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A Project Report On


(Human Resource Management)

Date:- 28th Feb 2012 Beta Class Submitted to: Shweta Bambuwala (NR11016) Keyur Chavda (NR11026) Bhadres Dangar (NR11037) Hardik Ramanuj (NR11120) Dhaval Panara (NR11) Birju Sadariya (NR11) Prepared by: Dhruv Brahmbhatt

N. R. Institute of Business ManagementAhmedabad

Batch- 2011-13

In today's world only theoretical knowledge is of no importance one has to have a practical knowledge of the subject so as to understand & grasp the subject well. It works according to the famous proverb "Practice Makes Man Perfect". In our MBA program, we have to visit a company and to understand it by the way of collecting information & then to prepare a report on that company which is a part of our syllabus. To become sharper in the field of the management, one needs both practical as well as theoretical knowledge and this level we have such practical training. To achieve this goal practical study is of utmost importance. Being the student of MBA, we have tried our level best to furnish all the possible details about the unit i.e. Cadila Pharmaceuticals Limited. We have visited the unit and have gathered the information provided in the project. This project gives an overall view of the working of the unit. In this report we have tried our best to give proper information of Cadila Pharmaceuticals Limited and we have tried our best to understand the HR policies of the industry.

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It is great pleasure for us to introduce this report, which we have prepared after visiting Cadila Pharmaceuticals Limited. We would like to thank our Management who has included this practical study in our syllabus which furnishes us with the complete knowledge about the subject.I would like to thank to all member of NR-IBM College, who had given such a nice guidance to me in preparing this report. I should not forget our duty to acknowledge by debt for gratitude Prof. Shweta Bambuwala faculty guide who gave their valuable time and guidance. All the above mentioned persons have given me great co-operation and period. Last but not the least important we owe to our respected & dear parents & without their blessing & moral support study could not have been possible. Again we would like to convey our thanks to all those who directly or indirectly helped me and contributed their efforts a bit or more for the preparation and success of this report.

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1. General

Information 7-18

2. Human Resource Management 19-42 3. Conclusion 43 4. Bibliography 44

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General Information
Company profile Vision and Mission

History and Development Size of the unit and firm Products Organization structure Time-keeping system Employee services

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Human Resource Management

Introduction Organization of Personal Department Recruitment, Selection and Induction Training and Development Job Description Promotion and Transfer Policy Performance Appraisal System Wage and Salary Administration Working of E.S.I. Scheme Provident Fund Scheme Grievance Handling Procedure Trade Union Personnel Records

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Company Profile

Name of the Company: Cadila Pharmaceuticals Limited Address: Corporate & Registered Office Cadila Corporate Campus Sarkhej-Dholka Road, Bhat, Ahmedabad-382 210, INDIA. +91-2718-225001 (15 Lines) +91-2718-225039 Chairman - Mr. Indravadan A. Modi Managing Director - Dr. Rajiv I. Modi

Telephone: Fax: Directors:

Year of Establishment: 1951 No. of employees: Nature of Business: Product: More than 2000 employees Manufacture Tablets, Capsules, Liquids, etc.

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Exporting to countries:

Americas, CIS Countries, Africa, Central and South-East Asia, Oceanic Countries, Japan, Middle East and Europe

Total Area covered: Bankers:

Spread over 44 acres 1. HDFC Bank 2. Bank of Baroda

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"Our vision is to be a leading pharmaceutical company in India and to become a significant global player by providing high quality, affordable and innovative solutions in medicine and treatment.

"We will discover, develop and successfully market pharmaceutical products to prevent, diagnose, alleviate and cure diseases. We shall provide total customer satisfaction and achieve leadership in chosen markets, products and services across the globe, through excellence in technology, based on worldclass research and development. We are responsible to the society. We shall be good corporate citizens and will be driven by high ethical standards in our practices."

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History:In 1952 Cadila Laboratories was founded by Shri Ramanbhai Patel (1925-2001), formerly a lecturer in the L.M. College of Pharmacy, and his business partner Shri Indravadan Modi. The company evolved over the next four decades into one of India's established pharmaceutical companies. In 1995 the Patel and Modi families split, Cadila Healthcare became the Patel family's holding company and with the Modi family's share being moved into a new company called Cadila Pharmaceuticals Ltd.

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Cadila Pharmaceuticals Ltd. is one of the largest privately held pharmaceutical companies in India. Over the last five decades, it has been developing and manufacturing pharmaceutical products and selling and distributing these in around the world. Cadila Pharmaceuticals has developed a multicultural, multilingual and multinational workforce even outside of India in countries of Africa, CIS, Japan and USA. The company has also developed one of the best Research and Development (R&D) setups in India, manned by scientists and engineers from various disciplines including biology, pharmacology, clinical research, chemistry, toxicology, phytochemistry and different disciplines of engineering. The company also participates in Public-Private partnerships for developing diagnostic, preventive and curative pharmaceutical and diagnostic products. Cadila Pharmaceuticals is the first Indian company to get IND approval by USFDA for clinical trials to be conducted in India. Subsequently, the company has filed four more INDs with USFDA.

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There are three types of industries, 1. Small Scale Industry. 2. Medium Scale Industry. 3. Large Scale Industry.

Firm Investment in fixed capital below Rs. 5 crore is called small scale Industry. Firm invest in fixed capital between Rs. 5 to 10 crore is called medium scale industry. Firm invest in fixed capital above Rs. 10 crore is called large scale industry. Cadila Pharmaceuticals Limited, is a large scale Industry having investment above Rs.10 crores.

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Products: Tablets. Capsules. Injections. Insulin. Dry Sterile. Liquids.
Dry Syrup.

Manufacturing Processes: The Company has re-located its manufacturing operations at the state-of-the-art plant at Dholka, located 50 km from Ahmedabad, the commercial capital of Gujarat. Spread over 44 acres of verdant, picturesque surroundings, amidst lush green lawns and thick foliage, the new locale is the most envied pharmaceutical installation in the Asian sub-continent.

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The organization structure of Cadila Pharmaceuticals Limited,

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The activity of recording the amount of time an employee works. Time keeping may involve a formal clock in system or it may be an informal arrangement based on trust.

The time keeping system is one of the important functions of an organization. This is for regulating incoming and outgoing of employees. In this unit one separate department of time keeping is kept for his own workers and not for contract based workers. The office of time keeping is placed near the front door the time officer also maintains the register for wage and salary.

Cadila Pharmaceuticals Limited has accepted the signature system of time keeping. The signature system exists for three staff members and card system for its workers who are unskilled. The firm sets its goals and assigned to the employees which are to be completed in the given period. Timings: Employees: Workers: 9 am to 7 pm 2 Shifts 1. 7 am to 5:30 pm 2. 8 pm to 6:30 am

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In any industry, employees play an important role for running business successfully. It is therefore necessary for management to give much attention to the employees. The management should provide better service to the employees. If the employees are given more and better service, their efficiency and moral towards works become high.

Cadila Pharmaceuticals Limited provides following service to their employees. Weekly holiday Canteen Facilities Medical Facilities Bonus benefit Festival benefit Withdraw Facilities Loan Scheme Provident Fund Scheme Employee State Insurance Scheme
Education assistance for employees children and so on

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Human resources are the most valuable and unique assets of an organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. Human Resource Management outlines the importance of HRM and its different functions in an organization. It examines the various HR processes that are concerned with attracting, managing, motivating and developing employees for the benefit of the organization. This discusses the issues in human resource management in a changing environment and suggests possible ways of leveraging and managing human resources. "If you want 10 days of happiness, grow grain. If you want 10 years of happiness, grow a tree. If you want 100 years of happiness, grow people."

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In Cadila Pharmaceuticals Limited, the organization chart of the personnel department is as follows,

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Recruitment:Recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants. It is the first contact that a company makes with potential employees. It is through recruitment that many individuals will to know a company, and eventually decide whether they wish to work for it. Recruitment is understood as a process of searching for and obtaining application for jobs, from among whom the right people can be selected. When employee retired When employee is dismissed When employee is given promotion or transfer There are three methods of recruitment: 1. Direct Method:These include sending traveling recruits to educational and professional institutions, employees contacts with public, and manned exhibits. 2. Indirect Method: This method involves mostly advertising in newspaper, on the radio, in trade and professional journals, technical magazines and brochures.

3. Third Party Method:

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These include the use of commercial or private employment agencies, state agencies placement officers of schools and professional associations, recruiting firms, management insulting firms, indoctrination seminars for college professors, and friends and relatives.

In Cadila Pharmaceuticals Limited, Recruitment process for the office staff is different from the workers for the staff members, this company use indirect method for recruitment which means advertise in news paper for its requirements regarding office staff. But recruitment to the workers, company use third party method which means workers are hired from internal sources of the company i.e. the relative and friends of the present employees etc.

Selection:After the recruitment process then selection process is started. Selection is a long process, commencing, from the preliminary interview of the applicants and ending with the contact of employment. Selection is the process hiring the best candidate from the pool of applications. It refers to the process of offering jobs to one or more candidate from the applications received through recruitment. In Cadila Pharmaceuticals Ltd. Manager holds the interview himself, for the selection of the right candidate. The main stress is given to the experience of the applicant. If any staff member fits the required category he is selected and then he joins as an apprentice for three months and if successful he is finally joins the company. And the company hires any worker only if he has experience in the same department or if he has technical knowledge of it.

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Induction is welcoming a new employee to the organization. The purpose of introduction is to educate the employee and provide orientation on the process, rules and regulations, products, etc. In Cadila Pharmaceuticals Ltd. when employee is recruited he is given few days to view the unit and prepare the note of the work once the employee is selected, he is given general information about companys rules and regulations, time-keeping system, products and also introduced with organization staff and given all the details about his job. Then selection procedure is completely over.

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Training & Development refers to the imparting of specific skills, abilities and knowledge to an employee. Training & Development provide a necessary knowledge and skills to perform his job effectively. Many a times, organization also provides to old employees to adjust in a changed situation.

Training:Training is a process that tries to improve skills, or add to the existing level of knowledge so that the employee is better equipped to do his present job, or to mould him to be fit for a higher job involving higher responsibility.


The term development implies overall development in a person it not only means improvement in job performance, but also improvement in knowledge, personality, attitude, behaviorism of an executive. Training is of two types, (1) On the Job. (2) Off the job

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The Cadila Pharmaceuticals Limited uses following training methods 1. On-the-Job Methods Orientation training Job-instruction training Apprentice training Internship and assistantship Job rotation Coaching

2. Off-the-Job Methods Vestibule Lecture Special study Films Television Conference or discussion Case study Simulation Programmed instruction Laboratory training

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A job description will set out how a particular employee will fit into the organization. It will therefore need to set out: the title of the job to whom the employee is responsible for whom the employee is responsible
A simple description of the role and duties of the employee within the


A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and responsibility within the organization. In Cadila Pharmaceuticals Limited, they are having positive attitude towards job description. Thus, company has defined very good job for the management. In this company job description is the statement containing items such as job title, location, job summary, duties, tools and equipments, supervision given or receives, working conditions etc. It consist of the details such as job title, department in which the employee has to work, immediate level subordinates, objective of the job, principle duties and responsibilities, authority limits etc.

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Promotion:Promotion is a vertical movement of an employee within the organization. In other words promotion refers to the upward movement of an employee from one job to another higher one, with increase in salary, status and responsibilities. Promotion may be temporary or permanent, depending upon the needs of the organization. Promotion policy: It must provide equal opportunity for promotion across the job, departments, and regions. It must be applied uniformly to all employees irrespective of their background. It must be fair and impartial. The basis of promotion must be clearly specified and made known to the employees. It must be correlated with career planning. Both quick and delayed promotions must e avoided as these ultimately adversely affect the organizational effectiveness. Appropriate authority must be entrusted with the task of making final decision. Promotion must be made in trail basis. The progress of the employee must be monitored. In case, the promoted employee does not make the required
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progress, provision must be therein the promotion policy to revert him/her to the former post. The policy must be good blending of promotions made from both inside and outside the organization.

In Cadila Pharmaceuticals Limited, promotion is given according to its ability of the worker. When personal manager study employees & he has to see that person is able to work in other plant & other organization. He is able to bear the other responsibilities. In Cadila Pharmaceuticals Limited promotion is given on performance behaviors, seniority, works honesty, ability etc.

Transfer:A transfer refers to lateral movement of employee within the same grade, from one job to another. In other words transfer means change in the job (accompanied by a change in the place of the job) of an employee without a change in responsibilities or remuneration.

Transfer policy: Specify the circumstances under which transfers will be made. These should be in writing and should be communicated to the employees. Eg: defence personnel and government employees are subjected to transfer once in three years. The employees in these organizations know when they are due for a transfer and are prepared for it. Specify the basis for transfer i.e., whether transfer will be made on the basis of seniority or skill and competency or on any other basis.

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Decide the authority which would handle transfers. Intimate the fact of transfer to the person concerned well in advance. Specify the jobs to which transfers will be made and duties and salary on assumption of new jobs should also be clarified. Indicate whether transfers can be made within a department or between departments or between units. Clarify whether transfer is permanent or temporary. Not to be made frequent and not for the sake of transfer only. In Cadila Pharmaceuticals Limited, the company can transfer any employee from any place for better performance. This is also when adjustments are to be done regarding the running of some equipment or to adjust the employees. While transferring employees the company has never change anything of employees regarding job. Thus, the company has not felt so much need to transfer its employees, because all of them are performing their job efficiently. However they give proper attention on it.


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It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.

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Objectives of Performance appraisal: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. He to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. In Cadila Pharmaceuticals Limited, there is also performance appraisal system and even they make a confidential report. This register is given to all the managers & then they decide what kinds of steps are to be taken. Mainly there are 3 types of performance appraisal report in this unit: Good performance Steady performance Low performance

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Wage and salary of an employee can be determined according to their work and their category. It is determined according to his grade filling under different categories. Wages represent hourly rates of pay, salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salary are subject to annual increments. They differ from employee to employee and depend upon the nature of job, seniority, merit. Wage and salary is the compensation to the employee for their daily work. The basic purpose of wage and salary is to establish and maintain an equitable wage and salary structure. Wage and salary should be internally equitable and externally competitive and should pay individually on the basis of their skill and performance. Salary is the main motivator for a worker. So it is very necessary to continuously administer the salary and motives the workers. Cadila Pharmaceuticals Limited is very generous paying wages or salaries to its worker and employees. Wages are paid to employees working in manufacturing department while salaries are paid to the office and management staff. The company also maintains monthly records.

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The salary is basically dependent on, Nature of work It differs work to work , for example a packing are given less salary as supervisor and department heads are given compared to production department worker. Position Salary differs from position to position but worker are given daily where as the supervisor and department heads are given on monthly basis.
Incentives for good performance

Company many times gives special incentives to its employees for good performance to motivate them for continuous better work. They believe that, wage or salary, which satisfies the employees, is an important factor to motivate the worker and increase their efficiency.

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Employee state insurance scheme (E.S.I.) covers all workers wages excluding remuneration for overtimes. Works does not exceed Rs. 3,000 month & who is employed in a factory having 20 or more employees. It may differ this scheme provides security while workers are on the service.

Since the worker are in continues contact of machines it is necessary under act to provide a compulsory insurance. All the workers in this unit are insured. Even under accident. Insurance that is under factory act. In this unit employees insurance scheme fund is directly deducted from the salary of the workers as per rules the regulation of the government 1948. The employee contributes 4% of wage bill and employee contributes 1.5% of salary.

Benefits of scheme-Medical benefits: Sickness benefits Maternity benefits Disable benefits Dependants benefits

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In Cadila Pharmaceuticals Limited, Employees State Insurance Scheme is working properly. All the permanent employees come under this scheme and they are insured according to the government rule and regulation. The employees are entitled to medical facilities for self and dependants. They are also entitled to cash benefits in the event of specified contingencies resulting in loss of wages or earning capacity. The insured women are entitled to maternity benefit for confinement. Where death of an insured employee occurs due to employment injury, the dependants are entitled to family pension. The scheme also provides Rehabilitation allowance and Vocational Rehabilitation.

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As per the government rule, every organization which have more than 20 employees, have to pay provident fund to its employee. The minimum rate of provident fund is 8.33% this Rate is as per rule of government regarding the provident fund. Cadila Pharmaceuticals Limited provides the provident fund .In providing the PF some amount from the employee salary is deducted and some are added into the company.

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Grievance:Complaints affecting one or more individual workers in respect of their wage payments, overtime, leave, transfer, promotions seniority, work assignment and discharge would constitute grievance. Where the points at dispute are of dispute is of general applicability or considerable magnitude, they will fall outside the scope of this procedure. Grievance handling procedure: Time action: the first and foremost requisite in grievance handling is to settle them

immediately as and when they arise. Or say, grievances need to be nipped in the bud. Sooner the grievance is settled, lesser will be its effects on employees performance. This requires the first line supervisors be trained in recognizing and handling a grievance properly and promptly.
Accepting the grievance: the supervision should try to recognize and accept the

employee grievance as when it is expressed. It must be noted that acceptance does not necessarily mean agreeing with grievance, it simply shows the willingness of the supervisor to look into the complaint objectively and dispassionately to deal with the grievance. Evidences suggest that more the supervisor shows his on her concern for the employees, lesser is the number of grievance raised by the employee.
Identifying the problem: as stated earlier, the grievance expressed by the

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

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supervisor therefore needs to identify or diagnose the problem stated by the employee
Collecting the facts: once the problem is real problem, the supervisor should

collect all relevant facts and proofs relating to the grievance. The facts so collected need to be separated from the opinions and feeling to avoid distortions facts. It is useful to maintain the facts for future uses as and when required.
Analyzing the cause of the grievance: having collected all the facts and figures

relating to the grievance, the next step involved in the grievance procedure is to establish and analyze the cause that led to grievance.
Taking decision: in order to take best decision to handle the grievance, alternative

courses of action should worked out. These are, then, evaluated in the view of consequences on the aggrieved employee, the union and the management. Finally the decision should be taken which is best suited to the given situation in the organization.
Implementing the decision: the decision whatsoever taken must be immediately

communicated to the employee and competent authority. The decision thus reviewed to know whether the grievance has been resolved or not. In Cadila Pharmaceuticals Limited, when problem arise it is solved by top executive. He calls a meeting and discusses with managers and executives and then takes proper decision regarding the problem.

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Trade union:-

Trade union means a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives. All organizations of employees including those of salaried and professional workers as well as those manual wage earners which are known to include among their functions that of negotiating with their employers with object of regulating conditions of employment.

Workers join trade union for: Job security Wages and benefits Working conditions Fair and just supervision Powerlessness Need to belong

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Types of trade union:

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

employees in the manufacturing industries. The industrial union also referred to vertical union
Trade union: it is also called craft union, is an association of workers cutting

across many companies and industries.

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

composed of white collar or professional employees, such as teachers, police officers, administrative, technical, and health care employees. (FEDCUTA) federal of central universities teachers association is such an example. In Cadila Pharmaceuticals Limited, trade union is running successfully.

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Personnel records preserve evidence for future reference. This records provide detail information about the employees when the need of its arise. Personnel records are important at the time of paying salary, promotion, demotion, transfer, selection, etc.

Cadila Pharmaceuticals Limited maintains following records of their employees. The firm has developed the computer system for keeping all these data. Name and Address of the employees Telephone Nos Age of the employees Education and Qualifications Family record Attendance Past performance Experience of the employee Service in any other unit before joining this company Reasons for joining to the firm Interview report Other important matters

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Human resource management is very important part of management in every company or firm. It deals with the human factors in industries & key rules in achieving the co-operate goals. In this company the management of the human resource is manage in a decent way by the manager of human resource. The recruitment procedure, selection procedure & training procedure is arranged in such a manner that the unit does not get disturb during all these 3 procedure. After training is given the description of job is given to the particular employee, promotion is given on the bases of work done by the employee. The other system of provident fund scheme & E.S.I. scheme is managed in such a way that it is beneficial to the employee. In this unit there are no unions, which is also a good part for the unit in managing the company.

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