PHA617: Introduction to Pharmacy Administration, Management and Leadership M

Basic Management Concepts

Economic conditions
Overview - employment, inflation, savings
Administration
- activities that relate to running an Healthcare coverage
organization - HMO, OOP

Pharmacy Administration Political and Legal Climate

- a social and administrative science that - regulatory agencies policies and
includes 3 strategic areas related to requirements
healthcare and pharmacy: economics of
pharmaceuticals and other health People’s Health Belief and Behavior
interventions, marketing of pharmaceuticals - self-diagnosing, trust in healthcare
and health services, and management of (medicines, personnel, and services)
health resources
Basic Management Concepts
“Pharmacy Administrators handle both the
medical/pharmaceutical and business aspects of a
pharmacy establishment.”

For a Pharmacy Administrator to be effective,

he/she must possess knowledge in the following Resource → management →
functions: organizational goals
- HR Management
- Financial Management
- Production Management
- Marketing Management

Environmental Factors Affecting Pharmacy
Practice
Competition
- other drugstores/pharmacy establishments,
other professions, alternative therapy
Demographics of patients/clients
- age, gender, financial status, employment,
and location
Management
- the attainment of organizational goals in an
efficient and effective manner through
planning, organizing, leading, and
controlling organizational resources. (Daft,
2018)
- a process that brings together resources
and unites them in such a way that,
collectively, they achieve goals or objectives
in the most efficient manner possible.
(Gadeke, 1993)
Pharmacy Managers
- supervise the daily operations of the
Pharmacy Department and work with the
Pharmacy supervisor to accomplish the
goals and objectives of the pharmacy.
PHA617: Introduction to Pharmacy Administration, Management and Leadership M
Basic Management Concepts

Types of Management Styles

Commanding Management
- full control vs threatening approach;
effective during organizational crisis

Visionary Management
- mobilizes people; effective when the leader
is an authority in the field

Affiliative Management
- build relationships & create harmony vs
mediocrity
- effective in creating a positive working
environment
- ineffective during crisis
Management Work Domains
Democratic Management
- equals to build commitment and consensus
vs time & quality of decision
- effective if workforce is experienced

Pacesetting Management
- DIY attitude vs taking over if an employee is
underperforming
- effective if the workforce is experienced and
competent

Coaching Management
- long-term professional development of
employees vs investments
- ineffective when employees are resistant to
change

The Goal of Management

Resource Usage means efficiency
Interpersonal roles
- Physical
- figurehead
- Human - leader
- Intellectual - liaison
- Financial
- *Time Decisional roles
- negotiator
Goal Attainment ends effectiveness. - resource allocator
- disturbance handler
Low waste ↔ High attainment
- entrepreneur

Informational roles
- monitor
PHA617: Introduction to Pharmacy Administration, Management and Leadership M
Basic Management Concepts

- disseminator
- spokesperson Value creation
- selling yourself at the correct price, to be
freely chosen as a viable alternative in the
1. People
marketplace
2. Process
3. Asset
Organization
4. Operations
- a deliberate arrangement of people brought
5. Finance
together to accomplish some specific
6. Supply Chain
purpose
7. Technology
8. Environment
Characteristics of Organizations
9. Market
- goals
10. Regulation
- people
- structure
Managerial Sciences
Accounting
Kinds of Managers
- record and report financial transactions,
Top Managers
manage cash flows, compute taxes, analyze
- responsible for the entire organization
profitability, determine business strengths
- have titles such as president, chairperson,
and weaknesses
executive director, CEO, and executive VP
- set organizational goals, define strategies,
Finance
monitor and interpret external environment,
- determine financial needs, identify sources
and make decisions for the organization
of capital, invest profits, manage assets
- look into long-term future and concern
themselves with general environment trends
Economics
and organization’s overall success
- determine the optimal mix of labor and
- responsible for communicating a shared
capital, output, hours of business
vision for the organization, shaping
operations, levels of investment into risk
corporate culture, and nurturing an
management
entrepreneurial spirit

HRM
It takes 20 years to build a reputation and five
- determine the optimal mix of labor and
minutes to ruin it. If you think about that, you’ll do
capital, output, hours of business
things differently. - Warren Buffet
operations, levels of investment into risk
management
Middle Managers
- responsible for business units and major
Marketing
departments
- identify competitive edge, target markets,
- include department head, division head,
promo strategies (ID & eval), selection of
manager of quality control and director of
merchandise, arrangement of merchandise,
the research lab
pricing
- responsible for implementing the overall
strategies and policies defined by top
Operations management
managers
- design workflow, control purchasing and
- generally concerned with the near future
inventory, continuous quality improvements
PHA617: Introduction to Pharmacy Administration, Management and Leadership M
Basic Management Concepts

First-line Managers Resource Allocator Role

- responsible for directing the day-to-day - Decide who gets resources; schedule,
activities of nonmanagerial employees budget, set priorities
- have titles like supervisor, line manager,
section chief and office manager Negotiator Role
- responsible for teams and non-management - represent team or department’s interests
employees - represent department during negotiation of
- concerned with application of rules and budgets
procedures to achieve efficient production, - union contracts, purchases
provide technical assistance and motivate
subordinates Interpersonal Roles
- activities relating to providing information
Managerial Roles and ideas
Information Roles
- activities used to maintain and develop an Figurehead Role
information network - perform ceremonial and symbolic duties
such as greeting visitors
Monitor Role - signing legal documents
- seek and receive information
- scan web, periodicals, reports Leader Role
- maintain personal contacts - direct and motivate subordinates
- train, counsel and communicate with
Disseminator Role subordinates
- forward information to other organization
members Liaison Role
- send memos and reports - maintain information links inside and outside
- make phone calls the organization
- use email, phone, meetings
Spokesperson Role
- transmit information to outsiders through Shifting Roles
speeches, reports

Decisional Roles
- Events about which the manager must
make a choice and take action

Entrepreneur Role
- initiate improvement projects
- identify new ideas, delegate idea
responsibility to others

Disturbance Handler Role

- take corrective action during conflicts or
crises Supervisory managers
- resolve disputes among subordinates - leader role: high importance
PHA617: Introduction to Pharmacy Administration, Management and Leadership M
Basic Management Concepts

- recognize, understand, and reconcile

- liaison role: medium importance
multiple complex problems and
Middle managers perspectives
- more important in leader role than liaison
role Human Skills
- manager’s ability to work with and through
Top managers other people, and to work effectively as a
- more important in liaison role than leader
role group member
- demonstrated in the ability to motivate,
facilitate, coordinate, lead, communicate
Individual Identity Manager Identity and resolve conflicts
- sensitivity to others’ needs and viewpoints
Specialist, performs Generalist, coordinates - allows subordinates to express themselves
specific tasks diverse tasks
and encourages participation
Gets things done Gets things done
through own effort through others Technical Skills
- understanding of and proficiency in the
An individual actor A network builder performance of specific tasks
Works relatively Works in highly - includes mastery of the methods,
independently interdependent manner techniques and equipment involved in
specific functions
- includes specialized knowledge, analytical
Managerial Skills
ability and the competent use of tools and
techniques to solve problems

Depending on the Manager’s Level in the

organization, different roles are highlighted:

Conceptual Skills
- ability to see organization as a whole, to
understand how the different parts of the
company affect each other, and to
recognize how the company fits into or is
affected by its external environment
Top
- executive, coaching, change management,
leadership, delegation, and empowerment
- CEOs, President, EVP
- more on conceptual managerial skills
Middle
- problem-solving, team building, talent
PHA617: Introduction to Pharmacy Administration, Management and Leadership M
Basic Management Concepts

- development, performance, management Amoral Management

- Asst. Mgr.; Mgr - ignores ethical considerations
- more on human managerial skills - no concern for consequences of actions or
policies
Low
- emotional intelligence and coaching for Moral Management
performance - follows ethical principles
- Supervisor - value equity, fairness, and concern for
- more on technical managerial skills others involved

How to be a Good Boss

8 Rules from Google on How to be a Good

Boss:
1. a good coach
2. empowers team and does not micromanage
3. expresses interest/concern for team
members’ success and personal well-being
4. productive and results-oriented
5. a good communicator
Managerial Ethics 6. helps with career development
- refers to the moral guidance a supervisor 7. has a clear vision/strategy for the team
provides his employees 8. has important technical skills that help
- no “one size fits all” approach to ethical him/her advise the team
management

Views/ Approaches of Ethics

Utilitarian
- ethical decisions are based on outcomes
and consequences
- greatest good for the greatest number

Rights
- respects and protects individual liberties
and privileges

Theory of Justice
- rules are imposed fairly and impartially
- based on standards of equity, fairness and
impartiality

Types of Managerial Ethics

Immoral Management
- focused on organizational gains and profits
- cutting corners