The nurse manager meets with upper management to share strategic goals agreed upon by her staff for their individual nursing unit as the first step to begin budget negotiations
One strategic goal is that staff will have access to technology that will allow them to incorporate point-of-care devices for all RNs.The second goal is to improve RNs' ability to recognize critical indicators that a patient's health status is deteriorating through advanced health assessment skills. During the meeting the manager discusses the strategy options and selecting the one that works for the unit. Which type of budget development is used?
a. Iterative
b. Top-down
c. Participatory
d. Zero-based
ANS: C
Correct: In the participatory approach, the people responsible for achieving the budget goals are included in goal setting.
Incorrect:
a. The iterative approach is a combination of the top-down and the participatory approach with upper management defining strategic goals and then unit leaders developing their operating budgets to incorporate their individual goals in conjunction with the organization's strategic goals.
b. In top-down approach, upper management sets budget goals and imposes those goals on the rest of the organization.
d. Zero-based budgeting is a type of budget rather than process in which a budget is built from the assumption of no volume and no resources allocated.
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