A Project

Report

On

CADILA PHARMACEUTICALS LIMITED

(Human Resource Management)

Date:- 28th Feb 2012

Beta Class

Submitted to: - Prepared by: -

Shweta Bambuwala Dhruv Brahmbhatt (NR11016)

Keyur Chavda (NR11026)

Bhadres Dangar (NR11037)

Hardik Ramanuj (NR11120)

Dhaval Panara (NR11)

Birju Sadariya (NR11)

N. R. Institute of Business Management- Ahmedabad

Batch- 2011-13

PREFACE

In today's world only theoretical knowledge is of no importance one has to have a

practical knowledge of the subject so as to understand & grasp the subject well. It works

according to the famous proverb "Practice Makes Man Perfect".

In our MBA program, we have to visit a company and to understand it by the way of

collecting information & then to prepare a report on that company which is a part of our

syllabus.

To become sharper in the field of the management, one needs both practical as well as

theoretical knowledge and this level we have such practical training. To achieve this goal

practical study is of utmost importance. Being the student of MBA, we have tried our level

best to furnish all the possible details about the unit i.e. Cadila Pharmaceuticals Limited.

We have visited the unit and have gathered the information provided in the project.

This project gives an overall view of the working of the unit. In this report we have tried our

best to give proper information of Cadila Pharmaceuticals Limited and we have tried our best

to understand the HR policies of the industry.

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ACKNOWLEDGEMENT

It is great pleasure for us to introduce this report, which we have prepared after visiting

Cadila Pharmaceuticals Limited.

We would like to thank our Management who has included this practical study in our

syllabus which furnishes us with the complete knowledge about the subject.I would like to

thank to all member of NR-IBM College, who had given such a nice guidance to me in

preparing this report.

I should not forget our duty to acknowledge by debt for gratitude Prof. Shweta

Bambuwala faculty guide who gave their valuable time and guidance. All the above

mentioned persons have given me great co-operation and period.

Last but not the least important we owe “to our respected & dear parents & without their

blessing & moral support study could not have been possible. Again we would like to convey

our thanks to all those who directly or indirectly helped me and contributed their efforts a bit

or more for the preparation and success of this report.

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INDEX

1. General Information……………………………………………… 7-18

2. Human Resource Management………………………………… 19-42

3. Conclusion…………………………………………………………… 43

4. Bibliography………………………………………………………… 44

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Contents

General Information

Company profile

Vision and Mission

History and Development

Size of the unit and firm

Products

Organization structure

Time-keeping system

Employee services

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Contents

Human Resource Management

Introduction

Organization of Personal Department

Recruitment, Selection and Induction

Training and Development

Job Description

Promotion and Transfer Policy

Performance Appraisal System

Wage and Salary Administration

Working of E.S.I. Scheme

Provident Fund Scheme

Grievance Handling Procedure

Trade Union

Personnel Records

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GENERAL INFORMATION

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Company Profile

Name of the Company: Cadila Pharmaceuticals Limited

Address: Corporate & Registered OfficeCadila Corporate CampusSarkhej-Dholka Road,Bhat, Ahmedabad-382 210, INDIA.

Telephone: +91-2718-225001 (15 Lines)

Fax: +91-2718-225039

Directors: Chairman - Mr. Indravadan A. ModiManaging Director - Dr. Rajiv I. Modi

Year of Establishment: 1951

No. of employees: More than 2000 employees

Nature of Business: Manufacture

Product: Tablets, Capsules, Liquids, etc.

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Exporting to countries: Americas, CIS Countries, Africa, Central and South-

East Asia, Oceanic Countries, Japan, Middle East and

Europe

Total Area covered: Spread over 44 acres

Bankers: 1. HDFC Bank2. Bank of Baroda

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VISION AND MISSION

Vision

"Our vision is to be a leading pharmaceutical company in India and to become a

significant global player by providing high quality, affordable and innovative solutions in

medicine and treatment.”

Mission

"We will discover, develop and successfully market pharmaceutical products to prevent,

diagnose, alleviate and cure diseases.

We shall provide total customer satisfaction and achieve leadership in chosen markets,

products and services across the globe, through excellence in technology, based on world-

class research and development.

We are responsible to the society. We shall be good corporate citizens and will be driven by

high ethical standards in our practices."

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HISTORY AND DEVELOPMENT

History:-

In 1952 Cadila Laboratories was founded by Shri Ramanbhai Patel (1925-2001), formerly

a lecturer in the L.M. College of Pharmacy, and his business partner Shri Indravadan Modi.

The company evolved over the next four decades into one of India's established

pharmaceutical companies.

In 1995 the Patel and Modi families split, Cadila Healthcare became the Patel family's

holding company and with the Modi family's share being moved into a new company called

Cadila Pharmaceuticals Ltd.

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Development:-

Cadila Pharmaceuticals Ltd. is one of the largest privately held pharmaceutical

companies in India. Over the last five decades, it has been developing and manufacturing

pharmaceutical products and selling and distributing these in around the world. Cadila

Pharmaceuticals has developed a multicultural, multilingual and multinational workforce

even outside of India in countries of Africa, CIS, Japan and USA.

The company has also developed one of the best Research and Development (R&D)

setups in India, manned by scientists and engineers from various disciplines including

biology, pharmacology, clinical research, chemistry, toxicology, phytochemistry and

different disciplines of engineering. The company also participates in Public-Private

partnerships for developing diagnostic, preventive and curative pharmaceutical and

diagnostic products.

Cadila Pharmaceuticals is the first Indian company to get IND approval by USFDA for

clinical trials to be conducted in India. Subsequently, the company has filed four more INDs

with USFDA.

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SIZE OF UNIT AND FIRM

There are three types of industries,

1. Small Scale Industry.

2. Medium Scale Industry.

3. Large Scale Industry.

Firm Investment in fixed capital below Rs. 5 crore is called small scale Industry.

Firm invest in fixed capital between Rs. 5 to 10 crore is called medium scale industry.

Firm invest in fixed capital above Rs. 10 crore is called large scale industry.

Cadila Pharmaceuticals Limited, is a large scale Industry having investment above

Rs.10 crores.

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PRODUCTS

Products:

Tablets.

Capsules.

Injections.

Insulin.

Dry Sterile.

Liquids.

Dry Syrup.

Manufacturing Processes:

The Company has re-located its manufacturing operations at the state-of-the-art plant at

Dholka, located 50 km from Ahmedabad, the commercial capital of Gujarat. Spread over 44

acres of verdant, picturesque surroundings, amidst lush green lawns and thick foliage, the

new locale is the most envied pharmaceutical installation in the Asian sub-continent.

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ORGANIZATION STRUCTURE

The organization structure of Cadila Pharmaceuticals Limited,

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TIME KEEPING SYSTEM

MEANING:

The activity of recording the amount of time an employee works. Time keeping may

involve a formal clock in system or it may be an informal arrangement based on trust.

The time keeping system is one of the important functions of an organization. This is for

regulating incoming and outgoing of employees. In this unit one separate department of time

keeping is kept for his own workers and not for contract based workers. The office of time

keeping is placed near the front door the time officer also maintains the register for wage and

salary.

Cadila Pharmaceuticals Limited has accepted the signature system of time keeping.

The signature system exists for three staff members and card system for its workers who are

unskilled.

The firm sets its goals and assigned to the employees which are to be completed in the

given period.

Timings:

Employees: 9 am to 7 pm

Workers: 2 Shifts

1. 7 am to 5:30 pm

2. 8 pm to 6:30 am

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EMPLOYEE SERVICE

In any industry, employees play an important role for running business successfully. It

is therefore necessary for management to give much attention to the employees. The

management should provide better service to the employees. If the employees are given more

and better service, their efficiency and moral towards works become high.

Cadila Pharmaceuticals Limited provides following service to their employees.

Weekly holiday

Canteen Facilities

Medical Facilities

Bonus benefit

Festival benefit

Withdraw Facilities

Loan Scheme

Provident Fund Scheme

Employee State Insurance Scheme

Education assistance for employee’s children and so on

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HUMAN RESOURCE MANAGEMENT

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INTRODUCTION

Human resources are the most valuable and unique assets of an organization. The

successful management of an organization's human resources is an exciting, dynamic and

challenging task, especially at a time when the world has become a global village and

economies are in a state of flux. The scarcity of talented resources and the growing

expectations of the modern day worker have further increased the complexity of the human

resource function.

Even though specific human resource functions/activities are the responsibility of the

human resource department, the actual management of human resources is the responsibility

of all the managers in an organization. It is therefore necessary for all managers to understand

and give due importance to the different human resource policies and activities in the

organization.

Human Resource Management outlines the importance of HRM and its different

functions in an organization.

It examines the various HR processes that are concerned with attracting, managing,

motivating and developing employees for the benefit of the organization. This discusses the

issues in human resource management in a changing environment and suggests possible ways

of leveraging and managing human resources.

"If you want 10 days of happiness, grow grain.

If you want 10 years of happiness, grow a tree.

If you want 100 years of happiness, grow people."

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ORGANIZATION OF PERSONEL

DEPARTMENT

In Cadila Pharmaceuticals Limited, the organization chart of the personnel department

is as follows,

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RECRUITMENT, SELECTION AND

INDUCTION

Recruitment:-

Recruitment refers to the process of identifying and attracting job seekers so as to build a

pool of qualified job applicants. It is the first contact that a company makes with potential

employees. It is through recruitment that many individuals will to know a company, and

eventually decide whether they wish to work for it. Recruitment is understood as a process of

searching for and obtaining application for jobs, from among whom the right people can be

selected.

When employee retired

When employee is dismissed

When employee is given promotion or transfer

There are three methods of recruitment:

1. Direct Method:-

These include sending traveling recruits to educational and professional institutions,

employee’s contacts with public, and manned exhibits.

2. Indirect Method:

This method involves mostly advertising in newspaper, on the radio, in trade and

professional journals, technical magazines and brochures.

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3. Third Party Method:

These include the use of commercial or private employment agencies, state agencies

placement officers of schools and professional associations, recruiting firms,

management insulting firms, indoctrination seminars for college professors, and

friends and relatives.

In Cadila Pharmaceuticals Limited, Recruitment process for the office staff is different

from the workers for the staff members, this company use indirect method for recruitment

which means advertise in news paper for its requirements regarding office staff. But

recruitment to the workers, company use third party method which means workers are hired

from internal sources of the company i.e. the relative and friends of the present employees

etc.

Selection:-

After the recruitment process then selection process is started. Selection is a long process,

commencing, from the preliminary interview of the applicants and ending with the contact of

employment. Selection is the process hiring the best candidate from the pool of applications.

It refers to the process of offering jobs to one or more candidate from the applications

received through recruitment.

In Cadila Pharmaceuticals Ltd. Manager holds the interview himself, for the selection

of the right candidate. The main stress is given to the experience of the applicant. If any staff

member fits the required category he is selected and then he joins as an apprentice for three

months and if successful he is finally joins the company. And the company hires any worker

only if he has experience in the same department or if he has technical knowledge of it.

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Induction:-

Induction is welcoming a new employee to the organization. The purpose of introduction is to

educate the employee and provide orientation on the process, rules and regulations, products,

etc.

In Cadila Pharmaceuticals Ltd. when employee is recruited he is given few days to view

the unit and prepare the note of the work once the employee is selected, he is given general

information about company’s rules and regulations, time-keeping system, products and also

introduced with organization staff and given all the details about his job. Then selection

procedure is completely over.

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TRAINING AND DEVELOPMENT

Training & Development refers to the imparting of specific skills, abilities and knowledge to

an employee. Training & Development provide a necessary knowledge and skills to perform

his job effectively. Many a times, organization also provides to old employees to adjust in a

changed situation.

Training:-

Training is a process that tries to improve skills, or add to the existing level of knowledge so

that the employee is better equipped to do his present job, or to mould him to be fit for a

higher job involving higher responsibility.

Development:-

The term development implies overall development in a person it not only means

improvement in job performance, but also improvement in knowledge, personality, attitude,

behaviorism of an executive.

Training is of two types,

(1) On the Job.

(2) Off the job

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The Cadila Pharmaceuticals Limited uses following training methods

1. On-the-Job Methods

Orientation training

Job-instruction training

Apprentice training

Internship and assistantship

Job rotation

Coaching

2. Off-the-Job Methods

Vestibule

Lecture

Special study

Films

Television

Conference or discussion

Case study

Simulation

Programmed instruction

Laboratory training

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JOB DESCRIPTION

A job description will set out how a particular employee will fit into the organization. It will

therefore need to set out:

the title of the job

to whom the employee is responsible

for whom the employee is responsible

A simple description of the role and duties of the employee within the

organization.

A job description could be used as a job indicator for applicants for a job. Alternatively, it

could be used as a guideline for an employee and/or his or her line manager as to his or her

role and responsibility within the organization.

In Cadila Pharmaceuticals Limited, they are having positive attitude towards job

description. Thus, company has defined very good job for the management.

In this company job description is the statement containing items such as job title,

location, job summary, duties, tools and equipments, supervision given or receives, working

conditions etc. It consist of the details such as job title, department in which the employee has

to work, immediate level subordinates, objective of the job, principle duties and

responsibilities, authority limits etc.

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PROMOTION AND TRANSFER POLICY

Promotion:-

Promotion is a vertical movement of an employee within the organization. In other words

promotion refers to the upward movement of an employee from one job to another higher

one, with increase in salary, status and responsibilities. Promotion may be temporary or

permanent, depending upon the needs of the organization.

Promotion policy:-

It must provide equal opportunity for promotion across the job, departments,

and regions.

It must be applied uniformly to all employees irrespective of their background.

It must be fair and impartial.

The basis of promotion must be clearly specified and made known to the

employees.

It must be correlated with career planning. Both quick and delayed promotions

must e avoided as these ultimately adversely affect the organizational

effectiveness.

Appropriate authority must be entrusted with the task of making final decision.

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Promotion must be made in trail basis. The progress of the employee must be

monitored. In case, the promoted employee does not make the required

progress, provision must be therein the promotion policy to revert him/her to

the former post.

The policy must be good blending of promotions made from both inside and

outside the organization.

In Cadila Pharmaceuticals Limited, promotion is given according to its ability of the

worker. When personal manager study employees & he has to see that person is able to work

in other plant & other organization. He is able to bear the other responsibilities. In Cadila

Pharmaceuticals Limited promotion is given on performance behaviors, seniority, works

honesty, ability etc.

Transfer:-

A transfer refers to lateral movement of employee within the same grade, from one job to

another. In other words transfer means change in the job (accompanied by a change in the

place of the job) of an employee without a change in responsibilities or remuneration.

Transfer policy:

Specify the circumstances under which transfers will be made. These

should be in writing and should be communicated to the employees.

Eg: defence personnel and government employees are subjected to

transfer once in three years. The employees in these organizations

know when they are due for a transfer and are prepared for it.

Specify the basis for transfer i.e., whether transfer will be made on the

basis of seniority or skill and competency or on any other basis.

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Decide the authority which would handle transfers.

Intimate the fact of transfer to the person concerned well in advance.

Specify the jobs to which transfers will be made and duties and salary

on assumption of new jobs should also be clarified.

Indicate whether transfers can be made within a department or between

departments or between units.

Clarify whether transfer is permanent or temporary.

Not to be made frequent and not for the sake of transfer only.

In Cadila Pharmaceuticals Limited, the company can transfer any employee from any

place for better performance. This is also when adjustments are to be done regarding the

running of some equipment or to adjust the employees. While transferring employees the

company has never change anything of employees regarding job. Thus, the company has not

felt so much need to transfer its employees, because all of them are performing their job

efficiently. However they give proper attention on it.

PERFORMANCE APPRAISAL SYSTEM

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It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps

to analyze his achievements and evaluate his contribution towards the achievements of the

overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of

personnel management and reflects the management's interest in the progress of the

employees.

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Objectives of Performance appraisal:-

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

He to strengthen the relationship and communication between superior –

subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify

the training and development needs of the future.

To provide feedback to the employees regarding their past performance

Provide information to assist in the other personal decisions in the

organization.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

In Cadila Pharmaceuticals Limited, there is also performance appraisal system

and even they make a confidential report. This register is given to all the managers & then

they decide what kinds of steps are to be taken.

Mainly there are 3 types of performance appraisal report in this unit:

Good performance

Steady performance

Low performance

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WAGES AND SALARY

ADMINISTRATION

Wage and salary of an employee can be determined according to their work and their

category. It is determined according to his grade filling under different categories. Wages

represent hourly rates of pay, salary refers to the monthly rate of pay, irrespective of the

number of hours put in by an employee. Wages and salary are subject to annual increments.

They differ from employee to employee and depend upon the nature of job, seniority, merit.

Wage and salary is the compensation to the employee for their daily work. The basic

purpose of wage and salary is to establish and maintain an equitable wage and salary

structure. Wage and salary should be internally equitable and externally competitive and

should pay individually on the basis of their skill and performance.

Salary is the main motivator for a worker. So it is very necessary to continuously

administer the salary and motives the workers.

Cadila Pharmaceuticals Limited is very generous paying wages or salaries to its worker

and employees. Wages are paid to employees working in manufacturing department while

salaries are paid to the office and management staff. The company also maintains monthly

records.

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The salary is basically dependent on,

Nature of work

It differs work to work , for example a packing are given less salary as supervisor

and department heads are given compared to production department worker.

Position

Salary differs from position to position but worker are given daily where as the

supervisor and department heads are given on monthly basis.

Incentives for good performance

Company many times gives special incentives to its employees for good performance to

motivate them for continuous better work.

They believe that, wage or salary, which satisfies the employees, is an important factor to

motivate the worker and increase their efficiency.

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WORKING OF ESI SCHEME

Employee state insurance scheme (E.S.I.) covers all workers wages excluding

remuneration for overtimes. Works does not exceed Rs. 3,000 month & who is employed in a

factory having 20 or more employees. It may differ this scheme provides security while

workers are on the service.

Since the worker are in continues contact of machines it is necessary under act to provide

a compulsory insurance. All the workers in this unit are insured. Even under accident.

Insurance that is under factory act. In this unit employees insurance scheme fund is directly

deducted from the salary of the workers as per rules the regulation of the government 1948.

The employee contributes 4% of wage bill and employee contributes 1.5% of salary.

Benefits of scheme-Medical benefits:

Sickness benefits

Maternity benefits

Disable benefits

Dependant’s benefits

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In Cadila Pharmaceuticals Limited, Employees’ State Insurance Scheme is working

properly. All the permanent employees come under this scheme and they are insured

according to the government rule and regulation.

The employees are entitled to medical facilities for self and dependants. They are also

entitled to cash benefits in the event of specified contingencies resulting in loss of wages or

earning capacity. The insured women are entitled to maternity benefit for confinement.

Where death of an insured employee occurs due to employment injury, the dependants are

entitled to family pension.

The scheme also provides Rehabilitation allowance and Vocational Rehabilitation.

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PROVIDENT FUND SCHEME

As per the government rule, every organization which have more than 20 employees,

have to pay provident fund to its employee. The minimum rate of provident fund is 8.33%

this

Rate is as per rule of government regarding the provident fund.

“Cadila Pharmaceuticals Limited” provides the provident fund .In providing the PF

some amount from the employee salary is deducted and some are added into the company.

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GRIEVANCE HANDLING PROCEDURE

Grievance:-

Complaints affecting one or more individual workers in respect of their wage payments,

overtime, leave, transfer, promotions seniority, work assignment and discharge would

constitute grievance. Where the points at dispute are of dispute is of general applicability or

considerable magnitude, they will fall outside the scope of this procedure.

Grievance handling procedure:-

Time action: the first and foremost requisite in grievance handling is to settle

them immediately as and when they arise. Or say, grievances need to be nipped in

the bud. Sooner the grievance is settled, lesser will be its effects on employees

performance. This requires the first line supervisors be trained in recognizing and

handling a grievance properly and promptly.

Accepting the grievance: the supervision should try to recognize and accept the

employee grievance as when it is expressed. It must be noted that acceptance does

not necessarily mean agreeing with grievance, it simply shows the willingness of

the supervisor to look into the complaint objectively and dispassionately to deal

with the grievance. Evidences suggest that more the supervisor shows his on her

concern for the employees, lesser is the number of grievance raised by the

employee.

Identifying the problem: as stated earlier, the grievance expressed by the

employee may be at times simply emotionally, overtones, imaginary and vague.

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The supervisor therefore needs to identify or diagnose the problem stated by the

employee

Collecting the facts: once the problem is real problem, the supervisor should

collect all relevant facts and proofs relating to the grievance. The facts so

collected need to be separated from the opinions and feeling to avoid distortions

facts. It is useful to maintain the facts for future uses as and when required.

Analyzing the cause of the grievance: having collected all the facts and figures

relating to the grievance, the next step involved in the grievance procedure is to

establish and analyze the cause that led to grievance.

Taking decision: in order to take best decision to handle the grievance,

alternative courses of action should worked out. These are, then, evaluated in the

view of consequences on the aggrieved employee, the union and the management.

Finally the decision should be taken which is best suited to the given situation in

the organization.

Implementing the decision: the decision whatsoever taken must be immediately

communicated to the employee and competent authority. The decision thus

reviewed to know whether the grievance has been resolved or not.

In Cadila Pharmaceuticals Limited, when problem arise it is solved by top executive. He

calls a meeting and discusses with managers and executives and then takes proper decision

regarding the problem.

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TRADE UNION

Trade union:-

Trade union means a continuous association of wage earners for the purpose of maintaining

or improving the conditions of their working lives. All organizations of employees including

those of salaried and professional workers as well as those manual wage earners which are

known to include among their functions that of negotiating with their employers with object

of regulating conditions of employment.

Workers join trade union for:

Job security

Wages and benefits

Working conditions

Fair and just supervision

Powerlessness

Need to belong

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Types of trade union:

Industrial union: it is a union composed primarily of semi-skilled blue-collar

employees in the manufacturing industries. The industrial union also referred

to vertical union

Trade union: it is also called craft union, is an association of workers cutting

across many companies and industries.

Employee association: it is also known as fraternal order, is generally

composed of white collar or professional employees, such as teachers, police

officers, administrative, technical, and health care employees. (FEDCUTA)

federal of central universities teachers association is such an example.

In Cadila Pharmaceuticals Limited, trade union is running successfully.

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PERSONNEL RECORDS

Personnel records preserve evidence for future reference. This records provide detail

information about the employees when the need of it’s arise. Personnel records are

important at the time of paying salary, promotion, demotion, transfer, selection, etc.

Cadila Pharmaceuticals Limited maintains following records of their employees.

The firm has developed the computer system for keeping all these data.

Name and Address of the employees

Telephone No’s

Age of the employees

Education and Qualifications

Family record

Attendance

Past performance

Experience of the employee

Service in any other unit before joining this company

Reasons for joining to the firm

Interview report

Other important matters

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CONCLUSION

Human resource management is very important part of management in every

company or firm. It deals with the human factors in industries & key rules in achieving the

co-operate goals.

In this company the management of the human resource is manage in a decent way by

the manager of human resource. The recruitment procedure, selection procedure & training

procedure is arranged in such a manner that the unit does not get disturb during all these 3

procedure. After training is given the description of job is given to the particular employee,

promotion is given on the bases of work done by the employee.

The other system of provident fund scheme & E.S.I. scheme is managed in such a

way that it is beneficial to the employee. In this unit there are no unions, which is also a good

part for the unit in managing the company.

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BIBLIOGRAPHY

WEBSITES:-

1. www.cadilapharma.com

2. www. wikipedia.org

3. www.google.com

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