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Danas Pharmaceuticals Pvt.

Limited
Compensation Management
Teacher: Nusrat Huma

Group:Qasim Farooq Akbar Awan BBA 8

Contents
Project Objectives ......................................................................................................................................... 3 Limitations .................................................................................................................................................... 3 Scope ............................................................................................................................................................. 3 Research Design ............................................................................................................................................ 4 Research Methodology ............................................................................................................................. 4 Synopsis ........................................................................................................................................................ 5 Introduction of Compensation Management: .......................................................................................... 5 Objectives of Compensation Management .............................................................................................. 6 Introduction of Danas Pharmaceuticals........................................................................................................ 6 Vision ........................................................................................................................................................ 7 Danas Pharmaceuticals Strategy ................................................................ Error! Bookmark not defined. Quality Policy ........................................................................................................................................... 8 Products .................................................................................................................................................... 8 Swot Analysis ................................................................................................................................................ 8 Questionnaire Analysis ............................................................................................................................... 10 Findings ....................................................................................................................................................... 18 Conclusions ................................................................................................................................................. 18 References .................................................................................................................................................. 18

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Project Objectives
The objectives of this project are to understand: To understand how organization develops the pay rate and compensation for the employee. To understand what kind of impact compensation management have on the performance of the employees. A study in detail about the compensation strategies involve in different organizations.

Limitations
Everything has some advantages and disadvantages and so certain is limitations of this study that we could observe is as follow: The field in which we are doing project is pharmaceuticals so it is possible that the result may not be completely accurate as the nature of the study is the survey and conclusion is based on it that is primary and secondary data and some data may be hypothetical. In the organization which we are working employees not willing to provide us the exact data and were hesitate to answer few questions which could have effect on the conclusion.

Scope
The scope of the project is to understand and study in detail about the different types compensation strategies involve in Danas Pharmaceuticals and after that to evaluate what kind of the impact of compensation has on the performance level of employees and how pay rates affect their behaviour, motivation and performance.

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Research Design
The research is the qualitative and the tool use for this research is the questionnaire while the nature of the research is the survey. The research is designed to achieve the compensation objectives.

Research Methodology

a) Target Industry: The targeted industry is the pharmaceuticals while the organization is the Danas Pharmaceuticals which is the private sector.

b) Population: The population which is involve in this study is the employees of Danas Pharmaceuticals of all age group.

c) Sample Size: The sample size is 50.

d) Type of data: The type of data which is used in this research is the primary data and secondary data. Primary data is the data which is collected from original sources while secondary data is the indirect sources. Primary Data: The primary data is collected from discussion with employees and collected through the questionnaires. Secondary Data: Secondary data is collected from internet, news, magazines, and journals.

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Synopsis
Introduction of Compensation Management:
Compensation is something which an employee receives from the organization for the amount of work he does for a particular job. It is a system in which organization balance the relationship between the work and the reward for that work. It is the main motivating factor for any employee to work and to choose an organization. It is a once of the major part and duty of the HR management to provide the compensation program which is suitable to both employees and the organizations which helps to motivate the employees and also help them to perform better which also increases the organization effectiveness. It is actually the reward which an employee gets for his/her services. In order to achieve goals and objective and to work according to your mission statement it is very important for the organization to keep the employees satisfied because individuals who work in the organization make it successful and the better services they provide the more effective will be your organization. Compensation can be either monetary or non monetary. When you hire any employee for your organization first thing that will come in his/her mind is what kind of compensation will organization provide and whether it is according to his/her needs. So it is the main tool which is used by the organization and its management to recruit the best people for the organization. It plays a big role in the job satisfaction of any person. It is very important for the organizations to keep and maintain the compensation according to the labor market and to attract and keep employees motivate it should be better than your competitors. It can be either direct or indirect where direct payment is being provide for the services which is fixed and indirect is in the form or benefits and incentive which also helps to increase the productivity of the organization. No one will work for the organization without compensation so in order to run the organization effectively and attract workers, compensation is very important factor. Compensation package is just the not salary but also include other benefits and incentives which can be performance based which help employees psychologically and also help them to provide the better life to their family. I It also shows the worth of the job in the organization and for that organization need to have a proper jobs structure and hierarchy and compensation should be according to it. The low level jobs should not have the compensation better than higher jobs. There should also be equity between similar jobs. The direct compensation includes basic salary, bonuses, medical benefits, house rent, phone bills etc while indirect compensation includes tax benefits, retirement planning etc.

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Objectives of Compensation Management


The main objective and goals of the compensation management is to provide organization opportunity to achieve its strategy and pan will the help of ensuring internal equity and external equity. According to internal equity the people who are more qualified and have better skills or at better positions should be paid more compensation. According to external equity the organization must ensure that jobs have the good compensation package and should be according to the labor market. The objectives of the compensation management are: Acquire talented personnel: Compensation package should be enough so that you can recruit the best talent available. Sometimes pay level need to be higher than the market because of the demand of the labors and in order to recruit the best personnel organizations sometimes pay higher compensation. To keep current employees: In order to keep your current employees organization should provide the compensation package that fulfills their needs otherwise employees will quit. Ensure equity: Compensation should ensure the internal and external equity like according to internal equity compensation should be similar to the job and should be same for the similar job so that equity will be maintain. Reward desired behavior: With the compensation packages organizations can impose the desired behavior. If the compensation package is effective it will also reward better performance and growth from the employees. Meet the laws and legal regulations: Compensation management helps the organization to follow the rule and regulation which impose by government like minimum amount of pay to the workers etc. Motivate employees: Compensation management plays a great role as far as motivation of employees concern. No one work without the compensation so in order to motivate the employees it is very important that organization should provide good compensation package to them. Consistency:
Compensation packages should provide consistency internally as well as externally.

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Introduction of Danas Pharmaceuticals


Danas Pharmaceuticals Pvt. Limited is the growing national wide company in the Pharmaceuticals industry, established in 2004 and started its manufacturing in June 2005. At start it only focused on major districts such as Karachi, Lahore, and Rawalpindi but now is well established company all over the Pakistan. When it started the main focus was on the anti-biotic products which were introduced by its own marketing teams. Its state of the art plant comprises solid and semi solid dosage forms. Solid dosage form contains oral antibiotic and non-antibiotics facilities. Semi solid preparations contain creams ointments and gel. There is also a separate dedicated area for steroids and non-steroids preparations. Danas Pharmaceuticals also has its own distribution network all over the Pakistan which was established in 2009. Initially company started its production with 97 registered products from Ministry of Health. Company emphasized on human resources management and there are about 110 skilled personnel included experienced pharmacist chemist and microbiologist to produce quality products for their valued customers. In 2003 Danas Pharmaceuticals Private Limited selected Industrial Triangle of Islamabad and started the required construction for manufacturing of pharmaceuticals products which was completed in 2004 when it achieved its target and regulatory body made a thorough inspection of premises and approved premises. The journey continued and the registered products went on increasing and also expand its business outside the Pakistan to a country like Iran and Afghanistan. From the first day the company focus on the quality and to satisfy the customers was the main objective thats why from a start to present it has a dedicated and hard working team of experience professionals working not only to meet the expectations and fulfill the demand of customers but always try to deliver beyond the expectations of the customers and to satisfy them is one of the major focus of the company.

Vision
Establishment of a corporate brand through the creation of original customer value

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Quality Policy
We dedicate ourselves to humanitys quest for healthier & happier life through international quality standards driven innovation and continuous improvement in pharmaceuticals products

Products
Danas manufactures medicines of different categories including antibiotics, general medicine, and non antibiotics, steroidal, non steroidal, creams and ointments, capsules and diabetes tablets. Some of the major products of Danas Pharmaceuticals are listed below: Azithromycin Omeprazole Cefaclor Piroxicam Cefixime Amoxycillin Ampiciltin Lincomycin Erthromycin Ofloxacin Famotidine Domparidane Diclofenac Tenoxicam Tizanidine Cetirizine Glicazide Bromazipam Meloxicam Melobicin

Swot Analysis
Strengths:
Provide better quality goods and services as compare to competitors.

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Low operating overhead and R& D cost. Strong marketing and distribution network. Low staff turnover. Established good brand name in the market. High customer satisfaction. Employers Empowerment. Provide good environment to work.

Weakness: Lack of training facilities. Lack of job security. High prices. Low investments in new products. Lack of culture innovation. No social activities.

Opportunities: To explore new market areas. Could extend business to overseas. Can attract customers with better deals.

Threats: Lack of security and terrorism. Legislation or government policies can affect the business.

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Declining economy. Great risk involve for new investment. Political and economic instability. Cheap prices by new competitors.

Questionnaire Analysis
1. When was your organization established? _______2004 __________________________________________ 2. What types of compensation are available? ______ __________________________________________ Analysis: There is only one type of compensation is available to the employers which is direct compensation which include Base Pay, Bonuses, Overtime, Incentives, House Allowance.

3. Who handle the compensation management department in your organization? _______HR MANAGER __________________________________________ Analysis: HR manager of the company handles the compensation department in the organization.

4. On what basis company provide compensation to their employees. a) Base Pay c) Travelling/meal/housing allowance
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b) Commissions d) Any other

Base Pay Travelling/Meal /Housing Commissions

Analysis: This graph shows that the company provides compensation to its employers on the basis of base pay, travelling/meal/housing and commissions where 50% of employers prefer base pay rate while 40% prefer travelling/meal/housing and only 10% prefer commissions.

5. What kind of compensation you prefer. a) Monetary c) Motivation b) Rewarding d) Holiday packages

30 25 20 15 10 5 0 Monetary Rewarding Holiday Packages

Analysis: From the above graph we can see that out of 50 employers 15 prefer holiday packages, 5 prefer reward or non monetary while only 30 workers prefer monetary benefits. No worker prefer motivation which shows lack of motivation between workers.

6. Are you satisfied with the compensation you receive. a) Yes b) No

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Analysis: From the graph we can see that 80% (40 workers) are satisfied with the compensation they receive while only 20% (10 workers) are dissatisfied with the compensation package they are receiving.

7. What do you think that Danas Pharmaceuticals is providing better compensation package to the employees. a) Yes
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b) No

If NO than which organization do you think?

50 40 30 20 10 0 Yes No

Analysis: As we can see in a graph, out of 50 workers 41(82%) think Danas is providing better compensation package to the employees and satisfied with the compensation they are getting and only 9( 8%) workers are dissatisfied.

8. Is there different type of compensation for different type of services? a) Yes b) No

Analysis: 80% agree that there are different types of compensation for different type of services provided to the workers which help them to maintain their motivational level while 20% are against it.
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9. Is cash still king in employee compensation. a) Yes b) No

Analysis: From the graph it is clearly visible that cash is still the king in employee compensation and everyone is satisfied with cash instead of non monetary benefits. 70% of employees are in favor of yes while 30% are in favor of no.

10. Is Compensation based more on group performance and less on individual contribution. a) Yes b) No

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Analysis: As we can see in the graph Danas compensation is more base on individual rather than group because every employee have its own competency and skill and different job as compare to others through which they are judge.

11. Is there any procedure of receiving formal feedback by employees on Company policies, compensation, benefits, and employee attitudes? a) Yes b) No

Analysis: According to 84% of employees, Danas has the procedure of receiving feedback from the employees on compensation programs and its policies which can increase the motivation of
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employees and also help to bring in more creativity. It also help to build strong relationship between employees and senior management.

12. In your organization employees receive effective performance appraisal. a) Yes b) No

Slice 1

Analysis: According to all the employers, they receive the effective performance appraisal which can motivate the employees and can provide them good environment and culture to work. It also increases the performance of the employees and give them more confidence to perform better.

13. Are you getting training for improving the performance? a) Yes b) No c) cant say

Analysis: According to the graph 60% think they are getting training for improving the performance while 20% dont agree with it and 20% cant say anything. Training helps in developing the required
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skills for the job. It is very important for the organizations to provide the training to employees and play effective role in the performances of employees.

14. Are you free to give ideas to the higher management? a) Yes b) No

Analysis: In the organization employees are free to give suggestions and feedback but not to the higher management. Only 10% feel that they are free to give ideas to the higher management while 90% disagree.

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Findings
The compensation policies of Danas Pharmaceuticals are good and match the market rate. The employees working in Danas are satisfied with the compensation program. The culture and environment of the Danas is good and employees are motivated to it. Danas Pharmaceuticals has good credibility in the market.

Conclusions
Danas Pharmaceuticals one of the biggest pharmaceuticals company in Islamabad. It has business all over the Pakistan and has distribution and marketing setups all over the Pakistan. Due to this it faces large amount of competition. The HR manager along with CEO annually review the compensation policies and structure in order to attract and recruit the best employees available for the jobs and to keep existing employees satisfied. Employees also free to give their feedbacks and suggestions. This project was very helpful for to me understand the compensation policies and its structure. It was very satisfying experience for me. The Danas Pharmaceuticals policy is to provide deserved compensation to its employees which are fair and satisfying for them. It not only motivate them to perform better but also maintain a good name in market.

References
Danas Pharmaceuticals manufacturing plant and offices. CEO and HR manager of Danas Pharmaceuticals. www.google.com www.druginfosys.com
www.scribd.com

http://www.oppapers.com/subjects/aims-and-objectives-of-compensation-managementpage1.html www.answers.com

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I n t e r n a l a n d E xt e r n a l Fa c t o r s E v a l u a t i o n
Internal factors evaluation is a strong measurement tool which helps in i n d e n t i f yi n g t h e s t r e n g t h s a n d w e a k n e s s e s o f a n y f u n c t i o n a l a r e a o f a business. Its also helps in to identify and evaluate the relationship between those areas. It can helps to evaluation how the company is performing according to its internal strengths and weakness along with external factors evaluation matrix. Internal Strengths: High quality products: The quality of products is one of the most important things in the pharmaceutical industry because it is directly related to humans health so no pharmaceutical company compromises on health and same is with Siam Pharmaceuticals. Siam Pharmaceuticals is proud to provide the best quality medicines to its customer and never had any kind of complain about the quality of their products. As far as regulations are concern Siam Pharmaceuticals provide the qualit y according to the ISO standard. The products of Siam Pharmaceuticals are according to the international standard. Managing capacity efficiently: O n e o f t h e s t r e n g t h o f S i a m i s t h e m a n a g e m e n t o f i t s c a p a c i t y. S i a m a l s o work on toll and in 2010 two more companies decided to collaborate with Siam and do toll bu siness with Siam Pharmaceuticals. In 2009 Siam Pharmaceuticals signed toll agreement with Danas Pharmaceuticals in order to manufacture one of its products. Siam Pharmaceuticals is u t i l i z i n g i t s c a p a c i t y i n a v e r y g o o d w a y. Employees Empowerment: E m p l o ye e s a r e t h e b a s e o f a n y s u c c e s s f u l b u s i n e s s a n d s a m e i s t h e c a s e w i t h S i a m P h a r m a c e u t i c a l s w h o g i v e a l l t h e p o w e r t o i t s e m p l o ye e s t o bring in their own crea tivity and help in decision making. There are also suggestion boxes available so that anyone can provide the suggestion w h i c h h e / s h e t h i n k s i s t h e i m p o r t a n t f o r t h e s u c c e s s o f t h e c o m p a n y. Motivation: The executives of Siam Pharmaceuticals understand the value of m o t i v a t i o n o f e m p l o ye e a n d h o w i m p o r t a n t i t i s f o r t h e s u c c e s s o f t h e i r c o m p a n y. T h e m a i n m o t i v a t i o n t e c h n i q u e s u s e i n S i a m a r e t h e

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performance related incentives, health benefit and recognition of e m p l o ye e s w o r k . Continuous Improvement: S i a m P h a r m a c e u t i c a l s a l w a ys l o o k s t o i m p r o v e i n e v e r y d e p a r t m e n t a n d its revenue is increase every month which shows the continuous improvements of its operations and above mentions factors. Distribution Network: The edge which Siam Pharmaceuticals has on its competitor is its strong distribution and marketing setup which is spread all over the Pakistan. Siam works strong with its distributors to establish its products in every d i s t r i c t w h i c h p l a y e d a b i g r o l e i n t h e p r o g r e s s o f t h e c o m p a n y. Internal Weaknesses: Lack of Space and Sections: Even though Siam is working quiet effectively and its production is very efficient, I still believe that there is need of more sector as there are only four sectors, so with more section the production will definitely increase and sales will also increase. There is also lack of space in few departments which is not a big issue but by keeping future in mind Siam Pharmaceuticals needs to expand more. Lack of Investment: The lack of new investment and capital can be a issues for Siam Pharmaceuticals in order to improve more. As the profit generated annually is distributed equally within the members, there is lack of new investment which I feel is needed in order to expand more and bring in more innovations. Weak R & D department: Siam Pharmaceuticals definitely needs to improve its R&D department which is not as stronger as few of its competitors. For that it is very important that Siam Pharmaceuticals should be in more experts and technology in order to improve it. Internal control system: There is lack of internal control on all departments. As all the departments work quiet effectively and have good working condition but
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t h e r e i s n o c o n t r o l o n t h e e n t i r e d e p a r t m e n t a s e v e r yt h i n g d e p a r t m e n t works individually most of the time.

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