PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
ORGANIZING
→ deployment of organizational resources to achieve strategic goals
→ process of classifying and ______________ personnel, establishing ________________ among them, and
defining their ____________ and __________________.
ORGANIZATION - the framework in which the organization defines how _________ are divided, ______________
are deployed, and ____________________ are coordinated.
ORGANIZING PROCESS
ORGANIZATION STRUCTURE
→ The set of __________ tasks assigned to individuals and departments
→ Formal reporting relationship, including lines of authority, decision responsibility, number of _______________
levels, and span of manager’s control
→ Design of system to ensure ______________ coordination of employees across departments
_________________________ - the visual representation of an organization’s structure
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
PURPOSES OF AN ORGANIZATION CHART
To assist in viewing the firm’s whole structure
To help management in dividing the different duties or functions of 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
PRINCIPLES OF ORGANIZATION:
1. ________________________
2. _________________________
- degree to which jobs in the organization are standardized
- emphasizes ______________ of the structure
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
3. Centralization vs. Decentralization
______________________ - concentration of decision-making power at a single point in the organization
______________________ - decision authority is pushed downward to lower organization levels
Advantages: (a) Relieve burden on top managers
(b) Make greater use of employees’ skills and abilities
(c) Ensure decisions are made close to the action by well-informed people
(d) Permit more rapid response to changes
Key Considerations:
Greater change and _________________ in the environment are usually associated with decentralization.
Amount of centralization should fit the firm’s strategy. (Example: Google – decentralization fit with the
strategy of allowing creative people to innovate and respond quickly to customer needs)
In times of crisis or risk of company failure, authority may be centralized at the top
4. _________________________ - degree to which jobs in the organization are standardized
Pros: Employees specialized in a single task. Jobs tend to be small but they are performed efficiently.
Cons: Employees are isolated and do only a single, “boring” job. Creates separation and hinders coordination.
5. _________________________
- an unbroken line of authority that links all employees in an organization and shows who report to whom
- associated with two underlying principles:
(a) ________________________ - each employee is held accountable to only one supervisor
(b) ________________________ - clearly defined line of authority in the organization that includes all employees
6. _________________________
→ Number of employees reporting to a supervisor.
→ Traditional views of organization design recommend a span of management of about ________
subordinates per manager.
→ When supervisors must be closely involved with subordinates, the span should be _______, and when
supervisors need little involvement with subordinates, it can be large.
Factors associated with large scan of control:
a) Work performed by subordinates is stable and routine
b) Subordinates perform similar work tasks
c) Subordinates are concentrated in a single _____________
d) Subordinates are ____________________ and need little direction in performing tasks
e) Rules and procedures defining task activities
f) Support system and personnel are available for the manager
g) Little time is required in non-supervisory activities, such as coordination with other departments or planning
h) Managers’ personal preferences and styles favor a large span
i) Average span of control used is an organization determines whether the structure is tall or flat.
____________ – has a wide span, is horizontally dispersed, and has a fewer hierarchical levels
____________- has a narrow span and more hierarchical levels.
7. __________________________ - balance of responsibility and authority
_____________________
→ formal and legitimate right of a manager to make decision, issue orders, and allocate resources to
achieve the organizationally desired outcomes.
→ distinguished by three characteristics:
a) It is vested in organizational _____________, not people
b) It flows down the _________________________
c) It is accepted by _____________
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
________________________ - perform tasks that reflect the organization’s primary goal and mission
________________________- provide specialized skills in support of the departments, and have advisory
relationship with line departments
___________________________ - duty to perform the tasks or activities as assigned
- managers are assigned authority commensurate with their responsibilities
___________________________- mechanism through which authority and responsibility are brought into
alignment
___________________________ - process used to transfer authority and responsibilities to positions below them in
the hierarchy
- most organizations today encourage managers to delegate authority to the
__________ possible level to provide maximum flexibility to meet customer needs
and adopt to the environment
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
8. _____________________________ - basis for grouping positions into departments and departments into total
organization
a. __________________________ - rely on chain of command to define departmental groupings and reporting
relationships along with the hierarchy: (1) Functional, (2) Divisional, and (3) Matrix
b. __________________________ - have emerged to meet the changing organizational needs in a turbulent
global environment: (4) Tram-based network, and (5) Virtual network
(1) _______________________
(2) _______________________
• M-Form; Multidivisional or Decentralized form
• Departments are grouped together based on similar organizational output
• Divisions are created as self-contained units, with separate functional departments for each division.
Departments are duplicated across product line
• Diverse departments are brought together to produce a single organizational output (product, a
program, or service )to a single customer.
• Geographic or customer-based division
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
(3) ___________________________
(4) _____________________________
(5) _____________________________
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
DISADVANTAGES OF STRUCTURAL DESIGNS:
ORGANIZING FOR HORIZONTAL COORDINATION
- The trend is towards breaking down barriers between departments, and many companies are moving
towards horizontal structures based on work processes rather than departmental functions.
COORDINATION COLLABORATION
managerial task of a joint effort between
adjusting and people from 2 or more
synchronizing the departments to produce
diverse activities outcomes that meet a
among different common goal or shared
individuals and purpose, and that are
departments typically greater than what
any of the individuals or
departments could achieve
working alone
___________________________ refers to radical redesign of business processes to achieve dramatic improvements
in cost, quality, service, and speed.
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
Shift from Vertical to _________________
• Vertical function structure is effective in stable environments, but does not provide horizontal
coordination needed in times of rapid change.
• Innovations like cross-functional teams, task force, and project managers work within vertical structure,
while providing a means to increase horizontal communication and cooperation.
___________________________________________________________
- Highest level of horizontal coordination
- Refers to frequent, __________, __________________ communication carried out through relationships of shared
goals, shared knowledge, and mutual respect.
- Coordination is carried out through a web of ongoing positive relationship rather than because of formal
coordination roles or mechanisms.
DEPARTMENT ORGANIZATION STRUCTURE (FORMAL)
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
DEPARTMENT ORGANIZATION STRUCTURE (INFORMAL)
Organization by time
Organization by number – to manage a large number of employees with similar skill set or specialization
Organization by function – applied when there is a considerable diversity in jobs and skills required to
accomplish a task satisfactorily
a) ________________ functions – prescription dispensing, patient consultation, patient drug record
system, compounding, clinical pharmacy functions, pharmacovigilance, and professional relations
b) Merchandising functions – purchasing, inventory management, marketing (promotions and sales),
warehousing
c) Financial functions – general accounting, budgeting, operational analysis and control
d) Personnel functions – hiring and recruitment, performance evaluation, training, salary and benefits
determination, plantilla review, job leveling, and other employee relations including fringe benefits.
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PHARMACY ADMINISTRATION, LEADERSHIP, AND MANAGEMENT
LECTURE NOTES
MANAGEMENT FUNCTIONS: ORGANIZING
BENEFITS OF GOOD ORGANIZATION:
1. Well-established responsibilities and prevention of “buck-passing”
2. Ease of communication among managers and staff
3. Development of executive abilities
4. Elimination of ________________disputes between individuals
5. Effective measurement of a person’s work performance based on her duties and responsibilities
6. ______________________ of work, functions, and/or personnel supervision.
7. Expansion and contraction are permitted without seriously disorganizing the structure
8. “Dead-end” jobs are pointed out
9. Business can move toward the direction of the “ideal” organization in times of change
10. Develops good coordination and _______________ of employees
11. Clear and definite delineation of avenues of promotion
12. Prevents _________________ of work
“Whoever loves discipline loves knowledge,
But he who hates reproof is stupid.”
Proverbs 12:1 (ESV)
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