Report on Square Company Limited

Introduction

Square company is one of the most and largest company in our country. They have several branches all over the country providing and distributing product and services. Now-a-days they capture most of the market shares of our country. They have a reputation name in the pharmaceutical industry of Bangladesh for manufacturing quality medicines for more than four decades. SPL made its debut in a humble way in 1958 from a small house of the village Ataikola near Pabna. Some big concerns like Square Consumer Products Ltd., Square informatics and Square Hospitals Ltd. Incorporated at that time; square was joined with a management agreement with Burmungrad Hospital International of Thailand for the management of Square Hospitals ltd. Square today is a corporate giant active in divergent business and industrial fields. Its present unassailable status is the outcome of its successful diversification whether related diversification or unrelated. Our objectives are to conduct transparent business operations within the legal & social frame work with aims to attain the mission reflected by our vision. Our Mission is to provide quality & innovative healthcare relief for people. Our vision is leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization. As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management. So it is clear to us that SCL a pivotal and most contributing company in our country for govt. as well as for our economy.

 Historical Background & Growth of the SPL

Square Pharmaceuticals Ltd., is the largest pharmaceuticals company of Bangladesh, is a reputed name in the pharmaceutical industry of Bangladesh for manufacturing quality medicines for more than four decades. SPL made its debut in a humble way in 1958 from a small house of the village Ataikola near Pabna.

The first proprietary medicine was introduced in 1959 under the name of Easton’s Syrup, when the number of working people was 12, turn over was Tk. 55000/- and occupied a floor space of 3000 sq.ft. Mr. Samson Chowdhury, the owner of the transferred the newly established company to Pabna where a few people were accepted as co-workers accumulate more capital for smooth operation of the company. The first processed tablet was introduced in 1962 under the generic name Santonin. In the next year the introduction of Pathedine injection accelerated the growth of the firm with a rapid expansion of business turnover. In 1964, the annual turnover of the company rose to Tk. 1 million and the Square Pharmaceuticals was converted into Private Limited Company.

The company continued to engage itself in manufacturing of both official’s preparation and a range of proprietary items. In the mean time the company had been on the lookout of an acquiring know-how and expertise from outside for manufacturing and marketing of more sophisticated products through join venture and collaboration. The company took necessary steps in adopting a strategic plan to expand its manufacturing facilities to produce wide range of essential items within the parameter of the WHO (World Health Organization) recommendations.

This enabled the company to market a wide range of products to fill up the gap created by the new drug policy, in 1982, when turnover reached to Tk. 2240 million and number of people employed increased to nearly 400. In 1985 Square become the market leader in pharmaceuticals sector. As a pioneer, SPL has been exporting its antibiotics and other products to UK, Singapore and other countries since 1986. In I987, Square set up new factory to meet expanding market demand.

CHRONOLOGY SINCE INCEPTION

VISION:

We see business as a means to the well-being of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

MISSION:

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

OBJECTIVE:

Our objectives are to conduct transparent business operations within the legal & social frame work with aims to attain the mission reflected by our vision

SQUARE QUALITY POLICY:

• Ensure strict compliance with WHO cGMP standards and local regulatory norms in every phase of sourcing & procuring quality materials, manufacturing, quality assurance and delivery of medicines
•  Ensure all activities through documented Quality Management System (QMS) complying International Standard requirements of ISO 9001 through continuously Developing Human Resources by regular training and participation.
• SQUARE is committed to undertake appropriate review, evaluation and performance measurement of processes, business activities and quality Management System for Continual improvement to ensure highest standard, customer satisfaction developing Human resource and company’s growth.

SPL MANAGEMENT:

Types of ownership:

SPL made its debut in 1958 as a Partnership Firm with four partners. Afterward with rapid expansion of business turnover in 1964, SPL converted into a Private Limited Company. In 1994 SPL converted into a Public Limited Company and floated public share with highest premium.

Board of Directors:

Management Committee:

 Management Hierarchy:

Non Executive-Hierarchy:  

Corporate Governance:

Top Management:

As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management.

Executive Management:

The Managing Director heads the Executive Management, the Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by the Board of Directors. The Executive Management operates through further delegations of authority at every echelon of the line management. The Executive Management is responsible for preparation of segment plans/sub-segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies with appreciation for exceptional performance. These operations are carried out by the Executive Management through series of committees, sub-committees, ad-hock committees, standing committees assisting the line management.

WORK FORCE:

THE KEY DEPARTMENTS OF SPL:

1.       Product Management Department (PMD)
2.       Sales Department
3.       Medical Services Department (MSD)
4.       Accounts & finance Department
5.       Personal & Administration (PAD)
6.       Information Technology (IT) Department
7.       International Marketing Department
8.       Marketing Supply Chain Management
9.       Technical Service Department (TSD)
10.       Distribution Department
11.       Human Resource
12.       Share & Corporate Affairs
13.       Commercial

Functions of Departments:

Responsibility of Product Management Department (PMD):

• Preparation of marketing plan
• Preparation of printing promotional materials.
• Replying to quarries from the doctors and as well as the fiend forces related to a particular brand.
• Preparation of packing and packaging materials.

Responsibility of Medical Services Department (MSD):

• Provide medical information to the doctors’ parallel to the field force engaged in promotion of the SPL.
• Performing the medical promotion like direct marketing of publications, free distribution of medical newsletters, free videos.
• Continuous Medical Education (CME) for graduate doctors with alliance of Sales Department.

Responsibility of Personal & Administration (PAD):

• Recruitment of employees
• Promotion of employees
• Transfer of employees
• Retirement of employees’ bill with remuneration, increments, and other fringe benefits namely house rent, allowances, insurance’s, profit bonus, etc.

Responsibility of Accounts and Finance Department:

• Maintains all the accounts like recording of transaction, preparation final accounting reports, costing and budgeting, taxation, bookkeeping’s, providing funds to the projects etc.
• Maintaining accounts receivables accounts, which is broken down into each market of SPL and bank accounts.
• Preparation final accounting report for performance analysis of SPL.

Responsibility of Information Technology (IT) Department:

• Providing computer and other related accessories supports to all the user
• Maintenance of server and ensure smooth LAN operation

• Providing up to date technical and software support to all the sectors of SQUARE
• Development and maintenance of centralized databases and provide routine and ad hoc reports for management decision making.

Responsibility of International Marketing Department:

• Exploration of new markets all over the world
• Operating of export business in the different countries
• Provide training to field forces in overseas countries
• Provide all types of documents for registration of SPL’s products in overseas countries.

Responsibility of Supply Chain Management: 

• Purchase of raw materials, and packaging materials
• Purchase of machinery and equipments
• Purchase of chemicals, as advised by the department
• Purchase of stationary items and office applies.

Responsibility of Distribution Department:

• Ensure smooth distribution of products to all over the country
• Collection of payments from the customers
• Performs functions as the representative of SPL at the depot level.
• Maintenance of vehicles and depots.

THE EXISTING PRODUCTS:

The formulation plants are producing wide range of dosage forms like –

Spray, Drops, Ointment

Chemical Division started commercial production in 1995. From the year 1997 it started it’s full-fledged production and marketing to all top pharmaceuticals within the country including Aventis Pharma, Novartis Bangladesh Ltd., Glaxo Smith Kline, ACI Ltd., Reckitt & Colman, Beximco Pharmaceuticals Ltd., The Acme Laboratories Ltd, Eskayef Bangladesh Ltd., Opsonin Chemicals, Renata Ltd., Essential Drugs Co. Ltd. etc. with good reputation and loyalty.

OPERATION:

Product/service offering (Square Group)

Distribution Channel:

SQUARE’s NATIONWIDE DISTRIBUTION

Distribution Department at a Glance

Objective:

Supply Right products in Right place in Right time

History: SPL opened first Depot at Barisal in 1995

Resources:

EXPORT:

SQUARE started exporting finished pharmaceutical formulations since 1987. And it is the pioneer in pharmaceutical export from Bangladesh.

SQUARE offers more than 200 molecules in over 400 formulations, from its 3 WHO GMP-compliant manufacturing plants.

Future Focus:

Strengthen its position in the present markets

Work is in progress to enter into regulated markets in Europe and

United States

Work is in progress for the site approval by UK.

Current Export Market:

Annual Report Highlights:

Following is the Total assets, Total Liabilities, Total Owners’ Equity, Net Working Capital, Book Value of the Firm, Cash flow from assets and Cash flow from creditors from 2001-02 to 2004-05.

From the data obtained we can say that the company is liquid but we cannot conclude anything as we do not have the Industry standard data.

VIP status company for Highest Tax Paying in Bangladesh

•       National Board Of Revenue awarded VIP status to SQUARE for becoming the highest taxpaying Public Limited Pharmaceutical Company of Bangladesh.
•       Mr. Samson H. Chowdhury, Honourable Chairman of SQUARE Group is the 4th Highest Taxpayer of Bangladesh.
•        Mr. Samuel H. Chowdhury, Honourable Vice Chairman of SQUARE, Mr. Tapan Chowdhury and Mr. Anjan Chowdhury, Honourable Managing Director of SQUARE are among the top 25 individual taxpayer of the country and has also given VIP Status

HUMAN RESOURCE: Practices & Climates

SQUARE, with its progressive business outlook, believes and practices corporate work culture with a classic blend of efficiency and equity. SQUARE believes in company growth by increasing efficiency level of employees and for that offering excellent environment and support for skill and knowledge up gradation. SQUARE values productivity as the spontaneous contribution of Human Resources. Strategic Human Resource Development Programs are the energy sources for SQUARE HR for running towards the zenith of success. Flow of clear and specific information and justification of queries play the vital role to ensure the market reputation of SQUARE as the most trusted and transparent company and it enriches the motivation level of HR who are the real contributors and owners of his / her own jobs. At SQUARE, HRD symbolizes the unique blending of professionalism as well as sharing the stress and success equally like a family where every member has deep concern, feelings and pride for their own company SQUARE. HR ensures the strong supporting role to develop & implement HR policy guidelines for ensuring uninterrupted operation and spontaneous participation to achieve organizational objective as well as fulfillment of employee needs. HR is maintaining an effective way to deal with labor union and still no unrest has been recorded as dispute. Personnel working here are taking care of SQUARE as if it is their own family. Employee-employer relation is cordial and supporting always.

KEY PERSONS OF HUMAN RESOURCE DEPARTMENT:

Mr. Anjan K. Paul – Deputy General Manager Head of HRD

Mr. R. K. Banarjee- Manager, Public Relations

Mr. Allen A. Baroi- Manager, HRD

Mr. Ali Hossain- Manager, HR (Dev. & Training)

Lt. Col. (Retd) Jainul Abedin- Manager-HR, Pabna Unit

Mr. Mokbul Hossain, Sr. Executive-HR, Dhaka Unit

HUMAN RESOURCE DEPARTMENT:

Future Plan and Strategies: (Focus areas) 

•   To implement Training manual according to training policy
•   To implement individual Training software link with HRIS
•   To implement counseling cell to solve employee problem and  motivation
•   To Take a step to organize yearly training budget
•   To prepare Electronic folder on time-demanded topics
•   To arrange birthday wishes of employees step by step
•   Identifying Training Needs among all employees of SQUARE Group.
•   Converting business needs into training needs.
•   Define core competencies required to perform the job efficiently.
•   Identify areas of knowledge, skill and attitudes (KSA) among all employees.
•  Taking responsibilities on continuous development of KSA.
•   Participating job fair or any event where HR needs to represent the company/ SQUARE Group.
•   Any recent development or any modern HR issues, we can work on and inform to others.

1.       Sorting or screening
2.       Written test/Interview
3.       Preliminary interview

Thus the whole recruitment process comes to an end.

TRAINING:

Training is a planned, structured, organized and time bound process which results in the individuals acquiring appropriate skills, knowledge, attitudes and values (SKAV) that directly complement their performance and also resulted in the organizational effectiveness. HR(D&T) of SQUARE Pharmaceuticals believes that appropriate form of training and education contribute to the development of its staff by the way of upgrading their job skills and develop their potential and build their capacity to meet future needs of SQUARE, and to the mutual benefit of SQUARE and themselves.

All staff irrespective of male or female, senior or junior, will undertake training (also attend workshop) on different issues at least once within two years to develop an understanding of its relevance to their work depends upon Training Needs Assessment.

1.   The training or development interventions is based on need assessment;
2.   The training/development intervention is within the plans & budget;
3.   Employee’s absence from the field/ office does not affect the program/ office work;

Staff in present job needs enhancement of his/her skill, knowledge,

Certificate Policy for in house training program:

•   If tenure of the in house training program at company premises or outstation is 12 hours or more then certificate will be provided.
•   In house training less than 12 hours will be regarded as workshop or presentation session, so participants will not be awarded with certificate.

Training Others

As part of organization goal of strengthening field force of the organization, HR(D&T) of SQUARE  Pharmaceuticals offer/arrange various training like off-job training, on-job training, refresher course to Targeted/interested group all over the year.

BENEFITS TO EMPLOYEES:

BACKGROUND:

An organization can be a successful and a challenging one in terms of its performances only if performances of employees are directed towards fulfillment of organizational objectives. Employees’ effort will lead to performance and performance will lead to rewards but employees need to be motivated first. The more positive the reward the more likely the employee will be highly motivated. If the performance of the employees is good then the good performance of the organization will come into results

Herzberg surveyed found that one set of job and personal factors produced good feelings and these are known as hygiene factors. They are- Salary, Working condition, Technical supervision, Job security, Company policies, and Interpersonal relations. Hygiene factors (extrinsic factors), if absent or inadequate, caused job dissatisfaction. Managers can prevent job dissatisfaction but cannot motivate employees to perform any better by providing these factors,

The second set of factors was described by Herzberg as motivators (intrinsic factors) on the job behavior. They are- Achievement, Advancement, Growth opportunities, Recognition, The job itself, and Responsibility. While hygiene factors deal with external features of the job, motivators are job content oriented, tied to the job itself. The absence of motivators does not lead to dissatisfaction while the lack of hygiene factors may lead to job dissatisfaction.

Square Pharmaceutical Ltd is the first and leading pharmaceutical company in this country. It is maintaining a strong leadership position in the local pharmaceutical industry since 1958. And now Square Pharmaceutical (SPL) is set on becoming a high performance global player in the field. SPL is concerned about the satisfaction level of their employees for better improvement, higher productivity as well as to produce quality product by providing different types of benefits and facilities. The company has obligations to all the employees through a pay-package composing salary/wages, allowances, bonuses, and profit participation, leave/salary and retirement benefits.

OBJECTIVES:

The overall objective of the research paper is to identify the satisfaction level of the employees’ of Square Pharmaceuticals Ltd.

•   To identify the employees satisfaction level of Square Pharmaceutical Ltd. regarding organization characteristics
•  To determine whether they are satisfied with their job regarding job characteristics?
•   To identify whether they are satisfied with their job regarding compensation and benefits?
•   To find out the satisfaction level of employees with their job regarding working environment?
•   To identify whether they are satisfied with their job regarding communication?
•   To identify the satisfaction level of employees regarding promotion and growth in the organization.

SCOPE OF THE STUDY:

The frontier of this research was to measure employees’ satisfaction level of Square Pharmaceuticals Ltd. regarding organizational characteristics, communication, compensation and benefits, working environment and job characteristics. It identified the satisfaction level of the employees’ of Square Pharmaceuticals Ltd.

METHODOLOGY:

Research design

The research is exploratory in nature because the attempt of the research paper is to identify whether the employees of Square of Pharmaceutical Ltd. are motivated in the organization or not. At first, the project paper has described the organizational background, objectives, scope, methodology and literature review. Then the most important part of the project paper has been covered. This part is known as analysis and finding through which mostly the objectives of the project paper has performed. Lastly, recommendation and conclusion have given.

Sampling unit

In this organization there are many employees. So the sampling unit of the research paper was each level of employees who are working as Manager, Executive, Non-Executive and Field Staff in Square Pharmaceuticals Ltd.

Sample Size:

To conduct this research project sampling size will be

Hence, required sample size for conducting this research project is 68 respondents those who are working in different level in SPL.

Sampling Procedure:

For conducting this research project the probabilistic sampling procedure is followed in order to select the sample which is Simple random sampling.

DATA SOURCE:

In order to collect the aforesaid information and data followings potential sources has been used:

• Primary source:
  • Interview of the employees of Square Pharmaceuticals Ltd. at different level. They are- Executive, Non-executive, Manager and Field staffs.
• Secondary sources:
  • Syndicated sources: 
    • Printed papers – annual report 2005-2006, corporate brochure, and profile.
    • Company’s Web Site- www.squarepharma.bd.com

Data processing and analysis

After collecting all the required data, the question area has been coded and data processed by a specific form in SPSS software for analyzing purpose. This soft-ware also had been used to prepare graphical representation and the graphs have been interpreted accordingly.

LIMITATION:

The first limitation of this research paper was that it has measured the satisfaction level of all employees who are working in different level of Square Pharmaceutical Ltd. The research did not cover like- financial situation, management system and the others. However, it did not concern about all employees of Square Group. It considered only the managers, executives, non-executive and field staffs of SPL. It did not concern others like- suppliers, shareholders and so on.

Statement by Manager:

Reasons of working as an employee in Square Pharmaceutical:-

•  Great remuneration for the employees
•   Company’s reputation
•   Flexible management
•   Believes of family concept
•   Freedom of work
•  Congenial environment
•   Transparent management
•   Career opportunity
•   Job Security

Suggested changes for the better improvement of the company:

•  Medical  facilities for both the employee and his/ her family should be introduced
•   Housing facility can be given to the employees
•  Interior design need to be change for employee motivation and increase of existing productivity
•   Separation of Engineers from Pharmaceutical and create the following departments:

Recommended changes for better Performance in related field:

• Changes in the procurement process (It should be in a sophisticated software to be more competitive in the current market)
• A well ERP structure should be developed to increase accountability and transparency
• Maintain quite and silent working environment
• Interior design need to be change for employee motivation and increase of existing productivity
• Special Training on computer
• Reduction of workload
• Organized proper training
• Assigned tasks should to be distributed equally
• Transparent performance evaluation and feedback
• Reduction of work load and also it should to be equally distributed among all the employees
• More technological support (Computer and Internet facility)

Suggestion for further improvement of the company:

• Special offer is required to retain high skilled employees
• Interior design of the office need to be changed
• The decentralized group portfolio should changed
• Reduce paperwork
• Salary review
• Performance incentives for the employees.

Statement by the Field Force:

Core competitors of SPL:

1)      Beximco Pharmaceuticals

2)      Incepta Pharmaceuticals

3)      ACHME

4)      Drug International

5)      Opsonin

6)      Orion

7)      ACI

8)      Aristopharma

9)      Reneta

10)  SK + F

11)   Noverties

Reasons of working as an employee in Square Pharmaceutical:

•   Good reputation of the company
•   The first and leading pharmaceutical company
•   Flexible and good management
•   Better working environment
•   Transparent business policy
•   Better and on time salary
•   To build better career
•   Salary is paid on time
•   Higher compensation
•   Good working environment

Facilities provided by Square Pharmaceutical Ltd. to their employees

•   5 festival  bonuses in a year
•   Quarterly incentives
•   Motor Cycle Facility
•   50 percent on motor cycle loan
•   Provident fund
•   Workers participation fund
•   Profit share
•   TA and DA
•   Mobile facility
•   Bonus and incentive
•   Group insurance policy

ANALYSIS:

Out of the entire respondent 17 percent respondents are highly satisfied with the lunch facility given to the employees and 25 percent of them are satisfied. On the other hand, 33 percent of the respondents are highly dissatisfied and 8 percent of them are dissatisfied and not satisfied with the lunch facility provided by Square Pharmaceutical Ltd. to their employees.  So there is dissatisfaction with the lunch facility.

Every organization has its own organizational culture. SPL also has its own environment and culture. 33 percent of the respondents are highly satisfied in term of organizational culture and environment of the company and 25 percent is satisfied. However, 17 percent of the entire respondents are somehow satisfied and not satisfied in term of the present organizational environment and culture in the department. Only 8 percent of them are dissatisfied with it.

Out of the entire respondent 83 percent of the respondents are satisfies with the present job description and 17 percent of the respondents are not satisfied with the present job description.

FINDINGS:

Manager:

Satisfaction:

There is no significant dissatisfaction with the present salary structure in Square Pharmaceutical Ltd. 67 percent of the managers are satisfied with the current salary scale.

The organizational environment and culture that the company has created is able to satisfy the employees. In term of organizational environment and culture, 33 percent of the respondents are highly satisfied and 25 percent of them are satisfied but on the other hand only 8 of them dissatisfied and 17 percent of them are not satisfied.

In term of leave facility there is a huge acceptance by the employees. In this practice the company is success because there is no dissatisfaction with this facility. 67 percent of them are satisfied and 25 percent of the respondents are highly satisfied with LFA policy

Dissatisfaction:

There is dissatisfaction regarding the opportunity of advancement and promotion policy of the company. 8 percent of them are satisfied with this policy and practice where 25 percent of them are not satisfied with it.

Survey indicates that respondents are not pleased with the exiting lunch facility provided by the company. 33 percent of the entire respondents are highly dissatisfied, 8 percent of them are dissatisfied and also 8 percent of them are not satisfied with the facility where only 25 percent are satisfied with the facility.

The employees are getting benefits according to their job responsibilities and duties. 33 percent of them are not satisfied and 25 percent of them are dissatisfied with the package in comparison to their job responsibilities. However 25 percent of them are satisfied.

In term of the annual appraisal of the company the employees are not actually satisfied. Here, 17 percent of them are satisfied but 33 percent of them are not satisfied with it.

(*Note: The parameter that are using in collecting and evaluating the satisfaction level of the employees are as follows

RECOMMENDATION:

Succession Planning can be introduced in the company before the retirement of any employee. This process will stop contract employment policy because through contract employment the employee is not allow getting all the facility and benefits from Square as other employees which lead to job dissatisfaction.

The interior design of the office should to be changed to be able to compete with other national and multinational company in this country and also it will motivate the employees and retain high skilled employees.

Paper work need to be reduced and increase the computer skilled of the existing employees to do the work more smoothly and faster which took  more time before using the modern technical. Make sure the proper utilization of working time by increase the communication in and outside the company.

 The company should revise the recruitment and selection policy for the executive level and also further research is needed to find out the reason of their dissatisfaction which will be easy in solving problems because the manager, non-executive and field forces are satisfied.

Findings indicate that there is dissatisfaction among the manager, executive and non-executive level in term of opportunity for advancement and promotion. So, this practice need to redesign and check and should be improved through adopting effective policy to satisfy employees.

To take the necessary steps and action, to increase employees’ satisfaction level and to recover the above problems, further research is needed for the company which will include the whole employees of Square Pharmaceuticals Ltd to identify the effective and efficient policy, strategy and action.

CONCLUSION:

Square Pharmaceuticals Ltd. is the largest and leading company in the pharmaceuticals industry for more than four decades by manufacturing quality products. It diversified in different area and sector of the local business field. The other square concerns are as pharmaceuticals, toiletries, garments, textiles, information technology, health products, food products, hospitals etc. The company always concerns with the quality of the product for their customer and also increases the profit for its shareholder and stockholder and also the employees.

In order to produce the best quality of any product the employees of the company must be skillful, knowledgeable, and fill of being as they are the members of one and same family for their better improvement. However, SPL is not concerned only on the quality of the product and the reputation of the company but they are also concerned about the satisfaction level of their employees for better improvement, higher productivity as well as to produce quality product by providing different types of benefits and facilities.

However, from the research paper it is found that most of the employees are satisfied with the facilities giving to them. Only few factors are not able to satisfy the employees. This is also found through conducting this research that there is both satisfaction and dissatisfaction in term of LEA facility, recruitment and selection policy, annual appraisal and also the non-executive employees are not dissatisfied with the facility that the company provides to.

Through the research paper it is clear that Square Pharmaceutical Ltd. is an established, significant and highly respected in term of the product quality and very much concerned about the satisfaction or motivation of the employees.