PLANNING

• Planning


  The process of thinking about the activities required to achieve a desired goal
• Planning is the first and foremost activity to achieve desired results
• Planning


  • Involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills
• Steps in the planning process

  1. Orient the planning process to a singular direction or purpose (vision/mission)

  2. Assess the organization's current situation or status

  3. Set goals

  4. Identify and develop strategies to achieve these goals

  5. Establish the objectives that will support the progress towards these goals

  6. Define the responsibilities and timelines for each objective

  7. Write, communicate, and discuss the plan to individuals and units involved

  8. Monitor progress toward meeting goals and objectives
• The widely used theory on general management was developed by Henri Fayol, a French industrialist
• 14 Principles of Management

  • Division of Work
  • Authority and responsibility
  • Span of Control
  • Unity of Command
  • Unity of Direction
  • Subordination of Individual Interest to General Interest
  • Remuneration
  • Centralization
  • Scalar chain (line of authority)
  • Order
  • Equity
  • Stability of tenure
  • Initiative
  • Esprit de Corps
• Types of planning in pharmacy organizations

  • Resource Planning
  • Organization planning
  • Contingency planning
• Resource Planning


  To guarantee the availability of resources needed to carry out strategy to achieve the organization's goals
• Organization planning


  To ascertain the coordination & orderly arrangement to face future challenges
• Contingency planning


  Provides a fallback in case the original plan fails, or unforeseen events occur (strike, calamities, changes in management)
• Barriers to effective planning

  • Failure to commit enough time & effort to the process of planning
  • Interpersonal issues involving individuals or groups (power struggle, internal politics, resistance to change)
  • Inadequate planning skills
  • Failure to plan for the long-term
  • Constantly changing circumstances or environment
  • Failure to properly implement the plan due to the lack of time and/or resources
  • Inability to monitor the post-planning progress
  • Lack of support from management
• Limitations to planning

  • Planning involves educated and experienced guesswork; decisions are made based on evidence available from past experience; however, risk is still involved
  • Plans are predictions are only as good as the data and info given. Poor documentation and reporting will result in poor strategy
  • Planning is nothing without action. Organizations that do not implement their plans will not succeed. Plans should not also be static or unyielding
  • Planning process should consider the changing environment & circumstance, it should be adaptable
• Why managers fail in planning

  • Lack of commitment in planning
  • Interchanging planning studies with actual plans
  • Failure to develop and implement strategy
  • Lack of meaningful and/or realistic objectives and goals
  • Underestimating the importance of planning premises
  • Inability to see the scope of plans
  • Failure to see planning as a rational process
  • Too much reliance on experience
  • Non-use of the principle of limiting factor
  • Insufficient support from top management
  • Absence of clear delegation of authority and responsibility
  • Lack of adequate control techniques and information
• Principles of decision-making


  • Being patient, thinking long & hard before making decision, especially when on unfamiliar ground
  • Weighing the "pros and cons"
  • Anticipating the results and problems that could arise from the decision
  • Creating a master plan to guide one's decision
  • Balancing the haste of making an urgent decision, with a thorough deliberation
• Steps in the decision-making process

  1. Set objectives

  2. Identify constraints

  3. Identify alternatives

  4. Gather appropriate information

  5. Evaluate the alternatives

  6. Choose the most acceptable alternative
• Organizing


  The process of classifying and categorizing personnel, establishing relationships among them, and defining their authority and responsibilities
• Principles of organizational structure


  • Horizontal differentiation
  • Vertical differentiation
  • Spatial differentiation
  • Formalization
  • Centralization
  • Division of labor
  • Parity of authority and responsibility
  • Unity of command
  • Span of control
  • Departmentalization
• Horizontal differentiation


  Describes the differences among workers or units in an organization, including their education, type of training, and the tasks assigned to them
• Vertical differentiation


  Focuses on the differences in hierarchical positions, involving "the chain of command" in an organization which is the number of levels between the top management or owner of the organization and the rest of the staff
• Spatial differentiation


  Involves location, specifically the sites of an organization's units, whether they are in one place or spread across several areas
• Formalization


  This organization emphasizes the maintenance of the structure, involving the rules (degree of organizational control of employee behavior)
• Centralization


  Refers to the concentration of decision-making power at a single point in the organization, where the highest levels of management usually make most of the policy decisions
• Division of labor


  Can be observed in pharmacies where pharmacists are assigned with specific functions such as dispensing or caring for patients, even within clinical functions, pharmacists can specialize in a particular field
• Parity of authority and responsibility


  Responsibility for decisions cannot be passed on while the authority to make them can be shared and/or given to others
• Unity of command


  Refers to the idea that an individual employee must report to only one supervisor or manager
• Span of control


  Refers to the number of employees a manager can effectively control
• Departmentalization


  Refers to the categorization of individuals according to the specific tasks they must perform
• Organizing is important in the overall management of an organization, as it is the primary mechanism used by managers to implement the plans
• Organizing provides the structure for how material and human resources are utilized in the organization, and helps managers maximize the productivity of the organization
• Methods of organizing

  1. Defining the goals of pharmacy

  2. Identify and define each task to be completed

  3. Grouping related tasks into specific job to be assigned to employee or its team

  4. Grouping employees into job units that are related in some manner (skills needed, a facet of pharmacy operations)

  5. Assigning manager to each unit, provide with necessary authority and responsibility to ensure completion of tasks within the unit

  6. Arrange units relative to one another both horizontally and vertically and establish who reports to whom

  7. Establish a control system for progress monitoring
• Organizing


  The process of determining how material and human resources will be utilized to implement plans
• Organizing


  • Provides the structure for how material and human resources are utilized in the organization
  • Helps managers maximize the productivity of the organization
• Methods of Organizing

  1. Defining the goals of pharmacy

  2. Identify and define each task to be completed

  3. Grouping related tasks into specific jobs to be assigned to employees or teams

  4. Grouping employees into job units that are related in some manner

  5. Assigning managers to each unit, providing them with necessary authority and responsibility

  6. Arranging units relative to one another both horizontally and vertically and establishing reporting structures

  7. Establishing a control system for progress monitoring and achievement
• Organizational Chart


  Shows the composition of an entire business, for each department, or for each section of a business. Drawn in a pyramid shape, with only a few at the top and an increasing number of employees at the base.

  
• Line Organization


  A straight and direct line of responsibility and control from the top management, usually found in smaller pharmacies. Coordination among the departments is established and maintained by a supervisory executive at the next higher level.
• Features of Line Organization


  • It is the most simplest form of organization
  • Line of authority flows from top to bottom
  • Specialized and supportive services do not take place
  • Unified control by the line officers can be maintained
  • Helps in bringing efficiency in communication and stability to the organization
• Line-Staff Organization


  Combines both line and functional/staff positions, placing a greater emphasis on expertise and support
• Features of Line-Staff Organization


  • Line Positions - Employees that fulfill line positions make direct contributions to the mission of the company and handle responsibilities to help the business run smoothly
  • Staff Positions - Staff employees assist the line professionals in achieving organizational goals and support their line counterparts with handling their occupational responsibilities
• Informal Organization Structure

  Organization by time - Managers set time priorities by considering urgency and importance of tasks

  Organization by number - The number of staff that report to a manager or supervisor

  Organization by function - Businesses are organized according to their roles and skills into smaller groups or departments
• Organization by Function

  Professional functions - Prescription dispensing, patient consultation, patient drug record system, home health aids, and professional relations

  Merchandising functions - Purchasing, inventory control, display advertising and personal selling, except prescription and professional goods

  Financial functions - General financing, budgeting, accounting, operational analysis and control

  Personnel functions - Recruiting, selecting, terminating, training, employee performance evaluation, wage determination, and other employee relations including fringe benefits