India is the third largest pharmaceutical market by volume and accounts for 8% of the global market share. The pharmaceutical manufacturing units are largely concentrated in the states of Maharashtra and Gujarat which together account for around 44% of the total pharmaceutical manufacturing units in India. Modern Pharmaceuticals Limited is located in MIDC Marol Mumbai and deals with pharmaceutical machinery, holding franchises from several Indian firms.

1. PHARMACEUTICAL INDUSTRY
•India is the world's third-largest in terms of
volume
•Rs 25,000 crore (USD 5 million) market share.
• It is a net exporter with about 8 per cent
market share of the USD 340 billion global.
•The pharmaceutical
manufacturing units are largely
concentrated in Maharashtra and
Gujarat.
•States account for around 44% of
the total number of
pharmaceutical manufacturing
units in India.

2. Presentation on Modern
Pharmaceuticals Ltd
By
Thakur Shruti Singh
13MBMA65

3. MAHARASHTRA INDUSTRIAL
DEVELOPMENT CORPORATION (MIDC)
• A project of the government of Maharashtra state in India and is the
leading corporation of Maharashtra. It provides businesses with
infrastructure such as land (open plot or built-up spaces), roads, water
supply, drainage facilities and street lights. Mr Bhushan Gagrani,
IAS, is the CEO of MIDC.
• MIDC has developed specialised parks based on sectors such as:
Pharmaceuticals, Transportation, Textile Electronics, Information
Technology etc.,
GENERALAGREEMENT ON TARIFFS
AND TRADE (GATT)
multilateral agreement regulating international trade.

4. Modern Pharmaceuticals Limited
•Its located in MIDC Marol Mumbai
•Is deep routed in Pharmacy Industry and deals with
pharmaceutical machinery
•Holds franchises from several Indian firms
•With a strong dedicated sales team and high
market growth since 1993

5. GIST• 1995-1997
– Revenue 500%
– Incentives 200%
– Salaries 100%
• 1997
– Attrition 10%-25%
• 1998
– Analyzed the quarterly figures – the sales of 4th quarter
,1997 were 23% lower than the 3rd Quarter and this in turn
was 40%
• Disagreement between BP and PD
• PD wrote a stiff letter against BP to GM (Head of HR)

6. • Disagreement on current Appraisal System between Prakash
Desai(Senior Manager Sales) and Bakul Parikh(Manager Sales)-
1997
• Is there a need for change in PAS?
• Lack of Ownership

7. India: primitive stage - 20th Century -foreign countries
1900-1960 To control cheap drugs in market, Government passed the Poisons Act 1919.
1960-1970 The market share was dominated by multinational companies very few Indian
manufacturers were present.
The Indian Pharmaceutical industry was in an early stage of growth.
1970-1980 Government took control for the medicines regulation and issued few acts and
rules.
Indian Patent Act 1970--local companies began manufacturing products/ drugs
1) increased exports to countries Russia, Africa, etc
2) Export of Bulk drug post patent expiry
1990-2000 The pharmaceutical industry has observed a rapid expansion of domestic
market and during same era globalisation happened.
India joined Paris Cooperation Treaty (PCT) in 1999 and implemented product
patent effective from Jan 1, 2005.
2000-present This period is considered to be the Innovation and Research era.

8. PD rises sales
Approached
GM
PD Disagrees
BP
Addresses
Problem
Modern
pharmaceutic
als
PD AND BP DISCUSSION

9. AS A HEAD HUMAN RESOURCE MANAGER

10. Methodology for Team Building
• Bring back Ownership
• Experiential games
• Role plays
• Group work
• Discussions
• High experiential activity

11. INDUSTRY RELATIONS ACT FOR
MISCONDUCT
• The said sub-clause reads as fol- lows: "In awarding
punishment by way of disciplinary action the authority
concerned shall take into account the gravity of
the misconduct, the previous record, if any, of the employee
and any other aggravating or extenuating cir- circumstances
that may exist. Where sufficiently extenuating circumstances
exist the misconduct may be condoned.
• Hence this can only be taken care off by Industry Relations
Officer

12. 12
SET DIMENSIONS FOR PERFORMANCE
Key result area #1
Business Plan
Achievement 40%
Key result area #2
People
development 10%
Key result area #3
Competencies
40%

13. TAYLOR’S DIFFERENTIAL PIECE RATE
PLAN
(to calculate insentives of the Employees)
Workers No of Units
Completed
In Allotted
Time
% of
Efficiency
Total
Amount
Received
Basic Piece
Rate
Effective
Piece Rate
Because we cannot have a fixed pay system in sales
sector ,incentives would bring back the motivation in
the employees to achieve their targets or even exceed
them.

14. 14
•Inflation rate factor
•Market potential (what of individuals worth according to
his/her expertise, job experience etc.)
•Matching with his/her present career path
•Personal development of an individual
•Sales rewards
PARAMETERS USED AS A BASE FOR
REWARD SYSTEM

15. SUGGESTION:
MANAGING BOTTOM PERFORMERS
 Prepare robust 30-90 day Performance Improvement Plan (PIP) – include specific,
measurable actions with clear timelines
 Guiding Principles
– Longer for Senior people with newly identified performance issues.
– Shorter for more junior people, or people with a history or pattern of performance
issues.
 Review & Take appropriate actions
–If PIP results completely on-track, then align back to KRAs for the role.
–If results not on track, but demonstrates maturity and drive to improve
performance, revise PIP with shorter timelines (e.g. 30-60days)
–If results not on track, and does not demonstrate enough drive to improve
performance, exit. – Failure, exit Guidelines

16. EXAMPLES
• TATA MOTORS:
-They have implemented KRA’s on quarterly basis
and aliened them with business objectives and
achieved remarkable results.
-Employees who met these KRA’s exceptionally well were
give bonus twice a year.
• COCO-COLA:
-Implemented KRA’s specially in Sales sector and could
achieve the targets.
-Performance was rewarded on monthly, quarterly and
yearly basis.