A STUDY ON EMPLOYEE SATISFACTION WITH REFERENCE TO

NATCO PHARMA LIMITED

A Project report submitted to Andhra University, Visakhapatnam in the partial fulfillment for the award of the degree of

MASTER OF HUMAN RESOURCE MANAGEMENT BY SASI PRABHA YADAV

Under the guidance of Dr. G. RAGHAVAIAH (H.O.D)

M.H.R.M Department COLLEGE OF MANAGEMENT STUDIES Gandhi Institute of Technology and Management VISAKHAPATNAM-530045 2007-2009

DECLARATION
I here by declare that this work entitled A STUDT ON EMPLOYEE SATISFACTION with reference to NATCO PHARMA LIMITED is submitted to college of management studies , GITAM,

VISAKHAPATNAM is my own work and that matter of analysis and opinions are entirely my responsibility and has not been submitted for any degree or diploma to any institute or university.

Place: Visakhapatnam Date:

SASI PRABHA

ACKNOWLEDGEMENT

I express my deep gratitude to Sri. A. Lakhsminarayana, General manager- HR of NATCO Pharma Ltd. Who has given me this great opportunity to work on this project. I express my deep gratitude to Mr. P. Srinivas Rao Asst. manager-HR, B. Krishna Prasad, Sr. Executive, S.Anupama, G.Vijaya Chamundeswari, V.Surekha and K.Vikram Reddy for giving their great suggestions to accomplish my project in this company. I wish to express my gratitude to Prof. Siva Rama Krishna, Principal of College Of Management Studies, GITAM for giving an opportunity to work on this project. I am indebted to Dr. G. Raghavaiah, H.O.D , M.H.R.M Dept, College Of Management Studies, GITAM, who guided me in each and every step of my project with continuous feedback and insight dedicating her precious time from his busy schedule, without which my project would not have been possible. I would like to thank all my teachers, Department of Master of Human Resource Management for their support extended by them during the stay in the College Of Management Studies.

INDEX
CHAPTER 1
Human Resource Management Performance Appraisal Employee Job Satisfaction

CHAPTER 2
Industry profile Company profile

CHAPTER 3
Need for the study Objectives of the study Scope of the study Data analysis Methodology and Sampling Research Methodology Limitations.

CHAPTER 4
Findings, Suggestions, Conclusion

CHAPTER 5
Employee job satisfaction Questionnaire

BIBLIOGRAPHY

1.1 HUMAN RESOURCE MANAGEMENT 1.2 PERFORMANCE APPRAISAL 1.3 JOB SASTIFACTION

1.1 HUMAN RESOURCE MANAGEMENT MEANING:

Human resource management is management function involving procurement of suitable human resource, train and develop their competencies, motivate them, reward them effectively and create in them an urge to be a part of management team whose aim should be rendered, dedicate, committed service of the success and growth of the organization.

Human resource management refers as s set of programs, function and activities designed and carried out in order to maximize both employees as well as organizational effectiveness. It is the process of binding people and organization so that the objectives of each are achieved. HRM involves the application of management function and principles. The function and principles are applied to acquisitioning, developing, maintaining, and remunerating employees in the organization. Human resource management means employing people, developing their resources, utilizing, maintaining and compensating their service in tune with job and organizational requirement. HR is the most significant factors of production every human being is born with tremendous potential. HR refers to the knowledge, skills and beliefs of an organization workplace. Enhance their skills, abilities, and knowledge in accordance with the changing requirements of groups, organization and society in the essence of HRD.

DEFINITION:
According to FLIPPO

Human resource management is a process of

organizing, directing, planning and controlling of the procurement, development, compensating, integrating, maintenance and separation of human resources to the end of those individual organization, societal objectives are accomplished.

SCOPE OF HUMAN RESOURCE MANAGEMENT:

The scope of HRM is indeed vast. All major activities in the working life of a worker from the time of his (or) her entry into an organization until he (or) she leaves, come under the preview of HRM. Specifically the activities included are Hr planning Job analysis and design Recruitment and selection Orientation and placement Training and development Performance appraisal Job evaluation Employee and executive remuneration Motivation and communication

Welfare, safety & health Industrial relations and like For the sake of convenience, we can categorize all these functions into seven sections

1. 2. 3. 4. 5. 6. 7.

INTRODUCTION TO HRM EMPLOYEE HIRING EMPLOYEE AND EXECUTIVE REMUNERATION EMPLOYEE MOTIVATION EMPLOYEE MAINTENANCE IR & PROSPECTS OF HRM.

FEATURES OF HUMAN RESOURCE MANAGEMENT:

1. 2. 3. Human resource management is a part of management discipline. Human resource management is a process, just like management process. Human resource management is a continuous process and not a one-stop action. 4. Human resource management is concerned with people in the organization both present and potential. 5. Human resource management is directed towards achievement of organization objectives by providing tools and techniques for managing people in the organization effectively.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

To help the organization to attain its goals by providing well-trained and well-motivated employees. To utilize the human resource effectively in the achievement of organizational goals. To enhance job satisfaction and self-actualization of employees by encouraging and assisting every employee to realize his (or) her full potential. To establish and maintain productive, self-respecting and internally satisfying working relationship among all the members of the organization. To bring about maximum individual development of members of the organization by providing opportunities for training and advancement.

To maintain high employee morale and sound human relation by sustaining and improving various conditions and facilities.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT:

Principle of maximum individual development. Principle of scientific selection. Principle of high morale. Principle of dignity of labor. Principle of team spirit. Principle of effective communication. Principle of fair remuneration. Principle of effective utilization of human resource.

Principle of participation. Principle of contribution of national prosperity.

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT:

Human resources are the most precious assets of an organization. They are activators of non- human resource, means of competitive advantages and sources of creativity provided, they should be managed effectively. Human resource management thus has a great significance. The significance of human resource management can be discussed at four levelsOrganizational significance Professional significance Social and national significance

Organizational significance-: 1. Attracting and retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation,

compensation and promotion policies. 2. Developing the necessary skills and right attitudes among the employees through training & development and performance appraisal. 3. Securing willing co-operation of employees through motivation, participating, grievance handling etc., 4. Utilizing effectively the available human resource.

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5.

Ensuring the organization will have in future a team of competent and dedicated employees.

Professional significance-: 1. Developing people on continuous basis to meet the challenges of their jobs. 2. 3. Maintaining the dignity of personnel at work place. Providing proper physical and social environment at workplace to utilize the capabilities of the people effectively. 4. Providing environment and incentives for developing and utilizing creativity.

Social significance-: 1. Maintaining balance between jobs and job seekers in terms of job requirement and job seekers abilities and attitudes. 2. Providing most productive employment from which socio-psychological satisfaction can be derived. 3. Utilizing human capabilities effectively and matching reward for the contribution made by people. 4. Eliminating wasteful organization and individual practices.

National significance-: 1. 2. Increase in the size and complexity of organizations. Rapid technological development like automation and computerization
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3. 4. 5.

Rise of professional and knowledgeable workers. Increase in proportion of women in the workforce. Growth of powerful nation-wide trade unions.

1.2 PERFORMANCE APPRAISAL

Performance appraisal is an important part of the system of developing human resource and developing a culture of maturity and collaboration in an organization. It provides input for better management of salary and reward system. Effective functioning of performance appraisal system depends on a minimum level of trust and commitment to the development of employees union organizations. People differ in their abilities and attitudes. The difference are natural to a great extent and cannot be eliminated completely either by importing or trying and developing. There will be always some difference in quality and quantity of work done by different people. Therefore it is necessary for the management of an organization to know the difference so that they may be developed to accept the responsibilities and challenges associated with higher jobs. The individual employees may also like to know his capabilities in terms of his performance on the job qualitatively in comparison to his fellow employees. So that, he may improve upon his own.. His peers similarly change for better looking at his performance. Formal appraisal of individuals performance thus begin in CUE dynasty in china where an imperial rather than appraised the performance of member of the royal family, similar system was followed in many countries

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in 1883. The New York civil service also introduced a formal appraisal system. Employee appraisal techniques are set to have been used for the first time during the first world war, when at the instance of Walter dill Scott, the US army adopted the man rating system for evaluating military personal. Later, during 1920 to 1930 period merit rating programs which were used to give wage increments the basis of merit were accepted. The later phase of performance appraisal system to started in USA with only few organization, at present, large number of American companies adopted performance appraisal system to evaluate their employee performance. A formal performance appraisal system has been perceived to be equally important in Indian business industry. The system of performance appraisal varies in different countries. American companies use performance appraisal mainly to determine wage increase, promotions & transfers. There is a little emphasis o providing feed back to the employees and assessing the needs for their further training. Indian companies in contrast use performance appraisal for training & development, providing feed back to employees and also use it in determining wages, promotions and transfer etc as the American companies do.

360 DEGREES FEEDBACK- defined-:

The term 360 degrees feedback came from the analogy to a compass. A circle with 360 points of reference to determine and monitor direction. 360 degrees feedback provides performance data from multiple point of reference not just one. Like a compass, it is a navigational tool that

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more accurately let us know when we are on (or) off course. It can fill the gaps that invariably exist between how you see yourself and how others see you. Its purpose is first is to gain deep inside into how others and we see our performance and second to reinforce and accelerate the need for continuous development. Compared to traditional, single source feedback process, 360 degrees feedback is significantly more powerful, reliable and accurate. The added dimension of 360 degrees is its ability to compile multiple assessment from co-workers and contrast that data with own self-perceptions. Because, it come from a border base of perceptions and interaction, it is less likely to be biased or skewed by one persons opinion. Traditional feedback relies heavily on only one source- THE BOSS. In most cases people interact much more frequently with co-workers than with their boss. People also tend to interact differently with their boss. Bosses do not see as much of us or our everyday work as do co-workers and customers. Consequently, feedback from the boss, while valid is not fully representative of persons effectiveness in the work place. It can be one sided and fair or even vindictive, as many people know from experience 360 degrees feedback levels the plain field by soliciting inputs from a variety of sources.

The boss, peers, co-workers, people, sub-ordinates and even customers. The feedback tends to not only be more balanced, but also harder to dismiss due to its broader range of input as one user of 360 degrees said everybody cannot be ought to get me.

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FEEDBACK ANSWER THREE BASIC QUESTIONS:

Why should I improve my performance? What do I need to improve? How can I improve?

APPLICATION OF 360 DEGREES FEEDBACK:

Solid 360-degree feedback provides hard, actionable data on performance. Those assessed can get their band around it, do something with it, and since it comes from people of their own choosing, it is not easy to dismiss the outcomes. Assessor quite often feel obligated to take the feedback seriously even though they may wish to avoid it. Here is several application of 360 degrees process-:

Personal development360 degrees feedback can be used to help employees master the skill needed in their present job or prepare for a new one. It can also be used to gain the attention of those unwilling to listeners to verbal feedback. Personalized and graphically displayed 360 degrees feedback has a striking effect on people attention. Once digested, the information in the feedback report is next used to generate a personal improvement plan based on which skill are most important and in need of development .A good 360 degrees instrument will provide specific, actionable feedback, along with guided, database development.
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LeaderManagers find 360 degrees feedback particularly valuable. To be successful, they need to know several things: 1). Are they demonstrating competence in the skills needed to achieve the results for which they are held accountable. 2). Are they using an approach or style with their teams that facilitates rather than obstructs the achievement of others, and 3). Do they have the necessary competencies to navigate the uncertain water of continuous change. Middle managers are often targets of re-structuring and down- sizing. For them, survival is dependent on their ability to continually add value to the organization. 360 degrees feedback provides a means of measuring and making sure their contributions are valued. When framed properly in a workshop a comparative feedback from self and other sparks a hunger for on-going improvement.one can recall many managers whose having received their feedback and created personal development plans, returned 6 to 9 months later to reassess their performance. They were eager to get more feedback from their teams to see how much they have improved. If there is one thing that is predictable, its that people love to hear what others have to say about them, though it may not always be favorable.

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Team development360 degrees feedback can also be used to stimulate team development. Most users of 360 degrees instrument ask co-workers or team members to provide them feedback. This usually piques the co-workers curiosity. When the assessee shares their results and requests support from the assessors the team members interest is aroused even more. The next comment often heard in the team after such a discussion is, we all ought to do this. Its not far from this point to the question, how are we doing as a team?

Change360 degrees feedback can be used to accelerate organizational change and transformation. It can be used cross departments (or) divisions as a way of spot lighting the need for change and hastening the organizational shift. I have seen major organizations put thousands of employees at all levels through 360 degrees feedback programs designed to reduce horizontal boundaries, and increase accountability and strategic thinking. Its been used to help sweep out the old cob webs and bring in fresh air to thinking processes. 360 degrees feedback is used to transform cultures by providing hard data on what policies, practices and procedures support high performance and which dont. It is often wake up call for people or groups. Some instruments even measure readiness for (or) resistance to change. Framed within a discussion of customer responsiveness, for example this can be a real eye opener.

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Self directed teams360 degrees feedback strengthens accountability and

self-management. Since self-directed teams are a known traditional structures, they can use a 360 degrees process to provide objective and reliable performance feedback for themselves individually and collectively. When a person receives high quality, reliable feedback and co-workers it highlights reinforces the connection between individual performance and team results. Through a process of self-assessment, teams can identify their developmental needs and provides their own direction for improving the level and quality of their performance. They can also include customers as part of their assessor base for added feedback dimensions.

Learning organizationsThe knowledge of both individual and organization is a

key success factor. In the climate of continuous change, 360 feedback becomes, as invaluable tool to not only stay current, but also to continually grow the cutting age of the skills needed to thrive. Perhaps more than any other tool, 360-degree feedback promotes continuous learning and growth because it is designed and intended for repetition.

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IMPLEMENTING 360 DEGREE FEEDBACK: Because it grabs peoples attention so well, 360 degrees feedback can become part of the new foundations for increased organizational performance. But, its not pixie dust that you just spread around. Like most things that increase results it requires thoughtfulness in its applications. Here are a number of dos and donts that have proven valuable in utilizing 360degrees feedback over the years

What is 360 degree feed back?

360-degree feedback is defined as the systematic collection and feed back of performance data on an individual or group derived from a number of stake holders in a performance.

Uses of 360 degree Performance appraisal System:

Supervisor Accurate assessment -Favoritism Anonymous, unbiased and accurate info Provides greater objectivity.

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Organized training and development:

Things are told before hand distribution and processing takes place in advance Helps understand the needs better and in more detail

Team building:
Assess each other on skills such as communicating, deliver on promises, planning, listening , maintain relationship The approach promotes individual development within teams. Feedback can be gathered before any team event happens

Performance management:
Reduces anxieties making it a less special event

Validation of training and other initiatives:

To identify the performance improvement needs Many organizations have not yet used this to judge the success of an individual, team or organization

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Used for appraisal:

Focus on current performance Individual managers and the latter Past performances

REMUNERATION:
Step 1:-THE QUESTIONNAIRE:

Leadership Communication Decision making Expertise Team leader Organizational skills Adaptability Vision

Step 2:- RATINGS:

1-2 : least skilled 3-4 : not a strength 5-6 : appropriate skill 7-8 : a strength skill 9-10 : an exceptional skill

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step 3 : DATA PROCESSING:

Internal: use of software External: suppliers

Step 4: FEEDBACK:

Individual Manager Anonymous Culture plays a role

Step 5 : ACTION:

Action will depend on the purpose Development- individuals Appraisal- managers Pay- HR.

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ADVANTAGES OF 360 DEGREES FEEDBACK:

These are the following advantages Affording a broader perspective than before Increased awareness and relevance Reliable feedback to senior managers Gaining acceptance Encouraging open feedback Reinforcing Rounded view of performance Identifying key development areas Raising self awareness Continuous improvement Improve morale Acceptance of results.

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DISADVANTAGES OF 360 DEGREES FEEDBACK: No openness Excessive stress Lack of action Over dependence Too much of bureaucracy Incapability and lack of skill managers

STEPS OF PEOPLE PERFORMANCE MANAGEMENT:

Step 1 : Gathering feedback Step 2 : Self- assessment Step 3 : Preparation by the manager Step 4: Performance ratings Step 5 : Discussion and development of a performance plan

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1.1 JOB SATISFACTION

Job satisfaction describes how content an individual is with his (or) her job. It is a relatively recent term since in previous centuries the jobs available to a particular person were often pre-determined by the occupation of that persons parent. There are a variety of factors that can influence a persons level of job satisfaction: some of these factors includesthe level of pay and benefits, the perceived fairness of promotion systems within the company, the quality of working condition, leadership and social relationship and job itself. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance methods, which includes job rotation, job enlargement and job enrichment. Other influences on satisfaction includes the management style and culture, employees involvement empowerment, and autonomous work groups. Job satisfaction is a very important attribute, which is frequently measured by organization. The most common way of measurement is the use of rating scale where employees report their reaction towards their jobs. Questions related to rate of pay work, responsibility variety of tasks, promotional opportunities, the work itself and co-workers.

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DEFINITION
Job satisfaction has been defined as pleasurable emotional state resulting from the appraisal of ones job, an effective reaction and attitude towards ones job. WEISS (2002) has argued that job satisfaction is an attitude and also points out that the researcher should clearly distinguish the object of cognitive evaluation which effects emotions, beliefs and behavior. This definition suggests that we form attitude towards our job by taking into account our feeling, our beliefs and our behavior.

REVIEW OF LITERATURE
HARVARD BUSINESS SCHOOL, to find the affects on various conditions did one of the biggest studies on job satisfaction. These studies ultimately showed that a novel change in work condition temporarily increases productivity (called Hawthorne effect). It was later found that this increase resulted not from new conditions but from the knowledge of being observed. These findings provided strong evidence that people work for a purpose rather than pay, which paved the way for researcher to investigate other factors in job satisfaction.

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MODELS OF JOB SATISFACTION

AFFECT THEORY Edwin A Lockes range of effect theory (1976) is arguably the most famous job satisfaction model.the main premise of this theory is that satisfaction is determined by discrepancy between what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work moderates, how satisfied/dissatisfied one becomes when expectation are/arent met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compare to one who does not value that facet.

DISPOSITIONAL THEORY Another well-known job satisfaction theory is the dispositional theory. It is a very general theory, which suggests that people have innate disposition that causes them to have tendencies toward a certain level of satisfaction, regardless of ones job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers in job. Research also indicates that identical twins have similar level of job satisfaction. Dispositional theory was the core self-evaluation model, proposed by TIMOTHY A JUDGE in 1998. Judge argued that there are four core self- evaluation that determines ones disposition towards job satisfaction:- Self esteem and general self-efficacy leads to higher work satisfaction.

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TWO-FACTOR THEORY FREDRICK HERZBERGs two factor theory also know as (motivation-hygienic theory) attempts to explain satisfaction and

dissatisfaction are driven by different factors i.e., motivation and hygienic factors respectively. Motivating factors are those aspects of jobs that makes people want to perform and provide people with satisfaction. For example, achievement in work, recognition, promotion and opportunities. These motivating factors are considered to be intrinsic to the jobs and work carried out. Hygienic factors include aspects of working environment such as supervisory practices, companys policies and working conditions. While HERZBERGs model has stimulated much research, researchers have been unable to reliably empirically prove the model, with HACKMAN & OLDHAM suggesting that HERZBERGs original formulation of the model may have been methodologically artifact. Further more the theory does not consider individual differences, conversely predicting all employees will react in an identical manner to the changes in motivating/hygienic factors. Finally the model has been criticized that it does not specify how motivating/hygienic factors are to be measured.

JOB CHARACTERISTIC MODEL HACKMAN & OLDHAM proposed the job characteristic model, which is widely used as a frame work to study how particular the job characteristics impacts on job outcomes including job satisfaction. The model states that there are five-core job characteristics1. skill variety 2. task identity
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3. task significance 4. autonomy 5. feedback Which has impact on three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes and knowledge of actual results) in turn influencing work outcomes, job satisfaction, absenteeism and work motivation. The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employees attitude and behavior.

MEASURING JOB SATISFACTION

There are many methods for measuring job satisfaction. By far the most common method for collecting data regarding job satisfaction is the LIKERT SCALE. Other less common method of measuring job satisfaction includes: Yes/no questions, true/false questions, point system, check lists and forced choice answer.

THE JOB DESCRIPTIVE INDEX (JDI) Created by SMITH, KENDALL & HULIN (1969) is a specific questionnaire of job satisfaction that has been widely used. It measures ones satisfaction in five facets1. pay 2. promotion and promotion opportunities 3. co-workers 4. supervision
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5. work itself The scale is simple, participants answer either yes or no (or) cannot be determined. In response to whether given statements accurately describes ones job.

THE JOB IN GENERAL INDEX It is an overall measurement of job satisfaction. It is an improvement to job descriptive index because the JDI focuses too much on individual facets and not enough on work satisfaction in general. Other job satisfaction questionnaires includes1. MINNESOTA SATISFACTION QUESTIONNAIRE (MSQ) The MSQ measure jobs satisfaction in 20 facets and has a long form with 100 questions (5 items for each facet) and short form with 20 questions (1 item for each facet). 2. JOB SATISFACTION SURVEY (JSS) It is a 36-item questionnaire that measures 9 facets of job satisfaction. 3. FACES SCALE OF JOB SATISFACTION. It is one of the first scales used widely to measure overall job satisfaction with just one item which participants response to by choosing a face.

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VARIABLES AND MEASURES

The overall job satisfaction level of faculty members measured with the help of five dimensions namely job, supervisors, co-workers, pay and promotion. Information regarding faculty members age, education, job level, foreign qualification, number of years in the organization and other sources of income, marital status, sex should also be obtained.

RELATIONSHIP AND PRACTICAL IMPLICATIONS

Job satisfaction is an important indicator of how employees feel about their jobs and a producer of work behavior such as organizational citizenship, absenteeism and turnover. One common research finding is that job satisfaction is correlated with life satisfaction. Meaning people who are satisfied with life tends to be satisfied with their job and people who are satisfied with job tends to be satisfied with their life. However some researcher has found that job satisfaction is not significantly related to life satisfaction whereas other variables such as non-work satisfaction and core self-evaluation are taken into account.

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JOB SATISFACTION AND MORALE

Job satisfaction and morale means to every one of us. Most of the people dread work and are generally unhappy by the thought of going to work. The term job satisfaction refers to an employees general attitude towards his job. LOCKE defines jib satisfaction as a pleasurable or positive emotional sate resulting from the appraisal of ones job or job experiences. There is a saying, which goes like there is no future in any job, the future lies in the hands of that person who holds the job. Nowadays experts in the field of HR assert that it is the performance of the employees to give satisfaction. Good performance leads to reward, which in turn leads to satisfaction. An employee can perform well in his place of work only when he comes to work with a favorable attitude. But if one asks what determines a favorable attitude? A favorable attitude is determined by the degree to which the job fulfills the individuals personal needs and is consistent with his expectations and values. A favorable attitude is also determined by the degree to which the job is rich in its content. A favorable attitude is further determined by the degree to which the job needs the approval of the individual reference group. In other words, attitude of employees determines the performance and it is the performance, which causes satisfaction. Good performance gives the individual the feeling of having accomplished something worthwhile, this in turn leads to satisfaction. The satisfaction of
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employees further increases if the individual concern also receives recognition, status, power, authority, responsibility, promotion, hike in salary etc.., According to ABRAHAM A.KORMAN there are two types of variable that determines job satisfaction of an individual.

ORGANIZATIONAL VARIABLES

Occupational level: The higher the level of the job the greater the satisfaction of the individual. This is because higher level jobs carry greater prestige and self-confidence.

Job content: Greater the variation in job content and less the repetitiveness with which the task must be performed, the greater the satisfaction of individual involved.

Considerate leadership: People like to be treated with consideration. Hence, considerate leadership results in higher job satisfaction.

Pay and promotional opportunities: All other things being equal to these two variables is positively related to job satisfaction.

interaction in the work group: Interaction is most satisfying when 1. It results in the cognition that other persons attitudes are similar to ones own, since this permits the ready calculability of others behavior and constitutes validation of onselfs. 2. It results in being accepted by others. 3. It facilitates the achievement of goals.

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PERSONAL VARIABLES

Age: Most of the evidence on the relation between age and job satisfaction, holding such factors as occupational level constant, seems to indicate that there is generally a positive relationship between the two variables upto the pre- retirement years and then there is a sharp decrease in satisfaction.

Educational level: With occupational level held constant there is a negative relationship between the educational level & job satisfaction. The higher education the higher the reference group which is individual looks to for guidance to evaluate his job rewards.

Sex: There is as yet no consistent evidence as to whether women are more satisfied with their jobs than men, holding such factors as job and occupational level constant. One might predict this to be the case considering the generally lower occupational aspiration of women. There have been a number of studies

undertaken by well-known authors on the determinants of job satisfaction. Some of them are as follows-

1. GENERAL General working conditions Union management relations General quality of supervision Grievance handling procedures.

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2. FOR YOUNG GROUP Type of work Working conditions Pay Co-workers Ease of commuting to work Advancement opportunities

3. FOR OLDER GROUP Security Supervision Company prestige Working hours Recognition Autonomy Doing important work Fair evaluation of work done

Thus it is clear that although the above determinants as given above more or less ensures the substantial degree of job satisfaction. The level of satisfaction of employee varies from time to time, situation to situation, employee to employee, younger group to older group. In other words, the employer must see that the employees attach lot of pleasure instead of pain while carrying out their work and this will result in job satisfaction.

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2.1 INDUSTRY PROFILE 2.2 COMPANY PROFILE

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2.1 INDUSTRY PROFILE

The pharmaceutical industry is one of the most profitable industries in both the US & GREAT BRITAN. Gross profit margin of some of the leading pharmaceutical companies in recent years has been around 70 to 80 percent. The global drug market is controlled by corporate behemoths such as Pfizer, Bristol Myers Squibb, Bayers, Merck & co, Pharmacia, Novartis, Johnson & Johnson, Abbott Laboratories, American Home Products, Eli Lilly, Schering Plough, Glaxosmithkline and Allergen. Their market domination enables them to dictate drug prices. In past year, pharmaceutical prices have risen faster than the rate of inflation. The fact that there is a very little price elasticity associated with price increase is a major factor contributing to high profitability of small pharmaceutical industry. A patient will not change the demand for the products with a small change in price when there are no close (or) available substitutes. Actual manufacturing cost of medicines are relatively low. The big pharmaceutical companys profits can be even higher due to limited competition in pharmaceutical industry caused by strict patent laws (when a company owns a patent for a key drug, profits can mount up since the company faces no competition) and high barriers for small firms to enter the industry. In addition, through a recent and on-going waves of mergers and acquisitions with the big company intensify the process of consolidation. Also, more frequently strategic alliances are being formed with small bio- tech companies in order to reap the new economic benefits.

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The drug giants cannot keep track of all new development but wants to keep their pipelines full.

INDIAN OVERVIEW

PHARMACEUTICAL

INDUSTRY:

AN

The Indian Pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent. - RICHARD GERSTER

The Indian pharmaceutical industry today is in the front rank of Indias science based industry with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian pharma industry is estimated to be worth of $4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in terms of technology, quality and range of medicine manufactured. From simple headache pills to sophisticated anti-biotic and complex cardiac compounds, almost every type of medicines is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian pharma industry boasts of quality producers and many units approved by regulatory authority in U.S.A & U.K. international companies associated with this sector has stimulated, assisted and spearheaded this dynamic development in past 53 years and helped to put India on the pharmaceutical map of the world.

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The Indian pharmaceutical sectors are highly fragmented with more than 20000 registered units. It has expanded drastically in last two decades. The pharmaceutical industry in India meets around 70% of the counties demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are bout 250 large units and 8000 small-scale units which forms the core of pharmaceutical industry in India. They produce the complete range of pharmaceutical formulations i.e. medicines ready for consumption by patients and about 350 bulk drugs i.e. chemical having therapeutic value and used for production of pharmaceutical formulations. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant the pharmaceutical industries in India has low cost of production, low R&D cost, innovative scientific manpower, strength of national laboratories and increase in balance of trade. The pharmaceutical industry with its rich scientific talent and research capabilities, supported by Intellectual Property Protection Regime is well set to take on international market.

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ADVANTAGES OF INDIAN PHARMACEUTICALS:

1.COMPETENT WORKFORCE India has a pool of personnel with higher managerial and technical competence and also skilled workforce. It has an educated workforce and professional services.

2. COST EFFECTIVE CHEMICAL SYNTHESIS Its track record of development, particularly in the area of improved cost beneficial in chemical synthesis of various drug modules. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

4. LEGAL AND FINANCIAL FRAMEWORK India has a 53 years old democracy and hence has a solid legal framework and strong financial market. There is already an established international industry and business community.

5. INFORMATION TECHNOLOGY It has a good network of world class education institution and established strength in information technology.

6. GLOBALIZATION The country is committed to a free market economy and globalization. Above all it has 70 million middle class market, which is continuously growing.

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7. CONSOLIDATION For the first time in many years the international pharmaceutical industry is finding great opportunities in Indian. The process of consolidation, which has become a generalized phenomenon in the worlds pharmaceutical industry, which has started taking place in India.

THE GROWTH SCENARIO:

Indian pharmaceutical industry is growing at the rate of 14% per year. It is one of the largest and most advanced among the developing countries. Over 20,000 registered pharmaceutical manufacturers exist in the country. Domestic pharmaceutical of year 2002, which accounts for merely 1.3% of the global pharmaceutical sector.

STEPS TO STRENGTHEN THE INDUSTRY: Indian companies need to attain the right product mix for sustained future growth. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005, Indian companies in an afford to consolidate their position will have to increasingly look at mergers and acquisitions option of either companies or products. This would help them to offset loss of new product option, improve their R&D effort and improve distribution to penetrate market. Research and development has always taken the back seat amongst Indian pharmaceuticals companies in order to stay competitive in the future, Indian companies will have to re-focus and invest heavy in R&D.

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The Indian pharmaceutical industry also needs to take advantage of recent advances in biotechnology and information technology. The future of the industry may be determined by how well it markets its products to several region and distribute risk, its forward and backward integration, its R&D, its consolidation, co-marketing and licensing agreement.

PHARMACEUTICAL TOWARDS:

RESEARCH

IS

GEARED

1.ACTION: Identifying the root cause of the problem, in searching the effective strategies.

2. CORPORATE POWER: Corporate power projects give an overview of why corporate behaves as they do and why they need to be opposed.

3.FOOD AND AGRICULTURE: Corporation has consolidated the control of food production.

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2.1 COMPANY PROFILE

NATCO pharma limited is an enterprise molded by global aspirations. This has always demanded a preparedness and long term organizational vision that can encompass the turbulence and paradoxes of shifting terms and terrains of business.

BACKGROUND

BEGINNING Mr. V.C Nannapaneni promoted NATCO pharma in the year 1981 as a private limited company to be in the business of research and development, manufacturing and marketing of pharmaceutical substance and finished dosage form for Indian and international markets. NATCO pharma began operations in 1984 in Andhra Pradesh, India.

FIRST SUCCESS In the year of its operation it achieved a sales figure of RS 0.5 million. The companys first product was CARDICAP, which is an antianginal drug. Since then the company has introduced many dosage form into the market. By 1985 it has dosage form in CARDIOVASCULAR, ANTICOLD, ANTI-ASTHMATIC & ANTIBIOTIC segments. NATCO has the credit of having pioneered in TIME RELEASE TECHNOOGY in India.

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THE JOURNEY NATCO pharma was ranked 82nd in sales among Indian pharmaceutical companies in 1994. NATCO also has the credit of being one of the largest contract manufacturers in India. Some of the well-known companies like RANBAXY, Dr. REDDY LABOBORATORIES, JOHN WYETH etc get their product manufactured by NATCO. The NATCO pharma grew in size with the mergers of the following three companies NATCO PARENTERALS LIMITED DR. KARANTH PHARMA LABS PRIVATE LIMITED. NATCO LABORATORIES LTD.

TODAY NATCO pharma limited, which began its operation as a single unit with 20 employees, today it has four manufacturing facilities and employees around 2273 people. It has an online data for analysis and decision making. Consistently ranked among the fastest growing pharmaceutical companies in the country. NATCO is utilizing its collective experience to kick star its future plans as a global company. Respected for quality, performance, care, and responsibility and for creation and minimization of wealth for its shareholder. NATCO pharma limited, the post merger of organization represents a strategic stage in NATCO.

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VISION NATCO will be a global organization most respected for quality, services and social commitment in health care and area of business.

MISSION Indian pharmaceutical industry, with significant international presence. Today it is more innovative and active than ever across the entire spectrum in pharmaceuticals - from basic research, bulk actives & intermediates to finished dosage forms and clinical trials. In the emerging industry patterns of the twenty-first century, based on new technologies, NATCO recognizes that innovative product development has to be complemented with cost effective therapeutic solutions to address a better informed and a more demanding fraternity. To achieve this, the company has harnessed all its strengths compact productive teams, modern facilities. Its command over chemical technologies and economies of scale - into a synergistic organic entity, continuously creating and nurturing high quality products and technologies. NATCO believes that in the new order of symbiotic drug industry, it will emerge a powerful player with specialized skills to address encompassing opportunities in pharmaceuticals. Attracting industry leaders with the constancy of its purpose. NATCO's emergence from a major business re-engineering exercise further fuels its ambition to be among the select top leaders in the industry with the power to turn shared DREAMS into REALITY.

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QUALITY POLICY

The Quality policy of NATCO Pharma Limited is to manufacture and timely supply cost effective quality products to meet Customers ' expectations and to achieve CUSTOMER SATISFACTION through implementation of ISO 9001: 2000 QMS and WHO GMP on continual improvement basis.

FUNCTIONAL AREAS

MANUFACTURING FACILITIES Unsurpassed quality and manufacturing dependability FORMULATION PARENTERALS BULK DRUGS R&D NATCO pharma enjoys the patronage of many a number of renowned names in domestic and global pharmaceutical industry. Its quality conscious efforts and expertise in development and manufacture of pharmaceuticals have contributed significantly to its worldwide acceptance.

FORMULATIONS:

NATCO has pioneered the delayed acting timed-release dosage preparation in India, which remains the company's forte. Its world class pharma facilities at Kothur, India which is an ISO-9002 certified plant is capable of manufacturing formulations to International standards using this technology.
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Tablets, capsules, liquids, dry powder for suspensions, aerosols etc. are manufactured with utmost care and quality consciousness.

Time Cap Pharma Labs located at Kothur, India one of the group companies of NATCO manufactures specialty formulations exclusively for leading pharmaceutical companies of India. NATCO has modern facilities and very strong capabilities to manufacture comprehensive range of finished dosage forms including various oral solids, liquids, inhalers and parenterals with delayed, rapid and sustained acting, aerosols and transdermal mechanisms for drug delivery.

PARENTERALS: NATCO's parenteral manufacturing unit at Nagarjunasagar, India, which is a WHO-cGMP certified plant having ultra modern facility which follows Good Manufacturing Practices prescribed by the World Health Organization.It has one of the largest and most sophisticated manufacturing facilities for sterile products, large and small volume parenterals, and a whole range of formulations.

BULK DRUGS: NATCO's Bulk Drug facility at Sanathnagar, India amply supported by a world-class, state of the art, research lab, is capable of manufacturing in small quantities, a variety of bulk drug and intermediates, which comply to International standards. This facility is extremely efficient in handling complex reactions. The bulk drug facility at Mekaguda, India commenced commercial production in 1994.

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NATCO has built up a large infrastructure to undertake manufacturing in bulk actives and intermediates. With a combined capacity of 370 KL, from 75 stainless steel and 20 glass lined reactors, these facilities are well equipped with modern line up of instrumentation, utilities, clean rooms and environment management systems required to output finished products of a very high quality. An efficient and modern Quality Assurance system ensures compliance with the highest quality norms prevalent. This infrastructure has enabled NATCO emerge very strong, in areas of custom syntheses and process chemistry.

RESEARCH AND DEVELOPMENT: NATCO's R & D approach is consolidated into a centralized, multi-pronged R & D operation as its Research Center focusing on basic research, custom synthesis, new processes, natural products and effective dosage delivery systems. The R & D network is received as both an initiator as well as a facilitator of its knowledge management system, for which NATCO relies heavily on Electronic Data Management. If core competence is a bundle of integrated skills and technology, NATCO's central R & D exemplifies it. NATCO's approaches have successfully yielded new patentable technologies/processes, adapted new systems to deliver drugs more effectively and created viable business options to achieve its objectives.

INFRASTRUCTURE: 30, 000 Sq. ft of laboratory space. 30, 000 Sq. ft of space available for further expansion. 7 laboratories for Synthesis / Process Innovation.
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4 laboratories for Analytical Method Development & Analytical Instrumentation. A laboratory for Natural Actives & Biotech oriented research. All-Glass unit for Kilogram level scale-up studies. Centralized Library housing over 3000 books, journals & periodicals. Computer Database for on-line literature search & patent scan.

FACILITIES: Equipment for milligram to kilogram level synthesis Equipment for Semi-Commercial column-Chromatography Separate multi-kilogram level all-glass facility for scale-up studies and process consolidation. Centralized analytical development facility for analytical method development / validation studies.

R&D CAPABILITIES: Expertise in Heterocyclic Chemistry. Organometallic Reagents - Novel Applications and Handling on Commercial Scale. Metal Hydride Reagents - Novel Applications and Handling on UpScaling. Expertise in Catalytic Hydrogenation /Hydrogenolysis /

Dehydrogenation. Chral Chemistry - Asymmetric Synthesis and Asymmetric Induction. Optimization Expertise in optical resolutions and methods of Randomization of Chiral Waste.

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HUMAN RESOURCE: Group Leaders with DOCTORAL/POST-DOCTORAL qualifications trained to lead both innovative & process development chemistry. Core team Scientists of high caliber & with experience or exposure of current trends in PROCESS R & D. Separate up-scaling team with extensive Process plant & Engineering expertise. Analytical Integrated Method Development teams with wide experience in Chemical & Instrumental Methods of Analysis & Method Validation (CAPILLARY GC, CHIRAL HPLC, LCMS, and DSC). Dedicated impurity-profiling team for SYNTHESIS,

CHARACTERIZATION and Pooling of impurity samples.

NEW PROJECTS: Work on new project is progressing as per schedule. The cytotoxic production block being established by NATCO organics is expected to become operational in current fiscal year. The specialty peptide production block is also expected on stream in the current financial year. The focus in respect of APIs division lies in introducing niche products and capturing niche markets. These measures are expected to boost the realizations and provide good results.

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OPERATIONAL REVIEW & FUTURE OUTLOOK

FINISHED DOSAGE FORMULATION DIVISIONThe finished dosage formulation unit has turned out exceptionally good performance, basically driving by the oncology segment. The company continues to make in road into the segment and now starts as number one in terms of revenues, from amongst the Indian companies operating in the segment. Revenues from this segment have crossed RS 6 crores per month and are likely to grow further. During the year 2006-07 revenue from the oncology segment alone grew to rupees 56 crores from rupees 33 crores during 2006. Revenues from the formulation division grew to rupees 102 crores. The year 2007 witnessed the launch of number of products both in oncology and non-oncology segments. Some of the significant launches include BANDRONE (injection and tablets) and BORTENNTS & PAMNAT injections in the oncology segments and anorest tablets in non-oncology segments. The company has also launched TARANA, world class oral contraceptives for women, with fewer side effects. It is a combination of drospironene 3mg and ethinyl estradlol 0.03mg. it is first international brand.

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WESTERN MARKETS This company continues to pursue US &EUROPE markets in its quest for growth and in its pursuit of becoming a significant player in the global pharma. This company is making an effort to bring to the logical conclusion, its tie ups agreements for commercialization two ANDA injectible drug products in the anti-emetic and cancer therapeutic segments. Efforts to register the companys product in new and niche market are continuing. With the shifting of all major product lines to DEHRADUN, the KOTHUR facility would be dedicated exclusively for the products which are meant to be exported to the US &EUROPEAN markets and for contract manufacturing of high premium products. To achieve these objectives, the KOTHUR facility is being upgraded to include CYTO-TOXIC liquid, injectible facilities, soft capsule manufacturing facility and a pellet manufacturing facility. In addition, a formulations development and research laboratory is being established at NATCO research center, Sanathnagar to help the finished dosage pharmaceutical formulation division in

development of new drug delivery system and formulation. New filling facility is established at Nagarjunasagar

US MARKET APPROVALS The companys application abbreviated new drug application (ANDA) in respect of ondan setron tablet-an anti-emetic drug.

EXPANSION, GLOBALIZATION AND DIVERSIFICATION

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NATCO as a part of globalization plant, finalized an investment proposal for setting up the formulation unit in New Jersey, USA at an estimate cost of US $6 million. The exim bank of India is likely to fund team loan finance that is equivalent to US $ 4.80 millions and the company will invest the balance.

MAIN OBJECTIVES OF THE COMPANY To increase market shares from0.6% to 1.1% The goals of the future is to launch high technology, specialized products balanced by high technology and mass product in order to increase sales, market shares and returns. To carry the business out the business to deal with the finished drugs of pharmaceuticals bulk drugs, chemicals, fuel chemicals, ayurvedic and cosmetics to do all kinds of consultancy service in pharmaceuticals and carry on research labs. The company intends to extract maximum advantage from its R&D wing and from the collaborative research.

RETAIL BUSINESS With a view to find a suitable channel for the companys product in USA and in order to gain first hand knowledge about US market. It has found its appropriate market to enter retail space in USA through acquisition of drug stores. It owns and operates retail pharmacy store- called Nicks drugs in downtown New York, USA.

MARKETING
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For NATCO, marketing involves the challenges of giving care, concern and responsibility in a wider range. The demand of optimization in such a scenario have been met by NATCO through efficient online information network. NATCO is constantly upgrading its logistics from global perspectives to achieve this end.

Domestic Marketing 1. Domestic Generic and Branded formulation 2. Domestic bulk drugs 3. Contract manufacturing marketing networks

International Marketing NATCOS growing international presence currently focus on the consolidation and expansion of business in India and US. A multi pronged strategy including joint venture, acquisition, marketing alliances, manufacturing tie-ups, custom synthesis and other collaborative ventures are being pursued for long term growth. 1. Export generic formulation 2. Export bulk drug 3. Export horizon

MILESTONES OF NATCO PHARMA54

Incorporated - 1981 for manufacture of pharmaceutical formulations. First full year in Operations - 1984 - sales RS. 0.5 million. Pioneered Timed Release, a delayed acting sustained release technology. Achieved a rare feat of introducing the largest array of timed-release products based on zero order release concept of Micro dialysis Cell Technology. Started Parenteral Manufacturing facility at Nagarjunasagar, India 1986. Acquired Dr. Karanth Pharma Chemical Labs, a small bulk drug manufacturer, now known as Natco Research Center. Established bulk drug and Intermediate facility at Mekaguda, India. This facility is TGA approved, and certified for its environmental management systems (ISO-14001). (Today its a US-FDA approved plant). State of the art manufacturing facilities - cGMP, ISO 9002 certified dosage facility. A wide distribution network, Indian & international. Merged three of the group companies with the parent, Natco Pharma Limited - 1995. Granted US Patent for its manufacturing process of Omeprazole. Launched anti-cancer drug-Imatinib Mesylate 100-mg capsules under the brand name - VEENAT, Process developed in-house.

R&D ACHIEVEMENTS

55

1.Center recognized by Department of Science and Technology. 2.Developed Non-Infringing methods for a number of API's over the past four years. 3.Over 30 Patents are in various stages of filing, review and granting. 4.Evolved cost-effective manufacturing processes for a good number of intermediates which have been commercialized successfully. 5.An Award has been received for One such cost-effective process for a life saving Anti-Cancer drug in year 2003.

AWARDS RECIEVED Recently NATCO pharma bagged National Award for Research and anti Cancer from Board of Technology and Development for the year 2007 Best invention for inventing anti-cancer drug called IMATINIB MESYLATE AIIE. WORLD HEALTH ORGANIZATION certificate for current good manufacturing practices (cGMP). ISO : 9002 certification in the year 1994 ISO : 14000 certification in the year 2003 National award to small scale entrepreneur, 1998 instituted by Government of India, Ministry of Industries, Small industry development organization. All India Industrial exhibitions (AIIE) 1986 was awarded for best import substitution of new product. National Unity Award International Promotion Selection Award, 1988 for perfect control drug delivery system by Government of A.P

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COMMITMENTS NATCO TRUST:

NATCO Pharma limited, a large integrated pharmaceutical company, operating out of Hyderabad, Andhra Pradesh. The family also manages Natco Trust, which is a is a non-profit charitable organization. The promoters of NATCO Pharma directly supervise and monitor the activities of the Trust, with the active assistance and cooperation, - in cash and in kind from the generous members of the society from India as well as from abroad. Natco Trust focuses on development human beings from both rural and urban areas. The emphasis is on the well being of these human beings in terms of their health and education, resulting in socioeconomic and overall development of the downtrodden members of the society.

The activities of the Trust are so structured as to encourage optimal utilization of the locally available resources for sustainable and equitable development of people. The geographical areas that are concentrated upon are the places where the company's manufacturing facilities are located. In addition, certain backward areas are also selected at random. During the past several years, the Trust has been able to carry on its activities:

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a) Kothur Mandal, Mahaboobnagar District, b) Mahaboobnagar District c) Ponnur Mandal in Guntur District d) Nagarjuna Sagar Belt in Nalgonda District; e) Muthukur Mandal in Nellore District; and f) Siddipet Mandal in Medak District, all in the state of Andhra Pradesh. In addition, some work has also been done in certain slums in and around Hyderabad city. The following paragraphs would briefly describe the nature of activities of the Trust:

1. Health Awareness: The Trust is actively involved in government initiated Polio Awareness Campaign in the above districts. Has initiated a campaign for polio effected individuals by providing light weight FRO caliper for around 1250 individuals who can walk now The Trust has been actively engaged in rendering infrastructure support (by donating medical equipment and machinery) to reputed hospitals such as CARE, LV Prasad Eye Research Institute, Sir Ronald Ross Institute for Tropical Diseases and to Indo American Cancer Research Institute. The Trust is a regular supporter to patients suffering from cancer by donating cancer medicines manufactured by NATCO Pharma Limited.

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Every month the Trust supports surgery of a minimum of five children suffering from Cardiac problems by bearing the relevant cost at NIMS Hospital, Hyderabad Children below 15 years suffering from Leukemia are provided with medical support at M.N.J. Institute of Oncology, Hyderabad. Under the Governments Care and support program to HIV/AIDS patients, medical support is provided to the patients, while their children are provided with food at the Tuberculosis and Chest Diseases Hospital, Hyderabad.Identification of health disorders among the children in a phased manner in and around 150 Government schools at and around Hyderabad. Organization of Rural health awareness camps. A health center at Mekaguda Village at Kothur Mandal is organized on a monthly basis, covering 12 villages where Immunization, Antinatal Check up, Health Check ups are carried out. Around 1500 patients visit every month. The Trust is associated with the urban Health Center which coordinates health services in identified slums. Infrastructure support to the Government Chest Hospital by providing Flow Cytomenter which helps in investigation for HIV patients to tests their viral count

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2. Education Awareness: Under No to Child Labor program, the meritorious children are supported with scholarships to pursue education. The Trust runs a Childs Friendly Education center at one of the remote villages in Kothur Mandal at Mahaboob nagar District. It also runs an alternate school as a rehabilitation program for child labor. The Trust supports education of around 400 poor tribal children. Water Sanitation facilities were provided to around 20 government schools, to fulfil the basic requirements of children; The Trust also supports Government Social welfare Hostels in bettering the available infrastructure facilities.

The physical metamorphosis that has been brought about in the Villages where the Trust has been operating, such as roads, Electricity, Hospital facilities etc., is one of the proud and pioneering achievements of the mission in connecting villages to the nearest towns and to the city through a network system that initiated the development of the villages. The Trust is actively and closely associated with the Nizams Institute of Medical Sciences and has been carrying out various activities in collaboration with NIMS.

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PLANT LOCATION

Registered Office and Corporate Headquarters: NATCO PHARMA LIMITED NATCO HOUSE Road No.2, Banjara Hills Hyderabad-500 033

MANUFACTURING PLANTS:-

PHARMA DIVISIONNatco Pharma Limited Kothur Post, Kothur Mandal Mahaboobnagar District Andhra Pradesh-509 228 INDIA

CHEMICAL DIVISIONMEKAGUDA, Kothur Mandal Mahaboobnagar District Andhra Pradesh-509 228 INDIA

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PARENTERAL DIVISIONVijayapuri North, Nagarjuna Sagar Nalgonda District Andhra Pradesh-508 202 INDIA

CHEMICAL-R&D DIVISIONB-11, Industrial Estate Sanathnagar, Hyderabad Andhra Pradesh-500 018 INDIA

PHARMA DIVISIONPlot No. 19, Pharma City Selaqui Industrial Area Vikas Nagar Dehradun-248 001.

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BOARD OF DIRECTORS 1.Sri V.C.Nannpaneni Chairman and managing director

2.Sri G.S.Murthy 3. Dr. B.S. Balaji

- Director - Director

4.Smt Durga Devi Nannapaneni whole time director 5. Sri Rajeev Nannapaneni 6. Sri P.Bhaskara Narayana - Director & C.O.O - Director & Chief financial officer

7.Sri Mukul Sarkar - Director-export/import bank of India nominee 8.Mr M. Adinarayana- company secretary and GM (corporate affairs)

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EMPLOYEE GRADES EXECUTIVES E6 GENERAL MANAGER E5 SENIOR MANAGER E4 MANAGER E3 DEPUTY MANAGER E2 ASST MANAGER E1 EXECUTIVES

STAFF S4 JUNIOR EXECUTIVES S3 ASST. OFFICER/SENIOR ASST./CHEMIST S2 ASST. CHEMIST S1 COMPUTER OPERTOR

WORKERS W7 TECHNICIAN W6 SENIOR OPERATOR W5 OPERATOR W4 JUNIOR OPERATOR W3 HELPER 1 W2 HELPER 2 W1 HELPER 3

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3.1 NEED FOR THE STUDY 3.2 OBJECTIVES OF THE STUDY 3.3 SCOPE OF THE STUDY 3.4 DATA ANALYSIS 3.5 METHODOLOGY & SAMPLING 3.6 RESEARCH METHODOLOGY 3.7 LIMITATION

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3.1 NEED FOR THE STUDY

The present study mainly aims at identifying the employees job satisfaction in NATCO Pharma LTD. The study is needed to know how the employees are satisfied in the organization. The study is needed from the point of view to know the views and attitudes of the employees towards their satisfaction. It also gives an opportunity to the employees to express their views about their satisfaction. The study will help the management to think for new development in increasing morale of the employees and productivity in the organization.

3.2 OBJECTIVES OF THE STUDY

To study the need and importance of EMPLOYEE JOB

SATISFACTION. To study how the performance appraisal programs are imparted to the employee satisfaction. To make analysis regarding the satisfaction level of the employees towards the organization. To make some of the effective suggestion to the management of NATCO Pharma LTD.

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3.3 SCOPE OF THE STUDY

The scope is limited to employees satis faction in the company towards their job. The study concentrates on employees satisfaction. The sample has been collected regarding satisfaction of employees towards the job. The sample survey includes employees of higher cadre and workers.

3.4 DATA ANALYSIS

The data is analyzed mainly from the questionnaire. Data interpretation is done with the help of statistical tool like Bar chart, Pie diagram and graphs which are all based on the data which is not only collected from questionnaire but also from companys profile. The process of analyzing the data will begin with first collecting the data, which is obtained, from the questionnaire and then tabulating it. Then the tabulated data is depicted in diagrammatic form that is in the terms of a graph. Then from the graph an interpretation is made.

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3.5 METHODOLOGY AND SAMPLING

1. COLLECTION OF DATA The data that is been collected for the study is from primary data and secondary data. A random sampling method is taken for the study. 2. SAMPLE STUDY The study was conducted by taking random sampling method. The present study is intended to analyze the employee satisfaction at NATCO Pharma LTD. Due to the availability of limited time and other reasons, the analysis was conducted with sample size of 50 employees. 3. PRIMARY DATA Primary data are those which are collected afresh and that happens to be original in character. The primary data will be collected through a questionnaire and personal interaction. The data will be collected through questionnaire method because exact information can be obtained. This is more useful rather than adopting any other method. The primary data can be collected by the following methods-

QUESTIONNAIRE
Under this method a well-structured questionnaire is prepared covering all aspects with respect to the related topics. This may contain both open and closed-ended questions. The open ended questions are those where the respondent are free to give their opinions. While in close-ended

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questions the respondent has to answer the questions within the choice specified. By distributing the questionnaire to the respondent the data is collected.
OBSERVATION METHOD

By observing the activities being performed by the organization, the data is collected. Care should be taken that the activity should be observed for one complete work life style.

4. SECONDARY DATA The secondary data has been collected from different sources like NATCO PHARMA LTD manuals, files from different sections/cells, branches and reading material from different departments in NATCO PHARMA LTD.

3.6 RESEARCH METHODOLOGY

1. SAMPLING METHOD: Simple random sampling is a technique of drawing the sample in such a way that each unit of the population having an equal and independent of chance. Sample size : 20 Statistical tool : random sampling method Sample unit : people belonging to all designations

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3.7 LIMITATIONS Every effort has been made to attain accuracy in findings. It is imperative that some limitations cannot be continued. Some of the limitations that could be traced as follows:
Study was confined to managerial level. Sample selected was simple random sample restricted to 50 employee. The study was confined only at MEKAGUDA UNIT. The sources of information were only through questionnaire. There is a chance of regency effect.

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4.1 4.2 4.3

FINDINGS SUGGESTIONS CONCLUSION

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4.1 FINDINGS
80 % of employees training is given once in a year With the personal policies in this organization like 1. Education to their children 2. Health care facilities etc.., 3. Facilitates employee development Senior officer/ executives in this organization take active interest in their juniors and help them to learn their job. 56% of employees opinion in the organization is that they have freedom to express the ideas during meetings. 74% of employees opinion is that the safety and health training programs are conducted effectively. People lacking competencies in doing their jobs ar helped to acquire competence rather than being left unattended. There is a appraisal system in the organization to reward any good work done or contribution made by employees.. This organization ensures employees welfare to such an extent that the employees can save a lot of their mental energy for work purose. The employees are satisfied with the present pay and employees welfare facilities.

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4.2 SUGGESTIONS Job rotation in this organization should facilitate employees

development.

The language in which training is imported should be understood by one

and all.

It is better to give more preference to in house experts, as they are more

aware of existing loopholes in the organization.

Most of the products offered by NATCO are not known to consumers so

stress should be laid on advertising.

The psychological climate is to be improved in this organization, so that

it facilitates any employee in developing himself by updating knowledge and skills related to their job. The promotion decision should be based on suitability of the promotion rather than on appraisal system.

Motivational activities and policies regarding motivation should be

implemented regularly in order to motivate the employees.

Suggestion box could be used to gather information about training from

employees to encourage participation. Good suggestion can be rewarded.

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4.3 CONCLUSION
After conducting an intense study on employee satisfaction in NATCO we have arrived at the following conclusion There is a high level of awareness among the employees with respect to benefit and loans provided in the organization. Majority of the employees is satisfied with the resources provided by the company. The satisfaction of employees at NATCO was found to be good.

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QUESTIONNAIRE

75

EMPLOYEE SATISFACTION QUESTIONNAIRE ANALYSIS

In analysis part, the study mainly focuses on the employees in this organization with regards to their satisfaction levels in respect of job in the NATCO PHARMA LIMITED. The analysis part mainly focuses on different aspects of satisfaction of employees in the organization. the analysis part depends upon questionnaire. The questionnaire consists of questions/variables on the different factors of training level and development factor levels. The survey was conducted by taking the sample of 50 and the questionnaire was given to the employees who had a minimum of three years of work experience. The following page depicts the information collected from the survey and is presented in an easy understandable pie-chart using certain statistical techniques.

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QUESTIONNAIRES

1. I feel, the job is challenging and interesting.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

1.

20

20

100

100 90 80 70 60 50 40 30 20 0 10 0 Agree Disagree Uncertain 0

INTERPRETATION: All the employees of NATCO think that their job is challenging and interesting.

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2. In general, I am satisfied about my job.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

2.

20

19

95 100 90 80 70 60 50 40 30 20 5 10 0 Agree Disagree Uncertain 0

INTERPRETATION: Almost all the employee in NATCO are satisfied with their jobs.

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3. I feel I am contributing to NATCOs mission

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

3.

20

19

95 100 90 80 70 60 50 40 30 20 5 10 0 Agree Disagree Uncertain 0

INTERPRETATION: In NATCO pharma all the employees contribute to achieve NATCOs mission.

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4. Our organization provides good Pay structure.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

4.

20

10

50 50 45 40 35 30 25 20 15 10 5 0 Agree Disagree Uncertain 10 40

INTERPRETATION: 50% of employees thinks that NATCO provides good pay structure.

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5. My rewards are revised based on my performance evaluation.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

5.

20

11

60

55

50

40 30 30

20

15

10

0 Agree Disagree Uncertain

INTERPRETATION: 55% of employees believe that their rewards are based on performance evaluation.

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6. Company provides excellent benefits and welfare facilities for my family and myself.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

6.

20

45 45 40 35 30 25 20 15 10 5 0 Agree Disagree Uncertain 20 35

INTERPRETATION: Around 45% of employees believe that NATCO company provides excellent benefit and welfare facilities.

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7. All the allowances and advances are paid on time.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

7.

20

10

50 50 45 40 35 30 25 20 15 10 5 0 Agree Disagree Uncertain 10 40

INTERPRETATION: 50% of employees say that allowances and advances are paid on time

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8. If I do good work I can count on being promoted.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

8.

20

15

75 80

70

60

50

40

30 15 20 10

10

0 Agree Disagree Uncertain

INTERPRETATION: 75% of employees believe that if they do good work they are been promoted

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9. I am satisfied with the training extended to my position.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

9.

20

17

85 90 80 70 60 50 40 30 20 5 10 0 Agree Disagree Uncertain 10

INTERPRETATION: 85% of employees are satisfied with the training extended to their position.

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10. Employees are given option by concerned department to attend external training programs, if necessary.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

10.

20

19

95 100 90 80 70 60 50 40 30 20 5 10 0 Agree Disagree Uncertain 0

INTERPRETATION: 95% of employees think that they are given option to attend external training, if necessary.

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11. Proper systems are placed in the organization to extend health benefit and safety training.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

11

20
80 80

16

70

60

50

40

30 15 20 5 10

0 Agree Disagree Uncertain

INTERPRETATION: Around 80% of employees think that NATCO provides health benefits and safety training.

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12. We have good opportunities to learn new skills and enhance our competencies.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

12.

20

17

85 90 80 70 60 50 40 30 15 20 10 0 Agree Disagree Uncertain 0

INTERPRETATION: 85% of employees believe that have good opportunities to learn new skill and enhance their competencies.

88

13. I feel free to discuss my personal and professional with my peers and seniors.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

13

20

13

70

65

60

50

40

30

25

20

10

10

0 Agree Disagree Uncertain

INTERPRETATION: Around 65% of employees think that they can discuss their personal and professional matter with their peers and superior.

89

14. My immediate superior treats all our colleagues equally.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

14

20

17

85 90 80 70 60 50 40 30 20 10 0 Agree Disagree Uncertain 10 5

INTERPRETATION: 85 % of employee thinks that their superior treats all their colleague equally.

90

15. I feel I can express myself without fear in the department meetings.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

15.

20
100 100 90 80 70 60 50 40 30 20 10 0 Agree Disagree 0

20

Uncertain

INTERPRETATION: 100% of employee can express themselves without fear in the department meetings.

91

16. Organization provides health, safety and welfare measure as per statutory norms.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

16.

20

17

85 90 80 70 60 50 40 30 20 10 0 Agree Disagree Uncertain 10 5

INTERPRETATION: 85% of employees feel that health, safety and welfare measure are provided as per statutory norms.

92

17. We are happy with the non-statutory welfare measure provided by the company.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

17.
80 80

20

16

70

60

50

40

30 15 20 5 10

0 Agree Disagree Uncertai

INTERPRETATION: 80% employees are happy with the non-statutory welfare measures provided by the company.

93

18. I get all official communication about the events and

affairs of the company through newsletters and department circulars.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

18.

20

13

65 70

60

50

40

30 20 15 20

10

0 Agree Disagree Uncertain

INTERPRETATION: 65% employee feels that affair and events of the company is officially communicated through news letters and department circulars.

94

19. Employees are encouraged to suggest new ideas and to improve the overall productivity of the organization.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

19.

20

17

85 90 80 70 60 50 40 30 20 10 0 Agree Disagree Uncertain 10 5

INTERPRETATION: 85% of employees feel that they are encouraged to suggest new ideas in order to improve the productivity of the organization.

95

20. I am clearly informed about my roles in the organization and what exactly is expected from me regarding my work.
S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

20.

20

20

100 100 90 80 70 60 50 40 30 20 10 0 Agree Disagree Uncertain 0 0

INTERPRETATION: All the employees have been clearly informed about their roles in the organization and what work is exactly expected from them.

96

BIBLIOGRAPHY PERSONNEL /HUMAN RESOURCE MANAGEMENT DAVID A. DECENZO & S.P ROBBINS Essentials of human resource management and industrial relations. - P.Subba Rao Annual reports of NATCO Pharma Ltd. Website www.natcopharma.com www.citehr.com www.google.co.in

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