MANAGEMENT IN

PHARMACY
Prepared by:
MA. SOPHIA P. ANDRES, RPh
THE MEANING AND
CONCEPT OF
MANAGEMENT
PART 1
Definition of Terms
◦ Management:
◦ Latin word "manuagere", which is translated as "to work with the hands“
◦ The fundamental Oxford English Dictionary gives the following
interpretations of the term "management":
◦ the method and manner of communication with people
◦ the power and the art of administration
◦ a special kind of skill (management skills)
◦ administrative unit (authority)
◦ A complex of principles, methods, means and forms of administration for
business organizations to improve their efficiency and increase profits in
market conditions
Definition of Terms
◦ Business:
◦ Economic activity giving a profit
◦ Manager:
◦ Head (primarily a hired manager), who works in the economic, industrial and market area
having the professional knowledge in organizing and managing production
◦ Organizes specific activities of his subordinate employees and at the same time he
executes a lot of administrative functions
◦ Executes interpersonal, informational roles, as well as, the roles associated with the
management decisions makingBusiness
◦ Businessman:
◦ A leader, possessing imitativeness, capacity for a risk, responsibility and self-sacrifice in
behalf of business, by orientation on efficiency and quality, purposefulness, aspiring to
being informed
◦ Entrepreneur:
◦ Owner or a manager of a business enterprise who makes money through risk and initiative
Historical Persons
◦ Joseph Wharton
◦ Developed the first systematic course of
management for teaching
◦ Frederick Taylor:
◦ American engineer that published the
“Principles of Scientific Management” that
gave the beginning of the recognition of
management science
Principles of Scientific Management
1.The development of a true science of management so that
the best method for performing each task could be
determined.
2.The Scientific selection of workers so that each workers
would be given responsibility for the task for which he or
she was best suited.
3.The scientific education and development of workers.
4.Intimate friendly cooperation between management and
labor.
Historical Persons
◦ Henri Fayol: ◦ Controlling
◦ French engineer
◦ Fayolism: ◦ 6 types of Operations:
◦ One of the first comprehensive ◦ Technical Operations
statements of a general theory of (production, manufacturing,
management transformation)
◦ One of the most influential ◦ Commercial Operations
contributors to modern concepts of (purchases, sales, exchanges)
management ◦ Financial Operations (seek for
◦ Five primary functions of capital and finance management)
management: ◦ Security Operations (protection
◦ Planning of goods and people)
◦ Organizing ◦ Accounting Operations (balance,
P&L, cost control, statistics, etc)
◦ Commanding
◦ Administrative' Operations
◦ Coordinating (Management)
Historical Persons
◦ 14 Principles of Administration:
1. Division of work: Reduces the span of attention or effort for any one
person or group. Develops practice or routine and familiarity.
2. Authority: "The right to give orders. Should not be considered without
reference to responsibility."
3. Discipline: "Outward marks of respect in accordance with formal or
informal agreements between a firm and its employees."
4. Unity of command: "One man one superior!"
5. Unity of direction: "One head and One plan for a group of activities with
the same objective."
6. Subordination of Individual Interests to the Common Interest: "The
interests of one individual or group should not prevail over the general or
common good."
7. Remuneration of personnel: "Pay should be fair to both the worker as
well as the organization."
Historical Persons
8. Centralization: "Is always present to a greater or lesser extent, depending on
the size of the company and the quality of its managers."
9. Scalar chain: "The line of authority from top to bottom of the organization."
10.Order: "A place for everything and everything in its right place; ie. The right
man in the right place."
11.Equity: "A combination of kindness and justice towards employees."
12.Stability of personnel tenure: "Employees need to be given time to settle in
to their jobs, even though this may be a lengthy period in the case of some
managers."
13.Initiative: "Within the limits of authority and discipline, all levels of staff
should be encouraged to show initiative."
14.Esprit de corps (Union is strength): "Harmony is a great strength to an
organization; teamwork should be encouraged."
MANAGEMENT IN
PHARMACY
PART 2
SPECIFIC FEATURES
◦ Managing the search
◦ Development and creation
◦ Research
◦ Production
◦ Standardization
◦ Storage and sale of drugs, biological supplements (para-,
nutraceuticals, eubiotics), medical products, baby food,
perfumes, cosmetics, personal diagnostic devices, health
products, hygiene tools, mineral water, etc.
PHARMACEUTICAL COMPANY
◦Methods of trading management, coupled
with the knowledge of organizational and
legal issues of pharmacies, technology,
medicine, pharmaceutical analysis and
control, pharmacology, pharmacotherapy,
pharmaceutical care, pharmaceutical ethics
and deontology, and psychology are
widely used.
WORK OF A PHARMACIST
◦The work of a pharmacist requires
professional knowledge, creativity, and
its effectiveness is largely determined
by personal characteristics, the level of
advisory services, knowledge of the
psychology of sales.
LEVELS OF MANAGEMENT
LEVELS OF MANAGEMENT
◦ Managers at the Technical Level:
◦ Mainly engaged in daily operations and activities necessary to achieve the
main objectives of the organization
◦ Managers of the Administrative Level:
◦ Coordinate all activities of various organization departments
◦ Middle managers are mostly a buffer between the top and lower levels
◦ They prepare the information for decisions making by top management, and
pass these decisions, usually after their transformation into a technological
convenient form, in the form of specific assignments to lower managers
◦ The main work of middle managers is communication with managers of the
lower level, it comprises about 80% of the time
◦ Leaders of the Institutional Level:
◦ Employed in development of long-term plans, formulation of objectives,
management relationships between the organization and the external environment
MANAGEMENTS OF PHARMACY
SYSTEM
◦ National Pharmacy System:
◦ Based on the pharmacy public policy, coordination, monitoring
and supervision of the observance of all the pharmaceutical
organizations as economic entities, as well as regulatory and local
authorities, existing laws and regulations
◦ The means of the national regulatory impact on the activity of
economic entities in the pharmaceutical industry are public order,
licensing, patenting, quotas, certification and standardization, the
use of standards and limits, price controls and tariffs, tax,
subsidies, compensation
MANAGEMENTS OF PHARMACY
SYSTEM
◦ Territorial Management System:
◦ Carried out in different regions by the structures of different
types:
◦ Pharmaceutical divisions at the state regional administration board or the
departments of Public health
◦ Regional municipal companies
◦ Public companies
◦ Regional industrial associations
◦ Holding companies
◦ Corporations
MANAGEMENTS OF PHARMACY
SYSTEM
◦ Corporate Management:
◦ A broad term used to describe management positions for pharmacists who
work in a corporate environment
◦ This type of role can be found in all areas of pharmacy practice including,
but not limited to, chain community pharmacy organizations, health systems,
wholesale organizations, pharmacy benefits management, and the
pharmaceutical industry
◦ Positions are found in functional areas, such as store or site operations
supervision, regulatory affairs, clinical support, human resources,
information technology, merchandising, and marketing
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Organization:
◦ Group of people, their activity is consciously coordinated for
achievement of the common purpose
◦ According to Kenneth Killen:
◦ “Organization is a group of people, working together at the head with a
leader with the purpose of fulfilling the definite plans.”
◦ Organization is a complex of materials, machines, technical and
scientific facilities, as well as personnel oriented to decision of a
definite task as a result of continuous co-operation and integrated
in the single social system.
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Closed systems are systems, which do not interact with their
external environment, i.e. they are practically self-contained.
◦ Open systems are systems, which rely on the interaction with their
environment. Biological systems and social systems are examples
of open systems
◦ Characteristics:
◦ Resources (material – means and objects of production, financial, labor,
technological, informative)
◦ Dependence on the external and internal environment
◦ Necessity of management
◦ Presence of structural subdivisions
◦ Division of labor
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ INTERNAL COMPONENTS OF ORGANIZATION
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Purpose:
◦ Exact final condition or a desired result that the group tries to achieve working
together
◦ Structure:
◦ A logical interrelation of management levels and functional areas built in such form,
which allows to achieve the organization’s purposes most effectively
◦ Major Requirements:
◦ Optimality:
◦ Structure is optimal if between the management links at all levels the rational relations at the
least number of stages of management are established
◦ Manageability:
◦ Presence of the least of links and levels of management providing the timely transfer of
decisions from the leaders of the higher level to the executives
◦ Dynamism (flexibility):
◦ Ability to change according to the changes of the external environment
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Presence of feedback:
◦ Ability to perform the decision or tasks and to give the
information about this to the higher levels of management
◦ Managers of all management levels:
◦ Should be really capable and actively influence on
achievement of the organization’s purposes
◦ Profitability:
◦ Providing of the appropriate effect from management with
minimal expenses for the administrative personnel
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Task:
◦ Work, series of works or a part of the work, which must be executed by the
previously set way in the terms discussed beforehand
◦ Technology:
◦ It is the means of transformation of inputs (people, information or material) into
outputs (the products and services)
◦ Technology is a combination of qualified skills, equipment, infrastructure,
instruments and the appropriate technical knowledge required for performing of
the desired transformations in materials, information or people.
◦ Staff (People, Personnel):
◦ Inside the organization people are determinant between tasks and the chosen
technology
◦ No technology can be useful and no tasks can be executed without people
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Most Significant Human Features:
◦ Abilities:
◦ Individual qualities, which are inherent to each person
◦ Organizations always try to use the abilities for decision of the problem of what work the
individual will execute and what office he will work in
◦ Gift:
◦ A potential of а person in respect of execution of some type of work
◦ Arising from combinations of both the innate quality and the gained experience, gifts
become a talent in some area
◦ Needs:
◦ Internal condition of psychological or physiological sensation of insufficiency of
anything
◦ Basic needs are physiological (needs in food, drinks, heat), as well as psychological
needs of involvement, be-longing to the society or a group of people
◦ Many people have needs of power and influence
ORGANIZATIONS OF THE
PHARMACEUTICAL SYSTEM
◦ Expectations:
◦ Based on the past experience and estimation of the current situation; people form
expectations comparatively with results of their behavior
◦ Perception:
◦ An intellectual realization of stimuli got from sensations
◦ Very important because it defines exactly what “reality” is for a definite individual
◦ Attitude (standpoint):
◦ Forms our subjective perception of the environment and hereunder influences
upon behavior
◦ Values:
◦ Faiths, the general beliefs in what is good and what is bad or what is important or
unimportant in life
◦ Gained by means of training in school, by education
MANAGER
◦ Organize and plan production and resale’s of products
◦ Take correct administrative decisions
◦ Conduct business negotiations
◦ Select and train employees
◦ Manage the staff at the level of modern requirements
◦ Induce workers to creative activity, rationalization,
invention, note and estimate every achievement of a
subordinate
◦ Be maximum ally objective
◦ Find the way out of the conflict situations, etc.
PHARMACEUTICAL MANAGER
◦ A manager or head of a pharmacy as a leader organizes work in
providing of the population and medical preventive institutions
with medicines, carries out management of sales, financial and
administrative activity.
◦ Functions:
◦ Licensing of the activity of a pharmacy and control of the observance of licensed
conditions
◦ Business contacts with public and supervisory bodies
◦ Providing of the proper organization of all trade-productive and economic
operations in a pharmacy
◦ Control of the presence of the drug assortment, the observance of rules of for
dispensing
◦ Organization of providing of a pharmacy with medicines
◦ Organization of the quality control of medicines
PHARMACEUTICAL MANAGER
◦Control of the observance of the sanitary mode,
rules of storage of medicines in a pharmacy and
medical institutions
◦Recruiting and discharge of workers, making
contracts about material responsibility, approval
of the schedule of work
◦Selection, placing, education and increase of
business qualification of the personnel
◦Introduction of progressive forms of work
PHARMACEUTICAL MANAGER
◦Organization of informative work
◦Organization of sanitary work among the population
◦Providing of implementation of all economic and
financial operations
◦Organization of correct account and accounting,
planning of the pharmacy activity
◦Making of administrative decisions on organizational
and productive questions, control of their
implementation, etc.
PHARMACEUTICAL MANAGER
◦ Drugstore Deputy Manager’s Functions:
◦ Marketing research
◦ Solution of marketing tasks of a pharmacy
◦ Determination of needs in medicines and the optimal assortment
◦ Pricing
◦ Control of the financial discipline
◦ Control of medicines storage
◦ Reception of goods
◦ Operative communication with suppliers
◦ Sale of medicines to hospitals and retail networks
◦ Work with the control and analytical laboratory, etc.
REFERENCES
◦ Tootelian DH. Wage and benefit programs: Meshing employers’ and
employees’ needs. California Pharmacist, November, 1989: 24–25.
◦ Risk Management Association. Annual Statement Studies, 2010–2011,
Philadelphia, PA: RMA, 2011.
◦ Smith A. The Wealth Of Nations, New York: Modern Library, 1917: 250.
◦ The House of Commons Health Committee. The Influence of the
Pharmaceutical Industry, 4th report 2004–5, Vol. 1 (
www.publications.parliament.uk/pa/cm200405/cmselect/cmhealth/42/42.pdf).
◦ Irish Pharmaceutical Healthcare Association. Code of Marketing Practice for
the Pharmaceutical Industry, 6th edn, December 2005 (
www.ipha.ie/htm/info/download/Publications/IPHA%20Code%206th%20Editi
on%20–%20Final%20Sept%2006.pdf
).