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HUMAN RESOURCE MANAGEMENT


            Performance
      Management System
                          Pharmaceutical Sector
         SUBMITTED BY:       SANA MAHMOOD (10286)

                              MONIKA KUMARI (11118)

                                ZARLISH ZAHID (10301)

                                 ADIL HUSSAIN (9997)

                                     OWAIS NATHANI

         SUBIMITTED TO:            Dr. KHALID AMIN

                                   Ms. DEEP KIRAN



                                                        [Year]




       INSTITUTE OF BUSINESS ADMINISTRATION
ACKNOWLEDGEMENT


First of all, we would like to thank THE ALMIGHTY ALLAH, for giving us the strength and health to
do this project work.

Then I would like to thank my teacher, Dr. Khalid Amin and Ms. Deep Kiran for guiding us throughout
this project. We had some difficulties in doing this task, but they taught us patiently until we knew what
to do. Their guidance and support was valuable.

We would also like to thank all the people with whom we interacted during the project, all the
employees of various insurance companies that we went to, without their support, openness, and
information about the companies’ policies and system, we wouldn’t have been able to complete our
report.

We would also like to thank Mr. Wasil Mehmood, HR Officer (Efroze Chemical Industries),
Ms. Sabhat HR Manager (Pfizer), Ms. Zareena, HR Manager (GSK), without their support and
information they share with us we won’t be able to complete this report.
Table of Contents
EXECUTIVE SUMMARY........................................................................................................................................ 4
PAKISTAN PHARMACEUTICAL INDUSTRY ..................................................................................................... 5
Sale Profit After Tax .................................................................................................................................................. 6
Efroze Chemical Industries ........................................................................................................................................ 7
   Assessment of Efroze Chemical Industries ............................................................................................................ 8
Glaxo Smithkline Pakistan Limited ......................................................................................................................... 11
   Assessment of Glaxo SmithKline Pakistan Ltd. .................................................................................................. 13
Pfizer ........................................................................................................................................................................ 16
Conclusion: .............................................................................................................................................................. 19
   Comparison between the companies: ................................................................................................................. 19
Recommendations: ................................................................................................................................................... 20
References ................................................................................................................................................................ 21
Appendix .................................................................................................................................................................. 22
   Questionnaire ....................................................................................................................................................... 22
EXECUTIVE SUMMARY
This report is assigned by our Instructor Dr. Khalid Amin and Ms. Deep Kiran to our group members,
the sector given to us is Pharmaceutical. The purpose of our term report is to evaluate Performance
Management System of 3 different pharmaceutical companies. In this report we have discuss the current
situation of pharmaceutical industries like where we in this sector? What role local pharmaceutical and
international companies are playing? What is their share in GDP? In this term report we also include
how HR department of pharmaceutical companies are working? How they manage Performance
Management system

This report consists of the following section and details.

       An Overview of Pharmaceutical industry of Pakistan? From History to current situation.
       Background of Company: This provides the history of the companies.
       Comparison between companies Performance Management System
       Conclusion
       Recommendations
PAKISTAN PHARMACEUTICAL INDUSTRY

According to market research firm IMS Health,
       Top 50 companies (30 multinationals and 20 domestic) enjoyed an 83.5% market share in mid-
       2000s.
       The top 100 had 94% of the Pakistani pharmaceutical market.
       Pakistan's US$1.62bn pharmaceutical market is the 10th largest in Asia Pacific.
        Annual per-capita spending on medicines is US$10, which is far below the regional average of
       US$142.Market access is challenging and operational risks are high.
       Currently the industry has the capacity to manufacture a variety of product ranging from simple
       pills to sophisticated Biotech, Oncology and Value Added Generic compounds.



Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by 25
multinationals present in the country. The industry meets around 70% of the country's demand of
Finished Medicine. In term of share market domestic is almost evenly divided between the Nationals
and the MNCs.

The National pharma industry has shown a progressive growth over the years, particularly over the last
one decade. The industry has invested substantially to upgrade itself in the last few years and today the
majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic
as well as international Guidance.

Pakistan’s pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the
population has no access to modern medicines. Clearly this presents an opportunity, but much more
work needs to be done by the government and industry's stakeholders. Pakistan political instability is
badly affecting the industry

The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita
consumption of less than US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B
by 2012.

Pakistan is a developing pharmaceutical market, with a large population and economic progress evident,
but per capita drug spending was rather low at around US$9.30 in 2007
The Pakistan pharma industry is relatively young in the international markets with an export turnover of
over US$ 100 Million as of 2007.

 Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatory
authorities all over the world.

Data from the Karachi Stock Exchange reveals that there are eight listed pharmaceutical companies in
Pakistan. The majority are subsidiaries of foreign multinationals, with local representatives Ferozsons
Laboratories and Highnoon Laboratories.




       Names               Financial            Sales             Sales
                           year end                            Profit Before        Sale Profit
                                                                    tax             After Tax


  Abbott Laboratories       November             83.7                6.4                4.1
     Pakistan Ltd


 Sanofi-Aventis Pakistan   December              51.2                 1                 0.5
           Ltd
 Ferozsons Laboratories       June                11                 3.5                2.6
           Ltd
GlaxoSmithKline Pakistan   December              158                35.4               23.1
           Ltd
 Highnoon Laboratories     December              22.8                .9                 .7
           Ltd
   Otsuka Pakistan Ltd        June               12.5                1.2                .8
  Searle Pakistan Ltd        June               24.6                 2.5               1.7
   Wyeth Pakistan Ltd      December             28.1                 2.7               1.7
         Total                                  392.6               53.6               35.1
Efroze Chemical Industries

Efroze Chemicals Industries (Private) Ltd. came into existence in 1968 with the Dedication to the
Quality Pharmaceuticals, to empower mankind by promoting mental and physical wellbeing across
Pakistan.

Efroze Chemical Industries, a leading domestic pharmaceutical manufacturer, was established in
Karachi in 1968. Its second factory was opened in 1999, with both facilities receiving international
certification shortly after.

       Total employees 375 people.
       Field staff consists of around 150 personnel.

The company product portfolio involved in the promotion of over 50 branded products belonging to
different therapeutic classes through its own distribution network. Its export operations, which started in
1992, now supply over 20 developing markets in Africa, the Middle East, Asia and the former USSR

Efroze Chemcial Industies financial data

       Sales are estimated at US$10mn a year.
       Annual Growth Rate 8.25% in terms of rupee
       Annual Growth Rate 1.96% in terms of Dollar

Strength

       Considerable demand for cheap generic medicines in the country.
       International certification of production facilities.
       Foreign partnerships, especially in relation to R&D activities.

Weaknesses

       Reliance on foreign-sourced raw materials.
       Strong competition from multinationals in the branded sector.

Opportunities

        Positive economic performance and rising patient purchasing power.
        Government and international encouragement for drug exports.

Threats

       Volatile political and economic climate.
       Depreciation of local currency making imports of raw materials more difficult.
Assessment of Efroze Chemical Industries

Following are the brief summary of the questionnaire the solution taken by the HR managers to
overcome the issues:

Performance Management System of Efroze Chemical Industry

Efroze Chemcial industry is a leading national company in pharmaceutical sector. We contact the
Mr. Syed Wasil Mehmood the HR officer.

1. According to the information he provide us that their company have a Performance Management
System through which they evaluate the performance of their employees they evaluate individual
performance corresponding to the goals they set in the beginning of every month or quarterly.

2. The Performance Management System is for all employees of the company that is 375 employees.

Distribution of Employees

            Field staff are 150
            Office staff 225

3. The Performance Management System is for all kind of employees like Sales, operation, finance, HR
and Admin employees but sale employees are more frequently evaluate then others because they directly
impact the sales and profit of the company.

He frequency of Performance Appraisal is different from department to department, like Sales
Employees and Operation Employees are more frequently evaluated as compare to other department
employees.

Sales and Operation Employees

Operation employees are evaluated frequently in order to quality control and sales employee is evaluated
in order to achieve sales target because they directly affect the sales of the company.

4. The Performance Appraisal of Sales and Operation Employees are done on semi annualy basis. The
Performance Appraisal H.R., Finance and Admin employees are done on annual basis.

5. According to the H.R. Officer Mr. Mehmood there is not only one purpose of Performance
Management System. But every purpose is prioritizing according to the goals and objective of the
company and according to the nature of job. For the employees of sale we first evaluate the performance
of sale rap, if the sales rep is facing any problem, we train them and then evaluate again, if the sales rep
continuously didn’t show performance up till quarterly evaluation we terminate. And if show up an
improvement he can be rewarded by incentive depending on his sales target.
6. Promotion and placement is also an important purpose of Performance Management System. The
ratings of employees are given the Head of Department of Department.

7. According to Mr. Mehmood Performance Management System Helps in every aspect of the firm like

       Increase in sales
       Increase in Profit
       Reducing HR turnover
       Increasing HR Motivation.

But he rates the area where performance Management benefits most.




                          Benefits of PMS


                                                       Increase in sale
                                                       Reducing HR turnover
                                                       Increase in Motivation




8. The HR Department took exit interview of high post employees, profitable employees (those
employees achieve good rating) and of employees of high turnover department. They HR satisfaction
level is “good”.

9. The HR Department encourages employees of to give suggestions to improve the quality of work and
management. The HR manager arranges meetings with the HOD of other department within one or 2
months. They receive above than 10 % suggestion from the Department Head.
Number Of Permanent
                     Employees
      300
      250
      200
      150
      100
       50
        0
                2007              2008             2009
10.

10 &11.The number of permanent employees is increasing in Efroze Chemicals according to the need of
each department. Stake holders are not involved in Performance Management System.
Glaxo Smithkline Pakistan Limited

Position in market:

GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of SmithKline
and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan)
Limited- standing today as the largest pharmaceutical company in Pakistan, 79% owned by the UK drug
major.



GSK is the largest pharmaceutical company in Pakistan, with a growing export business to
Afghanistan. GSK Pakistan is headquartered in Karachi and employs 1,800 people.

As a leading international pharmaceutical company we make a real difference to global healthcare and
specifically to the developing world. We believe this is both an ethical imperative and key to business
success. Companies that respond sensitively and with commitment by changing their business practices
to address such challenges will be the leaders of the future. GSK Pakistan operates mainly in two
industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-
the-counter- medicines, oral care and nutritional care).



Profits, Sales of the company:

GSK leads the industry in value, volume and prescription market shares. We are proud of our
consistency and stability in sales, profits and growth. Some of our key brands include Augmentin,
Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and renowned consumer healthcare brands
include Horlicks, Aquafresh, Macleans and ENO.

    According to its own 2008 annual report, GSK holds 11.39% of the market by value, 18.33%
    by volume, and 13.11% of the prescription market.

    Market share:
    GSKP Manager Corporate Communication Naufil Shahrukh told Dawn that the workforce of
    GSKP, a public listed company, stood at 2,000 while the BMSP, a private limited company, had
    more than 200 employees on its payroll.

    On impact of acquisition, he said that the transaction, when complete, would increase GSKP’s
    pharmaceutical market share from estimated 11 per cent to approximately 13 per cent. However,
    there would be no increase in consumer market share.
He added that the acquisition was in line with GSK’s emerging market strategy of growing its
international non-patent protected business.

The combination of this business with the existing GSK business will build on GSK?s successful
operations in the local market and will provide an opportunity for generating additional future
growth.

SWOT Analysis by the GSK Company:
Strengths:
       The largest pharmaceutical company in Pakistan, double the size of its nearest competitor
       Abbott Laboratories.

       Top three pharmaceutical products in terms of sales are GSK medicines.

       Hold over 50% of both the public and private vaccines sectors.

Weaknesses:

       Strong competition from low-cost generic equivalents, both legal and counterfeit.
       Lack of reforms in government regulatory policy.
       Strict labor laws and high corporate income tax rate.

Opportunities:
     Pakistan recognized as one of the fastest growing economies in the world.
     Economic growth resulting in an increase in consumer spending power.
     Continued need for vaccine supplies benefits GSK, which has a substantial vaccines
     portfolio.
     Sector modernization initiatives.

Threats:

   Weak intellectual property laws and a lack of their implementation.

   Rising numbers of generics, which is a major barrier to multinational investment.

   Increasing inflationary trends without consequent increases in the prices of drugs
   Increasing inflationary trends without consequent increases in the prices of drugs significant
   counterfeit drug industry.

   Rising costs of raw and packaging materials having an adverse effect on the company’s
   bottom line.
Some Issues GSK faced:

Employee Retention:
They resolved by focusing on transforming their culture to improve retention rates by enabling
workforce mobility. They make employees to look internally at opportunities within the organization via
PDP (PERFORMANCE DEVELOPMENT PROGRAM) process. They look after employees & take
care of their welfare revise remuneration & perks from time to time maintain good employee-employer
relations, execution of corporate polices & labor laws, emphasize on employees development & training
needs (in-house training + on the job training + safety training etc.)

Human Resource measurement and benchmarking compensation:

The solution to this problem GSK came up with is that an organized structure regarding all employees
salaries, updated personal files, global peoples. Software has been introduced by H.R whereby
employees can access all their personal information and can make any changes they need to. They
started dealing with all kinds of sensitive issues and harassment cases if any. Salary benchmark surveys
are conducted on a regular interval to balance the short term with the long term incentives. GSK adopts
a total compensation and benefits approach in the design of its salary packaging model. We aim to
provide: Optimum flexibility, choice; and targeted incentive programs to provide us with the best
opportunity to attract and retaining world class employees. Bonus plans are an integral component of the
GlaxoSmithKline total compensation and benefits philosophy. A long term incentive scheme is offered
to senior managers. Employees are able to participate in the GSK employee share plan on reaching the
eligibility criteria.

                       Assessment of Glaxo SmithKline Pakistan Ltd.

    Performance Management system:

1) The GSK pharmaceutical company does use performance management system by which the
   performance of employees is measured in terms of quality, quantity, cost and time to evaluate the
   employee’s job-related strengths and weaknesses and addresses adherence to a set of pre-defined
   organizational standards. And its good to have such performance system to meet the organizational
   goals effectively and efficiently.

2) GSK Company is carrying out this appraisal on all the employees working under the roof. No matter
   how long it has been for an employee to work with them but they do this performance management
   system for them as well including the new hired employees so to continuously monitor the
   performance with the time.

3) The company is applying the performance management system on all the employees from the entire
   department making up the organization to assess their performance so that if any of the employee
   from any department is lacking in any part of their job which actually hinders in achieving the
   organizational goal should be improve.
4) They conduct regular appraisals to identify training needs and help employees set and achieve
   development objectives. Performance management system is carried out semiannually and its good
   thing to motivate the employees so that they may retain in organization for a long period and remain
   committed to their work. In this way Training and development opportunities by GSK which they
   employ for employees to help employees feel valued and engaged in their work. GSK provides
   work-related training courses for all employees, and leadership training for managers. These focus
   on providing people with the right behaviors and expertise for their jobs and the skills needed to
   apply their knowledge effectively. So their goal is for each individual to achieve their potential and
   contribute fully to company performance.

5) GSK is using the PMS highly for assessing the performance (usefulness of employees) and for
   giving promotions to employees if they are at the level that they can be propped up. They also use
   this system for the basis for reward (increment bonus) to motivate them for employees who are
   motivated through the incentives. And for some reasons they are using performance management
   system for the purpose of Placement Ascertain training and development needs so the training for
   the special skills or the required skills for doing the job can be given to them.


                                       Purpose of using PMS

                                                                         Assess the performance


                                                                         Basis for rewards


                                                                         Basis for promotion


                                                                         ascertain training &
                                                                         development needs


6) They measure the performance by rating the employees. This rating is giving by the head of the
   department or by the supervisor to subordinates. And for top managers they conduct 360 degree
   assessment so that they can have feedback from the employees they manage and colleagues.

7) The benefits the GSK define by using the performance management system are reducing turnover,
   employees motivation, sales increment. But they focus on sales boost due to performance
   management system. Then also they said when employees are satisfied by giving the training for
   doing the job their turnover also get reduced.


8) The HR Department encourages employees of to give suggestions to improve the quality of work
   and management. The HR manager arranges meetings with the HOD of other department within 2
months. 5% - 10% of the employees give the suggestions and welcomed openly to throw their
   suggestions.



                                          Benefits of PMS


                                                                        Increase in sale
                                                                        Reducing HR turnover
                                                                        Increase in Motivation




9) The HR Department also conduct exit interview of companies high revenue generated employees,
   and the high post employees (those employees achieve good rating) and of employees of high
   turnover department. They defined HR satisfaction level “good”. This indicates that they are doing
   best in improving the processes of their business by knowing through the employees who leaves the
   organization.

10) Corporate performance on implementing the performance management system has not given           to
    us. They kept the whole information as confidential and don’t want to discuss.

11) Stakeholder’s involvement in the performance management system is not included.

12) They operate 360 degree assessments for our top managers to ensure they receive objective feedback
    on their performance from the employees they manage and colleagues that they work with, as well
    as their manager. They conduct performance appraisal semiannually and performance review every
    after 2 months.
Pfizer

Pfizer has a long history in the Pakistani pharmaceutical market. Its local presence is comprised
of three separate companies, namely Pfizer Laboratories, Parke Davis & Company and
Pharmacia (Pvt.) Pakistan. Pfizer has two manufacturing facilities in the country in Karachi and
Islamabad. Operated to international manufacturing standards, the plants produce solids, semisolids
(ointment and creams) and liquid dosage forms (syrups, suspensions and emulsions).
In March 2006, Pfizer filed a lawsuit against the state-run Philippine International Trading
Corporation (PITC) regarding plans for parallel imports of generic versions of the hypertension
drug, Norvasc (amlodipine besylate) manufactured in Pakistan. The Philippine patent on the drug
was set to expire in 2007.

Pfizer acquired Wyeth in early 2009. The smaller US company has manufacturing facilities in
Pakistan.

Their Leading Products are

���Celebrex (celecoxib)
���Lipitor (atorvastatin)
���Diflucan (fluconazole)

Strength

           The largest pharmaceutical company in the world, with a significant regional presence and
           expertise.
           Global scale to be further enhanced through Pfizer’s acquisition of Wyeth.
           Direct manufacturing presence in Pakistan.
           Diverse product portfolio.
  .
Weaknesses
         Strong competition from low-cost generic equivalents, both legal and counterfeit.
         Government’s failure to raise drug prices since 2001.
         Lack of reforms in government regulatory policy.
         Biased treatment in favor of the local industry, which can influence government policy.
         Strict labor laws and high corporate income tax.
Opportunities

       Positive economic performance, rising spending power and continuing sector modernization.
      A government freight-subsidy scheme for drug exports and plans to reimburse 100% of
      consultancy costs on private-sector development of certified/accredited testing facilities.
Threats
      Government resistance to aligning domestic patent law with international standards.
      Significant counterfeit drug industry. Persistently high inflation – as well as rising costs of raw
      and packaging materials – in
      Pakistan negatively impacting financial performance, given the government’s resistance to
      increase drug prices.
      A volatile political and economic climate in Pakistan.
Assessment of Pfizer
Following are the brief summary of the questions the solution taken by the HR managers to overcome
the issues:

Performance Management System Of PFIZER

       Pfizer is the world’s largest research-based pharmaceutical company. We contact Ms. Sabahat
       the HR officer. According to the information she provided us that their company have a
       Performance Management System through which they evaluate the performance of their
       employees they evaluate individual performance.
       The Performance Management System is for all employees of the company .
       The Performance Management System is for all kind of employees like Sales, operation, finance,
       HR and Admin employees but sale employees are more frequently
       The Performance Appraisal of all Employees are done on quarterly basis.
       According to their H.R. department there is not only one purpose of Performance Management
       System. But every purpose is prioritizing according to the goals and objective of the company
       and according to the nature of job. According to them promotion and placement is also an
       important purpose of Performance Management System and through this system they analyze the
       training and development needs and after accessing the performance of employees they will be
       rewarded.
       According to them their HR performance management system helps them mostly in increasing
       profits .
       They take regular feedback from their employees and through enter and exit interviews they
       claimed that their HR satisfaction level is excellent.
       The HR Department appreciates employees of to give feedbacks and suggestions to improve the
       quality of work and management. They receive above than 10 % suggestion from their
       employees.
Conclusion:
Comparison between the companies:
     Efroze chemical Industry          GSK Pharmaceutical            Pfizer pharmaceutical
                                       Co.                           Co.
1.   They conduct performance          They conduct performance      They like Efroze Co.
     management system almost          management system on the      conduct PMS for all but
     every employee but more           employees from all the        on sales man or sales
     frequently on the sales related   departments equally.          operation employees
     employees because they                                          frequently.
     directly affect revenues of the
     company
2.   PMS conducted semiannually.       PMS conducted                 PMS conducted
                                       semiannually.                 semiannually.
3.   PMS is used to assess the         PMS is used to assess the     Every purpose has given
     performance (usefulness of        performance (usefulness of    the equal priority
     employees).                       employees).                   according to the goals and
     Basis for reward (increment       Basis for reward (increment   objective of the company
     bonus)                            bonus)                        and according to the
     Basis for promotion Placement     Basis for promotion           nature of job.
     Ascertain training and            Placement
     development needs.                Ascertain training and
                                       development needs.

4.   PMS is measured by giving         PMS is measured by giving     PMS is measured by
     ratings to the employees.         ratings to the employees.     giving ratings to the
                                                                     employees.
5.   They take regular feedback        They take regular feedback    They take regular
     from their employees and          from their employees and      feedback from their
     through enter and exit            through enter and exit        employees and through
     interviews they claimed that      interviews they claimed       enter and exit interviews
     their HR satisfaction level is    that their HR satisfaction    they claimed that their HR
     excellent.                        level is excellent.           satisfaction level is
                                                                     excellent.

6.   Suggestions are welcomed and      Suggestions are welcomed      Suggestions are
     they are given more than 10%      and they are given between    welcomed and they are
     of the feedbacks                  5%- 10% of the feedbacks.     given more than 10% of
                                                                     the feedbacks
7.   Stakeholders are involved in      Stakeholders are not          Stakeholders are not
     PMS.                              involved in PMS.              involved in PMS.
8.   Procedure for Appraisal is only   360 degree for managers       Procedure for Appraisal is
     through giving the ratings.       and ratings for employees     only through giving the
                                       of lower level.               ratings.
Recommendations:
          1. Performance management system should be job-related so for an effective
               performance management results it is recommended to confer with the employee's
               job description. Bring into line the organization's goals with the job's objective so
               that every employees work lead to the organizational goal.
          2. Communicate management's expectations to the employee so that a widespread
               understanding must exist between management and the employee regarding the
               job expectations, the nature of job to be accomplished and the standards by means
               of which the work is evaluated.
          3.Feedback should be offered to the employees concerning his performance and its
               relationship to the expectations set into view by management. It is also
               recommended that constructive instead of destructive feedback is given in the
               form of comments while being honest about the appraisal so that employee does
               not get discourage and also employees do not leave the organization especially for
               GSK pharmaceutical company.
          4. Since the goal of performance management system is to achieve the organizational
               goal we need to coach the employee before and after evaluating their
               performance. Provide the resources required for them to get to the management's
               expectations.
          5. Assess the employee’s performance on the basis of various methods. Like:
          6. By self appraisal in which the employee is asked byhis supervisor to weigh up
               his/her own work. By peer appraisal by which staff of equal rank within the
               organization are asked by their supervisor to evaluate the employee. Team
               Appraisal: In this type of appraisal employees who work as part of a team are
               asked by their supervisors to assess the team's work. 360-Degree or Full Circle
               Appraisal: the employee's work is reviewed by congregation input from
               representatives of all the groups the employee intermingle with such as
               supervisor, peers, subordinates and clients. Management-by-Objectives: The
               employee’s achievements of work objectives that are set in association with
               his/her supervisor are evaluated. Through using these appraisal methods we have
               more clear evaluation of employees for their work done by them. Through these
               the employee is required to understand why the subordinate or peer have come to
               conclusions so he is able to correct any problems.

          Performance management system should be more frequently conducted on the new
              employees than those of the older employees.
References

Business Monitor international Ldt.
http://www.efroze.com
http://www.reportlinker.com/d011370589/Pharmaceutical-Business-in-Pakistan.html
Karachi Stock exchange website
www.gsk.com.pk
www.pfizer.com.pk
Appendix

                                          Questionnaire
                            PERFORMANCE MANAGEMENT SYSTEM:

Sector: Pharmaceutical

Company:

Company is Multinational/National:

Contact Person (Manager HR Department):


Questions:

Q1. Does your company have a Performance Management System for its employees?

             a. Yes
             b. No

Q2. Is the Performance Management System for all employees of your Company?

             a. For all Employees
             b. For selective employees

Q3. Does Your PMS cover all employees under the functions of:

             a.   Sales Employees
             b.   3Operation Employees
             c.   Finance Employees
             d.   H.R. Employees
             e.   Admin Employees
             f.   All of the above

Q4. Is Performance Appraisal done annually or more frequently?

             a. Annually
             b. More than once P/A
Q5. What is the purpose of Performance Management System?

          a.   To access the performance (usefulness of employees).
          b.   Basis for reward (increment bonus)
          c.   Basis for promotion Placement
          d.   Ascertain training and development needs
          e.   All of the above

Q6. How are the results of the process measured?



______________________________________________________________________________


Q7. Do you think that HR Performance Management System helps your company in

          a.   Increasing Profits
          b.   Increasing sales
          c.   Reducing HR turnover
          d.   Increasing HR suggestions
          e.   Increasing HR Motivations

Q8. Hr satisfaction level (measured through exit interview).
          a. Excellent
          b. Good
          c. Poor
Q9. How many numbers of employees give suggestions?
         a. > 10%
         b. 5-10%
         c. 1-4%
         d. None
Q10. Summary Corporate Performance of Company (last three Years)

                        2007                    2008                     2009

Net Profit

Sales

HR Turnover

Absenteeism (in %)

Suggestions received

No. Of Employees




Q11. Do the involvement of the stakeholders ensured in performance management system?
a) Yes
b) No

Q12. How it is used/ or method of carrying it out? Specify the method.

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Performance Management System

  • 1. HUMAN RESOURCE MANAGEMENT Performance Management System Pharmaceutical Sector SUBMITTED BY: SANA MAHMOOD (10286) MONIKA KUMARI (11118) ZARLISH ZAHID (10301) ADIL HUSSAIN (9997) OWAIS NATHANI SUBIMITTED TO: Dr. KHALID AMIN Ms. DEEP KIRAN [Year] INSTITUTE OF BUSINESS ADMINISTRATION
  • 2. ACKNOWLEDGEMENT First of all, we would like to thank THE ALMIGHTY ALLAH, for giving us the strength and health to do this project work. Then I would like to thank my teacher, Dr. Khalid Amin and Ms. Deep Kiran for guiding us throughout this project. We had some difficulties in doing this task, but they taught us patiently until we knew what to do. Their guidance and support was valuable. We would also like to thank all the people with whom we interacted during the project, all the employees of various insurance companies that we went to, without their support, openness, and information about the companies’ policies and system, we wouldn’t have been able to complete our report. We would also like to thank Mr. Wasil Mehmood, HR Officer (Efroze Chemical Industries), Ms. Sabhat HR Manager (Pfizer), Ms. Zareena, HR Manager (GSK), without their support and information they share with us we won’t be able to complete this report.
  • 3. Table of Contents EXECUTIVE SUMMARY........................................................................................................................................ 4 PAKISTAN PHARMACEUTICAL INDUSTRY ..................................................................................................... 5 Sale Profit After Tax .................................................................................................................................................. 6 Efroze Chemical Industries ........................................................................................................................................ 7 Assessment of Efroze Chemical Industries ............................................................................................................ 8 Glaxo Smithkline Pakistan Limited ......................................................................................................................... 11 Assessment of Glaxo SmithKline Pakistan Ltd. .................................................................................................. 13 Pfizer ........................................................................................................................................................................ 16 Conclusion: .............................................................................................................................................................. 19 Comparison between the companies: ................................................................................................................. 19 Recommendations: ................................................................................................................................................... 20 References ................................................................................................................................................................ 21 Appendix .................................................................................................................................................................. 22 Questionnaire ....................................................................................................................................................... 22
  • 4. EXECUTIVE SUMMARY This report is assigned by our Instructor Dr. Khalid Amin and Ms. Deep Kiran to our group members, the sector given to us is Pharmaceutical. The purpose of our term report is to evaluate Performance Management System of 3 different pharmaceutical companies. In this report we have discuss the current situation of pharmaceutical industries like where we in this sector? What role local pharmaceutical and international companies are playing? What is their share in GDP? In this term report we also include how HR department of pharmaceutical companies are working? How they manage Performance Management system This report consists of the following section and details. An Overview of Pharmaceutical industry of Pakistan? From History to current situation. Background of Company: This provides the history of the companies. Comparison between companies Performance Management System Conclusion Recommendations
  • 5. PAKISTAN PHARMACEUTICAL INDUSTRY According to market research firm IMS Health, Top 50 companies (30 multinationals and 20 domestic) enjoyed an 83.5% market share in mid- 2000s. The top 100 had 94% of the Pakistani pharmaceutical market. Pakistan's US$1.62bn pharmaceutical market is the 10th largest in Asia Pacific. Annual per-capita spending on medicines is US$10, which is far below the regional average of US$142.Market access is challenging and operational risks are high. Currently the industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech, Oncology and Value Added Generic compounds. Today Pakistan has about 400 pharmaceutical manufacturing units including those operated by 25 multinationals present in the country. The industry meets around 70% of the country's demand of Finished Medicine. In term of share market domestic is almost evenly divided between the Nationals and the MNCs. The National pharma industry has shown a progressive growth over the years, particularly over the last one decade. The industry has invested substantially to upgrade itself in the last few years and today the majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Pakistan’s pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the population has no access to modern medicines. Clearly this presents an opportunity, but much more work needs to be done by the government and industry's stakeholders. Pakistan political instability is badly affecting the industry The value of pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita consumption of less than US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B by 2012. Pakistan is a developing pharmaceutical market, with a large population and economic progress evident, but per capita drug spending was rather low at around US$9.30 in 2007
  • 6. The Pakistan pharma industry is relatively young in the international markets with an export turnover of over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatory authorities all over the world. Data from the Karachi Stock Exchange reveals that there are eight listed pharmaceutical companies in Pakistan. The majority are subsidiaries of foreign multinationals, with local representatives Ferozsons Laboratories and Highnoon Laboratories. Names Financial Sales Sales year end Profit Before Sale Profit tax After Tax Abbott Laboratories November 83.7 6.4 4.1 Pakistan Ltd Sanofi-Aventis Pakistan December 51.2 1 0.5 Ltd Ferozsons Laboratories June 11 3.5 2.6 Ltd GlaxoSmithKline Pakistan December 158 35.4 23.1 Ltd Highnoon Laboratories December 22.8 .9 .7 Ltd Otsuka Pakistan Ltd June 12.5 1.2 .8 Searle Pakistan Ltd June 24.6 2.5 1.7 Wyeth Pakistan Ltd December 28.1 2.7 1.7 Total 392.6 53.6 35.1
  • 7. Efroze Chemical Industries Efroze Chemicals Industries (Private) Ltd. came into existence in 1968 with the Dedication to the Quality Pharmaceuticals, to empower mankind by promoting mental and physical wellbeing across Pakistan. Efroze Chemical Industries, a leading domestic pharmaceutical manufacturer, was established in Karachi in 1968. Its second factory was opened in 1999, with both facilities receiving international certification shortly after. Total employees 375 people. Field staff consists of around 150 personnel. The company product portfolio involved in the promotion of over 50 branded products belonging to different therapeutic classes through its own distribution network. Its export operations, which started in 1992, now supply over 20 developing markets in Africa, the Middle East, Asia and the former USSR Efroze Chemcial Industies financial data Sales are estimated at US$10mn a year. Annual Growth Rate 8.25% in terms of rupee Annual Growth Rate 1.96% in terms of Dollar Strength Considerable demand for cheap generic medicines in the country. International certification of production facilities. Foreign partnerships, especially in relation to R&D activities. Weaknesses Reliance on foreign-sourced raw materials. Strong competition from multinationals in the branded sector. Opportunities Positive economic performance and rising patient purchasing power. Government and international encouragement for drug exports. Threats Volatile political and economic climate. Depreciation of local currency making imports of raw materials more difficult.
  • 8. Assessment of Efroze Chemical Industries Following are the brief summary of the questionnaire the solution taken by the HR managers to overcome the issues: Performance Management System of Efroze Chemical Industry Efroze Chemcial industry is a leading national company in pharmaceutical sector. We contact the Mr. Syed Wasil Mehmood the HR officer. 1. According to the information he provide us that their company have a Performance Management System through which they evaluate the performance of their employees they evaluate individual performance corresponding to the goals they set in the beginning of every month or quarterly. 2. The Performance Management System is for all employees of the company that is 375 employees. Distribution of Employees Field staff are 150 Office staff 225 3. The Performance Management System is for all kind of employees like Sales, operation, finance, HR and Admin employees but sale employees are more frequently evaluate then others because they directly impact the sales and profit of the company. He frequency of Performance Appraisal is different from department to department, like Sales Employees and Operation Employees are more frequently evaluated as compare to other department employees. Sales and Operation Employees Operation employees are evaluated frequently in order to quality control and sales employee is evaluated in order to achieve sales target because they directly affect the sales of the company. 4. The Performance Appraisal of Sales and Operation Employees are done on semi annualy basis. The Performance Appraisal H.R., Finance and Admin employees are done on annual basis. 5. According to the H.R. Officer Mr. Mehmood there is not only one purpose of Performance Management System. But every purpose is prioritizing according to the goals and objective of the company and according to the nature of job. For the employees of sale we first evaluate the performance of sale rap, if the sales rep is facing any problem, we train them and then evaluate again, if the sales rep continuously didn’t show performance up till quarterly evaluation we terminate. And if show up an improvement he can be rewarded by incentive depending on his sales target.
  • 9. 6. Promotion and placement is also an important purpose of Performance Management System. The ratings of employees are given the Head of Department of Department. 7. According to Mr. Mehmood Performance Management System Helps in every aspect of the firm like Increase in sales Increase in Profit Reducing HR turnover Increasing HR Motivation. But he rates the area where performance Management benefits most. Benefits of PMS Increase in sale Reducing HR turnover Increase in Motivation 8. The HR Department took exit interview of high post employees, profitable employees (those employees achieve good rating) and of employees of high turnover department. They HR satisfaction level is “good”. 9. The HR Department encourages employees of to give suggestions to improve the quality of work and management. The HR manager arranges meetings with the HOD of other department within one or 2 months. They receive above than 10 % suggestion from the Department Head.
  • 10. Number Of Permanent Employees 300 250 200 150 100 50 0 2007 2008 2009 10. 10 &11.The number of permanent employees is increasing in Efroze Chemicals according to the need of each department. Stake holders are not involved in Performance Management System.
  • 11. Glaxo Smithkline Pakistan Limited Position in market: GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the largest pharmaceutical company in Pakistan, 79% owned by the UK drug major. GSK is the largest pharmaceutical company in Pakistan, with a growing export business to Afghanistan. GSK Pakistan is headquartered in Karachi and employs 1,800 people. As a leading international pharmaceutical company we make a real difference to global healthcare and specifically to the developing world. We believe this is both an ethical imperative and key to business success. Companies that respond sensitively and with commitment by changing their business practices to address such challenges will be the leaders of the future. GSK Pakistan operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over- the-counter- medicines, oral care and nutritional care). Profits, Sales of the company: GSK leads the industry in value, volume and prescription market shares. We are proud of our consistency and stability in sales, profits and growth. Some of our key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO. According to its own 2008 annual report, GSK holds 11.39% of the market by value, 18.33% by volume, and 13.11% of the prescription market. Market share: GSKP Manager Corporate Communication Naufil Shahrukh told Dawn that the workforce of GSKP, a public listed company, stood at 2,000 while the BMSP, a private limited company, had more than 200 employees on its payroll. On impact of acquisition, he said that the transaction, when complete, would increase GSKP’s pharmaceutical market share from estimated 11 per cent to approximately 13 per cent. However, there would be no increase in consumer market share.
  • 12. He added that the acquisition was in line with GSK’s emerging market strategy of growing its international non-patent protected business. The combination of this business with the existing GSK business will build on GSK?s successful operations in the local market and will provide an opportunity for generating additional future growth. SWOT Analysis by the GSK Company: Strengths: The largest pharmaceutical company in Pakistan, double the size of its nearest competitor Abbott Laboratories. Top three pharmaceutical products in terms of sales are GSK medicines. Hold over 50% of both the public and private vaccines sectors. Weaknesses: Strong competition from low-cost generic equivalents, both legal and counterfeit. Lack of reforms in government regulatory policy. Strict labor laws and high corporate income tax rate. Opportunities: Pakistan recognized as one of the fastest growing economies in the world. Economic growth resulting in an increase in consumer spending power. Continued need for vaccine supplies benefits GSK, which has a substantial vaccines portfolio. Sector modernization initiatives. Threats: Weak intellectual property laws and a lack of their implementation. Rising numbers of generics, which is a major barrier to multinational investment. Increasing inflationary trends without consequent increases in the prices of drugs Increasing inflationary trends without consequent increases in the prices of drugs significant counterfeit drug industry. Rising costs of raw and packaging materials having an adverse effect on the company’s bottom line.
  • 13. Some Issues GSK faced: Employee Retention: They resolved by focusing on transforming their culture to improve retention rates by enabling workforce mobility. They make employees to look internally at opportunities within the organization via PDP (PERFORMANCE DEVELOPMENT PROGRAM) process. They look after employees & take care of their welfare revise remuneration & perks from time to time maintain good employee-employer relations, execution of corporate polices & labor laws, emphasize on employees development & training needs (in-house training + on the job training + safety training etc.) Human Resource measurement and benchmarking compensation: The solution to this problem GSK came up with is that an organized structure regarding all employees salaries, updated personal files, global peoples. Software has been introduced by H.R whereby employees can access all their personal information and can make any changes they need to. They started dealing with all kinds of sensitive issues and harassment cases if any. Salary benchmark surveys are conducted on a regular interval to balance the short term with the long term incentives. GSK adopts a total compensation and benefits approach in the design of its salary packaging model. We aim to provide: Optimum flexibility, choice; and targeted incentive programs to provide us with the best opportunity to attract and retaining world class employees. Bonus plans are an integral component of the GlaxoSmithKline total compensation and benefits philosophy. A long term incentive scheme is offered to senior managers. Employees are able to participate in the GSK employee share plan on reaching the eligibility criteria. Assessment of Glaxo SmithKline Pakistan Ltd. Performance Management system: 1) The GSK pharmaceutical company does use performance management system by which the performance of employees is measured in terms of quality, quantity, cost and time to evaluate the employee’s job-related strengths and weaknesses and addresses adherence to a set of pre-defined organizational standards. And its good to have such performance system to meet the organizational goals effectively and efficiently. 2) GSK Company is carrying out this appraisal on all the employees working under the roof. No matter how long it has been for an employee to work with them but they do this performance management system for them as well including the new hired employees so to continuously monitor the performance with the time. 3) The company is applying the performance management system on all the employees from the entire department making up the organization to assess their performance so that if any of the employee from any department is lacking in any part of their job which actually hinders in achieving the organizational goal should be improve.
  • 14. 4) They conduct regular appraisals to identify training needs and help employees set and achieve development objectives. Performance management system is carried out semiannually and its good thing to motivate the employees so that they may retain in organization for a long period and remain committed to their work. In this way Training and development opportunities by GSK which they employ for employees to help employees feel valued and engaged in their work. GSK provides work-related training courses for all employees, and leadership training for managers. These focus on providing people with the right behaviors and expertise for their jobs and the skills needed to apply their knowledge effectively. So their goal is for each individual to achieve their potential and contribute fully to company performance. 5) GSK is using the PMS highly for assessing the performance (usefulness of employees) and for giving promotions to employees if they are at the level that they can be propped up. They also use this system for the basis for reward (increment bonus) to motivate them for employees who are motivated through the incentives. And for some reasons they are using performance management system for the purpose of Placement Ascertain training and development needs so the training for the special skills or the required skills for doing the job can be given to them. Purpose of using PMS Assess the performance Basis for rewards Basis for promotion ascertain training & development needs 6) They measure the performance by rating the employees. This rating is giving by the head of the department or by the supervisor to subordinates. And for top managers they conduct 360 degree assessment so that they can have feedback from the employees they manage and colleagues. 7) The benefits the GSK define by using the performance management system are reducing turnover, employees motivation, sales increment. But they focus on sales boost due to performance management system. Then also they said when employees are satisfied by giving the training for doing the job their turnover also get reduced. 8) The HR Department encourages employees of to give suggestions to improve the quality of work and management. The HR manager arranges meetings with the HOD of other department within 2
  • 15. months. 5% - 10% of the employees give the suggestions and welcomed openly to throw their suggestions. Benefits of PMS Increase in sale Reducing HR turnover Increase in Motivation 9) The HR Department also conduct exit interview of companies high revenue generated employees, and the high post employees (those employees achieve good rating) and of employees of high turnover department. They defined HR satisfaction level “good”. This indicates that they are doing best in improving the processes of their business by knowing through the employees who leaves the organization. 10) Corporate performance on implementing the performance management system has not given to us. They kept the whole information as confidential and don’t want to discuss. 11) Stakeholder’s involvement in the performance management system is not included. 12) They operate 360 degree assessments for our top managers to ensure they receive objective feedback on their performance from the employees they manage and colleagues that they work with, as well as their manager. They conduct performance appraisal semiannually and performance review every after 2 months.
  • 16. Pfizer Pfizer has a long history in the Pakistani pharmaceutical market. Its local presence is comprised of three separate companies, namely Pfizer Laboratories, Parke Davis & Company and Pharmacia (Pvt.) Pakistan. Pfizer has two manufacturing facilities in the country in Karachi and Islamabad. Operated to international manufacturing standards, the plants produce solids, semisolids (ointment and creams) and liquid dosage forms (syrups, suspensions and emulsions). In March 2006, Pfizer filed a lawsuit against the state-run Philippine International Trading Corporation (PITC) regarding plans for parallel imports of generic versions of the hypertension drug, Norvasc (amlodipine besylate) manufactured in Pakistan. The Philippine patent on the drug was set to expire in 2007. Pfizer acquired Wyeth in early 2009. The smaller US company has manufacturing facilities in Pakistan. Their Leading Products are ���Celebrex (celecoxib) ���Lipitor (atorvastatin) ���Diflucan (fluconazole) Strength The largest pharmaceutical company in the world, with a significant regional presence and expertise. Global scale to be further enhanced through Pfizer’s acquisition of Wyeth. Direct manufacturing presence in Pakistan. Diverse product portfolio. . Weaknesses Strong competition from low-cost generic equivalents, both legal and counterfeit. Government’s failure to raise drug prices since 2001. Lack of reforms in government regulatory policy. Biased treatment in favor of the local industry, which can influence government policy. Strict labor laws and high corporate income tax.
  • 17. Opportunities Positive economic performance, rising spending power and continuing sector modernization. A government freight-subsidy scheme for drug exports and plans to reimburse 100% of consultancy costs on private-sector development of certified/accredited testing facilities. Threats Government resistance to aligning domestic patent law with international standards. Significant counterfeit drug industry. Persistently high inflation – as well as rising costs of raw and packaging materials – in Pakistan negatively impacting financial performance, given the government’s resistance to increase drug prices. A volatile political and economic climate in Pakistan.
  • 18. Assessment of Pfizer Following are the brief summary of the questions the solution taken by the HR managers to overcome the issues: Performance Management System Of PFIZER Pfizer is the world’s largest research-based pharmaceutical company. We contact Ms. Sabahat the HR officer. According to the information she provided us that their company have a Performance Management System through which they evaluate the performance of their employees they evaluate individual performance. The Performance Management System is for all employees of the company . The Performance Management System is for all kind of employees like Sales, operation, finance, HR and Admin employees but sale employees are more frequently The Performance Appraisal of all Employees are done on quarterly basis. According to their H.R. department there is not only one purpose of Performance Management System. But every purpose is prioritizing according to the goals and objective of the company and according to the nature of job. According to them promotion and placement is also an important purpose of Performance Management System and through this system they analyze the training and development needs and after accessing the performance of employees they will be rewarded. According to them their HR performance management system helps them mostly in increasing profits . They take regular feedback from their employees and through enter and exit interviews they claimed that their HR satisfaction level is excellent. The HR Department appreciates employees of to give feedbacks and suggestions to improve the quality of work and management. They receive above than 10 % suggestion from their employees.
  • 19. Conclusion: Comparison between the companies: Efroze chemical Industry GSK Pharmaceutical Pfizer pharmaceutical Co. Co. 1. They conduct performance They conduct performance They like Efroze Co. management system almost management system on the conduct PMS for all but every employee but more employees from all the on sales man or sales frequently on the sales related departments equally. operation employees employees because they frequently. directly affect revenues of the company 2. PMS conducted semiannually. PMS conducted PMS conducted semiannually. semiannually. 3. PMS is used to assess the PMS is used to assess the Every purpose has given performance (usefulness of performance (usefulness of the equal priority employees). employees). according to the goals and Basis for reward (increment Basis for reward (increment objective of the company bonus) bonus) and according to the Basis for promotion Placement Basis for promotion nature of job. Ascertain training and Placement development needs. Ascertain training and development needs. 4. PMS is measured by giving PMS is measured by giving PMS is measured by ratings to the employees. ratings to the employees. giving ratings to the employees. 5. They take regular feedback They take regular feedback They take regular from their employees and from their employees and feedback from their through enter and exit through enter and exit employees and through interviews they claimed that interviews they claimed enter and exit interviews their HR satisfaction level is that their HR satisfaction they claimed that their HR excellent. level is excellent. satisfaction level is excellent. 6. Suggestions are welcomed and Suggestions are welcomed Suggestions are they are given more than 10% and they are given between welcomed and they are of the feedbacks 5%- 10% of the feedbacks. given more than 10% of the feedbacks 7. Stakeholders are involved in Stakeholders are not Stakeholders are not PMS. involved in PMS. involved in PMS. 8. Procedure for Appraisal is only 360 degree for managers Procedure for Appraisal is through giving the ratings. and ratings for employees only through giving the of lower level. ratings.
  • 20. Recommendations: 1. Performance management system should be job-related so for an effective performance management results it is recommended to confer with the employee's job description. Bring into line the organization's goals with the job's objective so that every employees work lead to the organizational goal. 2. Communicate management's expectations to the employee so that a widespread understanding must exist between management and the employee regarding the job expectations, the nature of job to be accomplished and the standards by means of which the work is evaluated. 3.Feedback should be offered to the employees concerning his performance and its relationship to the expectations set into view by management. It is also recommended that constructive instead of destructive feedback is given in the form of comments while being honest about the appraisal so that employee does not get discourage and also employees do not leave the organization especially for GSK pharmaceutical company. 4. Since the goal of performance management system is to achieve the organizational goal we need to coach the employee before and after evaluating their performance. Provide the resources required for them to get to the management's expectations. 5. Assess the employee’s performance on the basis of various methods. Like: 6. By self appraisal in which the employee is asked byhis supervisor to weigh up his/her own work. By peer appraisal by which staff of equal rank within the organization are asked by their supervisor to evaluate the employee. Team Appraisal: In this type of appraisal employees who work as part of a team are asked by their supervisors to assess the team's work. 360-Degree or Full Circle Appraisal: the employee's work is reviewed by congregation input from representatives of all the groups the employee intermingle with such as supervisor, peers, subordinates and clients. Management-by-Objectives: The employee’s achievements of work objectives that are set in association with his/her supervisor are evaluated. Through using these appraisal methods we have more clear evaluation of employees for their work done by them. Through these the employee is required to understand why the subordinate or peer have come to conclusions so he is able to correct any problems. Performance management system should be more frequently conducted on the new employees than those of the older employees.
  • 21. References Business Monitor international Ldt. http://www.efroze.com http://www.reportlinker.com/d011370589/Pharmaceutical-Business-in-Pakistan.html Karachi Stock exchange website www.gsk.com.pk www.pfizer.com.pk
  • 22. Appendix Questionnaire PERFORMANCE MANAGEMENT SYSTEM: Sector: Pharmaceutical Company: Company is Multinational/National: Contact Person (Manager HR Department): Questions: Q1. Does your company have a Performance Management System for its employees? a. Yes b. No Q2. Is the Performance Management System for all employees of your Company? a. For all Employees b. For selective employees Q3. Does Your PMS cover all employees under the functions of: a. Sales Employees b. 3Operation Employees c. Finance Employees d. H.R. Employees e. Admin Employees f. All of the above Q4. Is Performance Appraisal done annually or more frequently? a. Annually b. More than once P/A
  • 23. Q5. What is the purpose of Performance Management System? a. To access the performance (usefulness of employees). b. Basis for reward (increment bonus) c. Basis for promotion Placement d. Ascertain training and development needs e. All of the above Q6. How are the results of the process measured? ______________________________________________________________________________ Q7. Do you think that HR Performance Management System helps your company in a. Increasing Profits b. Increasing sales c. Reducing HR turnover d. Increasing HR suggestions e. Increasing HR Motivations Q8. Hr satisfaction level (measured through exit interview). a. Excellent b. Good c. Poor Q9. How many numbers of employees give suggestions? a. > 10% b. 5-10% c. 1-4% d. None
  • 24. Q10. Summary Corporate Performance of Company (last three Years) 2007 2008 2009 Net Profit Sales HR Turnover Absenteeism (in %) Suggestions received No. Of Employees Q11. Do the involvement of the stakeholders ensured in performance management system? a) Yes b) No Q12. How it is used/ or method of carrying it out? Specify the method.