Documentos de Académico
Documentos de Profesional
Documentos de Cultura
HR POLICIES
AT
DR.REDDY’S LABORATORY
NEEHARIKA AWASTHI
By
STUDENT DECLARATION
(2122-16-672-200)
(ANNEXURE –II)
I take this opportunity to extend my profound thanks and deep sense of gratitude to the
authorities of DR REDDY’S LABORATARIES for giving me the opportunity to undertake this project
I am also thankful to all those who have incidentally helped me, through their valued guidance,
NEEHARIKA AWASTHI
(2122-16-672-200)
CONTENT
II Review of Literature
V Findings,Suggestions &
Conclusion
Bibliography
TABLE OF CONTENT
“a series of activities which: first enable working people and their employing organisations to
agree about the objectives and nature of their working relationship and, secondly, ensures that
the agreement is fulfilled"
".......those decisions and actions which concern the management of employees at all levels in the
business and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage"
Each company has a different set of circumstances, and so develops an individual set of
human resource policies.
Purposes
The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment
contracts and collective bargaining agreements. The establishment of an HR Policy which
sets out obligations, standards of behavior and document displinary procedures, is now the
standard approach to meeting these obligations.
HR policies can also be very effective at supporting and building the desired
organizational culture. For example recruitment and retention policies might outline the
way the organization values a flexible workforce, compensation policies might support
this by offering a 48/52 pay option where employees can take an extra four weeks
holidays per year and receive less pay across the year.
In the past decade, the news headlines have definitely made it clear that the need for
management should be one of the top agendas in modern day society. The rages alone
such as Road Rage and the trends of violent acts in life today prove a lot of it well.
Living today is a lot tougher than it was even in the days of the great depression. It's been
coming out in many ways such as all time occurrences of stomach and intestinal ulcers.
Others find sleep disorders and wind up zombies during their busy days. Insomnia is
growing in leaps and bounds.
Today stress management is important in everyone's lives. It's necessary for long happy
lives with less trouble that will come about. There are many ways to deal with stress
ranging from the dealing with the causes of stress to simply burning off its effects.
A good place to start in planning your own stress management would be finding the roots
of your stress. It can come from physical exertion and mental strain as well. We all have
these things in our everyday life. Its effects on our overall being can vary dramatically
from others experiences. For that reason your needs in stress management may indeed
differ from theirs as well.
1) To increase productivity.
2) To improve quality.
6) Obsolescence prevention.
7) Personal growth.
RESEARCH METHODOLOGY
There is a present need for HRM POLICIES measures. So that new and changed
techniques may be taken advantage and improvements effected in new methods, which
are woefully inefficient. Training is practical and of vital necessity because, apart from
other advantages mentioned, and increase their “Market Value”, earning power job
securi
Team Building
Time Management
It uses all the technology available and modern equipment in HRM POLICIES
programmers. In a contemporary study, it was revealed that it is more inflammable so
the workers and superiors must concentrate on the work what they are doing. At any
time if they don’t concentrate on their work it is very dangerous to the whole industry.
So the study is aimed to know the adequacy of training given to employees and
employers.
RESEARCH INSTRUMENT:
In order to collect the data from the people in organization the research instrument
used is QUESTIONNAIRE.
DATA SOURCES
Data can be broadly classified as;
1) Primary data.
2) Secondary data.
Primary data
Secondary Data
Management books
Journals
Newspapers and Internet web: www.DR REDDYS.com
SAMPLING
Sampling is always necessary to collect data from the whole organization. A small
representative sample may serve the purpose. Sample means “A Group Taken From a
Large Lot“. This small group should be miniature cross-section and really
“Representative” in character. This selection process is called Sampling .SAMPLE SIZE
SAMPLE PLANNING
Population : 598
Sample frame: Employees of Dr reddys, Hyderabad
SAMPLING METHOD
The method adopted here is Random Sampling Method. A Random sample is one
where each item in the universe has an equal chance of known opportunity of being
selected.
The method do not provide every item in the universe with a known chance of being
included in the sample. The selection process is at least particularly subjective.
LIMITATIONS
1. Firstly the respondents were not available readily and the data were collected as
per the convenience of the respondents.
2. Secondly the sample of respondents was very less given by the organization hence
appropriate sample technique was not applied for selecting the respondents.
For the above limitation the study conducted may not give the true representation
of the entire organization.
CHAPTER-II
LITERATURE REVIEW
India has witnessed a revolution in the field of Human Resource; it has gone from being
just a support function to being a strategic partner in the growth of businesses. It has
transformed itself being merely Personnel Management – maintain records and ensure
statutory compliances, while doing the bare minimum to keep employee satisfaction on an
even keel to being an integrated part of the corporate machinery.
The HR function of 21st century India has made a transition from being ‘behind-the
scenes’ support appendage to becoming the critical differentiator in business. Rapid
globalization has made companies realize people are the key to growth, the only strategic
resource that any enterprise truly needs. This has led to companies routinely using their
innovative HR practices as their USP (Unique Selling Proposition) to keep up with the
times in the wake of a rapidly changing labor landscape. Companies now recognize that a
‘Highly engaged employee’ the key to success, across business sectors.
An analysis of the main HR problems in India could be done based on the certain
challenges that mould the contours of the various sub-functions of HR. The ‘attract,
motivate and retain’ mantra that the HR function seeks to deliver for the organization are
based on these HR sub-functions.
Employee Sourcing: It is the basis on which the Human resource survives. A large part of
the mind space of HR head honchos is committed head hunting. With the opening up of an
economy which is not only expanding at a frenetic pace, but also maturing in terms of
width and depth of options available to professionals, the war for talent has reached a
crescendo. Talent acquisition is now akin to a battle where recruitment professionals are
now virtual sales persons selling an alluring employee experience to prospective
candidates. In sectors like IT and BPOs, as well as financial services, high attrition levels
have become mandatory.
Quality of manpower is another issue needs paying attention to, in India. While millions of
graduates and post-graduates pass out of Indian universities each year, the actual number
of employable talent is severely limited. Employers have to adopt innovative modes of
recruitment to ensure that it can separate the wheat from the chaff.
Employee Motivation: In a market which job-hopping has become the name of the game,
keeping the workforce motivated is one of the key challenges of HR. Motivation no longer
comes from just a lucrative pay package. Nowadays companies have to walk that extra
mile to make the employee feel special to ensure that he doesn’t walk out and into the
arms of competition. Talent segmentation and segregation with performance appraisal and
rewards is essential to a good team of workers. In essence, as industries evolve, employers
have to ensure that apart from the basics of ‘roti, kapda and makaan’, employees also
expect job satisfaction, learning and development facilities.
Employee Engagement and Talent Retention: Winning the hearts and minds of talent is
of prime importance in the current context. Employees are no longer committed to their
companies. Their dedication is towards their own professional growth and careers.
Employee engagement means that HR has its eyes and ears close to the ground realities
that an employee faces in the job. Issues like work-life balance, fun at work are considered
part of the employee experience. And the day and age of cut-throat competition and lack
of talent – it’s HR prime function to ensure that it is clued in to the needs of employees.
Employee Satisfaction Surveys cannot just remain an exercise and results cannot simply
be ignored. Specific ATRs (Action Taken Reports) have to be presented and acted upon as
proof of developmental intentions of HR. Addressing grievances is another area that has to
be robust so that issues do no escalate. Nip the problem in the bud and ensure productive
workplace.
The philosophy of the Birla Management centre is beautifully captured in its symbol. The
logo has been designed to reflect the concept of group dynamics and group synergy six
symbolic persons, one in dark blue and five in light blue,denote one group with various
constituents of the group, All fusing their energies and knowledge to form a strong
nucleus. The skills of the units merge together and radiate outwards more forcefully.
The arrows pointing inward denote pooling of resources and knowledge.The arrows
projecting outwards reflect the dynamic expansion and growth the various units of the
group in various industries, globally.
Furthermore, the arrows also symbolise the six specific steps aimed to our motto.
Excellence and perfection in all spheres of management by continous
The basic human resources management policy is to conduct its relation with its
employees in such a way that the company will have at all times and adequate force of
competent and satisfied employees to conduct all its operations effectively and
harmoniously in order to achieve costomer’s satisfaction at the end.
The human resources management policy is prescribed on the basic of policies formulated
by its top management. Such policies are tools of management to understand the
consequence of activities and also help all employees understanding.
PURPOSES :
4. For the way or guideline for implementing the personnel Management activities
for instances employee recruiting, hiring, separation, fringe benefits, training,
development, evaluation, demotion, transfer, wages and salaries, grievances,
discipline, medical care, retirement, hospitalization, recreation, employee’s
relations and other.
5. The operating management and supervisor at all levels should know what top
management want, and it has to be written clearly in order to avoid
misunderstanding.
6. When the policy and procedures needs to be clearified, the human resources
department will have to administer, implement and interpret policies and take
action effectively.
7. The policy and procedures is not only to be prescribed by top management but also
by the law, culture and employment condition agreement with Labour Union as
well.
1. EMPLOYMENT
The company will try all possible efforts to employ the most qualified and
competent employees and retain them as long as possible. Selection and screening
will be made on merit basis and unqualified and incompetent applicants will be
eliminated.
2. COMPENSATION
The company shall pay fair and equitable compensation in accordance with the
principle of the employee’s duties and responsibilities, and satisfactory
performance, by maintaining its equivalent rate of compensation in comparison to
the same or similar type of industry following the Laws, Local practices and
financial stability of the company.
3. PROMOTION / TRANSFER
The company to promote the employee from within, the qualified and deserving
employees shall be promoted to higher positions whenever vacancies occur or to
be transferred to jobs where their talents could be best utilized for higher
responsibilities and adequate compensation.
The selection will be made on the basis of qualification for the job through
interview, tests, attendance, and job performance.
4. WORKING CONDITIONS
A good working condition will bring about a good result to the company and
therefore the condition of the working place must be provided with proper working
environment and enough safety and at the same time all employees must work with
all possible efforts and care in preventing the damage loss or accident to
themselves machines and other company property.
5. WELFARE
Good employee benefits will be offered to meet the needs of the employees in
accordance with the local or community practice, laws and financial stability of the
company. The company will try all possible efforts to look forward to meet the
employee requirement in matter of medical care, recreation, hospitalizations and
others.
6. EMPLOYEE RELATIONS
It is the responsibility of management and executive employees at all levels to
point out an employee’s deficiencies and shortcomings so that he may have an
opportunity to correct them, and also to promote good Human relations with their
subordinates and associates. Everyone must understand the company rules and
regulations and strictly and sincerely follow them. The achievement of the
company will be based on the individual cooperation by strict adherence to his/ her
duties and responsibilities. Any constructive suggestions and initiatives are always
welcome. When an employee is transferred, dismissed, or demoted. He is
entitled to know the reasons for the Company’s action.
7. TRAINING
The company believes that well – trained employees both technical and
administration skill will bring about achievement to the company, and
therefore,The company’s employees at all levels will be provided appropriate
training course to enable them in developing their ability, knowledge and skills.
Both internal and external training including seminars will be provided as the
management deems appropriate. It is also a the responsibility of executive
employees at all levels to train their subordinates in order to develop the
performance of their subordinates and also be account able for the jobs assigned
to the subordinates.
In short, The HRMM helps the executives and managers understand the objectives of
specific policies, interprets key aspects of the policies, defines terms and outlines
approved procedures.
2. It enables every manager to administer his own employee relations at the most
desirable level for first – line supervision.
AN APPROVAL OF POLICIES
Ultimate approval may reside with top management, I.E., President Labour and approval
levels may vary according to subject / matter and the extent of The policy.
However the policies or procedures may be issued as long as it is Not against approved
policies.
MANNUAL DISTRIBUTION
In general practice , the HRMM is an official controlled document, distribution is
limited, use list is decided by the president and when HRMM is required by others,
approval of president is needed.
However separate handbook or circular may be made for all concerned if necessary
HRMM UPDATE
The conditions that call for particular HRMM policies are seldom static. A policy is
useful only if it is changed to meet new requirements. A policy changed but not recorded
in the manual and not communicated to all
concerned is an invitation to fail. Responsibility for keeping the manual upto date should
be assigned to all concerned. For example, the production manager recommends changes
in recruiting the chemists in place of engineers. When he obtains approval for such
modification, then he is the one who initiate a request for
manual changes. The HR Manager recommends a change of dormitory procedure and
when be obtains approval, he is the one who initiate a request for manual change.
However, as a rule, such change should not be made officially until it is refereed to a
specialist or management of the company.
The manual itself can be used as a vehicle for making changes. The More comprehensive
the manual is, the more useful it can be in effecting revisions of policies. Because it is so
important that a HRMM be kept responsive to current needs, revisions should be
implemented continuously.
In addition to making changes there is a need of some kind of Periodical audit of the
entire manual . A good rule is to examine every chapter every year after its issue on last
revision. The human resources Manager is responsible to take action in this regard.
COMMUNICATION DEVICE.
Meeting with all dept. managers is necessary before putting The policy manuals into
action or revising then. Misunderstanding and misinterpretation of the policies are very
dangerous, Vice Presidents and department managers who will execute directly or
indirectly these policies must be fully communicated and they will also further
communicate their subordinates in their respective departments.
TRAINING DEVICE
A good HRMM may be the best personnel administration textbook The Managers and
supervisory staff will find that these are the nuts and bolts of today’s Personnel theory and
practice as applied by the company. It can be the cornerstone of supervisory and
management training programs in human relations, case studies,role playing and other
problem-solving techniques which can be designed around the policy manual.
1. PREAMBLE
Scientific management can make the tasks of production, purchasing, Marketing,
and accounting almost a matter of routine. Definite procedures can be Established
and op-eration can be performed under controlled conditions so that They can be
easily evaluated. Such matter is not the case with the human resources
management, since no formula has yet been found to meet the problems brought
about by the relations between the employer and the employees. It is true that in
human resources management certain procedures such as employment process or
the filing of employee records and reports can be considered as routine work, but
in matter dealing with individual employee or with the labour union, there are no
rules in order to meet their problems. Each problem may be considered for a
particular approach and a particular situation. Business executives found that it is
often more difficult to solve human relations problems than technical ones and that
HR Management is essentially a human relations problem-solving job concerning
with the whole game of human emotions and range of experiences. One of the
most knotty probleming in management of labour relations today is how to achieve
mutual understands, and adjustments which are brought about by constant changes
in a modern business organization. All levels of management, from the president
to the lowest supervisory personnel, generally recognize that most of the problems
confronting them involve the human resources management. Their solution
requires thoughtful attention and careful action, However, such problems of
human resources can be more effectively handled with the help of the human
resource manager who is a specialist on problems involving men at work. Line
supervisors/managers should regard him as an ally, not an enemy. Experience have
proved that the functions involved in managing men and women on the job can be
carried out more effectively and economically with the assistance of the personnel
staffs who are, in turn, conversant with the science and art of personnel
management.
2. RESPONSIBILITIES.
In actual practice, human resource management is a management function. This
means that everyone (every supervisor/every manager) is indirectly a personnel
man as he has to implement personnel administration policies and programs
conducive to his respective department or section. At the top level (president and
vice- president) emphasis would be on policy making and planning, where as the
middle management level (Dept. Manager, Ass’t Mgr. Or Superintendent)
emphasis would be on developing subsidiary plans and implementation of policy
and objectives. And at a supervisory level (Shift engineer, Supervisor or foreman)
emphasis is entirely on implementation and control measures to see that the HR
administration policies and programs are properly managed or carried out. The
human resource department, However, serves as staff (who advises, assists and
services) to all levels and the top HR Dept. man should be a part of Management
team.
PLANING
In HRM, planning refers to the formulation of personnel administration Policies,
and functions to achieve the goals of the company.
ORGANIZING
In HRM organizing refers to the arrangement and relationship of necessary
activities, division of work, line of authority and communication system
established to get the work done at specified time.
DIRECTING
Is concern with the guidance of all efforts toward the objective. It provides a
means of putting plans into action through effective supervision, work rules and
procedures. Effective communication among the personnel staff can also be a
means in carrying out the tasks of directing. If the personnel staff knows exactly
their duties and responsibilities, they can work with greater efficiency and
accomplish more.
CONTROLLING
When the program has been implemented, changes or deviations may have to be
reviewed and corrected when necessary. The control system will show whether
the personnel program is being carried out satisfactorily as planned or not.
Apart from the political related to personnel administration, other Fields of study
can contribute to the understanding and developing the personnel. Administration
on entering personnel should be acquainted with the basic knowledge of related
fields, namely, psychology, economics law, politics, research, statistics, religion,
culture and behavioral science, all these sciences are directly related to the
administration of human resources.
COMPANY STRUCTURE
In well-organized organization the unity of command and delegation of authority are very
much essential. No employee can work successfully for more than one immediate
superior at the same time. A subordinate who receives conflicting orders from more than
one superior is likely to be confused, irresponsible and inefficient, and our organization
charts have to be made clearly in accordance with principles of good organization.
Delegation
Give the executives an opportunity to take an additional work of high importance for
instance planning, organizing, staffing, controlling, motivating and coordinating.
Delegation
Relieves them of petty, routine details that can be done by others.
Delegation
gives subordinates a chance to use their initiative and judgement.
Hence authority and responsibility of every superior shall be clearly spelled out in writing
and properly communicated to all concerned. Each employee in the company must know
to whom he reports and who are under his supervision. Through this, jurisdictional
disputes shall be minimized.In order to carry out assigned tasks, responsibility requires
commensurate authority, responsibility without authorityresults in chaos. However, the
following phase should be eliminated that “Officers seek authority but shirk
responsibility”. This results in buck-passing and ends in inefficiency.
To be effective, the following devices will be used to effectively carry out the
Delegation of authority, one of important philosophies of the company.
Organization charts.
Written regulations/orders.
Job descriptions of key positions.
Authoritative manual.
Human resources management manual (HRMM).
To the above questions, the flip answer is "it all depends" with criteria;
Competence to make a decision on the part of the person to whom the authority is
delegated and also confidence in that competence on the superior.
Scope of impact of decision which effect the men, money or material within and
without his own department. Any decision which may effect more than one
department rests with the higher authority than department head.
A reliable and adequate information to make a decision for some special case of
unroutine nature. However, a the rule, the accountability of higher authority for
the acts of its subordinates is absolute.
ORGANIZATION CHARTS
Objective
An Organization chart.
Helps the management to apportion the various duties or functions in order that they will
be performed with a minimum of waste.
An organization chart.
Helps to visualize the company structure (as stated under policy no.2)as whole. It portrays
the principal divisions and lines of formal authority and responsibility.
An organization chart.
Is similar to an architect's blueprint of the house, in showing exactly the responsibility of
each person in the company.
An organization chart.
Is a communication system for assigning work, giving out jobs, delegating authority,
fixing responsibility, and receiving information or results.
1. The objectives of the enterprise and its component elements should be clearly
defined and stated in writing, the organization should be kept simple and flexible.
Activities
Authority
1. There should be clear lines of authority running from the top to the bottom of the
organization and accountability from bottom to top.
2. The responsibility and authority of each key position should be clearly defined in
writing.
Relationships
3. The accountability of higher authority (higher boss) for the acts of its subordinates
is absolute.
In order to meet the above objectives, the following existing organization charts are
made.
Straight-forward, clear and consise HR policies and job descriptions are imporant for a
number of reasons. Failing to implement policies and job descriptions leaves your
company open to legal challenges, grievances and lawsuits, especially if you
inconsistently apply your human resouces policies and your pay structure/system.
Grievances and lawsuits lead to:
» Increased turnover
» Negative morale
Your company will avoid these problems if you implement hr policies, procedures and job
descriptions and you can easily do this if you download our sample job descriptions and hr
policies.
Your company needs human resources policies and procedures and current job
descriptions so that your staff are treated equally across a variety of employment issues. In
addition, human resouce polices help if legal situations arise.Our services are ideally
suited for:
» Managers
» HR Professionals
» HR Consultants
» Lawyers
Small businesses often scramble for resources when compiling staffing information,
contracts, developing HR policies and procedures and writing job descriptions. In
addition, many large companys have dated policies, procedures and job descriptions that
no longer reflect the reality of today's business world. Companies looking for fresh ideas
and a fresh start to can find what they are looking for with our sample hr policies and
sample job descriptions.
HR Strategy
“HR Strategy is the system of human resource practices for a particular job or collection
of jobs aimed at the best employee performance possible to meet the firm’s ultimate
goals”
– System of practices
The following check-lists present some questions which may prove helpful for you to
think about when planning your development programs for human resources (your people)
in your organization.
Use them to provoke thought and to stimulate discussion. Consult with others in your
organization. They will help you to identify the critical human resource issues facing your
organization.
The aim is to begin to explore how a considered and planned approach to people
management can improve business performance, to the benefit of all.
Use this checklist in conjunction with our team building diagnostic instrument. It will, via
your team members responses identify critical issues they perceive as important. These
issues may be at odds with your own perceptions and analysis and therefore any such
discrepancy will need to be addressed.
Corporate Strategy
Business Strategy
HR Strategy
HR System
(Performance Mgmt.)
Warning Indicators
Your organization is more than likely in trouble if any of the following holds true:
inter-group conflicts
quality is unimportant
inter-departmental conflict
Culture
Do your staff identify with the organization and 'the success of the organization' as
being of direct benefit to themselves?
Do your staff see themselves as having common interests with their work
colleagues and group? Is there a strong team spirit?
Is work allocated on the basis of individual expertise rather than position in the
organization?
Organization
Does your organization structure tend to push problems up rather than resolve
them at the point where they occur?
People
Do your staff have the necessary skills and knowledge to perform their jobs in the
most effective manner?
Do your staff understand their jobs and how they contribute to overall business
performance i.e. have clear goals and objectives?
Are people with potential spotted and developed for the future?
Are your staff encouraged to perform well through the giving of recognition,
feedback, etc.?
Systems
Are there clear rewards for effective performance within your work group?
Does the organization review its systems frequently and ensure they mutually
support each other?
CHAPTER - III
INDUSTRY PROFILE
PHARMACEUTICAL INDUSTRY PROFILE
The Pharmaceutical Industry develops, produces and markets drugs licensed for use as
medications. Pharmaceutical companies can deal in generic and/or brand medications. They are
subject to a variety of laws and regulations regarding the patenting, testing and marketing of
drugs. The main aim of a particular Pharmaceutical Industry is to develop research and distribute
drugs in order to provid e health care for the people in the societ y. The Pharmaceutical Industry
continent”
Richand Gerster
The Pharmaceutical Industry needs to follow ru les about patent, marketing as well
as testing of drugs that are scheduled to come to the market as medicines. Since the inauguration
of the Pharmaceutical Industry in the 19th century, it has covered a long way and now it has
become one of the most influential and successful industry in the world with both controversy and
discoveries that are made to search new types of drugs and also to search for new kind of
medicines. One can also differences within the industry regarding the same drug or report and
different companies within the Pharmaceutical Industry loo k to follow d ifferent paths for the
same thing. Drug Discovery and Drug Innovation are two very aspects in the Pharmaceutical
Industry:
DRUG DISCOVERY:
Drug Discovery is a process through which potential drugs are designed or discovered. It
has been observed in the past that most of the drugs were invented by means of isolating the active
component from remedies which are traditional in nature or through another kind of discovery
This process is taken forward after the discovery is done and a thing is identified as a potential
drug. The development takes place immediately after that as the component is turned into a
medicine. So this is also considered as a very Important process and has great importance in the
Pharmaceutical Industry. For the first time ever, in 2006, global spending on prescription drug
stopped $643 billion, even as growth slowed somewhat in Europe and North America. The
United S tates accounts for almost half of the global pharmaceutical market, with $289 billion in
annual, sales followed by the EU and Japan. Emerging markets such as China
Russia, South Korea and Mexico outpaced that market, growing a huge81 percent.US profit
growth was maintained even whilst other top industries saw slowed or no growth. Desp ite this,
the pharmaceutical industry is —and has been for years — the most profitable of all businesses in
the U.S. In the annual Fortune 500 surve y, the p harmaceutical industry topped the list of the
most profitable industries, with a return of 17%on revenue. Indian Pharmaceutical Industry today
is the front runner of India’s science-based industry with wide ranging capabilities in the complex
field of drug manufacture and technology. A highly organized sector, the Indian Pharmaceutical
ranks ver y high in the world, in terms of technology, quality and range o f med icines
The pharmaceutical sector is highly fragmented with more than 20,000 registered
units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical
companies control 70% of market with market leader holding nearly7%of the market share. It is
an extremely fragmented market with seven price competition and government price control. The
pharmaceutical industry in India meets around 70%of the country’s demand for bulk drugs, drug
There are about 250 large units and about 8000 Small Scale Units, which form the core of the
pharmaceutical industry in India (including 5Central Public Sector Units). These units produce
the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by
patients and about 350 bulk drugs. i.e., chemicals having therapeutic value and used for
Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs
of production, low R&D costs, innovative scientific manpower, strength of national laboratories
and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents
and research capabilities, supported by Intellectual Property regime is well set to take on the
international market.
US PHARMACEUTICAL INDUSTRY
(PhRMA), those
The U.S. market is the world’s largest free-pricing market for pharmaceutical and
has a favorable patent and regulatory environment. Product success is largely based on
competition in product quality, safety and efficacy, and price. U.S. government support of
Some of the below list of the Pharmaceutical industries in India are as follows:
• Dishman Pharmaceuticals
• Elder Pharmaceuticals
• J B Pharmaceuticals
• Torrent Pharmaceuticals
• Sun Pharmaceuticals
• Ranbaxy India
• Wockhardt
• Strides Arcolab
• IPCA Laboratories
• Alembic
• Amrutanjan
• Virchow Laboratories
• Polydrug Laboratories
• Aurobindo Pharma
• Jubilant Organosys
• Astrazeneca Pharma
• Divis Laboratories
• Merck Ltd.
ADVANTAGE INDIA:
COMPETENT WORKFORCE:
India has a pool o f personnel with high managerial and technical competence
as also skilled workforce. It has an educated work force and English is commonly used.
beneficial chemical synthesis for various drug molecules is excellent . It provides a wide
India has a 60 year old democracy and hence has a solid legal framework
and strong financial markets. There is already an established international indu stry and
GLOBALIZATION:
Above all, it has a 70 million middle class market, which is continuously growing.
CURRENT SCENARIO
India’s US $ 4 .1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It
is one of the largest and most advanced among the developing cou ntries. Over 20,000 registered
pharmaceutical manu factures exist in the countr y. The domestic p harmaceutical industry output
is expected to exceed Rs.260 billion in the financial year 2002, which accounts formerly 1 .3% of
the global pharmaceutical sector. Of this, bulk drugs will accou nt for Rs. 54 bn (21%) and
EXECUTIVE SUMMARY
This report has been made keeping in mind the Indian Pharmaceutical industry, its growth rate as
compared to the global Pharmaceutical Industry. India's US$ 3.1 billion pharmaceutical industry
is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the
developing countries. The Indian Pharmaceutical sector is highly fragmented with more than
20,000 registered units. It has expanded drastically in the last two decades. The leading 250
pharmaceutical companies control 70% of the market with market leader holding nearly 7% of
the market share. It is an extremely fragmented market with severe price competition and
government price control. Then, we loo k at the market and growth scenario of P harmaceutical
The Indian Pharmaceuticals market is expected to reach US$55 billion in 2020 from US$12.6
billion in 2009. This was started in a report title “Indian Pharma 2020: Propelling access and
acceptance, realizing true potential” by McKinsey & Company. In the same report, it was also
mentioned that in an aggressive growth scenario, the pharma market has the further potential to
Due to increase in the population of high income group, there is very likelihood that they will
open a potential US$ 8 billion market for multinational companies selling cost drugs by 2015.
This was estimated in a report by Emst & young. The domestic pharma market is estimated to
touch US$ 20 billion by 2015. The health care market in India to reach US$ 31.59 billion by
2020.
The sale of all types of pharmaceutical drugs and medicines in the country stands at US$ 9.61
billion, which is expected to reach around US$ 19.22 billion by 2012. Thus India would really
There was another report by RNCOS titled “Booming Pharma Sector in India” in which it was
projected that the pharmaceutical formulations industry is expected to prosper in the same manner
as the pharmaceutical industry. The domestic formulations market will grow at an annual rate of
around 17% in 2010 and 2011, owing to increase middle class population and rapid urbanization.
Steps to strengthen the Industry:
• Indian companies need to attend the right product- mix for sustained future growth.
• Core competencies will play an important role in determining the future of many Indian
Pharmaceutical companies in the post product-patents regime after 2005.
• The companies in an effort to consolidate their position will have to increasingly look at
merger and acquisition options of either companies or products.
• Research and development has always taken the back seat amongst Indian
Pharmaceutical companies.
• The Indian Pharmaceutical Industry also needs to take advantage of the recent advance
in biotechnology and information technology.
COMPANY PROFILE
.
ABOUT THE COMPANY
Dr. Reddy’s laboratories was founded by Dr. Anji Reddy, entrepreneur-scientist, in 1984
the DNA of the company; is drawn from its founder and his vision to establish India’s first
discovery led global pharmaceutical company .in, fact, it is this spirit of entrepreneurship that has
shaped the company to become what it is today. The company is focused on creating and
delivering innovative and quality products to help people lead healthier lives.
Dr. Reddy’s is the research based company with vertically integrated operations. The
company develops, manufactures and markets a wide range of pharmaceutical products India and
overseas. Dr. Reddy’s produces finished dosage forms, active pharmaceutical ingredients,
diagnostic, kits, critical are and biotechnology products. The basic research program of Dr.
Since its inception in 1984, Dr. Reddy’s has chosen to walk the path of discovery and
innovation in health sciences R eddy’s has been a quests to sustain and improve the quality of life, and
they; heaves had nearly two decades of creating safe pharmaceutical Solutions with the ultimate
purpose of making the world a heather place. Dr. Reddy’s create and deliver innovative
pharmaceutical health care solutions that people enjoy longer, healthier and more productive lives.
Reddy’s generic formulations have also become very popular in quality-conscious regulated markets
such as the US and Europe. We are all set to spread pure wings further and touch more lives across the
globe
In 1973, after gaining six years of experience in the manufacturing and implementation
of new technologies in bulk drugs from public sector company IDPL, Hyderabad. Dr Reddy’s
decided to start up basic drugs unit at that time there were few other players in the private sector
In 1975, Dr. Reddy’s started the construction of uniloids of which he was the founder-
managing director it was here that they made a move that was to become the hallmark of the
This move was first to construct and stat R&D laboratory ever before commencing the
construction of the plant. Based on the work done in these laboratories he constructed a plant in
1976 to manufacture, for the first time in India, drug called ‘metrodinazole’ for the treatment of
In 1981, as managing director of standard organics Ltd; Dr. Reddy’s aim was to develop
and manufacture a wide spectrum of bulk drugs to enable the pharmaceutical industry to launch
their formulations. Unfettered. There were only a couple of – pharmaceutical company‘s at that
time with the capacity to develop newer drugs bit they would not sell the bulk to other
formulators. Here, Dr. Reddy’s played a major role in pioneering the technology and production
of ‘sulphamethonazole ‘an anti bacterial in India. Another dream was to do it on his own, because
that was the time that his second experiment with partnership was also crumbling. He realizes his
dream shortly thereafter, then the established Dr. Reddy’s laboratories in 1984. The process and
from Asia Pacific (outside Japan) to be listed on the New York Stock Exchange (on April 11,
2001) is only one among then. And as always, Dr. Reddy’s chose to do it in the most difficult of
circumstances against widespread skepticism. Dr. Reddy’s came up trumps not only having its
stock oversubscribed but also becoming the best performing IPO that year.
Dr. Anji Reddy’s is well known for his passion for research and drug discovery.
Dr Reddy’s started its drug discovery programmed in 1993 and within three years it achieved its
first break through by out licensing an anti –diabetes molecule to Novo Nor disk in March 1997/
With this very small but significant step, the Indian industry went through a paradigm shift in its
image from being known as just ‘copycats’ to ‘innovators’! Through its success, Dr. Reddy’s
pioneered drug discovery in India. There are several such inflections points in the company’s
evolution from a bulk drug (API) manufacturer into a vertically integrated global pharmaceutical
company today.
Today , the company manufactures and markets API(Bulk Actives), Finished Dosages and
Biologics in over 100 countries worldwide, in addition to having a very promising Drug
Discovery Pipeline. When Dr. Reddy’s started its first big move in 1986 from manufacturing and
marketing bulk actives to the domestic (Indian) market to Manufacturing and exporting difficult-
to-manufacture bulk votes such as Methyldopa to highly regulated overseas markets, it had to not
only overcome regulatory and legal hurdles but also battle deeply entrenched mind-set issues of
Indian Pharma being seen as producers of ‘cheap’ and therefore ‘low quality’ pharmaceuticals.
Today, the Indian pharma industry, in stark contrast, is known globally for its proven high
quality-low cost advantage in delivering sage effective pharmaceuticals. This transition, a tough
and often-perilous one, was made possible thanks to the pioneering efforts of companies such as
across the value chain, producing and delivering safe, innovative, and high quality finished
dosage forms, active pharmaceutical ingredients and biological products. Our products are
marketed across the globe, with an emphasis on North America, Europe, India, Russia and other
emerging markets. We conduct NCE drug discovery research in the areas of metabolic disorders
and cardiovascular indications at our research facilities in Atlanta (USA) and Hyderabad (India).
Through our Custom Pharmaceutical Services business unit, we provide drug substance and drug
Today, Dr. Reddy’s continues its journey. Leveraging on its ‘Low Cost, High Intellect”
advantage. Foraying into new markets and new businesses. Taking on new challenges and
groaning stronger and more capable. Each failure and each success renewing the sense of purpose
and helping the company evolve with over 950 scientists working across the globe, around the
clock, the company continues its relentless march forward to discover and deliver a breakthrough
medicine to address an unmet medical need and make a difference to people’s lives worldwide.
And when it does that, it would only be the beginning and yet it would be the most important
step. As Lao Tzu wrote a long time ago, ‘Even 1000mile journey starts with a single step.
DR.REDDY’S LTD IN INDIA:
Dr. Reddy’s originally launched in 1984 producing generic medications. In 1986, Reddy’s started
operations on branded formulations. Within a year Reddy’s had launched Norilet, the company’s first
recognized brand in India. Soon, Reddy’s obtained another success with Omez, its branded
omeprozole – ulcer and reflux oesophagitis medication – launched at half the price of other brands on
Within a year, Reddy’s became the first Indian company to export the achieve ingredients for
Dr. Reddy’s began as a supplier to Indian drug manufactures, but it soon started exporting to
other less-regulated markets that had the advantage of not having to spend time and money on a
manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food
and Drug Administration. This allowed their movement into regulated markets such as the US
and Europe.
Dr. Reddy’s began as a supplier to Indian drug manufactures, but it soon started exporting to
other less-regulated markets that had the advantages of not having to spend time and money on a
manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food
To creating a work environment that promotes safety, people training and development
To Improvement in supply and availability of utilities and time bound repair of m/c and
Ensure that the equipment and related systems (both old and new) are (re)qualified /
Reduce utilities consumption in line with the site objectives. To identify and implement
To ensure that all the drawings and technical specifications of the equipment and system in
along with documentation, of filters and other related equipments) as per SOP.
COMPANY MISSION:
To be the first Indian pharmaceutical company that successfully takes its products from discovery
We are on a tough mission and energies can easily dissipate unless there is direction and
dedication.
AWARDS:
The Dr. Reddy’s ltd has been a regular recipient of the awards for excellence in Pharma sector,
The Saumen Chakroborty- CFO of awarded to Dr. Reddy’s lab the Best Performance Award
sustained for CFO in the Pharma Sector for 2007 development of overseas business.
D .Reddy’s lab also received the award in 2004 for the Most Respected Company award.
It also received the award in 2004 for the Best Employers in India. For development of
indigenous know-how, continued support is also necessary and a detailed write up on R&D
facilities is enclosed.
INSIGHT INTO VARIOUS DEPARTMENTS:
The research and development division, established in the late 1980’s, is central to the
creating intellectual property, providing research to reduce the cost of production of the
products and playing an active role in the selection and development of new products.
The analytical research group supports the development activity by carrying out
MANUFACTURING UNITS:
Cheminor drugs Ltd. Merged in to Dr. Reddy’s Labs in the year 2000-01 restructured as
Bulk
Branded formulation
Generics
Corporate center
3 units in Bollarum
1 unit in Jeedimetla.
1 unit in Miryalaguda
1unit in PydiBhimavaram
QUALITY POLICY:
Dr. Reddy’s is committed to provide customer’s products meeting or exceeding exceptions
competitive.
Customer Focus:
competitiveness
Execution Excellence:
Competency Building:
Beneficial Partnerships:
We will develop and maintain mutually beneficial relationships with all business
associates and provide lasting value to all stakeholders. Constantly improve the procedure,
technologies & infrastructure to continuously better the quality of products produced. Ensure
optimum training to all personnel accountable for quality related activities. Maintain mutually
beneficial relationship with vendors, enrich the quality of life of employees & provide lasting
value of shareholders.
• SOCIAL INITIATIVES:
We at Dr. Reddy’s take pride in the company’s mission – to help people lead healthier lives.
This objective is achieved by increasing access and affordability of medicines through the company’s
generics, API, and branded generics products, and by addressing unmet medical needs by innovation
investments in the community have gone beyond the adhoc disbursement of funds, to planned
Our Social Initiatives do not involve just the community, but employees as well by including
employees in our definition of Social Initiatives; the company ensures that the initiators also
Managing
Director
General
Manager
Manager Manager
Explosives Production
The company’s net sales increased by 31.8% yoy, led by 29.9% yoy and 26.8% yoy growth
across the global generics and proprietary products businesses, respectively. This led to OPM
expansion and net profit growth during the period. Management has reinforced its FY2013
guidance of us$2.7bn, with RoCE expected to come in at 25%. We recommend accumulate on the
stock.
Results much above expectations: DRL reported net sales of Rs.2,658 cr for 4QFY2012,
registering 31.8% yoy growth, which was higher than our estimate of Rs.2,272cr. The U.S. and
row were the key growth drivers for the company, registering strong growth of 47.5% yoy and
32.3% yoy, respectively. The domestic market reported single-digit growth of 16.7% yoy. The
company’s EBIT margin expanded by 235bp yoy to 18.9%, resulting in adjusted net profit
Outlook and valuation: DRL has reinforced its earlier revenue guidance of US$2.7bn by
FY2013E with RoCE of 25%. We expect net sales to report a 9.8% CAGR to rs.11,662cr and
adjusted EPS to record a 2.3% CAGR to rs.92.9 over FY2012-14E. We maintain our Accumulate
Our business practices are guided by highest ethical standards of truth integrity and transparency.
To strive for excellence in everything they think, say and so. The values that guide the thoughts
• Quality:
We uphold the self-esteem and dignity of each other by creating an open culture
We create an environment of innovation and learning that fosters, in each one of us, a
and resources to create greater value across functions, businesses and locations.
• Harmony & Social Responsibility:
Dr.Reddy’s take utmost care to protect our natural environment and serve the communities
• STRENGTH:
Manufacturing & market over 250 medicines targeting a wide range of therapies.
• WEAKNESSES
High amount of revenues from overseas.
In another 4-6 years many product patent obtained after the 2004 legislation will go
Generic.
Buy back of the integrated drug development company from ICICI venture &
Citigroup.
• THREATS:
Revenue running into billions which dwarfs Reddy’s annual turnover litigation charges.
Products have to pass strict FDA trails before going to market, which can be costly and
time consuming.
74
CHAPTER-IV
DATA ANALYSIS&INTERPRETATION
75
1) What is Policies According to You?
a) Psychological response
b) A feeling experienced by a person
c) Demand or Pressure
d) Emotional effect
Particulars Response (No of persons)
Psychological response 10
Demand or Pressure 15
Emotional effect 5
80
70
60
50
40 Particulars
Response (No of persons)
30
20
10
0
1 2 3 4
Interpretation:
10 members said the about stress as a Psychological response, 70 members said the about
stress as A feeling experienced by a person, 15 members said the about stress as a Demand or
Pressure 5 members said the about stress as Emotional effect.
76
2) Do you feel that training programmers are necessary for employees?
NO OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS
2 NO 0 0
% OF RESPONDENTS
120
100
80
60
40
20
0
1 2
YES NO
Interpretation:
From the above analysis we can say that 100% employees feel that the
training programmers are necessary for employees. The 0% employees feel that training
programmers are not necessary for employees.
77
3) Training &development programmers affect employees in getting promotion.
Do
you agree?
S.N NO. OF % OF
O OPTIONS RESPONDENTS RESPONDENTS
2 DISAGREE 0 0
Interpretation:
About 100% of the employees agreed that the training and development
programmers affect employees in getting promotion and 0% of the employees disagreed
that the training and development programmers affect employees in getting promotion.
78
4) Are you satisfied with present HRM Policies following in your organization?
NO OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS
1 YES 56 56
2 NO 44 44
Interpretation:
About 56% of the employees are satisfied with present HRM programmers in
organization. 44% of the employees were not satisfied with present programmers in
organization.
79
(a) YES (b) NO
S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS
1 YES 80 80
2 NO 20 20
% OF RESPONDENTS
20%
Yes
No
80%
Interpretation:
From the above analysis 80% of the employees are satisfied with
working conditions in this organization. Rest 20% of the employees are satisfied with
80
6) Did Organization give sufficient freedom to express your views and
suggestions?
NO OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS
2 NO 0 0
Interpretation: All the employees are satisfactory in the expiration of their views and
suggestions
81
7) Does your management give you recognition for good results?
S NO OF % OF
.NO OPTIONS RESPONDENTS RESPONDENTS
1 YES 80 80
2 NO 20 20
Interpretation:
From the above analysis we can say that 80% of the employees
Responds that their management gives recognition for their good results. And 20% of the
Employees respond that their management not gives recognition for their good results
82
8) Duration of training & Development programmed is sufficient?
S. NO OF % OF
NO OPTIONS RESPONDENTS RESPONDENTS
1 YES 20 20
2 NO 80 80
Interpretation:
From the above analysis we can say that 80% of the employees are
not sufficient for duration of the programmed. And 20% of the employees are sufficient
9) Do you think that incentives are needed for attending training programmers?
83
(a) YES (b) NO
S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS
2 NO 0 0
Interpretation:
From the above analysis we can say that 100% of the employees feel
Those incentives are needed for attending training programmers. 0% of the employees
feel those incentives are not needed for training programmers.
84
(a) Short term (b) Medium (c) long term
S.N NO.OF % OF
O OPTIONS RESPONDENTS RESPONDENTS
SHORT
1 TERM 40 40
2 MEDIUM 60 60
3 LONG TERM 0 0
Interpretation:
85
11) Do you have promotional policies in organization?
NO OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS
2 NO 0 0
Interpretation:
86
12) Will you have an opportunity to apply your newly acquired knowledge and
skills?
S.N NO. OF % OF
O OPTIONS RESPONDENTS RESPONDENTS
1 TO SMALL EXTENT 20 20
2 TO FULL EXTENT 56 56
3 TO GREAT EXTENT 24 24
Interpretation:
87
13) What is the overall impression of the Organization?
NO.OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS
1 EXCELLENT 0 0
2 GOOD 60 60
3 SATISFACTORY 40 40
4 POOR 0 0
Interpretation:
88
a) Yes
b) No
Yes 30
No 70
80
70
60
50
40 Particulars
Response (No of persons)
30
20
10
0
1 2
Interpretation:
30 employees are said that there are recreational programs/events at your work place
And 70 said that there are no such programs.
89
15) As per your opinion which of the following cause the major loss?
a) Positive Stress
b) Negative Stress
c) Both of them
d) Lack of competencies over the job
Positive Stress -
Negative Stress 22
Both of them -
90
80
70
60
50
40
30
20
10
0
1 2 3
Interpretation:
22 said that Negative stress causes major loss and 78 said that Lack of
competencies over the job cause major loss.
90
16) Do you setup reasonable and attainable goals when you have a large project to
computer?
a) Yes
b) No
Yes 88
No 12
100
90
80
70
60
50 Particulars
Response (No of persons)
40
30
20
10
0
1 2
Interpretation:
88 respondent’s setup reasonable and attainable goals when you have a large
project to computer and 12 say No.
91
CHAPTER-V
92
FINDINGS
The training and Hr Policies program in DR REDDYS is focused on new and old
employees.
The HRM Policies program in DR REDDYS is also the company response to new
innovation and upcoming technologies.
The goal of the program is mainly to improve the job related skills.
It has been observed during the study that most of the employees expressed the need for
each employee to attend the training program least once in a year.
The job security is not been effected by the training program being undergone.
The training program is very much relevant to the present nature of work.
93
CONCLUSION:
In the above perspective, the present chapter makes an attempt to draw some conclusions. It
should be confessed here that the investigator is conscious of the limitations of the study and
the conclusion drawn on the basis of the sample from a single unit cannot be generalized
about the entire manufacturing sector.
The study examines the readiness for employee empowerment in six aspects, namely
effective Communication, Value of people, Clarity , Concept about power, Information and
Learning.
A perusal of data pertaining to combination makes us to conclude that the Executives have
agreed to the effective down ward communication flow, which is a prerequisite for
empowerment.
With regard to value of people, the analysis leads to the conclusion that the Executives give a
reasonable value to the Human Resources in the Organization. However, in respect of
concept about power, they are somewhat agreed to share the power.
As far as information sharing with lower rungs is concerned, they are very positive.
One significant conclusion with regards to learning opportunities, which is a basic for
empowerment, is that the executives are favorable and feel that sufficient learning
opportunities should be there for the rank & file.
94
SUGGESTIONS
Training and controlling program may be arranged so that each of the employees under
goes it at least once in a year.
The training sessions should be handled by both the internal and external faculty so that
it provides more comfort and also the knowledge of the external environment.
The modern methods of training should be used so as to have a competitive edge in the
market place.
The organization should also have high emphasis on the accuracy of performance in the
training program.
Training should be given to all groups at all levels to improve the efficiency on the whole.
The training programs conducted should be need training programs for improvement of
the skills and the knowledge.
All the employees should be provided a minimum and basic technical knowledge.
95
BIBLIOGRAPHY
Websites:
www.google.com
www.hrindia.com
www.drreddys.com
96
QUESTIONNAIRE
(b) NO
you agree?
(a) Agree
(b) Disagree
3) Are you satisfied with present HRM Policies following in your organization?
(a) YES
(b) NO
(a) YES
(b) NO
(a) YES
97
(b) NO
(a) YES
(b) NO
(a) YES
(b) NO
8) Do you think that incentives are needed for attending training programmers?
(a) YES
(b) NO
(b) Medium
(a) YES
(b) NO
11) Will you have an opportunity to apply your newly acquired knowledge and
skills?
a) To a Small extent
(a) Excellent
(b) Good
(c) Satisfactory
98
(d) Poor
99