Performance appraisal & employee satisfaction in pharmaceutical industry in bangladesh

A Report onPerformance Appraisal & Employee

Satisfaction inPharmaceutical Company

Human Resource ManagementMGT 3122

Topics: 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


Summer- 2012

Date of submission: 24 July 21, 2012

Letter of Transmittal

July, 24, 2012

Mrs. Shayla Binta Sayeed

Course Instructor- MGT 3122


Subject: A report on performance appraisal & employee satisfaction in pharmaceutical industry.

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 companies appraise their personnel and what are the impacts on employee satisfaction. The proposal shows a detail analysis in employee satisfaction [mainly sales personnel] base on company’s performance process.

I hope that this report will merit your approval.

Respectfully yours

On behalf of the team

…………………………………………Mahin AhmedID: 111 101 119Sec: BSchool of Business United International University

iii

Acknowledgment

I give thanks to the Almighty for giving me the understanding, knowledge and wisdom during

the course of our study.

We convey our gratitude to our honorable faculty Mrs. Shayla Binta Sayeed, MGT 3122 in

United International University. Her guidance and cooperation helped us immensely to prepare

this survey report.

We also like to thank those people who had helped us to conduct this survey report. We also

like to express our gratitude to our team members for their friendly and cordial cooperation

during surveying and report writing process. We have tried our best to prepare a survey report

having better contents. We tried to implement our classroom knowledge with real life lesson in

this survey report. We have tried to maximize our best affordable way to complete it and

minimize the mistakes in very short time. Even, if we make any mistakes, we apologies for that

unwillingly mistakes.

iv

Table of Contents

Acknowledgment...…………………………………………………………………………………………………………………………………………… iv

Executive Summary ………………………………………………………………………………………………………………………………………… vii

Abstract ……………………………………………………………………………………………………………………………………………………………. 8

Introduction ……………………………………………………………………………………………………………………………………………………… 9

Objective of the study ……………………………………………………………………………………………………………………………. 10

Methodology of Data Collection ………………………………………………………………………………………………. 11

Sample Size and Population ……………………………………………………………………………………………………… 11

Sampling Method …………………………………………………………………………………………………………………….. 11

Limitations of the study …………………………………………………………………………………………………………… 11

PHARMACEUTICAL INDUSTRY IN BANGLADESH ………………………………………………………………………………………………. 12

Findings ………….................................................................................................................................................. 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 ……………………………………………………………………. 16

PERFORMANCE 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

PA Interview with the Employee ……………………………………………………………………………………………... 19

v

PERFORMANCE 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 …………………………………………………………………………………….……. 24

Overall 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 ……………………………………………………………………………………………………………………… 27

CONCLUSIONS ………………………………………………………………………………………………………………………………………………… 28

APPENDIX: 01 …………………………………………………………………………………………………………………………………………………. 29

Employees’ Satisfaction Interview Schedule ………………………………………………………………………………………….. 29

Questionnaire on: Performance appraisal in Pharmaceutical Industry ………………………………………….……….. 30

Appendix: 02. Level on work conditions ………………………………………………………………………………………………………….. 31

Appendix: 03. Level on Pay and Promotion …………………………………………………………………………………………………….. 32

Appendix: 04. Level on Fairness ………………………………………………………………………………………………………………………. 32

Appendix: 05. Level on Job Security ………………………………………………………………………………………………………………… 32

Appendix: 06. Level on Relationship with Co-workers …………………………………………………………………………………….. 33

Appendix: 07. Level on Relationship with Immediate supervisor …………………………………………………………………….. 33

vi

Executive Summary

The Pharmaceutical sector plays a vital role in underpinning the economic development of a

country. This study attempts to evaluate job satisfaction of employees in different

pharmaceutical companies. It focuses on the relative importance of performance appraisal &

job satisfaction factors and their impacts on the overall job satisfaction of employees. Both

primary and secondary sources of information have been considered as a data collection

process. Primary data was collected through checklist and personnel interview. At present, in

Bangladesh, there are 204 national pharmaceutical companies and only 7 multinational or

foreign companies operating.

In our survey we found Level on work conditions, Level on Pay and Promotion, Level on

Fairness, Level on Job Security, Level on Relationship with co-workers, Level on Relationship

with immediate supervisor; we also found the procedure of performance appraisal & employee

job satisfaction in multinational pharmaceuticals [include: GLAXO, & Roche] & local

pharmaceuticals Company [includes: BEXIMCO & SQUARE].

In the overall job satisfaction summary we focused on the satisfaction with interpersonal

relations, satisfaction with compensation package (salary, fringe benefits), satisfaction with

professional effectiveness, overall job satisfaction.

The results suggest that the factors had satisfactorily explained job satisfaction and that the

policy makers and managers should focus on the factors that affect employee job satisfaction, if

they want to enhance their businesses. Based on the results for the standardized values, we are

able to see that work conditions, fairness, promotion, and pay, are key factors affecting

pharmaceuticals companies employees’ job satisfaction.

Results of the study reveal that a good performance appraisal system, work environment and

good work conditions can increase employee job satisfaction and the employees will try to give

their best which can increase the employee work performance.

vii

Abstract

The Pharmaceutical sector plays a vital role in underpinning the economic development of a

country. This study attempts to evaluate job satisfaction of employees in different

pharmaceutical companies. It focuses on the relative importance of performance appraisal &

job satisfaction factors and their impacts on the overall job satisfaction of employees. It also

investigates the impacts of pharmaceutical type, work experience, age, and sex differences on

the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe

supervision, and co-worker relation are the most important factors contributing to job

satisfaction. The overall job satisfaction of the employees in pharmaceutical sector is at the

positive level. This research was mainly undertaken to investigate on the significance of factors

such as working conditions, pay and promotion, job security, fairness, relationship with co-

workers and supervisors in affecting the job satisfaction. This paper presents a comprehensive

diagnosis of job satisfaction indices of pharmaceutical business, the factors causing the

dissatisfaction & suggestions to improve them.

There is greater recognition that distinctive competencies are obtained through highly

developed employee skills, distinctive organizational cultures, management processes and

systems. To attain such recognitions HR plays a key role and one of the important aspects of HR

process affiliated with the above objective is performance appraisal process. In this study an

attempt has been made to understand the performance appraisal process of pharmaceutical

companies in Bangladesh. The repercussion of this study reveals the performance appraisal

process and eventually concludes with some implications for pharmaceutical companies of

Bangladesh to make the present performance appraisal process more effective and objective

oriented.

Keywords: Performance appraisal, Job satisfaction & Pharmaceutical Company.

8

Introduction

In today’s intensely competitive and global marketplace, competitive advantage lies not just in

differentiating a product or service or in becoming the low cost leader but in also being able to

tap the company’s special skills or core competencies. Especially for pharmaceutical industry

skilled and efficient employees are must as it requires specialized, technical and, scientific

knowledge 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 in

order to ensure skilled and efficient employees is performance appraisal. Performance appraisal

may be defined as a structured formal interaction between a subordinate and supervisor, that

usually takes the form of a periodic interview (annual or semi-annual), in which the work

performance of the subordinate is examined and discussed, with a view to identifying

weaknesses and strengths as well as opportunities for improvement and skills development.

Performance appraisal is evaluating an employee’s current and/or past performance relative to

his or her performance standard

On 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 of

these factors include the level of pay and benefits, the perceived fairness of the promotion

system within a company, the quality of the working conditions, leadership and social

relationships, the job itself. Other influences on satisfaction include the management style and

culture, employee involvement, empowerment and autonomous workgroups. Job satisfaction is

a very important attribute which is frequently measured by organizations. The most common

way of measurement is the use of rating scales where employees report their reactions to their

jobs. Questions relate to relate of pay, work responsibilities, variety of tasks, promotional

opportunities the work itself and co-workers. Some questioners ask yes or no questions while

others ask to rate satisfaction on 1 – 5 scale where 1 represents “not all satisfied” and 5

represents “extremely satisfied”.

9

In our findings some organizations maintain their formal evaluation system because they

consider performance evaluation to be fundamental to organizational effectiveness. It is better

to maintain the visibility of a formal program because; it may help to improve systematically

the fairness, validity, usefulness and reliability of the appraisal process.

According to them the purpose of performance appraisal process are to (a) control the

employee performance focusing on the past performance, and (b) develop employee to be an

effective performer focusing on the importance of future performance. Performance appraisal

is important from the viewpoints of both the employee and the organization.

From the employees’ point of view performance appraisal is important, because: (a) they can

modify their work behavior to become a more effective performer, and (b) it increases the

likelihood 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

Methodology of Data Collection

Both primary and secondary sources of information have been considered as a data collection

process. 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. Qualitative

technique 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 Method

There are two types of populations’ size, based on which different samples were drawn. For

management no sampling is needed, because there are very few HR personnel. For employees,

random sampling was chosen.

Limitations of the study

The survey is subjected to the bias and prejudices of the respondents. Hence 100% accuracy

can’t be assured. The researcher was carried out in a short span of time, where in the

researcher could not widen the study. The study could not be generalized due to the fact that

researcher adapted personal interview method.

11

PHARMACEUTICAL INDUSTRY IN BANGLADESH

At present, in Bangladesh, there are 204 national pharmaceutical companies and only 7

multinational or foreign companies operating. Domestic companies are currently dominating

the 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 of

closely related operations, which are performed with the purpose of summarizing the collected

data and organizing them in such a manner that they answer the research questions.

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Findings

This section will try to highlight and discuss the results and the findings based on the analysis

done on the data collected from respondents. This research focuses on the factors affecting

employee job satisfaction in selected pharmaceuticals company. The discussion then will try to

accomplish 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 procedures

in Pharmaceuticals Company and discussion.

Employees Job Satisfaction in Pharmaceuticals Company

This part discusses the respondents’ overall perception of employee job satisfaction in

Pharmaceuticals Company and sub-dimensions such as pay and promotion, job security, work

conditions, fairness and relationship with co-workers and management. The findings are

presented in frequencies and percentages.

Chart 2: Overall level of employee satisfaction in Pharmaceutical Companies

13

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 nor

unhappy” and in terms of relationship with immediate supervisor the level of employee job

satisfaction is “somewhat unhappy”. Overall level of employee satisfaction in pharmaceutical

companies, the study found that the average mean is 61%, so the overall level of employee job

satisfaction is “neither happy nor unhappy”.

Descriptive Statics

Level on work conditions:

In terms of level on work conditions in pharmaceuticals companies, the study found that 44

respondent’s perceived atmosphere to be “Neutral”. About 29 respondents perceived the work

conditions to be “happy”, while 15 respondents perceived work conditions as “unhappy” .A

few, 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 the

mean score of 3.10, we can see that work conditions influence job satisfaction in

pharmaceuticals companies. (See, Appendix-02)

Level on Pay and Promotion

In terms of level on pay back in pharmaceuticals companies, the study found that 49

respondents perceived pay and promotion to be “neither happy or unhappy”, 21 of the

respondents perceived the pay and promotion to be “somewhat happy “and 21 respondents

perceived pay and promotion to be “somewhat unhappy”. Only a few 4 and 5 of the

respondents rated the pay and promotion as “very unhappy” and “very happy”. At last, the

mean score is 3.02, so the pay and promotion is “somewhat unhappy”. According to a mean

score of 3.02, we can see that pay and promotion influences job satisfaction in pharmaceuticals

companies. (See, Appendix-03)

14

Level on Fairness:

In terms of level about fairness in pharmaceuticals companies, the study found that 51

respondents perceived fairness to be “neither happy nor unhappy”, 24 respondents perceived

the fairness to be “somewhat happy”, while 16 respondents perceived fairness as “somewhat

unhappy”. 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 in

pharmaceuticals companies. (See, Appendix-04)

Level on Job Security

In terms of level on job security in pharmaceuticals companies, the study found that 50

respondents perceived job security in pharmaceuticals companies to be “neither happy nor

unhappy”, 24 respondents perceived job security in pharmaceuticals companies to be

“somewhat happy”, while 17 respondents perceived job security in pharmaceuticals companies

as “somewhat unhappy”. 5 respondents rated job security as “very unhappy” and 4

respondents were “very happy”. Finally, the mean score is 3.08, so job security in

pharmaceuticals companies is “neither happy nor unhappy”. According to the mean score of

3.05, 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 study

found that 42 respondents perceived relationship with co-workers to be “neither happy or

unhappy”, 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 pharmaceuticals

companies. (See, Appendix-06)

15

Level on Relationship with immediate supervisor

In terms of level on relationship with immediate supervisor in pharmaceuticals companies, the

study found that 49 respondents perceived relationship with immediate supervisor in

pharmaceuticals companies to be “neither happy or unhappy” 14 respondents perceived

relationship with immediate supervisor as in pharmaceuticals companies to be “somewhat

happy”, while 25 respondents perceived relationship with immediate supervisor in

pharmaceuticals companies as “somewhat unhappy”. 8 respondents rated relationship with

immediate supervisor as “very unhappy” and 4 rated it as “very happy”. Finally, the mean score

is 2.81, so relationship with immediate supervisor in pharmaceuticals companies is “somewhat

unhappy”. According to the mean score of 2.81, we can see that relationship with immediate

supervisor influences job satisfaction in pharmaceuticals companies. (See, Appendix-07)

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PERFORMANCE APPRAISAL & EMPLOYEE SATISFACTION [AN OVERVIEW] MULTINATIONAL COMPANIES

Performance Appraisal Process in GlaxoSmithKline Bangladesh Ltd

GSK Bangladesh Ltd. has four functional sub-department of HR department. The departments

are HR Development, HR Services, Compensation, Industrial Relations. Performance appraisal is

practiced under Operation of HR Services. GSK has divided its total employees into 2 categories

for appraisal: (1) management employees and (2) non-management employees. For

management employees, it has been divided into director, manager and officer. There are two

categories of officer. One is office based officer and another is field force officer. Office based

officers 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 appraisal

system 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 midyear

review option.

Sales Force Officer’s Appraisal Process in GSK

In 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 to

organize work, initiative, quality of reporting, attitude towards superiors & colleagues, active

participation in conference & meeting, effective utilization of promotional materials,

trustworthiness and integrity and, attention to safe working.

17

Performance Appraisal Process Overview in Roche Bangladesh Ltd

At Roche, performance is assessed by comparing anticipated achievements with the actual

ones, taking into account external and personal factors, which may have determined

or influenced the actual achievements although MBO approach is practiced at Roche. An overall

appraisal of the employee is made on the basis of this comparison, taking into consideration

the results of previous appraisals and other assessable factors. The PA of Roche concludes with

suggestions for suitable steps to be taken for the utilization and encouragement of the

strengths of the employee and the elimination of weaknesses all of which relate to his present

assignment and possible future assignments. Roche observes some principles for the

implementation 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.

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.

18

PA Interview with the Employee:

The Appraisal Interview between the direct supervisor and the employee concerned is a very

important aspect of Performance Appraisal. In this step, the employee is informed of the result

of 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 grounds

rated 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/Delegation

Selling Skill/Salesmanship PA at Roche, unlike that in some other organizations is very

democratic 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 and

can also figure out the extent to which PA is true and fair. PA at Roche, unlike that in some

other organizations is very democratic 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 and can also figure out the extent to which PA is true and fair.

19

PERFORMANCE APPRAISAL & EMPLOYEE SATISFACTION [AN OVERVIEW] LOCAL COMPANIES

Performance Appraisal Process in BEXIMCO PHARMA Bangladesh Ltd

Performance Appraisal:

At BPL appraisals are done by the Self-appraisal system. Goals are set by

participative_management approach and performance is evaluated quantitatively against those

previously set objectives. Managers appraise the performance of their subordinates through 5

points Graphic Rating Scale. The total appraisal process is completely transparent to everyone

within the organization: 1 for unsatisfactory, 2 for marginal, 3 for target, 4 for superior, 5 for

outstanding.

Employee Compensation:

Employee compensation refers to all forms of pay or rewards going to employees and arising

from 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

Union influences on compensation decisions

20

Corporate policies and competitive strategy

Policy issues affecting the plan of an organization

Establishing Pay Rates

The Salary Survey: A survey aimed at determining prevailing wage rates. A good salary survey

provides specific wage rates for specific jobs. Formal written questionnaire surveys are the

most comprehensive, but telephone surveys and newspaper ads are also sources of

information.

Job Evaluation: A systematic comparison done in order to determine the worth of one job

relative 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

Benefits and Rewards Package

Indirect financial and non financial payments employees receive for continuing

their 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 Benefits

Health & Safety

Pre employment medical check-up:

The selected person before joining has to go through full medical check-up that guarantees

his /her physical fitness to perform the job successfully. A medical practitioner who uses a

physical capability analysis that assesses the candidate against the physical capabilities

documented for each role conducts the medical check-up. A medical is also appropriate for

internal 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 necessary

medical support to the employees. Moreover, the non-management staffs enjoy medical

treatment at Hospital at company arrangement.

Health Insurance Policy:

Management staffs enjoy health insurance for self, spouse and two children up to 21 years for

hospitalization only. Delta Life Insurance provides the insurance and the company pays the

premium.

22

Company Safety Policy

It comes from the group chief executive to adapt in all the country. The local CEO counter signs

the policy for each individual country and the copy of the policy is circulated to all the levels in

the organization. So it is the duty of all the employees’ to emphasize on safety. There is an Oath

in BPL, Bangladesh regarding safety. That is “SAFETY FIRST – QUALITY MUST”. The safety policy

of BPL, Bangladesh “safety health and environment management” which is signed by the CEO

carries certain messages for us. It complies with the local safety laws of Bangladesh. One

important issue of this policy is DUTY OF CARE. It can be described as not to do any things that

may cause risk to others, properties even to me and also let other not to do even that may

hazardous to him only. There is another planning for emphasized on safety. Safety aspect may

include in every one’s KPI & CSF. There are some other important points of the policy that we

should care and implement per hour daily work.

23

Performance Appraisal Process in SQUARE PHARMA Ltd

Performance Appraisal

The supply chain department of SPL conducts the performance appraisal for all the employees

of the department. The HR department helps in this process. At first the employees are given

the opportunity of self-evaluation. Later on the employees are evaluated by their reporting

boss and the person supervising his boss. Thus all the employees including the AGM and EDA

are evaluated. The MD evaluates the EDA’s performance. For this evaluation purpose there is a

specific performance appraisal form. Then the AGM, EDA and MD sit together to take decisions

based on the employee evaluation. If any employee's performance is not satisfactory then they

decide about how the performance of that employee can be improved. If any employee’s

performance is outstanding then he gets a promotion.

Reward and Compensation System

The reward system of an organization includes anything that an employee may value and desire

and that the employer is able or willing to offer in exchange for employee contributions. The

reward system consists of a compensation and non-compensation system. Compensation refers

to all forms of financial returns and tangible services and benefits employees receive as part of

an employment relationship.

Pay Structure

Pay 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

Overall Summary [Employee Job Satisfaction]

1. Satisfaction with Interpersonal Relations

Table-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) in

local and 80% (47% highly satisfied and 33 satisfied) in multinational are satisfied with

interpersonal relations in organizations. In summing up it can be inferred that both local and

multinational organizations are having good culture offering interpersonal relations.

Table 1: Satisfaction with Interpersonal Relations [sales representative]

Level ofSatisfaction

Local Organization MultinationalOrganization Total Organization

Number Percent Number Percent Number Percent

HighlyDissatisfied 3 6 Nil Nil 3 4

Dissatisfied 2 4 02 13 4 6Undecided 4 8 01 7 5 8Satisfied 10 20 05 33 15 23Highly Satisfied 32 62 07 47 39 59

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 regarding

compensation and reward packages being offered by the organizations. It reveals that

managers of both local and multinational organizations are not happy with the rewards offered

by the organizations; as dissatisfied managers are 63% (35% highly dissatisfied and 27% are

dissatisfied) in local and 46% (13% highly dissatisfied and 33% dissatisfied) in multinational

25

organizations. It reveals that compensation packages are not sufficient in both organizations,

but local organizations are relatively low paying organizations. When we look at the satisfied

mangers, the satisfied managers are 40% in multinational organizations, while that ratio is only

24% in local organizations. This proves that multinational organizations are relatively offering

better packages.

Table 2: Satisfaction with Compensation Package (salary & fringe benefits)


LocalOrganization

MultinationalOrganization

Total Organization

Number % Number % Number %

HighlyDissatisfied 18 35 2 13 20 30

Dissatisfied 14 27 5 33 19 28Undecided 07 14 2 14 9 14Satisfied 06 12 3 20 9 14Highly Satisfied 06 12 3 20 9 14Total 51 100 15 100 66 100

3. Satisfaction with Professional Effectiveness

Satisfaction level of middle level managers is given in table 6. Results reveal that majority of the

respondents 80% (19% highly satisfied and 51% satisfied) in local and 87% (14% highly satisfied

and 73% satisfied) in multinationals are satisfied with the professional effectives offered by

their organizations. It shows that managers are provided with the professional development

opportunities and they are professionally effective.

Table 3: Satisfaction with Professional Effectiveness


LocalOrganization

MultinationalOrganization Total Organization

Number % Number % Number %

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4. Overall Job Satisfaction

Table-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) in

multinational organizations are satisfied with their job. It shows that majority of middle level

managers are satisfied but the satisfaction level of middle level managers is slightly high in the

multinational organizations. This table also shows that none of the middle level mangers was

highly dissatisfied in the multinationals but 10% of the middle level managers were highly

dissatisfied in the local organizations.

Table 4: Overall Job Satisfaction

Level of Local Organizations Multinational Organizations Total Organizations

Satisfaction Number Percent Number Percent Number PercentHighly Dissatisfied 5 10 Nil Nil 5 8

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

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HighlyDissatisfied

1 2 0 0 1 1

Dissatisfied 3 6 0 0 3 5Undecided 11 22 2 13 13 20Satisfied 26 51 11 73 37 56

Highly Satisfied 10 19 2 14 12 18Total 51 100 15 100 66 100

CONCLUSIONS

Employee job satisfaction can improve service quality and increase employee satisfaction. In

this circumstance, policy makers and managers have turned their attention to provide different

kinds of facilities to their employees in order to satisfy their employees. This study tested

factors affecting job satisfaction for pharmaceuticals companies. The results suggest that the

factors had satisfactorily explained job satisfaction and that the policy makers and managers

should focus on the factors that affect employee job satisfaction, if they want to enhance their

businesses. Based on the results for the standardized values, we are able to see that work

conditions, fairness, promotion, and pay, are key factors affecting pharmaceuticals companies

employees’ job satisfaction. Money is a good motivator, actually all employees’ work for

money, employees need the money, a good salary and good compensations are key factors in

satisfying the employee. The factor of work conditions is also proven to have significant

influence over the pharmaceuticals companies. The physical design of the place does have

certain impacts on job satisfaction. Because the work conditions in the pharmaceuticals

companies include the employee relationships and work environment, all these factors relate

to employee job satisfaction. A good performance appraisal system, work environment and

good work conditions can increase employee job satisfaction and the employees will try to give

their best which can increase the employee work performance.

Results of the study reveal that middle level managers are satisfied in both local and

multinational organizations; but mangers of multinational organizations are slightly more

satisfied then the local organization managers. When mangers were inquired for all the

dimensions of organizational climate it was found that there was not much difference in both

local and multinational organizations on the facets of organizational climate except for pay and

reward system. Middle level mangers of local organizations were not satisfied with the pay and

reward system but the employees of the multinational organizations show that pay and reward

system in their organizations are good and fair.

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APPENDIX: 01 Employees’ Satisfaction Interview Schedule:The following questions are designed only for research purpose. The researcher has no intention to represent this information negatively in his paper. The information will be kept confidently. For the following 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 SD Level 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.

4 I am satisfied & able to maintain a healthy balance between work and 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.

7 I am satisfied with the compensation I get & I think it matches with my responsibility.

8 Our company maintains salary levels that compare well to other companies in this area.

Level on Fairness9 I am happy with my work responsibilities.

10I am satisfied with the present performance appraisal policy of the company.

11I am satisfied and think I've been awarded right set of duties, as per my ability.

12 I feel there is adequate opportunity for me to move to a better job within the company.

Level on Job Security

13 The company has adequate safety & health standard.

14I am satisfied with long term benefit & insurance policies of the company.

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Level on Relationship with Co-workers

15 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) No

Question 2 What type of employee you select to appraise their performance?

a) Survivor b) Performer c) Hard worker d) a, b, c

Question 3 Appraising performance is a part of our organization?

a) True b) False c) Partially a and b d) None

Question 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) Maybe

Question 10 Does your employee need a certain period of time to be a part of performance appraisal?

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Question 11 In what criteria you choose most to appraise the performance?

a) Behavioral aspectsb) Working capabilityc) Building strong communicationd) Job handling powere) Competency

Question 12 What sort of criteria an employee should meet to be a part of performance appraising by

the 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) No

Question 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 (X) Frequency(f) d = X-A fd

Very Unhappy Unhappy Neither Happy nor Unhappy Happy Very Happy

1 2 3(A) 4 5

7 15 44 29 5

-2 -1 0 1 2

-14 -15 0 29 10

∑f=100 ∑fd=10

X= A+ (∑fd/∑f) =3+ (10/100) =3.10 = 3.10×20 =62%

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Appendix: 03. Level on Pay and Promotion

Satisfaction level Value of (X) Frequency(f) d = X-A Fd


1 2 3(A) 4 5

4 21 49 21 5

-2 -1 0 1 2

-8 -21 0 21 10

∑f=100 ∑fd=2

X= A+ (∑fd/∑f) =3+ (2/100) =3.02 = 3.02×20 =60.40% Appendix: 04. Level on Fairness



1 2 3(A) 4 5

6 16 51 24 3

-2 -1 0 1 2

-12 -16 0 24 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



1 2 3(A) 4 5

5 17 50 24 4

-2 -1 0 1 2

-10 -17 0 24 8

∑f=100 ∑fd=5

X= A+ (∑fd/∑f) =3+ (5/100) =3.05 = 3.05×20 =61%

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Appendix: 06. Level on Relationship with Co-workers



1 2 3(A) 4 5

1 19 42 25 13

-2 -1 0 1 2

-2 -19 0 25 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 (X) Frequency(f) d = X-A Fd


1 2 3(A) 4 5

8 25 49 14 4

-2 -1 0 1 2

-16 -25 0 14 8

∑f=100 ∑fd=-19

X= A+ (∑fd/∑f) =3+ (-19/100) =2.81 = 2.81×20 =56.20%

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Performance appraisal & employee satisfaction in pharmaceutical industry in bangladesh

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