Square Company

8/17/2019 Square Company

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SQUARE LTD.1

Introduction

Origin of the report:Square Limited is the largest corporation in Bangladesh and it has been continuously in the 1 st

position among all national and multinational companies since 1985. They have a reputation

name in pharmaceutical industry of Bangladesh ith their Square !harmaceutical Ltd. for

manufacturing quality medicines for more than four decades. "o they have vast industries

Square #onsumer !roducts Ltd.$ Square %nformati& Ltd$ Square 'ospitals Ltd. %ncorporated$

Square Te(tile Ltd. and Square Toiletries Ltd. The company plays a significant role in

producing quality products in Bangladesh. %t also plays a vital role in developing the

socioeconomic condition of our country by paying a large amount of ta( and ta)ing

participation in social activities. *s a part of our study curriculum in BB* course$ e have

been assigned to conduct a study on an organi+ation finding management practices folloed

by the company. Square as a perfect choice for study because of its different sectors in

business.

Objectives of the report:

• To achieve deep )noledge about the organi+ation.

To fulfill the partial requirement of our course of !rinciples of ,anagement.

To evaluate the management activities of Square Ltd.

• To analy+e the e(isting structure$ Strategy and planning mechanism$ decision-ma)ing

process$ 'uman esource ,anagement systems$ /rgani+ational behavioral

environment$ Leadership practices$ ,otivational tools and controlling systems of this

company.

Methodology:

%nformation used in this paper e collected from related boo)s$ 0ournals$ periodicals

annual report etc. 2e follo the Square the concerned rules regulation relating to company

systems closely. 2e also collected information from ebsite.

Limitations:


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SQUARE LTD.2

There are some limitations that e have faced during preparing the report. The most obvious

limitation is the unavailability of genuine information. *nother limitation is lac) of available

information source related to this topic. *s it is a huge corporation and so many sectors of

industries it as difficult to focus on all the companies. /ther limitation is our report is

mostly te(t based. *lso it as difficult to or) as a group on this report.

Organizational Profile


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Background:

Square today symboli+es a name 3 a state of mind. But its 0ourney to the groth and prosperity has been no bed of roses. 4rom the inception in 1958$ it has today burgeoned into

one of the top line conglomerates in Bangladesh. Square roup$ the flagship company$ is

holding the strong leadership position in the industrial sector of Bangladesh since 1958 and is

no on its ay to becoming a high performance global player. The company plays a

significant role in producing quality drugs$ cosmetics and toiletries and consumer products$

te(tile sector$ data communication service provider and even in health care in Bangladesh. %t

also plays a vital role in developing the socioeconomic condition of our country by paying a

large amount of ta( and ta)ing participation in social activities.

Square !harmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it

has been continuously in the 1st position among all national and multinational companies

since 1985. %t as established in 1958 and converted into a public limited company in 1991.

The sales turnover of S!L as more than Ta)a 5 Billion 67S 9 million: ith about 15;

mar)et share 6*pril $ Square Toiletries Ltd. became a !rivate Ltd.

#ompany. *t present$ STL is the countrys leading manufacturer of international quality

cosmetics and toiletries ith


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SQUARE LTD.4

S@7*A roup provides data communication service by their company Square %nformati&

Ltd by setting up a satellite earth station in Bangladesh and providing internet service. Square

also providing health care ith their Square 'ospital Ltd. established around


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SQUARE LTD.5

• %t strives for best compensation to all the employees ho constitute the bac)-bone of

the management and operational strength of the #ompany through a pay-pac)age

composing salaryEages$ alloances$ bonus$ profit participation$ leave salary and

superannuation retirement benefits.

• %t strives for best co-operation of the creditors debtors the ban)s financial

institutions ho provide financial support hen it need them$ the suppliers of ra

materials suppliers ho offer them at the best prices$ the providers of utilities-

poer$ gas ater etc. and the customers ho buy its products services by

redeeming their claim in time by ma)ing prompt payment and by distributing proper

product on due dates.

• %t strives for fulfillment of its responsibility to the overnment through payment of

entire range of due ta(es$ duties$ and claim to various public agencies.

• %t also strives$ as responsibilities citi+en$ for a social order devoid of malpractices$

anti-environmental behaviors$ unethical and corruptive dealings.

• %t strives for practicing good governance in every sphere of activities covering inter

alia not being limited to$ disclosure reporting to shareholders holding *, in time$

distribution of dividends and other benefits to shareholders$ reportingEdissemination

of price sensitive information$ acquisition of share by insiders$ recruitment

promotion of staff$ procurement supplies$ sale of assets etc. all that directly and

indirectly affect the interest of concerned groups 3 the shareholders$ the creditors$

suppliers$ employees$ government and the public in general.


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SQUARE LTD.6

PL&))I)*

+ecision making procedure:

Square roup follos a systemic ay to ta)e a particular decision. Based on the present

previous available data and information the decision is made$ focusing predicting the

future consequences. !lans have different alternatives in order to improve future

performance. The respective managers of different departmentsEdivisions scrutini+e those

plans and best of them are placed to the ,anagement for approval through ,erits demerits

of particular proposalsEplans are observed by the management of the company to reach to a

single decision. This decision is also important to develop the strategy for the long term benefit of the Square. Fecision ma)ing process includes-

• %dentification of the problem

• Feveloping alternatives for the solution of problem

• *naly+ing alternatives

• Selecting an alternatives

• %mplementing the *lternatives.

• Sometimes the management also ta)es help from the technical e(perts in the relevant

field. The day to day planning and decision ma)ing is mainly directed by the head of

each department decision.

!lanning is a very important tool for every organi+ation. !lanning involves defining the

organi+ationDs goals$ establishing an overall strategy for achieving those goals$ and

developing a comprehensive set of plans to integrate and coordinate organi+ational or).

Square also ma)es a several types of plans to achieve their organi+ational goal

Long term plan:

Square ma)es long term plans hich cover more than three years. Such as$ Square %ncreases

its production more than =; ithin to years.

#hort term plan:

Square ma)es some short term plans hich cover less than one year. They ma)e several types

of short term plan. Such as$ they decide they ill increase their sales volume 1; ithin ?

months.


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#pecific plans:

Square ltd. ,a)e some specific plan hich are clearly defined and that leaves no room for

interpretation. They ma)e several types of specific plans. Such as give order to the generalmanager of production to increase production


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SQUARE LTD.8

O'*&)I,I)*

#tructure of the Organization

The formal arrangement of 0obs ithin an organi+ation is the structure of an organi+ation.

Square divides or)s to be done into specific 0obs and departments$ assign tas)s and

responsibilities associated ith individual 0obs$ coordinate diverse organi+ational tas)s$

clusters 0obs into units$ establish relationship$ formal lines authority$ allocates and deploys

organi+ational resources.

+epartmentalization:

The basis by hich 0obs are grouped together is )non as departmentali+ation. #-uare has

established functional structure of organi+ation. The various functions of the underta)ing are

first determined and then a functional e(pert in each is appointed$ ho ill be responsible for

his technical function. Square Ltd has established the folloing department for his smooth

running.

Planning departmentG

*fter getting production order from merchandising dept. they analy+e the production order

rearrange the orders as per delivery schedule. Then distribute the production order to

respective dept. ta)e delivery schedule. The planning dept. alays update production order

inform merchandising dept. about the order status. %f any deviation found then they call

meeting ith respective dept. help to come out.

Production department:

*fter getting production order ith ready for delivery schedule then analy+e the order

planning as self-dept. elated all technical process prepare and supply in floor and produced

as per buyer requirements. Store lab related all activities completed by production

department.


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"inance department:

This department determines the required fund$ calculates the cost of each source$ and finally

collects the required fund from the minimum cost source.

.uman resource department:

'F involves planning$ recruiting$ selecting$ orienting$ training developing human

resources in the organi+ation. %n order to improve productivity of human input$ the #ompany

continuously provides formal and informal training to the employees at every echelon of

operation and management. Furing the year under revie > persons received inhouseEin

operationEon the 0ob training at home and abroad hich ill ultimately ma)e great

contribution to the #ompanys profitability as ell their on remuneration in due course.

&ccounts department:

They maintain companieDs

!roper boo)s of accounts.

Budgetary control$ matters relating to statutory audit and corporate ta( matters.

!repare of periodic financial statements as prescribed in the applicable act$ rules and

relevant las.

Budget preparation and control.

Fealing ith ban)s and financial institution in negotiating terms and condition of

short term and long term investment.

Firecting company short and long term business plan.

Feveloping and implementing companyDs financials plans and policies.

!reparation of monthly$ quarterly$ half yearly and annual management reports on

accounts including analysis of variances.

Purchasing department:

Ta)ing all positive steps to purchase as company requirements but sometime ra materials purchasing is not up to the mar) quality.


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SQUARE LTD.10

/ob analysis:

Square has effective practice for 0ob analysis. %n or)ing process all related people confirm

0obs and behaviors necessary to perform them .But 0ob analysis by Anglish is difficult to

understand for or)ers.

/ob specialization:

The degree to hich tas)s are divided into separate 0obs is also )non as division of labor. %n

this organi+ation every employee has 0ob specification but all 0obs are not speciali+ed

according to employeesD s)ill$ abilities$ performance e(periences.

#pan of control:

The number of employees a manager can efficiently effectively manage is refer to as span

of control. %n Square ider span is in production department. *s a result it is more efficient in

terms of cost but less effective. /ther departments have been reached to a limited range.

2hen the span becomes too large$ employee performance suffers because managers no

longer have the time to provide the necessary leadership and support. Larger span of control

are consistent ith managers efforts to reduce costs$ speed up decision ma)ing$ increase

fle(ibility$ get closer to customers and empoer employee.

.ierarchy:

%n Square has a system of hierarchy. 4rom top level management to loer level or)ers are

/rgani+ed in hierarchy$ each loer level one is being controlled and supervised by higher

level one in every department.


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.uman 'esource Management

'uman esource department plays an important role to develop the most efficient manpoer

for the Square. S)illed$ efficient$ dynamic manpoer is one of the most desirable features of this organi+ation. 4or this aspect 'F recruited the perfect one by giving advertisement in

different Faily nespapers and ta)ing ritten test and ta)e ritten test and also viva voce

e(am. To have the best product of the nely appointed personnel$ it also has the training

division.

'ecruitment:

The recruitment process is structured in a ay that the highly qualified persons li)e to

compete. %n the recruitment process 'F mainly focused on the spirit$ abilities$ s)ill$

e(perience$ intention and s)ill to perform the assigned 0ob efficiently so that the goal of the

organi+ation can be achieved.

&dvertisement for the recruitment of a particular post:

4or the recruitment and selection of employees of the Square !harmaceuticals Ltd.

advertisement process through the Failies is maintained. This advertisement carries the

necessary requirement of the candidates for the particular post as ell as the address and the

last date to apply.

Intervie0 1 selection:

*fter the advertisement$ a certain number of candidates is selected for the ritten test at a

particular day. *fter this ritten test the selected candidates also has to face the viva. *fter

the viva$ a selection is made for based on the s)ills$ educational bac)ground$ e(perience$

smartness and the overall performance the selected ones get appointment letters.

2raining 1 development:

To get the best output and to materiali+e the employees this organi+ation maintains a training

division. *nyone requiring specific training gets the training facility to develop the best in

him. "ely appointed ones are mostly under this consideration.


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&ppraisal:

The superior ones observe the performance of the immediate officials or)ing under his

close direction. Based on the recommendation and report of the superiors 'F prepares

promotion$ bonus. Square provides incentives to the employees ho e(ert e(tra efforts to his

0ob. The incentive criteria may in the form of an increment at the end of the year. Some basic

salaries pay to those employees hich motivate the employee concern very much.


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L(&+I)*

Motivating employees:

Avery organi+ation conducts its activities and achieves success by using the effort of its

employees. ,an is poer. So this poer must be utili+ed. Avery organi+ation ta)es different

initiatives so that the employees can perform their 0obs efficiently and effectively.

/rgani+ations motivate its employees and influence them so that they can do their best

or)ing in full sing. /rgani+ations also provide training to increase quality level of

employees.

Square is one of the top-notch companies in Bangladesh. %t has created sources of

employment as ell as it is also committed to )eep rights of the employees. Square has ta)en

different initiatives so that employees be motivated and do their best for accomplishing the

goal of the company. The motivational tools the Square uses are given beloG

Square motivates its employees by meeting their physiological needs$ providing 0ob

security and other facilities.

%t motivates its employees by providing the opportunity of achievement. %t provides

its employees ith the opportunity of developing their career quic)ly. * medical

representative can be promoted quic)ly in the post of field manager$ then in the

administrative officer etc.

*s the higher posts of Square contain higher poer$ the company motivates its

employees by encouraging them to sho a better performance and achieve the poer.

*s Square provides the opportunity of research$ an employee can research for

inventing ne drugs and be renoned in the country and abroad.

Square has created stuff provident fund for the future financial benefit of the stuffs.

The company has an unfunded gratuity scheme hich is )non as Amployees

etirement ratuity. 7nder this scheme employees get the benefit depending on the

length of service.

Square has a group insurance scheme for its permanent employees.


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Square has also created or)ers profit participation fund and elfare fund. This

company ma)es a regular allocation of 5; on net profit before ta( to this fund and

payment is made to or)ers as per provisions of the companys profit according to the

2or)ers !articipation act$ 19?8.

%t gives festival bonuses in every Aid and other religious occasions of the employees

of different religion.

%t also gives bonuses hen sales representatives fulfilled their sales goals.

%ncentive bonus is given depending on the profitability.

Special remuneration is given if a certain target is fulfilled ithin a certain period of

time.

The incentive criteria may in the form of an increment at the end of the year.

Square arranges annual reard giving ceremony for best sales representative.

Leadership Practices:

Leadership is the process of influencing a group toard the achievement of goals. *s a

successful company$ Square !harmaceuticals Ltd. practices leadership in its organi+ation for

moving the hole organi+ation toards its goals.

4or properly influencing the employees it provides its leaders i.e. managers ith different

types of poers$ such as legitimate poer$ coercive poer$ and reard poer. %ts leaders can

give orders to employees$ praises them and discipline those ho violate the company rules

and regulations.

The leaders in the Square are characteri+ed by high level of credibility and trustorthiness.

They are admired by their subordinates and they can inspire their subordinates. The proof of

this is the increased productivity of Square or)ers than that of or)ers of its competitors.

The employees of Square trust their leaders i.e. they are illing to be vulnerable to the

leaderDs actions because most of their leaders have the e(cellence of integrity$ competence$

consistency$ loyalty and openness.

SquareDs managers provide their employees ith morale that ma)e them ambitious and

successful. Square also empoer the employees i.e. increase the decision-ma)ing discretion

of employees. %t empoers its medical representatives for ta)ing instant decision for

convincing doctors and medicine sellers.


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SQUARE LTD.15

!O)2'OLLI)*

!ontrolling Process:

%n todayDs competitive global mar)et place$ managers ant their organi+ations to achieve

high level of performance by ensuring the effectiveness of the or) activities. The

managerial function of controlling is the measurement and correction of performance in order

to ma)e sure that enterprise ob0ectives and the plans devised to attain them are being

accomplished. %n broader sense the process of monitoring or) activities to ensure that they

are being accomplished as planned and of correcting any significant deviations beteen the

actual performance and the standards for the performance established.

&pproaches follo0ed by #-uare to designing !ontrol #ystem:

There are three different approaches to designing control system have been identifiedG

mar)et$ bureaucratic$ and clan.

Market !ontrol:

Square uses ,ar)et #ontrol hich is an approach to control that emphasi+es the use of

e(ternal mar)et mechanisms$ such as price competition and relative mar)et share$ to establish

the standards used in the control system. By using mar)et control$ Square turned its divisions

into profit centers and evaluated by the percentage of total corporate profits each contribute.

Typically used by organi+ations hose products or service are clearly specified and distinct

and that face considerable mar)etplace competition.

Bureaucratic !ontrol:

*s Square is a very large company it also uses Bureaucratic control hich is an approach to

control that emphasi+es organi+ational authority and relies on administrative rules$

regulations$ procedures$ and policies. %t is based on strict hierarchical mechanisms.

!lan !ontrol:

Square also uses #lan control is an approach to control in hich employee behavior is

regulated by the shared values$ norms$ traditions$ rituals$ beliefs and other aspects of the


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SQUARE LTD.16

organi+ationDs culture. %t is dependent on the individual and the group 6or clan: to identify

appropriate and e(pected behaviors and performance measures.

2he !ontrol Process:

*s controlling is a continuous process$ Square follos a three step process for controllingG

measuring actual performance$ comparing actual performance against a standard$ and ta)ing

managerial action to correct deviations or inadequate standards.

Measuring the actual performance:

*t first SquareDs managers measure the actual performance of the or)ers. There are four

sources of information frequently used by managers to measure actual performance. 4our

sources consist of personal observations$ statistical reports$ oral reports and ritten reports of

the organi+ation.

!omparing the actual 0ith standard:

The second step of the controlling process named comparing step determines the degree of

variation beteen actual performance and the standard.


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2aking managerial &ction:

%n this step SquareDs managers ta)e necessary actions if there is any variation beteen *ctual

and standard performance. There are three possible courses of action for managers. They can

do nothingH they can correct the actual performance$ or they can revise the standards hen

they can reali+e that the variance as a result of an unrealistic standardH that is the goal may

have been too high or too lo.

2ools used by #-uare for !ontrolling Organizational Performance

Since organi+ations performance depends upon proper controlling$ Square uses different tools

for controlling its performance. These are given belo

The most desirable type of control feed forard control prevents anticipated problems since it

ta)es place before the actual activity. #oncurrent control ta)es place hile or) activity of

the organi+ing is in progress and feedbac) control ta)es place after a or) activity is done.

Besides these three controlling tools Square also uses some other tools of controlling such as

financial controls including ratio analysis and budget analysis$ economic value added6AI*:

and mar)et value added6,I*: $ balanced scorecard and information controls.


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&nalysis

* comparison of strengths$ ea)ness$ opportunities and threats is normally referred to as

analysis. Avery organi+ation over the years of its operation generates some strength and someea)nesses hich are solely internal and not dependent on the e(ternalities. /pportunities

and threats are on the contrary out of control of an organi+ation and thus absolutely e(ternal.

Square has many things to its credit as strengths hile li)e any other company in the same

company has some ea)nesses. Square is alays abreast of the mar)et trend and proactive to

adopt any mar)et changes and e(plore opportunities.

#trengths:

Strengths are activities that an organi+ation does ell or any unique resources that it has. The

strengths of Square areG

• A(cellent quality of product

• Fynamism

• Fynamic products

•'igh tech machineries.

• S)illed technical person.

• Less or)er migration

• oodill in mar)et.

• Strong sales netor)

3eaknesses:2ea)nesses are activities that an organi+ation doesnDt do ell or resources it needs but

doesnDt possess. The ea)nesses of Square areG

• * ea) advertising system

• #anDt produce all the products required.

• Sometime onerDs relative employee act as a disturbance employee.

• #anDt e(port products in all the countries in the orld.

• "eed to import most of the ra materials


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Opportunities:

/pportunities are positive trends in the e(ternal environmental factors. The opportunities of

Square areG

• /rgani+ation has a strong goodill in the Aurope and *merica.

• /n line information system. So$ %nternet base can help the customers to see their

information from their home personal computer.

• #ustomers trust its products.

• %t has a vast netor) of suppliers.

• ovt. rules and regulations are slac) on the pharmaceutical sector.

2hreats:

Threats are negative trends in the e(ternal environmental factors. The threats for Square areG

• Large volume buyer ill not be come due to une(pected political unrest.

• ro up competitor ith most modern machineries.

• Lac) of s)illed or)ers in the industry.


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#%MM&'4

Square is one of the dominating companies in Bangladesh. %t has been operating its business

operations successfully in different sectors by its long time e(perience and strong

management process. By its s)illed human resource$ ell defined plan$ definite goal and

strong leading process it becomes a leading company in Bangladesh. The company plays a

significant role in producing quality drugs in Bangladesh. %t also plays a vital role in

developing the socioeconomic condition of our country by paying a large amount of ta( and

ta)ing participation in social activities. Square leads its employees in such a ay that they

help organi+ation achieve its goals. %t also controls its employees or) activities for

improving their or) performance. %t also controls the quality of its products for preserve its

e(isting goodill in the mar)et. %n a ord Square follos good practices of management in

its corporate orld for remaining in the top position in Bangladesh.

!O)!L%#IO)

Square roup is established from conventional method to modern method by his

management policy and better effort of employees. Fay by day it ill be e(panded by getting

more profit. 4or better management policy ithin short time Square acquired a leading

position in Bangladesh. This organi+ation is much more effective than others to identify the

ea)ness it carries as ell as to solve them very effectively. %t follos a strong management

system so that it can ma(imi+e its target. 4or availability of labor quality of product this

organi+ation as ell as Bangladesh ill dominate over competitor in global mar)et.


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'eferences

56 en.wikipedia.org/wiki/Square

76 www.thesquaregroup.com

86 www.squarepharma.com.d

4. te!ti"e.squaregroup.com
http://www.thesquaregroup.com/http://www.squarepharma.com.bd/http://www.thesquaregroup.com/http://www.squarepharma.com.bd/

Documents

Square Company