Final Project Measuring Perceived Organizational Support and Job Satisfaction in Pharmaceutical Industry in Pakistan

A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES, VIRTUAL UNIEVRSITY OF PAKISTAN IN PARTIAL FULFILLMENT OF TH REQUIREMENTS FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

Submitted By Mc070200172 Zahid Jamil

Department of Management Sciences, Virtual University of Pakistan

Dedication
I dedicate my project to my mother. I believe that without prayers of my mother I cant write a single word in this project.

Acknowledgement

Face to face interaction between students and teacher increases productivity of any learning session many fold. I appreciate Virtual University of Pakistan to keep this aspect live in even distance learning program. I am thankful to all the teachers and instructors for their guidance and support through out my studies. To perform some research work was a bed of thorns for an average student like me. I am highly thankful to instructor of HRM619 for showering her support and guidance at every inch of this journey and made it a great learning experience at the end.

Executive Summary
Pharmaceutical industry of Pakistan is flourishing industry. The importance of this segment of industry increases many folds because it is dealing with health of patents. Perceived Organizational Support and Job Satisfaction are wellresearched variables. No prior research in Pharmaceutical Industry in Pakistan has been done regarding these variables. Perceived Organizational Support measures an employees perception of how much the organization support him or her while working for the organization and job satisfaction refers to how well an individual perceives himself or herself to be happy or content with his job. Prior research shows that Pos and job satisfaction has strong relationship. An increase level of POS in employees increases job satisfaction. The purpose of this study was to measure perceived organizational support and job satisfaction in pharmaceutical industry of Pakistan. The study also investigated relationship between perceived organizational support and job satisfaction and effect of POS on employees job satisfaction level. Convenience sample of 82 respondents was taken from Novartis, GSK and Hilton pharmaceuticals. All the respondents were male and majority of them were experienced more that 5-6 years. Data was collected through 5 point Liker scale questionnaire from medical representatives of selected companies. Questionnaire comprises 16 questions in which 8 questions measured perceived organizational support and 8 questions measured job satisfaction. Positive relationship between perceived organizational support and job satisfaction has been established for many years. This study also confirms prior research findings. Research findings in this project (n=82) indicated that there was a strong correlation r=0.56 between POS and Job Satisfaction. The findings confirm that perception level of employees regarding organizational support in pharmaceutical industry is very mature. That is the reason that job satisfaction level of employees is also very high. Mean values of all the questions also shown a very good result. Care and help;

promotion and approval were biggest factor of organizational support. While care also give employees highest level of job satisfaction. It was observed during data collection that negative statements create bias in mind of respondents so negative statements should be minimized to get a true picture. The perception of employees regarding organizational support of newly hired employees was not good. So orientation of new employee must be conducted at very start of their job so that they can get true meaning of organizational support and get more satisfaction in their job.

Table of Contents
Acknowledgment Executive Summary Section I 1.Chapter 1) Introduction....9 1.1 Background of the project10 1.2 Introduction of the organizations business sector...11 1.3 Introduction of the organizations..12 1.4 List of the competitors..12 1.5 Objectives.12 1.6 Significance..13 2.Chapter 2) Data Processing, Analysis & Interpretation13 2.1 Data Collection Sources.13 2.2 Data Collection Tool..13 2.3 Subjects..13 2.4 Data Processing, Analysis and Interpretation14 2.5 Summary15 3.Chapter 3) Conclusion, Recommendations & Limitations..16 3.1 Conclusion..16 3.2 Recommendations..16 3.3 Limitations..16 Section II a) Introduction of the student18 b) Appendix ...18 c) Bibliography ..19 d) Index ..20

Specimen List of Illustrations

Section 1 Chapter 1) Introduction

Introductory Paragraph: Perceived organizational support refers to a workers perception of how much the organization support him or her while working for the organization and job satisfaction refers to how well an individual worker perceives himself or herself to be happy or content with the current job. Although there were relatively few studies of POS (Perceived Organizational Support) until the mid 1990s, research on the topic has burgeoned in the last few years. Rhoades and Eisenbergers (2002) meta-analysis covered some 70 POS studies carried out through 1999, and over 250 studies have been performed since. The metaanalysis found clear and consistent relationships of POS with its predicted antecedents and consequences. The meta-analysis of research on POS, carried out by Rhoades and Eisenberger (2002) indicated that three general categories of favorable treatment received by employees (fairness of treatment, supervisors support, and rewards and job conditions) are positively related to POS, which, in turn, is associated with outcomes favored by employees (e.g., increased job satisfaction, positive mood, and reduced stress) and the organization (e.g., increased affective commitment and performance and reduced turnover). The purpose of this research work is to investigate relationship between perceived organizational support and job satisfaction in pharmaceutical industry of Pakistan. Target population in this survey study was Medical Representatives of Novartis, GSK, and Hilton Pharmaceuticals. Description of the project title: Measuring perceived Organizational Support and Job Satisfaction is topic of my project. Eisenberger explains that Organizational Support refers to employees perception concerning their contribution and cares about their well being. For employees, the organization serves as an important source of socioemotional resources, such as respect and caring, and tangible benefits, such as wages and medical benefits. Being rewarded highly by the organization helps to meet employees needs for approval, esteem, and affiliation. Positive valuation by the organization also provides an indication that increased effort will be noted and rewarded. Employees therefore take an active interest in the regard with which their employer holds them. In this project I would like to establish how

employees perceive all these organizational supports in their career and what type of job satisfaction they find in it. Rationale- why this research id needed: Job satisfaction plays very important role in career of employee and performance of organization. In todays competitive world where every one demands for lot of tangible and intangible incentives and there are lot of job markets and opportunity to asses organizational support in perspective of job satisfaction is much needed. 1.1 Background of the project: There is employees general belief that their work organization values their contribution and cares about their well being (Perceived organizational support; POS). A meta-analysis indicated that 3 major categories of beneficial; treatment received by employees (i.e. fairness, supervisor support and organizational rewards and favorable job conditions) were associated with POS. POS, in turn, was related to outcomes favorable to employees (e.g. job satisfaction, positive mood) and the organization (e.g. affective commitment, performance and lessened withdrawal behavior). (Rhoades & Eisenberger, 2002). Social exchange theorists argue that resources received from others are more highly valued if based on discretionary choice rather than circumstances beyond the donors control. Such voluntary aid is welcomed by as an indication that the donor genuinely values and respects the recipient. (e.g., Blau, 1964; Cotterell, Eisenberger, & Speicher, 1992; Eisenberger, Cotterell, & Marvel, 1987; Gouldner, 1960). Thus, organizational rewards and favorable job conditions such as pay, promotions, job enrichment, and influence over organizational policies contribute more to POS if the employee believes that they result from the organizations voluntary actions, as opposed to external constraints such as union negotiations or governmental heath and safety regulations (cf. Eisenberger et al., 1986; Eisenberger, Cummings, Armeli, & Lynch, 1997; Shore & Shore, 1995). Organizational support theory addresses the psychological processes underlying consequences of POS. First, on the basis of the reciprocity norm, POS should produce a felt obligation to care about the organizations welfare and to help the organization reach its objectives. Second, the caring, approval, and respect connoted by POS should fulfill socioemotional needs, leading workers to incorporate organizational membership and role status into their social identity. Third, POS should strengthen employees beliefs that the organization recognizes and rewards increased performance (i.e., performance-reward expectancies). These processes should have favorable outcomes both for employees (e.g., increased job satisfaction and heightened positive mood) and for the organization (e.g., increased affective commitment and performance, reduced turnover). POS has been found to be related to, yet distinct from, job satisfaction (Aquino & Griffeth, 1999; Eisenberger et al., 1997; Shore & Tetrick, 1991). POS has been hypothesized to influence employees general affective reactions to their job, including job satisfaction and positive mood. Job satisfaction refers to employees overall affect laden attitude toward their job (Witt, 1991). POS should contribute to overall job satisfaction by meeting socioemotional needs, increasing performance-reward expectancies, and signaling the availability of aid when needed. Review indicates that three general categories of favorable treatment received by employees from the organization (i.e., fairness, supervisor support, and rewards and job

conditions) are positively related to POS, which, in turn, is associated with outcomes favored by employees (e.g., increased job satisfaction, positive mood, and reduced strains) and the organization (e.g., increased affective commitment and performance and reduced turnover). 1.2 Introduction of the organizations business sector: Pakistan has a very vibrant and forward-looking Pharma. Industry. At the time of independence in 1947, there was hardly any pharma. industry in the country. Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry meets around 70% of the country's demand of Finished Medicine. The domestic pharma. market, in term of share market is almost evenly divided between the Nationals and the Multinationals. The National pharma industry has shown a progressive growth over the years, particularly over the last one decade. The industry has invested substantially to upgrade itself in the last few years and today the majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Currently the industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech, Oncology and Value Added Generic compounds. Although Pakistan 's pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the population has no access to modern medicines. Clearly this presents an opportunity, but much more work needs to be done by the government and industry's stakeholders. The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita consumption of less than US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B by 2012. Pakistan is a developing pharmaceutical market, with a large population and economic progress evident, but per capita drug spending was rather low at around US$9.30 in 2007. Private spending accounts for 65% of total healthcare expenditure sourced through out-of pocket payments, international aid and religious or charitable institutions. Pharmaceutical spending accounts for less than 1% of the country's GDP, comparable to levels in some neighboring countries but above that in some of the South Asian countries. The forecast period is likely to witness the marginal strengthening of the generics sector, albeit more in terms of volumes than values. The share of generics is also likely to increase further as major drugs come off-patent in the near term, to the likely benefit of the genericsdominated local industry. The Pakistan pharma. industry is relatively young in the international markets with an export turnover of over US$ 100 Million as of 2007. Pakistan Pharma. Industry boasts of quality producers and regulatory authorities all over the world approve many units. Like domestic market the sales in international market have gone almost double during last five years. The pharma. industry is focusing to an Export Vision of USD 500 Million by 2013. In the meantime, exports are also likely to be boosted by new regional and global opportunities.

The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at affordable prices to Millions. Technologically, strong and self reliant National Pharmaceutical Industry is not only playing a key role in promoting and sustaining development in the vital field of medicine within the country, but is also well set to take on the international markets. 1.3 Introduction of the organizations: Novartis Pharmaceuticals: Novartis is one of the leading pharmaceutical companies in the world and is currently ranked as No.2 among pharmaceutical companies in Fortune magazine's "World's Most Admired Companies Survey in 2008. It operates in 140 countries around the world. Healthcare businesses of Novartis address the changing needs of patients and societies worldwide. GSK Pharmaceuticals: GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the largest pharmaceutical company in Pakistan. GSK Pakistan operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-thecounter- medicines, oral care and nutritional care). GSK leads the industry in value, volume and prescription market shares. GSK has consistency and stability in sales, profits and growth. Some of its key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO. Hilton Pharmaceuticals: Hilton Pharma. is a member of the Progressive Group of Companies. Combining the best of values of entrepreneurship, strong work ethics, strict compliance with current Good Manufacturing Practices (cGMP) with wide range of products, Hilton Pharma has emerged as Pakistans largest national pharmaceutical company. Hilton Pharma. market products under license from more than a dozen world-renowned research based pharmaceutical companies besides its own branded generic specialties. Why I have selected these organizations: Novartis and GSK are top global organizations operating in Pakistan, while Hilton Pharma is nationally number 1 pharmaceutical company. These organizations have based many employees in big cities so contact and data collection is accessible. The quality and maturity level of these employees is also high comparing with employees of other organizations. I selected these organizations so that I can get very true inputs for project. 1.4 List of competitors: Sanofi Aventis Pharmaceuticals Abbott Laboratories Merck Pharmaceuticals

Sami Pharmaceuticals Highnoon Pharmaceuticals 1.5 Objectives: To identify the factors, which constitute organizational support. To find out the relationship between organizational support and job satisfaction. To find out that which factors of organizational support are prevailing in the selected industry and how these factors are affecting the job satisfaction. To measure the perception of employees regarding the organizational support. To measure the effect of perceived organizational support on the satisfaction of employees 1.6 Significance: In prior research it has been established that Perceived organizational support has positive impacts on job satisfaction (Eisenberger et al, 1997). In this research work relationship between perceived organizational support and job satisfaction would be established in pharmaceutical industry of Pakistan. I will find out what are constitutes of perceived organizational support in this industry. I will find perception of employees regarding perceived organizational support. This study will help employees to better understand organizational support and on the other hand employer can also take benefit by knowing the standard and perception of organizational support of its employees. This study will find out job satisfaction level of employees in selected industry. Medical representatives of pharmaceutical companies as healthcare professional are performing very sensitive job. They are providing all the information regarding their drugs to doctors who prescribe their medicines on the basis of this information. So the life of patients is at stake of this information. So if level of job satisfaction is not very high it is chance that he cannot perform his/her job effectively, which could be mighty harmful for patients. This study will find level of job satisfaction of medical representatives. Chapter 2) Data Processing, Analysis & Interpretation

2.1 Data collection sources Collected primary data from representatives of companies and also review the secondary data; work already has been done, on the subject. Like from articles, books, and journals. 2.2 Data collection tools I used Questionnaire as Data Collection tool in my research work. First 8 items of questionnaire will determine perceived organizational support and last 8 items will assess job satisfaction level. Respondents will indicate the extent of their agreement with each item on a 5-point Likert-type scale (1 = strongly disagree, 5 = strongly agree). 2.3 Subjects/Participants

Target population in my project is medical representatives of following pharmaceutical companies. Novartis Pharmaceuticals GSK Pharmaceuticals Hilton Pharmaceuticals Sample Size: 80 to 100 participants. Sampling Technique: Convenience Sampling a type of non probability sampling. 2.4 Data Processing, Analysis and interpretation: Strongly Agree=5; Agree=4; Undecided=3; Disagree=2 and Strongly Disagree=1 coding was used in this research. Question no.7 in questionnaire was a negative statement for this question reverse scale was applied. Microsoft Excel was used for data processing and making bars and charts. Mean was used as statistical technique in this project. A total of 82 responses from medical representatives of selected Pharmaceutical companies were utilized for this project. All the respondents were male. Correlation coefficient (r) was conducted to determine whether a relationship existed between Perceived Organizational Support and Job Satisfaction in Pharmaceutical Industry in Pakistan. The research findings in this project (n=82) indicated that there was a strong correlation r=0.56 between POS and Job Satisfaction. This correlation shows job satisfaction of employees increases with an increase perception of organizational support. This study also shows that perception organizational support is very mature in pharmaceutical industry in Pakistan. Mean values of all the questions also shown a very good result. Figure one shows mean values of questions regarding Perceived Organizational Support while figure 2 shows mean values of questions regarding Job Satisfaction. As depicted from figure below care and help emerged as strongest organizational support factor while promotion and approval also shown high mean values. As far as job satisfaction is concern care of employees give them highest job satisfaction. Similarity of goals between employees and employer is also another high mean value job satisfaction factor.

Figure 1

Figure 2 2.5 Summary Identify factors which constitute Organizational Support was one of the major objective of this project. The findings of this research work illustrate that care and help in all aspects like care about opinion; care about overall well being of employees; help at time of problem is major organizational support factor in Pharmaceutical Industry in Pakistan. Questions 1,2,4,5 that were about care of employees regarding different aspects of care shown very high mean sore i.e. 4.01, 4.13, 4.02, and 4.06 respectively. The other main factor emerged in this research work as organizational support in pharmaceutical industry was promotion and approval. Questions 3, 6, 7, 8, comprise this factor shown also very high mean values like 3.95, 4.05, 3.96 and 4.21 respectively. As health care professional pharmaceutical companies operate in very tough rules and guidelines. There are many regulatory guidelines which pharma. people have to follow by promoting their drugs to their customers (Doctors). If company helps its employees by giving special favor in performing their job, Medical Representatives perceive it as big support. Thats why help in case of special favor shown highest mean sore 4.21. Previous research in perceived organization support, illustrates that being valued by the organization can yield benefits like approval and respect, pay and promotion, and access to information and other forms of aid needed to better carry out ones job. This research work also found that care and help; promotion and approval established as strong factors that constitute organizational support in Pharmaceutical

Industry in Pakistan. On the other hand care of employees give them highest job satisfaction. Similarity of goals between employees and employer is also another high mean value job satisfaction factor The perception of employees regarding organizational support plays very important role in performance of employees and employers both. The employees of pharmaceutical considered are considered highly qualified and talented people because they are dealing with health of people. So if their perception of organizational support is not up to the mark, they can not satisfied with their job that could ultimately bring harm to health of patients. This research work shows that perception of employees regarding job satisfaction is very high which 4.05(overall average mean of POS). The employees who have just started their career in pharmaceutical industry show poor perception of organizational support that was very few of total sample. Big number of sample shown good perception of organizational support. To find relationship between perceived organizational support and job satisfaction was other objective in this project. Correlation coefficient (r) 0.56 found between perceived organizational support and job satisfaction is showing very strong positive relationship. It was also found at the time of data collection through questionnaire that perception of employees regarding organizational support was higher in experienced employees as comparison to newly hired employees. As majority of subjects was experienced employees thats why strong relationship was established. The meta-analysis of research on POS, carried out by Rhoades and Eisenberger (2002) indicated that Perceived Organizational Support and Job Satisfaction have strong relationship. The findings of this research work seconds previous findings that Perceived Organizational Support has strong relationship with Job Satisfaction. The study shows that although job satisfaction of respondents is very good. But it was observed that level of job satisfaction in 10 years above experienced employees was not very good. Because these employees were working on same position for too many years. Creating new opportunity for them can increase the job satisfaction level of these employees. Chapter 3) Conclusion, Recommendations & Limitations: 3.1 Conclusion: Care and help, promotion and approval found strong constituents of perceived organizational support in Pharmaceutical Industry in Pakistan. Care of employees gives them high level of Job satisfaction. Strong correlation found between Perceived Organizational Support and Job Satisfaction in Pharmaceutical Industry in Pakistan. Findings show that POS has positive effect on job satisfaction. This study also provides support for previous research advocating that POS and Job Satisfaction have positive relationship. 3.2 Recommendations: Negative statements create confusion in minds of respondents. So negative statements should be avoided. Questions should be more straightforward. Straightforward questions can increase response rate and reduce ratio of undecided response.

3.3 Limitations: The biggest limitation was access to respondents. As medical representatives perform field job and have no fix place of job. So locate them and arrange meeting for data collection was difficult. Time for completion of this project was very short because my proposal was approved at fourth attempt. Some participants were reluctant to participate in study because they were afraid whether this study may be misused or used against interest of their and their company. Access to the required information was difficult in some cases because respondents did not perceive true meaning question, that were elaborated to them In my best knowledge no such a prior research work has been done in Pharmaceutical industry. So there was no guideline available.

Section II a) Introduction of the student: Last degree obtained: Bachelor in Arts from University of Punjab in 2003. Organizations Name: Novartis Consumer Health Designation: Medical Information Officer Experience: 6 years b) Appendix: Name: -------------------------Contact No: ------------------Position: ---------------------Company: --------------------

Perceived Organizational Support and Job Satisfaction in Pharmaceutical Industry in Pakistan

6 7 8 9 10 11 12 13 14 15 16

If given the opportunity, my organization would take advantage of me. My organization shows very little concern for me. My organization is willing to help me if l needs a special favor. If a good friend of mine told me that he/she was interested in working in a job like me I would strongly recommend it. All in all, I am very satisfied with my current job. In general, my job measures up to the sort of job I wanted when I took it. Knowing what I know now, if l had to decide all over again whether to take my job, I would. I feel that the company cares about its people. I am satisfied with my understanding of how my goals are linked to company goals. Company leadership has made changes which are positive for me. The company leadership has a clear vision of the future. Source: First 8 items of this questionnaire are taken from Survey of Perceived Organizational Support (Robert Eisenberger, 1986). Last 8 items are taken from http://www.guidestarco.com c) Bibliography: Eisenberger, R. Perceived Organizational Support. [Online] Available http://pos.psych.udel.edu/default.asp Rhoades, L. & Eisenber, R. (2002). Perceived Organizational Support: A review of Literature. Journal of Applied Psychology, 87 (4), 698-714. Blau, P. M. (1964). Exchange and power in social life. New York: Wiley. Cotterell, N., Eisenberger, R., & Speicher, H. (1992). Inhibiting effects of reciprocation wariness on interpersonal relationships. Journal of Personality and Social Psychology, 62, 658668.

Eisenberger, R., Cotterell, N., & Marvel, J. (1987). Reciprocation ideology. Journal of Personality and Social Psychology, 53, 743750. Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American Sociological Review, 25, 161178. Eisenberger, R., Cummings, J., Armeli, S., & Lynch, P. (1997). Perceived organizational support, discretionary treatment, and job satisfaction. Journal of Applied Psychology, 82, 812820. Shore, L. M., & Shore, T. H. (1995). Perceived organizational support and organizational justice. In R. S. Cropanzano & K. M. Kacmar (Eds.), Organizational politics, justice, and support: Managing the social climate of the workplace (pp. 149164). Westport, CT: Quorum. Aquino, K., & Griffeth, R. W. (1999). An exploration of the antecedents and consequences of perceived organizational support: A longitudinal study. Unpublished manuscript, University of Delaware and Georgia State University. Shore, L. M., & Tetrick, L. E. (1991). A construct validity study of the Survey of Perceived Organizational Support. Journal of Applied Psychology, 76, 637643. Witt, L. A. (1991). Exchange ideology as a moderator of job-attitudesorganizational citizenship behaviors relationships. Journal of Applied Social Psychology, 21, 1490 1501. Pakistan Pharmaceutical Manufacturers Association [Online] Available www.ppma.org.pk/PPMAIndustry.aspx GalxoSmithKline Pakistan [Online] Available http://www.gsk.com.pk/overview.html Hilton Pharm [Online] Available at http://www.hiltonpharma.com/aboutUs.html d) Index: Abbott Laboratories Aquafresh Aquino Armeli Augmentin Betnovate Blau Calpol Cotterell Cummings Eisenbereger ENO Gouldner Griffeth GSK Highnoon Pharmaceuticals Hilton page no. 10 page no. 10 page no. 8,17 page no. 8,16 page no. 10 page no. 10 page no. 8,16 page no. 10 page no. 8,16 page no. 8,16 page no. 7,8,11,14,16 page no. 10 page no. 8,16 page no. 8,17 page no.7, 10,12,17 page no. 10 page no. 7, 10,12,17

Horlicks Likert Lynch Macleans Marvel Merck Pharmaceuticals Novartis Pakistan Panadol Rhoades Sami Pharmaceuticals Seretide Shore & Shore Speicher Tetrick Virtual University of Pakistan Witt Zantac

page no. 10 page no. 11 page no. 8,16 page no. 10 page no. 8,16 page no. 10 page no. 7,10,15,17 page no. 1,3,7,10,12,13,14,15,17 page no. 10 page no. 7,8,14,16 page no. 10 page no. 10 page no. 8 page no. 8,16 page no. 8,17 page no.1,3 page no. 8,17 page no. 10