Management in Pharmacy - PDF

Management preencoded.png Defining Management in Pharmacy Management Defined Pharmacy Management Management is the art and science of planning, organizing, Managing a pharmacy requires a conscious, organized effort directing, and co...

Management preencoded.png Defining Management in Pharmacy Management Defined Pharmacy Management Management is the art and science of planning, organizing, Managing a pharmacy requires a conscious, organized effort directing, and controlling human efforts and resources to to harness resources and achieve the pharmacy's goals achieve organizational goals. It's the driving force behind an effectively and efficiently. Pharmacists, regardless of their enterprise's success or failure. setting, will inevitably serve as managers. preencoded.png Why Study Management in Pharmacy? 1 Strategic Planning 2 Interdepartmental Collaboration Strategic planning in both hospital and community Interdependence among settings leads to higher sales, departments fosters a profitability, and improved positive impact on clinical performance. pharmacists' commitment and overall success. 3 Clinical Service Excellence Pharmacists need more training in management to achieve excellence in clinical service, meeting the evolving needs of patients. preencoded.png The Changing Roles of Pharmacists as Managers Patient-Centric Approach Third-Party Payer Approach Management A good pharmacy manager In foreign countries, pharmacy understands the needs of all managers must navigate third- patients and strives to carry party payers, ensuring quality products that appeal to specific patient care while maintaining populations. profitability. Revenue Generation and Cost Control Management-minded pharmacists seek opportunities to increase revenue, decrease expenses, and optimize inventory and staffing levels. preencoded.png The Management Process: Planning Defining Objectives 1 Planning begins with envisioning the goals to be accomplished, setting a clear direction for the pharmacy's operations. 2 Forecasting Estimating and predicting future conditions and events is crucial for informed decision-making and resource allocation. Programming 3 Establishing the sequence and priority of actions to take in achieving objectives ensures a structured and efficient approach. 4 Scheduling Setting a time sequence for project steps ensures timely completion and allows for effective resource management. Budgeting 5 Allocating resources to achieve objectives within a specified period ensures financial stability and responsible spending. 6 Developing Policies Formulating standing decisions that apply to the enterprise as a whole ensures consistency and adherence to core values. Establishing Procedures 7 Standardizing work processes ensures uniformity and efficiency in achieving objectives, promoting quality and consistency. preencoded.png The Management Process: Organizing Grouping People and Tasks Organizing involves identifying the personnel and tasks to be performed, then grouping them logically based on their roles and responsibilities. Delegation of Authority and Responsibility Delegating authority and responsibility to team members empowers them to make decisions and take ownership of their work. Establishing Relationships Creating clear relationships among people and tasks fosters communication, collaboration, and a cohesive work environment. preencoded.png The Management Process: Directing 1 Communication 2 Motivation 3 Leadership 4 Supervision Directing involves leading, motivating, and supervising employees to achieve organizational goals. Effective communication, motivation, and leadership are essential for a successful pharmacy team. preencoded.png The Management Process: Controlling 1 Setting Standards 2 Measuring Performance 3 Comparing Performance to Standards 4 Taking Corrective Action Controlling involves setting standards, measuring performance, comparing performance to standards, and taking corrective acti on to ensure that the pharmacy is meeting its goals. preencoded.png Key Takeaways 1 2 Management is Essential Pharmacists are Managers Management is crucial for the success of Pharmacists, regardless of their setting, any pharmacy, ensuring efficient will inevitably serve as managers, operations and patient-centered care. requiring a strong understanding of management principles. 3 Management Skills are Valuable Developing management skills enhances pharmacists' ability to lead, motivate, and achieve organizational goals. preencoded.png Next Steps Continue to explore the concepts of management in pharmacy, applying the knowledge gained to real-world scenarios and seeking opportunities for professional development. preencoded.png Managerial Roles and Levels preencoded.png Interpersonal Roles Leadership Figurehead Liaison Managers take charge, leading Managers perform ceremonial duties Managers coordinate activities, subordinates and their work. This like welcoming visitors, signing motivate teams, and interact with other includes hiring, training, motivating, documents, and representing the managers to secure information and and disciplining employees. organization in formal settings. favors. preencoded.png Informational Roles Monitor Disseminator Spokesperson Managers gather information by Managers disseminate information Managers represent the organization to observing surroundings and asking collected from various sources to outsiders, speaking on behalf of its subordinates, peers, and superiors to subordinates, peers, and superiors who plans, policies, and actions. understand the organization and its otherwise have no access to it. environment. preencoded.png Decisional Roles Resource Allocator Disturbance Handler Negotiator Entrepreneurship Managers allocate human, Managers represent the Role physical, and monetary Managers take corrective organization in bargaining Managers act as resources, including time, action to respond to with outsiders and insiders entrepreneurs, initiating to ensure efficient unforeseen problems, such to gain advantages for their and overseeing new operations and project as worker strikes, declining unit, such as negotiating products and projects to completion. sales, or customer with subordinates, peers, improve organizational bankruptcy. workers, and government performance. They seek to officials. improve their departments and adapt to environmental changes. preencoded.png Managerial Personality Types Workaholic Reconciler Pragmatic Carefree Theoretical preencoded.png Top Managers 1 Develop Long-Range 2 Evaluate Overall Plans Performance Top managers create and They assess the performance review long-term strategies of various departments and for the entire organization. ensure cooperation across the organization. 3 Select Key Personnel 4 Consult and Tackle General Issues Top managers are involved in hiring and promoting key They consult with personnel within the subordinates and address organization. broad organizational issues and problems. preencoded.png Middle Managers 1 Make Intermediate Plans 2 Analyze Managerial 3 Establish Departmental Performance Policies Middle managers create plans for They evaluate the performance of Middle managers set policies for their departments and prepare their subordinates to determine their departments and ensure long-term plans for review by top their capabilities and readiness for adherence to organizational management. promotion. guidelines. 4 Counsel Subordinates 5 Select and Recruit Personnel They provide guidance and support to subordinates on Middle managers are involved in hiring and recruiting production, personnel, or other work-related issues. personnel for their departments. preencoded.png First-Level Managers 1 Make Short-Range Plans 2 Review Subordinate 3 Supervise Day-to-Day Performance Operations First-level managers create detailed, short-term plans for their They evaluate the performance of First-level managers oversee the teams and ensure efficient daily their subordinates and provide daily activities of their teams and operations. feedback to improve their work. ensure smooth operations. 4 Prepare Task Assignments 5 Maintain Contact with Employees They assign specific tasks to their subordinates and First-level managers work closely with their employees ensure clear understanding of expectations. to address concerns and ensure their well-being. preencoded.png Planning in Pharmacy Management preencoded.png Defining Planning Process of Developing Organizing Activities Evaluating Activities Planning involves developing It includes organizing the Planning also encompasses activities to achieve a desired goal. necessary activities for goal evaluating the activities required to achievement. reach the goal. preencoded.png Significance of Planning Purposeful Effort Planning is an organization's purposeful effort to maximize its future success. Inclusive Process It may involve more than just the top-level managers; in smaller companies or in companies with fewer levels of management, front-line employees are often involved in the planning process. Resource Investment Many organizations invest significant time and resources in planning because of its importance in the success of an organization and its operations. preencoded.png Planning in Large Organizations Scope of Planning Dedicated Department In large companies, given the scope of planning activities that This specialized department focuses solely on planning must take place, much of the work involved in planning is activities, ensuring comprehensive and effective planning delegated to a special department dedicated to it entirely. processes across the organization. preencoded.png Steps in the Planning Process 1 Orient the Process Orient the planning process to a singular direction or purpose (vision/mission). 2 Assess Current Situation Assess the organization's current situation or status. 3 Set Goals Set goals. 4 Develop Strategies Identify and develop strategies to achieve these goals. preencoded.png Steps in the Planning Process (Continued) 1 Establish Objectives Establish the objectives that will support the progress toward these goals. 2 Define Responsibilities Define the responsibilities and timelines for each objective. 3 Communicate the Plan Write, communicate, and discuss the plan to individuals and units involved. 4 Monitor Progress Monitor progress toward meeting goals and objectives. preencoded.png Changing Roles of Pharmacists as Managers Traditional Role 1 Dispensing medications Clinical Role 2 Patient counseling and medication therapy management Managerial Role 3 Overseeing pharmacy operations and staff Leadership Role 4 Strategic planning and decision-making Analyze the changing roles of pharmacists as managers in different pharmacy practice settings. preencoded.png Principles of Management: Henri Henri Fayol's 14 Principles Henri Fayol, a French industrialist, was the first to develop a theory on general management which is widely used today. His greatest contribution was his discussion of management principles and elements in 14 Principles of Management. preencoded.png Principles of Management Division of Work Authority and Span of Control Unity of Command Responsibility Specialized jobs are This refers to the limitation An employee must report to assigned to various Employees should have on the number of a single direct supervisor departments and/or authority for ensuring the subordinates that a manager with whom he or she is positions. Except in cases performance and can effectively administer responsible. Within any when the pharmacist owns completion of tasks and control. The principle business that has more than and operates the business assigned to them. Those of span of control states that one employee, there must alone, work activities must who are given authority there are only so many be an established chain of be divided among over some functions should employees a manager can command, and every employees in a logical also be held responsible for effectively supervise. worker needs to be manner. these functions. supervised by one and only one direct supervisor. preencoded.png Principles of Management Unity of Direction Subordination of Remuneration Centralization Individual Interest to Group activities should have There should be a fair This refers to the extent to General Interest one boss and one plan with method of payment that which authority is the same objective. Every The interest of one affords the maximum concentrated. This principle employee must understand individual or group of possible satisfaction to both of management ensures that and be willing to work for individuals should not the employees and the major policies and decisions and toward the business's outweigh the interests of the employer. This principle is are made only by the top goals. business. based on "equal pay for management. equal work." preencoded.png Principles of Management Scalar Chain Order Equity Stability of Tenure In the structure of any This ensures that employees It involves the fair and kind Unnecessary labor organization, ultimate are assigned and resources treatment of employees. turnover can be the authority lies at the top and are allocated properly in the cause and effect of bad communication flows organization. management. downward. Employees should be given enough time and opportunities to prove their worth to the company. preencoded.png Simplicity in Management Unnecessary elements that could complicate plans and/or activities should be eliminated from all activities as well as from t he processes and procedures established for carrying them out. preencoded.png Esprit de Corps This principle emphasizes the need for teamwork and the importance of communication and cooperation in achieving the goals of the team. preencoded.png Types of Planning in Pharmacy Organizations Different types of planning occur in pharmacy operations. These include business planning, financial planning, operational planning, resource planning, organizational planning, and other types. strategic planning. Each has a purpose different from that of the other types. preencoded.png Strategic Planning Purpose Characteristics This ensures the effectivity Long-term (5-20 years); scope and efficiency of an includes all aspects of the organization. It addresses the organization; viewpoint is organization's course of external—how the action, what kind of business organization interacts with or it is in, and provides a controls its environment. framework for more detailed plans and day-to-day decisions. preencoded.png Operational Planning Purpose Characteristics This ensures that the organization is prepared to effectively Short-term (1-5 years; scope is specific to the immediate perform and accomplish its tasks and objectives or to actions that need to be taken to move the organization strategize to achieve its goals. forward; viewpoint is internal-day-to-day accomplishment of tasks. preencoded.png Business Planning Purpose This determines the profitability of specific business or program. It is used in deciding on whether to invest or move forward with a program. Characteristics Short-term (1-5 years); can be used to make major decisions regarding new business ventures, expansion, or termination. preencoded.png Resource Planning Purpose This guarantees the availability of resources needed to carry out its strategies to achieve the organization's goals. It can range from comprehensive to specific. Characteristics Midterm (1-10 years); scope is specific to the resources defined in the plan. preencoded.png Organizational Planning Purpose Characteristics This ascertains the coordination Midterm (1-10 years); scope is and orderly arrangement of an specific to the structural aspects organization in order to face of the organization including any challenges in the future. divisions, reporting relationships, coordination, and control; viewpoint is internal- how the company organizes itself. preencoded.png Contingency Planning 1 Purpose This provides a fallback for the organization in case the original plan fails or in case of an unforeseen event. 2 Characteristics Short to long-term (1-20 years); scope is specific to the situations that may occur; viewpoint is both external (if the situation is created in the environment) and internal. preencoded.png Comprehensive Planning Overview Type Purpose Characteristics Strategic Planning Ensures effectivity and Long-term, external efficiency viewpoint Operational Planning Prepares for task Short-term, internal accomplishment viewpoint Business Planning Determines profitability Short-term, decision- making focus Resource Planning Guarantees resource Midterm, internal availability resource focus Organizational Planning Coordinates structure Midterm, internal structure focus Contingency Planning Provides fallback options Variable term, internal/external view preencoded.png Importance of Diverse Planning Types Strategic Vision Provides long-term direction and goals for the pharmacy organization Operational Efficiency Ensures smooth day-to-day functioning and task accomplishment Business Growth Focuses on profitability and expansion opportunities Resource Management Guarantees availability of necessary resources for success preencoded.png Barriers and Limitations to Planning Effective planning requires time, effort, and resources. For a variety of reasons, organizations may not always be successful in their planning efforts. Lack of success may result from failure to recognize, minimize, and prevent the common obstacles in planning or inability to understand the inherent limitations in planning. preencoded.png Barriers to Effective Planning Time and Effort Failure to commit enough time and effort to the process of planning Interpersonal Issues Interpersonal issues involving individuals or groups (power struggle, internal politics, resistance to change) Inadequate Skills Inadequate planning skills Short-term Focus Failure to plan for the long-term preencoded.png More Barriers to Effective Planning Changing Circumstances Constantly changing circumstances or environment Implementation Failure Failure to properly implement the plan due to the lack of time and/or resources Monitoring Issues Inability to monitor the post-planning progress Lack of Support Lack of support from management (top executive and/or board of directors) preencoded.png Limitations of Planning: Uncertainty and Risk Educated Guesswork Unforeseeable Events Planning, to some degree, involves educated and experienced Even with reliable data and excellent strategy, there are guesswork. Decisions are made based on evidence available unforeseeable events that could slow down or even hinder from past experience and the likelihood of events in the progress. future. However, risk is still involved. Nothing is certain. preencoded.png Limitations of Planning Data Quality Impact Plans and predictions are only as good as the data and information that are given. Poor documentation and reporting of data will result in poor strategy. Effort Correlation The success of an organization's planning efforts and activities correlate directly with the amount of effort, creativity, time, and resources that people put into it. Action Required Planning is nothing without action. Organizations that do not implement their plans will not be successful. Consider Changes The planning process should consider the changing environment and circumstances. The plan should be adaptable. preencoded.png Why Managers Fail in Planning 1 Lack of Commitment 2 Interchanging plans 3 Failure to develop and implement strategies 4 Lack of objectives/ goals 5 Underestimating the importance of planning 6 Inability to see the scope of plans 7 Failure to see planning as a rational process 8 Too much reliance on experience 9 Non- use of the principle of limiting factor 10 Insufficient support from top management 11 Absence of clear delegations of authority and responsibility 12 Lack of control techniques and information preencoded.png Strategic Planning for Pharmacy Organizations preencoded.png Vision and Mission Vision Mission The vision is the pharmacy's desired goal-how it The mission is the pharmacy's purpose. perceives itself to be in the future. The mission statement defines the company-what it The vision statement should be concise but meaningful. is and what it does. The vision statement should be motivational and It is a statement of the present going ahead into the should prompt people to strive for something near future. greater. It is a document that creates a sense of purpose for the customers and the employees. preencoded.png Vision and Mission Vision Mission A company vision statement should inspire employees to The mission statement should be concise and should create a different and better future for the organization. focus on the purpose of the organization. The vision of the organization serves as a guide in strategic It may also draw inspiration or foundation from the values planning process as both the beginning point and the end of the organization. point. Once the vision is set, then strategic planning The mission statement should distinguish the company proceeds with how the organization can reach the goal. from others that provide similar goods and services. The vision is also used to define the mission of the organization. preencoded.png Mission Statement Development Intended Customers Who are the pharmacy's target customers? Core Values What are the pharmacy's core values, such as compassion, respect, and confidentiality? Products and Services What products and services does the pharmacy provide? Customer Benefits What benefits can customers receive, such as improved health and safety? Public Image What is the desired public image of the pharmacy? preencoded.png Company Slogan Marketing Message A company slogan is generally more of a marketing statement than a mission statement. Shared Purpose In some cases, the slogan serves a similar role to the mission statement, conveying a message to both customers and employees. preencoded.png Strategic Planning Foundation 1 Vision and Mission The vision, mission, and other statements that form the company's story are critical elements in strategic planning. 2 Foundation or Modification The process of strategic planning can start with these statements as its foundation or it can begin with the modification of these statements as necessary. 3 Development If these elements do not exist, then their development must be included in the process of strategic planning. preencoded.png Objectives and Goals Interchangeable Terms The terms objective and goal are frequently interchangeable. Organizational Direction Objectives are established at the organizational, departmental, or individual level. They have something to do with the direction that an individual or organization wants to pursue. Goal Definition A set goal prescribes a definite scope and suggests direction to maximize the efforts of a manager. preencoded.png Strategy Shaping the Future 1 2 Long-Term Direction Course of Action 3 A strategy outlines the basic steps in the plan's course of action and what the management intends to do to achieve its objectives. preencoded.png Strategic Plan Example Strategy The department will pursue a rational approach to cost containment and reduction. Goal Develop an ongoing workload-monitoring system based on an existing system of pharmacy service units Objectives To develop a system that identifies and monitors distributive and clinical workload by satellite area To use the workload statistics to predict the needs of the pharmacy staff To evaluate the workload of the staff by checking whether they are overworked or underused based on the need for the activities performed Tasks/ Action Plans Determine what distributive and clinical indicators will be used Develop a method for collecting the workload statistics Collect hours worked by staff category and satellite area Develop a monthly productivity report by area Analyze staffing patterns in comparison with workload statistics preencoded.png Process of Strategic Planning This presentation will explore the process of strategic planning, management by objectives, and decision-making, providing a comprehensive framework for effective organizational leadership. preencoded.png 1. Pre-Planning Phase: Setting th Defining Objectives Identifying Participants This phase involves defining the Pre-planning also identifies the objectives of the strategic plan and individuals involved, the location, and the procedures to follow to achieve the time allotted for the planning them. process. preencoded.png 2. Planning Phase: Crafting the Strategy Vision 1 The organization's vision of its future. Goals 2 Consistent with the vision, utilizing strengths and opportunities. Objectives 3 Short-term, achievable steps to reach long-term goals. Action Plans 4 Tasks to complete objectives, with assigned budgets and responsibilities. preencoded.png 3. Post-Planning Phase: Implementation and Monitoring 1 Communication 2 Implementation 3 Monitoring Managers and Operational planning Evaluating progress, executives must translates strategic effectiveness, and understand the plan goals into daily tasks. resource utilization. and its objectives. preencoded.png Management by Objectives (MBO) Shared Goals Superior and subordinate managers collectively identify common goals. Defined Responsibilities Each employee's major area of responsibility is clearly defined. Performance Measurement Measures guide operations and assess individual and collective contributions. preencoded.png Major Premises of MBO Organizational Goals Consistent with societal goals and moral values. Responsibility Distribution Orderly procedures for assigning responsibility to individuals and groups. Participation Participation in goal-setting and decision-making is highly desirable. preencoded.png Decision-Making Weighing Options 1 Consider all alternatives, including doing nothing. Gathering Information 2 Collect relevant data to support informed decision-making. Evaluating Alternatives 3 Rank alternatives based on available information. Choosing the Best Option 4 Select the most acceptable alternative based on the evaluation. preencoded.png The Decision-Making Environm Complexity Impact Decisions become more complex and Decisions made at higher levels affect difficult at higher levels of the more people. organization. preencoded.png Steps in the Decision-Making Process Set Objectives 1 Clearly define the desired outcome of the decision. 2 Identify Constraints Recognize legal, economic, or political limitations. Identify Alternatives 3 Explore different options to achieve the objectives. 4 Gather Information Collect relevant data to support informed decision-making Evaluate Alternatives 5 Assess the pros and cons of each alternative. 6 Choose the Best Option Select the most acceptable alternative based on the evaluation. preencoded.png Conclusion Strategic planning, management by objectives, and effective decision-making are essential for organizational success. By understanding these concepts and applying them consistently, organizations can achieve their goals, adapt to change, and thrive in a dynamic environment. The next step is to implement these principles within your organization, tailoring them to your specific needs and context. preencoded.png Organizing Organizing is a crucial process in management that involves classifying and categorizing personnel, establishing relationships, and defining authority and responsibilities. It focuses on determining individual employee functions and functions and integrating their efforts to achieve organizational organizational objectives collectively. preencoded.png The Five Main Steps of the Organizing Process Establish major tasks Reflect on plans and 2 objectives 1 Divide major tasks into subtasks 3 Evaluate results of 5 operationalizing the organizing strategy Allocate resources and 4 directives for subtasks preencoded.png Organizing in Pharmacy Management Reflect on plans and objectives 1 The pharmacy manager must properly set up the plans of the organization to ensure the efficiency of the organizing process. 2 Establish major tasks The manager delegates major tasks to individuals and individuals and groups or units of employees within the Divide major tasks into subtasks 3 within the pharmacy. Examples of tasks are serving Tasks must be subdivided into subtasks. For instance, serving customers and compounding prescriptions. instance, serving customers includes the subtasks of prescriptions. subtasks of dispensing medicine and patient 4 Allocate resources and directives counseling. Assigning the previously established tasks to an individual or a group of individuals. It will also detail the Evaluate results 5 detail the relationship between these units. The pharmacy manager receives feedback on how how effective the strategy has been. This feedback feedback should provide the necessary information information that can be used to improve the current current operations of the pharmacy. preencoded.png Fundamentals of Organizing 1 The structure must reflect objectives and plans which act which act as the base of the organization's activities. activities. 2 The structure must reflect authority given to top and middle management. 3 The structure should reflect the external environment to environment to allow members of the group to contribute ideas and solutions and help people achieve achieve objectives efficiently and effectively. 4 The organization must consider employees' and customers' limitations, customs, and traditions. preencoded.png Importance of Organizing Organizing is the primary mechanism that managers use to implement the plans. It provides the structure for how material and 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. preencoded.png Method of Organizing the Pharmacy Define Goals Defining the goals of the pharmacy. Identify Tasks Identifying and defining each task to be completed. Group Tasks Grouping related tasks into a specific job that can be assigned to an employee or a team of employees. Group Employees Grouping employees into job units that are related in some manner (e.g., skills needed) Assign Managers 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. Arrange Units Arranging these units relative to one another both horizontally and vertically and establish who reports to whom. Establish Control Establishing a control system for monitoring the progress and achievements of each unit. preencoded.png The Nature of Organization Organization refers to It is the framework or All employees need the process of or backbone by to know their structuring activities, which a business responsibilities, their procedures, and functions to provide supervisors (who people within the provide services and they report to), and business. and offer goods to their subordinates consumers. (who reports to them). preencoded.png Principles of Organizational Structure Differentiation 1 Horizontal, Vertical, and Spatial Formalization 2 Rules, procedures, and standards Centralization 3 Concentration of decision-making power Organizational structure is the division of executives, departments, and group of and group of workers in terms of their activities or tasks. If the structure is structure is logically designed, functionally correct, and competently staffed, staffed, organizational goals will be efficiently attained. preencoded.png Types of Differentiation Horizontal Differentiation Vertical Differentiation Spatial Differentiation This type of differentiation Vertical differentiation focuses Spatial differentiation involves describes the differences among focuses on the differences in involves location, specifically the among workers or units in an hierarchical positions. the sites of an organization's an organization. This involves "the chain of units, whether they are in one command" in an organization one place or spread across This may include their education, which is the number of levels several areas. type of training, and the tasks assigned to them. between the top management or owner of the organization and the rest of the staff. preencoded.png Additional Principles of Organizational Structure Formalization This organization emphasizes the maintenance of the structure. Maintenance involves the rules, procedural specifications, technical competence, and impersonality. Centralization 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. preencoded.png Organizational Chart An organizational chart shows the composition of an entire business, for each department, or for each section of a business. It shows the departments/tasks of these sections, their divisions, and their interrelationships. It presents the functions of the top management and the subordinate units in in successively descending positions, indicating a hierarchical structure from top top management to rank and file employees. preencoded.png Aspects of Organizational Charts Charts 1 The chain of command should be clearly established. When an organizational chart is drawn, it is generally in a pyramid shape, with only a few at the top and an increasing number of employees toward the base. 2 Positions at the top of the chart have the greatest managerial authority and authority and responsibility that is delegated to employees at the bottom of bottom of the chart. preencoded.png Purposes of Organizational Charts 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. preencoded.png Formalizing the Organizational Organizational Structure The management must identify a relatively standard organizational design that best fits the pharmacy's needs. needs. The design must be constructed to coincide with the preferences of the owner, the hospital's administrator, or board of trustees. preencoded.png Formal Organizational Structures There are various pre-established organizational models that are available to management. In many smaller community and hospital pharmacies, it is essential that all personnel understand their position, reporting relationships, and assigned tasks. preencoded.png 1. Line Organization This refers to the straight and direct line of responsibility and control from the top management. In this structure, all personnel are involved in the preparation and sale of the pharmacy's prescription and non- and non-prescription merchandise, and managers have the right to demand compliance from their subordinates. subordinates. The line organization structure is usually found in smaller pharmacies that employ fewer people ranging from three to eight. preencoded.png Advantages and Disadvantages of Disadvantages of Line Organization Advantages Centralization of authority Direct lines of authority Low overhead expenses Disadvantages Increased workload for department heads Complicated instruction flow Limited expert knowledge acquisition preencoded.png 2. Line-and-Staff Organization Line-and-staff organization employs the assistance of specialists. This structure is the most common for larger pharmacies that are already deemed successful in the industry. This structure still makes use of the features of the line organizational structure but is assisted by technical specialists who have expertise in some of the finer points of the business. The problem with this structure is the violation of the principle of unity of command. Non-management employees often find themselves being given directions by both line and staff personnel. The most effective way to control this problem is to give line managers (i.e., pharmacy manager) absolute authority and absolute authority and use staff members (i.e., accountant) as advisors to line management only. preencoded.png Informal Organization Structures Informal organizational structures, just like formal ones, are geared toward strengthening the cohesiveness within the pharmacy and increasing the chances of goal achievement for all. The only time severe action should be taken against the informal organization structure is when the organizational goals no longer foster productivity in the pharmacy. preencoded.png TYPES OF INFORMAL ORGANIZATION STRUCTURE Organization by Time One of the simplest methods of organizing a group of employees is based on their working hours. For instance, if the pharmacy operates 24/7, workers and managers can be assigned to day and evening shifts. preencoded.png TYPES OF INFORMAL ORGANIZATION STRUCTURE Organization by Number This can be applied when a group of employees with a similar skill set or specialization (e.g., pharmacists, technician) is too large to be effectively supervised by one person. preencoded.png TYPES OF INFORMAL ORGANIZATION STRUCTURE Organization by Function This structure is applied where there is considerable diversity in jobs and skills required to accomplish a task satisfactorily. 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. preencoded.png Results of Good Organization 1 Well-established responsibilities 2 Easier communication between and among employees, managers, and staff. 3 Disputes between individuals are eliminated. 4 Effective measurement of a person's performance against his or her charges and responsibilities. 5 Equitable distribution of work, functions, and/or personnel supervision. preencoded.png Delegation Delegation refers to the process of assigning responsibility and authority to lower-level employees. It is a skill that the manager can effectively perform through practice and the motivation of his or her subordinates. subordinates. preencoded.png Elements of Delegation 1. Responsibility - this is the task or duty designated to a particular individual position. 2. Authority - refers to the power or the right to give orders. 3. Accountability - it is the condition of being held responsible for the task delegated; whether the task is being performed properly or not. properly or not. preencoded.png Types of Authority 1. Traditional - it is the right to give orders, assign tasks and jobs, and expect and exact obedience from subordinates. 2. Behaviorist/Social scientist - it is the belief that authority and power is given to the superior by the subordinates. 3. Functional - assumes authority based on expertise and experience of a person, and by one's specialization. preencoded.png