CHAPTER 18

FINANCIAL PLANNING MODELS

A set of mathematical relationships that expresses the
interactions among the various operational, financial, and
environmental events that determine the overall results of
an organizations activities.

Budget administration is composed of a

budget director or chief budget officer.
The budget director or chief budget officer
is the organizations controller.. The
director specifies the process by which
budget data will be gathered, collects the
information, and prepares the master
budget.

e-Budgeting
It is an increasingly popular internet-based
budgeting tool that can help to streamline and
speed up an organizations budgeting process.
Thus, e-Budgeting is just one more area where the
internet has transformed how the workplace
operates in the era of e-Business.
Examples:
OutlookSoft
Cognos
WebFOCUS

It is used in a wide variety of organizations.

Under zero-based budgeting, the budget for
virtually every activity in the organization is
initially set to zero. To receive funding during
the budgeting process, each activity must be
justified in terms of its continued usefulness.
Zero-based-budgeting
approach
forces
management to rethink each phase of an
organizations operations before allocating
the sources.

Since almost all the worlds currencies

fluctuate in their values relative to each other,
this makes budgeting for those translations
difficult.
First, a multinational firms budget must reflect
the translation of foreign currencies into a
single currency.
Second, it is difficult to prepare budgets when
inflation is high or unpredictable.
Finally, all economics of all countries fluctuate
in terms of consumer demand, availability of
skilled labor, laws affecting commerce and
other factors.

Recent focus of the budgeting process is to plan

for all the costs that will be incurred during the
introduction of a new product into the
marketplace before a commitment is made to the
product.
Five phases for the introduction of a new product:
1.) Product planning and concept design
2.) Preliminary design
3.) Detailed design and testing
4.) Production
5.) Distribution and customer service

A budget affects virtually everyone in the

organization - those who prepared the
budget, those who use the budget to
facilitate decision-making, and those who
are evaluated using the budget.

Two key issues:

Budgetary slack
Participative budgeting

BUDGETARY SLACK: PADDING THE BUDGET

Budget padding means underestimating or
overestimating costs.
Budgetary slack is the difference between
the revenue or cost projection that a
person provides and a realistic estimate of
the revenue or cost.

BUDGETARY SLACK: PADDING THE BUDGET

Three primary reasons why people pad budget
with budgetary slack:
People often perceived that their performance
will look better in their superiors eyes if they
can beat the budget.
Budgetary slack often is used to cope with
uncertainty.
The third reason is that budgetary cost
projections are often cut by others in the
resource allocation process.

PARTICIPATIVE BUDGETING
The idea of participative budgeting is to
involve
employees
throughout
the
organization in the budgetary process. Such
participation can give employees the feeling
that this is our budget rather that the alltoo-common feeling that this is the budget
you imposed on us.

While participative budgeting can be very

effective, it can also have shortcomings.
Too much participation can lead to vacillation
and delay.
When those involved In the budgeting
process
disagree
insignificant
and
irreconcilable
ways,
the
process
of
participation
can
accentuate
those
differences.
The problem of budget padding can be
severe unless incentives for accurate
projections are provided.

The End

CHAPTER 24

 All pharmacists and pharmacy organizations are

marketers of:
GOODS

AND

VALUE-ADDED
SERVICES

Prescription

Dispensing Prescriptions

Over-the-Counter
Medications

Delivery

Durable Medical
Equipment

Drug Utilization
Evaluation/Review

Candy

Disease State Management

Greeting Cards

Medication Therapy
Management

Wide Variety of Other

Items

A major challenge for any pharmacist or organization is

to: IDENTIFY ITS CONSUMER and EVALUATE THEIR
NEEDS.

APPLYING BUSINESS PLANNING

PROCESS TO PHARMACY SERVICES
BUSINESS PLANNING helps decision makers
evaluate their markets and environment.
It gives the managers to explore new ideas
without having to invest their resources in
actually developing and offering the product.
Identify risks and assess the likelihood that a
new product will be successful.

APPLYING BUSINESS PLANNING

PROCESS TO PHARMACY SERVICES
Applying the business planning process to the
development of value-added is not that
different from how the process is used to
evaluate any other good, services or idea.

APPLYING BUSINESS PLANNING

PROCESS TO PHARMACY SERVICES
BUSINESS PLANNING PROCESS
(1) Identify the organizations strategic plan and
mission statement.
(2) Explore the prospects for various types of
value-added services.
(3) Learn more about potential services that have
been identified.

EVALUATING THE MARKET FOR

PHARMACY SERVICES
In evaluating potential professional services, it
is essential to consider the CHARACTERISTICS
of the market where they will be offered.
When pharmacists think of potential
consumers of their value-added services, the
first (and often only) group they think about is
PATIENTS.

EVALUATING THE MARKET FOR

PHARMACY SERVICES
When planning for value-added pharmacy
services, pharmacist often classify consumers
into one of the 3 Ps:
Patients
Physicians and other Healthcare
providers
Payers

EVALUATING THE MARKET FOR

PHARMACY SERVICES
TYPES OF CONSUMERS OF VALUE-ADDED PHARMACY SERVICES
PATIENTS

PHYSICIANS

PAYERS

Patients with PARTICULAR

DISEASE STATES

PRIMARY CARE PHYSICIANS

(e.g. family medicine,
general medicine, internal
medicine and pediatricians)

PRIVATE INSURANCE
COMPANIES

Patients who have

MULTIPLE DISEASE STATES

SPECIALISTS (e.g. cardiology

and endocrinology)

HMOs
PPOs

Patients who are NOT WELL- PHYSICIAN ASSISTANTS,

CONTROLLED ON EXISTING NURSE PRACTITIONERS and
THERAPY
NURSES
Caregivers of children,
elderly, and invalid

DENTISTS, PODIATRISTS and

VETERINARIANS

Government programs (e.g.

Medicare, Medicaid)
Employers

CAN A PHARMACY MEET THE NEEDS

OF CONSUMERS?
One way that business planners can begin to
answer this question is to perform a SWOT
ANALYSIS.
SWOT ANALYSIS (i.e., strengths,
weaknesses, opportunities, and threats) has
applications in both strategic and business
planning

CAN A PHARMACY MEET THE NEEDS

OF CONSUMERS?
In STRATEGIC PLANNING, managers perform SWOT
Analysis on a broad level, looking at the entire organization.
In BUSINESS PLANNING, strengths, weaknesses,
opportunities and threats are evaluated only at the level of
the service being considered.
STRENGTHS and WEAKNESSES are considered to be
INTERNAL to an organization and are the easiest to initially
evaluate.
OPPORTUNITIES and THREATS generally exist EXTERNAL to
an organization.

CONCLUSION
Pharmacies, like any other business or organization, cannot
build new value-added services with the hope that consumers
will adopt them.
Pharmacy managers can use business planning as a tool to
evaluate consumer needs, the marker, and their own
resources before deciding whether to offer value-added
services and which services would be most likely to succeed.

While using the business planning does not guarantee that a

new value-added pharmacy services will be successful, the
process helps pharmacy managers manage the risks involved
in this increasingly important area of their own organizations.

Customer Service Defined

Delivering good service requires the following:
solving customer problems with no
hassle.
Solving customer problems promptly.
Providing people who know what they are
doing.
Providing people empowered to solve
customer service problems.
Treating people with dignity and empathy.
Correcting mistakes when they are made.

The service encounter

Service encounter- is the interaction

between service organization, the
service provider, and the customer.

Also known as moment of truth.

Characteristics of services
The customer is a participant in the
service
With rare exemptions, the customer is
always present at least for some part of the
process. Although a patient may not be on
the site when prescription is filled there is
generally an interaction of some kind
between the pharmacist and the patient or
the patients agent

Services are produced and

consumed simultaneously.
Services cannot be produced ahead of
time and stored in inventory. A filled
prescription cannot be put into inventory
because it is custom designed product for
specific patient.

Services are perishable.

A service that is not used is lost forever. An
empty airline seat is revenue lost forever,
and a pharmacy without patients is an
expense without compensating revenue.

Services site location is dictated by

the consumer.
For convenience and access, the site must
be located where consumers are
concentrated.

Economics of scale are difficult to

achieve in services.
While there may be optimal size for
efficiency in a pharmacy, a single
pharmacy in rural country is unlikely to
achieve that size.

Standardization of services is
difficult.
An effective communication with one type
of patient may be totally inappropriate for
another.

Services are labor-intensive.

While the backroom operations of a
pharmacy likely will be completely
automated some day, the final counseling
session always will require human
interaction.

Output is difficult to measure.

The number of patients seen in a given
period obviously can be counted, but
assessing the quality of the interaction is
problematic (adapted from fitzsimmons
and fitzimmons 1994).

Standards for evaluating services

Reliability- the ability to perform the
promised service dependably and
accurately.
Responsiveness- the willingness to
help customers and provide prompt
service.
Assurance- the knowledge and
courtesy of employees and their ability
to convey trust and confidence.

Empathy- the caring, individualized

attention provided to customers.
Tangibles- the appearance of physical
facilities, equipment, personnel, and
communication materials (Berry,
Parasuraman and Zeithaml).
Of this dimensions, reliability is the most
highly valued by consumers. Nothing
fancy is required; just do what you say you
will do.

TIME MANAGEMENT/ ORGANIZATIONAL

SKILLS

TIME MAGEMENT
a subset of the whole person-personal and professional goals
or missions in life, personality, communication style and other
traits.

STEPS/THEMES IN PRACTICING
BETTER TIME MANAGEMENT

Recognize the need for improvement

Conduct an honest self-reflection or analysis of how you currently use your time.

Establish your mission and set goals.

Get organized (sort through tasks, create a master list, schedule tasks, use a system).

Take action.

Review, revise and modify.

Recognize the need for improvement

the recognition that ones behavior needs to change or a person desires to change his or her behavior.

Conduct an honest self-reflection or analysis of how you currently use your time.

asking yourself some key questions can also help to identify the problem areas and how you should best plan
your time based on your personal preferences and style.
Ex.
Why am I doing this?
What is the goal?
Why will I succeed?

Woodhull suggests that identifying your time management style will help you to better know how to use
your unscheduled time, or white spaces. She describes the four basic types of time managers:

LEADERS - above all value getting the job done and moving forward. Their communication style is direct and
succinct. They are experts at making quick decisions.

ANALYTICS value getting task done with precision and accuracy, pay a lot of attention to detail. Their style is
systemic. They use facts, logic and structure.

RELATERS believed that getting along with others is the most important thing. They dislike making decisions that
affect others.

ENTERTAINERS are the one who generates new ideas that are keeping the companies alive, entertainers do not like
having a precise, predictable schedule.

Establish your mission and set goals.

Setting short and long-term personal and professional goals is critical to help determine priorities and stay
focused.
According to Covey, a personal mission statement is the most effective way to begin with the end in mind.
Your personal mission statement, or philosophy or creed, focuses on what you want to be and to
do and on the values and principles upon which being and doing are based.
Goals should be: S specific
M measurable
A achievable
R realistic

T timed

Get Organized
Organizing your life and keeping it that way are the absolute best way to save time and feel good about
how you use your time.
Steps to get Organized:

Sort through Tasks

Create a Master list

Prioritize Tasks

Schedule tasks

Use a System

Two factors that define any activities:

How urgent it is

How important it is

Urgency, refers to activities that require attention, urgent activities require

Importance on the other hand requires to be proactive

us to be reactive.

Take Action, Plan your work and then Work your plan always keep the big picture in mind,
think of the goals that you want to achieve and how completing a task will help you do that.

Three actions to help you stay focused and disciplined:

1.

Minimize interruptions (unexpected events and their impact.

2.

Conquer procrastination and chronic lateness

3.

Overcome perfectionism

Review, Revise, Modify

it is important to review all the steps that you went through to determine if your
system is working well.

CONCLUSION
the goal of this chapter was to raise awareness about the importance of time
management and organizational skill is to improve their strategies and skills on
how we handle properly the hindrance or obstacles in life.

FINANCIAL REPORTS

By: Grace V. Monte de Ramos

Phoebe Cates S. Baylosis

INTRODUCTION
As Mathematics is the language of the physical
sciences, accounting is the language of business.
The American Institute of Certified Public
Accountants(AICPA) defines accounting as a se i e
activity, whose function is to provide quantitative
information, primarily financial in nature, about
economic entities intended to be useful in making
e o o i de isio s.

REVIEW OF ACCOUNTING PRINCIPLES

Accounting Principles are essential tools that can
be applied in all areas of pharmacy practice (Stickney,
1999). This is so because any pharmacy, just as any other
type of organization, engage in three fundamental
activities:
*Obtaining financing
*Making investments
*Conducting a profitable operation

REVIEW OF ACCOUNTING PRINCIPLES

Obtaining financing
- To Start a business, one needs to acquire assets. Financing
activities to acquire assets involve obtaining funds from owners
and creditors.
Making Investment
- The type of investment a company makes depend largely
on the type of business it is conducting.
Conducting a profitable Operation
-We started this cycle by obtaining financing for our
business. We invested those funds to acquire needed assets.

THREE ESSENTIAL FINANCING STATEMENT

Most organization use a number of different financial
statements. However, there are three types of financial
statements that are essential to the operation of any
organization.

THREE TYPES OF FINANCIAL STAEMENTS

* THE BALANCE SHEET
*THE INCOME STATEMENT
*THE STATEMENT OF CASH FLOWS

THREE ESSENTIAL FINANCING STATEMENT

Balance Sheets
- S apshots of the fi s i est e t assets a d ho they a e
fi a ed lia ilities a d o e s e uity.
Income statement
-is a dynamic document that provides information about money
coming into an organization (income) and money necessary to obtain that
income (expenses).the difference between income and expenses is commonly
referred to as net income ,net profit, or earnings.
Statement Cash Flows
-Connects the beginning and ending balance sheets by indicating the
i pa t of the o pa ys i est e ts, fi a i g, a d ope atio s o ash flo s.
Three Categories
*Operating , Investing , and Financing

FINANCIAL RATIOS
Organizations, investors, creditors, and
even individuals use financial ratios to examine
a o ga izatio s fi a ial pe fo a e.

TYPES OF RATIOS
*Profitability Ratio
*Liquidity Ratio
* Turnover Ratio

TYPES OF RATIOS
Profitability Ratio
- Since an inherent goal of any business is to be profitable, we can view
profitability ratios as measure of overall success in the daily operations of a
business.
Liquidity Ratio
-Liquidity ratio provide information on the business ability to meet its
short-term financial obligations. The most popular liquidity ratio are the current
ratio and the quick ratio.
-The current ratio is the ratio of current assets to current liabilities.
Turnover Ratio
-Turnover ratio measure the efficiency with which an organization uses its
assets. They are also referred to as efficiency ratios or asset utilization ratio. The
two most commonly used turnover ratio are inventory turnover and I receivables
turnover.

FINANCIAL REPORTS
FINANCIAL REPORTS IN COMMUNITY
PHARMACY PRACTICE :
Used in independent pharmacy
practice are very similar to those used in
chain community pharmacies.

FINANCIAL REPORTS IN HOSPITAL

PHARMACY PRACTICE
Used to manage the department
of pharmacy in hospitals are often quite
different from those used in community
pharmacy practice. The budget for a
hospital pharmacy consist primarily of
drug cost and labor ( pharmacists,
technicians, and administrators) and is a
part of the global budget of the entire
hospital).

THANK YOU

Is ability to mobilized and inspire others, it is

not solely about the title or position.

Is a the process of influence in which one

person is able to enlist the aid and support of
others in accomplishing a common task.

Leadership can be found both formally and

informally organizational level.
Formal Leaders

Formal power

Informal Leaders

Informal power

The ability to articulate a compelling vision of

the future.
Integrity
Encouragement of others
Curiosity, daring, and taking calculated risk.
Focus
Confidence Patience - To be a good leader, you cannot
major in minor things, and you must be less
distracted than your competition. To get the
few critical things done, you must develop
incredible selective ignorance

Autocratic make decision independently,

without engaging or consulting others.
Democratic value fair process and tend to
give all members organization an opportunity
to weigh in with their preferences
recommendation.
Laissez-faire provide critical resources and
information but tend to provide little
direction.
Transformation the social and spiritual
values can be employed to raise employees to
even higher levels of performance and
motivation.

Leaders
1.Innovate
2.Ask what and why
3. Focus on people
4. Do the right thing
5. Develop
6. Inspire trust
7. Long-term perspective
8. Challenge the status quo
9. Eye on the horizon 10.
Originate
11. Their own person
12. Show originality

Managers
1.Administer
2. Ask how and when
3. Focus on systems
4. Do things right
5. Maintain
6. Rely on control
7. Short-term perspective
8. Accept the status quo
9. Eye on the bottom line
10. Imitate
11. Emulate the classic
good solider
12. Cop

Myers-Briggs Type Indicator

The Strength Deployment Inventory
The Watson-Glaser Critical Thinking Appraisal
The Thomas Kilmann Conflict Mode Instrument
The StrengthsFinder Profile
360-Degree Feedback
Q12

LEADERSHIP ROLES FOR PHARMACY STUDENTS AND PHARMACISTS

Pharmacists and pharmacy students have unlimited

opportunities to become leaders within their individual
practice settings; pharmacy professional organizations on
the local, state, and national levels; the overall health care
profession; and their communities.

Leadership in each of these areas is important to provide

effective patient care, to enhance the quality of life of
patients, to advance the profession of pharmacy, to make
for a healthier community and for the pharmacists own
self-worth and actualization. .

Is ability to mobilized and inspire others, it is

not solely about the title or position.

Is a the process of influence in which one

person is able to enlist the aid and support of
others in accomplishing a common task.

Leadership can be found both formally and

informally organizational level.
Formal

group.

Leaders - base on the position in the

Leaders is the ability of a person to

influence the behavior of others.

Informal

The ability to articulate a compelling vision of

the future.
Integrity
Encouragement of others
Curiosity, daring, and taking calculated risk.
Focus
Confidence Patience - To be a good leader, you cannot
major in minor things, and you must be less
distracted than your competition. To get the
few critical things done, you must develop
incredible selective ignorance

Autocratic make decision independently,

without engaging or consulting others.
Democratic value fair process and tend to
give all members organization an opportunity
to weigh in with their preferences
recommendation.
Laissez-faire provide critical resources and
information but tend to provide little
direction.
Transformation the social and spiritual
values can be employed to raise employees to
even higher levels of performance and
motivation.

Leaders
1.Innovate
2.Ask what and why
3. Focus on people
4. Do the right thing
5. Develop
6. Inspire trust
7. Long-term perspective
8. Challenge the status quo
9. Eye on the horizon 10.
Originate
11. Their own person
12. Show originality

Managers
1.Administer
2. Ask how and when
3. Focus on systems
4. Do things right
5. Maintain
6. Rely on control
7. Short-term perspective
8. Accept the status quo
9. Eye on the bottom line
10. Imitate
11. Emulate the classic
good solider
12. Cop

Myers-Briggs Type Indicator

The Strength Deployment Inventory
The Watson-Glaser Critical Thinking Appraisal
The Thomas Kilmann Conflict Mode Instrument
The StrengthsFinder Profile
360-Degree Feedback
Q12

LEADERSHIP ROLES FOR PHARMACY STUDENTS AND PHARMACISTS

Pharmacists and pharmacy students have unlimited

opportunities to become leaders within their individual
practice settings; pharmacy professional organizations on
the local, state, and national levels; the overall health care
profession; and their communities.

Leadership in each of these areas is important to provide

effective patient care, to enhance the quality of life of
patients, to advance the profession of pharmacy, to make
for a healthier community and for the pharmacists own
self-worth and actualization. .

Medicare Part D
Provides an opportunity for even more people to access third-party coverage
for prescription drugs.

Is the government-sponsored prescription drug insurance program initiated

in 2006.

Medicare Part D Programs

originally included:
Coverage for medications provide in hospital and doctors offices.
But not for outpatient medications that are
typically dispensed in community pharmacies.

Basic Alternative Coverage

Is alternative prescription drug coverage that is actuarially
equivalent to defined standard prescription drug
coverage.

Enhanced Plans
Are prescription drug plans whose value
exceeds the defined standard coverage.

Providing Gap Coverage

These plans may offer lower deductibles, reduced
coinsurance or copayments, and/or reduction in cost
sharing in donut hole.

Medication Therapy Management

Is a quality improvement activity required by CMS of the contracting plan
sponsors that provide the Part D prescription drug insurance for individual
who are considered high users of Medicare services.

Goals of MTM
To enhance understanding of medication
Improve medication adherence
Reduce adverse drug events

Advantages of Medicare Part D

Increased dispensed prescriptions

Increased access to needed medications for Medicare-eligible individuals
MTM available for high users of medications
Tricare access standard ensures access to Pharmacy

Subsidies available for low-income enrollees

Disadvantages of Medicare Part D

Reduced reimbursement per prescription

Largest cash-paying client base eliminated
Reimbursement can be slow
Assignment of dual eligible to Part D plans resulted in eligibility delays

To many plans resulted in patient confusion

3 Key Resources that Pharmacist must manage

to effectively integrate Part D
People
Money

Also effectively:

Plan
Organize
Take action

Evaluate their activities to monitor the impact of Part D

PERFORMANCE
APPRAISAL SYSTEM

WHAT ARE PERFORMANCE APPRAISAL

SYTEMS?

It is the formal assessment of how well employees are

performing their jobs

It is a way of formally communicating the organization
mission and goals
A foundation on which to establish formal channels of
communication
A method on which to base organization reward, and
A tool to improve the performance of each and every
employee within the organization

Managers have cited performance appraisals as

performance reviews

THE RATIONALE FOR FORMAL PERFORMANCE

APPRAISAL SYSTEM
LEGAL
Title VII of the Civil Reform Act
Age Discrimination in Employment Act
COMMUNICATIVE
Ensures understanding of performance expectations by
managers and staff
Provides formal means for employees to voice concerns
and make suggestions for system improvement
Indicates managements commitment to open dialogue
and fairness

THE RATIONALE FOR FORMAL PERFORMANCE

APPRAISAL SYSTEM (continuation)
PRODUCTIVITY OF LABOR
Provides direction to employees on how to improve
Establishes an environment conducive to self-motivation
Assists employees with career planning
Promotes satisfaction and elicits commitment of
employees
Mitigates turnover

THE RATIONALE FOR FORMAL PERFORMANCE

APPRAISAL SYSTEM (continuation)
EQUITY IN REWARDS
Provides a means for accurate and equitable distribution
of organizational rewards
Provides recognition for past service
Helps to establish supports for terminating problem or
underachieving employees

THE RATIONALE FOR FORMAL PERFORMANCE

APPRAISAL SYSTEM (continuation)
OTHER MANAGERIAL FUNCTIONS
Supplies evidence to review organizational and system
problems
Provides data on recruitment and selection procedures
Identifies deficiencies in orientation and traibing progrmas
FINANCIAL POSITION
Assists in reducing operating costs
Avoids costs litigation
Reduces replacement costs

TYPES OF PERFORMANCE
APPRAISAL SYSTEM
SYSTEM

BRIEF DISCRIPTION

ADVANTAGES

DISADVANTAGES

RELATIVE
- Alternation ranking

Rater selects most

and least valued
employee from
remaining pools of
employees

Eliminates leniency
and central tendency

Limited feedback,
perceptions of bias

Paired comparisons

Each employee is
compared with every
other employee one
at a time on each
criterion

May appear to be less

subjective that
alternation ranking

Limited feedback

Forced distribution

Rater categorizes
employees into one of
three groups
according to how well
they meet
expectations

Eliminates leniency
and central tendency

Limited feedback,
skewing

TYPES OF PERFORMANCE
APPRAISAL SYSTEM (continuation)
SYSTEM

BRIEF DISCRIPTION

ADVANTAGES

DISADVANTAGES

ABSOLUTE
- Essay

Rater prepares a
written statement
describing the
employees strength
and weaknesses

May provide rich data

Differences across
raters, lack of
objectivity

Critical incident

Rater maintains a
record of incidents
indicative of both
positive and negative
behaviors of the
employee

Derived from
documented data

Burdensome and
subject to
interpretation

Checklist

Rater answers with a

yes or a no series of
questions about the
employees behavior

Easy to complete,
indicative of specific
behaviors

Less precision

TYPES OF PERFORMANCE
APPRAISAL SYSTEM (continuation)
SYSTEM

BRIEF DISCRIPTION

ADVANTAGES

DISADVANTAGES

ABSOLUTE
- Graphic rating

Rater indicates
various employee
traits and behavior on
a scale

Often based on trait

measures

Leniency, central
tendency, use of traits

Behaviorally anchored
rating scales

Rater employs highly

descriptive scales to
indicate employees
tendency to
demonstrate desirable
behaviors

Quantitative,
conducive to
supplying feedback

Central tendency,
burdensome

360 degree feedback

Employees rate
themselves and
comparisons are
made with ratings by
various stakeholders

Multiple points of
view, facilitates
reflection

Very time-consuming,
subject to role conflict

Forced choice

Rater ranks a set of

statements describing
the employees
performance

Mitigates bias

Irksome to raters,
feedback is
challenging

TYPES OF PERFORMANCE
APPRAISAL SYSTEM (continuation)
SYSTEM

BRIEF DISCRIPTION

ADVANTAGES

DISADVANTAGES

OUTCOMEORIENTATED
-

Management by
objectives

Rater establishes
goals for the
employee to achieve
during the next
period, and employee
is evaluated on his or
her success

Highly participatory
and incentive-driven

Employees evaluated
by different standards

Work standards
approach

Rater set a standard

or an expected level
of output and
compares each
employees
performance to the
standard.

Evaluation is more
standardized

Standards may be
viewed as unfair

EXAMPLES OF HOW TO IMPROVE WORK

OBJECTIVES IN PHARMACY
POOR to maximize the number of prescriptions

dispensed
BETTER to increase the average daily prescriptions
volume by 10 percent at the end of the year
POOR to make as few dispensing errors as possible
BETTER to commit no dispensing errors that result in
an untoward event during the next 6 months.
POOR to get all medications up to the floors more
quickly

HUMAN RESOURCES
MANAGEMENT
FUNCTIONS

The practice of pharmacy management

consists of a wide range of complex tasks that

involve either managing people or managing
nonhuman resources.

Human Resources Management

- managing people
- defined as the process of achieving

organizational objectives through the

management of people

Tasks of HRM:
- Recruiting employees
- Hiring employees

- Training employees
- Developing employees

- Firing employees

LAWS AND REGULATIONS

INFLUENCING HRM

Federal Civil Rights Act of 1964

- primary piece of legislation affecting HRM
practices
- prohibits discrimination in employment hiring,
promotion, compensation, and treatment of
protected employee groups

LAWS THAT AMEND OR SUPPLEMENT THE

FEDERAL CIVIL RIGHTS ACT OF 1964

Title VII of the Civil Rights Act of 1991

- prohibits discrimination on the basis of the race

and places the burden of proof on the employer

Age Discrimination Act of 1967

- protects employees 40 years of age and older
from discrimination

American with Disabilities Act of 1990

- prohibits employer discrimination against qualified
individuals who are labeled as disabled

Family and Medical Leave Act of 1993

- requires employees of 50 years or more employees
to guarantee employees 12 weeks of unpaid leave per
year

Equal Employment Opportunity Commission

- created in 1972 with an amendment to the Civil

Rights Act
- monitors discrimination and file lawsuits to correct

discriminatory practices in the workplace

- responsible for affirmative action

RECRUITMENT AND
PLACEMENT

Recruiting
- consists of all activities associated with
attracting qualified candidates to fill job vacancies

Placement
- refers to candidate application, screening,
interviewing, selection, and hiring processes

Application
- first step in hiring for a candidate is to fill out a job
application

Two Purposes of Job Application:

- Help screen unqualified candidates
- To provide background about the candidate for the

interview

Screening
- a process that attempts to weed out unqualified
applicants from the pool of potential candidates

Job Analyses
- are systematic reviews of the requirements of a job

Interviewing
- scheduled when qualified candidates are

identified

* Preparation for an interview is important for the

interviewer as it is for the candidate.

Interview Preparation Steps

1. Send information about the position to the candidate

2. Identify interview objectives.

3. Review the position description and performative

standards.
4. Develop a list of interview questions.

5. Study the applications and resumes.

6. Schedule a quiet, uninterrupted interview.

Different Ways of Interview:

1. Traditional interview
2. Situation (role-play) interview
3. Stress interview
4. Behavioral interview

Selecting Candidates
- good notes about each candidate

Hiring
- first step in the HRM process

Table 9-3

Interview Mistakes that may Immediately

Exclude a Job Candidate from
Consideration

Arriving late
Dressing inappropriately
Poor body language
Arrogance
Self-serving questions
Ignorance about the hiring organization and job itself
Irritating speech patterns such as not speaking clearly or an
overreliance on slang words
Failing to answer questions asked

THANK YOU

A community pharmacy is typically a for-profit

organization that must be concerned with its
financial position to remain solvent over the
long term.
Community pharmacist must also conduct their
business as an ethical manner.

 The

pharmacy profession has

experienced numerous environmental
changes that affect the work experiences
of pharmacy personnel. These include:
- higher prescription volume
- greater complexity in third-party
reimbursement
- increasing professional emphasis on
pharmaceutical care
- implementation of automated
dispensing technologies.

A pharmacy organizations effectiveness

often is limited to the productivity of its
technicians and other support personnel.
Pharmacy technician, for example, are
now beginning to take responsibility for
more functions, including drug
preparation, order entry, and managing
technology (Collins, 1999).

Evaluating pharmacist performance

may be more challenging than
evaluating technician performance
because of pharmacists greater levels
of autonomy and responsibility.
This may be further compounded by the
presence of the disparate roles various
pharmacists may play within
organization.

It may be fruitful to gather information

from costumer, or patients, when
evaluating pharmacists for the services
they provide.

1.

Preparing the Employee for the Interview

- an appointment should be made with the

employee well in advance, at least 3 to 4 weeks.
- the employee should be provided with a
copy of the position description and
corresponding performance standards, a copy of
the evaluation form used in the appraisal
process, a copy of the report of the previous
formal reviews, departmental/organizational
objectives for the current and subsequent year,
and instruction on how to prepare for the
meeting.

2. Planning for the Interview

- the manager should enter the
interview well informed of prior appraisals
and be intimately familiar with the
responsibilities of the employees job.
- the manager should also have
appropriate documentation and evidence
to support claims of the employees
performance, particularly in areas of
deficiency but also in areas of strength.

3. Conducting the Interview

- the interview should be conducted in
the following sequence:
1. Review and update the position description
and performance standards
2. Discuss the performance ratings assigned to
the employee using the prescribed appraisal form
3. Highlight strengths and accomplishments
since the previous appraisal
4. Discuss objectives that were not reached
since the previous review
5. Discuss future performance and assist with
career planning.

- The manager should established a

comfortable, professional atmosphere and
maintain a positive tone when conducting
the interview.
- they should be careful not to
stereotype or prejudge certain employees.

- A pharmacy manager must carefully

consider the advantages and drawbacks
of each type of appraisal system.
Reliability is another word for consistency,
inferring that the system produces similar
results in multiple iterations.

Validity implies that the system is

measuring what is purports to measure.
Implementing the System
- a primary consideration when
implementing a system is how frequently to
conduct the formal appraisal. Rating
periods usually are annual, either on the
employees anniversary of hire date or
during a rating period in which all
employees are evaluated, the latter of
which is easier to implement.

Monitoring the System

- the effectiveness of the appraisal system
itself should be monitored. Certain indicators
can be helpful, including the quality of
performance standards, effective use of
appraisal results, tracking of the raters, and
elimination od adverse impact.
Quality of performance standards refers to
the standards being specific, challenging,
realistic, dynamic, understandable, and
consistent in organizational goals.

Use of performance appraisal results

refers to how well these results are tied with
rewards and recognition and to what extent the
appraisal process has contributed to improved
performance among all employees.
Tracking the raters consists of reviewing
the ratings awarded by individual raters and
giving them feedback concerning the quality of
their ratings, which may be overly stringent,
lenient, or biased in someway in comparison with
other raters.

Adverse Impact refers to a

performance appraisal system whose use
results in significantly lower ratings for
members of any protected group.

Organizational rewards consist of both intrinsic

rewards and extrinsic rewards. Proper allocation of
both is critical for varied reasons.

Recent evidence rejects a popular view that

satisfaction leads to performance. It does suggest,
however, that (1) rewards based on current
performance enhance subsequent performance
and (2) job dissatisfaction leads to turnover,
absenteeism, tardiness, accidents, grievances, and
strikes.

Managers also must address individual equity and

allocate certain rewards (e.g pay increases,
promotions, and formal recognition) in a manner
that corresponds with the right types of behaviors.
Other suggestions for allocating rewards are as
follows:
1. Consider the presence of
performance constraints
2. Provide a clear distinction, between cost-ofliving, seniority, and merit pay increases
3. Enlist trust among employees
4. Make merit pay substantial
5. Be flexible in scheduling rewards
6. Effectively communicate merit and total pay
policy to employees

Giving Praise

- support from managers need to be confined

to the formal appraisal period.
- employees should be instructed immediately
when they demonstrate the behaviors detrimental to
the organization or if they are not performing to
standards, as long as it is done in a professional
manner.
- managers should also consider following up
praise with an official memo and boasting of the
employee to colleagues so that it may get back to
him or her indirectly.

Other benefits
- Pharmacy managers may consider the use of
other strategies to recognize and reward good
performers:

Offers to pay for attendance at a local continuing

education program.
Provide funding for attendance at a national conference.
Offer to offset the cost of professional recognition and
certification processes for pharmacists and technicians.
Fund membership in a professional association.
Buy lunch
Allow someone to represent you at an important meeting.
Assign tasks with greater levels of responsibility if the
employee is ready to handle them.

THIRD-PARTY PAYER
CONSIDERATIONS

OVERVIEW OF THE IMPACT OF THIRD-PARTY

REIMBURSEMENT IN PHARMACY
Pharmacy managers and owners are forced to make difficult decisions
about whether to accept or reject third-party plans

THIRD PARTY- an organization that reimburses a pharmacy or patient for

all or part of the patients Rx drug costs.

- may be public or private.

PRIVATE-PAY PATIENTS
Cash patients, are people who have any health insurance

coverage or people who have health insurance that does not

cover Rx drugs. This type of Rx drug insurance, called
INDEMNITY INSURANCE, used to be common, but it now has
been replaced largely by Services benefit plans.

MEDICARE
it is the government program that provides health insurance for the
elderly and disabled.

MEDICARE PART D

mixed public and private third party because the govt regulates
the benefit, but private 3rd parties deliver the benefit INSURES and
PBMs usually have pharmacy networks in which pharmacies must
accept the 3rd partys reimbursement rate in order to participate in
the network.

THIRD PARTY REIMBURSEMENT FOR

PRESCRIPTION DRUGS
Reimbursement rate or price
is based on a reimbursement- rate formula that specified in

the contract between the Pharmacy and third party payer.

PRODUCT COST TERMINOLOGY

Actual acquisition cost (AAC)
Average manufacturer price (AMP)
Average wholesaler price (AWP)
Estimated acquisition cost (EAC)

Maximum allowable cost (MAC)

Wholesaler acquisition cost (WAC)

ACTUAL ACQUISITION COST (AAC)

It is the price that the pharmacy pays to purchase drug
product. Third parties would like to base their reimbursement
to AAC but are unable to do so because the AAC is proprietary
information that pharmacies do not disclose to third parties.

ESTIMATED ACQUISITION COST (EAC)

product cost portion of the third-party reimbursement rate is
an estimate of AAC.
AWP- is the price that the wholesaler charges to
pharmacies,but in reality AWP is the list price rather than the
actual price.

MAXIMUM ALLOWABLE COST (MAC)

an average cost to obtain the generic drug product. It may
also be used for all multi-source drugs in some 3rd party
plans.
Multi-source drugs- these are drug product that have at least
one generic equivalent available.

AVERAGE MANUFACTURER PRICE (AMP)

defined as the average price received by a manufacturer from
wholesalers for drugs distributed to the retail class of trade.

Retail class of trade

- It refers to entities that purchase drugs for sale to the general
public.
Evaluating the Financial impact of 3rd-Party Reimbursement

EVALUATING THE FINANCIAL IMPACT OF

THIRD PARTY REIMBURSEMENT
To examine how third party reimbursement affects a
pharmacys financial performance.

2. How will this service be priced? Are our pricing objectives

generates financial returns, capture market shares, or meet
the competition?
To determined the pricing objectives, a
pricing structure should be decided on.

Issues related a pricing structure:

* Should a standard list price be
charged?
* Should large customer get the same
base price?
* Does the time of purchase affect the
price?
* Should customers who value the
service more highly be charged a higher prices?
* Are there any discount?

3. How will the service be delivered?

Where will facilities be located?

Is the single site the best choice, or are
multiple sites required

Is the internet a viable option?

4. What will facility look like

interior,
exterior, decor, signage, lightning, etc.? How will
the employees be presented?
- Appearances,
- serve to shape first impressions,
-convey trust,

- convey an image.

5. Who actually will deliver the services? How

will they be trained , promoted, and motivated?
- A significant issue with professional
services is one of compensation.

Is based on:
-Profitability of work output

- Profitability of work supervised

- Client satisfaction as to work output

Strategy
- A long range, plan, a pattern, of decisions, in pursuit of a goal.
- A well-designed service offering must fit within a strategic framework.
Business strategies develop in one of two ways
1st method intuitive and informal
2nd method formal and explicit
Winning strategies results of strategic thinking
-characterized by the ability to look at all the
obvious factors related to the business with the right perspectives while not
being influenced by fad or emotion.

When things go wrong : Strategic recovery

- dealing with and correcting errors and service

failure, is critical.

Issues

of what happens when things go wrong in the pharmacy.

1st catastrophic prescription errors

2nd non catastrophic prescriptions error
3rd service failure

 Catastrophic Prescription Errors

Define

as causing severe damage to a patient that is not easily

reversed.
For example, an error that results in a 4-days stay in a
hospital or worse.

It

affects more than just a victims and the involved practitioner.

- workers
- management
-Other consumer/patients
- regulators

- suppliers

*
Catastrophic medication errors, particularly when someone dies, are
newsworthy event. Some errors are not likely to remain secret.

As a result of the adverse public exposure, reputation will be

diminished
with potentially significant consequences for individual practitioners and
institution.

To rehabilitate individual and institutional reputations is an appropriate

message and response through the media.

In dealing with outside media, the choices are:

1) To say nothing at all
2) To deny or repudiate the charge
3) To claim no responsibility for the event
4) To minimize its impact
5) To admit and ask for forgiveness

There are two audiences for information following a medication

errors.

1st audience

General Public
which wants information about what's
going on and how it happened

2nd audience

Stakeholders

Who want to know how the crisis will affect their

interest and how management is doing.

No one can put a price on a human life nor adequately compensate for the
suffering that a catastrophic medication error.

Not one can really understand the impact of such an event on a

practitioner. What happens can never be undone.

A successful response to a catastrophic medication error proceeds through

the following stages:

Signal detection catastrophic medication errors should not be surprise.

Preparation and prevention - the best organizations do all they can to prevent
catastrophic medication error

Containment/damage limitation - the goal of this stage is to limit the immediate

damage.

Recovery - involves establishing procedures for short and long term business
recovery.

Learning reflection and critical examination of what happened aimed at

prevention.

*
Occurring frequently in the commence of pharmaceutical goods and
services are:

Noncatastrophic medication errors

- The damage is easily reversible

Service failure
- Technicians are rude, billings are late
Service

recovery is a process, a sequences of events beginning with the

recognition of a service failure or mistake, followed by series of interactions
between the aggrieved consumer and the service provider.

Bell and Zemke (1987) identified 5 elements for service recovery:

urgent reinstatement

apology
empathy

symbolic atonement

follow-up

Johnston (1995) Identified

the provision of information about the

problem and what is being done.

Paradox Services effective services recovery causes consumers to rate

an encounter more favourably

 Schweikhart and Strasser (1993) pointed out the problems of

services recovery in a health care context.

Those problems are:

1) Lack of a strong marketing tradition
2) The cost and time of implementing programs
3) Lack of organizational and professional readiness
4) The dilemma of who to target (The patient or the family)
5) Understanding what is an appropriate response


It is said that great companies treasure the goodwill of each
customer as if it were a valuable account.

Make sure that employees are empowered. Treat employees as you

would want them to treat your customer.

When things go wrong, fix the problem cheerfully and promptly.

Compensate people for their cost. Reassure them that it will never
happen again.

Treat them as you would want to be treated.

CHAPTER 18

 Developing

a budget is a critical step in planning

any economic activity.
This is true for pharmacy businesses, for individual
pharmacists, & for governmental agencies that
regulate both pharmacy businesses & individual
pharmacists.
Budget is a detailed plan, expressed in quantitative
terms, that specifies how resources will be acquired
& used during a specified period of time.

 The

procedures used to develop a budget

constitute a budgeting system.
1. Planning
2. Facilitating Communication & Coordination
3. Allocating Resources
4. Controlling Profit & Operations
5. Evaluating Performance & Providing
Incentives

Budget or profit plan is a

comprehensive set of budgets covering all
phases of a pharmacy organizations
operation for a specified period if time.

Master

Budgeted

Financial Statements or proforma

financial statements show how the
pharmacy financial statements will appear at
a specified time if operations proceed
according to plan.

 Capital

Budget
Financial Budget
Short-range Budgets
Long-term Budgets
Rolling Budgets also called as revolving
budgets or continuous budgets

Budget the principal output of a

budgeting system, is a comprehensive profit
plan that ties together all phases of a
pharmacys operations.

Master

Revenue starting point for any

master budget.

Sales

1 resource costs are assigned to

activities.

Stage

2 overhead costs are assigned to

costs objects.

Stage

THERE ARE OTHER FEDERAL LAWS ADDRESSING EMPLOYMENT

DISCRIMINATION. DISCRIMINATION BY THESE LAWS INCLUDES THE
FOLLOWING ASPECTS OF EMPLOYMENT.

HIRING AND FIRING

COMPENSATION, ASSIGNMENT, OR CLASSIFICATION OF EMPLOYMENT
TRANSFER, PROMOTION, LAYOFF OR RECALL
JOB ADVERTISEMNTS, RECRUITMENT OR TESTING
USE OF COMPANY FACILITIES, TRAINING, AND APPRENTICESHIP
PROGRAMS
PAY, RETIREMENT PLANS, DISABILITY LEAVE, FRIDGE BENEFITS, AND
OTHER CONDITIONS OF EMPLOYMENT.

 REASONABLE ACCOMODATION Is any modification to the work

environment or job that will enable a disabled person to participate in the
application process or perform essential work.
THESE ACCOMODATION CAN INCLUDE:

JOB REDESIGN AND STRUCTURING

MODIFYING OR PROVIDINNG SPECIAL REQUIREMENTS
PROVIDING READERS OR INTERPRETERS
MODIFYING TRAINING PROGRAMS OR EXAMINATIONS

CAREER PLANNING Providing a stable, hospitable, and safe working

environment.
LEVINSONS STAGES OF CAREER DEVELOPMENT
Age Ranges
Life Stages
Characteristics
17-22
Early adult transition
Transition from adolescence through
exploring and experimenting with a
different roles and career choices
Mainly through course work and
practical experiences.
22-28

Entering adulthood

Experimenting w/ different job

settings, stabilizing relationship, and
possibly starting a family.

Age Ranges
28-33

33-40
career
40-45

Life Stages
Age 30 transition

Settling down

Midlife transition

Characteristics
Reassessing initial career choices
and a sense of exigency to stabilize
important life choices.

Rapid progress in pursuing

occupational goals and focus on
Time of questioning and reevaluation
of life and career choices that can be
stressful and lead to a focus on
redoubling efforts toward career or
change in career and values.

45-60

Middle adulthood

Directing for focus on developing

network interests on reaping the
benefits and consolidating the gains
of a lifetime of career focus.

60 and above Late adult era

Preparation for retirement, planning

possible part time work.

Average Net Profit

Comparison

The average cost of goods sold per prescription is subtracted from the average price or average
reimbursement rate to give the average gross margin.
Gross margin may also be referred to as gross profit.
The average net profit can be calculated for all prescriptions dispensed at the pharmacy , for selected
third-party plans , or for a particular third party plan before and after a change in reimbursement.

Differential Analysis
A differential analysis compares the differential revenue (marginal) with the
differential cost of dispensing a prescription for a selected third party plan.

The differential revenue minus the differential cost is called the contribution
margin.

The differential revenue is the average gross margin, and the differential
cost is the variable cost per prescription.

Other Considerations in Evaluating a Third

Party Contract

The effect of the decision on pharmacy customers, if the decision is made to reject
the contract , customers who have that third party mat be forced to go elsewhere
to obtain their prescriptions.
Pharmacy image is another concern. Some Pharmacies want to avoid the
reputation of being a Pharmacy does not accept many insurance plans and this
image may occur if a large third party contract is declined.
Another critical factor to consider is the signal that the pharmacys decision sends
to other third parties.
One last factor to consider is the effect of the decision on the other sources of
revenue.

RESPONDING TO REDUCTION IN THE THIRD

PARTY REIMBURSEMENT
Decreasing third party reimbursement is a common occurrence, and
pharmacies need to develop strategies to maintain their profit levels as
reimbursement rate decrease.

 One source revenue is to increase prescription volume by attracting new

third-party or private pay customers.

Another strategies for Pharmacies to consider is diversifying their sources

of revenue. One possible source of revenue is payment for pharmacist
cognitive services, either from patients or from third party.

HIRING
In most cases a candidate cannot be
hired until personnel department
completes a reference check. It is
important that the pharmacy Dept. be
involved in the process to ensure that
the offer is not mishandled.
Hiring is just a first step in the HRM
process.

Training and Development

-A a agers job is to help staff members to
succeed at their jobs. One key task in employee
success is Training.
-Training benefits both organization and
employees.
-The purpose of training is to help employees
meet the changing demands of their jobs.
Excellent pharmacy service organization invest
in the training and development of their
employee.

Training comes in two primary forms:

Orientation and Job Training.
-The purpose of Orientation training is to
welcome new employees, present a positive
first impression, provide information that will
permit them to settle into their new
responsibilities
and
establish
new
expectations of performance and behavior

Job Training helps current employees learn new

information and skills to do their jobs and
refresh capabilities that may have diminished
over time.
Pharmacy organization formally or informally
may employ a type of training called job
rotation, is designed to give an individual
broad experience through exposure to
different areas of the organization.

Development
-Development requires a long-term focus by preparing for
future needs of the individual or organization.
Professional development typically consists of answering
the following questions: (1) What is my present
situation? (2) Where do I want to be? (3) What skills,
knowledge, and training do I need to get where I want to
be?
-Development differs from training in that it requires a
greater intensity of education and instruction.

Performance Feedback
Types of Performance Feedback
Day to day feedback- This refers to the verbal and
visual message provided daily to employees
through conversations, body language, and
behaviors. Daily communication is the most
effective performance feedback because it is
immediate and often.

The following is a list of suggestions for

providing useful daily feedback to
employees:
Practice management-by-walkingaround(MBWA).
When practicing MBWA, listen more than talk.
Focus on the positive.
Take notes
Make individual see your presence as helpful

A second form of feedback comes through the

E ployees a ual or se ia ual
performance reviews. Annual performance
reviews acts as long-term planning sessions
where managers help employees to review
their previews progress, identify successes
and areas that need improvement, and
established goals and objectives for the next
year.

The final form managerial feedback comes

from reviews scheduled ad hoc in response to
certain particularly good or bad performances.
Good ad hoc performance reviews are
designed to provided recognition for
outstanding performance and may be
accompanied by some award or gift.

Progressive Discipline
Progressive discipline is defined as a series of acts
taken by management in response to unacceptable
performance by employees. The role of progressive
discipline is to escalate the consequences of poor
employee performance incrementally with a goal of
improving that behavior.

Verbal Warning
A verbal warning is a formal oral reprimand about the
consequences of failing to perform as expected. A
manager might verbally warn a technician that she is
performing below expectations in regard to tardiness
and that if performance is not improved, further
disciplinary action may be warranted. Verbal
warnings are relatively common and often the only
action needed to correct unacceptable employee
performance.

Written Warning
If an employee does not respond to a verbal warning,
a more formal written warning is issued.
A written warning is the first formal step in
progressive discipline that may result in eventual
discharge of the employee. It differs from verbal
warnings, which are relatively informal acts that only
require the manager to note the time and place of
the reprimand and what was discussed. A written
warning is a legal document that can end up as
evidence in a court case.

Suspension
Suspensions are punitive actions meant to demonstrate
the seriousness of a situation. Sometimes written
warnings do not result in improved employee
performance and need to be backed up by actions.
Suspensions are meant to act as a final warning that
current behavior is unacceptable. Like written
warnings, they must be crafted carefully to include
previous warnings, requirement for future actions,
and consequences for not improving behavior (e.g.,
termination).

Termination of Employees

Procedures for terminating employees differs depending on

the circumstances. For newly hired employees who are on
probation (i.e., a trial period for assessing new employee),
the process of progressive discipline ordinarily does not
need to be followed. The employee can be terminated at
anytime during the probationary period if it is clear that the
employee will not succeed in the job. The steps of verbal
warning, written warning, and suspension are not
necessary before termination.

Prior to the termination meeting, the manager must be

certain that all the following statements are true:
The employee is not being terminated for anything but poor job
performance or breaking major rules (e.g., theft or fighting).
The reason for termination can be stated in measurable, factual
terms.
The employee has been given specific feedback regarding the
performance deficiency in measurable, factual terms.
The orga izatio s policies a d procedures regardi g discipli e have
been observed and actions documented.
The employee has been given ample opportunity to correct the
poor performance.
Employee treatment is consistent with similar situations of
employee performance.
The personnel department has been kept inform throughout the
disciplinary process and is currently aware of plans to terminate the
employee.

Conclusion
Good HRM is an important requirement for providing excellent
pharmacy services. Pharmacy Personnel who are well managed
are more likely to be satisfied in their jobs, effective and
productive. Good HRM in health care fields enhances the
likelihood that patients will be better served and achieved better
health outcomes. Any pharmacist who is serious about serving
patient and the profession needs to be committed to good HRM

PERSONAL FINANCE

TEVES

THE FINANCIAL PLANNING

PROCESS
It would be very difficult for home builder without a blue print.
Likewise, it is difficult for people to reach financial goals without planning.

PERSONAL FINANCIAL PLANNING

Is the process of managing ones money to achieve economic satisfaction.

The primary purpose of this process is to allow one to control ones financial
situation by identifying and developing a plan to meet specific needs and
goals.

SIX STEPS OF FINANCIAL PLANNING PROCESS

(KAPOOR ET.AL.)

Step 1.

Determine your financial situation

- savings, living expenses, income, and debts.

- this step requires that one prepare a list of current asset and debts
balances, along with present expenditures.

Step 2
- Develop financial goals

- differentiates persons needs and wants.

- this analysis involves identifying how one
feels about money.

- are priorities based on social pressure, needs

and desire.
- food, shelter and trnportation.

Step 3

Identify Alternative Courses of Action

Continuing along the same course of action.

Expanding the current situation.

Changing the current situation.

Taking a new course of action.

Step 4

Evaluate Alternatives

People need to evaluate from along their

possible course of action.

> life situation, personal values, current

economic conditions.

- Every decision you make has a concequences

or opportunity cost.

Step 5

Create and Implement a Financial Action

Plan.

Develop action plan

Goals are already decided

And decision must be made on how to

achieve them.

Step 6

Reevaluate and Revise Your Plan

PFP Is a dynamic process.

Changing personal, social, and economic

conditions may require a more frequent
review.

PERSONAL FINANCIAL
STATEMENTS

Tell you where you are in your financial journey.

Personal balance sheet

- determine the present financial statement

- what is owned (assets). What is owed (liabilities).

Cash flow statement

where did all my money go?

The inflows and out flows of cash during a period

of time.

Budget

spending plan

Use to make adjustments to your monthly

cash flows and spending habits.

Blueprint of future expenditures

CONSUMER CREDIT

Charge it

Put it in my account

Add to my student loan

Credit is an arrangement to receive cash,

goods, or services now pay for them later

ASSET CLASSES AND ASSET

ALLOCATION

Risk and risk tolerance

To receive a higher returns, one must take

greater risk

Two basic source of risk

Changing economic condition

Changing conditions of the security issuer.

Changing economic condition

1.

Inflation risk inflation increases

2.

Business cycle risk your investment mirror

the fluctuation in the business cycle.

3.

Interest-rate risk occur when interest rises

TIME VALUE OF MONEY

Any sum of money today can be invested to

earn interest and thereby grow to a larger
amount.

END