Comparison of Management Practices

Between 3 Pharmaceutical Companies of

Pakistan
Summary of Presentation

• Introduction.
• Problem statement.
• Objectives.
• Significance.
• Literature reviews.
• Methodology of dissertation.
• Conclusion.
• Limitation.
• Recommendation.
Introduction

Usually it seems that management practices in Pakistani industry are autocratic and mechanistic
with top down decision making but new environment values participative and knowledge
management practices. The project emphasis the importance of good management between 3
pharmaceuticals in Pakistan which affects the firm’s performance. For the purpose of study
strategic level management will be chosen like Controllers, Plant managers or CEO to get the
over all picture of pharmaceutical manufacturing plant. Comparison among 3 companies shows
that practices in Pakistani pharmaceuticals are satisfactory and stand above 80% in over all
score.
Problem Statement

Do Pakistani pharmaceuticals maintain sufficient level of management practices?

Objectives

• The aim of the study is to come to know that whether the pharmaceutical industry in Pakistan
acknowledges good management practices as well as modern management practices. And to
what extent they are applied to the organizations. Further the study make comparison between
the management practices of 3 pharmaceutical industry of Pakistan to conclude that which
pharmaceutical has better management practices and have knowledgeable management.
• The study also suggests recommendations for those pharmaceuticals that are not practicing the
management tools as demanded by the environment
Significance

The project will show indirectly the importance and value of management practices in
pharmaceutical industry as compared to other industries of Pakistan e.g. textile or leather etc and
open an avenue for others to study in that direction. The study also shows the practical efforts or
recognition of management practices for organizational efficiency and effectiveness. Further it will
also show the difference in management practices with in the pharmaceutical industry that is
organizations that adopts good management practices and which gives less value or no value to
management practices and adopt traditional bureaucratic styles.
Major Literature Reviews
• BUBL LINK Catalogue of Internet Resources, Management practice
http://bubl.ac.uk/link/m/managementpractice.htm

• Management in Practice Events.

http://www.managementinpractice.com/default.asp?page=event.home

• Management by Stephen P. Robbins & Mary Coulter, 7th edition.

• Management by Koontz
Theoretical Framework

Following constructs were used to measure the management practices

• 1) Strategic Management Practices
• 2) General Management Practices
• 3) Human capital management practices
• 4) Management self assessment practices
• 5) Innovation and creativity
• 6) Supply chain management
• 7) Manufacturing management practices
• 8) Change management practices
• 9) Lean management practices
• 10) Safety and health management practices
Methodology

• Data collection techniques and presentation:

• Data is collected by sending questionnaire to 3 pharmaceutical companies of
Pakistan. Questionnaires were given to qualified individuals and responses were
recorded accordingly. Data was processed using excel worksheet where data is
entered and tabulated and chart wizard for making Column and Pie diagrams.
• Research design is a survey-questionnaire where behaviors, beliefs and observations
of
management were identified, reported and interpreted and it is a cross-Sectional
Study. Questionnaires were send via emails to different destinations and any
complication is handled by mobile phone communication.
• 3 Pharmaceutical companies were selected from Karachi, Lahore and Faisalabad
and strategic level managers were contacted to fill the questionnaires. Sample were
selected on non probability basis.
 STRATEGIC MANAGEMENT PRACTICES

STRATEGIC MANAGEMENT PRACTICES

100%

80%
PRACTICE %

60% AGP

ASK

40% SAF

20%

0%

GOALS COMPETATIVE ENVIRONMENTAL

ADVANTAGE CONCERN
 GENERAL MANAGEMENT PRACTICES

GENERAL MANAGEMENT PRACTICES

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
DECISION MAKING EMPLOYEE’S EMPLOYEE
CRITERIA BEHAVOUR SUPPORT EMPOWERMENT
 HUMAN CAPITAL MANAGEMENT PRACTICES

HUMAN CAPITAL MANAGEMENT PRACTICES

100%

80%
PRACTICE %

AGP
60%
ASK
40%
SAF
20%

0%

MOTIVATIONAL
JOB SELECTION
NATURE OF

DEVELOPEMENNT
TASKS

CRITERIA

EMPLOYEE

TOOLS
 MANAGEMENT SELF ASSESMENT PRACTICES

MANAGEMENT SELF ASSESMENT PRACTICES

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
SELF ASSESMENT FOR ROLE PLAYED FOR SUBORDINATES
IMPROVEMENT
 INNOVATIVE AND CREATIVITY PRACTICES

INNOVATION AND CREATIVITY

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
REASEARCH AND SUGGESTIONS FOR PRODUCT PLANNING
DEVELOPEMT NEW PRODUCTS CRITERIA
 SUPPLY CHAIN MANAGEMENT PRACTICES

SUPPLY CHAIN MANAGEMENT

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
INVOLVEMENT OF SUPPLIERS AND DISTRIBUTORS IN STRATEGIC DECISION
 MANUFACTURING MANAGEMENT PRACTICES

MANUFACTURING MANAGEMENT PRACTICES

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
DAILY WORK TYPES OF CONSEDIRATION OF
PROCEDURES FORMAT CERTIFICATION MODERN TECHNOLOGY
 CHANGE MANAGEMENT PRACTICES

CHANGE MANAGEMENT PRACTICES

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
PREFFERABLE FREQUENCY OF IMPROVEMENTS CHANGE
STATE OF AUDITS REALIZATION MANAGEMENT
ORGANIZATION IMPORTANCE
 LEAN MANAGEMENT PRACTICES

LEAN MANAGEMENT PRACTICES

100%

80%
PRACTICE %

60% AGP
ASK
40% SAF

20%

0%
ORGANIZATIONAL POLICY AND LM TOOLS APPLIED
SYSTEM FOR LM
 SAFETY AND HEALTH MANAGEMENT PRACTICES

SAFETY AND HEALTH MANAGEMENT PRACTICES

100%
90%
80%
70%
PRACTICE %

60% AGP
50% ASK
40% SAF
30%
20%
10%
0%
STAFF SAFETY SAFETY AUDITS
 Over All Comparison of Management Practices

OVER ALL % COMPARISON OF MANAGEMENT

PRACTICES

AGP, 80.22%
SAF, 86.62%
AGP
ASK
SAF

ASK, 82.45%
Data Analysis

• Over all percentage level of strategic management practices are good in case of ASK and
SAF. However AGP is lacking behind in goals and competitive advantage. It seems that
AGP management is more focus towards market development and depends on automation
in future as it considers more important the technology in his strategy
Conclusion
• In general management practices we see that management is more employee centered and
promote a collective culture of team.
• In human capital SAF again has a culture of reward and training which shows the human
development and recognition factor for his human resource.
• SAF which distinct it from all other 2 pharmaceuticals because it involves suppliers and
distributors for strategic level decision making.
• ASK has its strategic management is more focused on technology than human capital.
• Company also believes in drastic changes for improvement.
• AGP is lowest in cumulative percentage as compared to above 2 pharmaceuticals.
• Its strategic management practices are not quality but market share and technological.
• AGP also not believes in employee empowerment. Human capital practices are traditional.
• However the organization is very progressive in lean management practices and other aspects
of management.
• The over all analysis concludes that Pakistani pharmaceuticals have good management
practices and due to this reason Pakistani medicines have high demand in international market.
Limitations
• The study can not be generalized to all pharmaceutical companies in Pakistan.
• The variables used for management practices are not exclusive although they are selected as
most popular ones.
• The study does not involve observations. Therefore the findings are based only on selected
representative manager’s feedback.
• Pharmaceuticals of only Karachi, Lahore and Faisalabad were selected. Lots of pharmaceuticals
are present in Islamabad, Peshawar and Hyderabad.
• Data provided by the representative managers may be biased for many reasons.
Recommendations
SAF
• SAF needs attention in safety management and its relative aspect that is concern for environmental safety and waste
disposal.
• Company should also increase the frequency of audits.
• Lean management practices of SAF are also weak and the organization should approach for advance lean management
evaluation techniques.
ASK
• Should consider human capital its important asset as the future competition is on tacit knowledge base.
• Also the company needs to introduce new products.
• Need strong interaction with suppliers and distributor.
• Lean management practices should be encouraged by the management.
AGP
• Management needs frequent self assessment if it has to retain its human capital.
• Need strategic integration with suppliers and distributors.
• General Recommendations:
• More management constructs should be use in future study like IS management, Knowledge management practices as
there importance are growing day by day
• Sample size should be enlarge enough that it makes the representative sample of Pakistani pharmaceutical industry.
• It is recommended that pharmaceuticals should perform management practices audit to bench mark there practices.
VIRTUAL UNIVERSITY OF PAKISTAN

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