INTRODUCTION TO Pharmacy administration management And Leadership

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Lecturer: Ms. Saffia A. Abu-Shendi – January 08, 2023 [TRANS] CHAPTER 4: HUMAN RESOURCE MANAGEMENT IN PHARMACY o

OUTLINE I II III IV V VI VII

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The Staffing Process Recruitment in the Pharmacy Workforce Selection in the Pharmacy Workforce Employee Orientation Employee Training and Development Employee Compensation and Benefit Programs Types of Employee

THE STAFFING PROCESS Staffing is a process of acquiring, deploying, and retaining workforce of sufficient quantity and quality, to create positive impacts on the organization's effectiveness Comprises the recruitment processes leading to the employment of the staff. done by the HUMAN RESOURCE. Planning to identify what the organization requires in terms of the number of employees needed and their attributes (KSA) to effectively meet job requirements, selection techniques and methods of assessment to identify the most suitable candidates for a particular job.

HUMAN RESOURCE MANAGEMENT defined as the process of achieving organizational objectives through the management of people. o Tasks includes recruiting, hiring, training, developing, and firing employees. o Problems that may arise: ▪ Pharmacists often are poorly managed and led ▪ A manager may contribute to medication errors by emphasizing quantity of work over quality of work. ▪ Poorly managed pharmacists - poor dispensing habits, provide inadequate supervision of technicians, or maintain incomplete medical documentation. ▪ Poorly managed technicians - bad work habits or do not communicate with pharmacists.

Competitive wages must be paid to attract and retain competent personnel. 4. Fringe benefits. o Health insurance, discounts on merchandise, pension plans, and other benefits can play a major role in staffing. 5. Vacations. o How long will vacations be? When can they be taken? While it is important for employees to have a vacation time, such scheduling cannot be allowed to disrupt the operation of the business. 6. Time off. o To what extent will employee be allowed time off for personal needs, emergencies, holiday, birthdays, etc.? These are important but can disrupt operations. 7. Training o Each employee should be given adequate training for the job. 8. Grievances o Conflicts with employees will occur. o The best course of action is to plan for them and establish a procedure for handling grievances in an expeditious manner. 9. Promotion. o A major consideration in the staffing process is whether higher level positions can be filled from within the pharmacy. o Promoting an insider as opposed to hiring an outsider is a sensitive matter, and one that affects the pharmacy's ability to retain good employees. 10. Personnel review. o Will there be a review of employee performance? What factors will be included in such a review? How will the reviews be used? 11.Termination. o Clear written policies must be developed to make the termination as clear as possible from both an operational and legal standpoint. •

RECRUITMENT IN THE PHARMACY WORKFORCE

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PERSONAL POLICIES Establishing employment policies is a critical importance to the staffing process By having these, both management and prospective employees will understand what employment with the pharmacy means.

1. Licensing and registration. o Pharmacist, of course must be licensed and adhere to requirements for continuing education. 2. Hours. o A major issue is the number of hours per week, the number of days per week, evening and holiday work, and the time and methods of payment for both regular and overtime work. 3. Compensation. o The bulk of a person's earnings come from a base salary or wage and incentives like bonuses.

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JIMENEZ | BS PHARMACY

Recruitment. Initial attraction and screening of the supply of prospective human resources available to fill a position. Its purpose is to narrow a large field of prospective employees to relatively small group of individuals from which someone eventually will be hired.

RECRUITING APPLICANTS Process of attracting job candidates with the right characteristics and skills to fit job openings. The preferred recruiting method is to begin with a large number of possible job candidates and then give serious considerations to a much smaller number. Recruitment activities start with thorough understanding of the position to be filled so the broad range of potential employees can be narrowed intelligently. Steps in Recruitment: o STEP 1 - Job Analysis, Job Specification, and Job Descriptions o STEP 2 - Requisition of New Employee o STEP 3 - Actual Recruitment of Applicants 1

TRANS: Introduction to Pharmacy Administration Management and Leadership

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The focus is on past performance and future potential, and the objective is to keep management up to date about the possibilities for filling a position from within. 2. External Sources/External Recruiting ▪ Advertising. Advertising a position is open in one way of reaching the full spectrum of possible applicants. ▪ The extent and placement of the advertisement depends on the type of person desired. ▪ While most people tend to think of the local newspaper, this is only one alternative and is primarily suited for less skilled labor. ▪ Advertising in professional journals and other periodicals can be an effective method of recruiting staff pharmacist and pharmacy managers. ▪ Drop-ins. A help wanted sign in a pharmacy's window is a specialized form of advertising ▪ Public employment agencies ▪ Private employment agencies ▪ School placement ▪ Walk-in. People who show up in the forum without invitation ▪ Write-in. People who write unsolicited job seeking letters ▪ On-line recruiting. Major source of recruiting job candidates from a lot of websites.

STEP 1: JOB ANALYSIS, JOB SPECIFICATION, AND JOB DESCRIPTIONS • Job analysis Before a manager begins to recruit and select employees, he should perform certain analyses and describe the jobs or functions for his pharmacy. o is aimed at determining a job description (the activities job entails) • Job Specification o Emphasizes personal qualities o It provides the basis for selecting the right employees for each position in the pharmacy o (The characteristics of the individual who should be hired for the job) o Specifically, it answers the following questions: 1. What qualification are needed for this job? 2. Are any skills involved? 3. Is any experience needed? 4. What personal characteristics, if any, are required mental, physical, or emotional? • Job Description o Emphasizes the work elements to be performed o It is the statement that identifies what the job consists of and who are the supervisors to whom they are accounted for. o Specifically, it answers the following questions: 1. What is the employee to do? 2. How much authority and responsibility are included? 3. Where does this job fit within the organizational structure?

Selection is a process of choosing which people would best fill specific jobs Management must have a procedure for screening applicants - a means of sorting out the qualified from the unqualified. An established procedure ensures that all relevant questions are asked, and information obtained. It also ensures that the employer will not ask questions' that are discriminatory and thereby put the pharmacy at risk for lawsuit.

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STEP 2: REQUISITION OF NEW EMPLOYEE •

SELECTION IN THE PHARMACY WORKFORCE

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Strategic Human Resource Planning o An essential consideration in staffing o A process of anticipating and providing for the movement of the people into, within and out of an organization to support the firm's business strategy. o Main goal: To have the right number and right kind of people at the right time. o 4 Steps of Strategic Human Resource Planning 1. Planning for future needs - a human resource planner estimates how many people and with what abilities, the firm will need to operate in the foreseeable future. 2. Planning for future turnover - a planner predicts how many current employees are likely to remain in the organization. The difference between this number and the number of employees needed leads to the next steps. 3. Planning for recruitment, selection, and layoffs the organization must engage in recruitment, employee selection or layoffs to attain the number required. 4. Planning for training and development. - an organization always needs experience and competent workers. - this step involves planning and providing training and development programs that ensure the continued supply of people of the right skills.

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Table 1. Steps in the Selection Process PROCEDURES

PURPOSES

Completed job applications

Indicates applicant’s career objective

Initial screening

Provides a quick evaluation on the applicant.

Testing

Measures applicant’s job, skills and ability to learn on the job

Background investigation

Checks truthfulness of applicant’s resume or application form

STEP 3: ACTUAL RECRUITMENT OF APPLICANT •

Common Sources of Potential Employees 1. Internal Sources/Internal Recruiting ▪ Most internal movements are promotions. ▪ Many organizations post or circulate announcements of anticipated job openings among employees before they attempt to recruit applicant externally. ▪ Human resource inventory

JIMENEZ | BS PHARMACY

ACTIONS AND TRENDS Requests only information that predicts success in the job Asks questions on experience, salary May include computer testing, software, handwriting, analysis, lie detector tests, and urinalysis Calls the applicant’s previous supervisor (with permission) and confirms information from applicants

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TRANS: Introduction to Pharmacy Administration Management and Leadership

In-depth selection interview

Finds out more about the applicant as an individual

Physical examination

Job Offer

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Ensures effective performance by applicants; protects other employees against diseases; establishes health records on applicant; protects from unjust work’s compensation claims Fills a job vacancy or position

Conducted by the manager to whom the applicant will report.

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Others performed by company’s medical doctors.

Offers a salary plus benefit package

ADMINISTERING EMPLOYMENT TESTS Job Proficiency Test o in which the applicant is given the opportunity to demonstrate occupational skills (compound prescription, counsel patient, dispensing and knowledge on pharmacy practice) Psychological Test o which includes aptitude, personality, and vocational interest test. o Aptitude tests - measure the potential for performing satisfactorily on the job, given sufficient training. ▪ Mental ability test, the best-known variety of aptitude test, measures the ability to solve problems and learn new materials. o Personality tests - measure personal traits and characteristics that could be related to job performance. ▪ Personality tests have been the subject of consideration controversy for many years. o Interest tests - measure preferences for engaging in certain activities such as mechanical, clerical, literary or managerial work. ▪ they also measure a person's interest in specific occupations such as accountant, veterinarian, or sales representative. ▪ Interest tests are designed to indicate whether a person would enjoy a particular activity or occupation. Integrity Tests - are designed to measure the extent of a person's integrity as it relates to job behavior. o these tests are frequently used in workplaces such as retail stores, banks, and warehouses where employees have access to cash or merchandise. o a major factor measured by integrity test is social conscientiousness.

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EMPLOYEE ORIENTATION Newly Hired Employees o Be oriented to the pharmacy and the position. o Be trained so that the work will be done properly. o Be told that future advancement within the pharmacy will be based on the job performance. Management must strive to acclimatize new employees to the pharmacy, the job, and other personnel. Importantly critical for existing employees who are moving to different positions within the pharmacy.

THE ORIENTATION PROCESS

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An orientation program may span several days, weeks, or even months depending on the job and pharmacy.

JIMENEZ | BS PHARMACY

Certainly, the first few days will be the most difficult, and the manager should spend as much time as necessary with the new employee. On the first day, the new employee should meet other employees and learn about the physical facilities and the pharmacy's processes and policies. In chain and hospital settings, the employee also needs an orientation to the parent company's operating processes and policy. Employees Handbook. A document that contains the goals policies, and procedures relevant to the employee and the job he/she is assuming. o Best to give each employee a personal copy of an employee’s handbook.

EMPLOYEES TRAINING AND DEVELOPMENT Training. Whether a new employee is brought in to fill a position or the job is being staffed by an existing employee, some degree of training will be necessary. Training is important to the employee's and the pharmacy's success because a person who is not well prepared for a job will most likely do unsatisfactory work and never reach his or her full potential. The purpose of training is to help employees meet the changing demands of their jobs. Training benefits both the organization and the employee. o For the organization - it improves the quality and quantity of work provided by each employee. o For the employee - it can make the job more interesting and meaningful and lead to greater morale and sense of accomplishment (Holdford, 2003). Training is meant to improve employee performance with current tasks and jobs, whereas development prepares employees for new responsibilities and positions. Therefore, training is essential for meeting current needs, and development is an investment in future needs. Training comes in two primary forms: orientation and job training. o Orientation training ▪ The purpose of orientation training is to welcome new employees, present a positive first impression, provide information that will permit them to settle into their new responsibilities, and establish early expectations of performance and behaviour (Umiker, 1998). ▪ It also involves familiarizing new hires with the company's/department's mission, goals, cultural norms, and expectations. o Job training ▪ helps current employees learn new information and skills to do their jobs and refresh capabilities that may have diminished over time. Development o requires a long-term focus by preparing for future needs of the individual or organization. Development differs from training o in that it requires a greater intensity of education and instruction. Whereas job training might be met sufficiently with continuing-education programs, onthe-job instruction, and short courses. Professional development may require formal education and structured experiences such as college courses, multiday seminars and certificate programs, residencies, or fellowships.

TRAINING METHODS The kind of training program used will depend on the type of job and whether the employees are being prepared for management or non-management positions.

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A. MANAGEMENT TRAINING AND DEVELOPMENT o

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Guidelines: ▪ Must be action-oriented. ▪ Must be an on-going process. ▪ Must provide room for mistakes. ▪ Must be flexible. ▪ All phases of development process must be closely controlled and monitored. Types of Programs to Develop Future Managers o On-the-Job training (OJT) ▪ While the employee may not be working to full capacity, at least some productivity is gained during the training period. ▪ For this method to be effective, however, it must be carefully planned and supervised. ▪ Training involves showing how to do the job and letting the employee perform the tasks o Job Rotation ▪ Can be used where there are two or more middle management positions. ▪ Employees trade jobs on a relatively frequent basis during the training period so that each has an opportunity to manage a whole spectrum of positions. ▪ Not only do employees gain a broader perspective; they develop their expertise in every major aspect of the pharmacy’s operations o Creation of “assistant to” positions ▪ Make the trainee an “assistant to” ▪ He/she does odd jobs and essentially watches and learns the various processes and procedures and performs in a staff or advisory position o Off-the-Job Training ▪ Training off the premises. ▪ Seminars, college courses, and the like may be a better preparation for serving the pharmacy’s needs. ▪ These usually are paid for by the pharmacy and may be taken during working hours. ▪ Although seldom used as the sole source of training, and quite expensive, this approach does serve to bring new ideas to the pharmacy.

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B. NON-MANAGEMENT TRAINING & DEVELOPMENT • • • •

New employees in non-management job also must be trained -- the process may be less time consuming, complex, and expensive than training future managers. Non-management people are the mainstays of the pharmacy, so they should also be trained. If they are ineffective or inefficient in performing their tasks, so also will the entire operation. Most Common Techniques for Training NonManagement Personnel. o On-the-Job Training ▪ Most frequently used training methods for nonmanagement positions, jobs tend to be routine, and employers typically do not want to invest considerable sums of money in training. ▪ It demands management time, it does not require much in a way of cash outlays. o Apprenticeships and Internships ▪ Jobs that require extensive training and practice often are handled on an apprenticeships or internships basis. ▪ Such preparation may take several years and utilizes both on- and off-the-job training. ▪ Typical of this approach are apprenticeships for specialized function in nonprescription sales and services, and internships for pharmacy students.

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JIMENEZ | BS PHARMACY

EMPLOYEE COMPENSATION AND BENEFIT PROGRAMS Wage. The salary level of employees must be reasonably close, but it should not be more than the pharmacy can afford or more than what is commensurate with the duties of the job. Establishing the salary should include a process of examining what comparable people are making and what the pharmacy can afford to pay. Competitive salary data can be obtained from local or national reports and surveys as well as the employer's contracts within the profession and community. Pharmacy resources can be examined from the pharmacy's financial statements, with different salary levels inserted into projected income statements to see how much impact they have on the pharmacy's profitability. Once competitive wages have been researched, and the pharmacy's ability to pay has been determined, the employer can begin to design a salary structure. Typically, the competitive salary is in about the middle of the range. Lower salaries tend to be reserved for training periods or less critical personnel, while lighter salaries are provided. Bonuses based on pharmacy profits frequently are used in small pharmacies that cannot afford large salaries. By developing a bonus system, however, should be tied to profits and apply only to those persons who directly or indirectly (e.g., staff personnel_ affect profits. In addition, the salary plus bonus usually is higher than a straight salary offered by a competitor. Benefit Programs should be assessed in conjunction with the wage programs since they can be very expensive if not administered properly. o Some of the common benefits are vacations, holidays, group insurance, bonuses, saving plans, profit sharing, stock options, and several services. Labor Standard Laws 1.Minimum wage 2. Holiday pay 3. Premium pay 4. Overtime pay 5. Night Shift Differential 6. Service Incentive Leave (Vacation) 7. Service charges 8. Separation pay 9. Retirement pay 10. 13thMonth pay 11. Maternity benefits 12. Paternity leave Welfare Laws 1. Social Security System 2. Employees Compensation Commission 3. PhilHealth 4. Pag-IBIG

TYPES OF EMPLOYEES Regular Employee. One who by nature of his job performs tasks that are necessary or desirable in the usual business or trade of the employer. o To emphasize, it is not the regularity or casualness of the employment but the nature of the job. Probationary Employee. One who is hired to fill a regular position in the company but who is to undergo a trial period dictated by law to be no longer than 6 months. o By company policy or solely at company discretion the probationary period may be shorter than six months. o The purpose is to afford the employer the opportunity to observe the fitness of the employee while at work and to ascertain whether he will become a roper and efficient employee. 4

TRANS: Introduction to Pharmacy Administration Management and Leadership

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The word probationary refers to the purpose of the trial period and not its length. o On the part of the employee during the probationary period, he will seek to prove to the employer that he has the qualifications and skills necessary to meet reasonable standards made known to him by the employer on the date he was hired. o A probation employee services may be terminated before the lapse of the probationary period when he commits an offense enumerated as valid cause for termination under Art. 282 or after his performance has been evaluated, he is found not to have lived up to the reasonable standards set by the company. Contractual Employee. One whose work is for a short duration and the work assignment may possibly be related to the usual business/trade of the employer. o If the worker is hired and re-hired in different periods to do the same work for the employer, it is sufficient proof of the necessity and indispensability of the service. When such work service exceeds one year, an employee may be entitled to be considered a regular employee. Casual Employee. One whose service have been engaged intermittently, in various periods within a period at least one year and may extend for a longer period but his service is either continuous or broke, but it happens that every time the work or activity occurs during said period, he is always the one rehired. o In this sense, he is commonly called regular casual an inconsistency in terms. He becomes regular with respect to the activity in which he was employed. He need not be formally issued regular status appointment. Project Employee. It is one whose period of employment has been fixed for specific project or phase thereof, the completion or termination of which has been predetermined at the date he was hired, he may be transferred to one project to another whether on a regular or irregular basis, but it is required that such project employee should be terminated at the completion of each project. o For example: An employee may be hired merely for painting work of on project (a building). Upon completion of the painting of the buildings, his employment must be terminated. Seasonal Employee. One who is hired to perform task, the completion of which is pre-determined on the employment is for the duration of the season. o Examples: Salesclerks are hired during Christmas holidays or during a peak sales period as school opening dates (May through June). o In agriculture sector when workers are hired for the planting or harvesting season in the sugar, rice, or coconut industry. Substitute Employee. One who is hired temporarily for the purpose of substituting for a regular employee who may be absent from his post for some valid reason, his services can be terminated at any time of his employment and must vacate the position upon the return to work of the regular employee.

[TRANS] CHAPTER 5: MOTIVATION AND LEADERSHIP OUTLINE

I. II. III. IV. V. VI. VII.

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JIMENEZ | BS PHARMACY

Overview Managing Health Care Professionals Progressive Discipline and Dismissal Improving Employee Relations Leadership in Pharmacy Theories of Leadership Leadership Style

Directing. It is the heart of management process. Involves guiding and motivating other people to work for a common purpose. A basic management function that includes building an effective work climate and creating opportunity for guiding, inspiring, motivation, supervising, scheduling, disciplining, overseeing, and instructing people towards accomplishment of goals. Directing is also the act around which all performances in the organization hinge. It is "getting the job done" with that, it is important to point out that direction is one percent giving instructions and 99 percent seeing to it that the job is done efficiently. The management of the organization is accomplished by "direction" or the act of directing by the manager. Because the manager is dealing with people, he should master the art and skill of motivation, communication, and leadership. It is a process in which the managers instruct, guide, and oversee the performance of the workers to achieve predetermined goals. It can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. Tips on Managing People: 1. Periodically review each position in the pharmacy. ▪ Take a quarterly look at the job. Is work being duplicated? Is it structured so that it encourages the employee to become involved? Can a parttime person fill the job? 2. Play a private mental game. ▪ Imagine that the pharmacy must get rid of one employee. If one person had to go, who would it be? How would the job be realigned? 3. Use compensation as a tool rather than viewing it as evil. ▪ Reward quality work. Investigate the possibility of using raises and bonuses as incentives for higher productivity. 4. Remember that there are new ways of controlling absenteeism through incentive compensation plans.

MANAGING HEALTH CARE PROFESSIONALS Distinct Qualities within Health Care o Health care is distinct from other industries in that it involves the care of human beings. o The stakes are appreciably higher, and there is an absolute necessity for a high level of quality in the work performed. o Health service organizations are also unique in that a wide range of human resources is deployed in the delivery of the care, from some of the most highly trained and educated professionals and scientists to manual laborers. 5

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MOTIVATING PROFESSIONALS The concept of motivation is a key determinant in influencing human behavior. Motivation theory revolves around needs, actions, and goals. According to Bassett and Metzger (1986): o When you have a need (a wish, a desire, a want, a life requirement), it moves you into action. You stay in action, in one form or another, seeking to reach a goal that will satisfy the need. Yet action ceases when the need is satisfied, and no action takes place until the need surfaces. Because what another person specifically needs or wants is rarely known, applying the theory is very difficult. Understanding what motivates people and applying that knowledge can facilitate the development and maintenance of a strong and loyal workforce. What people want from their work has changed remarkably little through the years. A challenging job is a key motivator, especially among professionals, because it allows for a feeling of achievement, growth, responsibility, advancement, enjoyment of the work itself, and earned recognition.

COMMUNICATION Willard and Merrihue describe four principles that managers can use to ensure effective communication with their employees: 1. Managers should seek to gain the confidence of their employees by being impartial and consistent, fulfilling commitments, addressing, and answering any problems or concerns, representing employees' interests to others within the organization, and making it clear that the institution has a grievance process that works. 2. Managers should seek to gain the respect of their employees by showing sincere interest in issues that are important to the employees, being considerate and helpful, and displaying enthusiasm about their progress. 3. There should be good upward and downward communication between managers and employees. Listening, talking, and selling skills must be developed and cultivated. 4. Because half of communication is active listening, it is important to listen carefully to achieve full understanding of the information received, act quickly based on this understanding, and communicate the results of such action. It has been said that the better the manager listens, the more the manager will inspire.

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SOME MORE COMMON GROUNDS FOR DISCIPLINE OR DISMISSAL • • • • • • • •

Refusal to work or take direction. Disorderly conduct. Tardiness and absenteeism. Poor treatment of customers. Stealing from pharmacy or other employees. Destruction of pharmacy property. Violation of safety practices. Alcohol or drug abuse.

SAMPLE DISCIPLINARY PROCEDURE •

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PROGRESSIVE DISCIPLINE AND DISMISSAL Progressive discipline is defined as a series of acts taken by management in response to unacceptable performance by employees. The role of progressive discipline is to escalate the consequences of poor employee performance incrementally with a goal of improving that behavior. Responses by management to undesirable behavior become progressively severe until the employee either improves, resigns, or is terminated from the position. Although punitive in nature, the purpose of progressive discipline is not to punish. Rather, the aim is to make explicit to an employee the consequences of unsatisfactory behavior to encourage improved behavior. Indeed, improved behavior is always the preferred outcome, never the loss of an employee through resignation or termination

EMPLOYEE DISCIPLINE AND DISMISSAL Whatever the cause, the pharmacy owner must be ready to deal with the fact that discipline or dismissal may be called for Such actions must be based on a clear understanding of the ground rules for employment. This necessitates identifying and publicizing actions like theft, fighting, continued tardiness, or other infractions which will result in discipline or dismissal. Disciplinary actions must be prompt, commensurate with the violation, and clearly explained to all affected. Long delays between the time of the employee action and the resulting disciplinary steps usually viewed as indecisive. To be effective therefore, employee practices calling for discipline or dismissal should be well communicated, and management actions promptly taken

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JIMENEZ | BS PHARMACY

Verbal warning and counseling o A verbal warning is a formal oral reprimand about the consequences of failing to perform as expected. o Counseling should be a cooperative attempt at identifying and correcting the problem. Formal written warning o Used for more serious errors (failure to meet job requirement, violation of rules or policies) or when verbal counseling is ineffective. o Explicitly stated and retain a copy in the file Final written warning o The final disciplinary action prior to dismissal. Suspension without pay o The temporary release of an employee from duty for 30-working days without pay. o A suspension is a significant disciplinary action for a more serious incident or repetitions of improper performance of conduct. o Suspensions are punitive actions meant to demonstrate the seriousness of a situation. o Sometimes written warnings do not result in improved employee performance and need to be backed up by actions. o Suspensions are meant to act as a final warning that current behavior is unacceptable. o Like written warnings, they must be crafted carefully to include previous warnings, requirements for future actions, and consequences for not improving behavior (e.g., termination). Termination or dismissal o Usually initiated by the heads of the department/unit. o Set the effective date. o The employee must be notified of the dismissal, in writing. o Employee must be notified 2 weeks prior to the dismissal.

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IMPROVING EMPLOYEES RELATIONS The pharmacy owner needs to be alert for signs of employee discontent - slowdowns, tardiness, accidents, excessive waste. By identifying and focusing on those areas where problems are most likely to occur, the employer will increase the chances of early detection Successful handling of employee dissatisfaction revolves around the following: o Recognizing problems quickly o Allowing grievances to vent themselves o Equitably resolving the Problems

LEADERSHIP IN PHARMACY

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Leadership - the ability to influence the actions of others, is based on the interaction of three elements: o the leader o the person or persons being led, o the situation in which both coexist. All three elements change, almost daily. A good leader understands each of the changes and develops strategies to work with and through others to accomplish goals. Leaders are not always managers, and managers are not always leaders. Those who display characteristics of both are typically best for organizations. According to Bennis and Nanus (1985), o “Managers are people who do things right and leaders are people who do the right thing.” Managers typically focus on performing the job on behalf of the organization, routinely invoking the five functions of planning, organizing, directing, coordinating, and controlling. In contrast, leaders consider the needs of the organization as well as the needs of the people they are leading. Leadership is an important concept that transcends all healthcare professions. The acceptance of this role by all health care professionals is vital to the invention of new technologies and dosage forms, changes in the delivery of health care, enhancement of patient outcomes and quality of life, and success of their specific health care organization. The opportunities for pharmacists to be leaders in their practice setting, the pharmacy profession, and the community are plentiful. Leadership is a critical component for positive change within pharmacy organizations and the profession.

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QUICK RECOGNITION ▪ Whether a complaint is serious, valid, or resolved to the employee's satisfaction, the longer it lingers before treated, the more it strains the long-term employer-employee relationship. ▪ Employees can submit complaints, while maintaining their anonymity, which is impossible with the open-session approach. AIRING OF COMPLAINTS ▪ Closely related to this early recognition is the need for an outlet for discontent. ▪ When employees have no established means of airing complaints, they often resort to counterproductive measures that are more difficult to recognize. EQUITABLE RESOLUTION ▪ Even if the pharmacy owner makes every effort to identify problems quickly and create an open employer-employee atmosphere, it will be little value if grievances are not resolved equitably. ▪ Not eliminating the conflict will certainly damage this relationship.

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PURPOSE OF LEADERSHIP

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Is to help individuals, groups, and organizations grow and develop. Individuals need leadership to aid in their personal and professional growth whereas groups need leadership to promote teamwork, cohesion, and attainment of mutually desired goals. Corporations and organizations, including professions, need leadership to assure that activities are continually aligned with collective visions and expectations. The need for leadership in pharmacy is growing as the profession expands its horizons and takes on more patientfocused responsibilities. The rapid changes within and outside the profession require visionary leaders to help followers cope with and adjust to these changes to maintain and grow its professional role within society.

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MOVEMENT OF PERSONNEL Transfer - shifting of an employee from one position to another without increasing his duties, responsibilities, or pay. Promotion - shifting of an employee to a new position to which both his status and responsibilities are increased. Separation - it can be temporary or permanent, voluntary, or involuntary. o Lay-Off ▪ temporary and voluntary, usually traceable to a negative business condition. ▪ The usual procedure is applicable to workers with the least seniority, o Discharge ▪ involuntary and permanent, a person may be discharged if he is not competent in his job even after efforts are made. ▪ Insubordination is also one cause for discharge. o Resignation ▪ voluntary and permanent, often due to low salary and/or low morale. Retirement - can either be voluntary (if an employee reaches the number of years of service based on company policies) or involuntary upon reaching the retirement age of 65. o When employees leave the company voluntarily, the management should make a sincere attempt to find out the reason for their departure since this information can be used to improve conditions, and thus, reduce labor turn-overs.

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LEADERSHIP ROLES FOR PHARMACY STUDENTS AND PHARMACIST

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JIMENEZ | BS PHARMACY

Pharmacists and pharmacy students have unlimited opportunities to become leaders within their individual practice settings; pharmacy professional organizations on the local, state, and national levels; the overall health care profession; and their communities. Within their practice settings, leaders will make changes within their practice setting prior to other pharmacists within their immediate vicinity, such as implementing medication therapy management (MTM) services or providing new pharmacy service in the hospital. Other professional leadership opportunities include being an officer in local, state, and/or national pharmacy organizations. Community leadership roles involve community organizations such as the Lion's Club and Rotary Club, public health initiatives, and political involvement. 7

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Pharmacist. Can become leaders within their pharmacy professional organizations, their practice setting, in providing a new pharmacy service, or in community organizations. Students. Students can be leaders in their student pharmacy organizations by providing services to local community organizations and providing disease-state management services such as blood pressure, cholesterol, and glucose screening to the citizens within their local communities and state. Leadership in each of these areas is important to provide effective patient care, to enhance the quality of life of patients, to advance the profession of pharmacy, to make for a healthier community and for the pharmacist's own selfworth and actualization.

Decision making is shared between the owner and employees o Manager has great confidence in their employees. o Make decisions in the best interests of the pharmacy o Tends to get ego involved in the pharmacy. o Serves to improve their morale and motivation. o Many meetings 3. Free rein style o "You decide" o The decision making is given to the employee within certain specified limits. • •

THEORIES OF LEADERSHIP Leadership can be thought of as getting a group of people and concerned with change and with motivating employees to move toward a particular vision or ideal. Management, on the other hand, is concerned with handling the complexities involved in running an organization (i.e., planning, control, evaluation, and financial analysis). Given this distinction, a manager or an administrator may not necessarily be a leader. She may be more concerned with the day-to-day functioning of the organization. The manager may give little thought to the overall goals of the organization and how her department/pharmacy fits into the overall scheme.

TRAITS MODEL Focuses on the personal characteristics of leaders.

1. Physical: o Young to middle age o Energetic o Striking appearance o Tall and slender. 2. Social background: o Educated at the right schools o Socially prominent upwardly mobile. 3. Personality: o Adaptable o Aggressive o Emotionally stable o Dominant o Self-confident. 4. Social characteristic: o Charming o Tactful o Popular o Cooperative. 5. Task-related Characteristics o Driven to excel o Ready acceptance of responsibility o Initiative o Task oriented o Good interpersonal skills. •

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1. Task orientation o refers to the extent to which a leader engages in oneway communication by defining the roles of individuals and members of the group by explaining (telling or showing or both) what each subordinate is to do, as well as when, where, how much, and by when specific tasks are to be accomplished. 2. Relationship orientation o refers to the extent to which the leader engages in twoway communication, provides socio-emotional support, and uses facilitative versus directive efforts of bringing about group change. o This component considers the establishment of effective interpersonal relationships between the leader and the group based on trust. 3. Follower readiness or Maturity o The third component consists of follower readiness or in this case, maturity is related the group's or individual's willingness or ability to accept responsibility for a task and the possession of the necessary training or experience to perform the task. • • •

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BEHAVIORAL MODEL/LEADERSHIP STYLE Concentrates on leader action

1. Autocratic Style o "I decide" o Manager retains absolute control o Manager has little confidence in their employee's ability to make decisions. o Few meetings 2. Democratic Style o "We decide"

CONTINGENCY MODEL Examines the relationship between the characteristics of a given situation and a leader's behavior. These leadership theories are based on three basic dimensions: task and relationship orientation and follower readiness (Hersey and Blanchard, 1988).

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LEADERSHIP STYLE Leadership Style refers to the approach the manager uses to direct the actions of employees. How the pharmacy owner views and treats employees will have significant effects on worker morale and motivation Factors on Selecting the Style of Leadership by a Pharmacy Owner: o Degree of self-confidence the pharmacy owner has. o Degree of confidence the pharmacy in subordinates. o Importance of decisions to the survival or success of the pharmacy o Extent to which employees want decision making responsible

STYLES OF LEADERSHIP Whereas many theories help an individual understand how to lead, there remain styles of leadership that a person can adopt to influence the actions and behaviors of others. Affiliative Style. The affiliative style creates harmony and builds emotional bonds. o The affiliative style helps create a feeling of belonging and security through feedback and reward systems. o This focus on praise and belonging, though, does not help when there is poor individual performance that needs correction. o The affiliative leader tends not to deliver bad news to a person, thus not allowing the employee to grow or change bad habits. Authoritative Style. The authoritative style, although sounding "bossy," is one of the most positive styles a leader can employ. 8

TRANS: Introduction to Pharmacy Administration Management and Leadership

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Individuals using the authoritative style display selfconfidence, empathy, and the ability to develop cooperation and teamwork when leading the organization. o A leader using this style motivates the team toward a new vision by providing a trusting environment in which individuals know their roles in achieving organizational goals. o The authoritative leader develops the end vision while allowing the team to determine how to achieve the vision. Coaching Style. The focus of the coaching style is to help employees improve performance over the long term. o The coach delegates responsibility to subordinates for the dual purpose of achieving outcomes and encouraging employees to develop new skills. Coercive Style. Individuals practicing the coercive style of leadership demand immediate compliance with orders and directives. o This style is primarily associated with leaders displaying a strong sense of self-management but focusing little on others. o When habitually used, the coercive style typically has a negative impact on employee morale and eventually productivity. Democratic Style. Democrats are participative consensus developers. o They work primarily under the participative management style. o Democratic leaders use social skill as the primary means for directing the activities of a group. o The democratic style uses collaboration and teamwork to gain buy-in from constituents. Pacesetting Style. In contrast to democratic leaders, pacesetters are more autocratic in their leadership style. o Pacesetters set high standards of performance for themselves and expect others to have the same high standards. In this case, the pacesetting leader predominantly uses the self-management skill.

In summary: • The authoritative and coaching styles appear best and should be used as the primary tools for leading groups and individuals. • The democratic and affiliative styles are also effective but may present additional challenges when used. • The coercive and pacesetting styles may be effective but should be used sparingly because they have an overall negative impact on the culture when employed routinely.

[TRANS] CHAPTER 6: PHARMACY PERFORMANCE APPRAISAL

It identifies the individual’s strengths and weaknesses. It provides the employer with the information relative to the employee’s capacity for retention and promotion. • This will also identify any training needed to improve performance. 1. Unity of Output o This can be measured on an hourly, daily, weekly, or monthly basis. o For pharmacists, this may be the number of prescriptions dispensed per day, for salespersons, it may be sales per day. 2. Quality of Work o Based on the number of prescription errors, incorrect transactions recorded, or number of complaints. o It is based on the assessments made of the employee’s quality of efforts. 3. Dependability o Measured in terms of coming to work on time, one assessment will be dependability to perform. o Another dimension is the extent to which the individual can be counted on to do good job. o This is an intangible factor that is hard to measure. Perhaps the closest approximation is the quality of work. 4. Job Knowledge o A person’s knowledge of the job, pharmacy, and parent company policies, and so on, can be measured through objective testing techniques if desired. o Informal questioning of the employee also can be used to assess this. 5. Ability and Willingness to Work with Others o Since the pharmacy relies in relatively few people, it is essential that they be willing and able to work in cooperation spirit. o This, however, is difficult to measure quantitatively. o Observation of the employees’ interaction as well as monitoring any conflict through grievances or other hostilities provides several bases for rather subjective appraisals. 6. Initiative and Ability to Handle Ambiguity o The extent to which individuals can work on their own and perform relatively unstructured tasks is a definite asset to the pharmacy. o Measurement of these factors is difficult, sort of psychological testing. o Most pharmacy owners do not want to take the time or spend the money to conduct tests.

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OUTLINE I. II. III.

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Employee Performance Appraisal Approaches to the Performance Appraisal Strategies in Conducting Appraisal

EMPLOYEE PERFORMANCE APPRAISAL

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EMPLOYEE PERFORMANCE APPRAISAL Controlling - It is the measurement of accomplishments against set standards and the corrective measures to be applied so that deviations from the standard are minimized. Performance Appraisal - it is a method by which the job performance of an employee is documented and evaluated. o Consists of regular reviews of employee performance within the organization. JIMENEZ | BS PHARMACY

RATIONALE FOR IMPLEMENTING EMPLOYEE APPRAISALS The evaluation form will be reviewed at a meeting between the employer and the employee. Each aspect of the individual’s performance should be discussed in terms of strengths and weaknesses, and how the latter can be improved. This act promotes superior-subordinate relationship. 1. 2. 3. 4. 5. 6.

Performance improvement Basis for employment decisions Criteria in research (Test Validation) Aid with communication Establish personal objectives for training programs Transmission of objective feedback for personal development 7. As a means of documentation to aid in keeping track of decisions and legal requirements 8. Wage and salary administration 9. Formulation of job criteria 10. Selection of individuals 9

TRANS: Introduction to Pharmacy Administration Management and Leadership

11. Part of guiding and monitoring employee career development 12. Aid in work motivation using reward systems

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APPROACHES TO THE PERFORMANCE APPRAISAL •

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Traditional Appraisal o The manager discusses with the employee the performance for the previous performance period. o The discussion is based on the manager’s observations of the employee’s performance. Upward Feedback o This is also known as manager feedback. o A process of delivering feedback from subordinates to superiors. o This is intended to identify ways to increase management effectiveness. 360° Feedback o Also known as multi-rater feedback. o Employees are allowed the opportunity to assess the manager at the same time. o The feedback would come from people around the employee, including self-assessment and external sources such as customers. Self-Appraisal o Employees evaluate their own performance. o Usually done 1 or 2 weeks before the employees performance review. o This will give the employee a chance to compare his/her impression of how well they did with the employers’ impression. o Important to an employee own advancement. Trait Appraisal o The employer evaluates the employee on observable dimensions of personality. o Examples of dimensions of personality are integrity, honesty, and punctuality. Based on Achievable Results o Based on work achievements judged against goals set mutually by the supervisor and subordinate.

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RATING SCALE This is an aid to measuring – with a reasonable degree of accuracy and uniformity the abilities of one employee and the employee’s skill in his or her present job. It will help to appraise present performance as compared with previous performance in the same job, and it may indicate promotion possibilities. Instructions: 1. Disregard your general impression and concentrate on a single factor at a time. 2. Read all four specifications for each factor before determining which one closely fits the employee. 3. In rating an employee, make your judgment on instances occurring frequently in his or her daily routine. Don’t be swayed by isolated incidents that are not typical of his or her work. 4. Don’t let personal feelings govern your rating. Make it carefully so that it represents your fair, objective opinion.

STRATEGIES IN CONDUCTING APPRAISAL Essay Appraisal Method o The evaluator provides a brief essay providing assessment of the strengths, weaknesses, and potential of the subject. Graphic Rating Scale o This assessment makes use of a graphic scale measuring the persons’ quality of work. (Average, above average, outstanding, unsatisfactory)

Critical Independent Appraisal Method o The superior describes incidents, giving details on both positive and negative behaviors of the employee. Management by Objectives (MBO) o In this technique the employees are allowed to set their own realistic performance goals. o This eliminates the feeling of employees that they are being judged by unfairly high standards. Ranking Method o Employees are ranked and compared to one another according to their work performance.

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