Professional Documents
Culture Documents
Submitted to:
Mr. Zaheed Husein Mohammad Al-Din
Senior Lecturer
BRAC University
Submitted by:
Name ID
MD Hamja Islam 16304129
Nowshin Reza khan 16304054
Afrida Hossain 16204083
Mehnuma Islam Pretty 16304032
Mehedi Akter Mim 16104075
Abid Mansur Haque 16104073
To
Mr. Zaheed Husein Mohammad Al-Din
Senior Lecturer
BRAC Business School,
BRAC University.
Yours sincerely,
Md Hamja Islam
Nowshin Reza khan
Afrida Hossain
Mehnuma Islam Pretty
Mehedi Akter Mim
Abid Mansur Haque
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TABLE OF CONTENTS
2 Introduction 5
3 Purpose Statement, Objectives, Scope, Limitations 5
4 Overview of the Industry 6
5 Overview of the Company 7
6 State of Industrial Relations and Disputes in the Company 7
7 Techniques used to settle disputes 13
8 Recent Disputes settled in the Company 16
9 Effectiveness of the techniques 16
10 Recommendations 18
11 Conclusion 18
12 References 19
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Executive Summary
Bangladesh is a developing country in south Asia. Its economy depends mostly on agriculture. In
the earliest period jute and tea industry were very raising industry. But the scenario is changed.
Now our economy mostly depends on Ready Made Garments industry. Apart from garments
industry Pharmaceuticals industry is a raising industry in Bangladesh. So the scenario is
changing. Now there are 225 registered pharmaceutical companies in our country. Most of them
are local, but there are also some multinational and joint venture companies operating their
business in our country. They are also contributing to earn foreign exchange in our country.
Renata is one of the most leading pharmaceuticals company in Bangladesh. Its corporate
headquarters is at plot no- 1, milk vita road, sec- 7, mirpur and it has two production sites (one is
at Mirpur and another is at Rajendrapur). Modern sophisticated machineries and highly qualified
and skilled professionals are the main instrument for this Renata’s success. In this report we have
gone through the overall dispute settlement process in Renata Pharmaceuticals company ltd.
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Introduction
Renata Limited (formerly Pfizer Limited) is one of the leading and fastest growing pharmaceutical
and animal health product companies in Bangladesh. The company started its operations in 1972
as Pfizer (Bangladesh) Limited. In 1993, Pfizer transferred the ownership of its Bangladesh
operations to local shareholders and the name of the company was changed to Renata Limited.
Renata currently employs about 2300 people in its head office in Mirpur, Dhaka and its two
production facilities in Mirpur, Dhaka and Rajendrapur, Dhaka. The principal activities of the
Company are manufacturing, marketing and distribution of pharmaceutical and animal health
product.
1.2 Scope:
Get chance for better understanding in industrial dispute settlement process.
1.3 limitations:
After giving utmost effort to prepare the report, there are some limitations of the Study. Such
are as follows-
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Overview of the industry:
Pharmaceutical Industry of Bangladesh.
To ensure peoples body fitness there is no other alternative of medicine. So, we have to depend on
the pharmaceutical’s companies. There are many types’ pharmaceuticals in our country. However,
private and public pharmaceutical is the most common in this field. Pharmaceutical industry of
Bangladesh is one of the most raising high tech industry’s which contributes in the country’s
economy. After the promulgation of drug control ordinance – 1982, the development of the sector
was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists
working in this industry is the key factors for these developments. Due to recent development of
the industry we are exporting medicine to global market including European market. The sector is
also providing 95% of the total medicine requirements of the local market. Leading pharmaceutical
companies are expanding their business with the aim to expand export markets. Recently fewer
new industries have been established with high tech equipment and professionals which will
enhance the strength of this sector. Bangladesh, currently having more than a couple of hundred
manufacturing facilities with huge potential in pharmaceutical formulations, is heading on a new
path of industry economics for self-reliance. Aiming at minimizing the import dependency on
basic drugs, the country’s prime concern is about building up of own capability in the
manufacturing of active pharmaceutical ingredients, base materials and other Allied industry
inputs. The pharmaceutical sector is capturing near about 12% of market capitalization which is
the second largest. This position also indicates the positive sign for investment in pharmaceutical
sector. The combined capacity of the industry for the pharmaceutical formulation is huge and a
number of companies have recently got approval from UNICEF as its global as well as local
supplier of pharmaceutical products. Besides, out of the total domestic requirement of medicines
almost 95% is met by the local manufacturing and Bangladesh also exports formulations to 27
countries around the world. The current turnover of the industry in Bangladesh is TK. 3000 crore.
According to industry sources, the formulation industry in Bangladesh country grow and the rate
of 22%. Today, Bangladesh is dealing with USA, India, Taiwan, Hong Kong, European Union,
Singapore, Malaysia, Pakistan, Thailand, and Burma, Nepal, Yemen, Vietnam, Mexico, Colombia,
Russia, Kenya, Maldives etc. as well as with the least developing countries where there is hardly
any industry for the production of pharmaceutical formulations. Total turnover is about 14% from
pharmaceutical industry. This position also indicates the positive sign for investment in
pharmaceutical sector. However, the trend is now favorable to the country as the domestic
pharmaceutical industry as well as the companies from neighboring countries like India, China
and even MNCs have queued up to put in investment on this front as every stakeholder will be
benefitted of vast potential that Bangladesh can offer. The local entrepreneurs are capable and
willing to invest and collaborate with suitable foreign partners in order to develop the existing API
manufacturing facilities. According to S M Shafiuzzaman, president of Bangladesh Association of
Pharmaceutical Industries (BAPI), since 1972 the association has been the only recognized
association for pharmaceutical manufacturers of Bangladesh playing pivotal role in the
development of pharmaceutical sector. The apex and premier pharmaceutical trade and promotion
body of Bangladesh has been very actively working on the industry development programs to
enhance the existing capabilities and also to promote the countries industrial opportunities among
the developed world by attract perspective collaborators in terms of technology, product sourcing
infrastructure etc. Presently top pharmaceutical industries in Bangladesh are also in the progress
of getting into bulk drug production with collaborative technology, technology transfer and joint
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venture basis. The large-scale players in Bangladesh pharmaceutical industry currently include
Square, Beximco, Incepta, Opsonin pharma ltd, Apson chemicals, General pharma, Hudson
pharma among others. The MNCs that have a major presence in the country’s Pharma sector are
Aventis, Renata Limited, Novartis and Astra Zeneca.
In the economic development of any country a process is followed in recent time by shifting
from Agro based Economy to Industrial Economy. Although in the least developed countries
(LDCs) policymakers have, at various times, approached to make agriculture the primary
concern of economic growth and employment generation and this attempt has not worked due
to the contributions of the Green Revolution, which has had the dual effect of increasing
agricultural productivity in the LDCs and displacing the rural labor force at the same
time. Bangladesh is one of the representatives of LDCs, has also been following the
same direction for the last more than two decades. New rules had come to govern the
pharmaceutical industries, allowing low-cost suppliers to gain a grasp in Afghanistan,
Belize etc. markets.
Industrial relation
Industrial relation means the relation between the employer and worker, worker and worker.
It is based on the provisions of the industrial relations ordinance, 1969 which had been
the industrial relations law in Bangladesh since 1969. It is promulgated to amend and
consolidate the law relating to formation of trade union, regulation of the relations between
employer and workmen and the avoidance and settlement of any difference or dispute
arising between them or matters connected therewith and ancillary thereto. An industrial
relation system consists of the whole gamut of relationship between employers and
employees and employers which are managed by the means of conflict and cooperation. A
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sound industrial relations system is one in which relationships between management
and employees (and their representatives) on the one hand, and between them and the state
on the other, are more harmonious and cooperative than controversial and creates an
environment conducive to economic efficiency and the motivation, productivity and
development of the employee and generates employee loyalty and mutual trust.
The concept of employee relations also spans through various efforts of the organization to
ensure that a wholesome relationship exists between the manager and the employee. This duty
is committed to the Human resource management of the company. In a company with good
employee relations, there is the assurance of treating employees with all fairness. The
company also has frameworks and structures in place to bolster the relationship between
employees and managers, as well as mediating issues that might arise in the course of work.
Human resource management issue is now a vital element for Renata Company. It is especially
obvious for the manufacturing industries. Human resource policy of Renata Limited will ensure to
retain the best and effective employees at all level of the hierarchy. Now in the competitive global
market human resource is the most welcomed resource than other resources. So to motivate and
update the employees of Renata Pharmaceutical Limited it has developed. Its own compensation
policy, training and development policy, recruitment and selection policy, and career development
policy and soon. It is believed that through utilizing the human resource policy it will able to attract
and retain more employees to reach its target within a short period of time.
Employers must provide employees necessary tools for their success and their betterment. They
should give them or arrange for them an orientation training to help them. These training or
briefing will help employees to adjust with a new culture or new environment. Many HR
departments also arrange leadership training. Administration preparing might be expected of
recently enlisted and advanced chiefs and directors on points, for example, execution
administration and how to deal with worker relations matters at the division level.
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Employee Relations
After completing the study, it’s clear that the employee relations in pharmaceutical companies are
almost same. The employee relations in Renata are handled by the strict rules or regulations (Code
of Conduct). The employee relations are written in details in it. The code of conduct has been
adopted in order to describe the following standard of Renata Limited:
Execution Management is the way toward making the workplace empower to perform to the best
of their capacities. Execution administration is a persistent procedure of distinguishing, estimating
and creating execution in associations by connecting every individual's execution and destinations
to the association's general mission and objectives. It is a progressing procedure of correspondence
between an administrator and a worker that happens consistently, in help of achieving the vital
targets of the association. Execution is comprehended as accomplishment of the association in
connection with its set objectives. Armstrong and nobleman has characterized execution
administration as a vital and coordinated approach in conveying maintained accomplishment to
associations by enhancing execution of individuals by building up the capacities of groups and
people.
There are many advantages associated with the implementation of a performance management
system. A performance management system can make the following important contributions:
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Renata Limited is concentrating on competitive compensation package for its all level of
employees to ensure to retain and motivates its employees. To gain competitive advantage it has
conducted salary survey. It is highly encourage performing its employees the best because Renata
Limited will maintain performance based compensation system. On the other hand, promotion and
salary increment will obviously depends on the performance of the employee in a fiscal year. Other
allowances will be provided based on the organizational hierarchy.
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a) Politicization of the trade union: Politicization or political affiliation of trade unions
prevents them from becoming strong partners in collective bargaining. Politicization
of a trade union also causes the loss of its distinct identity
b) b) Lack of awareness: most of the workers do not know what are trade union and their
right to form trade union. They do not know what collective bargaining agent is and
what its function is. Lack of awareness of the worker helps the employer to deprive
form their right;
c) c) Division of trade union: Bangladesh is a country where every organization has more
trade unions in name only, 12 which increases conflict between the workers,
d) d) Lack of solidarity: Lack of solidarity among trade unions, provincialism, patronage
of vested interest groups and internal conflict are some of the reasons that have led to
the fragmentation of trade unions. The trade unions must be free from influences from
political groups, government and owners.
Collective Bargaining
Collective bargaining of Renata limited permits workers to achieve a form of workplace
democracy and to ensure the rule of law in the workplace. Workers gain a voice to influence the
establishment of rules that control a major aspect of their lives.
Employee rights
Workers in the pharmaceutical industry suffer from employment violations every day. Multiple
laws protect victims of wrongful termination, discrimination, physical harassment, and retaliation
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etc. Several rights in terms of pharmaceutical industry as well as also applicable for Renata
Pharma, could be like:
Pharmaceutical representative: Employment laws protect pharmaceutical
representatives at work. Pharmaceutical representatives work under different conditions
than employees at corporate offices. For example, Pharmaceutical representatives may face
harassment from doctors or from their supervisor during ride along.
In certain instances, different laws apply to pharmaceutical sales representatives. They are
not eligible for overtime pay, for instance. But they still receive protections from
discrimination, sexual harassment, wrongful termination, and retaliation.
Wrongful termination: Wrongful termination means firing someone for an illegal reason.
Even in a at will state, employers cannot fire employees for acting as whistleblowers, for
refusing to violate ethical rules, or for filing a discrimination or physical harassment
complaint.
Retaliation: Retaliation occurs when an employer treats someone poorly to punish them
for speaking out against discrimination, harassment, or wage theft. Retaliation laws also
protect whistleblowers from poor treatment, including wrongful termination. When
employees complain about workplace violations or act as whistleblowers, laws protect
them from retaliation. For example, if an employee files a complaint about workplace
physical harassment, their employer legally cannot fire them because of the complaint. This
falls under the category of protected activities.
Equal pay: Paying women less than men who perform equivalent jobs violates the law.
Similarly, it is against the law to discriminate in compensating employees. Equal pay laws
outlaw differences in compensation based gender, race, religion, age, or disability.
Hostile work environment: Hostile work environments can violate the law. This can
include offensive remarks about protected classes, derogatory statements about a gender,
or other hostile conduct that singles out a group of people. The victims of a hostile work
environment do not have to be members of the targeted group. The law protects everyone
from the harm caused by a hostile work environment. Anyone in a company can create a
hostile work environment. Coworkers, supervisors, in other areas, and even vendors may
violate hostile workplace laws.
Whistleblower Protections: Whistleblowers help protect public safety and stop fraud. In
the pharmaceutical industry, whistleblowers can report prescription fraud, which violates
the False Claims Act. Pharma companies cannot promote “off-label” uses of medication.
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This qualifies as defrauding the government. The pharmaceutical industry must follow
ethical protections and regulations, many of which protect pharma employees.
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If, at any time, an employer or a collective bargaining agent finds that an industrial dispute is
likely to arise between the employer and the workers or any of the workers and the employer,
the collective bargaining agent shall communicate its view in writing to the other party.
The dispute of Renata pharmaceutical must be settled first through bipartite negotiation by
deliberation to meet the settlement, and the deadline for the settlement by bipartite negotiation is
no longer than 30 (thirty) working days since the first day of negotiation. If within 30 (thirty)
working days, however, if one of the parties refuses to negotiate or the negotiation has been
conducted but does not reach settlement, then the bipartite negotiation is considered as fail. In
every bipartite negotiation that is held by the entrepreneur and workers of Renata, minutes of
meeting has to be made and signed by the parties. The minutes at least contains:
1. Full name and addresses of the parties;
If bipartite negotiation reaches settlement, both of parties shall make a joint agreement signed by
the parties. The joint agreement is binding and must be obeyed by the parties. On the other hand,
if the bipartite negotiation fails, then one of the parties or both parties can make a written
notification about the dispute and send it to the authorized institution having the responsibility in
labor matter, by attaching the evidences to prove that the settlement through bipartite negotiation
has been made. If the evidence is not attached, the petition will be returned to the applicant to be
completed within the period of 7 (seven) working days since the documents have been received
by the applicant. After receipt of registration from one of the parties or both parties, the authorized
institution in labor matter shall be obliged to offer to the parties to choose whether the settlement
will be performed through conciliation, mediation, or arbitration. If the parties do not choose the
options, within the period of 7 (seven) working days, the authorized institution that have
responsibility in labor matter delegates the dispute settlement to a mediator.
Conciliation:
If bipartite negotiation fails, any of the parties of Renata may request the conciliator in writing, to
conciliate the dispute within 15 days from the date of the failure of collective bargaining. The
practice of conciliation is compulsory in Bangladesh before resorting to industrial action. The role
of the conciliator is to suggest solutions that can help find a compromise between workers and the
management, but cannot impose a solution. The success of conciliation depends on the willingness
of the two sides to resolve their differences. If a settlement of the dispute is arrived at in the course
of conciliation, the conciliator shall send a report thereof to the Government together with a
memorandum of settlement signed by the parties to the dispute. If the conciliation fails, the
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conciliator shall try to persuade the parties to agree to refer the dispute to an Arbitrator for
settlement. If the parties do not agree to refer to the dispute of an Arbitrator for settlement, the
Conciliator shall, within three days of the failure of the conciliation proceedings, gives a certificate
thereof to the parties. The conciliation proceedings may continue for more than 30 days if the
parties agree. The Director of Labour may, at any time, carry on with conciliation proceedings,
withdraw the same from a conciliator or transfer the same to any other conciliator, and the other
provisions of this section shall apply thereto. Although, there are some shortcomings in the process
which prevent the parties from reaching at an agreement. In fact, the statistic shows that in the time
period of 1990-2004, 48.06% cases of conciliation failed. The basic reasons of failure are:
1. The choice of conciliator (or the composition of conciliation boards or committees,
where they are used partiality of the conciliator either in favour of the employers or
influenced by the labour front backed by the ruling party).
2. Tendency to bribe trade union leaders during conciliation.
3. Attendance at conciliation proceedings.
4. Time limits for conciliation.
5. Showing of muscle power by trade union leaders during conciliation.
Arbitration:
Arbitration is a process in which the conflicting parties of Renata ltd. Can agree to refer their
dispute to a neutral third party known as ‘Arbitrator’. Arbitration is a voluntary process for the
settlement of industrial dispute. When conciliation fails, arbitration may prove to be a satisfactory
and most enlightened method of resolving industrial dispute. If the parties agree to refer the dispute
to an arbitrator for settlement, they make a joint request in writing to the arbitrator agreed upon by
them. Subsection 12 to 17 of Section 210 of Bangladesh Labour Act, 2006 explains the rules
regarding arbitration. The Arbitrator shall give his award within a period of thirty days from the
date on which the dispute is referred to him or such further period as may be agreed upon by the
parties to the dispute. After he has made an award, the Arbitrator shall forward a copy thereof to
the parties and to the Government. The award of the Arbitrator is final and no appeal shall lie
against it. An award shall be valid for a period not exceeding two years, as may be fixed by the
arbitrator. In practice no dispute is referred to the Arbitrator due to the fact that either the dispute
is settled at the time of conciliation or in failure the parties feel interested to go to the Labor Court
rather going for arbitration.
Strike
If every process of settling dispute remain unsuccessful, then the workers of the Renata ltd. can
take is step. It is a process where workers of Renata ltd. can stop their work until their demands
being fulfilled by the organization. If the workers want to engage in strike, then two third of the
workers need to attain in the process and they have to proceed a notice during conciliation. A strike
period cannot exceed over 30 days or else, government will prohibit the strike. Any strike will be
considered an illegal strike if it does not follow all the mentioned procedures. Punishment of an
illegal strike includes imprisonment extendable up to one year with or without fine.
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3.0 Recent dispute settled in the company (Renata Pharmaceutical)
The pharmaceutical industry is one of the largest and fastest-growing business segments in the
world. Its importance and influence are expected to maintain growth; Renata having reached a
worth of 934.8 core Taka in 2017, the estimated global revenue is expected to be $170 billion by
2021. The industry provides a wide range of goods and services such as the development of
pharmaceutical products, medical equipment and equipment used in diagnostics. This requires the
key players involved in the industry to devise and maintain commercial legal arrangements, carry
out cross-border transactions, and comply with national and international regulatory requirements.
With its size and value, it is no surprise that the industry players often get involved with complex
and high-value disputes. The pharmaceutical industry is a complex field and consequently,
disputes of a different nature arise.
Intellectual Property Dispute:
The pharmaceutical industry is a research-based industry with a focus on innovative methods to
develop, improve and adapt new and existing drugs, equipment and medical processes. As such,
in Renata pharma patents are crucial to the industry, and patent rights secure investments made
during the research and development.
The market rivals in the pharmaceutical market must also rely on the protection of trade secrets
and undisclosed data in order to maximize their profits and to avoid having their competition use
certain information to their advantage.
Therefore, it is no surprise that Intellectual Property Disputes (‘IP Disputes’) remain a principal
issue and are the most common disputes in the pharmaceutical industry. These IP Disputes usually
involve cases of patent infringements, patent invalidations, and violation of trademarks and trade
secrets.
Conciliation
Conciliation ensures party autonomy. The parties can choose the timing, language, place, structure
and content of the conciliation proceedings. Conciliation ensures the expertise of the decision
maker.
The parties are free to select their conciliator. A conciliator does not have to have a specific
professional background. The parties may base their selection on criteria such as; experience,
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professional and / or personal expertise, availability, language and cultural skills. A conciliator
should be impartial and independent.
Conciliation is time and cost efficient. Due to the informal and flexible nature of conciliation
proceedings, they can be conducted in a time and cost-efficient manner.
Conciliation ensures confidentiality. The parties usually agree on confidentiality. Thus, disputes
can be settled discretely and business secrets will remain confidential.
Arbitration
Arbitration affects equality of access to justice in the workplace. Mandatory arbitration changes
the landscape of employment dispute resolution in a number of important ways, including by
altering the impact of employment laws arbitration changes the structure of rules by which
individual employment rights are enforced. The process of enforcing individual rights in the
workplace becomes subject to the employer's choice of whether or not to adopt mandatory
arbitration and of how any procedure that is adopted is structured. Beyond producing inequality in
whether employees have access to the courts, the employer's decisions determine the type of
arbitration procedure that is adopted, whether an arbitration service provider administers the
procedure, the specific provider of the arbitration procedure, and even whether employees are able
to bring a class action.
Second, mandatory arbitration changes the relative bargaining power of employees attempting to
enforce their individual rights. Whereas a key feature of litigation is that it exposes the employer
to the risk of potentially large damage awards, mandatory arbitration reduces the degree to which
the employer is subject to this source of pressure. There are a number of important procedural
differences that may affect the mixture of cases brought in arbitration versus litigation. But the
overall picture in mandatory arbitration is that the risk of employees receiving large damage
awards similar to those in litigation is substantially reduced.
Third, the smaller potential payoffs to employees disrupt the mechanism of representation in
employment cases. In employment litigation, contingency fee arrangements allow a broader set of
employees to obtain representation by attorneys who finance the cases themselves. Representation
would be beyond the financial means of many individual employees if they had to pay standard
hourly fees. In mandatory arbitration, the lower economic damages reduce the potential payoffs
from contingency fee arrangements, creating a barrier to representation. We find evidence of this
in lower rates of acceptance of potential cases by attorneys under mandatory arbitration.
Fourth, the adoption of mandatory arbitration has mixed effects on the organization of internal
conflict resolution procedures. Some employers do choose to enhance their internal conflict
resolution procedures alongside of adopting mandatory arbitration. Many of these procedures
provide avenues for appeal that resolve significant numbers of potential cases without the necessity
of invoking arbitration. But there is also substantial variation in whether employers adopting
mandatory arbitration also use internal conflict resolution procedures, as well as variation within
the types of procedures they adopt in the workplace. Overall, arbitration disrupts existing
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mechanisms for enforcement of individual employment rights. If arbitration provided a more
effective and accessible mechanism of enforcement, then this might be a trade-off worth making.
5.0 Recommendation
Renata Limited is doing an amazing work of keeping their employees satisfied by settling dispute
as of now. But, there is room for is doing farther improvement in many sectors.
The selection procedure should be made less complex as time is important in this modern
world. In a short time, they must maintain a valid selection process to recruit adroit employees
for their company.
They should add more options for vacations to certain employees who has high position and
good work performance. That way, employees would be enthusiastic about getting paid
vacations or vacations and try to earn that with their performance and good rapport with
everyone in the company.
They should also add compensation packages for people who are disabled so that it benefits
them and also motivates them enough to try to work better. Since times are changing, they
should adjust their compensation strategy a bit more to suit the desires of the new generation.
Besides, they must focus on labor wages so that they can find enthusiasm to do their work
properly. The wage rate should be in a standard range comparing to other industry.
As, there often occurs some disputes in the organization, their management should be more
strict to handle these problems as soon as possible.
Team culture should be introduced in the organization as it makes an organization more
competitive
Overall, Renata Limited is an amazing company with many remarkable features but there is always room
for improvements
6.0 Conclusion
Pharmaceutical companies provide both products and services. Renata is the most known and
leading pharmaceutical company in our country. HRM is a very vast and an elaborate section of
overall management process in any organization. Behind every success or failure HR activities are
considered the ultimate deciding factor. That is why Renata always gives high priority in the
overall HRM practices.
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7.0 References
Text book:
Industrial relation’s theory and practices (fourth edition); Michale Salamon 2016-17
Websites:
https://www.renata-ltd.com
https://www.wikipedia.com
Annual report
Renata Pharmaceuticals ltd. 2017-18
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