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Staffing and Budgeting in nursing

Updated on September 22, 2014



It may be defined as a strategy for the acquisition, utilisation, improvement, and preservation of the human resources of an organisation. It is the technique for procurement, development, allocation and utilisation of human resources in an organisation.






  • Ø Recruiting involves attracting candidates to fill the positions in the organisation structure. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.
  • Ø Recruitment can be internal and external. Internal recruitment is by promotion and transfer of the employees who are already appointed. External recruitment is done from former employees, employment exchange, advertisement, campus interviews, etc.



By giving advertisements in newspapers of local, regional, national and international levels and also journal advertisements. Advertisement should arouse the interest of the potential candidates.


In some institutions annual career-day programmes during which recruiting officers from local health agencies inform senior students about employment opportunities in those organisations.


It is the showcase of the opening of a new service or educational programme. If health agency is well organised, and their setting will be attractive to idealistic, service-oriented nurses. Invitation to an open house may be sent to individual nurses, groups of speciality nurses, professional organisations final year student nurses and alumni of schools/ colleges to attend open house for recruitment.


In this method present staff recruits their nurse-acquaintances, i.e, recruiter who wishes to fill position in a particular nursing unit should ask employees in the unit to recruit nurses with whom they have worked comfortably in other settings. After calling for application, recruiter receives application from the applicant. Next step is to screening of applications for short listing through scrutinising applications. Next step is calling for applicant to appear for interview, by fixing the date, time, venue etc.


Selection is the process of choosing from several candidate the one to be employed in particular position. Actually the selection process starts when applications are received and screened in the personnel department. Steps which constitute the employee selection process are the following:

  • Ø Interview by personnel department
  • Ø Pr-employment tests
  • Ø Interview by department head.
  • Ø Decision of administrator to accept or reject.
  • Ø Medical examination.
  • Ø Check for references.
  • Ø Issues of appointment order.


Interviewing is the main method of appraising an applicant’s suitability for a post. The main objectives of interview are:

  • Ø For the employer to obtain all the information about the candidate to decide about his suitability for the post.
  • Ø To give the candidate a complete picture of the job as well as the organisation
  • Ø To demonstrate fairness to all candidates.


Interviewing a job is a time-consuming activity. Interviewing principles include:

  • Ø Create and maintain comfortable environment throughout interview to ensure minimal physical and psychological stress.
  • Ø Conduct interview according to a preplanned outline. It is better more from general to personal issues
  • Ø Explore the applicant’s background and future plans before describing the available position. It is better to follow with description of job.
  • Ø Encourage the applicant to talk freely by asking non-directive, open-ended questions. Encourage questions by applicants.
  • Ø Listen actively and talk sparingly while the applicant describes his/her background and future plan to facilitate self-revelation by applicant.
  • Ø Attend to your own and the applicant’s non-verbal communications.
  • Ø Identify and describe both positive and negative aspects of job in detail and create realistic expectations.
  • Ø Conclude the interview by outlining further signs in selection process.


For certain categories of posts there is a need for testing the professional competence of the candidates, because there are several characteristics which cannot be properly assessed either during interview or investigating back groups.

These tests include tests in general ability, tests in specific ability, tests for achievement, personality tests, intelligence tests, aptitude tests, trade tests.

In making a selection decision, the manager must pay close attention to the candidates present abilities and interest, on the other hand , Placement is the process of choosing , from several positions, to one best suited for a particular candidate, placement decisions are made with an eye to satisfying specific employee goals. In making a placement decisions the manager should consider the applicants long range career plans as well as present abilities.


Orientation is the process of acquainting a new worker with the work environment so that she or he can relate quickly and effectively to new surroundings. The purpose of orientation is to make the new employee feel needed and wanted by co-workers and supervisors and to convince the employee that her or his presence is important to achievement of (health) agency goals.

The preliminary aspect of orientation is indoctrination or induction training. Induction training includes introduction to rules, regulations, policies and procedures that apply to all agency employees. Indoctrination begins with an explanation of the agency’s history, purpose, and structure and is followed by information about conditions of employment, workers identification, working hour’s, holiday time, vacation allowance, sick time, position classification, performance standards, performance evaluation, labor contracts, grievance procedure, pay days, park, eating facilities, health services, laundry services, and educational opportunities.


The word “promote” is derived from a Latin expression defines “promovere” meaning “to move forward”. The term “promotion” refers to a change for better prospects from one job to another job in deemed by the employee. The factors which are considered by employees as implying promotion are:-

  • Ø An increase in salary
  • Ø An increase in job prestige.
  • Ø An upward movement in the hierarchy of jobs.
  • Ø Additional supervisory responsibility
  • Ø A better future

The unions generally favour promotions on the basis of seniority and management usually favour promotion on the basis of merits. Promotion is made on the basis of outstanding service in terms of quality as well as quantity, above average achievements in patient care /public relations, experience, seniority, initiative, recognition by employee as a leader, particular knowledge and experience necessary for a vacancy and record of loyalty and co- operation.


“Budget” is a concrete precise picture of the total operation of an enterprise in monetary terms -H M DONOVAN

“Budget” is an operational plan, for a definite period usually a year. Expressed in financial terms and based on expected income and expenditure.


  1. Budget supplies the mechanism for translating fiscal objective into projected monthly spending pattern.
  2. Budget enhances fiscal planning and decision-making.
  3. Budget clearly recognizes controllable and uncontrollable cost areas.
  4. Budget offers a useful format for communicating fiscal objectives.
    1. Budget allows feedback of utilisation of budget.
  5. Budget helps to identify problem areas and facilitates effective solution.
    1. Budget provides means for measuring and recording financial success with the objectives of the organisations.


  1. It should be flexible.
  2. It should be a synthesis of past, present, and future.
  3. It should be product of joint venture + co-operation of executives/department heads at different levels of management.
  4. It should be in the form of statistical standard laid down in specific numerical terms.
  5. It should have the support of top management throughout the period of its planning and supplementation.


  1. It should provide sound financial management by focusing on requirement of the organisation.
  2. Budget should focus on objectives and policies of the organisation.
  3. Budget should ensure the most effective use of scarce financial and non-financial resources.
  4. Budget requires that a programme activity planned in advance.
  5. Budgetary process requires consistent delegation for which fixed duties and responsibilities are required to be allocated to managers at different level for training and executing budget.
  6. Budgeting should include co-ordinating efforts various departments establishing a frame of reference for managerial decisions, and providing a criterion for evaluating managerial performance.
  7. Setting budget target requires an adequate checks and balance against the adoption of too high or too low estimate.
  8. Budget period must be appropriate to the nature business or service and to the type of budget.
  9. Budget is prepared under the direction and supervision of the administrator or financial officer.
  10. Budget are to be prepared and interpreted consistently throughout the organisation in the communication of planning process.
  11. Budget necessitates a review of the performance of the previous year and an evaluation of its adequacy both in quantity and quality.
  12. While developing a budget, the provision should be made for its flexibility.


® Review the goals

® Review the existing & proposed programs

® Manpower, capital & operating expenses are computed

® Alternative methods are identified

® Comparisons to determine the most cost effective alternative

® A budget request is developed


The administration of college requires budget, and how it is allotted and managed depends upon the controlling authority. The items also vary with institution.

The controlling authority normally takes full responsibility for administering the budget. The items which have to be budgeted include:

  1. Salaries of the professional, clerical, house keeping, domestic, security, drivers and other staffs..
  2. New equipment, furniture, AV aids etc
  3. Repair of equipment.
  4. Linen and furnishing.
  5. Office supplies including stationary and postage.
  6. Library books, magazines, news paper and journals.
  7. Contingency fund for educational tours or professional activities etc.


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