Pharmacy management (PHCP 406)Department of Clinical Pharmacy & Pharmacy Practice

Faculty of Pharmaceutical Sciences,Ahmadu Bello University, Zaria, Nigeria

By

Ayuba AbdulrazaqB.Pharm.,M.Sc.,MBA, FPCPharm.DSA

Assistant Director Pharmaceutical Services/ Consultant Clinical PharmacistAhmadu Bello University Teaching Hospital, Shika, Zaria, Nigeria

COURSE OUTLINES

1.0 INTRODUCTION TO MANAGEMENT: Definition of management Principle of Scientific management Types and Concern of management Functions of management, Importance of good management Managers responsibilities Traditional versus Modern Manager Modern Management Methods

2.0 ENTERIPRISES & BUSINESS ORGANIZATION sole proprietorship Partnership Corporation Franchise Understanding of the Market place Market surveys

3.0 MANAGEMENT OF TIME Technique for managing Time Goal setting in relation to time Using time of work effectively Elimination of time waster

1

4.0 PERSONNEL MANAGEMENT Functions of Human Resource manager in Pharmacy Establishing manpower need for Pharmacy Business:

Hiring of staff Organizing an interview Orientation, and training of new staff

Delegation: Pharmacy manager understanding of delegation Problems associated with delegation How to delegate, essential steps in delegating, what to delegate and what not to delegate,

assessment of delegated jobs, Disciplines in Pharmacy business

Motivation: Historical background of motivation Maslow’s Law, Theory K & Y , Hertzberg’s concept, job restructuPring, Theory Z, How to motivate pharmacy employees, Participative management Types of workers in a pharmacy business

Performance evaluation: Assessment of the employee’s output, Achievements of employee and how to use it for greater productivity Performance appraisal using job-description, job performance Interview, hiring and firing

Compensation: Salary administration Fringe benefits and staff turnover

5.0 FUNCTIONS OF THE COMPUTER IN PHARMACY PRACTICE Introduction to Computer:

types of computers, classification of computer functions Computer application in pharmacy practice Computer class- group presentation 4hrs

AYUBA A, FPCPharm, 2015

2

Definitions of Management, its Nature and Purpose A process of designing and maintaining an environment in which individuals working together in groups efficiently to accomplish selected aims and objectives

Achieving results through people: Using the limited resources efficiently to achieve the objectives of the organization Is a profession and a career, an Art and Science: A critical resource, the absence of which can result in considerable waste of the more

tangible resources (Man, Money and Material)

Principles of Scientific Management Evolution of management theories:.

o Fredrick W Taylor’s Scientific Managemento Henri Fayolo Elton Mayo Henry L. Gant:o Henri Fayol’s Universal Management Process:o Walter A Shewart:o Joseph M. Jurano Frank and Lillian Gilbret

Father of scientific managemento . The fundamental principles in the theory areo Encouraging harmony in group actiono Achieving cooperation of human beings (team building)o Workers should be encouraged to bring out maximum output and not a restricted o output Developing workers to the fullest extent possible for their own and their o company’s highest prosperity.o Developing performance standards on the basis of systemic observations and experimentationo Standardization of work practices and the methods to reduce waste and increase productivityo Time and task study of workers’ efforts to maximize productivity and outputo Systematic selection and training of workers to increase efficiency and productivityo Differential pay incentives based on established work standards

Henri Fayol o is the father of modern management theoryo The basic principles are: o Authority and responsibility and responsibility are related, responsibility arises from authority. o Unity of command – employees should receive orders from one superior only.o Scalar chain – chain of superiors from highest to the lowest rank which can be short circuited

when the scale is disturbing work.

3

o Spirit de Corp – this the principle that ‘in union there is strength’. it emphasizes the need for team work and adequate communication to attain it.

o Fayol regarded the elements of management as the functions of planning, organizing, commanding, coordinating and controlling.

Elton Mayo and his team of researcherso found that improvement in productivity was due to social factors such aso morale, o a sense of belonging , o and management through motivating , o counseling, leading, and communicating.o This phenomenon arising from people being’ noticed’ is called the Hawthorne effect.

Frank and Lillian Gilbreth:o Refined time for use in work simplification

Henry L. Gant:o Refined production control and cost control techniqueso Advocate of importance of the human factor and importance of customer service over profits

Henri Fayol’s Universal Management Process:o Divided the manager’s job into five(5) functions:o Planning, organizing, command, coordinating, and control

Walter A Shewart:o Introduced the concept of statistical quality control

Joseph M. Juran:o Proposed the concept of internal customers, teamwork, partnerships with suppliers, and

brainstorming

Chester I. Barnard’s Early System Perspective:o Wrote the functions of the executive.o Characterized all organizations as cooperative systemso Defined principle elements in organization aso Willingness to serveo Common purposeo Communicationo Strong advocate of business ethics

Types and Concerns of management Functional Management:

-Applies to repeated works e.g. Civil, electrical, mechanical, structures, environmental, surveying, purchasing, estimating

Projection Management:

4

-Applies to one time work e.g. power plant, chemical plant shopping center, warehouse, substation, refinery unit, cleanup site.

Major Concern of Managemnet:Performance, Time & Cost.

Functions of ManagementPlanning:

Formulating a course of action Establishing major milestones Starts with the statement of work Continuous throughout a project Integrates with all parties involved Must consider constraints Planning is a prerequisite to scheduling

Organising: Breakdown work into definable measurable parts Systematically arrange resources to fit the plan Organize to focus on the work to be performed Need a work breakdown structure (WBS) Need organization breakdown structure (OBS) Need organization chart that shows responsibility and authority

Staffing Dependable Competent Honest Experienced, Hard worker and flexible Directing: Motivating: pay, contributing to team and recognition Communications: oral-clear to point, written-legible and to the point , Listening-is important part of

communications Ability to work with others- above, below, beside you and outside your organization Controlling: Controlling is one part of the most difficult tasks of management There can be no control system without baseline plan for doing the work There can be no control system without good staffing with assigned responsibilities Need reporting system that detect problems Need procedure for corrective actions

Importance of Good Management Henri Fayol 14 principles

Division of work Authority and Responsibility Discipline & Initiatives

5

Unity of command & unity of direction Subordination of individual to general interest Remuneration and method of payment should be fair with maximum satisfaction to the employees and the employers Centralization Scalar Chain, i.e. chain of superiority- highest to lowest rank Order Equity – loyalty & devotion by employees vs. kindness & justice from the employers Stability of tenure Esperit de corps, in unity there is strength – team work

Crisis management: "fighting fires” Quick Response

Short-time Routine administration Delegation, improved time management, Short-term program development.

Long –term program development:

Strategic planning e.g.: National development plans, National health policies, and National drug policies MDGs Vision 20-20-20

Program planning: Medium-term planning (three to five years) that specifies major objectives, activities, and resources needed for a specific program of the

organization.e.g. Essential drugs programs

Work planning: Short-term planning (usually six to twelve months) lists major objective the specific target outputs, Required tasks, Individual responsibilities, Job Schedule , Budget. Operational Planning e.g.

6

Strategic Planning

Long termFocus on mission and

goalsNational development

plansNational health nd drug policies

PROGRAM PLANNINGMedium term

Focus on goals and Objectives

Master planProject plan

WORK PLANNINGShort term

Focus on activitiesAnnual workplansTask-specific plans

o Production of a National Formulary Manual,o Renovation of a Medical Store,o Conduction of a major educational campaign on rational drug use.

Level Planning; Planning Pyramid Managers Responsibilities:

The manager work with adequate response to the elements of the external environment, which include economic, technological, social, ecological, political and ethical factors that affect their areas of operation.

Managers at different levels of the organization carry out managerial functions. The scope of authority held and the types of issues dealt with will vary. Therefore, the time spent on each function will differ. Therefore, top-level managers spend more time on planning and organizing than lower level managers.

Many people rise to positions of responsibility in organizations with no formal training in management. Some are successful, others are not. What makes a successful manager? Certainly the realities of local politics, economics, human resources, and infrastructure development have a great deal to do with success or failure. Within these constraints, however, success lies in the tasks, roles, skills, and qualities of the manager.

7

Managerial Role: A role is a set of expectations placed on anyone in a position of responsibility by the people

around that person. A manager plays many roles, but the most important are those of leader, communicator, and decision-maker.

Leader. The role of leader involves giving clear direction to the organization and motivating staff with a sense of purpose.

It also involves interactions with other leaders in the organization, professional associations, community organizations, international and donor agenciesCommunicator

The role of communicator establishes the manager as the central focus for Receiving and Disseminating information. Building a network of formal and informal contacts Monitoring change opportunities, problems, or misunderstandings Managing multicultural or multilingual relationships.

Decision-maker. Managers are called upon to make decisions in four areas: o resource allocation, o program change and development,o problem solving, and negotiation.o Deciding on the allocation of drugs, money, people, vehicles, etco Program plans and priorities setting o Finance and staff assignments.

Managerial Skills: Three kinds of skills have been identified for administrators. Technical skills, Human skills, Conceptual Skills Design skills. Ability to design solutions. . A health system manager requires a number of skills: Conceptual and analytical skills: ability to synthesize information, understand the prevailing circumstances Using planning techniques to move the program forward;

Decision-making skills: Using conceptual and analytical abilities Identifying and selecting among different options and Adjusting decisions based on experience;

People skills: understanding, motivating, and directing people Building teams improving group effectiveness;

Financial skills:

8

Budgeting, Assessing value for money in people and projects, Negotiating and adhering to budgets,

Communication skills: listening, reading, writing, running meetings Making public presentations ; Science and Scientific Communication

Research & Computer skills: Proficiency in using word-processing, spreadsheet, and other relevant software to improve

productivity. These skills do not come simply from being placed in a management position; they require

awareness, willingness to learn, training, and practice. The first step is to assess personal strengths and weaknesses. Identify opportunities to develop skills Continuing education programs, Donor-Assisted Development Projects, etc.

Qualities of an Effective Manager Provides clear direction Encourages open communication Coaches and supports people Recognizes staff for good performance Follows up on important issues and provides feedback Selects the right people for specific assignments Understands the financial implications of decisions Encourages creativity and new ideas Gives staff clear-cut decisions when they are needed Consistently demonstrates a high level of integrity

Source: Adapted from Ivancevich et al. 1994.

Qualities of a Successful Manager One study of organizations identified ten qualities of a successful manager, regardless of age, sex, type of business, size of organization, or working environment. These qualities reflect attitudes, habits, and behavior patterns. .They do require continual awareness and practice. Setting Priorities:

Which decision should be made first? Which problems should be solved first? How much time and effort should be put into a specific problem or decision? What tasks should be delegated to other staff? To set priorities, managers can ask themselves several questions that demands their time and

attention:

9

Urgency: Many issues seem urgent, but which ones really have an absolute deadline or time limit?

Relevance: Which issues are most central to long-term strategic plans and goals? Impact: Which issues are likely to have the greatest impact on major Proogram activities? Future consequences: Which issues present the greatest threat to or the greatest opportunity

for the future of the program? Growth tendency: Which issues will get worse if not addressed sooner rather than later?

Decision-Making and Problem-Solving Successful management requires prompt, thoughtful responses to the problems that

inevitably arise when plans are put into action. Some managers are very good at both decision-making and problem-solving Seven-Step Process of decision making and problem-solving:

Review the basic objective. Define the decision to be made or the problem to be solved. Assess the situation; determine the cause of the problem. Identify alternative solutions. Compare the alternatives using defined criteria. Select and implement the best decision or solution Follow up and adjust.

Comparison of Traditional and Modern ManagersTraditional Manager Modern Manager Acts as authoritarian figure, critic Is concerned about structure and procedures Tries to succeed alone Pushes staff to focus on manager's needs and

concerns Gives little feedback Is critical; discourages individual initiative Uses threats to control staff Uses one-way, top-down communication Is secretive Knows all the answers Holds decision-making authority; makes

decisions singlehandedly Decides not only what should be done but also

how it Should be done Resists change as a threat Is concerned with punishing people for doing a

bad job Creates fear, which discourages staff from

asking questions and making suggestions.

Acts as facilitator, coach Is concerned about objectives and results Succeeds through the success of the team Encourages staff to focus on the program's

needs and concerns Gives positive feedback and constructive

negative feedback Is supportive; coaches staff to take initiative Uses encouragement and support to motivate

staff Uses two-way communication & shares

information Recognizes the expertise of other team

members Allows staff to participate in deciding what

should be done And defining how they can best do it Welcomes change as a source of improvement Helps people do a better job Creates a sense of security; staff ask questions

10

Plan Identify problem areas and plan changes

Act

Adjust the changes and implement on a large scale

Check Monitor the results of implementing the changes

Do Implement changes (sometimes in a small-scale test)

Source: Adapted from Ivancevich et al. 1994; Rees 1991

Modern Management Methods Over the last few decades, some new management concepts have emerged: total quality management, management by wandering about (MBWA), participatory management, and managing for performance. The role of the manager has also changed.

1.8.1 Total quality management (TQM) is a philosophy and a set of concepts and techniques that have been adopted by many successful organizations. It focuses equally on the quality of the results and on the quality of management. The fundamental commitment is to continuous improvement of services for beneficiaries, clients, or customers. Achieving continuous improvement requires a manager with a modem outlook, the plan-do-check-act (PDCA) cycle Modern Management Methods

Over the last few decades, some new management concepts have emerged: Total Quality Management (TQM), Management By Wandering About (MBWA), ssManagement by Fact Participatory Management Managing Change

Total quality management (TQM) is a philosophy and a set of concepts and techniques that have been adopted by many

successful organizations. It focuses equally on the quality of the results and on the quality of management. The fundamental commitment is to continuous improvement of services for beneficiaries,

clients, or customers. Achieving continuous improvement requires a manager with a modem outlook, the plan-do-

check-act (PDCA) cycle. Teamwork. Another important aspect of modern management is teamwork. Some would-be leaders try to achieve success on their own, but sooner or later, every director, chief, or supervisor learns that managers cannot manage alone. The manager and staff should work as a team. A team is a group of individuals working together to achieve common objectives. An effective team interacts openly and works together efficiently to produce the desired results: together everyone accomplishes more. Factors that influence teamwork include:

Commitment to a common goal, Team composition, Team dynamics, and Team leadership.

A commitment to common goals and objectives is vital to the success of a team. Difficulties often arise because team has never reached consensus on its goals. Planning can become an effective team-building exercise.

There are several different types of teams, depending on the team members and the purpose. Senior-level divisional or department heads or program managers within a division may meet weekly or

11

monthly. Within a program, the program director or manager generally has several senior staff members who are responsible for different units and functions. At the level of the health unit, the medical director and chief administrator, along with other health and administrative staff, should form an effective team. These are all examples of groups that are in continuous existence and should always strive to work as a team. In addition, task-specific working groups may be established to solve a specific problem, to develop procedures, or to plan major changes. The existence of such teams is time-limited, making good teamwork especially important.

Team dynamics are important. Although individual team members take responsibility for specific assignment and deadlines, there must also be a feeling that "we are in this together." This implies a level of participation among team members in questioning, planning, and decision making. Blaming individual team members for undesirable outcomes undermines the collective sense of responsibility for success.

Effective teams maintain individual self-esteem by respecting differences among team members; by criticizing only ideas, not people; and by ensuring that each person's contribution is heard. Mutual trust is also necessary; dishonesty or betrayal of confidential information can undermine this trust. Conflicts among team members will inevitably arise, but such conflicts should be quickly identified and resolved

Perhaps the most important element in good teamwork is good leadership. An effective team leader has the characteristics of the modem manager outlined above. The team leader succeeds by helping the team succeed. The team leader must serve as facilitator, communicator, and coach. The team leader must ensure that the objectives of the team are clear and that the sense of shared commitment and constructive team dynamics exist. Components of Team –work The plant- they are the original thinkers, they generate new ideas, they offer solutions to problems,

they think in radically different ways, laterally and imaginatively The resource investigator-they are creative, extrovert and popular The Coordinator- they are highly disciplined and controlled ,focus on the objectives and unify a team The Shaper-achievement and results- oriented The motivator-evaluator- they analyze, balance and weigh they are objective thinkers The Team worker-they are supportive and co-operative; they make good diplomats because they only

want what is best for the team The implementer- they have good organizational skills; they display common sense; they like to get

the job done The completer- they check details; they are painstakingly conscientious The specialist- they are dedicated to acquiring a specialized skill; they are extremely professional;

they have drive and dedication

1.8.2 Management by Fact Continuous improvement in a program's activities requires hard data, not personal bias or

unfounded assumptions. Management by fact involves rationality, and unbiased information. Rationality implies that planning and decision-making are logical, structured, and oriented toward the goals of the organization. Managers who are inexperienced, insecure, or easily pressured by outside forces often make reactive reflex decisions that are not based on fact and are not oriented to either immediate objectives or long-term goals.. Good management decisions depend on up-to-date, unbiased information

12

1.8.3 Management by Wandering About Formal communication occurs through policy statements, memoranda, reports, meetings, and

formal instruction. It follows the organizational structure: managers communicate downward to their staff, and staff report upward to managers. Formal communication is useful for gathering some types of information and for decision-making, but it has its limitations.

Effective managers regularly get out of their offices. They use informal communication to learn what is really happening. The director of medical services who makes frequent visits to districts and health facilities rather than staying at headquarters; the essential drugs program manager who regularly gets around to all regional stores and to local training courses on rational drug use rather than occupying himself with paperwork at the office; the hospital chief nursing officer who is frequently on the wards, in the operating room, or in the outpatient area rather than staying in her office-all these people are managers who stay informed, keep their staffs informed, and are therefore better able to run their programs or departments.

This active approach to communication is called management by wandering about (MBWA). MBWA is essential to successful management because it results in direct contact between the manager and staff. The importance of keeping in touch with people in the organization cannot be overemphasized. Through MBWA, managers learn about real problems and often about potential solutions. They have a better understanding of the strengths and weaknesses of the organization. In turn, the staff become more familiar with the constraints that management faces and are better able to make useful contributions to the program. 1.8.4 Participatory Management

An important feature of increased decentralization is greater participatory management, that is, involving more people in planning, decision-making, problem-solving, and other management processes.. It also brings more information, creativity, and experience to planning and decision-making, often resulting in better conclusions and better implementation efforts. Participatory management works best when managers are clear about the focus and limits of participation; the topic is important and relevant to the program and the staff; he topic is one that can be realistically addressed by the group; staff have the necessary education, training, and experience; managers and staff share common values; staff do not feel threatened by participating.

Managing for Performance Management by objectives (MBO) provides the link between overall implementation activities and individual staff performance. MBO has been used around the world for over three decades. Ideally, staff members should first be asked to draft their own performance targets or objectives, in line with the program's overall goals and objectives, which are then reviewed and finalized with the supervisor. The last and most important step is to periodically assess progress toward achieving these targets which should be written, specific, measurable, appropriate to the individual or unit, realistic, and time-bound.:

13

1.8.6 Managing Change Effective management of change depends on an understanding of change forces, resistance to change, and principles for successful change management. Forces for change may come from within or outside the organization. Internal forces include pressure from individuals genuinely seeking to improve the program, External pressure may arise from economic factors, political forces, or philosophical differences. External pressure may also arise from trends toward democratization, decentralization, or privatization. Managers who do not recognize and respond to change forces risk being overwhelmed by them..

Resistance to change Common sources of resistance to change include:

personal self-interest: Vested interests: Bureaucratic inertia Habit: . Fear and uncertaint Conformity and peer pressure Rejection Principles for Successful Change Management Know onese Learn how others feel ownership" through participation. Share the credit Look for win-win strategies Develop a sense of timing Share information and educate Be persisten: Use force sparingly

ENTERPRISES & BUSINESS ORGANISATION Private company Government owned corporation e.g. NNPC, PHCN, NRC, NITEL Co-operative societies Publicly quoted company e.g. Nigerian stock of Exchange, Stockbroker firms e.g. Merchant banks,

Second-tie market, Security Market

Forms of Business Enterprises Sole Proprietorship Partnership Corporation Sole Proprietorship

A ‘one’ man business The capital of the business is provided by the owner. He shoulders the entire responsibility for the management and The operation of the business and bears the risks associated with the business.

14

Advantages: It is easily and inexpensively formed It is subject to few Government regulations Self-interest m otive .Freedom of decision- making All earnings are subject to personal income taxes only All the profits generated goes to the sole proprietor.

Disadvantages: Expansion is limited to the owner’s capital Lack of continuity when the proprietor dies Unlimited liability-bears all the risks of the business Lack of opportunity for employee

PartnershipWhen 2 or more persons associated to conduct business For the purpose of making profit A written contract agreement known as ‘Article of Partnership’ with provisions for:

o Salariesadministrationo profits/losses sharing formula, o procedures for a partner to withdraw from the business

Advantages: Financial resources of more than one person provides higher capital base for the business Like the sole- proprietorship, it is easy and economical to form Limited governmental control There is the benefit of combined judgment. Disadvantages: Limited life: Unlimited liability It is difficult for a partner to liquidate or transfer money invested in the partnership. It has difficulty in achieving large-scale operationsCorporations:

A corporation is characterized with the following features: legal entity created by the State An artificial being, invisible, and intangible, It is normally given a charter which states the purpose of a corporation It has unlimited life, though ownership composition may continue to change. Ownership belongs to the stock (share) holders and can be transformed without the necessity of

obtaining permission from the other stockholders It is subject to variety of taxes The corporate officers are responsible for the day to-day operations of the firm The board of directors is responsible for directing the affairs of the business and final authority

rests with them. Advantages: The liability of the shareholders is limited to the fully paid up value of the share he holds.

15

Shares are readily marketable and capitals can be raised from many individuals through the sale of stock

Transfers of ownership can easily be effected through organized stock exchange The company have perpetual life –span. The death or withdrawal of an owner does not liquidate the

company.Disadvantages: The expenses involved in the process of incorporation are enormous. It is subject to regulation by various State and Federal Government departments Lack of personal interest in the firm by employees .Franchise: Definitions:

A form of business organization in which a firm which already has a successful product or service (Franchisor) enters into a continuing contractual relationship with other businesses(franchisees) operating under the franchisor’s trade name and guidance in exchange for a fee

A business method that involves licensing of trademarks and methods of doing business A business licenses its trade name ,brand name and its operation methods to a person

or group operating in a specific territory who agrees to operate its business Franchising Requirements:

Interviews with franchisors and the franchisees Examination of the franchise agreement Examination of franchise’s audited financial statements Trade –area surveys The list of current franchisees Newspaper magazine articles about the franchise A list of the franchisors’s current assets and liabilities Organization, national adaptability,and good public acceptance, Good financial control & monitoring system Integrity & commitment,

Ten (10)Top Franchise business opportunities: Food Franchises Health/Fitness e.g SanoPfi, fizer, Glaxo,etc & WWWC Ventures,Alpha Pharmacy etc Business services Cleaning services Coffee shop Senior care Personalized gifts Lodging/hotels Convenience stores Pets care

Sample of Business Plan Template: Your persona legal or criminal history The scope of your business plan

16

Secure a good /strategic location Set up your good accounting system Name your business and necessary registration Get a business Insurance The list of equipments/materials and where to purchase them &Hire employees

Understanding a market Place: Definition: a market can be defined as a mere geographical area where both consumers and sellers meet to

exchange their goods and services ‘’ Getting the right goods in the right quantities and qualities to the right people in the right places

at right time and at prices which the consumers are able and wiling to pay and which will yield profit to the sellers

A place where the performance of business activities that direct the flow of goods and services from producer to consumer or user.

A place where human activity directed at satisfying needs and wants through exchange processFunctions of Market Place It provides a meeting place or a forum for individuals to exchange goods and services It makes a better standard of living possible It necessitates an adequate development transport facilities It involves identification, assessment, and realization of market opportunities and potentials It enables individuals to decrease or increase their demand for stock of goods on the basis of their

relative valuationTypes of MarketsTypes of market vis a vis Pharmacy Management: Manufacturing Wholesaling RetailingPharmacy Drug distribution systems: Manufacturing→ Wholesaling→ Retailing i.e. Multi-National Pharmaceutical Corporations/ Their subsidiaries→ Indigenous Pharmaceutical Companies/ Pharmaceutical Chemists→ Pharmaceutical Chemists/Hospitals/ PMVL (Rural level).2.2.1 Market Survey:

Definition: Provides business managers with insight about their target customers such as how much

money they spend on certain types of products, whether they use competing products and the interest level for new products

Market research that measures the feelings and preferences of customers in a giving market varying greatly in size, design, purpose and offer tips for optimizing results.

Price sampling of a commodity/drug in a given segment of the market procurement tool in a competitive bidding aimed at getting the least affordable cost to the

goods, ensures the right drugs of right quality at right cost and at right time is made available to the right patientEssential steps in Market survey

Determine and define the nature, extent and size of market

17

Determine what aspects of market you want to investigate Find out where and when you can reach customers in the market Choose a simple size Prepare a list of questions with answers that will provide the data you need for your market

research Devise a way to quantify the answers you receive. Identify variables that affect your results Set a time period and location for your survey Prepare your survey forms Conduct your survey maximizing sample size and accuracy of response.

3.0 MANAGEMENT OF TIMETime is a resource that needs to be managed. Once lost cannot be regained. Time wasting diverts a manager from important task

Time is irreplaceable Vital to the personal and professional life of everyone Managers spend a great deal of time communicating and interacting with others It is important that time spent is productive effective It must be invested wisely. Time wasters tend to divert the attention of managers from very important

assignments. Techniques for \managing Time : Maintain a log of how major portions of your time is spent Schedule your least interesting tasks when you are at your peak in energy Review your job activities that can be assigned to a subordinate Regularly analyze your work to determine how and what can be combined or eliminated A good manager always has the time to do the things he or she wants to do. Evaluate the list of goals and set priority.Goal setting in relation time : Ranking objectives in relation to time and according to their importance. Using time-of-work effectively: analysis of how time is spent is necessary to determine how

effective your time is used Analyze time spent by keeping a daily log for 2-3 weeks: How much time doing each activity; who

was involved and what was accomplished Common time-wasters

Telephone interruptions Unnecessary or badly structured meetings Unscheduled visitors: visitors arriving without appointments Failure to set priorities and absence of deadlines Lack of goals and objectives Procrastination of decisions Too little or too much information Attempt to do too much in too little time Over emphasis on more routine work at the expense of harder works Long break and social chat

18

Inability to say “no”s

Elimination of time wasters You can reduce wasting your time by adopting the following techniques:

Clarify objectives Set one major objective each day and accomplish it Keep al log of how days are spent and review it Reserve the best time of the workday to concentrate on most important tasks Stay quite when a conversation is not going any where and the next person will soon stop

talking Take work to a quite place when an assignment must be complet

PERSONNEL MANAGEMENTDefinitions : Human resources management Prime responsibility for formulating, proposing, advising, and guiding the organization’s managers

on personnel policies and strategies It entails the effective and efficient utilization of human resources to accomplish the predetermined

objective of an organization. It involves recruitment, selection, training and development of needed labour force Is the organization function which deals with total management of human resource including the

determination of manpower needs as well as the recruitment, selection, placement, training, development, motivation, appraisal, compensation, promotion, discipline, discharge and succession of employees.

Functions of Personnel Management a. Staffing the organizationb. Education, Training and Development:c. Industrial Relation& joint Consultationd. Employee Servicesa. Salary Administrationb. Employee Welfare & Counselingc. Promotion and Advancementd. P (Human resources management) e. Definitions of personnel management: f. Is that specialist function of management with g. Prime responsibility for formulating, proposing, advising, and guiding the organization’s

managers on personnel policies and strategies h. It entails the effective and efficient utilization of human resources to accomplish the

predetermined objective of an organization. i. It involves recruitment, selection, training and development of needed labour force j. Is the organization function which deals with total management of human resource including

the determination of manpower needs as well as the recruitment, selection, placement, training, development, motivation, appraisal, compensation, promotion, discipline, discharge and succession of employees.

19

k. Personnel management perform both staff and line functions but more often performs only line function

l. It concerns ERSONNEL MANAGEMENT m. with managing people at work especially the specialists It involves getting people into organization to work through employment, deployment, or re-

employment. Staffing is a success when selection and training of personnel provides employees

commitment to the corporate objectives of the organization Staffing Process includes job analysis, job specification, job description, recruitment,

selection, retention and appraisal. Job Analysis: This is a process of gathering together all data about each existing job in

relation to skills requirement. It provides information about the tasks, skills, and the abilities of personnel on array of work performed in the organization

Job Description: This is a written summary of the basic tasks associated with a particular job; it usually carries a title and the qualifications(job specification) required to perform the job. The job title, job reporting structure, purpose of job and major duties are the common elements of a job description

Job Specification: Refers to the skills, knowledge personal qualities a person would need to have in order to be able to do the tasks on the job description.

Recruitment : This is the process of searching for prospective employees either from outside or within the organization. It includes stimulating the prospects to apply for available jobs and the recruitment exercise should be conducted in an efficient and cost effective manner. Preparation of `pporting documents such as job description and person specifications and guidelines on writing and placing advertisements and administrative procedures related to contacting prospective candidates

Selection:: The main goals of a selection process are as follow Organize and evaluate all the relevant information about the candidate Assess each candidate in order to forecast performance when given the job The selection process must be reliable and valid.

Retention:This includes Orientation, Quality of supervision/ Policy and Procedure manuals (PPMs):

These manual help to standardize management positions on routine decisions and ensures consistency in decisions

PPM must be abide by without exception Be reviewed periodically with input from employees and make revisions when necessary

and without delay PPMs must be made available to all the employees PPMs must be dated accordingly

Orientation: A programme designed to help new employees get acquainted with the institution with the reduced level of new anxiety. Indoctrinating the employee on the business philosophy of the pharmacy and Communicating the justification for certain policies, guidelines and practices

20

b. Education, Training and Development:Skill training involves experiences directed by the organization to help employee lean information and behavior that contribute to organizational and individual goals.

Training is an organized procedure by which an individual systematically acquired knowledge ,skill and attitude required to perform a given task or job adequately.

Training objectives To possess the necessary skill and knowledge about the job and the organizational goals and

objectives Full awareness of the policies of organization and its objectives, accompanied by an adequate

knowledge of the jobs and the part that the individual has to play The organizational culture and employee attitude towards neatness, high hygienic standard,

politeness, precision and a punctuality should be stressed Training programme consists of seven steps:

Determine need for skill training Translate skill needs to specific organization objectives i.e. specific number of people to

be trained, the skills on which training should focus, and the time for completing the training.

Select trainees on employee needs, motivation for training, skills obsolescence and retraining needs.

Design curriculum and training method i.e. either on job or off job training Formulate budget for training programme , considering the benefits of specific training

programme. Select and educate trainers Determine evaluation procedures for the training programme.

Management depends on managers who gain from training outside the job, as well as on-job training. For effectiveness, management has to be updating its manpower requirements of the job, as well as other facts and information which may arise due to changes in the phase or level of economic development

Liaising with and making training claim from Industrial Training Fund (ITF) c. Industrial Relation& joint Consultation

Conducting disciplinary interviews Collective bargaining procedures for the resolution of personal and institutional differences

and the promotion of effective communication between all parties in the organization Preparing for and attending industrial tribunals Dealing with employee grievance, discipline, productivity agreement Controlling labour cost, absenteeism, and labour turnover Maintaining industrial peace and dealing with strike and lockouts

d. Employee Services Providing the safe and good quality working environment Ensuring that pensions and fringe benefits are paid Safety rules and factory Acts

21

e. Salary Administration Fixing Salary level on employment Terms and condition of services Reviewing salary and salary budgets

f. Employee Welfare & Counseling Job security Employee personal development Social and recreational facility Staff canteen service

g. Promotion and Advancement Rewarding outstanding performance with promotion and penalizing poor performance with

demotion, stagnation, or discharge h. Administration and Records

Documentation of all employee personnel 4.2 Establishing Manpower Needs For Pharmacy selection, training, supervision, evaluation and reward in order to achieve the required corporate

objectives The most critical resource for manpower development is managerial capacity to maintain an

efficient, effective, and participative performance. It is absolutely necessary for any manager whether he is an army general, a school proprietor or a

pharmacy manager, to choose his staff carefully. 4.2.1 Sources of Professional and Non-Professional staff

There are many sources available for recruiting both professional and non-professional staff into Pharmacy establishment and these include:

Recommendation from educational institutions, Professional colleagues and other organizations Media organization: Both print and electronic media i.e. placing adverts for vacancy in the

Newspapers and local TVs. Employment Bureau e.g. Ministry of Labour, employment and productivity or National Directorate

of employment Applicants who walk in or write and ask for a job ( unsolicited applicants) Relatives or friends of those working in the company who may be contracted through company

employees 4.2.2 How to use the application for hiring staff

Selection process: sorting out of application letters and short-listing of applicants Selecting the best applicants who meet the minimum requirement Invitation to attend interview

4.2.3 How to organize InterviewThe short-listed candidates are invited to appear for interview. The objectives of the interview include:

To have detailed information on each applicant and match the best man with the job To ensure the candidate has better understanding and accurate picture of the employment and the

organization to which is being considered

22

To conduct the interview in such a transparent manner that the candidate get a feeling that he has had a fair –hearing whether he or she is engaged or not

Letter of appointment / assumption of duty4.3 DELEGATION It is the act by which an individual transfers part of his or her authority to a subordinate. Providing the subordinates with a scope of authority appropriate to the responsibility they undertake Delegation focuses on the intended results which differentiate it from work-assignment, which

focuses on the main activities only and the results are secondary objectives. Authority to delegate must be fully released to the subordinate without undue interference The responsibilities delegated are managerial in nature, which is a subdivision of decision-making,

planning, organizing, coordinating, and leading. To achieve effective delegation a manager must design the followings :

What is to be delegated Why are the selected responsibilities been delegated To whom are the responsibilities been delegated to What limi ts should be placed on the authority delegated What to delegate what NOT to delegate: routine jobs based on skills and talent of the

subordinates could be delegated while things the delegator can do best or for strategic reasons must be kept confident

4.3.1 Essential steps in delegation: Explain clearly what is expected Be certain they understand what is being delegated Give them an opportunity to do it their way Be reasonable in your expectations Be accessible to answer questions Reinforce their confidence, show trust Recognize and reward successful performance Hold them responsible for poor work Don’t expect total perfection, but adequate4.3.2 Problems associated with delegation Responsibility and accountability-the manager must guide, direct and hold accountable the

subordinate to whom authority has been delegated to Delegation without abdication-fear of losing the authority delegated Blocks to delegations:

-It prevents the preparation of subordinate as a replacement It prevents self development of subordinate as a potential contender to the boss job Dominant manager is over burden with unnecessary details.

4.3.3 Discipline in Pharmacy business & assessment of delegated jobs. Working with different type of people: 4 types of people:

Those who make things happen Those who watch things happen Those who don’t know what’s happening Those who don’t want to know what’s happening

Making and enforcing decision:

23

Decisiveness is required to gain respect of others Setting objectives and conceptualize the end results of your decision Prioritize your objectives and analyze the alternatives Implement the decision :define who, does what, when, and how much; assign responsibilities

, give authority to act and follow-up Differentiate between big decisions and little problems Avoid crisis decisions Rely on established policies when possible Accommodate changes when necessary especially when new information becomes available

The following offences can lead to disciplinary action: Dishonesty, deception, fraud, including computer fraud Unexcused and excessive absence, leaving work without permission Alcohol or drug substance abuse Using company resources for outside gain Discourtesy to customers

Assessment of delegated jobs: An appraisal is normally intended to record an assessment of employee performance, potential

and development It is an opportunity to take an overall view of delegated work content, loads, and volume and To improve current performance, provide feedback, identify potentials and aid career

development.4.4 MOTIVATION: What is motivation? Set of reasons making one to engage in particular behavior It is a state of being stimulated to take action to achieve a goal or to satisfy a need It comes from within an individual, and may rooted to minimize pain It can be intrinsic e.g. hobby and associated with high educational achievement or extrinsic i.e. comes

from others e.g. money, competition and trophies Motivation is needed to excel and what do you do to excel:

Sharpen your skills, and develop your natural talents Be innovative and think positively and of something new Find a mentor. Surround yourself with people of great ideals, lean about great achievers and

practice their lifestyle e.g. Ahmadu Bello, Sadauna of Sokoto, Nelson Mandella etc Market yourself, and study things in the environment Keep learning or else you will expire Network and seize opportunities Build your reputation ,cherish your dreams as they are your possibilities Self-discipline and serious minded and be self- reliant Display high level of Sincerity, hardworking, enthusiasm and be indispensable Achieve success with 5Ds-Dependable, Determination, Delight, Detailed and Devoted. The right disposition to life: Be courageous, be confident, be optimistic, be focused See failure as a stepping stone to success and rising any time there is a fall Good appearance with the right ATTITUDE (100%)

24

4.4.1 Major approaches to motivation:3 Major approaches underlying the study of motivation

Paternalistic approach Scientific Management approach Participative Management approach

Paternalistic approach : Based on assumption that performance is directly proportional to the extent to which an

employees are satisfied with their jobs Unconditional rewards such as pension scheme, group Insurance e.g. NHIS, Subsidized

education, recreational programme and free medical services etc are very much consistent with this approach

In this approach the manager provides the subordinates with the things he wanted and in return reciprocate by displaying a high sense of responsibility, enthusiasm and loyalty

This approach is WEAK because it operates primarily on job satisfaction . Scientific management approach:

Carrot and stick approach The reward and penalty are tied directly to employee’s job performance Conditional reward-reward is directly attached to performance e.g. wage and salary incentives,

promotion on merit, overtime payment, awards etc Penalties are also served upon falling bellow stipulated standards e.g. Query, Warning,

Reprimand, Suspension, Interdiction, or outright dismissal It focuses on the formulation and definitions of standards Monitoring the behaviour of individuals in the organization Allocation of rewards and penalties based on observed performance e.g. appointment, promotion

and disciplinary committee The basic weakness of this approach is the correct appropriation of rewards and penalties relative

to employee’s behavior and the assessment of performance from rank and file positions to the managerial cadres.

Participative management approach: Individual drives satisfaction from doing an effective job and emotionally stable to attain the

overall corporate objectives It is the same as management by objectives (MBO) According to PETER DRUCKER , The discretionary component is enlarged and THE

Programme component is reduced and an employee is given a broad goals of objective and to determine for himself how they have to be achieved and

Given employee free hand on the determination of his job has a direct bearing on his output and a source of self development

There is also reduction in the use of authority as a means of control Mc Gregor-Theory –Y documented this approach. “ The manager is a teacher, a consultant, a

colleague but very rarely a boss” It emphasis on the utilization of work group in problem solving and the decision making units

and incentive for effective performance in the task, individual relationship with the members of

25

working team, creative condition and enabling environment under which effective performance can be a goal rather than a mean to attainment of goals.

The philosophy of self-control, self-regulation rather than organizational control is more influential at higher level than at lower level of the organization

4.4.2 THEORIES OF MOTIVATION:Need satisfaction theories: Based on the assumption that human beings have needs and their desire to satisfy specific needs that

initiates behavior. E.g. @ Maslow’s Need Hierarchy Theory and (b) Hertzberg’s 2-Factor Theory

Instrumental Theories Based on assumption that the path that leads to a goal is influenced by the perception and value of

members of organization E.g. Victor Vroom Expectancy Theory

Maslow’s need hierarchy theories: Human needs are classified along 5 hierarchy levels i.e. Physiological Needs- necessary for biological survival e.g. food, air, water etc Safety Needs include freedom from war, diseases, natural catastrophes, job security etc Affection/love Needs e.g. Interaction with friends, sweet heart, working pairs etc Esteem Needs –the desire for strength, achievement, reputation, attention, importance etc Self- actualization desire for self –fulfilment and to become more and more of what one is capable The physiological and safety needs are called propotant while the affection, esteem, and self-

actualization tagged deficit propotant

Abraham Maslow’s Hierarchy of Needs

26

Hertzerberg’s 2 factor theory: Explained that certain job-related factors when present at work place increase the level of

satisfaction with the job but do not necessarily motivate the workers to put more efforts into the job. This he called HYGIENE factor e.g. Company policy, Supervision, working condition, salary , Interpersonal relationship, administration etc

A second set of factors which he called MOTIVATORS should be built into a job by the manager to motivate his work team and these include –achievement, recognition, the work itself, responsibility and advancement

Both factors should be applied by manager to motivate his workers Hygiene factor is called DISSATISFIERS, short term gain while motivator is called

satisfiers Mcgregor’s theory X & Y:

Develop his 2 theories base on MaslowTheory X has 3 attributes:

Man apparently dislikes works , and he avoids work Because he dislike work , he must be coerced, controlled, directed and threatened with

punishment to attain organizational goals The average man prefers to be directed, he wishes to avoid responsibilities and has little

ambition and he want security Old, authoritarian style of leadership

Theory Y--- Attributes Work is as natural as play External control is not the only way to enforce the achievement of organizational

goals but when he is committed he exercise self-direction towards goal achievement

The average man seeks responsibilities, his avoidance of it generally pose frustration and poor performance and rebel against the organization

Enlightened and humanistic style of leadership Which theory would be best applied to pharmacy business?

Expectancy theory:E.g. Victor Vroom Theory

Motivation towards an action would be determined by perceived value of outcomes (positive or negative) multiplied by the strength of that person expectation that the outcomes will yield the desired goals.

Valence –the strength , value, incentive, attitude, expected utility of individual, and preference for particular outcome

How important are motivational theories in today Pharmacy Practice Management?

Job restructuring: The concept of job restructuring can derived from Hertzberg 2-factory theory and the Hygiene

factors which when built in a job will increase the employee performance According to Hertzberg job must be restructured in order to increase performance and ability of

workers to achieve meaningful goals.

27

Job restructuring creates job enrichment with emphasis on achievement, responsibility, interest on the job with a high sense of challenge , which quite different from job enlargement which aim to remove the dullness associated with performing repetitive and routine job

Job could be enriched through the followings: Given worker free hands to carry out assigned responsibility Encourage participation of subordinates and interaction among workers Give workers a feeling of sense of belonging and personal responsibility for their task X-Ray and appreciate workers contribution to successful completion of assigned

responsibility Give workers feedback on their job performance Involve workers in the analysis and change of physical aspect of work environment

Type of workers in Pharmacy business & How to motivate them/N Workers Manufacturing Wholesaling Retailing1 Pharmacists / / /2 Technicians / -- --3 Sale personnel / / /4 Accountant / / /5 Quality Control Personnel / -- --6 Pharmacologist / -- --7 Administration / / /8 Store Personnel / / /9 Driver / / /10 Cleaners / / /

4.5 PERFORMANCE EVALUATION: Is the process of systematic appraisal, analysis, and recording information about the employee

performance and progress in the job The overall objective of employee performance evaluation is to improve the efficiency of the

organization by trying to get the best out of the individual working for it. Why carrying out an employee assessment?

Salary reviews The development and training of individual employee Planning for job rotation Promotion exercise

4.5.1 Approach of Performance Evaluation:A Process base-approach:

It is based on the systemic analysis of work done to achieve a predetermined results e.g. operation research, job evaluation ,and management by setting objectives (MBO) A People base- approach:

Putting the right people with the right skill in the right jobs and effective management and motivation e.g. training needs analysis, succession planning, performance related-pay.

4.5.2 Performance Evaluation Methods:Assessment of employee output: Objective and subjective measures

28

Objective data include : sales, unit produced, no of errors recorded, amount of scraps, personnel data, turnover rate etc

Subjective data: Paired comparison, assays and graphic rating scale.Employee achievement:

Periodic upward Salary review Promotion and training facilities Staff recognition and award of excellence. All these lead to greater productivity Performance appraisal using job description: SOP-standard operation procedures, Job requirement and job components.

Job Performance interview: Mutual understanding of the job standardization, job specialization and job objectivity shall be

examinedHiring: Careful selection of employees to run pharmacy business involves: Identify the area of the business that requires hiring an employee Place adequate publicity for the vacancy posts Set up a selection interview panel with detail and specific job requirement.

Firing: This is ultimate penalty melted on an erring employee when all efforts to correct such employee

failed. Firing an employee may arise from any of the following offences:

cxGross insubordination Fraudulent activity against the organization Negligence and non- performance of assigned duties and responsibilities Sabotaging the smooth operational activity of the organization ,etc

4.6 COMPENSATIONWhy compensating an employee

Retain employee whose production will yield income / benefits to the organization Secure the best value for both the employers and the employees Welfare and recognition of outstanding contribution to organization achievement To avoid unnecessary staff resignation due to :

Low wages lack of advancement

4.6.1 Methods of compensation: Salary administration: Salary and Wages commission.

Fringe Benefits- Payment receive by an employee for the period is not working e.g. sick leave, annual leave,

maternity leave, study leave, public holidays, sabbatical leave and pension scheme. Award for special statue: long service merit awards, bicycle, furniture, car, housing and other loans. ` Cafeteria service, sport facility, etc Staff turnover : Staff rotation and staff re-deployment

29

5.0 Contemporary concepts in Pharmacy:Pharmacy computer system:5.1 Functions of computer in Pharmacy practice

Managerial control function Computerization of entire accounting system Sales analysis Inventory control system Credit control system Personnel records Professional functions etc

5.2 Types of computers Microcomputer based systems Minicomputer based systems Mainframe computer system

30