HRM

1. A Report on
Performance Appraisal & Employee
Satisfaction in
Pharmaceutical Company

2. Human Resource Management
MGT 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
United International University
Summer- 2012
Date of submission: 24 July 21, 2012

3. Letter of Transmittal
July, 24, 2012
Mrs. Shayla Binta Sayeed
Course Instructor- MGT 3122
United International University
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 Ahmed
ID: 111 101 119
Sec: B
School of Business
United International University
iii

4. 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.
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5. 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
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6. PA Interview with the Employee ……………………………………………………………………………………………... 19
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
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7. 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.
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8. 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

9. 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”.
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10. 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

11. 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.
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12. 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.
12

13. 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
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14. 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)
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15. 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)
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16. 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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17. 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.
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18. 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.
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19. 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.
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
19

20. 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.
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
20

21. • Union influences on compensation decisions
• 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

22. 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

23. 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.
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24. 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
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25. 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]
Multinational
Level of Local Organization Total Organization
Organization
Satisfaction
Number Percent Number Percent Number Percent
Highly
3 6 Nil Nil 3 4
Dissatisfied
Dissatisfied 2 4 02 13 4 6
Undecided 4 8 01 7 5 8
Satisfied 10 20 05 33 15 23
Highly
32 62 07 47 39 59
Satisfied
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
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
25

26. 24% in local organizations. This proves that multinational organizations are relatively offering
better packages.
Table 2: Satisfaction with Compensation Package (salary & fringe benefits)
Local Multinational
Level of Total Organization
Organization Organization
Satisfaction
Number % Number % Number %
Highly
18 35 2 13 20 30
Dissatisfied
Dissatisfied 14 27 5 33 19 28
Undecided 07 14 2 14 9 14
Satisfied 06 12 3 20 9 14
Highly Satisfied 06 12 3 20 9 14
Total 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
Local Multinational
Level of Total Organization
Organization Organization
Satisfaction
Number % Number % Number %
26

27. Highly
1 2 0 0 1 1
Dissatisfied
Dissatisfied 3 6 0 0 3 5
Undecided 11 22 2 13 13 20
Satisfied 26 51 11 73 37 56
Highly Satisfied 10 19 2 14 12 18
Total 51 100 15 100 66 100
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
Multinational
Level of Local Organizations Total Organizations
Organizations
Satisfaction Number Percent Number Percent Number Percent
Highly
5 10 Nil Nil 5 8
Dissatisfied
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
27

28. 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.
28

29. 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.
I am satisfied & able to maintain a healthy balance between work and
4
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.
I am satisfied with the compensation I get & I think it matches with my
7
responsibility.
Our company maintains salary levels that compare well to other companies
8
in this area.
Level on Fairness
9 I am happy with my work responsibilities.
I am satisfied with the present performance appraisal policy of the
10
company.
I am satisfied and think I've been awarded right set of duties, as per my
11
ability.
I feel there is adequate opportunity for me to move to a better job within
12
the company.
Level on Job Security
13 The company has adequate safety & health standard.
I am satisfied with long term benefit & insurance policies of the company.
14
29

30. 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?
Question 11 In what criteria you choose most to appraise the performance?
a) Behavioral aspects
30

31. b) Working capability
c) Building strong communication
d) Job handling power
e) 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 Frequency(f) d = X-A fd
(X)
Very Unhappy 1 7 -2 -14
Unhappy 2 15 -1 -15
Neither Happy nor Unhappy 3(A) 44 0 0
Happy 4 29 1 29
Very Happy 5 5 2 10
∑f=100 ∑fd=10
X= A+ (∑fd/∑f)
=3+ (10/100) =3.10
= 3.10×20
=62%
31

32. Appendix: 03. Level on Pay and Promotion
Satisfaction level Value of Frequency(f) d = X-A Fd
(X)
Very Unhappy 1 4 -2 -8
Unhappy 2 21 -1 -21
Neither Happy nor Unhappy 3(A) 49 0 0
Happy 4 21 1 21
Very Happy 5 5 2 10
∑f=100 ∑fd=2
X= A+ (∑fd/∑f)
=3+ (2/100) =3.02
= 3.02×20
=60.40%
Appendix: 04. Level on Fairness
Satisfaction level Value of (X) Frequency(f) d = X-A fd
Very Unhappy 1 6 -2 -12
Unhappy 2 16 -1 -16
Neither Happy nor Unhappy 3(A) 51 0 0
Happy 4 24 1 24
Very Happy 5 3 2 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
Satisfaction level Value of Frequency(f) d = X-A fd
(X)
Very Unhappy 1 5 -2 -10
Unhappy 2 17 -1 -17
Neither Happy nor Unhappy 3(A) 50 0 0
Happy 4 24 1 24
Very Happy 5 4 2 8
∑f=100 ∑fd=5
X= A+ (∑fd/∑f)
=3+ (5/100) =3.05
= 3.05×20
=61%
32

33. Appendix: 06. Level on Relationship with Co-workers
Satisfaction level Value of Frequency(f) d = X-A fd
(X)
Very Unhappy 1 1 -2 -2
Unhappy 2 19 -1 -19
Neither Happy nor Unhappy 3(A) 42 0 0
Happy 4 25 1 25
Very Happy 5 13 2 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 Frequency(f) d = X-A Fd
(X)
Very Unhappy 1 8 -2 -16
Unhappy 2 25 -1 -25
Neither Happy nor Unhappy 3(A) 49 0 0
Happy 4 14 1 14
Very Happy 5 4 2 8
∑f=100 ∑fd=-19
X= A+ (∑fd/∑f)
=3+ (-19/100) =2.81
= 2.81×20
=56.20%
33