Any department manager who has been through a financial belt-tightening exercise has undoubtedly collided with one of the fundamental contradictions to be encountered in organizational life, and especially in health care organizations. That contradiction is, on the one hand, education and training receive a considerable amount of verbal support from top management people who speak of its importance and their belief in education. But, as department managers frequently discover, after the first budgeting pass, when it becomes evident that trimming is needed to bring projected revenue and expenses into line, education is one of the first line items to be reduced or eliminated.

This assignment asks that you reflect on this paradox and respond to two questions:

First, explain why you believe the fundamental contradiction described above exists, and describe what arguments you might use in defense of your education budget.

Next, by many who tend to view all expenditures in terms of cost versus benefits, education comes up short by very nearly defying cost-benefit analysis. In this case, the budget director demands that your training and education line item must be reduced by half or more. You disagree. Prepare for a discussion with the budget direct and (a) Develop an argument for keeping as much of your education budget as possible; and (b) describe how you would measure the results of education.