Chap 2 Planning

ILO:
 Define planning
 Explain the significance of studying
management in pharmacy
 Analyze the changing roles of
pharmacists as managers in different
pharmacy practice settings
Planning
 the process of thinking about the
activities required to achieve a desired
goal.
 It is the first and foremost activity to
achieve desired results.
 It involves the creation and maintenance
of a plan, such as psychological aspects
that require conceptual skills.
Steps in the Planning Process
1. Orient the planning process to a
singular direction or purpose
(vision/mission).
2. Assess the organization’s current
situation or status.
3. Set goals.
4. Identify and develop strategies to
achieve these goals.
 Steps in the Planning Process
5. Establish the objectives that will support
the progress towards these goals.
6. Define the responsibilities and timelines
for each objective
7. Write, communicate, and discuss the plan
to individuals and units involved
8. Monitor progress toward meeting goals
and objectives
 14 Principles of Management
The widely used theory on general
management was developed by Henri Fayol, a
French industrialist.

1. Division of Work – implies a narrowly

defined job for each employee, but job
enrichment expands the job vertically and
tasks become large so employees can see
the value of their labor.
2. Authority and responsibility –
employees are authorized to ensure the
performance and completion of tasks
assigned.
3. Span of Control – refers to the
limitation on the number of subordinates
that a manager can effectively
administer and control.
4. Unity of Command – there must be
an established chain of command;
“by-passing” should be avoided.

5. Unity of Direction - group activities

should have one boss and one plan
with same objective.
6. Subordination of Individual Interest
to General Interest – it should not
outweigh the interests of the business.
7. Remuneration – “equal pay for equal
work”
8. Centralization – to ensure that major
policies and decisions are made only by
the top management
9. Scalar chain (line of authority)-
refers to the number of levels in the
hierarchy from the ultimate authority
to the lowest level in the
organization.
It should not be over-stretched and
consist of too-many levels
10.Order – ensures that employees are
assigned and resources are allocated
properly in the organization.
11.Equity – involves the fair and kind
treatment of employees
12.Stability of tenure - Employees work
better if job security and career progress
are assured to them.
13.Initiative - Allowing all personnel to
show their initiative in some way is a
source of strength for the
organization.
14.Esprit de Corps – (group spirit)
teamwork is a must; “in union there
is strength”.
 Types of Planning in Pharmacy
Organizations
Type Purpose Characteristics
Strategic Ensures effectivity & efficiency Long-term(5-20yrs), scope
planning of org. includes all aspects of the org;
Provides framework for viewpoint is external.
detailed plans and decisions

Operational Ensures org is prepared to Short-term(1-5yrs) scope is

planning effectively perform & accomp specific to the immed actions,
its tasks & objectives viewpoint is internal

Business Determines the profitability of Short-term(1-5yrs) used to

planning specific busn.prog. Used to make major decisions
decide whether to invest or regarding new busn
move forward. ventures,expansion or termin.
 Types of Planning in Pharmacy
Organizations
Type Purpose Characteristics
Resource To guarantee the avail of Midterm (1-10yrs)scope is
planning resources needed to carry out specific to the resources
strat to achieve org’s goals. defined in the plan –include
human,info/techno,financial,ca
pital,facilities, internal viewpt
Organization To ascertain the coord & Midter(1-10yrs)scope is
planning orderly arrngmt to face future specific to structural aspects
challenges.Includes reporting including division,
relationships & definition of relationships,coord,control;
resp & autho. internal vwpt
Contingency Provides a fallback in case Short-to long-term(1-20y)
planning the orig plan fails or Scope specific to situations ;
unfprseen events occur external and internal vwpt
(strike,calamities,changes in
mangt)
Activity
 Develop your own company slogan or
tagline
 Limited to 5-7 words only
Barriers to effective planning
1. Failure to commit enough time & effort
to the process of planning
2. Interpersonal issues involving
individuals or groups (power struggle,
internal politics, resistance to change)
3. Inadequate planning skills
4. Failure to plan for the long-term
Barriers to effective planning
5. Constantly changing circumstances or
environment.
6. Failure to properly implement the plan
due to the lack of time and/or resources.
7. Inability to monitor the post-planning
progress
8. Lack of support from management
 Limitations to Planning
1. Planning involves educated and
experienced guesswork, decisions are
made based on evidence availbale from
past experience; however risk is still
involved.
2. Plans are predictions are only as good as
the data and info given. Poor
documentation and reporting will result in
poor strategy.
Limitations to Planning
3. Planning is nothing w/o action. Org
that do not implement their plans will
not succeed. Plans should not also be
static or unyielding.
4. Planning process should consider the
changing environment & circums., it
should be adaptable.
 Why managers fail in planning
1. Lack of commitment in planning
2. Interchanging planning studies w/ actual
plans.
3. Failure to develop an implement strat
4. Lack of meaningful &/or realistic obj & goals
5. Underestimating the importance of planning
premises
6. Inability to see the scope of plans
 Why managers fail in planning
7. Failure to see planning as a rational process.
8. Too much reliance on experience
9. Non-use of the principle of limiting factor
10.Insufficient support from top mngt
11.Absence of clear delegation of autho & resp.
12.Lack of adequate control techniques and info.
Principles of Decision-making
 It is the essence of management.
 Involves great investment of time,
economy, effort, personnel, and
materials
 Principles of Decision-making
1. Being patient, thinking long & hard before
making decision,esp when on unfamiliar
ground
2. Weighing the “pros and cons”
3. Anticipating the results and problems that
could arise from the decision.
4. Creating a master plan to guide one’s decision
5. Balancing the haste of making an urgent
decision, w/ a thorough deliberation.
Steps in decision-making
process
1. Set objectives
 make at least 1 decision
 Make a series of decisions
2. Identify constraints
 Constraints should be defined by legal,
economic, or political considerations
 Sometimes presented in terms of
desired specs or perf standards
Steps in decision-making
process
3. Identify alternatives
 It may provide a solution
 Often, does nothing or has at least
advantage
4. Gather appropriate information
 Info depends on the complexity and
scope of the possible decisions or choices
 Info is gathered to provide insight
Steps in decision-making
process
5. Evaluate the alternatives
 Decisions can be rendered based on
available info
6. Choose the most acceptable
alternative
 The manager examines the ranking of
alternatives.
Activity 2:Make letterhead stationery of your
company, put the drugstore name.
 Design your own logo with the
slogan/tagline
Activity :
Decision-making (A &B) p.39
 Draft your discussion
 Submit using the given template
(computerized)
 Activity 3: Strategic Planning
Group members’ name:_____ Date :___
Instruction:
 Provide the essential information on the
different areas of phar.
 Plan your own company profile by starting
with writing your vision,mission,objectives
and strategies
 Discuss the relationship of these parts in
strategic planning.
Name of Community pharmacy

Vision

Mission

Objectives 1.
2.
3.
4.

Strategy Write down the strategies that enable to attain such

objectives
1.
2.
3.
Name of Hospital Pharmacy

Vision

Mission

Objectives 1.
2.
3.
4.

Strategy Write down the strategies that enable to attain such

objectives
1.
2.
3.
Name of Manufacturing Pharmacy

Vision

Mission

Objectives 1.
2.
3.
4.

Strategy Write down the strategies that enable to attain such

objectives
1.
2.
3.