Rivington Hospital Laundry Department Essay Example | Topics and Well Written Essays - 1500 words

Rivington Hospital Laundry Department - Essay Example The existing budget is more than enough to demoralize her. This budget may cause some serious changes in the apparent behaviour of the laundry supervisor as she is not happy and satisfied with the way she has been held responsible for every cost of the laundry department. Different kinds of behaviours can be displayed by the laundry supervisor, the details of some of them are provided below: Quality Compromise The biggest change in the behaviour of the laundry supervisor would be shown in terms of the quality that she provides. After this performance report, her aim and objective would be to cut the cost and meet the targets specified in the budgets, and in doing so, if the quality of laundry service is compromised, she would not focus on it too much. After all, the administrators are more concerned with meeting the budgets, in this way the overall quality of the department may likely be hampered by such move of the administrators. Restricting the Activity Level Since the major cause of adverse variances in the existing budget is the increase in the activity level due to which more laundry services were provided and as a result the level of costs also increased in every manner, including the excessive cost of hiring an additional worker, therefore, the laundry supervisor would try to restrict the activity level to the budget level and may not provide the laundry services to the additional activity level so that the budgeted activity level should not be crossed. In this way, the excessive cost can be reduced which occurred as a result on increasing the actual activity level. This move would surely decrease the overall activity level of the hospital but result in meeting the budgeted costs. Falsification and Misrepresentation The laundry supervisor may also use some negative tactics in order to provide a better picture to the administration by reporting the falsified and misrepresented figures of the activities of the laundry department so that budgets can be ful filled accordingly. This step would cause the likelihood of frauds in the hospital. On a concluding note, if the administration is quite keen in getting the budgets fulfilled by the laundry department, it would have to include the laundry supervisor in budget setting activity so that a unanimous budget can be established which would surely be challenging but at the same time achievable to the laundry supervisor. b) Criterion for Variance Investigation The investigation of variance is undoubtedly an important objective of the organization such that the organization is more interested to find out the root cause of such variances. The variances may be either favorable or adverse in nature. The organization should focus on investigating both types of variances because generally the favorable variances are considered as good and they are not investigated but they have serious negative implications behind them. Managers normally try variances to be more favorable because in this way their performance would be marked high and they would be appraised on a better note. But on the other side of the picture, the favorable variances are pulled out deliberately by those managers such as hiring the low-skilled workers or even unskilled workers and purchasing the poor quality raw material etc. In this way, the favorable variances leave negative impacts and harm the overall organizational goals. The overall criteria to examine the variances should be based on the nature and