Administration Test 2 Set 2

Front 1

AAC?

Back 1

actual acquistion cost

price pharmacy pays the drug wholesaler for drug

Front 2

EAC?

Back 2

estimated acquistion cost

TP's estimate of what pharmacy pays drug wholesaler

Front 3

AWP?

Back 3

average wholesaler price

list price for what drug wholesalers charge pharmacies; overestimate of what wholesaler actually charges pharmacy

Front 4

WAC?

Back 4

wholesaler acquistion cost

list price for what manufacturers charge drug wholesalers, overestimate of what manufacturers actually charge wholesalers

Front 5

MAC?

Back 5

maximum allowable cost

max cost the TP will pay for a multisource drug, average of generic drug price

Front 6

Multisource drugs

Back 6

drugs that have at least one generic equivalent

Front 7

Fixed Costs
a)direct
b)indirect

Back 7

a)pharmacy license
b)rent

Front 8

Semi-fixed costs
a)direct
b)indirect

Back 8

a)pharmacist salary (b/c you can add more DPh's)
b)adverstising

Front 9

Variable Costs
a)direct

Back 9

Rx vials

Front 10

Differential Analysis

Back 10

compares differential (marginal) revenue w/ the differential (marginal) cost of dispensing a Rx

Front 11

Contribution Margin

Back 11

Differential revenue - Differential cost

Front 12

Pro Forma Analysis

Back 12

projection of what the income statment would look like both if the contract was accepted or rejected

Front 13

Other considerations in evaluating a TP contract (5)

Back 13

1)consumer impact
2)pharmacy image
3)impact on Private Pay customers (cost shifting)
4)signal to other TP plans
5)effect on other store sales

Front 14

Cost shifting

Back 14

raise cash prices (U&C) to make up for lost revenue (doesn't work b/c not enough people pay cash)

Front 15

Accept Assignment (TP contract terminology)

Back 15

pharmacy agrees to not charge the pt any additional monies (not even for delivery)

Front 16

Most favored nation clause (TP contract terminology)

Back 16

pharmacy agrees to extend their lowest reimbursement rate to that TP

Front 17

All-Products Clause (TP contract terminology)

Back 17

pharmacy agrees to participate in all of the TP's plan

Front 18

Discount Cards (TP contract terminology)

Back 18

cash paying pts get the TP reimbursement rate formula

Front 19

Responding to Reduction in TP reimbursement (3)

Back 19

1)incr Rx volume
2)cognitive services
3)decr expenses

Front 20

Future TP reimbursement issues (2)

Back 20

1)decline in TP reimbursement rate
2)incr focus on multi-source medications

Front 21

STRATEGIC PLANNING
a)purpose
b)def
b)steps (8)

Back 21

a)ensure organization is doing the right things now and in the future
b)selecting organizations goals, determining policies/programs needed to reach these goals and establisihing methods necessary to ensure policies/programs are implemented


1)define the planning process to a single purpose
2)assess the current situation
3)selecting goals
4)ID strategies to reach these goals
5)est. objectives that support progress toward goals
6)define responsibilities and timelines for each objective
7)write/communicate the plan
8)monitor progress toward meeting goals/objectives

Front 22

Vision?
Vision Statement? (3)

Back 22

a)what the pharmacy org wants to be @ some future time point

b1)should make people THINK and should MOTIVATE people to strive for something greater
b2)RESONATES/INSPIRES
b3)is for employees

Front 23

Mission?

Mission statement
a)def
b)answers what Q's? (2)
c)for who?
d)characteristics of one (3)

Back 23

a)purpose of the company

b1)defines what the company does or is OR atleast what it should be
b2)what do we do? what should we be?
c)patients/customers
d1)short in length
d2)help differentiate from other co's providing similar services
d3)focuses on common purpose of organization

Front 24

PrePlanning phase (STRATEGIC PLANNING PROCESS) (2)

Back 24

1)steps necessary to organize the strategic planning effort
2)planning for the planning

Front 25

Planning Phase (STRATEGIC PLANNING PROCESS) (2)

Back 25

1)ideas actively generated for the pharmacy organization
2)also called strategizing

Front 26

PostPlanning phase (STRATEGIC PLANNING PROCESS) (3)

Back 26

1)communicating the plan
2)implementing the plan
3)monitoring progress once the plan is implemented

Front 27

Autocratic leaders

Back 27

1)make all decisions and allow for NO (or little) input from employees

Front 28

Democratic leaders

Back 28

consult w/ their subordinates and allow them some input in the decision making process

Front 29

Laissez-faire leaders (2)

Back 29

1)allow employees complete autonomy
2)employees set own goals and work toward them w/ no direction from management

Front 30

TP's def of Management/Leadership

Back 30

Management deals w/ things, Leadership deals w/ people

Front 31

Characteristics of Principle Centered Leaders (9)

Back 31

1)continually learning/reading/training
2)service-oriented
3)radiate positive energy
4)believe in other people
5)lead balanced lives
6)see life as an adventure
7)synergistic
8)exercise for self-renewal
9)improve any situation they get into

Front 32

Universal Mission Statement
a)what is it
b)def the last 2words in it
c)involves 3 other things

Back 32

a)"To improve the economic well-being and quality of life of all STAKE-HOLDERS"
b)who suffers if pharmacy fails?
c1)ecological balance
c2)short and long term prospective
c3)personal sense of stewardship

Front 33

What is a Level 5 Leader? (2)

Back 33

1)channel ego needs away from themselves and into the larger goal of buidling a great company
2)Their ambition is first and foremost for the institution, NOT themselves

Front 34

Strategic planning =

Back 34

long term planning

Front 35

Assets equation =*****

Back 35

Liabilites + Owner's Equity

Front 36

Planning? (5 KEY PURPOSES OF BUDGETING SYSTEMS) (2)

Back 36

1)enumerate a plan of action
2)forces you to anticipate what may occur in the future

Front 37

Supporting communication and coordination (5 KEY PURPOSES OF BUDGETING SYSTEMS) (5)

Back 37

1)manager must be aware of plans made by others within the organization
2)strive to establish credibility
3)frame goals on common ground
4)vividly reinforce his position
5)connect emotionally with team members

Front 38

Assigning resources (5 KEY PURPOSES OF BUDGETING SYSTEMS) (2)

Back 38

1)resources are limited
2)budgets provide a means of assigning resources among competitive uses

Front 39

Benchmarking (5 KEY PURPOSES OF BUDGETING SYSTEMS)

Back 39

1)budget serves as a useful benchmark w/ which actual financial results can be compared

Front 40

Assessing Performance and conferring rewards (5 KEY PURPOSES OF BUDGETING SYSTEMS)

Back 40

1)comparing actual results w/ budgeted results helps managers eval the performance of individuals/departments

Front 41

Budgeted income statment, budgeted balance sheet, budgeted statement of cash flow are used to...(at the end of the year)

Back 41

generate next year's sales revenus budget

Front 42

Core of time management is...

Back 42

ORGANIZATION

Front 43

First 2 steps in Practice of time management are....

Back 43

1)recognize the need for improvement
2)conduct honest self-reflection of how you currently use your time

3)set goals
4)get orgzind
5)just do it
6)reveiew, revise, modify

Front 44

Professional Recognition STRESS 5ex

Back 44

1)not being challenged by work
2)feeling that opportunities for advancement on the job are poor
3)not being able to use your abilities to the fullest extent on the job
4)not being allowed to participate in making decisions about your job
5)feeling that you are inadequately paid as a health professional

Front 45

Patient Care Responsibilites STRESS 5ex

Back 45

1)caring for emotional needs of pts
2)caring for terminally ill pts
3)dealing w/ difficult pts
4)feeling ultimately responsible for pt outcomes
5)trying to meet secoety's expectations for high-quality medical care

Front 46

Job Conflicts STRESS 5ex

Back 46

1)conflicts w/ coworkers
2)conflicts w/ supervisors
3)have so much to do that everything canNOT be done well
4)not having enough staff to provide necessary services adequately
5)having job duties that conflict with family responsibilities

Front 47

Professional Uncertainty STRESS 5ex

Back 47

1)being inadequately prepared to meet the needs of pts
2)not knowing what type of job performance is expected
3)possessing inadequate info regarding a patient's medical condition
4)fearing that a mistake will be made in treatment of a pt
5)not being recognized/accepted as a true health professional by other health professionals

Front 48

In Conducting an Honest Self Reflection/Analysis of How You Currently Use Your Time
a)useful tool for it
b)questions to ask with regard to each activity you do (4)
c)questions about how your time is spent (4)

Back 48

a)time journal (be honest about it)

b1)why am i doing this?
b2)what is the goal?
b3)why will i succeed?
b4)what will happen if i choose not to do it?

c1)what am i doing that dose NOT really need to be done?
c2)what am i doing that could be done by someone else?
c3)what am i doing that could be done more efficiently?
c4)what do i do that wastes other time?

Front 49

GROSS MARGIN RATIO MEANING (4)

Back 49

1)percent of each sales dollar to be put toward operating expenses, taxes, profits
2)measure of average markup on products
3)indicates efficient purchasing
4)HIGHER IS BETTER

Front 50

NET PROFIT RATIO MEANING (3)

Back 50

1)percentage of each sales dollar that is kept as profit after operating expenses and taxes
2)this profit is the money used to reinvest in the company
3)HIGHER IS BETTER

Front 51

CURRENT RATIO MEANING (5)

Back 51

1)ability of comany to pay short term debt
2)normally b/w 2-5
3)less than 2= not enough assets to cover liabilities
4)over 5= may not be efficiently using assets
5)higher is NOT always better (but could be if you are saving up for a large expenditure)

Front 52

DEBT-TO-TOTAL ASSETS RATIO MEANING (3)

Back 52

1)ability to pay long-term debt
2)normally around 40%
3)high is not always better

Front 53

INVENTORY TURNOVER RATIO MEANING (5)

Back 53

1)measure of how many times inventory is cycled per time period
2)normally 5-10 w/ efficient pharmacies being greater than 10
3)incr turnover means less cash tied up w/ inventory sitting on shelves
4)BUT incr out-of-stocks may affect customer retention
5)higher is NOT always better (but if you are good at judging purchases it is!)

Front 54

Sales/Revenue budget (2)

Back 54

1)starting point for any master budget
2)based on a sales forecast of products/services

Front 55

Sales Expense budget (2)

Back 55

1)fits together the desired sales revenues with the projected sales expenses
2)ITEMIZES all expense items involved in the sale of a Rx and nonRx products/services

Front 56

Production Budget (3)

Back 56

1)detailed plan for using basic factors (material, labor, overhead) to produce a product/service
2)begins w/ sales forecast so that the number of products to be produced can be estimated
3)involves manufacturing, dispensing, professional services

Front 57

Cash Flow Budget

Back 57

forecast of cash receipts and cash payments for the budget period

Front 58

Job Characteristics theory encourages 3 basic psychological states

Back 58

1)experienced meaningfulness of work
2)responsibility for outcomes
3)knowledge of work outcomes

Front 59

Core job characteristics to accomplish these goals in last NC (5)

Back 59

1)skill variety
2)task identity
3)task significance
4)autonomy
5)feedback

Front 60

Task Identity? (answer as a question)

Back 60

To what degree does the work require performing a complete set of interventions or tasks for which the employee is responsible?

Front 61

Task Significance? (answer as a question)

Back 61

To what degree are the tasks performed highly significant for the well-being of others and for the organization?

Front 62

Feedback? (answer as a question)

Back 62

To what degree does the work provide feedback about the outcomes of effort independent of supervisors or coworkers?

Front 63

Skill Variety? (answer as a question)

Back 63

To what degree does the job require a variety of tasks that demand a greater knowledge and skills for which the employee has been educated?

Front 64

Autonomy? (answer as a question)

Back 64

To what degree can the employee exercise independent judgment in performing the work

Front 65

Managers must have a basic awareness of... (8)

Back 65

1)knowledge of employee stress
2)career development
3)diversity
4)significant factors in human relations management
5)employee satisfaction
6)job-related stress
7)career programs
8)fairness in the workplace

Front 66

Why must a manager have a basic awareness of these things? (2 and last one has 4)

Back 66

1)early ID of problems and challenges and effective monitoring in consultation w/ human resources are integral parts of the routine fxns of management
2)significant factors in overall health and effective fxning of organizations (employee satisfaction, job-related stress, career programs, fairness in workplace)

Front 67

Optimal pharmaceutical care practice environment (3)

Back 67

1)redesign work environment to create instrinsically enriched situations
2)make public see and learn value of pharmaceutical care
3)meet expectations and needs of clinically trained pharmacists

Front 68

Generation dynamics
a)Baby Boomer
b)Generation X
c)Millennials

Back 68

a)1946-1964
b)1965-1980
c)1981-1999

Front 69

Tasks associated with HRM? (5)

Back 69

1)recruiting
2)hiring
3)training
4)developing
5)firing employees

Front 70

____ is the primary piece of legislation affecting HRM practices (and purpose of legislation) (2)

Back 70

Federal Civil Rights Act of 1964

1)protect workers from certain employer practices and biases
2)prohibit discrimination in employment hiring, promotion, compensation, and treatment of protected employee groups

Front 71

EEOC does what? (2)

Back 71

1)has authority to monitor discrimination and file lawsuits to correct discriminatory practices in workplace
2)every process of HRM is influenced in some way by EEOC oversight

Front 72

HRM def

Back 72

process of achieving organizational objectives through the management of people

Front 73

What pharmacists want in a job? (4)

Back 73

1)autonomy
2)respect
3)security
4)self-worth

Front 74

Poor fit between the person, the job and the organization's culture leads to.... (4)

Back 74

1)overwork
2)stress
3)wasted time
4)eventual employee turnover

Front 75

___ and ___ are two of the most important tasks of a manager and why (3)

Back 75

1)recruitment
2)placement

1)choosing the wrong employee is expensive if they leave after a short time
2)this is due to cost of training, selecting, recruiting a replacement
3)and money lost from lost business, lower productivity

Front 76

Hiring expensive b/c... (4)

Back 76

1)hiring an unproductive employee or one w/ personal problems can be a nightmare
2)may be able to keep their job riding the line b/w minimal acceptability and termination
3)can sow conflict and make workplace unenjoyable
4)take up managerial time with counseling, dispute, oversight

Front 77

Proactive recruitment occurs when employers... (4)

Back 77

1)continually recruit and network
2)maintain a pleasant work environment where people want to be employed
3)establish a positive image in the minds of potential recruits
4)continuous activity that takes place regardless of whether a position is open or not

Front 78

Advertising as recruiting (process) (4)

Back 78

1)decide how big of a net to cast for potential employees
2)local, regional, or national?
3)more people reached by the ads the greater the cost
4)depends partly on the amount budgeted for advertising the position

Front 79

Resumes in recruiting (5)

Back 79

1)look for accomplishments and credentials on which you want the candidate to expand
2)note frequent job changes
3)gaps in employment
4)demotions
5)inconsistencies and incompleteness

Front 80

Purpose of job description in recruiting

Back 80

form basis of interview questions

Front 81

Interviewing addresses what questions (3)

Back 81

1)can this person do the basic job
2)will the candidate make my job easier
3)would I want to work with this person

Front 82

Reasons why employees do NOT always do what they are supposed to do... (8)

Back 82

1)do not know what they are supposed to do
2)do not know why they should do it
3)think something else is more important
4)no positive consequences for them doing it, no negative consequences for them not doing it
5)rewarded for not doing it
6)punished for doing what they are supposed to do
7)are not and will never be capable of performing as desired
8)have personal problems that get in the way

Front 83

Training vs. development

Back 83

T)meant to improve employee performance with current tasks and jobs (ACUTE)

D)prepares employees for new responsibilities and positions. (LONG TERM)

Front 84

What makes people stay at a certain company? (8)

Back 84

1)career growth, learning and development
2)exciting work and challenge
3)meaningful work, making a difference and a contribution
4)great people @ work
5)being part of a team
6)good boss
7)recognition for work well done
8)fun on the job

Front 85

Day-to-day performance feedback (3)

Back 85

1)verbal/visual messages provided daily to employees
2)done thru conversations, body language and behaviors
3)most effective performance feedback b/c it is immediate and often

Front 86

Annual or Semiannual performance reviews (4)

Back 86

1)annual performance reviews act as long term planning sessions
2)managers help employees review their previous progress
3)identifies successes and areas that need improvement
4)establish goals and objectives for the next year

Front 87

Ad hoc performance reviews (3)

Back 87

1)designed to provide recognition for outstanding performance
2)may be accompanied by some award or gift
3)bad ad hoc's are designed to address unacceptable behavior or performance

Front 88

Progressive Discipline (3)

Back 88

1)series of acts taken by management in response to unacceptable performance by employees
2)escalate the consequences of poor employee performance incrementally w/ a goal of improving that behavior
3)consists of verbal warning, written warning, suspension, termination

Front 89

Verbal warning

Back 89

formal oral reprimand about the consequences of failing to perform as expected

Front 90

Written warning (2)

Back 90

1)formal step in progressive discipline that may result in eventual discharge of the employee
2)is a legal document

Front 91

How to make termination of an employee easy (3)

Back 91

1)provide clear performance standards
2)procedures for progressive discipline are observed
3)every step leading up to the termination must be appropriate and documented

Front 92

Performance appraisal
a)def
b)opportunity to: (4)

Back 92

a)formal assessment of how well employees are performing their jobs

b1)communicate mission and goals
b2)est. informal channels of communication
b3)method on which to base organizational rewards
b4)tool to improvement of job performance

Front 93

Role stress has 2 components and each def

Back 93

Role ambiguity- when employee is unsure about his responsibilities

Role conflict- simultaneous occurrence of 2 or more role expectations

Front 94

___ diminishes prevalence of role stressors

Back 94

have a performance appraisal system in place

Front 95

Principal reason for conducting appraisals is to....

Back 95

enhance performance

Front 96

LEGAL rationale for implementing effective performance appraisals (2)

Back 96

1)title 7 of civil service reform act
2)age discrimination in employment act

Front 97

COMMUNICATIVE rationale for implementing effective performance appraisals (3)

Back 97

1)ensurers understanding of performance expectations by managers and staff
2)provides formal means for employees to voice concerns and make suggestions
3)indicates management's commitment to open dialogue and fairness

Front 98

PRODUCTIVITY OF LABOR rationale for implementing effective performance appraisals (3)

Back 98

1)mitigates turnover
2)assists employees with career planning
3)provides direction on how to improve

Front 99

EQUITY IN REWARDS rationale for implementing effective performance appraisals (3)

Back 99

1)provides recognition for past service
2)helps to establish support for terminating "problem" employees
3)provides a means for accurate and equitable distribution of rewards

Front 100

OTHER MANAGERIAL FXNS rationale for implementing effective performance appraisals (3)

Back 100

1)supplies evidence to review organizational and systems problems
2)provides data on recruitment and selection procedures
3)IDs deficiencies in orientation and training probs