Exercise: What to Do When Budget Cutting Threatens Training? Any department manager who has been through a financial belt-tightening exercise has undoubtedly collided with one of the fundamental contradictions in organizational life, and especially in healthcare organizations: On the one hand, education receives a considerable amount of verbal support from top management; on the other hand, 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.

Answer the following questions:

1. You are to explain why you believe this fundamental contradiction exists, and describe what arguments you might use in defense of your education budget.

2. In defense of your education budget, which the budget director has said must be reduced by half or more, you are to:

a. Develop an argument for keeping as much of your education budget as possible.

b. Describe how you would go about attempting to measure the results of education.