A Report on

Performance Appraisal &

Employee Satisfaction in
Pharmaceutical Company

Human Resource Management

MGT 3122
Topics: A Report on Performance Appraisal & Employee
Satisfaction in Pharmaceutical Industry.

Submitted to:
Mrs. Shayla Binta Sayeed
Course Instructor- MGT 3122
United International University

Submitted by:
NAME

ID

Shakhawatul Islam

111 093
033

Mahin Ahmed

111 101
119

Riad Chowdhury

111 101
122

MD. Soebur Rahman

111 101
123

MD. Muzahid Baksh

111 101
208

United International University

Summer- 2012
Date of submission: 24 July 21, 2012

Letter of Transmittal
July, 24, 2012
Mrs. Shayla Binta Sayeed
Course Instructor- MGT 3122
United International University
Subject: A report on performance appraisal & employee satisfaction
in pharmaceutical industry.
Dear Madam,
We are submitting herewith our report entitled A Thesis on employee
satisfaction & performance appraisal process in pharmaceutical industry.
The main purpose of this report is to get a set of concepts on how
pharmaceutical companies appraise their personnel and what are the
impacts on employee satisfaction. The proposal shows a detail analysis in
employee satisfaction [mainly sales personnel] base on companys
performance process.
I hope that this report will merit your approval.

Respectfully yours
On behalf of the team

Mahin Ahmed
ID: 111 101 119
Sec: B
School of Business
United International University

iii

Acknowledgment
I give thanks to the Almighty for giving me the understanding, knowledge
and wisdom during the course of our study.
We convey our gratitude to our honorable faculty Mrs. Shayla Binta Sayeed,
MGT 3122 in United International University. Her guidance and cooperation
helped us immensely to prepare this survey report.
We also like to thank those people who had helped us to conduct this survey
report. We also like to express our gratitude to our team members for their
friendly and cordial cooperation during surveying and report writing process.
We have tried our best to prepare a survey report having better contents. We
tried to implement our classroom knowledge with real life lesson in this
survey report. We have tried to maximize our best affordable way to
complete it and minimize the mistakes in very short time. Even, if we make
any mistakes, we apologies for that unwillingly mistakes.

iv

Table of Contents
Acknowledgment...

iv
Executive
Summary

vii
Abstract

. 8
Introduction

9
Objective
of
the
study

. 10
Methodology
of
Data
Collection
. 11
Sample
Size
and
Population
11
Sampling
Method

.. 11
Limitations
of
the
study
11
PHARMACEUTICAL
INDUSTRY
IN
. 12

BANGLADESH

Findings
................................................................................................................
.................................. 13
Employees
Job
Satisfaction
in
13

Pharmaceuticals

Company

Descriptive
Statics

. 14
Level
on
work
conditions
. 14

Level
on
Pay
and
Promotion
.. 14
Level

on

Fairness

15
Level
on
Job
Security
..
15
Level
on
Relationship
with
.. 15

co-workers

Level
on
Relationship
with
. 16

supervisor

immediate

PERFORMANCE APPRAISAL & EMPLOYEE

MULTINATIONAL COMPANIES . 17

SATISFACTION

Performance
Appraisal
Process
. 17

GlaxoSmithKline

in

[AN

Bangladesh

Ltd

in

GSK

Bangladesh

Ltd

Sales
Force
Officers
Appraisal
Process
.. 17
Performance
Appraisal
Process
Overview
. 18

in

Roche

OVERVIEW]

Principles
for
the
Implication
of
.. 18

PA

PA
Interview
with
the
Employee
... 19
PERFORMANCE APPRAISAL & EMPLOYEE SATISFACTION [AN OVERVIEW] LOCAL
COMPANIES 20
Performance
Appraisal
Process
.. 20

in

BEXIMCO

PHARMA

Bangladesh

Ltd

Performance
Appraisal
..
20
Employee Compensation
.... 20
Establishing
Pay
Rates
...
21

vi

Benefits
and
Rewards
Package
... 22
Health
&
Safety

.. 22
Performance
Appraisal
Process
in
. 24

SQUARE

PHARMA

Ltd

Performance
Appraisal
..
24
Reward
and
Compensation
.. 24

System

Overall
Summary
[Employee
Job
Satisfaction]
25
Satisfaction
with
Interpersonal
.. 25
Satisfaction with Compensation
25

Package

(salary,

Satisfaction
with
Professional
. 26

Relations

fringe

benefits)

Effectiveness

Overall
Job
Satisfaction
27
CONCLUSIONS

28
APPENDIX:
01

. 29
Employees
Satisfaction
Interview
.. 29
Questionnaire
on:
Performance
... 30

appraisal

in

Pharmaceutical

Schedule

Industry

Appendix:
02.
Level
on
work
conditions
.. 31
Appendix:
03.
Level
on
Pay
and
Promotion
.. 32

vii

Appendix:
04.
Level
on
Fairness
.
32
Appendix:
05.
Level
on
Job
Security
32
Appendix:
06.
Level
on
Relationship
with
.. 33
Appendix:
07.
Level
on
Relationship
with
.. 33

viii

Immediate

Co-workers

supervisor

Executive Summary
The Pharmaceutical sector plays a vital role in underpinning the economic
development of a country. This study attempts to evaluate job satisfaction of
employees in different pharmaceutical companies. It focuses on the relative
importance of performance appraisal & job satisfaction factors and their
impacts on the overall job satisfaction of employees. Both primary and
secondary sources of information have been considered as a data collection
process. Primary data was collected through checklist and personnel
interview. At present, in Bangladesh, there are 204 national pharmaceutical
companies and only 7 multinational or foreign companies operating.
In our survey we found Level on work conditions, Level on Pay and
Promotion, Level on Fairness, Level on Job Security, Level on Relationship
with co-workers, Level on Relationship with immediate supervisor; we also
found the procedure of performance appraisal & employee job satisfaction in
multinational

pharmaceuticals

[include:

GLAXO,

&

Roche]

&

local

pharmaceuticals Company [includes: BEXIMCO & SQUARE].

In the overall job satisfaction summary we focused on the satisfaction with
interpersonal relations, satisfaction with compensation package (salary,
fringe benefits), satisfaction with professional effectiveness, overall job
satisfaction.
The results suggest that the factors had satisfactorily explained job
satisfaction and that the policy makers and managers should focus on the
factors that affect employee job satisfaction, if they want to enhance their
businesses. Based on the results for the standardized values, we are able to
see that work conditions, fairness, promotion, and pay, are key factors
affecting pharmaceuticals companies employees job satisfaction.
Results of the study reveal that a good performance appraisal system, work
environment

and

good

work

conditions
ix

can

increase

employee

job

satisfaction and the employees will try to give their best which can increase
the employee work performance.

Abstract
The Pharmaceutical sector plays a vital role in underpinning the economic
development of a country. This study attempts to evaluate job satisfaction of
employees in different pharmaceutical companies. It focuses on the relative
importance of performance appraisal & job satisfaction factors and their
impacts on the overall job satisfaction of employees. It also investigates the
impacts of pharmaceutical type, work experience, age, and sex differences
on the attitudes toward job Satisfaction. The result shows that salary,
efficiency in work, fringe supervision, and co-worker relation are the most
important factors contributing to job satisfaction. The overall job satisfaction
of the employees in pharmaceutical sector is at the positive level. This
research was mainly undertaken to investigate on the significance of factors
such as working conditions, pay and promotion, job security, fairness,
relationship with co-workers and supervisors in affecting the job satisfaction.
This paper presents a comprehensive diagnosis of job satisfaction indices of
pharmaceutical

business,

the

factors

causing

the

dissatisfaction

&

suggestions to improve them.

There is greater recognition that distinctive competencies are obtained
through highly developed employee skills, distinctive organizational cultures,
management processes and systems. To attain such recognitions HR plays a
key role and one of the important aspects of HR process affiliated with the
above objective is performance appraisal process. In this study an attempt
has been made to understand the performance appraisal process of
pharmaceutical companies in Bangladesh. The repercussion of this study
reveals the performance appraisal process and eventually concludes with
some implications for pharmaceutical companies of Bangladesh to make the
present performance

appraisal process more effective and objective

oriented.
Keywords:

Performance

appraisal,
11

Job

satisfaction

&

Pharmaceutical

Company.

12

Introduction
In todays intensely competitive and global marketplace, competitive
advantage lies not just in differentiating a product or service or in becoming
the low cost leader but in also being able to tap the companys special skills
or core competencies. Especially for pharmaceutical industry skilled and
efficient employees are must as it requires specialized, technical and,
scientific knowledge and expertise and there is zero tolerance in terms of
developing quality products & services. To attain such objectives HR plays a
vital role and one of the most used tools by HR in order to ensure skilled and
efficient employees is performance appraisal. Performance appraisal may be
defined as a structured formal interaction between a subordinate and
supervisor, that usually takes the form of a periodic interview (annual or
semi-annual), in which the work performance of the subordinate is examined
and discussed, with a view to identifying weaknesses and strengths as well
as opportunities for improvement and skills development. Performance
appraisal is evaluating an employees current and/or past performance
relative to his or her performance standard
On the other hand, Job satisfaction describes how content an individual is
with his or her job. There are a variety of factors that can influence a
persons level of job satisfaction. Some of these factors include the level of
pay and benefits, the perceived fairness of the promotion system within a
company, the quality of the working conditions, leadership and social
relationships, the job itself. Other influences on satisfaction include the
management style and culture, employee involvement, empowerment and
autonomous workgroups. Job satisfaction is a very important attribute which
is frequently measured by organizations. The most common way of
measurement is the use of rating scales where employees report their
reactions to their jobs. Questions relate to relate of pay, work responsibilities,
13

variety of tasks, promotional opportunities the work itself and co-workers.

Some questioners ask yes or no questions while others ask to rate
satisfaction on 1 5 scale where 1 represents not all satisfied and 5
represents extremely satisfied.
In our findings some organizations maintain their formal evaluation system
because they consider performance evaluation to be fundamental to
organizational effectiveness. It is better to maintain the visibility of a formal
program because; it may help to improve systematically the fairness,
validity, usefulness and reliability of the appraisal process.
According to them the purpose of performance appraisal process are to (a)
control the employee performance focusing on the past performance, and (b)
develop employee to be an effective performer focusing on the importance
of future performance. Performance appraisal is important from the
viewpoints of both the employee and the organization.

From the employees point of view performance appraisal is important,

because: (a) they can modify their work behavior to become a more effective
performer, and (b) it increases the likelihood of receiving increase
compensation and/or recognition.

Objective of the study:

The objectives of this study are:

To

study

the

present

appraisal

system

in

the

pharmaceutical

companies [both national & multinational] in order to get an overall

summery on performance appraisal process;
To examine the employees attitude towards the effectiveness of the
appraisal system practiced by the pharmaceutical company;

14

 To analyze the findings and thereby draw some implications in order to

make the performance appraisal process for the companies to be more
effective and efficient.
To assess the satisfaction level of employees in Pharmaceutical
industry
To identify the factors which influence the job satisfaction of employees
To identify the factor which improves the satisfaction level of
employees

Methodology of Data Collection

Both primary and secondary sources of information have been considered as

a data collection process. Primary data was collected through checklist and
personnel interview.
The secondary information of the study was collected from the web sites,
published literature, research papers and, various reports (internal and
external) of the sample firms. Qualitative technique was used to analyze the
collected data.

Sample Size and Population:

Populations of this research are of two types:
1. Management of pharmaceutical companies: It includes the view of the
personnel who are involved in the performance appraisal and
employee motivation in HR department;
2. Employees of pharmaceutical companies: The general employees of
some different pharmaceutical companies include those who had

15

undergone some performance appraisal. It includes mainly the sales

officers.

Sampling Method
There are two types of populations size, based on which different samples
were drawn. For management no sampling is needed, because there are very
few HR personnel. For employees, random sampling was chosen.

Limitations of the study

The survey is subjected to the bias and prejudices of the respondents.
Hence 100% accuracy cant be assured. The researcher was carried out in a
short span of time, where in the researcher could not widen the study. The
study could not be generalized due to the fact that researcher adapted
personal interview method.

PHARMACEUTICAL INDUSTRY IN
BANGLADESH
At present, in Bangladesh, there are 204 national pharmaceutical companies
and only 7 multinational or foreign companies operating. Domestic
companies are currently dominating the pharmaceutical market. The local
companies control about 78% of the total market.
Chart 1: Pharmaceutical sector growth rate

16

Source: Bangladesh Association of Pharmaceutical Industries (BAPI)

ANALYSIS AND INTERPRETATION: The analysis of data in a general way

involves a number of closely related operations, which are performed with

the purpose of summarizing the collected data and organizing them in such a
manner that they answer the research questions.

Findings
This section will try to highlight and discuss the results and the findings
based on the analysis done on the data collected from respondents. This
research focuses on the factors affecting employee job satisfaction in
selected

pharmaceuticals

company.

The

discussion

then

will

try

to

accomplish all the objectives of the study. In this instance, for simplicity of
analysis and findings, this part focuses on the levels of employee job
17

satisfaction

&

performance

appraisal

procedures

in

Pharmaceuticals

Company and discussion.

Employees Job Satisfaction in Pharmaceuticals

Company
This part discusses the respondents overall perception of employee job
satisfaction in Pharmaceuticals Company and sub-dimensions such as pay
and promotion, job security, work conditions, fairness and relationship with
co-workers and management. The findings are presented in frequencies and
percentages.
Chart 2: Overall level of employee satisfaction in Pharmaceutical
Companies

18

In terms of working conditions, pay and promotion, job security and

relationship with co-workers the study found that the level of employee job
satisfaction is neither happy nor unhappy and in terms of relationship with
immediate supervisor the level of employee job satisfaction is somewhat
unhappy.

Overall

level

of

employee

satisfaction

in

pharmaceutical

companies, the study found that the average mean is 61%, so the overall
level of employee job satisfaction is neither happy nor unhappy.

Descriptive Statics

Level on work conditions:

In terms of level on work conditions in pharmaceuticals companies, the
study found that 44 respondents perceived atmosphere to be Neutral.
About 29 respondents perceived the work conditions to be happy, while 15
respondents perceived work conditions as unhappy .A few, 7 respondents
rated the work conditions as very unhappy and very happy 5. At last, the
mean score is 3.01, so the work conditions are neither happy nor unhappy.
Looking at the mean score of 3.10, we can see that work conditions influence
job satisfaction in pharmaceuticals companies. (See, Appendix-02)
Level on Pay and Promotion
In terms of level on pay back in pharmaceuticals companies, the study found
that 49 respondents perceived pay and promotion to be neither happy or
unhappy, 21 of the respondents perceived the pay and promotion to be
somewhat happy and 21 respondents perceived pay and promotion to be
somewhat unhappy. Only a few 4 and 5 of the respondents rated the pay
and promotion as very unhappy and very happy. At last, the mean score
is 3.02, so the pay and promotion is somewhat unhappy. According to a
mean score of 3.02, we can see that pay and promotion influences job
19

satisfaction in pharmaceuticals companies. (See, Appendix-03)

Level on Fairness:
In terms of level about fairness in pharmaceuticals companies, the study
found that 51 respondents perceived fairness to be neither happy nor
unhappy, 24 respondents perceived the fairness to be somewhat happy,
while 16 respondents perceived fairness as somewhat unhappy. A few 6
respondents rated the fairness as very unhappy and 3 respondents are
very happy. Finally, the mean score is 3.02, so the fairness is neither
happy nor unhappy. According to the mean score of 3.02, we can see that
fairness influences job satisfaction in pharmaceuticals companies. (See,
Appendix-04)
Level on Job Security
In terms of level on job security in pharmaceuticals companies, the study
found that 50 respondents perceived job security in pharmaceuticals
companies to be neither happy nor unhappy, 24 respondents perceived job
security in pharmaceuticals companies to be somewhat happy, while 17
respondents perceived job security in pharmaceuticals companies as
somewhat unhappy. 5 respondents rated job security as very unhappy
and 4 respondents were very happy. Finally, the mean score is 3.08, so job
security in pharmaceuticals companies is neither happy nor unhappy.
According to the mean score of 3.05, we can see that job security influences
job satisfaction in pharmaceuticals companies. (See, Appendix-05)
Level on Relationship with co-workers:
In terms of level on relationship with co-workers in pharmaceuticals
companies, the study found that 42 respondents perceived relationship with
co-workers to be neither happy or unhappy, 25 respondents perceived the
relationship with co-workers to be somewhat happy and 19 respondents
somewhat unhappy. Only 1 respondent rated the relationship with co20

workers very unhappy and 13 respondents were very happy. At last, the
mean score is 3.30, so the relationship with co-workers is somewhat
unhappy. According to a mean score of 3.30, we can see that relationship
with co-workers influences job satisfaction in pharmaceuticals companies.
(See, Appendix-06)
Level on Relationship with immediate supervisor
In

terms

of

level

on

relationship

with

immediate

supervisor

in

pharmaceuticals companies, the study found that 49 respondents perceived

relationship with immediate supervisor in pharmaceuticals companies to be
neither happy or unhappy 14 respondents perceived relationship with
immediate supervisor as in pharmaceuticals companies to be somewhat
happy, while 25 respondents perceived relationship with immediate
supervisor in pharmaceuticals companies as somewhat unhappy. 8
respondents rated relationship with immediate supervisor as very unhappy
and 4 rated it as very happy. Finally, the mean score is 2.81, so
relationship with immediate supervisor in pharmaceuticals companies is
somewhat unhappy. According to the mean score of 2.81, we can see that
relationship

with

immediate

supervisor

influences

pharmaceuticals companies. (See, Appendix-07)

21

job

satisfaction

in

PERFORMANCE APPRAISAL &

EMPLOYEE SATISFACTION [AN
OVERVIEW] MULTINATIONAL
COMPANIES
Performance Appraisal Process in GlaxoSmithKline
Bangladesh Ltd
GSK Bangladesh Ltd. has four functional sub-department of HR department.
The

departments

are

HR

Development,

HR

Services,

Compensation,

Industrial Relations. Performance appraisal is practiced under Operation of

HR Services. GSK has divided its total employees into 2 categories for
appraisal: (1) management employees and (2) non-management employees.
For management employees, it has been divided into director, manager and
officer. There are two categories of officer. One is office based officer and
another is field force officer. Office based officers are also of two types, one is
commercial officer and another is global manufacturing & supply (GMS)/
factory officer. Covering the above categories in total six types of appraisal
system is used in GSK Bangladesh Ltd. such as: (1) director, (2) manager, (3)
commercial officer, (4) global manufacturing & supply (GMS)/ factory officer,
(5) field force officer, and (6) non-management staff. All this appraisal
process has been conducted once in a year with a midyear review option.

Sales Force Officers Appraisal Process in GSK

In case of measuring the performance of sales force officer following
adjectives are considered: target achievement (give percentage if available),
product

knowledge,

market

knowledge,

customer

relations

(doctors,

chemists etc.), selling skills (detailing, listening & closing), knowledge of

competition, achievement of work assigned (doctors/chemist calls), ability to
22

organize work, initiative, quality of reporting, attitude towards superiors &

colleagues, active participation in conference & meeting, effective utilization
of promotional materials, trustworthiness and integrity and, attention to safe
working.

23

Performance Appraisal Process Overview in Roche

Bangladesh Ltd
At Roche, performance is assessed by comparing anticipated achievements
with the actual ones, taking into account external and personal factors,
which may have determined or influenced the actual achievements although
MBO approach is practiced at Roche. An overall appraisal of the employee is
made on the basis of this comparison, taking into consideration the results of
previous appraisals and other assessable factors. The PA of Roche concludes
with suggestions for suitable steps to be taken for the utilization
and encouragement of the strengths of the employee and the elimination of
weaknesses all of which relate to his present assignment and possible future
assignments. Roche observes some principles for the implementation of a
PA, which are as follows:

Principles for the Implication of a PA:

The employee is neither good nor poor but is considered to be more or

less suited for the job or duties he is expected to fulfill.

His suitability can, therefore, only be measured by objectively assessin

g his performance
Personal circumstances and characteristics, which are not relevant to
his performance and performance, related behavior must not be allowe

d to influence the appraisal result.

Each employee is motivated from within to a certain activity and has
the urge to develop himself. The appraisal should, therefore, aim at

fostering his urge for development.

If the PA is correctly understood, it is a common concern of the superior
and his subordinate. Therefore, the establishment of the appraisal
basis as well as the appraisal itself should be built upon their
interpersonal relationship.

24

PA at Roche is done twice a year and the following individuals provide

information regarding performance appraisal of an employee: The
employee himself & Supervisor or Immediate superior.

PA Interview with the Employee:

The Appraisal Interview between the direct supervisor and the employee
concerned is a very important aspect of Performance Appraisal. In this step,
the employee is informed of the result of the appraisal and has the
opportunity to give his opinion.
Personal Skill Analysis:
This is another important aspect of PA which is done on a number of set
criteria or grounds rated on 5 grades: A+, A, B, C, D, and E; these grades are
assigned

the

following points:

10,

9,

8,

6,

4,

and 2

respectively. There are also comments or remarks on the grades: A+ stands

for Outstanding, A for Very Good, B for Good, C for Average, D for
Below Average and E for Does not satisfy.

Knowledge/Skill & Performance/Efficiency

Cooperation & Team Spirit & Communication
Punctuality & Loyalty, Honesty and Confidentiality
Motivation & Sincerity
Hard working/Ability to work under pressure & Attitude & Behavioral

pattern
Planning & Decision Making & Initiative/Drive/Creativity
Leadership/Staff development/Delegation

Selling Skill/Salesmanship

PA

at

Roche,

unlike

that

in

some

other

organizations is very democratic because the PA form is signed both by the

Supervisor and the employee concerned. This indicates that the employee
gets to know how he or she has been evaluated and can also fi gure
out the extent to which PA is true and fair. PA at Roche, unlike that in some
other organizations is very democratic because the PA form is signed both by
25

the Supervisor and the employee concerned. This indicates that the
employee gets to know how he or she has been evaluated and can
also fi gure out the extent to which PA is true and fair.

PERFORMANCE APPRAISAL &

EMPLOYEE SATISFACTION [AN
OVERVIEW] LOCAL COMPANIES
Performance Appraisal Process in BEXIMCO PHARMA
Bangladesh Ltd
Performance Appraisal:
At BPL appraisals are done by the Self-appraisal system. Goals are set by
participative_management approach and performance is evaluated quantitati
vely against those
previously set objectives. Managers appraise the performance of their subord
inates through 5 points Graphic Rating Scale. The total appraisal process is
completely

transparent

to

everyone

within

the

organization:

for

unsatisfactory, 2 for marginal, 3 for target, 4 for superior, 5 for outstanding.

Employee Compensation:
Employee compensation refers to all forms of pay or rewards going to
employees and arising from their employment. It has two main components:
1. Direct

financial

payments:

Wages,

salaries,

incentives,

commissions, and bonuses. There are two ways to pay directly:

Time based pay: Daily, hourly, weekly, biweekly or monthly wages

and salaries
Performance based pay: Ties compensation directly to the amount
of product the worker generates.

26

2. Direct payments: Financial benefits like employer-paid insurance

and vacations.
Factors influencing the design of compensation plan

Legal considerations in compensation

Union influences on compensation decisions
Corporate policies and competitive strategy
Policy issues affecting the plan of an organization

Establishing Pay Rates

The Salary Survey: A survey aimed at determining prevailing wage rates. A
good salary survey provides specific wage rates for specific jobs. Formal
written questionnaire surveys are the most comprehensive, but telephone
surveys and newspaper ads are also sources of information.
Job Evaluation: A systematic comparison done in order to determine the
worth of one job relative to another. Job Evaluation method includes:
1. Ranking: Involves ranking each job relative to all other jobs, usually
based on overall difficulty. There are several steps in this method:
Obtain job information for each job
Rank jobs by department or in clusters
Select just one compensable factor
Rank jobs
Combine ratings
2. Job Classification: Categorize jobs into groups
3. Point Method: A number of compensable factors are identified and
then the degree to which each of these factors is present on the job is
determined.
4. Factor comparison: Ranking jobs according to a variety of skill and
difficulty factors, and then adding up these rankings to arrive at an
overall numerical rating for each given job.

27

Benefits and Rewards Package

Indirect financial and non financial payments employees receive for
continuing their employment with the company.
There are several types of benefits:

Supplemental Pay Benefits

Insurance Benefits
Vacations and Holidays
Sick Leave
Parental Leave and Family Leave
Medical Leave
Retirement Benefits

Health & Safety

Pre employment medical check-up:
The selected person before joining has to go through full medical check-up
that guarantees his /her physical fitness to perform the job successfully. A
medical practitioner who uses a physical capability analysis that assesses
the candidate against the physical capabilities documented for each role
conducts the medical check-up. A medical is also appropriate for internal
candidates if they are applying for positions that require different physical
capabilities.
Medical Facilities:
Doctors are arranged to visit each location of numbers of times a week to
provide necessary medical support to the employees. Moreover, the nonmanagement staffs enjoy medical treatment at Hospital at company
arrangement.
Health Insurance Policy:
Management staffs enjoy health insurance for self, spouse and two children
up to 21 years for hospitalization only. Delta Life Insurance provides the
insurance and the company pays the premium.
28

Company Safety Policy

It comes from the group chief executive to adapt in all the country. The local
CEO counter signs the policy for each individual country and the copy of
the policy is circulated to all the levels in the organization. So it is the duty of
all the employees to emphasize on safety. There is an Oath in BPL,
Bangladesh regarding safety. That is SAFETY FIRST QUALITY MUST.
The safety policy of BPL, Bangladesh safety health and environment
management which is signed by the CEO carries certain messages for us. It
complies with the local safety laws of Bangladesh. One important issue of
this policy is DUTY OF CARE. It can be described as not to do any things
that may cause risk to others, properties even to me and also let other not
to do even that may hazardous to him only. There is another planning for
emphasized on safety. Safety aspect may include in every ones KPI & CSF.
There are some other important points of the policy that we should care and
implement per hour daily work.

29

Performance Appraisal Process in SQUARE PHARMA Ltd

Performance Appraisal
The supply chain department of SPL conducts the performance appraisal for
all the employees of the department. The HR department helps in this
process. At first the employees are given the opportunity of self-evaluation.
Later on the employees are evaluated by their reporting boss and the person
supervising his boss. Thus all the employees including the AGM and EDA are
evaluated. The MD evaluates the EDAs performance. For this evaluation
purpose there is a specific performance appraisal form. Then the AGM, EDA
and MD sit together to take decisions based on the employee evaluation. If
any employee's performance is not satisfactory then they decide about how
the performance of that employee can be improved. If any employees
performance is outstanding then he gets a promotion.

Reward and Compensation System

The reward system of an organization includes anything that an employee
may value and desire and that the employer is able or willing to offer in
exchange for employee contributions. The reward system consists of a
compensation and non-compensation system. Compensation refers to all
forms of financial returns and tangible services and benefits employees
receive as part of an employment relationship.
Pay Structure
Pay structure is the relative pay of different jobs (job structure) and how
much they are paid. The pay structure for the employees of the supply chain
department of SPL is shown below:
Basic Salary + Home Rent + Transport + Medical Allowance

30

Overall Summary [Employee Job

Satisfaction]
1. Satisfaction with Interpersonal Relations
Table-1 shows the satisfaction level of entry level officers with factor of
interpersonal relations. Tale shows that majority of the respondents 82%
(62% highly satisfied and 20% satisfied) in local and 80% (47% highly
satisfied and 33 satisfied) in multinational are satisfied with interpersonal
relations in organizations. In summing up it can be inferred that both local
and

multinational

organizations

are

having

good

culture

offering

interpersonal relations.
Table 1: Satisfaction with Interpersonal Relations [sales
representative]
Level of
Satisfacti
on
Highly
Dissatisfied
Dissatisfied
Undecided
Satisfied
Highly
Satisfied
Total

2. Satisfaction

Local
Organization
Percen
Number
t

Multinational
Organization
Number

Percent

Total
Organization
Percen
Number
t

Nil

Nil

2
4
10

4
8
20

02
01
05

13
7
33

4
5
15

6
8
23

32

62

07

47

39

59

51

100

15

100

66

100

with

Compensation

benefits)
31

Package

(salary,

fringe

Table 2 reveals the results of satisfaction of middle & entry level managers
regarding compensation and reward packages being offered by the
organizations. It reveals that managers of both local and multinational
organizations are not happy with the rewards offered by the organizations; as
dissatisfied managers are 63% (35% highly dissatisfied and 27% are
dissatisfied) in local and 46% (13% highly dissatisfied and 33% dissatisfied)
in multinational organizations. It reveals that compensation packages are not
sufficient in both organizations, but local organizations are relatively low
paying organizations. When we look at the satisfied mangers, the satisfied
managers are 40% in multinational organizations, while that ratio is only
24% in local organizations. This proves that multinational organizations are
relatively offering better packages.
Table 2: Satisfaction with Compensation Package (salary & fringe
benefits)
Level of
Satisfactio
n
Highly
Dissatisfied
Dissatisfied
Undecided
Satisfied
Highly
Satisfied
Total

Local
Organization
Number
%

Multinational
Organization
Number
%

Total
Organization
Number
%

18

35

13

20

30

14
07
06

27
14
12

5
2
3

33
14
20

19
9
9

28
14
14

06

12

20

14

51

100

15

100

66

100

3. Satisfaction with Professional Effectiveness

Satisfaction level of middle level managers is given in table 6. Results reveal
that majority of the respondents 80% (19% highly satisfied and 51%
satisfied) in local and 87% (14% highly satisfied and 73% satisfied) in
multinationals are satisfied with the professional effectives offered by their

32

organizations. It shows that managers are provided with the professional

development opportunities and they are professionally effective.
Table 3: Satisfaction with Professional Effectiveness
Level of
Satisfactio
n

Highly
Dissatisfied
Dissatisfied
Undecided
Satisfied
Highly
Satisfied
Total

Local
Organization
Number
%

Multinational
Organization
Number
%

Total
Organization
Number
%

3
11
26

6
22
51

0
2
11

0
13
73

3
13
37

5
20
56

10

19

14

12

18

51

100

15

100

66

100

4. Overall Job Satisfaction

Table-7 shows the overall job satisfaction of middle level mangers. It reveals
that 62% (38% highly satisfied and 24% satisfied) in local and 74% (54%
highly satisfied and 20% satisfied) in multinational organizations are satisfied
with their job. It shows that majority of middle level managers are satisfied
but the satisfaction level of middle level managers is slightly high in the
multinational organizations. This table also shows that none of the middle
level mangers was highly dissatisfied in the multinationals but 10% of the
middle level managers were highly dissatisfied in the local organizations.
Table 4: Overall Job Satisfaction

33

Local
Organizations
Percen
Number
t

Multinational
Organizations
Percen
Number
t

Total
Organizations
Percen
Number
t

10

Nil

Nil

Dissatisfied

12

13

12

Undecided

16

13

10

15

Satisfied

12

24

20

23

Highly
Satisfied

20

38

54

28

42

Total

51

100

15

100

66

100

Level of
Satisfactio
n
Highly
Dissatisfied

34

CONCLUSIONS
Employee job satisfaction can improve service quality and increase
employee satisfaction. In this circumstance, policy makers and managers
have turned their attention to provide different kinds of facilities to their
employees in order to satisfy their employees. This study tested factors
affecting job satisfaction for pharmaceuticals companies. The results suggest
that the factors had satisfactorily explained job satisfaction and that the
policy makers and managers should focus on the factors that affect
employee job satisfaction, if they want to enhance their businesses. Based
on the results for the standardized values, we are able to see that work
conditions,

fairness,

promotion,

and

pay,

are

key

factors

affecting

pharmaceuticals companies employees job satisfaction. Money is a good

motivator, actually all employees work for money, employees need the
money, a good salary and good compensations are key factors in satisfying
the employee. The factor of work conditions is also proven to have significant
influence over the pharmaceuticals companies. The physical design of the
place does have certain impacts on job satisfaction. Because the work
conditions

in

the

pharmaceuticals

companies

include

the

employee

relationships and work environment, all these factors relate to employee job
satisfaction. A good performance appraisal system, work environment and
good work conditions can increase employee job satisfaction and the
employees will try to give their best which can increase the employee work
performance.
Results of the study reveal that middle level managers are satisfied in both
local

and

multinational

organizations;

but

mangers

of

multinational

organizations are slightly more satisfied then the local organization

managers. When mangers

were inquired

for

all

the dimensions

of

organizational climate it was found that there was not much difference in
35

both local and multinational organizations on the facets of organizational

climate except for pay and reward system. Middle level mangers of local
organizations were not satisfied with the pay and reward system but the
employees of the multinational organizations show that pay and reward
system in their organizations are good and fair.

36

APPENDIX: 01
Employees Satisfaction Interview Schedule:
The following questions are designed only for research purpose. The researcher has
no intention to represent this information negatively in his paper. The information
will be kept confidently. For the following questions, respondents should be asked to
indicate whether they agree (A), Disagree (D), Strongly Agree (SA), Strongly
Disagree (SD), or are Neutral (N).
Name:
Age:
Designation:
Department:
SL SURVEY QUESTION
Level on work conditions

SA

I am satisfied with the working environment of the company.

I am satisfied with job location.

I am satisfied with the present working hour.

I am satisfied & able to maintain a healthy balance between

work and family life.

5
I have an annual set of performance standards.
Level on Pay and Promotion
6

I am satisfied with the existing salary structure of the

company.

I am satisfied with the compensation I get & I think it

matches with my responsibility.

Our company maintains salary levels that compare well to

other companies in this area.

Level on Fairness
9
I am happy with my work responsibilities.
10

I am satisfied with the present performance appraisal policy

of the company.

11

I am satisfied and think I've been awarded right set of duties,

as per my ability.

12

I feel there is adequate opportunity for me to move to a

better job within the company.

Level on Job Security

13

The company has adequate safety & health standard.

14

I am satisfied with long term benefit & insurance policies of

the company.

29

SD

Level on Relationship with Co-workers

15

The employees in my department work well in a team.

16

My department is well organized for the work it does.

17 I receive co-operation from all other departments.

Level on Relationship with Immediate supervisor
18 My Supervisor recognizes my performance.
19

I receive regular Job performance feedback.

20

The company recognizes the accomplishment of employees.

Questionnaire on: Performance appraisal in Pharmaceutical Industry.

Question 1 Do you think it is necessary to appraise performance of an employee?
a) Yes

b) No

Question 2 What type of employee you select to appraise their performance?

a) Survivor

b) Performer

c) Hard worker

d) a, b, c

Question 3 Appraising performance is a part of our organization?

a) True

b) False

c) Partially a and b

d) None

Question 4 Who appraise the performance?

Question 5 Is performance appraisal done to find out the strength and weakness of
an employee?
Question 6 Does it helps to build strong team performance?
Question 7 Does it bring the performance quality?
Question 8: How many times you appraise the performance of your employee in a
year?
Question 9 Can an employee get several performance appraisals in a particular
year?
a) Yes

b) No

c) Maybe

Question 10 Does your employee need a certain period of time to be a part of

performance appraisal?

30

Question 11 In what criteria you choose most to appraise the performance?

a)
b)
c)
d)
e)

Behavioral aspects
Working capability
Building strong communication
Job handling power
Competency

Question 12 What sort of criteria an employee should meet to be a part of

performance appraising by the firm?
Question 13 If any criteria do not meet by the employee, what will be the
consequence?
Question 14 Is there anything that is most needed to appraise the performance of
your employee?
Question 15 Does performance appraisal brings any promotion to an employee?
a)Yes

b) No

Question 16 Is there any other option by which performance appraisal can be

done? If so
what are the reason behind that?

Appendix: 02. Level on work conditions

Satisfaction level
Very Unhappy
Unhappy
Neither Happy
Unhappy
Happy
Very Happy

nor

Value
(X)
1
2
3(A)
4
5

of

Frequency
(f)
7
15
44
29
5
f=100

X= A+ (fd/f)
=3+ (10/100) =3.10
= 3.1020
=62%

31

d =
X-A
-2
-1
0
1
2

fd
-14
-15
0
29
10
fd=
10

Appendix: 03. Level on Pay and Promotion

Satisfaction level
Very Unhappy
Unhappy
Neither Happy
Unhappy
Happy
Very Happy

nor

Value
(X)
1
2
3(A)
4
5

of

Frequency
(f)
4
21
49
21
5

d =
X-A
-2
-1
0
1
2

f=100

Fd
-8
-21
0
21
10
fd
=2

X= A+ (fd/f)
=3+ (2/100) =3.02
= 3.0220
=60.40%
Appendix: 04. Level on Fairness
Satisfaction level
Very Unhappy
Unhappy
Neither
Happy
Unhappy
Happy
Very Happy

nor

Value of (X)

Frequency(f)

d = X-A

fd

1
2
3(A)
4
5

6
16
51
24
3

-2
-1
0
1
2

-12
-16
0
24
6

f=100

fd=2

X= A+ (fd/f)
=3+ (2/100) =3.02
= 3.0220
=60.40%
Appendix: 05. Level on Job Security
Satisfaction level
Very Unhappy
Unhappy
Neither Happy
Unhappy
Happy
Very Happy

nor

Value
(X)
1
2
3(A)
4
5

of

Frequency
(f)
5
17
50
24
4
f=100

X= A+ (fd/f)
=3+ (5/100) =3.05
32

d =
X-A
-2
-1
0
1
2

fd
-10
-17
0
24
8
fd
=5

= 3.0520
=61%
Appendix: 06. Level on Relationship with Co-workers
Satisfaction level
Very Unhappy
Unhappy
Neither Happy
Unhappy
Happy
Very Happy

nor

Value
(X)
1
2
3(A)
4
5

of

Frequency
(f)
1
19
42
25
13

d =
X-A
-2
-1
0
1
2

f=100

fd
-2
-19
0
25
26
fd=
30

X= A+ (fd/f)
=3+ (30/100) =3.30
= 3.3020
=66%
Appendix: 07. Level on Relationship with Immediate supervisor
Satisfaction level
Very Unhappy
Unhappy
Neither Happy
Unhappy
Happy
Very Happy

nor

Value
(X)
1
2
3(A)
4
5

of

Frequency
(f)
8
25
49
14
4
f=100

X= A+ (fd/f)
=3+ (-19/100) =2.81
= 2.8120
=56.20%

33

d =
X-A
-2
-1
0
1
2

Fd
-16
-25
0
14
8
fd=19