IPM

• Organizing

  1. Classifying and categorizing personnel

  2. Establishing relationships among them

  3. Defining their authority and responsibilities

  4. Establishing the utility of all resources in the management system
• Organizing is primarily focused on determining the functions of individual employees in an organization and how their individual efforts should be integrated to attain organizational objectives collectively
• Organizing process

  1. Reflect on the pharmacy's plans and objectives

  2. Delegate major tasks to individuals and groups or units of employees

  3. Assign the previously established tasks to an individual or a group of individuals

  4. Evaluate the results of implementing the organizing strategy
• Planning


  • Mapping the process and procedures of accomplishing the organization's objectives
• Organizing


  • Determining how the pharmacy's time and resources will be used to execute the plans
• The pharmacy manager must properly set up the plans of the organization to ensure the efficiency of the organizing process
• Examples of tasks: serving customers and compounding prescriptions. Then, these tasks must be subdivided into subtasks. For instance, the manager might decide that serving customers includes the subtasks of dispensing medicine and patient counseling
• The fourth organizing step is assigning the previously established tasks to an individual or a group of individuals. It will also detail the relationship between these units
• The fifth step involves the evaluation of the results of implementing the organizing strategy. The pharmacy manager receives feedback on how effective the strategy has been
• Fundamentals of organizing

  • The structure must reflect objectives and plans which act as the base of the organization's activities
  • The structure must reflect authority given to top and middle management
  • The structure should reflect the external environment to allow members of the group to contribute ideas and solutions and help people achieve objectives efficiently and effectively
  • The organization must consider employees' and customers' limitations, customs, and traditions
• Importance of organizing

  • It is the primary mechanism that managers use to implement the plans
  • It provides the structure for how material and human resources are utilized in the organization
  • A thorough effort in organizing can help managers maximize the productivity of the organization by bringing to light idle resources and duplicated tasks
• Method of organizing the pharmacy

  1. Defining the goals of the pharmacy

  2. Identifying and defining each task to be completed

  3. Grouping related tasks into a specific job that can be assigned to an employee or a team of employees

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

  5. Assigning a manager to each unit, providing him or her with the necessary authority and responsibility to ensure the completion of the tasks within the unit

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

  7. Establishing a control system for monitoring the progress and achievements of each unit
• Organization


  The process of structuring activities, procedures, and people within the business. It is a formal and intentional design of structures, roles, and positions
• All employees need to know their responsibilities, their supervisors (who they report to), and their subordinates (who reports to them). An ambiguous work environment will result in unperformed or underperformed tasks and breed frustration among employees
• Organizational structure

  • Division of executives, departments, and group of workers in terms of their activities or tasks
  • If the structure is logically designed, functionally correct, and competently staffed, organizational goals will be efficiently attained
  • Every company should have a chart of its organizational structure in order to visualize the dynamics of the functions of different departments and how they relate to each other
• Three major aspects that organizational theorists suggest the structure of an organization must encompass

  • Differentiation
  • Formalization
  • Centralization
• Horizontal differentiation


  Differences among workers or units in an organization, such as their education, type of training, and the tasks assigned to them
• Vertical differentiation


  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


  Emphasis on the maintenance of the structure, involving rules, procedural specifications, technical competence, and impersonality
• Centralization


  Concentration of decision-making power at a single point in the organization
• Division of labor


  Assigning specific functions to employees, such as pharmacists being assigned with dispensing or caring for patients
• 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


  An individual employee must report to only one supervisor or manager
• Span of control

  The number of employees a manager can effectively control
• Departmentalization


  Categorization of individuals according to the specific tasks they must perform
• Organizational chart


  A diagram or chart that shows the important aspects of the organization, including the composition, departments/tasks, divisions, and interrelationships
• Purposes of organizational chart


  • To assist in viewing the firm's whole structure
  • To help management in dividing the different duties or functions in the business
  • To show the grouping of departments in order to easily direct and control activities
  • To sort the responsibilities of the positions so there will be no wasted time or effort
• Formalizing the organizational structure

  1. Identify a relatively standard organizational design that best fits the pharmacy's needs

  2. Construct the design to coincide with the preferences of the owner, the hospital's administrator, or board of trustees
• Formal organizational structures

  Pre-established organizational models that are available to management, serving as a basis for customizing a structure to meet the preferences of the owner and the goals of the pharmacy
• Line organization

  Straight and direct chain of command from top to bottom
• Formal organizational structure

  A two-step process:

  1. Management identifies a standard organizational design that best fits the pharmacy's needs

  2. The design is constructed to coincide with the preferences of the owner, the hospital's administrator, or board of trustees
• Types of formal organizational structures

  • Line organization
  • Line-and-staff organization
• Line organization

  • Straight and direct line of responsibility and control from the top management
  • All personnel are involved in some facet of the preparation and sale of the pharmacy's prescription and non-prescription merchandise
  • Managers have the right to demand compliance from their subordinates
  • Usually found in smaller pharmacies with 3-8 employees
  • As the pharmacy grows, it does not allow for assistance from specialists
• Line-and-staff organization


  • Employs the assistance of specialists
  • Most common for larger successful pharmacies
  • Still uses the line organizational structure but is assisted by technical specialists
  • Problem is the violation of the principle of unity of command
• Informal organizational structure


  Geared toward strengthening the cohesiveness within the pharmacy and increasing the chances of goal achievement
• Types of informal organizational structures

  • Organization by time
  • Organization by number
  • Organization by function
• Severe action should only be taken against the informal organization structure when the organizational goals no longer foster productivity
• Results of good organization

  • Well-established responsibilities and prevention of "buck passing"
  • Easier communication
  • Elimination of jurisdictional disputes
  • Development of executive ability
  • Effective measurement of performance
  • Equitable distribution of work
  • Expansion and contraction permitted
  • Identification of "dead-end" jobs
  • Closer cooperation and higher morale
  • Clear delineation of promotion avenues
  • Prevention of work duplication
  • Adequate control of growth
• Delegation

  The process of assigning responsibility and authority to lower-level employees