Comparison of Management Practices Between 3 Pharmaceutical Companies of Pakistan

Summary of Presentation
Introduction. Problem statement. Objectives. Significance. Literature reviews. Methodology of dissertation. Conclusion. Limitation. Recommendation.

Introduction

Usually it seems that management practices in Pakistani industry are autocratic and mechanistic with top down decision making but new environment values participative and knowledge management practices. The project emphasis the importance of good management between 3 pharmaceuticals in Pakistan which affects the firms performance. For the purpose of study strategic level management will be chosen like Controllers, Plant managers or CEO to get the over all picture of pharmaceutical manufacturing plant. Comparison among 3 companies shows that practices in Pakistani pharmaceuticals are satisfactory and stand above 80% in over all score.

Problem Statement

Do Pakistani pharmaceuticals maintain sufficient level of management practices?

Objectives

The aim of the study is to come to know that whether the pharmaceutical industry in Pakistan acknowledges good management practices as well as modern management practices. And to what extent they are applied to the organizations. Further the study make comparison between the management practices of 3 pharmaceutical industry of Pakistan to conclude that which pharmaceutical has better management practices and have knowledgeable management. The study also suggests recommendations for those pharmaceuticals that are not practicing the management tools as demanded by the environment

Significance
The project will show indirectly the importance and value of management practices in pharmaceutical industry as compared to other industries of Pakistan e.g. textile or leather etc and open an avenue for others to study in that direction. The study also shows the practical efforts or recognition of management practices for organizational efficiency and effectiveness. Further it will also show the difference in management practices with in the pharmaceutical industry that is organizations that adopts good management practices and which gives less value or no value to management practices and adopt traditional bureaucratic styles.

Major Literature Reviews

BUBL LINK Catalogue of Internet Resources, Management practice http://bubl.ac.uk/link/m/managementpractice.htm Management in Practice Events. http://www.managementinpractice.com/default.asp?page=event.home Management by Stephen P. Robbins & Mary Coulter, 7th edition. Management by Koontz

Theoretical Framework
Following constructs were used to measure the management practices 1) Strategic Management Practices 2) General Management Practices 3) Human capital management practices 4) Management self assessment practices 5) Innovation and creativity 6) Supply chain management 7) Manufacturing management practices 8) Change management practices 9) Lean management practices 10) Safety and health management practices

Methodology
Data collection techniques and presentation: Data is collected by sending questionnaire to 3 pharmaceutical companies of Pakistan. Questionnaires were given to qualified individuals and responses were recorded accordingly. Data was processed using excel worksheet where data is entered and tabulated and chart wizard for making Column and Pie diagrams. Research design is a survey-questionnaire where behaviors, beliefs and observations of management were identified, reported and interpreted and it is a cross-Sectional Study. Questionnaires were send via emails to different destinations and any complication is handled by mobile phone communication. 3 Pharmaceutical companies were selected from Karachi, Lahore and Faisalabad and strategic level managers were contacted to fill the questionnaires. Sample were selected on non probability basis.

STRATEGIC MANAGEMENT PRACTICES

STRATEGIC MANAGEMENT PRACTICES

100%

PRACTICE %

80%

60%

AGP ASK

40%

SAF

20%

0% GOALS COMPETATIVE ADVANTAGE ENVIRONMENTAL CONCERN

GENERAL MANAGEMENT PRACTICES

GENERAL MANAGEMENT PRACTICES

100% 80% PRACTICE % 60% 40% 20% 0% DECISION MAKING CRITERIA EMPLOYEES BEHAVOUR SUPPORT EMPLOYEE EMPOWERMENT AGP ASK SAF

HUMAN CAPITAL MANAGEMENT PRACTICES

HUMAN CAPITAL MANAGEMENT PRACTICES

100% PRACTICE % 80% 60% 40% 20% JOB SELECTION CRITERIA EMPLOYEE DEVELOPEMENNT MOTIVATIONAL TOOLS 0% NATURE OF TASKS AGP ASK SAF

MANAGEMENT SELF ASSESMENT PRACTICES

MANAGEMENT SELF ASSESMENT PRACTICES

100% 80% PRACTICE % 60% 40% 20% 0% SELF ASSESMENT FOR IMPROVEMENT ROLE PLAYED FOR SUBORDINATES AGP ASK SAF

INNOVATIVE AND CREATIVITY PRACTICES

INNOVATION AND CREATIVITY

100% 80% PRACTICE % 60% 40% 20% 0% REASEARCH AND DEVELOPEMT SUGGESTIONS FOR NEW PRODUCTS PRODUCT PLANNING CRITERIA AGP ASK SAF

SUPPLY CHAIN MANAGEMENT PRACTICES

SUPPLY CHAIN MANAGEMENT

100% 80% PRACTICE % 60% 40% 20% 0% INVOLVEMENT OF SUPPLIERS AND DISTRIBUTORS IN STRATEGIC DECISION

AGP ASK SAF

MANUFACTURING MANAGEMENT PRACTICES

MANUFACTURING MANAGEMENT PRACTICES

100% 80% PRACTICE % 60% 40% 20% 0% DAILY WORK PROCEDURES FORMAT TYPES OF CERTIFICATION CONSEDIRATION OF MODERN TECHNOLOGY AGP ASK SAF

CHANGE MANAGEMENT PRACTICES

CHANGE MANAGEMENT PRACTICES

100% 80% PRACTICE % 60% 40% 20% 0% PREFFERABLE STATE OF ORGANIZATION FREQUENCY OF AUDITS IMPROVEMENTS REALIZATION CHANGE MANAGEMENT IMPORTANCE AGP ASK SAF

LEAN MANAGEMENT PRACTICES

LEAN MANAGEMENT PRACTICES

100% 80% PRACTICE % 60% 40% 20% 0% ORGANIZATIONAL POLICY AND SYSTEM FOR LM LM TOOLS APPLIED AGP ASK SAF

SAFETY AND HEALTH MANAGEMENT PRACTICES

SAFETY AND HEALTH MANAGEMENT PRACTICES

100% 90% 80% PRACTICE % 70% 60% 50% 40% 30% 20% 10% 0% STAFF SAFETY SAFETY AUDITS AGP ASK SAF

Over All Comparison of Management Practices

OVER ALL % COMPARISON OF MANAGEMENT PRACTICES

SAF, 86.62%

AGP, 80.22% AGP ASK SAF

ASK, 82.45%

Data Analysis

Over all percentage level of strategic management practices are good in case of ASK and SAF. However AGP is lacking behind in goals and competitive advantage. It seems that AGP management is more focus towards market development and depends on automation in future as it considers more important the technology in his strategy

Conclusion
In general management practices we see that management is more employee centered and promote a collective culture of team. In human capital SAF again has a culture of reward and training which shows the human development and recognition factor for his human resource. SAF which distinct it from all other 2 pharmaceuticals because it involves suppliers and distributors for strategic level decision making. ASK has its strategic management is more focused on technology than human capital. Company also believes in drastic changes for improvement. AGP is lowest in cumulative percentage as compared to above 2 pharmaceuticals. Its strategic management practices are not quality but market share and technological. AGP also not believes in employee empowerment. Human capital practices are traditional. However the organization is very progressive in lean management practices and other aspects of management. The over all analysis concludes that Pakistani pharmaceuticals have good management practices and due to this reason Pakistani medicines have high demand in international market.

Limitations
The study can not be generalized to all pharmaceutical companies in Pakistan. The variables used for management practices are not exclusive although they are selected as most popular ones. The study does not involve observations. Therefore the findings are based only on selected representative managers feedback. Pharmaceuticals of only Karachi, Lahore and Faisalabad were selected. Lots of pharmaceuticals are present in Islamabad, Peshawar and Hyderabad. Data provided by the representative managers may be biased for many reasons.

Recommendations
SAF
SAF needs attention in safety management and its relative aspect that is concern for environmental safety and waste disposal. Company should also increase the frequency of audits. Lean management practices of SAF are also weak and the organization should approach for advance lean management evaluation techniques.

ASK
Should consider human capital its important asset as the future competition is on tacit knowledge base. Also the company needs to introduce new products. Need strong interaction with suppliers and distributor. Lean management practices should be encouraged by the management.

AGP
Management needs frequent self assessment if it has to retain its human capital. Need strategic integration with suppliers and distributors. General Recommendations: More management constructs should be use in future study like IS management, Knowledge management practices as there importance are growing day by day Sample size should be enlarge enough that it makes the representative sample of Pakistani pharmaceutical industry. It is recommended that pharmaceuticals should perform management practices audit to bench mark there practices.

VIRTUAL UNIVERSITY OF PAKISTAN

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