Introduction to elements of economics Management

1. D I K S H A C H O U D H A R Y ( A S S I S T A N T
P R O F E S S O R )
A B H I L A S H I U N I V E R S I T Y , M A N D I
D Pharm 2nd year
Drug Store and Business Management

2. Topics
 Introduction to Elements of Economics
 Management

3. Economics
 Social science which deals with the economic problems of an
individual
 Deals with proper use and allocation of resources for the achievement
of various human wants
 Maintenance of growth with stability
 Economic activities for example: business, profession or employment
 Non-economic activities related to social, psychological and religious
sentiments
 Example: housewife looking after the household, a person playing
cards, a person engaged in social activities etc.
• Do not generate any income or profit

4. Element of economics
1. Economic activities
2. Economic system
1. Economic activities:
 Industrial house drug store economy can be adopted in the purchase of
raw materials/drugs
 Required raw materials
 Economic order quantity are purchased
 Limited number of technical and non-technical person are employed
 Only profitable and economical products and services are produced
 Buying and selling of goods and services done economically

5. Cont…..
2. Economic system:
 Economic relationships which arise in the community from
organization or mode of production and distribution
 Simple and easy to satisfy their wants
 Depends in the kind of economic system
 Adopted by particular country
 Resources are allocated, prices are fixed etc.

6. Types of economic system
1. Capitalist system
2. Socialist system
3. Mixed economy
1. Capitalist system:
 Freedom of every kind
 Producers are free to acquire any property and to produce any product
 Consumers are free to use any product and any amount to satisfy their
wants
 Liberty to spend their income in any way they like
 Production and distribution are generally in hands of private owners
 Operate them to earn profit
 Government is to protect the producers and consumer
 Avoid unhealthy competition among producers
 Provide essential services

7. Cont……
2. Social system:
 Large and basic industries are owned and controlled by government
 Distribution also controlled by government
3. Mixed economy:
 Both systems are used i.e. capitalist and social system
 Some economic activities are controlled by government and some are
open
Advantage of capitalist system:
 Better economic development, increased production and improvement in
science and technology sphere
Advantage of socialist system:
 Reduction of inequality of income, large and basic industry come under
the purview of the government
 Fair distribution of goods

8. Management
 Conducting and managing the various business activities
 Like business organisation, drug store, hospital pharmacy, industry or
any other organisation, has its own management
 A/c to George R. terry, “distinct process consisting of planning,
organizing, activating and controlling performed to determine and
accomplish the objectives of the organization by use of Human beings
and other resources”
 Art and science of performing the different activities

9. Elements of management or functions of management
1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling
6. Co-ordination
1. Planning:
 most important function
 Functions of management depend on planning
 Without sound planning it is very difficult to achieve the desired aims
 Sound of thinking must be given that what, when, where and how to be done
a/c to funds available
 Type of products formulated, building and equipment required
 Number of pharmacists, skilled and lay personals required
 Salary

10. Cont…
2. Organizing:
 Arrangement of persons in any field
 Fulfill the common goal
 Better organization better would be achievement of the common
objectives
 Loose organization leads to unhappy and serious results
3. Staffing:
 Right persons are selected for specific kind of job
 Recruitment, selection, training, development, compensation and
dismissal, etc.
 Staff comprises of registered pharmacists, skilled persons, lay persons
and clerical staff

11. Cont…
4. Directing:
 Proper direction to employees
 Work efficiently and effectively
 Fulfill the objectives of organisation
5. Controlling:
 Manager have full control on workers
 Everything done according to rules and instructions issued
 No undue interference in their work
 Likely to lose all initiative and enthusiasm
 Work sincerely and honestly
6. Co-ordination:
 work in complete harmony
 Fulfill the goals of the organisation