THE IMPORTANCE OF BUDGETS IN PLANNING, CONTROLLING AND EVALUATING PERFORMANCE IN KING FAISAL SPECIALIST HOSPITAL AND RESEARCH CENTRE

Abstract

This study focused on examining the relationships between budgeting and planning, controlling and performance evaluation of hospital in Saudi Arabia. The King Faisal Specialist Hospital and Research Centre was used as a case study and a total of 102 employees were purposively sampled. The study used the online survey method to gather primary data from respondents using a structured questionnaire. Descriptive statistics and the Spearman’s correlation analysis were carried out as the main techniques for analysis. The study found that budgeting is positively related to planning in the study hospital. This relationship was found to be strong as well. Also, the study found that budgeting directly affects controlling in hospitals but not as much as it affects planning. The study also revealed that, budgeting was strongly linked to how performance evaluation was carried out in hospitals. The study concluded that, hospital management perceive budgeting, planning, control and performance evaluation as a chain of activities that are related. The budgeting procedure of hospitals should be effective in terms of timing, participation and methodology. This would ensure that planning, control and performance evaluation are conducted with detailed and reliable information.