IPAML REVIEWER

PLANNING PRINCIPLES OF MANAGEMENT

14. Esprit de corps - this principle explains
Planning - is the process of developing, that “in union there is strength”.
organizing, and evaluating the activities
required to achieve a desired goal TYPES OF PLANNING

PRINCIPLES OF MANAGEMENT • Strategic Planning - this ensures the

effectivity and efficiency of an organization.
1. Division of work - specialized jobs are
assigned to various departments and • Operation Planning - this ensures that the
position. organization is prepared to effectively perform
2. Authority and Responsibility - and accomplish it task and objectives.
employees should have authority for ensuring
the performance and completion of tasks • Business Planning - this determines the
assigned to them. profitability of the specific business or
3. Span of Control - refers to the limitation program.
on the numbers of subordinates that a
manager can effectively administer and • Resource Planning - this guarantees the
control. availability of resources needed to carry out
4. Unity of Command - employees must its strategies to achieve the organization’s
report to a single direct supervisor with whom goal.
he or she is responsible.
5. Unity of Direction - a group of activities • Organizational Planning - this ascertains
should have one boss and one plan with the the coordination and orderly arrangement of
same objective. an organization in order to face and
6. Subordination of individual interest to challenges in the future,
general interest - the interest of one
individual or groups of individuals should not • Contingency Planning - this provides a
outweigh the interest of the business. fallback for the organization in case the
7. Remuneration - there should be a fair original plan fails or incase of an unforeseen
method of payment that affords the maximum event.
possible satisfaction to both employees and
the employer. LIMITATIONS OF PLANNING
8. Centralization - this refers to the extent to
which authority is concentrated. - Planning, to some degree, involves
9. Scalar Chain - any organization, ultimate educated and experienced guesswork.
authority lies at the top and communication - Plans and predictions are only as good as
flows downward. the date and information that are given.
10. Order - this ensures that employees are - Planning is nothing without action.
assigned and resources are allocated - The planning process should consider the
properly in the organization. changing environment and circumstances.
11. Equity - it involves the fair and kind
treatment of the employees.
12. Stability of tenure - unnecessary labor
turnover can be the cause and effect of bad
management.
13. Simplicity - unnecessary elements that
could complicate plans and activities should
be eliminated from all activities.
VISION AND MISSION STRATEGY
• Strategy is the method of shaping a
VISION company’s future and involves determining
• The vision is the pharmacy's desired goal the organization’s long term direction.
how it perceives itself to be in the future.
• The vision statement should be concise but PROCESS OF STRATEGIC PLANNING
meaningful.
• The vision statement should be motivational 1. PRE-PLANNING PHASE - this can be
and should prompt people to strive for defined as the planning of the steps
something greater necessary to organize the strategic planning
• A company vision statement should inspire effort or the “planning for the planning”.
employees to create a different and better 2. PLANNING PHASE - this can be referred
future for the organization. to as strategizing, in which ideas and
• The vision of the organization serves as a suggestions are developed for the pharmacy
guide in the strategic planning process as organizations.
both the beginning point and the end point. 3. POST-PLANNING PHASE - this phase
• The vision is also used to define the mission involves three important steps:
of the organization. (a) Communication
(b) Implementations
MISSION (c) Monitoring progress once the plan is
• The mission is the pharmacy's purpose. implemented.
• The mission statement defines the company
-what it is and what it does. DECISION-MAKING
• It is a statement of the present going ahead • is the essence of management. This is the
into the near future. process of choosing a specific course of
• It is a document that creates a sense of action
purpose for the customers and the
employees.
• The mission statement should be concise
and should focus on the purpose of the
organization.
• The mission statement should distinguish
the company from others that provide similar
goods and services
• Some organizations include in the mission
statement not only what the company does
but also how it does things-distinguishing
itself from other similar companies

OBJECTIVES AND GOALS

- the terms objective and goal are frequently
interchangeable.
- Objectives are established at the
organizational, departmental, or individual
level.
- A set goal prescribes a definite scope and
suggests direction to maximize the efforts of
the manager.