Assignment

On
Performance Appraisal of Square Pharmaceuticals Limited

Course-BUS601
Section-4

Submitted To
Dr. Md. Shariful Alam Khandakar
Professor, Department of management
School of Business & Economics (SBE)
North South University

Submitted By
Zerin Bushra
ID: 2025315660
Introduction
Square today is more than just an organization, it is an institute. In a career spanning
across four and half decades it has pioneered the development of the local business
in fields as diverse as Pharmaceuticals, Toiletries, Garments, Textile, Information
Technology, Health Products, Food Products, Hospital, etc. With an average Annual
turnover of over US$ 200 million and a workforce of about 3500 the Square Group
is a true icon of the Bangladesh business sector. Square Pharmaceuticals Ltd. (SPL),
the pharmaceutical giant in the country, is a trusted name in the industry of
manufacturing quality medicines for more than four decade. Square is now an active
corporate giant in the fields of business and industry. Beximco Pharmaceuticals,
Incepta Pharmaceuticals, Drug International are the direct competitor of Square
Pharmaceuticals Ltd. The pharmaceutical sector is a high-technology and
knowledge- intensive industry. The industry has a two-tier structure. The largest
firms account for the majority of the R&D investment in the industry and hold the
majority of patents. There are a large number of smaller firms producing mostly for
local markets. The pharmaceutical industry is heavily regulated.

Objective of the study

To get a detailed information about the employee satisfaction on performance
appraisal of square pharma Ltd.

Methodology
The information used in this report are collected from the secondary source such as
websites, articles, square pharma Ltd verified page and annual reports.

Company profile
Square Pharmaceuticals Ltd. is a Bangladeshi multinational pharmaceutical
company.It was founded in 1958 by Samson H. Chowdhury along with three of his
friends PK Saha, Kazi Harunur Roshid and Radhabinod Rai as a private firm. It went
public in 1991 and is listed on the Dhaka Stock Exchange and on the Chittagong
Stock Exchange.Square Pharmaceutical started to export different antibiotics and
medicine across the world from 1987. Now it exports its medicine to 36 countries of
the world.In 2008 and 2009 it had the highest market share in the pharmaceutical
industry of Bangladesh.For the last couple of years, it has been seeing double digit
revenue every year .The Forbes list said Square Pharmaceutical Company of
Bangladesh, involved in drug and chemical business, has sales volume worth $512
million. The local pharma's market capital is $1.7 billion. Its net income is $150
million and has employed 9,234 people.

Performance Appraisal process in Square Pharma LTD

Performance appraisal is the process through which an organization gets information
on how well an employee is doing his or her job. The central feature of any
performance appraisal system is the establishment of objectives against which any
assessment of the performance of the individual is based.
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: Basic Salary + Home Rent + Transport + Medical Allowance.

Performance Appraisal Training

Every organization conducts performance for assessing the performance of the
employees and the organization. But if not conducted properly, they can give a
false impression about the performance of the employees and affect the overall
performance of the organization; therefore, there is a need to train the appraisers to
ensure the maximum effectiveness of the process.
Square pharmaceuticals also offer to their employees give up training for getting
more benefit of company and staffs do their best for that. Employee’s promotion
depends on their performance and activities.

Self Appraisals
Self appraisal is an important part of the Performance appraisal process where the
employee himself gives the feedback or his views and points regarding his
performance. Usually this is done with the help of a self appraisal form where the
employee rates himself on various parameters, tells about his training needs, if any,
talks about his accomplishments, strengths, weaknesses, problems faced etc.
Square group followed all rules and regulations for improving their employees self
appraisal.

Succession planning & Performance management

Succession planning is ensuring the right people in the right place at the right time.
It is a part of HR planning for the organization and involves finding the right
people to take higher responsibilities in the organization. The success of the
organization is largely dependent on the quality of its human resources and leaders
of the organizations. Succession planning is proactive in nature and results in the
creation of a talent pool of candidates with the required potential and competencies
who can take the high positions in future and help in the growth of the
organization.

Recruitment & Selection Process

The recruitment system of square pharmaceuticals company followed many formal
procedures. Their recruitment system is depending upon two basic sources: one is
internal and other is external source.

Internal Source:
Square Pharmaceuticals Companies internal sources are recruiting current
company employees for the sales force department. In their HR department, each
employee has personal records, performance a record which is varying from other
employees. So if an employee’s performance is better than company give the
promotion. These types of recruiting reduce the cost and time also.

External Sources: Square Pharmaceuticals Company some external sources for

recruiting. Some sources are given below:
• Referral of people in other firms
• Advertisements
• Employment Agencies.

Motivation of Employees
Motivation is viewed as the amount of effort the salespersons and other employee’s
desires to expend on each activity or task associated with the job. In every
organization, if sales people are not motivated they don’t give any extra benefit for
the organization. Square pharmaceuticals also motivate their employees in different
ways. Now we discussed about their motivation system:
Square pharma mainly give reward depending on each sales person’s performance.
They always set a quota for every sales people. They told them, if a sales person can
fulfill his quota early than he will receive 2% commission on each product. They
also tell them if any one can sell highest amount of product three years in a row, than
he/she will get promotion. These types of motivation sometimes appropriate for the
organization. Square also give some commission on extra sell in every product. In
this way they motive their sales people also departmental staffs.

Reward for superior performance

Square pharmaceuticals ltd. recognizes superior performance. When their any
employee’s performance is better than other employees, then that employees get
reward from the organization.

Fairness
Square pharmaceuticals Company always follow fairness when they give any
reward. Fairness creates a value for the employees mind and them emphasis more
on their work.

Recommendation

As Square Pharmaceutical Ltd. is one of the leading national companies of

Bangladesh its human resource policies are much more competent and well
organized than any other organization of Bangladesh. Even many Multinational
companies are falling behind in the means of human resource practices than Square
Pharmaceutical Ltd. those are competing with the mentioned company. The great
feature of its development process is that it provides allowances according to the
company rules to the employees when they are going for an external
training. Compensations and benefit programs are standard enough in Bangladesh
to retain employees in the organization but as Square Pharmaceutical Ltd. is a
company which is competing with many global companies so it should develop a
compensation. program which will be competitive enough to attract not only
Bangladeshi candidates but also the candidates those are globally competitive.

Conclusion
The performance and appraisal management system in Square Pharmaceuticals
Company is a planned system. They use different management tools for
establishing their performance and appraisals management. In the above discussion
we can easily understand that, Square Pharmaceuticals Company mainly depends
on their organizational distinguish of department. This divisional employee’s team
earned a great market share in every year also get promotion. Their total activates
is a very well defined, that’s why their divisional people are more active than any
other pharmaceuticals company. In our country, pharmaceuticals company mainly
use personal selling as promotional tools. So they should more emphasize on this
promotional tools, also focus on internal and external activities.