., Munćan, V., Kljajić, M., & Ružić, D. (2019). Influence of indoor environmental quality on human health and productivity – A review. Journal of Cleaner Production, 217, 646–657.
https://doi.org/10.1016/j.jclepro.2019.01.307
Petrova, M., Koval, V., Tepavicharova, M., Zerkal, A., Radchenko, A., & Bondarchuk, N. (2020). The interaction between the human resources motivation and the commitment to the organization. Journal of Security and Sustainability Issues, 897–907.
https://doi.org/10.9770/jssi.2020.9.3(15)
Ramli, A. H. (2019). Work environment, job satisfaction and employee performance in health services. Business and Entrepreneurial Review, 19(1), 29.
https://doi.org/10.25105/ber.v19i1.5343
Taheri, R. H., Miah, Md. S., & Kamaruzzaman, Md. (2020). Impact of Working Environment on Job Satisfaction. European Journal of Business and Management Research, 5(6).
