Departmental Facts of Alembic Ltd.

23

ORGANIZATION CHART OF ALEMBIC LTD

E.A. TO C.M.D.

GENERAL MANAGER

(ACCOUNTS & AUDITS)

GENERAL MANAGER

(FINANCE)

GENERAL MANAGER

(I. T.)

GENERAL MANAGER

(D.P)

MANAGER

(COSTING)

DY. MANAGER

(STORES)

SR. VICE PRESIDENT

(MIS)

GENERAL MANAGER

(FILED HR)

DY.GEN. MANAGER

(HRM)

DY. GEN. MANAGER

(I. R.)

VICE PRESIDENT

(HRM)

VICE PRESIDENT

(TECHNICAL)

GENERAL MANAGER

(INTERNATIOINAL

MARKETING)

GENERAL MANAGER

(MANUFACTURING)

SR. VICE PRESIDENT

(PHARMA)

GENERAL MANAGER

(PHARMA

MARKETING)

DIRECTORS - SALES

(4 - ZONAL SALES

COMPANIES)

GENERAL MANAGER

(GENERIC SALES

& FRANCHISEE)

GENERAL MANAGER

(SPECIALITY DIVN.)

DY. GEN. MANAGER

( Medical Services)

DY. GEN. MANAGER

(DISTRIBUTION)

DY. GEN. MANAGER

(SALES TRAINING)

VICE PRESIDENT

( Sales & Mktg-

Dom. Form. Bus.)

VICE PRESIDENT

(API -

MANUFACTURING)

VICE PRESIDENT

(DARSHAK MFG.)

VICE PRESIDENT

(API - MARKETING)

GENERAL MANAGER

(ENGINEERING

SERVICES)

PRESIDENT

(API Business)

VICE PRESIDENT

(R & D)

Sr. VICE PRESIDENT

(Res. & Bus. Dev.)

DY. G.M.

(PURCHASE)

SR. MANAGER

(PURCHASE)

MANAGER

(PURCHASE)

VICE PRESIDENT

(PURCHASE)

SR. MANAGER

(LIAISON)

RESIDENT DIRECTOR

(DELHI OFFICE)

VICE PRESIDENT

(VET MARKETING)

WHOLE TIME DIRECTOR

(Mrs. Malika Amin)

CHAIRMAN & MANAGING DIRECTOR

(Mr. Chirayu Amin)

26

ORGANIZATION CHART OF MARKETING DEPARTMENT

West North East So

General Manager

Product and Sales

Manager

Sales Executive Product

Officers

Clerk and Staff

Marketing Manager

Regional Officers

Regional Manager

Staff Officer

Sales representatives

27

KEY MARKET OF

ALEMBIC LTD

NEW MARKET OF ALEMBIC LTD

RUSSIA

NIGERIA

UKRAINE

MYANMAR

KENYA

UGANDA

TANZANIA

MALAYSIA

VIETNAM

SRI LANKA

AMERICA

CANADA

CONGO

SINGAPORE

GHANA

ZAMBIA

MOZAMBIQUE

MALAWI

CENTRAL AFRICA REGION

PHILIPPINES

FRANCO PHONE WEST AFRICA

ALEMBIC’S PRODUCTS

At present we have 90 brands with extension in various forms covering the therapeutic segments of Antibiotic, Cough & cold, NSAID, B-complex, C.V.Drugs etc.

Therapeutic segments Antiallergic

Anticold Preparation Anthelminitic

Antimalarials Antimicrobials

Antioxidants Antipyretics

Antiseptic Antispasmodic

Antiulcerants Cardiovascular Drugs

Corticosteroids Cough Preparations

Enzyme Preparation Mucolytics & Proteolytics

Nsaids Tranquiliser

Vitamin Preparations Others

28

DISTRIBUTION CHENNAL:

Pharma industries are passing through the keen competition where distribution is

playing dominant role.

Distribution department may efforts in such a way that there should not be situation of

scarcity of drugs and stock of medicine. As alembic has wide range of products and has

very wide market in domestic as well as international.

Central warehouse

Retailers Dispensing Doctors Hospital Institutions

Manufacture

Authorized Whole

Sellers

Central Warehouse

Carrying &

Forwarding

Agent(C.F.A)

Consumers

29

PRODUCT PROMOTION

The marketing promotion must consist of 5 major tools

1. Advertising

2. Direct Marketing

3. Sales Promotion

4. Public Relation

5. Publicity

6. Personal Selling

INTERNATIONAL MARKETING

There is too much difference between internal and international marketing.

As there is much more competition of pharmaceutical products in country and abroad

also, before company enter in to exporting it has to develop and effective network of

promotion and distribution in South East Asia and Africa and other country of the world.

Alembic exports following products

Penicillin injectables

Antibiotic formulations

Cough and cold remedies

Bulk drugs

Generic injectables

SALES TURNOVER Alembic Crossed Rs. 1,200 Crore in 2009-10 Aiming to Cross Rs. 2000 Crore in Next TWO years.

31

ORGANIZATION CHART OF FINANCE

Manager

President

General Manager

Sr. Manager

Manager

Deputy Manager

Assistant Manager

Sr. Executive

Executive

32

BASIC FINANCIAL FUNCTIONS FOLLOWED AT ALEMBIC

1. Accounts

2. Indirect taxation

Taxes which are indirectly levied from the end user that is individual or a company

by the government.

Excise

Service Tax

Export Benefits / EXIM policy

Sales tax / Value Added Tax (VAT)

Business Finance

3. Business finance

4. DIRECT TAXES

5. INSURANCE

6. SECRETARIAL AND LEGAL PRACTICES

Business Finance

International Domestic

(Formulation)

34

HR OVERVIEW

Human resource management (HRM) is the strategic and coherent

approach to the management of an organization's most valued assets -

the people working there who individually and collect ively contribute to

the achievement of the objectives of the business. The terms " Human

Resource Management" and "Human Resources" (HR) have largely

replaced the term "personnel management" as a description of the

processes involved in managing people in organizations. In simple sense,

HRM means employing people, developing their capacit ies, ut i l izing,

maintaining and compensat ing their services in tune with the job and

organizational requirement.

Human Resource Management (HRM) is the function within an

organization that focuses on recruitment, management and providing

direction for the people who work in the organization. Hum an Resource

Management is the organizational function that deals with issues related

to people such as recruitment, salary and wages, performance

management, wellness, benefits, employee motivat ion, communication,

organization development & change, adminis tration, training and safety.

35

HR PHILOSOPHY AT ALEMBIC

Alembic firmly believes that Human Resource is the most important valuable resource.

From its inception itself, the company has unhesitant invested in updating capabilities of

HR including development of human values and potential through focused learning and

developmental activities. The belief of Alembic is to groom talents internally and retain

them by offering promising career opportunities.

HRM FUCTIONS AT ALEMBIC

• Recruitment / Sourcing of candidates ( Internal/External)

• Head Hunting

• Placement

• Induction

• Performance Appraisal

• Training & Development

• Personnel Research

• Organizational Development

• HRMIS

• Organizational Communication

36

HUMAN RESOURCES AT ALEMBIC

ORGANIZATION CHART OF HUMAN RESOURCE DEPARTMENT

Whol

Recruitment & Employee Service Administration Industrial Relation Selection

General Manager

Sr. Manager

Executive

Assistant General

Manager

Deputy Manager

Executive

Sr. Manager

Executive

General

Manager

Mana Sr. Manager

Assistant

Manager

Sr. Executive

Executive

Whole Time Director

37

TOTAL EMPLOYEE STRENGTH-5086

PRESIDENT 1

DIRECTOR 5

SR. VICE PRESIDENT 1

VICE PRESIDENT 8

AREA MANAGER 370

GENERAL MANAGER 20

ASSISTANT GENERAL MANAGER 18

DEPUTY GENERAL MANAGER 15

SENIOR MANAGER 154

ASSISTANT MANAGER 124

DEPUTY MANGER 72

MANAGERS 74

REGIONAL MANAGER 154

EXECUTIVE VICE 1

SR EXECUTIVE 386

JR EXECUTIVE 258

EXECUTIVE 557

SR OFFICER 3

OFFICER TRAINEE 82

STAFF 45

STAFF SUPPORT 2

SR MEDICAL REPRESENTATIVE 10

MEDICAL REPRESENTATIVE 1545

PROBATIONARY MR 478

TRAINEE MR 146

NATIONAL SALES MAN 4

ZONAL SALES MAN 29

WORKERS 524

38

STRENGTH OF HRM DIVISION-36

PRESIDENT 0

VICE PRESIDENT 0

GENERAL MANAGER 2

ASSISTANT GENERAL MANAGER 2

DEPUTY MANAGER 2

SENIOR MANAGERS 3

ASSISTANT MANAGERS 3

SR. EXECUTIVES 11

EXECUTIVES 13

Human Resource department at Alembic is divided into three major

HR sub functions namely – (i) Recruitment & Selection (i i) Employee

Service, (i i i ) Industrial Relat ions and ( iv) Administration.

(i) Recruitment & Selection:

Recruitment & select ion

RECRUITMENT:

Recruitment refers to the process of attracting, screening and select ing

qualif ied people for a job at an organization or f irm. For some components

of the recruitment process, mid and large -size organizations often retain

professional recruiters or outsource some of the process to recruitment

agencies.

There is a Recruitment module in HRIS at Alembic for whole

recruitment process. The module is designed in a way which covers al l the

Recruitment Selection

39

aspects of recruitment start ing from man power mapping to select ion

process and joining of the selected candidate.

Recruitment process is being done by the personnel department on

the basis of the need of manpower in respective department. It starts after

promotion, death, resignation & requisit ion of some employees. Moreover

expansion creates vacancy so to f i l l th is vacancy recruitment is

necessary.

Recruitment process is carried out by two ways as follows:

Recruitment

Internal External

Internal Recruitment:

It is carried out through promotion of worker and transfer within alembic

group and again company‟s Notice Board is used for worker level.

External Recruitment:

It is carried out through Campus interview, Advert ising, Job portals,

Consultants, Data ban

Steps in Recruitment Process

Internal External

Recruitment Process

Manpower Planning

Manpower Budgeting

General Recruitment

40

Recruitment Expenses

SELECTION:

The selection procedure is concerned with securing relevant information

about an applicant. For the company the objective behind the selection

procedure is to determine whether an applicant meets the qualif icat ion for

a specif ic job and to choose the applicant who is l ikely to perfo rm well in

the job.

The company does selection procedure. Company also invites

people faraway from Baroda. But the f irst priority of the company is to

select the local people because of ease in accommodation & adjustment. I

Recruitment Expenses

Travelling Expenses

Consultant's Expenses

Advertisement Expenses

Others / Misc. Expenses

Joining Expenses

41

Depending on the position/s, recruitment process may consist of:

Recruitment

Process

Staff

Trainees

Staff Officer /

Mngt.

Trainees

Officers Asst. Mgrs

/ Mgrs

Sr. Mgrs

to GMs

VPs

and

above

Subject Test

Group

Discussion

Preliminary

Interview

Final Interview

Psy. Tests

(ii) Employee Services:

Employee Services is the support ing back bone to

other sub-functions of HR like recruitment, Industrial Relations. Because

of the importance of non-industrial employment relat ionships, employee

services have become one of the most important sub functions. It deals

with maintaining al l the data pertaining to employees as well as workers,

their salary & wages, attendance & leave, compensation & other benefits,

Performance management & rewards , Promotion & Transfer. Employee

Services at Alembic uses HRIS (oracle based software) to maintain data

such as employee data, employee personal data, Salary, Attendance &

Leave, Data pertaining to P.F, Gratuity , nominations and other statutory

details.

42

JOINING FORMALITIES:

The below stated formalit ies is for all the new recruits who join the

services of company whether regular, temporary, contractual or trainees.

All the formalit ies need to be completed on the f irst day of their join ing

the services of the company.

Joining Formalities

Induction

Training &

Management Development

Time Keeping System

Attendance &

Leave System

Wage & Salary System

Employee Services

Promotion & Transfer

Performance Management

System

43

Steps In Joining Formalities

Filling up Provident Fund Transfer form

Complete ESIC forms in case your monthly salary is less than Rs.6500 per month

Filling up Provident/ Family Pension Nomination form

Submit signature on Identity Card

Filling up joining Report and Personal Bio Data form

Filling up Nomination form under payment of Gratuity, PF, Family Pension and ESIC.

Filling up the form Employee Death Relief Fund

Filling up HRIS form

Submit a declaration whether you have any relatives associated with company or not

Filling up the Zero Account Balance Bank Opening form and Submit the same along with a photograph

Submit the following documents: Copies of educational certificates, 4 Ticket size and passport size, Experience letter from all previous employers as specified during interview process

44

On the completion of the joining formalities HR MANAGER (Corporate) ensure the

following

Issuance if Appointment letter on the same day and explain him that how will

each component of his salary as specified in the offer letter can be claimed by

him.

Issuance of Employee Code Number as per enclosed format.

Issuance of Identity card.

Issuance of Attendance Card.

In case the new recruit is committed allocation of House in Alembic Colony, at

the time of salary negotiation.

Paid Holidays in a year- 06 festival holidays.

Paid Holidays may be compensated by working on a preceding/succeeding

Sunday so as to meet requirements of the continuous process.

INDUCTION:

Induction is a technique by which a new employee is rehabilitated into charged

surrounding and introduced to the practices, policies & purpose of the organization.

The induction program is dividing in to six steps:

1. Pre placement talk given by the managerial level people.

2. Induction kit – Welcome letter by Vice president from HR department.

3. Induction schedule is explained.

4. A person is taken to all other department and introduced to all other persons by

the trainee officer.

5. A person is taken on a visit to plan and administration building.

6. A various facilities given by the company is explained.

45

TRAINING AND MANAGEMENT DEVELOPMENT:

TRAINING:

Company imparts training for development of its employees at all levels through

arranging different training programmes. These programmes consist of lectures,

classroom teaching, seminars, on-job / off-job training etc.

Training

Internal External

Other than that training is also provided to the needy people. The training coordinator

gives feedback.

MANAGEMENT DEVELOPMENT:

In company development is a related process. It covers not only those activities that

improve job performance but also those, which bring about growth of the personality,

help individuals in the process towards achieving their goals.

The development is done through:

Communication & Interaction with the top level people on a popular topic.

Intradepartmental Meeting held by HR.

Industrial tour (mainly to Glass Industries) within India

Technical Non Technical

Training programmes on Documentation,

Regulatory requirements, New Instrumentation

training

English speaking, Computer awareness,

Personality Development, Business Communication

46

TIME KEEPING SYSTEM :

Time keeping system is necessary for any company. With the help of this

system the company can manage well its employees. Time keeping means

what is the working t ime of employee and exit t ime. It is usually

maintained for the regularity of the employees.

Alembic adopted computerized electric and punching

machine for the time keeping system. Here card us given to each and

every employee. They are given password to check their attendance and

other information like their name, day worked, working dept etc.

Here computer recognized particular employees by the

number of his card only. When once card given to an employee it can

never changed at any cost, why t ime computer notes exact t ime of

punching whether late of early. They do not consider small dif ference in

entrance and exit t ime on the salary or wage point of view.

The whole time keeping system is handled by personnel departmen t, there

are four types shif ts.

General shif t - 7:30am to 4:00pm

First shif t 7:00am to 3:30pm

Second shif t 3:30pm to 11:00pm

Third shif t 11:00pm to 7:30am

Snacks & tea is provided twice in each shif t at regular interval.

For the refreshment t ime available are as follows:

Off icial lunch t ime 1:00pm to 1:30pm

Tea and breakfast available 9:30am to 10:00pm in f irst and general shif t.

47

FLEXIBLE WORKING HRS :

Corporate and Alembic Research Center – 5 days working

Particulars details

Punch in t ime 8.30 am to 9:30 am

Punch out t ime 6:00 pm to 7:00 pm

Lunch time 1:00 pm to 1:30 pm

Total minimum working hrs 9 & half hrs a day

Core working hrs 9:30 am to 6:00 pm (f lexibi l ity of

1 hour before or after core hrs)

NON FLEXIBLE WORKING HRS: 6 days working

units/ locations

Shif t Schedule

General f irst second third Lunch break for

general shif t

API Vadodara

8:00 to

16:30

7:00 to

15:00

15:00 to

23:00

23:00 to

7:00

12:15 to 12:45

API Panelav

Formulat ion

API karakhadi

8:30 to

17:00

7:00 to

15:00

15:00 to

23:00

23:00 to

7:00

12:30 to 13:00

48

ATTENDANCE SYSTM:

In Alembic Ltd the attendance system works very systematical ly. Use of

punch card system and use of gate pass system is at work presently.

Punch card system:

With the help of punch card employees can mark their t ime in and time by

computerized system. There is a dif ference between going out for

personal work & for off icial work. Employees can check their in -out t imes

(total working time during a whole day) online on My Alembic website

Gate pass system;

Gate pass system is necessary for workers to go out from the company

and for visitors.

LEAVE SYSTEM:

Leave system is done online through Intranet at Alembic. This system is

for all employees except workers. For leave applicat ion, employee is

required to f i l l up the online leave applicat ion form which is then mailed to

their superior. Upon approval of leave by superior , the same is formalized

automatical ly in the system.

3 types of leave:

Casual leave

Sick leave

Privi lege leave

49

WAGE & SALARY ADMINISTRATION :

Wage & salary Administration refers to the establishment and

implementation of sound policies of employee compensation. Top

management decides the wage rate for workers in dif ferent categories and

salary for the employees according to their designation. I t is also affect by

the attendance report, leave taken through the month and other factors if

leave is more than the permitted norms.

Wages for workers

Company pays wage to workers on every 6 th day of each month by cash

based on the strength.

Min Max

Unskil led 215 490

Semi skil led 267 790

Skil led 395 1150

Workers can get dif ferent benefits according to the levels.

Salary for staff

Salary is given to the employees or staff members on 1 s t day of each

month by bank & cheque system.

50

Salary Structure (Compensation Details)

Name: Position:

Location: Division:

No Salary Head Monthly Payable(Rs) Yearly Payable(Rs)

1 Basic

2 Company construct ion on PF

3 H.R.A

4 Transport Allowance

5 Domicil iary Medical

6 LTA

7 Supplementary Allowance

8 Advance Against Bonus

9 Hospital ization Insurance

Premium (Yearly)

10 Gratuity (Yearly)

11 Performance Pay (yearly)

Grand Total

Annual CTC / Gross Pay

Variable pay

[Basic-35% of CTC, HRA-40% of basic, PF-12% of basic, LTA- 8.33% of

basic, Gratuity-4.81% of basic]

Fixed Pay

[TA-800rs, Medical-1250, Hospitalization Premium-1940]

Note: Hospitalization premium varies according to level wise.

51

PERFORMANCE MANAGEMENT SYSTEM:

Company has a system of yearly performance. Normally this is done on a basis of over

& above routine work and what more benefit he or she has added to the development of

company. With the help of this system the employees can have their promotion.

PROMOTION AND TRANSFER

In the company promotion is done when vacancies exists according to the performance

and competency of an employee.

The promotion policy of the company is to take merit into consideration. Tenure of

service, education, training courses completed, previous job performance are given

weight while deciding on a promotion. Promotion is also made on the basis of ability,

hard work, co-operation, merit and honesty.

Employees in the company are liable to be transferred to any location or department

within the company as per the requirement of the management.

(iii) Industrial Relations:

Industrial relations is a multidisciplinary field that

studies the employment relationship. Many outsiders also equate industrial relations to

labor relations and believe that industrial relations only studies unionized employment

situations, but this is an over simplification.

Alembic HRIS has module for Industrial Relations sub-functions which helps in

maintaining and tracking data related to workers and contract workers, their wages,

overtime calculation, security, shift allocation and other data dealing with the employees

at factory.

52

TRADE UNION:

For the benefits and welfare of the workers at Alembic Ltd., they have set up a Trade

Union. The leaders of the trade union act as mediator between the management and

the workers to communicate problems and demands, if any.

GRIEVANCE HANDING

Grievance handling procedure is done through the top level people. They communicate

with the union and try to find out alternate ways to handle grievance peacefully and

easily. The company follows below discussed three ways for effective ways for effective

and quick handling of grievance:

1) Solved by way of Negotiation :

2) Through Grievance Machinery:

3) Through person sent by Government:

COLLECTIVE BARGAINING & AGREEMENT:

In Alembic Collective Bargaining & Agreement takes place between management

people & Union people in following cases:

Demand by Union: For-Bonus, increase in Salary, etc.

In problem like strike

In case of theft

After Collective Bargaining, Settlement/Agreement will be made for demand & other

problems

Generally, Alembic Ltd. Tries to satisfy all needs of employees with due consideration

that if there will be any problem like strike generates than the settlement of it will be very

difficult hampering the growth of the company.

53

(iv) Administration:

In business, administration consists of the performance or

management of business operations and thus the making or implementing of major

decisions. Administration can be defined as the universal process of organizing people

and resources efficiently so as to direct activities toward common goals and objectives.

For Administration sub-function, the HRIS of Alembic contains modules for facilities like

canteen, Guest House, Colony Administration, Safety and other facilities

At Alembic Administration department imparts following functions:

Administration

Security

Housekeeping and Sanitation

The other functions of Administrat ion include

• Dispatch

• Colony Administrat ion

• Nursery

• Cantee

WELFARE ACTIVITIES:

FAMILY ASSISTANCE SCHEME

ANCILLARY ACTIVITIES

COMMUNITY SERVICES

OTHER ACTIVITIES

LIBRARY & INFORMATION SERVICES

GROUP‟S SOCIAL COMMITMENTS

CANTEEN SERVICES

ACCOMODATION FACILITY

FESTIVAL CELEBRATIONS

SOCIAL GATHERIN

54

HR POLICIES AT ALEMBIC LTD.

ATTENDENCE (WORKING HOURS) POLICY

ATTIRE POLICY

COMPANY ACCOMMODATION POLICY

FOREIGN TRAVEL POLICY

GRATUITY BENEFIT POLICY

GPA (GROUP PERSONAL ACCIDENT)

HRMS GROUP MEDICLAIM POLICY

HIGHER EDUCATION (QUALIFICATION) POLICY

PF POLICY

POLICY FOR LEAVE RULES

HR AUDIT

INTRODUCTION TO THE HUMAN RESOURCES AUDIT

The Human Resources (HR) Audit is a process of examining policies, procedures,

documentation, systems, and practices with respect to an organization‟s HR functions.

The purpose of the audit is to reveal the strengths and weaknesses in the nonprofit‟s

human resources system, and any issues needing resolution. The audit works best

when the focus is on analyzing and improving the HR function in the organization.

55

HR AUDIT AT ALEMBIC

At Alembic HR AUDIT means employee‟s documents checking

(employee‟s f i le), which includes following things:

Resume of the person

Applicat ion bank

Interview Assessment Sheet

Offer letter

Appointment letter

JOINING DOCUMENTS LIKE

Proof of birth date

Education cert if icate

Passport size & revenue size photographs

Relieving letter from the last employer

Last salary sl ip etc.

JOINING FORMS LIKE

Gratuity Nomination Form

EPS (Employee Provident Fund Scheme) Nomination Form

HRMS FORM

Death Relief Fund Form

Confirmation Report

OTHER DOCUMENTS

Confirmation letter

PA form for present year

Payment proof of any other PI, LTCB etc.

Promotion letter, if applicable

Loan applicat ion letter.

56

HRIS SYSTEM AT ALEMBIC

A human resource information system (HRIS) is a systematic procedure for collecting, storing, maintaining, retrieving and validating data needed by an organization about its human resources.

USES OF HRIS

1. Hr planning and analysis.

Absenteeism analysis

Job description tracking

2. Equal employment.

Affirmative action plan

Workforce utilization

3. Staffing.

Recruiting sources

Applicant tracking

4. Hr development.

Succession planning

Career interests and experience

5. Compensation and benefits.

Pay structures

Wage/salary costing

6. Health, safety, and security

Safety training

Accident records

7. Employee and labor relations.

Union negotiation costing

Auditing records

Exit interview analysis

Employee work history