Lesson+2+-+Management+Functions (1)

Lesson Overview

• Preparing for the Future: Students will learn about planning, management significance in pharmacy, and the management process.

Management Functions

• Objectives: At the end of the chapter, students should be able to:

  • Define planning

  • Explain the significance of studying management in pharmacy

  • Examine the management process and accepted functions of management

Planning Defined

• Planning: The process involving the development, organization, and evaluation of activities to achieve a goal.

Steps in the Planning Process

Initial Steps

• Step 1: Orient the planning process towards a singular direction (Vision/Mission).

• Step 2: Assess the organization’s current situation.

Goal Setting

• Step 3: Set Goals.

• Step 4: Identify strategies to achieve these goals.

Objective Establishment

• Step 5: Establish objectives supporting goal progress.

• Step 6: Define responsibilities and timelines.

Communication and Monitoring

• Step 7: Write, communicate, and discuss the plan with all involved.

• Step 8: Monitor progress towards goals and objectives.

Important Notes on Planning

• Planning begins with understanding the organization’s purpose.

• The process of planning changes based on the type and size of the organization.

• Future goals guide the strategy to bridge the present and future.

• Communication and execution of the plan are vital for success.

Principles of Management by Henri Fayol

Overview

• Henri Fayol was a French industrialist credited with creating foundational management theories.

The 14 Principles

1. Division of Work: Specialized jobs for increased efficiency.

2. Authority and Responsibility: Accountability linked to authority.

3. Discipline: Ensures adherence to rules for effective organization.

4. Unity of Command: Each employee should report to one superior.

5. Unity of Direction: Teamwork toward common objectives is crucial.

6. Subordination of Individual Interest to General Interest: Business interests take precedence.

7. Remuneration: Fair compensation to maximize satisfaction.

8. Centralization: Ensuring major decisions are centralized.

9. Scalar Chain: Clear hierarchy for efficiency.

10. Order: Proper organization and allocation of resources.

11. Equity: Fair treatment of all employees.

12. Stability of Tenure: Promote a stable workforce.

13. Simplicity: Eliminate unnecessary complexity in processes.

14. Esprit de Corps: Promote team spirit and harmony.

Types of Planning in Pharmacy Organizations

Types and Characteristics

1. Strategic Planning: Long-term planning affecting all organization aspects (5-20 years).

2. Operational Planning: Short-term plans for daily actions (1-5 years).

3. Business Planning: Assesses profitability for specific programs (short-term).

4. Resource Planning: Ensures availability of resources for goals.

5. Organizational Planning: Coordinates internal structure for effectiveness.

6. Contingency Planning: Prepares alternative strategies for unforeseen events.

Barriers and Limitations to Planning

Limitations Identified

• Lack of reliable data.

• Psychological barriers.

• Rigidity against change.

• Inadequate time and resources for proper planning.

• Constantly changing environments.

Why Managers Fail in Planning

Common Reasons for Failure

1. Lack of commitment to the planning process.

2. Interchanging studies with actual plans.

3. Poorly defined objectives and goals.

4. Insufficient support from top management.

Strategic Planning Explained

• Strategic Planning is about identifying the organization's long-term direction, shaping its future through well-defined goals and policies.

• It involves understanding the company's mission and vision, creating structured objectives.

Objectives and Goals

• Objectives serve at organizational, departmental, or individual levels to guide efforts.

Various Planning Types

• Strategic: High-level, long-term plans.

• Tactical: Short-term implementation to achieve strategies.

• Operational: Day-to-day running of the organization.

Management by Objectives (MBO)

• A system aligning superior and subordinate managers on shared goals.

• Focus on collective responsibility and measurable contributions.

Decision-Making in Management

• Decision-Making: Choosing actions from alternatives based on past experiences.

• Important to weigh risks against potential gains.

Summary

• Effective planning involves understanding organizational goals, being adaptable to change, and ensuring communication at all levels.