PHARMACEUTICAL INDUSTRY•India is the world's third-largest in terms of volume  •Rs 25,000 crore (USD 5 million) market share.• It is a net exporter with about 8 per cent market share of the USD 340 billion global. 

•The pharmaceutical manufacturing units are largely concentrated in Maharashtra and Gujarat. •States account for around 44% of the total number of pharmaceutical manufacturing units in India.

Presentation on Modern Pharmaceuticals Ltd

ByThakur Shruti Singh

13MBMA65

MAHARASHTRA INDUSTRIAL DEVELOPMENT CORPORATION (MIDC)

• A project of the government of Maharashtra state in India and is the leading corporation of Maharashtra. It provides businesses with infrastructure such as land (open plot or built-up spaces), roads, water supply, drainage facilities and street lights. Mr Bhushan Gagrani, IAS, is the CEO of MIDC.

• MIDC has developed specialised parks based on sectors such as: Pharmaceuticals, Transportation, Textile Electronics, Information Technology etc.,

GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)

multilateral agreement regulating international trade.

 

Modern Pharmaceuticals Limited

•Its located in MIDC Marol Mumbai

•Is deep routed in Pharmacy Industry and deals with pharmaceutical machinery 

•Holds franchises from several Indian firms

•With a strong dedicated sales team and high  market growth since 1993

ABOUT THE COMPANY:

GIST• 1995-1997– Revenue 500%– Incentives 200%– Salaries 100%

• 1997– Attrition 10%-25%

• 1998– Analyzed the quarterly figures – the sales of 4th

quarter ,1997 were 23% lower than the 3rd Quarter and this in turn was 40%

• Disagreement between BP and PD

• PD wrote a stiff letter against BP to GM (Head of HR)

  

• Disagreement on current Appraisal System between Prakash

Desai(Senior Manager Sales) and Bakul Parikh(Manager Sales)-

1997

• Is there a need for change in PAS?

• Lack of Ownership

India: primitive stage - 20th Century -foreign countries1900-1960 To control cheap drugs in market, Government passed the Poisons Act 1919.

1960-1970 The market share was dominated by multinational companies very few Indian manufacturers were present.

The Indian Pharmaceutical industry was in an early stage of growth.

1970-1980 Government took control for the medicines regulation and issued few acts and rules.

Indian Patent Act 1970--local companies began manufacturing products/ drugs 1) increased exports to countries Russia, Africa, etc 2) Export of Bulk drug post patent expiry

1990-2000 The pharmaceutical industry has observed a rapid expansion of domestic market and during same era globalisation happened.

India joined Paris Cooperation Treaty (PCT) in 1999 and implemented product patent effective from Jan 1, 2005.

2000-present This period is considered to be the Innovation and Research era.

PD rises sales

Approached GM

PD Disagrees BP Addresses

ProblemModern 

pharmaceuticals

1997

PD AND BP DISCUSSION

AS A HEAD HUMAN RESOURCE MANAGER

SOLUTION FOR BP AND PD

Methodology for Team Building• Bring back Ownership• Experiential games• Role plays• Group work• Discussions• High experiential activity

INDUSTRY RELATIONS ACT FOR MISCONDUCT

• The said sub-clause reads as fol- lows: "In awarding punishment by way of disciplinary action the authority concerned shall take into account the gravity of the misconduct, the previous record, if any, of the employee and any other aggravating or extenuating cir- circumstances that may exist. Where sufficiently extenuating circumstances exist the misconduct may be condoned.

• Hence this can only be taken care off by Industry Relations Officer

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SET DIMENSIONS FOR PERFORMANCE

Key result area #1 Business Plan Achievement 40%

Key result area #2 People development 10%

Key result area #3 Competencies 40%

TAYLOR’S DIFFERENTIAL PIECE RATE PLAN(to calculate insentives of the Employees)

Workers No of Units CompletedIn Allotted Time

% of Efficiency

Total Amount Received

Basic Piece Rate

Effective Piece Rate

Because we cannot have a fixed pay system in sales sector ,incentives would bring back the motivation in the employees to achieve their targets or even exceed them.

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•Inflation rate factor

•Market potential (what of individuals worth according to his/her expertise, job experience etc.)

•Matching with his/her present career path

•Personal development of an individual

•Sales rewards

PARAMETERS USED AS A BASE FOR REWARD SYSTEM

SUGGESTION:MANAGING BOTTOM PERFORMERS

Prepare robust 30-90 day Performance Improvement Plan (PIP) – include specific, measurable actions with clear timelines

Guiding Principles

– Longer for Senior people with newly identified performance issues.

– Shorter for more junior people, or people with a history or pattern of performance issues.

Review & Take appropriate actions

–If PIP results completely on-track, then align back to KRAs for the role.

–If results not on track, but demonstrates maturity and drive to improve performance, revise PIP with shorter timelines (e.g. 30-60days)

–If results not on track, and does not demonstrate enough drive to improve performance, exit. – Failure, exit Guidelines

EXAMPLES• TATA MOTORS:

-They have implemented KRA’s on quarterly basis   and aliened them with business objectives and   achieved remarkable results.-Employees who met these KRA’s exceptionally well were 

give bonus twice a year.

• COCO-COLA:-Implemented KRA’s specially in Sales sector and     could 

achieve the targets.-Performance was rewarded on monthly, quarterly    and 

yearly basis.