Pharmacy Management Functions

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Management Functions
Planning

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Five Key Management Functions
• Planning
• The process of setting goals, and determining the appropriate
action to achieve the goals of the company.
• Organizing Planning
• The process of allocating and arranging both human and other
resources through a formal structure of tasks and authority so
that plans can be carried out successfully. Controlling

• Leading Management Organising

• The process of guiding and motivating employees to

accomplish company’s goa Com
mand
• Commanding ing
Leading

• The process ofgiving clear commands to its workforce so it can

produce the desired output.(giving concrete instructions)
• Controlling
• The process of regulating company’s activities so that actual
performance conforms to the goals and standards set at the
planning stage.
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Reasons for Planning
• To coordinate human resource
• To reduce uncertainty in operation
• To reduce overlapping and wasteful activities

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Planning
• Planning involves setting goals of the company and establishing a plan
or strategy to achieve these goals.

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 TYPES OF PLANNING
TYPE PURPOSE CHARACTERISTICS
STRATEGIC To ensure that the organization is doing the Long term (5-20 years); scope
PLANNING right things. Addresses what business the includes all aspects of the
organization is in, or ought to be in, provides organization; viewpoint is
a framework for more detailed planning and external—how the
day-to-day decisions organization interacts with or
controls its environment.
OPERATIONAL To ensure that the organization is prepared Short term (1–5 years); scope
PLANNING perform the immediate tasks and objectives is specific to the immediate
to meet the goals and strategy of the actions that need to be taken
organization. To ensure that the organization to move the organization
is doing things right. forward; viewpoint is
internal—day-to-day
accomplishment of tasks.
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 TYPES of PLANNING
TYPE PURPOSE
Business To determine the feasibility of a specific
planning business or program. Business planning is
used to make a decision about investing in
and moving forward with a program.
Resource To ensure the resources necessary to
planning achieve the goals and strategy of the
organization. Resource planning can be
comprehensive (all resources needed to
achieve goals and strategic plan of the
organization) or can focus on a specific
type of resource.
CHARACTERISTICS
Short term (1–5 years); can be used
to make decisions to start a new
business, expand a business, or
terminate a business
Midterm (1–10 years); scope is
specific to the resource or resources
defined in the plan—specific
resources may include human
resources, information/technology
resources, financial resources, capital
and facilities, and others; viewpoint
is internal—the resource needs of
the organization. 7
TYPES
TYPES
of PLANNING
PURPOSE CHARACTERISTICS
Organizational To ensure that an organization is organized Midterm (1–10 years); scope
planning appropriately to meet the challenges of the specific to the structural
future. Key elements include reporting aspects of the organization
relationships, definition of responsibilities, andincluding divisions, reporting
definition of authorities. relationships, coordination,
control; viewpoint is
internal—how the company
organizes itself.
Contingency To provide a fallback option or direction Short to long term (1–20
planning should the original strategy of the organization years); scope is specific to
fail or should something unexpected occur. the particular situation that
Contingency planning can occur for a specific may occur; viewpoint is both
anticipated situation, the most common of external (if the situation is
which are business-related crises (such as a created in the environment)
labor strike), natural disasters, and changes in and internal. 8
How to set goals? Be SMART!
• SMART Goals are
• Specific – goals are clearly defined and focused.
• Measureable – outcome of the goal can be measured.
• Achievable – goals should be realistic and are able to accomplish.
• Relevant – goals are relevant to the business operation.
• Time-bound – a specific period of time must be set for achieving
the goal.
The use of SMART goal setting can help managers save time and
resources by making the planning process more efficient and effective.

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SMART Goals
• Specific: To set a specific goal, there are some questions to ask.
• Who is involved?
• What to accomplish?
• When to start/end?
• Where to start?
• Example: setting the goal as “to achieve 1 million sales for product A in the
next year” is more meaningful than “to get more business”.
• Measurable: establish concrete criteria for measuring outcomes.
• The criteria should be quantifiable so that the outcome can be easily
measured.
• Examples: to achieve half million net profit in the next year or to obtain 20%
market share in the industry.
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SMART Goals
• Achievable: it is important to ensure the goals are realistic and be
attainable with consideration of the abilities and financial capacity of
the company.
• Example: it is not appropriate for a small company to set a goal of earning 3
million in one year.
• Relevant: the goals should be set for business operation and based on
current economic climate.
• Example: a business can set a goal of increasing 20% in sales for its product A
in the next year which is relevant to the goal of obtaining 20% market share in
the industry.
• Time-bound: a goal should be bound within a time frame.
• Example: it is not appropriate to set a goal of 1 million sales without time limit
or it will never be achieved as there is no sense of urgency.
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Planning process
• Once managers understand the goals of the company, they can take
steps to implement the planning process in their company.
• Implementation of planning process is important because if the
planning cannot be transformed into action, it will not be able to
generate benefits to the company.

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Planning process

2. Listing 3. Selecting best

1. Setting
alternative ways of way to achieve the
company goals
achieving the goals goals

4. Developing
5. Putting plans
plans to pursue
into action
chosen alternative

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example
• You are the manager of the Pharmacy company. The goal of the
company is to obtain 20% market shares in the industry.

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Example Solution
1. Setting company goals – obtain 20% market shares in the industry.
2. Listing alternative ways of achieving the goals – i. introduce industry
new products; ii. recruit new sales team.
3. Selecting best way to achieve the goals – it is better to recruit new
sales team as the cost is relatively lower than developing a new
product.
4. Developing plans to pursue the chosen alternative – a short-term
plan is considered which is to recruit 20 sales staff next year.
5. Putting plans into action – Human Resources Manager arranges the
recruitment.
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The End

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