Square Pharma
Square Pharma
Square Pharma
INTRODUCTION: 1.1 Objective: To find the existing human resource planning process of Square Pharmaceuticals. To analyze the HR demand forecast of the organization. To identify the process of employee demand and supply forecasting process conducted for sub-units. To identify the promotion process within the organization and to know the process to prepare replacement chart. To learn how to collect information from both internal and external sources. To learn how to use primary and secondary sources to gather required information for the report.
1.2 Methodology : This term paper mainly is Based and focused on the Application of the HUMAN Resource Planning Approaches of Square Pharmaceuticals Ltd, Bangladesh. In order to accomplish the specific objectives, data and informations we have collected data from Square Pharmaceuticals and from other secondary sources. We went to Square Pharmaceuticals Ltd.(Head office at Mohakhali) physically and interviewed the Executive HR for acquiring and gathering necessary informations. Both primary as well as the secondary form of data was used to prepare the report. The details of these sources are highlighted below:
1.2.1: Types of Sources Data: 1.2.1.1Primary Sources: Primary data for this report had been collected through the questionnaire, interview, conversation & discussion of Executive HR in Human resource department. On the job observation of officers
has helped a lot to know information of working process in the Service sector. The Executive HR of Square Pharmaceuticals Limited was quite friendly & cooperative to provide lots of information to prepare this report. 3.1.2 Secondary Sources:
We gathered secondary source of data, which are already existed or collected for some purpose other than the current investigation, which we used in report. We gather information from many sources of books, journals, articles and some other relevant publication documents. 1.2.2: Analysis Plan: Firstly, we gathered all the data for making this report. Then we arrange different data methodically. 1.3 Limitation of the study: When we studied this we found some problems .these problems affect or study highly. These limitations make a barrier to fulfill our study. To make this report we face difficulties in coordination of time of all group members, it was difficult to sit together for the task because of recent political conditions. We also did not get the chance to talk with the higher level management of Square Pharmaceuticals Ltd. Another limitation was, we were not allowed to use any recording device while interviewing.
Vision:
They view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.
Mission:
Their Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large
Objective:
Their objectives are to conduct transparent business operation based on market mechanism within the legal & social framework with aims to attain the mission reflected by our vision.
3.1.1.1 Top Management: Board of Directors As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management. 3.1.1.2 Executive Management The Executive Management is headed by the Managing Director, the Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by the Board of Directors. The Executive Management operates through further delegations of authority at every echelon of the line management. The Executive Management is responsible for preparation of segment plans/sub-segment plans for every profit centers with budgetary targets for every item of goods & services and is held accountable for deficiencies with appreciation for exceptional performance. These operations are carried out by the Executive Management through series of committees, sub-committees, ad-hock committees, standing committees assisting the line management.
3.2 Human Resource: Practices & Climates: SQUARE, with its progressive business outlook, believes and practices corporate work culture with a classic blend of efficiency and equity. SQUARE believes in company growth by increasing efficiency level of employees and for that offering excellent environment and support for skill and knowledge up gradation. Square values productivity as the spontaneous contribution of Human Resources. Strategic Human Resource Development Programs are the energy sources for SQUARE HR for running towards the zenith of success. Flow of clear and specific information and justification of queries play the vital role to ensure the market reputation of SQUARE as the most trusted and transparent company and it enriches the motivation level of HR who are the real contributors and owners of his / her own jobs. At SQUARE, HRD symbolizes the unique blending of professionalism as well as sharing the stress and success equally like a family where every member has deep concern, feelings and pride for their own company SQUARE. HR ensures the strong supporting role to develop & implement HR policy guidelines for ensuring uninterrupted operation and spontaneous participation to achieve organizational objective as well as fulfillment of employee needs. HR is maintaining an effective way to deal with labor union and still no unrest has been recorded as dispute. Personnel working here are taking care of SQUARE as if it is their own family. Employee-employer relation is cordial and supporting always. 3.3 From the external environment: 3.3.1 Technology: Square Pharmaceuticals uses both automatic and manual technology. Also uses some specialized software for some other purpose. The company is endeavoring to upgrade and adopt new technology in production, quality control, distribution and administration of its, products to patients. 3.3.2 Completion:
Bangladeshs pharmaceutical industry is the third largest tax paying industry in the country. Square Pharmaceuticals Limited (SPL) is the largest pharmaceuticals company in Bangladesh. Incepta, Beximco, Oposonin, Reneta, ACI and ACME were the main competitor of Square Pharma. The IMS audit found Square Parma maintaining its leadership position in the domestic market with its share at 18.71 per cent, followed by Incept, at 9.34 per cent. Beximco Pharma's position in the retail market was the third one, accounting for 8.82 per cent share of the overall market. Opposing Parma was placed as the fourth drug producer in Bangladesh, with its market share at 5.09 per cent, and sales growth by 27.18 per cent. The IMS data said Renata and Eskayef were in the fifth and sixth positions in the market. 3.3.4 Labor standard: SPL recognizes that progressive labor policies are good business practices, especially for a company that has global ambition. The Company follows laws and encourages a work environment that welcomes diversity and fair treatment in the recruiting process and the workplace. Groups HR policy strictly prohibits any form of forced labor in SPL or in any other SBUs of Square. The Group actively pursues the policy of No employment for Children in Square and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs of the Group. 3.3.5 Government regulations: Square lay down and practiced policies to foster good industrial relations in all its plants and establishments. SPL like the other Strategic Business Units (SBU) of the Group maintains and upholds HR policies that are consistent with the Labor Laws of the country. Square Pharmaceuticals Ltd leads the Group in encouraging workers freedom of association and their right for collective bargaining
MANPOWER REQUIREMENT FOR THE YEAR 2012 2007 Executive Staff Workers Total manpower
1143 796 764 2703
2008
1242 913 846 3001
2009
1525 1110 929 3564
2010
1710 1339 1050 4099
2011
1845 1532 1320 4697
2008
1242 913 846 3001
2009
1525 1110 929 3564
2010
1710 1339 1050 4099
2011
1845 1532 1320 4697
Forecast (2012)
1493 1138 981 3612
= 3612.8
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= 3612
4.2. WEIGHTED AVERAGE METHOD: 2007 Weight Executive Staff Workers Total manpower 1
1143 796 764 2703
2008 2
1242 913 846 3001
2009 3
1525 1110 929 3564
2010 4
1710 1339 1050 4099
2011 5
1845 1532 1320 4697
Forecast (2012)
1617 1264 1069 3950
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= 1069.
Forecasted manpower requirement for the previous period (Ft-1) = 4099 Actual manpower requirement for the previous period (At-1) = 4697 Smoothing constant () = 0.4 We Know, Forecasted manpower (Fm) = Ft + (At-1 Ft-1) = 4099+ 0.4 (4697-4099)
= 4338.2 = 4338
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4.5. LABOR TURNOVER IINDEX: Beginning Manpower = 5000 Ending manpower in the same year = 4697 Number of recruitment = 0
Number of employees leaving Labor turnover index = ------------------------------------------------------* 100 Average number of employees employed
COHORT ANALYSIS:
Employee leave 30 33 35 36 38
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5.2. HR Forecasting:
Square pharmaceutical company conduct its HR forecasting cindering some factors. Such as First each organization sub unit has to submit its net employee requirement to the head office forecasting unit based on future needs for labor required to meet the agreed on corporate and sub unit objectives ( market share, production, size or expansion). Second For calculating every sub-unit HR demand it basically consider how many employees retire, die, are fired or otherwise terminated or take long-term leave as well as the replacement for individuals who are promoted, or transferred out of the department. All these elements they included in the calculation of departmental or sub-unit HR demands. These sub-unit labor demands are then aggregated and used as the starting point for the HR demand forecasting. Sometime when they expand the product line in to their organization, than their employee demand is more in to their organization that are considering in to their demand forecasting. It has many non-managerial positions such as- senior marketing Promotion Officer, marketing Promotion Officer, and Territory Manager. Senior Regional manager (SRM) collects information from every Territory Manager, how many employees they have need in this year. Then SRM calculate the aggregate demand of employee and send the information to the HR manager. Its Production department is dividing in two units, one is Dhaka unit and another one is Pabna unit. There are 5000 employees in total in two projects.. Both unit manager calculate their own
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unit requirement and send the information to the HR manager. Pabna unit manager also do same work. Third HR manager calculate the all aggregate demand of employee for this year. employee in two way on the on time horizon basis. One is short-term forecasting and long-term forecasting. But usually they forecast for short term. Short-term forecasting offer the best estimate of the immediate HR need of an organization. Sometime they forecast for long term. But long-term forecasting do not provide actual requirement in to organization. Though square pharmaceutical use long-term forecasting for some long-term project or executive level forecasting. It thinks that short-term forecasting is the best time horizon. When it start forecast for needed employees, 5.3. HR Forecasting for managerial employee: For the managerial employee it collect information from each department than aggregate them. After aggregating all information from all departments they get required manpower. In previous calculation we saw that external supply is 610.and internal supply is 1357. As both supply is in (-) figure so no need to requite new employee in managerial level. Company should downsize employee. In the admin department they have 279 existing employee, and they need 461 employee during the year. In the marketing department they have 1614 existing employee and they need 1871 employee during the year. In the operation department they have 1490 existing employee and they need 1765 employee during the year. So total aggregate existing employee 3383, and they need 4097 employee during the year. 5.4. HR Forecasting for non managerial employee: For non managerial employees, HR forecasting is basically done on the basis of expansion plan of the company. About 1600 non-managerial employee are work in the two project. On the basis of current human resource from the year 2006 to 2011 & calculating by using MOVING AVERAGE METHOD the company needs to recruit more 981 & by using WEIGHTED AVERAGE METHOD 1069 worker for non managerial level, as they have plan to expand their business.
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5.5. Develop Training & Employee Development in Square pharma: Square Pharmaceuticals Training & Development enables its people to enhance their skills, keep them updated with recent changes. Basically Square Pharmaceutical develop their training program yearly basis & offer both on-the-job and off-the- job at both theoretical and practical training opportunities through a range of Local, Regional and International Training programs that include both functional and managerial levels on the basis of Training Need Assessment. Training Need Analysis (TNA) is conducted by Department Heads and Human Resource Department jointly on the basis of job analysis. Every year 1200 approximately Field Forces-Medical Promotion Officer (MPO). MPO officer get 3 month off the job training, and then they recruit them. Senior Medical Promotion Officers (SMPO) are also get training. But they get on the job as well as of the job training, every month or every few month. Also 500 management staffs and 700 non-management staffs getting training per year. 5.6. Management Development Training Round the year, management development training is organized for managers & executives at our Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource persons from home & abroad conduct the training sessions. We also send our employees to renowned local training institutes for specialized training. 5.7. Overseas Training It sends its employee to abroad for training program depending on availability of appropriate topics. 5.8.Field Forces Training & Development Each year, a significant number of Field Forces complete their induction training program and joined to their respective markets and appear at examination in every month for further development.
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5.9. Field Forces Refresher Course For updating product knowledge and selling skills of field forces, Refresher Course is organized in four different regions in every month. 5.10. Territory Manager Training Twice in every year, mid-level managers of sales participate in the training program titled Sales Territory Management at a regular basis. 5.11.Distribution: Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under induction training program immediately after initial recruitment. Each month, Refresher course for DA, Driver and Packers is organized in two different depots for updating their knowledge. So we can say that Square is very much focused on their training. 5.12. Promotion: Promotion is very hard to get in Square. The employees are given promotions on the basis of their performance & experience at the end of the year. Employee need to show their better performance consistently at least 3 years that is evaluated by HR department. By getting promotion their salary range will be high but designation will not change very fast.
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Square pharmaceutical company forecasting their employee in two ways on the basis on time horizon. One is short-term forecasting and long-term forecasting. Generally most of the time they forecast for short term. Sometime they forecast for long term. Because they think that short-term forecasting is the best time horizon. As a result, short-term forecasting is best assumption about the future. But long-term forecasting do not provide actual requirement in to organization. Though square pharmaceutical use longterm forecasting for some long-term project or executive level forecasting. Short-term forecasting offer the best estimate of the immediate HR need of an organization. When they forecast employee need, First each organization sub unit has to submit its net employee requirement to the corporate forecasting unit based on future needs for labor required to meet the agreed on corporate and sub unit objects. When we calculate every sub-unit, we consider how many employees retire, die, are fired or otherwise terminated or take long-term leave as well as the replacement for individuals who are promoted, or transferred out of the department. All these elements they included in the calculation of departmental or sub-unit HR demands. These sub-unit labor demands are then aggregated and used as the starting point for the HR demand forecasting. Sometime when they expand the product line in to their organization, than their employee demand is more in to their organization that are considering in to their demand forecasting. In future situation Square pharma each sub unit provide HR requirement to the head office. So they can decide how much HR requires for their organization.
SPL recognizes that progressive labor policies are good business practices, especially for a company that has global ambition. The Company follows laws and encourages a work environment that welcomes diversity and fair treatment in the recruiting process and the workplace. Groups HR policy strictly prohibits any form of forced labor in SPL or in any other SBUs of Square. The Group actively pursues the policy of No employment for Children in Square and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs of the Group.
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employee database to reduce the manual file work and data redundancy in order to make the employee information system cost effective. SPL should conduct a formalized moving average method or weighted average method to identify the accurate forecasting for the organization. Employees are the most important assets for any organization. So the organization must ensure that the right person is hired for the right position at the right time and he is trained and developed properly to accomplish his job activities effectively. While providing the job description to the new employee the supply chain department itself changes the job description to fit it with the employee. They do not contact the HR department to make them know about these changes. Thus the HR department cannot know properly what a new employee is actually doing in the company and what his responsibilities are. SPL should also work on this issue.
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8.0 CONCLUTION:
Square Pharmaceuticals Ltd. now-a-days is holding the top position in pharmaceuticals industry in Bangladesh, with market share of 18.71 percent. It strictly follows the labor law to recruit employees and maintain them. The most widely used recruitment source for this company is external sources. It provides training for all employees working in different levels of the organization. This training includes both skill development training and safety training. Promotion process is very tough in Square. But after a certain accomplishment it provides incentive facilities for employees.
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REFERENCE
1. www.polarisproject.org/
2. www.sljm.pim.lk/.../human_resource_management_practices-a_case_
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