IPAML Finals PDF

PRPM120 [IPAML] - FINALS Aquino, Zuendie Pearl D. | BSP1E According to Bassett and Metzger (1986): MODULE 5: MOTIVATION AND LEADERSHIP When you have a need (a wish, a de...

PRPM120 [IPAML] - FINALS Aquino, Zuendie Pearl D. | BSP1E According to Bassett and Metzger (1986): MODULE 5: MOTIVATION AND LEADERSHIP When you have a need (a wish, a desire, DIRECTING a want, a life requirement), it moves It is the heart of management process. you into action. You stay in action, in Involves guiding and motivating other one form or another, seeking to reach a people to work for a common purpose. goal that will satisfy the need. Yet action A basic management function that ceases when the need is satisfied, and includes building an effective work no action takes place until the need climate and creating opportunity for surfaces. Because what another person guiding, inspiring, overseeing and specifically needs or wants is rarely instructing people towards known, applying the theory is very accomplishment of goals. difficult. Directing is also the act around which all What people want from their work has performances in the organization hinge. changed remarkably little through the It is “getting the job done” with that, it years. A challenging job is a key is important to point out that direction motivator, especially among is one percent giving instructions and 99 professionals, because it allows for a percent seeing to it that the job is done feeling of achievement, growth, efficiently. responsibility, advancement, enjoyment of the work itself, and earned TIPS ON MANAGING PEOPLE recognition. 1. Periodically review each position in the pharmacy. Take a quarterly look at the COMMUNICATION job. Is work being duplicated? Is it Willard and Merrihue describe four principles that structured so that it encourages the managers can use to employee to become involved? Can a ensure effective communication with their part-time person fill the job? employees: 2. Play a private mental game. Imagine 1. Managers should seek to gain the that the pharmacy must get rid of one confidence of their employees. employee. If one person had to go, who 2. Managers should seek to gain the respect would it be? How would the job be of their employees. realigned? 3. There should be good upward and 3. Use compensation as a tool rather than downward communication between viewing it as evil. Reward quality work. managers and employees. Investigate the possibility of using raises 4. Because half of communication is active and bonuses as incentives for higher listening, it is important to listen productivity. carefully to achieve full understanding 4. Remember that there are new ways of of the information received. controlling absenteeism through incentive compensation plans. PROGRESSIVE DISCIPLINE AND DISMISSAL Progressive discipline is defined as a DISTINCT QUALITIES WITHIN HEALTH CARE series of acts taken by management in Health care is distinct from other response to unacceptable performance industries in that it involves the care of by employees. human beings. The role of progressive discipline is to The stakes are appreciably higher, and escalate the consequences of poor there is an absolute necessity for a high employee performance incrementally level of quality in the work performed. with a goal of improving that behavior. Responses by management to MOTIVATING PROFESSIONALS undesirable behavior become Motivation theory revolves around progressively severe until the employee needs, actions, and goals. either improves, resigns, or is Understanding what motivates people terminated from the position. and applying that knowledge can facilitate the development and maintenance of a strong and loyal workforce. 1 EMPLOYEE DISCIPLINE AND DISMISSAL 5. Termination or dismissal Whatever the cause, the pharmacy Usually initiated by the heads of the owner must be ready to deal with the department/unit. fact that discipline or dismissal may be Set the effective date. called for Employee must be notified 2 weeks prior Such actions have to be based on a clear to the dismissal. understanding of the ground rules for employment. IMPROVING EMPLOYEE RELATIONS Disciplinary actions must be prompt, The pharmacy owner needs to be alert commensurate with the violation, and for signs of employee discontent – clearly explained to all affected. slowdowns, tardiness, accidents, Long delays between the time of the excessive waste. employee action and the resulting By identifying and focusing on those disciplinary steps usually viewed as areas where problems are most likely to indecisive. occur, the employer will increase the Some Common Grounds for Discipline or chances of early detection Dismissal Refusal to work or take direction. Disorderly conduct. TYPES OF IMPROVING EMPLOYEE RELATIONS Tardiness and absenteeism. 1. Quick Recognition Poor treatment of customers. - Whether a complaint is serious, valid Stealing from pharmacy or other or resolved to the employee’s employees. satisfaction the longer it lingers Destruction of pharmacy property. before being treated, the more it Violation of safety practices. strains the long-term Alcohol or drug abuse. employer-employee relationship. Gambling while on the job. 2. Airing of Complaints Progressive Discipline - Closely related to this early ⬇ Verbal Warning and Counseling recognition is the need for an outlet ⬇ Formal Written Warning for discontent. ⬇ Final Written Warning - When employees have no established ⬇ Suspension without Pay means of airing complaints, they ⬇ Termination/ Dismissal often resort to counterproductive measures that are more difficult to Sample Disciplinary Procedure recognize. 1. Verbal warning and counseling Counseling should be a cooperative 3. Equitable Resolution attempt at identifying and correcting - Even if the pharmacy owner makes the problem. every effort to identify problems 2. Formal written warning quickly and create an open Used for more serious errors (failure to employer- employee atmosphere, it meet job requirement, violation of rules will be of little value if grievances or policies) or when verbal counseling is are not resolved equitably. ineffective. - Not eliminating the conflict will Explicitly stated and retain a copy in the certainly damage this relationship file 3. Final written warning The final disciplinary action prior to dismissal. 4. Suspension without pay The temporary release of an employee from duty for 30-working days without pay. Used for a more serious incident or repetitions of improper performance/conduct. 2 MOVEMENT OF PERSONNEL TRAIT MODEL: Personal Characteristics of a 1. Transfer Leader - Shifting an employee from one position 1. Physical to another without increasing his ✔ Young to middle-aged duties, responsibilities or pay. ✔ Energetic ✔ Striking appearance 2. Promotion ✔ Tall and slender - Shifting an employee to a new position to which both his status and 2. Social background responsibilities are increased. ✔ Educated at the right schools ✔ Socially prominent upwardly mobile 3. Separation - It can be temporary or permanent, 3. Personality voluntary or involuntary. ✔ Adaptable a. Lay-off – temporary and voluntary. ✔ Aggressive b. Discharge - involuntary and permanent. ✔ Emotionally stable c. Resignation – voluntary and permanent. ✔ Dominant d. Retirement – can either be voluntary or ✔ Self-confident involuntary upon reaching the retirement age of 65. 4. Social characteristics ✔ Charming LEADERSHIP ✔ Tactful ❤ It is the ability to influence the actions of ✔ Popular others. ✔ Cooperative ❤ It is based on the three elements: a. Leader 5. Task-related activities b. Person being led ✔ Driven to excel c. Situation ✔ Ready acceptance of responsibility ❤ Leaders are not always managers, and ✔ Initiative managers are not always leaders. Those ✔ Task-oriented who display characteristics of both are ✔ Good interpersonal skills typically best for organizations. ❤ According to Bennis and Nanus (1985), Behavioral Model/Leadership Styles “Managers are people who do things right 1. Autocratic Style and leaders are people who do the right “I decide” thing.” The manager retains absolute ❤ Managers typically focus on performing the control. job on behalf of the organization, routinely The manager has little confidence in invoking the five functions of planning, their employees’ ability to make organizing, directing, coordinating, and decisions. controlling. In contrast, leaders consider Few meetings. the needs of the organization as well as the needs of the people they are leading 2. Democratic Style ❤ Pharmacists can become leaders within “We decide”. their pharmacy professional organizations, The decision making is shared fully their practice setting, in providing a new between the owner and employees. pharmacy service, or in community The manager has great confidence in organizations. their employees ❤ Students can be leaders in their student Make decisions in the best interest of pharmacy organizations by providing the pharmacy. services to local community organizations It tends to get ego involved in the and providing disease-state management pharmacy. services. Serves to improve their morale and motivation. THEORIES OF LEADERSHIP Many meetings. Concerned with change and with motivating employees to move toward a shared vision. 3. Free Rein Style a. TRAITS MODEL “You decide”. b. BEHAVIORAL MODEL The decision making is given to the c. CONTINGENCY MODEL employee within certain specified limits. 3 Contingency Model The affiliative leader tends not to 1. Task orientation deliver bad news to a person, thus - Leader engages in one-way not allowing the employee to grow or communication by defining the roles change bad habits. of individuals and members of the group. B. Authoritative style - Explain what do, as well as when, Although sounding “bossy,” it is one where, how much, and by when of the most positive styles a leader specific tasks are to be can employ. accomplished. They display self-confidence, empathy, and the ability to develop 2. Relationship orientation cooperation and teamwork when - Leader engages in two-way leading the organization. communication. Leader motivates the team toward a - Provides socio-emotional support, new vision by providing a trusting and uses facilitative versus directive environment in which individuals efforts of bringing about group know their roles in achieving change. organizational goals. Authoritative leader develops the 3. Follower readiness or Maturity end vision while allowing the team to - Individual’s willingness or ability to determine how to achieve the vision accept responsibility for a task. - Possession of the necessary training C. Coaching style or experience to perform the task. Help employees improve performance over the long term. Leadership Style Coach delegates responsibility to - It refers to the approach the manager subordinates for the dual purpose of uses to direct the actions of the achieving outcomes and encouraging employees. employees to develop new skills. - How the manager views and treats employees will have significant effects D. Coercive style on worker’ morale and motivation. Individuals practicing the coercive - The style of leadership selected by a style of leadership demand pharmacy owner depends on several immediate compliance with orders factors: and directives a. Degree of self confidence the Primarily associated with leaders pharmacy owner has. displaying a strong sense of self- b. Degree of confidence the management, but focusing little pharmacy has in subordinates. c. to the survival or success of the E. Democratic style pharmacy. Importance of decisions Democratic leaders use social skill as d. Extent to which employees want the primary means for directing the decision making responsibilities. activities of a group. The democratic style uses STYLES OF LEADERSHIP collaboration and teamwork to gain Whereas many theories help an individual buy-in from constituents. understand how to lead, there remain styles of leadership that a person can adopt to influence F. Pacesetting style the actions and behaviors of others. Pacesetters set high standards of performance for themselves and A. Affiliative style expect others to have the same high Creates harmony and builds standards. emotional bonds. Helps create a feeling of belonging and security through feedback and reward systems. Focus on praise and belonging, though, does not help when there is poor individual performance that needs correction. 4  MODULE 6: PHARMACY PERFORMANCE 5. ABILITY AND WILLINGNESS TO WORK WITH APPRAISAL OTHERS ○ Since the pharmacy relies in relatively CONTROLLING few people, it is essential that they be It is the measurement of willing and able to work in cooperation accomplishments against set standards spirit. and the corrective measures to be ○ This, however, is difficult to measure applied so that deviations from the quantitatively. standard are minimized. ○ Observation of the employees’ interaction as well as monitoring any PERFORMANCE APPRAISAL conflict through grievances or other ○ It is a method by which the job hostilities provides several bases for performance of an employee is rather subjective appraisals. documented and evaluated. ○ Consists of regular reviews of employee 6. INITIATIVE AND ABILITY TO HANDLE performance within the organization. AMBIGUITY ○ The extent to which individuals can work EMPLOYEE PERFORMANCE APPRAISAL on their own and perform relatively ○ It identifies the individual’s strengths and unstructured tasks is a definite asset to weaknesses. the pharmacy. ○ It provides the employer with the ○ Measurement of these factors is information relative to the employee’s difficult, sort of psychological testing. capacity for retention and promotion. ○ Most pharmacy owners do not want to ○ This will also identify any training needed take the time or spend the money to to improve performance. conduct tests. 1. UNITY OF OUTPUT RATIONALE FOR IMPLEMENTING EMPLOYEE ○ This can be measured on an hourly, daily, APPRAISALS weekly, or monthly basis. ○ The evaluation form will be reviewed at a ○ For pharmacists, this may be the number meeting between the employer and the of prescriptions dispensed per day, for employee. salespersons, it may be sales per day. ○ Each aspect of the individual’s performance should be discussed in terms 2. QUALITY OF WORK of strengths and weaknesses, and how the ○ Based on the number of prescription latter can be improved. errors, incorrect transactions recorded, ○ This act promotes superior-subordinate or number of complaints. relationship. ○ It is based on the assessments made of the employee’s quality of efforts. FACTORS: 3. DEPENDABILITY 1. Performance improvement ○ Measured in terms of coming to work on 2. Basis for employment decisions time, one assessment will be 3. Criteria in research (Test Validation) dependability to perform. 4. Aid with communication ○ Another dimension is the extent to which 5. Establish personal objectives for the individual can be counted on to do a training programs good job. 6. Transmission of objective feedback for ○ This is an intangible factor that is hard personal development to measure. Perhaps the closest 7. As a means of documentation to aid in approximation is the quality of work. keeping track of decisions and legal requirements 4. JOB KNOWLEDGE 8. Wage and salary administration ○ A person’s knowledge of the job, 9. Formulation of job criteria pharmacy, and parent company policies, 10. Selection of individuals and so on, can be measured through 11. Part of guiding and monitoring objective testing techniques if desired. employee career development ○ Informal questioning of the employee 12. Aid in work motivation through the also can be used to assess this. use of reward systems 5  2. Graphic Rating Scale APPROACHES TO THE PERFORMANCE APPRAISAL ❄ This assessment makes use of a 1. Traditional Appraisal graphic scale measuring the persons’ ⛤ The manager discusses with the quality of work. (average, above employee the performance for the average, outstanding, unsatisfactory) previous performance period. ⛤ The discussion is based on the manager’s observations of the employee’s performance. 3. Critical Independent Appraisal Method ❄ The superior describes incidents, 2. Upward Feedback giving details on both positive and ⛤ This is also known as manager negative behaviors of the employee. feedback. ⛤ A process of delivering feedback from 4. Management By Objectives (MBO) subordinates to superiors. ❄ In this technique the employees are ⛤ This is intended to identify ways to allowed to set their own realistic increase management effectiveness. performance goals. ❄ This eliminates the feeling of 3. 360° Feedback employees that they are being judged ⛤ Also known as multi-rater feedback. by unfairly high standards. ⛤ Employees are allowed the opportunity to assess the manager at the same 5. Ranking Method time. ❄ Employees are ranked and compared ⛤ The feedback would come from people to one another according to their around the employee, including self work performance. assessment and external sources such as customers. RATING SCALE This is an aid to measuring – with a 4. Self Appraisal reasonable degree of accuracy and ⛤ Employees evaluate their own uniformity the abilities of one employee performance. and the employee’s skill in his or her ⛤ Usually done 1 or 2 weeks before the present job. employees performance review. It will help to appraise present ⛤ This will give the employee a chance to performance as compared with previous compare his/her impression of how performance in the same job, and it may well they did with the employers’ indicate promotion possibilities. impression. ⛤ Important to an employee's own RATING SCALE- INSTRUCTIONS: advancement. 1. Disregard your general impression and concentrate on a single factor at a time. 5. Trait Approach 2. Read all four specifications for each ⛤ The employer evaluates the employee factor before determining which one on observable dimensions of closely fits the employee. personality. 3. In rating an employee, make your ⛤ Examples of dimensions of personality judgment on instances occurring are integrity, honesty, and punctuality. frequently in his or her daily routine. Don’t be swayed by isolated incidents 6. Based on Achievable Results that are not typical of his or her work. ⛤ Based on work achievements judged 4. Don’t let personal feelings govern your against goals set mutually by the rating. Make it carefully so that it supervisor and subordinate. represents your fair, objective opinion. STRATEGIES IN CONDUCTING APPRAISAL 1. Essay Appraisal Method ❄ The evaluator provides a brief essay providing assessment of the strengths, weaknesses and potential of the subject. 6  MODULE 7: BASIC ACCOUNTING FOR E. EXPENSES PHARMACISTS ○ consumption of assets or using up of services of other business ACCOUNTING Art of recording, classifying and summarizing Let’s get into it, 1:1! in a significant manner and in terms of money, transactions and events which are, in A. ASSETS part at least, of financial character and interpreting the results thereof. Serves as a medium of communication between a business firm and other parties interested in its financial activities. ACCOUNTING ELEMENTS CATEGORIES OF ASSETS 1. CURRENT ASSETS a. Cash - coins, currencies, money orders, bank checks, bank deposits. Cash on hand, Cash in bank b. Accounts receivable - collectibles from customers c. Notes receivable - collectibles from clients/ customers who issue promissory notes d. Interest receivable - added collectibles from notes receivables. e. Merchandise inventory - stock of goods available for sale to customers f. Prepaid expenses - advance payments made g. Trading securities - These are investment in stocks of other companies. 2. CURRENT ASSETS a. Land - Real estate owned and used by the business b. Building - Any structure constructed or A. ASSETS acquired for use in business as office, ○ property or rights on property owned by store, or warehouse. the business or upon which the business has c. Equipment - filling cabinets, adding a vested equitable interest. machines, computers, bioref, calculators, cash registers B. LIABILITIES d. Furniture and Fixtures - tables, chairs, ○ debts desks, counters, show cases, cabinets C. OWNER’S EQUITY e. Allowance Depreciation - All assets ○ the excess of assets over liabilities of the classified as Plant Assets/ Fixed Assets business, the claim of the owner over the except land are subject to depreciation. assets of the business after the liabilities f. Intangible assets- non–monetary assets have been deducted. that lack physical substance ☑ Patents ☑ Franchise D. REVENUES/ INCOME ☑ Copyright ☑ Trademark ○ inflow of cash or other assets from clients ☑ Goodwill ☑ License or customers 7 B. LIABILITIES D. REVENUES/ INCOME 1. Sales or Merchandise sales - represents the total sales price of the merchandise sold 2. Revenue from fees - Amounts earned for professional services rendered 3. Rent Income - rental earned on the properties of the business 4. Service Income - appropriate title for income of enterprise selling, services instead of merchandise. 5. Interest income - amount earned for the lending of money. CATEGORIES OF LIABILITIES E. EXPENSES 1. CURRENT LIABILITIES 1. Salaries expenses - wages of employees. a. Accounts payable - obligations or debts to 2. Commission expenses - compensation creditors that are not evidenced by a granted to employees. written promise to pay. 3. Travelling expenses - allowances given for b. Notes payable - unpaid promissory notes travel expenses. c. Salaries payable - amount owed to 4. Postage and Communication expenses - employees expenses of postage and other means of d. Interest payable - interest incurred in the communication. current period but not yet paid 5. Taxes Expenses - Amounts of taxes e. Taxes payable - taxes that are expenses of incurred the current period but are still unpaid as of 6. Utilities expenses - cost of lights and the balance sheet date. water consumed by the business. f. Utilities payable - liabilities to pay utility 7. Insurance expenses - Premiums or companies insurance policies paid and incurred by the business 2. LONG-TERM LIABILITIES/ NON-CURRENT 8. Repair and maintenance expenses - LIABILITIES Expenses for repairing or servicing the a. Notes payable buildings, machineries and equipment of b. Loans payable - This is the amount the business. borrowed by the business from a bank or 9. Rent expenses - amounts paid or incurred financial institution. for the use of the property usually c. Mortgage payable - These are long–term premises debts of the business for which property 10. Interest expenses - Sum added to the have been given as security or collateral. principal of money obligations. d. Bonds payable - This is a long-term 11. Advertising expenses - promotional contract of indebtedness payable usually expenses from 5-10 years. 12. Depreciation expenses - over time, all plant assets except land, lose their C. OWNER’S EQUITY capacity to yield services. 1. Owner’s Capital/ Capital - This account 13. Miscellaneous expenses - Expenses title is used to record the investment or incurred other than those given above. share of the owner in a business. 2. Drawing or Owner’s personal - This is the SUMMARY account used for the recording of the ◻ To sum up the relationship of assets, withdrawals of capital by the owner for liabilities, and owner’s equity, remember this: personal use. Such withdrawals are ◻ ASSETS are the economic resources. recorded as debits to an account bearing ◻ We can consider our LIABILITIES as the the owner’s name followed by drawing or “outsider claims” and personal, and the account is periodically ◻ OWNER’S EQUITY as the “insider claims” in closed to the capital account. its resources. ◻ Basic Accounting Equation: 8 ◻ Every company’s ASSET comes from the JOURNAL investment made by the owner (Owner’s ○ This book may be called the diary of its Equity) or debts from the creditor (Liabilities). business since it records all the transactions happening in its life in the order of their occurrence. The journal, or daybook, is the DEBIT AND CREDIT original entry for the accounting data and Rules of Debit and Credit so-called the “the book of original entry”. ACCOUNT: is an accounting device for grouping, summarizing or classifying changes LEDGER caused by transactions. ○ Once the transactions are recorded in the A separate account is maintained for each appropriate journal, they need to be item that appears on the financial posted to the ledger. Ledgers provide a statements. Thus, an account may be defined convenient way to systematize financial as a record of the increases, decreases and activities and prepare for use in the income balances in an individual item of assets, statement and balance sheet. liability, capital, revenue and expense. ○ Account receivable and accounts payable ledgers are used to keep track of payments and owed by the pharmacy. RELATIONSHIP BETWEEN JOURNAL AND LEDGER ○ The recorded information in the ledger came from the journal. ○ Information in the journal is grouped according to transaction while the ledger is by accounts. The simplest form of the account has three ○ The journal is known as the book of original parts: entries while the ledger is called the book of 1. The name of the account and account final entries. number ○ The two records are cross-referenced to each 2. The debit side (left side) other by the use of folio columns or 3. The credit side (right side) post-reference columns. T-ACCOUNT is commonly used prior to formal entry of transactions in basic books of FINANCIAL STATEMENTS accounting. DEBIT CREDIT Increase in assets Increase in assets and expenses and expenses Decrease in liabilities Decrease in assets 1. INCOME STATEMENT Decrease in owner’s Inrease in owner’s equity equity ○ Commonly referred to as a profit and loss statement. BASIC BOOKS FOR RECORD KEEPING ○ This reports on the business transactions in financial terms over a defined period. It gives information about the result of an operation for a period. It is developed at the end of the fiscal year. ○ accounting period: any period usually twelve months during which business transactions are recorded. ○ calendar period: an accounting period that ends on December 31 ○ fiscal period: an accounting period that ends on any other month of the following year. 9 2. BALANCE SHEET 4. STATEMENT OF CHANGES IN OWNER’S ○ It may also be called the statement of EQUITY (SCOE) financial position. ○ As the title implies, this financial ○ It reports the financial status of the statement wants to show the owner his business. It shows what a business owns (its New Share in his total resources after a assets), what it owes (its liabilities), and given period. how much is left over (owner equity), at a ○ It aims to show the Ending Balance of the specific point in time or as of given date. owner’s Capital account. ○ This can be considered as the business portfolio or “Statement of Final Position.” ○ Information about assets, liabilities and owner’s equity are easier to use if reported in an organized manner such as on a balance sheet. 3. CASH FLOW STATEMENT ○ Because cash is the most liquid asset, it is to some extent the lifeblood of the pharmacy. Consequently, the inflow and outflow of cash must be monitored continuously. ○ The cash flow statement, sometimes called the sources and the uses of cash statement, is mainly an internal statement used by the management to keep track of cash flow over time. Like the income statement, it reflects a series of transactions over usually 3 months. ○ The cash flow statement is composed of three parts: (1) cash receipts (2) cash disbursements (3) the reconciliation to show cash excesses of deficiencies. 10