Bangladesh University of Professionals (BUP)

Faculty of Business Studies (FBS)

A TERM PAPER
ON
Planning and Organizing of Square Pharmaceuticals
Course Name: Principles of Management and Organization Behavior
Course Code: MGT 7301
Submitted to

Major General S M Shafiuddin Ahmed, ndu,psc,

Senior Directing Staff, Army

Bangladesh National Defense College
Professor (Adjunct)
Bangladesh University of Professionals (BUP)
Submitted by

Name Roll No
Md. Nahid 19020067
Md. Nayeem 19020069
T S M Nasim Imran 19020051
Md. Hafizul Alam 19020031
Shaheen Md Rafsun 19020061

Section: A
Session: Jan 2019
Program: MBA (Professional)

[Type here]
 LETTER OF TRANSMITTAL

March 29, 2019

Major General S M Shafiuddin Ahmed, ndu, psc
Professor( Adjunct)
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Submissionof term paper

Sir,
With due respect, We would like to inform you that, it’s an honor and great privilege for us to be
able to submit this term paper titled “Planning and Organizing of Square
PharmaceuticalsLtd.” which was assigned to us as a prerequisite for the completion of our
“Principles of Management and Organization Behavior” course. We are truly grateful to you for
giving us this topic for our term paper and it is a pleasure for us to present this term paper under
your kind supervision. This term paper is a result of our best efforts. However, should your kind
honor come across any unintentional flaws then it would be our pleasure to answer for any
clarification as your kind honor deem necessary. In the circumstances stated above, we would
truly appreciate if your honor is kind enough to accept this term paper and oblige thereby. For
this act of kindness, we shall remain ever grateful to you.

Sincerely Yours,
Md.Nahid
Md. Nayeem
Md. Tipu Sultan
Syeda Asma Ull Hussna
Md. Abdullah Al Mamun

Section: A, Session: Jan 19 MBA (Professional), BUP

i
 DECLARATION

We hereby declare that the work has been done by ourselves and no portion of the work
contained in this term paper has been submitted in support of any application for any other
degree or qualification of this or any other university or institute of learning.

_________________________
Md.Nahid

_________________________
Md.Nayeem

_________________________
Md.Tipu Sultan

_________________________
Syeda AsmaUll Hussna

_________________________
Md. Abdullah Al Mamun

ii
 ACKNOWLEDGMENT

At first, we are very grateful to Almighty Allah for giving us the strength and
knowledge to complete this term paper.

For the completion of this report searching for websites, articles and related
documents were required. However, it was Honorable Professor (adjunct) Major
General S M Shafiuddin Ahmed, ndu, psc, who played the important role by
giving us an insight about the paper. We express our profound indebtedness and
gratitude to him, for his valuable advice that helped immensely in preparing this
paper. It would have been impossible to complete this term paper without his kind
and valuable guidelines.

Last but not the least we are also thankful to our fellow course mates, who helped
us a lot to prepare this paper.

iii
 ABSTRACT
The process in which our organizations approach to satisfy their motives is based on some key
functionalities. Planning and organizing are the first-two functionalities in management. Though
the importance of planning and organizing is well known at present but this topic has been
studied for decade and continuing. Furthermore, researchers have attempted to find the generic
approach of planning and organizing and its modifications. Many organizations follow many
types of approach in planning and organizing.

In this paper we tried to find out the planning and organizing of Square PharmaceuticalsLtd.
Plans involve the location choice for their business and the supporting through technical
difficulties which helps retaining the business and gather affirmative resolutions from the
customers. Being in the busy port it organizes it resources and man power through categorizing
by the task and expertise. Active human resource team is deployed to navigate the work-force for
better profit. The systematic plan choices and organizing heavy machineries to active work-force
by keeping the work environment healthy and improving made Square
Pharmaceuticalssuccessful and fast growing organization.

iv
1. Introduction..............................................................................................................................1

1.1 Background............................................................................................................................1

1.2 Company profile....................................................................................................................2

1.3 Objective of the study............................................................................................................3

1.3.1 Specific objective............................................................................................................3

1.3.2 General objectives..........................................................................................................3

2. Analysis of the Mission and vision..........................................................................................3

2.1 Mission Statement.................................................................................................................3

2.2 Critical Analysis of mission statement..................................................................................3

2.3 Vision Statement....................................................................................................................3

2.4 Critical analysis of vision statement......................................................................................4

2.5 Corporate Objective...............................................................................................................4

3. Methodology............................................................................................................................4

4. Management Functions............................................................................................................4

4.1 Planning.................................................................................................................................5

4.2 Organizing.............................................................................................................................5

4.3 Commanding..........................................................................................................................6

4.4 Coordinating..........................................................................................................................6

4.5 Controlling.............................................................................................................................6

4.6 Staffing..................................................................................................................................7

4.7 Motivating..............................................................................................................................7

5. Planning process of square pharmaceuticals limited............................................................7

5.1 Planning Process....................................................................................................................8

Contingency Planning................................................................................................................14

5.2 Organizing process..............................................................................................................14

v
 Determining the Work Activities Necessary to Accomplish Objectives...................................15

Classifying and Grouping Activities.........................................................................................16

Assigning Work and Delegating Appropriate Authority:..........................................................17

Designing a Hierarchy of Relationships:...................................................................................17

6. Conclusion.............................................................................................................................19

References......................................................................................................................................20

vi
 1. Introduction
1.1 Background
Planning and Organizing are from the basic functions of management. Planning is foreseeing
future circumstances and requirements whereas, organizing is focuses on allocating and
arranging resources (human and non-human). Involves determine the tasks to be achieved,
organizing is considered utilize resource to order of place in the logically and suitable
arrangement.

It is rightly said “Well plan is half done”. Therefore, planning takes into consideration available
& prospective human and physical resources of the organization so as to get effective co-
ordination, contribution & perfect adjustment. It is the basic management function which
includes formulation of one or more detailed plans to achieve optimum balance of needs or
demands with the available resources. According to Koontz &O’Donell, “Planning is deciding in
advance what to do, how to do and who is to do it. Planning bridges the gap between where we
are to, where we want to go. It makes possible things to occur which would not otherwise occur”.

Organizing is the function of management which follows planning. Organization is about

synchronization and combination of human, physical and financial resources. All the three
resources are important to get results. Therefore, organizational function helps in achievement of
results which in fact is important for the functioning of a concern. According to Chester Barnard,
“Organizing is a function by which the concern is able to define the role positions, the jobs
related and the co-ordination between authority and responsibility.” Hence, a manager always
has to organize in order to get results.

According to planning a manager organize resources which best fit the organization interest also
this step also include concern on situations and other environmental factors. Goal
accomplishment is not possible if organization lack in any one managerial function mostly
planning and organizing. In general situation managers first set a goal to achieve, analyzing risk
factors manager plans to minimize or divert the risks and organize the sub-ordinates and
resources in guided manner which is calculative and predefined goad oriented. Organizations
which spend quality time on planning and organizing functionality also can dominate other

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Planning and Organizing of Square Pharmaceuticals
functionality like leading and controlling thus be winner. Planning and organizing for a business
occurs on three different levels. On the operational level plans are made regarding the day-to-day
operations of the business. When starting up a business or starting a new business initiative (such
as a new product), create a general business plan to outline the required steps. Upper
management is responsible for establishing a strategic plan, which outlines a long-term strategy
and direction for the company. In all cases, the responsible party must develop and implement
the plan in an organized manner to ensure its success.

1.2 Company profile

SQUARE Pharma, the largest pharmaceuticals company in the Country, is a trusted name in the
pharmaceuticals sector of Bangladesh. Like most indigenous concern it made its debut in a
humble way in 1958 as a Partnership Firm under the leadership of Late Samson H Chowdhury.
The following year, 12 working people, occupied floor space of 3,000 sq. ft., first production
EASTON’S syrup and made a turnover of Tk. 55,000.

In 1964, Partnership Firm converted into a Private Limited Company, then in 1991, converted
into a Public Limited Company and become Publicly Listed Company in 1995.

SQUARE today symbolizes a name - a state of mind. From the inception in 1958, it has today
burgeon into one of the top line conglomerates in Bangladesh. SQUARE Pharma, the flagship
company, is holding the strong leadership position (#1) in the pharmaceutical industry of
Bangladesh since 1985.

It has extended its range of services towards the highway of global market. It pioneered exports
of medicines from Bangladesh in 1987 and has been exporting antibiotics and other
pharmaceutical products. This extension in business and services has manifested the credibility
of Square Pharma. SQUARE pharma is to emphasize on the quality of product, process and
services leading to grow of the company imbibed with good governance practices.

Number of employees currently working is given below:

Employees 2017-2018 2016-2017

Executives 3833 3486
Non Executives 2108 1983
Workers 2191 1921

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Planning and Organizing of Square Pharmaceuticals
 Total- 8132 7390

1.3 Objective of the study

1.3.1 Specific objective
To understand the planning and organizing process of square pharmaceuticals limited.

1.3.2 General objectives

 To gain knowledge on planning and organizing of an organization.
 To understand how planning and organizing leads organization to success.
 To understand how planning and organizing converge organization and management
goal.

2. Analysis of the Mission and vision

We include Mission and vision and corporate objective of Square pharmaceuticals limited
which has been collected from company’s annual report.

2.1 Mission Statement

“Our Mission is to produce and provide quality & innovative healthcare relief for people,
maintain stringently ethical standard in business operation also ensuring benefit to the
shareholders, stakeholders and the society at large”.

2.2 Critical Analysis of mission statement

Square pharmaceutical shows their concentration on quality and innovation to ensure better life
for people. They are highly focused on ethical standards of business practices. Moreover, all
stakeholders get equal importance in their mission statement. But they do not state what they are
in the pharmaceuticals industry. That means their mission statement does not highlight the
question “what we are?”

2.3 Vision Statement

“We view business as a means to the material and social wellbeing of the investors, employees
and the society at large, leading to accretion of wealth through financial and moral gains as a part
of the process of the human civilization.”

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Planning and Organizing of Square Pharmaceuticals
2.4 Critical analysis of vision statement
It is well known that vison statement should answer the question “what we want to become?”.
They highlight that their vision is to become leading to accretion of wealth through financial and
moral gains as a part of the process of the human civilization. That means they clarify their focus
on morality, financial sustainability and human development.

2.5 Corporate Objective

“Our objectives are to conduct transparent business operation based on market mechanism within
the legal & social framework with aims to attain the mission reflected by our vision.”

3. Methodology
In every study data or information is the central core. But distorted information can ruin the
efficiency, effectivity and objective of the study. So it is important to ensure that quality data or
information is used in completing the study. This study is a qualitative study that’s why our
focus was in getting quality information rather getting numerical data.

To collect necessary information for this study we consider both primary and secondary sources
of the information. Most of the necessary information is collected from secondary source like
annual report and websites of the square pharmaceuticals limited. We perform oral conversation
to number of employees in order to collect primary information for this study.

4. Management Functions
At the beginning of the last century (1916) the French engineer Henri Fayol created the first
principles of management theory. Henri Fayol is classified as the founding father of for example
the line and staff organization. Based on his experience as a successful director or a mining
company, he developed several theories that are still relevant today. At the time, managers had
no formal training. However, the increasing complexity of organizations created a need
forprofessional management.

Five Functions of Management

Henri Fayol gained world-wide fame for his 14 general principles of management. He
distinguished six general activities for industrial enterprises: technical, commercial, financial,

pg. 4
Planning and Organizing of Square Pharmaceuticals
security, accounting and managerial. He defined five functions of management for the
management component and these are still seen as relevant to organizations today. These five
functions focus on the relationship between personnel and its management and they provide
points of reference so that problems can be solved in a creative manner.

Planning

Controlling Organizing

Coordinating Commanding

Figure: Five Functions of Management

4.1 Planning
Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the
hardest of the five functions of management. This requires an active participation of the entire
organization. With respect to time and implementation, planning must be linked to and
coordinated on different levels. Planning must take the organization’s available resources and
flexibility of personnel into consideration as this will guarantee continuity.

4.2 Organizing
An organization can only function well if it is well-organized. This means that there must be
sufficient capital, staff and raw materials so that the organization can run smoothly and that it
can build a good working structure. The organizational structure with a good division of
pg. 5
Planning and Organizing of Square Pharmaceuticals
functions and tasks is of crucial importance. When the number of functions increases, the
organization will expand both horizontally and vertically. This requires a different type of
leadership. Organizing is an important function of the five functions of management.

4.3 Commanding
When given orders and clear working instructions, employees will know exactly what is required
of them. Return from all employees will be optimized if they are given concrete instructions with
respect to the activities that must be carried out by them. Successful managers have integrity,
communicate clearly and base their decisions on regular audits. They are capable of motivating a
team and encouraging employees to take initiative.

4.4 Coordinating
When all activities are harmonized, the organization will function better. Positive influencing of
employees behavior is important in this. Coordination therefore aims at stimulating motivation
and discipline within the group dynamics. This requires clear communication and good
leadership. Only through positive employee behavior management can the intended objectives be
achieved.

4.5 Controlling
By verifying whether everything is going according to plan, the organization knows exactly
whether the activities are carried out in conformity with the plan.

Control takes place in a four-step process:

1. Establish performance standards based on organizational objectives

2. Measure and report on actual performance

3. Compare results with performance and standards

4. Take corrective or preventive measures as needed

Other scholars sometimes classify management functions in 7 activities by discussing

following 2 functions alongside above 5 functions:

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Planning and Organizing of Square Pharmaceuticals
4.6 Staffing
After the organizing, the function of management is staffing. Employee are the most important
resource of any organization. The right staff is very important for a company because he can
change and ensure the organization future success. Staffing is like a function or term that refers
recruitment, selection, acquiring, training, appraising employees.

4.7 Motivating
Planning has been established and organization has begun now the motivation is necessary to
carry out the whole work. In management motivation refers ways in which managers promote
the productivity in their employees. Motivating is a manager's job to motivate employees to do
their jobs well and fell to perform well with happiness.

5. Planning process of square pharmaceuticals limited

Defining Strategic Planning

Strategic planning is concerned with defining company goals and determining the resources
needed to achieve them. Strategic planning is an organization’s process of defining its strategy
and making decisions on how to allocate resources to pursue that strategy. To determine the
direction of the organization, it is necessary to understand its current position and the possible
avenues through which it can pursue a particular course of action. In strategic planning square
pharmaceuticals generally deal with at least one of three key questions:

 What do we do?
 For whom do we do it?
 How do we excel?

In square pharmaceuticals, this is viewed as a process for determining where the organization is
going over the next year or, more typically, three to five years, although some extend their vision
to 20 years. The last question—how do we excel?—is critical to achieving competitive
advantage, they believe it should be answered clearly and practically in the planning process
prior to extensive investment in resources.

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Planning and Organizing of Square Pharmaceuticals
Planning is concerned with defining goals for a company’s future direction and determining the
resources required to achieve those goals. To meet the goals, managers will develop marketing
and operational plans inclusive of key organizational values (vision, mission, culture, etc.).

Common components of square pharmaceuticals business plan include external and internal
analyses, marketing and branding, investments, debt, resource allocation, suppliers, production
processes, competition, and research and development. While different business models include
different components in their planning, based on unique organizational or industry needs, the
central theme of the organization is that all aspects of the strategy should be researched and
discussed prior to incurring the costs of operations.

5.1 Planning Process

There are many approaches to strategic planning, but typically one of the following approaches
is used in square pharmaceuticals based on the situations.

Situation-Target-Proposal

This method involves the following steps:

 Situation: Evaluate the current situation and how it came about.

 Target: Define goals and objectives (sometimes called ideal state).
 Proposal: Map a possible route to the goals and objectives.

Draw-See-Think-Plan

This method involves addressing the following questions:

 Draw: What is the ideal state or the desired end state?

 See: What is today’s situation? What is the gap between today’s situation and the ideal
state, and why?
 Think: What specific actions must be taken to close the gap between today’s situation and
the ideal state?
 Plan: What resources are required to execute these specific actions?

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Planning and Organizing of Square Pharmaceuticals
Benefits of Strategic Planning to square pharmaceuticals: Focus, Action, Control,
Coordination, and Time Management

Planning enables companies to achieve efficiency and accuracy by coordinating efforts and
managing time effectively.

The planning process of square pharmaceuticals is concerned with defining the organization’s
goals and determining the resources necessary to achieve those goals. Achieving a vision
requires coordinated efforts that adhere to a broader organizational plan. This is enabled through
consistent strategies that are supported by staff at all levels. To meet business goals, managers
develop business plans not only to reach targets but also to strengthen and change public
perception of the company’s brand.

Since they have achieved defined goals through the planning process, managers and employees
can focus and control their efforts and their resources, follow determined plans of action,
coordinate activities between divisions, and use time management to meet specific goals.
Planning helps to achieve these goals or targets by efficiently and effectively using available
time and resources. In short, planning, if executed properly, should lead square pharmaceuticals
to the following benefits:

Focus

There are a wide variety of activities square pharmaceuticalsgenerally pursue. While there is
value in the pursuit of many activities, understanding which ones the organization should focus
on to leverage organizational competencies and align with market research requires careful
planning and delegation. This is how square pharmaceutical’s planning achieves focus.

Coordinated Action

If one department of square pharmaceutical is reliant on inputs from another department

Independent), first department cannot utilize second department’s work without coordination. If
independent department has too much work and dependent department too little, there is poor
interdepartmental coordination. This is alleviated through detail-oriented planning processes.

Control

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Planning and Organizing of Square Pharmaceuticals
The control process of square pharmaceuticals limited is based on benchmarks, which is to say
that controlling requires a standard of comparison when viewing the actual operational results.
Control relies on the planning process to set viable objectives, which can then be worked towards
through controlling operations.

Time Management

Time management underlines the importance of maximizing the use of time to minimize the cost
of production. If a full-time employee can accomplish their work within 32 hours, the planning
process can find meaningful use for their remaining time. Costs can be lowered and productivity
increased by ensuring that each element in the operational process functions according to ideal
time constraints.

The Process Itself

Perhaps the most important benefit of developing business and marketing plans is the nature of
the planning process itself. This typically offers a unique opportunity to square pharmaceuticals,
a forum, for information-rich and productively focused discussions between the various
managers involved. The plan and the discussions that arise from it provide an agreed context for
subsequent management activities, even those not described in the plan itself.

Overview of Inputs to Strategic Planning

Strategic plans can take the form of business or marketing plans, and consultants and industry
experts of square pharmaceuticals are used in their development.

Strategy Hierarchy

In square pharmaceuticals, there are several levels of management. Strategic management is the
highest of these levels in the sense that it is the broadest—it applies to all parts of the firm and
incorporates the longest time horizon. It gives direction to corporate values, corporate culture,
corporate goals, and corporate missions.

Business Plans

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Planning and Organizing of Square Pharmaceuticals
A business plan is a formal statement of a set of business goals, the reasons they are attainable,
and the plan for reaching them. It may also contain background information about the
organization or team attempting to reach those goals.

For example, a business plan for of square pharmaceuticals might discuss the fit between the
business plan and the organization’s mission.

Preparing a business plan draws on a wide range of knowledge from many different business
disciplines of the organization: finance, human resource management, intellectual-property
management, supply-chain management, operations management, and marketing. It can be
helpful to view the business plan as a collection of sub-plans, one for each of the main business
disciplines.

Marketing Plans

A marketing plan is a written document that details the actions necessary to achieve one or more
marketing objectives. It can be for a product, a service, a brand, or a product line. Square
pharmaceuticals marketing plans generally span between one and five years.

Square pharmaceuticals believe a marketing plan can be part of an overall business plan. Solid
strategy is the foundation of a well-written marketing plan, and one way to achieve this is by
using a method known as the seven Ps (product, place, price, promotion, physical environment,
people, and process). Square pharmaceuticals may use the seven Ps to develop a plan for each of
its products. Moreover, it should be concentrated on each market. It can base its plans on the
detailed needs of its customers and on the strategies chosen to satisfy those needs.

Tools for Planning used by square pharmaceuticals

Often discussed in tools for planning are models that measure the internal and external
environments (e.g. Porter’s Five Forces, SWOT, Value Chain, etc.). These models create
forward-looking projections based on past and present data; therefore, they are useful only once
enough data have been collected. Because of this, tools for planning largely focus on generating
enough data to construct valid recommendations. These tools can include:

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Planning and Organizing of Square Pharmaceuticals
  Industry experts: Whether internal employees or external consultants, a few individuals
with extensive experience in a given industry are valuable resources in the planning
process. These industry experts can move beyond the PESTEL and Porter’s Five Forces
frameworks, making intuitive leaps as to the trajectory of the industry.
 Consultants: Consultants are commonly brought in during strategy formulation and for a
variety of other reasons. Most important of these would be providing an objective lens for
internal affairs. It is difficult to see the whole house from inside the house, and upper
management can utilize an external opinion to ensure they are seeing operations clearly
and objectively.
 Inclusionof stakeholders: Upper management generally want as much information as
possible from everyone involved. Some examples include consumer surveys on
satisfaction, supplier projections for costs over a given time frame, consumer inputs on
needs still unfilled, and shareholder views. The inclusion of stakeholders offers a variety
of tools, each of which may or may not be a useful input depending on the context of the
plan.

Responding to Uncertainty in square pharmaceutical’s Strategic Planning

Uncertainty exists when there is more than one possible outcome; it is best managed by square
pharmaceuticals using scenario-planning tools.

UncertaintyManagement specialists define uncertainty as a state of having limited knowledge

such that it is impossible to exactly describe an existing state or future outcomes or to determine
which of several possible outcomes will happen. It is still possible, however, to measure
uncertainty—by assigning a probability to each possible state or outcome to estimate its
likelihood.

In the past, strategic plans have often considered only the “official future,” which was usually a
straight-line graph of current trends carried into the future. Often the trend lines were generated
by the accounting department and lacked discussions of demographics or qualitative differences
in social conditions. These simplistic guesses can be good in some ways, but they fail to consider
qualitative social changes that can affect an organization.

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Planning and Organizing of Square Pharmaceuticals
Instead of just following trend lines, scenarios focus on the collective impact of many factors.
Scenario planning helps to understand how the various strands of a complex tapestry move if one
or more threads are pulled. A list of possible causes, like a fault-tree analysis, tends to downplay
the impact of isolated factors. When factors are explored together, certain combinations magnify
the impact or likelihood of other factors. For instance, an increased trade deficit may trigger an
economic recession, which in turn creates unemployment and reduces domestic production.

Responding to Uncertainty

Square pharmaceuticals try to cope with issues that are too complex to be fully understood, yet
significant decisions need to be made that are based on a limited understanding or limited
information. Following are the ways practiced by square pharmaceuticals in dealing with these.

Be Iterative

Square pharmaceuticals try to be iterative in developing organizational strategy. That is, it

involves toggling back and forth between questions about objectives, implementation planning,
and resources. For example, an initial plan for a project may have to be adjusted if the budget
changes.

Use Scenario Planning

Scenario planning of square pharmaceuticals starts by separating things believed to be known, at

least to some degree, from those considered uncertain or unknowable. The first component,
knowledge, includes trends, which cast the past forward, recognizing that the world possesses
considerable momentum and continuity. The second component, uncertainties, involves
indeterminable factors such as future interest rates, outcomes of political elections, rates of
innovation, fads in markets, and so on. The art of square pharmaceuticals scenario planning lies
in blending the known and the unknown into a limited number of internally consistent views of
the future that span a very wide range of possibilities.

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Planning and Organizing of Square Pharmaceuticals
Accept Uncertainty

It serves little purpose to pretend to anticipate every possible consequence of a corporate

decision, every possible constraining or enabling factor, and every possible point of view. What
matters for the purposes of strategic management is having a clear view, based on the best
available evidence and on defensible assumptions, of what is possible to accomplish within the
constraints of a given set of circumstances. As the situation changes, some opportunities for
pursuing objectives will disappear and others will arise. Some implementation approaches will
become impossible, while others, previously impossible or unimagined, will become viable.
Strategic management adds little value, and may do harm, if organizational strategies are
designed to be used as detailed and infallible blueprints for managers.

Contingency Planning
Contingency Planning is the development of alternative plans to be placed in effect if
certain unexpected events occur.

As Square pharma is a large size firm they may have to face a lot of obstacle. There for
they concerned about the Contingency Planning, because unexpected events can occur
in any time.

There are four reasons for or advantages to contingency planning:

• It helps the firm get into a better position to cope with unexpected
developments

• Indecision, uncertainty and delays are reduced when something unusual

happens

• the firm's responses are likely to be better thought out and more rational;
and

• Managers are forced to think in terms of possible outcomes, rather than

just the most likely outcome.

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Planning and Organizing of Square Pharmaceuticals
5.2 Organizing process
Five main steps involve in Square Pharmaceuticals organizing process:

Consideration of Plans and Goals

Organizational plans and their goals affect organizing and its outcome of square
pharmaceuticals. The purposes and activities that organization have at present or are likely to
have in future are dictated by plans. Certain basic purposes and some general activities are likely
to remain fairly constant in the long run. For example, from its very inception square
pharmaceuticals continue to seek profit and in this endeavor it will continue to employ human
and non-human (material) resources.

But with the passage of time new plans are formulated. This helps tobring change in the ways in
which organization’s basic activities are carried out. Certain departments or divisions may be
closed some old ones may be entrusted with additional responsibility and some new departments
may be created or set up.

Moreover there may emerge new relationships among groups of decision makers. Organizing is
supposed to create the new structure and relationships and modify the old ones.

Determining the Work Activities Necessary to Accomplish Objectives

It is necessary to determine those work activities which are necessary to accomplish organisation
objectives. Prima facie, it is absolutely essential to prepare a list of tasks to be done. Therefore,
there is the need to classify the tasks into two categories: on-going tasks and once-for-all tasks.
Examples of the former are hiring, training, and record-keeping. Such tasks may also include
assembling, machining, shipping, storing, inspecting, selling, advertising etc.

An example of the latter is setting up a new plant or department or installing a new plant in an
existing plant. In an ongoing business such specific programmes — which are essentially single-
use plans-may require temporary re-organisation within a business or department to handle them.
For example, the Finance Department may temporarily look after the newly set up corporate
planning department.

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Planning and Organizing of Square Pharmaceuticals
Likewise, a pilot project conducted for an ongoing business may identify which activities should
be performed in a work unit or incorporated into the business. Once managers come to know
what tasks must be done, they are ready to classify and group those activities into manageable
work units.

Classifying and Grouping Activities

This stage demands three processes to be performed by managers:

1. Examine each activity identified to determine its general nature (marketing, production,
finance, personnel, etc.).

2. Grouping those activities into these interrelated functional areas.

Establishing the basic department design for the organisation structure.

In practice, the first two processes go hand in hand. True enough, selling, advertising, shipping
and storing can be considered as marketing-related activities, and can be grouped under the
broad heading ‘marketing’ without any loss of generality. Likewise, assembling, cutting,
machining, welding, painting and inspecting are treated as manufacturing process and can thus
be grouped as production. In a similar way, activities like hiring, training, developing, recruiting
and compensating can be grouped under personnel-related activities.

Classifying and grouping similar activities using the guidelines of homogeneity are based on the
concept of division of labour and specialization. (It may be recalled that, essentially, division of
labour is breaking down the work into its basic components or activities and assigning them to
individuals who will then be specialists and perform the jobs more efficiently and effectively.)

For accomplishing works which are similar in nature different tasks, processes or skills required
are to be placed together so as to achieve organisational objectives.

As soon as the tasks are classified and grouped into related work units (production, marketing,
accounting and personnel)the third process, viz., departmentation, is being finalized, i.e., a
decision is being made on the basic organisational format or departmental structure for the

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Planning and Organizing of Square Pharmaceuticals
enterprise. Groups, departments and divisions are being formed on the basis of the objectives of
the organisation.

Management will choose a departmental type of organisational format from functional,

geographic or territorial, customer, product line, or matrix options. (These various alternative
approaches to organising will be discussed separately.

Assigning Work and Delegating Appropriate Authority:

After identifying activities necessary to achieve objectives, classifying and grouping these into
major operational areas, and selecting a departmental structure, management has to assign the
activities to individuals who are simultaneously given the appropriate authority to accomplish the
task.

This step is a crucial one in both the initial and ongoing organising processes. The foundation of
this step lies in the principle of functional definition. The principle basically suggests that in
establishing departments, the nature, purpose, tasks, and performance of the department must
first of all be determined as a basis for authority.

The strategic implication of this principle for business is that the activities determine the type
and quantum of authority necessary.

It is widely believed that the nature, purpose, tasks and expectations dictate the type and
quantum of authority needed by the manager to function effectively. The activities are to be
assigned first. These will form the basis of authority thereafter.

Designing a Hierarchy of Relationships:

This final step necessitates the determination of both vertical and horizontal operating
relationships of the organisation as a whole. In effect this step is ‘putting it all together’.

Vertical Structuring:

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Planning and Organizing of Square Pharmaceuticals
The vertical structuring of the organisation results in a decision making hierarchy specifying the
respective roles of managers at different levels in the organisational hierarchy. It shows who is in
charge of each task, of each speciality area, and of the organisation as a whole.

Different levels of management (such as the lower level, middle level and the top level) are
established in the organisation — from bottom to top. From these levels emerge the chain of
command or hierarchy of decision-making levels, in the company.

Unity of Command:

From the chain of command emerges a new principle, viz., unity of command, originally
advanced by Henri Fayol. According to this principle, each employee in an organisation should
report to and be accountable to only one immediate superior.

The implication of this principle is simple enough: the chain of command should be so clear that
a subordinate will receive order from one superior and be accountable to him (her) only, hi this
case also authority is delegated from the superior to the subordinate.

According to Fayol, unity of command is desirable because it simplifies communication and the
assignment of responsibility. However, in today’s complex organisations, this principle is hardly
followed. Instead most employees receive instructions from several managers, especially when
there is functional authority. This practice, although found necessary in large organisations, leads
to certain undesirable consequences.

Horizontal Structure:

Two important effects of horizontal structuring are enumerated below:

Firstly, it defines the working relationships among operating departments.

Secondly, it makes the final decision on the span of control (the number of subordinates under
the supervision and direction) of each manager.

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Planning and Organizing of Square Pharmaceuticals
 6. Conclusion

Square Pharmaceuticals Ltd. was established as a partnership firm in 1958. In 1991 it was
converted into a public limited company. Square Pharmaceuticals Limited is the largest
pharmaceutical company in Bangladesh and it has been continuously in the 1 st position among all
national and multinational companies since 1985. Since 1987 Square has taken aggressive
measures to explore new countries as potential export market. It pioneered exports of medicines
from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products.
More & more countries are getting confidence in Square’s product every year. But it’s true that
in the competitive global environment Square is still struggling to ensure firm footings in global
market. Square is the flagship Parma Company in Bangladesh, wants to be a global player.

SQUARE Pharmaceuticals Limited has extended its range of services towards the highway of
global market.  This extension in business and services has manifested the credibility of Square
Pharmaceuticals Limited

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Planning and Organizing of Square Pharmaceuticals
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