CHAPTER 1

CHAPTER 1 THE MANAGEMENT PROCESS

UNIT 1: MANAGEMENT ORIENTATIONCHAPTER 1

THE MANAGEMENT PROCESS

M

ANAGEMENT is defined as the art and science of planning, organizing, directing, and controlling human efforts and resources for the general good within the organizational framework and economic environment of the firm.

Management is a process which brings together resources and unites them in such a way that, collectively, they achieve goals and objectives in the most efficient manner possible. - Tootelian and Gaedeke (1993)

Management of a pharmacy requires focus, an organized effort to bring together all the resources available and uniting collectively so as to achieve the goals of the pharmacy in the most efficient manner possible.

Why take management in the field of Pharmacy?

1. The use of strategic planning both in hospital and community settings resulted to :

a. Higher sales and profitability

b. Significantly, I can offer more clinical or valued-added services and

c. Better administrative, distributive and clinical performance especially in hospitals

2. Interdependence among departments/ groups resulted to positive impact on the commitment of pharmacists.

3. Studies showed that the pharmacists need more training during their professional education in order to achieve excellence in clinical service.

4. A good pharmacy manager will benefit from a heightened sensitivity towards the need of all patients and efforts to carry product that appeal to a specific population.

5. In foreign countries, a good pharmacist manager deals with issues regarding third-party payers (e.g. private insurers, government-sponsored programs) and so the pharmacist must be able to identify which payer affords to provide quality patient care while maintaining an appropriate level of profit.

6. The management-minded pharmacist looks for other opportunities to bring an additional revenues and decrease expenses, effectively purchasing and maintaining proper level of inventory and having appropriate amount and type of personnel needed to do the job.

The different styles of management are as follows:

1. The Captain of Industry Style - this is represented by the strong individualistic person who amassed a fortune through drive, hard work, ingenuity, and good luck.2. The Human- Relations Style a management style that is made up of two major events namely: growth in size; and strength of the unions.3. The Hard- Nose Style - it is a style equipped with the techniques of scientific management, large corporations were in a position to demand high standard of work performance, thus lowering the unit of production cost.4. The Management- by- Pressure Style - this style originated under the economic conditions of World War II characterized by: increasing demand; prices and costs.5. The Management- by- Objectives Style - it is a better method of management which was based on the analysis of the defects of the other method

MBO can be described as follows:

1. A process whereby the superior and subordinate managers of an organization jointly identify its common goals;

2. Define each individuals major area of responsibility in terms of results expected of him;

3. Used these measures as guides for operating the unit and assessing the contribution of each of its members.

The Major premises of MBO are as follows:

1. Business management takes place within individuals firms, which collectively form a major and integral part of the economic system.

2. MBO presumes that the first step in management is to identify the goals of the organization which are consistent with the goals of society.3. Once organizational goals have been identified, orderly procedures should be instituted for distributing responsibility among individuals in such a way that their combined efforts are directed toward achieving those goals.4. MBO assumes the managerial behaviour should be defined in terms of results rather than in terms of overall goals for the entire organization.

5. It also presumes that while participation is highly desirable in goal- setting and decision- making, its principal merit lies in its social and political value rather than its effects on productivity, though even have it usually has a favourable impact.

6. It regards the successful manager as a manager of defined situations, which fall within the overall purpose and scope of the firm or organization.

The essence of management is decision-making.The different principles of decision- making are:

1. One needs to give patience, time and thought to decision- making, especially when one is on unfamiliar ground.

2. Weighing the gain versus risk principle.

3. Anticipation in terms of results and problem arising from the decision.

4. Decisions are best made when there is a master plan to guide the manager.

5. Balance the urgency of the decision against the deliberation.

Factors of decision- making process are:

1. Identifying and defining the problem.

2. Analyzing it.

3. Developing alternate solutions.

4. Deciding the best solution.

5. Converting the solution into effective action.

THE MANAGEMENT PROCESS1. PLANNING

It includes assessment of internal resources; establishes goals; develops general policies and procedures and develops business strategies.

The most critical element of management. Without a business plan, the pharmacys operation will have no purpose and no direction, therefore no achievement.

Difficult, because it focuses on unknown future.

Requires assumptions that may or may not come true. Flexible, allows changes as conditions warrants, but part of the objectives it to influence conditions and turn it to the pharmacys advantage.

Factors to consider are:

An introspective look at the pharmacys current strength and weaknesses.

An evaluation of the environment within which the pharmacy operates, the strength and weaknesses of its competitors.

Formulations of objectives (long and short term)

Long term more than 5 years

Short term 1 to 3 years (The achievement of short-term objectives helps the pharmacy move closer to its long-term goals.) It requires development of strategies using business functions and clinical activities to achieve the established goals.

Types of Plan

Strategic Plan

Defines broad goals and their implementation over the long term.

Normally comes from the organizations top management (5 years and beyond) Operational Plan

Supports strategic plan

It outlines actions to be performed by each functional area.

Units Plan

Supports both strategic and operational plan

May include action statements for specific events

e.g. facilities expansion, reorganization, new product development.

Activities of planning

Developing objectives

Establish the results to be accomplished.

Forecasting

Estimate and practice future conditions and events.

Programming

Establish the sequence and priority of action step to be followed in achieving objectives.

Scheduling

Establish a time sequence for program step.

Budgeting

Allocate resources to achieve an objective within specified period of time.

Developing policies

Establish standing decision that applies to concern to the enterprise as a whole, in achieving its objectives.

Establishing procedures

Standardize the work that must be done uniformly if the objectives are to be achieved.

Steps in Planning

1. Know the objective.

2. Breakdown the work to be done into component activities.

3. Group the activities into practical units.4. For each activity or group of activities to be performed, define clearly the duties to be carried out and provide the physical means and environment required.

5. Assigned qualified personnel.

6. Delegate the required authority to the assigned personnel.

2. ORGANIZING

It involves identifying tasks to perform; arrange tasks on logical order; combine task into appropriate groups; designate employees into groups; provide authority and responsibility; and lastly, define methods for evaluation accountability.

Organizing is defined as a process of identifying all the tasks to be performed within the pharmacy and then grouping them in logical way.

The different areas are:

Financial

Human

Material resources

Common mistake in smaller pharmacies is for the manager to assume that, all employees understand their individual tasks.

Related terms include:

Delegating - the work of a manager is to entrust others with responsibility and authority and to create accountability for results.

Authority the sum of the rights and power assigned to a position.

Accountability the obligation to perform responsibility and exercise authority in conformance with understood and accepted performance standards.

3. STAFFING

It determines position to be filled; prepare job description; identify sources of potential applicants, search for applicants, interview applicants, select applicants, orient new employee to job, train new employee, evaluate new employees performance.

Staffing involves determining the human resource needs of the pharmacy, identifying sources of possible employees, screening applicants and selecting the ones most qualified.

It is highly qualitative process. As such, the manager must have both technical knowledge of the jobs to be performed as well as the feel for the human element of how people will fit in their work environments.

4. DIRECTING

A process which sets personnel goals; establishes work standards; develops leadership style; motivate personnel, trains and retrains personnel; evaluate personnel; discipline and dismiss personnel as necessary, promote personnel.

Directing involves keeping personnel and other resources focused on the goals of the pharmacy and ensuring that they are used in a manner consistent with the policies established by the owner. While planning, organizing, and staffing are undertaken periodically, directing goes continuously.

It is a process of finding different ways to keep personnel productivity and motivated to achieve the goals of the pharmacy.

It is challenging task that often separates the highly competent from the less skilled managers.

5. CONTROLLING

Controlling is the most overlooked management process since, it is commonly assumed that the process is sufficient to ensure that the pharmacy is operating effectively and efficiently. It involves periodic assessments of the status of the pharmacy.

It also establishes points for periodic monitoring of pharmacy; measure pharmacy performance, examine strategies and recommend changes as appropriate, develop annual performance measurement, and evaluate annual performance of pharmacy.

The following are ways in which control can be maintained:A. Quantitative

1. Financial statements to determine if revenues and expenses are within budgeted limits

2. Inventory

B. Qualitative

1. Evaluating levels of patient satisfaction

2. Employee performance

The most important consideration in CONTROLLING is monitor the pharmacys progress as it moves through the fiscal year.

When properly used, CONTROLLING is the managers fail- safe mechanism. It identifies problems and opportunities in their early stages so as to provide time to take appropriate actions. In this way, many problems can be eliminated or at least alleviated and opportunities can be taken advantage of while it still exists.

The Ms of Management

1. Manpower (Men) conveys a strong and purposeful economic activity by individuals who form the so called staff.

2. Money

3. Methods

4. Materials

5. Machines

6. Markets clients, target- community to saturate for profitability. This is where the competence of management meets its severest test.

7. Motivation the driving force which moves individuals and groups toward their objectives.

Based on the management levels, here are the types of managers:

1. First-level managers are the lowest level of management. These are the production supervisors, clerical supervisors, school supervisors, or hospital supervisors. They supervise workers or employees.

2. Middle managers lead the activities of the supervisors, and in some cases, those of the workers. These are the branch managers, projects managers, farm managers, or finance managers.

3. Top managers are the top executives of the organization. They are involved in the operations of the whole organization. These are the presidents, chief executive officers, or senior vice presidents.

Managers Roles

In performing the various functions of management, a manager assumes various roles. These are inherent behaviours for any manager of any kind of organization. Roles are patterns of behaviour that are expected of an individual in doing his functions. There are ten basic roles displayed by managers. These are:

Leadership

Entrepreneurship role Figurehead role Liaison role Monitor role Spokesperson role Disseminator role Resource allocator role Disturbance handler role Negotiator role TYPES OF MANAGER:

Management as applied in businesses and organizations it is defined as:

a. The function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively.

b. The organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives

This corridor is for managers who are CONTENT-ORIENTED; interested in what to do and why; mostly planners and thinkers

Manager by kayod

(Hard work and dedication; introvert and formal)

Manager by libro (by the books and established rules; systematic and analytical)

This corridor is for managers who are PROCESS-ORIENTED; interested in how to do the job; mostly implementers and doers

Manager by ugnayan (Thoroughly situational; integrative; a recorder; ideal Pinoy manager

Manager by lusot (Avoids much work; extrovert and informal)

Manager by oido (by ear, based on practical experience; pragmatic)

Management is the force that runs an enterprise and responsible for its success and failure. It is the performance of conceiving and achieving desired results consisting of utilizing human talents and resources.

MANAGEMENT DEALS WITH PEOPLE, ESTABLISHING AND ACHIEVING OBJECTIVES. IT IS USED IN ALMOST EVERY HUMAN ACTIVITY.

PLANNING is the formulation of objectives, programs, policies, procedures, rules and regulations in order to achieve the goals of the business.

It is related to decision-making as it selects the best-course of action to follow. It also involves forecasting or making decisions in advance.

Planning is used to accomplish the present objectives and its relationship in the future.

ORGANIZING grouping together of people, establishing relationship among them, and defining the authority and responsibility that the personnel have.

3 steps:

identification or grouping of the work done

delegation of authority and responsibility

establishment of relationships among them

STAFFING involves filling and keeping filled the positions provided in the organization structure Steps:

Recruitment

Selection

Compensation

Training

CONTROLLING is the process of measuring and correcting the activities of subordinates and the company itself to assure conformity to plans.

WORKAHOLIC

RECONCILER

CAREFREE

THEORETICAL

PRAGMATIC

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