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A Project
Report
On
CADILA PHARMACEUTICALS LIMITED
(Human Resource Management)
Date:- 28th Feb 2012
Beta Class
Submitted to: - Prepared by: -
Shweta Bambuwala Dhruv Brahmbhatt (NR11016)
Keyur Chavda (NR11026)
Bhadres Dangar (NR11037)
Hardik Ramanuj (NR11120)
Dhaval Panara (NR11)
Birju Sadariya (NR11)
N. R. Institute of Business Management- Ahmedabad
Batch- 2011-13
PREFACE
In today's world only theoretical knowledge is of no importance one has to have a
practical knowledge of the subject so as to understand & grasp the subject well. It works
according to the famous proverb "Practice Makes Man Perfect".
In our MBA program, we have to visit a company and to understand it by the way of
collecting information & then to prepare a report on that company which is a part of our
syllabus.
To become sharper in the field of the management, one needs both practical as well as
theoretical knowledge and this level we have such practical training. To achieve this goal
practical study is of utmost importance. Being the student of MBA, we have tried our level
best to furnish all the possible details about the unit i.e. Cadila Pharmaceuticals Limited.
We have visited the unit and have gathered the information provided in the project.
This project gives an overall view of the working of the unit. In this report we have tried our
best to give proper information of Cadila Pharmaceuticals Limited and we have tried our best
to understand the HR policies of the industry.
Page | 2
ACKNOWLEDGEMENT
It is great pleasure for us to introduce this report, which we have prepared after visiting
Cadila Pharmaceuticals Limited.
We would like to thank our Management who has included this practical study in our
syllabus which furnishes us with the complete knowledge about the subject.I would like to
thank to all member of NR-IBM College, who had given such a nice guidance to me in
preparing this report.
I should not forget our duty to acknowledge by debt for gratitude Prof. Shweta
Bambuwala faculty guide who gave their valuable time and guidance. All the above
mentioned persons have given me great co-operation and period.
Last but not the least important we owe “to our respected & dear parents & without their
blessing & moral support study could not have been possible. Again we would like to convey
our thanks to all those who directly or indirectly helped me and contributed their efforts a bit
or more for the preparation and success of this report.
Page | 3
INDEX
1. General Information……………………………………………… 7-18
2. Human Resource Management………………………………… 19-42
3. Conclusion…………………………………………………………… 43
4. Bibliography………………………………………………………… 44
Page | 4
Contents
General Information
Company profile
Vision and Mission
History and Development
Size of the unit and firm
Products
Organization structure
Time-keeping system
Employee services
Page | 5
Contents
Human Resource Management
Introduction
Organization of Personal Department
Recruitment, Selection and Induction
Training and Development
Job Description
Promotion and Transfer Policy
Performance Appraisal System
Wage and Salary Administration
Working of E.S.I. Scheme
Provident Fund Scheme
Grievance Handling Procedure
Trade Union
Personnel Records
Page | 6
GENERAL INFORMATION
Page | 7
Company Profile
Name of the Company: Cadila Pharmaceuticals Limited
Address: Corporate & Registered OfficeCadila Corporate CampusSarkhej-Dholka Road,Bhat, Ahmedabad-382 210, INDIA.
Telephone: +91-2718-225001 (15 Lines)
Fax: +91-2718-225039
Directors: Chairman - Mr. Indravadan A. ModiManaging Director - Dr. Rajiv I. Modi
Year of Establishment: 1951
No. of employees: More than 2000 employees
Nature of Business: Manufacture
Product: Tablets, Capsules, Liquids, etc.
Page | 8
Exporting to countries: Americas, CIS Countries, Africa, Central and South-
East Asia, Oceanic Countries, Japan, Middle East and
Europe
Total Area covered: Spread over 44 acres
Bankers: 1. HDFC Bank2. Bank of Baroda
Page | 9
VISION AND MISSION
Vision
"Our vision is to be a leading pharmaceutical company in India and to become a
significant global player by providing high quality, affordable and innovative solutions in
medicine and treatment.”
Mission
"We will discover, develop and successfully market pharmaceutical products to prevent,
diagnose, alleviate and cure diseases.
We shall provide total customer satisfaction and achieve leadership in chosen markets,
products and services across the globe, through excellence in technology, based on world-
class research and development.
We are responsible to the society. We shall be good corporate citizens and will be driven by
high ethical standards in our practices."
Page | 10
HISTORY AND DEVELOPMENT
History:-
In 1952 Cadila Laboratories was founded by Shri Ramanbhai Patel (1925-2001), formerly
a lecturer in the L.M. College of Pharmacy, and his business partner Shri Indravadan Modi.
The company evolved over the next four decades into one of India's established
pharmaceutical companies.
In 1995 the Patel and Modi families split, Cadila Healthcare became the Patel family's
holding company and with the Modi family's share being moved into a new company called
Cadila Pharmaceuticals Ltd.
Page | 11
Development:-
Cadila Pharmaceuticals Ltd. is one of the largest privately held pharmaceutical
companies in India. Over the last five decades, it has been developing and manufacturing
pharmaceutical products and selling and distributing these in around the world. Cadila
Pharmaceuticals has developed a multicultural, multilingual and multinational workforce
even outside of India in countries of Africa, CIS, Japan and USA.
The company has also developed one of the best Research and Development (R&D)
setups in India, manned by scientists and engineers from various disciplines including
biology, pharmacology, clinical research, chemistry, toxicology, phytochemistry and
different disciplines of engineering. The company also participates in Public-Private
partnerships for developing diagnostic, preventive and curative pharmaceutical and
diagnostic products.
Cadila Pharmaceuticals is the first Indian company to get IND approval by USFDA for
clinical trials to be conducted in India. Subsequently, the company has filed four more INDs
with USFDA.
Page | 12
SIZE OF UNIT AND FIRM
There are three types of industries,
1. Small Scale Industry.
2. Medium Scale Industry.
3. Large Scale Industry.
Firm Investment in fixed capital below Rs. 5 crore is called small scale Industry.
Firm invest in fixed capital between Rs. 5 to 10 crore is called medium scale industry.
Firm invest in fixed capital above Rs. 10 crore is called large scale industry.
Cadila Pharmaceuticals Limited, is a large scale Industry having investment above
Rs.10 crores.
Page | 13
PRODUCTS
Products:
Tablets.
Capsules.
Injections.
Insulin.
Dry Sterile.
Liquids.
Dry Syrup.
Manufacturing Processes:
The Company has re-located its manufacturing operations at the state-of-the-art plant at
Dholka, located 50 km from Ahmedabad, the commercial capital of Gujarat. Spread over 44
acres of verdant, picturesque surroundings, amidst lush green lawns and thick foliage, the
new locale is the most envied pharmaceutical installation in the Asian sub-continent.
Page | 14
Page | 15
Page | 16
ORGANIZATION STRUCTURE
The organization structure of Cadila Pharmaceuticals Limited,
Page | 17
TIME KEEPING SYSTEM
MEANING:
The activity of recording the amount of time an employee works. Time keeping may
involve a formal clock in system or it may be an informal arrangement based on trust.
The time keeping system is one of the important functions of an organization. This is for
regulating incoming and outgoing of employees. In this unit one separate department of time
keeping is kept for his own workers and not for contract based workers. The office of time
keeping is placed near the front door the time officer also maintains the register for wage and
salary.
Cadila Pharmaceuticals Limited has accepted the signature system of time keeping.
The signature system exists for three staff members and card system for its workers who are
unskilled.
The firm sets its goals and assigned to the employees which are to be completed in the
given period.
Timings:
Employees: 9 am to 7 pm
Workers: 2 Shifts
1. 7 am to 5:30 pm
2. 8 pm to 6:30 am
Page | 18
EMPLOYEE SERVICE
In any industry, employees play an important role for running business successfully. It
is therefore necessary for management to give much attention to the employees. The
management should provide better service to the employees. If the employees are given more
and better service, their efficiency and moral towards works become high.
Cadila Pharmaceuticals Limited provides following service to their employees.
Weekly holiday
Canteen Facilities
Medical Facilities
Bonus benefit
Festival benefit
Withdraw Facilities
Loan Scheme
Provident Fund Scheme
Employee State Insurance Scheme
Education assistance for employee’s children and so on
Page | 19
HUMAN RESOURCE MANAGEMENT
Page | 20
INTRODUCTION
Human resources are the most valuable and unique assets of an organization. The
successful management of an organization's human resources is an exciting, dynamic and
challenging task, especially at a time when the world has become a global village and
economies are in a state of flux. The scarcity of talented resources and the growing
expectations of the modern day worker have further increased the complexity of the human
resource function.
Even though specific human resource functions/activities are the responsibility of the
human resource department, the actual management of human resources is the responsibility
of all the managers in an organization. It is therefore necessary for all managers to understand
and give due importance to the different human resource policies and activities in the
organization.
Human Resource Management outlines the importance of HRM and its different
functions in an organization.
It examines the various HR processes that are concerned with attracting, managing,
motivating and developing employees for the benefit of the organization. This discusses the
issues in human resource management in a changing environment and suggests possible ways
of leveraging and managing human resources.
"If you want 10 days of happiness, grow grain.
If you want 10 years of happiness, grow a tree.
If you want 100 years of happiness, grow people."
Page | 21
ORGANIZATION OF PERSONEL
DEPARTMENT
In Cadila Pharmaceuticals Limited, the organization chart of the personnel department
is as follows,
Page | 22
RECRUITMENT, SELECTION AND
INDUCTION
Recruitment:-
Recruitment refers to the process of identifying and attracting job seekers so as to build a
pool of qualified job applicants. It is the first contact that a company makes with potential
employees. It is through recruitment that many individuals will to know a company, and
eventually decide whether they wish to work for it. Recruitment is understood as a process of
searching for and obtaining application for jobs, from among whom the right people can be
selected.
When employee retired
When employee is dismissed
When employee is given promotion or transfer
There are three methods of recruitment:
1. Direct Method:-
These include sending traveling recruits to educational and professional institutions,
employee’s contacts with public, and manned exhibits.
2. Indirect Method:
This method involves mostly advertising in newspaper, on the radio, in trade and
professional journals, technical magazines and brochures.
Page | 23
3. Third Party Method:
These include the use of commercial or private employment agencies, state agencies
placement officers of schools and professional associations, recruiting firms,
management insulting firms, indoctrination seminars for college professors, and
friends and relatives.
In Cadila Pharmaceuticals Limited, Recruitment process for the office staff is different
from the workers for the staff members, this company use indirect method for recruitment
which means advertise in news paper for its requirements regarding office staff. But
recruitment to the workers, company use third party method which means workers are hired
from internal sources of the company i.e. the relative and friends of the present employees
etc.
Selection:-
After the recruitment process then selection process is started. Selection is a long process,
commencing, from the preliminary interview of the applicants and ending with the contact of
employment. Selection is the process hiring the best candidate from the pool of applications.
It refers to the process of offering jobs to one or more candidate from the applications
received through recruitment.
In Cadila Pharmaceuticals Ltd. Manager holds the interview himself, for the selection
of the right candidate. The main stress is given to the experience of the applicant. If any staff
member fits the required category he is selected and then he joins as an apprentice for three
months and if successful he is finally joins the company. And the company hires any worker
only if he has experience in the same department or if he has technical knowledge of it.
Page | 24
Induction:-
Induction is welcoming a new employee to the organization. The purpose of introduction is to
educate the employee and provide orientation on the process, rules and regulations, products,
etc.
In Cadila Pharmaceuticals Ltd. when employee is recruited he is given few days to view
the unit and prepare the note of the work once the employee is selected, he is given general
information about company’s rules and regulations, time-keeping system, products and also
introduced with organization staff and given all the details about his job. Then selection
procedure is completely over.
Page | 25
TRAINING AND DEVELOPMENT
Training & Development refers to the imparting of specific skills, abilities and knowledge to
an employee. Training & Development provide a necessary knowledge and skills to perform
his job effectively. Many a times, organization also provides to old employees to adjust in a
changed situation.
Training:-
Training is a process that tries to improve skills, or add to the existing level of knowledge so
that the employee is better equipped to do his present job, or to mould him to be fit for a
higher job involving higher responsibility.
Development:-
The term development implies overall development in a person it not only means
improvement in job performance, but also improvement in knowledge, personality, attitude,
behaviorism of an executive.
Training is of two types,
(1) On the Job.
(2) Off the job
Page | 26
The Cadila Pharmaceuticals Limited uses following training methods
1. On-the-Job Methods
Orientation training
Job-instruction training
Apprentice training
Internship and assistantship
Job rotation
Coaching
2. Off-the-Job Methods
Vestibule
Lecture
Special study
Films
Television
Conference or discussion
Case study
Simulation
Programmed instruction
Laboratory training
Page | 27
JOB DESCRIPTION
A job description will set out how a particular employee will fit into the organization. It will
therefore need to set out:
the title of the job
to whom the employee is responsible
for whom the employee is responsible
A simple description of the role and duties of the employee within the
organization.
A job description could be used as a job indicator for applicants for a job. Alternatively, it
could be used as a guideline for an employee and/or his or her line manager as to his or her
role and responsibility within the organization.
In Cadila Pharmaceuticals Limited, they are having positive attitude towards job
description. Thus, company has defined very good job for the management.
In this company job description is the statement containing items such as job title,
location, job summary, duties, tools and equipments, supervision given or receives, working
conditions etc. It consist of the details such as job title, department in which the employee has
to work, immediate level subordinates, objective of the job, principle duties and
responsibilities, authority limits etc.
Page | 28
PROMOTION AND TRANSFER POLICY
Promotion:-
Promotion is a vertical movement of an employee within the organization. In other words
promotion refers to the upward movement of an employee from one job to another higher
one, with increase in salary, status and responsibilities. Promotion may be temporary or
permanent, depending upon the needs of the organization.
Promotion policy:-
It must provide equal opportunity for promotion across the job, departments,
and regions.
It must be applied uniformly to all employees irrespective of their background.
It must be fair and impartial.
The basis of promotion must be clearly specified and made known to the
employees.
It must be correlated with career planning. Both quick and delayed promotions
must e avoided as these ultimately adversely affect the organizational
effectiveness.
Appropriate authority must be entrusted with the task of making final decision.
Page | 29
Promotion must be made in trail basis. The progress of the employee must be
monitored. In case, the promoted employee does not make the required
progress, provision must be therein the promotion policy to revert him/her to
the former post.
The policy must be good blending of promotions made from both inside and
outside the organization.
In Cadila Pharmaceuticals Limited, promotion is given according to its ability of the
worker. When personal manager study employees & he has to see that person is able to work
in other plant & other organization. He is able to bear the other responsibilities. In Cadila
Pharmaceuticals Limited promotion is given on performance behaviors, seniority, works
honesty, ability etc.
Transfer:-
A transfer refers to lateral movement of employee within the same grade, from one job to
another. In other words transfer means change in the job (accompanied by a change in the
place of the job) of an employee without a change in responsibilities or remuneration.
Transfer policy:
Specify the circumstances under which transfers will be made. These
should be in writing and should be communicated to the employees.
Eg: defence personnel and government employees are subjected to
transfer once in three years. The employees in these organizations
know when they are due for a transfer and are prepared for it.
Specify the basis for transfer i.e., whether transfer will be made on the
basis of seniority or skill and competency or on any other basis.
Page | 30
Decide the authority which would handle transfers.
Intimate the fact of transfer to the person concerned well in advance.
Specify the jobs to which transfers will be made and duties and salary
on assumption of new jobs should also be clarified.
Indicate whether transfers can be made within a department or between
departments or between units.
Clarify whether transfer is permanent or temporary.
Not to be made frequent and not for the sake of transfer only.
In Cadila Pharmaceuticals Limited, the company can transfer any employee from any
place for better performance. This is also when adjustments are to be done regarding the
running of some equipment or to adjust the employees. While transferring employees the
company has never change anything of employees regarding job. Thus, the company has not
felt so much need to transfer its employees, because all of them are performing their job
efficiently. However they give proper attention on it.
PERFORMANCE APPRAISAL SYSTEM
Page | 31
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps
to analyze his achievements and evaluate his contribution towards the achievements of the
overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of
personnel management and reflects the management's interest in the progress of the
employees.
Page | 32
Objectives of Performance appraisal:-
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
He to strengthen the relationship and communication between superior –
subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
To provide feedback to the employees regarding their past performance
Provide information to assist in the other personal decisions in the
organization.
Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
In Cadila Pharmaceuticals Limited, there is also performance appraisal system
and even they make a confidential report. This register is given to all the managers & then
they decide what kinds of steps are to be taken.
Mainly there are 3 types of performance appraisal report in this unit:
Good performance
Steady performance
Low performance
Page | 33
WAGES AND SALARY
ADMINISTRATION
Wage and salary of an employee can be determined according to their work and their
category. It is determined according to his grade filling under different categories. Wages
represent hourly rates of pay, salary refers to the monthly rate of pay, irrespective of the
number of hours put in by an employee. Wages and salary are subject to annual increments.
They differ from employee to employee and depend upon the nature of job, seniority, merit.
Wage and salary is the compensation to the employee for their daily work. The basic
purpose of wage and salary is to establish and maintain an equitable wage and salary
structure. Wage and salary should be internally equitable and externally competitive and
should pay individually on the basis of their skill and performance.
Salary is the main motivator for a worker. So it is very necessary to continuously
administer the salary and motives the workers.
Cadila Pharmaceuticals Limited is very generous paying wages or salaries to its worker
and employees. Wages are paid to employees working in manufacturing department while
salaries are paid to the office and management staff. The company also maintains monthly
records.
Page | 34
The salary is basically dependent on,
Nature of work
It differs work to work , for example a packing are given less salary as supervisor
and department heads are given compared to production department worker.
Position
Salary differs from position to position but worker are given daily where as the
supervisor and department heads are given on monthly basis.
Incentives for good performance
Company many times gives special incentives to its employees for good performance to
motivate them for continuous better work.
They believe that, wage or salary, which satisfies the employees, is an important factor to
motivate the worker and increase their efficiency.
Page | 35
WORKING OF ESI SCHEME
Employee state insurance scheme (E.S.I.) covers all workers wages excluding
remuneration for overtimes. Works does not exceed Rs. 3,000 month & who is employed in a
factory having 20 or more employees. It may differ this scheme provides security while
workers are on the service.
Since the worker are in continues contact of machines it is necessary under act to provide
a compulsory insurance. All the workers in this unit are insured. Even under accident.
Insurance that is under factory act. In this unit employees insurance scheme fund is directly
deducted from the salary of the workers as per rules the regulation of the government 1948.
The employee contributes 4% of wage bill and employee contributes 1.5% of salary.
Benefits of scheme-Medical benefits:
Sickness benefits
Maternity benefits
Disable benefits
Dependant’s benefits
Page | 36
In Cadila Pharmaceuticals Limited, Employees’ State Insurance Scheme is working
properly. All the permanent employees come under this scheme and they are insured
according to the government rule and regulation.
The employees are entitled to medical facilities for self and dependants. They are also
entitled to cash benefits in the event of specified contingencies resulting in loss of wages or
earning capacity. The insured women are entitled to maternity benefit for confinement.
Where death of an insured employee occurs due to employment injury, the dependants are
entitled to family pension.
The scheme also provides Rehabilitation allowance and Vocational Rehabilitation.
Page | 37
PROVIDENT FUND SCHEME
As per the government rule, every organization which have more than 20 employees,
have to pay provident fund to its employee. The minimum rate of provident fund is 8.33%
this
Rate is as per rule of government regarding the provident fund.
“Cadila Pharmaceuticals Limited” provides the provident fund .In providing the PF
some amount from the employee salary is deducted and some are added into the company.
Page | 38
GRIEVANCE HANDLING PROCEDURE
Grievance:-
Complaints affecting one or more individual workers in respect of their wage payments,
overtime, leave, transfer, promotions seniority, work assignment and discharge would
constitute grievance. Where the points at dispute are of dispute is of general applicability or
considerable magnitude, they will fall outside the scope of this procedure.
Grievance handling procedure:-
Time action: the first and foremost requisite in grievance handling is to settle
them immediately as and when they arise. Or say, grievances need to be nipped in
the bud. Sooner the grievance is settled, lesser will be its effects on employees
performance. This requires the first line supervisors be trained in recognizing and
handling a grievance properly and promptly.
Accepting the grievance: the supervision should try to recognize and accept the
employee grievance as when it is expressed. It must be noted that acceptance does
not necessarily mean agreeing with grievance, it simply shows the willingness of
the supervisor to look into the complaint objectively and dispassionately to deal
with the grievance. Evidences suggest that more the supervisor shows his on her
concern for the employees, lesser is the number of grievance raised by the
employee.
Identifying the problem: as stated earlier, the grievance expressed by the
employee may be at times simply emotionally, overtones, imaginary and vague.
Page | 39
The supervisor therefore needs to identify or diagnose the problem stated by the
employee
Collecting the facts: once the problem is real problem, the supervisor should
collect all relevant facts and proofs relating to the grievance. The facts so
collected need to be separated from the opinions and feeling to avoid distortions
facts. It is useful to maintain the facts for future uses as and when required.
Analyzing the cause of the grievance: having collected all the facts and figures
relating to the grievance, the next step involved in the grievance procedure is to
establish and analyze the cause that led to grievance.
Taking decision: in order to take best decision to handle the grievance,
alternative courses of action should worked out. These are, then, evaluated in the
view of consequences on the aggrieved employee, the union and the management.
Finally the decision should be taken which is best suited to the given situation in
the organization.
Implementing the decision: the decision whatsoever taken must be immediately
communicated to the employee and competent authority. The decision thus
reviewed to know whether the grievance has been resolved or not.
In Cadila Pharmaceuticals Limited, when problem arise it is solved by top executive. He
calls a meeting and discusses with managers and executives and then takes proper decision
regarding the problem.
Page | 40
TRADE UNION
Trade union:-
Trade union means a continuous association of wage earners for the purpose of maintaining
or improving the conditions of their working lives. All organizations of employees including
those of salaried and professional workers as well as those manual wage earners which are
known to include among their functions that of negotiating with their employers with object
of regulating conditions of employment.
Workers join trade union for:
Job security
Wages and benefits
Working conditions
Fair and just supervision
Powerlessness
Need to belong
Page | 41
Types of trade union:
Industrial union: it is a union composed primarily of semi-skilled blue-collar
employees in the manufacturing industries. The industrial union also referred
to vertical union
Trade union: it is also called craft union, is an association of workers cutting
across many companies and industries.
Employee association: it is also known as fraternal order, is generally
composed of white collar or professional employees, such as teachers, police
officers, administrative, technical, and health care employees. (FEDCUTA)
federal of central universities teachers association is such an example.
In Cadila Pharmaceuticals Limited, trade union is running successfully.
Page | 42
PERSONNEL RECORDS
Personnel records preserve evidence for future reference. This records provide detail
information about the employees when the need of it’s arise. Personnel records are
important at the time of paying salary, promotion, demotion, transfer, selection, etc.
Cadila Pharmaceuticals Limited maintains following records of their employees.
The firm has developed the computer system for keeping all these data.
Name and Address of the employees
Telephone No’s
Age of the employees
Education and Qualifications
Family record
Attendance
Past performance
Experience of the employee
Service in any other unit before joining this company
Reasons for joining to the firm
Interview report
Other important matters
Page | 43
CONCLUSION
Human resource management is very important part of management in every
company or firm. It deals with the human factors in industries & key rules in achieving the
co-operate goals.
In this company the management of the human resource is manage in a decent way by
the manager of human resource. The recruitment procedure, selection procedure & training
procedure is arranged in such a manner that the unit does not get disturb during all these 3
procedure. After training is given the description of job is given to the particular employee,
promotion is given on the bases of work done by the employee.
The other system of provident fund scheme & E.S.I. scheme is managed in such a
way that it is beneficial to the employee. In this unit there are no unions, which is also a good
part for the unit in managing the company.
Page | 44
BIBLIOGRAPHY
WEBSITES:-
1. www.cadilapharma.com
2. www. wikipedia.org
3. www.google.com
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