L2: Planning

Planning

• Involves thinking and organizing activities to achieve a desired goal.

• Also known as forethought

• This is collection and analysis

• this is the decision support

• this is the application & evaluation

Henry Fayol

• First to issue a complete statement on a theory of general management.

• his contribution was management principles and elements

Division of Work

the whole work must be divided into specialized tasks

Parity of Authority & Responsibility

right to give orders to subordinates

Parity of Authority & Responsibility

responsibility means obligation to perform the work in manner desired and directed by authority

Span of Control

number of subordinates that report directly to a single manager/ supervisor

8-20

how many employees can lower level manager can oversee?

4-8

how many employees can upper level manager can oversee?

Unity of Command

employee should report & receive orders from one supervisor only

Unity of Direction

efforts of all members & employees of organization must be directed into one direction to achieve one common goal

Scalar Chain

Line of authority or chains of superiors from highest to lowest

Gang plank

managers can talk to each other, to avoid any delay in communication

Subordination of Individual Interest to General Interest

interest of organization must supersede the interest of individual or employees

Subordination of Individual Interest to General Interest

interest of employees should not prevail over the interest of the business

Centralization

authority is at the top level

Decentralization

dispersal of authority

Stability of Tenure

Management must provide the feeling of job security among the employees

Stability of Tenure

employees should be given enough time and period to prove his worth to the company

Esprit de corps

“Union of strength”

Esprit de corps

emphasizes the need for teamwork and importance of communicating in obtaining it

Esprit de corps

developing feeling of belongingness among the employees as they must feel themselves as the member of organization.

Simplicity

unnecessary elements should be eliminated from all activities as well as from the process and procedures established for carrying them

Order

There should be orderliness on everything and everyone

order

everyone working in an organization should be allocated a particular place of work

Equity

manager should neither favor any subordinate nor neglect them

remuneration

employees should be paid fairly to give them satisfaction

remuneration

equal pay for equal work

Strategic Planning

Purpose is to ensure the organization is doing the right things; covers all aspects of the organization.

Strategic Planning

Long-term (5-20 years), external viewpoint

Operational Planning

Purpose is to ensure the organization is prepared for immediate tasks and objectives; focuses on day-to-day tasks

Operational Planning

Short-term (1-5 years), internal viewpoint

Business Planning

Purpose is to determine the feasibility of a specific business or program; used for decisions about investigating in and moving forward with a program

Business Planning

Short-term (1-5 years)

Resource Planning

Ensure the resources necessary to achieve the goals and strategy of the organization; the resource needs of the organization

Resource Planning

midterm (1-10 yrs), internal viewpoint

Organizational Planning

organized properly to meet challenges of the future such as reporting, relationships, def. of responsibilities, and def. of authorities; how the company organizes itself

Organizational Planning

midterm (1-10 years), internal viewpoint

Contingency Planning

To provide a fall back option should the original strategy fail; this occur when there’s business related crisis

Contingency Planning

short to long term (1-20 years); both external and internal

Short-term Planning

Used for decisions like starting, expanding, or terminating a business

Short-term Planning

Focuses on immediate goals and strategies.

Midterm Planning

Specific to defined resources in the plan, internal viewpoint focusing on organizational resource needs.

Vision Statement

what the pharmacy organization wants to be at some future time point

Vision Statement

used in the planning process as both the beginning point and the end point

Mission Statement

Defines the purpose and present activities of the organization; Creates a sense of purpose for employees.

Mission Statement

It should help to differentiate the company from others that provide the same products or services

Core Values

defines the organization in terms of the principles and values the leaders will follow in carrying out the acts of the org

Strategy

method’s of shaping a company’s future & involve determining the long run direction of the org

Strategy

A strategy outlines the basic steps and management intends to do to achieve its objectives.

Objectives

Direction at organizational or individual level, has something to do with the direction in which an individual/ org wants to move

Goals

prescribes a definite scope and suggest direction to maximize the efforts of a manager

Decision making

This is the process of choosing a specific procedure or course of action from among several possible alternatives. In the business world, economy, effort, personnel, and materials may be involved.

Preplanning Phase

can be defined as the steps necessary to organize the strategic planning effort-or "planning for the planning."

Planning phase

ideas are actively generated for the pharmacy organization. This may be referred to as strategizing

Planning phase

it is usually best to start with the destination in mind, as in planning a trip by viewing a map

Planning phase

This phase includes three vitally important steps: (a) communicating the plan, (b) implementing the plan, and (c) monitoring progress once the plan is implemented.

Planning phase

The actual implementation of the strategic plan requires managers and executives of the pharmacy organization to understand the long-range goals while at the same time determining and taking the steps necessary to accomplish the shorter-range objectives.