PREFACE
A project report is the very important part of any management
programme. It is a Launch Pad for introducing students to a
real-life scenario, which cannot be simulated in the classroom. It
not only enables the student to apply the theoretical knowledge in
a practical scenario but also enables them to learn things beyond
books. This is a period where the students add value to them self
and learn management skills as well as the corporate culture.
Only academic knowledge is not enough for the students, it is
also necessary for them to have a slice of the practical corporate
world wherein they can apply their knowledge and put their skills
to a test. This is a first step towards corporate world.
A project report provides an opportunity for students, to
satisfy their inquisitiveness to know more details, exposes them to
technical skills, and helps them to acquire social skills by
drawing them into communication with outside professionals for
continuous interaction.ACKNOWLEDGEMENTThis report has been made
possible due to invaluable support of a number of people to whom I
owe my heartfelt gratitude and without whose help, I may not have
been able to complete this report.I would like to thank my all
teachers for extending full help in my project. His consistent
support and cooperation showed the way towards the successful
completion of the project.I would like to acknowledge the support
of my faculty guide, Mr. for his constant guidance in this project
and for providing me the necessary information whenever required.
Heartfelt thanks to other faculty members for their support and
co-operation.
Binod Kumar Lal
TABLE OF CONTENTSContentsPage No.
DeclarationCertificateAcknowledgement CHAPTER-I(i) Introduction(ii)
Significance of study(iii) Objectives of study(iv) Focus of
study(v) Conceptualization(vi) Research methodology (vii) Plan of
studyCHAPTER-II(i) Review of existing literatureCHAPTER-III(i)
Industry Profile(ii) Company ProfileCHAPTER-IV(i) Analysis and
Interpretation(ii) FindingsA. CHAPTER-V(i) Recommendations (ii)
Conclusion(iii) Limitations of studyBibliographyAnnexure
INTRODUCTION
In an ideal world, employees work hard, love their job, worship
their workplace, feel like a family and would never leave. But lets
look at the real world, where employee quite at the drop of a hat.
How can attrition be controlled?As the Indian pharmaceutical
industry grows exponentially, companies are taking the big leap
from survival strategy to competitive strategy. Hence, there is a
constant thirst for the best and the brightest of employees and the
result-heavy attrition.The main cause for the movement is lack of
motivation, increased expectation, and increased opportunity.
Attrition also happens when people hate their working conditions,
do not like their team-mates or perhaps do not like what they are
doing. Organizational culture has a great impact on who stays and
who goes. Also important of providing opportunities for development
of their employees or their career growth is an important factor in
employee attrition. Job misfit is also in the list of the
factors.Experts say that organization behavior is instrumental in
extending the tenure of employees in the organization as it
increases their self-esteem, confidence, morale and motivation. A
substantial growth of employees self-esteem is as important as the
concept of learning in the industry. Otherwise, expert fear that
pharmaceutical organizations will met a sorry fate as far as
retention policies are concerned.As the attrition rate is high in
the industry so in this study I tried to find out various factors
and reasons effecting the employees retention in Arbro
Pharmaceutical industry.
SIGNIFICANCE OF THE STUDY
This study explores all aspects of the workplace stability issue
with a focus on retaining employees. Employee retention is most
critical issue faced by corporate leaders as a result of the
shortage of skilled labor, economic growth and employee turnover.As
the Indian pharmaceutical industry grows exponentially, companies
are taking the big leap from survival strategy to competitive
strategy. Hence, there is a constant thirst for the best and the
brightest of employee and the result heavy attrition.After IT and
BPO, it is now the Pharma sector that is facing the issue of high
attrition rates. For most HR managers, employee retention is the
biggest challenge. Attrition is quit in the industry these days.
This year, we have witnessed almost 32 percent plus attrition. This
study is significant in explaining all the reasons and the possible
solution for the retention.
OBJECTIVES OF THE STUDY
To study attrition as the major problem in the present scenario
To study various HR practices and present condition in Arbro
Pharmaceutical Industry To study factors responsible for employee
attrition in Arbro Pharmaceutical Industry To study the
effectiveness of the retention practices adopted by Arbro
Pharmaceutical Industry
FOCUS OF THE STUDY
There are several problems faced by the employees that become a
challenge for HR as how to manage problems and to motivate
employees for not leaving the organization. The study says that the
attrition in Arbro Pharmaceutical Industry has become the major
issue. The focus of the problem is that how HR can retain employees
in this industry. The study will identify the cause and need to
fulfill the requirements of the employee.
CONCEPTUALISATIONTalent or human resource is a major asset for
any company. Company Invest high amount of money for their
recruitment, selection & training and what happens to company
if these Talents or Employees leave the organization in short while
seeking new opportunities. Indian Pharmaceutical Industry is one of
the fastest growing knowledge based sector with annual attrition
rate of near about 30-35% compared to the global Pharmaceutical
attrition rate of 10-12% per annum. Current statistics show that
higher attrition rate problem mainly exists in Marketing and
R&D departments."" Attrition rate in R&D is very high even
higher then marketing, the reason may be shortage of skilled and
experienced R&D professionals or increasing opportunities due
to globalization and R&D outsourcing in India which have
created a sudden demand for skilled research peoples. Major reasons
for high attrition rate stated by employees are poor management,
uninteresting job, lack of motivation, job lacking opportunity for
future advancement, and inadequate salary or compensation plan. The
immediate gain in salary package was found to be responsible for
job change in 61 per cent of the cases. Leaving company by the
employee not only leads to loss of money for the company in his
training and development of knowledge but it also increase the
threat of information security if employee moves to rival company
and loss of the business ( from the customers the employee directly
deals with) Talent or human resource is a major asset for any
company. Company Invest high amount of money for their recruitment,
selection & training and what happens to company if these
Talents or Employees leave the organization in short while seeking
new opportunities. Indian Pharmaceutical Industry is one of the
fastest growing knowledge based sector with annual attrition rate
of near about 30-35% compared to the global Pharmaceutical
attrition rate of 10-12% per annum. Current statistics show that
higher attrition rate problem mainly exists in Marketing and
R&D departments."" Attrition rate in R&D is very high even
higher then marketing, the reason may be shortage of skilled and
experienced R&D professionals or increasing opportunities due
to globalization and R&D outsourcing in India which have
created a sudden demand for skilled research peoples.
Major reasons for high attrition rate stated by employees are
poor management, uninteresting job, lack of motivation, job lacking
opportunity for future advancement, and inadequate salary or
compensation plan. The immediate gain in salary package was found
to be responsible for job change in 61 per cent of the cases.
Leaving company by the employee not only leads to loss of money for
the company in his training and development of knowledge but it
also increase the threat of information security if employee moves
to rival company and loss of the business ( from the customers the
employee directly deals with)Employee Retention involves taking
measures to encourage employees to remain in the organization for
the maximum period of time. Corporate is facing a lot of problems
in employee retention these days. Hiring knowledgeable people for
the job is essential for an employer. But retention is even more
important than hiring. There is no dearth of opportunities for a
talented person. There are many organizations which are looking for
such employees. If a person is not satisfied by the job hes doing,
he may switch over to some other more suitable job. In todays
environment it becomes very important for organizations to retain
their employees.
The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization.
Employees stay and leave organizations for some reasons.
Employee retentionEmployee retention is a process in which the
employees are encouraged to remain with the organization for the
maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as
the employee. Employees today are different. They are not the ones
who dont have good opportunities in hand. As soon as they feel
dissatisfied with the current employer or the job, they switch over
to the next job. It is the responsibility of the employer to retain
their best employees. If they dont, they would be left with no good
employees. A good employer should know how to attract and retain
its employees.
Retention involves five major things: Compensation Environment
Growth Relationship SupportEmployee retention would require a lot
of efforts, energy, and resources but the results are worth it.
Importance of employee retentionNow that so much is being done
by organizations to retain its employees, why is retention so
important? Is it just to reduce the turnover costs? Well, the
answer is a definite no. Its not only the cost incurred by a
company that emphasizes the need of retaining employees but also
the need to retain talented employees from getting poached.The
process of employee retention will benefit an organization in the
following ways:1. The Cost of Turnover: The cost of employee
turnover adds hundreds of thousands of money to a company's
expenses. While it is difficult to fully calculate the cost of
turnover (including hiring costs, training costs and productivity
loss), industry experts often quote 25% of the average employee
salary as a conservative estimate. 2. Loss of Company Knowledge:
When an employee leaves, he takes with him valuable knowledge about
the company, customers, current projects and past history
(sometimes to competitors). Often much time and money has been
spent on the employee in expectation of a future return. When the
employee leaves, the investment is not realized. 3. Interruption of
Customer Service: Customers and clients do business with a company
in part because of the people. Relationships are developed that
encourage continued sponsorship of the business. When an employee
leaves, the relationships that employee built for the company are
severed, which could lead to potential customer loss.
4. Turnover leads to more turnovers: When an employee
terminates, the effect is felt throughout the organization.
Co-workers are often required to pick up the slack. The unspoken
negativity often intensifies for the remaining staff.
5. Goodwill of the company: The goodwill of a company is
maintained when the attrition rates are low. Higher retention rates
motivate potential employees to join the organization.
6. Regaining efficiency: If an employee resigns, then good
amount of time is lost in hiring a new employee and then training
him/her and this goes to the loss of the company directly which
many a times goes unnoticed. And even after this you cannot assure
us of the same efficiency from the new employee.
What Makes Employee LeaveEmployees do not leave an organization
without any significant reason. There are certain circumstances
that lead to their leaving the organization. The most common
reasons can be:
Job is not what the employee expected to be: Sometimes the job
responsibilities dont come out to be same as expected by the
candidates. Unexpected job responsibilities lead to job
dissatisfaction. Job and person mismatch: A candidate may be fit to
do a certain type of job which matches his personality. If he is
given a job which mismatches his personality, then he wont be able
to perform it well and will try to find out reasons to leave the
job. No growth opportunities: No or less learning and growth
opportunities in the current job will make candidates job and
career stagnant. Lack of appreciation: If the work is not
appreciated by the supervisor, the employee feels de-motivated and
loses interest in job. Lack of trust and support in coworkers,
seniors and management: Trust is the most important factor that is
required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment
unfriendly and difficult to work in. Stress from overwork and work
life imbalance: Job stress can lead to work life imbalance which
ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other
companies may attract employees towards themselves. New job offer:
An attractive job offer which an employee thinks is good for him
with respect to job responsibility, compensation, growth and
learning etc. can lead an employee to leave the organization.
Employee Retention Tools In the present scenario, world is
turning into a global village and the whole globe is reachable from
any destination. In this small world even companies are reachable
to the people and vice versa. And so their jobs are also easily
accessible for everyone. In this situation, the biggest challenge
for a company is to retain its workforce intact especially the
Knowledge Banks.
All the companies are planning to increase their turnover every
moment of time. While in all this workout of increasing the
turnover they forget about their loss incurred by the resignation
of employees and the expenses of hiring new employees (Hiring Cost,
Training Cost, Productivity Loss etc.). This hiring of a new
employee normally costs around 35% or more of the average employee
salary. For example- let us consider average salary of an employee
per year as Rs.20, 000, and then the cost of hiring a new employee
and other expenses come around Rs.7, 000. If you have 2 employees
resigning per month the cost comes to Rs.14, 000 and taking the
same for 12 months comes to around Rs.168, 000, which is a direct
loss from the turnover of the company. And after all this there is
always a risk of getting a right employee for the right position
with a right attitude.
If an employee resigns, then good amount of time is lost in
hiring a new employee and then training him/her and this goes to
the loss of the company directly which many a times goes unnoticed.
And even after this you cannot assure us of the same efficiency
from the new employee (He might be better and might not be). You
require time to judge his capabilities and work nature. The loss is
even graver if he/she is Your Knowledge Bank, this can bring your
process to a standstill even. And above all these things, one
resignation many a times triggers a chain reaction among other
employees, leading to a negative effect.
For all these and many other reasons you need to retain your
employees. For retaining your employees, you need to understand the
requirements of the employees and at the same time should make them
clear about the expectations of the company from them. Its a
general human tendency that each human being thinks himself as
important and expects the same from the other side, so the company
management should make their employees accountable for their
respective jobs and make them feel that they are very important for
the smooth processing of that process(At the same time create a
backup for him). Care and importance are two things of which every
human being is mad of.
Below are few of the tools for Employee Retention:-
1. Employee Reward Program- You can make a provision of Monthly
or Quarterly Award (depending upon the budget) for the best
employee, Awarding 2 or 3 best workers each month. The award can be
in terms of gifts or money. If it is money then it should be
divided into two parts, first part to be given with the next month
salary and the remaining after 6 months. In this way he/she can be
retained for 6 more months. These rewards shall be considered at
the time of appraisal.
2. Career Development Program- Every individual is worried about
his/her career. You can provide them conditional assistance for
certain courses which are beneficial from your business point of
view. Conditional assistance means the company will bear the
expenses only if he/she gets an aggregate of certain percentage of
marks. And entrance to that course should be on the basis of a Test
and the number of seats to be limited. For getting admitted to such
program, You can propose them to sign a bond with the company, like
they cannot leave the company for 2 years or something after the
successful completion of the course.
3. Performance based Bonus- The employee always comes to know
about the profit of the company which is of course based on the
strategic planning of the top management and the productivity of
the employee. To get more work out of the employee, You can make a
provision of Bonus. By this employee will be able to relate himself
with the companys profit and hence will work hard. This bonus
should be productivity based. 4. Employee Referral Plan- You can
introduce Employee Referral Plan. This will reduce your cost
(charges of external consultants and searching agencies) of hiring
a new employee and up to an extent you can rely on this new
resource. On every successful referral, employee can be given a
referral bonus after 6 or 9 months of continuous working of the new
employee as well as the existing employee. By this you can get a
new employee at a reduced cost as well as are retaining the
existing one for a longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in
which you can reward your employee after a successful completion of
a specified period of time. This can be in the form of Money or
Position. This will encourage the fellow employees as well whether
they are interested in money or position, they will feel
fascinated.
6. Giving a voice to the Knowledge Banks- First of all you
should try to retain your workforce intact, as they are the
intellectual asset of the company. And above that you cant afford
losing your knowledge banks. These are the people who stabilize the
process. You can involve them in some of the decisions.
7. Employee Recreation- You should also let your employees enjoy
in a light mood. You can take your employees to a trip or for an
outing every year or bi-yearly. You can make use of this trip as
well. You can start this trip with an opening note about the
management views and plans, strategies etc. At the same time you
can involve your top management into some of the fun activities as
this will make feel the employees that they are very close to the
management and everybody is same.
8. Gifts at some Occasions- You can give some gifts at the time
of one or two festivals to the employees making them feel good and
understand that the management is concerned about them.
9. Accountability- You should make each employee accountable so
that he can also feel that he is as important as his manager. If
he/she will be filled with this sense, he/she will seldom think of
leaving the company.
10. Making the managers effective and easily accessible- You
should make the management easily accessible so that the employee
expectations can be clearly communicated to the top management, as
it is impossible for the top management to reach each employee
frequently.
11. Surveys- You should conduct regular surveys for feedbacks
from employee about their superiors as well as other issues like
food, development plans and other suggestions. This will make them
feel of their importance and the caring nature of the company. Some
of the suggestions might be of real good use for the company.For a
company, the workforce is like an intellectual property, both in
terms of skills and money. A trained and content workforce can lead
a company to new heights while a opposite one can hamper it badly.
So, every resignation saved is every dollar earned.
RESEARCH METHODOLOGY1) Descriptive & Exploratory Research
Methodology is adapted for this project work. The present study is
descriptive in nature, as it seeks to discover ideas and insight to
bring out new relationship. Research design is flexible enough to
provide opportunity for considering different aspects of problem
under study. It helps in bringing into focus some inherent weakness
in enterprise regarding which in depth study can be conducted by
management. Exploratory research is investigation of relationships
among variables without knowing why they are studied. It borders on
an idle curiosity approach, differing from it only in that the
investigator thinks there may be a payoff in the application
somewhere in the forest of questions.1) Source of data
collectionThe data was collected from both primary and secondary
sources.Primary sources:- Questionnaire Secondary sources:-
Websites Magazine Company record2) Universe
The universe of the study is Arbro Pharmaceutical Industry.3)
Sample size50 employees of Arbro Pharmaceutical Industry.
PLAN OF THE STUDYThe structure of present study is as follows:-
Chapter 1 covers the introduction of the study, significance of the
study, objectives of the study, focus of the problem,
conceptualization and plan of the study. The chapter also includes
research methodology containing the nature of research, sample size
and analysis pattern used to conduct the research. Chapter 2
explores the significant literature published on the present study
reflecting understanding of the relevant theoretical and empirical
background of the problem. Chapter 3 explains the industry profile
and company profile. Chapter 4 consists of data analysis and
findings. Chapter 5 of this study contains recommendations and
conclusions providing the end result of the study. The last part
gives the limitation of the study thus providing significant scope
for further research.
REVIEW OF LITERATUREThe literature clearly indicated that there
are six keys to retaining personnel. They arerecruiting,
communications, training, job satisfaction, pay, and
benefits.RecruitingThe effort to retain the best personnel begins
with recruiting. Attracting and retaining the best people are not
two different things, but are the same thing. Both require creating
and maintaining a positive reputation, internally as well as
externally. Employers must be honest with the recruit about the
beliefs, expectations, organizational culture, demands, and
opportunities within the organization. By representing the
organization realistically, a department will attract those who
will be content working within the culture (Marx, 1995). Denton
(1992, p.47) follows this up by stating that, the better the match
between recruits and the organization the more likely you are to
retain them. Lynn (1997) believes that you must take time during
the hiring process to make wise decisions. The employer must be
candid about the working conditions, responsibilities,
opportunities and other details to reduce the chances of making
hiring mistakes. Taylor and Cosenza (1997) strengthen this thought
by noting that it is imperative that companies give prospective
employees a true picture of the organization, if they hopeto match
the personality type with the climate and culture of the
organization.The literature was clear in pointing out that if
departments want to increase retention they muststart with a solid
recruiting process.CommunicationsCarney (1998) believes that the
key to employee retention is quite simple: communicate,
communicate, communicate. Communication with the employees must
begin early on in the relationship. He believes that the imprinting
period of a new employee is probably less than two weeks. Employers
must engage the employee early on by sharing how important the job
they do is. Lynn (1997) follows this up by stating that early on an
atmosphere of fairness and openness must be created by clearly
laying out company policies. Taylor and Consenza (1997) indicate
that it is important to communicate the values of the organization
to its employees in order to increase their level of consent,
participation, and motivation. Lynn (1997) echoes this thought by
pointing out that the vision of the organization must be shared
with the employee as well as the importance the employees play in
helping fulfill it.Lack of communication may result in gaps between
managements perceptions of quality employment and the employees
desired and perceived quality of employment (Taylor & Consenza,
1997). There must be a common purpose and trust among employees.
People want to feel as if they are a vital piece of something
larger (Carney, 1998). As Denton (1992) points out, managers must
make sure employees know what they should do and why it is
important.Lynn (1997) notes that communications must be a two way
street to be effective. Employers must listen to what employees
have to say. An atmosphere must be created in which employees feel
comfortable making suggestions and trying our new ideas.The
literature revealed that communication must begin early in the
employer/employee relationship. Organizational values and culture
must be made clear to all employees and their importance within the
organization must be continually emphasized.TrainingAs was noted
earlier it is important that the employee feel like a valued member
of the organization. Training helps underscore this message.
Training personnel is a way to show you respect them and want them
to grow. The department is making an investment in the employee by
offering training (Marx, 1995). Good training can de-emphasize
salaries and benefits, in part by building a positive work
environment and by giving employees advancement opportunities
(Lynn, 1997). Lynn goes on to say that training helps strengthen
employee loyalty.Training can help revitalize personnel. For an
increasing number of people, the chance to learn new skills is a
significant personal goal for both the career opportunities
education can provide and for the chance to do something a little
different (Mendonsa, 1998).Training emphasizes to the employee that
they are valued and respected. This in turn to increased loyalty
and retention.
Job SatisfactionWhile an organization must be competitive in
terms of compensation and benefits, it is the relationship with the
supervisor that is often a crucial factor in determining whether a
person stays or goes (Mendonsa, 1998). Employees want more
interaction with management, more self-satisfaction onthe job, more
responsibility and more control over decisions affecting them. They
want their work to make a difference and want to be part of
something that matters (Taylor, 1997).Departments should encourage
innovation by soliciting the advice and input of their staff
members, followed by responses to ideas, complaints or questions
(Taylor, 1997). It is difficult to keep people on the job if they
have no say in how to do it (Spragins, 1992).People need to be
recognized for their accomplishments in the workplace. In most
organizations the feeling of under-recognition is the most
pervasive feeling in the workplace (Mendonsa, 1998). Provide a
great deal of personal and team recognition (Carney, 1998).
Recognize achievements with memos, mentions in staff meetings or
articles in the newspapers (Lynn, 1997).To retain employees,
departments must offer career advancement opportunities.
Departments failing to offer employees career opportunities, room
for advancement and enhancement of skills and knowledge may find it
difficult to retain qualified employees (Taylor, 1997). Marx (1995)
concludes this by pointing out that promoting from within is one of
the proven methods of employee retention. Promoting from within
shows that there is truly room for advancement and growth within
the department.Employee involvement, recognition, importance of
work, and career advancement opportunities are all important, when
dealing with employee retention.Pay and BenefitsIn general people
think that money and benefits or lack thereof, are the main reasons
people leave their jobs, but this is not the case. While
compensation and benefits may be a key factor in the final
decision-making process, a money shortage is usually not what
causes people to look in the first place (Mendonsa, 1998).Money may
be the reason they give when they resign, but its like white noise.
They are conscious of it for a while but if they are bored on the
job, money alone is not going to keep them there (Branch,
1998).Although traditional benefits such as vacation and health are
still important, todays workers are also looking for more
non-traditional benefits. Benefits such as flexible work ours,
availability of childcare tuition assistance programs and discounts
on services now top the list of desired benefits (Denton, 1992).The
literature clearly indicates while still factors, money and
benefits are not as important as job satisfaction in terms of
employee retention.Employers have a need to keep employees from
leaving and going to work for other companies. This is true because
of the great costs associated with hiring and retraining new
employees. The best way to retain employees is by providing them
with job satisfaction and opportunities for advancement in their
careers. The saying, good help is hard to find, is even truer these
days than ever before because the job market is becoming
increasingly tight (Eskildesen 2000, Hammer 2000).
Eskildsen and Nussler (2000) suggest that employers are fighting
to get talented employees in order to maintain a prosperous
business. Ray Hammer (2000) as well as many other
researchers/authors agree. Mark Parrott (2000) believes that, there
is a straight line between employee satisfaction and customer
satisfaction. He believes that todays employees pose a complete new
set of challenges, especially when businesses are forced to
confront one of the tightest labor markets in decades. Therefore,
it is getting more difficult to retain employees, as the pool of
talent is becoming more-andmore tapped-out. The research below,
which focuses primarily on employee retention through job
satisfaction, supports this contention.
Employees that are satisfied and happy in with their jobs are
more dedicated to doing a good job and taking care of customers
that sustain the operation (Hammer 2000; Marini 2000; Denton 2000).
Job satisfaction is something that working people seek and a key
element of employee retention.Every person will have his or her own
definition of what it means to be satisfied with a job. Studies
show that employees who are satisfied with their jobs are more
productive, creative and be more likely to be retained by the
company (Eskildsen & Dahlgaard 2000; Kim 2000; Kirby 2000; Lee
2000; Money 2000; Wagner 2000).
Today, changes in technology, global economics, trade
agreements, and the like are directly affecting employee/employer
relationships. Until recently, loyalty was the cornerstone of that
relationship. Employers promised job security and a steady
progression up the hierarchy in return for the employees fitting
in, performing in prescribed ways and sticking around. None of
these assumptions apply today. Restructuring and layoffs occurring
today are expected to continue far into the future. Employees are
now finding that previous job skills are no longer valuable. They
must now create new job growth possibilities, rather than waiting
on promotions to be handed out.
Fostering employee commitment can have a great impact on
decreasing turnover rates. Research shows commitment has a positive
effect on productivity, turnover and employees willingness to help
co-workers (Bishop, 1997, p. 4). In fact, increased employee
commitment has been shown to improve team performance and
productivity and decrease absenteeism, turnover, and intention to
quit. However, companies can take action to ensure that these
increasing trends are minimized within their own individual
cultures. Therefore, strong retention strategy must be
implemented.
First, a corporate values system must be defined based upon the
organizations values and vision. These values must guide the
company and identify those employees desiring to move in the same
direction. Next, trust must be established within all parts of the
business. Security comes from trust and trust comes from honesty
and communication. The bottom line is that employees want to know
their employer will be straightforward with them. Establish a
process for sharing important information related to your business
with your employees (Byrnes, 2002, P. 4). Third, assess employee
priorities through surveying. The answers will allow an
organization to structure effective reward programs, thus
increasing employee satisfaction. Fourth, Byrnes recommends doing
industry homework. Companies need to understand competitors
compensation and benefit programs. A clearer understanding of what
is expected by employees within the industry provides the company
the opportunity to increase satisfaction. Finally, the creation of
a compensation and benefit package, supportive of company values
and employee needs, is essential.
INDUSTRY PROFILEIndian Pharmaceutical IndustryThe pharmaceutical
industry in India is among the most highly organized sectors. This
industry plays an important role in promoting and sustaining
development in the field of global medicine. Due to the presence of
low cost manufacturing facilities, educated and skilled manpower
and cheap labor force among others, the industry is set to scale
new heights in the fields of production, development, manufacturing
and research. In 2008, the domestic pharma market in India was
expected to be US$ 10.76 billion and this is likely to increase at
a compound annual growth rate of 9.9 per cent until 2010 and
subsequently at 9.5 per cent till the year 2015.
Industry Trends The pharma industry generally grows at about
1.5-1.6 times the Gross Domestic Product growth Globally, India
ranks third in terms of manufacturing pharma products by volume The
Indian pharmaceutical industry is expected to grow at a rate of 9.9
% till 2010 and after that 9.5 % till 2015 In 2007-08, India
exported drugs worth US$7.2 billion in to the US and Europe
followed by Central and Eastern Europe, Africa and Latin America
The Indian vaccine market which was worth US$665 million in 2007-08
is growing at a rate of more than 20% The retail pharmaceutical
market in India is expected to cross US$ 12-13 billion by
2012ChallengesEvery industry has its own sets of advantages and
disadvantages under which they have to work; the pharmaceutical
industry is no exception to this. Some of the challenges the
industry faces are: Regulatory obstacles Lack of proper
infrastructure Lack of qualified professionals Expensive research
equipments Lack of academic collaboration Underdeveloped molecular
discovery program Divide between the industry and study
curriculumGovernment InitiativesThe government of India has
undertaken several including policy initiatives and tax breaks for
the growth of the pharmaceutical business in India. Some of the
measures adopted are: Pharmaceutical units are eligible for
weighted tax reduction at 150% for the research and development
expenditure obtained. Two new schemes namely, New Millennium Indian
Technology Leadership Initiative and the Drugs and Pharmaceuticals
Research Program have been launched by the Government. The
Government is contemplating the creation of SRV or special purpose
vehicles with an insurance cover to be used for funding new drug
research The Department of Pharmaceuticals is mulling the creation
of drug research facilities which can be used by private companies
for research work on rentPharma ExportIn the recent years, despite
the slowdown witnessed in the global economy, exports from the
pharmaceutical industry in India have shown good buoyancy in
growth. Export has become an important driving force for growth in
this industry with more than 50 % revenue coming from the overseas
markets. For the financial year 2008-09 the export of drugs is
estimated to be $8.25 billion as per the Pharmaceutical Export
Council of India, which is an organization, set up by the
Government of India. A survey undertaken by FICCI, the oldest
industry chamber in India has predicted 16% growth in the export of
India's pharmaceutical growth during 2009-2010.
Key players in Indian Pharmaceutical IndustryThere are several
national and international pharmaceutical companies that operate in
India. Most of the country's requirements for pharmaceutical
products are met by these companies. Some of them are briefly
described below: Ranbaxy Laboratories Limited is the biggest
pharmaceutical manufacturing company in India. The company is
ranked at the 8th position among the global generic pharmaceutical
companies and has presence in 48 countries including world class
manufacturing facilities in 10 countries and serves to customers
from over 125 countries. Ranbaxy Laboratories 2009-2010 Q3 Net
Profit Results showed a profit of Rs 116.6 crore as compared to Rs
394.5 crore deficits, recorded during the corresponding period last
fiscal.
Dr. Reddy's Laboratories manufactures and markets a wide range
of pharmaceuticals both in India and abroad. The company has 60
active pharmaceutical ingredients to manufacture drugs, critical
care products, diagnostic kits and biotechnology products. The
company has 6 FDA plants that produce active pharma ingredients and
7 FDA inspected and ISO 9001 and ISO 14001 certified plants. Dr.
Reddy's Q1 FY10 result shows the revenues of the company at Rs.
18,189 million which is up by 21%. During this quarter the company
introduced 24 new generic products, applied for 22 new generic
product registrations and filed 4 DMFs.
Cipla is an Indian pharmaceutical company renowned for the
manufacture of low cost anti AIDS drugs. The company's product
range comprises of anthelmintics, oncology, anti-bacterial,
cardiovascular drugs, antibiotics, nutritional supplements,
anti-ulcerants, anti-asthmatics and corticosteroids. Cipla also
offers other services like quality control, engineering, project
appraisal, plant supply, consulting, commissioning and know-how
transfer, support. For the financial year 2008-09 the company
registered an increase of 22% in sales and other income over the
previous year.
Nicholas Piramal is the second largest pharmaceutical healthcare
company in India. The brands manufactured by the company include
Gardenal, Ismo, Stemetil, Rejoint, Supradyn, Phensedyl and
Haemaccel. Nicholas Piramal has entered into join ventures and
alliances with several international corporations like Cheissi,
Italy; IVAX Corp; UK, F. Hoffmann-La Roche Ltd., Allergen Inc., USA
etc.
Glaxo Smithkline (GSK) is a United Kingdom based pharma company;
it is the world's second largest pharmaceutical company. The
company's portfolio of pharma products consist of central nervous
system, respiratory, oncology, vaccines, anti-invectives and
gastro-intestinal/metabolic products among others. On November
2009, the FDA had announced that the H1N1 vaccine manufactured by
GSK would join the list of the four vaccines approved.
Zydus Cadila also known as Cadila Healthcare is an Indian
pharmaceutical company located in Gujarat. The company's 1QFY2010
results show the net sales at Rs880.3cr which is higher than the
estimated Rs773cr. The net profit was Rs124.8cr which was increase
of 39%; the increase was on account of higher sales and improvement
in the OPM.
India's Domestic Pharmaceutical Market (12 Months Ended January
2009)CompanySize ($ Billion)Market Share (%)Growth Rate (%)
Total Pharma Market6.9100.09.9
Cipla.365.313.4
Ranbaxy.345.011.5
Glaxo Smithkline.294.3-1.2
Piramal Healthcare.273.911.7
Zydus Cadila.243.66.8
Future ScenarioWith several companies slated to make investments
in India, the future scenario of the pharmaceutical industry in
looks pretty promising. The country's pharmaceutical industry has
tremendous potential of growth considering all the projects that
are in the pipeline. Some of the future initiatives are: According
to a study by FICCI-Ernst & Young India will open a probable
US$ 8 billion market for MNCs selling expensive drugs by 2015 The
study also says that the domestic pharma market is likely to reach
US$ 20 billion by 2015 The Minister of Commerce estimates that US$
6.31 billion will be invested in the domestic pharmaceutical sector
Public spending on healthcare is likely to raise from 7 per cent of
GDP in 2007 to 13 per cent of GDP by 2015 Dr Reddy's Laboratories
has tied up with GlaxoSmithKline to develop and market generics and
formulations in upcoming markets overseas Lupin, a Mumbai based
pharmaceutical company is looking to tap opportunities of about US$
200 million in the US oral contraceptives market Due to the low
cost of R&D, the Indian pharmaceutical off-shoring industry is
designated to turn out to be a US$ 2.5 billion opportunity by
2012
COMPANY PROFILEArbro Pharma is a WHO certified pharmaceutical
company established in 1985. The company is engaged in the
manufacture and sale of generic and proprietary pharmaceutical
products. Arbro Pharma is one of the leading generic pharmaceutical
companies in India having unique, modern, multiple plants located
on the periphery of New Delhi, manufacturer of human
Pharmaceuticals and animal health products. The company offers,
Wide range of more than two hundred plus prescriptions and OTC
formulations in pharmaceutical dosage forms, like Capsules,
Tablets, Ointments, Liquid Orals, Powders and Small volume
Parenteral preparations. The manufacturing is done under strict WHO
cGMP guidelines to ensure high manufacturing standards to produce
quality products. Backed by ultramodern formulations manufacturing
facilities with fully automatic online operations with a built in
area around 45000 sq. feet, Arbro Pharma is marketing both
proprietary and generics under the categories of Antibiotics and
Anti-infective, Anti-Pyretic, Analgesics, Anti-inflammatory,
Anti-allergies, Steroids, Sex Hormones, Anti-Malarial, Diuretics,
Tranquillizers and various Vitamins preparations. Manufacturing
facilities for Dry Sterile Powder Injectables formulations for the
two anti-bacterial groups i.e. Beta-Lactam and Non Beta-Lactam.
Looking forward Arbro Pharma is committed to improve its position
in Small Volume Parenteral Preparations. Arbro Pharma has ever
since strived to improve its existing facility by carrying out
regular inspection and updating of technology for its products and
processes and thus adhere to cGMP. To ensure that the cGMP
standards are met and products comply with international quality
standards, quality control measures having been imbibed at various
stages of productions-from approval of raw materials to goods
in-process as well as monitoring of the manufacturing process and
extends upto checking of finished goods. Today, Arbro Pharma in a
span of 24 years has registered more than 600 products more than
any pharmaceutical company in India in all categories and dosage
forms making Arbro Pharma one of the leading generic pharmaceutical
companies in India. The quest for the quality products never ceased
for Arbro Pharma and hence got the GMP approval by the FDA, India
and World Health Organization.
The most precious asset of Arbro Pharma is its two hundred
strong dedicated team consisting of people from different
disciplines, placed at various locations but having one common
belief in the Companys corporate Philosophy. A philosophy that
propagates freedom of thought and growth for each individual. Where
each one is encouraged to work with an independent mind and as a
team striving to make a positive contribution towards alleviating
human sufferings with advanced medical science. Arbro Pharma has
been ensuring that its products should remain within the reach of
masses, therefore, its pricing policies has been to provide high
quality drugs at an affordable price. The quest for excellence
would never cease and Arbro Pharma looks forward to strongly
support the global challenge of achieving. Right from its inception
Arbro Pharmas objective remained to provide drugs of the highest
quality and purity for the common man that is zealously persuade
till date. Excellence in quality is a commitment and the entire
staff is dedicated towards this common goal. The quality did not
start but was there from the beginning of the unit when the FDA,
India, granted the GMP certificate. The regulatory body in India
has the most stringent laws comparable to any international body
and is fairly similar to the US FDA. As a result from the continued
efforts to upgrade the existing facility and technology with much
hard work, the companys major achievement was when it was granted
the WHO GMP certificate for 64 products. We proud our self to be
among the best generic companies in India as far the quality is
concern. At Arbro Pharma where our slogan long stands as "Care for
Quality, Cure for All", is believed and followed by every person
working for the company. Arbro Pharma is situated in an approved
industrial area known as Kirti Nagar Industrial Area located in the
heart of Delhi. The location is ideal and hygienic approached to
the pollution free environment. The factory premises is away from
open sewage, drains, public lavatory, and from other factories
which produces disagreeable odour, fumes, large quantity of soot,
dust and smoke. In keeping with the needs of the time, the venture
is totally eco and environment friendly. The manufacturing process
is being disposed off as per the industrial norms and guidelines.
Strict compliance to the rules and regulations set forth by the
pollution control board are being adhered to. Arbro Pharma looks
for the stronger support of its people to adhere to cGMP
requirements. Arbro Pharma is continuously upgrading its facility
not only in quality but also its management & administration
control and have recently filed for ISO 9002 certification.Arbro
Pharma is located in the govt. approved industrial area of Kirti
Nagar in the heart of New Delhi. The distance from New Delhi
Railway Station is less than a km and IGI Airport is 10 Km. The
company at present is spread over 45,000 Sq. ft. with a built in
area of 33,000 Sq.ft. The building of the company is constructed
strictly as per the conditions of Schedule M of the Drugs &
Cosmetic Act, 1940 and their Rules 1945. The firm is also equipped
with latest modern machinery in all the sections. The whole
manufacturing area is centrally air-conditioned and is suitable to
manufacture and store various pharmaceutical formulations at
required temperature. The whole plant is capable to produce various
pharmaceutical formulations by practicing good manufacturing
practice (the latest implementation of the Drugs & Cosmetic
Act). The company has independent huge stores to store various raw
materials, packing materials and consumables. Total area of the
stores is around 12000 Sq. ft. and the stores are adjoining to the
main building of the company. The stores are in the shape of big
halls, which are further divided into small and large partitions as
per the requirement of the storage varying from product to product.
The stores have sufficient capacity to store the various products
to ensure the production schedule.
ELECTRICITY:The company has its own arrangement of electricity
in case of failure of Government electricity system by way of two
generating sets which is sufficient to run the whole unit day and
night. A separate place away from manufacturing area has been
provided for the generation of electricity, adjoining to the
electricity room. Steam boiler is also fitted to feed the machines
which require excess electricity and for production of water for
injection.
LABORATORY:Apart from the manufacturing activities the company
has its own independent laboratory equipped with all required
testing equipments and is capable to test all types of Raw
Materials, Packing Materials, Semi-Finished products and Finished
Products. The quality control laboratory is divided into the
following sections: - 1. Chemicals, Biochemical and Physicochemical
Division2. Fuming - Cupboard3. Instrumentation Division4. Sterility
Testing5. Microbiology Division6. Pharmacology DivisionThe company
also have animal house and has the facilities to test the
pharmaceutical products for toxicity before the release of any
product for sale in the market. The testing methods developed by
the company are authenticated and reliable. The whole area of the
laboratory is centrally air-conditioned and all the testing is
carried out under the supervision of expert technical staff
approved by the State Government.
ANALYSIS AND INTERPRETATION
Q1. Do you have a program to assist employee when their personal
problem may affect their on job productivity (e.g. alcohol or drug
related, financial, etc.)? 1. Yes2. No
Interpretation:In the above given data around 60% of the
surveyed employees agree that the management take care of the
problems if it will affect the performance of the employees but 40%
employees are not satisfied with the way management handle their
problems.Q2. Are you presently doing performance evaluation for all
field employees on a regular basis?
1. Yes2. No
Interpretation:Since the field employees are mainly concerned
with the customer and they are directly connected with customer,
performance evaluation must be done and it is implied in the
company also feel the 65% employees, while rest of the employees
feel that it is mainly concerned with the profit only and not the
actual evaluation of the employees.
Q3. Do you communicate regularly with field employees regarding
the success of the company, future job prospects and other issues
affecting the company?1. Yes2. No
Interpretation:Only 40% of the employees feel that the field
employees are concerned regarding the changing scenario and the
upcoming problems or the issues affecting the company, 60% feel
that the field workers are only limited to the field and profits
and they are not involved actually in the discussion, this work has
been mainly done by the research and development department
(R&D).
Q4. When lying off workers, do you try to find work for them
also when in the industry?1. Yes2. No
Interpretation:
Only few middle management people feel that it has been done but
rest of the 80% feel that there is no such clause, but record says
that no such situation has been observed yet.Q5. Do you have a well
understood pay for performance compensation program?1. Yes2. No
Interpretation:
Most of the employees say yes to the question that they have
system for compensation according to performance but 25% of the
employees feel that they are not compensated according to their
work and performance.
Q6. Do you have a formal orientation program for new
employees?1. Yes2. No
Interpretation:
Almost all of the employees feel comfortable with the program
only few feel that such program do not include the whole knowledge
of the company.
Q7. Do you provide incentives or rewards to employees for
bringing forward suggestion on improving productivity?
1. Yes2. No
Interpretation:New ideas are always welcomed in the organisation
feel 60% of the employees but 40% feel that they have not given
ample amount of chance to present new ideas.
Q8. Do you formally recognize field employee with 20 or 25 years
service with your organization?
1. Yes2. No
Interpretation:
Only 40% employees are aware of the record of field employee
from 25-30 years but there is no such special recognition for these
people, only the people related to the same particular field aware
of them feel 60% employees.
Q9. Do you conduct occasional surveys of your employees,
receiving formal feedback on company policies, compensation,
benefits, employee attitudes, etc.?
1. Yes2. No
Interpretation:
Only 35%employees feel this data true as the compensation is not
based on surveys and feedback, but it is based on management and
the special criteria based on which it has been calculated feel the
65% of the employees.
Q10. Do you conduct regular survey of your competition to ensure
your compensation policies are competitive?1. Yes2. No
Interpretation: Although the employees are not much satisfied
with the compensation policy but regarding compensation policies to
the competitors 70% feel that they provide the best in the
industry, while 30% feel that they dont keep regular check on the
changing scenario.
Q11. Does your company offer a pension or retirement savings
plan or profit sharing plan for field employees?
1. Yes2. No
Interpretation:
Almost all of the employees are satisfied with the Pension Plans
Company is providing; only a few percent feel that it is comparable
to the govt. plans.Q12. Are you providing field employees with a
comprehensive group benefits program (life insurance, extended
medical and dental benefits, etc)?
1. Yes 2. No
Interpretation:
Field employees are always benefited when we talk about the
compensation plans as they directly deal with the customers and
changing scenario and research and development.
Q13. Do you think that in the competitive age you have given the
right environment to performer?
1. Yes2. No
Interpretation:
Regarding the working environment employees are a bit confused
because they are not sure that they have given the right
environment to perform comparative to others.
Q14. Do you have a formalized complaint resolution process
within your company?1. Yes2. No
Interpretation:
Only 10% of the employees feel that their problem has solved,
rest feel that they dont have such program and moreover they dont
have time to solve small issues on complains.
Q15. Do you organize any program like meditation classes or
another stress buster for the employees?1. Yes2. No
Interpretation:
60% of the employees feel that they have given such meditation
program no. of times depending on their work, while 40% have not
attended such program yet; the 40% are the younger employees.
FINDINGS
Management take care of their problems only 6o% of employee said
that but the rest are not satisfied with management 35% employees
feel that the evaluation is only for profit not for actual
evaluation of employee on the other hand 65% feels opposite.
Organization dont involved field employees in discussion regarding
changing scenario and upcoming problems. Management helps only few
middle management employees in finding job at lay off. Company has
a system of pay for performance 75% employees feel that but rest
are opposite to it. Provides reward for forwarding any new
suggestion and idea regarding any problem only feel by 60% of the
employees. Not so much recognition for the field employees for
their records in 25-30 years of job only a few employees are aware.
Only 35% employees feels that feedback is provided by them
regarding compensation, benefits and employees attitude but rest
feel it is based on management and the special criteria based on
which it has been calculated. Almost all of the employees are
satisfied with the Pension Plans Company is providing only 2-3
employees are opposite to it. Regarding the environment for work
half of the employees feel good but the other half are confused. No
proper complaint solution program is there in the organization only
10% employees feel that organization provide solution for their
problems. 60% of employees feel that organization arrange
meditation program no. of times.
RECOMMENDATIONS
In the above study I felt that there are lots of policies in the
written form but the application part is missing, so I would
suggest applying what has been written. In my study the % of field
employees involvement is 40%only. But the field employees are the
back bone of the organisation so I feel that, the field employees
can also be included during various discussions along with R&D
department. The laying off worker does not have much security
regarding the job prospective in the industry feel 80% employees.
Although this type of situation has not been arrived yet but I
suggest that company must have such type of policies in their
system for future security. In the organisation 40% employees feel
that there is no recognition to the old field employees. I suggest
to the organisation that they can have regular half yearly programs
in which all the employees can be introduced to the new staff and
informal meetings can be there. 90% employees feel that they dont
have complain resolution programs so I suggest that complain
handling department can be created for such types of resolution.
35% feel that there is no formal feed back involved during time of
compensation planning; I suggest that company can prepare a form in
which they can have regular feed back from the employees.
CONCLUSIONWith the above analysis it has been concluded that the
organisation is at the middle level. It performs the employee
retention policies to a greater extent.The organisation has the
potential to benefit from human resources programs. The
introduction of a few programs could put it in to the ballpark of
being a solid company to work for from an employee viewpoint. It
covers the programs such as (compensation, benefits, retirement,
supervisor training and safety)But some of the practices are in the
written from only and yet to be applied in practical life and with
the application of such programmes the organisation will reach to
the extent. Out of the 15 question asked almost 55% response was in
yes it means that the employees are satisfied with their policies
but there is still hope for further improvements.Compensation
policies: - compensation policies are the best mean to stop
attrition rate and almost 65% employees are satisfied with the
compensation plans and the performance evaluation programmes in the
organisation.Working conditions: - working condition in the
organisation are still to be improved feel 50% of the employees as
the employees feel that there is less participation of the
employees during discussion time and hence some part remain
hiddenComplain handling: - the organisation has poor complain
handling process feel 90% of the employees which is a big drawback
to the organisation.Training and development: - 70% employees feel
that the training and development programmes is satisfactory,
employees feel that company provides additional meditation
programmes which help them to recover from their problems.
LIMITATIONS OF STUDY Time is very short for research, so this is
very difficult to get the knowledge about everything. Since the
filling of questionnaire and interviews need special attention so
may be the employees are less interested in entertaining. The
information was collected through the questionnaire is subject to
willingness of the respondent to respond.
BIBLIOGRAPHY Boudreau Milkovich, Human Resource Management, New
Delhi, business publications,inc:1994 Sahu, R.K.,Training for
Development, New Delhi, Excel Books,2008 Branch, Shelly (1998,
November). The new economy: You hire em. But can you keep em?
Fortune, 247. Carney, Karen (1998, November). How businesses can
reduce high employee turnover.Inc, 47. Denton, D. Keith (1992).
Recruitment, retention, and employee relations. West Westport, CT:
Quorum Lynn, Jacquelyn (1997). Hard to hold: Conquer the tight
labor market by retaining valuable workers. Entrepreneur, 34.
Spragins, Ellen E. (1992, November). How to retain key employees.
Inc., 36 Taylor, Susan L. & Cosenza, Robert M. (1997,
December). Internal marketing can reduce employee turnover.
Supervision, 3-5 The Human Factor, Feb 2011,volume 2, issue
3Website: www.citehr.com www.google.com www.humanlinks.com
http://retention.naukrihub.com
http://www.expresspharmaonline.com/20060615/pharmalife01.shtmlg
Date:-QUESTIONNAIRE
Name: -Email Address: - Contact Tel (inc. STD):-
Q1. Do you have a program to assist employee when their personal
problem may affect their on job productivity (e.g. alcohol or drug
related, financial, etc.)? 3. Yes4. NoQ2. Are you presently doing
performance evaluation for all field employees on a regular
basis?3. Yes4. No
Q3. Do you communicate regularly with field employees regarding
the success of the company, future job prospects and other issues
affecting the company?3. Yes4. No
Q4. When lying off workers, do you try to find work for them
also when in the industry?3. Yes4. NoQ5. Do you have a well
understood pay for performance compensation program?3. Yes4. No
Q6. Do you have a formal orientation program for new
employees?3. Yes4. No
Q7. Do you provide incentives or rewards to employees for
bringing forward suggestion on improving productivity?3. Yes4.
No
Q8. Do you formally recognize field employee with 20 or 25years
service with your organization?3. Yes4. NoQ9. Do you conduct
occasional surveys of your employees, receiving formal feedback on
company policies, compensation, benefits, employee attitude s,
etc.?3. Yes4. No
Q10. Do you conduct regular survey of your competition to ensure
your compensation policies are competitive?3. Yes4. No
Q11. Does your company offer a pension or retirement savings
plan or profit sharing plan for field employees?3. Yes4. No
Q12. Are you providing field employees with a comprehensive
group benefits program (life insurance, extended medical and dental
benefits, etc?3. Yes 4. No
Q13. Do you think that in the competative edge you have given
the right environment to the performer?
3. Yes4. No
Q14. Do you have a formalized complaint resolution process
within your company?
3. Yes4. No
Q15. Do you organize any program like meditation classes or
another stress buster for the employees?
3. Yes4. NoQ16. Please use the space below for any further
comments to your responses, or any suggestions on how I could
improve
79