A PROJECT ON

HR POLICIES

AT

DR.REDDY’S LABORATORY

NEEHARIKA AWASTHI
(HALL TICKET NO: 2122-16-672-200)

Project submitted in partial fulfillment for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By

OSMANIA UNIVERSITY, Hyderabad – 500009

AURORA’S POST GRADUATE COLLEGE (MBA)

Moosarambagh, Hyderabad – 500036
2016-2018
 ANNEXURE-I

STUDENT DECLARATION

I hereby declare that this Project Report titled “HR POLICIES”

submitted by me to the Department of Business Management, O.U.,
Hyderabad, is a bonafide work undertaken by me and it is not submitted to
any other University or Institution for the award of any degree diploma /
certificate or published any time before.

NEEHARIKA AWASTHI Signature of the student

(2122-16-672-200)
 (ANNEXURE –II)

This is to certify that NEEHARIKA AWASTHI bearing Hall TicketNo:2122-16-

672-200 is a bonafide student of the college in Master of Business
Administration. The following are the details of evaluation of the student’s
performance during the project methodology, tools training and reviews
during the project work.
Over all Grading: A:Excellent, B:Very Good, C:Good, D:Satisfactory, E:Poor

Sl.No Details of the Test Conducted Grade

1. Performance in domain knowledge test

2. Performance in tools knowledge test

3. Performance in Project Seminar I on

Objectives, concepts and understanding
4. Performance in Project Seminar II on
Methodology, Data Collection and Analysis
5. Performance in Project Seminar III on
Inference, suggestions and Conclusions
6 Project comprehensive seminar: complete
understanding, presentation skills,
recommendations

This project titled HR POLICIES which is being submitted in partial fulfillment

of the requirements for the award of MBA program of Department of

Business Management of Osmania University,Hyderabad was carried out

under my guidance .This has not been submitted to any other University

/Institution for the award of any Degree / Diploma.

Signature of the Student: Signature of the Guide:

Signature of HOD: Signature of Principal:

ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of gratitude to the

authorities of DR REDDY’S LABORATARIES for giving me the opportunity to undertake this

project work in their esteemed organization.

My sincere thanks to Honourable Director Dr. B. MOHAN KUMAR, Head of Department

Mr.G.N.SATHISH KUMAR and my project guide MRS. JAYALAXMI for the kind encouragement
and constant support extended in completion of this project work.

I am also thankful to all those who have incidentally helped me, through their valued guidance,

co-operation and unstinted support during the course of my project.

Chapter No. Name of the Concept Page No.

NEEHARIKA AWASTHI

(2122-16-672-200)

CONTENT
 Introduction
Need of the study

Scope of the study

I
Objectives of the study

Methodology of the study

II Review of Literature

III Industry Profile & Company

profile

IV Data analysis &

Interpretation

V Findings,Suggestions &
Conclusion

Bibliography
 TABLE OF CONTENT

TABLES NAME OF TABLES PAGE NO

4.1 CALCULATION OF HR POLICIES

4.2 CALCULATION OF TRAINING PROGRAM

4.3 CALCULATION OF TRAINING AND

DEVELOPMENT PROGRAMS
4.4 CALCULATION OF HRM POLICIES IN
ORGANISATION
4.5 CALCULATION OF WORKING CONDITIONS

4.6 CALCULATION OF SUFFICIENT FREEDOM

4.7 RECOGNITION OF GOOD RESULTS

4.8 DURATION OF TRAINING AND

DEVELOPMENT PROGRAGM
4.9 CALCULATION OF INCENTIVES

4.10 DURATION OF POLICIES OF EMPLOYEES

4.11 PROMOTIONAL POLICIES

LIST OF GRAPHS
Figure Name Page
No No’s

4.1 PERCENTAGE OF RESPONDENTS

4.2 ATTAINABLE GOALS

CAUSES FOR MAJOR LOSSES

4.3

GOALS WITH LARGE PROJECTS

4.4

ABSTRACT
Using a number of empirical studies of human resource policies in
Fortune 500 companies, this article focuses on (a) the major
work/family problems faced by employees, (b) how work/family
programs affect productivity, (c) what trends are emerging among
companies, and (d) how a subsample of leading scientific
companies and universities are responding to work/family issues.
The seven major issues employees face are examined: child care,
elder care, work time and timing, relocation, job demands and
autonomy, supervisory relationships, and organizational culture.
The major characteristics of Stage 1 and Stage 2 companies are
compared, the later companies having more comprehensive and
multifaceted programs that are responsive to employee needs.
The research indicates that although some of the leading
corporations and universities are responsive to work/family
problems, many are still not aware of nor responsive to
work/family strain and conflict.
 CHAPTER-I
INTRODUCTION
 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

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.

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

• 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.

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.

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

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

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.
 CHAPTER-II

LITERATURE REVIEW
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 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
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
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 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, 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.

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 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

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.

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 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 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.
(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
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.

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.

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.

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
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.

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
 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?

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?
 CHAPTER - III

INDUSTRY PROFILE
 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
 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.
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.
 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.
 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

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.
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

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

 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.

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.
 COMPANY PROFILE

.
 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

 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.

 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.

 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.
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.

 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.

 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 into

discoveries difference in people’s lives. 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.

 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.
 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:

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:

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.

 • 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.

 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

 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.
 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.

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

Saumen Chakraborty, President-Corporate

Umang Vohara, Chief Financial Officer

VS Vasudevan, Head of Europe Operations.

 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.

• 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%.

 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.

73
 CHAPTER-IV
DATA ANALYSIS&INTERPRETATION

74
 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 5 6 7 8 9

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.

75
2) Do you feel that training programmers are necessary for employees?

(a) YES (b) NO

NO OF % OF
S.NO 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.

76
 3) Training &development programmers affect employees in getting promotion.
Do

you agree?

(a) Agree (b) Disagree

NO. OF % OF
S.NO OPTIONS RESPONDENTS RESPONDENTS

1 AGREE 100 100

2 DISAGREE 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.

77
 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.

78
 5) Are you satisfied with working conditions in your organization?

(a) YES (b) NO

NO OF % OF
S.NO 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.

79
 6) Did Organization give sufficient freedom to express your views and
suggestions?

(a) YES (b) NO

NO OF % OF
S.NO 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

80
 7) Does your management give you recognition for good results?

(a) YES (b) NO

NO OF % OF
S.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

81
 8) Duration of training & Development programmed is sufficient?

(a) YES (b) NO

NO OF % OF
S.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.

82
 9) Do you think that incentives are needed for attending training programmers?

(a) YES (b) NO

NO OF % OF
S.NO 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.

83
 10) Duration of the Policies of individual employee programmed is:

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

NO.OF % OF
S.NO 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.

84
 11) Do you have promotional policies in organization?

(a) YES (b) NO

NO OF % OF
S.NO 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.

85
 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

NO. OF % OF
S.NO 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.

86
 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

87
 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 3 4 5

Interpretation:

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

88
 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 Series1

30

20

10

0
1 2 3 4 5 6

Interpretation:

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

89
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

40 Response (No of persons)

30
20
10
0
1 2 3 4 5 6 7

Interpretation:

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

90
CHAPTER-V

91
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.

92
CONCLUSION:
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.

93
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.

94
 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

95
 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

96
4) Are you satisfied with working conditions in your organization?

(a) YES

(b) NO

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?

97
 a) To a Small extent

(b) To a Full extent

(c) To a Great exten

12)What is the overall impression of the Organization?

(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

98