CHAPTER: 1

INTRODUCTION
Human resource management (HRM) is concerned with the personnel policies and
managerial practices and systems that influence the workforce. In broader terms,
all decisions that affect the workforce of the organization concern the HRM
function.
The activities involved in HRM function are pervasive throughout the
organization. Line managers, typically spend more than 50 percent of their time
for human resource activities such hiring, evaluating, disciplining, and scheduling
employees. Human resource management specialists in the HRM department help
organizations with all activities related to staffing and maintaining an effective
workforce. Major HRM responsibilities include work design and job analysis,
training and development, recruiting, compensation, team-building, performance
management and appraisal, worker health and safety issues, as well as identifying
or developing valid methods for selecting staff. HRM department provides the
tools, data and processes that are used by line managers in their human resource
management component of their job.
The HRM focus should always be maintaining and, ideally, expanding the
customer base while maintaining, and ideally, maximizing profit. HRM has a
whole lot to do with this focus regardless of the size of the business, or the
products or services you are trying to sell. (Dr. James Spina, former head of
Executive Development at the Tribune Company). HRM is involved in managing
the human resources with a focus on expanding customer base that gives profit to
the company. The bottom line of the company is the focus of the HRM department
as well as the function.
Acquiring human resource capability should begin with organizational design and
analysis.

1.1 NEED OF THE STUDY:

Of the late there is much talk about the quality in every aspect viz. Quality
of product, quality of raw materials and inputs there in, quality of packing, quality
product development and not but the least the importance of consumer who is the
king in the market. But seldom mentioned about the quality of work life and
quality of life which is pivotal aspects in everyones life.
To introduce the HRD practices into the organization it is important to have
conductive atmosphere. QWL is one of the most important factors which lead to
such conductive atmosphere. It produces more humanized jobs. It attempts to
serve the higher order needs of employees as well as their basic needs. It seeks to
employees and provides an atmosphere that encourages than to improve their
skills. The idea is that employees are human resources that are developed rather
than simply used. Good QWL leads to an atmosphere of good interpersonal
relations and highly motivated employees who strive for their development. It
stresses to redesign jobs to have the attributes designed by the people.
Organization with predictive QWL will ensure enthusiasm work environment with
opportunities for everyone to give his best. Such conditions provide job
satisfaction and pride in the company. Job itself becomes motivating factor with a
sense of participation and involvement. Self management and self control being
the innate quality, autonomous work group focus is shifted from managing
themselves.

1.2 SCOPE OF THE STUDY:

The study helps to evaluate the attitude of employees towards policies. The study
will be helpful in understanding the current position of the company, and provide
some strategies to extend the employees satisfaction with little modification which
is based on the internal facilities of the company. It can be further used to evaluate
the facilities provided by the management towards the employees. Also helps in
finding the basic expectation of the employees. QWL focus on the problem of
creating a human working environment where employees work co operatively
and achieve results collectively. It includes the programme seeks to promote
human dignity and growth. The programmes assume compatibility of people and
organization

1.3 OBJECTIVES OF THE STUDY

The basic objectives of quality of work life are
1. To study the development and utilization of human resources effectively, and to
know the number of employees who are satisfied with QWL in the organisation.
2. To study the development of quality products, and to know the measures taken
by the organization to improve the QWL
3. To know the methods to improve the quality of work life and to know whether
improved QWL leads to improved productivity of the organisation.
4. To know whether QWL motivates the employees to learn further for present and
future roles.

1.4 RESEARCH METHODOLOGY

This research has been carried out on the basis of data was collected
through an exhaustive search on company website, HR manuals, quality journals,
personnel management and human resource management boss. Lately, a self
designed questionnaire was developed on the basis for both the executives and the
workers differently. The responses were summed up from the filled in
questionnaire all the questionnaire are analysed and interpreted and represented in
the form of column and pie-diagrams.
SOURCES OF COLLECTING PRIMARY DATA:

Closed ended questionnaire

Interview with the concerned people
Sampling techniques and Observation
SOURCES OF COLLECTING SECONDARY DATA:

HR Manual Quality journals

Personnel Management book
Human Resource Management book
Companys official website was also used as secondary data
Web Search

SAMPLE DATA:
The sample size taken for survey is 30. The sample was collected keeping in view
all the middle and lower level executives in the organization,

1.5 LIMITATIONS OF THE STUDY:

6

1. The sample doesnt cover all the employees in the organisation due to time
constraints.
2. The knowledge of the employees regarding the quality of work life is taken for
granted which may not be true because the understanding and knowledge of
various persons in the organisation varies from member to member.
3. There may be a translating problem and the interpretation of the question in their
own language may differ from English, this may have changed the respondents
reply.
4. The employees take their own time in filling the form. One therefore cannot be
certain whether the responses given have been manipulated or represent his/her
original thoughts.
5. Since all questions in the questionnaire have only five options, the respondents
may not have exactly given their opinion.
6. Also the fear of appraisal by the management may have forced the respondents
to reply positively towards management.

CHAPTER: 2

2.1 REVIEW OF LITERATURE:

Robbins 1998 defines QWL as QWL is a process by which an

organisation responds to employee needs by developing mechanisms to
allow members to share fully in making decisions that design their lives at
work.

Davis (1983) defines QWL as "the quality of the relationship between

employees and the total working environment, with human dimensions
added to the usual technical and economic considerations".

Hackman and Oldhams (1980) define QWL in relation to the interaction

between work environment and personal needs. The work environment
that is able to fulfill employees personal needs is considered to provide a
positive interaction effect, which will lead to an excellent QWL.

Lawler (1982) defines QWL in terms of job characteristics and work

conditions. He highlights that the core dimension of the entire QWL in the
organization is to improve employees well-being and productivity.

Recent definition by Serey (2006) on QWL is quite conclusive and best

meet the contemporary work environment. The definition is related to
meaningful and satisfying work. It includes
9

(i) An opportunity to exercise ones talents and capacities, to face challenges and
situations that require independent initiative and self-direction;
(ii) An activity thought to be worthwhile by the individuals involved;
(iii) An activity in which one understands the role the individual plays in the
achievement of some overall goals; and
(iv) A sense of taking pride in what one is doing and in doing it well.

Beukema (1987) describes QWL as the degree to which employees are able to
shape their jobs actively, in accordance with their options, interests and needs. It is
the degree of power an organization gives to its employees to design their work.

Lau, Wong, Chan and Law (2001) operationalised QWL as

the favourable

working environment that supports and promotes satisfaction by providing

employees with rewards, job security and career growth opportunities.

According

to

AMERICAN

SOCIETY

OF

TRAINING

AND

DEVELOPMENT, Quality of work life is a process of work

organisations, which enables its members at all levels to actively
participate in shaping the organisations environment, methods and
outcomes.

10

2.2 PROJECT PROFILE

The quest for improved productivity through human resources has its beginning in
the early 1900s. F.W.Taylors scientific management principles created a new
awareness regarding human resources. Who were earlier considered as mere
instruments of production, ready to work from dawn to dusk under whatever
condition and being motivated by the lure of money.
From then till today continuous research and experiments have been undertaken to
understand human beings at work and the ways to improve their job satisfaction,
balanced with the aim of the organisations to combine better productivity with the
job and employee satisfaction in order to achieve this twin objective, different
approaches have been developed and applied. The concept of quality of work life
has originated from this continuous research process.
"Quality of Work Life" is a term that had been used to describe the broader jobrelated experience an individual has. Quality of work life refers to the
favourableness and unfavourableness of the job environment for people. The basic
traditional job design of scientific management focused mostly on specialisation
and efficiency for the performance of narrow tasks. As it evolved, it used full
division of labour, rigid hierarchy and standardisation of labour to reach its
objective labour purpose to develop jobs that are outstanding for the people. The
basic purpose is to develop jobs that are outstanding for people and production.
Quality of work life is a large step forward from that could be trained easily to do
a small part of a job. Redesign jobs to have the attributes desired by the people
and resigned organisations to have environment desired by the people. This
approach seems to improve Quality of Work life. There is a need to give workers
more of a challenge, more of a whole task, more opportunity to use advanced
skills, more opportunity for growth and more chance to contribute their ideas.
The new approach is to provide a careful imbalance of human imperative and the
technological imperative. Jobs are required to fit people as well as technology.
This is a new set of values and new way of thinking that focuses on quality of
worklife.
11

DIMENSIONS OF QUALITY OF WORK LIFE:

There have been divergent views as to what really is QWL. It has become
an umbrella term for a host of activities and has been defined differently by
different people at different times. Glasier (1976) thinks that the term QWL more
than job security, good working conditions, adequate and fair compensations,
more even than an equal employment opportunity. Furthermore, the concept of
QWL is considered as multidimensional (Davis and Cherns, 1975 ; Lee and
Kanungo, 1984; Mirves and Lawler, 1984) .Walton (1982) provides eight
conceptual categories for analyzing the features of QWL. They are;

Adequate and fair compensation: It plays a greater role in employees

satisfaction. What is adequate of course in one place may not be the same in the
other. Organisational at rural, semi-urban regions can satisfy their employees
with comparatively low level of computation than the urban- based counter parts.

Safe and Healthy working conditions: physical working conditions are the
second most important aspect in measuring the Quality of Work life. Employees
who spend a lot of time at their work place consider the physical condition as an
important factor.

Immediate opportunity to use and develop human capacities: An employee is

the most satisfied given an opportunity to use and develop this capability.
According to Mallow, people want to satisfy their higher needs which include
recognition and social status.

12

Future opportunity for continual growth and security: Employees tend to

drift from a job, which does not provide career growth. Prolonged employment
in the same position may call growth for employees at the same level so that
balance in the organisation is maintained.

Constitutionalism: bias on management, lack of privacy, improper process of

discipline etc temper constitutionalism of an organisation. The constitutionalism
can be considered as a hygiene factor. Though it may not satisfy or motivate the
employees considerably but the absence of it is definitely felt by the employees
and may have adverse effect.

Work and Quality of work life: the very purpose of worker being at his work
place is his work. Wait factory work can influence the employees quality of
work life immensely and challenging work which utilizes the capabilities of the
employees plays an important role in QWL. Right person for the right job is the
motto gaining importance.

Social relevance of work life: the employees feel a need to relate their jobs
socially and are more satisfied if they satisfied they are able to relate their jobs.
In such organisation is attached criticised by the government of public in any
aspect, the employees develop stress and frustration. As such social relevance is
very important.

PRE-REQUISITES FOR PRO-ACTIVE QWL:

The pre-requisites for evolving and sustaining a pro-active QWL interlay are:

Top management co ideology on envisioned future.

An open and participative management style.
A pro-active and institutionalised leadership.
13

Fair recruitment and selection process.

Integration of employees with common goals.
Free flow of communication with focus on work place.
Tolerance desists in allowing people to differ and express their frank opinion.
Compensation system with linkage to results.
Nurturing healthy company rules.
The QWL movement aims at improving socio psychological needs of human
beings, the unique requirements and constraints of a particular technology, the
structure and process of organisation and the existing cultural system. It is the
process of the movement in community and social life. The nature of work one
involved has therefore profound impact on not only shaping his personality or
determining his performance level in the organisation but also on commitment to
his fellow men in the society. Thus it is imperative to bring about an improvement
with Quality of Life at work that can and does lead to qualitative improvement in
other facets of ones life.
Various approaches have been adopted indifferent socio cultural contexts to
improve the QEL such as quality circles, team work, autonomous work groups,
flexi time and self management. Centre to their approaching has been the direct
participation of the employees in affairs reading to the work leading to increase
autonomys control and self-direction. Therefore the Quality of Working Life
movements provide related to technological choice and human resources
development in countries like India.

FEATURES:
The Quality of work life project has included some of the following features:

Voluntary involvement on the part of employees.

Union agreement with the process and participation in it.
Assurance of no loss of jobs as a result of the programs.
Training of employees in team problem solving.

14

The use of quality circles where employees discuss problems affection the

performance of the plant and the work environment.

Work team participation in forecasting work plan and team leader and team

member selection
Regular plant and the team meetings to discuss such matters as quality, safety,

customer order and schedules.

Encouragement of skill development and job rotation within work team.
Skill training.
Responsiveness to employee concern.
The organisation should have the following characteristics:

The need of appositive climate, which should be promoted by both management

and employees.
The need to ensure that the policies and systems, which are devised for the
control to risk from the organisations operation, stake proper according to human

capabilities.
Demonstration by senior management of their active involvement, thereby

galvanizing managers throughout the organisation into action.

Created leadership where by an environment is which encourages safe behaviour.

ACTIVITIES AND CONCERNS:

Hours of work and arrangements of working time.
Work organisation and job content.
Impact of new technologies on working conditions.
Working conditions of women, young worker, older workers and other special
categories.
Work related welfare service and facilities.
Shop floor participation in the improvement of working conditions.
15

EVALUATION:
The theories of motivation and leadership provided a sound base for the
concept of QWL. Maslow depicted the complexity of human nature by describing
various levels of human needs and satisfaction. As soon as the lower order needs
are satisfied, people seed satisfaction for the higher- order needs. Herzberg went a
step further, and distinguished hygiene factors which maintain a reasonable level
of motivation and the motivational factors, which can improve employee

16

performance. McGregor in his Theory Y assumed that under proper conditions

people have the potential to work with responsibility.
Organizations, in the past gave more importance on advanced technology for
higher productivity surpassing the needs and mental state of its employees. This
created a negative impact on the working environment among the employees.
Thus it was realised that social support goes hand with technical innovations. This
integration can only be made through Quality of worklife programs.
QWL has its roots in the scientific management advocated by F.W.Taylors way
back in 1940s. The mechanical approach of the quantitative approach gave way to
the frustration of workers, which led to human relations movement, and later
socio-technical movement which is the basis for todays QWL was mainly in
phases.

Scientific management.
Human relations movement.
Socio-technical movement.

IMPLEMENTATION:
THE ROLE OF SUPERVISOR IN QWL:
The supervisor is one key to the quality of work life. A study by University of
Michigan which sought to relate a large number of characteristics of workers jobs
to overall satisfaction illustrates the wide variety of ways by which supervisory
behaviour affects subordinate satisfaction.

17

PHYSICAL CONDITIONS:
The regulation on work place health, safety and welfare require employees
to address workplace hazards including for example workplace layout, flooring,
ventilation and thermal environments, lighting etc.
Employees also have a general duty under section 2 of the health and safety at
work at
1974 to ensure so far as is reasonably practical, the health safety and welfare of
their employees at work they should ensure that workplaces under their control
comply with all their regulation.
They should be arranged so that each task can be carried out safety and
comfortably, the worker should be at a suitable height in relation to the work
surface. Work materials and frequently used equipment or controls should within
each reach without undue bending or stretching. Each workstation should also
allow any person who is likely to work their adequate freedom of movement and
to be free from obstructions or clutter.

WORK EQUIPMENT
The PUWER (Provisions and uses of work equipment regulation) lay down
important health and safety lawn for the provision and use of work equipment.
The primary objective of PUWER is to ensure the provision of safe work
environment and it safe use. Several components are:

Nature of work equipment.

Suitability for the job
Its maintainability
Specific risks
Energy sources
18

Operator training, information and instructions.

PATTERNS OF WORK WITH SYSTEMS:

The organisations of work and working hours include the length and
regularity of the work period, the balance between the work and rest during these
periods and the major question of shift work.
These are some shift systems that are more favourable than other are. Its
recommendations are made on the basis of physiological and social factors ad
includes the following:

Night work should be reduced as much as possible.

Extended workday should only be contemplated if
The nature of the work and workload are suitable.

For absentees.
An early start for the morning shift should be avoided where possible. In all shift
systems flexible working time arrangements are realizable, the highest flexibility

being achieved in time autonomous groups.

Quick changeovers should be avoided.

TO IMPROVE QUALITY OF WORK LIFE:

Job characteristics.
Pay
Benefits
Workplace conditions.
Recognition.
Work-relationships
Advancement opportunities.
Management support
Work/life balance:
Childcare
19

Elder care
Parenting
Tele commuting.

CHAPTER: 3
20

3.1 INDUSTRY PROFILE:

The pharmaceutical industry develops, produces, and markets drugs or
pharmaceuticals licensed for use as medications. Pharmaceutical companies are
allowed to deal in generic and/or brand medications and medical devices. They are
subject to a variety of laws and regulations regarding the patenting, testing and
ensuring safety and efficacy and marketing of drugs. The word pharmaceutical
comes from the Greek word Pharmakeia. The modern transliteration of
Pharmakeia is Pharmacia
Most of today's major pharmaceutical companies were founded in the late 19th
and early 20th centuries. Key discoveries of the 1920s and 1930s, such
as insulin and penicillin, became mass-manufactured and distributed. Switzerland,
Germany and Italy had particularly strong industries, with the UK, US, Belgium
and the Netherlands following suit.

21

Legislation was enacted to test and approve drugs and to require appropriate
labeling. Prescription and non-prescription drugs became legally distinguished
from one another as the pharmaceutical industry matured. The industry got
underway in earnest from the 1950s, due to the development of systematic
scientific approaches, understanding of human biology (including DNA) and
sophisticated manufacturing techniques.
Numerous new drugs were developed during the 1950s and mass-produced and
marketed through the 1960s. These included the first oral contraceptive, "The
Pill", Cortisone, blood-pressure drugs and other heart medications. MAO
Inhibitors, chlorpromazine (Thorazine), Haldol (Haloperidol) and the tranquilizers
ushered in the age of psychiatric medication. Valium (diazepam), discovered in
1960, was marketed from 1963 and rapidly became the most prescribed drug in
history, prior to controversy over dependency and habituation.
Attempts were made to increase regulation and to limit financial links between
companies and prescribing physicians, including by the relatively new U.S. Food
and Drug Administration (FDA). Such calls increased in the 1960s after
the thalidomide tragedy came to light, in which the use of a new anti-emetic in
pregnant women caused severe birth defects. In 1964, the World Medical
Association issued its Declaration of Helsinki, which set standards for clinical
research and demanded that subjects give their informed consent before enrolling
in an experiment. Pharmaceutical companies became required to prove efficacy in
clinical trials before marketing drugs.
Cancer drugs were a feature of the 1970s. From 1978, India took over as the
primary center of pharmaceutical production without patent protection.
The industry remained relatively small scale until the 1970s when it began to
expand to a greater rate. Legislation allowing for strong patents, to cover both the
process of manufacture and the specific products came in to force in most
countries. By the mid-1980s, small biotechnology firms were struggling for
22

survival, which led to the formation of mutually beneficial partnerships with large
pharmaceutical companies and a host of corporate buyouts of the smaller firms.
Pharmaceutical manufacturing became concentrated, with a few large companies
holding a dominant position throughout the world and with a few companies
producing medicines within each country.
The pharmaceutical industry entered the 1980s pressured by economics and a host
of new regulations, both safety and environmental, but also transformed by new
DNA chemistries and new technologies for analysis and computation. Drugs for
heart disease and for AIDS were a feature of the 1980s, involving challenges to
regulatory bodies and a faster approval process.

RESEARCH AND DEVELOPMENT:

Drug discovery is the process by which potential drugs are discovered or

designed. In the past most drugs have been discovered either by isolating the
active ingredient from traditional remedies or by serendipitous discovery. Modern
biotechnology often focuses on understanding the metabolic pathways related to a
23

disease state or pathogen, and manipulating these pathways using molecular

biology or biochemistry. A great deal of early-stage drug discovery has
traditionally been carried out by universities and research institutions. Public
funding accounts for 80% of the amount spent on basic research for new drugs and
vaccines in the United States.
Drug development refers to activities undertaken after a compound is identified
as a potential drug in order to establish its suitability as a medication. Objectives
of drug development are to determine appropriate Formulation and Dosing, as
well as to establish safety. Research in these areas generally includes a
combination of in vitro studies, in vivo studies, and clinical trials. The amount of
capital required for late stage development has made it a historical strength of the
larger pharmaceutical companies. Suggested citation: Tufts Center for the Study of
Drug Development, Annual Impact Report, http://csdd.tufts.edu/
Often, large multinational corporations exhibit vertical integration, participating in
a broad range of drug discovery and development, manufacturing and quality
control, marketing, sales, and distribution. Smaller organizations, on the other
hand, often focus on a specific aspect such as discovering drug candidates or
developing formulations. Often, collaborative agreements between research
organizations and large pharmaceutical companies are formed to explore the
potential of new drug substances.

The cost of innovation

Drug companies are like other companies in that they manufacture products that
must be sold for a profit in order for the company to survive and grow. They are
different from some companies because the drug business is very risky. For
24

instance, only one out of every ten thousand discovered compounds actually
becomes an approved drug for sale. Much expense is incurred in the early phases
of development of compounds that will not become approved drugs. In addition, it
takes about 7 to 10 years and only 3 out of every 20 approved drugs bring in
sufficient revenue to cover their developmental costs, and only 1 out of every 3
approved drugs generates enough money to cover the development costs of
previous failures. This means that for a drug company to survive, it needs to
discover a blockbuster (billion-dollar drug) every few years.
Drug discovery and development is very expensive; of all compounds investigated
for use in humans only a small fraction are eventually approved in most nations by
government appointed medical institutions or boards, who have to approve
new drugs before they can be marketed in those countries. In 2010 18 NMEs
(New Molecular Entities) were approved and three biologics by the FDA, or 21 in
total, which is down from 26 in 2009 and 24 in 2008. On the other hand, there
were only 18 approvals in total in 2007 and 22 back in 2006. Since 2001, the
Center for Drug Evaluation and Research has averaged 22.9 approvals a year. This
approval

comes

only

after

heavy

investment

in pre-clinical

development and clinical trials, as well as a commitment to ongoing safety

monitoring. Drugs which fail part-way through this process often incur large costs,
while generating no revenue in return. If the cost of these failed drugs is taken into
account, the cost of developing a successful new drug (New chemical entity or
NCE), has been estimated at about 1.3 billion USD (not including marketing
expenses).

GLOBAL CONTEXT:
The pharmaceuticals industry spans a spectrum of activity from the technology
intensive R&D segment associated with innovative drugs through to the
25

production of generic and over-the-counter medicines. The industry is dominated

by horizontally and vertically integrated multinational entities and is more
research intensive than most other industries.

Worldwide industry sales are projected to grow strongly at 7.5 per cent per annum
over the next five years. Espicom Business Intelligence estimate that the annual
sales of pharmaceuticals will reach US$852 billion in 2009 and project it will
reach US$1,158.5 billion in 2014. The markets driving this change will be:

Central/Eastern Europe, with 9.7 per cent growth per annum

The Americas, with 7.3 per cent growth per annum

Middle East and Africa, with 8.6 per cent growth per annum

Asia/Pacific, with 4.9 per cent growth per annum

Western Europe, with 6.8 per cent growth per annum.

These data show that the global market for drugs is large and growing, that
pharmaceuticals industry sales are concentrated in developed countries, that half
of all sales are made by the top 10 global companies, but that there is still a
reasonable degree of international competition at an industry level.

MAJOR PHARMECUTICALS COMPANIES:

India based pharmaceutical companies are not only catering to the domestic
market and fulfilling the countrys demands, they are also exporting to around 220
26

countries. They are exporting high quality, low cost drugs to countries such as the
US, Kenya, Malaysia, Nigeria, Russia, Singapore, South Africa, Ukraine,
Vietnam, and more. Currently, the US is the biggest customer and accounts for 22
percent of the sectors exports, while Africa accounts for 16 percent and the
Commonwealth of Independent States (CIS) places around eight percent of orders,
as per Research and Market report.
For most of the pharma companies, domestic business contributes in the range of
20-50% of the overall revenue. US business contribution stands at 20-30% and
remaining comes from the Row markets.

Leading Indian Players by Sales

Company
Cipla
Ranbaxy Lab
Dr Reddy's Labs
Sun Pharma
LupinLtd
Aurobindo Pharma
Piramal Health
Cadila Health
Matrix Labs
Wockhardt

Sales in US $Mn
6,368.06
5,687.33
5,285.80
1,985.78
4,527.12
4,229.99
1,619.74
2,213.70
1,894.30
651.72

Year End
March 2011
December 2010
March 2011
March 2011
March 2011
March 2011
March 2011
March 2011
March 2010
December 2011

Trends:

All companies, including MNCs, have increased their field force in the last one
year.

27

Indian companies are entering into strategic tie-ups with MNCs to strengthen
their product portfolio.

Companies are expanding their presence in rural markets.

Acquisitions by MNCs to gain quick foothold in the fastest growing Indian

pharma market.
Most of the Pharma companies have shown considerable decline in growth in the
first half of 2011. The slowdown is widely visible in the Chronic and Acute
categories. Anti-invective, pain and gastro together contribute 1/3rd of the total
pharma market. The pharma companies have started facing challenges in domestic
market due to increase in competition from unlisted MNCs in this segment. They
are rapidly expanding their field force to extend their geographical reach.
Companies like Cipla, Torrent and IPCA which are mainly focused on Indian
market are already feeling the heat. Growth rates of companies such as Cadila,
Dr. Reddy and Ranbaxy have already come down. On the other hand Lupin and
Sun are showing growth due to the shift of focus towards specialty therapies,
where competition is relatively low.
Basing on the changing macro factors and economic growth Emkay Research has
expected the growth estimates of the pharma companies to decrease. It cut down
the domestic growth estimates for Cadila, Cipla, Dr. Reddy, IPCA, Torrent and
Unichem for FY12 and FY 13 by 2% to 5% and retained the growth estimates for
Lupin, Ranbaxy, Sun, GSK and Pfitzer.

28

Indian Pharma Domestic Growth Expectations

Company

FY12
Growth

Domestic

Earlier
growth
estimates

Cadila

12%

15%

Cipla

10%

15%

Dr. Reddys

10%

15%

Glenmark

16%

16%

IPCA

10%

17%

29

Lupin

19%

19%

Ranbaxy

12%

12%

Sun Pharma

15%

18%

Torrent

12%

12%

Unichem

5%

9%

GSK

13%

13%

Pfizer

14%

14%

Source: Emkay Research

GOVERNMENT INITIATIVES:
Government initiatives in the public health sector have recorded some noteworthy
successes over time with focus on investments related to better medical
infrastructure, rural health facilities etc.

100 per cent FDI is permitted for health and medical services under the
automatic route.

The National Rural Health Mission (NHRM) had allocated US$ 10.15 billion for
the upgradation and capacity enhancement of healthcare facilities.
30

Moreover, in order to meet revised cost of construction, in March 2010 the

Government allocated an additional US$ 1.23 billion for six upcoming AIIMSlike institutes and up gradation of 13 existing Government Medical Colleges.

As a result, FDI inflow in hospital and diagnostic centres was US$ 1.1 billion
during April 2000 and November 2011, according to st Department of Industrial
Policy & Promotion (DIPP) data. FDI inflow in medical and surgical appliances
stood at US$ 472.6 million during the same period. And the drugs and
pharmaceuticals sector has attracted FDI worth US$ 5.0 billion between April
2000 and November 2011

Budget 2012: Union Budget 2012-13, as expected, is positive for the

pharmaceutical sector. The government has again increased budgetary allocation
for healthcare spending, which would be an overall positive for the sector. Indian
pharmaceutical companies have been investing on the R&D front to tap
opportunities in the domestic and global markets. To encourage the same, the
weighted deduction on R&D expenditure to 200% (in-house research) was
extended for a further period of five years. R&D sops would continue to be
positive for the sector as a whole.
Budget Proposal
Proposal to extend weighted deduction

Impact
Positive for all Indian pharmaceutical

of 200% for R&D expenditure in an in-

companies.

house facility for a further period of

five years beyond March 31, 2012.
Allocation for NRHM proposed to be
31

Positive

for

all

pharmaceutical

increased from Rs 18,115cr in FY2011-

companies.

12 to Rs 20,822cr in FY2012-13.
Proposal to continue to allow

Positive

repatriation of dividends from foreign

companies, mainly Indian companies,

subsidiaries of Indian companies at a

as they generate the highest revenue

lower tax rate of 15% up to March

from export markets.

2013.
Introduced MAT on partnership firm.

Would

for

all

negatively

pharmaceutical

impact

Cadila

Healthcare and Sun Pharmaceuticals.

Since we have already factored in
higher
tax provision for FY2013, we are not
changing our FY2013 estimates for
both the companies.

3.2 COMPANY PROFILE

Aurobindo Pharma was founded in 1986 by Mr. P. V. Ramaprasad Reddy and Mr.
K. Nityananda Reddy. It started its operation with a single unit manufacturing
semi synthetic penicillin (SSPs) at Pondicherry. It has a product presence in key
therapeutic segments like SSPs, cephalosporins, antiviral, CNS, cardio-vascular,
gastroenterology, etc. The company is the market leader in semi-synthetic
penicillin drugs. It has set up overseas branches/ representative offices located in
Ethiopia, Tanzania, Kenya, Uganda, Italy, Ghana, Vietnam, and United Kingdom.
Aurobindo Pharma has identified international operations, catering to over 100
countries, as a major engine of growth and expanding global network of marketing
and manufacturing operations across countries like China, Brazil, Japan,
32

Netherlands, South Africa, Thailand, UK, USA, Russia, Netherlands and many
more which will further expand its international reach. Subsidiaries in strategic
pharmaceutical markets have positioned it to ride the challenges, powered by the
strengths, the brilliance and hard work of its global workforce, stellar track record,
ever-growing infrastructure and cost-competitiveness.
Aurobindo has invested significant resources in building a mega infrastructure for
APIs and formulations to emerge as a vertically integrated pharmaceutical
company. Aurobindos five units for APIs and four units for formulations are
designed for the regulated markets.
Its manufacturing units is approved by USFDA, UKMHRA, WHO, MCC-SA and
ANVISA-Brazil

PRODUCTS

Formulation- In this segment it manufactures formulation for cardio vascular,

central nervous system, gastroenterological, anti-retroviral and anti-infective. It
has

developed

formulations

namely Trandolapril,

Captopril,

Benazepril

Hydrochloride, etc.

Active Pharmaceutical Ingredients (API) - Aurobindos five units for APIs and
four units for formulations are designed for the regulated markets.

33

Organic Intermediates- It manufactures wide range of organic intermediates

namely Desmethyl Azithromycin, Methanamine, Benzimidazole, ECPPA and
many more.

MANAGEMENT DETAILS:
Chairperson - PV Ramprasad Reddy
MD - N Govindarajan
Directors - A Mohan Rami Reddy, Arvind Vasudeva, C Channa Reddy, D Rajagopala
Reddy, K Kirthi Reddy, K Nithyananda Reddy, K Nityananada Reddy, K Ragunathan, K
Ramachandran, M Madan Mohan Reddy, M Sitarama Murthy, M Sivakumaran, N
Govindarajan, P L Sanjeev Reddy, P Sarath Chandra Reddy, P V Ramprasad Reddy, PV
Ramprasad Reddy, Ravindra Y Shenoy, Vishnu M Sriram

OUR EVOLUTION:

Successful innovation in process chemistry.

Cost competitive manufacturing.

Large diversified product portfolio.

Global leadership in anti-invectives.

Largest generic portfolio in antiretroviral drugs(ARVs)

34

CORE STRENGTHS:
Scales and leadership:

Large manufacturing facilities approved by leading regulatory bodies.

Large diversified product portfolio.

Large R&D facility in India for formulations and active ingredient.

Operational excellence:

Vertical integration.

Proven regulatory expertise.

Technology and know-how for specialty formulations.

Service delivery:

Global marketing network.

Customer centric approach and relationship oriented marketing.

Speed and effectiveness in execution with TQA

ROBUST R&D:

35

One of the largest R&D facilities in India, Aurobindo Pharma has three research
centers spread over 16000 square meters. The company employs over 650
scientists. In-house expertise in product development ensures a quick turnaround
time in areas such as:

Project/product identification

Literature evaluation/ patent study

API process development

Formulation development

Pilot BA/BE

Exhibiting batches for dossier submission

Stability studies for global requirements

Dossier submission
Aurobindo is also associated with UNO for development of ARVs (pediatric and
fixed dose combinations). Apart from NDA fillings, the company contributes to
over 2300 dossier fillings worldwide. It has established capabilities in contract
research and manufacturing services (CRAMS) and regularly supplies impurity
standards to the United States Pharmacopeia Convention (USP).

36

MISSION AND VISION:

VISION:
To become Asias leading generic Pharma Company and one among the top 15 in
the world by 2015

MISSION:
Aurobindos mission is to become the most valued Pharma partner to the World
Pharma fraternity by continuously researching, developing and manufacturing a
wide range of pharmaceutical products that comply with the highest regulatory
standards.

37

AUROBINDOS VALUES:

38

BUSINESS CARE:
Business care is the continuous monitoring and improvement of performance
indicators. Operational Excellence is a continuous journey of excellence wherein
every employee can see the flow of value to the customer and fix that flow when it
fails to deliver. Stakeholder Orientation means being responsive to a group or
individual who are/is interested in the achievement of the firm's objectives.
Quality is a measure of excellence or a state of being free from defects and
innovision is discovering present and future business opportunities.

PEOPLE CARE:
It deals with the core philosophy of the management of human resources
such as Talent Development, Talent Recognition, and Talent Welfare.Fairness,
humility and respect for individuals Appreciating each other's talent, ideas and
treating all individuals in a consistently humble, fair and equal manner
Teamwork is the capability of people within and among groups to continuously
improve the performance.

Applied Learning usually emphasizes on Learn-by-

Doing that empowers and upgrades skills of employees.

ORGANIZATION CARE:

It deals with the action and words of employees that lead to building a
Greater Aurobindo. Accountability is to own up responsibility for outcome,
leading to actualizing the commitment at work.

Integrity Steadfastness to

honesty in our business transactions and interfaces .It involves conscience and
consistent action by choice Achievement A strong desire and drive to focus on
performance and desired business results

39

CODE OF CONDUCT:
CODE OF CONDUCT FOR BOARD MEMBERS AND SENIOR
MANAGEMENT
INTRODUCTION
This code of Conduct ("this Code") shall be called "The Code of Conduct for
Board Members and Senior Management Personnel" of Aurobindo Pharma
Limited (hereinafter referred to as "the Company"). This code has been framed
specifically in compliance with the provisions of Clause 49 of the listing
agreement entered into with stock exchanges.The purpose of this code is to
enhance further an ethical and transparent process in managing the affairs of the
Company. It has come in to force with effect from December 31st, 2005.
DEFINITIONS & INTERPRETATIONS
The term "Board Members" shall mean Directors on the Board of Directors
of the Company. The term "Whole-time Director" shall be the Directors on the
Board of Directors of the Company who are in whole-time employment of the
Company. The term "Part-time Director" shall mean Directors on the Board of
Directors of the Company who are not in whole time employment of the
Company. The term "Senior Management Personnel" shall mean personnel of the
Company in the cadre / designation of Senior Manager and above, excluding
Board of Directors. Such personnel shall hereinafter be treated as members of its
core management team. The term "Relative" shall have the same meaning as
defined in Section 6 of the Companies Act, 1956.
APPLICABILITY
This code shall be applicable to the following persons:
40

a) all whole-time Directors including the Chairman of the Company.

b) All part-time Directors.
c) All Senior Management Personnel.
CORPORATE OPPORTUNITIES
The Directors and senior management owe a duty to the Company to advance its
legitimate interests when the opportunity to do so arises and are expressly
prohibited from improper use of information or property or, taking improper
advantage of their position.
CONFIDENTIALITY
The Directors and senior management shall maintain the confidentiality of
information of the Company or that of any customer, supplier or business
associate of the Company to which the Company has a duty to maintain
confidentiality, except when disclosure is authorized or legally mandated. The
Confidential information includes all non-public information (including private,
proprietary, and other) that might be of use to competitors or the disclosure of
which might be harmful to the company or its Associates. The use of confidential
information for his/ her own advantage or profit is also prohibited.

PROTECTION AND PROPER USE OF COMPANY'S ASSETS

The Directors and senior management should protect the company's assets
and property. The company's assets should be used only for legitimate business
purposes.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

The Directors and senior management shall endeavour to ensure
compliance with all applicable laws, rules, and regulations applicable to the
41

Company. Transactions, directly or indirectly, involving securities of the Company

should not be undertaken without complying with the Code of Conduct for
Prohibition of Insider Trading.

OUR OPERATIONS:

Catering to over 100 countries, Aurobindo Pharma has identified international

operations as a major engine of growth and has since been expanding its global
network of marketing and manufacturing operations. To help further expand its
international reach, it concentrates its focus on such major countries as China,
Brazil, Japan, Netherlands, South Africa, Thailand, UK, USA, Russia and many
more.

Powered by its subsidiary model, the brilliance and hard work of its global
workforce,

stellar

track

record,

ever-growing

infrastructure

and

cost-

competitiveness, Aurobindo is well positioned to surmount the many challenges

typically associated with the pharma industry.

42

CORPORATE GOVERNANCE:
The Board has a good mix of pharmaceutical experience and professional
management. Decision-making is decentralized, with accountability and freedom
to operate.
Under the leadership and supervision of the Board of Directors assisted by a
qualified and experienced team of professionals in the fields of production,
research and development, marketing, HR, finance, purchase and administration,
Aurobindo Pharma has successfully integrated its operations. All projects have
been implemented with no cost or time overruns.
All major decisions are made globally after consultation with experienced
professionals in their specific areas of activity. Decisions and execution are
targeted to derive value addition in everything that the company does.
Operations are conducted with utmost financial discipline. The management
follows up to ensure that trust in employees is reciprocated with fairness in all
dealings.
All decisions are taken in the interest of shareholders. The Board and management
are aware and conscious of the interests of minority shareholders and do
everything to enhance shareholder value in totality.
The company is keen to share its gains and has a decent dividend record. The
company has also been issuing bonus shares from time to time. Value creation for
shareowners is a cornerstone and is being consistently followed.

43

Committees of directors are to be appointed to focus on specific areas. Aurobindo

Pharma is going through a process of transformation in a professional
environment.
The Board of Directors meets as often as business demands, and all meetings are
well attended.

HR PHILOSOPHY:

HR VISION
"To make AUROBINDO PHARMA LIMITED as a Learning organization
towards sustained business performance through progressive talent management."

HR MISSION

To attract, build and retain right talent at all levels.

To create and nurture performance culture through continuous capability

building, performance measurement and leveraging IT.

To foster leadership at all levels through trust, empowerment & openness.

To strengthen collaborative approach for Business Excellence.

Promote a vibrant work culture based on innovation and incentivize people based
on productivity/outstanding performance.

44

CHAPTER: 4
45

ORGANISATIONAL CULTURE
1) Quality is top priority
DEGREE

OF

NUMBER OF

PERCENTAGE

AGREEMENT

RESPONDEN

OF

Yes
No

TS
26
4

RESPONDENTS
86
14

46

100
90
80
70
60
50
40
30
20
10
0
YES

NO

INTERPRETATION:
Quality management is a present day key word for greater organizational
effectiveness. It is observed that as high as 86% of the respondents agree strongly
that quality remains the top priority with Aurobindo Pharma. Other 14% of
employees disagree to the statement.

2) Individual initiatives is encouraged in my organization

DEGREE

OF

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
50
20
20

nor disagree
Disagree
Strongly

10
0

AGREEMENT

47

Disagree
60
50
40
30
20
10
0

INTERPRETATION:
Encouraging individual initiative is very important in the present day
context of employee satisfaction. While 50% of the respondents strongly agree
that individual initiative is very much encouraged in their organisation, and 20%
of respondents agree to the statement to some extent. Other 20% are neutral and
about 10% of respondents dont agree to some extent.

3) Work culture encourages me to do my best every day

DEGREE

OF

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
40
13
20

nor disagree
Disagree
Strongly

14
13

AGREEMENT

48

Disagree
45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
The work culture is an important determinant of quality of work life and
employee satisfaction. A majority of 40% of the respondents strongly agree that
the work culture in Aurobindo Pharma motivates them to perform better. Nearly
13% more or less feel that work culture in their organization is encouraging. And
20% of respondents gave a neutral response. 14% disagree to some extent with
this statement while another 13% express strong disagreement regarding the
existing work culture.
CAREER DEVELOPMENT
4) I have clearly established path in my organization
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
33
17
10

Strongly Agree
Agree
Neither agree
49

nor disagree
Disagree
Strongly

40
0

Disagree

45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
A well established path is a key determinant of quality of work life. Nearly 33% of
the respondents agree strongly that they have a well-defined career path in their
organisation. Another 17% agree to some extent with this statement. About 10%
respondents express a neutral opinion while 40% of respondents disagree with this
statement to a particular extent.

5) Opportunities to learn and grow in my organization

DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
74
13
13

Strongly Agree
Agree
Neither agree
nor disagree
50

Disagree
Strongly

0
0

Disagree

80
70
60
50
40
30
20
10
0

INTERPRETATION:
By providing opportunities to learn, the organisation can ensure that the
employees get chance to expand their capabilities, knowledge and qualifications.
To prove this a majority of 74% strongly agrees that they have ample opportunities
to learn and grow. Another 13% of respondents agree to some extent that they
have opportunities and 13% respondents are neutral regarding this aspect.
6) Last performance appraisal accurately reflected my performance
DEGREE

OF

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
60
13
10

nor disagree
Disagree

17

AGREEMENT

51

Strongly

Disagree

70
60
50
40
30
20
10
0

INTERPRETATION:
Performance appraisal plays a key role in evaluating the performance of the
employees and searching for ways to improve their performance. About 60% of
respondents feel that their last performance appraisal accurately reflected their
performance while 13% of respondents agree somewhat with this statement.
Nearly 10% of respondents express neutral opinion in this regard. About 17%
respondents disagree somewhat with this statement.
EMPLOYEE ROLE IN ORGANISATION
7) I am given enough authority to make decisions I need to make
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
20
14

Strongly Agree
Agree
52

Neither

agree

46

nor disagree
Disagree
Strongly

13
7

Disagree
50
45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
By bestowing appropriate authority to the employees, there can be creation of a
feeling of autonomy in the employees. About 20% of respondents strongly agree
that they are given enough authority in decision making. Another 14% agree
somewhat with this statement, 46% of respondents express a neutral opinion.
There is a 13 % incidence of respondents who disagree somewhat with this
statement while 7% express strong disagreement in this regard.
8) I am well equipped to do my job well
DEGREE

OF

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
87
13
0

nor disagree
Disagree

AGREEMENT

53

Strongly

Disagree

100
90
80
70
60
50
40
30
20
10
0

INTERPRETATION:
Provision for adequate resources required for a job to the employees ensure better
job performance. To prove as high as 87% of the respondents of Aurobindo
pharma strongly agrees to the statement that they are well equipped to do their job
effectively. And other 13% more or less agree to the statement.

RECOGNITION AND REWARDS

9) If I do good work I can count on being promoted
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
43
20

Strongly Agree
Agree
54

Neither

agree

24

nor disagree
Disagree
Strongly

7
6

Disagree
50
45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
To keep employee motivated, good performance can be linked with promotions to
higher levels. In the present context of Aurobindo Pharma, a majority of 43% of
respondents feels that promotions are based on their good performance. Nearly
20% of respondents more or less agree with this statement. About 24% of
respondents express a neutral opinion while 7% disagree somewhat and 6%
express strong disagreement.
10) My organization gives enough recognition for work that is well done
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
40
26
27

Strongly Agree
Agree
Neither agree
55

nor disagree
Disagree
Strongly

0
7

Disagree
45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
Recognizing good work of employees is very important in the present context of
the employee satisfaction. To prove this as high as 40% of the respondents
strongly agree that there is enough recognition for work that is well done in their
organization. About 26% of respondents agree somewhat with this statement. 27%
of respondents gave neutral opinion. While another 7% of respondents disagree to
an extent with this statement.
TEAMWORK AND COOPERATION
11) I feel part of a team working towards a common goal
DEGREE

OF

NUMBER OF

PERCENTAGE

AGREEMENT

RESPONDEN

OF

Strongly Agree

TS
30

RESPONDENTS
100
56

Agree
Neither

agree

nor disagree
Disagree
Strongly

0
0

0
0

0
0

0
0

Disagree
120
100
80
60
40
20
0

INTERPRETATION:
The feeling of teamwork and cooperation strengthens any work place culture. In
the present context of Aurobindo Pharma Limited, as high as 100% of the
respondents strongly feel that they are a part of cooperative team.

12) Politics in organization are kept to a minimum

DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
67
0
17

Strongly Agree
Agree
Neither agree
57

nor disagree
Disagree
Strongly

7
9

Disagree

80
70
60
50
40
30
20
10
0

INTERPRETATION:
Minimal existence of organisational politics is a key determinant of employee
satisfaction. Majority of 67% of respondents agree strongly that politics are kept
to a minimum in their organization. Nearly 17% of respondents are neutral. And
about 9% of employees disagree somewhat with this statement. And 7%
respondents gave a strong disagreement.

WORKING CONDITION
13) My physical working conditions are good
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

58

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
57
27
10

nor disagree
Disagree
Strongly

0
6

Disagree
60
50
40
30
20
10
0

INTERPRETATION:
Hawthorne studies have proved that physical w orking conditions have a
considerable effect on an employees performance. In the present context of
Aurobindo Pharma Limited, majority of 57% of respondents feel that the physical
working conditions are good. Another 27% of respondents more or less agree to
the statement. 10% of respondents are neutral and 6% of respondents disagree
somewhat with this statement.
14) My workload is reasonable
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
27

Strongly Agree
59

Agree
Neither

16
24

agree

nor disagree
Disagree
Strongly

20
13

Disagree
30
25
20
15
10
5
0

INTERPRETATION:
A reasonable workload not only relieves employee stress but also motivates
employees to perform better. Here 27% of respondents strongly feel that their
workload is reasonable. Another 16% of respondents agree somewhat with the
statement. 24% neither agree nor disagree to the statement. And 20% of the
respondents disagree somewhat with this statement. And 13% of respondents
express strong disagreement.
SUPERVISION
15) My supervisor asks me for my input in decision making
DEGREE

OF

NUMBER OF
60

PERCENTAGE

AGREEMENT

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
67
27
0

nor disagree
Disagree
Strongly

0
6

Disagree
80
70
60
50
40
30
20
10
0

INTERPRETATION:
By valuing employee opinion in decision-making, employee participation and
empowerment can be ensured. About 67% of the respondents agree strongly that
their supervisor values their input in decision-making. And about 27% of
employees agree somewhat with this statement. And 6% respondents expressed
strong disagreement
16) My supervisor is an effective manager
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
63

Strongly Agree
61

Agree
Neither

10
13

agree

nor disagree
Disagree
Strongly

8
6

Disagree
70
60
50
40
30
20
10
0

INTERPRETATION:
When a supervisor is an effective manager, employees always have someone to
look up to. A majority of 63% of respondents strongly feels that their supervisor is
an effective manager. Another 10% of respondents more or less agree to this
statement. Nearly 13% of respondents neither agree nor disagree to the statement.
About another 8% of respondents disagree somewhat with this statement. And 6%
expressed a strong disagreement to the statement.
TRAINING PROGRAMS
17) My organization provided me as much initial training as I required
DEGREE

OF

NUMBER OF
62

PERCENTAGE

AGREEMENT

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
60
6
0

nor disagree
Disagree
Strongly

34
0

Disagree
70
60
50
40
30
20
10
0

INTERPRETATION:
Provision of adequate initial training familiarizes the employee with this job and
helps in quick adaption to the job profile. Nearly 60% of employees agree strongly
that they received adequate initial training from their organisation. Nearly 6% of
respondents more or less agree to the statement. About 34% of the respondents
disagree somewhat regarding provision of adequate initial training.
18) My organization provides adequate on-the-job training
DEGREE

OF

AGREEMENT

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS

RESPONDENTS
63

Strongly Agree
Agree
Neither agree

50
17
27

nor disagree
Disagree
Strongly

6
0

Disagree

60
50
40
30
20
10
0

INTERPRETATION:
There is always a need for polishing the skill set of the employees by providing
adequate ongoing training. About 50% of the respondents agree strongly that they
receive adequate ongoing training from the organisation. Nearly 17% of
respondents more or less agree to the statement. Nearly 27% of respondents
neither agree nor disagree to the statement and another 6% of respondents disagree
somewhat with the statement.
BENEFITS
19) Overall I am satisfied with my organizations benefit package
64

DEGREE

OF

NUMBER OF

PERCENTAGE

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
40
20
30

nor disagree
Disagree
Strongly

6
4

AGREEMENT

Disagree
45
40
35
30
25
20
15
10
5
0

INTERPRETATION:
The benefits package of an organisation forms a part of the overall satisfaction
purview of the employee. About 40% of the respondents agree strongly that they
are satisfied with the benefit package of their organization. Nearly 20% of
respondents agree somewhat with the above statement. 30% express a neutral
opinion in this regard. Nearly 6% of the respondents disagree somewhat with this
statement while 4% express strong disagreement in this regard.
20) I am satisfied with companys health care plan
DEGREE

OF

NUMBER OF
65

PERCENTAGE

AGREEMENT

RESPONDEN

OF

TS
Strongly Agree
Agree
Neither agree

RESPONDENTS
50
6
27

nor disagree
Disagree
Strongly

7
10

Disagree

60
50
40
30
20
10
0

INTERPRETATION:
Health care plan is an important part of an organisations benefits. About 50% of
respondents agree strongly that they are satisfied with the paid health care
benefits. 6% agree somewhat with this statement. Another 27% of respondents
express a neutral opinion in this regard. About 7% of the respondents disagree
somewhat with this statement while 10% express strong disagreement in this
regard.

66

CHAPTER: 5

5.1 FINDINGS:

The organisation gives top priority to quality.

Most of the respondents feel that individual initiative is encouraged, but
it can be improved further.
67

A supportive and conductive work culture exists in the organisation.

Some employees feel that the work culture motivates them to perform

better, but there are some employees also who are not satisfied with this.
There is no well-defined career path for the employees in the

organisation. It has to be improved.

There are ample opportunities for the employees to learn and grow in the

organisation.
The performance appraisal method used is good but needs to be updated.
It cannot be considered that authority provided to employees in decision
making is adequate, there is a great need for proper definition of authority

and responsibility in the context of employee decision- making.

There is absolutely adequate provision of facilities for better job

performance.
There are fewer incidences of promotions based on good performances.
There is good amount of recognition for work that is well done. But it

needs to be improved further.

There is absolute high incidence of employees feeling a part of a team.
There appears to be a minimal existence of politics in the organisation.
Though not quite apparent, politics do exist and the employees feel that

such practices should be restricted.

The employees are quite satisfied with the working conditions in the

organisation.
In general there is a good opinion among the employees regarding their

supervisors. The supervision process is quite satisfactory in all regards.

The training programmes of the organisation are satisfactory. There is a
slight emphasis in the responses of the sample about improving these

training programmes.
The benefits package of the organisation is satisfactory. There is small
inadequacy in the benefits package with regard to health care plan.

5.2 RECOMMENDATIONS:
Role expectations must be clearly defined so that employees with role ambiguity
can overcome that concern.
Job enrichment can further increase the employee satisfaction levels.

68

 Frequent feedback should be provided to the employees to satisfy the need for
information about their performance levels. The evaluation process of employee
performance has to be further redefined.
More opportunities should be provided to the employees to participate in
decision- making.
There should be suitable appreciation or reward for appropriate employee effort.
A system should be developed where the employees regularly record their
comments or feeling about the organisation. This would help in assessing the
employees view regarding the organisation.
The training needs should be identified and met accordingly.
The concept of mentoring should be given due importance. This will help less
experienced employees to adapt themselves to the organisational culture.

5.3 CONCLUSION:

The study of QUALITY OF WORK LIFE with reference to AUROBINDO

PHARMA LIMITED stands as classic example for the significance of work life
quality. On the whole, the study reveals that the employees are quite satisfied by
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the overall organisational climate and work life quality. In the course of the study
some aspects, which need concern, have surfaced. If there are adequate steps to be
taken in this direction then there can be an assurance of increased satisfaction from
the employees point of view and improved organisational efficiency.

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BIBLIOGRAPHY:
1. Arun Kumar and N. Meenakshi, Organizational Behaviour, A Modern
Approach, Vikas
2. Keith Davis, Organizational Behaviour: Human Behaviour at Work, New
York: McGraw Hill
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3. Luthans, Fred, Organisational behaviour, New York: McGraw Hill

International.
4. Mathis and Jackson, Human Resource Management, 2009, Cenagage.
1. www.managementguide.com
2. http://en.wikipedia.org/wiki/Quality_of_working_life
3. http://www.aurobindo.com/

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ANNEXURE

QUESTIONNAIRE
Dear sir/Madam,
I Srishti, pursuing MBA with HR as my specialization would kindly request to
spare a few minutes for answering this questionnaire which will help me in
completing my project.

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NOTE: Data furnished will be kept confidential

PERSONAL DETAILS:
NAME:
AGE:
GENDER:

ORGANISATIONAL CULTURE
1) Quality is top priority
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
2) Individual initiatives is encouraged in my organization
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

3) Work culture encourages me to do my best every day

1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

CAREER DEVELOPMENT
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4) I have clearly established path in my organization

1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
5) Opportunities to learn and grow in my organization
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
6) Last performance appraisal accurately reflected my performance
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

EMPLOYEE ROLE IN ORGANISATION

7) I am given enough authority to make decisions I need to make
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
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5. Strongly Disagree
8) I am well equipped to do my job well
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

RECOGNITION AND REWARDS

9) If I do good work I can count on being promoted
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
10) My organization gives enough recognition for work that is well done
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

TEAMWORK AND COOPERATION

11) I feel part of a team working towards a common goal
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
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4. Disagree
5. Strongly Disagree
12) Politics in organization are kept to a minimum
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

WORKING CONDITION
13) My physical conditions are good
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
14) My workload is reasonable
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

SUPERVISION
15) My supervisor asks me for my input in decision making
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
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4. Disagree
5. Strongly Disagree
16) My supervisor is an effective manager
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

TRAINING PROGRAMS
17) My organization provided me as much initial training as I required
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree
18) My organization provides adequate on-the-job training
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

BENEFITS
19) Overall I am satisfied with my organizations benefit package
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
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4. Disagree
5. Strongly Disagree
20) I am satisfied with the companys health care plan
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly Disagree

79