PMNL WEEK 3 Flashcards
It is an entity comprising multiple people, such as an institution, association or company.
Organization
The process of classifying and categorizing personnel, establishing relationship among them and defining their authority and responsibilities.
Organizing
5 main steps of Organization
- Reflect on plans and objectives
- Establish major tasks
- Divide major tasks into subtasks
- Allocate resources and directives for subtasks
- Evaluate results of operationalizing the organizing strategy
Fundamentals of Organizing
- The structure must reflect objective and plans
- The structure must reflect authority
- The structure should reflect the external environment
- The organization must consider employees’ and customer’ limitation, customs and traditions
Importance of Organizing
- Important in the overall management of an organization because it is the primary mechanism that managers use to implement plans.
- Provides the structure for how material and human resources are utilized in the organization
- Help minimize the productivity of the organization
7 basic steps of oganizing
- Defining goals
- Identifying and defining each task to be completed
- Grouping related tasks into a specific job
- Grouping employees into job units that are related in some manner
- Assigning a manager to each unit
- Arranging these units relative to one another both horizontally and vertically
- Establishing a control system for monitoring the progress and achievements of each unit
All employees need to know their responsibilities , their supervisors (who they report to), and their subordinates (who reports to them).
True
An ambiguous work environment will result in unperformed or
underperformed task and breed frustration among employees.
True
In a pharmacy where most employees can influence its survival and
success, an organized work environment is highly essential
True
The division of executives, departments and group of workers in terms of their activities or tasks.
Organizational structure
The chart also helps to correct any visible ______.
Weakness
The degree to which units are dissimilar. (Horizontal, vertical and spatial)
Differentiation
The degree to which jobs in the organization are standardized.
Formalization
The concentration of decision-making power at a single point in the organization.
Centralization
Also known as complexity.
Differentiation
Formalization and centralization (_____, ____?
Robbins, 2005
Describes differences among workers in the organization.
Horizontal differentiation
Horizontal differentiation includes?
• Education
• Type of training
• Task assigned to them
- Focuses on the differences in hierarchical positions.
- This involves “chain of command”
- Used to depict the relationship and the hierarchy of authority in an organization
Vertical Differentiation
Involves location or sites of an organization’s units, whether they are in one place or spread across several areas.
Spatial Differentiation
Emphasizes the maintenance of the structure.
Formalization
Formalization includes?
• Rules
• Procedural specification
• Technical competence
• Impersonality
- Concentration of decision-making power at a single point in the organization.
- The highest levels of management usually make most of the policy decisions in a centralized organization
- Recent trends has been to decentralize decision making and move it to lower levels of management
Centralization
- Can be observed in pharmacies where pharmacist are assigned with specific functions
- Expected to results in heightened efficiency in the utilization of specialized skills of individual employees.
Division of Labor
Disadvantage of Division of Labor?
Employees assigned with singular tasks will not develop comprehensive skill sets in the field
Responsibility for decisions cannot be passed on while the authority to make them can be share and/or given to others.
Parity of Authority and Responsibility
Individual employee must report to only one supervisor or manager.
Unity of Command
The number of employees a manager can effectively control.
Span of Control
Categorization of individuals according to the specific task they must perform.
Departmentalization
- Shows the composition of an entire business, for each department, or for each section of a business.
- Shows the department/tasks of these sections, their divisions and their interrelationships
Organizational Chart
Organizational Structures: Formal
• Line Organization
• Line-and-Staff Organization
Organizational Structures: Informal
• Organization by Time
• Organization by Number
• Organization by Function
Developing a pharmacy’s ideal organization structure involves a two-step process whether in a community or hospital setting:
• Management must identify a relatively standard organizational design that best fits the pharmacy’s needs
• Design must be constructed to coincide with the preference of the owner, administrator or board of trustees.
Purposes of Organizational Chart:
• To assist in viewing the firm’s whole structure
• To help management in dividing the different duties or functions in the business
• To show the grouping of departments in order to easily direct and control activities
• To sort the responsibilities of the positions so there will be no wasted time or effort
Straight and direct line of responsibility and control from the top management.
Line Organization
Established from the general manager to department or section head who shares the same level of authority and is independent of the other.
Line Organization
Usually found in smaller pharmacies that employ fewer people (3-8).
Line Organization
Advantages of Line Organization
• Centralization of authority
• Regarding small concerns, the chief executive and principal assistants are capable of handling these concerns
• Problems solved promptly
• Direct lines of authority make it easy ti define responsibility
• Overhead expenses are likely to decrease due to simple functionalization
Disadvantages of Line Organization
• Growth of an organization can increase the workload and responsibilities of each department head
• Instructions have to follow the flow of the chain of command because they are not directly given to the assigned worker.
• Line executives are less likely to find themselves in a position to acquire expert knowledge in a particular field and gain relevant experience therein.
To compensate for the lack of needed specialist within the line organization structure.
Line-and-Staff-Organization
- Employs assistance of specialist
- Most common in larger pharmacies
Line-and-Staff-Organization
Still makes use of the features of the line organizational structure but assisted by technical specialist who have expertise in some of the finer points of the business.
Line-and-Staff-Organization
The problem with Line-and-Staff-Organization structure?
- Violation of the principle of unity of command
- Non-management employees often find themselves being given directions by both line and staff personnel.
Solution with Line-and-Staff-Organization?
Give line managers absolute authority and use staff members as advisors to line management only.
The only time severe action should be taken against the informal organization structure when the organizational goals no longer foster productivity in the pharmacy.
Informal Organizational Structures
One of the simplest methods of organizing a group of employees based on their working hours.
Organization by Time
This can be applied when a group of employees with similar skill or set of specialization is too large to be effectively supervised by one person.
Organization by Number
This structure is applied where there is considerate diversity in jobs and skills required to accomplish a task satisfactorily.
Organization by Function
- They are responsible for the financial health of an organization.
- They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.
Financial Managers
- May oversee the acquisition of materials needed for production, general supplies, or offices and facilities equipment, or construction contracts.
- Often supervises purchasing agents and buyers.
Purchasing Manager
Defined depending on the functions the department is associated with.
Research and Development department
Several main functions of R&D department:
• Researches for and development of new products
• Product maintenancr and enhancement
• Quality and regulatory compliance
Ultimately responsible for ensuring that all aspects of the production are completed within budget, according to the designer’s and director’s wishes, and in time for the first public performance.
Production Manager
A person within a company who supervises and helps create the various advertising or merchandising sales campaigns the business uses to sell itself and its products.
Marketing manager
Estimates demand for products and services, using data from marketing research studies.
Marketing manager
Their work involves overseeing employee relations, securing regulatory compliance, and administering employee-related services such as payroll, training, and benefits.
Human Resource Manager (HRM)
Maintains the work structure by updating job requirements and job descriptions for all positions.
Human Resource Manager (HRM)
Importance of Organizational Structure:
- Organizations need structure in order to function and grow.
- Improve lines of communication.
- To know whom to report to and responsibilities are passed around.
- To have an organized flow of leadership.
- Create a visual directory of employees.
- The value system of an organization
- The ethical context in which goods and services are rendered
Organizational Philosophy
- Important tools managers can use to “biopsy” the organization’s value system
Ethics audit
It provides an understanding of culture so that the culture’s value can be moved in the desired direction.
Ethics audit
“It is possible to define a company’s culture as a set of common beliefs, goals, attitudes, and practices that constitute a company’s culture.”
Culture
Types of Organizational Structure
- Functional Organization
- Divisional Organization
- Matrix Organization
- Flatarchy Organizatiom
4 reasons why we set the number of organizational levels at a minimum
- The effect of line loss
- The effect of organizational steps
- The principal of split functions
- Principle of management emphasis
The greater the number of organizational levels , the greater the tendency for communication between the top and lower levels to weaken.
The effect of line loss
When people coordinate their efforts with those of other people, they divert their efforts from other endeavors.
The effect of organizational steps
Tends to force functional supervision to the next higher level, where work tends to be grouped under the strongest Individuals.
The principle of split functions
When supervising two or more functions, products or units, a manager tends to show preferential emphasis in his decisions/choices.
Principle of management emphasis
Refers to the process of assigning responsibility and authority to lower level employees.
Delegation
Is a skill that the manager can effectively perform through practice and the motivation of his/her subordinates.
Delegation
Positive motivation can be given with psychological, monetary or tangible benefits.
Delegation
Elements of Delegation
- Responsibility
- Authority
- Accountability
Types of authority
- Traditional
- Behaviorist/Social Scientist
- Functional
