MANAGEMENT FUNCTIONS

PLANNING
PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
 GOALS
Desired future circumstance or condition that the
organization attempts to realize

PLANS
Blueprint for goal achievement and specifies the necessary
resource allocations, schedules
 SELF-ASSESSMENT

Does Goal Setting Fit Your Management Style

BEHAVIOR STATEMENTS MOSTLY MOSTLY
TRUE FALSE
1. I have clear, specific goals in several areas of my life.
2. I have a definite outcome in life that I want to achieve.
3. I prefer general to specific goals.
4. I work better without specific deadlines.
5. I set aside time each day or week to plan my work.
6. I am clear about the measures that indicate when I have achieved a goal.
7. I work better when I set more challenging goals for myself.
8. I help others people clarify and define their goals.
 PLANNING
• Process of developing, organizing, and evaluating the
activities required to achieve a desired goal
• Core management activity
• Choosing a goal and developing a method or strategy to
achieve a goal
• Represents the purposeful efforts taken by an organization
to maximize its future success
BENEFITS OF PLANNING
SOURCE OF MOTIVATION AND COMMITMENT

• Can reduce the uncertainty for employees and clarify what they should accomplish

RESOURCE ALLOCATION

• Help managers decide where they need to allocate resources, such as employees, money and
equipment

GUIDE TO ACTION

• Focused attention on specific targets and direct employee efforts towards important outcomes

SET A STANDARD OF PERFORMANCE

• Establish performance criteria so managers can measure whether things are on- or off-track
 There is no better way
to improve the performance of the people
who work for a company than to have them set goals
and develop strategies for achieving those goals.
LEVELS OF PLANS
 ORGANIZATIONAL GOALS
MISSION
• Organization’s reason for existence
• Describes the organization’s values, aspirations, and reason
for being
• Basis for development of subsequent goals and plans
 ORGANIZATIONAL GOALS
MISSION STATEMENT
A broadly stated definition of the organization’s basic
business scope and operations that distinguishes it from
similar types of organizations.
ORGANIZATIONAL GOALS
 ORGANIZATIONAL GOALS
VISION
The University of Santo Tomas Hospital envisions itself as a center
of excellence in medical education, training, research and
healthcare services guided by Catholic principles and teachings.

MISSION
The University of Santo Tomas Hospital commits itself to:
• The education, training, clinical research and professional
growth and development of future healthcare professionals
• The delivery of affordable, reliable and holistic healthcare
services to all, especially the poor, by competent, ethical and
compassionate healthcare professionals
• The provision of up-to-date equipment, facilities and
infrastructure with patient-friendly systems and processes
• The practice of good planning and management of resources
ORGANIZATIONAL GOALS
 ORGANIZATIONAL GOALS
STRATEGIC GOALS
Broad statements describing where the organization wants
to be in the future
STRATEGIC PLANS
• Action steps by which the organization intends to attain strategic goals
• Blueprint that defines the organizational activities and resource
allocations required for meeting these targets
• Long-term, and may define organizational action steps for between
2-5 years
 ORGANIZATIONAL GOALS
TACTICAL GOALS
Results that major divisions and departments within the organization
intend to achieve
TACTICAL PLANS
• Designed to help execute major strategic plans and to accomplish a
specific part of the organization’s strategy
• Have a shorter time horizon of about a year or so
 ORGANIZATIONAL GOALS
OPERATIONAL GOALS
Specific results expected from departments, work groups and individuals
OPERATIONAL PLANS
• Developed at the lower levels of the organization to specify action steps
towards achieving operational goals and to support tactical plans
• The department manager’s tool for daily and weekly operations
• Stated in quantitative terms
• Specifies plans for supervisors, department managers, and individual
employees
ORGANIZATIONAL PLANNING PROCESS
CHARACTERISTICS OF EFFECTIVE GOALS
MANAGEMENT BY OBJECTIVES (MBO)
System whereby managers and employees define goals for
every department, project, and person and use them to
monitor subsequent performance
MANAGEMENT BY OBJECTIVES (MBO)
MANAGEMENT BY OBJECTIVES (MBO)
 SHEWHART CYCLE

A planning cycle used

in organizations that
have instituted
quality management
– also called the
PDCA
LIMITATIONS OF PLANNING
CREATE A FALSE SENSE OF CERTAINTY

• All planning is based on assumptions, and managers can’t know what the future
holds for their industry or for their competitors, suppliers and customers

CAUSE RIGIDITY IN A TURBULENT ENVIRONMENT

• Planning can lock the organization into specific goals, plans, and time frames, which
may no longer be appropriate

CAN GET IN THE WAY OF INTUITION AND CREATIVITY

• Managers sometimes squelch creative ideas from employees that do not fit with
predetermined action plans
 BARRIERS TO PLANNING
• Failure to commit enough time and effort to planning process
• Interpersonal issues involving individuals or groups
• Inadequate planning skills
• Constantly changing circumstances and environment
• Failure to properly implement plan due to lack of time/resources
• Inability to monitor post-planning progress
• Lack of support from management
 DECISION-MAKING
Process of choosing a specific
course of action from several
possible alternatives, whether it
has been planned or is yet to be
planned

• As a rule of thumb, the higher

the position of the decision
• the more complex and difficult
the decisions
• the more people will be
affected by the decisions.
 DO BIASES INFLUENCE DECISION-MAKING?
1. Overconfidence
2. Failure to go beyond initial impression
3. emotional attachment
4. order with which information is presented.
5. Primary effect/influenced by initial impressions.

Taking emotions out of the process typically

leads to a correct decision.
 DO BIASES INFLUENCE DECISION-MAKING?
Activity:
Watch any episode of Bawal Judgmental
(Eat Bulaga) over Youtube. Answer the
following questions.
Question:
1. What do you think were the factors that
led to the wrong and correct answers of
the judge?
2. What did you learn about decision- I’m hoping you’ll enjoy
watching the episode you
making in what you have watched? watch!
Indicate the episode (e.g. Mga batang pinalaki ng single
mom). Submit in our Google Drive.
 ORGANIZING
PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
How will you describe this picture in one word?
 ORGANIZATION
ORGANIZING
• Deployment of organization resources to achieve strategic
goals
• Reflected in the organization’s division of labor into specific
departments and jobs, formal lines of authority, and
mechanisms of coordinating diverse organization tasks
 ORGANIZATION
ORGANIZATION STRUCTURE
• Set of formal tasks assigned to individuals and departments
• Formal reporting relationships, including lines of authority,
decision responsibility, number of hierarchical levels, and
spans of managers’ control
• Design of systems to ensure effective coordination of
employees across departments
 ORGANIZATION
ORGANIZATION CHART
Visual representation of an organization’s structure
FEATURES OF VERTICAL STRUCTURE
Work specialization

Chain of command

Authority, responsibility, and delegation

Span of management

Centralization and decentralization

Formalization
Does an organization
benefit much from a
Jack-of-all trades?
WORK SPECIALIZATION
• Division of labor, or the degree to which organizational tasks are
subdivided into separate jobs
• Advantage: Job can be performed efficiently
• Disadvantage: Employees are isolated and do only a single,
boring job. May create separation and hinder coordination
essential for organizations to be effective.
FEATURES OF VERTICAL STRUCTURE
CHAIN OF COMMAND
• Unbroken line of authority that links all persons in an organization
and shows who reports to whom
• Two underlying principles:
(a) Unity of command means each employee is held accountable to
only one supervisor; and
(b) Scalar principle refers to clearly defined line of authority in the
organization that includes all employees.
FEATURES OF VERTICAL STRUCTURE
AUTHORITY, RESPONSIBILITY AND DELEGATION
AUTHORITY is the formal and legitimate right of a manager to make
decisions, issue orders and allocate resources to achieve
organizationally desired outcomes
• Authority is vested in organizational positions, not people.
• Authority flows down the vertical hierarchy.
• Authority is accepted by subordinates.
 FEATURES OF VERTICAL STRUCTURE
AUTHORITY, RESPONSIBILITY AND DELEGATION
RESPONSIBILITY is the duty to perform the task or activity an
employee or other stakeholder has been assigned. This is usually
commensurate to the authority given.
]

ACCOUNTABILITY means people with authority and responsibility

are subject to reporting and justifying task outcomes to those above
them in the chain of command.
DELEGATION is the process managers use to transfer authority and
responsibility to positions below them in the hierarchy.
FEATURES OF VERTICAL STRUCTURE
SPAN OF MANAGEMENT
• Also called span of control
• Number of employees who report to a supervisor
• When supervisors must be closely involved with subordinates, the
span should be small; and when supervisors need little
involvement with subordinates, it can be large.
FEATURES OF VERTICAL STRUCTURE
SPAN OF MANAGEMENT
FEATURES OF VERTICAL STRUCTURE
CENTRALIZATION AND DECENTRALIZATION
• CENTRALIZATION means that decision authority is located at a
single point, usually near the top of the organization.
• DECENTRALIZATION means decision authority is pushed out and
downward to lower organization levels.
• Decentralization relieves the burden on top managers, make
greater use of worker’s skills and abilities, ensure that decisions
are made close to the action by well-informed people and permit
more rapid response to external changes.
FEATURES OF VERTICAL STRUCTURE
FORMALIZATION
• Process of creating written documentation to direct and control
employees
• Documentation includes rule books, policies, procedures, job
descriptions and regulations
FIVE APPROACHES TO STRUCTURAL DESIGN
1. VERTICAL FUNCTIONAL
Positions are grouped into departments based on similar skills,
expertise and resource use
FIVE APPROACHES TO STRUCTURAL DESIGN
1. VERTICAL FUNCTIONAL
ADVANTAGES
Efficient use of resources, economies of scale
In-depth skill specialization and development
Career progress within functional departments
Top manager direction and control
Excellent coordination within functions
High-quality technical problem-solving
DISADVANTAGES
Poor communication across functional
departments
Slow response to external changes, lagging
innovation
Decisions concentrated at top of hierarchy,
creating delay
Responsibility for problems is difficult to pinpoint
Limited view of organizational goals by employees
Limited general management training for
employees
FIVE APPROACHES TO STRUCTURAL DESIGN
2. DIVISIONAL STRUCTURE
Departments are grouped based on similar organizational outputs
FIVE APPROACHES TO STRUCTURAL DESIGN
2. DIVISIONAL STRUCTURE
ADVANTAGES DISADVANTAGES
Fast response, flexibility in an unstable Duplication of resources across divisions
environment
Fosters concern for customers’ needs Less technical depth and specialization in
divisions
Excellent coordination across functional Poor coordination across divisions
departments
Easy pinpointing of responsibility for product Less top management control
problems
Emphasis on overall product and division goals Competition for corporate resources
Development of general management skills
FIVE APPROACHES TO STRUCTURAL DESIGN
3. HORIZONTAL MATRIX
Utilizes functional and divisional chains of command
simultaneously in the same part of the organization; involves dual
line of authority
FIVE APPROACHES TO STRUCTURAL DESIGN
3. HORIZONTAL MATRIX
ADVANTAGES
More efficient use of resources than single
hierarchy
Flexibility, adaptability to changing environment
Development of both general and specialist
management skills
Interdisciplinary cooperation, expertise available
to all divisions
Enlarged tasks for employees
DISADVANTAGES
Frustration and confusion from dual chain of
command
High conflict between two sides of matrix
Many meetings, more discussion than action
Human relations training needed
Power dominance by one side of matrix
FIVE APPROACHES TO STRUCTURAL DESIGN
4. TEAM-BASED APPROACH (CROSS-FUNCTIONAL TEAM)
Group of employees assigned to a functional department that meets
as a team to resolve mutual problems
FIVE APPROACHES TO STRUCTURAL DESIGN
4. TEAM-BASED APPROACH (CROSS-FUNCTIONAL TEAM)
ADVANTAGES DISADVANTAGES
Some advantages of functional structure Dual loyalties and conflicts
Reduced barriers among departments, increased Time and resources spent on meetings
compromise
Less response time, quicker decisions Unplanned decentralisation
Better morale, enthusiasm from employee
involvement
Reduced administrative overheads
FIVE APPROACHES TO STRUCTURAL DESIGN
5. NETWORK STRUCTURE
Disaggregates major functions into separate organizations that are
brokered by a small headquarters organization
FIVE APPROACHES TO STRUCTURAL DESIGN
5. NETWORK STRUCTURE
ADVANTAGES DISADVANTAGES
Global competitiveness No heads-on control
Workforce flexibility/challenge Can lose organizational part
Reduced administrative overhead Employee loyalty weakened
 REFERENCES
• Daft, RL, & Marcic, D. (2017). Understanding Management 10th Ed. Cengage
Learning, United States.
• Samson, D., & Daft, R.L. (2015). Fundamentals of Management 5th Asia-Pacific Ed.
Cengage Learning, Australia.
• Williams MGMT10: Principles of Management (2018). Cengage Learning, Canada.