CHAPTER I

INTRODUCTION

1. INTRODUCTION
Employee engagement is a property of the relationship between an organization
and its employees. An "engaged employee" is one who is fully absorbed by and
enthusiastic about their work and so takes positive action to further the organization's
reputation and interests.
An organization with 'high' employee engagement might therefore be expected to
outperform those with 'low' employee engagement, all else being equal Employee
engagement is a workplace approach designed to ensure that employees are committed to
their organizations goals and values, motivated to contribute to organizational success,
and are able at the same time to enhance their own sense of well-being.
There are differences between attitude, behaviour and outcomes in terms of
engagement. An employee might feel pride and loyalty (attitude); be a great advocate of
their company to clients, or go the extra mile to finish a piece of work (behaviour).
Outcomes may include lower accident rates, higher productivity, fewer conflicts, more
innovation, lower numbers leaving and reduced sickness rates. But we believe all three
attitudes, behaviours and outcomes are part of the engagement story. There is a virtuous
circle when the pre-conditions of engagement are met when these three aspects of
engagement trigger and reinforce one another engaged organizations have strong and
authentic values, with clear evidence of trust and fairness based on mutual respect, where
two way promises and commitments between employers and staff are understood, and
are fulfilled.
Although improved performance and productivity is at the heart of engagement, it
cannot be achieved by a mechanistic approach which tries to extract discretionary effort
by manipulating employees commitment and emotions. Employees see through such
attempts very quickly; they lead instead to cynicism and disillusionment. By contrast,
engaged employees freely and willingly give discretionary effort, not as an add on, but
as an integral part of their daily activity at work.

But is employee engagement something new, or simply old wine (long-standing

management approaches) in new (fashionable management-speak) bottles? Is it just the
latest management fad? We believe that while it does have clear overlaps with analytical
antecedents such as commitment, organizational citizenship behaviour, job involvement
and job satisfaction, there are also crucial differences.
An engaged employee experiences a blend of job satisfaction, organisational
commitment, job involvement and feelings of empowerment. It is a concept that is greater
than the sum of its parts.
Despite there being some debate about the precise meaning of employee
engagement there are three things we know about it: it is measurable; it can be correlated
with performance; and it varies from poor to great. Most importantly employers can do a
great deal to impact on peoples level of engagement. That is what makes it so important,
as a tool for business success.

Human resource executives in India continue to struggle with talent management

issues, particularly retention. The quest to find the best way to retain employees has taken
HR pundits through concepts such as employee review, employee satisfaction and
employee delights. The latest idea is Employee Engagement, a concept that holds, that,
it is the degree to which an employee is emotionally bonded to his organization and
passionate about his work that really matters. Engagement is about motivating employees
to do their best. An engaged employee gives his company his hundred percent. The
quality of output and competitive advantage of a company depends upon the quality of its
people. It has been proved that there is an intrinsic link between employee engagement,
customer loyalty and profitability. When employees are effectively and positively
engaged with their organization they form an emotional connection with the company.
This impacts their attitude towards the companys clients, and thereby improves customer
satisfaction and service levels. Most organizations realize today that a satisfied employee
is not necessarily the best employee in terms of loyalty and productivity.

NEED AND IMPORTANCE OF THE STUDY

Employees also should be shown that they are valued from their first day on the
job, MSPB said, and agencies should have mentoring programs to help them define their
roles. In addition, supervisors should use the various phases in the performance
management process to provide guidance and feedback and to tell employees how their
work contributes to the agencys overall mission. Engagement is important for managers
to cultivate given that disengagement or alienation is central to the problem of workers
lack of commitrnent and motivation. An organizations capacity to manage employee
engagement is closely related to its ability to achieve high performance levels and
superior business results. Some of the advantages of engaged employee are.

Engaged employees will stay with the company be an advocate of the company
and its products and services and contribute to bottom line business success. They will
normally perform better and more motivated. There is a significant link between
employee engagement and profitability. its builds passion, commitment and alignment
with the organizations strategies and goals increases employees trust in the organization.
Provides high energy working environment.
Inspire by promoting alignment and motivation not through orders, but via
messages and narratives that demonstrate the purpose of the organization. Report clearly,
frequently and with reach, keeping the company routine stable through the provision of
relevant information; Empower through educational experiences, the fundamentals of
brand culture. Plan, execute and evaluate a good strategy that considers brand value and
inspires creative activities / Leadership: Leaders need to be visible and in touch with
their front line staff a desk is a dangerous place to run an organization. Employee Voice
An empowered employee will have a voice. Where employee views are sought out they
should be listened to and visibly acted upon. Integrity - Behaviour throughout the
organisation is consistent with the stated values, leading to employee trust and a sense of
integrity.

OBJECTIVES OF THE STUDY

To examine the strategies adopted and practices followed in Dr. Reddys

Laboratory regarding employee engagement system

To examine the importance given by employees to their work & the level of their

satisfaction.
To find out whether the changes in technology in Dr. Reddys Laboratory have

been properly matched by training & development of its manpower.

To study the effectiveness of free flow of information between the management

and the employees.

To examine the effects of work culture/environment and ethos in Dr. Reddys

Laboratory on employees.
To find out whether the employees are being adequately compensated for their

service and labour.

To examine the quality of work-life of the employees in Dr. Reddys Laboratory .
To examine whether the welfare measures provided truly reflect the managements
philosophy and policy. To check whether the employee engagement survey

outcome is being implemented or not.

To suggest measures for improvement.

SCOPE OF THE STUDY

The study provides an insight into the most crucial problem of human resource
management that is retaining the employee. The study includes various strategies adopted
and proposed which provides a clear understanding to the various factors related to the
engagement and their interrelationship. A good understanding of the study and the usage
of its suggestions can help a great deal to the employers to reduce attrition. The engaged
employees and the organizations go that extra mile for each other realizing the benefits
that flow through an investment in such a relationship.
Thus, Employee engagement is a barometer that determines the association of a
person with the organization. Greater employee engagement is an elixir that organizations
have been searching to accomplish a variety of objectives: reduce attrition, enhance
performance, generate internal goodwill, greater employee branding, competitive pressure
etc. However, it appears that most of the strategies followed so far yield temporary feel
good factor at best, or have no impact, at worst. Therefore employee engagement
calendars have surfaced to inject the feel good factor at periodic intervals, typically
driven by centralized HR in large organizations with scope for some customization in
organizational units. Consistency and periodicity of events have led to employees
believing that such activities are not just flavors of the month which is a great step
forward; is it enough.
Employee engagement is the level of commitment and involvement an employee
has towards their organization and its values. An engaged employee is a person who is
fully involved in, and is enthusiastic about, his or her work. Such employees are attracted
to the top management with their responsibilities. Employee engagement is the most
important and valuable resource for every organization or institutions has in the form of it
employees. Effective employees can contribute to the effectiveness of the organization
competent and motivated people can make things happen and enable to obtain
organizational goals efficiently and effectively.

Engagement is demonstrated by

employee behaviors, such as a willingness to go "above and beyond," energy and

enthusiasm for their work, loyalty to the organization

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In this we study
the various steps that are generally adopted by the researcher studying his research
problem along with the logic behind them.
The general methods adopted are as follows.
1. Research design : Research Design is conceptual structure within which research is
conducted. It is needed because it facilitates the smooth sailing of various research
operations, thereby making research as effective as possible yielding maximal
information with minimal expenditure of effort time and money.
2. Sampling technique: A random sampling techniques was used to select the sample for
conducting the survey.
3. Sample Size: A sample size of 100 employees has been considered.
4. Data Collection: The task of data collection begins after the research problem has been
defined and research design is chalked out. For the purpose of study two kinds of data
have been used. They are:
(i) Primary Data: The data is gathered for the first time by the researcher questionnaire.
(ii) Secondary Data: This data is taken by the researcher from secondary sources,
internal or external- books, internet, journals and organization catalogues.
5. Data Analyses and Interpretation: Data from questionnaires has been tabulated by
using simple statistical techniques. Wherever possible, percentages and graphical
presentations has been worked out and displayed. Thus the suitable interpretations have
been drawn there.

LIMITATIONS OF THE STUDY

The research conduct was limited to Hyderabad region only.

Due to time constraints, more time could not be devoted to individual respondent.
A busy schedule of dealers / retailers also makes the collection of information a

very difficult one.

Full district was not covered as this is very tedious job to be done in 7 days.

However almost all main areas of the district were covered.

The projections are purely based on verbal meetings and may be influenced by

unprecedented factors.
While studying the above fact should taken into consideration.

CHAPTER II
REVIEW OF LITERATURE

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2. REVIEW OF LITERATURE
EMPLOYEE ENGAGEMENT
Employees who are fully engaged tend to work in offices that achieve better program
results, call in sick less often and stay with their agencies longer, according to a new
report by the Merit Systems Protection Board. The report, which is based on results from
2005 survey of nearly 37,000 employees at 24 federal agencies, found that despite
dwindling resources and increased pressure to improve programs, agencies can thrive if
managers connect with their employees.
CHALLENGES:
Engagement as a beneficial two-way relationship where employees and employers go the
extra mile for one another. Companies that get it right reap the rewards and so do their
employees, that the benefits of having happy staff are well-documented. But the challenge
for many organizations is showing that engagement brings a tangible return on investment
a process many companies find elusive.
FINDINGS:
A survey of 400 HR professionals conducted via the Personnel Today website, are
surprising. One in four organizations admitted that staff was not engaged. A similar
number said the situation had worsened in the past year. And 44 per cent said that tackling
engagement was an over whelming challenge.
SOLUTIONS:
The solution is that engagement cannot be addressed by a mechanistic approach. Each
situation is different and it comes back to the fact that employers and employees must
support each other.

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EMPLOYEE ENGAGEMENT
Employee engagement has become a growing management concern Engaged workers
make more money for the company. They contribute towards a healthy working
environment. They stay with the organization longer and are more committed to quality
and growth than are the other two groups of not-engaged and actively disengaged
workers.
CHALLENGE:
A Manager should spend ample amount of time with his subordinates. He should get the
individual to view his or her role from a broader perspective instead of from a narrow
task-oriented point of view. They can help employees clarify how they can achieve their
outcomes. Measurement of outcomes also becomes crucial. Good measurement includes
regular feedback, aligns with outcomes and matches the expectations for the role. An
effective leader helps the people to design and own their own goals. targets and
milestones. Great managers provide coaching to facilitate progress of their subordinates.
SOLUTION:
Provide the resources to solve problems and opportunities for people to develop their
potential
Give real recognition and reward. Provide Keep the pressure to perform and achieve more
with less realistic. Give Training to people how to resolve interpersonal conflicts promote
joy and appropriate humor within the office and help people to actively balance work and
home responsibilities.
FINDINGS:
The most striking finding is the almost 52% gaps in operating incomes between
companies with highly engaged employees and companies whose employees have low
engagement scores. High-engagement companies improved 19.2% while low engagement
companies declined 32.7% in operating income during the study period.

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13

EMPLOYEE ENGAGEMENT
An organizations productivity is measured not in terms of employee satisfaction
but in terms of employee engagement. Employees are said to be engaged when they show
a positive attitude towards the organization and express a commitment to remain with the
organization. It is the level of commitment and involvement an employee has towards the
organization

and its values. An engaged employee is aware of the business context and

works with colleagues to improve performance within the job for the benefit of the
organization. Engagement at work was conceptualized by Kahn (1990) as the harnessing
of organizational members selves to their work roles. In engagement people employ and
express themselves physically, cognitively and emotionally during role performances.
Employee engagement is thus the level of commitment and involvement an
employee has towards their organization and its value. The organization must work to
develop and nature engagement which requires a two way relationship between employer
and employee. Thus employee engagement a barometer that determines the association of
a person with the organization. Engagement is most closely associated with the existing
construction of Job Involvement.
Thus job involvement results from a cognitive judgment about the need satisfying
abilities of the job. Jobs in this view are tied to ones self image. Furthermore engagement
entails the active use of emotions. Finally engagement may be thought of as an antecedent
to job involvement in that individuals who experience deep engagement in their roles
should come to identify with their jobs. Employee engagement he gave importance to all
three aspects, physical, cognitive and emotional. Whereas in job satisfaction importance
has been more given to cognitive side.
According to the study of Watson Wyatt, the profit chain establishes relationship
between profitability, customer loyalty and employees satisfaction, loyalty and
productivity. Satisfaction is largely influenced by the services provided to customers.
Satisfied, loyal and productive employee creates value. Employee satisfaction in turn
results primarily from high quality support services and policies that enable employees to
deliver results to customers.

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FOCUS ON EMPLOYEE ENGAGEMENT

Engagement by industry -With the exception of government sector which has
relatively low engagement levels some high tech industries (pharma, biotech) score low
whereas some service focused industries (retail, consumer products) score high.
Engagement by level-Studies show that people higher up in the organization experience
higher engagement. However there is a drop in engagement past the vice-president level.
Engagement by gender -the survey reveals a larger disparity between men and women.
Men count 8%more fully engaged and 6%less disengaged than women. Taking global
figures into account, it can be said that Indian workers are among the most focused and
satisfied in the world.
BASIC ASPECTS OF EMPLOYEE ENGAGEMENT
There are three basic aspects of employee engagement: The employees and their
own unique psychological makeup and experience.
The employers and their ability to create the conditions that promote employee
engagement. Interactions between employees at all levels. Thus employee engagement is
a partnership between a company and its employee where everyone works together to
achieve the business objectives of the company and fulfill their personal aspirations. It is
therefore largely the organizations responsibility to create an environment and culture
conducive to this partnership and a win-win equation.
CATEGORIES OF EMPLOYEES
There are three different types of employees. They are engaged, not engaged, actively
disengaged.
1. ENGAGED Engaged employees are builders. They want to know the desired expectations for
their role so that they can meet and exceed them. They are naturally curious about their
company and their place in it. They perform at consistently high levels. They want to use
their talents and strengths at work every day. They work with passion and they drive
innovation and move their organization forward.

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2. NOT ENGAGED Not engaged employees tend to concentrate in tasks rather than the goals and
outcomes they are expected to accomplish. They want to be told what to do just so that
they can do it and say they have finished. They focus on accomplishing tasks outcome.
Employees who are not engaged tend to feel their contributions are being overlooked and
their potential is not being tapped. They often feel this way because they dont have
productive relationships with their managers or with their co-workers.
3. ACTIVELY DISENGAGED
The actively disengaged employees are the cave dwellers. They are consistently
against virtually everything. They are not just unhappy at work they are busy acting out
their unhappiness. They sow seeds of negativity at every opportunity. Everyday actively
disengaged workers undermine what their engaged co-workers accomplish. The problems
and tensions that are fostered by actively disengaged workers can cause great damage to
an organizations functioning.
THE ROLE THEORY
Employee engagement can be defined in terms of what people do at work,
something called the role theory. Role theory reviews different roles that people engage in
at work, and it explains reasons why people engage in certain roles and not in others.
The five work related roles that exist in any company are:
Job holder role - Employees come to work and do the job that is listed in their
job description
Team member role - Employees go above and beyond to help members of their
team work towards common goals.
Entrepreneur role - Employees come up with new ideas and processes and try to
get those ideas implemented.
Career role - Employees do things to enhance their career in the organization;
they learn, they adapt new skills, and more.

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Organization Member Role :

Employees do things that promote and help the company even if its not part of
their jobs or their teams duties In general we find that most employees have a sense of
fairness and even if their employer treats them poorly most will show up to work and do
the job role. But having employee show up at work simply doing their jobs gets an
employer nowhere in terms of long term competitiveness. If all your employees show up
and only do their jobs, then you are not building organizational strength and long term
competitiveness through people because anyone can hire those same employees and
duplicate what you are doing. It is the synergy that comes from people working together
and gathering creative ideas that leads to long term organizational wealth creation. That
synergy and above and beyond behavior is evidence of employee engagement
K-A-B MODEL
According to K-A-B MODEL for the success of employee engagement, the company
must follow three steps i.e. Knowledge, Attitude and Behavior
KNOWLEDGE:Stakeholder must be aware of what is happening, what the change or engagement
effort is, and what they will see happening across the organization, to and by whom ,over
what time period .this is the launch part of engagement programmes, and is also where
much of the effort is focused-often to the detriment of the subsequent stages.
ATTITUDE:Once the stakeholders have internalized the knowledge, they need to form an
attitude about what they know .generally this means that they must see tangible, positive
evidence that the organization is serious about and committed to the programme.
Evidence of behavior change emerges in key leaders, managers and employees as, for
example, process begin to evolve and changes are made.
BEHAVIOUR
Once stakeholders have internalized the information and formed an attitude about
the change and what it means to them, it is essential that they are given the tools,
guidance and support needed to change their behaviours and must be visibly intolerant of
behaviors that do not align with achieving the objectives behind the overall engagement
efforts

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THE TEN CS OF EMPLOYEE ENGAGEMENT

How can leaders engage employees heads, hearts, and hands? The literature offers
several avenues for action; we summarize these as the Ten Cs of employee engagement.
1. Connect:
Leaders must show that they value employees. Employee-focused initiatives such
as profit sharing and implementing worklife balance initiatives are important. However,
if employees relationship with their managers is fractured, then no amount of perks will
persuade employees to perform at top levels. Employee engagement is a direct reflection
of how employees feel about their relationship with the boss. Employees look at whether
organizations and their leader walk the talk when they proclaim that, Our employees are
our most valuable asset.
2. Career:
Leaders should provide challenging and meaningful work with opportunities for
career advancement. Most people want to do new things in their job. For example, do
organizations provide job rotation for their top talent. Are people assigned stretch goals.
Do leaders hold people accountable for progress? Are jobs enriched in duties and
responsibilities? Good leaders challenge employees; but at the same time, they must
instill the confidence that the challenges can be met.
3. Clarity:
Leaders must communicate a clear vision. People want to understand the vision
that senior leadership has for the organization, and the goals that leaders or departmental
heads have for the division, unit, or team. Success in life and organizations is, to a great
extent, determined by how clear individuals are about their goals and what they really
want to achieve.
4. Convey:
Leaders clarify their expectations about employees and provide feedback on their
functioning in the organization. Good leaders establish processes and procedures that help
people master important tasks and facilitate goal achievement. Good leaders work daily to
improve the skills of their people and create small wins that help the team, unit, or
Organization per forms at its best.
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5. Congratulate:
Business leaders can learn a great deal from Woo dens approach. Surveys show
that, over and over, employees feel that they receive immediate feedback when their
performance is poor, or below expectations. These same employees also report that praise
and recognition for strong performance is much less common. Exceptional leaders give
recognition, and they do so a lot; they coach and convey.
6. Contribute:
People want to know that their input matters and that they are contributing to the
organizations success in a meaningful way. First, an employee understands of the
connection between her work as operational by specific job-relevant behaviors and
the strategic objectives of the company had a positive impact on job performance.
Second, an employees attitude towards the job and the company had the greatest impact
on loyalty and customer service than all the other employee factors combined. Third,
improvements in employee attitude led to improvements in job-relevant behavior; this, in
turn, increased customer satisfaction and an improvement in revenue growth. In sum,
good leaders help people see and feel how they are contributing to the organizations
success and future.
7. Control:
Employees value control over the flow and pace of their jobs and leaders can
create opportunities for employees to exercise this control. A feeling of being in on
things, and of being given opportunities to participate in decision making often reduces
stress; it also creates trust and a culture where people want to take ownership of problems
and their Solutions.
8. Collaborate:
Studies show that, when employees work in teams and have the trust and
cooperation of their team members, they outperform individuals and teams which lack
good relationships. Great leaders are team builders; they create an environment that
fosters trust and collaboration. Surveys indicate that being cared about by colleagues is a
strong predictor of employee engagement. Thus, a continuous challenge for leaders is to
rally individuals to collaborate on organizational, departmental, and group goals, while
excluding individuals pursuing their self-interest.
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9. Credibility:
Leaders should strive to maintain a companys reputation and demonstrate high
ethical standards. People want to be proud of their jobs, their performance, and their
10. Confidence:
Good leaders help create confidence in a company by being exemplars of high
ethical and performance standards. Practitioners and academics have argued that
Competitive advantage can be gained by creating an engaged workforce. Leaders should
actively try to identify the level of engagement in their organization, find the reasons
behind the lack of full engagement, strive to eliminate those reasons, and implement
behavioral strategies that will facilitate full engagement. These efforts should be ongoing.
Employee Engagement is hard to achieve and if not sustained by leaders it can wither
with relative ease.
FACTORS LEADING TO EMPLOYEEENGAGEMENT
The critical factors which lead to employee engagement are;
1. Career development Opportunities for personal development
Organizations with high levels of engagement provide employees with
opportunities to develop their abilities, learn new skills, acquire new knowledge and
realize their potential. When companies plan for the career paths of their employees and
invest in them, then they prove to be the assets of the organization. Effective management
of talent - Career development influences engagement for employee and retaining the
most talented employees and providing opportunity for personal development.
2. Leadership
Clarity of company values - Employees need to feel that the core values for which
their company stands are unambiguous and clear. Respectful treatment of employees Successful organizations show respect for each employees qualities and contribution
regardless of their job level.

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3. Empowerment
Employees want to be involved in decisions that affect their work. The leaders of
high engagement work places create a trustful and challenging environment in which
employees are encouraged to dissent from the prevailing orthodoxy and to input and
innovate to move the organization forward.
4. Image
How much the employees are prepared to endorse the products and services which
their company provides its customers depends largely on their perception of the quality of
those goods and services. High levels of employee engagement with high levels of
customer engagement.
5. Equal opportunity and fair treatment
The employee engagement levels would be high if their superiors provide equal
opportunities for growth and advancement to all the employees.
6. Re- Inforcement of people focused policies
Continuous re-inforcement exists when senior management provides staff with
budgets and resources to accomplish their work and empowers them.
7. Communication
The company should follow the open door policy. There should be both upward
and downward communication with the use of appropriate communication channels in the
organization. If the employee is given a say in the decision making and has the right to be
heard by his boss then the engagement levels are likely to be high
8. Quality of working relationships with peers, superiors &subordinates
If employees relationship with their managers is fractured, then no amount of
perks will persuade the employees to perform at top levels. Employee engagement is a
direct reflection of how employees feel about their relationship with the boss.
9. Perception of the ethos and values of the organization
Inspiration and values are the most important factors that influence engagement.
Inspirational leadership is the ultimate perk. In its absence it is unlikely to engage
employees.
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10. Performance appraisal

Fair evaluation of an employees performance is an important criterion for
determining the level of employee engagement. The company which follows an
appropriate performance appraisal technique (which is transparent and not biased) will
have high levels of employee engagement.
11. Pay and benefits
The company should have a proper pay system so that the employees are
motivated to work in the organization. In order to boost his engagement levels the
employee should also be provided with certain benefits and compensation.
12. Health and safety
Research indicates that the engagement level sare low if the employees do not feel
secure while working. Therefore every organization should adopt appropriate methods
and systems for the health and safety of their employees.
13. Job satisfaction
Only a satisfied employee can become an engaged employee. Therefore it is very
essential for an organization to see to it that the job given to the employee matches his
career goals which will make him enjoy his work and he would ultimately be satisfied
with his job.
14. Family friendliness
A persons family life influences his work life. When an employee realizes that the
organization is considering his familys benefits also, he will have an emotional
attachment with the organization which leads to engagement.
15. Co-operation
If the entire organization works together by helping each other i.e., all the
employees as well as superiors co-ordinate well then the employees will be engaged.

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BENEFITS TO THE ORGANISATION

Employee engagement builds passion, commitment and alignment with the

organizations strategies and goals.

Attracts more people like existing employee
Increases employees trust in organization.
Creates a sense of loyalty in a competitive environment.
Lowers attrition rate.
Increases productivity and improves morale.
Provides a high energy working environment.
Improves overall organizational effectiveness.
Boosts business growth.
Makes the employee effective brand ambassadors for the company.

EMPLOYEE ENGAGEMENT IN VIRTUALENVIRONMENT

Keeping remote employees engaged is a critical challenge for managers.
Employees need to be engaged through various forums and interactions to build
excitement and passion through various communication channels and events. For
example, at Sun Microsystems, employees are treated with utmost importance. The senior
management team interacts with the employees through the intranet where the employees
are engaged in active dialogue on corporate goals and directions and also solicits their
feedback. Management members engages with the employees on technological directions
through personal blog.(holding six town halls with employees every year). The company
also reaches out the employees family by inviting and involving them in some events.
The internal website of the company is updated daily, thus keeping employees abreast of
the happenings and developments in their organization.
Conducting a survey without planning how to handle the results can lead
employees to disengage. It is therefore to feel the pulse, the action plan is just as essential.
Employee engagement should be measured at regular intervals in order to track its
contribution to the success of the organization.

THE LOYALTY FACTOR

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The key to employee engagement is creating greater motivation for their work
and commitment to their organization. It is not possible to retain professionals only by
paying high salaries and offering attractive benefits. We need to create enthusiasm for
their roles, their work and the organization and ensure they are well integrated. Employee
engagement relates to the employees commitment to the organizations success. Engaged
employees who are inspired and guided by the leadership equipped with the right tools
and managed by the right systems and process deliver superior performance. Employee
engagement today encompasses training, development, work environment, leadership,
performance management, work- life balance, communication, compensation, benefits,
commitment, fun and social activities. The quality of output and competitive advantage of
a company depends on the quality of people. Employees want to work for an organization
that is-successful, legal, provides opportunities to grow, has managers who help
employees and is socially responsible.

MEASURING EMPLOYEE ENGAGEMENT

Employee engagement can be measured from two dimensions;

How employees feel (their emotions towards the company, the leadership, the
work environment etc).
How they intend to act in the future (will they stay, give extra effort

etc).Employee engagement can be revealed in several ways, including pulse to annual

surveys, tracking changes in the attrition rate, increase in the number of employee
referrals and growth in productivity and business. In many organizations the age old
employee satisfaction surveys were considered the most popular method for measuring
how happy an employee was in the organization. This is slowly being replaced by surveys
that can effectively measure employee engagement. For example, employee opinion
survey. The analyzed results help us gauge the level of employee engagement within the
company. It also helps to identify the weak areas. After each survey Action Planning
Group is formed within the organization that comprises a cross-section of people from
across the company; all departments and all levels are fairly represented. This group then
works on different projects leveraging the strengths identified by the survey.
HOW TO MEASURE EMPLOYEE ENGAGEMENT
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Step 1- Listen
The employer must listen to his employees and remember that this is a continuous
process. The information employees supply will provide direction. This is the only way
to identify their specific concerns. When leaders listen, employees respond by becoming
more engaged. This results in increased productivity and employee retention. Engaged
employees are much more likely to be satisfied in their positions, remain with the
company, be promoted and strive for higher levels of performance.
Step2- Measure current level of employee engagement.
Employee engagement survey let us know what level of engagement the
employees are operating. Customizable employee survey will provide with a starting
point towards the efforts to optimize employee engagement. This kind of survey is a
diagnostic tool of choice in the battle for the hearts of employees.
Step3- Identify the problem areas
Identifying the problem areas helps to see which are the exact areas, which lead to
disengaged employees.
Step4- Taking action to improve employee engagement
It acting upon the problem areas nothing is more discouraging to employees than
to be asked for their feed back and see no movement toward resolution of their issues.
Even the smallest actions taken to address concerns will let the staff know how their input
is valued. Feeling valued will boost morale, motivate and encourage future input. Taking
action starts with listening to employees feedback and a definitive action plan will need
to be put in place finally.
While it is possible to measure engagement itself through employee surveys, this
does not assist in identifying areas for improvement within organizations. To manage
employee engagement upwards, it is necessary to identify what drives engagement.

Some points from research into drivers of engagement are presented below:
25

* Employee perceptions of job importance - "...an employee's attitude toward the job's
importance and the company had the greatest impact on loyalty and customer service than
all other employee factors combined."[1]
* Employee clarity of job expectations - "If expectations are not clear and basic
materials and equipment are not provided, negative emotions such as boredom or
resentment may result, and the employee may then become focused on surviving more
than thinking about how he can help the organization succeed."
* Career advancement/improvement opportunities - "Plant supervisors and managers
indicated that many plant improvements were being made outside the suggestion system,
where employees initiated changes in order to reap the bonuses generated by the
subsequent cost savings."[15]
* Regular feedback and dialogue with superiors - "Feedback is the key to giving
employees a sense of where theyre going, but many organizations are remarkably bad at
giving it."[14] "'What I really wanted to hear was 'Thanks. You did a good job.' But all my
boss did was hand me a check.'"[12]
* Quality of working relationships with peers, superiors, and subordinates - "...if
employees' relationship with their managers is fractured, then no amount of perks will
persuade the employees to perform at top levels. Employee engagement is a direct
reflection of how employees feel about their relationship with the boss."[16]
* Perceptions of the ethos and values of the organization - "'Inspiration and values' is
the most important of the six drivers in our Engaged Performance model. Inspirational
leadership is the ultimate perk. In its absence, [it] is unlikely to engage employees."
* Effective Internal Employee Communications - which convey a clear description of
"what's going on". "'
* Reward to engage - Look at employee benefits and acknowledge the role of incentives.
"An incentive to reward good work is a tried and test way of boosting staff morale and
enhancing engagement."

26

Commitment theories are rather based on creating conditions, under which the employee
will feel compelled to work for an organization, whereas engagement theories aim to
bring about a situation in which the employee by free choice has an intrinsic desire to
work in the best interests of the organization..
Recent research has focused on developing a better understanding of how variables such
as quality of work relationships and values of the organization interact, and their link to
important work outcomes.[18] From the perspective of the employee, "outcomes" range
from strong commitment to the isolation of oneself from the organization

IMPORTANCE OF ENGAGEMENT
Engagement is important for managers to cultivate, given that disengagement or
alienation is central to the problem of workers lack of commitment and motivation.
Meaningless work is often associated with apathy and detachment from ones works
(Thomas& Velt house ).In such conditions, individuals are thought to be estranged from
their selves. An organizations capacity to manage employee engagement is closely
related to its ability to achieve high performance levels and superior business results. In
the workplace research on employee engagement (Harter,Schmidt&Hayes,2002) have
repeatedly asked employee whether they have the opportunity to do what they do best
every day. While one in five employees strongly agree with this statement. These work
units scoring higher on this perception have substantially higher performance. Thus,
employee engagement is critical to any organization that seeks to retain valued
employees.
As organizations globalize and become more dependent on technology in a virtual
working environment, there is a greater need to connect and engage with employees to
provide them with an organizational identity. Engaged employees are more likely to stay
and be an advocate of the companys product and services. They contribute to the overall
success of the organization. A greater number of loyal employees ensure low recruitment
and training costs, in effect enhancing the productivity of the organization. They are also
more willing to put in extra effort when the organization needs it. Their impact on the
working environment is also significant as they are more focused on organizational
27

benefit than personal goals. This consequently reduces feelings of acrimony and internal
rivalries. They also project a positive image to new recruits and this motivates the latter to
perform better and assimilate themselves in the office culture.
Employee engagement is an umbrella term that captures any number of factors including
job satisfaction but it's important to recognize that different factors lead to different
outcomes.
All areas of the economy are experiencing financial strain, including the public sector
where the workforce is having to negotiate a considerable amount of change. This is
evident in places such as the NHS, where staff will be tasked with implementing the
recent Health and Social Care Act.
Given that employee engagement is an idea that helps develop strong positive attitudes
among people towards their work and their organization, and this plays a major role in
ensuring that they give their best even when times are tough, surely we need to improve it
now more than ever.
The concept itself is not new; the mix of factors that make up employee engagement have
been around for a long time. These include organisational commitment, job satisfaction,
and organisational citizenship the willingness to go outside one's specific role to be
helpful.
The distinctive feature of employee engagement as an idea is that it pulls all of these
positive job and work attitudes together under one umbrella. Advocates argue that the
research clearly shows that when employee engagement is high, organisations do better.

28

ORGANISATIONAL INITIATIVES
Most organizations have a range of programmes to improve the engagement level
of their employee. It should start right at the selection stage. Choosing the right fit and
giving a realistic job preview. Strong induction and orientation programme. Rigorous
training and development from technical to soft skills to leadership development
programme. To keep up the morale of people and drive them towards excellent
performance, incentives can be given such as recognition letters, profit sharing schemes,
long performance awards, ESOPs, building assets like own home. Regular feedback to all
people. Communication forums like the in-house magazine and regular surveys and
conferences. To maintain the quality of work-life and a balance between
personal/professional lives, there are recreational activities like festivities, get-togethers,
sports etc.An open and transparent culture to empower its people and development
repreneurs.
INCREASING EMPLOYEE ENGAGEMENT
Provide Variety - Tedious, repetitive tasks can cause burn out and boredom over
time. If the job requires repetitive tasks, look for the ways to introduce variety by rotating
duties, areas of responsibility, delivery of service etc. Conduct periodic meetings with
employees to communicate good news, challenges and easy-to-understand companys
financial information. Managers and supervisors should be comfortable communicating
their staff and able to give and receive constructive feedback. Indulge in employee
deployment if he feels he is not on the right job. Provides an open environment.
Communicate openly and clearly about whats expected of employee at every level-your
vision, priorities, success measures etc. Get to know employee interests, goals, stressors
etc. Show an interest in their well being and do what it enables them to feel more fulfilled
and better balanced in work life. Celebrate individual, team and organizational success.
Catch employee doing something right and say, Thank-You. Be consistent in your
support for engagement initiatives. If you start one and then drop it, your efforts may
backfire. Theres a strong connection between employees commitment to an initiative
and managements commitment to supporting it

29

REAL EMPLOYEE ENGAGEMENT RULES

We often think that super important corporate initiatives will transform our
organization into places where everyone will come to work and want to be more engaged.
Corporate initiatives cant make the magic. Employee engagement happens only when
you remove barriers to work and these barriers are unique to every work group. The
people who deliver the corporate initiatives have to make engagement happen, i.e., the
managers.
HOW TO MOVE OWNERSHIP TO MANAGERSAND EMPLOYEES
In order to move the employee engagement process from ownership by corporate
HR to ownership by and employees, several things must happen1. Measurement of employee engagement must be done more than once in a year.
We need multiple ways to assess engagement; the engagement metrics must
include performance measures.
2. You cant have engaged employees without super engaged managers. Engagement
improving efforts must start at top and work their way down. The most senior
executive must be assured that they are engaging their senior team and that team
has to work on creating a high engagement environment for its direct reports & so
on. Engagement must be done by leadership through example.
3.

This process of top down engagement is owned by each level of management.

Each manager himself benefits from the process, and then they share the benefits
with their own employees. In this learning process managers own employee
engagement.

4. Engagement is about getting rid of things that block productivity. We bring people
to work, then put lots of obstacles in the way of their being able to succeed.
Creating an engaged work force means getting barriers out of the way for your
employees to be effective. We cannot create a magic set of 20, 40, 80 survey
questions that will assess the things that are getting in the way of productivity and
performance. These things can be lumped into categories but they differ from
company to company, department to department and employee to employee.
These productivity blockers and de motivators are not taught in a basic
30

introduction to management book. They are not going to disappear with the
purchase of some new technology or from hiring the latest management guru.
Engagement will happen when each individual manager learns whats getting in
the way of his/her employees performance and each manager chooses to take
action.
5. The process of engagement is a process , you cant get it right at the year end. You
have to create a continuous learning, continuous improvement, continuous
measurement and continuous action process to maximize productivity.
SAFETY AND SECURITY
DR. REDDYS LABORATORY 's work climate is governed by HR Policy, IMS
(Integrated

Management

System)

consisting

of

ISO

9001:2000,

ISO14001:2004,OHSAS18001:2007, Dr. Reddys Lab code of Conduct, Sexual

Harassment (Prevention Policy)and Whistle Blower Policy and is improved by reviewing
the current practices and implementation of improvement initiatives. Central Safety
Committee is the apex committee which decides the strategy for safety and its successful
implementations. Safety initiatives in the company include hazard identification & risk
analysis (HIRA), preparation of job safety analysis, housekeeping and safety surveys,
mock drills, reporting and analysis of near miss incidents/accidents etc. Employee's
involvement in improving the safety standard is ensured through their participation in the
departmental safety committees, plant safety committee and other forums.
WORK ENVIRONMENT
DR. REDDYS LABORATORY is the first Refractories company in India to
establish a full-fledged environment protection department. The system for air and water
pollution monitoring, measurement, corrective, preventive action & periodic review are in
place.
An emerging and global trend in health is a focus on partnerships - alongside
public-private partnerships there are also a number global health initiatives. Such
initiatives are thought to be one of the benefits of globalization. Global initiatives are
typically programmes targeted at specific diseases and are supposed to bring additional
resources to health efforts.

31

HEALTH INITIATIVES
Considering the nature of operations, system has been established to prevent
occurrence of silicosis, a major health hazard by ensuring effective dust control systems,
use of dust masks, job rotation and conducting health awareness classes regularly. PMC
are conducted for all employees &contract labour as E&I. Replacing old producers by
modern ones and replacing coal with petcoke has minimized toxic gas pollution in Gas
Producers area, and gas monitoring is done regularly to check gas levels. DR. REDDYS
LABORATORY

also proactively encourages its employees to preventing problems

related to health by exposing them to knowledge on different aspects of health under the
Work Life Balance and program which is conducted by doctors of JG Hospital. Special
programmes on 'meditation' are also conducted by Bramha kumar is from time to time to
improve physical, mental & spiritual health of employees.

The India Health Initiative (IHI) is a student-run initiative operating in several

universities in Ontario, Canada which aims to send health care professionals and students
to various regions in rural India for developmental and educational volunteer work.
An emerging and global trend in health is a focus on partnerships - alongside
public-private partnerships there are also number global health initiatives. Such initiatives
are thought to be one of the benefits of globalization. Global initiatives are typically
programmes targeted at specific diseases and are supposed to bring additional resources
to health efforts.
MOTIVATION
Senior leaders use many formal and informal means to motivate workforce
throughout the company. Some of the steps taken by senior leaders in this regard are
creating an environment of achievement by setting challenging

targets

subordinates,

Giving adequate resources for enabling people to succeed, Personal involvement and
Reward and recognition based on consideration on meritorious performance.

32

EMPOWERMENT
An environment of empowerment is built through:

Enabling workforce through training and development to take decisions closest to

the front line.

Delegations of authority with trust & support, to take actions and make decisions,
to satisfy the customers at first contact. General Managers and Chief Managers

have been given both financial powers to reward work force under them.
Providing easy access to the senior leadership (through open house, e-mail and

freedom to meet informally).

De-layering for more freedom to act, job enrichment through task forces to work
for special projects.

CO-OPERATION
The change in the organization design from functional orientation to SBU-wise
structure has resulted in improved cooperation and communication amongst production,
marketing, technology and support services since these have become part of the
individual SBUs. This has resulted in improved productivity and business results. The
company's vision and strategic plan (Mission-2000) has been communicated across the
organization; thus providing a clear big picture to the entire workforce about company's
objectives and growth plans.

33

INFORMATION FLOW AND TWO WAY COMMUNICATION

Communication across the work units, jobs and locations is achieved through
a) Documentation of all work procedures and instructions (in IMS) and their
communication to all employees through training.
b) Availability of these on in the intranet and as hard copies, which can be accessed
by all,
c) Through positional training where a highly skilled worker/officer trains a group
assigned to him on-the-job as per the needs of his colleagues
d) Knowledge Management system (KM site) where the knowledge champions and
experts gather and place knowledge pieces including all successful CIPs on the
K.M. site,
e) Departmental meetings for knowledge sharing.
f) Logbooks maintained by departments,
g) Job rotation.
INDIVIDUAL GOAL SHARING & INNOVATION
The CBSC is cascaded to Divisional/Departmental Goal Sheets and to individual
KRAs, which help in aligning and integrating the performance targets; thus taking out any
ambiguity and providing clear and specific goals for individuals. The workmen are
trained and developed through Millwright, and other training programs to empower them
for self-supervised working. This enhances their agility and they work seamlessly on all
machines of all units of the department. Involvement of employees across all levels in
various CIP teams such as VE, WS and WCs have not only created a culture of
collaboration but also fosters an environment for high performance. These interventions
also help in skill and knowledge sharing & innovation. The associated rewards and
recognition practices with these interventions motivate and engage the work force across
the organization. Innovation Is also encouraged through suggestion and innovation
schemes, with appropriate reward and recognition.

34

CHAPTER III
INDUSTRY
AND
COMPANY PROFILE

35

INDUSTRY
INTRODUCTION TO BULK DRUG INDUSTRY:
Since the achievement of independence, India pharmaceutical industry registered a
substantial progress and has become one of the countrys leading industries. India is now
providing large quantities of varied bulk drugs and pharmaceutical products. Of late
especially during 80s India acquired a status of one of the major exports of drugs and
pharmaceutical in the international market.
Prior to the launching of second five-year plan, the manufacture of pharmaceuticals was
limited largely to processing of bulk-imported drugs in to tablets, capsules and other
formalities. Later the Indian manufacturers were encouraged to make up the manufacture
of basic drugs wherever it was economically possible and technically feasible, resulting in
the growth of bulk drug industry and leading to self-sufficiency in the production of these
raw materials called as bulk drugs. The number of bulk drugs and pharmaceutical
chemicals manufactured in the country by the Indian change in the pattern of production,
the industry has now emerged as an exporter of basic chemicals, intermediaries and
finished production. Thus bulk drugs are poised to become the new start in the export
firmament.
Pharmaceuticals are medicinally effective chemicals, which are converted to dosage
forms suitable for patients to imbibe. In it basic chemical form, Pharmaceuticals are
called bulk drugs and the final dosage forms are known as formulations. Usage of
Pharmaceuticals is governed by the underlying medical science. The four primary
medical sciences are as under:

Allopath or modern medicine has gained global popularity.

Ayurveda, an ancient Indian science, mainly uses herbal remedies.

Unani having Chinese Origin is prevalent in South East Asia.

Homeopathy, founded by a German Physician, was fairly Popular in the early 19 th

century.

36

INDUSTRY SCENARIO:
World-over, the Pharmaceuticals industry is focused on Allopath, the most modern
medical science. Other modes of medical treatment such Homeopathy, Ayurveda and
Unani are more prevalent in third world countries.
The exports from the Indian pharmaceutical industry to the well regulated market in
United States of America is increasing rapidly, by recording the highest growth in the
current financial year when compared to the recent past.
The Indian pharmacy exports to US have already recorded a favorable momentum right
from the year 2002, increasing from USD million 489.08 in April 02-March 03 to USD
million 680.50 in April 2006 - March 2010.
From being an import dependent industry in the past 1950s Indian pharmaceutical
industry has achieved self-sufficiency and gained global recognition as a producer of low
cost high quality bulk drug and formulations. Leading Indian companies have developed
infrastructure in over 60 countries including developed markets like USA and EUROPE.
In the last few years several pharmaceutical companies have demonstrated that they
posses the ability to engage in commercially viable research and development activities
and become significant players in the international market.
The pharmaceutical industry comprises of 20,053 manufacturing unit and provides
employment to approximately 33 lakhs people. The total production in the country in
1999-2000 was 19,737 crores. The total capital investments in pharmaceutical industry
were Rs. 2,500 crores with R&D expenditure being Rs. 320 Crores. The countrys exports
stood at Rs. 6,631 crores in 1999-2000, imports were Rs. 3,441 a net surplus of Rs 3,190
crores.
The leading 250 pharmaceutical companies control 70 percent of the market. Over 60
percent of Indias bulk drugs production is exported to and the balance is sold locally to
other formulators. With more than 85 percent of formulation production in the country is
sold in the domestic market, India is largely self-sufficient in the case of formulations,
even though some life savings, new generations, under patent formulations continues to
be imported especially by MNCs

37

GROWTHOF THE INDIAN PHARMACEUTICAL INDUSTRY

YEARS

2007-08

2010-09

2011-10

2012-11

2013-12

140

500

1840

2150

2500

Formulation

150

1200

12068

13878

15960

Bulk Drugs

18

240

2623

3148

3777

Import

8.2

112.54

2868

3128

3441

Export

3.05

46.38

5353

5959

6631

14.75

220

260

320

Capital Investment
Production

R& Expenditure

India is one among the top five manufacturers of the bulk drug in the world and is among
the top 20 pharmaceutical exporter in the world. The industry manufacturers almost the
entire range of therapeutic products and is capable of producing raw materials for
manufacturing a wide range of bulk drugs from the basic stage.

The government has taken measures to give impetus to domestic production drugs and
formulations, creating an environment conductive for channeling new investments into
pharmaceutical sector. However the industry and experts feel that time has come for the
government to announce new policy initiatives, particularly relating to the research and
development and pricing regime, in order to propel the industry into a new growth orbit,
as well as, to face the challenges of the WTO-led trading system and a TRIPS-driven
product patent environment.

38

BULK DRUGS:
Bulk drugs are medicinally effective chemicals. They are derived from 4 type
intermediate (raw materials) namely:

Plant derivatives (Herbal Products)

Animal derivatives e.g., insulin extracted from bovine pancreas.

Synthetic chemicals

Biogenetic (human) derivatives e.g. Human insulin

Bulk drug discovery requires intensive and expensive research, so new drugs are patented
by the innovator to ensure commercial gains on his R&D investment. When a drug goes
off patent it becomes generic. Bulk drugs can be broadly categorized as

Under patent

Generic of off patent.

A patent provides exclusivity of manufacturing/licensing to the discoverer i.e. patent

holder for a stipulated time period.
INDIAN SCENARIO:
DRAWBACKS:
In the 50 year independence, the Indian pharmaceutical industry has evolved
significantly. Initially, the MNCs had a near monopoly. They imported and marketed
formulations in India, mainly low cost generics for the masses and also few specialties,
life saving, high priced products. With the government increasing pressure against
imports of finished products, the MNCs set up formulation units and continued importing
the bulk drugs. In the 60s the Indian Government laid the foundation of the domestics
pharmaceutical industry by promoting Hindustan Antibiotics Ltd., (HAL) and Indian
drugs. However, MNCs maintained a lead due to backing of their global R&D. High cost
for basic research deterred local players (in the private sector).
PRESENT SCENARIO:
39

Over 20,000 registered pharmaceutical manufactures exist in the country. The market
share of MNCs has fallen from 75% in 1971 to around 35% in the Indian pharmaceutical
market, while the share of Indian companies has increased from 20% in 1971 to nearly
65%. Pusses have almost lost completely.
The sector has undergone several policy as well as attitudinal changes over the past two
yeas. It was one of the major beneficiaries from the budget proposals. Some of the
positive steps taken were

Pharmaceutical industry as knowledge based industry. The government has plans

to increase the investment in research and development.

Rationalization of excise duty and reduction in interest rates in export financing.

Additional deductions under income tax laws for R&D expense.

Foreign direct investments permit unto 74% through automatic route.

Setting up 2 high level committees to review the drug policy for strengthening
R&D capabilities, reducing the price control regime.
Besides the Indian parliament has enacted the required changes in the

Indian patent act 1790 (IPR) regarding mailbox arrangement and Exclusive Marketing
Right (EMR). For while the main pharmacy companies have recorded a measure of 1.4%
increase in sales and 7.4% fall in profits, the Indian pharmacy companies have recorded a
21% growth in sales companies has decreased from 1.8% if sales to 1.6% in case of MNC
pharmacy companies has increased 3.8% to 4.4%.
So while the MNC companies did not make many new launches (make a hue
& cry about increasing competition from the generics, delay in patent regime, unfavorable
price cuts). But the Indian companies took everything in their stride and went out all
cylinders firing-launching new products, entering the generics market, reorganizing the
marketing structure, focusing on new growth segments like Cardiac, Diabetic, and
Psychiatry among a host of other initiatives.
Indian pharmaceutical exports, among the top three contributors to the world pharmacy
trade, are poised to grow 25% this year to touch $1.5 billion, according to CII estimates.

40

The country is potential to rank among top three tin the world as suppliers
of the generic drugs by 2012, of the government paves way for creating a conductive
business environment by framing new policies for the sector, said Ranbaxy chief
executive officer D S Barr
SWOT ANALYSIS FOR THE INDIAN PHARMA

INDUSTRY

STRENGTHS:

Cost competitiveness.

Well-developed Industry with strong manufacturing base.

Well Established Network of Laboratories and R&D Infrastructure.

Access to pool of highly trained scientists, both in India and abroad.

Strong marketing and distribution network.

Rich Bio-Diversity.

Competencies in chemistry and process developments

WEAKNESS:

Low investments in innovative R&D.

Lack of resources to compete with other MNCs for New Drug Discovery

Research and to commercialize molecules on the worldwide basis

Lack of strong linkages between industry and academia.

Lack of culture of innovation in the Industry.

Low medical expenditure and healthcare spend in the country.

Inadequate regulatory standards.

Production of spurious and low quality Drugs tarnishes the image of the Industry
at home

And abroad.

41

OPPURTUNITIES:

Significant export potential.

Licensing deals with MNCs for NECs and NDDs.

Marketing alliances to sell MNC products in domestic market.

Contract manufacturing arrangements with MNCs.

Potential for developing India as a centre for international clinical trails.

Niche player in global pharmaceutical R&D.

THREATS:

Product patent regime poses a serious challenge to domestic industry unless it

invests in Research and Development.

R&D efforts of Indian Pharmaceutical companies hampered by lack of enabling

Regulatory requirement.

Drug price control order puts unrealistic ceilings on product prices and
profitability and prevents Pharmaceutical companies from generating inevitable
surplus.

Export effort hampered by procedural hurdles in India as well as non-tariff

barriers imposed abroad.

Lowering of tariff protection.

42

COMPANY PROFILE
ABOUT DR. REDDYS LABORATORIES LTD.

Dr. Reddys Laboratories was founded by Dr Anji Reddy, an entrepreneurscientist, in 1984. The DNA of the company is drawn from its founder and his vision to
establish Indias 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.
Dr Anji Reddy, having moved out of Standard Organics Limited, a company he
had successfully co-founded, started Dr. Reddys Laboratories with $ 40,000 in cash and
$120,000 in bank loan! Today, the company with revenues of Rs.1, 947 crore (US $446
million), as of fiscal year 2012, is Indias second largest pharmaceutical company and the
youngest among its peer group.
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 them. And as always, Dr. Reddys chose to do it in
the most difficult of circumstances against widespread skepticism. Dr. Reddys came up
trumps not only having its stock oversubscribed but also becoming the best performing
IPO that year.
Dr. Anji Reddy is well known for his passion for research and drug discovery. Dr.
Reddys started its drug discovery programme in 1993 and within three years it achieved
its first breakthrough b out licensing an anti-diabetes molecule to Novo Nordisk 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. Reddys pioneered drug discovery in India. There are several such
inflection points in the companys 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. Reddys started its first big move in 1986
43

from manufacturing and marketing bulk actives to the domestic (Indian) market to
manufacturing and exporting difficult-to-manufacture bulk actives 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 safe and effective pharmaceuticals. This transition, a tough and
often-perilous one, was made possible thanks to the pioneering efforts of companies such
as Dr. Reddys Laboratories.
Today, Dr. Reddys continues its journey. Leveraging on its Low Cost, High Intellect
advantage. Foraying into new markets and new businesses. Taking on new challenges and
growing 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 peoples 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 a 1000 mile journey starts with a single
step.

ALLIANCING
Dr. Reddy's is a global pharmaceutical company operating in over 100 countries
worldwide. The company's operations span across the entire pharmaceutical value chain from API to Formulations to Discovery Research as well as service areas such as Custom
Pharmaceutical Services (CPS).
Dr Reddy's Business-Geography Matrix, given below, should give a comprehensive idea
of the company's spectrum of operations.

44

BUSINESS
Dr. Reddy's is a vertically integrated, global pharmaceutical company with proven
research capabilities and presence across the pharmaceutical value chain. We manufacture
Active Pharmaceutical Ingredients and Finished Dosage forms and market them globally,
with a focus on United States, Europe, India and Russia. In addition, the drug discovery
arm of the company conducts basic research in the areas of diabetes, cardiovascular,
inflammation and bacterial infection.
OUR CORE AREAS
Our core businesses of Active Pharmaceutical Ingredients (API) and Branded
Formulations are well established with an impressive track record of growth and
profitability. Our Generics business started operations in 2001 and focuses primarily on
the North America and EU markets. We have built a robust pipeline of generic products,
which will help us drive growth in the medium and long term. In addition, the company is
investing in creating businesses of the future - the innovation led businesses - of Specialty
and Drug Discovery.
Our revenues for fiscal 2011 were U.S. $446 million.
OPPORTUNITIES WITH US
Generics R&D we are working on the largest pipeline that is directed towards the
US, Europe, Australia, New Zealand, South America & Russian markets. We are looking
for talented people at middle- senior level who can play a path breaking role in the R&D
efforts and augment the Generics R&D team, which is dedicatedly working for the
Generics market. Our Generics R&D team is part of Integrated Product Development
Organization (IPDO), a core group that selects a large number of ideas that can be
converted into commercially viable products in an increasingly non-infringing
environment.

45

BOARD OF DIRECTORS
Dr. Reddy's has a board comprising of eminent individuals from diverse fields.
The board acts with autonomy and independence in exercising strategic supervision,
discharging its fiduciary responsibilities, and in ensuring that the management observes
the highest standards of ethics, transparency and disclosure.
Our Directors are experts in the diversified fields of medicine, chemistry and medical
research, human resource development, business strategy, finance and economics. They
review all information relating to significant business decisions, including strategic and
regulatory matters. Every member of the board, including the non-executive directors, has
full access to any information related to the company.
Committees appointed by the board focus on specific areas, and take decisions within the
authority delegated to them by the board. The committees also make specific
recommendations to the board on various matters from time-to-time.
CODE OF ETHICS AND OMBUDSMAN PROCEDURE
We at Dr. Reddys have a long-standing commitment to the lofty principles of
corporate governance and ethical business practices. This is a value, which is shared by
our Board of Directors, senior management and employees at all levels across the world.
To reflect our continued commitment to the highest standards of truth, integrity and
transparency, the Board of Directors of our Company has adopted a Code of Business
Conduct and Ethics (Code). This Code applies to each one of us in Dr. Reddys.
The Code at Dr. Reddys has been designed to comply with the provisions of the
Sarbanes-Oxley Act of 2002 and its implementing regulations. It is a general statement of
goals and expectations for individual and business conduct. The Code and an
Ombudsman Procedure have been chalked out to provide information, education and
resources to help out employees make good, informed business decisions and to act on
them with integrity.

46

CORPORATE GOVERNANCE
Dr. Reddy's long-standing commitment to high standards of corporate governance
and ethical business practices is a fundamental shared value of its Board of Directors,
management and employees. The Company's philosophy of corporate governance stems
from its belief that timely disclosures, transparent accounting policies, and a strong and
independent Board go a long way in preserving shareholders trust while maximizing
long-term shareholder value.
Good corporate governance flows out of the commitment of the Management and
the Board of Directors. When the commitment is backed by the fundamental beliefs of
maximizing value for stakeholders; transparent actions in the business; values of a
corporate; and mutual trust amongst all constituents of the business, the organization
transforms itself into a higher plane of leadership.
The forward-looking approach of Dr. Reddy's has always helped it, in achieving
the desired results. This approach has transformed the company's culture to one that is
relentlessly focused on the speedy translation of scientific discoveries into innovative
products. Dr. Reddy's commitment towards Corporate Governance started well before law
mandated such practices.
The company has identified and established its core purpose, mission and core
values for achieving corporate excellence. Dr. Reddy's believes in crafting an
environment where the parameters of conduct and behavior of the company and its
management is constantly aligned with the business environment.
The highlights of Dr. Reddy's Corporate Governance systems are an independent
Board of Directors following international practices, committed management team,
internal control systems and dissemination of information to various stakeholders

47

Dr. Reddy's long-standing commitment to high standards of corporate governance and

ethical business practices is a fundamental shared value of its Board of Directors,
management and employees. The Company's philosophy of corporate governance stems
from its belief that timely disclosures, transparent accounting policies, and a strong and
independent Board go a long way in preserving shareholder trust while maximizing longterm shareholder value.
The company has identified and articulated its core purpose, mission and values in
keeping with its desire for achieving corporate excellence. Dr. Reddy's believes in
creating an environment where the parameters of conduct and behavior of the company
and

its

management

is

constantly

aligned

with

the

business

environment.

The mainstays of Dr. Reddy's Corporate Governance systems are an independent Board
of Directors following international practices, a committed management team, rigorous
internal control systems and the transparent dissemination of information to stakeholders.
Committees of the Board

Committees appointed by the Board focus on specific areas and take informed
decisions within the framework of delegated authority, and make specific
recommendations to the board on matters in their areas or purview. All decisions
and recommendations of the committees are placed before the Board for
information or for approval
.
Dr. Reddy's has seven Board-level Committees, namely

The Audit Committee

The Compensation Committee

The Governance Committee

The Shareholders' Grievance Committee

48

The Investment Committee

The Management Committee

The members of the Committees of Board are as under:

Audit Committee

Management Committee

Dr. Omkar Goswami (Chairman)

Satish Reddy (Chairman)

Kalpana Morparia

G V Prasad

Ravi Bhoothalingam

P N Devarajan

Compensation Committee

Investment Committee

Ravi Bhoothalingam (Chairman)

G V Prasad (Chairman)

Kalpana Morparia

Satish Reddy

P N Devarajan

P N Devarajan

Dr. JP Moreau
Governance Committee

Shareholders' Grievance Committee

Anupam Puri (Chairman)

P N Devarajan (Chairman)

Prof. Krishna G Palepu

G V Prasad

Dr. Omkar Goswami

Satish Reddy

49

50

AWARDS AND ACCOLADE

The Appreciation Certificate of the District Collector for being the Best Clean
Production Industry for the year 2011 was awarded to API Unit V.
The CII Southern Region Leadership Excellence Award was awarded to
Dr. Reddy's for the year 2010.
The CII National Award for Excellence in Water Management for the year
2005 was awarded to both API Units II and VI.
The FTO III Unit of Dr. Reddy's achieved the ISO 14001:2004 standard on
June 9, 2005.
The Genentech Environmental Excellence Silver Award for the year
2004-05 was awarded to the API Global Business Unit.

KEY PERSONS

1. Mr.Dr.K.ANJI REDDY CHAIRMAN

2. Mr.G.V.PRASAD VICE CHAIRMAN & C.E.O
3. Mr.SATISH REDDY M.D & C.O.O
4. Mr.Dr.OMKAR GOUSWAMI
5. Mr.RAVI BHOOTHALINGAM
6. Mr Dr.KRISHNA PALEPU
7. Ms.KALPANA MORPARIA
8. Mr.J.P.MORE

51

OTHER OBJECTS:
1. To carry on the business of Distributors, Dealers, Wholesalers, Retailers,
Commission Agents,
2. Manufacturers, Representatives for all types of products.
3. To carry on the business of professionals for all types of services.
4. To carry on the business of design, engineering and execution and implementation
of various. Types of projects on contract or turnkey basis and to acquire the
designing or technical know how.
5. To cultivate, grow, produce or deal in any vegetable products and to carry on the
business of Farmers, dairy man, milk contractors, dairy farmers, millers, surveyors
and vendors of milk cream, Cheese, butter and poultry and provision of all kinds,
growers of and dealers in corn, lay and Straw, seeds men and nursery men and to
buy, sell and trade in any goods usually traded and of The above business or other
business associated with the farming interest which may be
Advantageously carried on by the company.
6. To carry on the business of manufacturers, fabricators, erectors, dealers of in all
types of Chemical equipment, pumps, valves, storage tanks etc. required by the
chemical and Pharmaceutical industry.
7.

To purchase plant, machinery, tools and implements from time to time and he
selling or disposing of the same.

8. To transact or carry on all kinds of agency business and in particular, in relation to

the investment of money, the sale of property and collection and receipt of money,
or otherwise of any assets, funds and business under any agreement.
52

9. To carry on and undertake the business of investing its funds in equity and
preference shares, stocks, bonds, debentures (convertible and non-convertible) of
new projects and securities of all kinds and every description of well established
and sound companies, to subscribe to capital issues of joint stock companies,
ventures, industries, units, trading concerns whether old or new as the company
my think fit and to assist them by granting financial accommodation by way of
loans/advances to industrial concerns and to assist industrial enterprises in
creation , expansion and modernization upon terms whatsoever and to act as
finance brokers, merchants and commission agents and to deal in Govt. Securities
including Govt. bonds, loans, National savings Certificates, post office saving
schemes, units of investments etc., include units of Unit Trust of India.
10. To promote industrial finance, deposit or lend money, securities and properties to
or with any company, body corporate, firm person or association whether falling
under the same management otherwise, in accordance with and to the extent
permissible under the provisionscontained in Section 370&372 of the, Companies
Act, 1956, with or without security and on such Terms as may be determined from
time to time. However, the company shall not carry on the business of Banking as
defined under the Banking Regulation Act. 1949; and to carry on and undertake
the business of finance, investment and trading, hire purchase, leasing and to
finance lease operations of all kinds, purchasing, selling, hiring or letting on hire
of all kinds of plant and machinery and equipment that the Company may think
fit and to assist in financing operations of all and every kind of description of hire
purchase or deferred payment or similar transactions and to subsidies finance or
assist in subsidizing or financing the sale and maintenance of any goods, articles
or commodities of all and every kind of description upon any terms whatsoever
53

and to purchase or otherwise deal in all forms of immovable and movable

property, including lands and buildings, plant and machinery, equipment, ships,
aircraft, automobiles computers and all consumer, commercial and industrial items
and to lease or otherwise deal with them in any manner whatsoever including
release there of regardless of whether the property purchased and leased be now
and /or used.
11. To provide a package of investment/merchant banking services by acting as
manages to public issue securities, by underwriting securities, act as Issue House
and to carry on the business of registrars to investment schemes, Money managers
to secure and extend market support by conducting surveys, collecting data,
information and reports and to act as general traders and Agents, to carry on the
agency business and warehousing indenting and dealership of business.
IV. The liability of the members of the company is limited.
V. a. The authorized share capital of the company is Rs.50,00,00,000/- (Rs. Fifty Crores
Only)divided into 10,00,00,000 equity shares of Rs.5/- (Rs. Five only) each.
b. The company has power from time to issue shares, Hybrids, Derivatives, Options,
Quasiequity Instruments, with differential rights, or to increase, consolidate, sub-divide,
exchange,reduce and also to purchase any of its shares whether or not redeemable and to
make payments out of its capital in respect of such purchase or otherwise alter its share
capital as equity or non voting equity shares or preference shares and to attach to any
classes of such shares preferences, rights, privileges or priorities in payment of dividends
or distribution of assets or otherwise, over any other shares and to subject the same to any
restriction, limitation or condition and to vary the regulation of the company,

54

DISCOVER STRATEGIES
Our Discovery Research programs span a combination of 'Focus Therapeutic
Areas' with known unmet medical needs and significant commercial potential. We have
developed approaches that leverage the knowledge currently available on validated drug
targets for efficient disease modulation by developing best-in-class molecules.
The usage of focused synthesis approaches helps us in enhancing the probability of
success with significant reduction in financial risk.
Additional approaches include developing 'first-in-class' molecules for drug
candidates that hold potential for therapy against diseases such as Atherosclerosis and
bacterial infections.
EMPLOYEE DEVELOPMENT
At Dr Reddy's we foster a culture which has the following tenets ....
Customer Focused and High Performance Driven Both external and internal
customers are accorded highest priority with sensitivity and commitment to target, time &
cost and focus on delivering innovative affordable medicines globally.
Entrepreneurial and Innovative Genuine mistakes are tolerated, intelligent risk-taking
is encouraged and people are empowered
Egalitarian and Trusting Rank and status consciousness is low; leadership walks the
talk, enjoys credibility & trust; access to people, resources and information is
unrestricted.
Flexible and Adaptive Change is welcome and initiatives are implemented with sincerity
and commitment, diversity is understood and accepted. There is mutual respect for
various ethnic cultures.

55

KEY MILESTONES
2013

Acquires access to Drug Delivery Technology Platforms in the Dermatology

segment through the acquisition of Trigenesis.

2012

Announces a 15-year exclusive product development and marketing agreement for

OTC drugs with Leiner Health Products in the US.

Launches Ibuprofen, first generic product to be marketed under the Dr. Reddys
label in the US.

2011

Conducts its first overseas acquisition BMS Laboratories Limited and Meridian
Healthcare in UK.

2010

Becomes the first Asia Pacific pharmaceutical company, outside Japan, to list on
the New York Stock Exchange. Listed with the symbol RDY on April 11, 2001.

Out-licenses DRF 4158 to Novartis for up to US $55 million upfront payment.

Launches its first generic product, Ranitidine, in the US market.

Becomes the first Indian pharmaceutical company to obtain an 180-day exclusive

marketing rights for a generic drug in the US market with the launch of Fluoxetine
40 mg capsules on August 3, 2001.

2009

Dr. Reddys Laboratories becomes India's third largest pharmaceutical company

with the merger of Cheminor Drugs Limited, a group company.

Reddy US Therapeutics, a wholly-owned subsidiary, is established at Atlanta, US

to conduct target based drug discovery.

56

2008

Acquisition of American Remedies Limited, a pharmaceutical company based in

India.

2007

Licenses anti-diabetic molecule, DRF 2725 (Ragaglitazar), to Novo Nordisk.

2006

Licenses anti-diabetic molecule, DRF 2593 (Balaglitazone), to Novo Nordisk.

Becomes the first Indian pharmaceutical company to out-license an original
molecule.

First ANDA filed with the United States Food and Drug Administration for
Ranitidine.

2005

Sets up of a Joint Venture in Russia.

2004

Makes a GDR issue of USD 48 million.

Foundation stone laid for a finished dosages facility to cater to the highly
regulated markets such as the US.

2003

Dr. Reddy's Research Foundation established. The company drug discovery

programme starts.

2002

First formulation exports to Russia commence.

57

VALUES
We strive for excellence in everything we think, say and do.
Quality: We 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: We seek opportunities to build relationships and leverage
knowledge, expertise and resources to create greater value across functions, businesses
and locations
Harmony & Social Initiatives: We take utmost care to protect our natural environment
and serve the communities in which we live and work.
Our business practices are guided by the highest ethical standards of truth, integrity
and transparency.
TALENT AQUSITION
Dr. Reddys recruits talent from across the world through lateral hiring as well as by
visiting premier campuses.
Campus hiring is done through either:
Business Schools

58

Technical Universities we hire graduates and postgraduates In the areas of

Chemistry, Biologics, Pharmaceutics, Pharmacology and Microbiology among others.
AWARD AND RECOGNITION
Dr. Reddy's has been awarded the National Award for Excellence in Corporate
Governance 2002 instituted by ICSI. A fifteen member Jury headed by Mr. M. N.
Venkatachaliah, Former Chief Justice of India, selected the company for this award.

His Excellency Mr. Bhairon Singh Shekhawat, Hon'ble Vice-President of India

presented the award to our CFO, Mr. V S Vasudevan at a function held on December
31, 2002 at Vigyan Bhavan, New Delhi.

CORE PURPOSE:
To help people lead healthier lives.
VISION:
To become a discovery led global pharmaceutical company.
MISSION:
To be the first Indian pharmaceutical company that successfully takes its
products from discovery to commercial launch globally.

59

CHAPTER IV
DATA ANALYSIS
AND
INTERPRETATION

60

DATA ANALYSIS AND INTERPRETATION

1. I know what is Expected of me at work
Table 1: Work expected from employees.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
40
33
13
7
7
100

Percentage of respondents
40
33
13
7
7
100

Chart 1: work expected from employees

Percentage of respondents

Strongly agree

Agree
40

13

Not decided
Disagree

33

Strongly disagree

Analysis:
40% respondents strongly disagree, 33% respondents agree that they know what is
expected of them , 13% respondents are not yet decided , whereas 7% of the respondents
disagree and strongly disagree that they dont know what is expected of them
Interpretation:
Most of the respondents are aware of the work being expected of them in the
organization.
2. I believe what I do as a worker is important.
Table 2: Importance of worker.
61

Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
27
40
17
10
7
100

Percentage of respondents
27
40
17
10
7
100

Chart 2: Importance of worker.

Percentage of respondents
Strongly agree
3

Agree

Not decided

Disagree
Strongly disagree

12

Analysis:
27%respondents strongly agree, 40% respondents agree that they believe what
they do is important as worker, 10% respondents disagree , whereas 6% of the
respondents strongly disagree that the work they do is not of much importance
Interpretation:
More than half of the respondents believe that what they do as a worker is
important in the organization.
3. I feel respected at work.
Table 3: Feeling respected at work
Options
Strongly agree
Agree
Not decided

Number of respondents
33
30
7
62

Percentage of respondents
33
30
7

Disagree
Strongly disagree
total

17
13
100

17
13
100

Chart 3: Feeling respected at work

Percentage of respondents
Strongly agree
4

10

Agree
Not decided
Disagree

Strongly disagree

Analysis:
33%respondents strongly agree, 30% respondents agree that they are being
respected at work, whereas 16% respondents disagree, and 13% of the
respondents strongly disagree that they are being respected at work.
Interpretation:
More than half of the respondents believe that what they do as a worker is
important in the organization.
4. I have materials and equipments I need to do my job efficiently.
Table 4: Doing job efficiently with materials and equipments.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
13
10
7
47
23
100

Percentage of respondents
13
10
7
47
24
100

Chart 4: Doing job efficiently with materials and equipments.

63

Percentage of respondents
Strongly agree
4

3
2

Agree
Not decided
Disagree
Strongly disagree

14

Analysis:
13%respondents strongly agree, 10% respondents agree that they have materials
and equipments I to do their job efficiently, whereas 47% respondents disagree,
and 23% of the respondents strongly disagree that they are being provided with
required materials and equipments.
Interpretation:
Most of the respondents feel that they dont have necessary materials and
equipments to do their job effectively.
5. I receive the information and communication I need to do my job.
Table 5: Employee receives the information and communication to do their
job.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
33
20
14
23
10
100

Percentage of respondents
33
20
14
23
10
100

Chart5: Employee receives the information and communication to do their

job.

64

Percentage of respondents
Strongly agree
3

10

7
4

Agree
Not decided
Disagree

Strongly disagree

Analysis:
33%respondents strongly agree, 20% respondents agree that they receive all the
information to do their job effectively, whereas 23% respondents disagree, and
10% of the respondents strongly disagree that they have not being communicated
properly.
Interpretation:
Most of the respondents agree that they are receiving all the information and
communication is very transparent, which is helping the employees do their job
effectively.
6. My supervisor or someone at work cares about me as a person.
Table6: Supervisor or someone cares at work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
30
20
17
23
10
100

Chart6: Supervisor or someone cares at work.

65

Percentage of respondents
30
20
17
23
10
100

Percentage of respondents
Strongly agree

Agree
Not decided
Disagree

Strongly disagree

Analysis:
30%respondents strongly agree, 20% respondents agree that their supervisor or
someone cares about them as a person at work, whereas 23% respondents
disagree, and 10% of the respondents strongly disagree that they are cared by their
supervisor.
Interpretation:
Most of the employees feel that their supervisor or someone cares about them as a
person at work.
7. When I feel problem at work, I am able to solve them with the help of others/
supervisors.
Table7: Solve the problem with the help of others.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
43
30
7
10
10
100

Chart7: Solve the problem with the help of others.

66

Percentage of respondents
43
30
7
10
10
100

Percentage of respondents
Strongly agree
10

10

Agree
43

Not decided
Disagree

30

Strongly disagree

Analysis:
43%respondents strongly agree, 30% respondents agree that they are able to solve
their problems with the help of others/supervisors at work, and 10% respondents
disagree, and 10% of the respondents strongly disagree that they are able to solve
their problems with the help of others/supervisors.
Interpretation:
Most of the employees agree that they are able to solve their problems with the
help of others.
8. My Supervisor helps me know what is expected of me.
Table 8: Supervisor helps them to know what is expected.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
27
27
3
23
20
100

Percentage of respondents
27
27
3
23
20
100

Chart8: Supervisor helps them to know what is expected.

67

Percentage of respondents
Strongly agree
20

Agree

27

Not decided
23

Disagree
3

27

Strongly disagree

Analysis:
27%respondents strongly agree, 27% respondents agree that they receive help
from supervisor to know what is expected of them, whereas 23% respondents
disagree, and 20% of the respondents strongly disagree that their supervisor helps
them to know what is expected of them.
Interpretation:
Most of the employees not receive help from their supervisor to know what is
expected of them.
9. My supervisor provides me feedback, and guidance on my work.
Table 9: Receives feedback and guidance from supervisor.

Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
23
40
27
3
7
100

Percentage of respondents
23
40
27
3
7
100

Chart9: Receives feedback and guidance from supervisor.

68

Percentageof respondents

3 7

Strongly agree
Agree

23

Not decided

27

Disagree
40

Strongly disagree

Analysis:
23%respondents strongly agree, 40% respondents agree that they receive feedback
and guidance from supervisor at work, whereas 3% respondents disagree, and 7%
of the respondents strongly disagree that they.
Interpretation:
Most of the employees receive feedback and guidance from their supervisor at
work.
10. At work, my opinions and ideas seems to count.
Table 10: Opinions and ideas seems to count.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
30
17
10
23
20
100

Chart10: Opinions and ideas seems to count.

69

Percentage of respondents
30
17
10
23
20
100

Percentage of respondents
Strongly agree
20

Agree

30

23
10

Not decided
Disagree

17

Strongly disagree

Analysis:
30%respondents strongly agree, 17% respondents agree that their opinions and
ideas seems to count at work, whereas 23% respondents disagree, and 20% of the
respondents strongly disagree that their Opinions are taken into count while
decision making.
Interpretation:
Most of the employees feel that their opinions and ideas seems to count at work
and also their ideas are taken into decision making.

11. There is someone at work that encourages my development.

Table11: Someone at work that encourages my development.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
27
20
20
13
20
100

Percentage of respondents
27
20
20
13
20
100

Chart11: Someone at work that encourages my development.

70

Percentage of respondents
Strongly agree
20

Agree

27

Not decided

13
20

20

Disagree
Strongly disagree

Analysis:
27%respondents strongly agree, 20% respondents agree that there is someone at
work who encourages the development of employee, and 13% respondents
disagree, and 20% of the respondents strongly disagree that there is no one in the
Organization who encourages the development.
Interpretation:
Most of the respondents agree that there is someone at work who encourages the
development of the employee.
12. I have enough opportunities at my job to grow and develop.
Table12: Opportunities to grow and develop.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
total

Number of respondents
23
20
27
13
17
100

Chart12: Opportunities to grow and develop.

71

Percentage of respondents
23
20
27
13
17
100

Percentage of respondents
Strongly agree
17

Agree

23

Not decided

13
20
27

Disagree
Strongly disagree

Analysis:
23%respondents strongly agree, 20% respondents agree that they have enough
opportunities to grow and develop in the Organization, whereas 13% respondents
disagree, and 17% of the respondents strongly disagree that they have enough
opportunities to grow and develop in the Organization.
Interpretation:
Most of the respondents get enough opportunities to grow and develop in the
Organization.
13. I regularly receive recognition/ praise for doing good work.
Table13: Employees receive regular recognition and praise for work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
30
27
20
13
10
100

Percentage of respondents
30
27
20
13
10
100

Chart13: Employees receive regular recognition and praise for work.

72

Percentage of respondents
Strongly agree
13

10

Agree

30

Not decided
Disagree

20
27

Strongly disagree

Analysis:
30%respondents strongly agree, 27% respondents agree that they receive regularly
recognition/praise for doing the good work, whereas 13% respondents disagree,
and 10% of the respondents strongly disagree that they receive regularly
recognition/praise for doing the good work they do in the Organization.
Interpretation:
Most of the employees regularly receive recognition/praise for the good work they
do in the Organization.
14. I believe that I am evaluated based on quality of my work.
Table14: Evaluated based on quality of my work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
20
27
30
13
10
100

Chart14: Evaluated based on quality of my work.

73

Percentage of respondents
20
27
30
13
10
100

Percentage of respondents

13
30

10

Strongly agree
20

Agree
Not decided
Disagree

27

Strongly disagree

Analysis:
20%respondents strongly agree, 27% respondents agree that their work is being
evaluated based on quality of work they do, whereas 13% respondents disagree,
and 10% of the respondents strongly disagree to the statement.
Interpretation:
Most of the employees believe that their work is being evaluated based on quality
of work they do.
15. My colleagues listen to my ideas and opinions.
Table15: Colleagues listen to my ideas and opinions.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
17
13
27
23
20
100

Percentage of respondents
17
13
27
23
20
100

Chart15: Colleagues listen to my ideas and opinions.

74

Percentage of respondents
Strongly agree
20

17

Agree
13

23

Not decided
Disagree

27

Strongly disagree

Analysis:
17%respondents strongly agree, 13% respondents agree that their colleagues
openly listen to their ideas and opinions, whereas 23% respondents disagree, and
20% of the respondents strongly disagree .
Interpretation:
Most of the employees disagree that their colleague openly listen to their ideas
and opinions in the organization.
16. I can make meaning full decisions about how I do my job.
Table16: Making meaning full decisions.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
40
30
17
10
3
100

Chart16: Making meaning full decisions.

75

Percentage of respondents
40
30
17
10
3
100

Percentage of respondents

10

Strongly agree

Agree
40

17

Not decided
Disagree
Strongly disagree

30

Analysis:
40%respondents strongly agree, 30% respondents agree that they can make
meaningful decisions at work, whereas 10% respondents disagree, and 3% of the
respondents strongly disagree to the statement.
Interpretation:
Most of the respondents agrees that they are given chance to make meaningful
decisions at work.
17. I have a close friend whom I can share my ideas or problems.
Table17: Sharing Ideas or problems at work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
20
23
27
17
13
100

Chart17: Sharing Ideas or problems at work.

76

Percentage of respondents
20
23
27
17
13
100

Percentage of respondents
Strongly agree
13

20

Agree

17

Not decided
23

Disagree

27

Strongly disagree

Analysis:
20%respondents strongly agree, 23% respondents agree that they have a close
friend at work whom they can share ideas or problems, whereas 17% respondents
disagree, and 13% of the respondents strongly disagree.
Interpretation:
Most of the respondents agree to have a close friend whom they can share ideas or
problems.

18. The benefits offered here are fair and reasonable.

Table18: Fair and reasonable benefits offered.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
13
13
4
40
30
100

Chart18: Fair and reasonable benefits offered.

77

Percentage of respondents
13
13
4
40
30
100

Perentage of respondents
Strongly agree
13

30

13
4

Agree
Not decided
Disagree
Strongly disagree

40

Analysis:
13%respondents strongly agree, 13% respondents agree that the benefits offered
in the Organization are fairly reasonable, whereas 40% respondents disagree, and
30% respondents strongly disagree to the statement.
Interpretation:
Most of the respondents disagree to receive fair and reasonable benefits.

19. The people here are pleasant and cooperative to work with.
Table19: Pleasant and cooperative employees.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
17
13
20
27
23
100

Chart19: Pleasant and cooperative employees.

78

Percentage of respondents
17
13
20
27
23
100

Percentage of respondents
Strongly agree
23

17

Agree
13

27

Not decided
Disagree

20

Strongly disagree

Analysis:
17%respondents strongly agree, 13% respondents agree that the people of the
Organization are pleasant and co-operative to work with, whereas 27%
respondents disagree, and 23% of the respondents strongly disagree to the
statement.
Interpretation:
Most of the employees disagree that the people in the Organization are pleasant
and co-operative to work with.
20. I am proud to work in this Organization.
Table 20: Proud to work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
27
37
20
10
6
100

Chart20: Proud to work.

79

Percentage of respondents
27
37
20
10
6
100

Percentage of respondents

10

Strongly agree

27

Agree
Not decided

20

Disagree
Strongly disagree

37

Analysis:
27%respondents strongly agree, 37% respondents agree that they are proud to
work in the Organization, whereas 10% respondents disagree, and 6% respondents
strongly disagree to the statement.
Interpretation:
Most of the respondents are proud to work in this Organization.

21. I would recommend the organization as a good place to work.

Table 21: Recommending the organization as a good place to work.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
27
20
17
23
13
100

Percentage of respondents
27
20
17
23
13
100

Chart21: Recommending the organization as a good place to work.

80

Percentage of respondents
Strongly agree
13

Agree

27

Not decided

23
17

Disagree

20

Strongly disagree

Analysis:
27%respondents strongly agree, 20% respondents agree to recommend the
organization as a good place to work, whereas 23% respondents disagree, and
13% respondents strongly disagree to the statement.
Interpretation:
Most of the respondents feels that the Organization as a good place to work and
recommend to others also.

22. Overall I have confidence in the senior managers at company.

Table 22: Have confidence in the senior managers.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
30
23
33
7
7
100

Percentage of respondents
30
23
33
7
7
100

Chart22: Have confidence in the senior managers.

81

Percentage of respondents

Strongly agree

30

33

Agree
Not decided
Disagree

23

Strongly disagree

Analysis:
30%respondents strongly agree, 23% respondents agree that they have confidence
in their senior managers at the company, 33% respondents not decided, whereas
7% of the respondents disagree and 7% respondents strongly disagree to the
statement.
Interpretation:
Most of the respondents not decided that they have confidence in their senior
managers at the company.
23. Overall I am extremely satisfied with my job.
Table 23: Satisfaction with job.
Options
Strongly agree
Agree
Not decided
Disagree
Strongly disagree
Total

Number of respondents
17
10
9
37
27
100

Chart23: Satisfaction with job.

82

Percentage of respondents
17
10
9
37
27
100

Percentage of respondents
Strongly agree
17

27

Agree
10

Not decided

Disagree
Strongly disagree

37

Analysis:
17%respondents strongly agree, 10% respondents agree that they are extremely
satisfied with their job, whereas 37% respondents disagree, and 27% respondents
strongly disagree.
Interpretation:
Most of the respondents are not satisfied with their jobs in the organization.

CHAPTER V
FINDINGS, SUGGESTIONS
83

AND
CONLUSIONS

84

FINDINGS
The employees of the company know very well what is expected of them so we
can say that employees are very much clear of their work.
Employees of the company are not provided with the material and equipment that
are necessary to do their job effectively
Organization is having a clear and transparent communication within the
Organization and all the information is given to employees on time which helps
the employees to their job effectively.
A supervisor in the organization always helps the employees to grow and develop
in their career.
Supervisor gives reasonable amount of freedom and also chances to the
employees to make meaning full decisions at work
Most of the employees feel that the benefits offered in company are not fair and
reasonable.
Most of the employees are not satisfied with the people in the organization as they
are not co operative in working.
Most of the employees are proud to work in this organization and also they want
to recommend this organization to others as a best place to work.
There is no confidence by the employees on the senior managers.
Most of the employees feel that they have very good friends in the organization
with which they can share all their ideas and problems.
17% of the employees strongly agree that they are not satisfied with their jobs. .

85

SUGGESTIONS
Company should take appropriate measures to check the employee satisfaction
regularly as employee satisfaction is a key to employee retention.
Company can increase the role of the employee by considering their suggestions
or ideas about service or product and also using their suggestion in decision
making will make employees engaged.
Employees of the company need to be provided with the materials and equipment
that are necessary to do their job effectively
Review meetings should be often held so that working pattern of employees can
be checked and improved if needed.
Employees need to be more self enthusiastic and aggressive towards their work.
Company should try to engage employees to raise job satisfaction and
commitment to the organization.
Help employees to understand the organizations mission and goals by clearly
stating what they are.
Investing in employees development so their past efforts are rewarded and they
can envision a future with the company is a greater way to retain employees.
Company should hire the right employee for the right job so that employees
remain content with their work and employer.
Business should keep their job realistic and have an orientation program that
thoroughly familiarizes employees with the work place and their job roles and
responsibilities.
Company should provide flexible time schedule and generous leave benefits to
increase engagement.
Employers should offer compensation that involves employees in the future of the
company, such as offering stock options and profit sharing.

CONCLUSION

86

It is concluded that the employees is an integral part of any organization and is very
useful to both the employees as well as employers after concluding the study and with the
help of questionnaire. The fact that few employers measure the impact of health and
benefits can have on productivity, or return on investment maybe short sighted.
Companies need loyal, talented and productive staff to remain with them, not just in
difficult times but also when economy starts to recover. Employees who feel they are
treated well and are being taken care of are more to stay with the organization in the long
term. Those who dont may move on at the first opportunity, and thats a risk that many
companies cannot afford to take.

Therefore employee engagement should be a continuous process of learning,

improvement, measurement and action.

Research studies have thus made a contribution in adding an additional P to the

4Ps of marketing i.e., Product, Price, Place, Promotion and now People to the mix.
Employees at all levels should be involved in the development, implementation

and review of recognition programs and practices.

When recognition is the result of a group or team effort, all contributing members

of the team should be recognized.

Employees must be given stimulating and worthwhile jobs to feel part of a

successful organization and for their work to bottom-line.

Let the employees or the top performers know that they are identified as high
potential so that they will become invested in remaining in the organization.

87

BIBLIOGRAPHY

88

BIBLOGRAPHY & REFERENCES:

BOOKS:
Kotler Philip, marketing management, 4th edition, prentice hall of India
pvt.Ltd.New Delhi.
Kothari C.R(2000) research methodology, 7th edition, vishwa publications, New
Delhi.
Beri G.C(2001), marketing research, 1st edition, Tata McGraw-hill publicating
Co.Ltd.New Delhi.
Dr.Sharma D.D(2002). Marketing research, 2nd edition, Sultan Chand & sons
educational publications new delhi.
Saxena Rajan(1992) marketing management 5th edition, Tata McGraw-hill
publicating Co.Ltd.New Delhi.
Verma H.V(1996). Marketing of services, 10th edition, Global business press,
New Delhi.
Business today magazine of August issue,2008.

Websites:

www.citehr.com
www.wikipedia.com
www.hr_survey.com - employee engagement.html
www.hrsolutionsinc.com
www.google.com

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