Laboratory Management & Planning Concepts PDF

LABORATORY MANAGEMENT INTRODUCTION TO MEDICAL LABORATORY SCIENCE PRACTICE & MANAGEMENT NEIL ALLEN ELQUINTO, RMT COLLEGE OF MEDICAL TECHNOLOGY CENTER FOR MEDICAL & ALLIED HEALTH SCIENCES NEW ERA UNIVERSITY INTRODUCTION TO THE PRACTICE OF LABORATORY MEDI...

LABORATORY MANAGEMENT INTRODUCTION TO MEDICAL LABORATORY SCIENCE PRACTICE & MANAGEMENT NEIL ALLEN ELQUINTO, RMT COLLEGE OF MEDICAL TECHNOLOGY CENTER FOR MEDICAL & ALLIED HEALTH SCIENCES NEW ERA UNIVERSITY INTRODUCTION TO THE PRACTICE OF LABORATORY MEDICINE Discipline of laboratory can be viewed as a bridging endeavor linking the basic medical, biologic and physical science with medical practice. Those working in the laboratory have the exciting opportunity and challenge to apply advances in the sciences to assist their clinical colleagues in making diagnostic, therapeutic and prognostic decisions. Relationship between the laboratory medicine and industry has become bi-directional as individuals move from one to the other as new methods and instruments are developed and evaluated jointly. Activities in laboratory medicine are guided and, to an ever-greater extent, restricted by the proliferation of accreditation of standards, governmental regulations, and financial constraints. INTRODUCTION TO THE PRACTICE OF LABORATORY MEDICINE Activities in clinical laboratories are divided into four categories: 1. Administration 2. Patient care service 3. Research 4. Teaching INTRODUCTION TO THE PRACTICE OF LABORATORY MEDICINE Clinical laboratory is among the hospital services that produce some of the revenue needed to offset hospital costs for which patients are not billed. It performs complex analyses and examinations such as the following: 1. To confirm clinical impression or establish diagnosis. 2. To rule the diagnosis 3. To monitor the therapy (management guide) 4. To establish prognosis 5. To screen for or detect disease. INTRODUCTION TO THE PRACTICE OF LABORATORY MEDICINE The efficient operation of a clinical laboratory and the effective delivery of medical laboratory services to the clinicians and their patient require a complex interrelationships of: a. Expertise in medical, scientific and technical areas b. Resources in the form of personnel, laboratory and data-processing equipment, supplies and facilities. c. Skills in organization, management and communication  MANAGEMENT Management is working with and through people to accomplish a common mission. Management has been called “ the art of getting thins done through people” Management is a distinct process consisting of planning, organizing, leading, and controlling, which are performed to determine and accomplish the objectives by the use of people and resources. Management is the effective motivation of men and the efficient utilization of resources for the attainment of a pre-determined objective. Management is a process, which includes both interpersonal and technical aspects through which the objectives of an organization are accomplished using resources efficiently and effectively. Ingredients of Management There are five ingredients and/or conditions necessary for management to succeed which includes: 1. Mission - goal of the organization or sub-unit expects to accomplish. 2. Authority – needed to direct the team toward the goal. 3. Resources – includes people, equipment, supplies and money 4. Responsibility – for achieving the goals assigned 5. Accountability – for using the resources established. Management as an ART and SCIENCE Management as ART – results from the accomplishment of objective by the use of human efforts. It requires skill and careful study of its application. Management as SCIENCE – because it is a systematic body of knowledge. It gathers and analyzes facts and formulates general law or principles from these facts. Management as an ART and SCIENCE – management seeks to integrate into unified, coordinated whole of all the essential factors that make up an organization. FUNCTIONS of MANAGEMENT It refers to those distinctive activities that must be carried out by the manager of the objectives of an organization re to be achieved. These functions of management or may be grouped into: 1. Planning 2. Organizing 3. Directing 4. Controlling FUNCTIONS of MANAGEMENT: Planning 1. PLANNING It is a mental effort by which executives anticipate the possible causes or factors that may effect or change the activities and objectives of a particular organization. It controls the nature and direction of change and determines what measures or actions are necessary to accomplish predetermined goals. In planning , efforts should include several possible alternative courses of action that may be taken under the circumstances will be considered. FUNCTIONS of MANAGEMENT: Planning 1. PLANNING Relative activities are as follows: a. Forecasting = estimate future  vision b. Set objectives – determine results desired c. Develop and schedule of programs = define activities needed and set time frame. d. Preparing the budget = allocate resources e. Establish policies and procedures = establish definite courses of action and methods. FUNCTIONS of MANAGEMENT: Organizing 2. ORGANIZING It is the grouping together of men and establishing relationships among them, defining the authority and responsibility to the personnel who are to perform the work in order to use maximum advantage of the laboratory’s material resources in the attainment of common objective. FUNCTIONS of MANAGEMENT: Organizing 2. ORGANIZING Also included are the following activities: a. Set up organizational structure = identifying groupings, roles, relationships. b. Determine staff needed and maintain staffing patterns = distribute in areas needed. c. Develop job descriptions = define qualifications and functions of personnel FUNCTIONS of MANAGEMENT: Organizing 2. ORGANIZING d. Establishment of relationships taking into consideration the organizations principles such as: 1. Unity of commands 2. Limited span of control 3. Delegation of responsibility 4. Homogenous assignment 5. Integration of work FUNCTIONS of MANAGEMENT: Directing 3. DIRECTING Refers to the way of getting all personnel in an organization to accomplish what management desires. It is telling what each man should do and making him like doing it. It involves both motivation and communication. FUNCTIONS of MANAGEMENT: Directing 3. DIRECTING Also includes the following activities: a. Effective utilization of executive ability b. Delegates duties and responsibilities c. Supervise harmonize goals through guidance d. Coordinate – unite personnel and services e. Communicate – ensure common understanding various routes. FUNCTIONS of MANAGEMENT: Directing 3. DIRECTING Also includes the following activities: f. Develop people – provide staff development g. Decide – making judgment h. Securing the cooperation of all personnel FUNCTIONS of MANAGEMENT: Controlling 4. CONTROLLING It means checking the work accomplished against the plans or standards and making adjustments or corrections when new developments or unforeseen circumstances necessitate. The bases for controlling are standard quantity, standard quality, standard cost and standard time. Three aspects are involved namely planned performance, measure of actual performance and corrective measures. FUNCTIONS of MANAGEMENT: Controlling 4. CONTROLLING It also includes the following: a. Performance appraisal = assess, interpret, correct and apply discipline. b. Determination of performance standards = specify criteria and standards. c. Measurement of performance d. Monitor and evaluate performance MAJOR MANAGEMENT THEORIES 1. Scientific Management – a scientific or systematic approach to the study of organizations. It state that management work can be scientifically done to increase work production output, which includes proper selection of workers, training of selected workers and giving workers adequate tools to start his tasks. This also applies the concept of cause-and-effect analysis. Important advocator of this concept include: a. Frederick Taylor (1856-1915) d. Mary Parker Follett (1868-1933) b. Henri Fayol (1861-1925) e. Lyndall Urwick (1891-1983) c. Frank Gilberth (1868-1915) FRANK GILBRETH  MAJOR MANAGEMENT THEORIES: Scientific Management Advocators a. Frederick Taylor (1856-1915) – the Father of scientific management where he broke down each task into segments that could be analyze for ways to improve efficiency. b. Henri Fayol (1861-1925) – management is an orderly process of tasks and duties of which planning is the most important. c. Frank Gilberth (1868-1915) – developed method analysis. The performance standard used by College of American Pathologist is dependent on this. d. Mary Parker Follet ( 1868-1933) – pointed out that management is coordination. e. Lyndall Urwick (1891-1983) – introduced the role of management consultant and attempted to classify and codify the work done on management theories. MAJOR MANAGEMENT THEORIES 2. Bureaucracy Management – examines the organizational aspects of the laboratory and its’ workflow to explain how institutions functions and how to improve their structural process. Management principles that stem from this is the “scalar principle” which deals with the chain of command in an organization and states that each person should have always one boss. Advocators are: a. Adam Smith (1723-1790) – concept of specialization b. Peter Drucker (1909) – concept of efficacy and effectiveness  MAJOR MANAGEMENT THEORIES 3. Behavioral Science – focuses of the performance and interaction of people within the organization. This approach uses concepts of psychology and sociology. Prominent advocator include: a. Elton Mayo (1880-1949) – study the origin of this theory; concerns about job satisfaction through participation and recognition. b. Douglas McGregor (1906-1964) – developed the assumptions of the basic nature of man. He states that management involved 2 assumptions: 1. Theory X – states that an ordinary person is lazy, not intelligent, not inspired, not motivated; he dislikes work and avoids responsibilities; he need to be coerced and threatened to work. 2. Theory Y – states that an ordinary person regards work as natural and play; he seeks his own responsibilities. MAJOR MANAGEMENT THEORIES 3. Behavioral Science c. Resis Likert (1903 – 1981) – encouraged managers to be supportive in their relationship d. Barnard – managers should encourage a climate of cooperation 4. Systems Analysis – an outgrowth of management science, which views the organization as a continuous process interacting itself and with its environment.  MANAGER Manager is the leader who is responsible for directing, organizing and control of the work and personnel of a business. As leader of organizations, managers are required to play basic roles such as a: 1. Person Manager is first and foremost a person. Manager have similar fears, dreams, hoes, difficulties, potentials, expectations and weaknesses as well. Some are seemed to be “natural leaders” with inborn skills, however, without an understanding of the management process, they soon to fail when put in situations that require exacting attention to details. Managers are made not born!  MANAGER 2. Servant  Managers must become a supporter of their staff and provide the means for the staff to meet the needs of their patient and customers. This is necessary for the organization to function well. 3. Representative The manager is a paid representative of the owners of the people by supervising and presenting their concerns to the owners. Who is Manager? A manager is an individual whose job is to guide the organization to attain its objectives. He performs the function of planning, organizing, directing and controlling the work of his subordinates. The term manager is commonly confused with director, administrator and supervisor. A director directs the affair of an organization by establishing goals and priorities that determine the direction the organization will take. The director might not directly supervise or manager in a technical sense since his roles primarily one of broad policy making. Who is Manager? An administrator administer or runs an organization within the framework of the various directives and policies given to him. A supervisor oversees the activities of others to get them to accomplish specific tasks or to perform scheduled activities most efficiently. A manager takes charge of the management or oversees the functioning of an activity to achieve a set of goals or purposes. His strength is in his ability to use all of his resources to get things done properly. In reality, everyone who has responsibility for a section, an office, a laboratory, any activity-functions as a manager.  ESSENTIAL CHARACTERISTICS OF A MANAGER 1. Motivation – the manager’s value is in direct proportion to his ability to motivate himself and his workers. 2. Vision – every manager is a supervisor. The word supervision carries the connotation of someone possessed with super vision; hence one capable of seeing over and beyond the obvious. 3. Decision-making ability – a manager who cannot take decision must yield authority to one who can. 4. Good Health – it embodies more that physical fitness. It means living a balanced life physically, emotionally and spiritually as the best antidote to tensions, illustrations, strains and effort. 5. Humility – this implies the recognition that we have shortcomings that we are not self-sufficient and that we need the help of our subordinates just as much as they need our help. ATTRIBUTES of MANAGERS The qualities that top management contenders possess have been described as the follows: 1. Appearance – conspicuous obesity and extreme emaciation are negative marks. 2. Personality style – you can learn manners and poise, adopt diplomatic approach and act with difference. 3. Articulateness – this is increasingly important because even if you have the proper educational background, superb dress and manners, good looks etc. 4. Energy, drive and ambition – easy to recognize, through the quick stride, fresh appearance, superb physical health. ATTRIBUTES of MANAGERS 5. Positive attitude – without being utter fool, you can beat the pessimist by consistently displaying a constructive, cheerful outlook in life. 6. Thoughtfulness – no one wants a “yes” man. An intelligent man and woman usually weigh a question for a second or two before responding. 7. Overall composure – the nail biter, hair twirler, foot topper or chain smoker goes beyond an initial interview unless his or her credentials are so outstanding that allowances must be made for nervous habits. ATTRIBUTES of MANAGERS 8. Aura-leadership – an erect carriage, a heel held high, an agreeable manner and self-confidence connote leadership qualities. You must be sure of yourself to lead others. Important is that you inspire trust and are likeable. 9. Bright, informed, a bit sparkle – if your are intelligent and well rounded, you will come across as such. A degree of humor adds sparkle. 10. Breadth of interests – without being the least bit pedantic, you can learn a little about many fields – art, music, architecture, politics, travel, language, economics, literature, etc. ROLES of MANAGERS Henry Mintzberg (1973) it provides one of the first comprehensive studies of the nature of managerial work. He found out that the one- third of manager’s time spent in dealing with subordinates, about one-third of their time is dealing with external matters and another one-third in a variety of activities, including contacts with supervisors, tours of the workplace and thinking. Mintzberg group ten basic roles performed by the managers: Interpersonal, Informational and Decisional. ROLES of MANAGERS INTERPERSONAL ROLES 1. A manager is a symbol or a figurehead. This role is necessary because of the position occupied and consists of such duties assigning certain documents required by the law and officially receiving visitors. 2. A manager serves as a Leader – that is, hires, trains, encourages, fires, renumerated and judges. 3. A manager serve as Liaison between outside contacts – such as the community, supplier, and other and the organization. ROLES of MANAGERS INFORMATIONAL ROLES 1. As monitors, manager gathers information in order to be well informed. 2. Managers are disseminators or information flowing from both external and internal sources. 3. Managers are spoke persons or representative of the organization. They speak for subordinates to superiors and represent upper management to subordinates. ROLES of MANAGERS DECISIONAL ROLES 1. Managers as entrepreneurs are initiators, innovators, problem discoverers and designers of improvement project tat direct and control change in the organization. 2. As disturbance handlers, managers react to situations that are unexpected, such as resignation of subordinates, firings or lose of customers. 3. A third decisional roles is that of a resource allocation. 4. Finally, managers are negotiators when conflicts arise. MANAGEMENT SKILLS Robert L. Katz, has identified three basic types of skills; technical, human and conceptual-needed by all managers. 1. Technical Skills – is the ability to use the equipment procedures and techniques of specialized fields. The manager needs enough “technical skills” to accomplish the mechanics of the particular jobs he’s responsible for. 2. Human Skills – is the ability to work with, understand and motivate other people, either as individuals or as group. Managers need enough of this human relation’s skill to work with other organization members and to led their own group. 3. Conceptual Skills – is the mental ability to coordinate and integrate all the organization’s interest and activities. Specialized Skills of the Manager include: 1. Organizational Skills – ability to conceptualize and apply the management process systemizes workflow, make decisions and communicate with co-workers. 2. People Skills – ability to manage people well, understanding their needs and work motivation necessary to accomplish the goals of the individual and the organization. 3. Financial management skills – ability to account and use the assets of the company effectively. 4. Technical skills – ability to put in operational parameters (lab results/service) the physical resources (supplies, equipment, facilities) Indication of Lack of Management Skills 1. Inability to maintain and adequate staff. The deficiency my be due to an insufficient number of trained workers or efficient use of the personnel available. 2. Recurring or persistent misunderstanding with hospital administration. 3. Frequent or recurrent confusion concerning requisitions or reports of laboratory work. 4. Frequent “rush” orders for supplies. 5. Low morale in the laboratory. Indication of Lack of Management Skills 6. Requests for deserve pay raised by competent workers (when funds are available). 7. Excessive cost of operations. 8. Ignorance of the cost of operations. 9. Expenditure of much manager’s the time in making minor decisions. 10. Inability to do more tests when a key individual has a day off.  Management Levels 1. First Line Managers – this is the lowest level in an organization responsible the work of others. They direct operating employers only; they do not supervise other managers. (Supervisors / Training Officers) 2. Middle Managers – this can refer of more than one level in an organization. They direct the activities of other managers and sometimes also those operating employees. Their principal responsibilities re to direct the activities that implement their organizations policies and to balance the demands of their supervisors with the capacities of their subordinators. (Chief MLS/MT and Pathologist) 3. Top Managers – this is composed of a comparatively small group of executives. They are responsible for the overall management of the organizations. It established operating policies and guides the organizations interactions with its environment. (Medical Director)  Managerial Performance Peter Drucker, argued that a manager’s performance can be measures in terms of two concepts: efficiency (doing things right) and effectiveness (doing the right thing). Efficiency - ability to get things done correctly. Input-Output Concept Managers who are able to minimize the cost of the resources they use to attain goals are acting efficiently. Effectiveness – ability of the manager to choose appropriate objectives. Manager who selects an inappropriate objective – convert the laboratory into automation when the hospital cater to the poor community is not an effective manager. MANAGEMENT BY OBJECTIVES (MBO) First introduced by Peter Drucker in 1960’s which incorporates the principles of planning, operating, directing and controlling and provides mechanism to bring these concepts into everyday practice. The heart of MBO is SETTING OBJECTIVES. The cord of the MBO Program is COMMUNICATION. It’s success and failure depends on how well employees understands the company’s mission and objectives. Effective MBO Programs requires managers to be participatory in their leadership style, that is managers who allow their employees to share in their decision-making process. Characteristics of Objectives in MBO Programs 1. Follow well-thought-out plans and long-term goals. Although objectives are short-term by nature, they should be an orderly part of the continuing management review cycle and should not be set according to aimless, arbitrary and hastily decisions. 2. Be based on a collaborative agreement between manager and employee. This provides accountability and ownership of the objective by the manager and employee as well. They should identify and accept the expected result. Characteristics of Objectives in MBO Programs 3. Be within the power of the individual to accomplish Objectives must be realistic and attainable, yet at the same time encourage employee to reach toward their potential. 4. Be person-specific Individuality. Although objectives are the same for employees with similar jobs, objectives should customized so that members understand their roles in meeting the mission of the organization.  Characteristics of Objectives in MBO Programs 5. Be measureable This is the way of knowing when the objective has or has not been accomplished. The best way to measure is QUANTITATIVE such as the following: 1. Number of tests performed and new test implemented. 2. Laboratory budget and its variance 3. Employees turn-over rate 4. Repeat tests. 5. Instrument down-time 6. Turn around time 7. Have time frame – there should be assigned time period as to when work is to be completed. 8. Have built-in feedback mechanisms 9. Employees must know how they are progressing so that they can make timely and independent adjustments. IMPLEMENTATION OF AN MBO PROGRAM Three phase in implementing an MBO Program 1. Manager must set the goals and objectives for the organization I order to have a clear picture of what they wish to accomplish. 2. Objectives should be shared within the staff. Employees should be given the opportunity to develop their own priorities from the guidelines presented by the managers. 3. The manager and each employee must meet and come into mutual agreement on the goals and objectives of the individual. There should be a clear understanding of what is expected and how the employee’s work will be evaluated. MANAGEMENT PROCESS Henri Fayol - first proposed that the management process was a continuum of functions that the manager must perform to ensure smooth operations of the organization. Peter Drucker also established the five basic management operations which include : 1. Setting objectives 2. Organizing 3. Motivating and communicating 4. Establishing standards or measurements of performance 5. Developing people including managers themselves.  Four Main Functions of Management Process 1. Planning – “work out in advance.” this is the thinking and analyzing portion of the management process. During this phase, managers attempt to anticipate the future and either shapes it to their own ends to prepare for the coming changes. 2. Organizing – gather together the necessary resources and people and develop an organizational structure for putting the plan into action. 3. Directing – is leading where one sees the day-to-day tasks necessary to ensures smooth running of the laboratory. The human factor stage where leadership and management skills play a significant role. 4. Controlling – Measurement and feedback mechanism of the objectives. A process of checking up the goals/objectives established during the planning phase. Determine the success or failure and/or identify needed modifications. PLANNING The thought and analysis process that result in a formal strategy for realizing the goals of organization. “Before you can begin a journey, you must know where you are going.”  Concepts of Planning A plan is a predetermined course of action intended to facilitate the accomplishment of the task, work or mission. Planning and Controlling is inseparable; planning is looking ahead while Control is looking back. Planning  implementation of plans  Controlling (compare plans w/ result) Desirable deviations Undesirable deviations (corrective action) Planning is a methodical selection of a series or set of complementary action for the purpose of pursuing and improved position. It is deciding in advance what to do how to do it, when to do it and who’s gonna do it. It provides rational approach to pre-selected objectives.  PLANNING Identify goals Evaluate current situation Establish time frame Set objectives Forecast resource needs Implement plan Obtain feedback CONTROLLING ORGANIZING Instructions Formal Hierarchy Follow up modifications Informal relationships DIRECTING Leadership Time Allocation Steps in Planning 1. Identifying the goals Where or what does the institution wish to be? For example, in deciding on the direction of a laboratory during the planning process, managers might ask theses questions: -Does the laboratory wish to continue providing the same level of service or does the changing nature and mix of its patients and physicians require the development of new programs and services? - Has there been an increase in requests of certain procedures? - Is there a rise in the number and types of reference tests? - Do complaints continue to focus on specific areas? Steps in Planning 2. Evaluating the current situation. Knowing where you are and how you got there is essential in determining where you are going. One must have a clear understanding of available resources and how they can utilize it. This should include all personnel involved in the project and in the-decision making process. 3. Establishing time frame Goals must be achieved within an acceptable time period to make the plan realistic. Though most plans are limited by short-term constraints, steps can be taken to ensure that the situation improves over a longer period of time. This also enables the managers to plan where they want their organization in 1, 2, or even 5 years.  Steps in Planning 4. Setting Objectives It is imperative to distinguished goals and objectives. Goals are the broad long term ambitions of the organization; objectives are specific short-term standards that allow the manager to achieve goals. Furthermore, goal is difficult to determine exactly, when it has been achieved; objective is a specific benchmark to know whether the standards has been met. The four basic characteristics of a good objective are the following: 1. It is clearly defined and understood. 2. It is obtainable and realistic 3. It has strict time period in which it is to be accomplished 4. It is measurable. Steps in Planning 5. Forecasting Resource Needs A major consideration in the planning process is the – FEASIBILITY of the goal and each objective. The manager must consider the availability of current resources, possibility of obtaining the additional assets needed and eventually ends in the development of the laboratory’s budget both operational and capital. 6. Implementing the Plan It is necessary to design a STRATEGY for anticipating and overcoming an obstacles or impediments. Steps in Planning: Two Basic ways for implementing a plan or obtaining the desired performance a. Tools of persuasion, which focus on working with and though people. This is best described by listing key words such as communication, involvement, inclusion, education, training, cooperation, building confidence, support, consultation, feedback, sharing information and responsibility. b. Tools of control, which involve the allocation of resources. By virtue of a manager’s position and formal authority such as: (1) allocation of financial resources (selection of equipment and supplies and number of employees) through the budgeting process and (2) the process of staffing and scheduling of job assignments, managers can obtain and maintain management control.  Steps in Planning 7. Creating Feedback Mechanism A plan must have provisions for obtaining information on how project is progressing (progress report) so that needed revisions and corrections can be instituted. This requires collecting data for evaluation and planning cycle continues. Information can be obtained by: 1.Formal meetings between managers and co-workers to assess the current status and to make any necessary adjustments. 2. Monitor standards of performance are set to measure the progress of the plan. 3. Informal meetings and conversations with staff and customers can reveal problems and recommendations for improvements. 4. Analysis of the nature and types of problems that are encountered can be undertaken.  Nature and Importance of Planning To achieve the objective of any organization, planning has to take place. Competent planners make long-range plans (LRP), visualizing what goals must be realized at certain future dates. These long-range plans are broken into short-range plans (SRP), for time duration like daily, weekly, monthly, and annually, with the end in view of carrying out the long-range plans of the organization. Should deviations or changes are necessary, corrective measures are taken so that the long-ranged plan is achieved accomplish the objective of the organization. Short range plan Long Range plan  Values Derived from Importance of Planning Planning To offset uncertainty and 1. The achievement of the objective of change the organization in the most efficient and economical manner, thus To focus attention on maximizing profits. objectives 2. The use of efficient methods and the To gain economic development of standards necessary operation for accurate control. 3. Integration of activities of the different units in the organization toward goal-directed actions. 4. The reduction of emergency and unexpected problems. Indicators of Poor-Planning 1. Late submission of results/reports. 2. Idle machines 3. Materials wanted. 4. Some machines doing jobs that should be done by smaller machines. 5. Some laboratory personnel overworked, others are underworked. 6. Skills workers doing unskilled work. 7. Laboratory personnel fumbling on jobs for which they have not been trained. 8. Quarrelling, bickering, buck-passing and confusion. Benefits of Good Planning 1. Jobs turn on time. 2. Good relationship with other departments. 3. People using their highest skills. 4. Workers know how their jobs fit into the total pattern. 5. Machines doing their proper jobs. 6. Equipment in good shape. 7. Materials available. 8. Waste kept to a minimum. Qualities of Good Planning 1. Good judgment, imagination, foresight and experience. 2. Ability to evaluate laboratory opportunities and hazards. 3. Proficiency in the determination of the objective. 4. Ability to accept changes.  Types of Plans (Hierarchy of Plans) 1. Purpose or mission – organization’s purpose or fundamental reason for existence. Broad Declaration of the basic, unique, purpose and scope of operations that distinguishes the organization from other of its type. 2. Objectives – are the end toward which planning, organizing, staffing, leading and controlling are aimed. 3. Strategies – denotes a general program of action implying commitment of emphasis and resources to attain broad objectives. 4. Policies – general statements of understanding which guides or channel thinking and action in decision making. 5. Procedures – plans that established a required method of handling future activities. Instructional document provides step-by-step directions. Types of Plans (Hierarchy of Plans) 6. Rules – they are required actions chosen from among alternatives. 7. Programs – they are complex of goals, policies, procedures, task assignments steps to be taken resources to be employed and other elements necessary to carry out a given course of action. 8. Budget – it is a statement of expected results expressed in numerical terms. THANK YOU FOR LISTENING  PREPARE FOR A LONG QUIZ