Performance appraisal & employee satisfaction in pharmaceutical industry in bangladesh

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Performance appraisal & employee satisfaction in pharmaceutical industry in bangladesh

  1. 1. A Report onPerformance Appraisal & Employee Satisfaction in Pharmaceutical Company
  2. 2. Human Resource Management MGT 3122Topics: A Report on Performance Appraisal & Employee Satisfaction in Pharmaceutical Industry. Submitted to: Mrs. Shayla Binta Sayeed Course Instructor- MGT 3122 United International University Submitted by: NAME ID Shakhawatul Islam 111 093 033 Mahin Ahmed 111 101 119 Riad Chowdhury 111 101 122 MD. Soebur Rahman 111 101 123 MD. Muzahid Baksh 111 101 208 United International University Summer- 2012 Date of submission: 24 July 21, 2012
  3. 3. Letter of TransmittalJuly, 24, 2012Mrs. Shayla Binta SayeedCourse Instructor- MGT 3122United International UniversitySubject: A report on performance appraisal & employee satisfaction in pharmaceuticalindustry.Dear Madam,We are submitting herewith our report entitled “A Thesis on employee satisfaction &performance appraisal process in pharmaceutical industry.”The main purpose of this report is to get a set of concepts on how pharmaceutical companiesappraise their personnel and what are the impacts on employee satisfaction. The proposalshows a detail analysis in employee satisfaction [mainly sales personnel] base on company’sperformance process.I hope that this report will merit your approval.Respectfully yoursOn behalf of the team…………………………………………Mahin AhmedID: 111 101 119Sec: BSchool of BusinessUnited International University iii
  4. 4. AcknowledgmentI give thanks to the Almighty for giving me the understanding, knowledge and wisdom duringthe course of our study.We convey our gratitude to our honorable faculty Mrs. Shayla Binta Sayeed, MGT 3122 inUnited International University. Her guidance and cooperation helped us immensely to preparethis survey report.We also like to thank those people who had helped us to conduct this survey report. We alsolike to express our gratitude to our team members for their friendly and cordial cooperationduring surveying and report writing process. We have tried our best to prepare a survey reporthaving better contents. We tried to implement our classroom knowledge with real life lesson inthis survey report. We have tried to maximize our best affordable way to complete it andminimize the mistakes in very short time. Even, if we make any mistakes, we apologies for thatunwillingly mistakes. iv
  5. 5. Table of ContentsAcknowledgment...…………………………………………………………………………………………………………………………………………… ivExecutive Summary ………………………………………………………………………………………………………………………………………… viiAbstract ……………………………………………………………………………………………………………………………………………………………. 8Introduction ……………………………………………………………………………………………………………………………………………………… 9 Objective of the study ……………………………………………………………………………………………………………………………. 10 Methodology of Data Collection ………………………………………………………………………………………………. 11 Sample Size and Population ……………………………………………………………………………………………………… 11 Sampling Method …………………………………………………………………………………………………………………….. 11 Limitations of the study …………………………………………………………………………………………………………… 11PHARMACEUTICAL INDUSTRY IN BANGLADESH ………………………………………………………………………………………………. 12Findings …………..................................................................................................................................................13 Employees Job Satisfaction in Pharmaceuticals Company ……………………………………………………………………… 13 Descriptive Statics …………………………………………………………………………………………………………………………………. 14 Level on work conditions …………………………………………………………………………………………………………. 14 Level on Pay and Promotion …………………………………………………………………………………………………….. 14 Level on Fairness ……………………………………………………………………………………………………………………… 15 Level on Job Security ……………………………………………………………………………………………………………….. 15 Level on Relationship with co-workers …………………………………………………………………………………….. 15 Level on Relationship with immediate supervisor ……………………………………………………………………. 16PERFORMANCE APPRAISAL & EMPLOYEE SATISFACTION [AN OVERVIEW] MULTINATIONAL COMPANIES ………. 17 Performance Appraisal Process in GlaxoSmithKline Bangladesh Ltd ………………………………………………………. 17 Sales Force Officer’s Appraisal Process in GSK ……………………………………………………………………………………….. 17 Performance Appraisal Process Overview in Roche Bangladesh Ltd ………………………………………………………. 18 Principles for the Implication of a PA ……………………………………………………………………………………….. 18 v
  6. 6. PA Interview with the Employee ……………………………………………………………………………………………... 19PERFORMANCE APPRAISAL & EMPLOYEE SATISFACTION [AN OVERVIEW] LOCAL COMPANIES ……………………… 20 Performance Appraisal Process in BEXIMCO PHARMA Bangladesh Ltd ………………………………………………….. 20 Performance Appraisal …………………………………………………………………………………………………………….. 20 Employee Compensation ……………………………………………………………………………………………………….... 20 Establishing Pay Rates ………………………………………………………………………………………………………….….. 21 Benefits and Rewards Package ………………………………………………………………………………………………... 22 Health & Safety ……………………………………………………………………………………………………………………….. 22 Performance Appraisal Process in SQUARE PHARMA Ltd ………………………………………………………………………. 24 Performance Appraisal …………………………………………………………………………………………………….………. 24 Reward and Compensation System …………………………………………………………………………………….……. 24Overall Summary [Employee Job Satisfaction] ………………………………………………………………………………………………… 25 Satisfaction with Interpersonal Relations ………………………………………………………………………………………….. 25 Satisfaction with Compensation Package (salary, fringe benefits) ……………………………………………………… 25 Satisfaction with Professional Effectiveness ………………………………………………………………………………………. 26 Overall Job Satisfaction ……………………………………………………………………………………………………………………… 27CONCLUSIONS ………………………………………………………………………………………………………………………………………………… 28APPENDIX: 01 …………………………………………………………………………………………………………………………………………………. 29 Employees’ Satisfaction Interview Schedule ………………………………………………………………………………………….. 29 Questionnaire on: Performance appraisal in Pharmaceutical Industry ………………………………………….……….. 30Appendix: 02. Level on work conditions ………………………………………………………………………………………………………….. 31Appendix: 03. Level on Pay and Promotion …………………………………………………………………………………………………….. 32Appendix: 04. Level on Fairness ………………………………………………………………………………………………………………………. 32Appendix: 05. Level on Job Security ………………………………………………………………………………………………………………… 32Appendix: 06. Level on Relationship with Co-workers …………………………………………………………………………………….. 33Appendix: 07. Level on Relationship with Immediate supervisor …………………………………………………………………….. 33 vi
  7. 7. Executive SummaryThe Pharmaceutical sector plays a vital role in underpinning the economic development of acountry. This study attempts to evaluate job satisfaction of employees in differentpharmaceutical companies. It focuses on the relative importance of performance appraisal &job satisfaction factors and their impacts on the overall job satisfaction of employees. Bothprimary and secondary sources of information have been considered as a data collectionprocess. Primary data was collected through checklist and personnel interview. At present, inBangladesh, there are 204 national pharmaceutical companies and only 7 multinational orforeign companies operating.In our survey we found Level on work conditions, Level on Pay and Promotion, Level onFairness, Level on Job Security, Level on Relationship with co-workers, Level on Relationshipwith immediate supervisor; we also found the procedure of performance appraisal & employeejob satisfaction in multinational pharmaceuticals [include: GLAXO, & Roche] & localpharmaceuticals Company [includes: BEXIMCO & SQUARE].In the overall job satisfaction summary we focused on the satisfaction with interpersonalrelations, satisfaction with compensation package (salary, fringe benefits), satisfaction withprofessional effectiveness, overall job satisfaction.The results suggest that the factors had satisfactorily explained job satisfaction and that thepolicy makers and managers should focus on the factors that affect employee job satisfaction, ifthey want to enhance their businesses. Based on the results for the standardized values, we areable to see that work conditions, fairness, promotion, and pay, are key factors affectingpharmaceuticals companies employees’ job satisfaction.Results of the study reveal that a good performance appraisal system, work environment andgood work conditions can increase employee job satisfaction and the employees will try to givetheir best which can increase the employee work performance. vii
  8. 8. AbstractThe Pharmaceutical sector plays a vital role in underpinning the economic development of acountry. This study attempts to evaluate job satisfaction of employees in differentpharmaceutical companies. It focuses on the relative importance of performance appraisal &job satisfaction factors and their impacts on the overall job satisfaction of employees. It alsoinvestigates the impacts of pharmaceutical type, work experience, age, and sex differences onthe attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringesupervision, and co-worker relation are the most important factors contributing to jobsatisfaction. The overall job satisfaction of the employees in pharmaceutical sector is at thepositive level. This research was mainly undertaken to investigate on the significance of factorssuch as working conditions, pay and promotion, job security, fairness, relationship with co-workers and supervisors in affecting the job satisfaction. This paper presents a comprehensivediagnosis of job satisfaction indices of pharmaceutical business, the factors causing thedissatisfaction & suggestions to improve them.There is greater recognition that distinctive competencies are obtained through highlydeveloped employee skills, distinctive organizational cultures, management processes andsystems. To attain such recognitions HR plays a key role and one of the important aspects of HRprocess affiliated with the above objective is performance appraisal process. In this study anattempt has been made to understand the performance appraisal process of pharmaceuticalcompanies in Bangladesh. The repercussion of this study reveals the performance appraisalprocess and eventually concludes with some implications for pharmaceutical companies ofBangladesh to make the present performance appraisal process more effective and objectiveoriented.Keywords: Performance appraisal, Job satisfaction & Pharmaceutical Company. 8
  9. 9. IntroductionIn today’s intensely competitive and global marketplace, competitive advantage lies not just indifferentiating a product or service or in becoming the low cost leader but in also being able totap the company’s special skills or core competencies. Especially for pharmaceutical industryskilled and efficient employees are must as it requires specialized, technical and, scientificknowledge and expertise and there is zero tolerance in terms of developing quality products &services. To attain such objectives HR plays a vital role and one of the most used tools by HR inorder to ensure skilled and efficient employees is performance appraisal. Performanceappraisal may be defined as a structured formal interaction between a subordinate andsupervisor, that usually takes the form of a periodic interview (annual or semi-annual), in whichthe work performance of the subordinate is examined and discussed, with a view to identifyingweaknesses and strengths as well as opportunities for improvement and skills development.Performance appraisal is evaluating an employee’s current and/or past performance relative tohis or her performance standardOn the other hand, Job satisfaction describes how content an individual is with his or her job.There are a variety of factors that can influence a person’s level of job satisfaction. Some ofthese factors include the level of pay and benefits, the perceived fairness of the promotionsystem within a company, the quality of the working conditions, leadership and socialrelationships, the job itself. Other influences on satisfaction include the management style andculture, employee involvement, empowerment and autonomous workgroups. Job satisfaction isa very important attribute which is frequently measured by organizations. The most commonway of measurement is the use of rating scales where employees report their reactions to theirjobs. Questions relate to relate of pay, work responsibilities, variety of tasks, promotionalopportunities the work itself and co-workers. Some questioners ask yes or no questions whileothers ask to rate satisfaction on 1 – 5 scale where 1 represents “not all satisfied” and 5represents “extremely satisfied”. 9
  10. 10. In our findings some organizations maintain their formal evaluation system because theyconsider performance evaluation to be fundamental to organizational effectiveness. It is betterto maintain the visibility of a formal program because; it may help to improve systematically thefairness, validity, usefulness and reliability of the appraisal process.According to them the purpose of performance appraisal process are to (a) control theemployee performance focusing on the past performance, and (b) develop employee to be aneffective performer focusing on the importance of future performance. Performance appraisalis important from the viewpoints of both the employee and the organization.From the employees’ point of view performance appraisal is important, because: (a) they canmodify their work behavior to become a more effective performer, and (b) it increases thelikelihood of receiving increase compensation and/or recognition.Objective of the study:The objectives of this study are:  To study the present appraisal system in the pharmaceutical companies [both national & multinational] in order to get an overall summery on performance appraisal process;  To examine the employee’s attitude towards the effectiveness of the appraisal system practiced by the pharmaceutical company;  To analyze the findings and thereby draw some implications in order to make the performance appraisal process for the companies to be more effective and efficient.  To assess the satisfaction level of employees in Pharmaceutical industry  To identify the factors which influence the job satisfaction of employees  To identify the factor which improves the satisfaction level of employees 10
  11. 11. Methodology of Data CollectionBoth primary and secondary sources of information have been considered as a data collectionprocess. Primary data was collected through checklist and personnel interview.The secondary information of the study was collected from the web sites, published literature,research papers and, various reports (internal and external) of the sample firms. Qualitativetechnique was used to analyze the collected data.Sample Size and Population:Populations of this research are of two types: 1. Management of pharmaceutical companies: It includes the view of the personnel who are involved in the performance appraisal and employee motivation in HR department; 2. Employees of pharmaceutical companies: The general employees of some different pharmaceutical companies include those who had undergone some performance appraisal. It includes mainly the sales officers.Sampling MethodThere are two types of populations’ size, based on which different samples were drawn. Formanagement no sampling is needed, because there are very few HR personnel. For employees,random sampling was chosen.Limitations of the studyThe survey is subjected to the bias and prejudices of the respondents. Hence 100% accuracycan’t be assured. The researcher was carried out in a short span of time, where in theresearcher could not widen the study. The study could not be generalized due to the fact thatresearcher adapted personal interview method. 11
  12. 12. PHARMACEUTICAL INDUSTRY INBANGLADESHAt present, in Bangladesh, there are 204 national pharmaceutical companies and only 7multinational or foreign companies operating. Domestic companies are currently dominatingthe pharmaceutical market. The local companies control about 78% of the total market. Chart 1: Pharmaceutical sector growth rate Source: Bangladesh Association of Pharmaceutical Industries (BAPI)ANALYSIS AND INTERPRETATION: The analysis of data in a general way involves a number ofclosely related operations, which are performed with the purpose of summarizing the collecteddata and organizing them in such a manner that they answer the research questions. 12
  13. 13. FindingsThis section will try to highlight and discuss the results and the findings based on the analysisdone on the data collected from respondents. This research focuses on the factors affectingemployee job satisfaction in selected pharmaceuticals company. The discussion then will try toaccomplish all the objectives of the study. In this instance, for simplicity of analysis and findings,this part focuses on the levels of employee job satisfaction & performance appraisal proceduresin Pharmaceuticals Company and discussion.Employees Job Satisfaction in Pharmaceuticals CompanyThis part discusses the respondents’ overall perception of employee job satisfaction inPharmaceuticals Company and sub-dimensions such as pay and promotion, job security, workconditions, fairness and relationship with co-workers and management. The findings arepresented in frequencies and percentages. Chart 2: Overall level of employee satisfaction in Pharmaceutical Companies 13
  14. 14. In terms of working conditions, pay and promotion, job security and relationship with co-workers the study found that the level of employee job satisfaction is “neither happy norunhappy” and in terms of relationship with immediate supervisor the level of employee jobsatisfaction is “somewhat unhappy”. Overall level of employee satisfaction in pharmaceuticalcompanies, the study found that the average mean is 61%, so the overall level of employee jobsatisfaction is “neither happy nor unhappy”.Descriptive StaticsLevel on work conditions:In terms of level on work conditions in pharmaceuticals companies, the study found that 44respondent’s perceived atmosphere to be “Neutral”. About 29 respondents perceived the workconditions to be “happy”, while 15 respondents perceived work conditions as “unhappy” .Afew, 7 respondents rated the work conditions as “very unhappy” and “very happy” 5. At last,the mean score is 3.01, so the work conditions are “neither happy nor unhappy”. Looking at themean score of 3.10, we can see that work conditions influence job satisfaction inpharmaceuticals companies. (See, Appendix-02)Level on Pay and Promotion In terms of level on pay back in pharmaceuticals companies, the study found that 49respondents perceived pay and promotion to be “neither happy or unhappy”, 21 of therespondents perceived the pay and promotion to be “somewhat happy “and 21 respondentsperceived pay and promotion to be “somewhat unhappy”. Only a few 4 and 5 of therespondents rated the pay and promotion as “very unhappy” and “very happy”. At last, themean score is 3.02, so the pay and promotion is “somewhat unhappy”. According to a meanscore of 3.02, we can see that pay and promotion influences job satisfaction in pharmaceuticalscompanies. (See, Appendix-03) 14
  15. 15. Level on Fairness: In terms of level about fairness in pharmaceuticals companies, the study found that 51respondents perceived fairness to be “neither happy nor unhappy”, 24 respondents perceivedthe fairness to be “somewhat happy”, while 16 respondents perceived fairness as “somewhatunhappy”. A few 6 respondents rated the fairness as “very unhappy” and 3 respondents are“very happy”. Finally, the mean score is 3.02, so the fairness is “neither happy nor unhappy”.According to the mean score of 3.02, we can see that fairness influences job satisfaction inpharmaceuticals companies. (See, Appendix-04)Level on Job Security In terms of level on job security in pharmaceuticals companies, the study found that 50respondents perceived job security in pharmaceuticals companies to be “neither happy norunhappy”, 24 respondents perceived job security in pharmaceuticals companies to be“somewhat happy”, while 17 respondents perceived job security in pharmaceuticals companiesas “somewhat unhappy”. 5 respondents rated job security as “very unhappy” and 4respondents were “very happy”. Finally, the mean score is 3.08, so job security inpharmaceuticals companies is “neither happy nor unhappy”. According to the mean score of3.05, we can see that job security influences job satisfaction in pharmaceuticals companies.(See, Appendix-05)Level on Relationship with co-workers:In terms of level on relationship with co-workers in pharmaceuticals companies, the studyfound that 42 respondents perceived relationship with co-workers to be “neither happy orunhappy”, 25 respondents perceived the relationship with co-workers to be “somewhat happy“and 19 respondents “somewhat unhappy”. Only 1 respondent rated the relationship with co-workers “very unhappy” and 13 respondents were “very happy”. At last, the mean score is 3.30,so the relationship with co-workers is “somewhat unhappy”. According to a mean score of 3.30,we can see that relationship with co-workers influences job satisfaction in pharmaceuticalscompanies. (See, Appendix-06) 15
  16. 16. Level on Relationship with immediate supervisorIn terms of level on relationship with immediate supervisor in pharmaceuticals companies, thestudy found that 49 respondents perceived relationship with immediate supervisor inpharmaceuticals companies to be “neither happy or unhappy” 14 respondents perceivedrelationship with immediate supervisor as in pharmaceuticals companies to be “somewhathappy”, while 25 respondents perceived relationship with immediate supervisor inpharmaceuticals companies as “somewhat unhappy”. 8 respondents rated relationship withimmediate supervisor as “very unhappy” and 4 rated it as “very happy”. Finally, the mean scoreis 2.81, so relationship with immediate supervisor in pharmaceuticals companies is “somewhatunhappy”. According to the mean score of 2.81, we can see that relationship with immediatesupervisor influences job satisfaction in pharmaceuticals companies. (See, Appendix-07) 16
  17. 17. PERFORMANCE APPRAISAL & EMPLOYEESATISFACTION [AN OVERVIEW]MULTINATIONAL COMPANIESPerformance Appraisal Process in GlaxoSmithKline Bangladesh LtdGSK Bangladesh Ltd. has four functional sub-department of HR department. The departmentsare HR Development, HR Services, Compensation, Industrial Relations. Performance appraisal ispracticed under Operation of HR Services. GSK has divided its total employees into 2 categoriesfor appraisal: (1) management employees and (2) non-management employees. Formanagement employees, it has been divided into director, manager and officer. There are twocategories of officer. One is office based officer and another is field force officer. Office basedofficers are also of two types, one is commercial officer and another is global manufacturing &supply (GMS)/ factory officer. Covering the above categories in total six types of appraisalsystem is used in GSK Bangladesh Ltd. such as: (1) director, (2) manager, (3) commercial officer,(4) global manufacturing & supply (GMS)/ factory officer, (5) field force officer, and (6) non-management staff. All this appraisal process has been conducted once in a year with a midyearreview option.Sales Force Officer’s Appraisal Process in GSKIn case of measuring the performance of sales force officer following adjectives are considered:target achievement (give percentage if available), product knowledge, market knowledge,customer relations (doctors, chemists etc.), selling skills (detailing, listening & closing),knowledge of competition, achievement of work assigned (doctors/chemist calls), ability toorganize work, initiative, quality of reporting, attitude towards superiors & colleagues, activeparticipation in conference & meeting, effective utilization of promotional materials,trustworthiness and integrity and, attention to safe working. 17
  18. 18. Performance Appraisal Process Overview in Roche Bangladesh LtdAt Roche, performance is assessed by comparing anticipated achievements with the actualones, taking into account external and personal factors, which may have determinedor influenced the actual achievements although MBO approach is practiced at Roche. An overallappraisal of the employee is made on the basis of this comparison, taking into considerationthe results of previous appraisals and other assessable factors. The PA of Roche concludes withsuggestions for suitable steps to be taken for the utilization and encouragement of thestrengths of the employee and the elimination of weaknesses all of which relate to his presentassignment and possible future assignments. Roche observes some principles for theimplementation of a PA, which are as follows:Principles for the Implication of a PA: • The employee is neither good nor poor but is considered to be more or less suited for the job or duties he is expected to fulfill. • His suitability can, therefore, only be measured by objectively assessing his performance • Personal circumstances and characteristics, which are not relevant to his performance and performance, related behavior must not be allowed to influence the appraisal result. • Each employee is motivated from within to a certain activity and has the urge to develop himself. The appraisal should, therefore, aim at fostering his urge for development. • If the PA is correctly understood, it is a common concern of the superior and his subordinate. Therefore, the establishment of the appraisal basis as well as the appraisal itself should be built upon their interpersonal relationship. 18
  19. 19. PA at Roche is done twice a year and the following individuals provide information regarding performance appraisal of an employee: The employee himself & Supervisor or Immediate superior.PA Interview with the Employee:The Appraisal Interview between the direct supervisor and the employee concerned is a veryimportant aspect of Performance Appraisal. In this step, the employee is informed of the resultof the appraisal and has the opportunity to give his opinion.Personal Skill Analysis:This is another important aspect of PA which is done on a number of set criteria or groundsrated on 5 grades: A+, A, B, C, D, and E; these grades are assigned the following points: 10, 9, 8,6, 4, and 2 respectively. There are also comments or remarks on the grades: A+ stands for“Outstanding”, A for “Very Good”, B for “Good”, C for “Average”, D for “Below Average”and E for “Does not satisfy”. • Knowledge/Skill & Performance/Efficiency • Cooperation & Team Spirit & Communication • Punctuality & Loyalty, Honesty and Confidentiality • Motivation & Sincerity • Hard working/Ability to work under pressure & Attitude & Behavioral pattern • Planning & Decision Making & Initiative/Drive/Creativity • Leadership/Staff development/DelegationSelling Skill/Salesmanship PA at Roche, unlike that in some other organizations is verydemocratic because the PA form is signed both by the Supervisor and the employee concerned.This indicates that the employee gets to know how he or she has been evaluated andcan also figure out the extent to which PA is true and fair. PA at Roche, unlike that in someother organizations is very democratic because the PA form is signed both by the Supervisor 19
  20. 20. and the employee concerned. This indicates that the employee gets to know how he or shehas been evaluated and can also figure out the extent to which PA is true and fair.PERFORMANCE APPRAISAL & EMPLOYEESATISFACTION [AN OVERVIEW] LOCALCOMPANIESPerformance Appraisal Process in BEXIMCO PHARMA Bangladesh LtdPerformance Appraisal:At BPL appraisals are done by the Self-appraisal system. Goals are set byparticipative_management approach and performance is evaluated quantitatively against thosepreviously set objectives. Managers appraise the performance of their subordinates through 5points Graphic Rating Scale. The total appraisal process is completely transparent to everyonewithin the organization: 1 for unsatisfactory, 2 for marginal, 3 for target, 4 for superior, 5 foroutstanding.Employee Compensation:Employee compensation refers to all forms of pay or rewards going to employees and arisingfrom their employment. It has two main components: 1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses. There are two ways to pay directly: • Time based pay: Daily, hourly, weekly, biweekly or monthly wages and salaries • Performance based pay: Ties compensation directly to the amount of product the worker generates. 2. Direct payments: Financial benefits like employer-paid insurance and vacations.Factors influencing the design of compensation plan • Legal considerations in compensation 20
  21. 21. • Union influences on compensation decisions • Corporate policies and competitive strategy • Policy issues affecting the plan of an organizationEstablishing Pay RatesThe Salary Survey: A survey aimed at determining prevailing wage rates. A good salary surveyprovides specific wage rates for specific jobs. Formal written questionnaire surveys are themost comprehensive, but telephone surveys and newspaper ads are also sources ofinformation.Job Evaluation: A systematic comparison done in order to determine the worth of one jobrelative to another. Job Evaluation method includes: 1. Ranking: Involves ranking each job relative to all other jobs, usually based on overall difficulty. There are several steps in this method: • Obtain job information for each job • Rank jobs by department or in clusters • Select just one compensable factor • Rank jobs • Combine ratings 2. Job Classification: Categorize jobs into groups 3. Point Method: A number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined. 4. Factor comparison: Ranking jobs according to a variety of skill and difficulty factors, and then adding up these rankings to arrive at an overall numerical rating for each given job. 21
  22. 22. Benefits and Rewards PackageIndirect financial and non financial payments employees receive for continuingtheir employment with the company.There are several types of benefits: • Supplemental Pay Benefits • Insurance Benefits • Vacations and Holidays • Sick Leave • Parental Leave and Family Leave • Medical Leave • Retirement BenefitsHealth & SafetyPre employment medical check-up:The selected person before joining has to go through full medical check-up that guaranteeshis /her physical fitness to perform the job successfully. A medical practitioner who uses aphysical capability analysis that assesses the candidate against the physical capabilitiesdocumented for each role conducts the medical check-up. A medical is also appropriate forinternal candidates if they are applying for positions that require different physical capabilities.Medical Facilities:Doctors are arranged to visit each location of numbers of times a week to provide necessarymedical support to the employees. Moreover, the non-management staffs enjoy medicaltreatment at Hospital at company arrangement.Health Insurance Policy:Management staffs enjoy health insurance for self, spouse and two children up to 21 years forhospitalization only. Delta Life Insurance provides the insurance and the company pays thepremium. 22
  23. 23. Company Safety PolicyIt comes from the group chief executive to adapt in all the country. The local CEO counter signsthe policy for each individual country and the copy of the policy is circulated to all the levels inthe organization. So it is the duty of all the employees’ to emphasize on safety. There is an Oathin BPL, Bangladesh regarding safety. That is “SAFETY FIRST – QUALITY MUST”. The safety policyof BPL, Bangladesh “safety health and environment management” which is signed by the CEOcarries certain messages for us. It complies with the local safety laws of Bangladesh. Oneimportant issue of this policy is DUTY OF CARE. It can be described as not to do any things thatmay cause risk to others, properties even to me and also let other not to do even that mayhazardous to him only. There is another planning for emphasized on safety. Safety aspect mayinclude in every one’s KPI & CSF. There are some other important points of the policy that weshould care and implement per hour daily work. 23
  24. 24. Performance Appraisal Process in SQUARE PHARMA LtdPerformance AppraisalThe supply chain department of SPL conducts the performance appraisal for all the employeesof the department. The HR department helps in this process. At first the employees are giventhe opportunity of self-evaluation. Later on the employees are evaluated by their reportingboss and the person supervising his boss. Thus all the employees including the AGM and EDAare evaluated. The MD evaluates the EDA’s performance. For this evaluation purpose there is aspecific performance appraisal form. Then the AGM, EDA and MD sit together to take decisionsbased on the employee evaluation. If any employees performance is not satisfactory then theydecide about how the performance of that employee can be improved. If any employee’sperformance is outstanding then he gets a promotion.Reward and Compensation SystemThe reward system of an organization includes anything that an employee may value and desireand that the employer is able or willing to offer in exchange for employee contributions. Thereward system consists of a compensation and non-compensation system. Compensation refersto all forms of financial returns and tangible services and benefits employees receive as part ofan employment relationship.Pay StructurePay structure is the relative pay of different jobs (job structure) and how much they are paid.The pay structure for the employees of the supply chain department of SPL is shown below: Basic Salary + Home Rent + Transport + Medical Allowance 24
  25. 25. Overall Summary [Employee Job Satisfaction] 1. Satisfaction with Interpersonal RelationsTable-1 shows the satisfaction level of entry level officers with factor of interpersonal relations.Tale shows that majority of the respondents 82% (62% highly satisfied and 20% satisfied) inlocal and 80% (47% highly satisfied and 33 satisfied) in multinational are satisfied withinterpersonal relations in organizations. In summing up it can be inferred that both local andmultinational organizations are having good culture offering interpersonal relations. Table 1: Satisfaction with Interpersonal Relations [sales representative] Multinational Level of Local Organization Total Organization Organization Satisfaction Number Percent Number Percent Number Percent Highly 3 6 Nil Nil 3 4 Dissatisfied Dissatisfied 2 4 02 13 4 6 Undecided 4 8 01 7 5 8 Satisfied 10 20 05 33 15 23 Highly 32 62 07 47 39 59 Satisfied Total 51 100 15 100 66 100 2. Satisfaction with Compensation Package (salary, fringe benefits)Table 2 reveals the results of satisfaction of middle & entry level managers regardingcompensation and reward packages being offered by the organizations. It reveals thatmanagers of both local and multinational organizations are not happy with the rewards offeredby the organizations; as dissatisfied managers are 63% (35% highly dissatisfied and 27% aredissatisfied) in local and 46% (13% highly dissatisfied and 33% dissatisfied) in multinationalorganizations. It reveals that compensation packages are not sufficient in both organizations,but local organizations are relatively low paying organizations. When we look at the satisfiedmangers, the satisfied managers are 40% in multinational organizations, while that ratio is only 25
  26. 26. 24% in local organizations. This proves that multinational organizations are relatively offeringbetter packages. Table 2: Satisfaction with Compensation Package (salary & fringe benefits) Local Multinational Level of Total Organization Organization Organization Satisfaction Number % Number % Number % Highly 18 35 2 13 20 30 Dissatisfied Dissatisfied 14 27 5 33 19 28 Undecided 07 14 2 14 9 14 Satisfied 06 12 3 20 9 14 Highly Satisfied 06 12 3 20 9 14 Total 51 100 15 100 66 100 3. Satisfaction with Professional EffectivenessSatisfaction level of middle level managers is given in table 6. Results reveal that majority of therespondents 80% (19% highly satisfied and 51% satisfied) in local and 87% (14% highly satisfiedand 73% satisfied) in multinationals are satisfied with the professional effectives offered bytheir organizations. It shows that managers are provided with the professional developmentopportunities and they are professionally effective. Table 3: Satisfaction with Professional Effectiveness Local Multinational Level of Total Organization Organization Organization Satisfaction Number % Number % Number % 26
  27. 27. Highly 1 2 0 0 1 1 Dissatisfied Dissatisfied 3 6 0 0 3 5 Undecided 11 22 2 13 13 20 Satisfied 26 51 11 73 37 56 Highly Satisfied 10 19 2 14 12 18 Total 51 100 15 100 66 100 4. Overall Job SatisfactionTable-7 shows the overall job satisfaction of middle level mangers. It reveals that 62% (38%highly satisfied and 24% satisfied) in local and 74% (54% highly satisfied and 20% satisfied) inmultinational organizations are satisfied with their job. It shows that majority of middle levelmanagers are satisfied but the satisfaction level of middle level managers is slightly high in themultinational organizations. This table also shows that none of the middle level mangers washighly dissatisfied in the multinationals but 10% of the middle level managers were highlydissatisfied in the local organizations. Table 4: Overall Job Satisfaction Multinational Level of Local Organizations Total Organizations Organizations Satisfaction Number Percent Number Percent Number Percent Highly 5 10 Nil Nil 5 8 Dissatisfied Dissatisfied 6 12 2 13 8 12 Undecided 8 16 2 13 10 15 Satisfied 12 24 3 20 5 23 Highly Satisfied 20 38 8 54 28 42 Total 51 100 15 100 66 100 27
  28. 28. CONCLUSIONSEmployee job satisfaction can improve service quality and increase employee satisfaction. Inthis circumstance, policy makers and managers have turned their attention to provide differentkinds of facilities to their employees in order to satisfy their employees. This study testedfactors affecting job satisfaction for pharmaceuticals companies. The results suggest that thefactors had satisfactorily explained job satisfaction and that the policy makers and managersshould focus on the factors that affect employee job satisfaction, if they want to enhance theirbusinesses. Based on the results for the standardized values, we are able to see that workconditions, fairness, promotion, and pay, are key factors affecting pharmaceuticals companiesemployees’ job satisfaction. Money is a good motivator, actually all employees’ work formoney, employees need the money, a good salary and good compensations are key factors insatisfying the employee. The factor of work conditions is also proven to have significantinfluence over the pharmaceuticals companies. The physical design of the place does havecertain impacts on job satisfaction. Because the work conditions in the pharmaceuticalscompanies include the employee relationships and work environment, all these factors relateto employee job satisfaction. A good performance appraisal system, work environment andgood work conditions can increase employee job satisfaction and the employees will try to givetheir best which can increase the employee work performance.Results of the study reveal that middle level managers are satisfied in both local andmultinational organizations; but mangers of multinational organizations are slightly moresatisfied then the local organization managers. When mangers were inquired for all thedimensions of organizational climate it was found that there was not much difference in bothlocal and multinational organizations on the facets of organizational climate except for pay andreward system. Middle level mangers of local organizations were not satisfied with the pay andreward system but the employees of the multinational organizations show that pay and rewardsystem in their organizations are good and fair. 28
  29. 29. APPENDIX: 01Employees’ Satisfaction Interview Schedule:The following questions are designed only for research purpose. The researcher has no intention torepresent this information negatively in his paper. The information will be kept confidently. For thefollowing questions, respondents should be asked to indicate whether they agree (A), Disagree (D),Strongly Agree (SA), Strongly Disagree (SD), or are Neutral (N).Name:Age:Designation:Department: SL SURVEY QUESTION SA A N D SDLevel on work conditions 1 I am satisfied with the working environment of the company. 2 I am satisfied with job location. 3 I am satisfied with the present working hour. I am satisfied & able to maintain a healthy balance between work and 4 family life. 5 I have an annual set of performance standards.Level on Pay and Promotion 6 I am satisfied with the existing salary structure of the company. I am satisfied with the compensation I get & I think it matches with my 7 responsibility. Our company maintains salary levels that compare well to other companies 8 in this area.Level on Fairness 9 I am happy with my work responsibilities. I am satisfied with the present performance appraisal policy of the10 company. I am satisfied and think Ive been awarded right set of duties, as per my11 ability. I feel there is adequate opportunity for me to move to a better job within12 the company.Level on Job Security13 The company has adequate safety & health standard. I am satisfied with long term benefit & insurance policies of the company.14 29
  30. 30. Level on Relationship with Co-workers15 The employees in my department work well in a team.16 My department is well organized for the work it does. 17 I receive co-operation from all other departments.Level on Relationship with Immediate supervisor 18 My Supervisor recognizes my performance.19 I receive regular Job performance feedback.20 The company recognizes the accomplishment of employees.Questionnaire on: Performance appraisal in Pharmaceutical Industry.Question 1 Do you think it is necessary to appraise performance of an employee? a) Yes b) NoQuestion 2 What type of employee you select to appraise their performance? a) Survivor b) Performer c) Hard worker d) a, b, cQuestion 3 Appraising performance is a part of our organization? a) True b) False c) Partially a and b d) NoneQuestion 4 Who appraise the performance?Question 5 Is performance appraisal done to find out the strength and weakness of an employee?Question 6 Does it helps to build strong team performance?Question 7 Does it bring the performance quality?Question 8: How many times you appraise the performance of your employee in a year?Question 9 Can an employee get several performance appraisals in a particular year? a) Yes b) No c) MaybeQuestion 10 Does your employee need a certain period of time to be a part of performance appraisal?Question 11 In what criteria you choose most to appraise the performance? a) Behavioral aspects 30
  31. 31. b) Working capability c) Building strong communication d) Job handling power e) CompetencyQuestion 12 What sort of criteria an employee should meet to be a part of performance appraising bythe firm?Question 13 If any criteria do not meet by the employee, what will be the consequence?Question 14 Is there anything that is most needed to appraise the performance of your employee?Question 15 Does performance appraisal brings any promotion to an employee? a)Yes b) NoQuestion 16 Is there any other option by which performance appraisal can be done? If so what are the reason behind that?Appendix: 02. Level on work conditions Satisfaction level Value of Frequency(f) d = X-A fd (X) Very Unhappy 1 7 -2 -14 Unhappy 2 15 -1 -15 Neither Happy nor Unhappy 3(A) 44 0 0 Happy 4 29 1 29 Very Happy 5 5 2 10 ∑f=100 ∑fd=10 X= A+ (∑fd/∑f) =3+ (10/100) =3.10 = 3.10×20 =62% 31
  32. 32. Appendix: 03. Level on Pay and Promotion Satisfaction level Value of Frequency(f) d = X-A Fd (X) Very Unhappy 1 4 -2 -8 Unhappy 2 21 -1 -21 Neither Happy nor Unhappy 3(A) 49 0 0 Happy 4 21 1 21 Very Happy 5 5 2 10 ∑f=100 ∑fd=2 X= A+ (∑fd/∑f) =3+ (2/100) =3.02 = 3.02×20 =60.40%Appendix: 04. Level on Fairness Satisfaction level Value of (X) Frequency(f) d = X-A fd Very Unhappy 1 6 -2 -12 Unhappy 2 16 -1 -16 Neither Happy nor Unhappy 3(A) 51 0 0 Happy 4 24 1 24 Very Happy 5 3 2 6 ∑f=100 ∑fd=2 X= A+ (∑fd/∑f) =3+ (2/100) =3.02 = 3.02×20 =60.40%Appendix: 05. Level on Job Security Satisfaction level Value of Frequency(f) d = X-A fd (X) Very Unhappy 1 5 -2 -10 Unhappy 2 17 -1 -17 Neither Happy nor Unhappy 3(A) 50 0 0 Happy 4 24 1 24 Very Happy 5 4 2 8 ∑f=100 ∑fd=5 X= A+ (∑fd/∑f) =3+ (5/100) =3.05 = 3.05×20 =61% 32
  33. 33. Appendix: 06. Level on Relationship with Co-workers Satisfaction level Value of Frequency(f) d = X-A fd (X) Very Unhappy 1 1 -2 -2 Unhappy 2 19 -1 -19 Neither Happy nor Unhappy 3(A) 42 0 0 Happy 4 25 1 25 Very Happy 5 13 2 26 ∑f=100 ∑fd=30 X= A+ (∑fd/∑f) =3+ (30/100) =3.30 = 3.30×20 =66%Appendix: 07. Level on Relationship with Immediate supervisor Satisfaction level Value of Frequency(f) d = X-A Fd (X) Very Unhappy 1 8 -2 -16 Unhappy 2 25 -1 -25 Neither Happy nor Unhappy 3(A) 49 0 0 Happy 4 14 1 14 Very Happy 5 4 2 8 ∑f=100 ∑fd=-19 X= A+ (∑fd/∑f) =3+ (-19/100) =2.81 = 2.81×20 =56.20% 33

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