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• Benefits of planning


  • SOURCE OF MOTIVATION AND COMMITMENT- Can reduce the uncertainty for employees and clarify what they should accomplish
  • RESOURCE ALLOCATION- Help managers decide where they need to allocate resources, such as employees, money, and equipment
  • GUIDE TO ACTION- Focused attention on specific targets and direct employee effort towards important outcomes
  • SET A STANDARD OF PERFORMANCE- Establish performance criteria so managers can measure whether things are on- or off-track
• Levels of plan


  • Strategic Plan
  • Tactical Plan
  • Operational Plan

  
• Top management


  Organization-wide perspective
• Middle management


  Department perspective
• First-level management


  Unit/Individual perspective
• Decision-making


  • The essence of management
  • The process of choosing a specific course of action from several possible alternatives even if it has already been planned or being planned
  • In the business world, a great investment of time, economy, effort, personnel, and materials is involved in making a decision

  
• Shewhart cycle


  • A Planning cycle where there is continuous evaluation of management practices and management's willingness to adopt and disregard unsupported ideas
  • Also known as the PDCA cycle
• Organizing


  • The deployment of organization resources to achieve strategic goals
  • Reflected in the organization's division of labor into specific departments and jobs, formal lines of authority, and mechanisms of coordinating diverse organization tasks
• Organizing process


  1. Reflect on plans and objectives

  2. Establish major tasks

  3. Divide major tasks into subtasks

  4. Allocate resources and directives for subtasks

  5. Evaluate results of operationalizing the organizing strategy

  
• Fundamentals of organizing


  • The structure must reflect objectives and plans which acts 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


  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 (e.g., skills needed, a facet of pharmacy operations)

  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 units
• Nature of organization


  • Organization refers to the process of structuring activities, procedures, and people within the business
  • It is a formal and intentional design of structures, roles, and positions
  • It is the framework or backbone by which a business functions to provide services and offer goods to consumers
• Basic elements of organization

  • Designing Jobs
  • Grouping Jobs
  • Establishing Reporting relationships
  • Distributing authority
  • Coordinating activities
  • Differentiating between positions
• Principles of organizational structure

  • Differentiation or Complexity – degree to which units are dissimilar. This can occur either horizontally, vertically, or spatially
  • Formalization – degree to which jobs in the organization are standardized
  • Centralization – concentration of decision-making power at a single point in the organization

  
• Principles of organizational structure (continued)

  • Horizontal Differentiation – describes the differences among workers or units in an organization
  • Vertical Differentiation – focuses on the differences in hierarchical positions
  • 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
  • Centralization – refers to the concentration of decision-making power at a single point in the organization
  • Division of Labor – this can be observed in pharmacies where pharmacists are assigned with specific functions such as 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 – this refers to the idea that an individual employee must report to only one supervisor or manager
  • Span of Control – this refers to the number of employees a manager can effectively control
  • Departmentalization – this refers to the categorization of individuals according to the specific tasks they must perform
• Organizational chart


  • A visual representation of organization's structure
  • Improves coordination and collaboration through departments and the broader organization
  • Strengthens internal process and supports connectivity in an organization
• 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
• Line organization


  • Refers to the straight and direct line of responsibility and control from the top management
  • Usually found in smaller pharmacies that employ fewer people ranging from three to eight
• Advantages of line organization

  • Centralization – problems are solved promptly
  • The direct lines of authority make it easy to define responsibility, maintain single accountability, and achieve better control
  • Overhead expenses are likely to decrease
• Disadvantages of line organization

  • The growth of an organization can increase the workload and responsibilities of each department head
  • Instructions have to follow the flow of the chain of command because they are not directly given to the assigned worker. As the business grows, the chain of command also grows which can complicate the instructions given
  • Line executives are less likely to find themselves in a position to acquire expert knowledge in a particular field and gain relevant experiences therein
• Line-and-staff organization


  • Employs the assistance of specialists to compensate for the lack of needed specialists within the line organization structure
  • This structure is the most common for larger pharmacies
• Line organization


  • Advantages:
  • Single accountability, and achieve better control
  • Overhead expenses are likely to decrease
• Line organization


  • Disadvantages:
  • The growth of an organization can increase the workload and responsibilities of each department head
  • Instructions have to follow the flow of the chain of command because they are not directly given to the assigned worker. As the business grows, the chain of command also grows which can complicate the instructions given
  • Line executives are less likely to find themselves in a position to acquire expert knowledge in a particular field and gain relevant experiences therein
• Line-and-staff organization


  Employs the assistance of specialists to compensate for the lack of needed specialists within the line organization structure. This structure is the most common for larger pharmacies.
• Organization by time


  • One of the simplest methods of organizing a group of employees is based on their working hours.
• Organization by time


  • Day shift (6:00 AM - 2:00 PM)
  • Night shift (2:00 PM - 10:00 AM)
• Organization by number


  • This can be applied when a group of employees with a similar skill set of specialization (e.g., pharmacists, technician) is too large to be effectively supervised by one person.
• Organization by number


  • Manager 1 (7 employees)
  • Manager 2 (5 employees)
  • Manager 3 (9 employees)
• Organization by function


  • This structure is applied where there is a considerable diversity in jobs and skills required to accomplish a task satisfactorily.
• Functions in organization by function

  • Professional functions
  • Merchandising functions
  • Financial functions
  • Personnel functions
• 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
• Features of an organizational structure

  • Work specialization
  • Chain of command
  • Authority, responsibility, and delegation
  • Span of management
  • Centralization and decentralization
  • Formalization
• Work specialization


  Division of labor, or the degree to which organizational tasks are subdivided into separate jobs. Advantage: Job can be performed efficiently. Disadvantage: Employees are isolated and do only a single, boring job. May create separation and hinder coordination essential for organizations to be effective.
• Chain of command


  Unbroken line of authority that links all persons in an organization and shows who reports to whom. Underlying principles: Unity of command - each employee is held accountable to only one supervisor; Scalar principle - clearly defined lines of authority in the organization that includes all employees.
• Authority


  The formal and legitimate right of the manager to make decisions, issue orders and allocate resources to achieve organizationally desired outcomes. Authority is vested in organizational positions, not people. Authority flows down the vertical hierarchy. Authority is accepted by subordinates.
• Responsibility


  The duty to perform the task or activity an employee or other stakeholder has been assigned. This is usually commensurate to the authority given.