Samples Finance Fiscal Health

Fiscal Health

423 words 2 page(s)

Research infers that there is a positive relationship between excellent leadership and fiscal performance of healthcare organizations because leadership facilitates long-term viability and short-term sustainability. Hospitals and the entire healthcare system are today affected by increased competition, high costs, safety issues, and quality imperatives that require strategic leadership for success. Such imperatives have necessitated the need for leadership to uses a systems theory approach to attain success. Systems theory views organizations as an entity or system with integrated parts (Chikere & Nwoka, 2015). Since the organization is a single entity, coordination is imperative to attain efficiency and effectiveness. In essence, the attainment of fiscal health depends on the effectiveness of the hospital or organization. Healthcare leaders using the systems approach record higher profitability and improved corporate growth.

The activities that leaders engage in are responsible for ensuring fiscal health. For instance, strong leaders build and sustain teams that are strong and accountable. Strong leaders understand that success lies on how their team is functioning regarding working together toward the organization’s vision. Strong leaders motivate, energize, develop staff competencies, empower staff to make decisions, and hold them accountable. In doing this, the organization operates efficiently, as a system, resulting in operational and financial success. The financial success is attributed to the fact that organizational activities have a direct financial implication (Kaufman & Goldstein, 2008).

Need A Unique Essay on "Fiscal Health"? Use Promo "custom20" And Get 20% Off!

Order Now

For example, developing staff through training initiatives enable them to take on more responsibilities and motivates them leading to job satisfaction and commitment. Ultimately, the organization will experience low turnover which directly affects financial performance. Additionally, fiscal health can be achieved by building credibility achieved through holding the team accountable. Credibility can be both subjective and objective credibility, that is, expertise and trustworthiness (Kaufman & Goldstein, 2008). Credibility and accountability drive efficiency, forester honesty, and encourage prudent use of organizational resources whether human capabilities or physical resources. Consequently, the sum of these issues leads to financial health.

Strong leadership engenders transparency and effective communication on issues that impact financial health. Strong leaders realize that the sum of everyday activities is linked to short-term and long-term success hence they engage in activities that contribute to financial health. Strong leaders generate impressive financial results through collaborative partnerships, gearing efforts toward the vision, and addressing uncertainty.

  • Chikere, C. & Nwoka, J. (2015 September). The systems theory of management in modern day organizations- A study of Aldgate Congress Resort Limited Port Harcourt. International Journal of Scientific and Research Publication, 5(9), 1-7.
  • Kaufman, K. & Goldstein, L. (2008 November). Leadership and successful financial performance in health. Bulletin of the National Center for Healthcare Leadership.