Budgeting and the management of role conflict in hospitals

Economic, political and social pressures have created an environment where it is considered critical for professionals performing health care services to extend their role to encompass the financial management of hospital resources. Prior research has argued that this dual role can potentially have adverse organizational consequences, through the creation of role conflict. Professionals tend to have a high commitment to professional values but a low commitment to managerial values and, thus, directly involving them in financial controls, such as budgeting, is likely to lead to role conflict. It is argued that role conflict is not inevitable in this circumstance. It extends prior research by testing the proposition that individuals with a high professional orientation will not necessarily experience role conflict when involved in budgeting, provided they are committed to the managerial goal set. An empirical study, based on data collected from health care professionals in a large Australian public teaching hospital, was undertaken to test this proposition. The results support that position.