Laboratory Management PPT Jonnel

Principles and Concepts of
Management
JONNEL P. ANDAYA, RMT
DEFINITION OF MANAGEMENT
“ MANAGEMENT IS THE ART OF GETTING THINGS DONE THROGH PEOPLE “
- MARY PARKER FOLLET
“MANAGEMENT IS A PROCESS OF PLANNING, ORGANIZING, LEADING AND

CONTROLLING THE EFFORTS OF ORGANIZATION MEMBERS AND USING ALL
OTHER ORGANIZATIONAL RESOURCES TO ACHIEVE STATED ORGANIZATIONAL
GOALS”
- JAMES A. F. STONER
DEFINITION OF MANAGEMENT MUST NOT
IGNORE THE IDEAS OF:
1. FUNCTION OF MANAGER
2. SCIENTIFIC ASPECTS OF MANAGEMENT
3. HUMAN ASPECT AND TREAT PEOPLE AS MERELY MEANS OF GETTINGS
THINGS DONE
4. ROLE OF INTERNAL AND EXTERNAL MANAGEMENT
MORE EFFECTIVE DEFINITION OF
MANAGEMENT
IS A PROCESS OF PLANNING, ORGANIZING , DIRECTING, AND

CONTROLLING ACTIVITIES OF AND USING RESOURCES OF AN
ORGANIZATION FOR ACCOMPLISHING THE ORGANIZTIONAL GOALS
EFFICIENTLY AND EFFECTIVELY IN AN EVER CHANGING ENVIRONMENT
5 Ms OF MANAGEMENT
CONCEPTS/NATURE OF MANAGEMENT
1. MANAGEMENT IS A COMBINATION OF ART AND SCIENCE

2. MANAGEMENT IS A MULTI DISCIPLINARY DISCIPLINE
3. MANAGEMENT IS INTAGIBLE
4. MANAGEMENT IS PERVASIVE AT ALL TIMES
5. IT IS AN ENVIRONMENT ORIENTED ACTIVITIES- (EXTERNAL AND INTERNAL
ENVIRONMENT)
6. MANAGEMENT IS OPTIMALLY UTILIZING THE RESOURCES
IMPORTANCE OF MANAGEMENT
1. FOR EFFECTIVE UTILIZATION OF RESOURCES

2. DEVELOPMENT OF RESOURCES
3. TO INCORPORATION INNOVATION
4. FOR BETTER COORDINATION AMONG VARIOUS DEVELOPMENT
5. PROVIDE A SENSE OF SECURITY AND ONENESS OF EMPLOYEES
6. TO COMPLETE THE TASK WITHIN THE STIPULATED TIME FRAME
MANAGING AND
MANAGERS
HOW MANAGEMENT TOTALLY REACH THEIR
GOALS
“ MANAGEMENT MUST FOLLOW THE ACTIVITIES OF FUNCTIONS OF

MANAGEMENTS”
ACTIVITIES TO ACHIVE GOALS
FUNCTIONS OF MANAGEMENT
1. PLANNING: CHOOSE APPROPRIATE ORGANIZATINAL GOALS, AND COARSE OF
ACTION TO BEST ACHIEVE THOSE GOALS
2. ORGANIZING: ARRANGING TASKS, PEOPLE AND OTHER RESOURCES TO
ACCOMPLISH THE WORK
3. STAFFING: CHOOSE PERSONNEL WITH THE KNOWLEDGE, SKILLS AND MOTIVATION
TO PERFORM THE ROLES EFFECTIVELY
4. LEADING: MOTIVATES, COORDINATE AND ENERGIZE INDIVIDUALS AND GROUPS TO
WORK TOGETHER TO ACHIEVE ORGANIZATIONAL GOALS
5. CONTROLLING: ESTABLISH ACCURATE MEASURING AND MONITORING SYSTEMS TO
EVALUATE HOW WELL THE ORGANIZATION HAS ACHIEVE ITS GOALS
MANAGERS AND WORKPLACE
- HAVING A VISION CREATED AND IMPLEMENTED BY INDIVIDUALS

COMMITTED TO THE ORGAIZATIONS. THESE INDIVIDUALS ARE CALLED
MANAGERS
- MANAGERS WORK IN PLACES CALLED ORGANIZATION- IT IS DEFINED
AS A SYSTEMATIC ARRANGEMENT OF PEOPLE BROUGHT TOGTHER TO
ACCOMPLISH SOME SPECIFIC PURPOSE . IT REFERS TO AN ENTITY THAT
HAS A DISTINCT PURPOSE, HAS PEOPLE OR MEMBERS AND HAS A
SYSTEMATIC STRUCTURE.
DEFINITIONS OF EFFICIENCY AND
EFFECTIVENESS
• EFFICIENCY
- GETTING THE MOST OUTPUTS FOR THE LEAST INPUTS
- “DOING THINGS RIGHT”
• EFFECTIVENESS
- ATTAINING ORGANIZATIONAL GOALS
- “DOING THE RIGHT THING”
DEFINITIONS OF EFFICIENCY AND
EFFECTIVENESS
• LOW EFFICIENCY/ HIGH EFFECTIVENESS-MANAGERS CHOOSES THE RIGHT
GOALS TO PURSUE , BUT DOES A POOR JOB OF USING RESOURCES TO
ACHIEVE THESE GOALS
• LOW EFFICIENCY / LOW EFFECTIVENESS – MANAGERS CHOOSE WRONG
GOALS TO PURSUE AND MAKE POOR USE OF RESOURCES
• HIGH EFFICIENCY/ HIGH EFFECTIVENESS – MANAGERS CHOOSES THE RIGHT
GOAL TO PURSUE AND MAKES GOOD USE OF RESOURCES TO ACHIEVE THESE
GOALS
• HIGH EFFICIENCY /LOW EFFECTIVENESS- MANAGERS CHOOSES
INAPPROPRIATE GOALS, BUT MAKES GOOD USE OF RESOURCES TO PURSUE
THESE GOALS
***LETS SUMMARIZED THE IDEAS OF THE
TERMS EFFECTIVENESS AND EFFICIENCY***
MANAGERIAL AND ORGANIZATIONAL
PERFORMANCE
• MANAGERIAL PERFORMANCE – MEASURES HOW EFFICIENT AND

EFFECTIVE A MANAGER IS-HOW WELL , HE/SHE DETERMINES AND
ACHIEVES APPROPRIATE OBJECTIVES
• ORANIZATIONAL PERFORMANCE- THE MEASURES HOW THE
ORGANIZATIONS EFFICIENT AND EFFECTIVE AN ORGANIZATION IS-
HOW WELL IT ACHIEVES APPROPRIATE OBJECTIVES
MANAGERIAL SKILLS
PROFFESOR ROBERT L. KATZ HAS POPULARIZED THE CONCEPT OF
“MANAGERIAL SKILLS “ WHICH WAS EARLIER DEVELOPED BY HENRI FAYOL
- TECHNICAL SKILL- THE ABILITY TO USE TOOLS, PROCEDURE AND TECHNIQUES
OF SPECIALIZED FIELD
- HUMAN SKILL- THE ABILITY TO WORK WITH UNDERSTAND AND MOTIVATE
PEOPLE, EITHER AS INDIVIDUAL OR AS GROUPS
- CONCEPTUAL SKILL- A MENTAL ABILITY TO COORDINATE AND INTEGRATE ALL
OF THE ORGANIZATION’S INTEREST AND ACTIVITIES. IT INVOLVES THE
MANAGERS ABILITY TO SEE THE ORGANIZATIONS AS A WHOLE AND TO
UNDERSTAND HOW ITS PARTS DEPEND ON EACH OTHER
MANAGERS SKILLS
5 MORE SKILLS CAN BE STATED
• DESIGNED SKILLS
• ADMINISTRATIVE SKILLS
• DECISION SKILLS
• COMMUNICATION SKILLS
• LEADERSHIP SKILLS
THREE QUALITIES ASSOCIATED WITH
SUCCESSFUL MANAGERS
• NEED TO MANAGE
• NEED FOR POWER
• CAPACITY FOR EMPATHY
MANAGERIAL FUNCTIONS IN
MANAGEMENT
LEADERSHIP AND
MANAGEMENT
LEADERSHIP AND MANAGEMENT
• LEADERSHIP: THE PROCESS THOUGH WHICH LEADERS INFLUENCE THE

VALUES, BEHAVIOR AND ATTITUDE OF PEOPLE
CLASSIFICATION OF LEADERS:
• LEADERSHIP QUALITIES CAN BE EITHER BE INNATE OR CAN ALSO BE

ACQUIRED
• LEADERS MOTIVATES THE TEAM MEMBER TO PERFORM WELL
• LEADERS ALSO MOTIVATES THE MEMBER IN CASE OF A FAILURE
MANAGER VS LEADER
MANAGERS LEADERS
MOYARE SOMEONE WHO: ARE SOMEONE WHO:
PLANS AND BUGETS SHOWS DIRECTION
ORGANIZING AND ALLOCATES THE RESOURCES ALIGNS AND INFLUENCES
CONTROLS AND SOLVE PROBLEMS MOTIVATES AND INSPIRES

MANAGERS VS. LEADER
MANAGER LEADERS
ADMINISTERS INNOVATES
IS A COPY IS AN ORIGINAL
FOCUSES ON SYSTEM PROCESSES FOCUSES ON PEOPLE
RELIES ON CONTROL INSPIRES
HAS A SHORT RANGE VIEW HAS A LONG RANGE PERSPECTIVE
ACCEPTS THE STATUS QUO CHALLENGES IT
DOES THING RIGHT DOES THE RIGHT THING
CORE VALUES OF A LEADER
• FAIRNESS- TREATING PEOPLE FAIRLY AND GIVING EQUAL

OPPORTUNITIES
• FREEDOM- FREEDOM OF EXPRESSIONS OF THROUGHTS AND IDEAS
• COMMITMENT- COMMITMENT TOWARD WORK
FIVE WAYS TO LEAD
IN ORDERS TO EMPOWER PEOPLE,
LEADER SHOULD:
• AVOID COMPETING FOR POWER AND RECOGNITION
• ENTRUST TASK TO OTHERS
• BUILDS AND COMMUNICATE A VISION
• GUIDE PEOPLE TO WORK METICULOUSLY TO ACHIEVE MEANINGFUL GOALS
• HELP PEOPLE BELIEVE IN THEIR OWN WORTH AND CAPABILITIES
• DEVISE A CULTURE IN WHICH FEAR AND INTIMIDATION ARE REPLACED BY
TRUST
• DISPLAY WILLINGNESS TO SUPPORT PEOPLE
LEADERSHIP THEORY
AND STYLE
WHAT IS LEADERSHIP?
LEADERSHIP- IS THE ABILITY TO INFLUENCE A GROUP TOWARDS THE

ACHIEVEMENT OF GOALS
-IN MANAGEMENT TERMS, IT IS THE USE OF AUTHORITY WHICH IS
INHERENT IN THE DESIGNATED FORMAL RANK TO OBTAIN COMPLIANCE
FROM AORGANIZATIONAL MEMBERS
THEORIES OF LEADERSHIP
• CHARISMATIC LEADERSHIP THEORY
- KNOWN AS “GREAT MAN THEORY”
- IT SUGGESTS THAT A LEADER IS BORN AND IS NOT MADE
- A LEADER HAS SOME CHARISMA WHICH ACTS AS AN INFLUENCE
- CHARISMATIC LEADERS ARE THOSE WHO INSPIRE THE FOLLOWERS
THROUGH THEIR PERSONAL VISION AND ENERGY
TRAIT THEORY
• REFERS TO THE QUALITIES OF AN INDIVIDUAL

• THIS THEORY BELIEVES THAT PERSONS HAVING CERTAIN TRAITS
COULD BECOME SUCCESSFUL LEADERS
TRAIT THEORY
• CERTAIN TRAITS IDENTIFIED IN A
SUCCESFUL LEADERS ARE:
6. OBJECTIVITY
1. PHYSICAL FEATURES
7. MOTIVATION
2. INTELLIGENCE
8. TECHNICAL SKILLS
3. EMOTIONAL STABILITY
4. HUMAN RELATIONS 9. GOOD COMMUNICATIONS
5. EMPATHY 10. SOCIAL SKILLS

BEHAVIORAL THEORY
• IT SAYS THAT LEADERSHIP IS SHOWN BY A PERSON ACT MORE THAN BY TRAIT

• IT EXPLAINS WHAT LEADERS SHOULD DO RATHER THAN WHAT LEADERS ARE
• LEADER SHOULD PERFORM 2 MAJOR FUNCTIONS:
1 . TASK RELATED FUNCTIONS- PROVIDE SOLUTIONS TO THE PROBLEMS FACED
BY THE GROUPS IN PERFORMING JOBS
2. GROUP MAINTENANCE FUNCTIONS – ACTIONS ODF MEDIATING DISPUTES
AND ENSURING THAT INDIVIDUALS FEEL VALUED
SITUATIONAL THEORY
• HERE THE ATTENTION IS GIVEN TO THE SITUATION IN WHICH THE

LEADERSHIP IS EXERCISED
• FACTORS AFFECTING LEADERSHIP EFFECTIVENESS ARE
1. LEADERS BEHAVIOR- PERSONALLITY, ATTITUDE, INTEREST, POSITION
IN THE ORGANIZATION
2. SITUATIONAL FACTOR – ORGANIZATIONAL CLIMATE,
ORGANIZATIONAL CULTURE, GROUP NORMS , GROUP RELATIONSHIPS
LEADERSHIP STYLES
1.AUTOCRATIC STYLE( AUTORITHARIAN)

2. DEMOCRATIC STYLE
3. LESSEZ- FAIRE
4. RELATION/PEOPLE ORIENTED
5. SERVANT
6. TASK ORIENTED
7. TRANFORMATIONAL
8. TRANSACTIONAL
AUTOCRATIC STYLE
“ THIS IS MY DECISION AND YOU MUST FOLLOW IT”
- AUTORITARIAN : USUALLY DO NOT LISTEN TO HIS TEAM MATES

DEMOCRATIC
“ LETS WORK TOGETHER TO SOLVE THIS “
- EVERYBODY WILL PARTICIPATE AND THEY WILL COME UP WITH A

SOLUTION OR BEST POSSIBLE SOLUTION
LAISSEZ-FAIRE
“ I DON’T WANT TO BE INVOLVED”

“ YOU TWO TAKE CARE OF THE PROBLEM WHILE I GO”
- WHAT ABLE THEY DECIDE , THEY WILL ABLE TO DO IT

OTHER LEADERSHIP STYLE
1. RELATION/ PEOPLE ORIENTED- FOCUS ON ORGANIZING , SUPPLEMENT AND

DEVELOPED THE PEOPLE
2. SERVANT- MEETING THE NEEDS AT HIS HER TEAM
3. TASK ORIENTED- FOCUS ON THE JOB DONE
4. TRANSFORMATIONAL- INSPIRED TEAM, WITH A SHARE VISION AT THE
FUTURE
5. TRANSACTIONAL- PUNSH IF NOT MEET THE GIVEN PRE-DETERMINED
STANDARD
PLANNING
PLANNING
PLANNING- DEALS WITH SELECTING THE MISSION AND OBJECTIVES AND

THE ACTIONS TO ACHIEVE THEM. IT REQUIRES DECISION-MAKING THAT IS
CHOOSING FROM AMONG ATERNATIVE FUTURE COURSES OF ACTION
“ PLANNING IS A PROCESS WHICH BEGINS WITH OBJECTIVES, AND DEFINES

STRATEGIES , POLICIES AND DETAILED PLANS TO ACHIEVE THEM “
-GEORGE A. STEINER
NATURE OF PLANNING COMPRISES:
• IT’S CONTRIBUTION TO PURPOSE AND OBJECTIVES

• ITS PRIMACY AMONG THE MANAGER’S TASKS
• IT’S PERVASIVENESS AND
• THE EFFICIENCY OF RESULTING PLANS
• PLANNNG PROMOTES INNOVATIVE IDEAS
• PLANNING FACILITATES- DECISION MAKING
• PLANNING ESTABLISHES STANDARD FOR CONTROLLING
• FOCUSES ATTENTION ON OBJECTIVES OF THE COMPANY
STEPS IN THE PLANNING PROCESS
• BE AWARE OF THE OPPORTUNITIES

• SETTING UP OF THE OBJECTIVES
• DEVELOPING PREMISES
• LISTING THE VARIOUS ALTERNATIVES FOR ACHIEVING THE OBJECTIVES
• EVALUATION OF DIFFERENT ALTERNATIVES
• SELECTING AN ALTERNATIVES
• IMPLEMENT PLAN
• FOLLOW UP
KINDS OF PLANS
• MISSION OR PURPOSE PLAN- IDENTIFIES THE BASIC FUNCTION OF THE
ORGANIZATION
• GOALS AND OBJECTIVES- ARE RESULTS OR ACHIEVEMENTS TOWARD WHICH
EFFORT IS DIRECTED
• STRATEGY- INVOLVES A PLAN OR SERIES OF MANEUVERS FOR OBTANING A
SPECIFIC GOAL.
• POLICIES- ARE BASICALLY GENERAL STATEMENTS THAT GUIDE OR CHANNEL
THE THINKING OF MANAGERS IN DECISION MAKING
• PROCEDURE PLAN- ARE PLANS SPELLED OUT IN A DETAILED-MANNER IN
WHICH CERTAIN ACTIVITIES MUST BE ACCOMPLISHED
• RULES- ARE USUALLY THE SIMPLEST TYPE OF PLAN WHICH SPELL OUT
SPECIFIC REQUIRED ACTION OR NON-ACTION
• PROGRAM PLAN- ARE PLANS OR SCHEDULES TO BE FOLLOWED
• BUDGET PLAN- IS AN ITEMIZED ESTIMATE OF EXPECTED INCOME AND
EXPENSE
KINDS OF PLANNING
• STRATEGIC PLANNING- IS A PROCESS OF DECIDING ON THE OBJECTIVES

OF THE ORGANIZATION, THE RESOURCES NECESSARY TO ACCOMPLISH
THESE OBJECTIVES , THE POLICIES THAT SHOULD GOVERN THE
ACQUISITION, USE AND THE DISPOSITION OF THESE RESOURCES
• MANAGEMENT CONTROL- IS THE PROCESS BY WHICH ARE CERTAIN
THAT RESOURCES ARE OBTAINED AND UTILIZED EFFECTIVELY IN
ACCORDINANCE WITH THE ATTAINMENT OF THE OBJECTIVES OF THE
ORGANIZATION.
ORGANIZING
ORGANIZING
ORGANIZING STEMS FROM THE WORD “ORGANISMS” SIMPLE TO CREATE

A STRUCTURE WITH FULLY INTEGRATED PARTS THAT ARE RELATED TO
EACH OTHER AND IS GOVERNED BY THEIR RELATIONSHIP TO THE WHOLE
ORGANIZING
THE WORD ORGANIZING REFERS TO STRUCTURE OR NETWORK OF

RELATIONSHIP AMONG INDIVIDUALS INTERACTING WITH ONE ANOTHER.
ORGANIZING AS A TOOL IS AN END ITSELF BUT MEANS OF ACHIEVING THE
OBJECTIVES OF THE ORGANIZATION. ORGANIZATION IS THE ROLES OF
THE PARTICIPANTS WITH APPROPRIATE AUTHORITY AND PROPER
COORDINATION IN THE ORGANIZATIONAL STRUCTURE
EXAMPLE PHOTO OF AN ORGANIZATION
“THROUGH THIS PHOTO TRY TO CONNECT OR FIGURE OUT THE MEANING
OF THE WORD ORGANIZING .. ( DO NOT MEMORIZE THE WORDINGS ,
INSTEAD TRY TO UNDERSTAND)”
PROCESS OF ORGANIZING
1. ESTABLISHING THE OBJECTIVES OF THE ORGANIZATION

2. FORMULATING THE OBJECTIVES OF THE ORGANIZATION
3. IDENTIFYING AND CLASSIFYING THE ACTIVITIES NECESSARY TO
ACCOMPLISH THIS
4. GROUPING THESE ACTIVITIES IN THE LIGHT OF HUMAN AND MATERIAL
RESOURCES AVAILABLE AND UNDER CIRCUMSTANCES, THE BEST WAY OF
USING THEM
5. DELEGATING TO THE HEAD OF EACH GROUP THE AUTHORITY NECESSARY TO
PERFORM THE ACTIVITIES
MORE STEP BY STEP PROCESS OF
ORGANIZING (BY EASYMBA)
FORMAL VS INFORMAL ORGANIZATION
• FORMAL ORGANIZATION REFERS TO THE DELIBERATE STRUCTURE OF

ROLES IN A FORMALLY STRUCTURE OF ROLES IN A FORMALLY
ORGANIZED ENTERPRISE
• INFORMAL ORGANIZATION REFERS TO A NETWORK OF PERSONAL AND
SOCIAL RELATIONS NOT ESTABLISHED OR REQUIRED BY THE FORMAL
ORGANIZATION BUT ARISING SPONTAEOOUSLY AS PEOPLE ASSOCIATE
WITH ONE ANOTHER
LET’S TALK MORE ABOUT FORMAL
ORGANIZATION 
• FORMAL IS WELL DEFINED STRUCTURE OF AUTHORIZED AND RESPONSIBILITY
THAT DEFINES DELEGATION OF AUTHORITY AND RELATIONSHIP AMONGST
VARIOUS ORGANIZATIONAL MEMBERS
• IT WORKS ALONG PRE-DEFINED SETS OF POLICIES, PLANSPROCEDURES ,
SCHEDULES AND PROGRAMMERS
• MOST OF THE DECISIONS IN A FORMAL ORGANIZATION ARE BASED ON PRE-
DETERMINED POLICIES
• FORMAL ORGANIZATION IS DELIBERALLY DESIGNED STRUCTURE WITH
FORMAL AUTHORITY, RESPONSIBILITY, RULES, REGULATION, AND CHANNELS
OF COMMUNICATION.
FORMAL ORGANIZATION FEATURES
• IT IS DELIBERATELY DESIGNED BY THE TOP MANAGEMENT
• IT PLACES MORE EMPHASIS ON WORK TO BE PERFORMED THEN INTERPERSONAL
RELATIONSHIPS AMONG EMPLOYEES
• IT SPECIFIES THE RELATIONSHIP AMONG VARIOUS JOB POSITIONS AND THE NATURE
OF THEIR INTER-RELATIONSHIP
• IT LAYS DOWN RULES AND PROCEDURES ESSENCIAL FOR ACHIEVEMENT OF
OBJECTIVE
• EFFORTS OF VARIOUS JOB POSITION AND THE NATURE OF THEIR INTER RELATIONSHIP
• IT LAYS DOWN RULES AND PROCEDURE ESSENTIAL FOR ACHIEVEMENT OF OBJECTIVE
• EFFORTS OF VARIOUS DEPARTMENT ARE COORDINATED, INTERLINKED AND
INTEGRATED THROUGH THE FORMAL ORGANIZATION
LETS TALK MORE ABOUT INFORMAL
ORGANIZATION 
• INFORMAL ORGANIZATION MEANS A NETWORK OF INTERPERSONAL

RELATIONSHIP THAT ARISE WHEN PEOPE ASSOCIATE WITH EACH OTHER
• INFORMAL ORGANIZATION MEANS NATURAL GROUPING OF PEOPLE IN WORK
SITUATION
• INFORMAL ORGANIZATION IS NETWORK OF PERSONAL AND SOCIAL
RELATIONS NOT ESTABLISHED OR REQUIRED BY THE FORMAL ORGANIZATION
BUT ARISING SPONTANEOUSLY AS PEOPLE ASSOCIATE WITH ONE ANOTHER
INFORMAL ORGANIZATION FEATURES
• ORIGINATES FROM WITHIN THE FORMAL ORGANIZATION AS A RESULT OF

PERSONAL INTERACTION AMONG EMPLOYEES
• THE STANDARD OF BEHAVIOR EVOLVE FROM GROUP NORMS
• INDEPENDENT CHANNELS OF COMMUNICATION WITHOUT SPECIFIES
DIRECTION OF FLOW OF INFORMATION ARE DEVELOPED BY GROUP MEMBERS
• EMERGES SPONTANEOUSLY AND IS NOT DELIBERATELY CREATED BY THE
MANAGEMENT
CHARACTERISTICS OF AN ORGANIZATION
• THE ENTIRE ORGNIZATION, THE IMPORTANT SUBPARTS AND INDIVIDUALS MANAGE THEIR
WORK AGAINST THE STATED GOALS AND OBJECTIVES
• COMMUNICATION LATERALLY AND VERTICALLY ARE VERY CLEAR AND DEFINITIVE
• THE REWARD SYSTEM IS SUCH THAT MANAGERS AND SUPERVISORS ARE REWARDED FOR
SHORT TERM PROFIT AND PRODUCTION PERFORMANCE, GROWTH AND DEVELOPMENT
OF THEIR SUBORDINATES; AND FOR CREATING HARMONIOUS AND VIABLE WORKING
GROUPS
• THE ORGANIZATION WHICH IS AN OPEN SYSTEM RELATES ITSELF WITH VERY MEMBER OF
THE SYSTEM AND WITH THE LARGER ENVIRONMENT
• THERE IS SHARED VALUE AND MANAGEMENT STRATEGY TO SUPPORT IT AND TRY TO HELP
EACH MEMBER IN THE ORGANIZATION TO MAINTAIN HIS INTEGRITY ADND DEVELOPED
HIS LOYALTY TO THE ENTERPRISE
• THE ORGANIZATION AND ITS MEMBERS OPERTAE IN AN “ACTION-RESEARCH” WAY
TOOLS AND TECHNIQUES OF
ORGANIZATION
• TOOL- ANYTHING USED IN DOING A CERTAIN PIECE OF WORK PRODUCE
CERTAIN RESULTS REQUIRING SOME DEGREE OF ACCURACY AND PRECISION
• TECHNIQUE- IS ESSENTIALLY A WAY OF DOING THINGS ,METHODS OF
ACCOMPLISHING A DESIRED RESULT
1. RECORDS- FURNISHING USEFUL INFORMATION AND PROVIDE FOR THE
CONTINUITY OF OPERATION. WHEN MAINTAINED VERY WELL OVER A PERIOD
TIME, RECORDS REFLECT THE ORGANIZATION PHILOSOPHY, GROWTH AND
DEVELOPMENT:FORMS , WORKFLOW PROCESSES , PROCEDURES FOR RECORDS
MANAGEMENT AND USE OF COMPUTERS IN SYSTEMIZING AND ORGANIZING
COMPANY RECORDS
TOOLS AND TECHNIQUES OF
ORGANIZATION
2. REPORTS- USUALLY CONTAIN DATA AND INFORMATION ABOUT THE

OPERATION OF THE ORGANIZATION. PLANS, PROCEEDINGS, STATUS
REPORTS ON A PARTICULAR PROJECT, AND ACCOMPLISHMENTS OF EACH
DEPARTMENT ON A QUARTERLY SEMIANNUALLY OR ANNUAL BASIS
FORM THE FILES OF THE ENTERPRISE
3. ORGANIZATION CHARTS- INDIACATE THE MAIN RESPONSIBILITY AND
UPWARD MOVEMENT OF ACCOUNTABILITY. THEY REFLECT AND FORMAL
ORGANIZATIONAL RELATIONSHIPS AMONG EXECUTIVES
WHAT IS ORGANIZATION?
ORGANIZATIONAL STRUCTURES IS THE SYSTEMATIC ARRANGEMENT OF

PEOPLE WORKING FOR THE ORGANIZATION IN ORDER TO ACHIEVE
CERTAIN GOALS. IT IS A FRAMEWORK OF AUTHORITY RELATIONSHIPS
AMONG INIDIVIDUALS AND GROUPS IN A ORGANIZATION
ORGANIZATIONAL STRUCTURES
FORMS OF ORGANIZATIONAL STRUCTURE:

1. LINE TYPE
2. LINE AND STAFF TYPE
3. FUNCTIONAL TYPE
4. MATRIX/GRID TYPE
5. PROJECT TYPE
LINE TYPE ORGANIZATION
LINE TYPE: THERE IS DIRECT FLOW OF AUTHORITY FROM THE TOP

POSITION TO IMMEDIATE SUBORDINATES LEVELS. THERE IS SUPERIOR-
SUBORDINATE RELATIONSHIP WHERE IN A SUPERIOR DELEGATES
AUTHORITY TO ANOTHER SUBORDINATES THUS FORMING A LINE FROM
THE VERY TOP THE LOWEST LEVEL OF THE ORGANIZATIONAL STRUCTURE
• THE OLDEST AND SIMPLEST FORM OF ORGANIZATION STRUCTURE
• KNOWN AS MILITARY, VERTICAL, DEPARTMENT AND HIERARCHAL
ORGANIZATION STRUCTURE
• AUTHORITY FLOWS FROM THE TOP TO BOTTOM VERTICALLY IN A STRAIGHT
LINE MANNER
• RESPONSIBILITY AND ACCOUNTABILITY FLOWS IN AN OPPOSITE BUT
EQUALLY DIRECT VERTICAL MANNER
LINE ORGANIZATION IN 2 TYPES
1. PURE LINE ORGANIZATION
2. DEPARTMENTAL LINE ORGANIZATION
• SMALL SCALE ORGANIZATION

• ORGANIZATION WITH SIMPLE ROUTINE OPERATIONS
• ORGANIZATIONS HAVING AUTOMATIC AND CONTINOUS PRODUCTION
• ORGANIZATIN HAVING SHORT CHAIN OF COMMAND
EXAMPLE: BISCUIT COMPANIES
• ORGANIZATIONHAVING FEW SUBORDINATES AT EACH LEVEL
FUNCTIONAL TYPE ORGANIZATION
• RADICALLY DIFFERENT FROM THE LINE TYPE AND EVOLVED AS AN

ANSWER TO THE PROBLEMS AND DISADVANTAGE WHERE IN THE LINE
TYPE. THE TASK MANAGEMENT OR SUPERVISION ARE DIVIDED IN THE
FUCTIONAL
• THIS STRUCTURE IS BASED ON THE CONCEPT OF FUCNTIONAL FOREMANSHIP

• IN THIS STRUCTURE THE LINE AUTHORITY IS CHANNELIZED THROUGH THE STAFFS
SPECIALISTS
• LINE AUTHORITY RUNS THROUGH MANY FUNCTIONS EXPERT WHO HAVE THE
AUTHORITY TO ISSUE ORDERS IN THEIR AREAS OF SPECIALIZATION
• FOR EVERY DEPARTMENT ( FINANCE , HR, MARKETING, PRODUCTION..)
• THEIR EXIST AN EXPERT WHO HAS DIRECT CONTROL OVER THAT DEPARTMENT
• THERE IS MULTIPLICITY OF COMMANDS INSTEAD OF UNITY OF COMMAND
CHARACTERISTICS OF FUNCTIONAL TYPE
ORGANIZATION
• EXPERTIES OR MEN TRAINED FOR A PARTICULAR KIND OF WORK ARE
EMPLOYED INSTEAD OF ALL AROUND
• IN THE STRICT FUNCTIONAL TYPE, WE HAVE FULL APPLICATION OF THE
PRINCIPLE OF DIVISION OF LABOR, BOTH MENTAL AND MANUAL
• THE DIRECT FLOW OF AUTHORITY FROM THE HEAD OF THE
ORGANIZATION DOWN TO THE WORKERS IS ELIMINATED
THE LINE AND STAFF TYPE
THE LINE AND STAFF TYPE OF ORGANIZATION IS THE LINE COMBINATION

OF THE BEST FEATURES OF BOTH THE LINE AND FUCTIONAL TYPES. IT IS
CONSIDERED AS HAVING THE ADVANTAGES OF BOTH AND WITH THE
DISADVANTAGES OF EACH REMOVED OR ELIMINATED
-THE LINE ORGANIZATION CONTINUES TO BE THE BASIC FRAMEWORK OF
THE ORGANIZATION REMAINS MOSTLY LINE. HOWERVER, WITH THE
ADDITION OF “STAFF” , IN ADDITION TO THE REGULAR LINE PERSONNEL,
EXPERTS OR SPECIALIST ARE ADDED.
• THE LINE AND STAFF TYPE OFFICERS A CLEAR CUT DIVISIONS OF

EFFORTS, SEPARATING THE ROUTINE FROM THE NON-ROUTINE WORK
OF PRODUCTION, SEPARATING THE PLANNING FROM EXECUTION
• IS A MODIFICATION OVER THE BASELINE STRUCTURE

• THIS STRUCTURE COMBINES STAFFS SPECIALISTS/EXPERT WITH THE LINE MANAGERS
• THE VERTICAL FLOW AUTHORITY AND RESPONSIBILITIES REMAIN THE SAME AS IN
LINE STRUCTURE
• ADDITIONALLY STAFF SPECIALISTS ARE ASSOCIATED WITH LINE MANAGERS
• STAFF SPECIALISTS/EXPERT ARE THE PERSONS/DEPARTMENTS WHO PROVIDE
TECHNICAL ADVICE OR SERVICE TO THE LINE MANAGERS
• LINE MANAGERS MAY NOT USE THEIR SPECIALIZED KNOWLEDGE.
THE LINE AND STAFF TYPE SUITABILITY
• IT IS MOST SUITABLE FOR MEDIUM AND LARGE ORGANIZATIONS

• THIS STRUCTURE IS NOT SUITABLE FOR SMALL ORGANIZATIONS ON
ACCOUNT OF HIGH COST IN IT
PROJECT ORGANIZATION
• IT IS A TEMPORARY STRUCTURE DESIGNED TO ACCOMPLISH A SPECIFIC TASK

OR PROJECT WITH THE HELP OF SPECIALISTS DRAWN FROM DIFFERENT
FUNCTIONAL DEPARTMENTS WITHIN THE ORGANIZATIONS
• IT IS LEAD BY A PROJECT MANAGER
• HE DRAWS SPECIALISTS FROM DIFFERENT FUNCTIONAL DEPT AND ASSIGNS
THEM ACTIVITIES NECESSARY TO ACCOMPLISH THE PROJECT
• PROJECT MANAGER IS RESPONSIBLE FOR THE COORDINATION OF ALL THE
PERSONNEL WORKING ON THE PROJECT
PROJECT ORGANIZATION
PROJECT ORGANIZATION SUITABILITY
• SUITABLE FOR MEDIUM AND LARGE SCALE PROJECT

• WHICH NEEDS TO BE COMPLETED WITHIN THE SPECIFIED TIME AND
COST
• ALSO SUITABLE FOR PROJECTS INVOLVING TECHNICAL ACTIVITIES
MATRIX/ GRID ORGANIZATION
• IT IS A HYBRID ORGANIZATION STRUCTURE

• IT COMBINES PROJECT ORGANIZATION STRUCTURE AND FUNCTIONAL
ORGANIZATIONAL STRUCTURE
• IT IS PERMANENT ORGANIZATION STRUCTURE DESIGNED TO ACCOMPLISH A SPECIFIC
PROJECT BY USING TEAM OF SPECIALISTS DRAWN FORM DIFFERENT FUNCTIONAL
DEPARTMENTS WITHIN AN ORGANIZATION
• THERE ARE FUNCTIONAL MANAGERS AND PROJECTS MANAGERS
• TEAM MEMBERS ARE ACCOUNTABLE TO BOTH FUNCTIONAL MANAGERS
• AND PROJECT MANAGERS
MATRIX/ GRID ORAGIZATION
MATRIX/ GRID ORAGIZATION SUITABILITY
• SUITABLE FOR COMPLEX TASK

• SUITABLE FOR PROJECTS WITH SPECIFIED TIME AND COST
• SUITABLE FOR AEROSPACE, CONSTRUCTION, ADVERTISING HOSPITAL
WHICH HAVE SPECIFIED TIME AND COST FRAMEWORK
COMITEE ORGANIZATION
• IT IS FORM OF STAFF ORGANIZATION FORMED FOR GIVING SPECIALIZED

ADVICE TO LINE MANAGERS
• A COMITEE IS A GROUP OF TWO OR MORE APPOINTED NOMINATED OR
ELECTED PERSOND TO CONSIDER, DISCUSS , DECIDE , RECOMMEND OR
REPORT ON SOME ISSUE OR MASTER ASSIGNED TO THEM
STAFFING
STAFFING
INTRODUCTION:
AN ORGANIZATION STRUCTURE IS COMPOSED OF VARIOUS POSITIONS
DESIGNED TO ACCOMPLISH SYSTEMS, GOALS AND OBJECTIVES. A
VARIETY OF MANAGERIAL ACTIVITIES IS ESSENTIAL TO KEEP THOSE
POSITIONS STAFFED WITH PERSONNEL WHO HAVE THE KNOWLEDGE,
THE SKILLS AND THE MOTIVATION TO PERFORM THE ROLES EFFECTIVELY
STAFFING
STAFFING- IS THE PROCESS OF SUPPLYING THE ORGANIZATION WITH THE
NEEDED PERSONNEL TO ACHIEVE THE OBJECTIVES FOR WHICH IT HAS
BEEN ESTABLISHED .
PEOPLE - VITAL COMPONENTS FOR THE EFFECTIVE OPERATION OF THE
ORGANIZATION. MANAGERS OFTEN SAYS THAT PEOPLE ARE THE MOST
IMPORTANT ASSETS
STAFFING AFFECTS LEADING AND CONTROLLING. WELL-TRAINED
MANAGERS SHOULD CREATE AN ENVIROMENT IN WHICH PEOPLE
WORKING TOGETHER IN GROUPS CAN ACHIEVE ORGANIZATIONAL
OBJECTIVES AND AT THE SAME TIME ACCOMPLISH PERSONAL GOALS
FACTORS AFFECTING STAFFING
1.LEVEL OF EDUCATION
2. PREVAILING ATTITUDES TOWARD WORK OF PEOPLE
3. LAWS
4. REGULATIONS THAT DIRECTLY AFFECTS THE PROCESS
5. SUPPLY AND DEMAND FOR PERSONNEL OUTSIDE THE ENTERPRISE .
6. ORGANIZATIONAL GOAL AND OBJECTIVES
7. ORGANIZATIONAL STRUCTURE
8. TASK , TECHNOLOGY THE DIFFERENT KINDS OF PERSONNEL EMPLOYED IN
THE ORGANIZATION
9. DEMAND AND SUPPLY FOR QUALIFIED PERSON WITHIN THE ENTERPRISE
10. VARIOUS POLICIES
EXTERNAL ENVIRONMENT
CAN BE GROUPED INTO:
1. EDUCATIONAL
2. SOCIO-CULTURAL
3. POLITICAL
4. ECONOMIC CONSTRAINTS
5. OPPORTUNITIES
6. HIGH TECHNOLOGIES
INTERNAL ENVIRONMENT
• THE INTERNAL FACTORS CONCERN STAFFING MANAGERIAL POSITIONS

WITH PERSONNEL FROM WITHIN AND DETERMINING THE
RESPONSIBILITY FOR STAFFING AND RECOGNIZING THE NEED FOR TOP
MANAGEMENT SUPPORT IN OVERCOMING RESISTANCE TO CHANGE.
LEADING: DIRECTING
DIRECTING
• DIRECTING IS THE PROCESS BY WHICH A MANAGER COMMUNICATES

WITH AND INFLUENCES OTHER MEMBERS OF THE ORGANIZATION IN
THE PURSUIT OF COMPANY OBJECTIVES TO ACHIEVE THE DESIRABLE
ENDS. IT IS THE HUMAN ASPECT OF MANAGEMENT THROUGH WHICH
SUBORDINATES ARE MOTIVATED, PERSUADED AND LED TO
CONTRIBUTE EFFICIENTLY AND EFFECTIVE THEIR EFFORTS TOWARD
REALIZING THE VISION AND MISSION FOR WHICH THE ORGANIZATION
HAS BEEN ESTABLISHED.
PURPOSE OF DIRECTING
HUMAN BEING THAT COMPOSE AN ORGANIZATION FUNCTION THROUGH

THE CONTINOUS INTERACTION AND INTERCOMMUNICCATION AMONG
ITS MEMBERS. DIRECTING IS PERCEIVED TO BE A PROCESS THROUGH
WHICH THE MANAGER ENERGIZES THE ORGANIZATION INTO ACTION BY
WAY OF MOTIVATION AND DIRECTING MEMBERS TO PERFORM THEIR
RESPECTIVE DUTIES AND RESPONSIBILITIES.
POWERS OF ORGANIZATION
“POWER IS DEFINED AS THE CAPACITY TO INFLUENCE THE ACTION OF AN

INDIVIDUAL IN THE DIRECTION DESIRED BY THE LEADER.”
KINDS OF POWER IN ORGANIZATON
1. LEGITIMATE POWER- IT IS VESTED ON A PERSON BY VIRTUE OF THE AUTHORITY HE HAS
IN THE ORGANIZATION
2. EXPERT POWER IT IS THE ABILITY TO INFLUENCE OF IMPRESS A PERSON WHICH ARISES
FROM HIS EXPERTISE OF A PARTICULAR KNOWLEDGE.
3. REFERENCE POWER- POWER THAT COMES BY VIRTUE OF SOME DISTINGUISHING
CHARACTERISTICS OF A LEADER WHICH PEOPLE IDENTIFY WITH
4. REWARDS POWER- POWER THAT COMES BY VIRTUE OF AN INDIVIDUALS CAPACITY TO
GRANT RESOURCES WHICH ARE VALUED BY OTHERS
5. PUNISHMENT POWER(COERCIVE POWER)- POWER WHICH IS CLOSELY RELATED TO
REWARD POSER WHICH COMES FROM THE ABILITY TO DEPRIVE A PERSON OF
SOMETHING OF VALUE
6. RELATIONSHIP POWER- POWER WHICH STEMS FROM A TYPE OF INFORMAL PERSONAL
OBLIGATION WHICH HAS BEEN BUILT UP OVER THE YEARS AMONG PEOPLE IN A
COMMUNITY
STYLES OF DIRECTING
• TASK MANAGEMENT: PEOPLE IN THE ORGANIZATION ARE REGARDED AS
INSTRUMENTS OF PRODUCTION. THE RELATIONSHIP BETWEEN A MANAGER AND HIS
SUBORDINATES IS BASED ON THE EXERCISE OF AUTHORITY AND OBEDIENCE
• COUNTRY-CLUB MANAGEMENT: THE MANAGER IS PERCIEVED TO MORE OF A BIG
BROTHER THAN THE STERN AND INTIMIDATING BOSS. FRIENDLINESS , COLLEGIALITY
AND HARMONY ARE EVIDENTLY FELT BY THE MEMBERS
• MIDDLE OF THE READ MANAGEMENT: WORKERS SPONTANEOUSLY WORK AND DO AS
THEY ARE TOLD IF THE REASONS FOR DOING SO ARE CLEARLY EXPLAINED
• IMPOVERISHED MANAGEMENT: THE MANAGER OR THE PASSING THE BLAME ON
OTHER FOR HIS FAILURE TO ABSOLVE HIM FORM HIS RESPONSIBILITIES
• TEAM MANAGEMENT: THE MANAGER INTEGRATES MANAGEMENT OF PRODUCTION
AND PEOPLE UNDER CONDITIONS WHERE CONSULTATION AND PARTICIPATION ARE
GIVEN HIGH PREMIUM AS KEYS FOR WORK PLANNING AND IMPLEMENTATION.
CONTROLLING
CONTROLLING
CONTROLLING IS A MANAGERIAL FUNCTION OF MEASURING AND
CORRECTING PERFORMANCE IN ORDER TO MAKE SURE THAT
ORGANIZATIONAL OBJECTIVES AND PLANS THAT WERE DELIBERATELY
DEVISED TO BE ATTAINED ARE BEING ACCOMPLISHED
CONTROLLING AS A MANAGEMENT TOOL IS THE FUNCTION OF EVERY

MANAGER FROM PRESIDENT TO SUPERVISOR. WHILE THE RANGE OF
CONTROL VARIES AMONG MANAGERS MEET AT ALL LEVELS HAVE THE
RESPONSIBILITY FOR THE EFFECTIVE IMPLEMENTATION OF PLANS
THE CONTROL PROCESS
• CONTROL IS THE PROCESS OF ASSURING MANAGEMENT THAT

ORGANIZATIONAL PLANS, OBJECTIVES, PROGRAMS AND OTHER
SPECIFIC TASKS ARE CARRIED OUT EFFICIENTLY AND EFFECTIVELY. THE
BASIC CONTROL PROCESS INVOLVES THREE STEPS:
1. ESTABLISHING STANDARDS
2. MEASURING PERFORMANCE AGAINST THESE STANDARDS
3. PROVIDE REMEDIES FOR DEVIATION FROM STANDARDS AND PLANS
ESTABISHMENT OF STANDARD
ESTABLISHMENT OF STANDARDS IS A PROCESS BY WHICH CRITERIA ARE
SET AGAINST WHICH ACTUAL PERFORMANCE CAN BE MEASURED. WHEN
FORMALCONTROL SYSTEM IS IN PLACE, THE MOST COMMON TOOL USED
BY THE MANAGEMENT AS A CRITERION IS THE BUDGET . THE BUDGET IS A
QUANTITATIVE EXPRESSION OF A PLAN OF ACTION. IT IS IMPORTANT
THAT THE MASTERS BUDGET INTEGRATES THE QUANTITATIVE TARGETS
ON DIFFERENT UNITS WITHIN THE ORGANIZATION AND SHOWS THE
EXPECTED IMPACT ON THESE ON INCOME, BALANCE SHEET AND CASH
FLOWS
SOME CRITICAL CONTROL POINTS AND
STANDARDS
1.PHYSICAL STANDARDS: ARE BASICALLY NON- MONETARY

MEASUREMENTS AND ARE COMMON AT THE OPERATING LEVEL WHERE
MATERIALS ARE UTILIZED , LABOR IS EMPLOYED, SERVICES ARE
RENDERED AND GOALS ARE PRODUCED
2. COST STANDARDS: REFER TO MONETARY MEASUREMENTS WHICH ARE
ATTACHED TO MONETARY VALUES OF SPECIFIC ASPECTS OF OPERATIONS
WHICH ALL THE RESULTS OF DIRECT AND INDIRECT COSTS PER UNIT
PRODUCED, LABOR COST PER UNIT , MACHINE-HOURS COST ETC.
STANDARDS
3. CAPITAL STANDARDS: THESE HAVE SOMETHING TO DO WITH THE
CAPITAL INVESTMENTS IN THE ORGANIZATION. THEY ARE PRIMARILY
RELATED TO THE BALANCE SHEET DISCLOSED OTHER CAPITAL
STANDARDS. THESE ARE CURRENT RATIO, DEBT-EQUITY RATION,
INVETORY TURN OVER ., ETC
4. PROGRAM STANDARDS: IT IS ONE OF THE ASSIGNED TASKS OF
MANAGERS TO FOLLOW THE DEVELOPMENT OF NEW PRODUCTS FOR
IMPROVING THE QUALITY OF SALES TEAM
STANDARDS
5. REVENUE STANDARDS: THESE STEM FROM MONETARY VALUES TO

SALES. THESE INCLUDE STANDARDS SUCH AS BUS-PASSENGER –PER-
KILOMETER, AVERAGE SALES PER CUSTOMERS, SALES PER CAPITAL IN A
GIVEN MARKET PLACE
6. INTANGIBLE STANDARDS: STANDARDS THAT ARE NOT EXPRESSED IN
EITHER PHYSICAL OR MONETARY MEASUREMENTS
STANDARDS
7. GOALS STANDARDS: CONTEMPORARY TENDENCY FOR BETTER-

MANAGE D ORGANIZATIONS IS TO ESTABLISH A NETWORK OF VERIFIABLE
GOALS IN EVERY LEVEL OF MANAGEMENT. IN LARGE ORGANIZATIONS
WHERE PROGRAM OPERATION ARE COMPLEX , MODERN MANAGERS ARE
FINDING THAT, THROUGH RESEARCH, IT IS POSSIBLE TO DEFINE GOALS
THAT CAN BE USED AS PERFORMANCE STANDARDS.
STANDARDS
8. STRATEGIC PLANS: AS A CONTROL POINTS FOR STRATEGIC CONTROL.
STRATEGIC CONTROL IS A SYSTEMATIC MONITORING AT STRATEGIC
CONTROL POINT AS WELL AS MODIFYING THE ORGANIZATION’S
STRATEGY ON THE BASIS OF EVALUATION. STRATEGIC PLANS REQUIRE
STRATEGIC CONTROL. SINCE CONTROL FACILITATE COMPARISONS OF
INTENDED GOALS WITH ACTUAL PERFORMANCE, THEY ALSO PROVIDE
OPPORTUNITIES FOR LEARNING, WHICH IN EFFECT, MAY BE THE BASIS
FOR ORGANIZATIONAL CHANGE.
MAJOR PRINCIPLES OF MANAGEMENT
CONTROL
1. THE PRINCIPLE OF THE PURPOSE OF CONTROL- THE PRIMARY FUNCTION OF
CONTROL IS TO ENSURE THAT PLANS SUCCEED BY DETECTING DEVIATION
FROM PLANS AND FURNISHING A BASIS FOR TASKING ACTION TO CORRECT
POTENTIAL OR ACTUAL EXISTING UNDESIRABLE DEVIATION
2. THE PRINCIPLE OF FUTURE- DIRECTED CONTROL- FOR TIME LAGS IN THE
TOTAL SYSTEM OF CONTROL, THE MORE CONTROL SYSTEM IS BASED ON
FEEDFORWARD RATHER THAN SIMPLE FEEDBACK OF INFORMATION, THE
MORE MANAGERS HAVE THE OPPORTUNITIES TO PERCIEVE DEVIATIONS
FROM PLANS BEFORE THEY OCCUR AND TO TAKE ACTIONS IN TIME TO
PREVENT THEM
MAJOR PRINCIPLES OF MANAGEMENT
CONTROL
3. THE PRINCIPLE OF EFFICIENCY OF CONTROLS: CONTROL TECHNIQUES AND
STRATEGIES ARE SAID TO BE EFFICIENT IF THEY DETECTED THE NATURE AND
CAUSE OF DEVIATIONS FROM PLANS WITH A MINIMUM OF COSTS
4. THE PRINCIPLE OF CONTROL RESPONSBILITY- THE FUNDAMENTAL
RESPONSIBILITY FOR THE EXERCISE OF CONTROL ULTIMATELY RENTS IN THE
MANAGERS CHARGED WITH THE PERFORMANCE OF THE PARTICULAR PLANS
INVOLVED
5. THE PRINCIPLE OF PREVENTING CONTROL: THE HIGHER THE POSITION AND
THE QUALITY OF MANAGERS IN A MANAGERIAL SYSTEM ARE. THE LESS WILL BE
THE NEED FOR DIRECT CONTROLS.
COMMUNICATION
COMMUNICATION
• TRANSFER OF INFORMATION FROM SENDER TO THE RECIEVER WITH

THE INFORMATION BEING UNDERSTOOD BY THE RECIEVER
• COMMUNICATION FUNCTION IS THE MEANS BY WHICH ORGANIZED
ACTIVITY IS UNIFIED. IT IS LOOKED UPON AS THE MEANS BY WHICH
SOCIAL INPUTS ARE FED INTO THE SOCIAL SYSTEM . IT IS THE MEANS
BY WHICH BEHAIVIOR IS MODIFIED , CHANGE IS EFFECTED,
INFORMATION IS MADE PRODUCTIVE AND ORGANIZATION GOALS AND
OBJECTIVES ARE REALIZED
PURPOSE OF COMMUNICATION
• THE PRIMARY PURPOSE OF COMMUNICATION IS TO EFFECT CHANGE-

TO INITIATE AND INFLUENCE ACTION FOR THE WELFARE OF THE
ORAGNIZATION . COMMUNICATION IS IMPORTANT FOR THE INTERNAL
AND EXTERNAL FUNCTIONING OF THE ORAGNIZATION BECAUSE IT
INTEGRATES MANAGERIAL FUNCTIONS
COMMUNICATION IS NEEDED TO:
• ORGANIZE HUMAN AND OTHER RESOURCES IN THE EFFICIENT AND
EFFECTIVE WAY
• ESTABLISH AND DISSEMINATE THE GOALS OF THE ORGANIZATION
• DEVELOP PLANS FOR THEIR ACHIEVEMENT
• SELECT, DEVELOP AND APPRAISE MEMBERS OF THE ORGANIZATION
• LEAD, DIRECT, MOTIVATE AND CREATE A CLIMATE IN WHICH PEOPLE
WANT TO CONTRIBUTE AND
• CONTROL PERFORMANCE
COMMUNICATION PROCESS
COMMUNICATION CAN BE TRANSMITTED
BY:
A. ORAL: B. WRITTEN:
EXAMPLES EXAMPLES
1. TELEVISION 1. MEMORANDUM
2. CONVERSATION 2. TELEGRAM
3. TELEPHONE 3. TELEVISION
4. COMPUTER
FLOW OF COMMUNICATION IN THE
ORGANIZATION
1. DOWNWARD COMMUNICATION- FLOWS PEOPLE AT HIGHER LEVELS TO
THOSE AT LOWER LEVELS IN THE ORGANIZATION HIERARCHY
2. UPWARD COMMUNICATION- FLOWS FROM SUBORDINATES TO SUPERIORS
AND CONTINUES UP THE ORGANIZATION HIERARCHY
3. CROSSWISE COMMUNICATION: COMPRISE THE HORIZONTAL FLOW OF
INFORMATION AMONG PERSONNEL ON THE SAME ORGANIZATIONAL
LEVELS AND THE DIAGONAL FLOW AMONG PERSONNEL AT DIFFERENT
LEVELS WHO HAVE NO DIRECT RELATIONSHIP WITH ONE ANOTHER
TYPES OF COMMUNICATION:
• WRITTEN COMMUNICATION: HAS THE ADVANTAGE OF PROVING

RECORDS, REFERENCES AND LEGAL BRIEFS. ITS DISADVANTAGE
HOWEVER , THEY CREATE BIG FILE OF PAPER OR MAY BE POORLY
EXPRESSED BY INEFFECTIVE WRITERS AND MAY PROVIDE NO
IMMEDIATE FEEDBACK
• ORAL COMMUNICATION: IT OCCURS IN FACE TO FACE MEETING OF TWO

PERSO OR IN A MANAGERS PRESENTATION TO A BIG AUDIENCE. IT CAN
BE FORMAL OR INFORMAL AND CAN BE PLANNED OR ACCIDENTAL. THE
IMPORTANT ADVANTAGE OF THIS TYPE IS THAT IT MAKES A SPEEDY
INTERCHANGE OF IDEAS WITH IMMEDIATE FEEDBACK. PEOPLE CAN ASK
QUESTIONS AND CLARIFY POINTS ON FACE TO FACE INTERACTIONS
AND THE EFFECT CAN BE NOTED IMMEDIATELY. ORAL
COMMUNICATIONS HAS A DISADVANTAGE FOR IT DOES ALWAYS SAVE
TIME . THIS MEETINGS CAN BE COSTLY IN TERMS OF TIME AND MONEY
• NON VERBAL COMMUNICATION: WHAT- INDIVIDUAL SAYS CAN BE

REINFORCED OR CONTRAINDICATED BY NON VERBAL
COMMUNICATIONS SUCH AS FACIAL EXPRESSIONS AND BADLY
GESTURES. BASICALLY NON VERBAL COMMUNICATION SUPPORTS THE
VERBAL, BUT IT DOES NOT ALWAYS DO SO.
COMMON PROBLEMS OF
COMMUNICATION:
• LACK OF PLANNING
• SEMANTIC DISTORTION
• POORLY EXPRESSED MESSAGE
• COMMUNICATION PROBLEM IN THE INTERNATIONAL ENVIRONMENT
• LOSS OF TRANSMISSION AND POOR RETENTION
• IMPERSONAL COMMUNICATION
• POOR LISTENING
• DISTRUST, THREAT, FEAR
• INADEQUATE TIME FOR ADJUSTMENT TO CHANGE
Clinical Laboratory and
Organization
CLINICAL LABORORATORY
• FACILITY THAT PERFORM CHEMICAL AND MICROSCOPIC EXAMINATION

OF VARIOUS BODY FLUIDS LIKE BLOOD AND TISSUES
• FOUND VARIETY OF SETTINGS ; HOSPITAL OR FREE STANDING i.e
CLINICS, GROUPS PRACTICES, PHYSICIANS OFFICES, VETERINARY
OFFICES, GOVERNMENT AGENCIES AND MILITARY INSTITUTION
• MAY BE LARGE, OFFERING SOPHISTICATED SERVICES AND EMPLOYING
MANY MEDICAL TECHNOLOGISTS AND TECHNICIANS OR MAY BE A
SMALL FACILITY HAVING ONLY FEW EMPLOYEES
CLASSIFICATION OF CLINICAL LABORATORY
ACCORDING TO FUNCTIONS
• CLINICAL PATHOLOGY: INCLUDE CLINICAL CHEMISTRY, HEMATOLOGY,

MICROBIOLOGY, PARASITOLOGY, CLINICAL MISCROSCOPY,
IMMUNOLOGY AND SEROLOGY, BLOOD BANKING, ENDOCRINOLOGY,
AND RADIOISOTOPES ANALYSTS
• ANATOMIC PATHOLOGY: INCLUDES SURGICAL PATHOLOGY,
IMMUNOPATHOLOGY, CYTOLOGY AND POOST MORTEM EXAMINATION
CLASSIFICATIONACCORDING TO
INSTITUTIONAL CHARACTER:
• HOSPITAL: LABORATORY THAT OPERATES WITHIN A HOSPITAL

• FREE STANDING : (NONE HOSPITAL)- DOES LABORATORY THAT
OPERATES ON ITS OWN OR A START OF AN ACTIVITY OTHER THAN A
HOSPITAL
CLASSIFICATION ACCORDING TO SERVICE
CAPABILITIES
-SERVICE EXTENT AND LEVEL; DEPENDING ON THE RANGE OF

LABORATORY EXAMINATION PERFORM AND THE PRESENCE OF CERTAIN
MANPOWER, MATERIALS, AND FACILITIES REQUIRED
• PRIMARY CATEGORY
• SECONDARY CATEGORY
• TERTIARY CATEGORY
PRIMARY CATEGORY
• ROUTINE HEMATOLOGY
1. HEMOGLOBIN MASS CONCENTRATION
2. ERYTHROCYTE VOLUME FRACTION
3. LEUKOCYTE NUMBER CONCETRATION
4. LEUKOCYTE TYPE NUMBER CONCETRATION
• ROUTINE URINALYSIS
• ROUTINE FECALYSIS
• GRAM STAINING
SECONDARY CATEGORY
• ROUTINE HEMATOLOGY, URINALYSIS, FECALYSIS, AND RAM STAINING

• ROUTINE CHEMISTRY- BLOOD GLUCOSE, UREA, URIC ACID , CREATININE
, CHOLESTEROL, TOTAL PROTEIN
• BLOOD TYPING AND CROSS MATCHING
TERTIARY CATEGORY
• ROUTINE HEMATOLOGY, URINALYSIS, FECALYSIS AND GRAM STAINING

• ROUTINE CHEMISTRY
• BLOOD TYPING AND CROSS MATCHING, DONOR SELECTION AND BLOOD
COLLECTION FOR TRANSFUSION
• SPECIAL CHEMISTRY
• SPECIAL HEMATOLOGY
• CULTURE AND SENTIVITY TESTING
CLASSIFICATION OF TESTS ACCORDING TO
COMPLEXITY
• RISK OF HARM TO THE PATIENT

• RISK OF AN ERRONEOUS RESULT
• TYPE TESTING METHOD USED
• DEGREE OF INDEPENDENT JUDGEMENT AND INTERPRETATION NEEDED
• AVAILABILITYOF THE PARTICULAR TEST IN QUESTION FOR HOMES USE
COMPLEXITY
• WAIVED TEST: TEST CLEARED BY THE FDA FOR HOME USE , EMPLOY SIMPLE
METHODS , LIKELIHOOD OF ERRONEOUS RESULT IS NEGLIGIBLE POSE NO
RISK OR HARM TO THE PATIENT IF THE TEST IS PERFORMED INCORRECTLY
• PROVIDER-PERFORMED MICROSCOPY: THE EXAMINATION PERSONALLY
PERFORMED BY A PRACTIONER;PROCEDURE CATEGORIZED AS MODERATELY
COMPLEX, PRIMARY INSTRUMENT FOR PERFORMING THE TEST IS
MICROSCOPE, SPECIMEN, IS LABILE, CONTROL MATERIALS ARE NOT
AVAILABLE ; SPECIMEN HANDLING IS LIMITED
COMPLEXITY
• MODERATELY COMPLEX TESTS: PERFORMS ONLY WAIVED TEST AND

ONE MORE TESTS DESIGNATED AS MODERATELY COMPLEX BY THE FDA
• HIGHLY COMPLEX TEST: PERFORMS ONE OR MORE TEST SPECIFICALLY
ISTED OR MORE TEST SPECIFICALLY LISTED OR INCLUDED IN THE
WAIVED OR MODERATELY COMPLEX CATEGORIES
WAIVED TEST
• DIPSTICK OR TABLE REAGENT ANALYSIS OF pH, SPECIFIC GRAVITY , GLUCOSE,
PROTEIN BILIRUBIN, KETONE , LEUKOCYTE, NITRITE AND UROBILINOGEN
• WHOLE BLOOD GLUCOSE USING DEVICE APPROVED BY THE FDA SPECIFICALLY
FOR HOME USE
• SPUN MICROHEMATOCRIT, HEMOGLOBIN BY COPPER SULFATE METHOD
• FECAL OCCULT BLOOD
• URINE PREGNACY TEST BY VISUAL COLOR COMPARISON
• VISUAL COLOR OVULATION TEST FOR HUMAN LUTENIZING HORMONES
• ERYTHROCYTE SEDIMENTION RATE
• SINGLE ANALYTE GLUCOSE AND HEMOGLOBIN
• SINGLE ANALYTE CHOLESTEROL
PROVIDE-PERFORMED MICROSCOPY
• LIVER MOUT , INCLUDING PREPARATIONS OF PROSTATE, VAGINAL,

CERVICAL OR SKIN SPECIMEN
• POTASSIUM HYDROXIDE PREPARATIONS
• PINWORM EXAMINATIONS
• POSCOITAL DIRECT, QUALITATIVE EXAMINATIONS OF VAGINAL AND
CERVICAL MUCUS
MODERATELY COMPLEX TEST
• HEMOTOLOGY
1. AUTOMATED ANALYSIS
2. DUKE BLEEDING TIME
- MICROBIOLOGY
1. TEST FOR THE PRESENCE OR ABSENCE OF BACTERIA, DERMATOPHYTES
2. DIRECT ACID FAST SMEARS
3. GRAMS STAINS FROM URETHRAL AND ENDOCRINOLOGY
4. BLOOD BANKING METHOLOGY
HIGHLY COMPLEX TEST
HEMOTOLGY:
1. MANUAL METHODS FOR CELL COUNTS AND COAGUALTION
2. PLATELET AGGREGOMETRY
3. DEFFERENTIALS THAT INCLUDE INTERPRETATION OF TYPICAL CELLS
MICROBIOLOGY
1. ALL PROCEDURE REQUIRING IDENTIFYING OF SUSCEPTIBILITY DETERMINATION OF
ORGANISMS AFTER TRANSFER FROM PRIMARY CULTURE MEDIUM
2. GRAMS STAINS FROM SOURCES OTHER THAN URETHRAL OR ENDOCERVICAL
ORIGIN
ALTERNATE SITES OF TESTING:
• CENTRAL LABORATORY TESTING : TRADITIONAL SETTING FOR

PERFORMANCE OF DIAGNOSTIC TESTING LOCATED IN A HOSPITAL
WHERE SPECIMENS FROM PATIENTS ARE SENT TO BE TESTED
• POINT OF CARE TESTING: TESTING SITE AWAY FROM TRADITIONAL
LABORATORY SUCH AS BED SIDE IN THE OPERATING ROOMS , OR
RECOVERY AREAS OR RECORY AREAS OR EVEN HOME TESTING
Clinical Laboratory Organization
Laboratory Personnel
1. Pathologists 8. Histotechnologist
2. Associate/ Assistant Pathologists 9. Chemist
3. Medical Technologists- Chief, 10.Microbiologist
Senior, Junior
4. Laboratory Aides/Assistant
5. Phlebotomist
6. Phlebotomist
7. Cytotechnologist
• Pathologists: the Head, Director, Chief or Incharge a licensed physician and

registered with the Medical Board of Examiners of the Philippines, qualified
in laboratory medicine by having been certified by the Philippines Board of
Pathology, Clinical Pathology or Both
• Associate Pathologists: a licensed physician and qualified in laboratory
medicine as certified by the Philippines Board who is under the direct
supervision of the head
Pathologists
• Undergo 4 – 5 years residency training in both anatomic and clinical

pathology
1. Anatomic pathologist: examine surgical specimen which include frozen
section, tissue samples , autopsy specimen and Pap smear
2. Clinical Pathologist: Supervise the performance of common laboratory test
done on blood and urine
Supervisor or Manager
• A Medical Technologists with additional education and experience in

administration; must have expertise in medical, scientific and technical
areas as well as full understanding of regulatory matters
1. Technical Manager: supervise the technical aspects of the facility(issues
involving assay of analytes) including quality control programs, off-site
testing and maintenance of laboratory instrument
2. Business/ administrative Manager: Ensures that all regulatory mandates
are being followed by the laboratory
• Medical Technologist: Must be licensed duly registered in the board of

examiners for Medical Technology who shall be under supervision of a
Pathologist, or a licensed physician
• Laboratory Technician: Must have at least 2 years of college with at least 12
training in accredited laboratory, or without college work but with at least
10 years training and experience in a duly approved clinical laboratory
Medical technologists
• Earned a bachelor of science degree in Medical Technology; Registered

• Perform the following :
1. Laboratory Assay( including troubleshooting)
2. Teach
3. Research
• Laboratory Aide : Should be at least high school graduate and who shall
assist the Medical Technologist or Laboratory Technician but whose
activities should be limited to non-technician procedures
• Phlebotomist: Person trained in blood collection essential to the health care
team and provides the link between the patient and laboratory
FINANCIAL MANAGEMENT
(OPERATIONAL BUDGET)
OPERATIONAL BUDGET
(TOPICS HIGHLIGHT AND TERMINOLOGIES)
• Budgeting: The process of planning, forescasting, controlling and

monitoring the financial, resources of the organization
• Operational budgeting: The process of planning for the Laboratory as an
ongoing business concern, accounting for everyday needs and expenditures
OPERATIONAL BUDGET
A. Operational Budget:
- Capital Budget: Plans for the acquisition and completion of specific equipment and
building projects that require major financial commitments:
1. Forecast/Projection method
2. Flexible budgeting : a budget process that attempts to set expenditures based on
variable workload volume
3. Zero based budgeting : a method that analyzes needs based on prioritizing of
goals and objectives and not on past allocations
OPERATIONAL BUDGET
B. Operational Budget Preparation:

1. Time frame
2. Forecasting stage
3. Scheduling stage
4. Synthesis of Information
OPERATIONAL BUDGET
C. Review of budgeting procedures:

Pro-forma budget: a budget based on exploration of historical data
D. Monitoring and feedback
OPERATIONAL BUDGET
II. The capital budget
A. Definition of capital
Capital item: A building project, piece of equipments or instrument
That meets specific institution and regulatory guidelines of time, price and purpose
B. Parts of a capital budget
C. Certificate of Needs(CON): A document issued by a government regulatory body to
authorize the capital project
OPERATIONAL BUDGET
D. Instrument/ project capital proposal

1.Narrative tools
a. Justification
b. Prioritization
c. Opportunity cost: the value of what is given up in order to pursue another
project
OPERATIONAL BUDGET
(TOPICS HIGHLIGHT AND TERMINOLOGIES
2. Quantitative tools:
a. Payback periods: The length of time it will take to recover the cash outlays for a
project
b. Average rate of return: the average yield over the life of an investment
c. Net present value:
Time value of money: The future value of a dollar compared with today
d. Internal rate of return
Net present value: The worth of future earnings at today’s rate
Internal rate of return: The ratio cash flow and cost-of-capital factors to the amount
of investment required
e. Required rate of return: a bottom-line level of income required by a company
before any project is considered
OPERATIONAL BUDGET
(TOPICS HIGHLIGHT AND TERMINOLOGIES
E. Financing a project
1. Acquisition option
2. Depreciation: monetary value by which assets diminish with time and usage
a. savage value of an item at the time of release trade in or disposal
b. allowance calculation method
- Straight-line depreciation: a method based on the time element of depreciation
- Unit of output: A method of determining the depreciation allowance based on unit output
- Accelerated depreciation: methods allowed by regulatory agencies to encourage
investments
F. Capital budget proposals
OPERATIONAL BUDGET:
“Budget applies to the process of planning, forecasting , controlling and

monitoring resources of the organization”
- Deals with the planning for laboratory as an ongoing business concern
accounting for everyday needs and expenditures. It represent the financial
parameters of the laboratory’s goal
- The capital budget covers specific equipment acquisition and building
projects that require major financing commitments
Preparation of the Operational Budget:
• Types of operational budget

• Stages in preparing the budget
• Budgeting techniques and methods
• Budget to monitor and provide feedback
TYPES OF OPERATIONAL BUDGET
• Forecast/ Projection method

• Flexible budgeting
• Zero-based budgeting
FORECAST/PROJECTION METHOD
• Under this method a budget is prepared based on a forecast of what is

expected to occur during the next period
• This process makes projection of the increase or decrease that will occur on
each line in the budget based on historical information and adjustment for
anticipated changes
Flexible budgeting
• This system to set expenditure based on a variable workload volume.

• Example: At a certain patient census, the hospital should have a specific
number of employees. When the census drops, employees are laid off. This
has been difficult to implement because of recruitment and retention
problems. Even supplies must be ordered in advance to ensure adequate
level. For this reasons a budget similar to the forecast method is prepared
and then closely monitored to ensure the projections are target
Zero-based Budgeting
• Based on prioritizing goals and objectives not on past allocations. This

procedure has had some success in setting priorities of large governmental
and educational institutions. However, even in those cases some method of
predicting how much an activity will cost is necessary.
Zero-based Budgeting
• Example: The laboratory may have a specific plan to examine each year
which services should be performed in-house and which should be sent to
reference laboratory. This would be much more than simply going down the
test menu. Zero-based budgeting starts with the assumption that a service
is not necessary with extensive documentation required to explain why it
must be performed in-house and not dropped in favor of a more productive
options
Budget preparation
• Time frame
• Forecasting stage
• Scheduling stage
Budget Preparation:
Time Frame
Budget Preparation:
Time Frame
Budget Preparation:
Forecasting stage
Budget Preparation:
Scheduling stage
Difference between Budgeting Process of
Government Agencies and Private Agencies
• Government agencies and public institutions : refers to on “appreciation

budget” because expenditures must be approved and allocated by a
governing body such as legislature or board of directors
• Private sector the number of administrative groups involved in approval is
limited to the organization itself and the term is simply “the Budget”
CAPITAL BUDGET
• Capital budgeting is the process used by organizing to plan , evaluate and

choose between future investment opportunities. Whereby the budgeting
of such items covers a multiple –year planning schedule
• Both capital and operation budgeting determines the needs and manage its
financial resources
Definition of capital
• Monetary needs of an institution as in “ We must raise the needed-capital”

• In accounting: capital items are purchased or projects that meet specific
guidelines of time, price and purpose
Evaluation of Capital budget
1.Time Criteria: The time frame of capital items is 1 year if product provides
service for more than 1 year, it meets its criteria
2. Price criteria: The dollar value of a project also determines whether it is
budgeted as a capital item or expensed the cut-off amount varies widely and
depends on the accounting policy of the business
Price criteria:
Example: a new heating block costing 200 dollars would meet the other two
criteria for capital items, but because of the low cost and the paper work
requirements, it would probably be handled as a supply expenses for the year
of purchase
• Purpose Criteria: entirely new instruments, furniture or building projects are

normally classified as capital projects under federal tax rules. If it is a repair
or a replacement of part of existing equipment or structures; it is included in
the operational budget.
Significance of 3 Criteria in Evaluating Capital
Budget
“ Instrument purchase or building project can be classified as either a capital or

expense item and budgeted accordingly depending on the standards applied
and weight assigned by the laboratory to each factors”
Parts of a Capital budget
• Capital budget are divided into two parts according to the amount of the
expenditures. Projects costing less than a set limit need minimal paperwork
, where those above this amount require extensive dept-analysis. A
common division point is 10,00 dollars.
• Those projects meeting the minimal criteria frequently require only written
justification describing the purpose , function goals and prioritization.
Larger items need more extensive financial analysis.
Certificate of Needs (CON)
• In addition to preparing a capital budget institutions own-used, Federal and
State regulations require health care facilities to submit capital plans on
certain projects for approval and to obtain a certificate of need
authorization before proceeding this process required for projects,
equipment or buildings above as established monetary level. Most states
have set 150,000 dollars following federal guidelines a CON must also be
obtain before new service such as oncology or obstetrics can be offered.
This program was established in an attempt to control spiraling medical cost
and to avoid duplication of services and the over building of hospital beds
Instrument / project capital proposals
2 analysis are used in evaluating capital expenditures
1. Narrative description: or justification of the need and intended use and
qualitative techniques to determine the fianancial feasibility of the
projects
Example : A capital proposals for a small chemistry analyzer costing around
8,000 dollars may need the narrative justification an analyzer costing more
than 10,000 dollars requires a financial feasibility study as well
2. Quantitative techniques to determine the financial feasibility of the project.
Sample narrative tool for justification
Justification
• Rationale or requesting an instrument or building program
1. Explain why the project is needed
2. How it will benefit the laboratory
Proposals can be justified by being grouped into one of four categories:
1. Necessary to maintain present service level
2. Will provide significant savings over current methods
3. will enhance or improve current programs
4. Will offer new procedures or services
PRIORITIZATION
• An additional step needed in the justification process is to prioritize the project,

both in the time and in relation to other requests. Many capital budget forms have
a score to rank priority ;others request a detailed narrative explanation of the
acquisition and, or completion timetable
EX: effective terminology include terms like "immediate”, “urgent", "will replace a
troublesome instrument that is on its last legs” or “anticipated need before the end of
the year” departments may submit several proposals; but they must be ranked
according to their priority. A sound case must be made so that the project receives a
high priority ranking among requests from other departments.
CLINICAL LABORATORY
QUALITY CONTROL
LABORATORY QUALITY CONTROL
• Is a system of ensuring accuracy and precision in the laboratory by including
quality control reagents in every series of measurements
• Is a process of ensuring that analytical results are correct by testing known
sample that resembles patient samples
• It involves the process of monitoring the characteristics of the analytical
processes and detects analytical errors during testing and ultimately
prevent the reporting of inaccurate patient test results
• Is one component of the quality assurance system and is part of the
performance monitoring that occurs after a test has been established
Parameters of Quality Control
• Sensitivity: is the ability of an analytical method to measure the smallest

concentration of the analyte of interest
• Specificity: is the ability of an analytical method to measure only the analyte of
interest
• Accuracy: is the nearness or closeness of the assayed value to the true or target
value. It is estimated 3 types of studies: recovery, interference and patient sample
comparison. Recovery study determines if specific compounds affect the
laboratory test like hemolysis, turbidity and icteric; sample comparison study is
used to assess presence of error(inaccuracy) in actual patient sample.
• Precision or reproducibility: is the ability of an method to give repeated results on the

sample that agree with one another
• Practicability: is a degree y which is easily repeated
• Reability: is the ability of an analytical method to maintain accuracy and precision over an
extended period of time during which equipment, reagents and personnel may change
• Diagnostic sensitivity: Is the ability of an analytical method to detect the proportion of
individuals with the disease. It indicates the ability of the test to generate more true-
positive result and few false-negative . Screening test require high sensitivity so that no
case is missed.
Diagnostic Sensitivity:
Sensitivity(%) = 100 x the number of diseases individuals with positive test

Total number of diseased individuals tested
• Diagnostic specificity: is the ability of the analytical method to detect the

proportion of individuals without the disease
• It reflects the ability of the method to detect true- negative with very few
false- positives. Confirmatory test require high specificity to be certain of
the diagnosis
Diagnostic Specificity:
Sensitivity(%) = 100 x the number of individuals w/o disease with a negative test
Total number of individuals tested without the disease
Kinds of Quality Control
• Intralab Quality Control ( internal QC):
- It involves the analyses of control sample together with the patient specimens.
- It detects changes in performance between the present operation and the
“stable” operation.
- It is important for the daily monitoring of accuracy and precision of analytical
methods
- It detects both random and systematic errors in a daily basis
- It allows identification of analytical errors within a one – week cycle
- done depends on shifting
• Interlab quality control ( external QC)

- It involves proficiency testing programs that periodically provide sample of
unknown concentrations to participating clinical laboratories
- It is important in maintaining long term accuracy of the analytical methods
- It is also used to determine state-of –the art interlaboratory performance
- The college of American Pathologists(CAP) proficiency program is gold
standard for clinical laboratory external Quality control testing.
• Internal quality control:

Referrence laboratories:
1. Lung Center of the Phil: Clinical Chemistry
2. NKTI: Hematology
3. San Lazaro Hospital: Serology
4. RITM: Microbiology
Conduct of the External QC Testing:
• A series of unknown samples are sent to the laboratory from the reference laboratory or
authorized program provider
• Unknown samples must be tested by the laboratorians who regularly perform analysis of
patient specimens using the same reagents and equipment for actual patient specimens,
and the results are submitted to the program provider, preferably as soon as every analysis
done
• Analysis of the unknown samples should be completed within the usual time as for the
routine samples
• Unknown samples should be treated like patient like sample specimen to determined the
rue essence of accuracy.
• Results of the proficiency testing must be shared with other laboratories” during the
testing period” –comparison studies can be made after the testing cycle to identify areas
for improvement.
• Some proficiency tests are not quantitative but are qualitative, however for chemistry, it
should be quantitative.
• If there is no available proficiency testing program for a certain analyte, it is required to
implement a non-proficiency test scheme
Interpretation of the Results of the Proficiency
Testing
• Each analyte has a define performance criteria(example.+/- 3SD for peer mean),
where laboratories using the same method are evaluate by comparing them with
the group.
• In external QC, difference of greater than 2SD in the result indicates that a
laboratory is not in agreement with the rest of the laboratories included in the
program.
• If in case a clinical laboratory failed to identify or resolve an error or discrepancy in
the test process, the facility is at risk of continuous operation and may be
recommended for closure .
Rationale of the External QC/Proficiency
Testing:
• The ultimate goal of proficiency testing is to ensure our clinicians that
patient result are accurate.
• Proficiency testing allows each laboratory to compare and evaluate test
result or outcomes with those laboratories that use the same
method(reagents and equipment)
• Data obtained from the proficiency testing can be used to continuously
improve test performance, and also serve as troubleshooting guide when
investigating analytic error.
Objectives of Quality Control
• To check the stability of the machine

• To check the quality of reagents
• To check technical (operator) errors
Control Solutions (QC Materials)
• The accuracy of any assay depends on the control solutions, how they are
originally constituted and how they remain stable overtime
• General Chemistry assay used 2 level of control solution, while
immunoassay used 3 levels
• To established statistical quality control on a new instrument or on new lot
numbers of control materials , the different levels of control material must
be analyzed for 20 days
Control limits (control values)
• These are expected values represented by intervals acceptable values with upper
and lower limits
• If the expected values are within the desired control limit, the clinicians are assured
that the test result are accurate and precise.
• Control limits are calculated form the mean and standard deviation(SD)
• The idea control/reference limit between +/- 2SD
• Use of single lot for an extended period allows reliable interpretative criteria to be
established which will permit efficient identification of an assay problem.
• When changing to a new lot number, laboratorians use the newly calculated mean
value as the target mean but retain the previous SD value , but when more data are
obtained, all values should be averaged to get estimates of the mean SD
Control limits (control values)
• Determination of the mean and SD for the unassayed controls is also

advisable because this process improves the performance characteristics of
statistical control procedures.
Characteristics of an Ideal QC material:
• Resembles human sample

• Inexpensive and stable for long periods
• No communicable diseases
• No matrix effects/known matrix effects
• With known analyte concentration( assayed control)
• Convenient packaging for easy dispensing and strorage.
Variations
• Variation
Are errors encountered in the collection, preparation and measurement of
samples, including transcription and releasing of laboratory results.
Types of Error:
• Random error: -Is present in all measurements; it is due to chance
- Is a type of error which varies from sample to sample
-Is a basis for varying differences between repeated
measurements - variation in techniques.
- It is due to instrument, operator and environmental
conditions (variations in technique) such as pipetting error,
mislabeling of sample , temperature fluctuation, and improper
mixing of sample and reagents
Types of Error:
• Systematic error: - Is an error influences observations consistently in one
direction (constant differences)
- It is detected as either positive or negative bias-often
related to calibration problems, deterioration of reagents
and control materials , improperly made standard solutions,
contaminated solutions , unstable and inadequate reagent
blanks, leaky ion selective electrode (ISE), failing instrument and poorly
written procedures (impracticability)
- It is measured of the agreement between the measured quantity and
the true value.
Types of Error:
• Constant error: - It refers to a different between the target value and the
assayed value.
- It is Independent to sample concentration
- It exists when there is continual difference between the
Types of Error
• Proportional/Slope/ Percent Error: - It result in greater deviation from the

target value due to higher sample concentration.
- It exist when the difference between the test
method and the comparative method values is
proportional to the analyte concentration.
Types of Error
• Clerical Error: Is the highest frequency of clerical errors occur with the use of
handwritten labels and request forms.
Statistics:
• Statistics : is a science of gathering, analyzing, interpreting and presenting

data
• Mean: is a measure of central tendency it is associated with symmetrical or
normal distribution
𝐸𝑥
𝑀𝑒𝑎𝑛 =
𝑛
Statistics:
• Standard deviation (SD) : is measured of the dispersion of values from the

mean. It helps describe the normal curve. A measure of the distribution
range. It is the most frequently used measure of variation.
𝐸(𝑥−𝑚𝑒𝑎𝑛)2
𝑆𝐷 =
𝑛−1
Statistics:
• Coefficient of variance (CV): is percentile expression of the mean; an index

of precision.
𝑆𝐷
𝐶𝑉 = x 100
𝑚𝑒𝑎𝑛
Statistics:
• Variance: is called the standard deviation squared; measure of variability. It

represents the difference between each value and the average of the data.
V=(𝑆𝐷)2
APPLICATION OF STATISTICS IN QUALITY
CONTROL
CONTROL
• STEP 1: COMPUTE FOR THE MEAN VALUES NEEDED TO COMPUTE THE
STANDARD DEVIATIO(SD)
MEAN= 92.2 + 93. 3 + 94. 5 + 95 .5 /2

MEAN VALUE= 93.87
CONTROL
• STEP 2: SUBSTITUTE THE GIVEN VALUES TO FORMULA :

𝐸(𝑥−𝑚𝑒𝑎𝑛)2
𝑆𝐷 = MEAN VALUE= 93.87
𝑛−1
EXAMPLE:
CONTROL
• STEP 3: TO ESTABLISH THE CONTROL LIMITS SUBSTITUTE THE VALUES IN FORMULAS
BELOW
1SD = SD (+1) + MEAN VALUE
2 SD= SD (+2) + MEAN VALUE
3SD= SD(+ 3) + MEAN VALUE
-1SD= SD (-1) + MEAN VALUE

-2 SD= SD (-2) + MEAN VALUE
- 3 SD= SD(-3) + MEAN VALUE
CONTROL
• EXAMPLE GIVEN: MEAN= 93. 87 ;

SD= 1.43
1SD= 1.43(1) + 93.87 - 1SD= 1.43(-1) + 93.87
1SD = 95.3 -1SD= -92.04
2SD= 1.43(2) + 93.87 -2SD = 1.43(-2) + 93.87
2SD= 97.3 -2SD=90. 44
3SD= 1.43(3) + 93.87 -3SD= 1.43( -3) + 93.87
3SD= 98.3 - 3SD= 89.44
CONTROL
THESE CONTROL LIMIT VALUES IS APPLIED IN QUALITY CONTROL
CHARTS”
Quality Control Charts
• Is used to observe values of control materials over time to determine

reability of the analytical method
• Is utilized to observe and detect analytic errors such as inaccuracy and
imprecision.
Gaussian Curve (Bell-Shaped Curve)
• It occurs when the data set can be accurately described by the SD and the mean
• It is obtained by plotting the values from multiple analyses of a sample
• It is a population probability distribution that is symmetric about the mean
• It occurs when data elements are centered around the mean with most elements
close to the mean
• It focuses on the distribution of errors from the analytical method rather than the
values from a healthy or patient population.
• The total area under the curve is 1.0 or 100%
Gaussian Curve (Bell-Shaped Curve)
Cumulative Sum graph
• It calculates the difference between QC results and the target means
• Common methods: V- mask
• It identifies consistent bias problems it requires computer implementation
• This plot will give the earliest indication of systematic errors (trend) and can be
used with the 13𝑠 rule
• It is very sensitive to small, persistent errors that commonly occur in the modern,
low calibration- frequency analyzer
• Results are out of control when the slope exceeds 45𝑜 or a decision ( __
+
2.7 SD) is
exceeded
Youden /Twin Plot
• It is used to compare result obtained on a high and low control serum from
different laboratories
• It displays the results of the analyses by plotting the mean values for one
specimen on the ordinate (y-axis) and the other specimen on the abscissa
(x-axis)
• The points falling from a center but on the 45𝑜 line suggest a constant error.
Youden /Twin Plot
Shewhart's Levey-Jennings Chart
• It is the most widely used QC chart in the clinical laboratory

• It allows the laboratorians to apply multiple rules without the aid of a
computer
• It is a graphic representation of the acceptable limits of variation in the
result of an analytical method
• It easy identifies random and systematic errors
Errors which can be observed on LJ chart:
• Trend: is formed by control values that either increase or decrease for six
consecutive days
main cause: deterioration of reagents, deterioration of light source,
deterioration of control materials
-indicates gradual loss of reability in the test system.
TREND (LJ CHART)
SHIFT(LJ CHART)
OUTLIERS (LJ CHART)
Errors which can be observed on Levey-
Jennings chart:
• Shift: is formed by control values that distribute themselves on one side or

either side of the mean for six consecutive days
- shift in the reference range is due to transient instrument differences.
- Improper calibration of the instrument, change in reagent
formulation/reagent lot failure in the sampling/reagent system
Westgard Control Chart
• It recognized that the use of simple upper and lower control limits is not enough to identify
analytical problems
• In measuring systematic error or inaccuracy, Westgard et.al recommend that at least 40
samples and preferably 100 samples be run by comparison –of-methods experiment (test
method and reference method)
• The combination of the control rules used in conjuction with a control charts has been
called the multirule-Shewharts procedure.
• Multirule establish criteria for deciding whether an analytic process is out of control.
• The sensitivity of the multirole procedure can be increased to detect smaller systematic
errors by increasing the number of observations considered
Westgard Control Chart
• In Westgard , error detection rates can be increase without increasing the

false rejection rate
• False rejections can be happen because of the control limits design and not
actually identify a problem with the method
• Westgard used the term control rule to indicate if the analytical process is
out of control
Westgard Control Rules Error Interpretation
• 12𝑠 : it is used as a rejection or warning rule when one control result exceeds the
mean + 2SD; for screening purposes
• 13𝑠 : one control result exceeds the mean + 3SD; it is effective in determining
random error
• 22𝑠 : the last 2 control results (or 2 results from the same run) exceed either the
mean + 2SD ; respond most often to systematic errors
• 41𝑠 : the last four (or any four) consecutive control result exceed either mean + 1
SD; respond to systematic error
• 𝑅4𝑠 : the range or difference between the highest and lowest control result within
an analytical run exceeds 4SD; respond to random errors or increased imprecision
• 10x : ten consecutive results are on the same side of the target mean; systematic
error
General Interpretation of QC result
• The acceptable reference limit is set at + 2 SD
• The upper and lower reference limit define a specified percentage, usually 95% of
the values for certain group of population , hence 5% of the population will fall
outside the reference
• Interval/ limit in the absence of an abnormality or disease
• An analytical method is considered in control when there is symmetrical
distribution of control values about the mean and there are few control values
outside the 2S control limits
• If the analytical test result are not within the + 2SD confidence limit, run a new set
of controls and repeat specimen testing.
• A control value between 2S and 3S is a sign of a potential problem.
• A control value outside the 3S would require corrective action
General Interpretation of QC result
• Some laboratories use the 2S as a warning limit and 3S as error limit

• Not every rule violation indicates that an analytic process is out control.
• Continuous QC failure require more trouble shooting- Preparation of new
reagents, recalibration, Instrument maintenance and repair, and contacting
the dealer / manufacturer for technical support or service
• After the likely cause of the problem has been identified and corrected, a
full set of control materials should be retested.
CLINICAL LABORATORY
QUALITY MANAGEMENT
QUALITY MANAGEMENT
• Laboratory Quality: Is essential to all aspects of health care are laboratory

results that are accurate , reliable , and timely
• Quality is that all aspects of the laboratory operations must be reliable and
reporting must be timely in order to be useful in a clinical and public health
safety
Laboratory Errors Cost In:
1. Time
2 . Patient outcomes
3. Personnel efforts
“ When making measurements there is always some level of inaccuracy the
challenge is to reduce the level of inaccuracy as much as possible giving
limitation of our testing system “
LABORATORY ERROR
• “ ACHIEVNG THE 99% LEVEL OF QUALITY MEANS ACCEPTING A 1% OF

ERROR RATE”
• “ RESULTING 1% ERROR CAN QUITE BECOME LARGE IN A SYSTEM
EVENTS SUCH AS LABORATORY TESTING “
COMPLEXITY OF A LABORATORY SYSTEM
• In order to achieve the highest level of accuracy and reability, it is essential

to perform all procedures and processes in laboratory in the best possible
way
ISO LABORATORY PROCESS
COMPARABLE TERMS IN CURRENT LABORATORY

1. PRE EXAMINATION ------------ > PRE ANALYTIC
2. EXAMINATION ------------------> ANALYTIC
3. POST EXAMINATION ----------> POST ANALYTIC
12 QUALITY SYSTEM ESSENTIALS
Ho do we achieve excellent performance in the laboratory?

- We have to address the 12 essential quality system
12 QUALITY SYSTEM ESSENTIAL
QUALITY MANAGEMENT SYSTEM
• Quality management system: coordinated activities to direct and control an

organization with regard to quality
“ All aspects in the laboratory operations need to be addressed to assure
quality ;this constitute a quality management system”
Path of Work Flow
TWELVE QUALITY SYSTEM ESSENTIALS
(QSE’S)
“ Set of coordinated activities that function as building block for quality

management “
QUALITY SYSTEM ESSENTIALS
1. Organizations
- In order to have a functioning quality management system, the structure
and management laboratory must be organized so that quality policies can
be established and implemented
- There must be strong supporting organizational structure that is
management commitment and there must be a mechanisms of
implementation monitoring
2.Personnel
- Human resources - Continuing Education
- Orientation - Job description
- Professional development
- Job qualification
- Training
- Competency assessment
3. Equipment “Many kind of equipment are used
- Acquisition - Record in the laboratory that is important
to note. Each piece of equipment
- Instillation
must be functioning properly ,
- Calibration choosing the right equipment ,
- Troubleshooting installing is correctly , assuring that
equipment works properly and
- Validation having existing maintenance of all
- Maintenance part of equipment “
- Repair and service
“ The management of reagents and
supplies in the laboratory is often a
4. Purchasing and Inventory challenging task, however proper
management of purchasing and
- Vendor qualification inventory can produce cost saving in
addition to assurance of supplies and
- Supplies and reagents
reagents that is available when needed
- Critical services the procedures that a path of
management purchasing and inventory
- Contract review
are designed to assure that all reagents
- Inventory management and supplies are all good quality and
used and stored in a manner that
preserves integrity and reability “
Purchasing and Inventory
• Scenario:
Your laboratory is asked to gear up for a potential flu epidemic
-What purchasing and inventory factors do you need to consider in planning for this
process ?
-What problems might you encounter in planning and implementing?
“ Lets find the answer along the way of the lesson “ 

• Benefits of an Inventory Management Program

1. Supplies and reagents always available
2. Quality maintained
3. Minimize wastage stay within budget
• Inventory Management Challenges:
- Balance between stock availability and expiration dates.
- Life span of laboratory reagents varies:
1. RIA reagents: 3 to 8 weeks
2. API kits : 4 to 12 months
3. Anti sera: 1 to 4 years
4. Antibiotic disks: 2 to 3 years
5. Ready to use culture media: 1 to 2 months
6 . Dehydrated culture media : 3 – 5 years
• Key components for purchasing and inventory Management
• Establish a system to qualify and select vendors

- Define criteria for supplies and services to be purchased
- Use information from other laboratories
- Evaluate before purchase and after receipt
• Purchasing considerations :
• How to implement inventory control:

1. Assign responsibility
2. Analyze needs
3. Establish minimum stock needs
4. Develop forms and logs
5. Establish system for receiving , and storing
6. Maintain inventory system in all storage areas
• Analyze needs:
Conduct analysis of supply and reagent needs by:
1. Listing all test in laboratory
2. Identifying all supplies needed for each test
3. Using available information to estimate usage
• Quantification: is a process for calculating how much is required of any

particular item for a given period of time
• Quantification: When?
- As a part of annual health care planning
- When implementing a new health program
- In preparation for potential or newly identified epidemic
• Quantification : How?
1. Consumption-based method
2. Morbidity-based method
• Consumption-based method
- Based on the actual usage
- Must take into account:
1.health supplies actually used
2.wastage-expired or spoiled supplies
3. supplies out of stock for more than 15 days during any time of the year
• Morbidity-based method
Must take into account:
1. Population size
2. Disease incidence
3. Accuracy of morbidity data
4. Treatment guidelines
• Stock logbook
Includes:
Name and signature Stock balance
Date or receipt
Quantity Other information :
Date of expiry Shelf number
Minimum stick destination
5. Process Control
-Quality Control
-Sample Management ( specimen handling and collection)
-Method Validation
- Method Verification
PROCESS CONTROL
(SAMPLE MANAGEMENT)
SCENARIO 1: Laboratory has performed PCR for influenza virus patient
samples from Clinic A. Most of these results are negative. The medical staff
from clinical staff of influenza.
My question is what are you going to check? , what will you do?
Answer:
First, we have to investigate from where the problem exist in path of workflow
prior to actions.
PROCESS CONTROL
(SAMPLE MANAGEMENT)
“So lets start with sample management which includes sample collection and
handling “
“I JUST WANT TO EMPHASIZE THAT THE RESULT OF ANY LABORATORY
EXAMINATION IS ONLY AS GOOD AS THE SAMPLE RECEIVED OR COLLECT
IN THE LABORATORY”
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Good sample management directs the following :

1. Essential to accurate laboratory diagnosis
2. Influences laboratory efficiency
3. Influences therapeutic decisions
4. Directly affects patient care and outcomes
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Laboratory handbook: Policies and Practices
Components:
1. Labelling
2. Collection preservation
3. Information needed
4. Transport
5. Retention , storage, disposal
6. Assessing , processing, tracking
PROCESS CONTROL
(SAMPLE MANAGEMENT)
The Laboratory Handbook
- Contains information needed by those who collect samples
- Available to all sample collection areas
- Must be understood by all laboratory
- Reference in the quality manual
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Laboratory Handbook
Contents:
• Name and address of • Lists of tests that can • Expected turn around
laboratory be ordered times(TAT)
• Contact name and • Sample collection • How urgent requests
telephone number procedures are handled
• Hours of operation • Sample transport
procedures
PROCESS CONTROL
(SAMPLE MANAGEMENT)
The laboratory Responsibilities:

1. Provide sample collection information WHAT-WHEN-HOW
2. Provide appropriate containers and supplies
3. Assess all samples pre-examination
4. Define a good labeling system
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Patient ID
• Tests requested
• Time and date of sample collection
• Sources of sample, when appropriate
• Clinical data where indicated
• Contact information of requesting physician or authorized individual
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Collection requirements
1. Patient preparation
2. Patient identification
3. Type of sample required
4. Type of container needed
5. Labeling
6. Special handling
7. Safety precautions
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Labeling:
Each sample should be labeled with:
1.Patient name
2. Patient unique ID number
3. Test ordered
4. Time and date of collection
5. Collectors initials
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Sample labelling error example:
PROCESS CONTROL
(SAMPLE MANAGEMENT)
Outcomes of improper collection:
1. Delay in reporting test result
2. Unnecessary re-draws/re-test
3. Decrease customer satisfaction
4. Increase costs
5. Incorrect diagnostics/ treatment
6. Injury
7. death
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Pre-examination Steps
- Verify : completeness of test request, appropriateness of sample,
information on label
- Record in REGISTER LOG
- Enforce sample rejection criteria
Example: spilled urine sample a cause of rejection
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Actions for Rejected Samples:
1. Inform authorized person
2. Request another sample
3. Record rejected sample
4. Retain rejected sample based on present criteria
5. Extraordinary circumstances may require testing suboptimal samples
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample REGISTER LOG
A register should include:
1. Date and time of collection
2. Date and time of receipt
3. Sample type
4. Patient name
5. Demographics as required
6. Laboratory assigned identification
7. Test t0 be performed
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample Tracking –Manual

- Confirm receipt of samples, include date and time
- Label samples appropriately; keep with the test requisition until laboratory
ID is assigned
- Track aliquots-traceable to the original sample
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample tracking –computer
- Identification number - Name of Health care provider
- Patient information - Location of patient e.g ward , clinic ,
- Collection date and time outpatient
- Type of sample - Diagnostic test result
- Test to be performed - Time and date results are reported

Sample Storage – Written Policy
• Describe sample to be stored

• Determine retention time
• Determine location
• Describe proper conditions
• Establish method or organizing samples
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample retention
- Set policy for retention
- Monitor stored samples, including freeze/thaw cycles
- Maintain an organized, accessible system
- Establish a schedule to review all stored samples
- Establish tracking procedures
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample referral:
- Sample referred
- Date of referral
- Name and person referring test
• Monitor/track , and record :
- Turn around time
- Results delivery( from referral laboratory to requestor)
- Problems with referral
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample disposal:
-Set of policy for sample disposal
- Compliance with local and country regulations
- Disinfection procedures
PROCESS CONTROL
(SAMPLE MANAGEMENT)
• Sample transport:
- Maintain integrity of sample
1. Temperature
2. Preservations of sample
3. Special transport containers
4. time limitation
The product of the laboratory is

6. Information Management
information, primarily in the form of
- Confidentiality the test reporting information or
- Requisition carefully manage to assure accuracy
- Loss and Records and confidentiality as well as
- Reports accessibility to laboratory staffs . Into
the help of health care providers,
- Computerized laboratory
Information may be manage and
- Information system conveyed with either paper systems or
in computers
Good Example is a relationship

between documents and records and
7. Document and Records
information management documents
- Creation of records and documents which are needed in the laboratory to
- Revisions and Review inform how to do things or how to do
them well. Laboratory have many
- Control and Distribution documents records that must be
meticulously maintained accurate
and accessible
Documents and Records
• Documents vs Records:
Documents: Communicate information via policies, processes, and procedures
- need updating
Records: Capture information on worksheets, forms, labels, and charts
- permanent , do not change
• Hierarchy of documents:
1. Procedures
2. Processes
3. Policies
• Procedures: The “How to do it”

Standard operating procedures(SOP)
- Step by Step instructions for performing a single activity
- Job Aid: a shortened version of the SOP
does not replace the SOP
• Processes: - The How it happen”

- A set of interrelated or interacting activities that transform inputs into outputs
.”(ISO 9000 4. 3. 1)
Processes:
- Describe the steps involved to carry out quality policies
- Easily represented in flow charts
- Involve a series of steps, usually occurring over a period of time
• Policies: The “What to do”

“ a written statement of overall intentions and directions defined by those in the
organization and endorsed by management.” (CLSI HS1-A3)
Policies:
-tell “what to do” is a broad and general way
-include the organizational mission, goals, and purpose
-serve as the framework for the quality system
-should always be specified in the quality manual
• Why are documents important?

-essential guidelines for laboratory
- quality manual
- SOPs
-reference materials
-Required by formal laboratory standards
• Documents are the communications of the quality management system

Verbal instructions often are:
- not heard
-Misunderstood
-quickly forgotten
-difficult to follow
• Good documents are:

- Clear
- Concise
- User-friendly
- Explicit
- Accurate
- Up-to-date
8. Occurrence Management Occurrence is an error or event that

-Complaints should not happen in a system and
-Mistakes and Problems needs to detect to handle it properly to
-Documentation learn from mistakes and take actions so
-Root Cause analysis that it will not happen repeatedly.
- Immediate actions
-Corrective actions
-Preventive Actions
Occurrence Management
What is occurrence management?

- Dealing with laboratory errors
- A central part of continual improvement
- It is the process by which errors, or near error(also called near misses) are
identified and handled
What is the goal of Occurrence Management?

- To correct the errors in either testing or communication that results from an
event
- To change the process so that the error is unlikely to happen again
What is “occurrence”?
Any event that has a negative impact on an organization, which includes
personnel , product equipment or environment.
Scenario :
There was an important job in the laboratory that needs to be done and everybody was asked
to do it.
Everybody was sure SOMEBODY would do it
Anybody could have done it, but Nobody did it.
Somebody got angry about that because it was Everybody’s job. Everybody thought Anybody
could do it .
It ended that Everybody blamed Somebody when Nobody did what Anybody could have done
• What is the message of the story?

In reality As medical technologists we have an array of responsibilities to
perform…
In laboratory organization it is not healthy to blame somebody….
When you point your finger at someone , there are three fingers pointing back
at YOU
- What was the correct action from the scenario?

- Point at the system , Not at the Person
- Investigate and find the error
• Good Occurrence Management Program direct the following:

1. Essential for accurate laboratory diagnosis
2. Influences Therapeutic decisions
3. Directly affects patient care and outcomes
4. Influences laboratory efficiency
Common causes of errors

1. Individual responsibilities not clear
2. No written procedures
3. Written procedures not followed
4. Training not done or completed
5. Errors check not done
6. Tests kits not stored properly
7. QC , EQAS not prepared
Laboratory Errors Vs Mistakes

- Errors: Non- conforming results with “statistical meaning”. This category
includes all the “wrong” laboratory measures due to NON-HUMAN actions
- Mistakes: Non-conforming results with ”no statistical meaning”. This
category contains all the HUMAN errors e.g. mixing up samples.
Another classification or error and mistakes is based on the time and the stage they
appeared in laboratory practice.
1. The pre-analytical stage encompasses all the procedures which a take place
before the analysis of the patients sample(e.g. blood drawing , sample
transportation , centrifugation)
2. The analytical stage includes the analytical method
3. The post-analytical stage refers to transmission of data from analyzers to the LIS ,
validation of results that have been produced and posting of the results to
physician or patients.
• Pre-examination error
Example include:
1. Wrong sample collected
2. Sample mislabeled or unlabeled
3. Sample stored inappropriately before testing
4. Sample transported inappropriately
5. Reagents or test kits damaged by improper storage
• Examination error:
-established procedure not followed
-incorrect timing of the test
- Results reported when control results out of range
- Improper dilution and pipetting of sample or reagents
- Reagents stored inappropriately or used after expiration date
• Post –examination error

Example include:
-transcription error in reporting
-report illegible
-report sent to the wrong location
-report not sent
How to handle error?

Step 1: identification of the source and consequences of lab errors
Step 2: Investigation of Occurence
Step 3: Rectifying and Managing Occurrence
• Detecting source of error:
-Cause and effect diagram
• Investigation of error:
Investigation steps:
1. Information gathering
2. Through investigation
3. Root cause analysis
Root cause analysis:
Structured investigations that focus on identifying the underlying true causes
of occurences
- Every cause has deeper reason
- For each occurrence seek 5 levels of explanation , asking WHY , before being
satisfied as to the (root) cause
Example of Root Cause Analysis:
Rectifying and Managing Occurrence :

1. Preventive action
2. Remedial actions
3. Corrective actions

1. Preventive Actions: “See the potential event and plan to avoid it”
Preventive action – planned and organized evaluation of processes and
procedures to identify potential error points, so actions can be taken to
prevent the errors from ever occurring

2. Remedial actions: “Address he event and its consequences “
Remedial actions- fixing of any consequences that results from error.
(Example: erroneous result ----> immediate notify all persons concerned ---
----> provide correct results)
3. Corrective actions: “Learn from the event and avoid its accurence”
Corrective actions: addresses the cause of error. If the test was not done
correctly, resulting in an incorrect result, corrective actions sort out why the
test was not performed properly, and steps are taken so that the error does
not happen again.
Example: Malfunctioning Equipment -> Recalibrate , Repair
Intervening to reduce errors

- Weaker interventions
- Stronger interventions
- Weaker interventions
• Training
• Call for enhanced vigilance
• Double check
• Warning labels
• Memos
- Stronger interventions
• Physical plant change- laboratory facility design
• Major software enhacement
• Eliminate Steps
• Equipment standardization and personnel standardization
• Involvement by leadership in patient safety
• Occurrence Management form:
• Occurrence management form:

Step A: Fill –out the data completely
Step B: Select 1 error from your list and indicate in the form
Step C: Indicate the immediate action taken; Describe what happen and what was
done
Step D: Indicate why did it happen?
How did it happen?
What changes have been made to prevent recurrence ?
It is a tool in examining the laboratory
9. Laboratory Assessment performance and comparing it in standards
or bench marks of performance of other
-Proficiency Testing( NEQAS) laboratories. Assessment may be internal
-Inspections or performed within the laboratory using
its own staff or it may be external
-Accreditations
conducted by group of personnel outside
of laboratory; it could be an agency ( that is
independent). Laboratory quality
standards is an important part of the
assessment process serving as bench
marks for the laboratory .
10. Process Improvement The primary goal in a laboratory

main system is to continuous
-Opportunities for Improvement
improvement of the laboratory
-Stakeholder feedback processes and this must be done in
-Problem Resolution Risk Assessment systematic manner, there's a
number of number if tools that are
-Preventive Actions useful for process improvement.
-Corrective Actions Some of this tolls are preventive
action reports.
11. Customer Service

-Customer Group identification
-Customer Needs
-Customer Feedback
• Facility and safety

- Safe working environment
- Transport management
- Security
- Containment
- Waste management
- Laboratory safety
- Ergonomics
Standards Organizations
• The path of quality is assessment majoring performance against standards
or bench marks .
Examples:
GP26-A3 (CLSI)
ISO 9000:2000 and
Coordinate activities to direct and control organization with regards to quality
- ISO 9000 documents provide guidelines of quality in manufacturing a service
industries and can be broadly apply to many other kind of organizations .
ISO ( International Organization for
Standardization)
• Guidelines for quality manufacturing and service industries

• Broad capability used by many kind of organizations
• Uses consensus process in developing standards
ISO- Documents for Laboratory
• ISO 9001:2000 Quality Management System Requirements

- model for QA in design, development production, instillation and
servicing
• ISO/ IEC 17025:2005 General Requirements for the competence of testing
and calibration of laboratories
• ISO 15189:2012 Quality Management in Clinical laboratory
CLSI (CLINICAL AND LABORATORY
STANDARDS INSTITUTE)
• Formerly known as NCCLS

• Standards, guidelines and best practices for quality in medical laboratory
testing
• Detailed and applies specifically to medical laboratories
• Uses consensus process in developing standards
CLSI -DOCUMENTS FOR LABORATORIES
• HS1-A2 a quality management system model for health care

- describes quality system model 12 essentials align to ISO 15189 and parallels to ISO 9000
• GP26-A3 Application of Quality Management System Model for Laboratory Services
- Describes Laboratory application of quality system model relates the path of work flow to
the quality system essentials
1. assists laboratory in improving processes
2. relates to HS1-A2 and ISO 15189
LABORATORY
PLANNING

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Principles and Concepts of

“MANAGEMENT IS A PROCESS OF PLANNING, ORGANIZING, LEADING AND

IS A PROCESS OF PLANNING, ORGANIZING , DIRECTING, AND

1. MANAGEMENT IS A COMBINATION OF ART AND SCIENCE

1. FOR EFFECTIVE UTILIZATION OF RESOURCES

“ MANAGEMENT MUST FOLLOW THE ACTIVITIES OF FUNCTIONS OF

- HAVING A VISION CREATED AND IMPLEMENTED BY INDIVIDUALS

• MANAGERIAL PERFORMANCE – MEASURES HOW EFFICIENT AND

• LEADERSHIP: THE PROCESS THOUGH WHICH LEADERS INFLUENCE THE

• LEADERSHIP QUALITIES CAN BE EITHER BE INNATE OR CAN ALSO BE

PLANS AND BUGETS SHOWS DIRECTION

ORGANIZING AND ALLOCATES THE RESOURCES ALIGNS AND INFLUENCES

CONTROLS AND SOLVE PROBLEMS MOTIVATES AND INSPIRES

• FAIRNESS- TREATING PEOPLE FAIRLY AND GIVING EQUAL

LEADERSHIP- IS THE ABILITY TO INFLUENCE A GROUP TOWARDS THE

• REFERS TO THE QUALITIES OF AN INDIVIDUAL

5. EMPATHY 10. SOCIAL SKILLS

• IT SAYS THAT LEADERSHIP IS SHOWN BY A PERSON ACT MORE THAN BY TRAIT

• HERE THE ATTENTION IS GIVEN TO THE SITUATION IN WHICH THE

1.AUTOCRATIC STYLE( AUTORITHARIAN)

“ THIS IS MY DECISION AND YOU MUST FOLLOW IT”

- AUTORITARIAN : USUALLY DO NOT LISTEN TO HIS TEAM MATES

“ LETS WORK TOGETHER TO SOLVE THIS “

- EVERYBODY WILL PARTICIPATE AND THEY WILL COME UP WITH A

“ I DON’T WANT TO BE INVOLVED”

- WHAT ABLE THEY DECIDE , THEY WILL ABLE TO DO IT

1. RELATION/ PEOPLE ORIENTED- FOCUS ON ORGANIZING , SUPPLEMENT AND

PLANNING- DEALS WITH SELECTING THE MISSION AND OBJECTIVES AND

“ PLANNING IS A PROCESS WHICH BEGINS WITH OBJECTIVES, AND DEFINES

• IT’S CONTRIBUTION TO PURPOSE AND OBJECTIVES

• BE AWARE OF THE OPPORTUNITIES

• STRATEGIC PLANNING- IS A PROCESS OF DECIDING ON THE OBJECTIVES

ORGANIZING STEMS FROM THE WORD “ORGANISMS” SIMPLE TO CREATE

THE WORD ORGANIZING REFERS TO STRUCTURE OR NETWORK OF

1. ESTABLISHING THE OBJECTIVES OF THE ORGANIZATION

• FORMAL ORGANIZATION REFERS TO THE DELIBERATE STRUCTURE OF

• INFORMAL ORGANIZATION MEANS A NETWORK OF INTERPERSONAL

• ORIGINATES FROM WITHIN THE FORMAL ORGANIZATION AS A RESULT OF

2. REPORTS- USUALLY CONTAIN DATA AND INFORMATION ABOUT THE

ORGANIZATIONAL STRUCTURES IS THE SYSTEMATIC ARRANGEMENT OF

FORMS OF ORGANIZATIONAL STRUCTURE:

LINE TYPE: THERE IS DIRECT FLOW OF AUTHORITY FROM THE TOP

• SMALL SCALE ORGANIZATION

• RADICALLY DIFFERENT FROM THE LINE TYPE AND EVOLVED AS AN

• THIS STRUCTURE IS BASED ON THE CONCEPT OF FUCNTIONAL FOREMANSHIP

THE LINE AND STAFF TYPE OF ORGANIZATION IS THE LINE COMBINATION

• THE LINE AND STAFF TYPE OFFICERS A CLEAR CUT DIVISIONS OF

• IS A MODIFICATION OVER THE BASELINE STRUCTURE

• IT IS MOST SUITABLE FOR MEDIUM AND LARGE ORGANIZATIONS

• IT IS A TEMPORARY STRUCTURE DESIGNED TO ACCOMPLISH A SPECIFIC TASK

• SUITABLE FOR MEDIUM AND LARGE SCALE PROJECT

• IT IS A HYBRID ORGANIZATION STRUCTURE

• SUITABLE FOR COMPLEX TASK

• IT IS FORM OF STAFF ORGANIZATION FORMED FOR GIVING SPECIALIZED

• THE INTERNAL FACTORS CONCERN STAFFING MANAGERIAL POSITIONS

• DIRECTING IS THE PROCESS BY WHICH A MANAGER COMMUNICATES

HUMAN BEING THAT COMPOSE AN ORGANIZATION FUNCTION THROUGH

“POWER IS DEFINED AS THE CAPACITY TO INFLUENCE THE ACTION OF AN

CONTROLLING AS A MANAGEMENT TOOL IS THE FUNCTION OF EVERY

• CONTROL IS THE PROCESS OF ASSURING MANAGEMENT THAT

1.PHYSICAL STANDARDS: ARE BASICALLY NON- MONETARY

5. REVENUE STANDARDS: THESE STEM FROM MONETARY VALUES TO