INTRODUCTION:

Torrington and Hall (1987) define personnel management as being:

“a series of activities which: first enable working people and their employing organisations to agree
about the objectives and nature of their working relationship and, secondly, ensures that the
agreement is fulfilled"

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in the
business and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage"

Human resource policies are systems of codified decisions, established by an organization,

to support administrative personnel functions, performance management, employee relations
and resource planning.

Each company has a different set of circumstances, and so develops an individual set of
human resource policies.

Developing the HR Policies

HR policies provide an organization with a mechanism to manage risk by staying up to date

with current trends in employment standards and legislation. The policies must be framed in a
manner that the companies vision & the human resource helping the company to achieve it or
work towards it are at all levels benefited and at the same time not deviated from their main
objective.

Purposes

HR policies allow an organization to be clear with employees on:

 The nature of the organization

 What they should expect from the organization
 What the organization expects of them
 How policies and procedures work
 What is acceptable and unacceptable behavior
 The consequences of unacceptable behavior

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The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment contracts
and collective bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behavior and document displinary procedures, is now the standard
approach to meeting these obligations.

HR policies can also be very effective at supporting and building the desired organizational
culture. For example recruitment and retention policies might outline the way the
organization values a flexible workforce, compensation policies might support this by
offering a 48/52 pay option where employees can take an extra four weeks holidays per year
and receive less pay across the year.

Need and Importance :

In the past decade, the news headlines have definitely made it clear that the need for
management should be one of the top agendas in modern day society. The rages alone such as
Road Rage and the trends of violent acts in life today prove a lot of it well.

Living today is a lot tougher than it was even in the days of the great depression. It's been
coming out in many ways such as all time occurrences of stomach and intestinal ulcers.
Others find sleep disorders and wind up zombies during their busy days. Insomnia is growing
in leaps and bounds.

Today stress management is important in everyone's lives. It's necessary for long happy lives
with less trouble that will come about. There are many ways to deal with stress ranging from
the dealing with the causes of stress to simply burning off its effects.

A good place to start in planning your own stress management would be finding the roots of
your stress. It can come from physical exertion and mental strain as well. We all have these
things in our everyday life. Its effects on our overall being can vary dramatically from others
experiences. For that reason your needs in stress management may indeed differ from theirs
as well.

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Need for basic purposes of HRM POLICIES:

1) To increase productivity.

2) To improve quality.

3) To help a company fulfill its future personnel needs.

4) To improve organizational climate.

5) To improve health & safety.

6) Obsolescence prevention.

7) Personal growth.

SCOPE OF THE STUDY

                         One of the main functions of personnel management in industrial

organization is to impart programmers to its employees.

                           HRM plays a large part in determining the effectiveness and efficiency of
the establishment. Increase in productivity is possible only when there is an increase in
quantity of output. It applies not only to new employees but also to experienced people. It
can help employees and employers to increase their level of performance and to develop
skills, knowledge on their present job assignments. 

OBJECTIVES OF HRM POLICIES:

Human Resource Management: Objectives

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• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human resources.

• To ensure reconciliation of individual goals with those of the organization.

• To achieve and maintain high morale among employees.

• To increase to the fullest the employee's job satisfaction and self-actualization.

• To develop and maintain a quality of work life.

• To develop overall personality of each employee in its multidimensional aspect.

• To enhance employee's capabilities to perform the present job.

RESEARCH METHODOLOGY

 Research is scientific and systematic search pertinent information in a

specific topic. The meaning of research is “A Careful Investigation (or) Inquiry.

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   HRM POLICIES is the corner stone of sound management, and it makes employees
and employers more effective and productive. It is actively and intimately connected with
all personnel and managerial activities.

  There is a present need for HRM POLICIES measures. So that new and changed
techniques may be taken advantage and improvements effected in new methods, which are
woefully inefficient. Training is practical and of vital necessity because, apart from other
advantages mentioned, and increase their “Market Value”, earning power job securi

Heritage Ltd is spending for HRM POLICIES activities. It is introducing global concepts
like

 Team Building
 Time Management

      It uses all the technology available and modern equipment in HRM POLICIES
programmers. In a contemporary study, it was revealed that it is more inflammable so the
workers and superiors must concentrate on the work what they are doing. At any time if
they don’t concentrate on their work it is very dangerous to the whole industry. 


 On an average, every employee at Nutrine undergoes atleast 2 training programmes
for a financial year and the employer in HRD requires the executive development
programme at the time of intensive competition.
 So the study is aimed to know the adequacy of training given to employees and
employers.

 To know whether employees and employers are having enthusiasm in knowing

about training and development programmes, training plans, implementation and
participation.
 To suggest appropriate techniques and modification in training to achieve corporate
goals.

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 Development to employers arises due to providing technical skills and conceptual
skills to non-technical managers and managerial skills and conceptual skills to technical
managers.

RESEARCH INSTRUMENT:

      In order to collect the data from the people in organization the research instrument used
is QUESTIONNAIRE.

      A structured questionnaire has been designed, consisting of  Closed Ended questions.
All the questions are objective. Questionnaire does not contain any column for personal
details of the people in Projects.,

      Questionnaire is designed for employees and employers containing 15 questions

respectively. The questions are framed consisting of different factors. Both positive and
negative questions are included to reduce the bias.

DATA SOURCES

Data can be broadly classified as;

1) Primary data.

2) Secondary data.

Primary data

Primary data is obtained through observation, questionnaires, and personal

interviews.

Secondary Data

Secondary data is obtained through various,

Management books
Journals
Newspapers and Internet web: www.DR REDDYS.com

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SAMPLING

Sampling is always necessary to collect data from the whole organization. A small
representative sample may serve the purpose. Sample means “A Group Taken From a Large
Lot“. This small group should be miniature cross-section and really “Representative” in
character. This selection process is called Sampling .SAMPLE SIZE

      Sample is device for learning about masses by observing a few individuals,

that selected sample is “100”. 

SAMPLE PLANNING

      Sample planning consists four major parts they are

 Sample Unit : Employees

 Sample Size: 100
 Population : 598
 Sample frame: Employees of Dr reddys, Hyderabad
 Sample procedure: Convenience Sampling

SAMPLING METHOD

                     The various methods of sampling can be grouped under 2 broad heads:

Probability Sampling (Random)

      The method adopted here is Random Sampling Method. A Random sample is one
where each item in the universe has an equal chance of known opportunity of being
selected.

Non Probability Sampling (Non Random)

      The method do not provide every item in the universe with a known chance of being
included in the sample. The selection process is at least particularly subjective.

LIMITATIONS

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1. Firstly the respondents were not available readily and the data were collected as per
the convenience of the respondents.

2. Secondly the sample of respondents was very less given by the organization hence
appropriate sample technique was not applied for selecting the respondents.

3. Thirdly, time is also one of constraints. Duration of 45 days is not sufficient to cover
all the aspects of the study.

For the above limitation the study conducted may not give the true representation of
the entire organization.

India has witnessed a revolution in the field of Human Resource; it has gone from being just
a support function to being a strategic partner in the growth of businesses. It has transformed
itself being merely Personnel Management – maintain records and ensure statutory
compliances, while doing the bare minimum to keep employee satisfaction on an even keel to
being an integrated part of the corporate machinery.

The HR function of 21st century India has made a transition from being ‘behind-the scenes’
support appendage to becoming the critical differentiator in business. Rapid globalization has

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made companies realize people are the key to growth, the only strategic resource that any
enterprise truly needs. This has led to companies routinely using their innovative HR
practices as their USP (Unique Selling Proposition) to keep up with the times in the wake of a
rapidly changing labor landscape. Companies now recognize that a ‘Highly engaged
employee’ the key to success, across business sectors.

An analysis of the main HR problems in India could be done based on the certain challenges
that mould the contours of the various sub-functions of HR. The ‘attract, motivate and retain’
mantra that the HR function seeks to deliver for the organization are based on these HR sub-
functions.

Employee Sourcing: It is the basis on which the Human resource survives. A large part of
the mind space of HR head honchos is committed head hunting. With the opening up of an
economy which is not only expanding at a frenetic pace, but also maturing in terms of width
and depth of options available to professionals, the war for talent has reached a crescendo.
Talent acquisition is now akin to a battle where recruitment professionals are now virtual
sales persons selling an alluring employee experience to prospective candidates. In sectors
like IT and BPOs, as well as financial services, high attrition levels have become mandatory.

Quality of manpower is another issue needs paying attention to, in India. While millions of
graduates and post-graduates pass out of Indian universities each year, the actual number of
employable talent is severely limited. Employers have to adopt innovative modes of
recruitment to ensure that it can separate the wheat from the chaff.

Employee Motivation: In a market which job-hopping has become the name of the game,
keeping the workforce motivated is one of the key challenges of HR. Motivation no longer
comes from just a lucrative pay package. Nowadays companies have to walk that extra mile
to make the employee feel special to ensure that he doesn’t walk out and into the arms of
competition. Talent segmentation and segregation with performance appraisal and rewards is
essential to a good team of workers. In essence, as industries evolve, employers have to
ensure that apart from the basics of ‘roti, kapda and makaan’, employees also expect job
satisfaction, learning and development facilities.

Employee Engagement and Talent Retention: Winning the hearts and minds of talent is of
prime importance in the current context. Employees are no longer committed to their

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companies. Their dedication is towards their own professional growth and careers. Employee
engagement means that HR has its eyes and ears close to the ground realities that an
employee faces in the job. Issues like work-life balance, fun at work are considered part of
the employee experience. And the day and age of cut-throat competition and lack of talent –
it’s HR prime function to ensure that it is clued in to the needs of employees. Employee
Satisfaction Surveys cannot just remain an exercise and results cannot simply be ignored.
Specific ATRs (Action Taken Reports) have to be presented and acted upon as proof of
developmental intentions of HR. Addressing grievances is another area that has to be robust
so that issues do no escalate. Nip the problem in the bud and ensure productive workplace.

“Attraction, motivation and retention” define the essence of HR deliverables. As the economy
booms and industries mature – age old personnel management fundamentals do not remain
applicable. Creativity and innovation by HR function can make a big difference in how an
employee can actually be attracted, motivated and retained.

PHILOSOPHY BEHIND THE LOGO

The philosophy of the Birla Management centre is beautifully captured in its symbol.  The
logo has been designed to reflect the concept of group dynamics and group synergy six

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symbolic persons, one in dark blue and five in light blue,denote one group with various
constituents of the group,  All fusing their energies and knowledge to form a strong nucleus. 
The skills of the units merge together and radiate outwards more forcefully.

The arrows pointing inward denote pooling of resources and knowledge.The arrows
projecting outwards reflect the dynamic expansion and growth the various units of the group
in various industries, globally.
                  
Furthermore, the arrows also symbolise the six specific steps aimed to our motto. Excellence
and perfection in all spheres of management by continous

THE SIX SPECIFIC STEPS TO ACHIEVE MANAGEMENT GOALS

 Participative management by consensus & consultation through (PMC)

I           Management committees
II          Shop floor committees
III         Quality circles.

 Knowledge integration programme (KIP).

 Skills development programme (SDP).
 Systems perfection  (SP.)
 Delegation &  Decentralisation (DD).
 Human resources development (HRD).
The soft and subdued colors have been specially chosen to reflect  the low key profile
adopted by the group.               

HUMAN RESOURCES MANAGEMENT POLICY & MANUAL PRINCIPLES

The basic human resources management policy is to conduct its relation with its employees in
such a way that the company will have at all times and  adequate force of competent and

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satisfied employees to conduct all its operations effectively and harmoniously in order to
achieve costomer’s satisfaction at the end.

The human resources management policy is prescribed on the basic of policies formulated by
its top management.  Such policies are tools of management to understand the consequence
of activities and also help all employees understanding.

PURPOSES :

1. The policy is a general plan of action that serve as a guide line         

2. The policies make up the framework of management for following up and decisions.
3. When policies are statement of what management wants to do in running the
organization, management rightly expects strict adherence to them.
4. For the way or guideline for implementing the personnel Management activities for
instances employee recruiting, hiring, separation, fringe benefits, training,
development, evaluation, demotion, transfer, wages and salaries, grievances,
discipline, medical care, retirement, hospitalization, recreation, employee’s relations
and other.
5. The operating management and supervisor at all levels should know what top
management want, and it has to be written clearly in order to avoid misunderstanding.
6. When the policy and procedures needs to be clearified, the human resources
department will have to administer, implement and interpret policies and take action
effectively.
7. The policy and procedures is not only to be prescribed by top management but also by
the law, culture and employment condition agreement with Labour Union as well.

THE PRINCIPLES OF HUMAN RESOURCES MANAGEMENT POLICIES.

1. EMPLOYMENT
The company will try all possible efforts to employ the most qualified and competent
employees and retain them as long as possible.  Selection and screening will be made
on merit basis and unqualified and incompetent applicants will be eliminated.

2. COMPENSATION
The company shall pay fair and equitable compensation in accordance with the
principle of the employee’s duties and responsibilities, and satisfactory performance,

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 by maintaining its equivalent rate of compensation in comparison to the same or
similar type of industry following the Laws, Local practices and financial stability of
the company.

3. PROMOTION /  TRANSFER 

The company to promote the employee from within, the qualified and deserving
employees shall be promoted to higher positions whenever vacancies occur or to be
transferred to jobs where their talents could be best utilized for higher responsibilities
and adequate compensation.

An employee of the company either thru initial appointment or promotion will have to
undergo a trial period of 120 days.

A Promotion Means :    A movement of an employee to higher level involving more

difficult duties or increased responsibilities and a higher pay, higher status or offering
better privileges, thus all promotion will be based on merit,  good performance and
loyalty to the company, such a promotion may be made within the same department
or from one department to another.

A Transfer Means  : The movement of an employee from one job to another

requiring approximately the same degree of skills, duties and responsibilities, and
other educational qualification with the same pay scale within the company.

The selection will be made on the basis of qualification for the job through interview,
tests, attendance, and job performance.

4. WORKING CONDITIONS 

A good working condition will bring about a good result to the company and therefore
the condition of the working place must be provided with proper working
environment and enough safety and at the same time all employees must work with all
possible efforts and care in preventing the damage loss or accident to themselves
machines and other company property.

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 5. WELFARE
Good employee benefits will be offered to meet the needs of the employees in
accordance with the local or community practice, laws and financial stability of the
company.  The company will try all possible efforts to look forward to meet the
employee requirement in matter of medical care, recreation, hospitalizations and
others.

6.  EMPLOYEE RELATIONS

It is the responsibility of management and executive employees at all levels to point

out an employee’s deficiencies and shortcomings so that he may have an opportunity
to correct them, and also to promote good Human relations with their subordinates
and associates.  Everyone must understand  the company rules and regulations and
strictly and sincerely follow them.   The achievement of the company will be based on
the individual cooperation by strict adherence to his/ her duties and responsibilities. 
Any constructive suggestions and initiatives are always welcome.    When an
employee  is transferred, dismissed, or demoted.  He is entitled to know the reasons
for the Company’s action.

7. TRAINING
The company believes that well – trained employees both technical and
administration skill will bring about achievement to the company, and therefore,The
company’s employees at all levels will be provided  appropriate training course to
enable them in developing their ability, knowledge and skills.  Both internal and
external training including seminars will be provided as the management deems
appropriate.  It is also a the responsibility  of executive employees at all levels to train
their subordinates in order to develop the performance of  their subordinates and also
be  account able for the jobs assigned to the subordinates.

HUMAN RESOURCE MANAGEMENT MANUAL (HRMM).

The human resource management manual  (HRMM) is a companionvolume to the employee

handbook.  It presents HRMM policie in details for a particular group of people who have
particular responsibilities for communicating them.  Carrying them out or putting them into

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action. The employee handbook is for everybody.  The HRMM is written for the guidance of
executives and managers primarily.

In short,  The HRMM helps the executives and managers understand the objectives of
specific policies, interprets key aspects of the  policies,  defines terms and outlines approved
procedures.

THE HRMM THEN, SERVES TWO MAIN PURPOSES

1. It  provides a written expression of policies to ensure consistent application

throughout the company.
2. It enables every manager to administer his own employee relations at the most
desirable level for first – line supervision.

AN APPROVAL OF POLICIES

The HRMM shall be approved by president.  Drafts of HRMM is submitted to executives and
other dept.  Managers whose functions relate to the Subject/ matter and to operate HRMM. 
They are expected to Comment on some possible effects, if any, and propose suggestion for
revisions.  The text then, must be checked against the employment condition agreement,
Working rules, and court decisions by the human resources manager and refer such To the 
president for review and take appropriate action.

Ultimate approval may reside with top management, I.E.,  President Labour and approval
levels may vary according to subject / matter and the extent of The policy. 

However the policies or procedures may be issued as long as it is Not against approved
policies.

MANNUAL DISTRIBUTION

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In  general practice ,  the HRMM is an official controlled document,  distribution is limited, 
use list is decided by the president and when HRMM is required by others, approval of
president is needed.

However separate handbook or circular may be made for all concerned if necessary

HRMM UPDATE

The conditions that call for particular HRMM policies are seldom static.   A policy is useful
only if it is changed to meet new requirements. A policy changed but not recorded in the
manual and not communicated to all 
concerned is an invitation to fail.  Responsibility for keeping the manual upto date should be
assigned to all concerned.  For example, the production manager recommends changes in
recruiting  the chemists in place of engineers.  When he obtains approval for such
modification, then he is the one who initiate a request for
manual changes.  The HR  Manager recommends a change of dormitory procedure and when
be obtains approval, he is the one who initiate a request for manual change.  However, as a
rule, such change should not be made officially until it is refereed to a  specialist or
management of the company.

The manual itself can be used as a vehicle for making changes.  The More comprehensive the
manual is, the more useful it can be in effecting revisions of policies.  Because it is so
important that a HRMM be kept responsive to current needs,  revisions should be
implemented continuously.

In addition to making changes there is a  need of some kind of Periodical audit of the entire
manual .  A good rule is to examine every chapter every year after its issue on last revision. 
The human resources Manager  is responsible to take action in this regard.

COMMUNICATION DEVICE.

Meeting with all dept. managers is necessary before putting The policy manuals into action or
revising then.  Misunderstanding and misinterpretation of the policies are very dangerous,  
Vice Presidents and department managers who will execute directly or indirectly these
policies must be fully communicated and they will also further communicate their
subordinates in their respective departments.

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TRAINING DEVICE

A good HRMM may be the best personnel administration textbook The Managers and
supervisory staff will find that these are the nuts and bolts of today’s Personnel theory and
practice as applied by the company.  It can be the cornerstone of  supervisory and
management training programs in human relations, case studies,role playing and other
problem-solving techniques which can be designed around the policy manual.

THE ROLE OF HUMAN RESOURCES MANAGEMENT

1. PREAMBLE
Scientific management can make the tasks of production, purchasing, Marketing, and 
accounting almost a matter of routine.  Definite procedures can be Established and op-
eration can be performed under controlled conditions so that They can be easily
evaluated.   Such matter is not the case with the human resources management, since
no formula has yet been found to meet the problems brought about by the relations
between the employer and the employees. It is true that in human resources
management certain procedures such as employment process or the filing of employee
records and reports can be considered as  routine work, but in matter dealing with
individual employee or with the labour union, there are no rules in order to meet their
problems.  Each problem may be considered for a particular approach and a particular
situation.  Business executives found that it is often more difficult to solve human
relations problems than technical ones and that HR Management is essentially a
human relations problem-solving job concerning with the whole game of human
emotions and range of experiences.  One of the most knotty probleming in
management of labour relations today is how to achieve mutual understands, and
adjustments which are brought about by constant changes in a modern business
organization.  All levels of management, from the president to the lowest supervisory
personnel, generally recognize that most of the problems confronting them involve the
human resources management.  Their solution requires thoughtful attention and
careful action,  However, such problems of human resources can be more effectively
handled with the help of the human resource manager who is a specialist on problems
involving men at work.  Line supervisors/managers should regard him as an ally, not

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 an enemy.  Experience have proved that the functions involved in managing men and
women on the job can be carried out more effectively and economically with the
assistance of the personnel staffs who are, in turn, conversant with the science and art
of personnel management.

2. RESPONSIBILITIES.
In actual practice, human resource management is a management function.  This
means that everyone (every supervisor/every manager) is indirectly a personnel man
as he has to implement personnel  administration policies and programs conducive to
his respective department or section.   At the top level (president and vice- president)
emphasis would be on policy making and planning, where as the middle management
level (Dept. Manager, Ass’t Mgr. Or Superintendent)  emphasis would be on
developing subsidiary plans and implementation of policy and objectives.  And at a
supervisory level  (Shift engineer, Supervisor or foreman) emphasis is entirely on
implementation and control measures to see that the HR administration policies and
programs are properly managed or carried out.  The human resource department,
However, serves as staff (who advises, assists and services)  to all levels and the top
HR Dept. man should be a part of Management team.

3. THE MANAGEMENT OF HUMAN RESOURCES MANAGEMENT (HRM)

DEPARTMENT.
As HRM is a management function as stated above, the basic management function of
the human resource department can be given briefly.

PLANING
In HRM, planning refers to the formulation of personnel administration Policies, and
functions to achieve the goals of the company.

ORGANIZING
In HRM organizing refers to the arrangement and relationship of necessary activities,
division of work, line of authority and communication system  established to get the
work done at specified time.

DIRECTING
Is concern with the guidance of all efforts toward the objective. It provides a means of

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 putting plans into action through effective supervision, work rules and procedures.
Effective communication among the personnel staff can also be a means in carrying
out the tasks of directing.  If the personnel staff knows exactly their duties and
responsibilities, they can work with greater efficiency and accomplish more.

CONTROLLING
When the program has been implemented, changes or deviations may have to be
reviewed and corrected when necessary.   The control system will show whether the
personnel program is being carried out satisfactorily as planned or not.

4. OTHER SCIENCES NEEDED IN THE STUDY OF HUMAN RESOURCES.

Apart from the political related to personnel administration, other Fields of study can
contribute to the understanding and developing the personnel. Administration on
entering personnel should be acquainted with the basic knowledge of related fields,
namely, psychology, economics law, politics, research, statistics, religion, culture and
behavioral science, all these sciences are directly related to the administration of
human resources.

5. RESPONSIBILITIES OF HUMAN RESOURCES MANAGEMENT

DEPARTMENT
Generally,  The major responsibilities of the HRM include.
1) Developing personnel programs and policies after the approval of top management,
administering them: The personnel staff help explain and interpret management
policies to employees and bring to management's attention the employee's views on
those policies and programs to avoid any communication gap between management
and employees.  The human resources manager makes sure that the personnel policies
and programs polices are implemented to meet the needs and demands of changing
situations.

2) Assisting line management on personnel matters  this assistance  may be provided

through:
      (a)  Employee recruitment, selection, hiring and placement.
      (b)  Determination of skills available in the work group.
      (c)  Employee counseling and problem solving.

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      (d)  Employee benefits and services.
      (e)  Medical and hospitalization facilities.
      (f)   Encouraging safety and on the job injury prevention.
      (g)  Employee training and development.
      (h)  Employee suggestion system.
      (i)   Labour relations problems-solving.
      (j)  Total quality management (TQM).
      (k) Total productive maintenance (TPM).

3) Assisting line management in rating the employee's performance

One of  important tasks of HRM department is to assist line manager/Supervisors in
evaluating the performance of the employees under their supervision. The appraisal
forms and rating techniques are formulated and appraisers & appraises are trained.

4) Coordinating HR administration activities.

     (a)   Employment-recruitment, selection and placement.
     (b)   Promotion, transfer, lay-off, discipline, absenteeism etc.
     (c)   Training & development of supervisors.
     (d)   Fringe benefits and services.
     (e)   Setting salaries and wages rates.
     (f)    Employee motivation and morale development.
     (g)   Health and safety and on the job injury prevention.
     (h)   Communications.

5) Job evaluation and classification    

The HR. dept. studies and evaluates the jobs in the firm through   job analysis and job
evaluation. It recommends job classification and  the establishment of a sound wage
and salary structure, it administers  the company's policies governing wages and
salaries.

6) Employee relations
This is one of important functions of the HR department in the area of negotiation,
interpretations, and administration of management labour union  employment

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 condition agreement.  HR department must use its utmost  tact diplomacy in dealing
with the labour union

COMPANY STRUCTURE

In well-organized organization the unity of command and delegation of authority are very
much essential.  No employee can work  successfully for more than one immediate superior
at the same time.  A subordinate who receives conflicting orders from more than one superior
is likely to be confused, irresponsible and inefficient, and our organization charts have to be
made clearly in accordance with principles of good organization.       

Delegation will bring about organization success

Delegation  
Give the executives an opportunity to take an additional work of high importance for instance
planning, organizing, staffing, controlling, motivating and coordinating.

Delegation       
Relieves them of petty, routine details that can be done by others.

Delegation        
gives subordinates a chance to use their initiative and judgement.

Hence authority and responsibility of every superior shall be clearly spelled out in writing
and properly communicated to all concerned.  Each employee in the company must know to
whom he reports and who are under his supervision.  Through this, jurisdictional disputes
shall be minimized.In order to carry out assigned tasks, responsibility requires commensurate
authority, responsibility without authorityresults in chaos. However, the following phase
should be eliminated that “Officers seek authority but shirk responsibility”. This results in
buck-passing and ends in inefficiency.

To be effective, the following devices will be used to effectively carry out the Delegation
of authority, one of important philosophies of the company.

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Organization charts.
Written regulations/orders.
Job descriptions of key positions.
Authoritative manual.
Human resources management manual (HRMM).

To the above questions, the flip answer is "it all depends" with criteria;

 Competence to make a decision on the part of the person to whom the authority is
delegated and also confidence in that competence on the superior.
 Scope of impact of decision which effect the men, money or material within and
without his own department.  Any decision which may effect more than one
department rests with the higher authority than department head.
 A reliable  and adequate information to make a decision for some special case of
unroutine nature.  However, a the rule, the accountability of higher authority for the
acts of its subordinates is absolute.

ORGANIZATION CHARTS

Objective

An Organization chart.
Helps the management to apportion the various duties or functions in order that they will be
performed with a minimum of waste.

An organization chart.
Helps to visualize the company structure (as stated under policy no.2)as whole.  It portrays
the principal divisions and lines of formal authority and responsibility.

An organization chart.
Is similar to an architect's blueprint of the house, in showing exactly the responsibility of
each  person in the company.

An organization chart.
Is a communication system for assigning work, giving out jobs, delegating authority, fixing
responsibility, and receiving information or results.

22
PRINCIPLES OF GOOD ORGANIZATION
Objectives

1. The objectives of the enterprise and its component elements should be clearly defined
and stated in writing, the organization should be kept simple and flexible.

Activities

1. The responsibilities assigned to a position should be confined as far as possible to the

performance of a single leading function.
2. Functions should be assigned to organizational units on the basis of homogeneity of
objective to achieve most efficient and economic operation.

Authority

1. There should be clear lines of authority running from the top to the bottom of the
organization and accountability from bottom to top.
2. The responsibility and authority of each key position should be clearly defined in
writing.
3. Accountability should always be coupled with corresponding authority.
4. Authority to take or initiate action should be delegated as close to the scene of action
as possible.
5. The number of levels of authority should be kept to minimum.

Relationships

1. There is a limit to the number of positions that can be effectively supervised by a

single individual.
2. Everyone in the organization should report to only one boss.
3. The accountability of higher authority (higher boss) for the acts of its subordinates is
absolute.

By Harold steiglitz, organization planning, handbook of modern personnel administration,

published by JOSEPH J. Famularo, Vice President, personnel relations, MS. GRAW-HILL,
INC.PP, 3-8.

23
In order to meet the above objectives, the following existing organization charts are
made.

1. Master organization chart.

2. Human resources management department chart.
3. Human resources management functional chart.

Straight-forward, clear and consise HR policies and job descriptions are imporant for a
number of reasons. Failing to implement policies and job descriptions leaves your company
open to legal challenges, grievances and lawsuits, especially if you inconsistently apply your
human resouces policies and your pay structure/system. Grievances and lawsuits lead to:

 » Increased costs that affect your profits

 » Increased turnover
 » Negative morale

Your company will avoid these problems if you implement hr policies, procedures and job
descriptions and you can easily do this if you download our sample job descriptions and hr
policies.

Your company needs human resources policies and procedures and current job descriptions
so that your staff are treated equally across a variety of employment issues. In addition,
human resouce polices help if legal situations arise.Our services are ideally suited for:

 » Small Business Owners

 » Managers
 » HR Professionals
 » HR Consultants
 » Lawyers

24
Small businesses often scramble for resources when compiling staffing information,
contracts, developing HR policies and procedures and writing job descriptions. In addition,
many large companys have dated policies, procedures and job descriptions that no longer
reflect the reality of today's business world. Companies looking for fresh ideas and a fresh
start to can find what they are looking for with our sample hr policies and sample job
descriptions.

HR Strategy

“HR Strategy is the system of human resource practices for a particular job or collection of
jobs aimed at the best employee performance possible to meet the firm’s ultimate goals”

– System of practices

– Job or collection of jobs

– Performance oriented (have, feel, do)

The following check-lists present some questions which may prove helpful for you to think
about when planning your development programs for human resources (your people) in your
organization.

25
Use them to provoke thought and to stimulate discussion. Consult with others in your
organization. They will help you to identify the critical human resource issues facing your
organization.

The aim is to begin to explore how a considered and planned approach to people management
can improve business performance, to the benefit of all.

Use this checklist in conjunction with our team building diagnostic instrument. It will, via
your team members responses identify critical issues they perceive as important. These issues
may be at odds with your own perceptions and analysis and therefore any such discrepancy
will need to be addressed.

Corporate Strategy

Business Strategy

HR Strategy

HR System
(Performance Mgmt.)

Warning Indicators

Your organization is more than likely in trouble if any of the following holds true:

 chronic industrial relations problems

 no means of resolving employee grievances
 increasing / erratic employee turnover

26
  increasing number of customer complaints
 no pride in the organization
 inter-group conflicts
 no career paths for ambitious talented employees
 dissatisfaction with pay and conditions
 unclear job roles
 no clear performance measures
 quality is unimportant
 bad product service / delivery records
 poor recruitment standards / practices
 no management development programs
 no induction training for new employees
 critical skill shortages
 inter-departmental conflict
 you do not know if any of the above are applicable
 you ignore any of the above

Culture, organization, people, systems (COPS), checklist

Culture

 Do your staff identify with the organization and 'the success of the organization' as
being of direct benefit to themselves?
 Do your staff see themselves as having common interests with their work colleagues
and group? Is there a strong team spirit?
 Is work allocated on the basis of individual expertise rather than position in the
organization?
 Are there sufficient skills / power bases in the organization?
 Are there appropriate leadership skills within the organization?
 Are your staff encouraged to say what they think about the organization?
 Does your organization encourage innovation and creativity amongst staff?
 Do your staff feel a sense of personal responsibility for their work?
 Is quality emphasized in all aspects of the organization?

27
Organization

 Does the structure of your organization encourage effective performance?

 Is the organization structure flexible in the face of changing demands?
 Is the structure too complex? If so in what areas?
 Do your staff have clear roles and responsibilities?
 Does your organization structure tend to push problems up rather than resolve them at
the point where they occur?
 Do your procedures and management practices facilitate the accomplishment of tasks?
 Do you constantly seek to challenge your organization structure?

People

 Do your staff have the necessary skills and knowledge to perform their jobs in the
most effective manner?
 Do your staff understand their jobs and how they contribute to overall business
performance i.e. have clear goals and objectives?
 Do your staff have a customer service orientation?
 Are people with potential spotted and developed for the future?
 Are your staff encouraged to perform well through the giving of recognition,
feedback, etc.?
 Do your people know what their expected performance standards are?

Systems

 Do your organization's systems (e.g. employee selection and recruitment, promotion,

planning, management, information and control) encourage effective performance
among your staff?
 Are these systems consistent across the organization?
 Are there clear rewards for effective performance within your work group?
 Does the organization review its systems frequently and ensure they mutually support
each other?

28
 PHARMACEUTICAL INDUSTRY PROFILE
The Pharmaceutical Industry develops, produces and markets drugs licensed for use as

medications. Pharmaceutical companies can deal in generic and/or brand medications. They are

subject to a variety of laws and regulations regarding the patenting, testing and marketing of

drugs. The main aim of a particular Pharmaceutical Industry is to develop research and distribute

drugs in order to provid e health care for the people in the societ y. The Pharmaceutical Industry

like other industries is subjected to follow certain rules and regulations.

“The Indian Pharmaceutical Industry is a success

story providing employment for millions and

ensuring that essential drugs at affordable prices

are available to the vast population of the sub-

continent”

Richand Gerster

29
 The Pharmaceutical Industry needs to follow ru les about patent, marketing as well

as testing of drugs that are scheduled to come to the market as medicines. Since the inauguration

of the Pharmaceutical Industry in the 19th century, it has covered a long way and now it has

become one of the most influential and successful industry in the world with both controversy and

praise on its part.

Pharmaceutical Industry is very much dependent upon the developments and

discoveries that are made to search new types of drugs and also to search for new kind of

medicines. One can also differences within the industry regarding the same drug or report and

different companies within the Pharmaceutical Industry loo k to follow d ifferent paths for the

same thing. Drug Discovery and Drug Innovation are two very aspects in the Pharmaceutical

Industry:

DRUG DISCOVERY:

Drug Discovery is a process through which potential drugs are designed or discovered. It

has been observed in the past that most of the drugs were invented by means of isolating the active

component from remedies which are traditional in nature or through another kind of discovery

known as serendipitous discovery.

30
DRUG DEVELOPMENT:

This process is taken forward after the discovery is done and a thing is identified as a potential

drug. The development takes place immediately after that as the component is turned into a

medicine. So this is also considered as a very Important process and has great importance in the

Pharmaceutical Industry. For the first time ever, in 2006, global spending on prescription drug

stopped $643 billion, even as growth slowed somewhat in Europe and North America. The

United S tates accounts for almost half of the global pharmaceutical market, with $289 billion in

annual, sales followed by the EU and Japan. Emerging markets such as China

Russia, South Korea and Mexico outpaced that market, growing a huge81 percent.US profit

growth was maintained even whilst other top industries saw slowed or no growth. Desp ite this,

the pharmaceutical industry is —and has been for years — the most profitable of all businesses in

the U.S. In the annual Fortune 500 surve y, the p harmaceutical industry topped the list of the

most profitable industries, with a return of 17%on revenue. Indian Pharmaceutical Industry today

is the front runner of India’s science-based industry with wide ranging capabilities in the

complex field of drug manufacture and technology. A highly organized sector, the Indian

Pharmaceutical Industry is estimated to be worth $4.5billion, growing at about 8to9persent

annually. It

ranks ver y high in the world, in terms of technology, quality and range o f med icines

manufacture. From simple headache pills to sophisticated a n t i b i o t i c s a n d c o m p l e x c a r

d i a c c o m p o u nd s , a l m o s t e v e r y t yp e o f medicine is now made indigenously.

31
 INDIAN PHARMECUTIAL INDUSTRY:

It plays a key role in promoting and sustaining

development in the vital field of medicines,

boasts of quality producers and many units

approved by regulatory authorities in USA and

UK. International companies associated with

this sector have stimulated assisted and spread

headed this dynamic development in the past

53 years and helped to put India on the

Pharmaceutical map of the world.

The pharmaceutical sector is highly fragmented with more than 20,000 registered

units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical

companies control 70% of market with market leader holding nearly7%of the market share. It is

an extremely fragmented market with seven price competition and government price control. The

pharmaceutical industry in India meets around 70%of the country’s demand for bulk drugs, drug

intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles.

There are about 250 large units and about 8000 Small Scale Units, which form the core of the

pharmaceutical industry in India (including 5Central Public Sector Units). These units produce

the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by

patients and about 350 bulk drugs. i.e., chemicals having therapeutic value and used for

production of pharmaceutical formulation.

32
 Manufactures are free to produce any drug duly approved by the Drug Control Authority.

Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs

of production, low R&D costs, innovative scientific manpower, strength of national laboratories

and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents

and research capabilities, supported by Intellectual Property regime is well set to take on the

international market.

US PHARMACEUTICAL INDUSTRY

The United States in the world’s largest market for

Pharmaceuticals and the world leader in

biopharmaceutical research. U.S. firms conduct 80 percent

of the world’s research and development in biotechnology

and hold the intellectual property rights to most new

medicines. In 2010, the pharmaceutical sector employed

approximately 272000 people and according to the

Pharmaceutical Research and Manufactures of America

(PhRMA), those

manufactures spent $67.4 billion on research and development in 2010.

The U.S. market is the world’s largest free-pricing market for pharmaceutical and

has a favorable patent and regulatory environment. Product success is largely based on

competition in product quality, safety and efficacy, and price. U.S. government support of

biomedical research, along with its unparalleled scientific

PHARMACEUTICAL INDUSTRIES IN INDIA

33
Some of the below list of the Pharmaceutical industries in India are as follows:

• Dishman Pharmaceuticals
• Elder Pharmaceuticals
• J B Pharmaceuticals
• Torrent Pharmaceuticals
• Sun Pharmaceuticals
• Ranbaxy India
• Cadila Pharmaceutical Limited
• Wockhardt
• Strides Arcolab

• IPCA Laboratories

• Alembic

• Amrutanjan

• Virchow Laboratories

• Polydrug Laboratories

• Dr. Reddy?s Laboratories

• Aurobindo Pharma

• Jubilant Organosys

• Astrazeneca Pharma

• Divis Laboratories

• Merck Ltd.

34
ADVANTAGE INDIA:
COMPETENT WORKFORCE:

India has a pool o f personnel with high managerial and technical competence

as also skilled workforce. It has an educated work force and English is commonly used.

Professional services are available.

COST- EFFECTIVE CHEMICAL SYNTHESIS:

Its track record of development, praticularly in the area of improved cost-

beneficial chemical synthesis for various drug molecules is excellent . It provides a wide

variet y of bulk drugs and exports sophisticated bulk drugs.

LEGAL & FINANCIAL FRAMEWORK:

India has a 60 year old democracy and hence has a solid legal framework

and strong financial markets. There is already an established international indu stry and

business commu nit y.

INFORMATION & TECHNOLOGY:

It has a good network o f world -classes educatio nal institutio ns and

established strengths in Informatio n Techno logy.

GLOBALIZATION:

The countr y is committed to a free market economy and globalizatio n.

Above all, it has a 70 million middle class market, which is continuously growing.

CURRENT SCENARIO

35
THE GROWTH SCENARIO

India’s US $ 4 .1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It

is one of the largest and most advanced among the developing cou ntries. Over 20,000 registered

pharmaceutical manu factures exist in the countr y. The domestic p harmaceutical industry output

is expected to exceed Rs.260 billion in the financial year 2002, which accounts formerly 1 .3% of

the global pharmaceutical sector. Of this, bulk drugs will accou nt for Rs. 54 bn (21%) and

formulations, the remaining Rs 210 b n (79%).

EXECUTIVE SUMMARY

This report has been made keeping in mind the Indian Pharmaceutical industry, its growth rate as

compared to the global Pharmaceutical Industry. India's US$ 3.1 billion pharmaceutical industry

is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the

developing countries. The Indian Pharmaceutical sector is highly fragmented with more than

20,000 registered units. It has expanded drastically in the last two decades. The leading 250

pharmaceutical companies control 70% of the market with market leader holding nearly 7% of

the market share. It is an extremely fragmented market with severe price competition and

government price control. Then, we loo k at the market and growth scenario of P harmaceutical

companies in Ind ia which brings us to research on MATRIX P HARMALABS

36
 FUTURE PROSPECTS

The Indian Pharmaceuticals market is expected to reach US$55 billion in 2020 from US$12.6

billion in 2009. This was started in a report title “Indian Pharma 2020: Propelling access and

acceptance, realizing true potential” by McKinsey & Company. In the same report, it was also

mentioned that in an aggressive growth scenario, the pharma market has the further potential to

reach US$70 billion by 2020.

Due to increase in the population of high income group, there is very likelihood that they will

open a potential US$ 8 billion market for multinational companies selling cost drugs by 2015.

This was estimated in a report by Emst & young. The domestic pharma market is estimated to

touch US$ 20 billion by 2015. The health care market in India to reach US$ 31.59 billion by

2020.

The sale of all types of pharmaceutical drugs and medicines in the country stands at US$ 9.61

billion, which is expected to reach around US$ 19.22 billion by 2012. Thus India would really

become a lucrative destination for clinical trials for global giants.

There was another report by RNCOS titled “Booming Pharma Sector in India” in which it was

projected that the pharmaceutical formulations industry is expected to prosper in the same manner

as the pharmaceutical industry. The domestic formulations market will grow at an annual rate of

around 17% in 2010 and 2011, owing to increase middle class population and rapid urbanization.

37
Steps to strengthen the Industry:

• Indian companies need to attend the right product- mix for sustained future growth.

• Core competencies will play an important role in determining the future of many Indian
Pharmaceutical companies in the post product-patents regime after 2005.

• The companies in an effort to consolidate their position will have to increasingly look at
merger and acquisition options of either companies or products.

• Research and development has always taken the back seat amongst Indian
Pharmaceutical companies.

• The Indian Pharmaceutical Industry also needs to take advantage of the recent advance
in biotechnology and information technology.

38
 ABOUT THE COMPANY

Dr. Reddy’s laboratories was founded by Dr. Anji Reddy, entrepreneur-scientist, in 1984

the DNA of the company; is drawn from its founder and his vision to establish India’s first

discovery led global pharmaceutical company .in, fact, it is this spirit of entrepreneurship that has

shaped the company to become what it is today. The company is focused on creating and

delivering innovative and quality products to help people lead healthier lives.

Dr. Reddy’s is the research based company with vertically integrated operations. The

company develops, manufactures and markets a wide range of pharmaceutical products India and

overseas. Dr. Reddy’s produces finished dosage forms, active pharmaceutical ingredients,

diagnostic, kits, critical are and biotechnology products. The basic research program of Dr.

Reddy’s focused on cancer diabetes, bacterial infections and pain.

Since its inception in 1984, Dr. Reddy’s has chosen to walk the path of discovery and

innovation in health sciences R eddy’s has been a quests to sustain and improve the quality of life, and

they; heaves had nearly two decades of creating safe pharmaceutical Solutions with the ultimate

purpose of making the world a heather place. Dr. Reddy’s create and deliver innovative

pharmaceutical health care solutions that people enjoy longer, healthier and more productive lives.

Reddy’s generic formulations have also become very popular in quality-conscious regulated markets

such as the US and Europe. We are all set to spread pure wings further and touch more lives across

the globe

39
 In 1973, after gaining six years of experience in the manufacturing and implementation

of new technologies in bulk drugs from public sector company IDPL, Hyderabad. Dr Reddy’s

decided to start up basic drugs unit at that time there were few other players in the private sector

at that end of the pharmaceutical value chain.

In 1975, Dr. Reddy’s started the construction of uniloids of which he was the founder-

managing director it was here that they made a move that was to become the hallmark of the

group in the years to come.

This move was first to construct and stat R&D laboratory ever before commencing the

construction of the plant. Based on the work done in these laboratories he constructed a plant in

1976 to manufacture, for the first time in India, drug called ‘metrodinazole’ for the treatment of

amoebic dysentery the drug became a hit.

In 1981, as managing director of standard organics Ltd; Dr. Reddy’s aim was to develop

and manufacture a wide spectrum of bulk drugs to enable the pharmaceutical industry to launch

their formulations. Unfettered. There were only a couple of – pharmaceutical company‘s at that

time with the capacity to develop newer drugs bit they would not sell the bulk to other

formulators. Here, Dr. Reddy’s played a major role in pioneering the technology and production

of ‘sulphamethonazole ‘an anti bacterial in India. Another dream was to do it on his own, because

that was the time that his second experiment with partnership was also crumbling. He realizes his

dream shortly thereafter, then the established Dr. Reddy’s laboratories in 1984. The process and

production of methyldopa was the ultimate challenge.

40
 The company has several distinctions to its credit. Being the first pharmaceutical company

from Asia Pacific (outside Japan) to be listed on the New York Stock Exchange (on April 11,

2001) is only one among then. And as always, Dr. Reddy’s chose to do it in the most difficult of

circumstances against widespread skepticism. Dr. Reddy’s came up trumps not only having its

stock oversubscribed but also becoming the best performing IPO that year.

Dr. Anji Reddy’s is well known for his passion for research and drug discovery.

Dr Reddy’s started its drug discovery programmed in 1993 and within three years it achieved its

first break through by out licensing an anti –diabetes molecule to Novo Nor disk in March 1997/

With this very small but significant step, the Indian industry went through a paradigm shift in its

image from being known as just ‘copycats’ to ‘innovators’! Through its success, Dr. Reddy’s

pioneered drug discovery in India. There are several such inflections points in the company’s

evolution from a bulk drug (API) manufacturer into a vertically integrated global pharmaceutical

company today.

Today , the company manufactures and markets API(Bulk Actives), Finished Dosages and

Biologics in over 100 countries worldwide, in addition to having a very promising Drug

Discovery Pipeline. When Dr. Reddy’s started its first big move in 1986 from manufacturing and

marketing bulk actives to the domestic (Indian) market to Manufacturing and exporting difficult-

to-manufacture bulk votes such as Methyldopa to highly regulated overseas markets, it had to not

only overcome regulatory and legal hurdles but also battle deeply entrenched mind-set issues of

Indian Pharma being seen as producers of ‘cheap’ and therefore ‘low quality’ pharmaceuticals.

41
 Today, the Indian pharma industry, in stark contrast, is known globally for its proven high

quality-low cost advantage in delivering sage effective pharmaceuticals. This transition, a tough

and often-perilous one, was made possible thanks to the pioneering efforts of companies such as

Dr. Reddy’s Laboratories.

Dr. Reddy’s is a global, vertically integrated pharmaceutical company with a presence

across the value chain, producing and delivering safe, innovative, and high quality finished

dosage forms, active pharmaceutical ingredients and biological products. Our products are

marketed across the globe, with an emphasis on North America, Europe, India, Russia and other

emerging markets. We conduct NCE drug discovery research in the areas of metabolic disorders

and cardiovascular indications at our research facilities in Atlanta (USA) and Hyderabad (India).

Through our Custom Pharmaceutical Services business unit, we provide drug substance and drug

product development and manufacturing services on a proprietary basis.

Today, Dr. Reddy’s continues its journey. Leveraging on its ‘Low Cost, High Intellect”

advantage. Foraying into new markets and new businesses. Taking on new challenges and

groaning stronger and more capable. Each failure and each success renewing the sense of purpose

and helping the company evolve with over 950 scientists working across the globe, around the

clock, the company continues its relentless march forward to discover and deliver a breakthrough

medicine to address an unmet medical need and make a difference to people’s lives worldwide.

And when it does that, it would only be the beginning and yet it would be the most important

step. As Lao Tzu wrote a long time ago, ‘Even 1000mile journey starts with a single step.

42
DR.REDDY’S LTD IN INDIA:

Dr. Reddy’s originally launched in 1984 producing generic medications. In 1986, Reddy’s started

operations on branded formulations. Within a year Reddy’s had launched Norilet, the company’s first

recognized brand in India. Soon, Reddy’s obtained another success with Omez, its branded

omeprozole – ulcer and reflux oesophagitis medication – launched at half the price of other brands on

the Indian market at that time.

Within a year, Reddy’s became the first Indian company to export the achieve ingredients for

pharmaceuticals to Europe. In 1987, Reddy’s started to transform itself from a supplier of

pharmaceutical ingredients to other manufactures into a manufacture of pharmaceutical products.

Dr. Reddy’s began as a supplier to Indian drug manufactures, but it soon started exporting to

other less-regulated markets that had the advantage of not having to spend time and money on a

manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food

and Drug Administration. This allowed their movement into regulated markets such as the US

and Europe.

Dr. Reddy’s began as a supplier to Indian drug manufactures, but it soon started exporting to

other less-regulated markets that had the advantages of not having to spend time and money on a

manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food

and Drug Administration.

43
 OBJECTIVES:

To creating a work environment that promotes safety, people training and development

and performance orientation in line with Dr Reddy’s values and policies.

To Improvement in supply and availability of utilities and time bound repair of m/c and

equipments (along with the relevant records as per site objectives).

Ensure that the equipment and related systems (both old and new) are (re)qualified /

(re)validated as per schedule.

Reduce utilities consumption in line with the site objectives. To identify and implement

energy conservation measures.

To ensure that all the drawings and technical specifications of the equipment and system

in his/her area is updated.

To ensure clean room performance (checks, calibration, qualification and maintenance,

along with documentation, of filters and other related equipments) as per SOP.

To reuse and recycle equipments, etc. where ever possible.

Trouble shooting with an objective of finding permanent solution.

To ensure the facility is as per site objectives at all times.

To ensure the good upkeep of the department.

Liaisoning (with peers and outside agencies) to meet business objectives.

44
 COMPANY VISION

Our vision is to become a discovery-led global pharmaceutical company.

We will achieve this vision by buildin

A work place talent available. An that will attract, energise and help retain the finest

organizational translation of scientific culture that is relentlessly focused on the speedy

discoveries difference in people’s lives. into innovative products to make a significant

COMPANY MISSION:

To be the first Indian pharmaceutical company that successfully takes its products from discovery

to commercial launch globally.

We are on a tough mission and energies can easily dissipate unless there is direction and

dedication.

45
 AWARDS:

The Dr. Reddy’s ltd has been a regular recipient of the awards for excellence in Pharma sector,

best employees and most respected company.

The Saumen Chakroborty- CFO of awarded to Dr. Reddy’s lab the Best Performance Award

sustained for CFO in the Pharma Sector for 2007 development of overseas business.

D .Reddy’s lab also received the award in 2004 for the Most Respected Company award.

It also received the award in 2004 for the Best Employers in India. For development of
indigenous know-how, continued support is also necessary and a detailed write up on R&D
facilities is enclosed.

46
 INSIGHT INTO VARIOUS DEPARTMENTS:

 RESEARCH AND DEVELOPMENT:

The research and development division, established in the late 1980’s, is central to the

active pharmaceutical ingredients business. It contributes significantly to our business by

creating intellectual property, providing research to reduce the cost of production of the

products and playing an active role in the selection and development of new products.

The analytical research group supports the development activity by carrying out

impurity profiling, structure elucidation and stability studies.

 MANUFACTURING UNITS:

47
 Cheminor drugs Ltd. Merged in to Dr. Reddy’s Labs in the year 2000-01 restructured as

Strategic Business Units.

Bulk

Branded formulation

Generics

R&D emerging business

Corporate center

Units: Strategic Business Units Bulk has 6units.

3 units in Bollarum

1 unit in Jeedimetla.

1 unit in Miryalaguda

1unit in PydiBhimavaram

 QUALITY POLICY:

48
 Dr. Reddy’s is committed to provide customer’s products meeting or exceeding exceptions

consistently in terms of specifications, delivery, technical support, regularity compliance &

competitive.

Customer Focus:

We are committed to delight customers by providing products and services that

exceed expectations consistently in terms of quality, speed to market, delivery and

competitiveness

Execution Excellence:

We will constantly improve systems, technologies, infrastructure, regulatory

compliance and technical support.

Competency Building:

We will ensure high level of competency by attracting and retaining talented

personnel in all areas through continual education and development.

Beneficial Partnerships:

We will develop and maintain mutually beneficial relationships with all business

associates and provide lasting value to all stakeholders. Constantly improve the procedure,

technologies & infrastructure to continuously better the quality of products produced. Ensure

optimum training to all personnel accountable for quality related activities. Maintain mutually

beneficial relationship with vendors, enrich the quality of life of employees & provide lasting

value of shareholders.

49
 • SOCIAL INITIATIVES:

We at Dr. Reddy’s take pride in the company’s mission – to help people lead healthier lives.

This objective is achieved by increasing access and affordability of medicines through the company’s

generics, API, and branded generics products, and by addressing unmet medical needs by innovation

through its Specialty and NCE businesses.

We see Social Initiatives as an integral component of Corporate Social Responsibility.

Our investments in the community have gone beyond the adhoc disbursement of funds, to

planned programs in capability building. We do this by supporting the following organizations:

Dr. Reddy’s Foundation

The Naandi Foundation

Dr. Reddy’s Foundation for Health Education (DRFHE)

The Centre for Social Initiative & Management (CSIM)

Our Social Initiatives do not involve just the community, but employees as well by including

employees in our definition of Social Initiatives; the company ensures that the initiators also

figure among the beneficiaries.

50
 ORGANIZATION STRUCTURE

Managing

Director

General

Manager

Manager Manager Manager Manager

Human Finance Contracts Marketing &

Resources Division Distribution

Manager Manager

Explosives Production

Illustration No. II.1 Organization Structure of Dr. Reddy’s lab

51
 PERFORMANCE OF THE COMPANY

Dr. Reddy’s laboratories (DRL) reported higher-than-expected 4qfy2012 top-line performance,

while its bottom line came in below expectations.

The company’s net sales increased by 31.8% yoy, led by 29.9% yoy and 26.8% yoy growth

across the global generics and proprietary products businesses, respectively. This led to OPM

expansion and net profit growth during the period. Management has reinforced its FY2013

guidance of us$2.7bn, with RoCE expected to come in at 25%. We recommend accumulate on

the stock.

Results much above expectations: DRL reported net sales of Rs.2,658 cr for 4QFY2012,

registering 31.8% yoy growth, which was higher than our estimate of Rs.2,272cr. The U.S. and

row were the key growth drivers for the company, registering strong growth of 47.5% yoy and

32.3% yoy, respectively. The domestic market reported single-digit growth of 16.7% yoy. The

company’s EBIT margin expanded by 235bp yoy to 18.9%, resulting in adjusted net profit

growing by 28.9% yoy to Rs.431cr during the quarter.

Outlook and valuation: DRL has reinforced its earlier revenue guidance of US$2.7bn by

FY2013E with RoCE of 25%. We expect net sales to report a 9.8% CAGR to rs.11,662cr and

adjusted EPS to record a 2.3% CAGR to rs.92.9 over FY2012-14E. We maintain our Accumulate

Recommendation on the stock with a target prize of Rs.1,859.

52
 BOARD OF DIRECTORS:

Dr’s Anji Reddy, Chairman

GV Prasad , Vice Chairman & CEO

K. Satish Reddy, COO & MD

Abhijit Mukharjee, President Global Genetics

Dr. Cartikeya Reddy, Senior Vice-President & Head Biologics

KB. Shankara Rao, Exicutive Vice-President IPDO

Vilas bholye, Head – Formulations Manufacturing

Dr. Raghav Chari, Senior Vice-President-Proprietary Products

Prabir Jha, Senior Vice-President Global Chief HR.

53
Amit Patel, Senior Vice-President & Head-NA Genetics

Saumen Chakraborty, President-Corporate

Umang Vohara, Chief Financial Officer

VS Vasudevan, Head of Europe Operations.

54
 COMPANY VALUES

Our business practices are guided by highest ethical standards of truth integrity and transparency.

To strive for excellence in everything they think, say and so. The values that guide the thoughts

and actions are:

• Quality:

Reddy’s are dedicated to achieving the highest levels of quality in everything we do to

delight customers, internal & external, every time.

• Respect for the individual:

We uphold the self-esteem and dignity of each other by creating an open culture

conducive for expression of views and ideas irrespective of hierarchy.

• Innovation & continuous learning:

We create an environment of innovation and learning that fosters, in each one of us, a

desire to excel and willingness to experiment.

• Collaboration & Teamwork:

Dr.Reddy’s seek opportunities to build relationships and leverage knowledge, expertise

and resources to create greater value across functions, businesses and locations.

55
 • Harmony & Social Responsibility:

Dr.Reddy’s take utmost care to protect our natural environment and serve the

communities in which they live and work.

SWOT ANALYSIS OF DR.REDDY’S LAB

• STRENGTH:

Strong products portfolio.

Low cost based.

Six-new chemical entities.

Wide range of anti-cancer drugs developed.

Contribute to company’s high profit margin of around 34% of sale.

Manufacturing & market over 250 medicines targeting a wide range of therapies.

Expertise in developing innovative product formulations.

Markets pharmaceutical products in 115 countries.

Joint ventures in China & South Africa.

• WEAKNESSES

High amount of revenues from overseas.

Generic drugs smallest focus.

Lack of patent legislation in India harms sales of its products.

Smallest portion of revenues from generic at around 20%.

56
 OPPORTUNITIES

Take a drug then way to market.

Domestic generic drugs market.

In another 4-6 years many product patent obtained after the 2004 legislation will go

off providing an opportunity to the company increase its domestic footprints in

Generic.

Buy back of the integrated drug development company from ICICI venture &

Citigroup.

• THREATS:

Need to gain FDA approval for all sources & products.

Heightened concerns about profitability of German generics business of Beta pharm.

Revenue running into billions which dwarfs Reddy’s annual turnover litigation charges.

Products have to pass strict FDA trails before going to market, which can be costly and
time consuming.

57
 1) What is Policies According to You?
a) Psychological response
b) A feeling experienced by a person
c) Demand or Pressure
d) Emotional effect
Particulars Response (No of persons)

Psychological response 10

A feeling experienced by a person 70

Demand or Pressure 15

Emotional effect 5

80

70

60

50

40 Particulars
Response (No of persons)
30

20

10

0
1 2 3 4

Interpretation:

10 members said the about stress as a Psychological response, 70 members said the about
stress as A feeling experienced by a person, 15 members said the about stress as a Demand or
Pressure 5 members said the about stress as Emotional effect.

58
2) Do you feel that training programmers are necessary for employees?

(a) YES (b) NO

S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 YES 100 100

2 NO 0 0

  TOTAL 100 100

% OF RESPONDENTS

120
100
80
60
40
20
0
1 2
YES NO

Interpretation:

From the above analysis we can say that 100% employees feel that the
training programmers are necessary for employees. The 0% employees feel that training
programmers are not necessary for employees.

59
 3) Training &development programmers affect employees in getting promotion.
Do

you agree?

(a) Agree (b) Disagree

S.N NO. OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 AGREE 100 100

DISAGRE
2 E 0 0

3 TOTAL 100 100

% OF RESPONDENTS

120

100

80

60
100
40

20

0 0
1 2
Agree Disagree

Interpretation:

About 100% of the employees agreed that the training and development
programmers affect employees in getting promotion and 0% of the employees disagreed
that the training and development programmers affect employees in getting promotion.

60
 4) Are you satisfied with present HRM Policies following in your organization?

(a) YES (b) NO

NO OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS

1 YES 56 56

2 NO 44 44

  TOTAL 100 100

% OF RESPONDENTS

No

44%
Yes
56%

Interpretation:

About 56% of the employees are satisfied with present HRM programmers in
organization. 44% of the employees were not satisfied with present programmers in
organization.

61
 5) Are you satisfied with working conditions in your organization?

(a) YES (b) NO

S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 YES 80 80

2 NO 20 20

  TOTAL 100 100

% OF RESPONDENTS

20%

Yes

No

80%

Interpretation:

From the above analysis 80% of the employees are satisfied with

working conditions in this organization. Rest 20% of the employees are satisfied with

working conditions in this organization.

62
 6) Did Organization give sufficient freedom to express your views and
suggestions?

(a) YES (b) NO

S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 YES 100 100

2 NO 0 0

3  TOTAL 100 100

% OF RESPONDENTS

100%
90%
80%
70%
60%
50% 100
40%
30%
20%
10%
0% 0
1 2
Yes No

Interpretation: All the employees are satisfactory in the expiration of their views and
suggestions

63
 7) Does your management give you recognition for good results?

(a) YES (b) NO

S NO OF % OF
.NO OPTIONS RESPONDENTS RESPONDENTS

1 YES 80 80

2 NO 20 20

  TOTAL 100 100

% OF RESPONDENTS

20%

No

Yes

80%

Interpretation:

From the above analysis we can say that 80% of the employees

Responds that their management gives recognition for their good results. And 20% of the

Employees respond that their management not gives recognition for their good results

64
 8) Duration of training & Development programmed is sufficient?

(a) YES (b) NO

S. NO OF % OF
NO OPTIONS RESPONDENTS RESPONDENTS

1 YES 20 20

2 NO 80 80

  TOTAL 100 100

% OF RESPONDENTS

90
80
70
60
50
40 80
30
20
10 20
0
1 2
Yes No

Interpretation:

From the above analysis we can say that 80% of the employees are

not sufficient for duration of the programmed. And 20% of the employees are sufficient

for duration of the programmed.

9) Do you think that incentives are needed for attending training programmers?
65
 (a) YES (b) NO

S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 YES 100 100

2 NO 0 0

  TOTAL 100 100

% OF RESPONDENTS

120

100

80

60
100
40

20

0 0
1 2
Yes No

Interpretation:

From the above analysis we can say that 100% of the employees feel

Those incentives are needed for attending training programmers. 0% of the employees
feel those incentives are not needed for training programmers.

10) Duration of the Policies of individual employee programmed is:

66
 (a) Short term (b) Medium (c) long term

S.N NO.OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

SHORT
1 TERM 40 40

2 MEDIUM 60 60

3 LONG TERM 0 0

  TOTAL 100 100

% OF RESPONDENTS

long term
0%
short term

40%
Medium

60%

Interpretation:

About 40% of the employee’s opinion of the duration of Policies

Programmed is short term, 60% of employees opinion is medium and 0% of employees

Opinion is long term.

67
 11) Do you have promotional policies in organization?

(a) YES (b) NO

S.N NO OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 YES 100 100

2 NO 0 0

  TOTAL 100 100

% OF RESPONDENTS

No
0%

100%
Yes

Interpretation:

About 100% of the employees respond that they have a promotion

policies in the organization.

68
 12) Will you have an opportunity to apply your newly acquired knowledge and
skills?

a) To a Small extent (b) To a Full extent (c) To a Great extent

S.N NO. OF % OF
O OPTIONS RESPONDENTS RESPONDENTS

1 TO SMALL EXTENT 20 20

2 TO FULL EXTENT 56 56

3 TO GREAT EXTENT 24 24

  TOTAL 100 100

% OF RESPONDENTS

60

50

40

30 56
20

10 20 24

0
1 2 3
Small Full Great

Interpretation:

About 20% of employees has a small extent of opportunity to apply

newly acquired knowledge and skills. 56% of the employees has a full extent and 24% of the
employees has a great extent of opportunity to apply newly acquired knowledge and kills.

69
 13) What is the overall impression of the Organization?

(a) Excellent (b) Good (c) Satisfactory (d) Poor

NO.OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS

1 EXCELLENT 0 0

2 GOOD 60 60

3 SATISFACTORY 40 40

4 POOR 0 0

  TOTAL 100 100

% OF RESPONDENTS

0% 4
0% 1

40% 1
3 2
2 3
60% 4

Interpretation:

About 60% of the employee’s opinion is good on the overall impression

of the organization. 30% of the employees were Satisfactory and 0% of the employees were
excellent and poor on the overall impression of the organization

70
 14) Are there any recreational programs/events at your work place?

a) Yes

b) No

Particulars Response (No of persons)

Yes 30

No 70

80

70

60

50

40 Particulars
Response (No of persons)
30

20

10

0
1 2

Interpretation:

30 employees are said that there are recreational programs/events at your work place
And 70 said that there are no such programs.

71
 15) As per your opinion which of the following cause the major loss?

a) Positive Stress
b) Negative Stress
c) Both of them
d) Lack of competencies over the job

Particulars Response (No of persons)

Positive Stress -

Negative Stress 22

Both of them -

Lack of competencies over the job 78

90

80

70

60

50

40

30

20

10

0
1 2 3

Interpretation:

22 said that Negative stress causes major loss and 78 said that Lack of
competencies over the job cause major loss.

72
16) Do you setup reasonable and attainable goals when you have a large project to
computer?

a) Yes
b) No

Particulars Response (No of persons)

Yes 88

No 12

100
90
80
70
60
50 Particulars
Response (No of persons)
40
30
20
10
0
1 2

Interpretation:

88 respondent’s setup reasonable and attainable goals when you have a large
project to computer and 12 say No.

73
FINDINGS
 The training and Hr Policies program in DR REDDYS is focused on new and old
employees.

 Training program is conducted quarterly.

 HRM Policies program in DR REDDYS is based on the performance and seniority.

 The HRM Policies program in DR REDDYS is also the company response to new
innovation and upcoming technologies.

 The goal of the program is mainly to improve the job related skills.

 It has been observed during the study that most of the employees expressed the need for
each employee to attend the training program least once in a year.

 Most of the trainees supported external faculty rather than internal.

 The job security is not been effected by the training program being undergone.

 The training program is very much relevant to the present nature of work.

74
CONCLUSIONS:
In the above perspective, the present chapter makes an attempt to draw some conclusions. It
should be confessed here that the investigator is conscious of the limitations of the study and
the conclusion drawn on the basis of the sample from a single unit cannot be generalized
about the entire manufacturing sector.

The study examines the readiness for employee empowerment in six aspects, namely
effective Communication, Value of people, Clarity , Concept about power, Information and
Learning.
A perusal of data pertaining to combination makes us to conclude that the Executives have
agreed to the effective down ward communication flow, which is a prerequisite for
empowerment.
With regard to value of people, the analysis leads to the conclusion that the Executives give a
reasonable value to the Human Resources in the Organization. However, in respect of
concept about power, they are somewhat agreed to share the power.
As far as information sharing with lower rungs is concerned, they are very positive.
One significant conclusion with regards to learning opportunities, which is a basic for
empowerment, is that the executives are favorable and feel that sufficient learning
opportunities should be there for the rank & file.

75
SUGGESTIONS

 Training and controlling program may be arranged so that each of the employees under
goes it at least once in a year.

 The training sessions should be handled by both the internal and external faculty so that
it provides more comfort and also the knowledge of the external environment.

 The modern methods of training should be used so as to have a competitive edge in the
market place.

 The organization should also have high emphasis on the accuracy of performance in the
training program.

 Training should be given to all groups at all levels to improve the efficiency on the whole.

 The training programs conducted should be need training programs for improvement of
the skills and the knowledge.

 All the employees should be provided a minimum and basic technical knowledge.

76
BIBLIOGRAPHY

S.NO AUTHOR NAME OF THE BOOK

1. P. SUBBA RAO : Personnel/Human resource Management.

2. KOONTZ : Essentials of Management

3. DECENZO & ROBBINS : Human Resource Management

4. Human resource & Personal Management by Aswathappa.

Websites:
www.google.com
www.hrindia.com
www.drreddys.com

77
 QUESTIONNAIRE

1)What is Police According to You?

(a) Psychological response

(b) A feeling experienced by a person
(c) Demand or Pressure
(d) Emotional effect

1) Do you feel that training programmers are necessary for employees?

(a) YES

(b) NO

2) Training &development programmers affect employees in getting promotion.

Do

you agree?

(a) Agree

(b) Disagree

3) Are you satisfied with present HRM Policies following in your organization?

(a) YES

(b) NO

4) Are you satisfied with working conditions in your organization?

(a) YES

(b) NO

78
 5) Did Organization give sufficient freedom to express your views and
suggestions?

(a) YES

(b) NO

6) Does your management give you recognition for good results?

(a) YES

(b) NO

7) Duration of training & Development programmed is sufficient?

(a) YES

(b) NO

8) Do you think that incentives are needed for attending training programmers?

(a) YES

(b) NO

9) Duration of the Strategy of individual employee programmed is:

(a) Short term

(b) Medium

(c) long term

10) Do you have promotional policies in organization?

(a) YES

(b) NO

11) Will you have an opportunity to apply your newly acquired knowledge and
skills?

a) To a Small extent

(b) To a Full extent

(c) To a Great exten

12)What is the overall impression of the Organization?

79
 (a) Excellent

(b) Good

(c) Satisfactory

(d) Poor

13)Are there any recreational programs/events at your work place?

a) Yes
b) No
14)As per your opinion which of the following cause the major loss?
a) Positive Stress
b) Negative Stress
c) Both of them
d) Lack of competencies over the job
15)Do you setup reasonable and attainable goals when you have a large project to
computer?
a) Yes
b) No

80