Executive Summary

This report is part of the Human Resource Management Course requirement of

the BBA program in this Semester. Our report portrays the process of
performance appraisal and management of square pharmaceuticals ltd.

We did this report on the “The process of performance management and

appraisal of a known Company”. We choose the Square Pharmaceuticals
Company for preparing the formal report. So, this report is only appropriate for
the Square Pharmaceuticals Company. Other than this, the report will not work at
all.

We choose the Square Pharmaceuticals Company for preparing our report. We

took help from the employees of the Square Pharmaceuticals Company Ltd. and
discussed with them about their performance and appraisal management system
and other things also.

Performance management is the systematic process by which an agency

involves its employees, as individuals and members of a group, in improving
organizational effectiveness in the accomplishment of agency mission and goals.
Process of performance appraisal is the setting up of the standards which will be
used to as the base to compare the actual performance of the employees.

Square Pharmaceuticals Company always measure their staffs, department and

performance behavior also. They create their performance management and
appraisal system in a planned way.

Introduction: Performance management is a way to create best method for

effectively using organizational employees also gets organizational mission and
goal. And taking an integrated, goal oriented approach to assigning, assessing,
training, and rewarding employees performance. Mainly an organizational
performance management focuses on organizational employees or staffs.

Every organization conducts performance for assessing the performance of the

employees and the organization. But if not conducted properly, they can give a
false impression about the performance of the employees and affect the overall
performance of the organization; therefore, there is a need to train the appraisers
to ensure the maximum effectiveness of the process.

Employee performance management includes:

 Planning work and setting expectations,

 Continually monitoring performance,
  Developing the capacity to perform,
 Periodically rating performance in a summary fashion, and
 Rewarding good performance.

Planning: In an effective organization, work is planned out in advance. Planning

means setting performance expectations and goals for groups and individuals to
channel their efforts toward achieving organizational objectives. Getting
employees involved in the planning process will help them understand the goals
of the organization, what needs to be done, why it needs to be done, and how
well it should be done.

The regulatory requirements for planning employees’ performance include

establishing the elements and standards of their performance appraisal plans.
Performance elements and standards should be measurable, understandable,
verifiable, equitable, and achievable.

Monitoring: In an effective organization, assignments and projects are

monitored continually. Monitoring well means consistently measuring
performance and providing ongoing feedback to employees and work groups on
their progress toward reaching their goals.

Regulatory requirements for monitoring performance include conducting progress

reviews with employees where their performance is compared against their
elements and standards. Ongoing monitoring provides the opportunity to check
how well employees are meeting predetermined standards and to make changes
to unrealistic or problematic standards. And by monitoring continually,
unacceptable performance can be identified at any time during the appraisal
period and assistance provided to address such performance rather than wait
until the end of the period when summary rating levels are assigned.

Developing: In an effective organization, employee developmental needs are

evaluated and addressed. Developing in this instance means increasing the
capacity to perform through training, giving assignments that introduce new skills
or higher levels of responsibility, improving work processes, or other methods.
Providing employees with training and developmental opportunities encourages
good performance, strengthens job-related skills and competencies, and helps
employees keep up with changes in the workplace, such as the introduction of
new technology.

Carrying out the processes of performance management provides an excellent

opportunity to identify developmental needs. During planning and monitoring of
work, deficiencies in performance become evident and can be addressed. Areas
for improving good performance also stand out, and action can be taken to help
successful employees improve even further.

Rating: From time to time, organizations find it useful to summarize employee

performance. This can be helpful for looking at and comparing performance over
time or among various employees. Organizations need to know who their best
performers are.

Within the context of formal performance appraisal requirements, rating means

evaluating employee or group performance against the elements and standards
in an employee’s performance plan and assigning a summary rating of record.
The rating of record is assigned according to procedures included in the
organization’s appraisal program. It is based on work performed during an entire
appraisal period. The rating of record has a bearing on various other personnel
actions, such as granting within-grade pay increases and determining additional
retention service credit in a reduction in force.

Although group performance may have an impact on an employee’s summary

rating, a rating of record is assigned only to an individual, not to a group.

Rewarding: In an effective organization, rewards are used well. Rewarding

means recognizing employees, individually and as members of groups, for their
performance and acknowledging their contributions to the agency’s mission. A
basic principle of effective management is that all behavior is controlled by its
consequences. Those consequences can and should be both formal and
informal and both positive and negative.

Good performance is recognized without waiting for nominations for formal

awards to be solicited. Recognition is an ongoing, natural part of day-to-day
experience. A lot of the actions that reward good performance like saying “Thank
you” don’t require a specific regulatory authority. Nonetheless, awards
regulations provide a broad range of forms that more formal rewards can take,
such as cash, time off, and many non monetary items. The regulations also cover
a variety of contributions that can be rewarded, from suggestions to group
accomplishments.

Now, we measure the process of performance appraisal management. Given a

chart to mention the main term to achieve organizational goal and mission
followed by accompany.
Managing Performance Effectively: In effective organizations, managers and
employees have been practicing good performance management naturally all
their lives, executing each key component process well. Goals are set and work
is planned routinely. Progress toward those goals is measured and employees
get feedback. High standards are set, but care is also taken to develop the skills
needed to reach them. Formal and informal rewards are used to recognize the
behavior and results that accomplish the mission. All five component processes
working together and supporting each other achieve natural, effective
performance management.

About Square Pharmaceuticals Ltd.

Historical Background:

SQUARE today symbolizes a name a state of mind. But its journey to the growth
and prosperity has been no bed of roses. From the inception in 1958, it has today
burgeoned into one of the top line conglomerates in Bangladesh. Square
Pharmaceuticals Ltd., the flagship company, is holding the strong leadership
position in the pharmaceutical industry of Bangladesh since 1985 and is now on
its way to becoming a high performance global player.

SQUARE Pharmaceuticals Ltd. is a glorious name in the history of

pharmaceuticals industry. The company was established in 1958. From the
period of establishment it never looked back. The company is holding the strong
leadership position in the pharmaceutical industry of Bangladesh since 1985 and
is now on it’s way to becoming a high performance global player.

Vision:

We see business as a means to the wellbeing of the investors, employees and

the society at large, leading to accretion of wealth through financial and moral
gains as a part of the process of the human civilization.

Mission:

Their mission is to provide quality & innovative healthcare relief for people,
maintain stringently ethical standard in business operation also ensuring benefit
to the shareholders and other stakeholders.

Objective:

Their objectives are to conduct transparent business operations within the legal &
social frame work with aims to attain the mission reflected by their vision.

Corporate Governance

Top Management:

As per provisions of the Article of Association, Board of Directors holds periodic

meetings to resolve issue of policies and strategies, recording minutes/decisions
for implementation by the Executive Management.

Executive Management:

The Executive Management is headed by the managing director, the chief

Executive Officer (CEO) who has been delegated necessary and adequate
authority by the Board of Directors. The Executive Management operates
through further delegations of authority at every echelon of the line management.
The Executive Management is responsible for preparation of segment plans or
sub-segment plans for every profit centers with budgetary targets for every item
of goods & services and is held accountable for deficiencies with appreciation for
exceptional performance. These operations are carried out by the Executive
Management through series of committees, sub-committees, ad-hock
committees, standing committees assisting the line management.

Distinguish Department:
We already know that, Square pharmaceuticals one of the best pharmaceuticals
company in Bangladesh also they have claimed that is number one position in
BD. And the position they got not only their product quality also their good
administrative system. They maintain good communicate with their employee’s
cause of increase productivity and also train their employees and give best
intensive for employees. Square group distinguish different department for
getting more benefit for staffs and company profit. Their several departments is
given below,

 HRM Department
 Marketing Department
 Accounts Division
 Sales Division
 Purchase & Maintenance Division
 Transport and Distribution Division
 Lab and Raw materials Division
 Finally Computer or IT Division
 Finance & Audit Division

Square group distinguish all department but they collaborate with one to one
division for achieve employees satisfaction and company goal

Environmental Influences on Management Programs:

There are the internal and external environmental factors that affect on
management program of the Square Pharmaceuticals Company. Internal and
External factors are given below:

Internal environment including all internal factors like setting plan, how to achieve
goal, recruits employees, set up appropriate man to appropriate section,
distribution work etc. all are internal strategy.

External environment including all external factors like marketing channel,

consumer, distributor raw materials, getting information for company etc. all are
external strategy.

 Performance Appraisal Training: Every organization conducts performance for

assessing the performance of the employees and the organization. But if not
conducted properly, they can give a false impression about the performance of
the employees and affect the overall performance of the organization; therefore,
there is a need to train the appraisers to ensure the maximum effectiveness of
the process.
Square pharmaceuticals also offer to their employees give up training for getting
more benefit of company and staffs do their best for that. Employee’s promotion
depends on their performance and activities. 

Self Appraisals: Self appraisal is an important part of the Performance

appraisal process where the employee himself gives the feedback or his views
and points regarding his performance. Usually this is done with the help of a self
appraisal form where the employee rates himself on various parameters, tells
about his training needs, if any, talks about his accomplishments,
strengths, weaknesses, problems faced etc.

Square group followed all rules and regulations for improving their employees
self appraisal.

  Succession planning & Performance management: Succession planning is

ensuring the right people in the right place at the right time. It is a part of HR
planning for the organization and involves finding the right people to take higher
responsibilities in the organization. The success of the organization is largely
dependent on the quality of its human resources and leaders of the
organizations. Succession planning is proactive in nature and results in the
creation of a talent pool of candidates with the required potential and
competencies who can take the high positions in future and help in the growth of
the organization.

Recruitment & Selection Process: The recruitment system of square

pharmaceuticals company followed many formal procedures. Their recruitment
system is depending upon two basic sources: one is internal and other is external
source.

Internal Source: Square Pharmaceuticals Companies internal sources are

recruiting current company employees for the sales force department. In their HR
department, each employee has personal records, performance a record which is
varying from other employees. So if an employee’s performance is better than
company give the promotion. These types of recruiting reduce the cost and time
also.

External Sources: Square Pharmaceuticals Company some external sources

for recruiting. Some sources are given below:

 Referral of people in other firms

 Advertisements
 Employment Agencies.
Selection Procedures:

Square Pharmaceuticals Company typically use some selection tools, they are:

 Personal Interviews
 Reference Checks
 Physical Examination
 Personality tests
 Intelligence tests

Motivation of Employees: Motivation is viewed as the amount of effort the

salespersons and other employee’s desires to expend on each activity or task
associated with the job. In every organization, if sales people are not motivated
they don’t give any extra benefit for the organization. Square pharmaceuticals
also motivate their employees in different ways. Now we discussed about their
motivation system.

Square pharma mainly give reward depending on each sales person’s

performance. They always set a quota for every sales people. They told them, if
a sales person can fulfill his quota early than he will receive 2% commission on
each product. They also tell them if any one can sell highest amount of product
three years in a row, than he/she will get promotion. These types of motivation
sometimes appropriate for the organization. Square also give some commission
on extra sell in every product. In this way they motive their sales people also
departmental staffs.

Reward for superior performance: Square pharmaceuticals ltd. recognizes

superior performance. When their any employee’s performance is better than
other employees, then that employees get reward from the organization.

Fairness: Square pharmaceuticals Company always follow fairness when they

give any reward. Fairness creates a value for the employees mind and them
emphasis more on their work.

All managers and supervisors who consult performance appraisals should

be given training for the following steps also followed square this strategy:

 Methods, techniques and guidelines for setting goals and objectives

 How to evaluate the performance and rate the employees
 How to complete a performance appraisal form
 How to maintain objectivity in the appraisal
 Responding to employee reactions
  Improves rapport and communication
 Building morale and motivating employees
 Observing and measuring performance
 Post review actions

Conclusion: The performance and appraisal management system in Square

Pharmaceuticals Company is a planned system. They use different management
tools for establishing their performance and appraisals management. In the
above discussion we can easily understand that, Square Pharmaceuticals
Company mainly depends on their organizational distinguish of department. This
divisional employee’s team earned a great market share in every year also get
promotion. Their total activates is a very well defined, that’s why their divisional
people are more active than any other pharmaceuticals company. In our country,
pharmaceuticals company mainly use personal selling as promotional tools. So
they should more emphasize on this promotional tools, also focus on internal and
external activities.