CHAPTER 1 THE MANAGEMENT PROCESS

UNIT 1: MANAGEMENT ORIENTATION

CHAPTER 1
THE MANAGEMENT PROCESS

ANAGEMENT is defined as the art and science of

planning, organizing, directing, and controlling human
efforts and resources for the general good within the
organizational framework and economic environment of the firm.

Management
is the force
that runs an
enterprise and
responsible
Management is a process which brings together resources and
for its success
unites them in such a way that, collectively, they achieve goals
and
and failure. It
objectives in the most efficient manner possible. - Tootelian and
is the
Gaedeke (1993)
performance
of conceiving
Management of a pharmacy requires focus, an organized effort to
and achieving
bring together all the resources available and uniting collectively
so
desired results
as to achieve the goals of the pharmacy in the most efficient
consisting of
utilizing
Management as applied in businesses and organizations it is defined
human talents
as:
and resources.
a. The function that coordinates the efforts of people to accomplish
goals and objectives using available resources efficiently and
manner possible.
effectively.
b. The organization and coordination of the activities of an enterprise
Why
take
in accordance with certain policies and in achievement of clearly
management
in
defined objectives
the
field
of
Pharmacy?

2.
3.
4.
5.

6.

1. The use of strategic planning both in hospital and

MANAGEMENT
community settings resulted to :
DEALS WITH
a. Higher sales and profitability
PEOPLE,
b. Significantly, I can offer more clinical or valuedESTABLISHING
AND ACHIEVING
added services and
OBJECTIVES. IT
c. Better administrative, distributive and clinical
IS USED IN
performance especially in hospitals
ALMOST
EVERY
Interdependence among departments/ groups resulted to positive
HUMAN
impact on the commitment of pharmacists.
ACTIVITY.
Studies showed that the pharmacists need more training during
their professional education in order to achieve excellence in clinical service.
A good pharmacy manager will benefit from a heightened sensitivity towards the need
of all patients and efforts to carry product that appeal to a specific population.
In foreign countries, a good pharmacist manager deals with issues regarding thirdparty payers (e.g. private insurers, government-sponsored programs) and so the
pharmacist must be able to identify which payer affords to provide quality patient care
while maintaining an appropriate level of profit.
The management-minded pharmacist looks for other opportunities to bring an
additional revenues and decrease expenses, effectively purchasing and maintaining
proper level of inventory and having appropriate amount and type of personnel needed
to do the job.

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CHAPTER 1 THE MANAGEMENT PROCESS

The different styles of management are as follows:

1. The Captain of Industry Style - this is represented by the strong individualistic person
who amassed a fortune through drive, hard work, ingenuity, and good luck.
2. The Human- Relations Style a management style that is made up of two major
events namely: growth in size; and strength of the unions.
3. The Hard- Nose Style - it is a style equipped with the techniques of scientific
management, large corporations were in a position to demand high standard of work
performance, thus lowering the unit of production cost.
4. The Management- by- Pressure Style - this style originated under the economic
conditions of World War II characterized by: increasing demand; prices and costs.
5. The Management- by- Objectives Style - it is a better method of management which
was based on the analysis of the defects of the other method
MBO can be described as follows:
1. A process whereby the superior and subordinate managers of an organization jointly
identify its common goals;
2. Define each individuals major area of responsibility in terms of results expected of him;
3. Used these measures as guides for operating the unit and assessing the contribution
of each of its members.
The Major premises of MBO are as follows:
1. Business management takes place within individuals firms, which collectively form a
major and integral part of the economic system.
2. MBO presumes that the first step in management is to identify the goals of the
organization which are consistent with the goals of society.
3. Once organizational goals have been identified, orderly procedures should be instituted
for distributing responsibility among individuals in such a way that their combined
efforts are directed toward achieving those goals.
4. MBO assumes the managerial behaviour should be defined in terms of results rather
than in terms of overall goals for the entire organization.
5. It also presumes that while participation is highly desirable in goal- setting and
decision- making, its principal merit lies in its social and political value rather than its
effects on productivity, though even have it usually has a favourable impact.
6. It regards the successful manager as a manager of defined situations, which fall within
the overall purpose and scope of the firm or organization.
The essence of management is decision-making.
The different principles of decision- making are:
1. One needs to give patience, time and thought to decision- making, especially when
one is on unfamiliar ground.
2. Weighing the gain versus risk principle.
3. Anticipation in terms of results and problem arising from the decision.
4. Decisions are best made when there is a master plan to guide the manager.
5. Balance the urgency of the decision against the deliberation.
Factors of decision- making process are:
1. Identifying and defining the problem.
2. Analyzing it.
3. Developing alternate solutions.
4. Deciding the best solution.
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CHAPTER 1 THE MANAGEMENT PROCESS

5. Converting the solution into effective action.

THE MANAGEMENT PROCESS
1. PLANNING
It includes assessment of internal resources;
PLANNING is the
establishes goals; develops general policies and
formulation
of objectives,
procedures and develops business strategies.
programs, policies,
The most critical element of management. Without a
procedures, rules and
business plan, the pharmacys operation will have no
regulations in order to
purpose and no direction, therefore no achievement.
achieve the goals of the
Difficult, because it focuses on unknown future.
business.
It is related to decision Requires assumptions that may or may not come
making as it selects the
true.
Flexible, allows changes as conditions
best-course
of action to
warrants, but part of the objectives it to influence
follow.
It
also
involves
conditions and turn it to the pharmacys advantage.
forecasting or making
Factors to consider are:
decisions in advance.
An introspective look at the pharmacys current
strength and weaknesses.
Planning is used to
accomplish
the present
An evaluation of the environment within which
objectives
and its
the pharmacy operates, the strength and
relationship
in
the future.
weaknesses of its competitors.
Formulations of objectives (long and short term)
o Long term more than 5 years
o Short term 1 to 3 years (The achievement of short-term objectives helps the
pharmacy move closer to its long-term goals.)
It requires development of strategies using business functions and clinical activities to
achieve the established goals.
Types of Plan
o Strategic Plan
Defines broad goals and their implementation over the long term.
Normally comes from the organizations top management (5 years and beyond)
o Operational Plan
Supports strategic plan
It outlines actions to be performed by each functional area.
o Units Plan
Supports both strategic and operational plan
May include action statements for specific events
e.g. facilities expansion, reorganization, new product development.
Activities of planning
o Developing objectives
Establish the results to be accomplished.
o Forecasting
Estimate and practice future conditions and events.
o Programming
Establish the sequence and priority of action step to be followed in achieving
objectives.
o Scheduling
Establish a time sequence for program step.
o Budgeting
Allocate resources to achieve an objective within specified period of time.
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CHAPTER 1 THE MANAGEMENT PROCESS

Developing policies
Establish standing decision that applies to concern to the enterprise as a
whole, in achieving its objectives.
o Establishing procedures
Standardize the work that must be done uniformly if the objectives are to
be achieved.
Steps in Planning
1.
Know the objective.
2.
Breakdown the work to be done into component activities.
3.
Group the activities into practical units.
4.
For each activity or group of activities to be performed, define clearly the duties
to be carried out and provide the physical means and environment required.
5.
Assigned qualified personnel.
6.
Delegate the required authority to the assigned personnel.
o

2. ORGANIZING
ORGANIZING

It involves identifying tasks to perform; arrange

grouping together of
tasks on logical order; combine task into
people,
establishing
appropriate groups; designate employees into
relationship
among
them, and defining the
groups; provide authority and responsibility; and
authority
and
lastly, define methods for evaluation accountability.
responsibility
that
the
Organizing is defined as a process of identifying all
personnel have.
the tasks to be performed within the pharmacy and
then grouping them in logical way.
3 steps:
The different areas are:
1. identification
or
Financial
grouping of the
work done
Human
2.
delegation
of
Material resources
authority
and
Common mistake in smaller pharmacies is for the
responsibility
manager to assume that, all employees understand
3. establishment
of
their individual tasks.
relationships
among them
Related terms include:
Delegating - the work of a manager is to
entrust others with responsibility and authority and to
create accountability for results.
Authority the sum of the rights and power assigned to a position.
Accountability the obligation to perform responsibility and exercise
authority in conformance with understood and accepted
performance standards.
3. STAFFING
It determines position to be filled; prepare job
description; identify sources of potential applicants,
search for applicants, interview applicants, select
applicants, orient new employee to job, train new
employee, evaluate new employees performance.
Staffing involves determining the human resource
needs of the pharmacy, identifying sources of
possible employees, screening applicants and
selecting the ones most qualified.

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STAFFING involves
filling and keeping
filled the positions
provided
in
the
organization structure
Steps:
1. Recruitment
2. Selection
3. Compensation
4. Training

CHAPTER 1 THE MANAGEMENT PROCESS

It is highly qualitative process. As such, the manager must have both technical
knowledge of the jobs to be performed as well as the feel for the human
element of how people will fit in their work environments.
4. DIRECTING
A process which sets personnel goals; establishes work standards; develops
leadership style; motivate personnel, trains and retrains personnel; evaluate
personnel; discipline and dismiss personnel as necessary, promote personnel.
Directing involves keeping personnel and other resources focused on the goals
of the pharmacy and ensuring that they are used in a manner consistent with
the policies established by the owner. While planning, organizing, and staffing
are undertaken periodically, directing goes continuously.
It is a process of finding different ways to keep personnel productivity and
motivated to achieve the goals of the pharmacy.
It is challenging task that often separates the highly competent from the less
skilled managers.
CONTROLLING is
5. CONTROLLING
the
process
of
Controlling is the most overlooked management
measuring
and
process since, it is commonly assumed that the
correcting
the
process is sufficient to ensure that the pharmacy is
activities
of
operating effectively and efficiently. It involves
subordinates and the
periodic assessments of the status of the
company
itself
to
pharmacy.
assure conformity to
It also establishes points for periodic monitoring of
plans.
pharmacy; measure pharmacy performance, examine strategies and
recommend changes as appropriate, develop annual performance
measurement, and evaluate annual performance of pharmacy.
The following are ways in which control can be maintained:
A. Quantitative
1. Financial statements to determine if revenues and expenses are
within budgeted limits
2. Inventory
B. Qualitative
1. Evaluating levels of patient satisfaction
2. Employee performance
The most important consideration in CONTROLLING is monitor the pharmacys
progress as it moves through the fiscal year.
When properly used, CONTROLLING is the managers fail- safe mechanism.
It identifies problems and opportunities in their early stages so as to provide
time to take appropriate actions. In this way, many problems can be eliminated
or at least alleviated and opportunities can be taken advantage of while it still
exists.

The Ms of Management
1. Manpower (Men) conveys a strong and purposeful economic activity by individuals
who form the so called staff.
2. Money
3. Methods
4. Materials
5. Machines

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CHAPTER 1 THE MANAGEMENT PROCESS

6. Markets clients, target- community to saturate for profitability. This is where the
competence of management meets its severest test.
7. Motivation the driving force which moves individuals and groups toward their
objectives.
Based on the management levels, here are the types of managers:
1. First-level managers are the lowest level of management. These are the
production supervisors, clerical supervisors, school supervisors, or hospital
supervisors. They supervise workers or employees.
2. Middle managers lead the activities of the supervisors, and in some cases, those of
the workers. These are the branch managers, projects managers, farm managers,
or finance managers.
3. Top managers are the top executives of the organization. They are involved in the
operations of the whole organization. These are the presidents, chief executive
officers, or senior vice presidents.
Managers Roles
In performing the various functions of management, a manager assumes various roles.
These are inherent behaviours for any manager of any kind of organization. Roles are
patterns of behaviour that are expected of an individual in doing his functions. There are ten
basic roles displayed by managers. These are:

Leadership
Entrepreneurship role
Figurehead role
Liaison role
Monitor role
Spokesperson role
Disseminator role
Resource allocator role
Disturbance handler role
Negotiator role

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CHAPTER 1 THE MANAGEMENT PROCESS

TYPES OF MANAGER:
Manager by kayod
(Hard work and dedication;
introvert and formal)

Manager by ugnayan
(Thoroughly situational;
integrative; a recorder; ideal Pinoy
manager

Manager by oido (by ear,

based on practical experience;
pragmatic)

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Manager by lusot (Avoids

This
much work; extrovert and
corridor
informal)
is for
manage
rs who
are
PROCE
SSORIENT
ED;
This
intereste
corridor
d in how
is for
to do the
manag
job;
ers who
mostly
are
impleme
CONTE
nters
NTand
ORIEN
doers
TED;
interest
ed in
to
Manager by libro (bywhat
the books
and established rules;do and
why;
systematic and analytical)
mostly
planner

WORKAHOLIC

RECONCILER

PRAGMATIC

CAREFREE

THEORETICAL 7