ORGANIZING the primary mechanism that managers use to

-the process of classifying and categorizing implement the plans.

Five Main Steps of the Organizing Process METHOD OF ORGANIZING THE PHARMACY
STEP 1 Reflect on plans and objectives 1. Defining the goals of the pharmacy.
STEP 2 Establish major tasks 2. Identifying and defining each task to be
STEP 3 Divide major tasks into subtasks completed.
STEP 4 Allocate resources and directives for 3. Grouping related tasks into a specific job
subtasks that can be assigned to an employee or a team
STEP 5 Evaluate results of operationalizing the of employees.
organizing strategy 4. Grouping employees into job units that are
related in some manner.
Step 1. The pharmacy manager must properly 5. Assigning a manager to each unit, providing
set up the plans of the organization to ensure him or her with necessary authority and
the efficiency of the organizing process. responsibility to ensure the completion of the
Steps 2 and 3. Focus on the tasks to be tasks within the unit.
performed within the management system. The 6. Arranging these units relative to one another
manager delegates major tasks to individuals both horizontally and vertically and establish
and groups or units of employees within the who reports to whom.
pharmacy. These tasks must be subdivided 7. Establishing a control system for monitoring
into subtasks. the progress and achievements of each unit.
Step 4. Assigning the previously established
tasks to an individual or a group of individuals. THE NATURE OF ORGANIZATION
Step 5. Evaluation of the results of Organization-refers to the process of
implementing the organizing strategy. The structuring activities, procedures, and people
pharmacy manager receives feedback on how within the business.
effective the strategy has been.
PRINCIPLES OF ORGANIZATIONAL
FUNDAMENTALS OF ORGANIZING STRUCTURE
1. The structure must reflect and plans which Organization structure-the division of
act as the base of the organization’s activities. executives, departments, and group of workers
2. The structure must reflect authority given to in terms of their activities or tasks.
top and middle management.
3. The structure should reflect the external Three major aspects:
environment to allow members of the group to Differentiation (a.k.a complexity)
contribute ideas and solutions and help people -degree to which units are dissimilar
achieve objectives efficiently and effectively. Formalization
4. The organization must consider employees’ -degree to which jobs in the organization are
and customers’ limitations, customs, and standardized
traditions. Centralization
-refers to the concentration of decision-making
IMPORTANCE OF ORGANIZING power at a single point in the organization
-Organizing is important in the overall
management of an organization because it is
1. Horizontal differentiation comprehensive skill sets in the field and they
-describes the differences among workers or may eventually find their jobs monotonous
units in an organization 7. Parity of Authority and Responsibility
2. Vertical differentiation -responsibility for decisions cannot be passed
-focuses on the differences in hierarchical on while the authority to make them can be
positions shared and/or given to others
- involves “chain of command” which is the 8. Unity of command
number of levels between the top management -refers to the idea that an individual employee
or owner of the organization and the rest of the must report to only one supervisor or manager
staff -decentralization often leads to employees
Organizational chart- used to depict the having more than one superior to report to
relationships and hierarchy of authority in an Matrix organization – integrates the activities of
organization. different specialists while maintaining
3. Spatial differentiation specialized organizational departments
-involves location, specifically the sites of an 9. Span of control
organization’s units, whether they are in one -refers to the number of employees a manager
place or spread across several areas can effectively control
Coordination- key among these units especially 10. Departmentalization
as an organization grows and differentiates -refers to the categorization of individuals
4. Formalization according to the specific tasks they must
-emphasizes the maintenance of the structure perform
Maintenance involves:
- Rules – degree of organizational control ORGANIZATIONAL CHART
of employee behavior -shows the composition of an entire business
- Procedural specifications – defined for each department or for each section of a
techniques that organizational members business
must follow when dealing with specific -presents the functions of the top management
situations and the subordinate units in successively
- Technical competence – the universal descending positions, indication a hierarchical
standards as defined by the structure
organization, and the extent of its use in -in pyramid shape
selecting personnel and advancing Purposes:
processes -to assist in viewing the firm’s whole structure
- Impersonality – treatment of both -to help management in dividing the different
members of the organization and duties or functions in the business
individuals outside the organization -to show the grouping of departments in order
regardless of their individual qualities to easily direct and control activities
5. Centralization -to sort the responsibilities of the positions so
-refers to the concentration of decision-making there will be no wasted time or effort
power at a single point in the organization
6. Division of Labor FORMALIZING THE ORGANIZATIONAL
-this can be observed in pharmacies where STRUCTURE
pharmacists are assigned with specific a. The management must identify a relatively
functions such as dispensing or caring for standard organizational design that best fits the
patients pharmacy’s needs.
-disadvantage of this it that employees b. The design must be constructed to coincide
assigned with singular tasks will not develop with the preferences of the owner the horpital’s
administrator or the board of trustees.
FORMAL ORGANIZATIONAL STRUCTURES a. Organization by Time
1. Line Organization - One of the simplest methods or organizing a
-refers to the straight and direct line of group of employees is based on tgeir working
responsibility and control from the top hours.
management b. Organization by Number
Advanatages: - This can be applied when a group of
- The centralization of authority regarding employees with similar skill set or
concerns is small, and the chief specialization is too large to be effectively
executive and his principal assistants supervised by one person.
are capable of handling these concerns. c. Organization by Function
Problems are solved promptly, with a - This structure is applied where there is
minimum of red tape. considerable diversity in jobs and skills
- The direct line of authority makes it easy required to accomplish a task satisfactorily.
to define responsibility, maintain single Professional functions – prescription
accountability, and achieve better dispensing, patient consultation, patient drug
control. record system, home health aides, and
- Overhead expenses are likely to professional relations
decrease or remain low because of the Merchandising functions – purchasing,
simple functionalization. inventory control, display advertising and
Disadvantages: personal selling, except prescriptions and
- The growth of an organization can professional goods
increase the workload and Financial functions – general financing,
responsibilities of each department budgeting accounting, operational analysis and
head. control
- Instructions have to follow the flow of the Personnel functions – recruiting, selecting,
chain of command because they are not terminating, training, employee performance
directly given to the assigned worker. evaluation, wage determination, and other
- Line executives are less likely to find employee relations including fringe benefits
themselves in a position to acquire
expert knowledge in a particular field Results of Good Organization
and gain relevant experiences herein. - Well-established responsibilities and the
2. Line-and-Staff Organization prevention of “buck-passing”
- To compensate for the lack of needed - Easier communication between and
specialists within the line organization among employees, managers, and staff.
structure, the line and staff structure was - Jurisdictional disputes between
developed. individuals are eliminated.
- Line and staff structure employs the - Development of executive ability.
assistance of specialists. - Effective measurement of a person’s
- This structure still makes use of the features performance against his or her charges
of the line organizational structure but is and responsibilities.
assisted by technical specialists who have - Equitable distribution of work, functions,
expertise in some of the finer points of and/or personnel supervision
business. - Expansion and contraction are permitted
3. Informal Organization Structure without seriously disorganizing the
- Just like formal ones, they are geared toward structure.
strengthening the cohesiveness within the - “Dead-end” jobs are pointed out.
pharmacy and increasing the chances of goal
achievement for all.
 - Business can move toward the direction
of the “ideal” organization in times of
change.
- Closer and better cooperation and
higher morale among employees,
managers, and staff.
- Clear and definite delineation of
avenues of promotion.
- Preventing duplication of work.
- Adequate control of growth without
overworking top executives.
- Wage and salary administration is aided
through forced job analysis and
description.

DELEGATION
-refers to the process of assigning
responsibility and authority to lower-level
employees
Elements of Delegation
1. Responsibility
- task or duty designated to a particular position
2. Authority
- power of the right to give orders; the sum of
power and rights entrusted to an individual to
ensure the performance and accomplishment
of tasks
3. Accountability
- condition of being held responsible for the
task delegated; whether the task is being
performed properly or not

TYPES OF AUTHORITY
a. Traditional – the right to give orders, assign
tasks and jobs, and expect and exact
obedience from subordinates
b. Behaviorist/Social scientist- the belief that
authority and power is given to the superior by
the subordinate
c. Functional – assumes authority based on
expertise and experience of a person, and by
one’s specialization