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PHARMACY MANAGEMENT AND ENTREPRENURESHIP PROF.(MRS.) S.F.USIFOH BPharm, PharmD, MHPM, PhD,MPSN. 1 Study objectives: Leadership – Meaning, Leadership types and power Style of leadership Motivation theories– Maslow’s Theory; Theory X and Y Organi...
PHARMACY MANAGEMENT AND ENTREPRENURESHIP PROF.(MRS.) S.F.USIFOH BPharm, PharmD, MHPM, PhD,MPSN. 1 Study objectives: Leadership – Meaning, Leadership types and power Style of leadership Motivation theories– Maslow’s Theory; Theory X and Y Organizational Communication Channels Barriers to Effective Communication Functions of Human Resource Management Definition of Leadership 3 Alan Keith stated that, "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.” Koontz and O'Donnell :- “Leadership maybe defined as the ability to exert interpersonal influence by means of communication towards the achievement of a goal.” The essence of leadership 4 ► Leadership refers to ability of one individual to influence others. ► The influence is exercised to change the behaviour of others. ► Change of behaviour is caused with an objective of achieving a shared goal. ► The person influencing others(leader) possesses a set of qualities or characteristics with which he or she to influence others ► Leadership is a group phenomenon. It involves interaction A mnemonic for leadership 5 would be 3P's - Person, People and Purpose LEADERSHIP Knootz et al says leaders act to help a group to achieve objectives with the maximum application of its capabilities. They facilitate progress and inspire the group to achieve organizational goals. The purpose of an effective leadership is to be able to direct the efforts of all workers towards the attainment of the goals of the organization 6 MANAGERS LEADERS Rational problem Intuitive, more solvers visionary THE Perform other Primarily DIFFERENCE administrative concerned with BETWEEN functions results LEADERSHIP Concerned with efficiency of Obtained power from below AND results MANAGEMEN Obtained power from above T 🗹 the process of influencing others to pursue official objectives 🗹 vested with formal authority Formal 🗹 have a measure of legitimate power 🗹 rely on expedient combination of reward, coercive, referent and expert power. Leadership 🗹 the process of influencing others to pursue unofficial objectives. Informal 🗹 lack formal authority 🗹 rely on expedient combination of reward, coercive, referent and expert power. POWER AND THE LEADER Leaders can only influence people when he possess power. Legitimate Power Position Power Reward Power Coercive Power Expert Power Personal Power Referent Power POSITION POWER this is the Power given to individuals because of their specific rank or position in an organization. it is derived as a consequence of the leader’s position e.g Chief Operating officer, DA, HOD, CSO etc LEGITIMATE POWER Also referred to as authority Emanates from a person’s position in the organization. LEGITIMATE POWER VESTED IN A PERSON IS CHARACTERIZED BY: 1. It is invested in a person’s position. 2. It is accepted by subordinates. 3. Authority is used vertically. REWARD POWER Emanates from one’s ability to grant rewards to those who comply with a command or request. Leader’s capacity to provide promotions, money, praise, and other rewards influences the behavior of subordinates. COERCIVE POWER This is when a leader uses the threat of punishment to force subordinates into complying with their demand. Arises from the expectation of subordinates that they will be punished if they do not conform to the wishes of the leader. e.g Dismissal, suspension, and transfer to a less desirable task are just few forms of punishments. PERSONAL POWER Leader’s personal power is the ability to influence people and events. This form of power comes from individual characteristics. personal power is more of attitude or state of mind, e.g self awareness, self control, confidence, charisma and wisdom. EXPERT POWER An expert who possess and can dispense valued information generally exercise expert power over those in need of such information. Examples: Doctors Lawyers Computer specialists Depends on his education, training, and experience REFERENT POWER The ability of leaders to influence a follower due to the followers admiration, respect or identification with the leader. The leader develop followers from the strength of their own personalities. Leader with a personal magnetism, an air of confidence, and a passionate belief in objectives that attract and hold followers. Examples: Pope Priest/Pastors Nelson Mandela of Africa Mother Teresa 18 Leadership Styles A leadership style is a leader's style of providing direction, implementing plans, and motivating people Based on authority retained 19 Also known as Lewin’s Leadership styles. In 1939, a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. Based on Authority retained Free rain Authoritarian Democratic (lassie Faire) Consultative Persuasive 1. Autocratic or authoritarian 20 style ❖Under the autocratic leadership style, all decision-making powers are centralized in the leader, as with dictator leaders. ❖They do not entertain any suggestions or initiatives from subordinates. The autocratic management has been successful as it provides strong motivation to the manager. ❖It permits quick decision-making, as only one person decides for the whole group and keeps each decision to himself until he feels it is needed to be shared with the rest ofdegree ❖High the group. of dependency on the leader ❖May be valuable in some types of business where decisions need to be made quickly and decisively AUTHORITATIVE Has little trust in the employees Highly autocratic Gives orders and expects compliance Positively dogmatic and secures obedience by his ability to give or withhold rewards. Communicates downwards/ make decisions at the top Advantage: Provides opportunity for quick decision Disadvantage : high productivity at first then workers feel frustrated and have low moral 21 Participative or democratic style 22 ⮚ The democratic leadership style favours decision-making by the group. ⮚ They can win the cooperation of their group and can motivate them effectively and positively. ⮚ The decisions of the democratic leader are not unilateral as with the autocrat because they arise from consultation with the group members and participation by them. Consultative : process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that the decision is correct DEMOCRATIC - PARTICIPATORY LEADER Shares plans and responsibility with followers Has confidence and trust in subordinates Actively solicit for advice and acts on them. Allow them to use their discretion/use initiative to achieve org. goals and objectives Advantages: ⮚ enhances good interpersonal relationship, motivate positively ⮚ high morale and productivity. Disadvantages : ⮚ subordinates may take decision making powers from management. ⮚ Delays decision making 23 DEMOCRATIC - PARTICIPATORY LEADER Consultative ⮚ Consults the subordinates in decision making ⮚ Use their opinions and ideas ⮚ Communicates upwards and downwards ⮚ Motivates with rewards and occasionally with punishment Participative ⮚ Has complete trust and confidence in the subordinates in all matters, get ideas and uses them. ⮚ Gives economic reward for group achievements. ⮚ Communicates downwards and upwards ⮚ Has the greatest success as a leader 24 Laissez –Faire or free rein 25 style o A free rein leader does not lead, but leaves the group entirely to itself such a leader allows maximum freedom to subordinates, i.e. they are given a free hand in deciding their own policies and methods. o Can be very useful in businesses where creative ideas are important o Can be highly motivational, as people have control over their working life o Can make coordination and decision making time-consuming and lacking in overall direction o Relies on good team work. o Relies on good interpersonal relations. LAISSEZ FAIR Just holds formal leadership post Acts as figure heads and uses his/her power very little Passes responsibility and decision making to the group, while he stands aloof as the work Workers motivate themselves based on their needs and desires Disadvantages Prevents team work and create room for disunity and lack of trust Leader is too weak to exercise authority 26 Others Leadership Styles 27 1.Manipulative 2.Bureaucratic 3.Coercive 4.Paternalistic 5.Transactional 6.Transformational Manipulative Manipulative leader-the employees are exploited through different means to extract more & more work from them & not compensate them for their additional efforts. I. When the co-operation of employees is needed urgently for a specific task. II. When the projects are of short duration. III.When long-term relationship may not be required. 28 29 Bureaucratic ►Manager manages “by the book¨ ►Everything must be done according to procedure or policy ►If it isn’t covered by the book, the manager refers to the next level above him or her ►Police officer more than leader Coercive 30 ► Power from a person’s authority to punish ► Most obvious types of power a leader has. ► Good leaders use coercive power only as a last resort Paternalistic 31 ►Leader acts as a ‘father figure’ ►Paternalistic leader makes decision but may consult ►Believes in the need to support staff Transactional 32 ✔ Motivate followers by appealing to their own self- interest ✔ Motivate by the exchange process. Eg: business owners exchange status and wages for the work effort of the employee. ✔ Focuses on the accomplishment of tasks & good worker relationships in exchange for desirable rewards. ✔ Encourage leader to adapt their style and behavior to meet expectations of followers Transformational 33 ► Charismatic and visionary ► Inspire followers to transcend their self-interest for the organization ► Appeal to followers' ideals and values ► Inspire followers to think about problems in new or different ways ► Common strategies used to influence followers include vision and framing ► Instills feelings of confidence, admiration and commitment ► Stimulates followers intellectually, arousing them to develop new ways to think about problems. ► Uses contingent rewards to positively reinforce desirable performances Factors affecting leadership 34 35 Factors Affecting Style ▪ Risk - decision making and change initiatives based on degree of risk involved ▪ Type of business – creative business or supply driven? ▪ How important change is – change for change’s sake? ▪ Organisational culture – may be long embedded and difficult to change ▪ Nature of the task – needing cooperation? Direction? Structure? 36 Leadership Theories A leadership theory is an assumption about distinguishing characteristics of a particular kind of leader. Theories focus on determining specific qualities, such as skill levels, that separate a leader from a follower Theories of leadership 1. Great Man Theory 2. Traits theory: intelligence, social maturity, inner motivational achievement, attitudes 3. Behavioural theories 4. Participative theories 5. Situational theory: relationship between the leader and people they lead 6. Contigency theory 7. Transactional theories: 1, facilitate the activities of followers. 8. 2, Strive to reconcile org. conflicts 9. Psychological theory/needs theory 37 1. Great Man Theory 38 The theory was popularized in the 1840s by Scottish writer Thomas Carlyle. According to this point of view, ► great leaders are simply born with the necessary internal characteristics such as charisma, confidence, intelligence, and social skills that make them natural-born leaders. ► Great man theories assume that the capacity for leadership is inherent – that great leaders are born, not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. (Gandhi, Lincoln, Napoleon) ► The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership 2. Trait Theories 39 ► Trait theories assume that people Leadership Traits: inherit certain qualities and traits Ambition and energy that make them better suited to The desire to lead leadership. Honest and integrity ► Trait theories often identify Self-confidence particular personality or Intelligence behavioural characteristics shared High self-monitoring by leaders. Job-relevant knowledge For example, traits like extraversion, self-confidence, and courage are all traits that could potentially be linked to great leaders. 3.Behavioural theories 40 ❑ Behavioural theories of leadership are based upon the belief that great leaders are made, not born. Consider it the flip-side of the Great Man theories. ❑ Rooted in behaviourism, this leadership theory focuses on the actions of leaders, not on mental qualities or internal states. ❑ According to this theory, people can learn to become leaders through teaching and observation 41 4. Participative Theories ❖ Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. ❖ These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. ❖ In participative theories, however, the leader retains the right to allow the input of others. 5. Situational Theories 42 ⮚ Situational theories propose that leaders choose the best course of action based upon situational variables. ⮚ Different styles of leadership may be more appropriate for certain types of decision-making. For example, in a situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. ⮚ In other instances where group members are skilled experts, a democratic style would be more effective. 6. Contingency 43 Theories o Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. o According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation. 7. Transactional Leadership 44 Theories ❑ Transactional theories, also known as exchange theories of leadership, are characterized by a transaction made between the leader and the followers. ❑ The transactional leadership style was first described by Max Weber in 1947. ❑ Transactional Leadership, also known as managerial leadership, focuses on the role of supervision, organization, Transformational Leadership and group performance; ❑ Transactional leadership promotes compliance with existing organizational goals and performance expectations through supervision and the use of rewards and punishments. ❑ Transactional leaders are task- and outcome-oriented 8. Transformational 45 Leadership ✔ People will follow a person who inspires them. ✔ A person with vision and passion can achieve great things. ✔ The way to get things done is by injecting enthusiasm and energy Transformational Leaders, by definition, seek to transform Style of working ⮚ Developing the vision ⮚ Selling the vision ⮚ Finding the way forwards ⮚ Leading the charge Basis of Transactional Transformationa Distinction l 46 Basis Based on exchange Based on leaders values, relationship between leader beliefs and needs of followers and followers. Method of Rewards and recognition for Leaders charisma, vision and inspiration good performance energy Orientation Task Orientaion Goal Orienatation Approach Passive and stable Active and dynamic Main functions of Determination of objectives, Providing vision and sense of leader clarifying tasks, helping mission, instilling pride, subordinates in achieving gaining respect and trust, objectives inspiring people, giving personal attention. Results of effective leadership Aims and objectives are easily attained Even satisfaction within the group Creates healthy rivalry Promotes good governance and good result Productivity accountability and trust are clearly manifested Breeds and encourages character building within the organization Effective leadership is always result oriented 47 Results of ineffective leadership Productivity, trust and accountability are always poor Dereliction of duty is highly pronounced The governed is always disgruntled Disillusionment reigns Productivity is always below capacity Standard is low 48 High-performance pharmacy leadership There is a synergy between leadership and high performance pharmacy practice: A high performance pharmacy department. is one that aspires to maximize its contributions to the clinical outcomes of patients and the financial position of its health system by functioning at the highest levels of effectiveness and efficiency. 49 MOTIVATION Define as internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal. Motivation results from the interaction of both conscious and unconscious factors such as: the (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her peers. These factors affect people’s behaviour. 50 Maslow’s Hierarchy of Needs Abraham Maslow Theory According to human psychologist Abraham Maslow, our actions are motivated in order to achieve certain needs. His hierarchy suggests that people are motivated to fulfil basic needs before moving on to other, more advanced needs. People need to satisfy their most important needs first, then when they achieved this, they can move onto the next important need. Maslow first introduced his theory of hierarchy in his 1943 paper “A Theory of Human Motivation” and his subsequent book “Motivation and Personality”. The First Stage of the Hierarchy – The Physiological Stage The first stage of the hierarchy is the physiological stage – the stage required to sustain life. It includes breathing, excretion and the desire for food, water, sex, sleep and homeostasis. These are considered to be the ‘basic’ needs of human life. Maslow’s theory suggests that if these fundamental needs are not satisfied the one must surely be motivated to satisfy them. Higher needs are not recognised until these ‘basic’ needs have been satisfied. The Second Stage – The Safety Stage Once physiological needs have been met, attention and desire turns to safety and security, in order to be free from the threat of psychological and physical harm. Such needs may be fulfilled by: Living in a safe area Financial reserves Job security Good health According to Maslow’s theory, you can not move up the pyramid to the next stages if you feel threatened. Once the threathas been addressed, one can then move up the pyramid. The Third Stage – The Love/Belonging Stage Once a person has met the lower physiological and safety needs, the higher needs can be addressed. This begins with the love/belonging stage, which can also be referred to as the ‘social needs stage’. These are the needs related with interaction and can include family, friendship and sexual intimacy. The Fourth Stage– The Esteem Stage Once a person feels like they belong, the need to be important can arise. Esteem needs can be classified as external or internal. Internal esteem needs are related to self-esteem, such as the need to respect yourself and achieve. External esteem needs are those such as social status, reputation and recognition. The Fifth Stage – The Self-Actualisation Stage Self-actualisation is the summit of Maslow’s hierarchy of needs. It can be defined as the quest of reaching your full potential. Unlike some of the lower needs, this need is never fully satisfied due to the fact that people can ‘grow’ and change and continue to challenge themselves. People in this stage tend to have needs such as: morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts, truth, justice, wisdom and meaning. Douglas McGregor Theory Two fundamental approaches to managing people Theory X Average person dislike work Therefore most people must be forced with threats of punishment to work towards organizational objectives The average person prefers to be directed; avoid responsibility; is relatively unambitious, and wants security above else 58 Theory Y Effort in work is as natural as work and play People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or threat of punishment Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is wide, not narrowly distributed in the population In industry, the intellectual potential of the average person is only partly utilized 59 COMMUNICATION Define as the art of transfer of relevant information and understanding from one person/dept/group to another. Types of communication are: ⮚Downward ⮚Vertical ⮚Upward 60 PRINCIPLES OF COMMUNICATION WAPCP. UPDATE LECTURE MANUAL. 2017. 61 MONROVIA WHAT IS COMMUNICATION? Communication is the art of transmitting information, ideas, and attitudes from one person to another. It is a process of meaningful interaction. ✶ Personal Dynamic Process ✶ Occurs between people ✶ Involves change in behavior ✶ Means to pass information & interact ✶ Means to influence others ✶ Expression of thoughts and emotions through words & actions ✶ Tool for controlling and motivating people ✶ A Social/Cultural and Emotional Process 62 Communication is a Series of Experiences Hearing Smell Seei ng Touch Taste 63 Ey es Fa ce Communication is the means by which pharmacists interact with patients and others Bo dy Voic es Wor ds 64 THE COMMUNICATION PROCESS (SIMPLE MODEL) Sender Message: Facts/Feelings Receiver (Encoding) (Decoding) Medium: verbal/Non- verbal, written, pictorial Feedback Factual information -- Verbal; Feelings-- Non-verbal/verbal 65 Effective: message sent = message received encoding = TOTAL COMMUNICATION PROCESS 66 THE VERBAL COMMUNICATION PROCESS 7% VERBAL – What you said 38% VOCAL – How you said it 55% VISUAL – Body language/non verbal 67 Non-verbal Communication Feelings and emotions received from Vibes Symbolic others through their body actions Kinesics Paralanguage How something (vocals) is said instead Eye contact, facial of what is said expressions, body i.e. volume, rate WAPCP. UPDATE gestures, dress, LECTURE MANUAL. 68 touch, interpersonal 68 and rhythm, 2017. MONROVIA space (proximity, silent pauses, Body Language What it could mean Clenching fist Confidence Avoiding eye contact Lack of confidence/ shy/ hiding something Making excessive eye contact Trying to bully or intimidate/ doubting Fiddling with objects such as hair, Lack of confidence/ lack pencils, or papers of interest Crossing and uncrossing the legs Impatient Keeping legs and arms crossed Not receptive 69 CONGRUENCE BETWEEN VERBAL & NON- VERBAL MESSAGES? ❑Non verbal is more believable, action speaks louder than words ❑A red-faced agitated patron comes into the pharmacy, raises a fist,& loudly proclaims, “I’m not angry, I’m just here to ask about a prescription error.” ❑A disappointed pharmacist has tried, so far without success, to convince a physician to change an obviously inappropriate medication order. When asked how he is feeling, he meekly replies, “Oh, I’m just fine” 70 CONGRUENCE BETWEEN VERBAL & NON-VERBAL MESSAGES? ❑A patient hands a pharmacist a prescription for a tranquiller, then bursts into tears. The pharmacist asks if anything is the matter, & the patient responds, “No, I’m okay, it’s nothing at all.” 71 Barriers to effective communication Lack of planning Unclarified assumptions Semantism Poor expression Intervening variables in the communication process Poor listening & premature interpretation of understanding Lack of face to face communication Distrust Emotional reaction Break in communication Noise Oat of secrecy 72 Human Resource Management (HRM) Human elements constitute a vital resource of any organization. Also known as human capital HRM previously known as personnel management 73 Human Resource Management (HRM) Manpower planning – Determines number and the required knowledge and skills. Staff Procurement: involves processes of recruitment, selection and placement, and the process must be handled carefully because the cost of hiring a bad worker can be quite enormous. Recruitment – process of attracting a pool of potentially employable persons: solicited and unsolicited applications Recruitment entails job description (statement of job facts, duties) and job specification (required personnel qualification, experience) 74 Human Resource Management (HRM) … Selection – matching the worker with the work Placement – specific position Orientation – to expected duties and culture of organization Training: workers must be given orientation on the task they are to perform and later given the opportunity to learn more about their jobs and update their knowledge and skills. Compensation: must be adequate. Compensation is made up of monetary and non-monetary rewards. 75 Human Resource Management (HRM) … Evaluation (performance appraisal): a systematic way of assessing the effectiveness of an employee on his job. Merit rating system for junior workers and participative evaluation where expected standards are jointly set by superior and subordinate. Industrial Relations: Collective bargaining, conflict resolution, managing change. Discipline: this is a control measure e.g. reprimand, suspension, pay cut, demotion, transfer. Separation – process of disengagement e.g. retirement, resignation, death. 76 THANK YOU FOR LISTENING