Pharmacy Management

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History of management :
➢Healthcare is the number 1 business
industry in the US today This Photo by Unknown Author is licensed under CC BY

➢Born in the industrial era & have

continued to evolve through today’s
technological age
➢Pharmaceutical Care -entirely clinical
in nature
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Pharmaceutical care
➢is the responsible provision of
drug therapy for the purpose of
achieving definite outcomes that
improve the patients' quality of
life

This Photo by Unknown Author is licensed under CC BY-SA

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History:
•From Pharmaceutical care to Medication
Therapy Management (MTM )
•Represents a comprehensive and proactive
approach to help patients maximize the benefits
from drug therapy
•compliance to drug therapy
•Educate entire populations of persons
•Conduct wellness programs This Photo by Unknown Author is licensed under
CC BY-SA

•Become more intimately involved in disease

management & monitoring. 4
Management Key concepts
I. Traditional (classical
Management)
II. Human Relations Focus
III. Integrating Management
Theories
IV. Contingency Management
V. Contemporary Management
This Photo by Unknown Author is licensed5under CC BY-SA-
NC
I-Traditional (Classical Management)

Structures:
1.Rule of bureaucracy
2.Scientific theories
3.administration

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3 key attributes of bureaucracy :
➢Rational authority-law ,procedures & rules
➢Positional authority-superior vs subordinate
relationship
➢Charismatic authority-focuses on the personal
qualities of an individual

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1.2 Scientific theories
•Focuses on machine-worker relationship to
This Photo by Unknown Author is licensed under CC BY-SA-NC

improve the –efficiency of production

•Gantt chart –tool used for scheduling
overlapping tasks
•a chart in which a series of horizontal lines
shows the amount of work done or production
completed in certain periods of time in relation
to the amount planned for those periods. 8
1.3 administrative management
•Emphasized the manager and the functions of
management
•Made by Fayol and Follett’s theories

This Photo by Unknown Author is licensed

under CC BY-NC-ND 9
 Classical management functions that
manager also need
1.Energize – today’s managers need to have a
vision of what they want to create and energy to
make it happen
• Energy and enthusiasm generally attract
motivated pharmacist and other personnel who
share their vision and want to work with them
• These managers also seem to find the resources
they need to carry out their vision or make the
This Photo by Unknown Author is licensed under CC BY-SA

most of what they already have

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 2.Empower

➢managers should empower their employees to do

what needs to be done
• much like the coach of a team
• Good coaches empower their players to carry out their
game plan
• Managers who empower their employees provide
them with training, resources, and advice and This Photo by Unknown Author is licensed under CC BY-SA-NC

occasionally discipline and then let the employees get

the job done
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 3.Support
➢after manager has empowered her employees to do their
jobs, she should not just leave them on their own , especially
when things start to go wrong
• Providing support does not mean that managers should be
willing to do their employee’s work or always agree with the This Photo by Unknown Author is licensed under CC BY-
NC-ND

decisions their employees make on the job

• It does mean that mangers need to provide their employees
with the training, resources, and authority needed to their
jobs
• Balance the needs and resources of their organizations with
what their employees need
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4.Communicator- In today’s information-laden environment,
communication between managers and employees is more important than
ever.
➢While managers can energize, empower, and support
their employees, if they cannot communicate their
messages, they will not be effective, and their
organizations will suffer.
➢The cornerstone of communications in any
environment is trust. This Photo by Unknown Author is licensed under CC BY-NC

➢If employees feel that they can bring up any question

or concern to a manager, they probably will be much
more receptive to what the manager has to say
➢(ex. Disciplining or firing an employee in a text message
on cell phone is not good idea)
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Henry Fayol’s 5 functions of management
1.Planning Forecast and plan
2.Organizing /Organize
3.Commanding / Command
4.Coordinating /Coordinate
5.Controlling / Control

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Follet’s managerial concept’s
•Universal goal of an organization is to achieve an
integration of multiple individual efforts into a
synergistic whole.
•Reciprocal responses
a.Feedback
b.2 way communication

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This Photo by Unknown Author is licensed under CC BY-SA
II.Human relations Focus
•Hawthorne studies -were designed to find ways
to increase worker productivity
•Maslow’s hierarchy of needs- is a motivational
theory in psychology comprising a five-tier model
of human needs, often depicted as hierarchical

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Mc Gregor Theory

•Theory X – pessimistic –do not like to work

and they must be strictly controlled and
forced to work
•Theory Y – optimistic – work objective
(commitment)
•Theory Z – value of employee participation,
trust and employee empowerment
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III-Integrating Management theories
=multiple units that operate as 1 system

Organizations
➢Input
➢output
Ex . Finance , human resources
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IV-Contingency
=connection between organizational policies or
procedures and the characteristics of the
situation
=focus on circumstances

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 V-Contemporary management
➢quality as an integral part of goods and services
Purpose and Goal:
1.Mission-help the organization move forward
2.Vision-based on fundamental motivating principles,
values associated w/ life
Example:
Mission:To contribute to the enrichment of quality of life around the world through the
creation of innovative pharmaceuticals, and through the provision of pharmaceuticals
addressing diverse medical needs
Vision : Is to be recognized as a leading specialty biopharmaceutical company 22
SLOGAN- a short & striking or memorable
phrase used in advertising or motto
• Guarding your right for Competent Pharmacy Care – Sinai Quick
Stop Pharmacy. ...
• Feeling Well, Living Better. – ...
• We care for your Health – Dooley Pharmacy. ...
• Caring beyond Prescriptions. – ...
• We always make time for you – Medicap Pharmacy. ...
• Small enough to know you, Big Enough to serve your every need

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Core Values example
• Innovation
• Integrity
• Accountability

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PHARMACEUTICAL CARE PRACTICE DOMAIN
• I. RISK MANAGEMENT
• II.PATIENT ADVOCACY
• III.DISEASE MANAGEMENT
• IV.PHARMACEUTICAL CARE SERVICES MARKETING
• V. BUSINESS MANAGEMENT

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I.RISK MANAGEMENT
• Devise system of data collection
• Perform prospective drug utilization review
• Document therapeutic interventions and activities
• Obtain over-the-counter medication history
• Calculate dosages for drugs with a narrow therapeutic index
• Report adverse drug events to FDA
• Triage patient’s needs for proper referral
• Remain abreast of newly uncovered advice effects and drug-drug
interactions
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II. PATIENT ADVOCACY
• Serve as patient advocate with respect to social, economic and
psychological barriers to drug therapy
• Attempt to change patients’ medication orders when barriers to
compliance exist
• Counsel patients on new and refill medications as necessary
• Promote patient wellness
• Maintain caring, friendly relationship with patients
• Telephone patients to obtain medication orders called in and not
picked up

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III.DISEASE MANAGEMENT
• Provide information to patients on how to manage their disease
state/condition
• Monitor patients’ progress resulting from pharmacotherapy
• Carry inventory of products necessary for patients to execute a
therapeutic plan(ex inhalers, nebulizers, glucose monitors, etc)
• Supply patients with information on support and educational
groups(ex. American diabetes association, multiple sclerosis society)

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IV. PHARMACEUTICAL CARE SERVICES
MARKETING
• Meet prominent prescribers in the local area of practice
• Be an active member of professional associations that support the
concept of pharmaceutical care
• Make available an area for private consultation services for patients
as necessary
• Identify software that facilitates pharmacists’ patient care-related
activities

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FACTORS AFFECTING THE DELIVERY OF
PHARMACY PRODUCTS AND SERVICES
• 1.PATIENT DEMOGRAPHICS
• 2.ATTITUDES AND BELIEF SYSTEMS
• 3.THIRD PARTY PAYERS AND COVERAGE ISSUES
• 4.COMPETITIVE MARKETS
• 5.TECHNOLOGY

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1.PATIENT DEMOGRAPHICS
• AGING POPULATIONS
• FEMALES AS DECISION MAKERS
• ETHNIC COMPOSITION OF PATIENTS

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2.ATTITUDES AND BELIEF SYSTEMS
• BELIEFS ABOUT DISEASE, SICK ROLE AND MEDICATION-TAKING
• TRUST IN THE HEALTH CARE DELIVERY SYSTEM
• DIRECT-TO-CONSUMER ADVERTISING OF PRESCRIPTION DRUGS

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3.THIRD-PARTY PAYERS AND COVERAGE
ISSUES
• COMPLEXITY/DIFFERENCES AMONG PAYER’S POLICIES
• FORMULARIES
• LIMITED NETWORKS
• LIMITED ACCESS FOR SOME PATIENTS
• LACK OF KNOWLEDGE BY PATIENTS

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4.COMPETITIVE MARKETS
• DIMINISHED MARGINS
• DIVERSITY IN THE TYPES OF PROVIDERS OFFERING
PRODUCTS AND SERVICES

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5.TECHNOLOGY
• SOFTWARE
• AUTOMATED DISPENSING TECHNOLOGY

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V.BUSINESS MANAGEMENT
•Use technicians and other staff to free up the
pharmacist’s time

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THE MANAGERIAL SCIENCES
• 1.ACCOUNTING
• 2.FINANCE
• 3.ECONOMICS
• 4.HUMAN RESOURCES MANGEMENT
• 5.MARKETING
• OPERATIONS MANAGEMENT

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1.ACCOUNTING
• KEEP THE BOOKS
• RECORD FINANCIAL TRANSACTIONS
• PREPARE FINANCIAL STATEMENTS
• MANAGE CASH FLOWS
• ANALYSIS OF PROFITABILITY
• DETERMINE BUSINES STRENGTHS AND WEAKNESSES
• COMPUTE TAXES OWED TO FEDERAL, STATE AND LOCAL
GOVERNMENTS

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2.FINANCE
• DETERMINE FINANCIAL NEEDS
• IDENTIFY SOURCES OF CAPITAL
• DEVELOP OPERATING BUDGETS
• INVEST PROFITS
• MANAGE ASSETS

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3.ECONOMICS
• DETERMINE OPTIMAL MIX OF ALBOR AND CAPITAL
• DETERMINE OPTIMAL OUTPUT
• DETERMINE OPTIMAL HOURS OF BUSINESS OPERATION
• DETERMINE LEVELS OF INVESTMENT INTO RISK MANAGEMENT

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4.HUMAN RESOURCES MANAGEMENT
• CONDUCT JOB ANALYSIS
• HIRE PERSONNEL
• ORIENT AND TRAIN PERSONNEL
• MOTIVATE PERSONNEL FOR PERFORMANCE
• APPRAISE PERSONNEL PERFORMANCE
• ALLOCATE ORGANIZATIONAL REWARDS
• TERMINATE EMPLOYMENT

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5.MARKETING
• IDENTIFY COMPETITIVE ADVANTAGES
• IMPLEMENT COMPETITIVE ADVANTAGES
• IDENTIFY TARGET MARKETS
• EVALUATE PROMOTIONAL STRATEGIES
• SELECT PROPER MIX OF MERCHANDISE
• PROPERLY ARRANGE AND MERCHANDISE PRODUCTS
• PRICE GOODS AND SERVICES

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6.OPERATIONS MANAGEMENT
• DESIGN WORKFLOW
• CONTROL PURCHASING AND INVENTORY
• PERFORM QUALITY ASSURANCE INITIATIVES

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HENRY FAYOL’S 14 PRINCIPLES FOR
ORGANIZATIONAL AND EFFECTIVE
ADMINISTRATION

• See next page

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1.SPECIALIZATION/DIVISION OF LABOR
• people should perform tasks
specific to their skills.
• No one person should be
expected to perform all the skills
needed to run an organization
• Work of all kinds must be
divided & subdivided and
allotted to various persons
according to their expertise in a
particular area

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2.AUTHORITY with CORRESPONDING
RESPONSIBILITY
➢people with responsibility also
have sufficient authority within
an organization to ensure that a
task is performed
➢Authority refers to the right of
superiors to get exactness from
their subordinates.
➢Responsibility means obligation
for the performance of the job
assigned. This Photo by Unknown Author is licensed under CC BY-SA-NC

➢Note that responsibility arises This Photo by Unknown Author is licensed under CC BY

wherever authority is exercised 46

3.DISCIPLINE
➢people should follow rules, with
consequences for not following
rules
➢Discipline means sincerity,
obedience, respect of authority
& observance of rules and
regulations of the enterprise
➢Subordinate should respect
their superiors and obey their
order
This Photo by Unknown Author is licensed under CC BY-NC-ND

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4.UNITY of COMMAND
➢the organization has an
administrator who is recognized
as having the ultimate authority
(ex. CEO or president)
➢A subordinate should receive
orders and be accountable to
one and only one boss at a time

This Photo by Unknown Author is licensed under CC BY-SA

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5.UNITY of DIRECTION
➢the organization has sense of
direction or vision that is
recognized by all members (x.
mission statement)
➢People engaged in the same
kind of business or same kind of
activities must have the same
objectives in a single plan
➢Without unity of direction, unity
of action cannot be achieved

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6.SUBORDINATION of INDIVIDUAL INTEREST
to GENERAL INTEREST
➢the goals of the organization
supersedes the goals of any
individuals within the
organization
➢Interest of any on employees This Photo by Unknown Author is licensed under CC BY

should not take precedence over

interests of the organization as a
whole
This Photo by Unknown Author is licensed under CC BY-
NC

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7.REMUNERATION of STAFF
➢Employees should be paid
appropriately given the market
for their skills and their level of
responsibility
➢Paid workers should be fair,
reasonable, satisfactory &
rewarding of the efforts
➢Should accord satisfaction to
both employer and employees This Photo by Unknown Author is licensed under CC BY

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8.CENTRALIZATION
➢Performing similar tasks at a
single location is more effective
than performing these tasks at
multiple locations
➢It refers to the degree to which
subordinates are involved in
decision making whether
decision making is centralized
(to management) or
decentralized (to subordinates)
This Photo by Unknown Author is licensed under CC BY-NC-ND

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9.SCALAR CHAIN/LINE of AUTHORITY
➢each employee has one, and
only one, direct supervisor
➢Chain of superiors ranging from
the ultimate authority to the
lowest
➢Communications should follow
this chain. If following chain
creates delay, cross- This Photo by Unknown Author is licensed under CC BY-SA-NC

communication can be allowed if

agreed to by all parties and
superiors are kept informed
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10.ORDER
➢This principle is concerned with
proper tasks that should be
performed in a systematic
fashion or arrangement of things
and people
➢Arrangement of things is called
material order
➢Placement of people is called
social order This Photo by Unknown Author is licensed under CC BY-SA

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11.EQUITY
➢supervisors should treat
employees with a sense of
fairness
➢Means combination of fairness,
kindness & justice
➢Employees should be treated
with kindness & equity if
devotion is expected of them

This Photo by Unknown Author is licensed under CC BY

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12.STABILITY of TENURE
➢benefits should go to employees
who have stayed with an
organization longer
➢Employees should not be moved
frequently from one job position
to another (period of job should
be fixed)

This Photo by Unknown Author is licensed under CC BY-NC

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13.INITIATIVE
➢organization and employees are
more effective when they are
proactive, not reactive
➢It means eagerness to initiate
actions without being asked to
do so
➢Management should provide
opportunity to its employees to
suggest ideas, experiences &
new method of work
This Photo by Unknown Author is licensed under CC BY-SA-NC

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14.ESPRIT de CORPS
➢Teamwork
➢Harmony in the work groups
and mutual understanding
among the members
➢It refers to team spirit (inspires
workers to work hard)

This Photo by Unknown Author is licensed under CC BY-SA

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WHAT IS MANAGEMENT
➢MANAGE – to control the movement or behavior of, to lead or direct
or to succeed in accomplishing (websters dictionary)
➢process which brings together resources and unites them in such a
way that, collectively, they achieve goals or objectives in the most
efficient manner possible(accdg to tootelian and gaedeke)

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Management also define
• process of designing and maintaining an environment in which
individuals work together in groups to effectively and efficiently
accomplish selected aims
• goals and objectives
• leadership

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What Is Management?
• Management
• The process of achieving company goals effectively and efficiently by engaging
in the five major functions of planning ,organizing , leading, commanding and
controlling of company’s resources.
Planning
Resources include:
➢ Human resources e.g. employees
➢ Financial resources e.g. bank loan or Controlling Organizing

investment from shareholders

Management
➢ Physical resources e.g. machinery,
inventory
➢ Information resources e.g. knowledge
Commanding Leading

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IMPLICATIONS of
MANAGEMENT

• Continuous effort aimed at shaping an organization and contributing

overall growth
• Functions are essential to any kind of organization
• Aim of managers is to increase productivity, effectiveness and
efficiency
• PROCESS -represents on going functions or primary activities
engaged in by managers (Plan, Do, Check, Command, Act)

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EFFICIENCY
➢getting the most output from the least amount of inputs
➢Doing things right
➢Concerned with means
➢Achieving the objectives in time

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EFFECTIVENESS
➢completing activities so that organizational goals are attained
➢Doing the right things
➢Concerned with ends
➢Achieving objectives on time

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Company Goals
•Every company has its company goals.
•Ex. The basic goal of Hospital is to provide
safe , high quality patient care in an
atmosphere of professionalism ,respect and
effective communication
Manager therefore makes use of a company’s
resources to efficiently and effectively achieve
the company goals.
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Process of Management

Human
Resources
Financial
Manager
Resources Planning→ Organizing →Leading →Commanding Controlling Goals
Physical
Resources
Information
Resources
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Managerial Levels – Vertical Dimension

Top-management: e.g. Board of Directors,

CEO, President, Vice President

Middle-management: e.g. branch

manager, department head

First-line management: e.g. supervisor,

team leader

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Top-management
• Managers at the level are ultimately responsible for
the following:
• Make long-term plans
• Establish policies
• Represent the company
• Referred to as executives of the company
• Oversees the overall planning for the company
• Example: The Board of Directors of the company sets
a goal of increasing company sales by 10% in the next
year

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Middle-management
• Managers at middle-level are responsible for the
following:
• Develop detailed plans and procedures to implement
goals
• Make decisions
• Direct first-level managers
• Example: Sales managers develop a new
advertising campaign for one of the company’s
products in order to achieve 10% sales growth in
next year.

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First-line management
• First-line management is directly responsible for the
following:
• Implement plans
• Assist middle-level managers
• Oversee workers
• Oversee the day-to-day operations to ensure the company
is smoothly run
• Example: a store manager is responsible for making
sure that there are sufficient inventories available for
sale.

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 Matching
• Directly responsible for assigning non-managerial employees to
specific jobs.
Top Level • Focus on specific operations, products, or customer groups
Management • within an company.
• Responsible for developing detailed promotion plans and
Middle Level procedures to implement the firm’s strategic plans e.g. enter into
a new market.
Management •
• Making decisions such as whether or not to enter new market of
another age group.
First-line • Devote most of their time to developing long-range plans for
Management • their company.
• Working with the employees who produce and sell the firm’s
goods and services such as visit each large customer once each
month to maintain a good relationship and introduce new
product.
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 Activity 2A – Solution
• Directly responsible for assigning non-managerial employees to
specific jobs.
Top Level
• Focus on specific operations, products, or customer groups
Management • within an company.
• Responsible for developing detailed promotion plans and
Middle Level procedures to implement the firm’s strategic plans, e.g. enter
into a new market.
Management •
• Making decisions such as whether or not to enter new market of
another age group.
First-line • Devote most of their time to developing long-range plans for
Management • their company.
• Working with the employees who produce and sell the firm’s
goods and services such as visit each large customer once each
month to maintain a good relationship and introduce new
product.
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Level Position/Title Roles/Duties
Top Principal Helps to set goals for the school that align with the School Board and public
including parent expectations.
Oversees the educational programs and developments in the school (and in
the broader educational community) and must keep Board Members abreast
of these issues.
Oversees staff and make decisions that impact the overall educational success
of the school.
Middle Department/ Organise, manage, evaluate, and supervise effective and clear procedures for
Division Heads the operation and functioning of the department consistent with the
philosophy, mission, values and goals of the school.
Evaluate and monitor all curricula of the department.
First-line Panel/ Subject In charge of the overall organisation and teaching of the respective subject
Heads and its related matters, such as planning the school-based syllabus, preparing
the scheme of work, selection of textbooks and teaching materials etc.
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Roles of Management
There are three general levels of management:

Self-management(Decisional)

Organizational (Informational)

Interpersonal

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 Self Management(Decisional) Role of
Management
• Managers should be able to make decisions such as deciding
which new projects to invest, handle unexpected event or
crisis and assign resources between divisions of the company.
• is the most frequently occurring level of management ,
• Both professional and personal requires self management
• Ex. pharmacist must prioritize and manage their time
efficiently so that they can accomplish the wide variety of
tasks, from ensuring that every prescription is dispensed
accurately to making sure that they have time to counsel
their patients 75
Organizational (Informational) Role of
Management
• Managers are required to receive and transmit both internal and
external information for analysis and decision-making.
• Example:
• The CEO of the pharmacy developing company announces the financial
performance and future development of the company in its annual general
meeting.
• The Finance Manager reviews the financial report for announcement and
explains it to the CEO.
• The Accounting Supervisor supervises the accounting staff to prepare the
financial report for Finance Manager’s review.

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 Organizational role of management

➢involves actions that affect groups of people This Photo by Unknown Author is licensed under CC BY-SA-NC

• Ex. When pharmacist needs to develop a policy or make a decision that may
affect many people at the pharmacy
• High-level administrators in large organizations(ex pharmacy chains, hospitals,
etc.) often make decisions that affect everyone within organization
• Anyone who has ever had to make an “executive decision” among a group of
classmates who are studying for an examination or deciding where to go lunch
can relate to the kinds of organizational-level decisions that business leaders
make every day
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Interpersonal role of Management
• Manager’s task is to co-ordinate different people of the company. i.e.
to build relationships with subordinates and outsiders.
• Examples
• Manager provides guidance to subordinates and resolves disputes or
grievances.
• Manager also represents the company to interact with suppliers, customers
and investors.

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 Interpersonal role of management
➢occurs between the manager and one other
person
• Ex. In a pharmacy, this might involve a
pharmacist counseling a patient about a
medication or training a technician on how
to adjudicate a claim with a third-party payer
• Our personal lives are full of interpersonal
relationship including those with our
parents, siblings, spouse, children, friends
and others

This Photo by Unknown Author is licensed under CC BY-SA

79
Class Activity
• Identify the managerial role performed in each of the following
activities.
• Training
• Budgeting
• Hold meetings
• Organizing resources to develop new product
• Hold press conference
• Performing activities that involve outsiders

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Activity – Solution
Role Activities
Decisional Budgeting
Organising resources to develop new product
Informational Hold meetings
Hold press conference
Interpersonal Training
Performing activities that involve outsiders

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The End

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