1.

Introduction to the Organization

1.1 Brief History

Abbott Laboratories is one of the most seasoned and best pharmaceutical organizations in the
United States. While around 30 percent of yearly incomes originate from the closeout of
pharmaceuticals including Abbott's leader tranquilize, the anti-toxin Biaxin the organization has
a more prominent in the territory of Nutritionals, where its items incorporate driving newborn
child equation brands Similac and Isomil and a main grown-up dietary brand, Ensure. Abbott is
likewise a top maker of therapeutic indicative gear, with an accentuation on blood analyzers and
the recognition and checking of contaminations and ailments. The company's emergency clinic
items unit produces electronic and inject-able medication conveyance frameworks, intravenous
arrangements and supplies, analgesics, and items utilized in basic consideration settings. Abbott's
yearly innovative work spending plan surpasses $1 billion, with regions of accentuation
including AIDS/hostile to viral, enemies of denunciations, diabetes, neuroscience, oncology,
pediatric pharmaceuticals, urology, and vascular prescription.

Abbott Laboratories has its starting point in the late nineteenth century in a little pharmaceutical
activity run from the kitchen of a Chicago doctor named Wallace Calvin Abbott. As did different
doctors of the time, Dr. Abbott generally endorsed morphine, quinine, strychnine, and codeine- -
which were all fluid alkaloid removes - for his patients. Since they existed uniquely in a fluid-
structure, these medications were inclined to decay after some time, alleviating their viability as
medicines. In 1888, Dr. Abbott heard that a Belgian specialist had created alkaloids in strong
structure. Alkaloid pills before long got accessible in Chicago, however, Dr. Abbott was
disappointed with their quality, and he chose to make his own.

Dr. Abbott started to promote his items to different specialists in 1891. So fruitful was his
business that he, in the long run, offered offers to different specialists and joined his activity in
1900 as the Abbott Alkaloidal Company. By 1905, yearly deals had developed to $200,000.
After ten years, the organization changed its name to Abbott Laboratories. During World War I,
Abbott's organization was basic to the therapeutic network, as a few significant medications,
produced solely by German organizations, were never again accessible in the United States.
Abbott created procaine, a substitute for the German no-vocaine, and barbital, a swap for
general.

After the war, Abbott kept on focusing on the innovative work of new medications. In 1921, the
organization built up a research center in Rocky Mount, North Carolina, which built up a few
new medications, including narcotics, sedatives, and nutrients. Considerably after Dr. Abbott's
passing that year, the organization kept on putting vigorously in new item improvement and
forceful promoting efforts. The organization opened up to the world in 1929 about a posting on
the Chicago Stock Exchange. After two years, Abbott extended outside the United States just
because with the foundation of a member in Montreal, Canada.
Schellhorn was additionally credited with advancing Abbott's accentuation on indicative
hardware, particularly blood analyzers. These gadgets were progressively used to identify
legitimate and unlawful substances in the circulation system. Abbott drove the pattern, building
up the principal demonstrative tests for Acquired Immune Deficiency Syndrome (AIDS), in
1985, and hepatitis. The organization's 'Vision' blood analyzer fit on a work area and performed
90 percent of normal blood tests inside eight minutes. Before the finish of the 1980s, offers of
blood examination gadgets spoke to a billion-dollar business, and medicinal analytic items at
$2.3 billion every year established about the portion of Abbott's yearly deals. In the interim, in
the pharmaceuticals field, Abbott in 1987 got FDA endorsement for another medication called
Hytrin for the treatment of hypertension. Hytrin was endorsed in 1993 for the treatment of
noncancerous extended prostate.

Among key improvements in the mid-1990s was the presentation in 1991 of clarithromycin, an
anti-infection created as a successor to Abbott's erythromycin. Showcased in the United States
under the name Biaxin, clarithromycin was valuable in the treatment of normal upper respiratory
sicknesses, for example, this season's cold virus just as different sorts of contaminations. It
immediately turned into Abbott's leader pharmaceutical inevitably accomplishing $1 billion in
yearly deals remaining so into the mid 21st century. New item presentations proceeded in the
center long stretches of the decade. In 1994 Abbott presented sevoflurane, an inward breath
sedative that before long picked up ubiquity because of its wide scope of employment. The next
year, TAP, the joint endeavor with Takeda Chemical, got FDA endorsement for Prevacid, an
ulcer treatment offers of Prevacid came to $1.3 billion by 1998. In 1996 FDA leeway was
allowed for Norvir, a protease inhibitor for the treatment of HIV and AIDS.

Despite these R & D successes, Abbott's earnings were failing to increase at the high-double-
digit rate that they had in the 1980s, and the company was beginning to face the risk of being
gobbled up by a larger rival in the rapidly consolidating healthcare industry of the 1990s.
Shrugging off the conservative management of the early 1990s, Abbott moved aggressively in
the second half of the decade to expand via acquisition and thereby stave off being acquired
itself. In 1996 Abbott bolstered its diagnostics division through the $867 million purchase of
MediSense, Inc., a Waltham, Massachusetts-based maker of blood-testing devices for diabetics.
This was the company's first major deal since the 1964 acquisition of M & R Dietetic
Laboratories. In 1997 Abbott spent about $200 million for certain intravenous product lines of
Sanofi Pharmaceuticals, Inc., the U.S. unit of France's Sanofi S.A. Included in this deal was
Carpujet, an injectable drug-delivery system based on preloaded, single-dose syringes. Also in
1997, Abbott suffered a potential setback when Takeda Chemical did not renew a ten-year
contract that gave Abbott the right of first refusal to distribute Takeda's new drugs in the United
States via the TAP venture. Takeda had decided to set up its own sales and marketing
organization in the United States. By this time TAP was generating annual sales in excess of $2
billion, primarily from the marketing of Prevacid and Lupron, a prostate-cancer drug.
Abbotts core businesses focus on pharmaceuticals, medical devices and nutritional products,
which have been supplemented through several notable acquisitions. The firm currently divides
itself intoseveral divisions:

 Aimal health: Anesthesia for animals and other veterinar products

 Diabetes care: Glucose monitoring devices and medicines
 Diagnostics: Hmatoogy
 Molecular: Analysis of DNA and RNA and proteins at molecular level
 Nutrition: Baby nutrition’s.

1.2 Nature of the company

It’s a health care organization which manufactures FDA approved drugs by Abbott laboratories.

1.3 Organization chart & Number of employees

There are 103,000 number of employees are working in the Abbott Pharmaceutical in 2018.

Organizational chart
1.4 Vision

To improve lives by providing cost-effective health care products and services.

1.5 Mission

The mission of Abbott is to advance in science and technologies in order to improve health and
the practice of health care. They value their diversity of products, technologies, markets, and
people. Abbott focuses on exceptional performance to earn the trust of those they serve and to
sustain their success.

1.6 Values

Values are the foundation for building a meaningful corporate identity. Abbott's core values of
honesty, integrity and fairness describe a standard of behavior expected of every employee.
Abbott has four differentiating values that speak of the unique strengths that have made our
Company what it is today. The Company continues to build on these strengths to deliver our
goals such as leading-edge science and innovative commercialization, Customer-focused
outcomes and world-class execution, making a difference in people’s lives and Commitment and
purpose.

1.7 Goals & Objectives of Abbott Pharmaceutical

Abbott has four strategic priorities that, we believe, best align our citizenship activities and
resources with our business operations. We continue to work diligently in pursuit of these
priorities:

 Innovating for the Future

 Enhancing Access
 Supporting Patients and Consumers
 Safeguarding the Environment

These four priorities provide a clear roadmap for pursuing our responsibilities as a socially
responsible citizen, yet are flexible enough to enable creativity and innovation across our diverse
mix of businesses.

1.8 Products of Organization

Chapter 2

HR Practices at Abbott Pharmaceutical Company limited

Following HR practices being used are:

2.1 HR Division and a Review

Like other departments there is a well-established HR department at Abbott Pharmaceutical

Company. It consists of total 16 people. All the roles and duties are divided among them.

2.2 Job analysis

A job analysis provides a list of the personal attributes required to work effectively in the role.
This list of attributes is identified first by breaking down a person's job into logical parts. Next,
each job task is analyzed according to the knowledge, skills, abilities and attitudes required to
perform the job correctly.

Job Description

From the job analysis and specifications, Employers develop a job description, which is used to
give applicants a feeling for what the job will be like. These are brief position narratives with a
job title, job summary, examples of job duties, supervisory relationships, and working
conditions.

Design Selection Process

Well-designed selection process yields information about a candidate's skills and weaknesses,
enabling the company’s employer to make an informed choice.

Determining Selection Tools

Applicant skills are evaluated through applications, interviews, tests, reference checks, letters of
recommendation, and physicals.

Preparation for tests

At this point the employer converts important skill areas into specific questions or activities for
the application, interview, and tests. Also, questions for the reference check may be drawn up.

Providing Realistic Job Preview

The realistic job preview begins with the job announcement and position description. As
prospective applicants inquire about the job, farm managers provide applications, position
descriptions, and additional information.

Review Applicants' Bio-data

A properly designed application helps the farm check applicants' minimum skills as well as their
employment history.

Conduct tests

Many types of tests are used in Abbott to measure an applicant's qualifications. They can be
classified as written, oral, or practical tests.

Check references

Reference checking involves obtaining information about applicants from previous employers.

2.3 Human Resource Planning

HR planning process at Abbott very comprehensive and it is made on annual basis or on the
basis of need for any nearby project. Every department forecast their employee supply need and
then informs HR department by sending a report. HR department analyze the report and then
send it to the CEO for approval which includes the budgets for this new post.

People are hired on permanent as well as contractual basis. They do both long term and short
term planning. Firstly they hire employees within the organization but when the required skilled
workers are not found within the organization they do external hiring. For this purpose they give
add on their website.

2.4 Recruitment and Selection Procedures

When recruitment is announced then question comes, “what will be the sources of recruitment?”
Abbott usually tries to attract really good and suitable candidates for recruitment. The concern
persons try their level best to find out the sources of recruitment and however, the maximum
possible range of labor markets and other places where from they can obtain qualified and
suitable applicants in term of the required characteristics determined by job analysis according to
their demands. Recruitment is more likely to achieve its objective if recruitment sources reflect
the type of position to be filled. Certain recruiting sources are more effective than the others for
fulfilling certain type to jobs. But while choosing the source, the strength or weakness of the
sources needed to be considered.

Recruitment Process of Abbott

Recruitment refers to the process by which organization locate and attract right people for the
right position. Recruitment is one of the main functions of HR department. Recruitment may take
place by the recruiters of the Organization directly or sometimes it may take place by an
employment agency. To attract applicants through advertising like- online, newspapers,
advertisements placed in windows, through a job center, through campus graduate recruitment
programs etc is a usual part of recruiting process. Generate candidate pool by either internal or
external recruitment methods and evaluate candidates through selection process. Finally
selection of candidates and job offer to the candidates.

In Abbott, recruiters try to find and attract capable applicants. Recruiters identify job openings
through HR planning or request by the manager. Once openings have been identified the
recruiters learn job requirements by reviewing the job analysis information, particularly the job
descriptions and job specifications. Recruiters also may supplement their knowledge about the
job requirements with discussion to the concern manager. Select the recruitment method
depending on the meeting with concern Department Head/ Manager. Either internal or external
recruitment; if internal recruitment presents employees/referrals/temporary workers/contractual
employees/ internee or external recruitment. Select candidates and job offer to them. Satisfactory
level of recruitment is ended up.
Selection

Selection: is a process starts with gathering information from a candidate’s application and ends
with selecting him/her for a particular position of an organization.

Selection Criteria at Abbott

To select the appropriate candidate is very important because more attention is paid to the costs
of poor selection. The selection decision has always been important as the way for a company to
obtain the human resource that is appropriate for the job and company. Abbott created selection
criteria to make the selection procedure easier.

Developing good selection criteria is a very useful technique for outlining the particular needs of
the department for a particular position. This process makes the selection procedure much easier,
specific, straight forwarder and less subjective. The three standards followed in Abbott are
explained below:

 Job Relatedness

Job relatedness means that every standard must be specifically connected to the work to
be performed on the job. All qualifications used to screen applicants in the hiring process
are directly related to the job being filled. If, for example, there is a requirement for a
bachelor's degree, that standard is shown directly related to the position. A candidate with
a Ph.D. in a field not directly related to the position being filled would not be more
qualified than an applicant with a bachelor degree in a related field. If specific knowledge
of budget procedures is given as a requirement, the position must require the application
or use of that knowledge.

 Measurability

Minimum qualifications and selection criteria is always measurable and demonstrable.

That means they can be measured objectively or clearly demonstrated by the applicant or
the applicant's past history. If a selection criterion called for "maturity" or "attitude,"
there might be many interpretations of what those standards mean. Therefore it would be
very difficult to measure the applicant against those vague criteria. A standard such as
"demonstrated ability to work effectively with supervisors, peers, subordinates," would
much more closely fit the requirement of measurability and demonstrability.
 Demonstration of this agility is verified through references, letters of recommendation,
and checks with previous employers. Even a criterion such as "good typist" is not as
easily measurable as "ability to type 60 words a minute with only three errors."

 Successful Completion of Work

Criteria listed as minimum qualifications or selection criteria must be necessary to

perform the work successfully. If a bachelor's degree is given as a requirement for the
job, but it cannot be demonstrated that the actual degree is necessary for the performance
of the job, then a criterion like bachelor's degree or equivalent" is used instead. Relevance
and quality of education may be considered in the selection process but must be shown to
be necessary for the particular job at hand.

Selection Tools

Managing Director or The Chief Executive Officer has sole authority for any selection without
any competitive examination. Otherwise the following procedure is used for selection of
employees in Abbott:

 Written Test

Written Test is only applicable for junior management, unionized and non-managerial
contractual positions. In exceptional cases where specific knowledge and skill areas are
needed to be identified and the interview is not sufficient enough to deal with, written test
is applied as a selection tool.

 IQ Test

IQ Test is applicable for all junior management and non-managerial contractual positions.
HRD is solely authorized and responsible for selecting the question patterns, venue and
time of examination.

 Interview

Following is the standard interview process for junior management, managerial

contractual, unionized employees, and mid-level and senior management positions:

1. For junior management, non-managerial contractual and unionized employees,

interview is conducted in a single phase, but before offering employment, it requires
approval from Head of the Department and HR Manager. The interview board is
consisting of a representative from HRD and a representative from the concerned
department.
2. For mid-level management, interview is conducted in two phases. For the first phase,
interview board consists of a minimum mid-level executive from HR and a senior
 executive from the concerned department. For the final phase, the interview board
consists of the HR Manager and Concern Department Head.
 Signing Authority

HR Manager has sole signing authority for any employment letter up to management grade
Additional Manager, non-management and all contractual employees. The Managing Director is
the sole authority to sign any employment letter for management grade all Manager and above.

Selection Parameters

The job constructs (dimensions) and the sub-dimensions, against which applicants are evaluated
in Abbott for suitability and compatibility, are shown below.

 Communication skills
 Self motivation
 Interpersonal / ability to sell self and ideas
 Leadership potential and skills
 Decision making abilities
 Judgment abilities
 Knowledge / technical skills
 Management abilities

Employment Checklist

The owing documents is obtained from the candidate prior to offering employment letter and
designated person from:

 Application for Employment

 Medical Declaration Form
 Copy of last educational and where applicable, professional
 One copy of passport size photograph
 Curriculum Vitae

Selection Process

The following figure shows a typical recruiting process where switching between tools is a
frequent occurrence.
2.5 Orientation of new hires

To help the new employee in understanding clearly the Abbott Company environment, values,
departmental working and work related policies; an orientation session will be arranged by the
HR Department whereas the concerned head of department or immediate supervisor will be
responsible for imparting necessary job training. This process will ensure that new employees
would settle down comfortably in the new environment and integrate quickly with their
colleagues and co-workers.

2.6 Training & Development of employees

Training

Training refers to a planned effort by a company to facilitate the learning of job related
knowledge, skills, or behavior by employees.

A Learning Organization

Abbott laboratories are a learning organization in which the employees are continuously
attempting to learn new things and apply what they learn to improve product or service quality. It
also requires employees to understand the entire work process and expects them to acquire new
skills, apply them on the job and share what they have learned with other employees. The people
working at Abbott laboratories are very willing to learn new things and apply those new concepts
on their work in order to be expert in their field of work.

High Leverage Training

At Abbott laboratories high leverage training is followed which is linked to strategic business
goals and objectives, is supported by top management, relies on an instructional design model to
ensure the quality of training and to contain costs, and is compared or benchmarked to programs
in other organizations. Everything related to training like:

 Selection of trainee
 Time length of training
  Venue
 Training program design
 Local training or global training etc.

Cost of training is the most important issue that is to be solved. Cost of the program is finalized
after the permission from the Director, after deciding the budget for the whole process the points
mentioned above come into play but it should be kept in mind that it all happens with the consent
of the Director.

Identification of Training

Abbott laboratories has got this performance management system through which it defines
performance, measures performance, which is also called performance appraisal and feeding
back performance information.

Local Training

Local training means to send employees for necessary training within the boundaries of that
particular country. Abbott laboratories Ltd. has a training log which means that for local training
they send their employees to different universities like LUMS and NCA when different courses
relevant to a person’s job are offered. These courses include time management courses, courses
of brand managers etc. Abbott laboratories only considers these couple of high profile
universities and ignores the offers it gets from other universities or business institutions like
PIMS (Pakistan Institute of Management Sciences).

Global Training

Global training means to globally train the employees by sending them abroad.

An Abbott laboratory follows this process as well. For this purpose it has set up a Global
Academy at Sweden where the employees are trained. Not only it sends its employees to the
academy but also it sends them to different seminars and exhibitions conducted in other countries
like Germany, Egypt, and Sweden etc. To get selected for that obviously you have to perform
really well. International conferences of Abbott laboratories are held as well and for training
purposes they send their employees to those conferences so that they gain experience, polish
their skills and broaden their knowledge and vision by interacting with experienced people.

Designing Training Activities

1. Needs Analysis

The first step at Abbott laboratories in order to design the training activities is needs assessment,
which refers to the process, used to determine if training is necessary. Although there are some
basic courses, which are necessary for every employee to learn, but there are some courses which
require needs assessment because they are for a particular job, to enhance low employee
performance, job re-design or employees lack of basic skills, to improve technical skills etc.

2. Ensuring Employees readiness for Training

The second step in the training design process is to evaluate whether employees are ready to
learn. Readiness for training refers to whether

 Employees have the personal characteristics (ability, attitudes, beliefs, motivation)

necessary to learn program content and apply it on the job.
 The work environment will facilitate learning and not interfere with performance.

Creating a Learning Environment

At Abbott laboratories the HR Manager before sending the employee for necessary training
makes sure that he or she knows what is the purpose of the training program, what is expected of
him or her and why is this program significant to learn. This helps the trainee to know where
exactly he can apply those things on the job. At Abbott laboratories most of the training
programs are designed keeping into consideration the employee’s current job so that it is
meaningful for the employee and he does not lose interest and get better with the training. When
an employee at Abbott laboratories is sent to an international conference, seminars, exhibitions
as a part of training he learns by observing others and interacting with experienced people.
Constant feedback is also given to the employee so that he knows that he is not derailing as far as
his performance is concerned.

Development

Development refers to the acquisition of knowledge, skills and behaviors that improve an
employee’s ability to meet changes in job requirements and in client and customer demands.

At Abbott laboratories for employee development they conduct various tests like personality
tests etc. These tests prepare the employees for the future and make them overcome their
deficiencies.

At Abbott laboratories there are three levels:

 Director
 Executive
 Managerial

For the development of the employee they give tasks and assignment to each level and also they
switch assignment for example giving an assignment to an executive, which will be for a director
and vice versa. In other words we can say that at Abbott laboratories there is a tradition of
upward- downward- lateral moves. Lateral moves being rotation of employees along the same
level to make them learn different tasks and assignment which is also called job rotation.

Demotion

Job rotation policy is used in Abbott laboratories. They shift the workers from time to time,
change their assignments and tasks in order to give them experience and keep them motivated. If
a person has to perform a same task again and again he might well feel dissatisfied from the job,
bored and might not give his 100%. In order to keep them motivated and get the best out of their
employees’ job rotation policy helps Abbott laboratories immensely.

Promotions can also play a very vital role in keeping the employees satisfied with their jobs.
Promotions can work as a tool to encourage the employees to work even more hard. When
employee will know that he has the chance to be promoted he will perform extra ordinary, which
will ultimately help the organization

2.7 Appraising & Managing Performance

Performance Management

The means through which the managers ensure that employee’s activities are related with the
organization’s goals.

Performance Appraisal

The process through which an organization gets information on how well an employee is doing
his or her job.

If the performance of the employee is not according to the requirements of the company or he is
lacking in some field then that person is trained so that he should be able to work according to
set standards of the company.

Performance Feedback

The process of providing the employees information regarding their performance effectiveness
and the performance management system actually makes sure that the performance of the
employees are in with the organization’s goals and if there is any deficiency in the employee or
there is a gap between the expectations of organization from the employee and employee’s
performance then to fill that gap the employee is given the necessary training.

It’s not necessary that training is given to the employees who have deficiency in performing their
job but there are some basic courses which every employee has to undergo even those who are
proficient in their jobs. Then there are some courses, which an employee has to go through which
helps him or her to perform the current job with maximum effectiveness and proficiency.
2.8 Compensation & Benefits Policies

Abbott Pharmaceutical Company Limited is committed about maintaining salaries and benefits
that are fair to all employees and competitive in the local market place. The management
monitors changes in the economy and salary market to ensure that the overall compensation
package is sufficient to attract, recruit and retain high quality staff within the financial
capabilities of Abbott. As per Abbott’s:

Principles of Salary

The compensation structure is framed with the objective to attract and retain high quality people.
The guiding principles of the compensation policies are:

i. Individuals background and experience

ii. External pay market levels and trends (determined through compensation survey)

iii. Particular skills requirements of the Company.

iv. Company’s affordability

v. Company’s statutory obligations

Components of Salary

The components of compensation package are:

a) Office Management / In-House

i. Monthly:

Basic Salary, House Rent, Conveyance Allowance, Entertainment Allowance, Utility

ii. Yearly:

 Yearly Leave Fare Assistance

 Yearly Festival Bonus-2
 Yearly Performance Bonus – Paid at the end of the year depending on performance
 Yearly Workers Profit Participation Fund

iii. Long Term:

 Provident Fund
 Gratuity
 Group Insurance Policy
 Medical Benefits (Actual)
b) Field Staff

i. Monthly:

Basic Salary, House Rent, Personal Up-keep Allowance, Public Relation and Work Allowance,
Utility

ii. Quarterly/Yearly:

 Yearly Leave Fare Assistance

 Yearly 4 Festival Bonuses (2 bonus in each festival)
 Quarterly Sales Incentive paid at the end of the year

iii. Long Term

 Provident Fund
 Gratuity
 Group Insurance Policy
 Medical Benefits (Actual)

Payment of Salary

i. Every employee should have a salary account in company-nominated bank. The salary will be
transferred to the respective salary accounts from the Finance Department within 25th of the
month.

ii. If any employee is hired in the middle of a month, the salary will be paid on pro-rata basis and
the salary can be paid in cash if the salary account is yet to be opened.

iii. No advance salary or advance from already earned salary can be distributed to any employee
without written approval of the Managing Director.

Loan against salary

Generally loan is discouraged. Only in extreme cases, depending upon the employee’s
performance/merit/contribution to the company, loan may be considered and approval of loan
will be required from the Managing Director.

Salary Enhancement

Time of Increment

Increment will be paid annually on the basis of evaluation of performance effective from 1 st
January.

Annual Increment
Annual increment is paid on the basis of performance. Performance is ranked in 3 steps:

 step for those who are rated fair,

 2 steps for those who are rated good,
 3 steps for those who are rated very good and outstanding

However, the Divisional or Department Head of Abbott can give special increments as a reward
of exceptionally remarkable performances. In that case, the Divisional Head must mention the
reason for giving such special increment.

Interim Increments

If any employee in Abbott is promoted to higher position with increment of salary or had a
simple enhancement of salary; he/she will not be entitled to annual increment if it falls within
next six months of the promotion or increment. For any increment within six months of
promotion or increment, written approval from the Managing Director must be obtained.

Confirmation and Increment

Eligibility for the annual increment; staff must work as a confirmed employee at least for 3-6
months in the calendar year. The employees must be given at least such increment during
confirmation so that their take home salary does not suffer after contributing to the provident
fund. However, if any employee’s service is confirmed in 4th quarter then he will not be entitling
for the next year annual increment.

Increment during Promotion

If promotion concurs with the normal period of increment i.e. on January 1 then the employee’s
salary first should be adjusted to normal increment and then promotional benefits should be
added to fix the new basic.

Annual/Periodic Payments

Types of Annual/Periodic Payments

A permanent employee will be entitled to receive the following annual/periodic payments

provided by Abbott. If employees fulfill the requirements of getting such payments then s/he will
be paid:

i. Yearly 2 festival bonuses

ii. Annual Leave Fare Assistance

iii. Annual Performance Bonus

iv. Yearly sales incentives

  Festival Bonus

All permanent employees will be entitled to festival bonuses. Amount of bonus will be
equal to two basic salaries for each bonus. Employees regardless to the religion will be
paid one festival bonus during Eid-ul-Fitr, Eid-ul-Azha and the other festival bonus will
be paid during the major religious festival of the respective religion.

 Bonus

Abbott gives five monthly basic salary of an individual employee per annum as bonus to
its permanent employees.

Payment of Bonus

i. An employee who has completed at least six months of continuous service in a year will be
eligible to receive full payment of bonus.

ii. An employee who has not completed six months of service in a particular year will be paid
bonus on pro-rata basis.

 Leave Fare Assistance

i. To support the employee for enjoying their annual leave, Abbott offers Leave Fare
Assistance to all permanent employees. The amount of this annual payment is fixed for
every grade.

ii. This payment should be made to all permanent management staff. For an employee,
who worked for shorter than a year as on 1st January, will be paid on pro-rata basis
calculated from the date of joining.

iii. To avail this payment, employee should take at least 7(seven) days Privilege Leave
which must be approved by the Divisional Head. Payment will be made 3(three) days
prior to leave approved by the Divisional Head.

iv. Leave Fare Assistance is payable to employees regardless the date of confirmation,
but it can be drawn only when leave is taken and the employee is confirmed in permanent
employment & completion of one year services.

v. All department employees will also be entitled to this payment on pro-rata basis
provided that they were confirmed in permanent position.

 Sales Incentive

i. Instead of performance bonus, field sales staff will be rewarded with yearly sales
incentive for their contribution to the company.
 ii. Incentive schemes for each business will be proposed by respective Department Head
during budget preparation for the coming year. This scheme will require approval from
the Managing Director and should be communicated to field force before beginning of
the year.

iii. Based on requirement of the business, Department/Divisional Head may propose and
implement any change of the scheme subject to the approval of the Managing Director.

Medical Facilities

(a) Abbott agrees to provide medical facilities through its Medical Department or Company's
appointed Medical Practitioners to the employees i.e. husband or wife and dependent children
with in the age of 22 yrs also get medical facilities.

(b) Hospitalization is allowed on the advice of the Medical Officer depending on the nature of
illness.

(c) Vaccination, inoculation or similar preventive measures against epidemics, etc., will not be
provided by the Company to all employees and their dependants.

(d) Medical bills are given within seven days from the date of submission to the Company.

(e) In case of emergency, patient is allowed to go to any doctor for immediate treatment and
Company's transport will be provided for all kinds of emergency patient, if available.

(f) Abbott products are supplied from the Abbott Depots or Plant Dispensary when employees
produce the prescription of a retained doctor of the Company.

Provident Fund

(a) Abbott agrees that the rate of employees’ contribution to the Provident Fund shall continue to
be 1/12 of his basic salary every month and the Company's contribution to the fund in respect of
each employee shall be equal to the employee's contribution to the Fund.

(b) On completion of 5 years service, the contribution of the employee and that of the Company
will increase to 10% of the basic salary.

(c) Company's contribution will be paid after continuous service of 3 years.

(d) The Trustees of the Provident Fund will consist of three members from the Management and
two members from the (Union).

Gratuity

(a) Abbott pays gratuity to the permanent male/female employees upon completion of seven
years continuous and confirmed services at the following rate:
 (i) 7-10 years: 1 month's last drawn basic salary X No. of years served.

(ii) Above 10 years: 1.5 months' last drawn basic salary X No. of years served.

(b) The term Basic Salary means the basic salary last drawn by the employees at the time of
detachment from the Company's employment.

(c) In case of disability of an employee, Abbott pays 10 month's last drawn basic salary in
addition to the gratuity that will be payable.

(d) In case of death of an employee, Abbott pays an ex-gratia equivalent to half month's last
drawn basic salary in addition to the gratuity that will be payable.

(e) In case of death of an employee, legal heir/heirs of the employee are entitled to receive
payment of gratuity.

(f) The gratuity will be paid to the entitled employees who will:

 Retire or resign from the services of the Company.

 Retrenched, terminated, dismissed and discharged by the Company. In case of
termination, payment of gratuity will be inclusive and not in addition to what is stipulated
in the relevant law.

These are the main Compensation & Benefits provided by Abbott to its employees.

2.9 Labor Relation

After completing the study, it’s clear that the employee relations in pharmaceutical companies
are almost same. The employee relations in Abbott are handled by the strict rules or regulations
(Code of Conduct). The employee relations are written in details in it. The Code of Conduct is
already discussed. However, in case of conflict, Abbott has Conflict Resolution policy which is
given below:

Negotiation

Employer and employees of Abbott discuss about the complaint and the goal of discussion is to
resolve it.

Fact findings / Arbitration

A neutral person from inside or outside from Abbott analyzes the conflict and recommends his
findings to resolve the problem and settle the issue.

Peer review
Assigned group of employees and managers of Abbott work together to resolve the problem that
have aroused in the company.

2.10 Procedures of Record keeping of Employees

The owing documents is obtained from the candidate prior to offering employment letter and
designated person from:

 Application for Employment

 Medical Declaration Form
 Copy of last educational and where applicable, professional
 One copy of passport size photograph
 Curriculum Vitae

Chapter 3

3.1 Function(s)/Department(s) of Internship

3.2 Week 1

3.3 Week 2

3.4 Week 3

3.5 Week 4

3.6 Week 5

3.7 Week 6

3.8 Learning and Achievements at Internship

Chapter 4

SWOT Analysis of Abbott

Strength of Abbott

As one of the leading organizations in its industry, Abbot has numerous strengths that help it to
thrive in the market place. These strengths not only help it to protect the market share in existing
markets but also help in penetrating new markets. Some of the strengths of Abbott are

 Strong distribution network.

 Strong Brand Portfolio.
 Successful track record of integrating complimentary firms through mergers &
acquisition.
  Strong dealer community.
 Reliable suppliers.
 High level of customer satisfaction.
 Good Returns on Capital Expenditure.
 Superb Performance in New Markets.

Weaknesses of Abbott

 Limited success outside core business.

 Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.
 Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors.
 Need more investment in new technologies.
 Days inventory is high compare to the competitors.
 High attrition rate in work force.
 Financial planning is not done properly and efficiently.

Opportunities

 New environmental policies.

 New customers from online channel.
 Lower inflation rate.
 Government green drive also opens an opportunity for procurement.
 New trends in the consumer behavior can open up new market for the Abbott.
 Stable free cash flow provides opportunities to invest in adjacent product segments..
 The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players to increase its profitability.

Threats

 Intense competition.
 Growing strengths of local distributors also presents a threat in some markets as the
competition is paying higher margins to the local distributors.
 No regular supply of innovative products.
 Shortage of skilled workforce in certain global market represents a threat to steady
growth of profits for Abbott in those markets.
 The company can face lawsuits in various markets given.

Chapter 5

Research Project
5.1 Introduction to the topic

The research paper will probe the role of factors in improving the performance and motivation
level of personnel of investment segment organizations. Owing to the lack of research in
pharmaceutical and healthcare sector, the managers of Abbott don’t know how to motivate
employee. So, conducting this research in pharmaceutical and healthcare sector will help to find
the variables that effect on employee motivation.

This study is to investigate the role of those factors that help in achieving increased level of
motivation for the Abbott Company. Therefore, the main aim of this quantitative research enacts
to examine the effect of rewards, T&D, appraisals, and work environment on employee
motivation. This research is most important and helpful for the Abbot HR executives and
managers and owners of this company because employee motivation increases the organizational
performance and decrease the turnover rate.

5.2 Literature Review

The successful performance of any organization depends upon the higher level of motivation of
its employee therefore; every organization strives to achieve it. In bringing out the personnel
motivation, the managements’ leadership role casts most detrimental effects (Abedinirad&
Hazer, 1995). The motivated employee force gives out numerous benefits including better
productivity, lower levels of absenteeism and staff turnover, improved product quality and
industrial relations. Employees are naturally inclined to contribute towards the company they
work in which makes them naturally motivated. The higher management in an organization tries
to improve and enhance the environment for their motivation (Baron, 1983). Most employees are
motivated to fulfill their innate needs whilst other employees are motivated to fulfill their
psychological and self-actualization need. Aristotle probed seven reasons behind an individual’s
behavior which are nature, chance, habit, compulsions, anger, reasoning and appetite. The
managers should carefully examine its employee so that he can figure out their motives and
motivate them accordingly (Burton, 2012). The training effectiveness has positive correlation
with employee’s job satisfaction, commitment and motivation. (Sahinidis & Bouris, 2007). The
regression analysis performed to find the correlation amongst employees’ performance and work
conditions came out to be positive (Ahmad, 2011). Without employee motivating, the
organization cannot achieve its goals as some lofty outcomes such as product quality, innovation
and creativity are solely associated with employee motivation and cannot be achieved otherwise
(Achim, Dragolea & Balan, 2013). In Pharmaceutical and healthcare sector too, if employees are
not motivated, employee training not vested in effectively can lead to meager performance of the
institutes. The study of the Pharmaceutical and healthcare sector in Pakistan showed that
company employees having less than ten years job experience get motivated by human resource
motivators while company employees with more than ten years job experience get motivated by
non-financial motivators which include recognition, empowerment and promotion. Moreover,
performance and motivation are reciprocal in nature to each other which means not only
motivation effects performance but also performance has effects on motivation (Uddin & Wajidi,
2014). The companies which have higher financial rewards, their employees are more motivated
than companies with lower financial rewards. A study of Pakistan’s Pharmaceutical and
healthcare sector indicated towards five factors including organizational culture, job content,
personal problem, manager’s attitude and financial rewards to be detrimental in this regard
(Saeed, Musawar, Lodhi, Iqbal, Nayab &Yaseen, 2013).

The wide effects of globalization have not left workplace realities unaffected and complexes
them more. Organizations need to cope with the changing motivational needs with changing
workplace realities (Roberts, 2003). Due to the lack of research in Pharmaceutical and healthcare
sector the managers of Pharmaceutical and healthcare organizations don’t know how to motivate
employee. So, conducting this research in Pharmaceutical and healthcare sector will help to find
the variables that effect on employee motivation. Our research will add to the empirical base for
identifying those factors that contribute to employee motivation. We present a methodological
approach to such studies that can be applied to analyses of other organizations

5.3 Research Problem Statement

The purpose of this quantitative research necessarily has to be testing the theory that relates the
regressors (training & development, performance appraisal, work environment, rewards, and
work environment) to dependent variable employee motivation.

5.4 Explanation of Key Terms

Training & Development

The Training generally focuses on improving employees’ performance in their current job while
Development relates to the learning, assessment of motivation and ability that help employees
prepare for future.

Regardless of the type of the training program being implemented, the positive correlation
between employee training and employee morale is see. The general enterprise effectiveness is
also seen to be improved by employee training. Trainings are said to have inflict positive
changes in attitudes of employees towards their organization and work. Consequently, the
organization’s performance is lifted up.

Performance Appraisal

Performance appraisal is the process of study and evaluation of personnel formally and the
performance evaluation as an excellent management tool for recognition of an employee’s
weakness and strengths. The five indicators i.e. reduced employee turnover, emanating feedback
from appraisal and evaluation to improve performance, reduced employee turnover, linkage
between rewards and performance, and increased motivation.
Rewards

Generally, rewards' projects come surprisingly close to remuneration procedures which are
characterized as purposeful accomplishment of compensation framework as a basic coordinating
component that is aimed to praise the efforts of different departments and personnel’s who put
together an effort to accomplish the company’s vital aims and goals. Another research analyzed
that the viable reward framework improves worker inspiration and increment representative
efficiency which adds to all the more likely upgrade hierarchical execution.

Employee Motivation

Motivation is defined thus the willingness to exert high level of effort to search organizational
goals, conditioned by the efforts’ ability to satisfy some individual needs. It characterizes
inspiration as a lot of autonomous and ward connections that clarifies the heading, abundances
and determination of a person's conduct holding consistent the impacts of bent, abilities,
comprehension of an undertaking and the imperatives working in the workplace. Understanding
what spurs workers is one of the key difficulties for directors. Despite the fact that it isn't in any
way, shape or form legitimately to rouse others, it's in any case essential to realize how to impact
what others are spurred to do.

5.5 Significance / Rationale of the study

Our case study will add to the empirical base by identifying the comprehensive role played by
the factors in trivial process of motivation of an employee. We present a methodological
approach to such studies that can be applied to analysis of other organizations.

This study will suggest the following directions for future research:

 Conducting empirical studies on how motivational factors impact on employee

motivation.
 Briefly discussion how training &development positively effect on employee motivation.
So, after this research managers knowledge will be increase about the importance of the
training & development.

Telling how to make easy reward policy and give maximum rewards to employees because
rewards increase employee motivation and employee motivation increase company performance

5.6 Objectives

 Probing impact of training & development on employee motivation.

 Probing impact of work environment on employee motivation
 Finding out impact of performance appraisal on employee motivation.
 Finding out the impact of rewards on employee motivation
5.7 Research Questions/ Hypothesis

Research Question

What are the variables that play positive or negative role on employee’s motivation in Abbott?

Hypothesis

Ho: There does not exist any correlation amongst employee motivation and training &
development.

H1: There does exist a correlation amongst employee motivation and training & development

5.8 Methodology

To conduct this study, Quantitative Research Approach will be used. Secondary data will be
collected based on the findings of published papers, articles, books, prior studies, and the World
Wide Web. The primary data collection will be carried out using a self-designed questionnaire
on all the variables employee motivation, rewards, performance appraisal, good work
environment, and training & development. They are generally less expensive and snappier to
oversee fair and helpful for both analyst and respondent yet then again, they are constrained
concerning data assembled and for the most part have low reaction rate. Each variable has 5
point rating scale; later on we analyzed the data through regression and correlation to check the
negativity or positivity of relation

5.8.1 Research Design

A research design is a blueprint for the collection, measurement, and analysis of data, based on
research questions of the study.

5.8.2 Population

The population for my research was all the employees working in head office of Abbott which
were 2100.

5.8.3 Sample description (sample size, sampling method)

The Sample size of the research was 55. The sampling method which I used for the research
project was simple random sampling because all the population was available.

5.8.4 Tool/Instrument of Data Collection

The Instrument or tool which I used for the research was questionnaire to collect the data.

5.8.5 Method of data collection

Secondary data will be collected based on the findings of published papers, articles, books, prior
studies, and the World Wide Web. The primary data collection will be carried out using a self-
designed questionnaire on all the variables.

5.9 Limitations of Research

The research includes the limited and specific variables. Numerous other independent and
dependent variables also play a detrimental role in increasing or decreasing the motivation level
of the employee.

The research paper would contribute to the stream of knowledge and research in the
pharmaceutical and healthcare sector. In anticipation it is estimated that this paper will instigate
more students to conduct researches in this arena explicitly in the organizations

5.10 Results and Data Analysis (Tables/Figures with Interpretations)

As I have conducted regression from above collected data from Abbott I can claim that employee
motivation and training and development has positive relationship

Regression Statistics

Multiple R 0.139634
R Square 0.019498
Adjusted R
Square 0.00134
Standard
Error 0.533346
Observations 56

ANOVA

Significa
  df SS MS F nce F

0.3054 0.3054 1.0738

Regression 1 55 55 14 0.304704
15.360 0.2844
Residual 54 72 58
15.666
Total 55 17      
 Standa
Coefficie rd P- Lower Upper Lower Upper
  nts Error t Stat value 95% 95% 95.0% 95.0%

0.4426 10.253 2.79E- 5.4265 3.6515 5.4265

Intercept 4.539035 63 92 14 3.651548 21 48 21
EMPLOYEE - -
MOTIVATI 0.1141 1.0362 0.3047 0.1105 0.3471 0.1105
ON -0.11829 48 5 04 -0.34714 67 4 67

REWARDS:

From the collected data we can claim that rewards and employee motivation have a
positive relation

Regression Statistics

Multiple R 0.105804
R Square 0.011194
Adjusted R Square -0.00712
Standard Error 0.632178
Observations 56

ANOVA

Significan
  df SS MS F ce F

0.24432 0.61134
Regression 1 0.244323 3 3 0.437698
Residual 54 21.58107 0.39965
Total 55 21.8254      

Coefficien Standard Lower Upper Lower Upper

  ts Error t Stat P-value 95% 95% 95.0% 95.0%
 6.23923 7.03E- 4.32561 2.22173 4.3256
Intercept 3.273675 0.524692 4 08 2.221731 9 1 9
EMPLOYEE 0.78188 0.43769 -
MOTIVATION 0.105789 0.1353 4 8 -0.16547 0.37705 0.16547 0.3770

Performance appraisal:

From the analysis of above data we can claim that performance appraisal and employee
motivation has a positive relation.

Regression Statistics

0.01759582
Multiple R 2
0.00030961
R Square 3
-
0.01820317
Adjusted R Square 2
Standard Error 0.78807351
Observations 56

ANOVA

Significan
  df SS MS F ce F

0.01038 0.01672
Regression 1 0.010387 7 4 0.897583
Residual 54 33.53723 0.62106
Total 55 33.54762      

Coefficient Standard Lower Upper Lower Uppe

  s Error t Stat P-value 95% 95% 95.0% 95.0%

3.34508770 5.11418 4.27E- 4.65644 2.03373 4.656

Intercept 3 0.654081 1 06 2.033735 1 5 1
 EMPLOYEE 0.02181223 0.12932 0.89758 0.35996 - 0.359
MOTIVATION 3 0.168666 2 3 -0.31634 6 0.31634 6

WORKING ENVIORNMENT:

As we have recorded the data we can say that working environment and employee
motivation has a positive relation.

Regression Statistics

Multiple R 0.013378
R Square 0.000179
Adjusted R Square -0.01834
Standard Error 0.535573
Observations 56

ANOVA

Significanc
  df SS MS F eF

0.00277 0.00966
Regression 1 0.002773 3 6 0.922044
0.28683
Residual 54 15.48929 9
Total 55 15.49206      

Coefficient Standard Lower Upper Lower Up

  s Error t Stat P-value 95% 95% 95.0% 95

8.56003 1.24E- 4.69623 2.91384 4.6

Intercept 3.805038 0.444512 2 11 2.913845 1 5 1
EMPLOYEE - 0.92204 0.21853 0.2
MOTIVATION -0.01127 0.114625 0.09832 4 -0.24108 9 -0.24108 9

Key Findings and Conclusions

In this study we have studied employee motivation and factors affecting it in pharmaceutical
sector of Pakistan we had four variables performance appraisal, rewards, working environment,
training and development from the study we have conducted from different bank professionals
we have come to know that employee motivation inflicts an acute positive relation with all of
these variables increases in variable will cause increase in the other as well each and every
variable depends on one another and have a positive effect on employee motivation. Which
enhances employee satisfaction and as well as performance.

Recommendations

The main of the research was to find out the rewards, performance appraisal and training and
development have a positive or negative role on employee motivation in Abbott because
employees are the most important asset of an organization. A company cannot make happy its
customers unless its employees are not happy. The suggestion for the organization is that Abbott
should give great importance and motivate its employees if it wants to achieve its goals. It is
impossible without motivated and committed employees.

Summary of Research Work

The research project was about the rewards, performance appraisal and training and development
have a positive or negative role on employee motivation in Abbott. It is proved by the research
outcome that these variables have positive relationship. If employees’ motivational level is low
their commitment and morale towards the organization and career will also be low.

References

 Hamidi, L. N., Sudabeh,V. , Abdolhosein, P.,(2010). Performance Appraisal and its

Effects on Employees’ Motivation and Job Promotion.Australian Journal of Basic and
Applied Sciences, V 4(12): 6052-6056. Yadollah
 Ishaq, H. Z., Iqbal, M. Z., Zaheer, A., (2009). Effectiveness of Performance Appraisal: Its
Outcomes and Detriments in Pakistani Organizations. European Journal of Social
Sciences – Volume 10, Number 3.
 Ali, R. &Ahmed, M. S., (2009). The Impact of Reward and Recognition Programs On
Employee’s Motivation and Satisfaction: An Empirical Study International Review of
Business Research Pape. Vol. 5 No. 4 June 2009 Pp.270-279.
 Chief, W. S., Rescue, S. F., Ohoio, S., (2011). Implementing an Employee reward or
reorganization program with a unionized labour.
 Wilson, G. V., (2005). The Effects of External Rewards on Intrinsic Motivation.
 Burton, K. (2012). A study of motivation: How to get your employees moving.
Management, 3(2), 232-234.
  Sahinidis, A. G., &Bouris, J. (2008). Employee perceived training effectiveness
relationship to employee attitudes. Journal of European Industrial Training, 32(1), 63-76.
 Ahmad, Ashfaq. (2011). Study of Work Environment and Employees’ Performance in
Pakistan. African journal of business management. 5. 13227-132232.
 Achim, I. M., Dragolea, L., & Balan, G. (2013). The importance of employee motivation
to increase organizational performance. Annales universitatis apulensis: Series
oeconomica, 15(2), 685.

Appendices

Questionnaire

Elements affecting Employees Motivation in Abbott

This study is intended to do this examination. Your conclusions are worth important for us to
effectively lead our investigation on the previously mentioned theme.

It would just take 3-5 minutes to round out this review. All the data given by you will be kept
classified and unknown.

Your interest in such manner will be profoundly valued and appreciated. Much thanks to you.

Name: ____________________ Age: ____ Gender: Male/Female ________________

Occupation: _____________ Contact (optional): ________________

Company: _____________ City: ______________

Tick most appropriate box in your opinion.

  Questions about Training & Development program

Statements Strongly Strongly

Disagree Neutral Agree
Disagree Agree
How much you agree with training for the
development of an employee?
The training was beneficial?
Do you feel training program is compulsory
for employees?
Training is must for enhancing productivity
and performance?
Training affected your pay?
Do you agree, training increased the
efficiency in employees?
.

Questions about Rewards.

Statements Strongly Strongly

Disagree Neutral Agree
Disagree Agree
you get reward for your performance in your
organization after training
your prefer recognition after being trained
Are you satisfied with the support from the HR
department
Are you being appreciated with every training in
your organization
are you happy with the reward system

my supervisor care about me as a team member

 Questions about Performance Appraisal

Statements Extremely Dissatisfie Neutral Satisfied Extremely

 dissatisfie d satisfied
d
are you satisfied with the frequency of
the appraisal
how much you're satisfied with the
performance appraisal system in your
organization
how much are you satisfied with quality
of performance raters
how much you're satisfy with job
expectation established before
performance appraisal
are you satisfied with the control of
biasness in performance appraisal system
are you satisfied with the benefits which
are given to you after appraisal

. Questions about Working Environment

Statements Strongly Neutra Strongly

Disagree Agree
Disagree l Agree
are you happy with your working environment &
conditions
is your working environment safe

are you enjoying what you do at your job

are you happy with the code of conduct

is your job affecting your social obligations

does your organization support cultural diversity

Questions about employee motivation:

I am recognized and Strongly Disagree Neutral Agree Strongly
praised for my good Disagree Agree
performance.

There is a clear and

effective system of
performance appraisal
&career development.
I feel that my job has
enough learning
opportunities which will
help me in career
advancement.
I think there are right
opportunities in this
organization for my
personal growth and
promotion.
Salary given to you is
justified.
Satisfied with the job.