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Rewards and Recognition can be powerful tools for employees
motivation and performance improvement. Reward means something given for
performance. Recognition is an important feature in retaining excellent
employees and for improving performance. Many types of rewards and
recognition have direct costs associated with them, such as cash bonus stock
awards, and wide variety of company paid perks.
The primary objective of providing Rewards and Recognition is to encourage
and motivate the employees to do better performance. Rewards and Recognition
are one of the motivation aspects in Human Resources. Rewards and
Recognition are given to achieve desired goals. Rewards system should be
closely aligned to organizational strategies. These strategies could be designed
to faster innovation to provide unique products or services.
Rewards and recognition may be monetary, or non-monetary. Monetary rewards
include cash bonus, stock awards, company paid perks, gift certificates. Non
monetary rewards and recognition including compliments, extra time off,
ceremonial awards, and small trinkets such as mugs, t-shirts, sets of pens and
pencils. Rewards and Recognition are very useful to reinforce good

Objectives of the Study:

To understand the extent to which the rewards & recognition provided by

the HETERO DRUGS laboratories ltd., towards their employees.

To know the motivation and satisfaction level of the employees through

the rewards & recognition provided by the HETERO DRUGS

To examine the Rewards & Recognition incorporation units multiple


To offer useful suggestions for improving the effectiveness of Rewards

and Recognition.

Scope of the Study:

Rewards and Recognitions are important tools for any organization to
motivation the employees to improve the performance. Because money isnt
everything when it comes to keeping your employees motivated.
The subject of Rewards and Recognition covers monetary rewards and
non monetary reward, recognitions, awards. More specifically we may examine
that how useful Rewards and Recognition are in a company to achieve a target.
The scope of the study is to know the total reward system in the DRL.

In this chapter the sequence of research process under taken in
HETERO DRUGS LTD, Hyderabad is explained.

Primary Data:The primary data was collected with the help of the standard and
accepted techniques which are in use for his kind of studies. To administer the
structure questionnaire, satisfied random sampling techniques were used. Along
with the questionnaire, group and panel discussions with workers, was
conducted to understand their views on the problem of research.

Preparation of the Questionnaire:

Keeping in view the above objective questionnaire was prepared for the
distributing among the employees to know their views regarding REWARDS
& RECOGNITION in HETERO DRUGS LTD ., these questions were
wised out in the end and after making suitable modifications. They were
finalized and developed in to a full pledge questionnaire with a suitable scale.

Secondary Data:
The secondary source of data was collected through obtaining rewards
and files from the integrated product development unit of HETERO DRUGS
some part of Data was collected from the Internet. The institutional guide gave
us the remaining necessary information and the staff relating to administration
gave me all the necessary information to complete the study.

Limitations of the Study:


Time was the major constraint as the mentioned period was not enough
to collect the data in detail.

Secondary source information availability was largely restricted to

internet and online journals.

Survey was done with 50 employees of the company as well as other

companies also.

Lack of secondary sources such as magazines.

The collected information mainly depends on the interviews, survey

findings and the Internet.



Rewards are considered to be a function of efforts put in to reach the
standard set on the basis of accomplishment manifestation. In order to practice
these strategy managers setup standards of performance, monitor the behaviour
of the employees to observe the extent to which these standards are attained and
allocate rewards & based on the observance of the performance. There rewards
can be applied only where performance and results can be directly and
quantitatively measured.

Recognition is an important factor in retaining excellent employees and

for improving performance. Recognition is important because it sends a
powerful message that the recipient is important. It says that the organization
cares about good performance. When this message is lacking overall
performance may drift in search of a direction. If low performers are treated the
same as high performers, the message will be translated that high performances
gets you nowhere. Eventually, many in the workforce will settle at some
minimal acceptable level of performance. Surveys of workers by the public
agenda forum have confirmed that most workers say they are working
significantly below their potential.

Concept of Rewards and Recognition:

Like a child being given a chocolate cup cake and a big hug after
cleaning her room, rewards & recognition can be powerful tools for employee
motivation and performance improvement. Many types of rewards &
recognition have direct costs associated with them, such as cash bonus stock
awards, and a wide variety of company paid perks, like car allowances, paid
packing and giving certificates.

Other type of rewards and recognition may be less tangible, but still very
effective. These non-monetary rewards include formal and informal
acknowledgement, assignment of more enjoyable job duties, opportunities for
training and an increased in decision making.

Recognition can be very motivating and help to build feelings of

confidence and satisfaction. Another important goal is increased employee
retention. An ASTD report on retention research identified consistent employee
recognition as a key factor in retaining top-performing worker.

To achieve desired goals, reward system should be closely aligned to

organizational strategies. For example, a company focused on a product
differentiation strategy could design their rewards practices to foster innovation
to provide unique products or services. While a company focused on a cost
reduction strategy might focus on rewards for ideas to minimize or eliminate
costs and employee stock awards to foster an ongoing cost reduction emphasis.

Jack Zigon defines rewards as Something that increases the frequency
of an employee action.
Something given or received in recompense for worthy behavior or in
retribution for evil arts .
It is a satisfying return result or profit.
The return for performance of desired behavior is positive

The art of power of knowing and, of perceiving the identify


experience or memory with other experiences or memories, Physiologically,

recognition is based upon the simultaneous or consecutive activity of different
neuron groups, their comparison and the fact that the impulses are identical,
sensations may be compared with memories, memories with other memories
and the complexes produced by the recombination of the dissociated elements
of past experiences may be compared with memories or with sensations, and
recognition may follow.
The process of recognizing Something or someone by remembering


Most employees feel that they are worth more than they are actually paid.
There is a natural disparity between what people think they should be paid and
what organizations spend in compensation. When the difference becomes too
great and another opportunity occurs, turnover can result. Pay is defined as the
wages, salary, or compensation given to an employee in exchange for services
the employee performs in the organization.
Pay is more than "dollars and cents; it also acknowledges the worth and
value of the human contribution. What people are paid has been shown to have
a clear, reliable impact on turnover in numerous studies.

Employees want to be recognized for a job well done. Rewards and

recognition respond to this need by validating performance and motivating
employees toward continuous improvement. Rewarding and recognizing people
for performance not only affect the person being recognized, but others in the
organization as well.
Through a rewards program, the entire organization can experience the
commitment to excellence. When the reward system is credible, rewards are
meaningful; however, if the reward system is broken, the opposite effect will
occur. Employees may feel that their performance is unrecognized and not
valued or that others in the organization are rewarded for the wrong behaviors.
Unrecognized and no valued performance can contribute to turnover.
Recognition for a job well done fills the employees' need to receive positive and
honest feedback for their efforts.
Recognition should be part of the organization's culture because it
contributes to both employee satisfaction and retention. Organizations can avoid
employee turnover by rewarding top performers. Rewards are one of the keys to
avoiding turnover, especially if they are immediate, appropriate, and personal. A


Harvard University study concluded that organizations can avoid the disruption
caused by employee turnover by avoiding hiring mistakes and selecting and
retaining top performers.
One of the keys to avoiding turnover is to make rewards count. Rewards
are to be immediate, appropriate, and personal. Organizations may want to
evaluate whether getting a bonus at the end of the year is more or less rewarding
than getting smaller, more frequent payouts. Additionally, a personal note may
mean more than a generic company award. Employees should be asked for
input on their most desirable form of recognition. Use what employees say
when it comes time to reward for performance (St. Amour, 2000).

Designing a Rewards and Recognition Solution :

In designing a rewards and recognition program, the following guidelines
should be considered.
Rewards should be visible to all members of the organization.
Rewards should be based on well-defined, credible standards that have
been developed using observable achievements.
Rewards should have meaning and value for the recipient.
Rewards can be based on an event (achieving a designated goal) or based
on a time frame (performing well over a specific time period).
Rewards that are spontaneous (sometimes called on-the-spot awards) are
also highly motivating and should also use a set criteria and standard to
maintain credibility and meaning.
Rewards should be achievable and not out of reach by employees.


Non monetary rewards, if used, should be valued by the individual. For

example, an avid camper might be given a 10-day pass to a campsite, or,
if an individual enjoys physical activity, that employee might be given a
spa membership. The non monetary rewards are best received when they
are thoughtfully prepared and of highest quality. Professionalism in
presenting the reward is also interpreted as worthwhile recognition.
Rewards should be appropriate to the level of accomplishment received.
A cash award of $50 would be inappropriate for someone who just
recommended a process that saved the organization a million dollars.
Determining the amount of money given is a delicate matter of
organizational debate in which organizational history, financial
parameters, and desired results are all factors. Recognition for a job well
done can be just as valued and appreciated as monetary awards.
Formal recognition program can be used with success. First Data Resources,
a data processing services company that employees more than 6,000 individuals
in Omaha, Nebraska, use a formal recognition program (Adams, Mahaffey, and
Rick, 2002). Rewards are given on a monthly, quarterly, and yearly basis, and
range from Nebraska football tickets, gift certificates, pens, plaques, mugs, and
other items. One of the most popular awards at First Data is called the "Fat Cat
Award" that consists of:
$500 gift check
Professional portrait of the employee
Appreciation letter from the CEO and senior management
E-mails, phone calls, and notes from peers
In addition to Non monetary rewards, employees can be rewarded
using money in numerous ways. Cash is a welcome motivator and reward for


improving performance, whether at formal meetings or on the spot. Variable

bonuses linked to performance are another popular reward strategy. Profit
sharing and pay-for- skills are monetary bonus plans that both motivate
individuals and improve goal achievement. Small acts of recognition are
valuable for employee daily motivation. Sometimes a personal note may mean
more than a generic company award. In one survey, employees cited the
following as meaningful rewards (Moss, 2000):
Employee of the month awards
Years of service awards
Bonus pay (above and beyond overtime) for weekend work.
Invitations for technicians to technical shows and other industry events

Objectives of Rewards & Recognition:

To increasing degree of responsibility.

To motivate the employees to pursue their goals and reach their potential.

To improve the quality of the product.

To increase the productivity.

To meet the competition.

To create the right employee- management team environment.

It is an atmosphere that is encouraging & favorable.

To improve the employees self confidence.

To create self esteem and royalty among employees.

To encourage the behavior of the employees to reach strategic goals.


People are motivated to higher levels of job performance by

positive recognition from their managers and peers. Creative use of
personalized non-monetary rewards reinforces positive behavior and improves







Recognition can be in expensive to give, but priceless to receive.


Studies indicate that employees find personal recognition more motivational
than money. Yet, it is a rare manager who systematically makes the effort
simply to thank employees for a job well done. The guidelines for effectively
rewarding and recognizing employees are simple; these are informal managerinitiated performance based rewards:
Match the reward to the person. Start with the individual's personal
preferences, reward him or her in ways he or she truly finds rewarding.
Such rewards may be personal or official, informal or formal, public or
private, and may take the shape of gifts or activities.
Match the reward to the achievement. Effective reinforcement should be
customized to take into account the significance of the achievement. An
employee who completes a two-year project should be rewarded in a
more substantial way than one who simply does a favor for you. The
reward should be a function of the amount of time you have to plan and
execute it and the money you have to spend.
Be timely and specific. To be effective, rewards need to be given as soon
as possible after the desired behavior or achievement. Rewards that come
weeks or months later do little to motivate employees to repeat their
actions. You should always say why the reward is being given. Once you
have consistently rewarded the desired performance.


Informal rewards, meaning spontaneous, forms of recognition that can be
implemented with minimal planning and effort by almost any manager. In a
recent study of more than 1,500 employees in dozens of work settings by Dr.
Gerald H. Graham, professor of management at Wichita State University, the
most powerful motivator was personalized, instant recognition from their
managers. "Managers have found," Graham adds, "that simply asking for
employee involvement is motivational in itself." In one of his studies,
employees perceived that manager-initiated rewards for performance were made
least often, and perceived that company-initiated rewards for presence ( that is,
rewards based simply on being in the organization) occurred most often. Even
though the first type of reward has the highest motivational impact and the
second type has lower of an impact. Graham's study determined the top five
motivating techniques:
1. The manager personally congratulates employees who do a good job.
2. The manager writes personal notes about good performance.
3. The organization uses performance as the basis for promotion.
4. The manager publicly recognizes employees for good performance.
5. The manager holds morale-building meetings to celebrate successes.
Only 42% of the respondents believed that their managers typically used
the top motivating technique in which a manager personally congratulates
employees who do a good job. The other top factors were perceived by less than
25% of the respondents as being typically used. Not only are informal rewards
more effective, but they tend to be less expensive. According to the "People,
Performance, and Pay" study by the American Productivity Center in Houston
and the American Compensation Association in 1987, it generally takes 5 to 8
percent of an employee's salary to change behavior if the reward is cash and
approximately 4% of the employee's salary if the reward is noncash.



Some of the most effective forms of recognition cost nothing at all. A

sincere word of thanks from the right person at the right time can mean more to
an employee than a raise, a formal award, or whole wall of certificates or
plaques. Part of the power of such rewards comes from the knowledge that
someone took the time to notice the achievement, seek out the employee
responsible, and personally deliver praise in a timely manner.

Research by Dr. Gerald Graham throughout the United States revealed

that the type of reward employees most preferred was personalized, spur-of-themoment recognition from their direct supervisors. In a recent survey of
American workers, 63% of the respondents ranked "a pat on the back" as a
meaningful incentive.

Since several studies on employees have shown that the greatest

influence on job satisfaction is the supervisor, any manager has all the
ingredients for achieving a high degree of satisfaction and a correspondingly
high level of performance among his or her employees.

Many effective forms of recognition are onetime events that celebrate a
significant achievement or a milestone. Such activities need to be planned so as
to be timely and pertinent to the situation and the person being recognized. A
recent survey by the Minnesota Department of Natural Resources found that
recognition activities contributed significantly to employees' job satisfaction.


Most respondents said they highly valued day-to-day recognition from their
supervisors, peers, and team members. Other findings from the survey:
68% of the respondents said it was important to believe that their work
was appreciated by others.
63% agreed that most people would like more recognition for their work.
67% agreed that most people need appreciation for their work.
Only 8% thought that people should not look for praise for their work

Nancy Branton, project manager for the survey, says, "Recognition programs
are more important now than in the past. Employees increasingly believe that
their job satisfaction depends on acknowledgement of work performance as well
as on adequate salary. This is especially true of employees who are highly
interested in their work and take great satisfaction in their achievements.

Reward strategies :
An effective employee recognition system inspires workers to switch off
automatic pilot and concentrate on daily tasks by turning the workplace into a
game with a series of specific, widely known, achievable objectives. One way
to do this is to target important tasks, give them point values, and allow
employees to earn points as these duties are carried out. A total, such as 100,
should be designated as the goal. The total points employees need to earn a
reward should be based on reasonable, not exceptional, performance levels.
Unlike incentive programs that drive employees to achieve improbable goals,
the key to this type of system is that it rewards employees when their
performance is average. Incentive programs tend to create extreme peaks and
valleys in performance. Any organization can adopt this technique as long as


management tailors the specific steps to its own circumstances and makes a
long-term commitment to the program.

The process of individual employee and work team recognition is becoming a

social science of its own. Various types of incentives are increasingly being used
to change the working culture of companies. It is clear that the direction of a
company can be changed - or at least substantially influenced - by honest
recognition of employee contributions.
A recognition system is important because it offers incentives for improving
quality and productivity. Yet, more important, a recognition system makes a
statement about what principles are important to a company. Recognition is a
form of employee motivation in which a company recognizes, praises, and
thanks employees who have made positive contributions to the company's
success, and must be consistent with a company's values and principles.
Guidelines for recognition systems are presented.
A firm's recognition and reward system must be properly structured,
communicated, and understood by everyone. To assist employees in
remembering the important recognition attributes and types of rewards to
consider when recognizing and rewarding teams and individuals, an alliterative
approach using the letter "a" may prove useful. To illustrate this, a team or
individual should have the following attributes to be considered for recognition
of a quality activity:
1. An aggressive attitude,
2. Aptitude, and ability,
3. Activity in application, and


Once candidates have been selected, the following rewards can be used to show
gratitude for their accomplishments:
1. Accolades,
2. Acknowledgment,
3. Awards, and
4. Appreciation
Although managers often say their most valuable asset is their employees, they
do not always behave in ways that make employees feel they are truly
appreciated. Recognition-award programs are helpful in creating recognition
moments and in teaching praise techniques. When expressing appreciation to
employees and rewarding their good behavior, employers should follow 3
important principles:
1. Describe the desired behavior in specific terms.
2. Explain why the behavior was helpful.
3. Express thanks.
In addition, the significance of the event should correspond with the amount of
gratitude being expressed. Money is a particularly powerful incentive for
increasing sales and productivity, but some form of ongoing remembrance of
the award should also be given. When the recognition program is created,
employers should communicate the following to their employees:
1. The program's objectives and why the company is sponsoring it,
2. The mechanics of the program,
3. The symbolism of the award, and
4. The way the program reinforces the company culture and values

Today, many companies want to engender employee recognition. A recognition

program alone is unlikely to work with a disgruntled or unmotivated work


force. To be effective, a recognition program must be part of a whole culture of

valuing employees. Many organizations have discovered low employee morale
translates into reduce productivity, absenteeism, and a high turnover rate.
Motivational techniques include:
1. Raises and bonuses,
2. Merchandise credit, and
3. Spontaneous recognition and rewards.
Cash rewards cost more and offer less leverage. Recognition is honor money
cannot buy. Praise or a personal note acknowledging achievements are small
gestures that are extremely important to employees.
As companies re-examine the role of employees a traditional idea is reemerging - recognition as a tool to motivate employees. Led by the service
award, recognition programs of all kinds are fulfilling people's needs for a kind
word. Today's employee service recognition programs are at least as
sophisticated and well-planned as any other modern business process.
They are communication-based, performance-focused and empowered with
symbolism. Companies taking a fresh approach to recognition programs see a
process with several important objectives:
1. Opening channels of communication,
2. Enhancing individual worth and self-confidence,
3. Reinforcing corporate values and culture,
4. Recognizing personal performance and achievement, and
5. Building mutual commitments and relationships.
According to a recent study comparing responses of supervisors and employees
to what each group thought employees wanted most, improving morale is not a
matter of paying people more. Responding employees indicated that they want


to be involved and appreciated and get personal satisfaction from their jobs, not
strictly monetary value.
Praise is an excellent way to reinforce desired behavior; however, it is not the
way to inspire it. If employees perform to certain standards simply for the
material reward promised, they will come to expect that kind of reinforcement
constantly and will be difficult to motivate in the absence of what they perceive
as commensurate material attention.

The key to motivate employees is to make them want to do the job well
for their own sake. Employees should see how they fit into the company's larger
scheme - how they tangibly contribute to the making of the product. Employees
whose donations are acknowledged will achieve high levels of personal
motivation and loyalty to the organization.
Employee recognition programs usually give the employee the
choice of an award gift. Many firms in the award business have developed
catalogs that can display a company's logo and special message; some employ
substantial marketing staffs to ensure that employee recognition programs work
for the companies purchasing their award items.
Today's intergenerational mix of employees is heterogeneous in makeup
and complex in nature, demanding that motivational efforts address diverse
lifestyles. Many long-service employees have conservative values and respond
to traditional symbols of appreciation with a focus on the corporate identity.
However, many midterm employees prefer choice and understated corporate
identity. Today's young employees want peer recognition, thus traditional annual
achievement awards presentations are important to them. Other motivating
practices are also important to them, such as:
1. Peer review,
2. Bonuses,


3. Stock options, and

4. Assignments to special projects.
Effective reward management can help you achieve your business objectives
by attracting and retaining motivated, loyal, and competent people. In return for
their commitment, people expect financial rewards such as salary, fringe
benefits, bonuses, promotions, or stock options. They will also seek other forms
of reward such as recognition of competence, achievement, responsibility,
influence, and personal growth.
The challenge is to get the balance right to get the best results. You will need
to establish the relationship of the rewards to business and individual
performance, and make informed decisions about flexibility and fairness, the
level of rewards, market rates, pay structures, incentive/bonus schemes, and
The following key points will help you manage reward to improve your
business results: Ensure that all reward programmes are aligned to business
objectives. Determine the present situation - typically you will have people with
a variety of packages. View, and communicate 'total reward' packages ensuring
each element is valued and has a distinct purpose.
Remuneration is a major cost for any organization; invest where the
maximum return will occur. 'One size' does not necessarily fit all. Target your
spend and tailor your reward program for the different areas of your
organization. Ensure that the different elements of the reward package don't

Seven Recognition Dos and Donts:

Over the years that I have been involved with recognition processes, I
have developed a list of what I call Recognition Dos and Donts. When one
ventures into recognition in the workplace, one will, invariably, make mistakes.


So what are those elements of recognition that either makes it succeed, or

produce results far below what was hoped?
1. Keep clear the distinction between recognition and incentives. An incentive
is an enticement advertised in advance to get people to do something.
Recognition is a thank you given after the fact.
2. Keep the recognition criteria wide open. Too many times organizations will
limit the criteria by which one can receive recognition. The committees I
have worked with found that there are so many opportunities for recognition
that it is virtually impossible to list criteria. A good recognition committee
can determine through consensus if a thank you is truly deserved.
3. Nominations should be open to all employees. Managements eyes cannot
be everywhere. Frequently, they will miss the outstanding performance on
the loading dock. Allow everyone in the organization the opportunity to
nominate someone for recognition. One of the greatest nominations our
committee ever received came from a pipefitter who had added two
eloquently written pages to the nomination to say what an outstanding
worker his partner was.
4. Maintain confidentiality during investigations. All persons nominated for
recognition may not, in fact, deserve. Keeping the process confidential will
help to avoid hurting someone, and bring credibility to the process. The
nominees supervisor and manager have a need to be included, as they may
be aware of other issues that may affect the committees decision.
5. Make the recognition special, not expensive. In the past, some of the
recognition committees felt that an expensive award of $300 or $400 sent a
more powerful thank you. However, as the dollar amounts climbed, the
thank you became lost somewhere. The recognition process became more
like an incentive program or contest. I even had a recipient tell me how
angered he was by how his recognition was handled, even though he
received $1000 from his company!


A recognition award should be a token of appreciation. A specially made

(but inexpensive) certificate of appreciation will hang in the den forever.
Money, however, will be spent and forgotten.
6. Include family in presentations when possible. This extends the recognition
and resulting good feeling to the entire family.
7. Use good judgment. When it comes to performing meaningful recognitions
nothing replaces good judgments. People seem to know when recognition is
deserved and how much is appropriate. Perhaps this is way recognition
committees serve such a valuable function.


HETERO DRUGS Laboratories consider the Human Resources as the
most important of all the resources in the company. Therefore in its pursuit of
enriching the quality of its employees, to improve their performance, to
motivate its employees and to satisfy their needs, the company has providing
many Rewards & Recognition. These rewards motivate the employees to
improve their performance further. This in turn leads to self-commitment of the
employee to learn further, acquire latest skills & knowledge and to develop their
human resource. Non-monetary rewards are encouraging the employees to
perform better.
The important Rewards and Recognition provided by the HETERO DRUGS

Monetary Rewards:





Performance bonus





Job rotation


Work shops

A promotion is the transfer of an employee or upwards advancement of
an employee in an organization to another job, which commands better
pay/wages better status/prestige, better walking environment and a higher rank.
These promotions will be given by the measuring the performance. They
provide this promotion to recognize individuals performance and reward him
for his work so that he may have an incentive to forge ahead. Employees will
have little motivation if better jobs are reserved for outsides.


is providing incentives to their employees to

motivate and reward the sales team within an organization. Incentives are
designed to motivate and recognize participants for meeting exceptional level of
performance in supporting of company goals. Incentives often include small
gifts like gift cards. HETERO DRUGS provided the incentives like travel
packages, big name sporting events.

Performance bonus:
The minimum bonus is paid as per the payment of bonus Act 1965 to all
the employees who are working under organization. HETERO DRUGS provide
the bonus as per the act as well as something given or paid in additional to what
is usual for the excellence performance of the employees. This performance
bonus will be given to those who perform better than other.



has provided employees with the many training

programs to improve the knowledge apart from the work.

The out bound training is a program educating the participants on
different aspects of working effectively in a team, how perceptions/paradigms
affect their communication & behavior, how to deal with various situations and
how creativity could help in solving problems. This type of training program is
also one type of reward to the employees to acquire knowledge.
The Behavior Training Exercise for its employees. Popularly known
as Express yourself clearly program, it identifies/extracts training needs from
the perfect IDPs. This training tells the real-life situations & some case studies
other training programs like A mountain of learning it tells about the value of
team -work & discipline.

Job Rotation:
This job rotation is one type of reward to get the job knowledge and
gains experience from his supervisor or trainer in each of the job assignment.
Through this the employees may understand the problem of each every job. This
is also one type of training.

Work Shop:
The workshops will be conducted by the company which was extremely
practical and interactive; have drawn much appreciation from the trainees.
HETERO DRUGS planned more workshops on Lateral Thinking, Team
Dynamics Personnel Development Leadership, Communication Skills,
and Problem Solving, Decision making and Time Management. These


workshops are very useful for employees to known how the performance could

Non-Monetary Rewards:

Lunches and Dinner






Certificate of Appreciations


Small Trinkets



Lunch & Dinner:

Provide the Lunch & Dinner when celebrations & Award functions are held.

Celebrations are held for the purpose of fan, friendship, & togetherness.
HETERO DRUGS celebrates the important days like women days, May Day,
independent days, and New Year celebrations.
Celebrations are a forum for recognizing the Spirit of Excellence
in the company. The Spirit of Excellence Celebrations is a big event of
HETERO DRUGS . It is a two days program. On first day there will be a
carnival time. The carnival includes the variety of fun games, stilt walkers,
tattoo artists, pottery stalls, bangle stalls, and fun rides for children. Many dance
programs and musical programs. The second day is celebrated through
distribution of spirit of excellence award to the excellence performance.
They conduct the quality celebrations programs, to spread good
manufacturing practices awareness among the employees and resolve non-


compliance issues. It also conducted the safety celebrations to know the

importance of safety in the work place.

The Dr. Reddy Laboratories provide these to recognize the excellence
performance. The awards can be motivated the employees to perform better.

Spirit of excellence awards:

To recognize excellence performance and efforts towards organization
building the company will distributes the CM excellence awards, team awards,
and certificates for appreciation (Special Recognition Award) on the occasion of
Spirit of Excellence celebrations.

The team awards given to

Best unit
Best Management work place.
Best Sales & Marketing team
Best Innovation Team


Best team contribution to Society/Environment

Best team Initiative
Best Service Excellence

Certificate of Appreciation:
The certificate of Appreciation will be given to recognize persons.
It includes family in presentations when possible:
This extends the recognition and resulting good feeling to the entire
family. Some programs conducted by the HETERO DRUGS will invite the
employees as well as their families. The Spirit of excellence award celebration
invites the employees as well as their families, and also provides dinner.
Elite: Elite is a HETERO DRUGS

special program HETERO DRUGS

honored its top 52 professional their targets for 3 years in a row and helping in
building the companys brands in the field.
The Elite as they are called were invited to some place with their
families and entertained lavishly and at a gala dinner held in everything at
celebrity they were presented with special plaques. There were prices for
employees and childrens as well.

Small Trinkets:
Small trinkets will be given to their employees like t-shirts, pens, ties etc.

Complements will be comes from the superior, when ones performance is
great. This is also one form of non-monetary reward.




Established in the year 1993, with the motto to be the best in the API
manufacture, Hetero today embodies the vision of a top-notch player in developing


and commercializing products catering to a variety of therapeutic categories,

integrating into a leading finished dosage manufacturer.
True to the statement, WHERE THE FUTURE STARTED
YESTERDAY, with a foresight on the current trends in the pharmaceutical market,
HETERO has grown from strength to strength, combining its research strengths,
manufacturing capabilities, Human Resources and well established quality
management system. With full-fledged marketing capabilities the company has been
able to market its products in over 80 countries in Asia, Middle east, Eastern, Europe
and Latin America.
With its compliance to the most stringent regulatory requirements, Hetero has
today gained foothold to market. Several of its APIs in the United States, Canada and
Europe. With all six manufacturing facilities being supported by excellent
infrastructure and compliance to the GMP requirements, Hetero has crossed numerous
milestones in a comparatively small period since its inception




The spirit and brain behind the success story of HETERO is its founder
Dr.B.Parthasarathi Reddy, a scientist who started the company drawing
immense strength from the vast and rich experience he gained during his

Stint at the laboratory where he was instrumental in developing and

commercializing processes for several APIs.

The company was started by him with a vision to be recognized as an

aggressive company that combines its strength of R&D and manufacturing
with definite advantages in terms of cost and chemistry with a strong emphasis
on quality of the products.

The untiring efforts of the Chairman saw HETERO develop processes for
several products at relatively low cost, thus making it possible for several life
saving drugs to be available tat affordable prices, meeting all the regulatory and
quality norms.

With the organization having reached a point where it is identified among the
widely recognized companies, the Chairman is now focusing on giving new
dimensions to the company in terms of exploring possibilities of further
growth, exploring new horizons in the field of pharmaceutical development and
evolving strategies to take the company to greater heights

All the members of HETERO Family draw inspiration and motivation from
the Chairman in working towards achieving the organizational goal.



Hetero visualizes itself as an aggressive player in the global pharmaceutical

scenario, supplying generics developed, combining intellectual property,
research strengths and strong human resource inputs.

The company values the concepts of having social responsibilities ion the
course of its assent to greater heights. It strongly believes in focusing on
customer requirements and delivering the products at the right pace.

Hetero considers its human resources as the core of all its capabilities and
believes in tapping and honing the talents of its members to reach the zenith of

It believes in continuous evaluation and improvement in all the factors that

contribute in transforming the organization into a global force to reckon with.

Hetero takes due cognizance to the fact that the processes that it develops
should be all Eco- friendly and should not result in any consequence that harms
the ecological harmony.

HETEROs mission is to be a globally acclaimed pharmaceutical company, meeting
the requirements of healthcare imbibing the philosophy of both commercial and social
concerns, driven by research and manufacturing capabilities.


Strong emphasis on Research and Development.

Ability to develop processes for a large range of therapeutic categories.

Ability to orient and adapt to the changing facets of industry, particularly in

terms of regulations, intellectual property and manufacturing capabilities.

Cohesive team of skilled professionals in all wings related to research,

manufacture and marketing.

Strong customer base and market presence.

A strong commitment towards the society to provide timely support by

providing life saving drugs at relatively low costs, short span of time



Type of Reactors Glass, Glass-Lined and Stainless Steel

Reactors Sizes 250-10,000 LTR Commercial Plant

5-250 LTR Pilot Plant

Total Reactor Volume -- 1000 Kilo Ltr

Temperature Range -- 80degrees C to 300degrees C

Pressure Range -- Unto 50 KG/cm square


HPLCs (with PDA facility)

GCs (with Head space facility)

Infra Red Spectrophotometers

Ultra violet Spectrophotometers

Practical size analyzer

Digital polar meters

Differential Scanning Calorimeters





All the activities at HETERO right from receipt of raw materials to dispatch
of the finished product are carried out in accordance to a well-oiled quality
management system. The importance of having a strong quality based system has been
recognized by organization due to which every individual in each department
understands his/her responsibilities and carries out them with utmost care avoiding any
confusion, thus delivering the best results.


In addition, talking about quality of the product itself, the company has evolved
the systems to implement GMPs in the manufacture of the product to protect the
safety, quality and integrity. The approval of Heteros API Facility by USFDA and
Finished Dosage Facility by WHO bear a testimony to this fact.


HETEROs emphasis has always been on Research and Development. The

emphasis was to ensure that the processes being adopted for the products are
cost effective, safe to handle and with optimum advantage in terms of yield and

Having laid solid foundation towards the end HETEROs R&D approach has
also taken cognizance of the present scenario where stringent patent regime is
under implementation. HETEROs teams of scientists have been and are
involved in developing non-infringing processes for its products. With its
ability to explore high and achieve the best, HETERO has been able to file
patents for several of its processes.

From an organization, which was concentrating on developing processes for

APIs HETERO, has now a full-fledged R&D facility for formulation

HETERO research capabilities have been proven with its ability to carry out a
wide range of reactions, which are difficult to carry

Given its research capabilities HETERO has today has initiated contract
research. Towards the end, the company has already evolved its strategies and
is into discussions with renowned companies for carrying out the contract
research. Custom synthesis is one area where the company has been
concentrating on and has initiating work on several projects.

In addition to the above, the company is now on the threshold of commencing

basic research activities to develop and screening new chemical entities for
different therapeutic categories.




Receipt, Storage, Handling&Distribution of Raw Material.

Handling &Disposal of Raw Material.

Writing Pharma Distribution.

Cleaning of Dispensing equipment.


Raw Material distribution from Warehouse to Production

Handling of Hosepipes& their periodical change

Handling of Desiccant bags

Receipt, Storage, Handling and Distribution of Raw Material
Receipt of Raw Material:
Upon receipt of rawmaterial the following checks can be taken up:

Whether the rawmaterial is recorded as per the purchase order.

Whether the consignment is supplied along with the certificate of analysis by

the vendor.

Whether the vehicle carrying the consignment is clean

In case of tankers carrying liquid rawmaterial, check whether the valves and
manholes are free from dust, grease or any other lubricant

Above the all conditions are not fulfill the consignment is rejected.


Storage of Raw Material:

After de-dusting bring the decoding list and deface the original name of the
material on each container or bags and write in-house code of the material.
Before defacing check the label on each container for vendor batch number and

Transfer the material to quarantine area. Enter the details into the inward
registar. Allot the in-house batch numbers to the consignment.

If the number of containers shall be less than 25 then the under test label shall
be pasted on all containers. If it is more than 25 then the under test labels shall
be pasted along four corners of the consignment.

Sampling and Testing:

The warehouse personnel shall then raise a raw material alert to Quality
Control for sampling and analysis of the consignment

The Quality Control personnel shall paste the sampled labels on the containers
from which the samples were taken.

The Quality Control personnel shall paste Approved/Rejected labels on the

yellow of the under test labels of the consignment.

Storage and Handling:

Raw Material shall be stored in such a manner that proper spacing between
different lots of the same material and also different material to avoid crosscontamination between the materials.

Inventory cards along with the raw material alert and pre-inspection report
shall also be placed along with the status boards.

Special storage conditions are essential for the raw material say low
temperature and low humidity


Distribution of Raw Materials:

On receipt of the raw material request from the production
department the warehouse personnel shall issue the requisite
quantity of raw material to the concerned production department.
The warehouse personnel shall then enter the details of issue of the
material in the inventory card.
While issuing the material to the production department, the
warehouse personnel shall follow the First In First Out system.
Re-testing of Raw Material:
Raw materials being stored for longer periods of time shall be retested from time to time i.e., within 5 days of re-test date.
Handling and Disposal of Rejected Raw Materials
In case of rejection of any consignment subsequent to the analysis,
the quality control personnel shall paste Rejected labels on the
The warehouse personnel should inform to the materials department
regarding the rejection of consignment and ask the material
department to dispose the material within 30 days in case domestic
vendor, while incase of overseas vendor material shall be disposed
within 90 days.


Writing Pharma Distributioin

After receiving the goods transfer note from the production department it
is the responsibility of the warehouse personnel
Check the batch number, quantity
Ensure all the details mentioned in Goods Transfer Note are correct
and check all the required labels are pasted on the drums.
After confirming all the above details enter the details in the
Pharma Distribution

Cleaning of Dispensing Equipment

All the dispensing equipment like scoop, measuring jars, funnels
and buckets barrels pumps etc should be cleaned after their use.
After completion of dispensing operations transfer the dispensing
equipments to wash area and rinse the dispensing equipment with
water after wearing goggles, nose masks and hand gloves.
Cover the hosepipe ends, scoops, funnels, buckets etc and pump
end with clean polythene bag/rexine cover and keep the dispensing
equipment in their dedicated area.


De-dust the entire area using nylon soft broom.
Mop the floor with clean cloth if not satisfied repeat it again.
Frequency-Everyday in the first shift
Sampling Room:
Clean the room before arranging for sampling to Quality Control.
Follow the cleaning activity in between two different materials
Clean the walls, doors and floor with dry cloth, collect the dust and
dispose it into a dustbin, if not satisfied repeat it again.
Details shall be entered in the sampling and sanitation record.
Frequency-Every after sampling operation
Dispensing Room:
Clean the room before starting dispensing activity and after
completion of every dispensing operation.
Use vacuum cleaner to suck all dust.
Mop the floor with water and allow to dry if not satisfied repeat it
Details shall be entered in the sampling and sanitation record.
Frequency-Every after dispensing operation


Raw Material Distribution from Warehouse to Production

After receiving raw material requesting check whether all details
are entered or not.
Raw Material shall be taken into the dispensing room. Material
shall be taken using a clean scoop and tie the bags tightly after
A tag shall be assigned there remaining quantity of the material and
the details shall be entered in the inventory card.

Liquids from Drums:

Drums shall be cleaned with a clean cloth and open the lid with
drum opener.
Measure the volume with guage rods/measure jars/buckets/by
Transfer the required quantity of solvent by using PVC siphon
pipe/barrel pump and drums shall be closed tightly.
Liquids from Tanks:
Check the day tanks/measuring tanks for the volume.


Ensure that the solvent valves in the alter production blocks are
Measure the required volume of liquid raw material in measuring
tank then open the valves from measuring tank.
Close all the valves of measuring tank and enter the details in the
inventory card.

Handling of Hose pipes and their Periodical Change

All the hosepipes shall be colored as mentioned in the Annexure.
Before starting of operation the hosepipe shall be cleared with 5 to
10 liters of the same solvent and discard it.
Upon completion of operation, when not in use, the ends of the pipe
shall be covered with rexine covers/polythene bags and store at the
designated place keeping both the ends of the pipe facing down.
Hosepipe shall be checked monthly once and if any damages the
pipe shall be discarded and new pipe shall be used.
Enter the details of checking and replacement of pipe in the record.
Pipes shall be replaced with new one after completion of 3 years of
Handling of desiccant bags:
Place the Desiccant bags in secador desiccators cabinet.
If the humidity is>40% activate the desiccant bags by drying in a
oven for 1- 2 hrs at90degrees to 105degrees centigrade
Always maintain humidity below 40%


At the time of issuing desiccant bags check the humidity if it is

>40% activate the bags as mentioned above& then use only
Record the receipt& issuing details in the inventory card.
HETERO considers its Human Resources as its core strength. The
company believes in the fact that its present position as an
aggressive player can be attributed to the efforts on part of all its
employees working in different departments in realizing its goal of
being a Top Notch Company.
The Company offers the best of the opportunities to work, where
the potential and capabilities of personnel are tapped to the
maximum advantage of both the organization and the personnel.
The latent talents are honed to meet the challenges faced by the
organization and achieve the best.
HETERO believes in recognizing and rewarding contributions of
its employees to meet its staff requirements, HETERO has several
openings in different departments for those who are ready to take up
the challenge and deliver the goods.


Corporate Office
Hetero House,Erragadda,
Tel: +91-40-23704923/24/25
Fax: +91 40 23704926,
E- mail:




19 Loyang way
#02 03, C.I.L.C Building
Singapore 508724
Tel: (65)65458442/65467901
Fax: (65)65458443

607/608,6th floor, Matharu Arcade

Subash road, vile parle (E)
Mumbai - 400057
Tel: +91 22

E Mail:






Employee Awareness of Rewards and Recognitions provided by

Opinion of Employee



Opinion Percentage




The above table depicts respondents view point to the extent of

awareness of Rewards and Recognition 60% of them is totally aware of the
Rewards and Recognition. 35% of them are partially aware of the Rewards and
Recognition and few 5% are not aware of the Rewards & Recognition.

From the above analysis we infer that of them are totally aware of the
Rewards provided for employees in the HETERO DRUGS , very few are not
aware due to the communication gap and also few of them are not clear about
what comes under rewards.

Employee Awareness about Rewards and Recognitions in HETERO

DRUGS Comparison with other Companies.


Opining of emp.


In Diff.



Bajaj Allianz





Opinion %


The above table depicts respondents view points to the extent of awareness of
Rewards and Recognition in their companies. In HETERO DRUGS 60% of
their employees are aware of the total Rewards and Recognition. In ICICI Bank
70% of their employees are aware of Rewards and Recognition. IN Bajaj
Allianz 50% of their employees are aware of the total Rewards and
Recognition. In Virtusa 45% of their employees are aware of the total Rewards

and Recognition.

From the above analysis we can infer that the employees of HETERO DRUGS
are well known about their Rewards and Recognition compared with ICICI
Bank it is something less.
3. Employee Sources to known about the new Rewards & Recognition.


of Through



When necessary





Bajaj Allianz





From the above analysis we know that the most of the employees of the
difference companies knowing about the new Rewards and Recognition through
websites. Because every organization is providing computer with internet to
their manager and executives hence many of the employees get the information
through the websites. Some of the respondents knowing through the superior
and & co-workers, very few respondents know when the necessary time com

Employees Opinion on Rewards & Recognition Provided by their

HETERO DRUGS providing the various Rewards & Recognition to

their employees like incentives, bonus, awards, certificates, promotions, etc.

Opinion of employees at















Bajaj Allianz









different companies

From the analysis only the 15%-30% of the employees are enjoying with
the Rewards and Recognition provided by their organization. Many respondents
say average. Overall many people are satisfied but not fully satisfied.



Number of Employees received the Rewards and Recognition for

their performance.

Opinion of Employees


% of the emp. Who received the 90


Rewards & Recognition

From the above table we depict that the 90% of the employees received
the rewards for their performance. Only 10% people not received.

From the analysis we come to know that

many of the employees

received the Rewards and Recognition for their excellence performance. Some
of the employees not received any Rewards & Recognition those who are
recruited newly.



Number of Employees Received Rewards and Recognition in

HETERO DRUGS comparison with other companies.

Opinions of Employees



% employees who received 90






the Rewards & Recognition

From the above table depict that 90% of HETERO DRUGS employees
are received the Rewards and Recognition for their performance. In ICICI bank
80% of their employees are received the Rewards and Recognition from their
company. In Bajaj Allianz 85% of their employees received the Rewards from
their company. In Virtusa 55% of their employees received the Rewards and
Recognition from their company.

From the analysis we come to known that the HETERO DRUGS
laboratory providing the more rewards to their employees compared with other


Employee Preference on Rewards and Recognition in Comparison

with other Companies:


Opinion of employee of







difference companies
Bajaj Alianz

From the analysis we came to know that the many respondents of

different industries prefer both the Rewards and Recognition. Some employees
prefer the recognition and the very few are prefer the only rewards.

8. Employees Opinion about the motivation level.

To motivate the employees morale HETERO DRUGS

declared some

motivational awards and rewards. These Rewards and Recognition are given for
the outstanding performance of the executives as well as the non executive
employees. The different awards are:
1. Spirit of excellence award 2. Chairman's excellence award 3. Team awards
4.Special Recognition awards.
Opinion of employees






Opinion %





The survey reveals that the employees are motivated by these

Rewards and Recognition is average. That the employees are not motivated that
to expected range of DRL.


Employees Motivation level of HETERO DRUGS comparison with

other companies.

Opinions of Employees



Motivation level in %








From the above analysis we came to know that the motivation level in
DRL is very low compared with ICICI bank and Bajaj Allianz. In ICICI and
Bajaj Allianz, their employees are more motivated with their Rewards &
Recognition compared with virtusa, something great in DRL.

10. Employees Opinion about Satisfaction level in HETERO DRUGS

Opinions of Employees





Opinions Percentage






The survey reveals that the employees are satisfied by the Rewards
& Recognition is average 50% of employees are satisfied highly. But 15% of
the employees are satisfied very low.

11.Satisfaction level in HETERO DRUGS Comparison with other








Opinion %









The survey reveals that the employees satisfaction level in
DRL is above average when compared to Bajaj Allianz and Virtusa. Compared
to ICICI Bank, employees of DRL was less satisfying with their Rewards &


Employee Opinion about the success of organization largely

depends on the Rewards & Recognition System.

Opinions of Employees










Bajaj Allianz









From the above analysis we came to know that the many respondents of
different industries agreed up on the success of their organization is largely
depends on the Rewards and Recognition. 15%-30% of the respondent saying
that the company is partially depends upon the Rewards and Recognition
system of their company.
From the analysis we can come to know that the Rewards & Recognition
followed by the DRL is very effective to success of DRL.



Here the management provide good Rewards & Recognition. Highly








In this organisationanization the canteen run by co-operative


The organisationanization maintain beautiful garden.

The organisationanization provide training facilities for employees
for improve their communication skills, moral values, ethics, safety
programmes etc.
The organisationanization provides excellence housing facilities for
employees. So many employees satisfied with these housing
The hetero drugs Ltd provide good working conditions and good
working environment.


This organisationanization got so many awards for employee safety.

This organisationanization maintain suggestion box in each
department for take workers opinions & suggestions about their
welfare activities, working conditions and other also.

This organisationanization provide good medical facilities for

workers & their wifes. But workers want medical facilities for their
childrens also.
This organisationanization does not provide any education facilities
like schools, library etc. for workers childrens.

The hetero drugs Ltd provide so many social activities like clubs,
participate in improving facilities like roads, water etc.
This organisationanization provides loans for employees in the form
of co-operative stores.
This organisationanization provides festival advances, pension
scheme etc.



1. There should be a permanent display about the rewards and recognition to

make clear awareness among the employees about the different rewards
provided in their organization.

2. Most of the rewards and recognitions provided to the managers &

executives only. The companies should also provide to the employees.

3. The management should conduct the survey to collect the opinions of

employees regarding the rewards and recognition to know their satisfaction
level. So, as to improve the effective reward system.

4. The workers representatives should be involved in management decision

making process regarding the rewards and recognition.

5. The management should update its rewards systems in order to motivate the
employees from time to time.

6. The management is encouraging the employees for their outstanding

performance and at the same time it should have perfect counseling for the
employees who are about to reach their target.


7. The rewards and recognitions provided by the organization should be

satisfaction as the success of the organization largely depends

8. The training and relation should be improved and trade union should
actively participate in where ever the workers are brutally suppressed.

9. Reward revision should be facilitated as per needs/requirements. Timely

rewards revisions reduce 100% problems.

10. The employee not only wants rewards and recognition he or she also wants
to be free from stress and reduce his fatigue. The management should help
him by adopting yoga practice in the organization.


1. The awareness of employees about Rewards and Recognitions was high.
ICICI a bank i.e. of 70% where as it is 60% at HETERO DRUGS a
pharmaceuticals and Bajaj Allianz stands next with a percentage of 50%
when it is only 45% at vistusa.
2. Most of the employees know about new rewards and recognitions through
website and very less % of employees through their superior.
3. The employees expressed this satisfaction to a greater extent even though
there is a certain dissatisfaction among the workers regarding rewards
4. Almost of the companies either is may be pharmaceuticals or insurance or
banking are providing the rewards and recognition to their employees
performance but not for only others like seniority.
5. Every employee wants tax come out with best results as it was proved as
90% of HETERO DRUGS , 80% of ICICI, 85% of Bajaj Allianz, 55% of
virtusa received the rewards and recognitions provided.
6. The learned employees want to earn not only rewards but also recognition.
7. The motivation of employees through rewards and recognitions is very low
at HETERO DRUGS when compared with ICICI & Bajaj Allianz.
8. Almost 85% of the employees believe that the success of any organization
largely depends on rewards & recognition system.





Company Profile

Rewards & Recognition

The House Magazine of


Human Resource Management -

Subba Rao

Human Resource Management


Strategic Human Resource Management

- Tanuja Agarwala

Human resource management

Biswajeet Pattanayak












Which type of Rewards and Recognition are provided to you?

a) Monetary


Is your company providing you any Rewards and Recognitions?




b) Non monetary

c) both

Are you aware of all the Rewards and Recognition provided to you by
the organization?
a) Yes


b) No

c) Partially.

How did you come to know about any new Rewards and Recognition
being introduced in the organization?
a) Through superior
c) Through websites


b) Co-workers
d) when necessary comes

What is your opinion on Rewards and Recognition provided by your

a) Excellent

b) Good

c) Average

d) Satisfactory



Did you get any Rewards and Recognition for your performance in
your organization?




If yes what are they?


Which type of Rewards and Recognition do you prefer more?

a) Monetary


b) Non monetary

c) both

What is the motivation level of you through these Rewards and

Recognition provided by your organization?
a) 0-25%


b) 25%-50%

c) 50%-75%

d) 75%-100%

What is the satisfaction level of you through these Rewards and

Recognition provided by your organization?
a) 0-25%


b) 25%-50%

c) 50%-75%

d) 75%-100%

Do you accept that the success of your organization largely depends on

the Rewards and Recognition system followed by your company?
a) Yes


b) No

c) Partially.

What are the different monetary rewards provided to you?