CVGZ 2OTB HC2: MANAGERIAL FUNCTION

MANAGERIAL FUNCTION: PLANNING - Relates to goals that are essential, basic, or critical to the continuation of an institution or
organization
- Involves the allocation of resources to achieve an organization’s long range goals
- PLANNING is the process of making decisions in the present to bring about an outcome in the
future. - A careful design for achieving a result relative to a crucial issue, based on an analysis of the
positive and negative forces in a situation, analyses of the strengths and weaknesses
Participants in Planning
STRATEGIC PLANNING
1. Top level managers: CEO
2. Departmental level managers: directors and department heads - STRATEGIC PLANNING is a managerial process of developing and maintaining fit between an
3. Staff planners or consultants organization’s goals and resources, and its changing market opportunities.
• Success equation = as the market changes, the company’s strategies also change

ORGANIZATIONAL PLANNING
- Needs a strong infrastructure: organizational design, development of goals, policies and
procedures, job design and incentives, and supporting organizational values and culture
- Survey
- Encompasses managerial decisions and actions that direct long-term performance
o used to identify the need for the program, population to be served, source of referrals,
- Ongoing process of formulation, implementing and controlling broad plans
needs of the staff, treatment methods, and anticipated caseloads
- Always looking at the “big picture” – future oriented
- Interviews
- Reflect the decisions that management makes to bring the organization into the future reality
o interview with the top – level administrator to determine the nature and extent of the
program desired
Strategic Planning Process
o fiscal considerations and administrative restrictions must be accommodated
- Evaluation
o translation of all the information gathered into a workable plan
o personnel and facilities are matched with the needs of the organization and the
program

Organizational Goals

- goals of an organization originate in the mission embodied in the statement of purpose or

philosophy of the organization 1. Environmental Scanning
- goals are ends towards which an activity is directed, it is never completely achieved but rather - “Situational analysis”
is in a continuing ideal state - Assessment of the internal and external environments of the organization
- SWOT analysis – provides information that is helpful in matching the organization’s
Vision & Mission resources and capabilities to the competitive environment where it operates

- Vision: an ideal or an aim for an organization Environmental

Scan
- Mission: setting forth of the organization’s purpose, including definition, products, and
services; provides direction without being overly specific
Internal External
Analysis Analysis
- UST Vision and Mission:
Vision: Faithful to its centuries-old tradition of excellence, the University of Santo Tomas
envisions itself as a premier Catholic institution of learning in Asia, committed to the Strengths Weaknesses Opportunities Threats
professional and moral formation of her stakeholders for social transformation.
Mission: The University, in pursuit of truth, guided by reason and illumined by faith, dedicates
herself to the generation, advancement, and transmission of knowledge to form competent and
compassionate professionals, committed to the service of the Church, the nation, and the  Strengths: resources and capabilities that determine the organization’s competitive advantage
 Weaknesses: the absence of certain strengths or the flipside of such
global community.
 Opportunities: areas of profit or growth
 Threats: changes to the external environment
Strategic Plan

- Plan that orients and directs an organization toward the activities that it must accomplish to
meet its mission
 CVGZ 2OTB HC2: MANAGERIAL FUNCTION
Decision-Making
SWOT Matrix

- Process of identifying problems and opportunities and then resolving them

Strengths Weaknesses
Models of Decision-Making
Opportunities S-O strategies W-O strategies
1. Classical
o explains how managers should make decisions so as to maximize economic
efficiency
Threats S-T strategies W-T strategies 2. Administrative
o describes how managers actually make nonprogrammed, uncertain decisions with
skills that include intuition
 S-O: pursue strategies that are a good fit to the organization’s strengths 3. Political
 W-O: overcome weakness to pursue opportunities
o relates to making nonprogrammed decisions when conditions are uncertain,
 S-T: identify ways to use strengths to reduce vulnerability to external strengths
information is limited and ambiguous and there is conflict among managers about
 W-T: establish a defensive plan to prevent weaknesses from making it highly susceptible to
what goals to pursue or what course of action to take
external strengths

Decision-Making Steps
2. Strategy Formulation
1. problem recognition
- Determining which actions to take
2. diagnosis of causes
- Identifying the organization’s objectives or goals
3. development of alternatives
- Vision, mission, objectives – how to go about achieving these things to gain sustainable
4. choice of an alternative
competitive advantage
5. implementation of the alternative
6. feedback and evaluation
3. Strategy Implementation
- Specific programs are developed
Personal Decision Style
- Budgets are determined
1. Directive: simple, clear-cut solutions to problems
- Process and procedures are defined
2. Analytical: considers complex solutions based on much data as they can gather
- Performance metrics are set
3. Conceptual: consider many broad alternatives, rely on information from both people and
systems and like to solve problems creatively
4. Implementation and Control
4. Behavioral: talk to people and understand their feelings about the problems and conflicts
- “Evaluation and Control”
- Monitoring of the progress
FACILITY PLANNING
Benefits of Strategic Planning
1. Documentation Area 6. Outpatient Therapy Clinic
2. Waiting Area or Reception 7. OT ADL Areas
- Individual can take ownership of the direction of the organization, empowerment of the staff
3. Sensory Integration Area 8. Aquatic Rehab
- Gives staff a broader perspective
4. Adult Inpatient Rehab Facility 9. Vocational Rehabilitation
- Clearly communicates the organization’s purpose to its employee and the public
5. Therapy Gym
Pitfalls of Strategic Planning
Things to be determined:
- which space can be shared within the department
- Assuming that planning can be completely delegated to a planner - how it can be shared
- Using unsuitable goals as the basis for planning - how efficiency can be increased by locating related departments in proximity to each other
- Involving major personnel inappropriately - how many work stations will be required as a result of the number of patient/client visits and
- Not using a manager’s contribution to achieving the plans as the basis for evaluating the the hours of operation, how much space will be necessary to accommodate the level of staffing
manager’s performance - what major pieces of equipment will be needed
- Failing to integrate into the entire management process
- Injecting such formality into the system that it becomes inflexible and restraint creativity Factors to consider:
- Top – level managers failing to review middle managers’ plan - Data on the Number of departmental gross square feet (DGSF)
- Managers making intuitive decisions that runs counter to formal plans - Data on the number of visits that occur in the OT department annually
- Number of hours that the department is open weekly
 CVGZ 2OTB HC2: MANAGERIAL FUNCTION
2. Departmental Budget:
o working, detailed budgets for each unit, developed by the unit manager; highly
Utilization Factor: specific and permit identification of each item
- Defined as the number of visits per square foot 3. Capital Budget:
- Describes how much use a particular space is getting o used to reflect anticipated expenses to be incurred for the purchase of major
equipment or improvements to the facilities
Computed by: o cover more than the fiscal year, usually 2 – 5 years
o Generally include items with 5 years life expectancies and cost more than Php
15,000.00
40 4. Revenue or Expense Budget
DGSF UF o most common type of budget
hrs
o reflects anticipated revenues from payment of services rendered, endowments,
special funds, grants, and special sources
5. Other types: Personnel budget, student, educational budget, special project budgets,
Annual number of Visits x 40 (weekly hours of operation)= Visit per square foot (DGSF) developmental budget

Common Facility Design Mistakes to Avoid: Budgeting Process and Method

- inefficient traffic flow

- inappropriate placement of clinical areas
- inadequate flexibility in functional areas Direct Indirect Total Fee-for-
- inadequate storage space costs costs budget service
- inadequate quiet work space for staff and managers
- excessive noise and difficulty cleaning
- inadequate staff and equipment
- Steps in determining Budget of the Organization
o 1st Step: Identify the direct costs
FISCAL PLANNING
o 2nd Step: Determine Indirect costs
o 3rd Step: Direct and Indirect Costs are totaled for the budget figure, include the Bad Debt
- Fiscal Management: Method of controlling the economics of problem at hand Allowance (Total budget )
- Concerned with discovering, developing, defining, and evaluating the financial goals of the o 4th Step: Determination of the Fee – for – Service (Total budget/projected number of
department treatment procedures = cost per procedure

Direct and Indirect Costs

- Direct: costs that can be traced to a specific unit or activity

o Direct costs includes salaries, payroll taxes, overtime, vacation relief, supplies,
reimbursable equipment
 To compute, simply total the anticipated expenses of every item
- Indirect: costs that cannot be traced to a particular service
o Indirect costs include administrative support for personnel, accounting, purchasing,
cleaning, maintenance of department, laundry, plant operation costs, utilities
o based on the percentage of space used or allotted to the department in relation to
the total facility space

Budgeting

- Budget is a specific statement of anticipated results, expressed in numeric terms, covering a

specific time period and is the basis of continuing and future plans in financial terms

- How much is the annual total direct cost? 442,500 (salaries and payroll taxes)
Types of Budgeting
- What is the total number of patients seen in one year? 9,360
1. Master Budget:
- What is the fee for service? (direct cost + indirect cost)/ total number of patients = 68.55 (can be
o central and composite budget for the entire organization
viewed as the minimum amount required to ensure company covers all expenses)
 CVGZ 2OTB HC2: MANAGERIAL FUNCTION

MARKETING

- Is a process that focuses the organization on the need of the consumer. It is meant advertising
a product
- This requires a vision of where the organization is going as well as plan of getting there.
- In marketing planning process, it is important to make an analysis f consumer desires and
behaviors.

Marketing Segmentation:

- Is a fundamental concept in marketing that is based on research rather than logic

- A market segment is a group of consumer who are distinguished by one or more characteristics
believed to affect their purchasing power

Marketing Analysis:

- Uses information identified in the organizational and environmental assessments to define the
market and determine if the organization’s perception of the wants and the needs of the
market is valid
- It determines (1) whom it will serve , (2) how it will organize its services, (3) how it can group
potential consumers with similar needs and (4) what is unique about its services or products

Consumer Research:

- Is conducted to determine how consumers behave and the attitudes, knowledge, and belief
that affect their behavior.

Marketing Plan:

- Goals and objectives that were clearly delineated

- Anticipated, measurable results that are defined in terms of quantity and time

Essential Concepts of Marketing:

- Product
- Price
- Place
- Position
- Promotion